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HomeMy WebLinkAbout1975-06-04 Council PacketCOUNCIL PA- CKETS Kenai City Council Meeting June 4, Packet 1975 r �—=�—ter .. - '^•�7\ -" - -.ia�- __._. _..... i _ .. :. - . ___ COUNCIL MEE� ING OF Jun 4. 19 f _ e MORGAN t �r STEINER THOMAS AMBARIAN DOYLE �( 9 Y HUDSON I y , ELSON k i .I I c1 7 i It i" �i i h , y N e� I =. I i f tl -' 1 Y40104 4�. Y J � 'I 6 d COUNCIL AfEi;'fING OF M7)- 904 x I ; Y _ Y a 1 / 1.11011 III' IV A G E N 0 A REGULAR MEETING, KENAI CITY COUNCIL JUNE 4, 1975 - 8:00 P.M. I NATIONAL GUARD ARMORY PLEDGE OF ALLEGIANCE j A. ROLL CALL: s AGENDA APPROVAL B. PUBLIC HEARINGS: t 1. Ordinance 264-75 - Annual Budget for fiscal Year 1975-76 2. Ordinance 165.75 - Amending definition of "Taxicab" 4 establishing size and body style restrictions for taxicabs. S. Ordinance 266-75 - Hater/Sewer Rate Increase i 4. Ordinance 267-75 - Sales Tax Increase S. 6. C. PERSONS PRESENT SCHEDULED TO BE HEARD: -� 1. I i 2. } I 3. D. MINUTES: _ 1. Minutes of the Regular Meeting of May 21, 1975 E. CORRESPONDENCE: 1 2. F. OLD BUSINESS: 1. Resolution 75-24 - Fixing Taxicab Rates for the City of Kenai j 2. Council approval - FAA Housing inventory 3. 4. t o G. NOW BUSINESS: 1. Bills to be paid - bills to be ratified. ! 2. Payment to Engr. Consulting Firm - Airport Lighting Project 3.Payment to Engr. Consulting Firm - Airport Fencing Project 4. Payment to Engr. Consulting Firm - Airport Fencing Project 6. 7. i 8. I _ 20. a H. REPORTS: 1. City Manager's Report 2.City Attorney's Report 3. Mayor's Report ' 4. City Clerk's Report ! ". 5. Finance Director's Report 6. Planning 4 Zoning Commission's Report } 7. _ Kenai Peninsula Borough Assembly Report I: PERSONS PRESENT NOT SCHEDULED TO BE HEARD: ; 1. 4 2. 3. 4. .I I I � I I 1111 11!111 IE ir., �l .:l—i. GeT"—.•---. ••— .._. _ - ...:..,,, � .. ... ._.:— .._.:. i .. . i `1 I i CITY OF KENAI ORDINANCE NO. 264-75, AMENDED AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR JULY 1, 1975 THROUGH JUNE 30, 1976, AND SETTING THE TAR LEVY FOR THE CITY OF KENAI. WHEREAS, it is the requirement of the Charter of the City of Kenai, Alaska, that the City Council of the City of Kenai annually set a budget for the operation of the City of Kenai; and WHEREAS, it is necessary to advise the Borough of the levy to be made against real and personal property for the collection of taxes to support said budget. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Kenai, Alaska, as follows: Section 1. A tax in the amount of 18.0 mills to hereby levied against all taxable real and personal property in the City of Kenai for the fiscal year commencing on the 1st day of July, 1975, and ending on the 30th day of June. 1976. Section 2. The sum of $1,783,510.00 is hereby appropriated for corporate purposes and objects of the City of Kenai for the fiscal year commencing on the 1st day of July, 1975, and ending on the 30th day of June, 1976, to defray all expenses and liabilities of the City during the fiscal year. i Page One, ORDINANCE NO. 264-75 a ' 1 a i, ! i Section 3. This Ordinance shall be in full force and effect on the ist day of July, 1975, as required by Law. CITY OF KENAI 1 -� JAMES A. ELSON , Mayor i ATTEST: I Acting City Clerk FIRST READING SECOND READING EFFECTIVE DATE Page Two, ORDINANCE NO. 264-75 s e r r� 1 t. u f - � Y .i ` �f if l9 175- Page 5 CITY OF KENAI ` ORDINANCE NO. 264-75 tU1 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR JULY 1, 1975 THROUGH JUNE 30, 1976, AND SETTING THE TAX LEVY FOR THE CITY OF KENAI. WHERRAS, it is the requirement of the Charter of the City of Kenai, Alaska, that the City Council of the City of Kenai annually set a budget for the operation of the City of Kenai; and WHEREAS, it is necessary to advise the Borough of the levy to be made against real and personal property for the collection of taxes to support said budget. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Kenai, Alaska, as follows: Section 1. A tax in the amount of 18.9 mills is hereby levied against all taxable real and personal property in the City of Kenai for the fiscal year commencing on the ist day of July, 1975, and ending on the 30th day of June, 1976. Section 2. The following sums of money are hereby appropriated for corporate purposes and objects of the City of Kenai for the fiscal year commencing on the 1st day of July, 1975, and ending on the 30th day of June, 1976, to defray all expenses and liabilities of the City during the fiscal year. Page One, ORDINANCE NO. 264-75 I. GENERAL FUND ESTIMATED REVENUE (1) Taxes . . . . . . . . . . . . . . . . . . . . . . . $1,261,332 (2) Licenses & permits . . . . . . . . . . . . . . . . 7,100 (3) Intergovernmental revenues . . . . . . . . . . . . 391,250 (4) Charges for services . . . . . . . . . . . . . . 4 32,500 (5) Fines & forfeits . . . . . . . . . . . . . . . . . . 24,800 (6) Interest earnings . . . . . . . . . . . . . . . . . 45,000 (7) Rent and leases . . . . . . . . . . . . . . . . . . 12,290 (8) Miscellaneous revenues . . . . . . . . . . . . . . 3,000 (9) Non -revenue receipts . . . . . . . . . . . . . . . 63,576 Total General Fund Estimated Revenues $1,840,848 II. GENERAL FUND ESTIMATED EXPENDITURES (1) Legislative $ 24,353 (2) Judicial . . . . . . . . . . . . . . . . . . . . . . 13,226 (3) Executive City Manager . . . . . . . . . . . . . . . . . . . 70,408 Legal . . . . . . . . . . . . . . . . . . . . . . . 58,398 Finance . . . . . . . . . . . . . . . . . . . . . . 121,362 Revenue . . . . . . . . . . . . . . . . . . . . . 18,818 Police . . . . . . . . . . . . . . . . . . . . . . . 275,103 Fire . . . . . . . . . . . . . . . . . . . 290,475 Communications . . . . . . . . . . . . . . . . . . 76,977 Public Works . . . . . . . . . . . . . . . . . . . 484,962 Library . . . . . . . . . . . . . . . . . . . 22,641 Planning Commission . . . . . . . . . . . . 11000 Council on Aging . . . . . . . . . . . . . . 37,966 Non -Departmental . . . . . . . . . . . . . . . 345,159 Total General Fund Estimated Expenditures $1,840,848 Page Two, ORDINANCE NO. 264-75 41 III. SPECIAL REVENUE FUNDS ESTIMATED REVENUES (a) Water/Sewer Revenue Fund . . . . . . . . . . . . $ 241,600 (b) Airport Funds Airport Maintenance/Operation Fund . . . . . . . 54 906 Airport Land Fund . . . . . . . . . . . . . . . . 26,000 Total Special Revenue Fund Estimated Revenues $ 322,506 IV. SPECIAL REVENUE FUNDS ESTIMATED EXPENDITURES (a) Water/Sewer Revenue Fund . . . . . . . . . . . . $ 224,179 (b) Airport Funds Airport Maintenance/Operation Fund . . . . . . . . 54,906 Airport Land Fund . . . . . . . . . . . . 12,600 Total Special Revenue Fund Estimated Fxpenditures $ 291,685 V. ENTERPRISE FUND ESTIMATED REVENUES (a) Airport Terminal Revenue Fund . . . . . . . . . . $ 90,617 Total Enterprise Fund Estimated Revenues $ 90,617 VI. ENTERPRISE FUND ESTIMATED EXPENDITURES (a) Airport Terminal Revenue Fund . . . . . . . . . . $ 90,617 Total Enterprise Fund Estimated Expenditures $ 90,617 Page Three, ORDINANCE NO. 264-75 i ; A IL I� �� 1 t I ` t ALL FUNDS TOTAL ESTIMATED REVENUES $2,282,971 ALL FUNDS TOTAL ESTIMATED EXPENDITURE $2,232,150 Section 3. This Ordinance shall be in full force and effect on the tat day of duly, 1975, as required by Law. CITY OF KENAI JAMES A. ELSON, Mayor ATTEST: L Acting City Clerk FIRST READING %S' SECOND READING r } EFFECTIVE DATE 1 t ► Page Four, ORDINANCE NO. 264-75 M s � i f r ' = 1 (L F I . j. f CITY OF KENAI � I !! 4 -I I { i I I MOVE TO AMEND ORDINANCE 264-1S AS FOLLOWS: A. CHANGE THE MILL RATE IN SECTION 1 FROM 18.9 TO 18.0 B. DELETE SECTION 2 AND REPLACE IT WITH THE FOLLOWING: SECTION 2. THE SUM OF $1,783,510.00 IS HEREBY APPROPRIATED FOR CORPORATE PURPOSES AND OBJECTS OF THE CITY OF KENAI FOR THE FISCAL YEAR COMMENCING ON THE 1st DAY OF JULY, 1975 AND ENDING ON THE 30th DAY OF JUNE, 1976 TO DEFRAY ALL EXPENSES AND LIABILITIES OF THE CITY DURING THE FISCAL YEAR. f V- V t i F4 I C .. G { t 1 I If ` J M I i i ` I I �l X. .,,.----••—•-- -.r — �- �-.,r -.� - - - �- ---- - r� -�'� - —..—fir V- - - — --- — /- -4 CITY OF KENAI ORDINANCE NO. 265-75 G { AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI AMENDING THE DEFINITION OF "TAXICAB" AND ESTABLISHING SIZE AND BODY STYLE RESTRICTIONS FOR TAXICABS BE IT ORDAINED by the Council of the City of Kenai, Alaska, as follows: Section 1. Section 20-1(1) of the Code of the City of Kenai is hereby amended to read as follows: (1) "Taxicab" means a motor -driven passenger vehicle which is not certificated by the Alaska Transportation Commission, and which is ' offered for public hire on a time or distance basis. Section 2. There is hereby added to the Code of the City of Kenai, Section 20-12 (A) , which shall read as follows: 20-12(A) No license shall be granted under this Chapter for a ` vehicle which has a seating capacity as per the manufacturer's rating of more than soven (7) persons, or for a vehicle the body style of which is other than a sedan. This provision shall not be construed as prohibiting the continued operation of a vehicle other than a sedan which was licensed under the provisions of this Chapter on the effective date of this Section. CITY OF KENAI ATTEST: :a. i_ JAMES A. ELSON , Mayor Acting City Clerk f t FIRST READING /, I� 7 T SECOND READING 1 t PASSAGE DATE s. (r i F 3 I { � I 1 4 i �i 1� l is J /Iloll I. 11111 .111 .. a I I• f ` r�{1 �t /Iloll 11111 .111 CITY OF KENAI ORDINANCE NO. 266-75 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI REPEALING SECTION 17-76 OF THE KENAI CODE, 1963, AND ENACTING A REVISED SCHEDULE OF RATES FOR USERS CONNECTED TO CITY WATER AND SEWER SYSTEMS WHEREAS, revenues of the water and sewer systems have been found to be insufficient to operate and maintain the systems to a reasonable standard; and WHEREAS, monthly service charges are the principal source of revenues for operating the water and sewer systems; and WHEREAS, levels of service and operating condition have caused Increased costs at least equal to the inflationary rise of the prevailing price levels since establishment of water and sewer rates. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Kenai, Alaska, as follows: Section 1. It is the finding of the Council that an increase in monthly service or user charges is urgently required in view of the drastic increase in costs, which at least equals the inflationary rise of prevailing price levels since the establishment of the water and sewer rates by the City of Kenai, Alaska on May 18, 1973. Section 2. Section 17-76 of the Kenai Code 1963 is hereby repealed. Section S. The charges to. users of water and sewer systems within the City of Kenai are as follows: SCHEDULE A - GENERAL DOMESTIC SERVICE RATES Per Month Water Sewer One -or two-family residence, per family unit $ 12.00 8.00 Single or double wait apartment, per family unit 12.00 6.00 Apartment, three or more units under one roof, per family unit - Single bill assumed by owner 8.80 5.90 Separate billing 10.00 6.75 Trailers, one or two on single lot or court (each) 12.00 8.00 Page One, ORDINANCE NO. 266-75 L1 --r',Mqgr_ I•;, Trailers, three or more on lot or court, per trailer unit - Single bill assumed by owner 8.80 5,90 i Separate billing 10.00 6.75 Minimum Charge: One month's service Special Conditions: The above schedule is restricted to service used exclusively for general domestic purposes, as distinguished from commercial or other uses of water service. SCHEDULE B - C014MERCIAL SERVICE Per Month Water Sewer Base Rate: (Applicable to all customers receiving ; service under this Schedule, unless otherwise specifically excluded.) $ 9.50 6.30 Demand Charge: (Applicable to individual .customers .. where water connection is one inch or longer, G and is rated on the equivalent line size. This is in addition to the Base Rate and Use Charge . ) 1" service 8.00 5.50 service 12.00 8.00 service 20.00 13.40 2" service 50.00 33.50 Larger than 2" - By special contract. !' Use Charge: (Applicable to the establishments specified below, in addition to the initial Use Charge listed below, a charge of $4.00 for water and $2.70 for sewer for each multiple of four employees over and above the initial four shall be made. This is in + addition to the Base Rate and Demand Charge. The City Manager has the right to determine the rate to be applied to different types of facilities than are •, hereaftor listed, and to make final interpretation of ' these rates, subject to Council approval.) _ _ Bakery 53.50 35.75 Bath House - Tub or shower, each 5.50 3.60 Beverage dispensary - i Page Two, ORDINANCE NO. 266-75 i i 1 = . i ri ,u i Illelllll IJI I I A Each seat, to and including thirty 1.60 1.05 Seating capacity in excess of thirty, per person .40 .26 j Bottling works, per bottling machine 166.70 111.65 Bowling alleys, amusement parks (Note 2) 20.00 13.40 Boarding houses, per available room 3.40 2.30 Car lot, with car wash facilities 16.00 10.75 Car wash, automatic, per stall 400.00 266.00 Car wash, self service, per stall 26.70 17.90 Churches 12.00 8.00 Cleaners 20.00 13.40 Clinics, medical with laboratory and/or X -Ray unit 33.35 22.35 - Without laboratory or X -Ray unit 12.00 8.00 ! Clubs, lodges without bar or restaurant facilities 8.00 5.50 Dairies - installation of water meter required ' •' Dentists' offices, per chair 9.35 6.30 Garages, service stations, without wash rack 26.70 17.90 j With wash rack 53.35 35.80 With automatic wash rack 400.00 266.00 ! li Hangar, airplane repair 6.70 4.50 With washing facilities 33.35 22.35 Hospitals, per bed 4.00 2.60 Hotels - Establishment providing three or less beds Per room, ten rooms or less 33.35 22.35 r - Per room, over ten rooms 3.40 2.30 Dormitories - Establishment providing sleeping quarters Containing up to ten beds 24.00 16.05 -- Capacity in excess of ten beds, per bed 1.35 1.05 `-. Laundry, commercial self service Per machine, fifteen pounds or less capacity 13.35 8.95 ' Per machine, fifteen to thirty pounds capacity 40.00 26.70 Per machine, over thirty pounds capacity 80.00 53.60 Markets, meat (Note 1) 16.00 10.75 Medical offices (except psychiatrists i optometrists !- Per doctor, base covers first doctor ' Additional doctor 6.70 4.50 y , . For three or more doctors, apply clinic rate. Medical offices - psychiatrists & optometrists, y apply standard office rate. ' Motels, with light housekeeping facilities (where billing Is assumed by owner) one unit, no charge. Above base rate in excess of one unit 6.70 4.50 Office buildings where single bill is assumed by owner, the base rate shall apply for the first four . employees, no charge ` Office, in multiple office building where individual i i - t � Page Three, ORDINANCE NO. 266-75 i t 1 e/ ,J I . tenants are billed, (the base rate shall not apply) 6.70 4.50 Building with single office, apply base rate only. j Restaurants, cafes, lunch counters, fountains For each seat, to and including thirty (Note 3) 1.20 .80 Seating capacity in excess of thirty, per seat .90 ,60 Schools, per classroom 9.35 6.30 - Shopping centers (Depends on stores included in shopping center, Note 1 and Note 2.) Shops, beauty, per basin 13.35 8.95 _ Shops, miscellaneous 6.70 4.50 _ Sleeping room, per room (without facilities for housekeeping) 3.00 2.00 Y; Stores, dry goods, gifts, variety, etc. 6.70 4.50 Stores, grocery (Note 1) 8.00 5.50 - Studios, photo or photo lab 40.00 26.70 Super markets (depends on departments within store, Note 1 and Note 2) _ Theaters, seating capacity 750 or less 40.00 26.70 Seating capacity in excess of 750 (Note 1) 73.35 49.15 X -Ray or laboratory office 24.00 16.05 ' Note 1: Additional charge for water cooled compressor ' per horsepower or fraction thereof without recovery unit. 4.00 2.60 Note 2: Additional for other facilities such as restaurant, beverage dispensary, etc. are at the ► applicable use charge for each such facility. I � Note 3: When a restaurant serves liquor and has no ` separate bar, no additional charge for a bar will be applied. However, when a restaurant has a n separate bar, the bar stools will be rated at the over -thirty -stool rate. Minimum Charge: One month's service. I _ Special Conditions: (a) Where more than one customer is served from the same service -- line between the City's water main and the customer's premises, the City - = - - reserves the exclusive right to determine how the Demand Charge under . i this Rate Schedule shall be applied and apportioned between said customers. (b) The Base Rate under this Rate Schedule includes appropriate charges for providing water supply, pumping, treatment and a minimum I I Page Four, ORDINANCE NO. 266-75 - M i i I I _ 1 } II . 11 - i I. I . 2n t ' L MI, S Fir e =a t!--1 Sp pr(t i - Pa Y j { ii �I is )unt of water, and is applicable to all commercial establishments receiving der from the City. ;spool Pumper Charge: $10.00 per dump. SCHEDULE C - INDUSTRIAL SERVICE 1/2" anger tion Per Month Water icrete mixing plant $100.00 zcrete products 50.00 lfectioner 33.35 3enhouse, commercial 33.35 cream plant 50.00 dstorage plant or lockers 23.35 11tional for water-cooled compressors, per horsepower or fraction thereof 4.00 nand Charge: In addition to the above, the following shall be added where the water connection is larger than 3/4 inch: service 8.00 ,/4" service 12.00 service 20.00 service 50.00 than 2" service - By special contract. imum Charge: One month's service. wer Charges: Monthly sewer charges shall be- set by special contract. SCHEDULE D - FIRE PROTECTION SERVICE e Protection Service No Charge ecial Conditions: (a) Water service under this Schedule shall be available, at the of the City, to "dry type" automatic sprinkler systems for fire ection only. (b) All fire protection lines, sprinklers, pipes and valves on private go Five, ORDINANCE NO. 266-75 f _, III I I II ,1 0.1111111 1111 1 11 1 UlILlIIWI I�III .I_I _L�._,.!!19. iL_...111�.LLC. LY�W_l� I property shall be owned, installed and maintained by the owner and/or customer. (c) All connections between the City's main and privately owned facilities will be made at the expense of the customer. (d) At the option of the City, sprinkler service may be metered. The meter and the installation thereof shall be at the expense of the customer. i (e) No tap or outlet for use other than fire protection shall be permitted on fire lines or mains, unless approved by the City. (f) in times of emergency the right is reserved by the City to turn off any fire hydrant and/or sprinkler system at the discretion of the City Fire Chief or other authorized person. (g) No drains from fire sprinkler systems shall be directly connected with the City Sanitary Sewers, and no cross -connection whatsoever will be permitted between fire protection facilities connected to the City's system and possible sources of contaminated water. SCHEDULE E - METERED WATER SERVICE Per Month Per Thousand Gallons of Water First 30,000 gallons $ 1.35 Next 170,000 gallons .92 Next 250,000 gallons .75 Next 550,000 gallons .50 k Over 1,000,000 gallons •33 ' Minimum Charge per Month: Under size of meter. Meter Size Water Allowances for Minimum Charge Charge i" 10,000 gallons $13.35 25,000 gallons 33.35 2" 60,000 gallons 67.60 Over 2" - By special contract. The City reserves the right to determine the size of the meter to be installed in all cases . i Sewer Charges: Monthly sewer charges shall be set by special contract. Page Six, ORDINANCE NO. 266-75 L a - Y Y � _ f. F; r tD R i r I L a --- .� -� '"gill �IJIIII■ 11111`1 �- � � i I I ` SCHEDULE F - TEMPORARY MISCELLANEOUS WATER SERVICE. Size of Tap Per Month 3/4" $ 16.00 1" 24.00 1-1/4" 36.00 1-1/2" 60.00 2" 120.00 Larger than 2" - By special contract. I I Minimum Charge: One month's service. i "Temporary Service" (service for a period of less than twelve months) may, at the option of the City, be made available under this Schedule, except j that such temporary service shall be available only once to any customer. i Special Conditions: r (a) Where water connection installation is necessary, service will be furnished at a rate specified in this tariff, plus all cost of connection j --and disconnection, less the salvage value of the material used. Prospective customers shall be required to pay an estimated cost in advance, adjustment to be made after work is completed or service discontinued. (b) Prospective customers shall be required to make a deposit equal to an estimated two months billing for service to be rendered. (e) All plumbing must be installed in such a manner that the entire system may be protected during freezing weather by a single bleeder. (d) Fire hydrant use may be permitted by the Fire Department, and upon payment to the City Clerk of a water charge of not less than; Per use day $ 13.35 Per week 66.70 (Actual rate to be negotiated depending upon requirements . ) Sewer Charges: By special contract. SCHEDULE G - WATER SERVICE FOR BUILDING CONSTRUCTION Line Size Per Month { Page Seven, ORDINANCE NO. 266-75 3/4" $ 6.70 1" 10.70 1-1/4" 16.00 1-1/2" 26.70 2" 66.70 Larger than 2" - By special contract. CITY OF KENAI JAMES A. ELSON, Mayor ATTEST: Acting City Clerk FIRST READING .2 / v SECOND READING EFFECTIVE DATE Page Eight, ORDINANCE NO. 266-75 i r - r CITY OF KENAI _ ORDINANCE: NO. 267-75 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI INCREASING THE PRESENT SALES TAX LEVY FROM ONE. PERCENT TO THREE PERCENT BE IT ORDAINED by the Council of the City of Kenai, Alaska: Section 1. Section 7-25 of the Code of the City of Kenai is hereby amended to read as follows: "SALES TAX LEVY } Section 7-25. There is hereby levied a consumers' sales tax of lhrrte percent on all retail sales, on all rents, and on all services made or rendered within the City limits within the City of Kenai, measured by the gross sales price of the seller. Section 2. Section 7-26 of the Code of the City of Kenai is hereby amended to read as follows: "OWNERSHIP OF MONIES Section 7-26. The three percent consumers' sales tax levied herein, and all sales taxes collected, are City of Kenai monies, and the seller is at all times accountable to the City of Kenai for such monies." Section 3. Section 7-27 of the Code of the City of Kenai is herby amended to read as follows: / [,s�QL�� n -"7--2 r la "DEDICATION . (a Section 7-27. (a) One-tMM all revenues of the consumers' sales tax is dedicated to retire the general obligation bonds authorized at that certain special election held in the City of Kenai on the 25th day of May, 1971. It to the intent of this dedication that the proceeds shall be used exclusively i for the purposes of repaying. retiring or otherwise discharging the City of the obligations of the bonded debt or obligation assumed pursuant to the authorization of the special election. (b) of all revenues of the consumers' sales tax is dedicated to be applied to the debt service fund, to enable the City to meet its cash restriction requi ements as provided for in various bond ordinances. i (e) Pn6Jf&rd of all revenues of the consumers' sales tax is j dedicated to be applied against current operating expenses." Page One, ORDINANCE NO. 267-75 r • • w h , " Section 4. Section 7-30(a) of the Code of the City of Kenai is hereby amended to read as follows: 11TAX SCHEDULE Section 7-30. (a) The tax to be added to the sale price, charge or rental shall be in accordance with the following schedule: Price Tax $0.01 - 0.13 0.00 $0.14 - 0.46 0.01 $0.47 - 0.79 0.02 $0.80 - 1.16 0.03 ATTEST: _ .. Acting City Clerk I i - . FIRST READING SECOND READING �I EFFECTIVE DATE i IQ ". if Page Two, ORDINANCE NO. 267-75 �1 r� 1 a— 1 , l � • ' f M Ips i 1 CITY OF KENAI JAMES A. ELSON, Mayor L Items to be ratified Marathon Oil Company 4635.23 Middle man check Union Oil Company 4733.46 Middle man check National Bank of Alaska 130,000.00 TCD a t For Council•Meetinq of 6-4-75 r The following are disbursements over $500.00 which need Council approvals - VENDOR AMOUNT P. O. DraCRIPTION State of Alaska Public Employees Retirement 5379.63 For A_oril's contrit tion Kenai Utility Service Corporation 1592.06 May.hillinq Homer Electric Asso 3410.13 May billinq L Items to be ratified Marathon Oil Company 4635.23 Middle man check Union Oil Company 4733.46 Middle man check National Bank of Alaska 130,000.00 TCD a , =�c4 C rQ s t TO: Honorable Mayor $ City Council - FROM: Roland D. Lynn, City Manager DATE: June 3, 1975 SUBJECT: MISCELLANEOUS INFORMATION The following miscellaneous information may be of interest to you: 1. Just received word from the Environmental Protection Agency that the City will be receiving an additional $53,600 in regard to one of our sewer interceptor projects. We are receiving the additional money because of the release of impounded funds. This will bring our reimbursement for the project to 68.71 for a total reimbursement of $196,900. The effect is that this will increase the amount available in the bond funds for water and sewer improvements. 2. The fence around Fort Kenay was erected with the help of the 813th Engineers. Materials were paid for from bond funds previously authorized by the City Council. 3. The library plans will be completed by Monday, June 2, with advertising scheduled for 30 days immediately after acceptance. Therefore, con- struction bid openings will occur at the beginning of July. 4. I will be traveling to Juneau Wednesday (6/11). Purpose of the trip will be to try and close a contract with the State for jail services and attempt to obtain a commitment in regard to impact funds. The hearing on the Impact Funding will be held at that time and contacts in Juneau felt it would be advisable for me to be in attendance. S. The budget hearing scheduled for June 4th will be held at the Armory and scheduled for 8:00 p.m. as authorized by Council. 1 r KENAI PENINSULA BOROUG11 • REGULAR MEETING OF T11G ASSE1111LY JUNE 3, 197S, 7:30 P.M. UnRaur.:I ADM I N I ST RI ION R" 11 -DING P. 0. BOX 850 ASSEMBLY Utz McCloud fika Mullen 0IConneII Steiner Araess jorregautu r Burton 9 Callahan 4 Chenault 9 Cooper 10 Davis 9 Elson 10.67 Holds 9 Johnson 10.67 L7 11 �. SOLDOTNA, ALASKA 99669 -AGEN1)A- A. CALL TO ORDER AND ROLL CALL L S. PLEDGE OF ALLEGIANCE AND/OR OPENING CEREMONY i• C. AGENDA APPROVAL D. MINUTES, May 20, 1975 B E. ORDINANCE HEARINGS: (Parliamentary Procedures for Filling Blanks) (a) Ord. 7S-30 "An Ordinance Lapsing Certain rsond Authorizations of the South Kenai Peninsula Hospital Service Area and the North Kenai Fire Service Area" (b) Ord. 75.31 "An Ordinance Appropriating Funds tor Fiscal Year 1975-76 for the General Fund" (c) Ord. 75.32 "An Ordinance Appropriating tunas tor Fiscal Year 1975-76 for Capital Projects" (d) Ord. 75-33 "An Ordinance Appropriating tunas tor Fiscal Year -1975-76 for Economic Development" (e) Ord. 75-34 "An Ordinance Appropriating Funds for Fiscal Year 1975.76 for Roads and Trails" (f) Ord. 7S -3S "An Ordinance Appropriating rungs tor Fiscal Year 1974-7S for Roads and Trails" P. INTRODUCTION OF ORDINANCES: (a) Ord. 75.41 "An Ordinance Amending KPC o.1U.ub to Reduce the Kenai Peninsula Borough Sales Tax from 3$ to 28" (b) Ord. 75.42 "An Ordinance Amending KPC 26.10.020 to Exempt the Sale of Food from the Kenai Peninsula Borough Sales Tax" G. PUBLIC PRESENTATIONS (with prior notice) (a) Mr. Asaiah Bates H. COMMITTEE REPORTS (a) School Board, June 2, 197$ (b) Cook Inlet Air Resources Management Commission ASSEMBLY Utz McCloud fika Mullen 0IConneII Steiner Araess jorregautu r Burton 9 Callahan 4 Chenault 9 Cooper 10 Davis 9 Elson 10.67 Holds 9 Johnson 10.67 L7 11 �. F.11-- - I T J / AGENDA FOR JUNE 3. 1975 PAGE 2 I. MAYOR'S REPORT (b) (c) J. SCHOOL CONSTRUCTION AND CAPITAL I14PROVE.MENT RGPORTS (a) Nikolaevsk Plans (b) School Construction Cost Report with minutes of Construction Advisory Board Meeting of May 27, 1975 -!. K. OTHER BUSINESS " I (a) Res._ 75-33 "A Resolution Disposing of Certain Lands oy 'I�rade or Exchange" L. ASSEMBLY AND MAYOR: COMMENTS AND DISCUSSION M. I PUBLIC PRESENTATIONS N. INFORMATIONAL MATERIALS AND REPORTS (a) Minutes 1. News in Brief, School Board, and Agenda for 6-2.75 2. Cook Inlet Air Resources Management District 3. Construction Advisory Board, May 15 4. South Kenai Peninsula Hospital Service Area S April 23, March 19 �+ S. North Kenai Fire Board, April 16, May 14 (b) Correspondenco: 1. Governor Hammond: Res. 75-23 6 Res. 75-24 2. Senator Stevens: Res. 75-28 4. 3. Rep. Don Young: Res. 7S-28 - 4. Senator Mike Gravel: Iles. 75-28 S. D. W. Forbes: KCHS parking lot 6. Bill Shrior: approval of recreational subdivision 1 (c) AML Legislative Action Bulletin 017 s (d) OEDP Executive Committee Meeting -and Proposal to build Seward memorial (e) Memo from Mayor Thompson: Review of School Plans i r u t}. I: T r- s+►^' - . � .....� _.- ••- ---w. - r - � __ _. _-_ -,.- - - : _ - . _ _ . - .._ ..� -. - + - �' '....^� -fie, �--�-�--"---.,: -- .._ . ., -- d.3� ° � "„ - -- -• - _- ' _ w+�T11iF�sz�Y•'�5 .�,. `__ - . _-_.yam•- - .- ,_ .. ... .._ . � I .� , . � JI, w A G 0 N N A REGULAR MEETING, KENAI CITY COUNCIL .� May 21, 1975 - 8:00 N.M. PUBLIC SAFETY BUILDING ,- PLEDGE OF ALLEGIANCE 1 A. ROLL CALL: I - AGENDA APPROVAL B. PUBLIC HEARINGS: 1. Ordinance 263-75 - Providing for penalties for violation of Airport rules and regulations. 2. 3. f 4. C. PERSONS PRESENT SCHEDULED TO BE HEARD: 1. Oscar Thomas 3. D. MINUTES: 1. Minutes of Regular Meeting of May 7, 197S. i E. CORRESPONDENCE: 1. 2. F. OLD BUSINESS: 1. 2. 3. 1 4. G. NEW BUSINESS: 1. Bills to be paid - b4.11s to be ratified. 2. Ordinance No. 26S -7S - Amending the definition of "Taxicabs" and establishing size and body style restrictions•for taxicabs. ; 3. Resolution Na. 75-24 - Fixing Taxicab rates for the City of Kenai. 4. Resolution No. 75 -ZS - Establishing a bond cash investment pool. S. Resolution No. 75-26 - Feasibility ofneed for, and estimated costs of Improvement Dist./Carl F. Ahistram S/D. a 6. Resolution No. 75-27 -Commitment of maintenance of Beaver Loop Rd. 7. Assignment of Lease from Falcon Aviation to Raven Transit. S. Ordinance 264-7S - Presentation of 1975-76 Budget 9. Ordinance 266-7S - Wcter/Sewer Rate Increase �i 10. Ordinance 267.75 - Sales Tax Increase 11. Naming of now bridge 4 access road 12. AAI - Lease of Airport Lands or Facilities _M f 13. Council approval - disposal of FAA housing furniture 14. Payment to contractor - Airport Fencing Project - 15. Payment to Engineer Consult. Firm - Airport Fencing Project - I H. REPORTS 1. City Manager's Report 2. City Attorney's Report S. Mayor's Report 4. City Clerk's Report S. Finance Director's Report 6. Planning 4 Zoning Commission's Report 7. Borough Assemblyman's Report 1. PERSONS PRESENT NOT SCHEDULED TO BE HEARD: 1. 2. F 3. r , 1 f w I MINUTES REGULAR MEETING KENAI CITY COUNCIL MAY 21, 197S - 8:00 P.M. PUBLIC SAFETY BUILDING The Council gave the Pledge of Allegiance ROLL CALL: Members Present: A. L. Hudson, Richard Morgan, H. J. Steiner, Oscar Thomas, Edward Ambarian, and James Elson. Members Absent: James Doyle ff AGENDA I APPROVAL: There were no objections to the addition or deletion _ of the following items to the agenda. B-2 - Delete Appeal of Chester H. Cone B-3 - Delete Appeal of Robert"L. Borgen i C-1 - Add Oscar Thomas i G-9 - Add Ordinance 266-75 (Water/Sewer Rates) G-10- Add Ordinance 267-75 (Sales Tax Increase) G-11- Add Naming of new -bridge F, access road G-12- AAI - Lease of airport lands or facilities G-13- Council approval - FAA housing furniture disposal G-14- Pmt. to contractor - Airport Fencing Project G -1S- Pmt. to Engr. firm - Airport Fencing Project B: PUBLIC HEARINGS B-1: Ordinance 263-75 - Providing for penalties for violation I of Airport rules and regulations = City Attorney, C. R. Baldwin, recommended to the Council that Ordinance 263-75 be amended by deleting all of Section 1 (Regulations of Airport) as this section > appears in different form in the present Code. �3 - Councilman Steiner moved, seconded by Councilman Thomas, for adoption of Ordinance 263-7S as amended by the deletion .. _... of Section 1. The motion carried by roll call vote. Voting yes; Hudson, 1 Morgan, Steiner, Thomas, Ambarian, Elson. -.;--i C: PERSONS PRESENT SCHEDULED TO BE HEARD ! C-1: Mr. Oscar Thomas " Mr. Thomas advised that Kenai Utility Service Corporation intending to immediately file for "rate was a request of relief" with the Public Utility Commission. The exact ' amount of this request had not yet been determined. a i a 4 •i 4 MINUTES, KENAI CITY COUNCIL, MAY 21, 1975 PAGE 2 D: MINUTES Minutes of the Regular Meeting of May 7, 1975 There were no objections to the following amendments to the minutes of the meeting of May 7, 1975: 1. Regarding the proper purchasing procedures -- the materials in the fence could not be purchased without following proper bidding proc-e7ures. However, the fence can be purchased as a unit without following such procedures. (See page 3) 2. Regarding the motion by Councilman Steiner, seconded by Councilman Hudson -- should read as follows: (Pg. 4) "......that Council go ahead and authorize $5,000 as pa ment on account at this time without any conditions and upon receipt of BOR funds, the additional $7,000 will be paid contingent upon free title in exchange." The minutes were approved as corrected. E: CORRESPONDENCE There was no correspondence presented to Council. F: OLD BUSINESS There was no old business to come before Council. G: NEW BUSINESS Bilis to be paid - bills to be ratified Councilman Morgan moved, seconded by -Councilman Thomas,• that authorization by the City Council be given for payment of the bills as presented. The motion carried by roll call vote: Voting yes; Hudson, Morgan, Steiner, Thomas, Ambarian, Elson. G-2: Ordinance No. 265-75 - Amending the definition of "Taxicabs" and establishing size and body style restrictions for taxicabs City Attorney, C. R. Baldwin, emphasized that this Ordinance clearly defined that a taxicab can only be a sedan and not a bus. Councilman Steiner moved, seconded by Councilman Hudson, for introduction of Ordinance No. 265-75. Motion passed unanimously by roll call vote. LA J .I .. CI II I I I d I n _L. .�Ir ..3�ii 'K ai 6���i:Ill lYlll il!!I III MI II II II Ili!Ip ill I11lIlII111111 IiYll 111111 I I i I � MINUTES, KENAI CITY COUNCIL, MAY 21, 197S Page 3 J G-3: Resolution No. 7S-24 - Fixing Taxicab rates for the City of Kenai. This Resolution for an increase in taxicab rates was recommended by the Kenai Public Vehicle Commission. Council noted that there appeared to be some inconsistencies in the rates as presented and instructed the City Attorney _ to adjust the discrepancies accordingly. -� Councilman Steiner moved, seconded by Councilman Ambarian, to table Resolution No. 7S-24 until the Resolution has been corrected as requested by Council. I Motion passed unanimously by roll call vote. l JI a G-4: Resolution No. 7S -2S - Establishing a bond cash investment jPool Finance Director, John O'Connor, requested this resolution so that the City of Kenai is in compliance with the ` restriction requirements of the bond ordinances relating to the General Obligation Bonds and Terminal Revenue Bonds. Council felt there needed to be some deletions and additions to the Resolution and took the following action. Councilman Thomas moved, seconded by Councilman Hudson, for the adoption of Resolution No. 75-25 with the following ' amendments: Delete the third paragraph of Page One WHEREAS, the City is still in violation of these requirements; ' and , adjust paragraph S to read "WHEREAS, the City realizes that a concerted effort over a period of time would be { required to remedy such situation", the 9th paragraph of Page One should real procedures shall be estab- lished by resolution, and as prescribed by the American Institute of Certified Public Accountants and the Municipal P Finance Officers Association, in order........". Motion passed unanimously by roll call vote. .� G-5: Resolution No. 75-26 - Feasibility of, need for, and esti- _ mated costs of Improvement District/Carl F. Ahlstrom S/D. As there has been no written expression of need by the , property owners in the area for an Improvement District, i Council felt the City should not proceed without consensus of the property owners from the area in question. 0 I MINUTES, KLNAI CITY COUNCIL, MAY 21, 1975 PAGE 4 (G -S - Resolution No. 75-26 -- continued) Councilman Steiner moved, seconded by Councilman Ambarian, that Resolution No. 75-26 be tabled until such time a written request for the City to proceed is received from the property owners in the Carl F. Ahlstrom S/D. Motion passed unanimously by roll call vote. G-6: Resolution No. 75-27 - Commitment of the City of Kenai for - maintenance of Beaver Loop Road when the State of Alaska paves and develops the drainage system Councilman Thomas moved, seconded by Councilman Steiner, for the adoption of Resolution No. 75-27 with the amendment that the Resolution read all of Beaver Loop Road.. The motion passed unanimously by roll call vote. G Councilman Morgan advised the Council that a representative from the Office of the Governor had reported at the Chamber of Commerce luncheon that both Forrest Drive and Beaver Loop would be paved this construction season by the Department of Highways. G-7: Assignment of lease from Falcon Aviation to Raven Transit This constitutes the lease of counter space in the Kenai Municipal Airport terminal and the assignment of this lease from Falcon Aviation to Raven Transit until the j expiration date of the lease of June 30, 1975. Administration recommended authorization. i ' Councilman Steiner moved, seconded by Councilman Thomas, for approval of Assignment of Lease from Falcon Aviation to Raven Transit. i Motion passed unanimously with roll call vote with j Councilman Hudson abstaining. G-8: Ordinance 264-75 - Presentation of 1975-76 Budget City Manager. R. D. Lynn, in his budget message to the Council advised that the proposed 1975-76 budget would require an 18.9 Mill levy, 3% Sales Tax and 33% increase in water/sewer rates if so adopted. Councilman Ambarian moved, seconded by Councilman Morgan, for introduction of Ordinance 264-7S with the following amendment: page 2 -- show a break between the Fire Department and Communications (Fire Department $290,475 and Communications $76,977) I MINUTES, KENAI CITY COUNCIL, MAY 21, 1975 (G-8: Ordinance 264-75 -- continued) Motion passed by roll call vote. The Public. Hearing on the budget will be held on Wednesday, June 4, 1975. G-9: Ordinance 266-75 - Water/Sewer Rate Increase PAGE 5 This Ordinance,if adopted, would increase the water/ sewer rates by 33%. Councilman Steiner stated that he felt it was not necessary to declare an emergency in the enactment of this Ordinance. Councilman Ambarian moved, seconded by Councilman Steiner, for the introduction of Ordinance 266-75, with the amend- ment "and declaring an emergency" be deleted from the Ordinance. Motion passed unanimously with roll call vote. G-10: Ordinance 267-75 - Sales Tax Increase This Ordinance entails increasing the present sales tax levy from one percent to three percent. The percentage would be broken down as follows: 1% - Municipal Operations, 1S - debt service and 1t to eliminate prior years' deficit. Councilman Steiner moved, seconded by Councilman Thomas,for the introduction of Ordinance 267-75, with the amendment of the Ordinance by deleting the words "and declaring an emergency". Motion passed unanimously by roll call vote. G-11: Naming of new bridge and access road i At the request of the State Highway Department so that appropriate signs could be prepared, the Kenai Planning $ Zoning Commission was asked to select a name for the new bridge and access road. The Planning Commission recommends the following for Council approval: Kenai River Bridge Beluga Drive Council felt that the name Beluga Drive was not within the set standards for naming City streets and referred the matter back to the Planning Commission for further discussion. i I 1R 6 MINUTES, KENAI CITY COUNCIL, MAY 21, 1975 PAGE 6 ` (G-11: Naming of new bridge $ access road - continued) Councilman Ambarian moved, seconded by Councilman Hudson, to accept the Planning & Zoning Commission's recommendation ; of naming the new bridge the "Kenai River Bridge". Motion passed unanimously by Council. Councilman Ambarian moved, seconded by Councilman Hudson, that the naming of the access road be tabled and referred i back to the Planning $ Zoning Commission. i Motion passed unanimously by Council. I G-12: AAI - Lease of airport lands or facilities r i This lease from Alaska Aeronautical Industries is -for renewal of space in the Kenai Municipal Airport terminal. The lease is for a period of five years. After reviewing the space allocated for AAI in the Terminal Council felt there were some discrepancies in space leased and referred the matter to Administration for determination of the exact area being leased by AAI. Councilman Hudson moved, seconded by Councilman Steiner, - to table approval of the application for lease by AAI until the exact area leased is determined. Motion passed unanimously by roll call vote. . G-13: Council approval - disposal of FAA housing; furniture Administration recommended this item be tabled until such time an inventory of FAA housing furniture could be made' available for Council review. Decision approved unanimously by Council. G-14: Payment to contractor - Airport Fencing Project Final inspection by the Public Works Director and representatives of Wince-Corthell will be completed at the end of this week. Councilman Hudson moved, seconded by Councilman Steiner, that payment be made to Aspeotis Construction in the amount of $32,207.53. i Motion passed unanimously by roll call vote. I s , MINUTES, KENAI CITY COUNCIL, MAY 21, 1975 PAGE 7 G-15: Payment to Engineering Consulting firm - Airport Fencing Project As the engineering work on the Airport Fencing Project has been completed, both Administration and the Public Works Director, recommended that payment be made to the Engineering Consulting Firm. Councilman Hudson moved, seconded by Councilman Steiner, that payment in the amount of $3,000 be made to Wince- Corthell for their services on the Airport Fencing Project. Motion passed unanimously by roll call vote. G-16: Airport Lighting Control Panel Project Public Works Director, Phillip Aber, advised the Council that the City had advertised for bid on the Airport Lighting Control Panel Project and had received no responses. Mr. Aber reported that it was agreeable with the FAA for the'City to negotiate with a contractor. Councilman Hudson moved, seconded by Councilman Morgan, that the City Manager negotiate with a local firm, if possi- ble, or a firm to complete the wiring. Councilman amended his motion to state "...City Manager negotiate with a licensed contractor.....". Amendment approved by Councilman Morgan, who had seconded the motion. Motion passed unanimously by roll call vote. H: REPORTS H-1: City Manager's Report City Manager, R. D. Lynn, reported that he had filed an impact Statement with the State and it is presently being reviewed. He felt he would have some type of answer next week. Regarding the CAP Hangar -- work was being planned to fulfill the City's commitment on the original agreement with the Civil Air Patrol. After completion of the budget, Finance Department should finalize BOR projects for reimbursement to City. H-2 City Attorney's Report Contacted Carl Walter, Anchorage Attorney, with regard to Kenai Property Owners vs. City. Motion to dismiss case 9 H I A ■ � � i i i L . .. i.�ll. .....a� L,... i2 ,ii n�in,,i■e�n�,�l�f6IIII�IId MINUTES, KENAI CITY COUNCIL, MAY 21, 1975 PAGE 8 (H-2 - City Attorney's Report -- continued) will be heard July 2, 1975. If mo+iter is granted, we will file foreclosure action on an addi,ioral $70,000 to $100,000 in assessments. If motion is denied, foreclosure proceedings °! will be kept in limbo until hearing outhe merits. George Filler Case (Civic Center) - trial will be held on July i, iris, in Anchorage and will be handled by attorney Karl Walters. i The typing of the code has been finalized. Indexing and table of contents is underway. i City has received only one response to advertisement for Attorney -- applicant not a member of the Alaska State Bar. Legal Department has instituted the initial step in assess- ment foreclosures by sending out letters that would amount I to in excess of $150,000. H-3: Mayor's Report No Mayor's Report H-4: City Clerk's Report No City Clerk's Report H-5: Finance Director's Report An additional $20,000 in assessments has been turned over to the City Attorney for legal action. Peat, Marwick, Mitchell & Co. will be conducting interim type work in the City during the middle part of July and will return the middle of August to conduct the audit. The statements should be out by September 30, 1975. The April Financial Statement will be typed within the next two days and distributed to Council upon completion. H-6: Planninf. & Zoning Commission's Report The Chamber of Commerce has asked the aid of the Commission in selecting a suitable site for their information center. Vic Tyler requested permission to remove a mobile home presently on his property and replace with a new one. His application was denied and Mr. Tyler advised that he would appeal the Commission's decision. Two preliminary plats were approved. One final plat approved. r �.- •--mss. �w�T_ .. _. V � i n u uu i - -- - - - = -• - � -- �---rte-. ...�..�sr�oa:, . • •i.� � :'74,. ie�acw�i a i �T � � . _. . MINUTES, KENAI CITY COUNCIL, MAY 21, 1975 PAGE 9 H-7: Borough Assemblyman's Report Councilman Steiner reported on the actions of the Borough Assembly at their meeting of May 20, 1975. Several Ordinances for introduction and hearing were presented to the Assembly as well as action taken on various school matters including confirming the results of the Special Election of February 25 - School Bond Issue - and approval of expenditures for school construction and purchase of lands for school use. Mr. John Noyce and Mrs. Beverly Fillio were confirmed as new members of the Kenai Peninsula Borough Planning Commission. The Assembly also unanimously passed the rezoning within the City limits of Kenai for a Conservation area. Ordinance providing $10,000 Property Tax Exemption for Residences failed to make introduction. The Assembly also voted in favor of exempting banks and savings institutions from charging a 3% sales tax on services provided to their customers. I: PERSONS PRESENT NOT SCHEDULED TO BE HEARD None There being no further business, the Regular Meeting of the Council of the City of Kenai adjourned at 10:00 p.m. I Respectfully submitted, Sue L. Peter, Act ng City Clerk IIIR aRPRimb w { �! r•---:_::.- - --. �. , �_ — .- -� a< aar�.x:,snr- cn,weaewlnal CITY OF KENAI ` RESOLUTION NO. 75-24 I - I A RESOLUTION OF THE KENAI CITY COUNCIL FIXING TAXICAB RATES FOR THE CITY OF KENAI BE IT RESOLVED by the Council of the City of Kenai, Alaska., that the following schedule of rates shall constitute the legal charges for the respective taxicab services within the City of Kenai. i' $12.00 Charter per hour a tf I .00 Per mile } i .05 Per flag -drop j .20 Per minute ! .10 Per one -ninth mile . f ! DATED: At Kenai, Alaska this day of 1075, CITY OF KENAI i ► - ATTEST: r. I } ! I 1 I 4 -t i I it � I I i Acting City Clerk JAMES A. ELSONa Mayor -"-.a WINCE a CO IRTHELL % ASSOCIATES CONSULYING ENGINEERS P.O. Dox 3.394 274.1043 .� ANCHORAGE, ALASKA I - 99501 May 14, 1975 Our Job 75-4 I City of Kenai Box 580 Kenai, Alaska 99611 Subject: Engineering Services ADAP 8-02-0142-02 Gentlemen: .I Please consider this our invoice for services provided under out contract dated February 17, 1975. . p0 Final Design �� �GNG, $5100.00 . (Section G. Item 2) Balance Forward 4/11/75 3000.00 ) Total Due99rt�8— { I certify that these are true and correct charges and that no payment therefore has been received. ! - WI NCE - COIR/�T//N/HELL Assoc. , 1 i .. Alan N. Cortheii, P.E. ANC/swc k pbu\ r. Philip W. Sryron, P.1. John L.Cerulri, P.L.. Alan N. Corlholl, P.1. Nah O 91oINod, P.1. Frank W. Wirca, P, E, i i r • I r q 1 WINCE • CORTHELL & ASSOCIATES CONSULTING ENGINEERS O. !os 7.794 271.1813 h ANCHORAGE, ALASKA 99501 City of Kenai P. 0. Box 580 Kenai, Alaska 99611 Project: Kenai Airport Security Fencing ADAP Project No. 8-02-0142-02 Dear Sirs: May 28, 1975 Our Job N 73-1 Please consider this invoice in the amount of $2,377,49 as compensation for basic engineering services performed and now payable in accordance with Sec- tion B of our Agreement for Engineering Services for the subject project. Invoice Computation Construction cost to May 15, 1975 (P.C.E. #5) $299,840.78 Basic Engineering Fee - 6.8% x construction cost - Total due at may 15, 1975, 5299,840.78 x 0.068 ca $20,389.17 Less previous payments 18.011.68 Now Due A 2, 377-49 I certify that the above charges are true and correct and that payment therefor a has not been received. Wince - Corthell Err Assoc. ' t rank W. Wince - = FWW/swc a f' Philip W. Bryson, F. E, John L. Caratti, R E. 1' 4 a Alan N. Corihrll, P. t, Nd, O Klel,tod, P. E. Fronk W. Wince, P E, ' yy WINCE • CORTHELL & ASSOCIATES CONSULTING ENGINEERS O. !os 7.794 271.1813 h ANCHORAGE, ALASKA 99501 City of Kenai P. 0. Box 580 Kenai, Alaska 99611 Project: Kenai Airport Security Fencing ADAP Project No. 8-02-0142-02 Dear Sirs: May 28, 1975 Our Job N 73-1 Please consider this invoice in the amount of $2,377,49 as compensation for basic engineering services performed and now payable in accordance with Sec- tion B of our Agreement for Engineering Services for the subject project. Invoice Computation Construction cost to May 15, 1975 (P.C.E. #5) $299,840.78 Basic Engineering Fee - 6.8% x construction cost - Total due at may 15, 1975, 5299,840.78 x 0.068 ca $20,389.17 Less previous payments 18.011.68 Now Due A 2, 377-49 I certify that the above charges are true and correct and that payment therefor a has not been received. Wince - Corthell Err Assoc. ' t rank W. Wince - = FWW/swc a f' Philip W. Bryson, F. E, John L. Caratti, R E. 1' 4 a Alan N. Corihrll, P. t, Nd, O Klel,tod, P. E. Fronk W. Wince, P E, i.,.._. _.k--.�"""" •-_.: .. w '_"_s..•s...—.�.a.y...z....` � ::_. —. _..�j�-,;,.a„'_n .�i nni,. . ..:., ��i ��b � i . �lirl I II I It, .-� � WINCE 9 CORTHELL & ASSOCIATES CGNSULTING ENGINEERS P.O. a*& 9.394 274.1043' ANCNORAGE, ALASKA 99501 May 6, 1975 Our Job X173-1 City of Kenai Ii P. 0. Box 580 . ' '' Kenai, Alaska 99611• !� Project: Kenai Airport, Security Fencing ADAP Project No, 8-02-0142-02 • Dear Sirs: Please consider this=invoice in the amount of $1323.25 as compensation for resident 1 inspection services, including construction staking, performed in accordance with F . ' Section C of,our Agreement for Engineering Services, during April 1973 for the subject. ' Summary of Services I 046I NEER . Resident Inspection, Officer of firm 34.hrs. 0 27.00 $918.00 , k - SURVEY ' 2 -pian party 1.0 hr. A 31.50 t. 31.50 1 3 -Man party 13.5 hrs . A 42.50 5�..,-i3 . ., M Total this Invoice .$1523,25 } I certify that the above charges are true and correct and"that payment therefor has not been received. Very truly yours,* • . 01 WIN6E oo. CORTHEI.4 6 Assoc: • Prank W. Wince ' ` ' • . WSW 4 r • ' 1' E Jafit► L. �fr�lti. PIE.. Atan N. Ca1haU. P: E. • W111 06 K19141.4. R R. #4.g i I wd.*; ii 7 1 i 1 IM F IIIIII,IIII I f � May 23, 1975 Inventory on the F.A.A. Houses 100 1. 9 by 12 rug 101 J 1. Dresser - metal, with 4 drawer's 2. 9 by 12 rug 102 1. Mangle 2. 4 - dressers - metal, 4 drawers ' 3. 2 - sets double bed springs 4. 1 night stand. - metal . S. 1 - rug -11 by 14 103 1. 1 -chair -,-wood, upholstered seat 2. 1-mirror-36by 40 3. 1 -dressing table- metal 4. •1 -desk-, metal S. 1 -single bed frame r. kr I r 0 A -1 1. 3 -chairs-, woo4,upholstered seat 2. 1 -electric range 3. 1 -dresser, - metal, 6 drawers 4. 2 -night stands, metal S. I- coffee table 6. 1 -dresser, - metal, 4 drawers 7. 1 -ironing board airport terminal bldg. 1. 2 -desks, -wood These desks came from the F.A.A. houses. 2 Irk Nal -I FISHER & HORNADAY ' Mayor, City Council & ATTORNEYS T® City Manager Box 397 Box 580 Professional Building i Kenai, Alaska Kenai, Alaska 99611 Phone 283-7565 • q DATd.O .TU119- _Z5-- SUBJECT 1 • M Enc l sed is a copy of a letter from Rep. i O Hugh Malone to George Day, ° E with o ants on the L3gislative program. 5 Since, r i A G _ E JAMES ORNADAY -- Chambe gislative Committee 5 ,111 SIG IdEU UATL OF HCFLY_-.-_- • R - E P L Y `{ r I SIGNED 1 - i t . r I E' -a, .I it • Ir Nal -I III III 1111 AMR 1.161 LL -L lLI_!..-111- .JI-l.I■ .- LLii I I u April 19, 1975 Nr. George Day President Kenai Chamber of Commerce P.O. Box 497 Kenai, Alaska 99611 Dear Mr. Day: Please excuse the delay in answering your letter on the status of the Kenai Chamber of Commerce legislative program. Most of the problems to which you refer require substantial accounts of state funding. At this time we have a projection of 550 million dollars available in cash to the State through FX176, and over 580 Trillion dollar budget requests. So the amount of progress on the progran. will depend to a large extent on whether or not this session of the legislature solves the state's financial problems. .We must find major new sources of revenue for the State of Alaska if we are to expand any programs. I would think that the present State programs in stream rehabilitation and fisheries development will continue. -This is a priority as ex- pressed by the last legislature and also by this legislature. Fishing Industry has a major potential in the State but it must be developed. It is renewable resource that can be with us forever. ' On the question of additional return of State Revenues I would say that without major new sources of state revenues available to the State we can only hope for marginal improvements of the state revenue sharing system. The House Finance Committee has reported out a Senate Bill which would increase the revenue sharing for fire protection by 50% raising it to $7.50 per capita from the present rate of $5.00. I would like to see a major increase in revenue sharing to municipalities In Alaska. I think this increase should be on the order of 50$ to account for inflation since the program was instituted. I; Regarding the upgrading and paving of the Beaver Loop and Forrest Drive Roads, I am in communication with the Commissioner of Highways on this subject. Also, I will report at that time on the status of the Kenai Spur project. I I � , tlb '�•�411 �sI I I' I 1;1111. ' L I i ar u 2 Civic Center funding is not in the cards rir-ht now. If we can get the State i.evenuac problens straifhteneu out the best way to handle this would be throur•h a state reneral obligation bond issue on tno 1976 ballot. As you know, previouc stato bond issues pro- viding for Civic Center construction tr rour bout Alaska was heart.w%:ly defeated twice by Use voters, once in 1972 and again in 1973. I would say that chance3 of getting a direct appropriation for thin purpose are not good since it is not one of the major priorities facing the State of Alaska. I would hope that we could perhaps rot some planning money set up for these things. Regarding the harbor Construction - as you know, cork started on a small boat area in the Kenai 'rover. Additional funds are made available in the 1972 bond issue. I do this this legislature will make sufficient funding available so that we will have a decent snall boat harbor in the Kenai River in the near future. A i•,edium Draft FFarbor is another question. I have been in communication with the Division of Water and Harbors on this subject and am now awaiting their reply. 1'o sum things up, I have to tell you plainly at this tire the major new expenditures either for new programs or capital projects cannot be sustained by the state's current financing:. Ia fact, the state's present budget cannot be sustaiued by the state's present revenues. I hose we can solve this problem during this session of the legislature. If we can do this, we can begin to meet the needs that you express. Sorry to be so bleak.. Sincerely, FHugh Malone I w1srs i • i ri s t f t � r t I f �sktt �ttte �le�islxture REPRESENTATIVE 1\� HELEN D. BEIRNE COMMITTEES POUCH V HEALTH. EDUCATION JUNEAU, ALASKA 99801 AND SOCIAL SERVICES P.O. BOX 4-80 ANCHORAGE, ALASKA 99809 STATE AFFAIRS �6aw of FV=mtdftv9 1 June 1975 James A. Elson, Mayor City of Kenai P.O. Box 580 Kenai, Alaska 99611 Dear Mayor Elson: Early this month I introduced a proposed piece of legislation (HB 478) which addresses some of the inequities in our statewide taxing structure. Basically it would give the municipalities the option to tax income and wages in reference to the provisions of the State income tax which is in effect at that time. This would allow for the levying of taxes on the wages of transient workers and the income of seasonal self owned businesses such as fishing boats, etc., as well as taxing the wages of the more permanent wage earner and the net income of businesses. At the same time as the municipality exercised its option to tax wages and income it would phase out over a three year period the use of the general property tax for such broad based public needs such as education, transportation systems, health services, libraries, hospital facilities and recreational facilities. By the beginning of the third fiscal year of enactment the general property tax would be used for only those purposes directly related to protection and regulation of property or property values. This bill also would repeal the gross business license tax as the net income of the businesses with tax. ' On the first hearing of this bill before the Community and Regional Affairs Committee, it was very apparent that the fear of the revenue loss by the immediate repeal of the business license tax was very real. Therefore a proposed committee substitute was draw up which will be considered during the next Legislative session. This committee substitute addresses itself to the major components of the original bill but also addresses itself to a gradual phasing out of the gross business tax. The substitute bill would decrease the sum which is paid in - a $25 license fee for each business, to a sum equal to one-fourth rather than one-half of one percent of the gross receipts in excess of $20,000 from the business during the year for which the license is issued until January 1, 1977 and thereafter at a rate of 1/8 of one per cent until January, 1979. The gross busi- ness tax would be repealed in total by January 1, 1979. I � s��lll �l llll I 11 ' I S -2- It appears to me that a municipal tax structure of this sort would decrease the inequitable property tax which now exists, eliminate the regressive business license tax and place the re- sponsibility of broad public activities on the wage earner and net income where it belongs. It also appears to me that if it is tied to the state income tax that it would not be that dif- ficult or expensive to administer whether it was collected on the state level and returned to the municipality or whether it was collected by the municipality itself. I would appreciate it if you would look over the original F bill and the proposed draft of the committee substitute and let me know what you think of this concept. If you have time to address yourself to this question I would like to have any comments sent to my Anchorage address which is Box 4 -BB, Anchorage, Alaska, sometime during the summer or before the next Legislative session in January. Thank you very much for your consideration of this matter. Sincerely, Helen D. Beirne Encl: HB 478 Draft of proposed CS !� n 4 f1 I r f .I i i 1. the date when it becomes effective. 2; ARTICLE 7. MUNICIPAL WAGE TAX. 3 Sec. 29.53.500. MUNICIPAL WAGE TAX. (a) A municipality may by i 41 ordinance levy and collect a wage tax on all wages earned by employees s within the municipality. 6 (b) Wages are earned within a municipalLty if the wages are earned 71 for work done or for services performed within the municipality. eh 1 (c) Exemptions from the tax may be grants! by the municipality. ` 9- Sea. 29.53.510. RETURNS AND THE PAYMENT OP TAX. (a) On or before . 10j i April 15 of each year, each employee subject to a tax shall make and ` 11 file a return pregcribed by the municipality on wages earned during the ` 12 I previous calendar year setting out the wages earned within the munici- 13 pality, the amount of tax due or overpayment of the tax, and other - 14 information required by the municipality. Is 1 < (b) The total amount of tax is due and payable on or before 16 April 15 of each year for wages earned within the municipality for the t previous calendar year. Sec. 29.53.520. CREDITS. (a) A municipality may provide for 19 credits against the tax authorized in sec. 500 of this chapter of other _ 20 _ taxes paid to that municipality. 21 , (b) The amounts deducted and withheld under see. 530 of this 22 chapter during a calendar year shall be allowed as a credit to the 23 -- employee against the tax levied by the municipality. _ ... .. 24 (o) All payments made to the municipality or to another municl- 25 pality in the state for municipal income tax is a credit to the employee 26 against the wage tax. 27 Sec. 29.53.530. WITHHOLDING. (a) Every employer maintaining an �. 28 - office or transacting business within the state and making payment of 29 wages taxable by a municipality shall withhold and deduct a tax from HB 476 -2- 4 1 failure continues. The penalty may not exceed 25 per cent in the 2 aggregate. 3 (b) When the tax levied becomes delinquent, it bears interest at 4 the rate of eight per cent a year. S Sec. 29.53.570. LIEN. (a) If a person who is liable to pay a tax 6 neglects or refuses to pay the tax after demand, the amount (including penalty and interest) is a lien in favor of the municipality upon all 8 property, and rights to property, real or personal, belonging to the 9 person. t0 (b) The lien arises at the time of delinquency and continues until it the liability for the amount is satisfied or the lien is foreclosed. 12 Sec. 29.53.580. PRIORITY AND ENFORCEMENT OF TAX LIENS. The 13 priority of and the procedures for enforcement of tax liens set out in 14 AS 43.20.240 - 43.20.270 apply to taxes levied under sec. 500 of this �' IS chapter except enforcement is by the municipality. 16 Seo. 29.53.590. DEFINITIONS. In this chapter: 17 (1) "employee" means those employees defined in sec. 3401 of W the United States Internal Revenue Code as that definition exists on the 19 effective date of this Act; 20 (2) "employer" means those employers defined in sea. 3401 of 21 the United States Internal Revenue Code as that definition exists on the " 22 23 effective date of this Act; -_ 24 (3) "wages" means those wages defined in sec. 3401 of the 25 United States Internal Revenue Code as that definition exists on the 26 effective date of this Act. * 27 Sec. 2. AS 43.20.290.is amended to read: Sec. 43.20.290. EXCLUSIVE STATE AUTHORITY. Except as provided in 28 29 AS 29.53.470 - 29.53.590, no [NO] tax may be levied and collected upon the net income of resident or nonresident individuals by a general law �I j HB 478 -4- N-OTICE PLEASE DISREGARD PREVIOUS IMAGE. DOCUMENT HAS BEEN REFILMED ON FOLLOWING FRAME. I - 1 1 E . , I t l+ 1} ,' X, Introduced: 5/3/75 Referred: Community & Regional Affairs and Finance BY H.BEIRNE,FISCHER,SULLIVAN 11N THE HOUSE AND SWANSON 2 HOUSE BILL NO. 478 3 IN THE LEGISLATURE OF THE STATE OF ALASKA I 4 NINTH LEGISLATURE - FIRST SESSION 5 A BILL 6 Por an Act entitled: "An Act relating to municipal tax; repealing the Alaska 7' Business License Tax; and providing for an effective 8 date." - 913E IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 s Section 1. AS 29.53 is amended by adding new sections to read: 11; ARTICLE 6. MUNICIPAL INCOME TAX. 12 Sea. 29.53.470. AUTHORIZATION. A municipality may by ordinance 13 adopt an income tax which incorporates by reference the provisions of 14 the state income tax in effect at the time of adoption and as subse- quently amended. The rate of tax shall be a percentage, as prescribed i 16 by ordinance, of the tax liability determined for state income tax purposes. 18. Sec. 29.53.480. ADMINISTRATION. The income tax imposed under 19 sec. 470 of this chapter shall be administered by the Department of 20 Revenue. Taxes collected under a municipal income tax shall be distri- buted to the municipality imposing the tax after deduction by the ! 22 ' department of an amount sufficient to cover the necessary and legitimate 23 __-_.... additional expenditures incurred by the department in administering the 2A tax. The regulatione promulgated relating to state income tax shall - - -' 25 apply to munloipai income tax except when in the judgment of the com- ". i 26 ! missioner particular regulations would be inconsistent or not feasible 27 to administer if applied to municipal income tax. 28 ,. Sea. 29.53.490. CERTIFICATION. A municipality adopting an income 29 tax shall certify to the Department of Revenue the rate of the tax and -1- HB 478 I the date when it becomes effective. 2 ARTICLE 7. MUNICIPAL WAGE TAX. 311 Sec. 29.53.500. MUNICIPAL WAGE TAX. (a) A municipality may by 4 ordinance levy and collect a wage tax on all wages earned by employees S within the municipality. 6 (b) Wages are earned within a municipally if the wages are earned 7. for work done or for services performed within the municipality. e' (c) Exemptions from the tax may be granted by the municipality. 91 Seo. 29.53.510. RETURNS AND THE PAYMENT OF TAX. (a) On or before IM I April 15 of each year, each employee subject to a tax shall make and 11 file a return prebcribed by the municipality on wages earned during the 12 previous calendar year setting out the wages earned within the munici- 13 pality, the amount of tax due or overpayment of the tax, and other 14 information required by the municipality. IS (b) The total amount of tax is due and payable on or before 16 April 15 of each year for wages earned within the municipality for the 17 previous calendar year. le See. 29.53.520. CREDITS. (a) A municipality may provide for 19 credits against the tax authorized in sec. 500 of this chapter of other 20 taxes paid to that municipality. 21 , (b) The amounts deducted and withheld under sec. 530 of this 221 chapter during a calendar year shall be allowed as a credit to the 23 E employee against the tax levied by the municipality. 24 (c) All payments made to the municipality or to another munici- 25 pality in the state for municipal income tax is a credit to the employee 26 against the wage tax. 27 See. 29.53.530. WITHHOLDING. (a) Every employer maintaining an 28 office or transacting business within the state and making payment of 29 wages taxable by a municipality shall withhold and deduct a tax from HS 478 -2- a I each of his employae'3 wages in an amount equivalent to the amount of 2 tax due on the wages for that year. The manner and amount of tax to be 3 withheld shall be prescri3ed by the municipality imposing the tax. 4 (b) Every employer required to deduct and withhold a tar, under S this section shall fale a return and pay over the tax in the manner and 6 at this times i 1 Prescribed by the mon. aipali.ty. 7 (a) Every employer required to deduct and withhold a tax under I a this sec:iot. from the wages of an employee shall furnish to each em- ' 9 ! ployee on or before February 1 of each year a statement prescribed by Io the municipality letIng out the total amount of wages paid by the If employer to the employee, the miount of wages earned within the munici- 12 pality, the amount of tax deducted and withheld, and other information 13 the municipality may require. 14 flee. 29,53.540. REFUNDS. A munioi.pality may refund overpayment of IS tax, taxes crroneously or illegally assessed or collected, penalties 16 collected without authority, an9 taxes that are fo4nd unjustly assessed. 17 or excessive in amount, or otherwise wrongfully collected. 18 19 Sec. 29.53.550. APPEALS. (a) A person aggrieved by the action of 20 a municipality in fixing the amount of tax or imposing a penalty may 21 appeal to the municipality. The municipality shall provide the proee- 22 Jure for appeals including the time in which appeals may be taken, 23 notice, hearing and decision. 24 (b) Within 30 days after a decision by the municipality after 25 a hearing, a person aggrieved by the decision may appeal to the superior court. 26 27 Sec. 29.53.560. PENALTY AND INTEREST. (a) If an employer or 28 employee fails to file a return or pay a tax on the date required by the 29 municipality, a penalty shall be added to the tax not to exceed five per cent of the tax for each month or fraction of the month during which the -3- HS 478 a I nr��irr�m u.�m ��uuai o ---�� - ",.k'A,k.1.a IW/GlGIYIII�,lmll.l l IIIIII f ' I failure continues. The penalty may not exceed 25 per cent in the 2 aggregate. 3 (b) When the tax levied becomes delinquent, it bears interest at 4 the rate of eight per cent a year. 5 Sec. 29.53.570. LIEN. (a) IP a person who is liable to pay a tax 6 neglects or refuses to pay the tax after demand, the amount (including 7 penalty and interest) is a lien in favor of the municipality upon all 8 property, and rights to property, real or personal, belonging to the 9 person. to (b) The lien arises at the time of delinquency and continues until t1 the liability for the amount is satisfied or the lien is foreclosed. 12 See. 29.53.580. PRIORITY AND ENFORCEMENT OF TAX LIENS. The 13 priority of and the procedures for enforcement of tax liens set out in 14' AS 43.20.240 - 43.20.270 apply to taxes levied under sec. 500 of this 15- chapter except enforcement is by the municipality. 16 Bea. 29.53.590• DEFINITIONS. In this chapters 1? (1) "employee" means those employees defined in sea. 3401 of i8 the United States Internal Revenue Code as that definition exists on the 19 effective date of this Act; 24 (2) "employer" means those employers defined in see. 3401 of 21 the United States Internal Revenue Code as that definition exists on the 22 effective date of this Asst; 23_ (3) "wages" means those wages defined in sea. 3401 of the United States Internal Revenue Code as that definition exists on the 25 effective date of thle Act. 26 w 27 Sec. 2. AS 43.20.290.is amended to read: Sec. 43.20.290. EXCLUSIVE STATE AUTHORITY. Excent as -provided in 26 AS 29.53.470 — 29.53.590, no (NO] tax may be levied and collected upon 29 the net income of resident or nonresident individuals by a general law HB 478 -4- it 1 -5- HB 478 I I city or by a home rule city or any other political subdivision of the 2 state. 3 • Sec. 3. AS 29.53.050 is amended to read: a Sec. 29.53.050. TAX LIMITATION. No municipality may levy and s tax for any purpose in excess of three per cent of the assessed valua- 6 tion of property within the municipality in any one year. A munici- 7 nality which levies an income tax or a wase tax may not use Proceeds of 5 '.s the general Property tax 9 (1) for education during the first fiscal year following 10 adoption of a municipal income tax or wase text. 11 (2) for education. transportation systems. health services 12 and hospital facilities. libraries or, recreation facilities during the 13 second fiscal year fol jk?!qjg adoptf?n of a municipal; income tax or wage 14 ax: :s (3) for any of the purposes listed in (2) of this section or 16 for any other purposes not specified by the aovernina body of the i 17 munieivality by ordinance as being directl.v related to protection or le regulation of property or property values after the expiration of the 19 second fiscal year followinf adoption of a municipal income tax or wage 20 tax; if the aovernina body determines a purpose is only so related in 21 part„ it may determine in the ordinance a percentage of the cost which 22 may be borne by general property tax. 23 * Sec. 4. AS 43.70 is repealed. 2* -: * Sec. 5. This Act takes effect immediately in accordance with AS 01.10.- 25 - )7O(c). i 26 27 28 4 29 1 -5- HB 478 I ■ ,�=•��`■ .I ii-^•,a•ui�;��i'nnnca`�::s�icL..�,�L�•"�..... - - �'--•—�Mtsu�llVYF•L aaua �.-1 ._ 'u - �-_—_.__.._ )riginal sponsor: H. Beirne, Fischer, i Sullivan and Swanson a• tl . BY THE COMMUNITY AND 1 ;{N THE HOUSE REGIONAL AFFAIRS COMMITTEE 2; CS FOR HOUSE BILL NO. 478 3 IN THE LEGISLATURE OF THE STATE OF ALASKA 4 NIM LEGISLATURE - FIRST SESSION s .A BILL e'ior an Act entitled: "An Act relating to municipal tax; and the Alaska :•7' Business License Tax; and providing for an effective 8 date." 9 i IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 • Section 1. .AS 29.53 is amended by adding new sections to read: 11 ARTICLE 6. MUNICIPAL INCOME TAX. 12 • Sec. 29.53.470. AUTHORIZATION. A municipality may by ordinance 13� adopt an income tax which incorporates by reference the provisions of 14j the state income tax in effect at the time of adoption and as subse- quently amended.. The rate of tax shall be a percentage, as prescribed •16 by ordinance, of the tax liability determined for state income tax ?' 17 purposes. k 1s .19 See. 29.83.480. ADMINISTRATION. The income tax imposed under � sec. 470 of this chapter shall be administered by the Department of 20 Revenue. Taxes collected under a municipal income tax shall be distri- i i .211 = bated to the municipality imposing the tax after deduction by the i !22 • I 1 - rn department of an amount sufficient to cover the necessary and legitimate 3 1 _ additional expenditures incurred by the department in administering the 24 tax. The regulations promulgated relating to state income tax shall 25 apply to municipal income tax except when in the judgment of the com- . 2e missioner particular regulations would be inconsistent or not feasible a 27 to administer if applied to municipal income tax.=t:.�•'` 28 Seo. 29.53.490. CERTIFICATION. A municipality adopting an income 19 tax shall certify to the Department of Revenue the rate of the tax and • I}!~ 4.• -1- ;. CSHB 478 . . .` .!• ••,`�• Iii/VIM ifI �ti. Y/ rti .. t :�•a1• !•'MI 700 ' �S; i•_ �. ••T.j. � �� ori • .. Atl b: 1.. • w.i+ r l RC ' 1 the date when it becomes effective. ' 2 ARTICLE 7. MUNICIPAL WAGE TAIL. 3 Sec. 29.53.500. MUNICIPAL 41AGE TAX. (a) A municipality may by _ 4 ordinance levy and collect a wage tax on all wages earned by employees ° 4 3- within the municipality. 16 (b) Wages are earned within a municipality if the wages are earned for work done or for services performed within the municipality. (c) Exemptions from the tax may be granted by the municipality. { _ v.. Sec. 29.53.510. RETURNS AND THE PAYMENT OF TAX. (a) On or before 10:. " April 15 of each year, each employee subject to a tax shall make and .11' Pile a return prescribed by the municipality on wages earned during the f • 12, previous calendar year setting out the wages earned within the munici- ! 13 pality, the amount of tax due or overpayment p yment of the tax, and other ' 11 information required by the municipality. e' IS (b) The total amount of tax is due and payable on or before A e Ib April 15 of each year for wages earned within the municipality for the 4 previous calendar year. h Is_ Seo. 29.53.520. CREDITS*. (a) A municipality may provide for 19 credits against the tax authorized in sec. 500 of this chapter of other I - 20 taxes paid to that municipality. - 21. (b) The amounts deducted and withheld under sec. 530 of this k chapter during a calendar year shall be allowed as a credit to the 23 employee against the tax levied by the municipality. d - - 24. (o) All payments made to the municipality or to another munici- tt -- 25 pality in the state for municipal income tax is a credit to the employee 26 i 1 against the wage tax. 27 See. 29.53.530. WITHHOLDINO. (a) Every employer maintaining an 20 office or transacting business within the state and making payment of.'* 29 wages taxable by a municipality shall withhold and deduct a tax from •;�;, CSHB 478 -2- w'= �- 11 r 4 _ 1 each of his employee's wages in an amount equivalent to the amount of 1 tax due on the wages for that year. The manner and amount of tax to be 3 withheld shall be prescribed by the municipality imposing the tax. 4 (b) Every employer required to deduct and withhold a tax under ! s this section shall file a return and pay over the tax in the manner and e'at the time prescribed by the municipality. .y 7, (a) Every employer required to deduct and withhold a tax under e this section from the wages of an employee shall furnish to each em - 9 ployee on or before February 1 of each year a statement prescribed by 1c, the municipality setting out the total amount of wages paid by the •t1 employer to the employee, the amount of wages earned within the muniai- ` 13 't3 pality, the amount of tax deducted and withheld, and other information the municipality may require. 14 Ssa. 29.53.540. REFUNDS. A municipality may refund overpayment of .. As tax, taxes erroneously or illegally assessed or collected, penalties i •16' collected without authority, and taxes that are found unjustly assessed • 17 or. excessive in amount, or otherwise wrongfully collected. • Seo. 29.53.550. APPEALS. (a) A person aggrieved by the action of 19 ! a municipality in fixing the amount of tax or imposing a penalty may 20 appeal to the municipality. The municipality shall provide the proce- 41 lure for appeals including the time in which appeals may be taken, xZ _ notice, hearing and decision. 231 (b) Within 30 days after a decision by the municipality after _ 24Ii a hearing, a person aggrieved by the decision may appeal to the superior ss' E court. 26 Sec. 29.53.560. PENALTY AND INTEREST. (a) If an employer or .%. .,. 27 ,. ,- .. employee falls to file a return or pay a tax on the date required by -the •;I a municipality, a penalty shall be added to the tax not to exceed five per .=+ 29 cent of the tax for each month or fraction of the month during which the :, .. CSH9 478 1 .. ;. � ,'',�-• ;.+. w, .,,. ''11''x: . • fYfi F ,, ' .y.. , �:;%:�' • !;•; :•�Cr.a._-'1 •►J,�!'•'� _riJ,t_ ' i ,L�l�,}r1L i7' � . R :•a. •'�,li L^�'�'.-..v�•TI.Vi•w; ',''�•~J.�i74-�. •�' .. r 4 a. L k � i u i !I z i 1 failure continues. The penalty may not exceed 25 per cent in the 2 aggregate. 3 (b) When the tax levied becomes delinquent, it bears interest at 4the rate of eight per cent a year. s Seo. 29.53.570. LIEN. (a) IP a person who is liable to pay a tax I6 neglects or refuses to pay the tax after demand, the amount (including • 7 penalty and interest) is a lien in favor of the municipality upon all property, and rights to property, real or personal, belonging to the 9 person. . 10 • � (b) The llen.arises at the time of delinquency and continues until tl the liability for the amount is satisfied or the lien is foreclosed. IZ Sec. 29.53.580. PRIORITY AND ENFORCEMENT OF TAX LIENS. The 13 priority of and the procedures for enforcement of tax liens set out in 14 AS 43.20 .240 - 43.20.270 apply to taxes levied under sec. 500 of this 15 chapter except enforcement is by the municipality. 1e Sec. 29.53.590. DEFINITIONS. In this chapter: • 17 (1) "employee" means those employees defined in sec. 3401 of la the United States Internal Revenue Code as that definition exists on the 19 effective date of this Act; m (2) "employer" means those employers defined in sec. 3401 of ` 21 the United States Internal Revenue Code as that definition exists on the 22 effective date of this Act; 23 (3) "wages" means those wages defined in sec. 3401 of the 24 United States Internal Revenue Code as that definition exists on the 25 effective date of this Act. a .26 2' • Sec. 2. AS 43.20.290 is amended to read: Sec. 43.20.290. EXCLUSIVE STATE AUTHORITY. Except as provided in 28 AS 29.53.470 - 29.53.590, no [NO] tax may be levied and collected upon 29 the net income of resident or nonresident individuals by a general law CSHB 478 -4- WORK DRAFT COPY WORK DRAFT COPY WORK DRAFT COPY ) 1 2- 3 4 1 S 6 A 9 t0 11 12 13 .14 Is 46 W 18 19 20 21 22 �23 24 23. 24 21 28 29 I city' or by a home rule city or any other political subdivision of the state. * Sea. 3• AS 29.53.050 is amended to reads Sec. 29.53.050. TAX LIMITATION. No municipality may levy and tax for any purpose in excess of three per cent of the assessed valua- tion of Property within the municipality in any one year. A munici- pality which levies an income tax or a wage tax may not use proceeds of, the general property tax (1) for education during the first fiscal year following adoption of a municipal income tax or wage tax; (2) for education, transportation systems. health services, and hospital facilities, libraries or recreation facilities durini� the second fiscal year following adoption of a municipal income tax or wase,• {3} for any of the purposes listed in (2) of this section or for any other purposes not specified by the governing body of the municipality by ordinance as -being directly related to protection or Esulation of property or property values after the expiration of the second fiscal year followinf, adoption of a municipal income tax or wage tax; if the governing body determines a purpose is on3a .so related in part, it may determine in the ordinance.a percentage of the cost which may be borne by general property tax. +► Sec. 4. AS 43.70.030(a) is amended to read: i (a) The license fee for each business is,#25 plus a sum equal to one-fourth LONE -HALF) of one per cent of the gross receipts in excess of $20,000 from the business during the year for which the license is issued tit ZY nLary 1. 1077 thereafter at a X&I of an -e ahth of ane flet cent C, EXCEPT THAT ALL OROSS vOLUME IN EXCESS OF $100,000 A YEAR IS TAXED AT THE RATE OP ONE-QUARTER OF ONE PER CENTS. The annual license -5- CSHB 478 01 -11 t ,WORK ._. _ _..e_.._.._.._: DRAFT COi'Y WORK DRAFT COPY I fee paid by a professional person to his professional board shall be j 2 credited against the initial fee required under this chapter. 1 - 3- # Seo. 5. AS 43.70 is repealed. YI 4 • See. 6. Section 5 of this Act takes effect January 1, 1979. s • • Sec. 8. Sections 1, 2, 3 and 4 of this Act takes effect immediately 6.-a accordance with AS 01.10.070(c). 9 so 11 X12. • • 13: �. .14 1s 16; to + J X21- 4 22- 23 24 _ • 25 ' • 26 r27 �26 V X29 yy 3SUB 478 -11 t