HomeMy WebLinkAbout2017-07-05 Council Packet
KENAI CITY COUNCIL – REGULAR MEETING
JULY 5, 2017 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
http://www.kenai.city
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda (Public comment limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non-
controversial by the council and will be approved by one motion. There will be
no separate discussion of these items unless a council member so requests,
in which case the item will be removed from the consent agenda and
considered in its normal sequence on the agenda as part of the General
Orders.
B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes
per speaker)
1. Johna Beech, Kenai Visitor and Cultural Center – First Quarter 2017
Statistics Report. .................................................................................... Pg. 5
2. U.S. Army Corps of Engineers – Alaska District – Kenai Bluffs Bank
Stabilization Project. [Clerk’s Note: Twenty minutes have been requested for
this presentation.]
C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3)
minutes per speaker; thirty (30) minutes aggregated)
D. PUBLIC HEARINGS
1. Ordinance No. 2968-2017 – Appropriating General Fund Balance Funds into
General Fund Land Administration-Lands Fund for the Purchase by the City of
Kenai’s General Fund of Airport Property Outside the Airport Reserve
Constituting Approximately 16.49 Acres of Real Property Described as S1/2
S1/2 SW1/4, Section 33,T6N, R11W, Seward Meridian, Commonly Referred
to as ‘Lawton Acres’ and Deed Restricting the Future Use Of the Property to
Parks and Recreational Uses to be Retained by the City for a Public Purpose.
[Clerk’s Note: This item was postponed to this meeting from the June 21
meeting for a second public hearing and Airport Commission review and
recommendation on July 13. A motion to enact is on the floor.] ............ Pg. 10
2. Ordinance No. 2969-2017 – Amending Kenai Municipal Code Title 24 –
Municipal Cemetery, to Update Procedures for Development of Cemetery
Regulations and Opening and Closing of Graves, and to Provide Regulations
Kenai City Council Meeting Page 2 of 4
July 5, 2017
in the Cemetery Regulations Appendix for Columbarium Niches, Marker or
Headstone Deposits, and Other Housekeeping Changes. ..................... Pg. 19
3. Ordinance No. 2970-2017 – Increasing Fiscal Year 2017, General Fund,
Airport Fund, Water & Sewer Fund, Personal Use Fishery Fund, and
Congregate Housing Fund Estimated Revenues And Appropriations For The
Transfer Of Funds To Establish The New Employee Health Care Internal
Service Fund Which Shall Be Utilized For Administering Employee Health Care
Beginning In Fiscal Year 2018, July 1, 2017. ......................................... Pg. 24
4. Resolution No. 2017-42 – Authorizing Extension of a Professional Services
Agreement With BDO USA, LLP for Completion of the City’s Fiscal Year 2017
Annual Financial Statement Audit. ......................................................... Pg. 28
5. Resolution No. 2017-43 – Amending its Comprehensive Schedule of Rates,
Charges, and Fees to Incorporate Changes to Cemetery Fees. ............ Pg. 31
6. Resolution No. 2017-44 – Authorizing the Purchase of Real Property
Described as Lot 4, Block 20, Original Townsite of Kenai, Located within
Section 5, Township 5 North, Range 11 West, Seward Meridian, from Mew
Trust, for the Public Purpose of Including the Property in the Bluff Erosion
Restoration Project and Determining that Public Interest will not be Served by
an Appraisal. .......................................................................................... Pg. 35
7. Resolution No. 2017-45 – Consenting to a Renewal of Lease of Certain
Airport Lands within the Airport Reserve between the City Of Kenai, Lessor,
and Dewayne Benton, Lessee, on Property Described as Lot 3, Block 4,
General Aviation Apron Number One. .................................................... Pg. 42
8. Resolution No. 2017-46 – Awarding an Agreement to Peninsula Pumping, Inc.
for Providing and Servicing Portable Restrooms and Dumpsters on the North
and South Kenai Beaches, Including Portable Restrooms at the City Dock,
During the 2017 Personal Use Fishery. ................................................. Pg. 81
9. Resolution No. 2017-47 - Awarding an Agreement to Alaska Waste – Kenai
Division, LLC for Providing and Servicing Road Accessible Dumpsters at the
End of South Spruce Street, Kenai Little League Parking Lot and Kenai City
Dock during the 2017 Personal Use Fishery. ......................................... Pg. 85
E. MINUTES
1.*Regular Meeting of June 21, 2017 .......................................................... Pg. 89
F. UNFINISHED BUSINESS – None.
G. NEW BUSINESS
1. *Action/Approval – Bills to be Ratified. ............................................. Pg. 102
2. *Action/Approval – Purchase Orders Exceeding $15,000.
Kenai City Council Meeting Page 3 of 4
July 5, 2017
3. *Ordinance No. 2971-2017 – Amending Kenai Municipal Code Section
1.15.060 - Motions, to Provide for Deferring a Motion or Agenda Item Beyond
the Next Meeting................................................................................. Pg. 103
4. *Ordinance No. 2972-2017 – Appropriating Funds in the Airport Fund,
Accepting a Grant from the Federal Aviation Administration and Appropriating
Funds in the Airport Equipment Capital Project Fund for the Purchase of Snow
Removal Equipment (SRE) – Loader with Attachments and a Multi-Purpose
Broom. ............................................................................................... Pg. 107
5. Action/Approval – Special Use Permit for Jennifer Ellis for Conducting
Outdoor Zumba Classes at the Softball Green Strip. .......................... Pg. 110
6. Action/Approval – Authorization to Extend a Facility Management Services
Agreement at the Kenai Recreational Center Facility. ........................ Pg. 116
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Committee
7. Mini-Grant Steering Committee
I. REPORT OF THE MAYOR
J. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
L. EXECUTIVE SESSION
1. Review and Discussion of Interview Questions, Interview Dates, and
Applications Submitted for the City Clerk Position. [AS 44.62.310(C)(2)(3) a
Subject that Tends to Prejudice the Reputation and Character of an Applicant
and Matters which by Law, Municipal Charter, or Ordinance are Required to be
Confidential.]
M. PENDING ITEMS – None.
N. ADJOURNMENT
Kenai City Council Meeting Page 4 of 4
July 5, 2017
****************************************************************************************************
INFORMATION ITEMS
1. Purchase Orders between $2,500 and $15,000 for Council Review.
2. Kenaitze Indian Tribe Correspondence
The agenda and supporting documents are posted on the City’s website at
www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s
Office or outside the Council Chamber prior to the meeting. For additional information,
please contact the City Clerk’s Office at 907-283-8231.
Kenai Chamber of Commerce and Visitor Center
Kenai Visitor and Cultural Center Report
1st Quarter
January – March 2017
Page 1 of 5
KVCC Walk in Visitor Count
Month/Year # of Visitors
January 2017 884
February 2017 720
March 2017 1,180
Total Visitor Count 2,784
Official Kenai Guide Mailings
Month/Year # of Guides
January 2017 1,844
February 2017 2,668
March 2017
*Includes MatSu & Anchorage
Sportshow
2,956
Total Guide Count 7,468
Official Kenai Guide Display Racks
Location # of Guides
Anchorage Brochure Distribution **
Airport Hotel – Kenai 96
Aspen – Kenai 96
Aspen – Soldotna 96
City Hall 192
Country Foods 192
Diamond M Ranch 96
Everything Bagels – Blazy Mall 96
Kenai Airport 797
Mad Moose Restaurant 192
Paradisos Restaurant 256
Quality Inn 288
Safeway – Kenai 537
Soldotna Inn 292
Sportsmans Warehouse 318
Three Bears 288
Veronica’s 52
Total Guide Count 3,884
Page 5 of 120
Kenai Chamber of Commerce and Visitor Center
Kenai Visitor and Cultural Center Report
1st Quarter
January – March 2017
Page 2 of 5
*Note: In January 2017, we sent 15,000 guides to Anchorage Brochure Distribution to
distribute to the following locations throughout the year*
3rd Ave Visitor Center
4th Street Mall
ANC Guesthouse
Anchorage Grand
Anchorage Historic
Backpacker – Eagle & 4th
Clarion Suites
Comfort Inn – Railroad Depot
Marriott – Downtown
Quality Inn – 8th & C Street
Ramada – 3rd Ave
The Lofts
ABC Motorhome
ALEX Inn & Suites
Comfort Suites – Airport
Courtyard by Marriott
Executive Suites
Longhouse Inn
Midnight Sun Car Rental
Puffin Inn
Super 8
Travel Lodge – Barratts
Lakeshore Tower Build B
Best Western Gold Lion
AAA Travel – Arctic & 36th
Clippership RV
Extended Stay – 34th & Old
Seward
Golden Nugget RV
Homewood Suites
Marriott – 32nd & Fai
RTO
Springhill Suites – 36th & A
Springhill Suites – Providence
Page 6 of 120
Kenai Chamber of Commerce and Visitor Center
Kenai Visitor and Cultural Center Report
1st Quarter
January – March 2017
Page 3 of 5
Website Traffic for www.visitkenai.com
Sessions (total number of sessions to the site)
Users (total number of unique users to the site)
Pageviews (total number of pages viewed on your site)
Pages per Session (average number of pages viewed per session)
Average Session Duration (average session length of all users)
Bounce Rate (percent of single-page sessions)
New Users (percent of total users who came the site for the first time)
Page 7 of 120
Kenai Chamber of Commerce and Visitor Center
Kenai Visitor and Cultural Center Report
1st Quarter
January – March 2017
Page 4 of 5
Facility Rental/Community Usage
Alaska Support Industry Alliance Luncheons
Alaska Wild Sheep Foundation Film Festival
Artistic Puppy Creative Valentine’s Day Photoshoot
Central Peninsula Garden Club Spring Meeting
Department of Health and Social Services
Hays Research Group
Hilcorp Contractor Meetings
KDLL Adventure Talks
Kenai Chamber Board Meetings
Kenai Chamber Luncheons
Kenai Historical Society General Membership Meetings
Kenai Peninsula Association of Realtors
Kenai Young Professional Advisory Council Meetings
KPEDD Industry Outlook Forum
Laborers Local 341 Membership Meetin g
Lee Shore Center Choose Respect Reception
Relay for Life Meetings
Senior Olympics
Twin City Raceway General Membership Meeting
Page 8 of 120
Kenai Chamber of Commerce and Visitor Center
Kenai Visitor and Cultural Center Report
1st Quarter
January – March 2017
Page 5 of 5
March 24 – 26, 2017 Chastity, KCCVC Staff, attended the MatSu Outdoors Show at the Curtis D. Menard
Memorial Sports Center in Wasilla, Alaska. We handed out 264 Kenai Guides along with Kenai lapel pins, Kenai
ink pens, and Kenai lanyards.
March 30 – April 2, 2017 Johna, KCCVC Staff, attended the Great Alaska Sportsman Show at the Sullivan Arena
in Anchorage, Alaska. We handed out 672 Kenai Guides along with Kenai lapel pins, Kenai ink pens, and Kenai
lanyards.
2017 In State Tradeshows
Page 9 of 120
Sponsored by: Council Member Boyle
CITY OF KENAI
ORDINANCE NO. 2968-2017
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROPRIATING
GENERAL FUND BALANCE FUNDS INTO GENERAL FUND LAND ADMINISTRATION-LANDS
FUND FOR THE PURCHASE BY THE CITY OF KENAl'S GENERAL FUND OF AIRPORT
PROPERTY OUTSIDE THE AIRPORT RESERVE CONSTITUTING APPROXIMATELY 16.49
ACRES OF REAL PROPERTY DESCRIBED AS S1/2 S1/2 SW1/4, SECTION 33,T6N, R11W,
SEWARD MERIDIAN, COMMONLY REFERRED TO AS 'LAWTON ACRES' AND DEED
RESTRICTING THE FUTURE USE OF THE PROPERTY TO PARKS AND RECREATIONAL
USES TO BE RETAINED BY THE CITY FOR A PUBLIC PURPOSE.
WHEREAS , the City obtained the 16.49 acre parcel (Lawton Acres) from the Federal Aviation
Administration (FAA) in 1964, via a Quit Claim Deed generally restricting the use of the property
to development, improvement, operation or maintenance of the Airport; and ,
WHEREAS, pursuant to a request by the City on April 20 , 1983, the FAA issued a Deed of
Release for Lawton Acres containing a Reverter Clause similar to the original Quit Claim Deed
that provides that if the terms and conditions of the conveyance document are not followed , the
property will revert to the federal government at its option ; and ,
WHEREAS, in accepting the Deed of Release, the City Council passed Resolution 83-48
providing that proceeds from any sale or lease of the property would be devoted to the Airport for
development, improvement, operation or maintenance; and ,
WHEREAS , Lawton Acres is not needed by the Airport for Airport purposes; and ,
WHEREAS , the funds utilized for the purchase will not leave the City, but transfer from the
General Fund to the Airport for Airport uses; and ,
WHEREAS, Lawton Acres is currently and has historically been zoned as Conservation allowing
for Parks and Recreational uses; and ,
WHEREAS , the City's 2016 Comprehensive Plan provides for Lawton Acres to be parks ,
recreation and open space; and,
WHEREAS, historic and recent efforts by the City to sell Lawton Acres for development purposes
has been met with public opposition in favor of maintaining the ex isting uses; and,
WHEREAS, the City Council and majority of public comments reflect a desire for a permanent
resolution for the property eliminating future uncertainty and conflict; and,
WHEREAS , there is significant public support, expressed in writing and orally at public meetings,
for the purchase of La wton Acres by the General Fund to allow for preservation of property; and ,
New Text Underlined ; [DELETED TEXT BRACKETED)
Page 10 of 120
Ordinance No . 2968-2017
Page 2 of 4
WHEREAS, preserving the property in its current state or allowing limited Parks and Recreational
development will maintain the sanctity of the surrounding residential neighborhoods and provide
separation from industrial and commercial areas; and,
WHEREAS , at least parts of the 16.49 acres, which specifically includes the 'Field of Flowers ,' is
already used as a publi c park ; and,
WHEREAS , the City's General Fund has sufficient funds to purchase the property without
significant negative implications ; and ,
WHEREAS, KMC 21.15.080-Appraisal , requires that Airport land be appraised within the last 12
months prior to a sale, and KMC 21.15 .180-Sale, requires the sale to be at fair market value ; and ,
WHEREAS , KMC 22 .05 .135-Acquisition of Property, allows the Council to authorize the purchase
of property for a public use, after a qualified appraiser has appraised the property; and ,
WHEREAS, it is in the best interest of the City to purchase the property at its appraised value for
the public use of preserving the property in its current state or allowing limited Parks and
Recreational development to maintain the sanctity of the surrounding residential neighborhoods
and provide separation from industrial and commercial areas and create public parks and
recreational opportunities for all residents of the City; and,
WHEREAS , placing a deed restriction on the property restricting its use in perpetuity for parks
and recreational uses, will accomplish the public purpose in the property acquisition .
NOW, THEREFORE , BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA,
as follows :
Section 1. Form: That this is a non-code ordinance.
Section 2. Statement of Ownership : That the City of Kenai , on behalf of the Airport is the
Owner of the real property described as S 1/2 S 1/2 SW 1/4, Section 33 , T6N , R11W, Seward
Meridian .
Section 3. Public Purpose and Best Interest Findings: That the Kenai City Council further
finds the acquisition of the subject parcel to be in the best interests of the citizens of the City of
Kenai and that the public interest shall be served by its acquisition for the total purchase price as
established by a fair market value appraisal, in accordance with the rec itals above which are
incorporated herein . That it is further found that the property is not needed for Airport purposes .
Section 4. Authorization of Pu rchase : That the Kenai City Council hereby authorizes the City
Manager to purchase the real property described as S 1/2 S 1/2 SW 1/4 , Section 33, T6N , R11W ,
Seward Meridian , for the total purchase price as appraised, on a form approved by the City
Attorney, to be retained by the City for public use and restricted as provided below.
New Te xt Underlin ed ; [DELETED TE XT BRACKETED)
Page 11 of 120
Ordinance No . 2968-2017
Page 3 of 4
Section 5. That estimated revenues and appropriations be increased as follows :
General Fund
Increase Estimated Revenues -
Appropriation of Fund Balance:
Increase Appropriations:
Land Administration -Land :
Section 6. Title: That Title shall be conveyed by a Quit Claim Deed . Any instrument
conveying Title to the property shall include the following restrict ions, promises, and /or covenants :
(a ) that the City of Kenai reserves unto that the Grantee expressly agree for itself and
its heirs, executors , administrators, successors, transferees, and assigns, for the use and
benefit of the public a right of flight for the passage of aircraft in the airspace above the
surface of the property, together with the right to cause in said airspace such noise as may
be inherent in the operation of aircraft, now known or hereafter used , for navigation of or
flight in the said airspace, and for use of said airspace for landing on or at and for taking
off from or operating on Kenai Municipal Airport ; and,
(b) that the Grantee ex pressly agree for itself and its heirs , executors, administrators,
successors , transferees , and assigns to restrict the height of structures , objects of natural
grown , and other obstructions on the property to a height of not more than 242 above
mean sea level ; and ,
(c) th at the Grantee expressly agree for itself and its heirs , executors , administrators ,
successors , transferees, and assigns to prevent any use of the property which would
interfere with landing or taking off of aircraft at the Kenai Municipal Airport , or otherwise
constitute an airport hazard ; and,
( d) that in perpetuity, the use of the property shall be restricted for public park,
recreation; and ,
(e) that all covenants heretofore stated , shall run wi t h the land and shall inure to the
benefit of, and be binding upon the heirs , executors , administrators, su ccessors ,
transferees, and assigns of the parties to the contract for sale and conveyance .
Section 7. Proceeds of Sale: That should a sale of the property be finalized , all revenues
from the sale shall be deposited in the Airport Land Sale Permanent Fund for use in the
development, impro vement , and operation of the Kenai Municipal Airport and as otherwise
required in that Deed of Release e xecuted on April 20 , 1983 and recorded at Book 209 , Pages
30-3 1, Kenai Recording District.
Section 8. Severability: That if any part or provision of this Ordinance or applica t ion thereof
to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision , or application directly involved
in all controversy in whi c h this judgment shall have been rendered , and shall not affect or impair
the validity of the remainder of this Title or application thereof to other person s or circumstances .
The City Counc il hereby declares that it would have enacted the remainder of this Ordinance ev en
w ithout such part, provision , or application .
New T ext Underli ned ; [DELETED TEXT B RACKET ED ]
Page 12 of 120
Ordinance No . 2968-2017
Page 4 of 4
Section 9. Effective Date : That pursuant to KMC 1.15.070(f), this ordinance shall take effect
30 days after adoption. ·
ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 21st day of June, 2017 .
ATTEST :
City Clerk
BRIAN GABRIEL SR., MAYOR
New Text Un derl ined ; [DELETED TEXT BRAC KETED]
Introduced : June 7, 2017
Enacted : June 21 , 2017
Effective: July 21, 2017
Page 13 of 120
'll/fftije «11'tli a PaJ'~ ft~ «11'tli a Fat~"
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone : (907) 283-7535 I Fax: (907) 283-3014
www.kenai.city
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Council Member Boyle
June1,2017
Ordinance No. 2968-2017 regarding Lawton Acres
Ordinance 2968-2017 proposes to purchase Lawton Acres utilizing General Fund , Fund Balance
and deed restrict the property for Parks and Recreational uses. The funds utilized for the
purchase will stay within the City and will be utilized for the benefit of the City's Airport. This
direction is consistent with historic and recent public testimony and provides a final solution and
direction for Lawton Acres .
Kenai Municipal Code requires that the property be appraised and the purchase price reflect fair
market value. There is not a recent appraisal on the property. This Agenda includes an Action
Approval item authorizing the City Manager or City Attorney to obtain an appraisal. It is my
understanding that an appraisal can be accomplished by June 19, 2017. This would allow the
Council to know the purchase price of the property prior to voting on enactment of this Ordinance
at Council 's June 21, 2017 meeting.
Your consideration is appreciated.
Page 14 of 120
Compromise Between City Residents and The City of Kenai: Lawton Acres.
Background:
A: The area known as Lawton Acres (see attachment)-a stretch of land in the City of Kenai, Alaska -running along
the Kenai Spur Highway from Walker Lane to Rogers Road on the North side and from Walker Lane to Rogers
Road along Lawton Drive on the South side -continues to resurrect itself for consideration by the City
Council/Planning and Zone Commission for rezoning, conditional use considerations, and potential sale .
B. It would seem to make sense to reach a permanent solution versus revisiting the issue over and over.
Note: The land is currently drawn up by the City as four tracts (A-D) (see the attached drawing). Starting on at Tract A
on the Walker Lane side, the lot may be 150 feet deep, but there is only 100 feet of tree cover. For Tracts A and B, one
can see the Spur Hwy through the trees already. Lack of an adequate buffer is a paramount issue with the area's
residents. The Walker Lane end of Lawton Acres (Tracts A and B) appears to be too narrow to allow a realistic -
commercial to residential-transition. A 30 feet buffer at Tract A and B is just too thin in width!
Tract C (Field of Flowers) is a former fire training ground and is plagued with contamination .
Option:
1. Deem Tracts A, B, and C as not being commercially viable -using the rational of narrowness (lack of
adequate buffer) of Tracts A & B and contamination of Tract C. Petition the FAA to deed over to the
City without charge and without land sale requirements due to the costly process to make a vi able
and acceptable buffer or to remediate contamination. The three tracts would then be added to the
City Parks systems and would be under the care of Parks and Recreation.
2. With input from the Lawton Acres affected residents, sell, via an acceptable competitive offer, the
property (Tract D) from Rogers Road to the beginning of Tract 3 (Field of Flowers) as LIMITED Light
Commercial conditional use property-allowing such development as a Professional Office Building,
Medical(Doctor's Office) or Dental Office . Require using a Spur Highway entrance, or possibly Rogers
Road entrance and with limited reduction in trees toward the Lawton Drive side. Proceeds would go
into the Airport Fund to further support the Kenai Airport. NOT ALL COMMERICAL USE ZONE
BUSINESSES OR STRUCTURES WOULD BE ALLOWED. Stipulations would be made of the purchaser
to provide development that has the esthetics and design to be the least conspicuous. Strict
adherence to submitted site and building plans would be required. The Lawton Drive/Rogers Road
buffer zone could be 150-200 feet! Since once trees are cut down it is impossible to replace them,
close scrutiny is required by City Inspectors or designated personnel in the property Landscape
phase .
THOUGH IN A PERFECT WORLD, HAVING EVERYTHING STAY THE SAME MIGHT BE IDEALISTIC, THIS COMPROMISE
WOULD ALLOW THE AREA TO GET THIS ISSUE BEHIND US.
Attachments -Lawton Acres -Tracts A, B, C, and D.
Page 15 of 120
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NOTES:
1) Gu service is avaif1t>Jt to 111 paruls from the K~1I Spur Hwy.
2) Ettctrlc service is avallible to 1fl parcels from t he Kenai Spur Hwy .
3) Wettr set"\ilce ls avaltaf:llefrom Walker Ln .• Lawton Dr ., ind Rogers Rd .
4) Sewtr 1ervtu Is ~vailob~ from W1lke-r Ln., Uwton Or., and Ro1ers Ref.
5) Thf Ke nai Penlnsul1 8 oro14h rtcommended a 20' riiht of way
drdlatlon of Uwtori Or. alone the south bound1ry of Uwton Acrrs to
provide for 1 total ri cht or WIY width of 10'.
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Page 16 of 120
Jamie Heinz
From: Peter 0 . Hansen <pohansen@alaska.net>
Thursday, June 15, 2017 9:58 PM Sent:
To: Jamie Heinz
Subject: Testimony in Support of Ordinance No. 2968 -2017
Dear Miss Heinz,
My wife and I are aware the Kenai City Council is planning to hold a public hearing Wednesday June 21, 2017 on
Ordinance No . 2968-2017 regarding Lawton Acres.
We strongly support and favor the passage of this ordinance for the following reasons; since we will be out of state that
evening we are asking for this information to be submitted as our testimony during the Public Hearing and read into the
minutes of it.
• Our home at 418 Rogers Road is one of about 80 residences in the Inlet View Subdivision which are effected by
noise from the traffic rolling into and out of Kenai. Even though we live a block south of Lawton Street we often
hear the Semi-truck tractors starting up from the Wal-Mart traffic light as well as other heavy traffic as they pick
up speed leaving town . Preserving Lawton Acres for recreational purposes as it is with the flora and fauna it has
helps keep a sound buffer even though it is not perfect for residences south of the highway.
• Lawton Acres in its natural state provides a buffer for Inlet View and Central Heights Subdivisions from north
winds.
• There are an increasing number of children living in Inlet View as well as the many young folks living in Central
He ig hts Subdivision which has probably another 60 homes and there is no City Park ground for these kids and/or
their families to play in other than the middle school and hi gh sc hool playground a half mile away, and often
these playgrounds have restrictions.
• A portion of Lawton Acres has been used for Oil Fire Training which we have observed in the past and this land is
contaminated.
• Back in the 1970's we and many of our neighbors petitioned the Kenai City Council to have Lawton Acres
preserved for, we believe, Conservation, in order for it to remain a natural habitat for plants and animals. If
one looks at the area surrounding Lawton Acres, it is the last acreage of forested area on the Southeast side the
City Center and shopping areas to serve this purpose.
• The portion of Lawton Acres known as Flower Park is utilized by many citizens of the Central Peninsula. We
frequently walk thru this park and meet people who are visitors there from surrounding communities. The park
serves as an attraction for these individuals with their families to come and shop in Kenai, thus raising sales tax
for the City.
• Lawton Acres , preserved and dedicated by the City for Parks and Recreation, could further the quality of life for
all Kenai's citizens by uniquely developing winding trails throughout parts of it for hiking, biking, skiing,
skateboarding, and families pushing strollers ...... trails thru the trees.
• We appreciate th e time and consideration Kenai Council persons put in on resolving this issue, which keeps
returning every few years, and it would be nice to see it resolved which this ordinance would do for the benefit
of Kena i's citi ze ns.
Peter and Karolee Han se n
418 Roger s Road
Kenai, Alaska 99611
Home phone: 907 -283 -46 15
1
Page 17 of 120
HEAR YE!
HEAR YE!
WHAT TO DO ABOUT LAWTON ACRES
DATE: June 21, 2017
To : Kenai City Council
Re : Agenda Item D4. Ordinance No. 2968-2017 – Appropriating General Fund Balance Funds into
General Fund Land Administration-Lands Fund for the Purchase by the City of Kenai City Council
Meeting Page 2 of 4 June 21, 2017 Kenai’s General Fund of Airport Property Outside the Airport
Reserve Constituting Approximately 16.49 Acres of Real Property Described as S1/2 S1/2 SW1/4,
Section 33,T6N, R11W, Seward Meridian, Commonly Referred to as ‘Lawton Acres’ and Deed
Restricting the Future Use Of the Property to Parks and Recreational Uses to be Retained by the City
for a Public Purpose.
Considering the testimony of the people from the public at the work session on January 24th and June
15th, it would seem in order to NOT go ahead with the development of the property.
This desire of the people most effected by this decision is not new. They have been saying NO
DEVELOPMENT for 25 years or longer. The whole city voted on this at least twice and said NO
DEVELOPMENT.
The council was elected to represent all citizens, not just the business community.
Let the citizens vote on it. At least three councilors support this. Why do some members of the council
fear letting the people decide?
At the work session in January some of the residents present seemed to respond positively to Dr.
Sorhus’s development proposal. Put it to the voters to buy all 16 acres, then sell to Dr. Sorhus. The rest
will then be made into a green strip or park. The airport will get the total value of the 16 acres and the
city could partially offset the cost by selling to Dr. Sorhus.
This is a win-win-win solution. Not everyone gets totally what they want, but everyone gets a fair
share. And the fate of Lawton acres will be settled.
Bob McIntosh
PeninsulTownCrier.com
bobmkenai@gmail.com
907-953-7995
Page 18 of 120
Sponsored by : City Clerk
CITY OF KENAI
ORDINANCE NO. 2969-20 17
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA , AMENDING KENAI
MUNICIPAL CODE TITLE 24 -MUNICIPAL CEMETERY, TO UPDATE PROCEDURES FOR
DEVELOPMENT OF CEMETERY REGULATIONS AND OPENING AND C LOSING OF
GRAVES, AND TO PROVIDE REGULATIONS IN THE CEMETERY REGULATIONS APPENDIX
FOR COLUMBARIUM NICHES, MARKER OR HEADSTONE DEPOSITS, AND OTHER
HOUSEKEEPING CHANGES.
WHEREAS, in 2016 the City commissioned the construction of a columbarium for the cemetery
which was finished in September 2016; and ,
WHEREAS, it is appropriate to develop regulations prior to the col umbarium 's use; and,
WHEREAS, the Parks and Recreation Commission , Parks and Recreation Directo r, Finance
Director and City Clerk re vi ewed KMC Title 24 ~ Municipal Cemet e ry; and the Cemetery
Regulations Appendix of the Code and suggested amendments ; and ,
WHEREAS, at their regular meeting of March 2 , 2017, the Parks and Recreation Commiss ion
reviewed the pol icies and procedures herein and recommended a pprova l.
NOW , THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE C IT Y OF KENAI , ALASKA,
as follows:
Section 1. Form: That this is a code ordinance.
Section 2 . Amendment of Section 24.15.010 of the Kena i Municipa l Code : That Kena i
Municipal Code, Section 24.15 .010 -Adoption of Regulations, is hereby amended as follows :
The City Clerk , wi th the assistance of the Parks and Rec reation Commission an d Dire ctor, shall
establish regulat ions for t he purchase of plots and use of the cemetery. These regu lations shall
be effective after approval by the City Council. Amendments to the regulat ions shall be submitted
by the City Clerk to the City Council for approval.
Sect ion 3. Amendment of Section 24.20 .030 of the Kenai Mun icipal Code: T hat Kenai
Municipal Code, Section 2 4.20 .030 -Grave preparation, is hereby amended as foll ows:
All openings, closing§, plot preparation.§, interments , disi nterments, ma rke r placement.§ a nd
removals shall be o verseen by the City and under the supervision of the Parks and Recreation
Director or his designated representative . Opening and closing of grav es shall be conducted by
a licensed and insured contractor only.
Section 4 . Amendment of Appendices Cemetery Regulation of the Kenai Munic ipal Code:
That Kenai Municipal Code, Cemetery Regu lat ion Section 1: Plots , is hereby amen ded as follows :
New Text Underl in ed ; [DELETED TEXT BRACKETED]
Page 19 of 120
Ordinance No. 2969-2017
Page 2 of 4
a. Plots shall be platted in those areas of the cemetery where interments have not as yet
taken place in five-foot (5') by ten-foot (1 O') plots, two-and-one-half-foot (2-1/2') by five-foot (5')
plots for infants, and two feet (2') by two feet (2') by two feet (2') for cremains .
b . The City Clerk shall be in charge and have access to said plats for the purpose of
assigning plots upon request, and have charge of burial records, files and maps which shall be
stored by the City of Kenai. The City Clerk shall charge a fee for each plot, depending upon the
size of the plot (adult or infant or cremains) and the season during which the opening and closing
of the grave occurs. All fees shall be as set forth in the City's schedule of fees adopted by the City
Council. Payment in full for the plot is required at the time of purchase of the plot. Payment for
the opening or closing of the grave is due prior to commencement of work.
c. The purchase [A RESERVATION] of~ burial Q!Q1. [SPACE] cremains plot. or columbarium
niche in the Kenai Municipal Cemetery shall [CAN] be made through [ACQUIRED BY APPL YING
TO] the City Clerk's Office . The purchaser will be [AND BEING] assigned a [PLATTED] plot(§} or
niche(s) [PLOTS] after having paid the appropriate fee . It is prohib ited for the purchaser of said
plot{s) or niche(s) to re-sell or re-assign [THE PLOTS] except to the [C]City. [CHARGES FOR
RESERVATION IN ADVANCE WILL BE AT MAXIMUM COST. FUNERAL DIRECTOR WILL
TAKE THE FAMILY TO THE CEMETERY FOR SITE SELECTION. THE FAMILY WILL PAY
CLERK UNLESS THE DIRECTOR IS PAID IN ADVANCE.] All payments for burial plots .
cremains plots. or columbarium niches shall be made directly to the City of Kenai. The fees for
such purchase shall be established and maintained in the City Clerk's Schedule of Rates,
Charges. and Fees.
Section 5. Amendment of Appendices Cemetery Regulation of the Kenai Municipal Code:
That Kenai Municipal Code, Cemetery Regulation Section 2: Interment and Disinterment, is
hereby amended as follows:
Section 2 : Interment and Disinterment or Niche Opening and Closing
a . The City Clerk sh all be provided with the appropriate State burial and transit permits before
interment or in urnment will be permitted . The burial Qlots can be used for no other purpose than
interment and cremains plots or columbarium niches can be used for no other purpose but
inurnment.
b. Interment or disinterment shall b e made in compliance with all State and City laws and
regulations .
c. Prior to interment or inurnment a marker or headstone depos it is required . Such deposit
shall be established and maintained in the City 's Schedule of Rates, Charges. and Fees, and
mu st be paid to the City of Kenai. Deposit refunds will be issued after proper installation of marker
or headstone . If after eighteen (18) months (plots) and six (6) months (columbarium's) a
permanent marker or headstone has not been installed , the City shall install a marker or flat
headstone utilizing the deposit as payment.
.Q[C]. Markers and headstones for cemetery plots may be set in a concrete base and installed
at th e head of the grave, centered and inside the plot area. The Parks and Recreation Director
must be notified prior to any plot preparation , construction , or placement of headstone or marker.
New Text Und erlin ed ; [DELETED TE XT BRACKETED)
Page 20 of 120
Ordinance No. 2969-2017
Page 3 of 4
If relig ious practices make the conformance of this requirement impossible, the old section of the
cemetery may be utilized . This decision will be at the discretion of the Parks a nd Recreation
Director[SUPERV ISOR] or designee .
~[DJ. All niche openings and closings shall be overseen by the Park s and Recreation
Department. A niche may be opened only at the request of the niche owner as listed in the
cemetery records or as determined by the City Clerk . The in itial open ing and clos ing (inurnment)
of the niche is included in the origina l cost of the niche. Additional openings and closings
thereafter are charged at a rate pursuant to the City 's fee structure . Markers for columbarium
niches shall follow a standard format. font. and size as determined by the City and shall includ e
the first and last name of the deceased. year of birth . and year of death.
f[E]. Only interment or inurnment of human remains !.§ [ARE] permitted [TO BE BURIED] in the
Kenai Municipal Cemetery.
g[F]. No more than one (1) grave marker per plot shall be allo wed .
~ One (1) casket and up to two (2) cremains may be buried in a standard or infant plot. Up
to three (3) cremains may be buried in a standard or infant plot. Only one (1) crema in may be
buried in a cremain plot. Up to two (2) cremains may be inurned in a standard niche .
Section 6 . Amendment of Appendices Cemetery Regulation of the Kena i Municipal Code :
That Kenai Municipal Code, Cemetery Regulation Section 4 : General , is hereby amended as
follows :
a . The City of Kenai shall not be liable for any order rece ived verbally or for an y mistake
occurring from the want of precise and proper instructions as to the particular space, size or
location in a tract where interment is desired .
b. No person shall enter the Kenai Mun icipal Cemetery except through the establ ish ed
access routes . The vehicle gate will be open daily from 6 :00 a .m. to 10:00 p.m., from May 1 to
September 30 (summer months) and will remain locked from October 1 to April 30 (win ter
months). The cemetery is open year-round for pedestrian traffic. The Kenai Police Departme nt or
the Kenai Parks and Recreation Department ma y be contacted for emergency access during
closed hours.
c. No burials shall be w ithin the City limits e xcept on homesteads owned by or resided on by
the deceased. Such homesteads must be five (5) acres or larger. Private ce meteries w ithi n the
City limits on the date of passage of Ordinance 1108-85 may con ti nue in use but a re li m ited to
their platted size . A burial permit is[WILL] still [BE] required to be submitted to [FROM ] the City
Clerk if the burial is to be on a homestead or pri vate cemetery within the City limits .
d. Bicycles , skateboards, roller blades , roller skates , motor bikes , three (3) or four (4 )
wheelers are not allow ed on the cemetery grounds .
e . No child under the age of twel ve ( 12 ), unaccompanied by a guardian or paren t or oth er
adult, shall be allo wed on the cemetery grounds .
f . Food , beer or other intoxicating liquors are stri ctl y proh i bi ted withi n t he confi nes of the
cemetery .
Section 7. Severability: That if an y part or provision of this ord inance or application thereof to
any person o r circumstances is adjudged invalid by an y court of competent j urisd iction , such
New Text Un derlined; [DE LETED TE XT BRA CKETED)
Page 21 of 120
Ordinance No. 2969-2017
Page 4 of 4
judgment shall be confined in its operation to the part, provision , or application directly involved
in all controversy in which this judgment shall have been rendered , and sha ll not affect or impair
the valid ity of the remainde r of this title or application thereof to other pers ons or circumstances .
The City Council hereby declares that it would have enacted the rema inder of th is ord i nance even
without such part, provision, or application.
Section 8. Effective Date: That pursuant to KMC 1 .15.070(f ), th is ord inance s hall take effect
30 days after adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 5th day of July, 2017.
ATTEST:
Jamie Heinz, Acting City Clerk
BRIAN GABRIEL SR., MAYOR
Introduced : June 21, 2017
Enacted : July 5, 2017
Effective : August 4 , 201 7
New Text Un derlined ; [DELETED TE XT BRACKETE D]
Page 22 of 120
1t'f ff~ «1/th a Po.6'~ 6'tf «1/th a fat~ 11
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www.kenai.city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager 17 c::::> ·
Robert J . Frates, Parks & Recreation Director
Jamie Heinz, Deputy City Clerk
June 16, 2017
Ordinance No. 2969-2017
Purpose of this correspondence is to inform Council that certain sections of the Kena i
Municipal Code (KMC) Title 24 -Municipal Cemetery, including the Cemetery Regulations
Appendix of the Code, require updating.
The City Clerk's office, along with assistance from the Finance Director and Parks &
Recreation Director reviewed current procedures and regulations. The Parks & Recreation
commission, at their regular meeting of March 2, 2017, further rev iewed the current policies
and procedures and recommended several amendments be adopted. The most notable
changes recommended are the requirement of marker or headstone deposits, establishing
procedures for use of the Columbarium and other light housekeeping changes.
Your consideration to this matter is appreciated.
Page 23 of 120
Suggested by: Administration
CITY OF KENAI
ORDI NANCE NO. 2970-2017
AN ORDINANCE OF THE COUNCIL OF THE C ITY OF KENAI , ALASKA, INCREASING FISCAL
YEAR 2017, GENERAL FUND, AIRPORT FUND, WATER & SEWER FUND , PERSONAL USE
FISHERY FUND, AND CONGREGATE HOUSING FUND ESTIMATED REVENUES AND
APPROPRIATIONS FOR THE TRANSFER OF FUNDS TO ESTABLISH THE NEW EMPLOYEE
HEAL TH CARE INTERNAL SERVICE FUND WHICH SHALL BE UTILIZED FOR
ADMINISTERING EMPLOYEE HEALTH CARE BEGINNING IN FISCAL YEAR 2018 , JULY 1,
20 17 .
WHEREAS , the adopted FY2018 Annual Budget for the City included a new fund for the
administration of employee health care benefits; and,
WHEREAS, the newly established fund will be an internal service fund ; and,
WHEREAS, an internal service fund is utilized to finance, administer and account fo r departments
or agencies of a government whose e xclusive or nearly exclusive purpose is to provide goods or
services to the government's other departments on a cost-reimbursement basis ; and ,
WHEREAS , initial capitalization of the fund is based on each City Fund 's current staffing which is
eligible for employee health care; and ,
WHEREAS , the City's General Fund , Airport Fund, Water & Sewer Fund , Personal Use Fishery
Fund , and Congregate Housing Fund have positions eligible for coverage; and,
WHEREAS, Council created a $100,000 commitment of General Fund , Fund Balance when
adopting the FY2017 City Budget for future employee health care costs ; and,
WHEREAS , appropriating and transferring the $100,000 is consistent w ith the adoption of the
FY2018 Budget and is consistent with the intent of the FY2017 commitment of Fund Balan ce.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA:
Section 1 : Fo rm : That this is a non-code ordinan ce.
Section 2: That estimated revenues and appropriations be increased as follows :
General Fund
Increase Estimated Revenues -
Appropriation of Committed Fund Balance
Increase Appropriations :
Non-Departmental -Transfer to Employee Health Care
Internal Service Fund
Airport Fund
New Text Und erlined; [DELETED TEXT BRACKETED]
$100.000
$100.000
Page 24 of 120
Ordinance No. 2970-2017
Page 2 of 3
Increase Estimated Revenues -
Appropriation of Fund Balance
Increase Appropriations:
Airport Administration -Transfer to Employee Health Care
Internal Service Fund
Water & Sewer Fund
Increase Estimated Revenues -
Appropriation of Fund Balance
Increase Appropriations:
Water -Transfer to Employee Health Care
Internal Service Fund
Personal Use Fishery Fund
Increase Estimated Revenues -
Appropriation of Fund Balance
Increase Appropriations:
Parks, Recreation & Beautification -Transfer to
Employee Health Care Internal Service Fund
Congregate Housing Fund
Increase Estimated Revenues -
Appropriation of Retained Earnings
Increase Appropriations :
Congregate Housing -Transfer to
Employee Health Care Internal Service Fund
$7.437
$8.501
$8.501
$1. 151
$1, 151
$548
$548
Section 3. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directl y involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision , or application.
Section 4. Effective Date: "That pursuant to KMC 1.15.070(f), this ordinance shall take effect
upon enactment. The appropriation and transfer shall be made effective June 30 , 2017 and shall
be considered an action of Fiscal Year 2017.
New Text Und erlined; [DELETED TEXT B RACKETED]
Page 25 of 120
Ordinance No. 2970-2017
Pa ge 3 of 3
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, A LASKA, this 5 th day of July, 2017.
ATTEST :
Jamie Heinz, Acting City Clerk
Approved by Finance _..:JL-
BRIAN GABRIEL SR., MAYOR
Introduced: June 21 , 2017
En acted: July 5, 2017
Effective: Ju ly 5, 2017
New Text Underlined ; [DELETED TEXT BRACKETED]
Page 26 of 120
'tftfl~ «1/t/i, a Pai?t, tt'tj «1/t/i, a h.t(/ft; 11
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www.kenai.city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager 7 c::::> •
Terry Eubank, Finance Director 1£
June 14, 2017
Ordinance 2970-2017
The purpose of this memo is to respectfully recommend adoption of Ordinance 2970-2017.
Ordinance 2970-2017 will appropriate the transfer of funds from each of the City's operating
funds, the General Fund , Airport Fund , Water & Sewer Fund, Personal Use Fishery Fund , and
the Congregate Housing Fund , to a new Internal Service Fund for the administration of employee
healthcare benefits. Each of the funds have authorized positions which are eligible for employee
healthcare benefits . Transfer amount for each fund was based on each funds ' FY18 budgeted
participation rate in the program . Participation by Senior Citizen Fund employees was included
with the General Fund amounts for the calculation.
Internal Service Funds are established to finance, administer, and account for departments or
agencies of a government whose exclusive or nearly exclusive purpose is to provide goods or
se rvices (e.g. printing services) to the government's other departments on a cost-reimbursement
basis . The Adm inistration believes the use of an Internal Service Fund will reduce the budgetary
impact of annual changes in health care costs.
With the adoption of the FY2017 Budget, Council committed $100,000 for future employee
healthca re costs. This $100 ,000 of committed fund balance is the source of funding for the
General Fund 's portio n of the internal service fund 's initial capi talization . Adoption of Ordinance
2970-2017 is th e final step in the FY2018 Budget plan to create and utilize an internal service
fund for administration of employee health care at the City. Your support is respe ctfully requested .
Page 27 of 120
Sponsored by : Administration
CITY OF KENAI
RESOLUTION NO. 2017-42
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, AUTHORIZING
EXTENSION OF A PROFESSIONAL SERVICES AGREEMENT WITH BOO USA, LLP FOR
COMPLETION OF THE CITY'S FISCAL YEAR 2017 ANNUAL FINANCIAL STATEMENT AUDIT.
WHEREAS , Resolution 2013-16 awarded a contract to Mikunda , Cottre ll & Company to perfo rm
the City's annual financial audit; and,
WHEREAS, BD.O USA, LLP subsequently purchased Mikunda , Cottrell & Company and the
contract assigned to BOO USA, LLP; and ,
WHEREAS, the contract terminated on December 31, 2016 but does allow for e xtension w ith
written consent of both parties; and ,
WHEREAS, BOO USA, LLP has ex pressed interest in renewing the contract for anot her year;
and,
WHEREAS , e xtension through December 31 , 2017 will allow completio n of the FY2017 Audi t and
mark the fifth financial audit performed under the contract ; and ,
WHEREAS , upon completion of the FY2017 audit, the adm in istration will issue a request for
proposal for future audit services.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA:
Section 1. That the City Manager is authorized to extend the time of performance t o
December 31, 2017 of the Professional Services Agreement for Audit Servi ces w ith BOO USA,
LLP .
Section 2. That compensation for the FY2017 Audit servi c e shall n ot e xceed $41 ,000 w hic h
represents a 0.40 % increase based on the year over year change in Anchorage Co n sumer Price
Index plu s an additional $833.00 for additional services associated w it h implementation of GASB
68. Sufficient funds w ere ha ve been budgeted .
Page 28 of 120
Resolution No. 2 017-4 2
Page 2of2
Section 3. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENA I, ALASKA, this 5 th day of July, 2017.
BRIAN GABRIEL SR., MAYOR
ATTEST:
Jamie Heinz, Acting City Clerk
App roved by Finance 1~
Page 29 of 120
'Vtft~ «1/th a Pa.J'~ e~ «1/t!ll a Fatu.l"e JI
210 Fidalgo Ave, Kenai, Alaska 99611 -7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www.kenai.city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager ?~ ?J
Terry Eubank, Finance Director 1 £.
May 31 , 2017
Resolution 2017-42
The purpose of this memo is to recommend passage of Resolution 2017-42. Resolution 2017-42
will authorize an extension of the contract to perform the annual financial statement audit of the
City for an additional one year with BOO USA, LLP. A request for proposal was issued in 2013
for performance of the City's annual financial statement audit. The City received two proposals
with Mikunda Cottrell & Company being both the highest scoring proposer and the low cost
proposer. Subsequent to award, BOO USA, LLP purchase Mikunda Cottrell & Company, was
assigned the contract, and has performed the City's audit for the past four years .
It is customary for City contracts to have a three-year term with two one-year extensions. The
administration recommends extension of the contract with BOO USA, LLP for one year, through
December 31 , 2017, allowing for completion of the fiscal year 2017 annual audit. Completion of
the fiscal year 2017 audit will mark five years under the contract and the City will issue an RFP
for audit services in early 2018 for future audits.
Your support for Resolution 2017-42 is respectfully requested.
Page 30 of 120
____________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: City Clerk
CITY OF KENAI
RESOLUTION NO. 2017-43
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS
COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO INCORPORATE
CHANGES TO CEMETERY FEES.
WHEREAS, in 2016 the City commissioned the construction of a columbarium for the cemetery
which was finished in September 2016; and,
WHEREAS, it is appropriate for inclusion of fees for columbarium niches in the Comprehensive
Schedule of Rates, Charges, and Fees; and,
WHEREAS, a market study conducted by staff on fees for columbarium niches and cemetery
plots indicated the City’s fees were significantly under market; and
WHEREAS, at their regular meeting of March 2, 2017, the Parks and Recreation Commission
reviewed the suggested fee increases and recommended approval.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. The Cemetery section of the City’s Comprehensive Schedule of Rates, Charges
and Fees be amended as follows:
CEMETERY FEES (All Cemetery Fees are Exempt from Sales Tax)
APX - 1 Title 24 - Cemetery Regulations
Section 1: b. Standard Plot [$250.00] $1,000.00
Section 1: b. Veteran Plot $750.00
Section 1: b. Infant Plot $150.00
Section 1: b. Cremains [$100.00] $300.00
Section 1: c. Columbarium Niche
(up to two standard urns)
$1,000.00
Columbarium Niche - opening and/or closing fee for
reasons other than inurnment.
$100.00
Section 2: c. Marker/Headstone Deposit
(applies to Cemetery Plots and Columbarium Niches)
$400.00
[SECTION 1:
B.
SUMMER GRAVE OPENING AND CLOSING -
STANDARD PLOT
$500.00]
[SECTION 1:
B.
SUMMER GRAVE OPENING AND CLOSING -
INFANT PLOT
$250.00]
Page 31 of 120
Resolution No. 2017-43
Page 2 of 2
____________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
[SECTION 1:
B.
SUMMER GRAVE OPENING AND CLOSING -
CREMAINS
$100.00]
[SECTION 1:
B.
WINTER GRAVE OPENING AND CLOSING -
STANDARD PLOT
$600.00]
[SECTION 1:
B.
WINTER GRAVE OPENING AND CLOSING - INFANT
PLOT
$250.00]
[SECTION 1:
B.
WINTER GRAVE OPENING AND CLOSING -
CREMAINS
$100.00]
Cemetery Gazebo Marker Fees (includes first 30
letters, shipping @ $50.00, one proof @$30.00, extra
letters @ $3.00 each.)
$330.00
Section 2. That this resolution takes effect August 4, 2017 to coincide with Ordinance No.
2969-2017.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of July, 2017.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, Acting City Clerk
Page 32 of 120
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH:
FROM: Jamie Heinz, Acting City Clerk
DATE: June 30, 2017
SUBJECT: Resolution No. 2017-43 – Cemetery Fee Changes
As previously referenced in the memo attached to Ordinance No. 2969-2017, the Finance
Director, Parks & Recreation Director, and City Clerk reviewed current procedures and
regulations for the Cemetery. As a part of the review, they completed a market study of all fees
for the cemetery and it was discovered that the City’s fees were significantly under market rates.
The information was provided to the Parks & Recreation Commission and, at their meeting of
March 2, 2017, recommended several amendments and fee increases. The Clerk’s Office has
prepared the amendments to the fee schedule, as recommended by the Parks & Recreation
Commission, for your consideration and adoption, together with the enactment of Ordinance No.
2969-2017.
Your consideration is appreciated
Page 33 of 120
MARKET COMPARISON
Standard Plot
Infant Plot
Cremains
Columbarium
Niche
Wasilla
$1,000
(includes one small flat lot marker)
$1,000
$1,000
$1,000 (Includes 1 niche inscription;
additional fees for each additional
inscription)
$100 -Opening/Closing niche
Homer
$1,000
$200
$200
N/A
Soldotna
$1,000-Upright headstone area
$750 -Flat headstone area
(Headstone fees sepa rate)
$500 Marker deposit (refundable
upon purchase and installation of
permanent marker within 24 months
after internment. Fee waived with
proof of purchase/order of marker)
$0
$400
$1,200 (Includes 1 niche inscription)
$300 -Second urn
$100 -Opening/Clo sing niche
Page 25of27
Memorial Park (Anchorage)
$1,100 (May-O ct)
$1,500 (Nov-Apr)
$625 (May-Oct)
$850 (Nov-Apr)
$500 (May-Oct)
$875 (1 Urn)
$1,750 (Up to 3 Urns)
$100 -Opening/Closing niche
Kenai
$250
$150
$100
N/A
Kenai
Proposed Fee
$1,000
$750 (Veterans)
$400 -Marker deposit
(required prior to interment or
inurnment and re funded after
proper i nstallation of a
headstone. If after 18 months
a permanent headstone has
not been installed, City w ill
utilize the deposit as payme nt
and install a flat headsto ne)
No change
$300
$1,000 (Up to 2 standard urns)
$400 -Marker deposit
(required prior to inurnment
and refunded after proper
installation of a marker. If
after 6 months a permanent
marker has not been insta ll ed,
City will utilize the deposit as
payment and install a marker).
$100 -Opening/Closing fee for
reasons other than inurnment
Page 34 of 120
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2017-44
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE
PURCHASE OF REAL PROPERTY DESCRIBED AS LOT 4, BLOCK 20, ORIGINAL TOWNSITE
OF KENAI , LOCATED WITHIN SECTION 5, TOWNSHIP 5 NORTH, RANGE 11 WEST,
SEWARD MERIDIAN, FROM MEW TRUST, FOR THE PUBLIC PURPOSE OF INCLUDING THE
PROPERTY IN THE BLUFF EROSION RESTORATION PROJECT AND DETERMINING THAT
PUBLIC INTEREST WILL NOT BE SERVED BY AN APPRAISAL.
WHEREAS , the subject real property is described as : Lot 4, Block 20, Original Townsite of Kenai
located in Section 5, Township 5 North, Range 11 West, Seward Meridian , Kenai Recording
District, Third Judicial District, State of Alaska ; and,
WHEREAS, the total purchase price for the subject parcel containing approximately .19 acres is
$800, plus estimated closing costs of $510; and,
WHEREAS, pursuant to Kenai Municipal Code 22.05.135(a) the City may acquire property
needed for a public use on such terms and conditions as the Council shall determine; however,
no purchase shall be made until a qualified appraiser has appraised the property and given the
Council and independent opinion as to the full and true value thereof unless the Council , upon
resolution so finding, determines that the public interest will not be served by an appraisal; and ,
WHEREAS , the City Council has authorized the City Manager to enter into negotiations with
property owners who 's parcels have been identified by the Department of the Army, Corps of
Engineers as being needed for the construction of erosion-control structures or to provide
permanent access to support the bluff stabilization project; and,
WHEREAS, the Lower Kenai River has eroded the Kenai River Bluff through the Original Town
Site of Kenai at an estimated rate of three feet per year, causing the loss of public and private
infrastructure, buildings, and lands; and,
WHEREAS, the subject parcel will be included in the project to stabilize the erosion of the bluff at
the mouth of Kenai River; and,
WHEREAS , funds are available for the subject parcel purchase through Legislative Grant 12-DC-
377 .
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA:
Section 1. That the Kenai City Council hereby authorizes the City Manager to purchase the
real property known as Lot 4 , Block 20, Original Townsite of Kenai located within
Section 5 , Township 5 North, Range 11 West, Seward Meridian , Kenai Recording
District, Third Judicial District, State of Alaska for the total purchase price of $800
plus estimated closing costs of $510, on a form approved by the City Attorney, to
be retained by the City for public use.
Section 2. That the Kenai City Council further finds the acquisition of the subject parcel to be
in the best interests of the citizens of the City of Kenai and that the public interest
shall be served by its acquisition for the total purchase price of $800 plus estimated
closing costs of $510, in accordance with the recitals above which are incorporated
herein.
Page 35 of 120
Resolution No. 2017-44
Page 2 of 2
Section 3. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 5 th day of July, 2017 .
BRIAN GABRIEL SR., MAYOR
ATTEST:
Jamie Heinz, Acting City Clerk
Approved by Finance: jfi ~7 T &m~
v
Page 36 of 120
"Vt1/~e with a Pas~ City with a Future"
210 Fidalgo Avenue, Kenai , Alaska 99611 -7794
Telephone : 907-283-7535 /Fax: 907-283-3014
www.kenai.city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager ?c..?-
Matt Kelley , City Planner A/c
June 29, 2017
Resolution No . 2017-44
The purpose of this communication is to provide additional information in support of Resolution
No. 2017-44 . The proposed Resolution, would appropriate funding for the purchase of real
property described as Lot 4, Block 20 , Original Townsite of Kenai , Located within Section 5,
Township 5 North, Range 11 West , Seward Meridian , Kenai Record ing District, Third Judicial
District, State of Alaska , consisting of approxi mately .19 acres .
The subject parce l is located along the Kenai Ri ver bluff, and is being eroded away due to erosion
of the Kenai River Bluff. The subject parcel has been identified by the Department of Army , Corps
of Engineers as being needed for the construction of erosion-control structures or to provide
permanent access to support the bluff stabilization project.
The agreed upon purchase price as negotiated with the MEW Trust, as authorized by the City
Council is $800 .00 plus estimated closing costs of $510.00
Funding for the purchase will be provided through Legislative Grant 12-DC-377 .
Attached , please find an aerial photograph identifying the subject parcel
Thank you for your consideration .
Page 37 of 120
KPB Parcel No: 047-093-04
Owner: Mew Trust
Acreage: .19
Legal: Lot 4 , Block 20, Original Townsite of Kenai
Zoning: Central Commercial
~
AUSU
'V'
0 100 200 400 ---====i----• Feet Page 38 of 120
EARNEST MONEY RECEIPT AND AGREEMENT
Received from City of Kenai hereinafter called PURCHASER, the sum of $0.00 , in th e form of a check payable
to Professional Escrow Services, Inc., in trust for MEW Trust h ereinafter called SELLER, as Earnest Money on
NIA (date), in part payment o f th e purchase price of the following described real property:
Legal Description: Lot 4, Block 20, Original Townsite of Kenai (KPB Parcel No. 04709304) In the Kenai
Recording District, Third Judicial District, State of Alaska.
The total purchase price is $800, payable a s follows: $ ___ earnest money
[glbalance due at closing OR OBank loan with OR
D Owner Finance $ __ payable at $ __ or more per __ . Including/Plus interest at
__ %. Interest accrues from __ . First payment du e __ . Amortized years __ .
ODue on Sale Clause Late fee of$ __ for _past due.
OFull Coverage Insurance Required. Collect at __ . Other terms: __ .
THE CLOSING COSTS are to b e paid between Seller and Purchaser as follows:
Indicate: (S) = Sell er; (P) =Purchaser; (50/50) = Split equally between Seller and Purchaser
_P __ Owners Title insurance
Lenders Insurance r Escrow Settlement/C losing Fee r Recording Fee
__ Escrow Set Up F ee
Escrow Annual Fee
__ Attorney Doc Prep Fees
__ Delinquent Property Taxes
__ Pending/Levied A ssessments
__ C lear Exis ting Liens
__ As -Built Survey Fee
__ Appraisal
__ F inal Inspecti on on Appraisal
Other Costs __
__ Origination Fee
Commitment Fee
Discou nt Points
__ Tax Registration Fee
Flood Certification
__ Credit Report
__ Document Preparation Fee
MIP/PMI
__ V.A. Funding Fee
__ Establi sh/Replace Reserves on N ew Loan
__ Interest to Closing Date New Loan
__ W ell/Septic Testing (ifrequired by lender)
__ Home Inspection Fee
Smoke D etectors
WARNING: IT IS PUR C HASER 'S AND SELLER'S RESPONSIBILITY TO SEEK AND
CONSULT WITH OWN INDEPENDENT LEGAL ADVISOR, TAX ADVISOR, BUILDING
& SOIL IN SPECTOR, LAND SURVEYOR, WATER & SEWER ENGINEER , OR OTHER
APPROPRIATE ADVISOR FOR THIS TRANSACTION AND AT TH E SOLE COST TO THE
PARTY REQUESTING SUCH SERVICE(S) UNLESS OTHERWISE STATED ABOVE.
SUCH SERVICE OR DILIGENT INQUIRY SHALL BE COMPLETED WITHIN 10 DAYS
OF SELLER 'S SIGNATURE HEREON OR ANY OTHER TIME FRAME AND MUTUALLY
AGREED TO IN WRITING BETWEEN SELLER AND PURCHA SER .
1. The titl e i s to vest and read: City of Kenai (ohusband and wife, o married, o
unmarried,)
Page 39 of 120
Purchase and Sales Agreement
City of Kenai and MEW Trust
Kenai Peninsu l a Borough Parcel Number: 04709304
2 . Seller agrees to furnish and deliver to Purchaser as soon as procurable a purchaser 's
policy ohitle insurance to be issued by Title Company. If the title cannot be made clear
as aforesaid within 20 days from the issuance of a preliminary title report, Purchaser may
cancel this agreement and Seller must refund the earnest money. It is also agreed that the
Purchaser may waive defects or require the price to be renegotiated to cover any defects
or encumbrances at the Purchaser's sole discretion without loss of the earnest money
refund.
3. If title is made good on or before closing and the Purchaser neglects or refuses to
complete the purchase, the earnest money may, at Seller's sole option, be forfeited as
liquidated damages, which shall not preclude any other remedy available at law or in
equity, if any.
4. The property shall be conveyed by WARRANTY DEED free of encumbrances except for
rights reserved in federal patents or state deeds , building or use restrictions general to the
district, and building or zoning regulations and provisions shall not be deemed defects
nor encumbrances. Any defects or encumbrances may be discharged at closing out of the
purchase money.
5. Taxes for the current year, rents, interest, mortgage reserves , will be prorated as of the
date of closing.
6. Possession will occur on recording.
7. Purchaser offers to purchase the property on the terms noted in its present condition and
this agreement is i ssued subject to:
a. Subject to approval of the Council of the City of Kenai
b.
c.
d.
e.
8. The sale shall be closed in the offices of Professional Escrow Services with an escrow or
closing agent o n or before 30-Days after approval of the Reso lution or Ordinance
approving the purchase by the Council of the City of Kenai. "Closed" shall mean the day
the deed of contact is recorded and funds are to b e disbursed.
9. Purchaser and the Seller will, on demand of either, deposit in escrow with the closing
agent all instruments and monies necessary to complete the purchase.
IO. There are no verbal or other agreements which modify or affect this agreement. Time is
of the essence of this agreement.
WHEREFORE the Seller and purchaser being in accord do bind themselves hereto by their
signatures hereunder:
2 Page 40 of 120
Purchase and Sales Agreement
City of Kenai and MEW Trust
Kenai Peninsula Borough Parcel Number: 04709304
PURCHASER:
1'sign name)
City of Kenai,
Paul Ostrander, City Manager
(print name)
Telephone: (907) 283-8222
Fax: _________ -i
email: postrander@ken i.city
Address : 210 Fidalgo Avenue
Kenai, AK 99611
L-------------Date · .. ___ _
(s ign name)
(print name)
Telephone: ---------~
Fa x : _________ ~
email :---------~
Address : ---------~
SELLER:
r.-:----:----------Date:. __ ___.
(sign name)
(print name)
Telephone: ________ _
Fax : ________ _
email: __________
1
Address: ---------
Existin Lien Pa off I Assum tion Information :
1. Lender: --------------1
Loan#:_·-------------~
telephone #:
1. Lender : ______________
1
Loan#:
-------------~ telephone #:
3 Page 41 of 120
Sponsored by: Admin is tration
CITY OF KENAI
RESOLUTION NO. 2017-45
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, CONSENTING TO A
RENEWAL OF LEASE OF CERTAIN AIRPORT LANDS WITHIN THE AIRPORT RESERVE
BETWEEN THE CITY OF KENAI , LESSOR, AND DEWAYNE BENTON, LESSEE , ON
PROPERTY DESCRIBED AS LOT 3, BLOCK 4, GENERAL AVIATION APRON NUMBER ONE.
WHEREAS, on September 4, 1992, the City entered into a Lease with ERIK BARNES , d/b/a
BARNES ENTERPRISES, Lessee, for City-owned lands described as follows :
Lot Three (3), Block Four (4), General Aviation Apron No. 1, according to the
amended Plat thereof, filed under Plat No . 2004-20, Records of the Kenai
Recording District, Third Judicial District , State of Alaska ; and
WHEREAS, said Lease of Airport Lands , hereinafter referred to as Lease , was recorded in Book
405 at Pages 409 -431, on September 11 , 1992, in the Kenai Recording District, Third Judicial
District; and,
WHEREAS, the Lease was assigned to RUSSELL G. WINGER, and recorded on April 25, 2003 ,
under document number 2003-005009-0; and ,
WHEREAS , the Lease was amended to reflect a change of use from "aircraft storage" to "aircraft
storage and maintenance" by that certain Assignment of Lease and Amendment to Lease
recorded on April 25, 2003, under document number 2 003-005009-0 ; and,
WHEREAS, the term of the original Lease was five (5) years, and expired o n June 30, 2012.
Subsequently, the City and Lessee, RUSSELL WINGER , entered into a Lease of Airp ort Lands
for a term of fi ve (5) years, recorded on June 12, 2012, under document number 2012-005446-
0; and,
WHEREAS , the Lessee, RUSSELL WINGER , assigned the Lease to DEWAYNE BENTON, by
that Assignment recorded on May 25, 20 16, under document number 2016-004426-0; and ,
WHEREAS, the five (5) year term of the Lease expires on June 30, 2017. On April 21, 2017, the
Lessee , DEWAYNE BENTON, submitted an application to renew the Leas e; and,
WHEREAS , the Lessee's application does not include a proposal to construct new improvements
on th e premises, or a propo sal to add , delete, or alter a business authorized under said lease, the
maximum lease amount provided under Kenai Muni ci pal Code 21.10.090(d)(1) is five (5) years;
and,
WHEREAS, On Jun e 8, 2017, the Airport Commission recommended approval of the Lease
renewal ; and,
Page 42 of 120
Resolution No. 2017-45
Page 2 of 2
WHEREAS, on June 14, 2017, the Planning & Zoning Commission recommended approval of the
Lease renewal.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1.
Section 2.
That a Lease of Airport Reserve Lands be executed by the CITY OF KENAI ,
Lessor, and DEWAYNE BENTON, Lessee on certain Airport Lands described as
Lot 3, Block 4, General Aviation Apron No. 1. Further, the City Manager is
authorized to execute Lease of Airport Reserve Lands on behalf of the City.
This resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of July, 2017.
BRIAN GABRIEL SR., MAYOR
ATTEST:
Jamie Heinz, Acting City Clerk
Page 43 of 120
'Utt~ «1/th a PaJ'~ e~ «1/th a FatUH-"
210 Fidalgo Ave, Kenai , Alaska 99611-7794
Telephone : (907) 283-7535 I Fax : (907) 283-3014
www.kenai.city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager V &4
Matt Kelley, City Planner AJ(_
May 31, 2017
Resolution No. 2017 -45, Lease Renewal DeWayne Benton
Lot 3, Block 4 , General Aviation Apron -170 Granite Po int Court
DeWayne Benton, currently leases the above-described property located inside the Airport
Reserve for "aircraft storage and maintenance", since the lease was assigned to hi m on May 9 ,
2016 . Said lease has a lease term offive years and will ex pire on June 30, 2017. Accordingly, Mr .
Benton has submitted an application for a five-year renewal of his lease with a proposed expi ration
date of June 30, 2022.
The subject parcel is zoned Airport Light Industrial (ALI). Pursuant to KMC 14.22 .010 -Land
Use Table the proposed use of the parcel consisting of aircraft storage and mai ntenance would
fall under Airport Compatible Uses. Thi s use is a principally permitted use and is therefore
consistent with the Airport Light Industrial Zoning District. Furthermore , the Comprehensive Land
Use Plan designation is Airport Industrial. It is defined as " .. .intended to support continued
development at the Kenai Municipal Airport. It is intended for those lands reserved for the airport
and its future expansion are included in this classification. Residential uses may be considered
appropriate provided the residential use is associated with and secondary to the primary
industrial use ."
The continued use of the subject parcel as an aircraft hangar is consisten t w ith th e Airport
Industrial Comprehensiv e Plan Land Use designation.
At their regular meeting of June 8, 2016 , the Airport Commission recommended that the lease
renewal be extended for a period of 8 years. KMC 21 .10.090(d )(1 )-Length of Term details the
requirements of a lease renewal based on the applicants investment into the subject property.
Based on the submitted application , the applicant has indicated that th ey do not plan to make
any additional in vestment into the subject property and would th erefore, ha ve an in vestment of
less than $100 ,000.
Page 44 of 120
Therefore , since the application does not include a proposal to construct new improvements on
the premises , or a proposal to add , delete , or alter a business authorized under the lease , the
maximum term of the lease allowed under Kenai Municipal Code is fi ve years .
Staff therefore recommends that the City enter into a new lease using the current lease fo rm
approved by City Council, establish rents using the latest Airport Reserve Zone-Based Appraisal ,
prepared by Mcswain & Associates on February 18 , 2015, and amend the lease renegotiation
cycle in the lease so that the first renegotiation of rent would take place in 2020 rather than 2022 ,
the year in which the proposed lease would expire.
Thank you for your consideration .
Page 45 of 120
KENAI MUNICIPAL AIRPORT
LEASE OF AIRPORT RESERVE LANDS
THIS LEASE AGREEMENT entered into this day of , 2017, by
and between the CITY OF KENAI, ("City") 210 Fidalgo A venue, Kenai , Alaska 99611-7794,
and DeWAYNE BENTON, individually, whose address is P.O. Box 2646, Kenai, AK 99611
("Lessee").
DEFINITIONS
For the purposes of this Lease the following terms are defined as follows:
1. Airport -the Kenai Muni cipal Airport, including all the runways, taxiways, aprons, water
lanes, water taxiways; and all City-owned real estate located within the boundaries of the
Airport Reserve as defined in KMC 21.05.010-020.
2. Airport Manager -the official to whom the City Manager of the City has delegated the
authority and responsibility of managing and directing the activities of the Airport.
"Airport Manager" includes that person 's authorized representative.
3. City -the City of Kenai , Alaska, a home rule municipal corporation of Alaska.
4. City Manager -the official to whom the Kenai City Council bas delegated the
responsibility of managing and directing all activities of the City.
5. Contamination -the unpem1itted presence of an y released Hazardous Substance.
6. Environmental Law -any applicable federal , state, or local statute, l aw, regulation ,
ordinance, code, permit, order, decision, judgment of any governmental entity rel ating to
environmental matters, including littering and dumping.
7. FAA -the abbreviation for the Federal Aviation Administration.
8. Hazardous Substance -any s ubstance that is defined under an En vironmental Law as
hazardous waste, Hazardous Substance, ha zardous material, toxic, pollutant, contaminant,
petroleum, petroleum product, or oil.
LEASE OF AIRPORT LANDS Page 1of33
Page 46 of 120
9. KMC -the abbreviation for the Kenai Municipal Code.
10. Permanent Improvement -a fixed addition or change to land that is not temporary or
portable, including a building, building addition, gravel fill, paving, retaining wall,
storage tank, and well.
ARTICLE I
PREMISES LEASED
A. PREMISES: In consideration of Lessee 's payment of the rents and performance of all
the covenants of this Lease, the City leases to the Lessee, and the Lessee leases from the City,
the following described property ("Premises") in the Kenai Recording District, Third Judicial
District, State of A laska and located on the Airport; to wit:
Lot 3 , Block 4, General Aviation Apron No. 1, according to the amended P lat
thereof, filed under Plat No. 2004-20, recorded in the Kenai Recording District,
Third Judicial District, State of Alaska.
B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specifi c
warranties, expressed or implied, concerning the condition of the Premises including, survey,
soils, wetlands, access, and suitability or profitability for any use including those autho1ized b y
this Lease, its environmental condition, or the presence or absence of Hazardous Substances in ,
on, and under the surface. The Lessee takes the Premises on an "as is" basis and without
warranty, subject to any and all of the covenants, terms, and conditions affecting the City's title
to the Premises.
A. AUTHORIZED USES
ARTICLE II
RIGHTS AND USES
1. USE OF PREMISES: The City authorizes the Lessee to use the Premises for the
following purposes only:
Aircraft Storage and Maintenance.
2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in writing,
the Lessee will operate its business on the Premises on a continuous basis,
uninterrupted by any period of closure over 15 consecutive days or 30 aggregate
days within any 12-month period of the term of this lease. The Lessee will give
the City written notice before closing the Lessee's business on the Premises for
more than 10 consecutive days. The notice must state the reason for the closure
and the date on which the Lessee will re-open for business. This provision does
not apply to any period during which the Lessee is unable to operate its business
LEASE OF AIRPORT LANDS Page 2of33
Page 47 of 120
as a result of an act or directive of the City, or as a result of a closure of the
Airport or loss of the Lessee's buildings on the Premises due to fire or natural
disaster or order of public authority.
B. RIGHTS RESERVED TO THE CITY.
1. RIGHT TO GRANT TO OTHERS: The City reserves the right to grant to others
any rights and privileges not specifically granted to the Lessee on an exclusive
basis. The rights and privileges granted to the Lessee in this Lease are the only
rights and privileges granted to the Lessee by this Lease.
2. EASEMENTS: The City reserves the right to make grants to third parties or
reserve to the City easements or rights of way through, on, or above the Premises.
The City will not grant or reserve any easement or right of way that unreasonably
interferes with the Lessee's authorized uses of the Premises.
3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of ingress
to and egress from the Premises and the right to enter any part of the Premises,
including buildings, for the purpose of inspection or environmental testing at any
time. Except in the case of an emergency, all inspections and environmental
testing will be coordinated with the Lessee to minimize interference with
the Lessee 's authorized uses of the Premises.
4. RIGHT OF FLIGHT: There is hereby reserved to the City, its successors and
assigns, for the use and benefit of the public, a right of flight for the passage of
aircraft in the airspace above the surface of the Premises. This public right of
flight will include the right to cause in the airspace any noise inherent in the
operation of any aircraft used for navigation or flight through the airspace or
landing at, taking off from, or operation on the Airport.
C. PROHIBITED USES
Unless specifically authorized by this Lease or an amendment to this Lease, the following are
prohibited:
1. Any use of the Premises other than those authorized in this Lease.
2. Any use of the Premises that is in violation of a City Ordinance or an Airport
regulation.
LEASE OF AIRPORT LANDS Page 3 of 33
Page 48 of 120
3. The outside storage on the Premises of junk, salvage aircraft or vehicle parts, non-
operational support equipment, unused or damaged equipment or material , or
solid waste or debri s unless allowed pursuant to a conditional use permit under
KMC 14.20.
4. The disposal on the Premises or the Airport of waste materials generated by the
Lessee, including any Hazardous Substance, slash, overburden, and construction
waste.
5. The stripping, wasting, or removing any natural material from the Premises
without the prior written approval of the City.
6. Erecting structures or allowing growth of natural objects that would constitute an
obstruction to air navigation, or allowing any activity on the Premises that would
interfere with or be a hazard to the flight of aircraft, or interfere with air
navigation or communication facilities, serving the Airport.
7. Any use or activity that is prohibited by applicable law or regulation .
ARTICLE III
TERM & HOLDOVER
A. TERM: The term of this Lease is for five (5) years , from the 151 day of July, 2017 to the
30111 day of June, 2022.
B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after
the expiration, cancellation or termination of this Lease, the holding over wi ll not operate as an
extension of the term of this Lease, but only creates a month-to-month tenancy, regardless of any
rent payments accepted b y the City. The Lessee's obligations for performance under this Lease
will continue during the month-to-month tenancy. The City or Lessee may tem1inate the
Lessee 's holdover with ten (10) days ' advance written notice.
ARTICLE IV
RENTS AND FEES
A. RENT: The rent for the Premises is $5 ,040 per year, as established by the City pursuant
KMC 21. 10.100 and as subject to adjustment under Article V of this Lease, plus app li cable sales
tax. The rent shall be payable annually in advance of the first day of each year of the term of this
Lease. All payments required by this Lease must be made in U.S . dollars. If the annual rent
exceeds $2 ,400, the Lessee may, upon written notice to the City, choose to pay the rent in equal
monthly installments, payable in advance on or before the anniversary date of the term of this
Lease and thereafter at monthly intervals . No conversion of the payment schedule from annual
to monthly shall result in the City receiving less rent than it would have received had the
conversion not taken place.
LEASE OF AlRPORT LANDS Page 4of33
Page 49 of 120
B . RENT PR ORA TED: Rental for any period less than one (1) year shall be prorated on the
basis of the rent payable under this Lease in the last full year previous to the prorating.
C. ADDITIONAL RENT: In addition to the rent specified in (A) of this Article, Lessee
agrees to pay to the appropriate parties all levies, assessments, and charges as follows:
I. Taxes pertaining to the leasehold interest of the Lessee.
2. Sales tax now enforced or levied in the future, computed upon rent payable in
monthly installments whether the Lessee pays rent under this Lease on a monthly
or annual basis.
3. All taxes and assessments levied in the future by the City, as if Lessee was the
legal owner of record of the Premises.
4. Reimbursement for City constructed improvements under Article XV.
D. PAYMENTS: The Lessee shall make checks, bank drafts, or postal money orders
payable to the City of Kenai and deliver payments to City of Kenai, Finance Department, 210
Fidalgo Avenue,' Kenai, Alaska 99611-7794 or any other address the City may designate in
writing to the Lessee.
E. INTEREST: Beginning the day after payment is due, all unpaid rents, charges, and fees
required under this Lease will accrue interest at the rate of eight percent (8 .0%) per annum .
Interest on disputed amounts will not be charged to the Lessee if the dispute is resolved in the
Lessee's favor.
F. LATE PAYMENT PENALTY: Jn addition to any interest payable under Prov ision (E)
of this Article, each time the Lessee fails to pay any rent or fee by the date required in this Lease,
the City will charge, and the Lessee shall pay, an administrative penalty of ten percent (10.0%)
of the amount due and unpaid.
G. COURTESY BILLINGS: Lessee acknowledges that any billing statement iss ued by the
City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when due,
regardless of whether or not the Lessee receives a billing statement from the City.
H. LIEN AGAINST LESSEE: Any rent, charge, fee , or other consideration which is due
and unpaid at the expiration, tennination, or cancellation of this Lease will be a lien against the
Lessee's property, real or personal.
I. PAYMENT OF CITY'S COSTS: The Lessee will pay all reasonable actual expenses ,
costs, and attorney fees City may incur, with or w ithout formal action, to enforce, defend, or
protect this Lease or City's rights under this Lease, including any expense incurred with respect
LEASE OF AIRPORT LANDS Page 5 of 33
Page 50 of 120
to environmental compliance, bankruptcy or any proceeding that involves the Lessee, the Lease,
the Premises, or improvements or personal property on the Premises. The Lessee will make
payment within 30 days of the date of each notice from City of any amounts payable under this
provision.
J. PAYMENT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable fee
for any special services or facilities the City agrees to perform , which the City is not otherwise
obligated by this Lease to provide and which the Lessee requests from the City in writing.
ARTICLEV
ADJUSTMENT OF RENT AND FEES
A. RENT OR FEE ADJUSTMENT: Beginning in 2007 and, thereafter, at intervals of
approximately five (5) years, the City shall, in its sole discretion, adjust the rent or a fee payable
by the Lessee under Article IV or other provision of this lease. The first rent adjustment shall be
made in 2020. The amount to which the City increases or decreases any rent or fee shall be
established in accordance with KMC 21.10.100 and 21.10 .160. Any rent change by the City
shall be based on the fair market value of:
1. The Premises in its condition on the term beginning date stated in Article III or in
the case of a lease renewal or extension, the beginning date for the original lease;
plus
2. Any improvements made by the City subsequent to that date, the cost of which is
not reimbursed by the Lessee.
No rent or fee change shall be effective until 30 days after the date of the City's written
notice to the Lessee. If the Lessee believes that any changed rent exceeds the fair market rent for
the Premises, the Lessee may appeal the rent change to the City under KMC 21.10 .160.
B. CITY-CONSTRUCTED IMPROVEMENTS: Improvements constructed by the City on,
or in connection with, the Premises shall not be considered a part of the Premises for the purpose
o f establishing the rent under (A) of this Article, if the Lessee, as a condition of this lease,
reimburs es the C ity for the City's construction costs pursuant to KMC 21.10.110.
ARTICLE VI
ASSIGNMENT & SUBLETTING
A. INVALID WITHOU T CITY'S CONSE N T : The Lessee may not assign, sublet, or grant
a security interest in , by grant or implication, the whole or any part o f this Lease, the Premises ,
or any improv ement on the Premises without the written consent of the City. Any proposed
assignment, sublease, or security interest must be written and must be submitted to the City
bearing the original , notarized signature of all parties. The Lessee may submit unsigned draft
documents for the C ity's conceptual rev iew. However, the City's conceptual approval of a draft
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document may not be construed as the City's consent to any assignment, sublease, or security
interest. All provisions in this Lease extend to and bind the assignees and sub-l essees of the
Lessee.
B. NO W AIYER OF CONSENT: The City's consent to one assignment, sublease, or
security interest will not waiye the requirement for the Lessee to obtain the City's consent to any
other assignment, sublease, or security interest.
C. ASSIGNEE I LESSEE OBLIGATIONS: An assignment m u st include a provision stating
that the assignee accepts respon sibility for all of the assignor's (Lessee's) obligations under this
Lease, including environmental liability and responsibility. However, unless the City
specifically releases the Lessee in writing, the City may hold the Lessee responsible for
performing any obligation under this Lease, which an assignee fails to perform.
D . OCCUPANCY BEFORE CITY CONSENT: An assignee or s ub-lessee may not occupy
the Premises before the City consents to the assignment or su blease in writing.
E. CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an
assignment or a sublease, the tenns of this Lease control.
F. LESSEE NOT RELIEVED OF OBLIGATIONS: The City's consent to any sublease
does not relieve or otherwise alter the Lessee's obligations under this Lease.
G . SECURITY ASSIGNMENTS AND FINANCING:
1. Subject to the requirements of (A) of this Article VI, the Lessee may assign a
security interest in this Lease. The security interest may be in the form of a mortgage,
deed of trust, assignment or other appropriate instrument, provided:
a. the security interest pertains only to the Lessee's leasehold interest ;
b. the security interest does not pertain to or create any interest in City's title
to the Premises ; and
c. the documents providing for the security interest are acceptable to the
City.
2. If the assignment of a security interest to which the City has consented shall be
held by an established lending or financial institution, including a bank, an established
insurance company and qualified pension or profit sharing trust, and the lending
institution acquires the Lessee's interest in this Lease as a result of a foreclosure action or
other remedy of the secured party, or through any transfer in lieu of foreclosure , or
through settlement of or arising out of any pending or contemplated foreclosure action,
the lending institution may transfer its interest in this Lease to a nominee or a wholly
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owned subsidiary corporation w ith the prior written consent of the City, provided, the
transferee assumes all of the covenants and conditions required to be performed by the
Lessee (including payment of any monies owed by Lessee to the City under the lease). In
the event o f s uch a transfer, the lending institution shall be relieved of any further liability
under this Lessee.
3. A holder of a security interest in this Lease consented to b y the City shall have,
and be subrogated to, any and all rights of the Lessee with respect to the curing of
any default of this Lease by Lessee.
4 . If, before any default has occurred in the Lease, the holder of a security interest in
this Lease consented to by the City gives the City a written notice of the holder's
post office address, the City shall thereafter
a. by regular U.S. mail, send to the holder a copy of each notice of default at
the same time as the Cit y gives notice of default to the Lessee; and
b. not accept any surrender or enter into any modification of this Lease
w ithout the prior written consent of the holder, which the holder shall not
unreasonably delay or withhold.
5. The City will enter into a new lease of the Premi ses with the holder of a security
interest consented to by the City, if the City terminates this Lease prior to its
normal expiration due to a default by the Lessee. The new Lease shall be for the
remainder of the term of this Lease and shall be effective as of the termination of
this Lease. The C ity's grant of the new lease shall be subject to the following
conditions:
a. the new lease sha11 be effective on the date this Lease is terminated;
b. the new lease shall be for the same rent, additional rent, and covenants as
this Lease;
c. By no later than the twentieth (20t11 ) day following the termination of this
Lease, the security holder must submit a written request to the City for the
new lease, together with payment of all rent, additional rent and other
sums then due to the City under this Lease.
d. The security holder shall pay to the City, at th e time of the execution and
delivery of such new Lease any and all sums due thereunder in addition to
those which would at the time of the execution and delivery thereof be due
under this Lease but for such termination, and in addition thereto, any
reasonable expenses, including legal and attorneys' fees, to which the C ity
shall have been subjected by reason of such default.
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e. The security holder shall, on or before the execution of the new Lease,
perform all the other obligations of the Lessee under thi s Lease to the
extent the Lessee failed to perform them prior to the termination of this
Lease.
6. A holder of a security interest consented to by the City that takes possession of
this Lease or enters into a new lease with the City shall not be released from the
obligations and liabil ities of this Lease or the new lease unless the holder assigns
its leasehold estate to an assignee who is financially capable and otherwise
qualified to undertake to perform and observe the conditions of this Lease or the
new lease and the City consents to the assignment. The City's consent will not be
unreasonably withheld. If the security holder asserts that the City is unreasonably
withholding its consent to a proposed assignment, the dispute shall be resolved b y
arbitration.
ARTICLE VII
MAINTENANCE, SNOW REMOVAL & UTILITIES
A. MAINTENANCE
I . At no cost to the City, the Lessee will keep the Premises and all improvements on
the Premises clean , neat and presentable, as reasonably determined by the City.
2. At no cost to the City, the Lessee will provide for all maintenance and services at
the Premises as may b e necessary to facilitate the Lessee's compliance with this
Lease and the Lessee's use of the Premises.
3. The Lessee shall comply with all regulations or ordinances of the City that are
promulgated for the promotion of s anitation. At no cost to the City, the Lessee
shall keep the Prem ises in a clean and sanitary condition, and control activities on
the Premises to prevent the pollution of water.
4 . The Lessee agrees to comply with all decisions and directions of the City's
Airport Manager regarding maintenance and operation of the Airport, and the use
of the Airport by the Lessee.
B. SNOW REMOVAL
1. At no cost to the City, the Lessee is responsible for snow removal on the
Premises. The Lessee shall disp ose of snow in an off-Premises location approved
in writing b y the City or provide suitable snow storage within the boundaries of
the Premises in accordance with all applicable federal and state laws. At the
request of the Airport Manager, the Lessee shall submit a snow removal plan for
the Premises to the Manager for review. Upon approval of the Lessee's plan by
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the Airport Manager, the Lessee shall conduct all snow remova l operations on the
Premises in accordance with the approved plan.
2. Lessee shall not deposit snow on an apron , taxiway, safety area, or other aircraft-
maneuvering surface provided for common use by others without the prior written
approval of the Airport Manager.
3. Lessee agrees to not allow an accumulation of snow on the Premises that wou ld
cause interference with adjoining leaseholders or other users of the Airport.
C . UTILITIES. Unless specifically provided otherwise in this Lease, the Lessee shall, at no
cost to th e City, provide for all utilities at the Premises necessary to facilitate the Lessee's use of
the Premises.
ARTICLE VIII
OPERATIONS
A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee, its
employees, guests, contractors, sub-lessees, and ven dors that perform any activity or function
authorized under this Lease shall do so in a manner that ensures the safety of people, the
protection of public health and the environment, and the safety and integrity of the Airport and
th e Premises.
B. LESSEE'S CONTROL AND RES PONSIBILITY
1. The Lessee will assume full control and sole responsibility as between Lessee and
City for the activities of th e Lessee, th e Lessee's personnel and employees, and
anyone el se acting by, on behalf of, or under the authority of the Le ss ee on the
Airport, including the Premises.
2. The Lessee will immediately notify the City of any condition, problem ,
malfunction or other occurrence that threatens the safety of people or the Airport,
harm to public health or the environment, or the safety or integrity of the
Premises.
C. RADIO INTERFERENCE : The Lessee will discontinue the use of an y machine or
dev ice that interferes with any government-operated transmitter, receiver, or navigat ion aid until
the cause of the interference is eliminated.
D. WILDLIFE: T he Lessee acknowledges that a concentration of birds or other wildlife on
an airport constitutes a significant ha zard to aircraft operations. The Lessee agrees to keep the
Premi ses cl ean of fish slime, fish waste, or any other material that might attract bird s or other
wildlife. The Lessee accepts full responsibility to maintain the Premises, control operation s, and
take all reasonab le measures to prevent a concentration of birds or other wildlife on the Premises.
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E. PARKING: The Lessee will provide adequate vehicle, equipment, and aircraft parking
space on the Premises for Lessee's business or activities , or confine parking to such other places
on the Airport as may be approved or designated in writing by the Airport Manager.
ARTICLE IX
ENVIRONMENTAL PROVISIONS
A. HAZARDOUS SUBSTANCE
1. The Lessee will conduct it business and/or operation on the Premises in
compliance with all environmental laws and permits. If hazardous substances are
handled on the Premises, the Lessee agrees to have properly trained personnel and
adequate procedures for safely storing, dispensing, and otherwise handling
Hazardous Substances in accordance with all applicable federal, state and local
laws.
2. Lessee will promptly give the City notice of proceeding to abate or settle matters
relating to the presence of a Hazardous Substance on the Premises or from
Lessee's operations on the Airport. The Lessee will allow the City to participate
in any such proceedings.
B. ENVIRONMENTAL INDEMNIFICATION
If Contamination of the Premises or other property by a Hazardous Substance occurs from the
Lessee's operations on the Premises the Lessee will indemnify, defend, and hold the City
harmless from any and all claims, judgments, damages, penalties, fines , costs, liabilities, or
losses, including, but not limited to, sums paid in settlement of claims, attorney's fees , consultant
fees, and expert fees, which arise during or after the term of this Lease as a result of such
Contamination. This indemnification of the City by Lessee includes, but is not limited to, costs
incurred in connection with any investigation of site conditions or any cleanup, remediation,
removal, or restorative work required by any federal , state, or local governmental agency
because of a Hazardous Substance being present in the soil or groundwater or under the Premises
or other properties affected by the Contan1ination.
C. REMEDIATION
1. In the event of a Hazardous Substance spill on the Premises, the Lessee will
immediately notify the City and the Alaska Department of Environmental
Conversation and act, promptly, at its sole expense, to contain the spill, repair,
any damage, absorb and clean up the spill area, and restore the Premises to a
condition satisfactory to the City and otherwise comply with the applicable
portions of any environmental law.
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2. In addition to any notices required by this Lease, the Lessee will immediately
notify and copy the City in writing of any of the following:
A. Any permit, enforcement, clean up, lien , removal or other governmental or
regulatory action instituted, completed, or threatened pursuant to an
Environmental Law.
B. Any claim made or threatened by any person against the Lessee or arising
from the Lessee's operations authorized by this Lease, relating to damage ,
contribution, compensation, loss or injury resulting , from , or claimed to
result from any Hazardous Substances in, on, or under the Airport; or
C. Any report made by, or on behalf of, the Lessee to any environmental
agency arising out of or in connection with any Hazardous Substances in,
on, or removed from the Premises, including any complaints, notices,
warnings, or asserted violations.
3. Remediation and restoration of the contaminated area must meet all applicable
state and federal regulations and must meet the requirements of all governing
regulatory authorities.
D. ENVIRONMENTAL AUDIT
The Lessee will provide the City with all investigative data, test results, reports , and any other
information gathered or analyzed as part of or in relation to any Environmental Assessment ,
characterization or audit on the Premises or the Airport that Lessee performs or causes to be
performed after the starting date of this Lease. The Lessee will submit the data, result , report or
information to the City within 60 days following the date on which it becomes available to the
Lessee.
E. RELEASE OF LESSEE
The City releases the Lessee from liability to the City for Contamination and the presence of
Hazardous Substances that existed prior to the commencement date of this lease unles s caused or
materially contributed to by the Lessee.
F . SURVIVAL OF OBLIGATIONS
The obligations and duties of the City and Lessee under Article IX of this lease shall survi v e the
cancellation , tem1ination or expiration of this lease.
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ARTICLEX
INDEMNIFICATION & INSURANCE
A. INDEMNIFICATION
1. The Lessee will indemnify, hold harmless, and defend the City, its officers,
agents, and employees from and against any and all liabilities, losses, suits,
administrative actions, claims, awards, judgments, fines, demands, damages, injunctive
relief or penalties of any nature or kind to the full extent of the loss or obligation for
property damage, personal injury, death, violation of any regulation or grant agreement,
or any other injury or harm resulting from or arising out of any acts or commission of or
omission by the Lessee, his agents, employees, customers, invitees or arising out of the
Lessee's occupation or use of the premises demised or privileges granted, and to pay all
costs connected therewith . This indemnification of the City by the Lessee shall include
sums paid in settlement of claims, attorney fees , consultant fees, expert fees, or other
costs and expenses, directly or indirectly arising from, connected to or on account of this
Lease as it relates to the Lessee, the Lessee 's activities at or relating to the Airport, or any
act or omission by the Lessee, or by any of its officers, employees, agents, contractors or
sub-lessees. These indemnity obligations are in addition to , and not limited by, the
Lessee 's obligation to provide insurance, and shall survive the expiration or earlier
termination of this Lease.
2. The Lessee shall give the City prompt notice of any suit, claim , action or other
matter affecting the City to which Paragraph I , above, may apply, together with a copy of
any letter by an attorney on behalf of a complainant, any complaint filed in court, and any
notice or complaint by any regulatory agency. The City shall have the right, at its option,
to participate cooperatively in the defense of, and settlement negotiations regarding, any
such matter, without relieving the Lessee of any of its obligations under this provision.
3. As to any amount paid to others for personal injury or property damage with
respect to which an act or omission of the City is a legal cause, notwithstanding
Paragraph I of this section, the Lessee and the City shall reimburse each other according
to the principles of comparative fault. If liability to a third party is subject to
apportionment according to comparative fault under this provision, the Lessee and the
City shall seek in good faith to achieve n on-judicial agreement as apportionment of fault
as between themselves. This apportionment of liability between the City and the Lessee
shall not be construed to affect the rights of any person who is not a party to this Lease.
B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force during
the tenn of this Lease, insurance of the type and limits required b y this provision. Where
specific limits are set, they will be the minimum acceptable limits. If the Lessee's policy
contains higher limits, the City will be entitled to coverage to the extent of the higher limits. At
the time insurance is obtained by the Lessee, all insurance shall be by a company/corporation
rated "A-" or better by A.M. Best. The following policies of insurance are required with the
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following minimum amounts:
1. Commercial General Liability, including Premises, all operations, property
damage, products and completed operations, and personal injury and death,
broad-form contractual, with a per-occurrence limit of not Jess than $1,000,000
combined single limit. If this lease authorizes the Lessee to engage in the sale or
the commercial dispensing or storage of aviation fuel , the policy must not exclude
of the Lessee 's fuel handling activities. This policy must name the City as an
additional insured.
2. Commercial Automobile Coverage with not Jess than $1,000,000 combined single
limit per occurrence. This insurance must cover all owned, hired, and non-owned
motor vehicles used by the Lessee.
3. Workers Compensation Insurance. The Lessee will provide and maintain, for all
employees, coverage as required under AS 23.30.045, and , where applicable, any
other statutory obligations. The policy must waive subrogation against the City.
4 . The Lessee will provide the City with proof of insurance coverage in the form of
an insurance policy or a certificate of insurance, together with proof that the
premiums have been paid, showing the types and monetary limits of coverage
secured. All insurance required by thi s provision must provide that the City be
notified at least 30 days prior to any termination, cancellation, or material change
in the ins urance coverage.
5. If th e Lessee's insurance coverage lapses or is cancelled , Lessee will immediately,
upon written notice by the City, halt all operations on the Airport, including the
Premises. The Lessee will not resume operations until the City receives evidence
that the Lessee has obtained current insurance coverage meeting the requirements
of this Lease.
6. The City may, at interval s of not less than five years from the beginning date of
the term of thi s Lease and upo n written notice to Lessee, revi se the insurance
requirements required under thi s Lease. C ity 's detem1ination to revise the
in s urance requirements will be based on the risks relative to the Lessee's
operations, any in s urance guidelines adopted by th e City, and any change in
applicable law.
7. If the Lessee subleases all or any portion of the Premises under the provisions of
this Lease , the Lessee wi ll require the sub -lessee to provide to the insuran ce
coverage required of the Lessee under this Article X.
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ARTICLE XI
LAWS&TAXES
A. COMPLIANCE WITH LAW: Lessee shall comply with all applicable laws, ordinances,
and regulations of public authorities now or hereafter in any manner affecting the Airport, the
Premises or the sidewalks, alleys , streets, and ways adjacent to the Premises, or any buildings,
structures, fixtures and improvements or the use thereof, whether or not any such laws,
ordinances, and regu lations which may be hereafter enacted involve a change of policy on the
part of the governmental body enacting the same. Lessee agrees to hold City financially
harn1less:
I. From the consequences of any violation of such laws, ordinances, and/or
regulations; and
2. From all claims for damages o n account of injuries, death , or property damage
resulting from such violation.
B. UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use, occupation,
business, or trade to be conducted on the Premises contrary to any law, ordinance, or regulation,
including zoning ordinances, rules and regulations.
C. LICENSES AND PERMITS: The Lessee will obtain all necessary licenses and pennits,
pay all taxes and special assessments lawfully imposed upon the Premises, and pay other fees
and charges assessed under applicable law. Nothing in this Lease prevents the Lessee from
challenging any taxes or special assessments to the appropriate authority.
D. LITIGATION: The KMC, including regulations promulgated thereunder, and the Jaws of
the State of Alaska will govern in any dispute between the Lessee and City. If a dispute
continues after exhaustion of administration remedies, any lawsuit must be brought in the courts
of the State of Alaska, in Kenai , Alaska.
E. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term of thi s Lease may become a li en upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which Lessee
may have in or to the Premises or improvements on the Premises by reason of its use or
occupancy or the terms of thi s Lease provided, however, that nothing in this provision shall
prevent Lessee from contesting any increase in a tax or assessment under any applicable law,
ordinance, or regulation.
F. PARTIAL INVALIDITY: If an y term , provision, condition, or part of this Lease i s
declared by a court of competent jurisdiction to be invalid or unconstitutional , the remaining
terms, provisions, conditions, or parts shall continue in full force and effect as though the
declaration had not been made.
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ARTICLE XII
LEASE TERMINATION
A. CANCELLATION: The City may, after 30 days ' written notice to the Lessee, cancel this
Lease and recover possession of the Premises if any of the following violations occur, unless the
violation is cured within the 30 days:
1. The Lessee fails to pay when due the rents, additional rents , charges, or other
sums specified in this Lease, including any increases made under this Lease.
2. The Lessee's check for payment of any sum due under this Lease is returned for
insufficient funds.
3. The Lessee uses or authorizes the use of the Premises for any purpose not
authorized by this Lease.
4. The Lessee fails to fully perform and comply with any provision in this Lease.
5. The court enters a judgment of insolvency against the Lessee.
6. A trustee or receiver is appointed for the Lessee's assets in a proceeding brought
by or against the Lessee, or the Lessee files a voluntary petition in bankruptcy.
7. Failure by the Lessee to comply with any land development or permanent
improvement construction required by this Lease.
B. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated in
accordance with this Article XII, or by summary proceedings or otherwise, or upon the Lessee's
abandonment of the Premises or a portion of the Premises, the City or its agents , servants, or
representatives may, immediately or any time thereafter, re-enter, and resume possession of the
Premises or portion thereof, and remove all persons and property therefrom , without being liable
for any damages therefore. No re-entry by the City shall be deemed an acceptance of a surrender
of the Lease.
C. CONTINUING OBLIGATIONS UNTIL PREMISES VACA TED: The Lessee will
continue to pay City rent after the expiration , termination , or cancellation of this lease and to
abide by the lease obligations, including providing proof of insurance coverage, through the date
Lessee relinquishes possession of and completely vacates the Premises. City will consider the
Premises completely vacated if the Lessee has;
1. Rernediated any environmental contamination for which the Lessee is
responsible; and
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2. Restored the Premises to a neat and clean physical condition acceptable to the
City.
D. REASONABLE CURE
I. In the case of a violation that cannot be reasonably cured within 30 days, a notice
of cancellation issued by the City to the Lessee under this Article is stayed if,
within the 30-day notice period, the Lessee begins and continues expeditious
action to cure the violation. The City will determine if a violation cannot be
reasonably cured within 30 days and what constitutes expeditious action.
2. In the case where, in City's sole determination, Lessee 's violation is considered
an imminent threat to the airport, public health or safety, or the environment, City
will direct the Lessee to stop the activity immediately and may reduce the period
to cure the violation, or the City may correct the violation pursuant to (E) of this
Article.
E. RIGHT OF CITY TO PERFORM:
I. If, after 30 days following notice the Lessee fails or refuses to perform any action
required by this Lease, the City will have the right, but not the obligation, to
perform any or all such actions required by this Lease at the sole expense of the
Lessee. The City will not take action if the Lessee begins and continues
expeditious action to perform any action required by this Lease that cannot be
reasonably completed within 30 days. The C ity will, at its sole discretion,
determine what constitutes expeditious action and if an action cannot be
reasonably performed in 30 days. The C ity will submit to the Lessee an invoice
for the expenses incurred by the City in the performance by the City of any
required action. The Lessee will pay the amount of each invoice within 30 days
from issuance.
2. If Lessee fails or refuses to perform an y action that has been deemed an imminent
threat the City will have the right, but not the obligation, to perform any or all
such actions required to expeditiously correct the imminent threat. Lessee shall
reimburse the City for any cost, including legal fees and administrative costs
reasonably incmTed by the C ity in acting to COTI'ect the imminent threat v iolation.
F. W AIYER: A waiver by the City of any default by the Lessee of any provision of this
Lease will not operate as a waiver of any subsequent default. If the City waives a default, the
City is not required to provide notice to the Lessee to restore or revive any terrn or condition
under this Lease. The waiver by the City of any provision in this Lease cannot be enforced or
relied upon unless the waiver is in writing and signed on behalf of the City. The City's failure to
insist upon the strict performance by the Lessee of any provision in this Lease is not a waiver or
relinquishment for the future, and the provision will continue in full force .
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G. AIRPORT CLOSURE:
1. If the City closes the airport to aircraft operations for sixty (60) days or less, this
Lease will remain in full force and effect without adjustment
2. If the City closes the Airport to aircraft operations for more than sixty (60) days,
but not permanently, and this Lease is for aviation or direct aviation support uses,
the Lessee may, upon written notice to the City, either terminate the Lease or
retain the Lease and receive a fifty (50%) percent rent reduction or credit for that
portion of the closure that exceeds sixty (60) days.
3 . If the City permanently closes the Airport to aircraft operations and
(a) this Lease is for aviation or direct aviation support uses, the Lessee may
terminate this agreement by written notice to the City; or
(b) this Lease is for non-aviation uses, the Lessee may request in writing to
have the Lease terminated. The City will consider the Lessee 's request in
light of the City's best interest and either terminate the Lease, or deny the
Lessee 's request in writing.
H. DISASTERS:
The Lessee or City may cancel this lease upon written notice to the other party if;
1. the Premises becomes unusable through no fault of either party and performance
under this Lease becomes impossible; or
2. the Airport becomes unusable through no fault of either party and the
performance under this Lease becomes impossible.
If the Lessee elects in writing that it will continue to operate after notice from City to Lessee that
the Airport has become unusable, the Lessee's obligations under the Lease will continue, but
City shall be under no obligation to continue to perform.
Causes for tem1ination of the Lease under this provision (H) include acts of God, the public
enemy, and the United States.
I. NATIONAL EMERGENCY: If the federal government declares a national emergency,
neither party may hold the other liable for any inability to perform any part of this Lease as a
result of the national emergency.
J . SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII,
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Lessee shall, on the last day of the term of this Lease (incl u ding any extension or renewal
thereof) or upon any earlier termination of th is Lease, surrender and deliver up the premises into
the possession and use of City without frau d or delay in good order, condition, and repair, except
for reasonable wear and tear since the last necessary repair, repl acement, restoration or renewal ,
free and clear of all lettings and occupancies unless expressly permitted by the City in writing,
and free and clear of all liens and encumbrances other than those created by and for loans to
City.
K. OWNERSHIP AND DISPOSITION OF IMPROVEMENTS:
1. Ownership of Pennanent Improvements: Permanent Improvements on the Premises,
excluding Site Development Materials, constructed, p l aced or purchased by the Lessee
remain the Lessee 's property as long as this Lease remains in effect, including any period
of extension or holdover with the consent of t h e City.
2. Disposition of Site Development Materials: The Lessee acknowledges that, once placed
by the Lessee, the removal from the Premises of the Site Development Materials can
damage the Prem ises, adversely affect surface water drainage patterns, and destabilize
adjacent structures. When placed on the Premises by the Lessee, Site Development
Materials, including building pads, parking area, driveways, and similar structures:
a. become part of the realty and the property of the City of Kenai;
b. unless otherwise directed by the City, must be maintained by the Lessee
throughout the term of this Lease, including any extensions and periods holdover;
and ,
c. may not be removed by the Lessee without the prior written approval of the City.
3. Disposition of Personal Property and Permanent Improvements Other Than Site
Development Materials:
a . Unless the City otherwise directs as provided below, when this Lease expires,
terminates, or is cancelled and is neither extended nor followed by a successive
lease, the departing Lessee may do one or more of the following:
i. Remove Lessee-owned Permanent Improvements from the Premises,
remediate any Contamination for which the Lessee is responsible, and
restore the Premises to a clean and neat physical condition acceptable to
the City within 60 days after the expiration, cancellation, or termination
date of this Lease
ii. with written approval from the City, sell Lessee-owned Permanent
Improvements to the succeeding Lessee, remove all personal property,
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remediate, any Contamination for which the Lessee is responsible and
leave the Premises in a clean and neat physical condition acceptable to the
City within 60 days after notice from the City that the City has approved
an application for a lease of the premises by another person or such longer
period specified in the notice, but in no event more than 180 days after the
expiration, termination, or cancelation date of this Lease;
111. elect to have the City sell Lessee-owned Permanent Improvements at
public auction as provided below, remediate any Contamination for which
the Lessee is responsible, and restore the premises to a clean and neat
physical condition acceptable to the City. If the City sells Permanent
Improvements under this Paragraph for removal from the Premises, the
departing Lessee's obligation under this Paragraph continues until the
Premises are remediated and restored to a clean and neat physical
condition acceptable to the City after the improvements have been
removed .
b . If the departing Lessee elects to have the City sell Lessee-owned Permanent
Improvements at public auction per this Section, the Lessee shall, within 30 days
after the expiration, cancellation, or termination of this Lease:
1. submit to the City a written request and authorization to sell the Permanent
Improvements by public auction ;
11. provide to the City an executed conveyance document transferring clear
title to the Permanent Improvements to the successful bidder at the public
auction, along with authorization to the City, as agent for the Lessee for
purposes of the sale only, to endorse the name of the successful bidder on
the conveyance document upon receipt of payment of the successful bid
price; and
n1. before the date of the public auction, remove all personal property,
remediate any Contamination for which the Lessee i s responsible and
lease the Premises in a neat and clean physical condition acceptable to the
City.
c. When selling Lessee-owned Permanent Improvements at public auction for the
departing Lessee, the City will establish the term s and conditions of the sale. The
City shall pay the Lessee any proceeds of the sale of the Permanent
Improvements, less the administrative costs of the public auction and any
financial obligation the Lessee owes to the City under this Lease. Payment will
be made within a reasonable time after the City completes the sale transaction and
receives the proceeds , but not to exceed 60 days. If all or a portion of the
Permanent Improvements do not sell at public auction , the Lessee will remo ve
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those Permanent Improvements, remediate any Contamination for which the
Lessee is responsible and restore the Premises to a clean and neat physical
condition acceptab le to the City within 60 days after the auction.
d. If the Lessee shows good cause to the City and if it is not inconsistent with the
best interest of the City of Kenai , the City will grant an extension of time that is
sufficient to allow the Lessee to remove or sell Lessee-owned Permanent
Improvements, remediate any Contamination for which the Lessee is responsible
and to restore the Premises to a clean and neat physical condition acceptable to
the City.
e. The City will , by written notice, direct any departing Lessee to remove Lessee-
owned Permanent Improvements from the Premises, to remediate , consistent with
applicable law , any Contamination for which the Lessee is responsible and to
restore the Premises to a clean and neat physical condition acceptable to the City
if the City determines in writing,:
i. that the continued presence of the Permanent Improv.em ents on the
Premises are not consistent with any written Airport program or plan
required for compliance with applicable federal , state, or local law ;
IL that the continued presence of the Permanet Improvements on the
Premises is not in the best interest of the C ity of Kenai; or
m. that the Permanent hnprovements present a hazard to public health or
safety.
f. The departing Lessee to whom the City has issued direction under Paragraph (e)
of this Section shall comply with the City's direction within 60 days after
issuance of the direction and at no cost to the City. If the departing Lessee shows
good cause to the City, continues to work diligent to comply with City's direction,
and if it is not inconsistent with the best interest of the City of Kenai , the City will
allow in writing a longer period that is sufficient to aJlow the Lessee to comply
with the City's direction. A depa1ting Lessee who fails to comply with a direction
issued by the City under Paragraph (e) of this Section, shall, with in 30 days of
being bi11ed by the City, reimburse the City for any costs reasonably incun-ed by
the City, including legal fees and administrative costs , to enforce the City's
direction or to remove and dispose of unremoved Lessee-owned improvements,
remediate any Contamination for which the Lessee is responsible and restore the
Premises.
g. If the departing Lessee does not timely remove or sell the Lessee-owned
Permanent Improvements on the Premises in accordance with the requirements of
this Section, any remaining Permanent Improvements and any remaining personal
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property of the departing Lessee will be considered pennanently abandoned. The
City may sell, lease, demolish, dispose of, remove, or retain the abandoned
property for Airport use as the City detennines is in the best interest of the City of
Kenai. The departing Lessee shall, within 30 days after being billed by the City,
reimburse the City for any costs, to demolish, remove, di spose, clear title to , or
sell abandoned property and to remediate and restore the Premises.
h. After the expiration, termination, or cancellation of the Lease, including any
holdover, the departing Lessee loses all right to occupy or use the premises
without the express or implied consent of the City. Except as the City notifies the
departing Lessee otherwise in writing, the City consents to the departing Lessee's
continued use and occupancy of the Premises to diligently accomplish the
requirements of this Section. Until the departing Lessee relinquishes possession
of and completely vacates the Premises under Paragraph 9 of this Section and
notifies the City in writing that it has relinquished and vacated the Premises, the
departing Lessee shall perform the following as if the lease were still in effect,
1. pay rent to the City;
11 . maintain the premises;
111. provide the City with evidence of each insurance coverage if any required under
the Lease; and
1v. cease us in g the premises other tha n to diligently accomplish the require ments of
this Section and to comply with the other requirements of the Lease
1. A departing Lessee will not be considered to hav e relinqui shed possession and
completely vacated the Premises until
1. the departing Lessee has:
(a) remediated, consistent with applicable law, any Contaminati on for
which the Lessee i s responsible; and
(b) restored the Premi ses to a clean and neat phys ical condition
acceptable to th e Ci t y; and
IL either
(a) removed all of the Lessee's Permanent Improvements and personal
property from the premises or sold th e Permanent Improvements
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and personal property to a succeeding Lessee under the provisions
of this Lease; or
(b) transferred title to the Lessee's Peimanent Improvements and personal
property that remain on the premises to the City.
ARTICLE XIII
GENERAL COVENANTS
A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport land s or
facilities without the written consent of the C ity i s prohibited. This prohibition shall not apply to
use of areas designated by the City for specified public uses , such as passenger terminals,
automobile parking areas, and streets.
B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not
limited to recording costs, shall be paid by Lessee.
C. CARE OF THE PREMISES: The Lessee shall keep the Premises clean and in good
order at the Lessee 's own expense, allowing no damage, waste, nor destruction thereof, nor
removing any material therefrom, without written pem1ission of the City. At the expiration of
the term fixed, or any earlier termination of the Lease, the Lessee wi ll peaceably and quietl y quit
and surrender the premises to the City.
D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction on the
Premises by the Lessee must be compatible with its surroundings and consistent with the uses
authori zed under this Lease, as determined by the City. The Lessee must obtain the City 's
written approval before placing fill material , beginning any land development, or constructing or
demolishing an y improvements on the Premises, and before beginning any alterati ons,
modifications, or renovation of existing structures on the Premises. The Lessee must submit to
the City detailed drawings of the proposed development, alteration , modification, or renovation,
together with specifications or any other information the City reasonably requires . Further, the
Lessee will submit to City evidence of the Lessee 's compliance with Federal Aviation
Administration regulation 14 CFR Part 77.
E. LEASE SUBORDINATE TO AIRPORT FINANCING REQUIREMENTS: Lessee
agrees that City ma y modify thi s Lease to meet revi sed requirements for Federal or State grants,
or to conform to the requirements of any revenue bond covenant. However, the modification
shall not act to reduce the rights or privileges granted the Lessee by thi s Lease, nor act to cause
the Lessee financial loss.
F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereb y agrees and
covenants that the Lessee, upon paying rent and performing other covenants, terms, and
conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and
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enjoy the Premises, except that the following shall not construed as a denial of the right of quiet
or peaceable possession :
1. Any inconvenience caused by public works projects in or about the Premises; and
2. Any other entries by the City on the Premises reserved or authorized under other
provisions of this Lease.
G. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that
the City shall not be construed or held to be a partner or joint venture of Lessee in the conduct of
the Lessee's activities or business on the Premises . The relationship between the City and the
Lessee is , and shall at all times remain , strictly that oflandlord and tenant, respectively.
H. DISCRIMINATION: The Lessee will not discriminate on the grounds of race, color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant for
employment, or other person or group of persons in any manner prohibited by federal or state
law. The Lessee recognizes the right of the City to take any action necessary to enforce this
provision, including actions r equired pursuant to any federal or state law.
I. AFFIRMATIVE ACTION: If required by 14 CFR Part 152, subpart E, the Lessee will
undertake an affirmative action program to insure that no person w ill be excluded from
participating in any employment activities offered by the Lessee on the grounds of race, creed,
color, national origin, or sex. No person may be excluded on these grounds from participating in
or receiving the services or benefits of any program or activity covered by subpart E. The Lessee
further agrees that it will require its sub -organization(s) prov ide assurance to the City to the same
effect that they will also undertake affirmative action programs and require assurances from their
sub-organization(s) as required by 14 CFR, Part 152, subpart E.
Tenant shall use the premises in compliance with all other requirements imposed by or
pursuant to Title 49, code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part
21, Nondiscrimination in Federally-Assisted programs of the Department of Transportation-
Effectuation of Title VI of the Civil Rights Act of 1964, and as the Regulation may be amended.
J. INTEGRATION, MERGER, AND MODIFICATION: This Lease sets out all the terms,
conditions , and agreements of the parties and supersedes any previous und erstandings or
agreements regarding the Premises whether oral or written. No modification or amendment of
thi s Lease is effective unless in writing and signed on behalf of the City and the Lessee.
K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend , and enforce
re aso nable rules and regulations governing the Airport, including the Premises. The City shall
not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's rights
under this Lease, on account of the exercise of the City 's authority reserved under this provision.
Furthermore, the Lessee shall not be entitled to terminate the whole or any portion of the
leasehold estate created under this Lease, by re ason of th e exercise of the Ci ty's authority
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reserved under this provision , unless the exercise thereof so interferes with Lessee's use and
occupancy of the Premises as to constitute a termination, in whole or in part, of this Lease b y
operation of law under the laws of the State of Alaska and of the United States made applicable
to the states.
L. LESSEE'S OBLIGATION TO PREVENT AND REMOVE LIENS: Lessee will not
permit any liens including, but not limited to, mechanics', lab orers', or materialmen's liens
obtainable or available under the then existing laws, to stand against the Premises or
improvements on the Premises for any labor or material furnished to Lessee or claimed to have
been furnished to Lessee or to the Lessee's agents, contractors, or sub-lessees, in connection with
work of any character performed or claimed to have been performed on the Premises or
improvements by or at the direction or sufferance of Lessee. Provided , however, the Lessee shall
have the right to provide a bond as contemplated by Alaska law and contest the validity or
amount of any such lien or claimed lien . Upon a final determination of the lien or claim for lien,
the Lessee will immediately pay any judgment rendered with all proper costs and charges and
shall have such lien released or judgment satisfied at Lessee's own expense.
M. CONDEMNATION: In the event the Premises or any part thereof shall be condemned
and taken for a public or a quasi-public use, then upon payment of any award or compensation
arising from the condemnation or taking, the City and the Lessee shall make a good faith effort
to agree upon
I . the division of the proceeds ;
2. the abatement in rent payable during the term or any extension of the term of this
Lease; and
3. other adjustments as the parties may agree upon as being just and equitable under
a ll the circumstances.
If, within thirty (30) days after the award has been paid into Court, the City and Lessee are
unable to agree upon what division , abatement in rent, and other adjustments as are just and
equitable, the dispute shall be determined by arbitration.
N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the
benefit of the respective successors and assi gns of the parties hereto , subject to such specific
limitations on assignment as are provided for in this Lease.
0. NOTICES :
I. Any notices required by this Lease must be in writing and must be delivered
personally or mailed by certified or registered mail in a prepaid envelope. A
mailed notice
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a. must be addressed to the respective party at the address written on the first
page of this Lease or to the latest address designated in accordance with
(2) of this Provision (O); and
b. shall be deemed delivered on the date it is deposited in a U.S. general or
branch post office.
2. The City or the Lessee may, from time to time, designate a new address at which
they will receive notices by providing the other party with written notice at least
15 days prior to the effective date of the change. An address change notice must
be delivered according to the procedure set out in (1) of this Provision (0).
P. RETENTION OF RENTAL: In the event the City termina.tes this Lease because of any
breach by the Lessee, the City shall retain any unused balance of the rental payment last made by
the Lessee City as partial or total liquidated damages for the breach.
Q. FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent, and
take all necessary action to suppress destructive or uncontrolled fires and comply with all laws ,
regulations, and rules promulgated and enforced by the City for fire protection on the Airport.
R . PERSONAL USE OF MATERIALS: No interest in coal , oil, gas or any other mineral ,
or in any depo si t of stone or gravel valuable for extraction or utili zation is included in the
Premises or in the rights granted by this lease. The Lessee shall not sell or remove from the
Premises for use elsewhere any timber, stone, gravel , peat moss , topsoil or any other material
va luable for building or commercial purposes.
S. APPROVAL OF OTHER AUTHORITIES: The granting of thi s lease by the City does
not relieve the Lessee of the responsibility to obtain any license or permit as may be required by
federal , state, or local law.
T. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the
Lessee, or a dul y authorized representative of Lessee, and an authorized representative of the
City.
U. CAPTIONS: The captions of the provisions of this Lease are for convenience only and
do not neces sari ly define , limit, describe, or construe the contents of any provision.
V. RIGHTS OF CONSTRUCTION: This Lease is intended to make public property
avai lable for private use, w hil e at all times protecting the public in terest to the greatest extent
possible. Following the rule that transfers of interest in public property are to be strictl y
construed in favor of the public property landlord , all rights granted to the Lesse e under this
Lease will be strictl y construed , and all rights of the City and the protections of the public
interest will be liberall y construed.
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W. LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee has read
this Lease and fully understands its terms, that the Lessee has been fully advised or has had the
opportunity of advice by separate legal counsel, and voluntarily executes this Lease. Lessee al so
acknowledges and agrees that the rule of interpretation under which a document is construed
against the drafter will not apply to this Lease.
X. APPROVAL BY CITY: Any approval required of the City by this Lease will not be
unreasonably withheld . The City's approval does not waive the Lessee's legal responsibility or
liability to comply with all applicable federal and state Jaws and regulations.
ARTICLE XIV
SURVEY, IMPROVEMENTS AND PERFORMANCE BOND
A . SURVEY: The Lessee is sol ely responsible, at its sole expense, to confirm or establish
the physical location of the boundaries of the Premises prior to beginning any construction
thereon, including clearing grubbing, back-filling and environmental sampling. Any survey of
the Premises shall be performed by a Land Surveyor registered in th e State of Alaska. The
Lessee shall furnish the City w ith a copy of the plat of any survey performed on the Premises by,
or on behalf of, the Lessee.
B. IMPROVEMENTS.
1. REQUIRED IMPROVEMENTS: At no cost to the C ity, Lessee agrees to
complete land development and construction of Penn anent Improvements including N I A ,
by no later than N I A, with an appraised value of at least $NI A. In addition to the as-built
drawings required by this Lease, the Lessee must submit to the City written evidence that
the Lessee has completed the land development and constru cted improvements on the
Premises with an aggregate cost or investment of not less than $N I A.
The evidence of cost must be s ubmitted to the City within sixty (60) days of the
completion of the development and improvements, but by no later than N I A.
a. Costs considered t oward the aggregate cost of permanent improvements
include building construction, design, labor, materials, materials shipping,
permits, equipment, soil testing, environmental baseline report, and
environmental assessment directly related to the construction; premises
and as-built surveys; site preparation, including excavation, geotextile
fabric , filling, grading, fill material , gravel , and pavement, remediation of
environmental contamination (unless Lessee caused or materially
contributed to th e contamination); and utility connection costs.
b . The cost of Permanent Improvements excludes
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(i) work performed by the City and not reimbursed by the Lessee; and
(ii) work performed by the Lessee and reimbursed by the City.
2. FAILURE TO COMPLETE IMPROVEMENTS: If the Lessee fails to complete
the required construction within the tim e allowed under (B)(l ) of this Article, including
any extensions granted, the City will execute against and the Lessee will forfeit, any
bond or other guarantee given by the Lessee and, as applicable, City will
a. initiate cancellation of the Lease; or
b. reduce the term of the Lease to a period that is consistent with the portion
of the required construction timely completed.
3. APPEARANCE: When completed, all improvements on the Premises must be
neat, presentable, and compatible w ith the authorized use of the Premises under th i s
Lease, as determined b y the City.
4 . CITY APPROVAL REQUIRED: The Lessee must fir st obtain the City's written
approval before beginning any land development, construction or demolition of any
improv ements on the Premises, or before beginning any alterations, modifications, or
ren ovation of existing structures on the Premises. The Lessee must submit to the City
detailed drawings of the proposed development, alteration, modification, or renovation.
Further, the Lessee will submit to City evidence of the Lessee's compliance w ith the
FAA regulation 14 CFR Part 77.
5. CITY APPROVAL WITHHELD: The C it y's approval of any construction,
alteration, modification, or r enovation w ill n ot be withheld unless:
a. the Lessee fails t o demonstrate adequate financial resources to co mplete
the project;
b. th e project plans, speci ficati ons, and agency approvals are incomplete;
c. th e proposed project would result in a violation of an app li cable ordinance,
regulati on, or law;
d. the proposed project would interfere with or is incompatible with the
safety, security, maintenance, or operation of the airport;
e. the proposed proj ect is inconsi stent with the Airport Master P lan;
f. the proposed project i s inconsistent with the terms of the lease, zoning
ordinances, or the City's Comprehensive Plan;
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g. the project plans do not make sufficient provision for drainage, aircraft,
vehicle, and equipment parking, or for snow storage; or
h. the proposed project does not conform to generally recognized
engineering principles or applicable fire or building codes .
6 . DEMOLITION: Prior to any demolition of any structure(s) on the Premises,
Lessee will deliver to City a written scope of work that, at a minimum, li sts the
structure(s) that are to be demolished and the timeframe for demolition and removal of
the debris from the Airport. City will review Lessee 's scope for demolition and issue
Lessee written approval for the work to be done.
7. BUILDING SETBACK: No building or other permanent structure may be
constructed or placed within twenty (20) feet along the right-of-way of Gra nit e Point
Court and within ten (10) feet of the rear and side yard property lines. This property is not
within the building restriction line so I believe the remainder of the paragraph could be
deleted.
8. AS -B UILT DRAWINGS: Within sixty (60) days after comp leti on of construction
or placement of improvements upon the Premises, the Lessee wil l deliver to the City a
copy of an as-built drawing, acceptable to the City, showing the location and dimensions
of the improvements, giving distances to all Premises' boundaries. If the Lessee
constructs underground improvements, the Lessee will appropriately mark the surface of
the land with adequate surface markers . The type, quantity, and distance between such
markers will be subject to approval of the City.
9 . AIRPORT SECURITY FENCING: If any construction by the Lessee requires a
realignment or alteration of an existing security fence on the Premises or boundary of the
Premises, the Lessee agrees to realign or alter the fence in a manner approved in writing
by the Airport Manager . Anytime the fence must be breached to allow the Lessee to
complete improvement construction or fence modifications, the Lessee shall, at the
Lessee's sole expense place temporary barriers to maintain the security of the Airport, as
determined by the Airport Manager. If damage occurs to a security fence on the Premises
or boundary of the Premises in connection with the Lessee 's use or occupation of the
Premises, the Lessee shall promptly repair the fence to the satisfacti on of the Airport
Manager.
10. DAMAGE TO IMPROVEMENTS: If Lessee's improvements on the Premises
are damaged or destroyed, Lessee will cause the improvements to be repaired or rebuilt
and restored to a normal function within two (2) years following the damage or
destruction. If the Lessee fails to timely rebuild or restore the improvements, the City
may, at its sole discretion , either reduce the term of this Lease commensurate with the
estimated value of the Lessee 's remaining , fully functional improvements on the
Premises, or cancel this Lease. If a structure is non-conforming, the requirements of the
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Kenai Zoning Code apply (see e.g., KMC 14.20.0SO(d). If there is any conflict between
this Lease and the Kenai Zoning Code with respect to repairs or reconstruction of non-
conforming structures, the requirements of the Code shall prevail.
11. DAMAGE NEAR EXPIRATION: If Lessee's improvements are damaged to the
+/-extent that more than 50% of the space is unusable and the damage occurs within five
years of the expiration of the term of this Lease, Lessee may remove the damaged
improvements, restore the Premises and terminate this Lease.
C . PERFORMANCE BOND: Prior to beginning the construction of permanent
improvements required under (B)(l) of this Article, the Lessee shall submit to the City a
performance bond, deposit, or other security in the amount of $N / A. The form of the bond or
other security shall be subject to the City's approval.
D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the te1m of this
Lease or upon any earlier termination of this Lease, surrender and deliver upon the premises into
the possession and use of City without fraud or delay in good order, condition , and repair, except
for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal,
free and clear of all lettings and occupancies unless expressly permitted by the City in writing,
and free and clear of all liens and encumbrances other than those created by and for loan s to
City. Upon the end of the tenn of this Lease, including any extension or renew al, or any earlier
termination thereof, title to the buildings, improvements and building equipment shall
automatically vest in City without requirement of any deed , conveyance, or bill of sale thereon.
However, if City should require any such document in confirmation hereof, Lessee shall execute,
acknowl edge, and deliver the same and shall pay any charge, tax, and fee asserted or imposed by
any and all governmental units in connection herewith.
E. NOTICE OF CONSTRUCTION: The Lessee agrees to notify the City in writing three
days prior to commencing any construction project valued in excess of $1 ,000 on the Premises.
The Lessee agrees to assist in the posting of a notice of non-responsibility and maintenance of
the notice on the Premises during constructi on. Lessee agrees that in the event the Lessee fails to
notify the City as required by this Provision, the Lessee shall indemnify the City against any
materialmen's liens as defined in AS 34.35.050 which arise as a result of construction on the
premises .
ARTICLE XV
SPECIAL PROVISIONS
A. CITY CONSTRUCTED IMPROVEMENTS.
1. ALTERNATIVE ONE -The City commits to con struct improvements after the
lease is signed.
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(a) As part of th e exchange of consideration of this lease, the City will, at the
City's expense, cause the following improvements to be constructed on or
in connection with the Premises: N I A
(b) The City 's total cost of the improvement construction shall not exceed
$NIA without the Lessee 's written concurrence.
(c) The Lessee shall reimburse the City for the City's cost of constru cting the
improvements. The reimbursement shall be made in ten (10) equal annual
payments, plus interest at eight percent (8%) per year on the unpaid
balance. The Less ee may pay the entire remaining balan ce to the City
earli er than due.
(d) After completing the improvements, the City will give the Lessee written
notice of the City's total cost of constructing the improvements and the
date on which the Lessee 's reimbursement payments shall begin, which
date shall be no earlier than 60 days after the date of the C ity 's notice .
The Lessee's annual re im bursement payment for each succeeding year
s hall be made to the City by no later than the anniversary of date o n which
th e first payment was due.
(e) Failure b y th e Lessee to timel y reimburse the C ity as required under (b)
through (d) of thi s provision sha ll b e grounds for termination of this Le ase
by the City.
2. ALTER NATIVE TWO -The City builds improvements before the Lease is
signed.
(a) The Lessee acknowledges that prior to the execution of thi s Lease ; the
City co n structed the following improvements on or in connection with the
Premises: N I A
(b) The C ity 's total cost to construct the improvements was $NI A.
(c) As part of the consideration of this lease, the Lessee shall reimburse the
City for the City's cost of constructing the improvem ents . T he
reimbursement shall be m ade in ten (10) equal annual payments, plus
interest at ei ght percent (8%) per year on th e unpaid bal ance. The Lessee
m ay pay the entire rem aining balance to the City earlier th an due.
(d) The Lessee shall make the first reimbursement payment to th e Cit y by no
later than the first anni versary of the le ase term beg inning date g iven in
At1 icl e III of thi s Lease. The Lessee's annua l r eimbursem ent payment for
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each succeeding year shall be made to the City by no later than the
anni versary of date on which the first payment was due.
(e) Failure by the Lessee to timely reimburse the City as required under (c)
and ( d) of thi s provision shall be ground s for termination of thi s Lease by
the City.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands , the day and year
stated in the individual acknowledgments below.
LESSEE: LESSOR :
DeWayne Benton City of Kenai
By:~~~~~~~~~~~~-By:~~~~~~~~~~~~~~~~
DeWayne Benton Date Paul Ostrander Date
Its: City Man ager
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ACKNOWLEDGMENTS
SJ'ATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2017, Paul Ostrander, City
Manager of th e City of Kenai , Alaska, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and acknowledged th e voluntary and
authorized execution of the foregoing instrument on behalf of said City.
Notary Public for Ala ska
My Commission Expires: ----
ST A TE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2017. DeWayne Benton,
being personally known to me or having produced satisfactory evidence of identification,
appeared before me and acknowledged the voluntary and authorized execution of the foregoing
instrument.
ATTEST:
Jamie Heinz, Acting City Clerk
Approved as to Lease Form:
~·
Scott Bloom, City Attorney
After Recording, Return To:
City of Kenai
2 10 Fidalgo Ave.
Kenai , AK 99611
LEASE OF AIRPORT LANDS
Notary Public for A laska
My Commission Expires: ___ _
SEAL:
Page 33of33
Page 78 of 120
F OR CITY USE ONLY
RECEiVE )
CITY ci= 1-\: :·~Ar Date _______ _
Af.iR 2 1 LU17
PLA NNING D EPART MENT
CITY OF KENAI
210 Fidalgo Avenue, Kenai , Alaska 99611-7794
(907) 283-7535 Ext. 223
LEASE APPLICATION
For Land Inside the Kenai Municipal Airport Reserve
Signature ------
'_,) 1.../
1. Name of Applicant _,_J -",1..--1(~· ___.(._.., _-'__,<._,~..__,l_,1'""""1,'""'t~{,...-...:.../--=-_;"--f-'-·. -'-"+l --'--=-0__;_~ _< _____________ _
. \ I
2 . Business Name -I -.!..Jl-.L....-!.-------------------------------
3 . Business Type (circle one) sole proprietor partnership corporation L.L.C . 4. AK Business License No. _____ _
5 . Mailing Address £ 0 J3 o j; ~!/ (e . /)'_f_Jj_g l 'fJ /< 9_3_£.t_( / "
6 . Telephone 9 0? ··,f 9£-lfs>y 7 . Email Adless 09... <-..J)"'-i "' < b;:&"" 4 G.'o/a.bM, ~~
8. Kenai Peninsula Borough Sales Tax No. (if applicable)----------------------
9. Land Requested:
If platted, give legal descripiion_-=--.J,,.<...' _.__~__.._,_,_&.......;:;...........,,~_.1..__,a"-.,..-'e'--•A_c;;;;..."_t'_'..;,~-¥-L-......... =<--=-'--'-~~---1 1
If not platted, attach a site plan showing !roposed dllnensions and location on the Aj'Port. I l , f / (} °'"'
1 O. Proposed Use of the Property (Be specific) ,t!J1 .b b i S ? Io ,O /:: o ,-r.J , r I /ti ft es
----------------------11 . Lease Term Desired ___ ? ____ y ears
12 . If you plan to base or service aircraft on the property, give
a. Make, type, & wingspan of the largest aircraft at S $ r1 <!, I 5)) +o C'rr !: '1 4 :io C<
b. Total number of aircraft you expect to be based or serviced on the property a t one time ~3.-<.._ _____ _
13 . If you plan to construct improvements or otherwise dev elop the property:
a. Attach a Development Plan (see attached checklist)
b. Describe the building type, construction materials, size, etc. ,_Jo t:q?c?-Z::"'f~cJ .-.,p« _ _:c-~,~71"='
c . Construction beginning date---------
d . Construction completion date (maximum of two years) _______ _
e . Estimated total cost of the proposed dev elopment & improvements $ ____________ _
14. If you plan to operate a business on the property, attach a business plan (See application instructions).
15. If you would like the City to consider any additional information relating to your proposal, please put it in writing and
submit it with this application. _ 1
APPUC~~:: :!~~Q ;,SJE1;;'~ ~ Date: ------
Title : Qw11 ( ·-
T itle : ----------
Page 79 of 120
I
)
6
5 (5)~
1
t
\
1
Lot 3, Block 4, GENERAL
AVIATION APRO N
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N W+E
s
125 '
i------=i
1 inch equa ls 125 feet
The information depicted h ere
on is for graphi c representatio n
only of t he best available so urces .
Th e City of Kenai assumes no
respons ibility fo r errors on t his
map.
Date: 5/9/2017 Page 80 of 120
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2017-46
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING AN
AGREEMENT TO PENINSULA PUMPING, INC. FOR PROVIDING AND SERVICING
PORTABLE RESTROOMS AND DUMPSTERS ON THE NORTH AND SOUTH KENAI
BEACHES, INCLUDING PORTABLE RESTROOMS AT THE CITY DOCK, DURING THE 2017
PERSONAL USE FISHERY.
WHEREAS, THE City advertised and the following bid was received on June 27, 2017;
Bidder Schedule A (Portable Restrooms Schedule B (North Beach -
& Beach Dumpsters) Road Accessible Dumpsters)
Peninsula Pumping, Inc. $98,955.89
and ,
WHEREAS , Peninsula Pumping, Inc. was the only responsive bidder; and ,
WHEREAS, the recommendation from City Administration is to award an Agreement to Peninsula
Pumping, Inc. for $98 ,955.89; and,
WHEREAS, services include mobilization and demobilization, daily servicing and provisions for
additional servicing on the North and South Kenai beaches , Kenai Little League Parking lot and
City Dock, as needed; and ,
WHEREAS, sufficient monies are appropriated .
NOW, THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the Agreement for the project entitled "Dipnet Dumpsters and Portable Toilets
2017" be awarded to Peninsula Pumping, Inc. for the total approximate cost of $98,955.89:
Section 3. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, th is fifth day of July, 2017.
BRIAN GABRIEL SR., MAYOR
ATIEST:
Page 81 of 120
Resolution No. 2017-*
Page 2of2
City Clerk
Page 82 of 120
1V/ff~ «1/t/i a PaJ'~ Ct'tj «1/t/i a Fu.tfl.l"e"
210 Fidalgo Ave , Kenai , Alaska 99611-7794
Telephone : (907) 283-7535 I Fax: (907) 283-3014
www.kenai .city
MEMORANDUM
TO:
THROUGH~
FROM: ,~
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager ?.c.::>-
Robert J. Frates , Parks & Recreation Director
June 27, 2017
Resolutions No. 2017-46 & No. 2017-47 -Dipnet Dumpsters and
Portable Toilets 2017
Purpose of this memorandum is to recommend awarding an Agreement to Peninsula Pumping,
Inc. and to Alaska Waste -Kenai Division LLC for portable restrooms and dumpster service
during the 2017 Personal Use Fishery.
The City advertised for bids through the Anchorage Daily News, Peninsula Clarion and the City
of Kenai website . The following bids were opened on June 27, 2017:
Bidder Schedule A (Portable Schedule B (North Beach
Restrooms & Beach Dumpsters) Location -Road Accessible
Dumpsters)
Peninsula Pumping , Inc. $98 ,955 .89
Alaska Waste -Kenai $2 ,747 .25
Division LLC
The scope of work (Schedule A -Resolution No. 2017-46) includes mobilization and
demobilization, daily servicing and provisions for additional servicing of the dumpsters and
portable restrooms on the North and South Kenai beaches, including portable restrooms at the
Kenai City Dock.
The scope of work (Schedule B -Resolut ion No. 2017-47 ) includes mobilization and
demobilization , daily servic ing and provisions for additional servicing of the road accessible
dumpsters at the end of South Spruce Street, Kenai Little League Parking Lot and at the Kenai
City Dock .
Peninsula Pumping , Inc. did not subm it a bid for Schedule B due to a Non-Competition
Agreement between both entities . Moreover, Alaska Waste -Kenai Division LLC is the only
Page 83 of 120
Page 2 of 3
Subject
service provider in the Kenai/Soldotna area with the ability to provide front-end dumpster
services. There are sufficient funds appropriated in the Parks , Recreation & Beautification and
Boating Facility Personal Use Fishery accounts .
Thank you for your consideration.
Page 84 of 120
tlre eityo/,
KENAI~ "V
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 201 7-4 7
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING AN
AGREEMENT TO KENAI DIVISION LLC FOR PROVIDING AND SERVICING ROAD
ACCESSIBLE DUMPSTERS AT THE END OF SOUTH SPRUCE STREET , KENAI LITTLE
LEAGUE PARKING LOT AND KENAI CITY DOCK DURING THE 2017 PERSONAL USE
FISHERY.
WHEREAS , THE Ci ty advertised and the following bids were received on June 2 7, 2017;
Bidder Schedule A (Portable Restrooms Schedule B (North Beach -
& Beach Dumpsters} Road Accessible Dumpsters)
Alaska Waste -Kenai $2,747 .25
Division LLC
and,
WHEREAS , Alaska Waste -Kenai Division LLC was the only responsive bidder; and,
WHEREAS , the recommendation from City Administration is to award an Agreement to Alaska
Waste -Kenai Division LLC for $2,747.25; and ,
WHEREAS, services include mobilization and demobilization, da ily servicing and provisions for
additional servicing of road accessible dumpsters located at the end of South Spruce Street,
Kenai Little League Parking lot and the Kenai City Dock ; and ,
WHEREAS , suffic ient monies are appropriated.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA:
Section 1. That the Agreement for the project entitled "Dipnet Dumpsters and Portable Toilets
2017" be awarded to Alaska Waste -Kena i Divis ion LLC for the tota l approximate cost of
$2,747.25 respective ly:
Section 3. That this reso lution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this fifth day of July, 2017.
BRIAN GABRIEL SR , MAYOR
ATTEST:
Page 85 of 120
Resolution No. 2017-*
Page 2of2
City Clerk
Page 86 of 120
"V/fltije «1/th, a Pa~~ Ct'tf «1/t/i a Fu.tu.re"
210 Fidalgo Ave , Kenai , Alaska 99611-7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www.kenai .city
MEMORANDUM
TO:
THROUGH~
FROM: '\!:91
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager ?.c..:::r
Robert J. Frates , Parks & Recreation Director
June 27, 2017
Resolutions No. 2017-46 & No. 2017-47 -Dipnet Dumpsters and
Portable Toilet s 2017
Purpose of this memorandum is to recommend awarding an Agreement to Peninsula Pumping,
Inc. and to Alaska Waste -Kenai Division LLC for portable restrooms and dumpster service
during the 2017 Personal Use Fishery.
The City advertised for bids through the Anchorage Daily News, Peninsula Clarion and the City
of Kenai website . The following bids were opened on June 27, 2017:
Bidder Schedule A (Portable Schedule B (North Beach
Restrooms & Beach Dumpsters) Location -Road Accessible
Dumpsters)
Peninsula Pumping , Inc. $98 ,955 .89
Alaska Waste -Kenai $2,747.25
Division LLC
The scope of work (Schedule A-Resolution No. 2017-46) includes mobilization and
demobilization, daily servicing and provisions for additional servicing of the dumpsters and
portable restrooms on the North and South Kenai beaches , including portable restrooms at the
Kenai City Dock.
The scope of work (Schedule B-Resolution No . 2017-47) includes mobilization and
demobilization, daily servicing and provisions for additional servicing of the road accessible
dumpsters at the end of South Spruce Street, Kenai Litt le League Parking Lot and at the Kenai
City Dock.
Peninsula Pumping , Inc. did not submit a bid for Schedule B due to a Non -Competition
Agreement between both entities. Moreover, Alaska Waste -Kenai Division LLC is the only
Page 87 of 120
Page 2 of 3
Subject
service provider in the Kenai /Soldotna area with the ability to provide front-end dumpster
services. There are sufficient funds appropriated in the Parks, Recreation & Beautification and
Boating Facility Personal Use Fishery accounts.
Thank you for your consideration.
Page 88 of 120
KENAI CITY COUNCIL – REGULAR MEETING
JUNE 21, 2017 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
MAYOR BRIAN GABRIEL, PRESIDING
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on June 21, 2017, in City Hall Council
Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at 6:00 p.m.
1. Pledge of Allegiance
Mayor Gabriel led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Brian Gabriel, Mayor Robert Molloy
Henry Knackstedt Tim Navarre
Jim Glendening Glenese Pettey
Mike Boyle
A quorum was present.
Also in attendance were:
Paul Ostrander, City Manager
Scott Bloom, City Attorney
Jamie Heinz, Acting City Clerk
Mayor Gabriel took a moment to review a list of accomplishments of former City Manager, Rick
Koch, who passed away on Sunday, June 18, 2017.
MOTION:
Council Member Navarre MOVED to direct Administration to work with the family and the City
donate a plaque and a tree in Leif Hansen Memorial Park in Mr. Koch’s honor and the motion was
SECONDED by Council Member Glendening.
VOTE:
YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre
NAY:
MOTION PASSED UNANIMOUSLY.
3. Agenda Approval
Page 89 of 120
City of Kenai Council Meeting Page 2 of 13
June 21, 2017
Mayor Gabriel noted the following additions to the packet:
Add to Item 4. Consent Agenda
• Memo from Finance Director
Add to Item D. 4. Ordinance No. 2968-2017
• Correspondence from B. McIntosh
MOTION:
Council Member Molloy MOVED to approve the agenda with the requested additions to the packet
and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
4. Consent Agenda
MOTION:
Council Member Navarre MOVED to approve the consent agenda with the removal of Purchase
Orders exceeding $15,000 and requested UNANIMOUS CONSENT. Council Member Molloy
SECONDED the motion.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, the public
hearing was closed.
VOTE: There being no objections, SO ORDERED.
*All items listed with an asterisk (*) are considered to be routine and non-controversial
by the council and will be approved by one motion. There will be no separate
discussion of these items unless a council member so requests, in which case the item
will be removed from the consent agenda and considered in its normal sequence on
the agenda as part of the General Orders.
B. SCHEDULED PUBLIC COMMENTS
1. Bob Frates, Parks and Recreation Director - Introduction of the Winners of the 2017
Pathway of Poetry Project Sponsored by the Friends of the Kenai Community Library
and the Kenai Parks and Recreation Department.
Parks and Recreation Director, Bob Frates, introduced the winners of the Pathways of Poetry
Project, provided an example of a sign, and how the poem was accessed via smartphone.
2. Dan Castimore, IT Manager – Introduction and Demo of the City Dipnet App.
IT Manager Dan Castimore provided a demonstration of the City’s new Dipnet App noting features
for advertisers and public safety.
C. UNSCHEDULED PUBLIC COMMENTS
Page 90 of 120
City of Kenai Council Meeting Page 3 of 13
June 21, 2017
Donald Normady asked that the City consider opportunities to make the dipnet fishery more
accessible to those with disabilities; offered to work with officials on development of a plan.
Michael Christian encouraged moving forward with the expansion of the cemetery.
D. PUBLIC HEARINGS
1. Ordinance No. 2965-017 – Amending Kenai Municipal Code 4.32.015 – Local
Amendments to the 2012 International Residential Code, to Facilitate Fee Schedule
Changes for Building Permits and Plan Reviews.
MOTION:
Council Member Knackstedt MOVED to enact Ordinance No. 2965-2017 and the motion was
SECONDED by Council Member Glendening.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE:
YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre
NAY:
MOTION PASSED UNANIMOUSLY.
2. Ordinance No. 2966-2017 – Increasing General Fund Estimated Revenues and
Appropriations for Costs in Excess of Budgeted Amounts.
MOTION:
Council Member Navarre MOVED to enact Ordinance No. 2966-2017 and the motion was
SECONDED by Council Member Knackstedt.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE:
YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre
NAY:
MOTION PASSED UNANIMOUSLY.
3. Ordinance No. 2967-2017 – Appropriating Transfers for FY2018 Budgeted Capital
Projects in the Public Safety Capital Project Fund, the Kenai Animal Shelter
Improvements Capital Project Fund, the Municipal Roadway Improvements Capital
Project Fund, the City Shop Improvements Capital Project Fund, and the Cemetery
Improvements Capital Project Fund.
MOTION:
Page 91 of 120
City of Kenai Council Meeting Page 4 of 13
June 21, 2017
Council Member Molloy MOVED to enact Ordinance No. 2967-2017 and the motion was
SECONDED by Council Member Knackstedt.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
It was pointed out that, included in the Capital Projects, was an appropriation for cemetery
expansion.
VOTE:
YEA: Knackstedt, Gabriel, Molloy, Boyle, Glendening, Pettey, Navarre
NAY:
MOTION PASSED UNANIMOUSLY.
4. Ordinance No. 2968-2017 – Appropriating General Fund Balance Funds into General
Fund Land Administration-Lands Fund for the Purchase by the City of Kenai’s General
Fund of Airport Property Outside the Airport Reserve Constituting Approximately 16.49
Acres of Real Property Described as S1/2 S1/2 SW1/4, Section 33,T6N, R11W,
Seward Meridian, Commonly Referred to as ‘Lawton Acres’ and Deed Restricting the
Future Use Of the Property to Parks and Recreational Uses to be Retained by the City
for a Public Purpose.
MOTION:
Council Member Boyle MOVED to enact Ordinance No. 2968-2017. The motion was
SECONDED by Council Member Molloy.
Mayor Gabriel opened the public hearing.
Dan Sterchi spoke in opposition of the ordinance noting the buffer shouldn’t be paid for by the
taxpayers and that for the size of the city, there were plenty of parks.
Richard Aber spoke in favor of the ordinance noting referendums had been in favor of retention
of the property.
Greg Daniels spoke in favor of the ordinance suggesting that the property was valuable to the
community; pointed out that appraisal was done with the property zoned as conservation and the
Broker’s opinion of value was provided as if the property was commercial.
Mike Christian spoke in favor of the ordinance noting the referendum vote was more about
preserving access to a conservation look. Suggested there was no discussion of appraisal when
Dr. Sorhus put his offer in and questioned why the City was paying premium price when the
monies were transferring from one fund to another.
Roy Wells spoke in favor of the ordinance expressing a willingness to compromise; noted the
ordinance was about dedicating the property for parks and recreation; also noted the FAA had
put stipulations on the property. He suggested there was room for compromise.
Page 92 of 120
City of Kenai Council Meeting Page 5 of 13
June 21, 2017
Dave Thompson spoke in favor of the ordinance; pointed out another dentist had wanted to
purchase property on the other side of the highway but was blocked; suggested the property could
be transferred and future councils could decide.
Barb Christian spoke in favor of the ordinance noting a portion of the property was unusable due
to pollution and other features of the property.
Mary Whitely pointed out that there had been no environmental studies done on the property but
past fire trainings caused soil contamination with fire retardants; suggested an assessment be
completed.
Kelly Kelso pointed out the large piece of residential property across the highway that another
dentist was wanting to purchase became a much larger project than had been expressed to the
local residents.
There being no one else wishing to be heard, public comment was closed.
Clarification was provided regarding how the airport enterprise fund benefited from the sale of the
property, when the funds could be utilized, and the City’s responsibility that income realized from
the property was to be used for airport operation and maintenance.
Specific information regarding what appraisals had been ordered and how the parcels were being
appraised was provided. It was pointed out that an appraisal was done prior to any sale.
It was noted that the intent of the ordinance was to comply with the deed of release; investment
policies provided for maintenance and operation of the airport.
It was pointed out that the Council had been in the process of obtaining answers to the questions
to ensure the decision was as informed as possible.
MOTION TO POSTPONE:
Council Member Knackstedt MOVED to postpone Ordinance 2968-2017 to refer the matter to the
Airport Commission to provide a review and recommendation to Council on the sale of Lawton
Acres at the Airport Commission’s July 13, 2017 meeting, allowing for further Council
consideration of the Ordinance along with the Airport Commission’s recommendation at Council’s
July 5, 2017 meeting and the motion was SECONDED by Council Member Navarre.
MOTION TO AMEND :
Council Member Molloy MOVED to amend by providing for a second public hearing on July 5 and
removing the referral to the Airport Commission’s July 13 meeting. The motion was SECONDED
by Council Member Boyle.
MOTION TO DIVIDE THE QUESTION:
Page 93 of 120
City of Kenai Council Meeting Page 6 of 13
June 21, 2017
Council Member Boyle MOVED to divide the question considering the opportunity for a second
public hearing on July 5 first and the removal of the referral to the Airport Commission’s July 13
meeting second and the motion was SECONDED by Council Member Molloy.
VOTE TO DIVIDE THE QUESTION:
YEA: Knackstedt, Gabriel, Glendening, Pettey, Navarre, Molloy, Boyle
NAY:
MOTION PASSED UNANIMOUSLY.
UNANIMOUS CONSENT was requested on the first component.
VOTE ON THE FIRST COMPONENT: There being no objection; SO ORDERED.
VOTE ON THE SECOND COMPONENT:
YEA: Molloy, Boyle
NAY: Knackstedt, Gabriel, Glendening, Pettey, Navarre
MOTION FAILED .
UNANIMOUS CONSENT was requested on the amended postponement motion.
VOTE ON POSTPONEMENT: There being no objection; SO ORDERED.
It was pointed out that public notice mailings had been provided to the neighborhood keeping
them apprised of the ongoing meetings regarding Lawton Acres and asked to resume sending
public notice as provided for in code as the neighborhood had a grasp of the ongoing meetings.
MOTION:
Council Member Navarre MOVED to send notifications as code prescribed for public notification
moving forward and Council Member Pettey SECONDED the motion.
VOTE:
YEA: Knackstedt, Gabriel, Glendening, Pettey, Navarre
NAY: Molloy, Boyle
MOTION PASSED.
5. Resolution No. 2017-31 – Amending its Comprehensive Schedule of Rates, Charges,
and Fees to Incorporate Changes to Library Fees, as Recommended by the Library
Director.
MOTION:
Page 94 of 120
City of Kenai Council Meeting Page 7 of 13
June 21, 2017
Council Member Navarre MOVED to approve Resolution No. 2017-31 and requested
UNANIMOUS CONSENT. The motion was SECONDED by Council Member Molloy.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE: There was no objection; SO ORDERED.
6. Resolution No. 2017-32 – Amending its Comprehensive Schedule of Rates, Charges,
and Fees to Incorporate Changes to the Water Service Fee Schedule.
MOTION:
Council Member Navarre MOVED to approve Resolution No. 2017-32 and requested
UNANIMOUS CONSENT. The motion was SECONDED by Council Member Glendening.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE: There was no objection; SO ORDERED.
7. Resolution No. 2017-33 – Amending its Comprehensive Schedule of Rates, Charges,
and Fees to Incorporate Changes to the Planning & Zoning Fees, as Recommended
by the City Planner.
MOTION:
Council Member Molloy MOVED to approve Resolution No. 2017-33 and requested UNANIMOUS
CONSENT. The motion was SECONDED by Council Member Knackstedt.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE: There was no objection; SO ORDERED.
8. Resolution No. 2017-34 – Amending its Comprehensive Schedule of Rates, Charges,
and Fees to Incorporate Changes to the City’s Dock Fees.
MOTION:
Council Member Knackstedt MOVED to approve Resolution No. 2017-34 and requested
UNANIMOUS CONSENT. The motion was SECONDED by Council Member Glendening.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE: There was no objection; SO ORDERED.
Page 95 of 120
City of Kenai Council Meeting Page 8 of 13
June 21, 2017
9. Resolution No. 2017-35 – Amending its Comprehensive Schedule of Rates, Charges,
and Fees to Incorporate Changes to the City’s Animal Control Fees, as Recommended
by the Chief Animal Control Officer.
MOTION:
Council Member Navarre MOVED to approve Resolution No. 2017-35 and requested
UNANIMOUS CONSENT. The motion was SECONDED by Council Member Glendening.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE: There was no objection; SO ORDERED.
10. Resolution No. 2017-36 – Amending its Comprehensive Schedule of Rates, Charges,
and Fees to Incorporate Changes to the City’s Building Permit Fees.
MOTION:
Council Member Molloy MOVED to approve Resolution No. 2017-36 and requested UNANIMOUS
CONSENT. The motion was SECONDED by Council Member Glendening.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
Clarification was provided on how the valuation of construction was obtained and how the fees
were being increased incrementally.
VOTE: There was no objection; SO ORDERED.
11. Resolution No. 2017-37 – Amending its Comprehensive Schedule of Rates, Charges,
and Fees to Eliminate Fees for Private Detective Agencies, as Recommended by the
Police Chief.
MOTION:
Council Member Navarre MOVED to approve Resolution No. 2017-37 and the motion was
SECONDED by Council Member Knackstedt who requested UNANIMOUS CONSENT.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE: There was no objection; SO ORDERED.
12. Resolution No. 2017-38 – Amending its Comprehensive Schedule of Rates, Charges,
and Fees To Incorporate Changes To The Fees Of The Kenai Municipal Airport, As
Recommended By The Airport Manager.
MOTION:
Page 96 of 120
City of Kenai Council Meeting Page 9 of 13
June 21, 2017
Council Member Knackstedt MOVED to approve Resolution No. 2017-38 and requested
UNANIMOUS CONSENT. The motion was SECONDED by Council Member Molloy.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE: There was no objection; SO ORDERED.
13. Resolution No. 2017-39 – Stating its Conditional Protest Regarding the Issuance Of
A New Limited Marijuana Cultivation Facility, Marijuana License No. 12303, for
Peninsula Botanicals, LLC, DBA Peninsula Botanicals, Located at 1030 Angler Drive
Unit B, Kenai AK, 99611 and Authorizing the City Clerk to take Certain Action.
MOTION:
Council Member Knackstedt MOVED to approve Resolution No. 2017-39 and the motion was
SECONDED by Council Member Glendening. UNANIMOUS CONSENT was requested.
Mayor Gabriel opened the public hearing.
Aaron Langlois noted the applicant was moving forward with the Encroachment Permit and had
no objection to the conditional protest.
There being no one else wishing to be heard, public comment was closed.
VOTE: There was no objection; SO ORDERED.
14. Resolution No. 2017-40 – Authorizing a Budget Transfer within Other Buildings &
Areas Department of the Airport Fund for a Professional Services Agreement to
Review the Airport’s Land Lease and Land Sales Policies.
MOTION:
Council Member Knackstedt MOVED to approve Resolution No. 2017-40 and the motion was
SECONDED by Council Member Navarre who requested UNANIMOUS CONSENT.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
Administration noted an internal working group was developing a methodology and developing
appropriate fees and the contractor would be reviewing the work of the staff.
VOTE: There was no objection; SO ORDERED.
15. Resolution No. 2017-41 - Consenting to an Assignment of Lease of Certain Airport
Lands Between Sidney Morris and Schilling Rentals (2016), LLC and Consenting to
an Amendment Changing the Annual Lease Rate from Ten Percent to Eight Percent
of the Existing Lease on Real Property Described as Lot 1A, Block 1, Deshka
Subdivision.
MOTION:
Page 97 of 120
City of Kenai Council Meeting Page 10 of 13
June 21, 2017
Council Member Knackstedt MOVED to approve Resolution No. 2017-41 and the motion was
SECONDED by Council Member Glendening. UNANIMOUS CONSENT was requested.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
Clarification was provided regarding the change in the lease rate.
VOTE: There was no objection; SO ORDERED.
E. MINUTES
1.*Regular Meeting of June 7, 2017
Meeting minutes approved by the consent agenda.
F. UNFINISHED BUSINESS – None.
G. NEW BUSINESS
1. *Action/Approval – Bills to be Ratified.
Approved by the consent agenda.
2. *Action/Approval – Purchase Orders Exceeding $15,000.
[Clerk’s Note: This item was removed from the Consent Agenda during approval of the Consent
Agenda.]
MOTION:
Council Member Glendening MOVED to approve Purchase Orders exceeding $15,000 and
Council Member Molloy SECONDED the motion.
Explanation was provided regarding the additional work needed to complete the Reservoir
Recoating Project.
MOTION TO AMEND :
Council Member Glendening MOVED to amend the Purchase Order to Kenai Chamber of
Commerce and Visitor Center from $125,000 to $62,500 based on the expiration date of
December 31, 2017. Council Member Navarre SECONDED the motion and requested
UNANIMOUS CONSENT.
VOTE ON THE AMENDMENT: There was no objection; SO ORDERED.
UNANIMOUS CONSENT was requested on the main motion.
VOTE ON THE MAIN MOTION: There was no objection; SO ORDERED.
Page 98 of 120
City of Kenai Council Meeting Page 11 of 13
June 21, 2017
3. *Ordinance No. 2969-2017 – Amending Kenai Municipal Code Title 24 – Municipal
Cemetery, to Update Procedures for Development of Cemetery Regulations and
Opening and Closing of Graves, and to Provide Regulations in the Cemetery
Regulations Appendix for Columbarium Niches, Marker or Headstone Deposits, and
Other Housekeeping Changes.
Introduced by the consent agenda and public hearing set for July 5, 2017.
4. *Ordinance No. 2970-2017 – Increasing Fiscal Year 2017, General Fund, Airport
Fund, Water & Sewer Fund, Personal Use Fishery Fund, and Congregate Housing
Fund Estimated Revenues And Appropriations For The Transfer Of Funds To
Establish The New Employee Health Care Internal Service Fund Which Shall Be
Utilized For Administering Employee Health Care Beginning In Fiscal Year 2018, July
1, 2017.
Introduced by the consent agenda and public hearing set for July 5, 2017.
5. Action/Approval – Approving Travel Expenses for MacSwain Consulting Relating to
Appraisal of Lawton Acres.
MOTION:
Council Member Navarre MOVED to approve travel expenses for MacSwain Consulting relating
to the appraisal of Lawton Acres and requested UNANIMOUS CONSENT. The motion was
SECONDED by Council Member Molloy.
VOTE: There being no objection; SO ORDERED.
6. Action/Approval – Special Use Permit to Reddi Towing for an Impound Lot.
MOTION:
Council Member Knackstedt MOVED to approve a Special Use Permit to Reddi Towing for an
Impound Lot and requested UNANIMOUS CONSENT. The motion was SECONDED by Council
Member Molloy who.
VOTE: There being no objection; SO ORDERED.
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging – No report; Next meeting July 13.
2. Airport Commission – It was reported that at their meeting on June 8 the Commission
discussed the Master Plan Update, T-33 Aircraft Maintenance, Benton lease,
Landscaping Site Plan draft ordinance, and approved a Special Use Permit for Pacific
Star Seafoods for a fish haul; next meeting July 13.
3. Harbor Commission – Commission Liaison G. Pettey noted she was saddened by the
loss of Commission Member Koch; Next meeting July 10.
Page 99 of 120
City of Kenai Council Meeting Page 12 of 13
June 21, 2017
4. Parks and Recreation Commission – No report; next meeting August 3.
5. Planning and Zoning Commission – It was reported that on June 14, the Commission
approved a Preliminary Plat, a Conditional Use Permit, and recommended approval of
a lease renewal at the airport; next meeting June 28.
6. Beautification Committee – No report; next meeting September 12.
7. Mini-Grant Steering Committee – No report.
I. REPORT OF THE MAYOR
Mayor Gabriel reported on the following:
• Attended the Kenai Peninsula Air Fair – great participation;
• Reminded of the Fourth of July festivities – encouraged attendance.
J. ADMINISTRATION REPORTS
1. City Manager – P. Ostrander reported on the following:
• Attended a staff meeting in preparation of the dipnet fishery;
• Met with the Chamber of Commerce regarding the Eagle Cam &
Dipnet App;
• Reported the Parks & Recreation department received a
community service award from the Chamber of Commerce;
• Reported the closing of the Dragseth property had been pushed to
mid-July due to the property appraisal;
• Reported the Kenai River Bluffs Bank Stabilization Project had been
published for public comment.
2. City Attorney – No Report.
3. City Clerk – Acting City Clerk, J. Heinz, reported the City’s Laserfiche vendor had
provided a staff training on the Laserfiche software and training was ongoing with the
Granicus software vendor to get PEAK agenda management and eComment up and
running.
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
Council Member Molloy extended heartfelt condolences to Alex Koch and his extended family.
Council Member Knackstedt reported he had participated in the Kenai Peninsula Air Fair and
extended condolences to friends and family of Rich Koch.
Council Member Boyle echoed condolences to Rick Koch’s family.
Page 100 of 120
City of Kenai Council Meeting Page 13 of 13
June 21, 2017
Council Member Glendening reported he had attended the Kenai Peninsula Air Fair – enjoyed
helping barbeque with Rick Kock noting he would be missed.
Vice Mayor Navarre congratulated the Parks and Recreation Department for their Community
Service Award; appreciated the Pathway of Poetry project as one of a number of opportunities for
citizens to participate in their community; noted he was proud to have known Rick Koch as he
continued to participate in the City after his retirement.
L. EXECUTIVE SESSION
1. Review and Discussion of Interview Questions, Interview Dates, and Applications
Submitted for the City Clerk Position. [AS 44.62.310(C)(2)(3) a Subject that Tends to
Prejudice the Reputation and Character of an Applicant and Matters which by Law,
Municipal Charter, or Ordinance are Required to be Confidential.]
MOTION:
Council Member Molloy MOVED to convene in executive session to discuss interview questions,
interview dates, and applications submitted for the City Clerk position, a subject that tends to
prejudice the reputation and character of an applicant and matters which law, municipal charter,
or ordinance are required to be confidential per AS 44.62.310(C)(2)(3) and requested the
attendance of the City Attorney, City Manager and the motion was SECONDED by Council
Member Navarre.
VOTE:
YEA: Gabriel, Glendening, Knackstedt, Navarre, Pettey, Molloy, Boyle
NAY:
MOTION PASSED UNANIMOUSLY.
Council reconvened in regular session and noted they began their review of candidates, interview
questions, and interview dates for the City Clerk position and would meet in Executive Session
on July 5 to continue discussion of the same.
M. PENDING ITEMS – None.
N. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 10:10 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of June 21,
2017.
_____________________________
Jamie Heinz, CMC
Acting City Clerk
Page 101 of 120
PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION
COUNCIL MEETING OF: JULY 5, 2017
VENDOR DESCRIPTION
PERS PERS
INVESTMENTS
VENDOR DESCRIPTION
DEPARTMENT ACCOUNT AMOUNT
VARIOUS LIABILITY 87 ,230.66
MATURITY DATE AMOUNT Effect.Int
Page 102 of 120
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: City Clerk
CITY OF KENAI
ORDINANCE NO. 2971-2017
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI
MUNICIPAL CODE SECTION 1.15.060 - MOTIONS, TO PROVIDE FOR DEFERRING A
MOTION OR AGENDA ITEM BEYOND THE NEXT MEETING.
WHEREAS, Kenai Municipal Code 1.15.120- Rules of Order, provides that Robert’s Rules of
Order Newly Revised, 11th Edition, governs unless superseded by City Charter or ordinance; and,
WHEREAS, according to Robert’s Rules of Order, based on the City’s meeting schedule, a
motion, “to postpone to a certain time,” limits the timeframe for postponement to the end of the
next meeting; and,
WHEREAS, making available a special rule of order to provide for deferring a motion or agenda
item beyond the next meeting is in the best interest of the City to provide for additional public
process in such cases where the Council seeks input from a Committee, Commission, or the
Council on Aging or other situations as they arise.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. Form: That this is a code ordinance.
Section 2. Amendment of Section 01.15.060 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 01.15.060 – Motions, is hereby amended as follows:
(a) A motion to amend an amendment shall be in order, but a motion to amend an
amendment to an amendment shall not be entertained.
(b) No appeal from any decision of the presiding officer shall be entertained unless it is
seconded, and no other business shall be in order until the question on appeal has been
decided. The question on appeal is not debatable and shall be put as follows: “Shall the
decision of the Chair stand as the judgment of the Council?” It shall be deemed to be
decided in the affirmative unless a majority of the votes given are to the contrary.
(c) Any member may make a parliamentary inquiry of the Chairman at any time during
the meeting.
(d) Any member may make a point of order without a second at any time. The presiding
officer may speak to points of order in preference to other members, and shall decide all
such questions, subject to appeal to the Council by motion duly seconded; and no other
business shall be in order until the question on appeal has been decided.
(e) When the previous question is moved by any member, all debate on the main
question shall be suspended immediately and the presiding officer shall put the question to
Page 103 of 120
Ordinance No. 2971-2017
Page 2 of 3
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
the following form: “The previous question is moved on (specifying the motion on which the
previous question is demanded). As many as are in favor of ordering the previous question
will so indicate.” If four (4) members vote affirmatively, the affirmative has it, the previous
question is ordered, and the Chairman will proceed immediately to put to a vote the
question on which the previous question was ordered. If less than four (4) members so
indicate, the negative has it, the motion is lost, and the question reverts to the immediately
pending question, which is again open to debate and amendment as if the previous
question has not been demanded.
(f) The presiding officer shall put all questions in the order in which they are moved
unless a subsequent motion shall be previous in its nature, except in naming sums and
fixing times, the largest sum and the longest time shall be put first.
(g) When a vote has been taken, any member who voted on the prevailing side may
move a reconsideration thereof at the same meeting or at the next succeeding meeting
whenever motions are in order, provided that the subject matter has not passed out of the
control of the Council.
(h) A motion to reconsider requires four (4) votes; if such motion thus prevails, the
subject shall be open to debate and amendment in the same manner as the original
question. Debate on motions to reconsider shall be limited to twenty-five (25) minutes, and
no member shall speak more than five (5) minutes. No motion shall be reconsidered more
than once.
(i) A motion must be reduced to writing if the presiding officer so requires or any member
so demands, and no other motion shall be entertained until reasonable time (not over ten
(10) minutes) if afforded for compliance with this rule.
(j) Any previous vote may be rescinded by vote of four (4) members of the Council at any
time, provided the subject matter has not passed out of the control of the Council.
(k) All motions shall require a second, unless otherwise provided.
(l) Any member may require the division of a question when the sense of it will admit.
(m) When a question is under debate, the presiding officer shall receive any of the
following motions but no other:
(1) To adjourn;
(2) To recess;
(3) To raise a question of privilege;
(4) To call for the order of the day, or the regular order;
(5) To lay on the table;
(6) For the previous question;
(7) To limit or extend limits of debate;
(8) To postpone to a certain time;
(9) To refer;
(10) To postpone indefinitely.
Page 104 of 120
Ordinance No. 2971-2017
Page 3 of 3
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
(n) When one of the above motions has been made, none of the others inferior to it in the
order in which they stand above shall be made; and in proceeding to vote, motions pending
shall be put in the order of their rank as above arranged. The first seven (7) are not subject
to debate. A motion to postpone to a certain time, refer, amend, or to postpone indefinitely
may be amended; the previous question may be demanded before an amendment, which
motion shall be decided without debate. A motion to adjourn shall always be in other
provided that business of a nature to be recorded in the journal has been transacted since
any previous motion to adjourn has been defeated. No motion or proposition of a subject
different to that under consideration shall be admitted under color of an amendment. When
a matter has been especially assigned to be taken up at a fixed time, or at a certain stage
of proceedings, such matter shall, at the appointed time, or at any time subsequent thereto,
be in order upon the call of any member, and take precedence over all of the business.
(o) After a motion is stated or read by the presiding officer, it shall be deemed to be in the
possession of the Council, and shall be disposed of by vote, but the mover may withdraw it
at any time before decision or amendment, by consent of the second.
(p) The motion “to postpone to a certain time” is the motion by which action on a pending
question or agenda item can be deferred beyond the next meeting to a definite day,
meeting or hour, or until after a certain event.
Section 3. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
30 days after adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of August, 2017.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, Acting City Clerk
Introduced: July 5, 2017
Enacted: August 2, 2017
Effective: September 3, 2017
Page 105 of 120
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH:
FROM: Jamie Heinz, Acting City Clerk
DATE: June 30, 2017
SUBJECT: Ordinance No. 2971-2017 – Postponing to Time Certain
The City of Kenai uses Robert’s Rules of Order which prescribes certain rules for certain motions
unless superceded by local regulation. According to Robert’s Rules of Order, based on the City’s
meeting schedule, a motion, “to postpone to a certain time,” limits the timeframe for
postponement to the end of the next meeting. From time to time, situations arise in which the
ability to defer a motion beyond the next meeting would be beneficial to Council and public
process. Referring an item to a Committee, Commission, or Council on Aging to seek additional
input when their meeting falls after the next City Council meeting is a good example of when this
type of deferment would be beneficial. The amendment to Kenai Municipal Code, as presented
in Ordinance No. 2971-2017 would provide for the deferment of a motion beyond the end of the
next meeting.
Your consideration is appreciated
Page 106 of 120
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 2972-2017
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROPRIATING
FUNDS IN THE AIRPORT FUND, ACCEPTING A GRANT FROM THE FEDERAL AVIATION
ADMINISTRATION AND APPROPRIATING FUNDS IN THE AIRPORT EQUIPMENT CAPITAL
PROJECT FUND FOR THE PURCHASE OF SNOW REMOVAL EQUIPMENT (SRE)-LOADER
WITH ATTACHMENTS AND A MULTI-PURPOSE BROOM.
WHEREAS, the 1993 966 CAT loader is inoperable and requires excessive and costly repairs;
and,
WHEREAS, the multipurpose broom replaces the oldest SRE (1992 broom) on the Airport which
consistently requires expensive maintenance repairs ; and ,
WHEREAS , new upgraded and reliable equipment will improve the Airport's capability to
effectively address snow and ice conditions ensuring safe aircraft operations with dependable
equ ipment; and,
WHEREAS , SRE is FAA eligible and grant funds are available and the City has been awarded a
grant totaling $ 1,088, 759 comprised of 93 . 75% FAA $ 1,020, 712 and requiring a 6.25% local
share of$ 68,047; and,
WHEREAS, the State of Alaska Department of Transportation, awarded a competitive bid for
equipment that meets our specifications ; and,
WHEREAS , KMC 7.15.070 (b) (4) allows for supplies , materials, equipment or contractual
services purchasable under the contract of another governmental agency in which contract the
City is authorized to participate.
WHEREAS , the Federal Aviation Administration has approved the procurement process utilizing
State of Alaska Cooperative Fleet Purchasing Agreement.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA,
as follows:
Section 1. Form: That this is a non-code ordinance.
Section 2. That the City Manager is authorized to accept grant funding in the amount of
$1 ,020,712 from the Federal Aviation Administration and to execute a grant agreement and to
expend grant funds to fulfill the purpose and intent of this ordinance.
New T ext U nd erlin ed ; [DELETED TEXT BRACKETED] Page 107 of 120
Ordinance No. 2972-2017
Page 2 of 2
Section 3 . That the estimated revenues and appropriations be increased as follows:
Airport Fund :
Increase Estimated Revenues -
Appropriation of Fund Balance
Increase Appropriations:
$68.047
Transfer to Airport Equipment Capital Project Fund $68.047
Section 4. That the estimated revenues and appropriations be increased as follows:
Airport Equipment Capital Project Fund:
Increase Estimated Revenues:
FAA Grant
Transfer from Airport Fund
Increase Appropriations:
Machinery & Equipment
$1,020,712
68,047
$1.088 ,759
$1 .088.759
Section 5 . That the City Manager is authorized to execute a purchase order to Yukon
Equipment for$ 693,447 for a OSHKOSH H-Series multi-purpose broom and a purchase order
'to NC Machinery for$ 373,964 for a Caterpillar 966M Wheel Loader uti lizing the State of Alaska
Fleet Purchasing Agreement.
Section 5. Severability : That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any co urt of competent jurisdiction , such
judgment shall be confined in its operation to the part, provision , or application directly involved
in all controversy in which this judgment shall have been rendered , and shall not affect or impair
the validity of the remainder of thi s title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision , or application.
Section 6. Effec ti ve Date: That pursuant to KMC 1.15.070 (f), this ordinance shall take effect
upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 2nd day of August, 2017.
ATTEST:
Jamie Heinz, Acting City Clerk
Approved by Finance ~
BRIAN GABRIEL SR., MAYOR
Introduced: July 5, 2017
Enacied :Augu~2.2017
Effective: August 2, 2017
New Text Underlined; [DELETED TEXT BRACKETED) Page 108 of 120
'Vttl'~ «1/th a Pa.s'~ e~ «1/th a Fu.tal"e JJ
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Te lephone: (907) 283-7535 I Fax : (907) 283-3014
www.kenai.city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Coun ii
Paul Ostrander, City Manager2
Mary L. Bondurant -Airport Manag
June 27, 2017
Ordinance 2972-2017 -FAA Grant for Snow Removal Equipment
The FY17 Airport Capital Improvement Plan (ACIP) identified the replacement of snow removal
equipment (SRE) and the FAA received clearance from the Office of the Secretary of
Transportation (OST) to move forward with the grant process on June 26, 2017.
A grant application was sent to the FAA on June 26, 2017, totaling $1,088,759 for a new loader
and multi-purpose broom. The SRE cost of $1,088 , 759 will be paid with 93. 75% FAA funding
of $1,020, 712 and a 6.25% local share of$ 68,047. A grant offer is anticipated prior to the
August 2 , 2017 Council meeting .
The multi-purpose broom replaces the oldest piece of SRE (1992 broom) that consistently
requires extensive and costly repairs and the loader replaces a broke-down 1993 loader that is
24 years old and repairs are not cost effective. This SRE is crucial to the airport's capability to
perform snow and ice control with dependable equipment to ensure safe aircraft operations.
Due to the cancellation of the second Council meeting in July, this ordinance is being
introduced at the July 5th meeting, to be adopted at the August 2, 2017 meeting to expedite the
ordering of the equipment for delivery this winter.
If you have any questions , please contact me.
Attachment:
Page 109 of 120
'Vtlf~ «1/t~ a Pa<f~ Ct'tj «11't~ a Fu.tfl.l"e ''
210 F idalgo Ave , Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www. kenai. city
MEMORANDUM
TO :
THROUG~
FROM:'~
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager"V,o .
Robert J . Frates, Parks & Recreation Director
June 28, 2017
Special Use Permit • Outdoor Zumba Classes
The purpose of this memorandum is to request Kenai City Council approval of a Special Use
Permit (SUP) to Jennifer Ellis (Permittee) for purposes of conducting outdoor Zumba classes.
The use is lim ited to the purpose of conducting classes on Fridays from 8:00 a.m. to 12:00
p.m ., located at the Softball Greenstrip (400 Main St. Loop).
I am excited about this new opportunity and thank you for your consideration .
Page 110 of 120
SPECIAL USE PERMIT 2017
The CITY OF KENAI (City), for the consideration, and pursuant to the conditions set out
below, hereby grants the right to use the Premises, identified on Attachment A to this Permit,
to Jennifer Ellis (Permittee):
1. Use/Term. Permittee shall have use of the Premises on the following days for the
purposes of conducting Zumba Classes from 8 :00 a.m. to 12:00 p .m., every Friday
during the calendar year 2017.
2. Fee. Fee for use of the Premises shall be $15.00 plus sales tax per day used.
3. No Exclusivity. The use by the Permittee of the Premises is limited to the purposes
specified herein and is not intended to grant any exclusive use to the described
Premises except as otherwise provided herein. This use is also subject to City,
Borough, and State laws and regulations and the reasonable administrative actions of
the City for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities.
4. Sales Tax Compliance. Permittee shall obtain a signed Certificate of Tax
Compliance from the Kenai Peninsula Borough and submit a copy to the City prior to
execution of this Special Use Permit. Permittee agrees to collect and remit all
applicable City and Borough sales taxes.
5. Improvements. Permittee shall not make any permanent improvements to the
Premises.
6. Preparation of Premises. It is Permittee 's responsibility to prepare the Premises and
to assure itself to its own satisfaction that the Premises are safe for its purposes. The
City does not make any warranty or guaranty of the suitability of the Premises for
Permittee's intended purposes.
7. Restrooms. The City will provide access to the public restrooms which currently
exist on the Premises.
8. Trash and Debris. The Premises must be returned to its original condition at the end
of each use. Clean up and/or repair charges beyond normal wear and tear will be
billed to Permittee based upon cost of repair. Debris and trash shall be collected and
removed from the Premises by Permittee . Permittee shall alert City (Parks and
Recreation Department) of unsightly, unsanitary, dirty or other conditions on the
Premises which exist prior to Permittee's use.
Special Use Permit -Zumba Classes with J. Ellis Page I of 5
Page 111 of 120
9. No Alcohol or Illegal Substances. No possession or consumption of alcoholic
beverages, marijuana or illegal substances is permitted on the Premises .
10. No Joint Venture. The City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises.
11. Personalty. Any or all personal property placed or used upon lands or in facilities
may be removed and/or impounded by the City, and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the
payment to the City of the costs of removal plus storage charges of $25 per day. The
City of Kenai is not responsible for any damage to or theft of any personalty of
Permittee or its invitees to the Premises.
12. Assumption of Risk. Pennittee assumes full control and sole responsibility as
between Permittee and City for the activities of Pennittee, its personnel , employees,
and persons acting on behalf of or under the authority of the Permittee anywhere on
the Premises . Permittee shall provide all proper safeguards and shall assume all risks
incurred in its activities on the Premises and its exerci se of the privileges granted in
this Permit.
13. No Waiver. Failure to insist upon a strict compliance with the terms , conditions, and
requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms , conditions , or
requirements.
14. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Pennittee. Where specific limits are stated, the limits are
the minimum acceptable limits. If Permittee 's insurance policy contains higher
limits, City is entitled to coverage to the extent of the higher limits.
A. Commercial General Liability Insurance, including Premises, all operations ,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
name the City as an additional insured.
B. Worker's Compensation Insurance with coverage for all employees engaged
in work under this Permit or at the Premises as required by AS 23.30.045. Permittee
is further responsible to provide Worker's Compensation Insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
Special Use Permit -Zumba Classes with J. Ellis Page 2of5
Page 112 of 120
C. All insurance required must meet the following additional requirements:
I. All policies will be by a company/corporation currently rated "A-" or
better by A.M . Best.
IL Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies , certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
ni. Permittee shall request a waiver of subrogation against City from
Permittee's insurer and the waiver of subrogation, where possible, shall
be provided at no cost to City.
iv. Provide the City with notification at least thirty (30) days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City prior to any
use .
City may increase the amount or revise the type of required insurance on written
demand without requiring amendments to this Permit. City will base any increase or
revision on reasonable and justifiable grounds . Within two weeks of the written
demand, Permittee shall submit to City evidence of insurance coverage that meets the
requirements of the City.
15. No Discrimination. Permittee will not discriminate on the grounds of race , color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant
for employment, or other person or group of persons in any manner prohibited by
federal or State law. Permittee recognizes the right of the City to take any action
necessary to enforce this requirement.
16. Contact Information. The Contact information for the Permittee, and the person in
responsible charge for Permittee during the term of the Permit, for purposes of notice
and all communications from City to Permittee is :
Special Use Permit -Zumba Classes with J. Ellis Page 3of5
Page 113 of 120
Jennifer Ellis
17. Indemnity, Defend, and Hold Harmless Agreement: Permittee agrees to fully
indemnify, defend , and hold harmless, the City of Kenai, its officers, agents ,
employees, and volunteers from and against all actions , damages, costs , liability,
claims, losses, judgments, penalties, and expenses of every type and description,
including any fees and/or costs reasonably incurred by the City's staff attorneys and
outside attorneys and any fees and expen ses incurred in enforcing this
provision (hereafter collectively referred to as "Liabilities"), to which any or all of
them may be subjected, to the extent such Liabilities are caused by or result from any
negligent act or omission or willful misconduct of the Permittee in connection with
or arising from or out of Permittee's activities on or use of the Premises. This shall be
a continuing obligation and shall remain in effect after termination of this Permit.
18. Authority. By signing this Permit, Perrnittee represents that it has read this
agreement and it agrees to be bound by the terms and conditions herein and that the
person signing this Permit is duly authorized by the organization to bind the
organization hereunder.
CITY OF KENAI
By: ____________ _
Paul Ostrander
City Manager
Date
JENNIFER ELLIS
PERMITTEE
Special Use Permit -Zumba Classes with J. Ellis
Date
Page 4of5
Page 114 of 120
ACKNOWLEDGMENTS
STA TE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2017, the foregoing
instrument was acknowledged before me by Paul Ostrander, City Manager of the City of
Kenai, Alaska, an Alaska home rule municipality, on behalf of the City.
Notary Public for Alaska
My Commission Expires: _______ _
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of ___ , 2017 , the foregoing
instrument was acknowledged before me by Jennifer Ellis.
Notary Public for Alaska
My Commission Expires: _______ _
ATTEST:
Jamie Heinz, Acting City Clerk
SEAL:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
Y :\Parks & Recreati on\SUP\20 17 062 1 Zum ba-Elli s SUP Permit.docx
Special Use Permit-Zumba Classes with J. Ellis Page 5 of 5
Page 115 of 120
'Vtff °le «1/t/i a Pa~~ Ct'tt «1/t/i a ratfl/'e "
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www.kenai .city
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager VD .
June 30, 2017
Extension to Agreement for Facility Management Services at the Kenai
Recreational Center
The Agreement for Facility Management Services at the Kenai Recreational Center with the
Boys and Girls Club of the Kenai Peninsula is due to expire on June 30, 2017 and there are no
options for extension left in the Agreement.
Through this action I approval item , administration is requesting authorization to enter a month
to month extension of the Agreement (attached). All other terms and conditions of the
Agreement remain in full force and effect. This will allow adminstration the time to issue a
request for proposals to competitively award and enter a new mulit-year contract.
Page 116 of 120
EXTENSION
TO AGREEMENT FOR FACILITY MANAGEMENT SERVICES AT THE
KENAI RECREATIONAL CENTER FACILITY
The City of Kenai (Owner), an Alaska Home Rule Municipal Corporation, whose address
is 210 Fidalgo Avenue, Kenai, AK 99611-7794, and Boys and Girls Club of the Kenai
Peninsula, Inc. (Contractor), hereby extend the Agreement for Facility Management
Services at the Kenai Recreation Center Facility (Ag reement), located at 227 Caviar Street
in Kenai, Alaska made July 12, 2012 as follows:
1. The Agreement shall continue month to month beginning July 1, 2017.
2. Except as expressly modified or stated herein, all other terms and conditions of th e
Agreement remain in full force and effect.
CITY OF KENAI
By: __________ _
Paul Ostrander
City Manager
Date
CONTRACTOR
Boys and Girls Club of Kenai
By: _________ _
Heather Schloeman
Executive Director
Date
ACKNOWLEDGMENTS
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 201 7, the foregoing
instrument was acknowledged before me by Paul Ostrander, City Manager of the City of
Kenai , Alaska, an Alaska home rule municipality, on behalf of the City .
Notary Public for Alaska
My Commi ss ion Expires: ____ _
Extension to Agreement for Facility Management Services Page 1 of2
Page 117 of 120
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this __ day of ____ _
2017 , by Heather Schloeman, Executive Director of Boys and Girls Club of the Kenai
Peninsula, Inc ., an Alaska non-profit corporation, on behalf of the corporation.
Notary Public for Alaska
My Commission Expires: _____ _
ATTE ST:
City Clerk
SEAL:
APPROVED AS TO FORM:
Scott M . Bloom, City Attorney
FUNDS VERIFIED BY FINANCE :
Terry Eubank, Finance Director
Y :\Parks & R ecreation\Ag reeme nts\2017 0621 Boys & Girls C lub Ex t.docx
Extension to A greement for Facility Management Services Page 2 of2
Page 118 of 120
PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW
COUNCIL MEETING OF: JULY 5, 2017
VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT
EDOCSALASKA MISC. SOFTWARE SERVICES CLERK PROFESSIONAL SERVICES 9,550.00
MCDOWELL GROUP TASKS 1, 2 & 3 AIRPORT PROFESSIONAL SERVICES 8 ,700.00
CROWLEY PETROLEUM FLOAT PLANE FUEL AIRPORT OPERATING SUPPLIES 4,000.00
LARSON ENGINEERING UPDATE SPILL PREVENTION PLAN DOCK PROFESSIONAL SERVICES 3,970.00
"'
Page 119 of 120
KENAITZE
INDIAN
TRIBE
x < ""
-
c,\-tC..RKS 01:";::-.
/~
Received
June 20, 201 7 JUN 2 R 2017
To our partners and s upporters;
On behalf of our members, employees and those we serve, please accept a
warm chiqinik, thank you, for your continued support of the Kenaitze
Indian Tribe. I am writing to share that the Tribal Council accepted the
resignation of Jaylene Peterson-Nyren as Executive Director of the Tribe
effective June 16.
During her tenure, Jaylene accomplished many things for the betterment
of the health and wellness of our Tribal community. One of the most
nptable accomplishments was the successful construction and funding
package for the Dena 'ina Wellness Center as set forth in the Tribe 's
strategic plan. Over the years, Jaylene built on what we now refer to as the
Dene ' Philosophy of Care whereby our many programs and services
operate in partnership and integration with each other. We appreciate
Jaylene's efforts and support her in her future endeavors
The Tribal Council has already reviewed and made recommendations
regarding the current Executive Director job description and is underway
with recruitment to fill the pos ition. DeeDee Fowler, Director of
Operations, will work with the Tribal Council and leadership team to
ensure a smooth transition in the interim. DeeDee was promoted to
Director of Operations in February 2016 after serving in the roles of
Controller and Director of Finance. She joined the Tribal organization in
2008.
Although we will miss Jaylene, we are excited about the future as we
continue to work toward the Tribe's miss ion: To assure that Kahtnuht'ana
Dena'ina thrive forever. Again, on behalf of the entire T ribe, chiqinik for
your support of our people and programs. We look fo1ward to maintaining
and building on our partnership .
Please d o n 't he sitate to contact me should you have any questions.
Sincerely,
Jennifer Showalter Yeoman
Tribal Council Chairperson
Page 120 of 120
JULY 5, 2017
CITY COUNCIL MEETING
ADDITIONAL MATERIAL/REVISIONS
REQUESTED REVISIONS TO THE AGENDA/PACKET:
ACTION ITEM REQUESTED BY
Add to Item D.1. Ordinance No. 2968-2017
• Correspondence from M. Whiteley Acting City Clerk
• Appraisal Report from MacSwain Assoc. City Manager
Remove Item G.2. Purchase Orders Exceeding $15,000.00 Acting City Clerk
MacSwain Associates LLC
4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503
APPRAISAL REPORT
Appraisal of Three Properties in Lawton Acres, Kenai, Alaska
Property 1: 16.49-Acre Parcel (Property ID 045-01-003)
Property 2: 4.10-Acre Parcel (Proposed Tract D)
Property 3: 5.80-Acre Parcel (Proposed Tracts A & B)
Effective Appraisal Date: June 15, 2017 File No. 17-3078
Submitted To:
Scott M. Bloom, City Attorney
City of Kenai
210 Fidalgo Avenue
Kenai, AK 99611
N
Property 1
16.49± Acres
(red boundary)
Property 3
5.80± Acres Kenai Spur Highway
Lawton Drive
Lawton Drive
Rogers Road
Property 2
4.10± Acres
Proposed Tracts A&B Proposed Tract C Proposed
Tract D
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
4401 Business Park Blvd., Suite 22
Anchorage, Alaska 99503
Phone: 907-561-1965
Fax: 907-561-1955
s.macswain@macswain.com
June 30, 2017
Scott M. Bloom, City Attorney
City of Kenai
210 Fidalgo Avenue
Kenai, AK 99611
Re: Appraisal of Three Properties in Lawton Acres
Kenai, Alaska
Dear Mr. Bloom:
We have prepared an Appraisal Report that analyzes three properties located in Kenai,
Alaska. Property 1 is a 16.49± acre parcel known as Lawton Acres, which fronts the south
side of the Kenai Spur Highway and the north side of Lawton Drive, between Walker Lane
and Rogers Road. Property 2 is a proposed tract of land (Tract D) situated on the east end
of Lawton Acres, containing 4.10± acres. Property 3 is a proposed tract of land (Tracts A
& B) on the westerly half of Lawton Acres, containing 5.80± acres. Because Properties 2
and 3 are proposed, it is an extraordinary assumption of these appraisals that they will be
subdivided and the plat will be approved by the Kenai Peninsula Borough. We analyzed
each property independently, but present our findings bound in one report. Listed below
are property identification numbers or legal descriptions, sizes, and market value estimates
for each property appraised. The property rights appraised is the fee simple interest. The
report is prepared in accordance with the Uniform Standards of Professional Appraisal
Practice (USPAP).
Based on the data, reasoning, and analysis that follow, we are of the opinion that the
market value of each subject property, as of June 15, 2017, is as follows:
Legal Description Size Market Value
Property 1 – Property ID 045-01-003 16.49± Acres $600,000
Property 2 – Proposed Tract D 4.10± Acres $275,000
Property 3 – Proposed Tracts A & B 5.80± Acres $250,000
We invoke an extraordinary assumption for the appraisals of Property 2 and Property 3,
that they will be subdivided as indicated by the proposed plat, and the plat will be
approved by the Kenai Peninsula Borough. If found to be false, the market value estimates
could be affected.
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
Your attention is specifically directed to the Assumptions and Limiting Conditions and
Extraordinary Assumption of this report. We hope the appraisal report assists your
evaluation of the appraised property. If you have any questions regarding this report,
please contact our office.
Respectfully submitted,
Steve MacSwain, MAI
State of Alaska Certificate No. 42
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
Appraiser Certification
The undersigned certifies that to the best of their knowledge and belief:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are our personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
We have no present or prospective interest in the property that is the subject of this report,
and no personal interest with respect to the parties involved.
We have no bias with respect to the property that is the subject of this report or to the
parties involved with this assignment.
MacSwain Associates, LLC appraised Property 1 as part of a project appraisal for the City
of Kenai in 2015. We have not performed any other services as an appraiser or in any other
capacity, regarding the property that is the subject of this report, within the three-year
period immediately preceding acceptance of this assignment.
Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
Our compensation for completing this assignment is not contingent upon the development
or reporting of a predetermined value or direction in value that favors the cause of the
client, the amount of the value opinion, the attainment of a stipulated result, or the
occurrence of a subsequent event directly related to the intended use of this appraisal.
The reported analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute.
The reported analyses, opinion, and conclusions were developed, and this report has been
prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.
The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives.
Alex Kleinke inspected the appraised properties on June 15, 2017. Steve MacSwain, MAI
is familiar with the property from previous assignments in Kenai.
Alex Kleinke provided significant real property appraisal assistance including
photography, research, data gathering, and analytical support to the person signing this
certification.
As of the date of this report, Steve MacSwain, MAI, is a certified General Real Estate
Appraiser in the State of Alaska and has completed the education requirements through
June 2019.
6/30/17
Steve MacSwain, MAI
State of Alaska Certificate No. 42
Date
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
Table of Contents
Title Page
Transmittal Letter
Appraiser Certification
Table of Contents
Appraisal Summary 1
Chapter 1: Definition of the Appraisal Problem 3
Chapter 2: Location and Neighborhood Summaries 7
Chapter 3: Property 1 – Property ID 045-01-003 10
Property Photographs 13
Highest and Best Use Analysis 16
Property Valuation 18
Chapter 4: Property 2 – Proposed Tract D 23
Property Photographs 26
Highest and Best Use Analysis 28
Property Valuation 30
Chapter 5: Property 3 – Proposed Tracts A & B 35
Property Photographs 38
Highest and Best Use Analysis 40
Property Valuation 42
Assumptions and Limiting Conditions 47
Extraordinary Assumption 48
Addenda
Appraiser Qualifications
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
1
Appraisal Summary
Property 1 – Property ID 045-01-003
Property Type: Vacant land
Property Rights Appraised: Fee simple interest
Physical Address: 10095 Kenai Spur Highway, Kenai, AK
Parcel ID Number: 045-010-03
Legal Description: S½ S½ SW¼, Section 33, Township 006N, Range 011W,
Seward Meridian, Lying South of Kenai Spur Highway
Zoning: C, Conservation
Site Size: 16.49± acres or 718,304± square feet
Shape: Long and narrow
Vegetation: Majority treed with partial clearing for flower field
Wetlands: Riparian wetlands bisect center of property
Highest and Best Use: Subdivision with mixed-use development
Extraordinary Assumption: None
Effective Appraisal Date: June 15, 2017
Market Value Opinion $600,000
Property 2 – Proposed Tract D
Property Type: Vacant land
Property Rights Appraised: Fee simple interest
Physical Address: 10095 Kenai Spur Highway, Kenai, AK
Parcel ID Number: N/A
Legal Description: Proposed Tract D
Zoning: C, Conservation
Site Size: 4.10± acres or 178,596± square feet
Shape: Trapezoidal
Vegetation: Heavily treed with spruce and birch
Wetlands: None
Highest and Best Use: Commercial development in accordance with allowable
conditional uses under current zoning
Extraordinary Assumption: Property will be subdivided as indicated by the proposed
plat, and that the plat will be approved by the Kenai
Peninsula Borough
Effective Appraisal Date: June 15, 2017
Market Value Opinion $275,000
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
2
Property 3 – Proposed Tracts A & B
Property Type: Vacant land
Property Rights Appraised: Fee simple interest
Physical Address: 10095 Kenai Spur Highway, Kenai, AK
Parcel ID Number: N/A
Legal Description: Proposed Tracts A & B
Zoning: C, Conservation
Site Size: 5.80± acres or 252,648± square feet
Shape: Narrow rectangle
Vegetation: Heavily treed with spruce and birch
Wetlands: None
Highest and Best Use: Commercial development in accordance with allowable
conditional uses under current zoning
Extraordinary Assumption: Property will be subdivided as indicated by the proposed
plat, and that the plat will be approved by the Kenai
Peninsula Borough
Effective Appraisal Date: June 15, 2017
Market Value Opinion $250,000
Proposed Plat
Provided By: City of Kenai
N
Kenai Spur Highway
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
3
Chapter 1: Definition of the Appraisal Problem
We prepare an Appraisal Report that analyzes Lawton Acres in Kenai
Alaska. Our assignment values Lawton Acres under two scenarios.
Under the first scenario, we appraise the entire 16.49± acre parcel,
referred to as Property 1. The second scenario considers the proposed
subdivision of Lawton Acres. Under this scenario, we appraise
Proposed Tract D (Property 2) and Proposed Tracts A & B (Property
3). We analyze each property independently, but present our findings
bound in one report. Listed below are chapter and page numbers, and
identification of each parcel appraised. The report is prepared in
accordance with the Uniform Standards of Professional Appraisal
Practice (USPAP).
Chapter Property Page
3 Property 1 – Property ID 045-01-003 10
4 Property 2 – Proposed Tract D 23
5 Property 3 – Proposed Tracts A&B 35
Lawton Acres
Market value
City of Kenai
The intended use of this appraisal report is to assist the client with an
investment decision involving the subject properties.
The intended user of this appraisal report is the City of Kenai.
Overview
Property Name
Value Type
Client
Intended Use of
Appraisal Report
Intended User of
Appraisal Report
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
4
June 15, 2017
June 15, 2017
June 30, 2017
Lawton Acres is situated on the south side of Kenai Spur Highway,
0.8± mile southeast of Kenai’s Municipal Airport.
The type of value estimated is market value. Market value is defined
as follows.
The most probable price, as of a specified date, in cash, or in terms
equivalent to cash, or in other precisely revealed terms, for which the
specified property rights should sell after a reasonable exposure in a
competitive market under all conditions requisite to a fair sale, with
the buyer and seller each acting prudently, knowledgeably, and for
self-interest, and assuming neither is under undue duress.1
The property rights appraised is the fee simple interest, which is
defined as follows.
Absolute ownership unencumbered by any other interest or estate,
subject only to the limitations imposed by the governmental powers of
taxation, eminent domain, police power, and escheat.2
The appraised properties are legally defined in each of their respective
chapters.
1 Appraisal of Real Estate, Fourteenth Edition (2013), by the Appraisal Institute,
p. 58.
2 Appraisal of Real Estate, Fourteenth Edition (2013), by the Appraisal Institute, p.
5.
Property Inspection
Date
Effective Appraisal
Date
Date of Report
Location
Value Type
Property Rights
Appraised
Legal Description
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
5
Public records indicate the owner of the property is the City of Kenai.
The 16.49± acre parcel has been assessed for $478,100 for the past ten
years. This equates to $28,993 per acre or $0.67 per square foot. As
the parcel is owned by the City of Kenai, it is exempt from paying
property taxes.
We employ the sales comparison approach to estimate the market
value of the property, because neither the cost nor the income
capitalization approaches provide meaningful analysis for vacant land
similar to the subject. Additionally, we found sufficient land sale data
to develop our opinion of value. Comparable land sale data was
obtained from private parties, real estate brokers/agents, market
participants, appraisers, and company files. The appraisal report is a
summary of the appraiser’s data, analyses, and conclusions with
supporting documentation retained on file.
The scope of the appraisal is summarized as follows.
Inspected the appraised properties on June 15, 2017;
Discussed the appraised properties with Paul Ostrander, City
Manager, and Scott Bloom, City Attorney with City of Kenai;
Reviewed Kenai Peninsula Borough (KPB) land use ordinance
pertaining to zoning, permitted uses, and conditional uses, and
conditional use permits;
Collected data from the City of Kenai, KPB Assessor’s Office, and
State of Alaska Recorder’s Office regarding ownership,
assessments, and general property information;
Reviewed City of Kenai and KPB mapping and aerial imagery
pertaining to ownership, land use, and wetlands;
Performed a land use analysis;
Determined the highest and best use of each property;
Interviewed real estate agents active in the Kenai market district
regarding sale activity, current market trends, and anticipated
market trends;
Collected and analyzed MLS data and statistics regarding all types
of property sales located in Kenai;
Property Ownership
Real Property
Assessment
Appraisal Report
Overview
Scope of Appraisal
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
6
Collected data pertaining to the dynamics of the real estate market
district;
Collected, verified, and analyzed comparable land sales;
Inspected and photographed the primary sales relied upon in the
comparative analysis; and
Developed the sales comparison approach to arrive at estimates of
market value for each subject property.
MacSwain Associates LLC has completed numerous appraisals of
properties in Kenai and surrounding communities in the Kenai
Peninsula Borough. A summary of the appraiser’s experience and
professional qualifications are located in the addenda. Steve
MacSwain, MAI has the knowledge and experience required by the
competency provision of USPAP to complete this assignment credibly.
We have collected and analyzed market and economic data that
projects real estate trends and activity for commercial and residential
properties. Discussions with Brokers and analysis of similar property
sales indicate that a period of approximately one year prior to our
effective date of value is a reasonable exposure period.
Statement of
Competency
Exposure Time
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
7
Chapter 2: Location and Neighborhood Summaries
Due to the knowledge of the reader, we do not include a detailed
demographic and economic summary of the Kenai Peninsula Borough
(KPB) or City of Kenai. The reader is referred to the map below and
on following pages that illustrate the location and assist in the
description and analysis.
Location Map
Kenai is located on the western coast of the Peninsula, and is often
associated with Soldotna, which is located 11± miles to the southeast.
These two cities have become known as the “twin cities,” sharing an
integrated economy, while maintaining their independence. Kenai is a
home rule city with a population of 7,098. In the summer months, the
area benefits from tourists fishing the Kenai River. Kenai is also the
center for the oil and gas industry on the Peninsula, providing services
and supplies for Cook Inlet’s oil and natural gas drilling and
exploration. Nikiski, which lies north of Kenai, has two refineries that
process oil from the Cook Inlet oil platforms and the Swanson River
oil fields. There are numerous oil field support businesses located in
the area as well as the refineries. Kenai has the largest airport on the
peninsula, the Kenai Municipal Airport, which has scheduled flights
to/from Anchorage and other communities in the region.
Overview
City of Kenai
Summary
Kenai
Cook Inlet
SoldotnKenai River
N
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
8
The subject is located within a mixed-use neighborhood, with
commercial and institutional development to north, east, and west, and
residential development to the south. Development in the immediate
neighborhood includes Kenai Central High School to the east, Home
Depot, Safeway, Three Bears, and Aspen Hotel to the west, Walmart
to the north, and a residential subdivision to the south. The prime
commercial district in Kenai is just to the west of the appraised parcel.
Neighborhood Development
Neighborhood Zoning Map
Neighborhood
Description
N
Safeway
Home Depot
Three Bears
Walmart
Aspen Hotel
Kenai Spur Hwy
Kenai
Central HS
Subjects
N
Subjects
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
9
Sale activity remains relatively scarce with assemblage, expansion, or
special-purpose use representing the principal components of demand.
After analysis, we determined commercial property values have been
relatively stable over the past decade.
Conclusion
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
10
Chapter 3: Property 1 – Property ID 045-01-003
The appraised property is a vacant parcel, which is partially cleared
and planted with a flower field. We summarize the subject property in
a summary format. The inserted exhibits and photographs that follow
help illustrate our descriptive analysis.
KPB Aerial Imagery
Review of public documents indicates the property is legally defined
as follows.
S½ S½ SW¼, Section 33, Township 006N, Range 011W, Seward Meridian,
Lying South of Kenai Spur Highway
Location: South of Kenai Spur Highway between Walker
Lane and Rogers Road, fronting north side of
Lawton Drive, Kenai, Alaska
Physical Address: 10095 Kenai Spur Highway, Kenai, Alaska
Current Use: Primarily vacant with flower garden on portion
of parcel
Property Overview
Legal Description
Identification of Real
Estate Appraised
N
Property 1
Walker Lane
Kenai Spur Highway
Rogers Road
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
11
Fee simple interest
There are no known sales of the property in the past three years.
Analysis of land describes the characteristics that enhance or detract
from its utility or marketability. We base the site description and
analysis our appraisal inspection on June 15, 2017 and review of the
KPB assessor map and other available mapping. The following
assessor map and aerial imagery on the previous page assist in the
description and analysis of the site.
KPB Assessor Map
Parcel Shape
and Land Area:
Long and narrow parcel containing 16.49± acres
(718,304± square feet) per City of Kenai
Vehicular
Access:
Current access via Lawton Drive, paved two-lane
road
Frontage and
Exposure:
2,605± feet on Kenai Spur Highway and Lawton
Drive, 490± feet on Rogers Road, 170± feet on
Walker Lane
Topography: Mostly level with undulation near riparian
wetlands, which bisect property from north to
Property Rights
Appraised
Three-Year Sale
History
Site Description
N
Kenai Spur Highway
Subject
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
12
south near center of property
Vegetation: Primarily treed with partial clearing for flower
field
Public Utilities: All public utilities available to parcel
Zoning: C, Conservation
Easements and
Restrictions:
None noted
Encroachments: None
Flood Hazard
Conditions:
Federal Emergency Management Agency (FEMA)
Community Panel No. 02122C0140E, dated
October 20, 2016, indicates the site is located in
Zone D, an area in which flood hazards are
undetermined, but possible.
Environmental
Considerations:
The appraisers were not provided an
environmental assessment. The existence of any
hazardous material or other type of environmental
contamination, which may or may not be present
on the property, was not observed by the
appraisers nor do the appraisers have any
knowledge of the existence of such substances. A
search of the Department of Environmental
Conservation Contaminated Sites Database
yielded no results. Our value conclusion assumes
that the property is free of environmental and
hazardous contaminants.
Soil and
Subsurface
Conditions:
A soil report was not provided to the appraisers.
The soils are consistent with undeveloped land in
the area and consists of a good gravel base.
Site
Improvements:
Partial clearing for flower field
Site Utility: The parcel benefits from substantial Kenai Spur
Highway frontage, availability of public utilities,
and good gravel based soils
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
13
Property 1 Photographs
Taken By: Alex Kleinke Date: June 15, 2017
Westerly view of subject along south boundary
Westerly view of subject along north boundary
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
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Taken By: Alex Kleinke Date: June 15, 2017
Northerly view taken from Kenai Spur Highway
Easterly view of Lawton Drive frontage
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
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Taken By: Alex Kleinke Date: June 15, 2017
Westerly view of Kenai Spur Highway frontage
Easterly view of Kenai Spur Highway frontage
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
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Highest and Best Use Analysis
Highest and best use is a market-driven concept rather than a
subjective conclusion based on the experience of the appraiser or
property owner’s needs. The Dictionary of Real Estate Appraisal
(Sixth Edition) defines highest and best use as follows.
The reasonably probable use of property that results in the highest
value. The four criteria that the highest and best use must meet are
legal permissibility, physical possibility, financial feasibility, and
maximum productivity.
Physically Possible: The subject parcel contains 16.49± acres or
718,304± square feet. A location within Kenai’s commercial core,
substantial Kenai Spur Highway exposure, and availability of public
utilities enhance commercial development potential. The large size
limits demand from a single user, and increases the likelihood for
subdivision. Thus, physical character enhances the potential for
commercial use, with subdivision to accommodate multiple users.
Legally Permissible: Zoning is C, Conservation Zone, “intended to
apply to areas which should be preserved primarily as open areas and
as watersheds and wildlife reserves. Airport and related uses have
been included in this zone to allow for the reservation of aircraft
approach zones. It is intended that this zone shall apply mainly to
publicly owned land.”3
In addition to this zoning district’s intended permitted uses, many
residential, institutional, and commercial uses are allowed as
conditional uses. The Kenai Municipal Code states “the conditional
use permit procedure is intended to allow flexibility in the
consideration of the impact of the proposed use on surrounding
property and the application of controls and safeguards to assure that
the proposed use will be compatible with the surroundings.”4
Surrounding development includes commercial and institutional to the
north, west, and east, on properties with Kenai Spur Highway
frontage. Residential development to the south of the subject is
evident, as this area lacks highway frontage. Because of the subject’s
3 Kenai Municipal Code, Chapter 14.20 Kenai Zoning Code, City of Kenai,
Ordinance 2943-2017, effective May 5, 2017
4 Kenai Municipal Code, Chapter 14.20.150 Conditional Use Permits, City of
Kenai, Ordinance 2943-2017, effective May 5, 2017
Overview
Highest and Best Use
as Vacant
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MacSwain Associates LLC
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highway frontage, conditionally allowed commercial use appears to be
compatible with surrounding development.
Financially Feasible and Maximally Productive: As discussed,
commercial uses are evident along the Kenai spur Highway.
Proximity to Kenai’s commercial core further encourages commercial
development. The subject’s zoning, and the requirement to obtain a
conditional use permit increases risk; however, commercial uses as
allowed under Kenai’s land use table for conditional uses conform
with the neighborhood development pattern. Thus, analysis indicates
commercial development represents the only permissible financial
option that is physically possible. This type of development
maximizes the return to the land. Due to the large size of the property,
subdividing the parcel will increase demand. Thus, the highest and
best of the appraised parcel, as vacant, is commercial development
after subdivision.
Highest and Best Use As Vacant Subdivision and
Commercial
Development
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
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Property 1 Valuation
The sales comparison approach is a market-based analysis that
develops a land value estimate by analyzing and comparing similar
land sales to the subject property. Our market research revealed
sufficient market activity of land in Kenai and surrounding areas. Due
to the imperfect nature of the market, we use a qualitative comparison
technique that rate elements of comparison as superior, inferior, or
similar. Explanation of the elements of comparison, and analysis of
the primary land sales follows.
The first step of the market analysis is to determine what elements of
comparison cause land sale prices to vary. We found that location,
frontage, wetland inundation, topography, size, shape, utilities, and use
(zoning) influence market behavior and the price paid for vacant land
in Kenai.
As discussed, the subject is zoned C, Conservation, which limits
development potential. While certain commercial and residential uses
are allowable with a conditional use permit, the extent of allowable
development is less than the comparable properties’ zoning districts.
Further, the requirement to file a conditional use permit increases
property risk. Thus, Conservation zoning puts downward pressure on
demand, requiring an adjustment to the comparables for their superior
zoning characteristics.
Regarding market conditions, Kenai’s land values remained relatively
stable for the past 10 years, so we do not make an adjustment for time.
Quantifying the identified adjustments is difficult due to the limited
sale data; therefore, qualitative techniques are used to measure
differences between the comparable sales and the subject.
Importantly, the transactions offer similar highest and best use
potential and are the best market data available.
Researching the Kenai market for conservation zoned land sales
revealed no transactions, requiring us to expand our search to include
land in other zoning districts with similar utility. Listed on the
following page are four transactions we rely upon to facilitate our
comparative analysis. Additional details of the comparable land sales
are retained on file.
Overview
Elements of
Comparison
Comparative Market
Analysis
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
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Comparable Land Sales
No Location Zoning Sale
Date
Sale Price Size $/SF
$/Ac.
1 East side of Kenai Spur Highway near Mile
20
None 1/14 $207,130 902,258 SF
20.71 Ac.
$0.23
$10,000
2 West side of Marathon Road, north of Kenai
Spur Highway
CG 9/07 $1,650,000 649,991 SF
14.78 Ac.
$2.56
$111,607
3 East side of Kenai Spur Highway at corner of
Ross Street
LC 7/16 $75,000 326,700 SF
7.50 Ac.
$0.23
$10,000
4 South side of Lawton Drive, just east of
Walker Lane
RS 8/14 $225,000 591,980 SF
13.59 Ac.
$0.38
$16,556
South side of Kenai Spur Highway
between Walker Lane and Rogers
Road (Subject)
C -- -- -- -- 718,304 SF
16.49 Ac.
-- --
Land Sale Map
N
Subject
4
1
2
3
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MacSwain Associates LLC
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Comparative Land Analysis:
Land Sale 1 is the January 2014 sale located on the east side of Kenai
Spur Highway, near Mile 20 at Robert Walker Avenue. This 20.713-
acre (902,130 SF) parcel sold for $207,130 or $10,000 per acre.
Located outside of Kenai city limits, the trapezoidal-shaped parcel was
heavily treed at the time of sale with generally level to gently rolling
topography. Access is provided by Robert Walker Avenue, a gravel
road. Public natural gas, electricity, and telephone are available to the
property. The intention of the sale was for development of a storage
yard for an oil-support related business. Subsequently, the property
was purchased by Alaska LNG at an undisclosed price. By
comparison, this sale is superior due to shape and lack of wetlands,
which expand its developable footprint. Further, lack of zoning allows
for greater development potential and reduces risk. Overriding these
superiorities is inferior location away from Kenai’s commercial core,
lack of public water and sewer, and access via a gravel road. Overall,
Land Sale 1 is rated inferior, indicating a unit value greater than
$10,000 per acre for the subject.
Land Sale 2 is the September 2007 sale located on the west side of
Marathon Road, just north of Kenai Spur Highway. This 14.78-acre
(649,991 SF) parcel sold for $1,650,000 or $111,607 per acre. Zoned
General Commercial (CG), the irregular-shaped parcel was heavily
treed at the time of sale. Access is provided by Marathon Road,
paved, two-lane, and all public utilities are available. The property
was purchased by Lowe’s Home Improvement Warehouse to construct
a retail warehouse. By comparison, this sale is rated superior in terms
of use (zoning), lack of wetlands, level topography, and shape. While
lacking direct Kenai Spur Highway frontage, it has good exposure and
linkage to Kenai’s commercial core. After analysis, Land Sale 2 is
rated significantly superior, indicating a unit value substantially less
than $111,607 per acre for the subject.
Land Sale 3 is the July 2016 sale located on the east side of Kenai
Spur Highway near Mile 5 at Ross Street. This 7.50-acre (326,700 SF)
parcel sold for $75,000 or $10,000 per acre. Zoned Limited
Commercial (LC), the trapezoidal-shaped parcel is heavily treed and
approximately 50% inundated with low-lying wetlands per KPB
Wetland Mapper. According to the Broker, the property is dry due to
the State rerouting drainage two years ago. Dual access is provided by
Kenai Spur Highway, a paved, two-lane highway, and Ross Street, a
gravel road. Natural gas and electricity are at the parcel. The Broker
stated the buyer had no immediate plans to develop the property, and
intended to hold for future commercial development. The parcel was
listed for sale for most of the last five years, originally at $129,000
before dropping to $79,900. We make downward adjustments for
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21
zoning, superior size differential, and lack of wetland inundation at the
time of sale. Conversely, we make upward adjustments for inferior
location away from Kenai’s commercial core, and lack of public water
and sewer, which increases development costs. Overall, Land Sale 3 is
rated inferior, indicating a unit value greater than $10,000 per acre for
the subject.
Land Sale 4 is the August 2014 sale located on the south side of
Lawton Drive, just east of Walker Lane. This 13.59-acre (591,980 SF)
parcel sold for $225,000 or $16,556 per acre. Located immediately
south of the subject in a Suburban Residential (RS) zone, the irregular-
shaped parcel is heavily treed. Riverine wetlands encroach onto the
east boundary of the parcel. Access is provided by Lawton Drive, a
paved, two-lane road. The Broker indicated public water, sewer,
electricity, and telephone are available to the property. The parcel was
exposed to the market for 291 days, originally listed at $295,000. We
make a downward adjustment for superior RS zoning, which allows a
wider array of permitted and conditional uses than the subject’s
zoning. Conversely, an upward adjustment is required to account for a
lack of highway frontage / exposure, significantly reducing demand
from commercial users. Overall, Land Sale 4 is rated inferior,
indicating a unit value greater than $16,556 per acre.
Reconciliation of Comparative Market Analysis: Presented below is a
rating grid and analysis of the land sales used in comparative analysis.
Land Sale $/Acre Rank Net Adjustment
2 $111,607 Significantly
Superior
Subject -- -- -- -- -- --
4 $16,556 Inferior
1 $10,000 Inferior
3 $10,000 Inferior
Before adjustments, the comparable land sales indicate a wide unit
value range from $10,000 to $111,607 per acre. Land Sale 2 is rated
superior indicating a unit value significantly less than $111,607 per
acre. Conversely, Land Sales 1, 3, and 4 are rated inferior indicating a
unit value greater than $16,556 per acre. After comparative analysis
and making the necessary adjustments, a unit value of $30,000 to
$40,000 per acre is market-supported and developed on the following
page.
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
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16.49 acres × $30,000/acre = $494,700
16.49 acres × $40,000/acre = $659,600
Reconciliation and Conclusion of Land Value: Based on the
foregoing, the market value via the sales comparison approach ranges
from $495,000 to $660,000 after rounding. In conclusion, we
correlate with an estimate of land value at $600,000, which
approximates $36,000 per acre.
Market Value Estimate – Property ID 045-01-003
$600,000
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Chapter 4: Property 2 – Proposed Tract D
The appraised property is a vacant parcel on the southwest corner of
Kenai Spur Highway and Rogers Road. We summarize the subject
property in a summary format. The inserted exhibits and photographs
that follow help illustrate our descriptive analysis.
KPB Aerial Imagery
As this is a proposed tract, we refer to the subject’s legal description as
“Proposed Tract D”.
Location: Southwest corner of Kenai Spur Highway and
Rogers Road, fronting north side of Lawton
Drive, Kenai, Alaska
Physical Address: 10095 Kenai Spur Highway, Kenai, Alaska
Current Use: Vacant land
Property Overview
Legal Description
Identification of Real
Estate Appraised
N
Walker Lane
Kenai Spur Highway
Rogers Road
Property 2
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MacSwain Associates LLC
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Fee simple interest
There are no known sales of the property in the past three years.
Analysis of land describes the characteristics that enhance or detract
from its utility or marketability. We base the site description and
analysis our appraisal inspection on June 15, 2017 and review of the
proposed subdivision plat provided by the client, the KPB assessor
map, and other available mapping. The following proposed plat and
aerial imagery on the previous page assist in the description and
analysis of the site.
Proposed Subdivision Plat
Parcel Shape
and Land Area:
Trapezoidal-shaped parcel containing 4.10± acres
(178,596± square feet) per proposed plat
Vehicular
Access:
Information provided by the client indicates access
via Rogers Road, paved, two-lane road
Frontage and
Exposure:
470± feet on Kenai Spur Highway and Rogers
Road, 450± feet on Lawton Drive
Topography: Generally level, near access grade
Property Rights
Appraised
Three-Year Sale
History
Site Description
N
Kenai Spur Highway Ro
g
e
r
s
R
o
a
d
Subject
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Vegetation: Heavily treed with spruce and birch
Public Utilities: All public utilities available to parcel
Zoning: C, Conservation
Easements and
Restrictions:
None noted
Encroachments: None
Flood Hazard
Conditions:
Federal Emergency Management Agency (FEMA)
Community Panel No. 02122C0140E, dated
October 20, 2016, indicates the site is located in
Zone D, an area in which flood hazards are
undetermined, but possible.
Environmental
Considerations:
The appraisers were not provided an
environmental assessment. The existence of any
hazardous material or other type of environmental
contamination, which may or may not be present
on the property, was not observed by the
appraisers nor do the appraisers have any
knowledge of the existence of such substances. A
search of the Department of Environmental
Conservation Contaminated Sites Database
yielded no results. Our value conclusion assumes
that the property is free of environmental and
hazardous contaminants.
Soil and
Subsurface
Conditions:
A soil report was not provided to the appraisers.
The soils are consistent with undeveloped land in
the area and consists of a good gravel base.
Site
Improvements:
None
Site Utility: The parcel benefits from a corner location, Kenai
Spur Highway frontage, availability of public
utilities, and good gravel based soils
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
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Property 2 Photographs
Taken By: Alex Kleinke Date: June 15, 2017
Northwesterly view towards Kenai Spur Highway of northeast corner
Southerly view of Rogers Road frontage
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
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Taken By: Alex Kleinke Date: June 15, 2017
Southwesterly view of Kenai Spur Highway frontage
Westerly view of subject from Rogers Road
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Highest and Best Use Analysis
Highest and best use is a market-driven concept rather than a
subjective conclusion based on the experience of the appraiser or
property owner’s needs. The Dictionary of Real Estate Appraisal
(Sixth Edition) defines highest and best use as follows.
The reasonably probable use of property that results in the highest
value. The four criteria that the highest and best use must meet are
legal permissibility, physical possibility, financial feasibility, and
maximum productivity.
Physically Possible: The subject parcel contains 4.10± acres or
178,596 square feet. A corner location within Kenai’s commercial
core, Kenai Spur Highway exposure, and availability of public utilities
enhance commercial development potential. Thus, physical character
enhances the potential for commercial use.
Legally Permissible: Zoning is C, Conservation Zone, “intended to
apply to areas which should be preserved primarily as open areas and
as watersheds and wildlife reserves. Airport and related uses have
been included in this zone to allow for the reservation of aircraft
approach zones. It is intended that this zone shall apply mainly to
publicly owned land.”5
In addition to this zoning district’s intended permitted uses, many
residential, institutional, and commercial uses are allowed as
conditional uses. The Kenai Municipal Code states “the conditional
use permit procedure is intended to allow flexibility in the
consideration of the impact of the proposed use on surrounding
property and the application of controls and safeguards to assure that
the proposed use will be compatible with the surroundings.”6
Surrounding development includes commercial and institutional to the
north, west, and east, on properties with Kenai Spur Highway
frontage. Residential development to the south of the subject is
evident, as this area lacks highway frontage. Because of the subject’s
highway frontage, conditionally allowed commercial use appears to be
compatible with surrounding development.
5 Kenai Municipal Code, Chapter 14.20 Kenai Zoning Code, City of Kenai,
Ordinance 2943-2017, effective May 5, 2017
6 Kenai Municipal Code, Chapter 14.20.150 Conditional Use Permits, City of
Kenai, Ordinance 2943-2017, effective May 5, 2017
Overview
Highest and Best Use
as Vacant
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MacSwain Associates LLC
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Financially Feasible and Maximally Productive: As discussed,
commercial uses are evident along the Kenai spur Highway.
Proximity to Kenai’s commercial core further encourages commercial
development. The subject’s zoning, and the requirement to obtain a
conditional use permit increases risk; however, commercial uses as
allowed under Kenai’s land use table for conditional uses conform
with the neighborhood development pattern. Thus, analysis indicates
commercial development represents the only permissible financial
option that is physically possible. This type of development
maximizes the return to the land. Thus, the highest and best of the
appraised parcel, as vacant, is commercial.
Highest and Best Use As Vacant Commercial
Development
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
MacSwain Associates LLC
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Property 2 Valuation
The sales comparison approach is a market-based analysis that
develops a land value estimate by analyzing and comparing similar
land sales to the subject property. Our market research revealed
sufficient market activity of land in Kenai and surrounding areas. Due
to the imperfect nature of the market, we use a qualitative comparison
technique that rate elements of comparison as superior, inferior, or
similar. Explanation of the elements of comparison, and analysis of
the primary land sales follows.
The first step of the market analysis is to determine what elements of
comparison cause land sale prices to vary. We found that location,
frontage, clearing/grading, topography, size, utilities, and use (zoning)
influence market behavior and the price paid for vacant land in Kenai.
As discussed, the subject is zoned C, Conservation, which limits
development potential. While certain commercial and residential uses
are allowable with a conditional use permit, the extent of allowable
development is less than the comparable properties’ zoning districts.
Further, the requirement to file a conditional use permit increases
property risk. Thus, Conservation zoning puts downward pressure on
demand, requiring an adjustment to the comparables for their superior
zoning characteristics.
Regarding market conditions, Kenai’s land values remained relatively
stable for the past 10 years, so we do not make an adjustment for time.
Quantifying the identified adjustments is difficult due to the limited
sale data; therefore, qualitative techniques are used to measure
differences between the comparable sales and the subject.
Importantly, the transactions offer similar highest and best use
potential and are the best market data available.
Researching the Kenai market for conservation zoned land sales
revealed no transactions, requiring us to expand our search to include
land in other zoning districts with similar utility. Listed on the
following page are four transactions we rely upon to facilitate our
comparative analysis. Additional details of the comparable land sales
are retained on file.
Overview
Elements of
Comparison
Comparative Market
Analysis
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
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Comparable Land Sales
No Location Zoning Sale
Date
Sale Price Size $/SF
$/Ac.
5 West side of K Beach Road near Mile 19.5 None 9/16 $120,000 80,150 SF
1.84 Ac.
$1.50
$65,217
6 Southwest corner of N. Forest Drive and
Second Avenue
CG 4/15 $83,000 52,272 SF
1.20 Ac.
$1.59
$69,167
7 South side of K Beach Road near Mile 17.2 None 10/15 $404,500 223,114 SF
5.12 Ac.
$1.81
$79,004
8 Northwest corner of Kleeb Loop and
Turnbuckle Terrace Road
C1 9/16 $160,000 97,139 SF
2.23 Ac.
$1.65
$71,749
Southwest corner of Kenai Spur
Highway and Rogers Road (Subject)
C -- -- -- -- 178,596 SF
4.10 Ac.
-- --
1. Commercial (C) zoning by City of Soldotna
Land Sale Map
N
Subject
8
5
6
7
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Comparative Land Analysis:
Land Sale 5 is the September 2016 sale located on the west side of
Kalifornsky Beach Road near Mile 19.5. This 1.84-acre (80,150 SF)
lot sold for $120,000 or $65,217 per acre. Located outside of Kenai
city limits, the rectangular-shaped lot was heavily treed at the time of
sale with generally level topography. There is access from
Kalifornsky Beach Road. Natural gas and electricity are available,
however the site is not served by public water and sewer. The lot was
purchased by the owner of the adjacent property to the north, which is
developed with a veterinary clinic. By comparison, this sale is
superior due to size differential. Further, lack of zoning allows for
greater development potential and reduces risk. Overriding these
superiorities is inferior location away from Kenai’s commercial core
and lack of public water and sewer. Overall, Land Sale 5 is rated
marginally inferior, indicating a unit value slightly greater than
$65,217 per acre for the subject.
Land Sale 6 is the April 2015 sale located on the southwest corner of
N. Forest Drive and Second Avenue, just north of Kenai Spur
Highway. This 1.20-acre (52,272 SF) site sold for $83,000 or $69,167
per acre. Zoned General Commercial (CG), the L-shaped site
contained three lots, but was replatted into a single lot subsequent to
the sale, gaining additional square footage due to vacated Coolidge
Lane. The property was exposed to the market for approximately a
year and a half, listed at $90,000. By comparison, this sale is rated
superior in terms of use (zoning), size differential, and
clearing/grading. Conversely, the site lacks direct Kenai Spur
Highway frontage and is located slightly west of Kenai’s commercial
core. After analysis, Land Sale 6 is rated marginally superior,
indicating a unit value slightly less than $69,167 per acre for the
subject.
Land Sale 7 is the October 2015 sale located on the west side of
Kalifornsky Beach Road near Mile 19.5. This 5.12-acre (223,114 SF)
site sold for $404,500 or $79,004 per acre. Located outside of zoning
districts, the rectangular-shaped site consisted of five lots, but was
replatted into a four-lot site subsequent to the sale. The site was
primarily cleared, level, and graded at the time of sale with sparse
vegetation. There is access from Kalifornsky Beach Road at the
northwest corner. Natural gas and electricity are available, however
the site is not served by public water and sewer. The parcel was listed
for over a year, originally at $439,000. We make a downward
adjustment for clearing / grading. Further, lack of zoning allows for
greater development potential and reduces risk. Partially offsetting
these superiorities are lack of public water and sewer and a location
away from Kenai’s commercial core. Overall, Land Sale 7 is rated
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superior, indicating a unit value less than $79,004 per acre for the
subject.
Land Sale 8 is the September 2016 sale located on the northwest
corner of Kleeb Loop and Turnbuckle Terrace Road, situated just
north of Sterling Highway, 0.7± northeast of the “Y”. This 2.23-acre
(97,139 SF) parcel sold for $160,000 or $71,749 per acre. Access is
provided by Kleeb Loop, a paved frontage road of the Sterling
Highway. Public electricity, natural gas, and telephone are available
to the property, however public water and sewer are not connected.
Reportedly, there is a 120-foot well on the property, but it is not
sufficient to support a commercial operation. The property contained
an older home site with several ancillary improvements, however the
Broker indicated the seller would remove the structures. The property
was exposed to the market for over 2.5 years, originally listed at
$349,400 and reduced to $224,000. We make downward adjustments
for superior site clearing, size differential and commercial zoning,
which allows a wider array of permitted and conditional uses than the
subject’s zoning. Conversely, an upward adjustment is required to
account for a lack of public water and sewer. Overall, Land Sale 8 is
rated superior, indicating a unit value less than $71,749 per acre.
We analyzed the sale of the 1.87-acre (81,636 SF) AlaskaLanes
property located just west of the subject fronting Kenai Spur Highway.
The property was purchased from the City of Kenai for $450,000, with
the land contributing to the entirety of the property value. The buyers
intend to rehabilitate the improvements, which are in disrepair.
Comparatively, this sale is superior in all respects, including size
differential, use (zoning), clearing/grading, and direct access from
Kenai Spur Highway. We analyze this sale due to locational
similarities, but relegate it to secondary consideration due to the
number of irregular factors involved in the transaction.
Additional Data
Considered
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Reconciliation of Comparative Market Analysis: Presented below is a
rating grid and analysis of the land sales used in comparative analysis.
Land Sale $/Acre Rank Net Adjustment
7 $79,004 Superior
8 $71,749 Superior
6 $69,167 Marginally
Superior
Subject -- -- -- -- -- --
5 $65,217 Marginally
Inferior
Before adjustments, the comparable land sales indicate a unit value
range from $65,217 to $79,004 per acre. Land Sale 5 is rated
marginally inferior indicating a unit value slightly greater than
$65,217 per acre. Conversely, Land Sales 6 through 8 are rated
superior indicating a unit value slightly less than $69,167 per acre.
After comparative analysis and making the necessary adjustments, a
unit value of $66,000 to $69,000 per acre is market-supported and
develops the following.
4.10 acres × $66,000/acre = $270,600
4.10 acres × $69,000/acre = $282,900
Reconciliation and Conclusion of Land Value: Based on the
foregoing, the market value via the sales comparison approach ranges
from $271,000 to $283,000 after rounding. In conclusion, we
correlate with an estimate of land value at $275,000, which
approximates $67,000 per acre.
Market Value Estimate – Proposed Tract D
$275,000
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Chapter 5: Property 3 – Proposed Tracts A & B
The appraised property is a vacant parcel on the southeast corner of
Kenai Spur Highway and Walker Lane. We summarize the subject
property in a summary format. The inserted exhibits and photographs
that follow help illustrate our descriptive analysis.
KPB Aerial Imagery
As this is a proposed tract, we refer to the subject’s legal description as
“Proposed Tracts A & B”.
Location: Southeast corner of Kenai Spur Highway and
Walker Lane, fronting north side of Lawton
Drive, Kenai, Alaska
Physical Address: 10095 Kenai Spur Highway, Kenai, Alaska
Current Use: Vacant land
Property Overview
Legal Description
Identification of Real
Estate Appraised
N
Walker Lane
Kenai Spur Highway Rogers Road
Property 3
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Fee simple interest
There are no sales of the property in the past three years.
Analysis of land describes the characteristics that enhance or detract
from its utility or marketability. We base the site description and
analysis our appraisal inspection on June 15, 2017 and review of the
proposed subdivision plat provided by the client, the KPB assessor
map, and other available mapping. The following proposed plat and
aerial imagery on the previous page assist in the description and
analysis of the site.
Proposed Subdivision Plat
Parcel Shape
and Land Area:
Narrow parcel containing 5.80± acres (252,648±
square feet) per proposed plat
Vehicular
Access:
Information provided by the client indicates access
via Walker Lane, paved, two-lane road
Frontage and
Exposure:
1,290± feet on Kenai Spur Highway and Lawton
Drive, 150± feet on Walker Lane
Topography: Generally level, near access grade
Vegetation: Heavily treed with spruce and birch
Property Rights
Appraised
Three-Year Sale
History
Site Description
N
Kenai Spur Highway
Wa
l
k
e
r
L
a
n
e
Subject
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Public Utilities: All public utilities available to parcel
Zoning: C, Conservation
Easements and
Restrictions:
None noted
Encroachments: None
Flood Hazard
Conditions:
Federal Emergency Management Agency (FEMA)
Community Panel No. 02122C0140E, dated
October 20, 2016, indicates the site is located in
Zone D, an area in which flood hazards are
undetermined, but possible.
Environmental
Considerations:
The appraisers were not provided an
environmental assessment. The existence of any
hazardous material or other type of environmental
contamination, which may or may not be present
on the property, was not observed by the
appraisers nor do the appraisers have any
knowledge of the existence of such substances. A
search of the Department of Environmental
Conservation Contaminated Sites Database
yielded no results. Our value conclusion assumes
that the property is free of environmental and
hazardous contaminants.
Soil and
Subsurface
Conditions:
A soil report was not provided to the appraisers.
The soils are consistent with undeveloped land in
the area and consists of a good gravel base.
Site
Improvements:
None
Site Utility: The parcel benefits from a corner location, Kenai
Spur Highway frontage, availability of public
utilities, and good gravel based soils
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Property 3 Photographs
Taken By: Alex Kleinke Date: June 15, 2017
Westerly view of Lawton Drive frontage
Northerly view of path through center of parcel
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Taken By: Alex Kleinke Date: June 15, 2017
Westerly view of north boundary of property
Northerly view of Walker Lane frontage near southwest corner
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
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Highest and Best Use Analysis
Highest and best use is a market-driven concept rather than a
subjective conclusion based on the experience of the appraiser or
property owner’s needs. The Dictionary of Real Estate Appraisal
(Sixth Edition) defines highest and best use as follows.
The reasonably probable use of property that results in the highest
value. The four criteria that the highest and best use must meet are
legal permissibility, physical possibility, financial feasibility, and
maximum productivity.
Physically Possible: The subject parcel contains 5.80± acres or
252,648± square feet. A corner location within Kenai’s commercial
core, Kenai Spur Highway exposure, and availability of public utilities
enhance commercial development potential. Thus, physical character
enhances the potential for commercial use.
Legally Permissible: Zoning is C, Conservation Zone, “intended to
apply to areas which should be preserved primarily as open areas and
as watersheds and wildlife reserves. Airport and related uses have
been included in this zone to allow for the reservation of aircraft
approach zones. It is intended that this zone shall apply mainly to
publicly owned land.”7
In addition to this zoning district’s intended permitted uses, many
residential, institutional, and commercial uses are allowed as
conditional uses. The Kenai Municipal Code states “the conditional
use permit procedure is intended to allow flexibility in the
consideration of the impact of the proposed use on surrounding
property and the application of controls and safeguards to assure that
the proposed use will be compatible with the surroundings.”8
Surrounding development includes commercial and institutional to the
north, west, and east, on properties with Kenai Spur Highway
frontage. Residential development to the south of the subject is
evident, as this area lacks highway frontage. Because of the subject’s
highway frontage, conditionally allowed commercial use appears to be
compatible with surrounding development.
7 Kenai Municipal Code, Chapter 14.20 Kenai Zoning Code, City of Kenai,
Ordinance 2943-2017, effective May 5, 2017
8 Kenai Municipal Code, Chapter 14.20.150 Conditional Use Permits, City of
Kenai, Ordinance 2943-2017, effective May 5, 2017
Overview
Highest and Best Use
as Vacant
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Financially Feasible and Maximally Productive: As discussed,
commercial uses are evident along the Kenai spur Highway.
Proximity to Kenai’s commercial core further encourages commercial
development. The subject’s zoning, and the requirement to obtain a
conditional use permit increases risk; however, commercial uses as
allowed under Kenai’s land use table for conditional uses conform
with the neighborhood development pattern. Thus, analysis indicates
commercial development represents the only permissible financial
option that is physically possible. This type of development
maximizes the return to the land. Thus, the highest and best of the
appraised parcel, as vacant, is commercial.
Highest and Best Use As Vacant Commercial
Development
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
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Property 3 Valuation
The sales comparison approach is a market-based analysis that
develops a land value estimate by analyzing and comparing similar
land sales to the subject property. Our market research revealed
sufficient market activity of land in Kenai and surrounding areas. Due
to the imperfect nature of the market, we use a qualitative comparison
technique that rate elements of comparison as superior, inferior, or
similar. Explanation of the elements of comparison, and analysis of
the primary land sales follows.
The first step of the market analysis is to determine what elements of
comparison cause land sale prices to vary. We found that location,
frontage, clearing/grading, topography, size, utilities, and use (zoning)
influence market behavior and the price paid for vacant land in Kenai.
As discussed, the subject is zoned C, Conservation, which limits
development potential. While certain commercial and residential uses
are allowable with a conditional use permit, the extent of allowable
development is less than the comparable properties’ zoning districts.
Further, the requirement to file a conditional use permit increases
property risk. Thus, Conservation zoning puts downward pressure on
demand, requiring an adjustment to the comparables for their superior
zoning characteristics.
Regarding market conditions, Kenai’s land values remained relatively
stable for the past 10 years, so we do not make an adjustment for time.
Quantifying the identified adjustments is difficult due to the limited
sale data; therefore, qualitative techniques are used to measure
differences between the comparable sales and the subject.
Importantly, the transactions offer similar highest and best use
potential and are the best market data available.
Researching the Kenai market for conservation zoned land sales
revealed no transactions, requiring us to expand our search to include
land in other zoning districts with similar utility. Listed on the
following page are four transactions we rely upon to facilitate our
comparative analysis. Additional details of the comparable land sales
are retained on file.
Overview
Elements of
Comparison
Comparative Market
Analysis
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
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Comparable Land Sales
No Location Zoning Sale
Date
Sale Price Size $/SF
$/Ac.
3 East side of Kenai Spur Highway at corner of
Ross Street
LC 7/16 $75,000 326,700 SF
7.50 Ac.
$0.23
$10,000
4 South side of Lawton Drive, just east of
Walker Lane
RS 8/14 $225,000 591,980 SF
13.59 Ac.
$0.38
$16,556
6 Southwest corner of N. Forest Drive and
Second Avenue
CG 4/15 $83,000 52,272 SF
1.20 Ac.
$1.59
$69,167
7 South side of K Beach Road near Mile 17.2 None 10/15 $404,500 223,114 SF
5.12 Ac.
$1.81
$79,004
Southeast corner of Kenai Spur
Highway and Walker Lane (Subject)
C -- -- -- -- 252,648 SF
5.80 Ac.
-- --
Land Sale Map
N
Subject
6
7
3
4
17-3078: Three Properties in Lawton Acres, Kenai, Alaska
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Comparative Land Analysis:
Land Sale 3 is the July 2016 sale located on the east side of Kenai
Spur Highway near Mile 5 at Ross Street. This 7.50-acre (326,700 SF)
parcel sold for $75,000 or $10,000 per acre. Zoned Limited
Commercial (LC), the trapezoidal-shaped parcel is heavily treed and
approximately 50% inundated with low-lying wetlands per KPB
Wetland Mapper. According to the Broker, the property is dry due to
the State rerouting drainage two years ago. Dual access is provided by
Kenai Spur Highway, a paved, two-lane highway, and Ross Street, a
gravel road. Natural gas and electricity are at the parcel. The Broker
stated the buyer had no immediate plans to develop the property, and
intended to hold for future commercial development. The parcel was
listed for sale for most of the last five years, originally at $129,000
before dropping to $79,900. We make a downward adjustment for
zoning. Conversely, we make upward adjustments for inferior
location away from Kenai’s commercial core, and lack of public water
and sewer, which increases development costs. Overall, Land Sale 3 is
rated inferior, indicating a unit value greater than $10,000 per acre for
the subject.
Land Sale 4 is the August 2014 sale located on the south side of
Lawton Drive, just east of Walker Lane. This 13.59-acre (591,980 SF)
parcel sold for $225,000 or $16,556 per acre. Located immediately
south of the subject in a Suburban Residential (RS) zone, the irregular-
shaped parcel is heavily treed. Riverine wetlands encroach onto the
east boundary of the parcel. Access is provided by Lawton Drive, a
paved, two-lane road. The Broker indicated public water, sewer,
electricity, and telephone are available to the property. The parcel was
exposed to the market for 291 days, originally listed at $295,000. We
make a downward adjustment for superior RS zoning, which allows a
wider array of permitted and conditional uses than the subject’s
zoning. Conversely, upward adjustments are required for size
differential and to account for a lack of highway frontage / exposure,
which reduces demand from commercial users. Overall, Land Sale 4
is rated inferior, indicating a unit value greater than $16,556 per acre.
Land Sale 6 is the April 2015 sale located on the southwest corner of
N. Forest Drive and Second Avenue, just north of Kenai Spur
Highway. This 1.20-acre (52,272 SF) site sold for $83,000 or $69,167
per acre. Zoned General Commercial (CG), the L-shaped site
contained three lots, but was replatted into a single lot subsequent to
the sale, gaining additional square footage due to vacated Coolidge
Lane. The property was exposed to the market for approximately a
year and a half, listed at $90,000. By comparison, this sale is rated
superior in terms of use (zoning), size differential, and
clearing/grading. Conversely, the site lacks direct Kenai Spur
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Highway frontage and is located slightly west of Kenai’s commercial
core. After analysis, Land Sale 6 is rated superior, indicating a unit
value slightly less than $69,167 per acre for the subject.
Land Sale 7 is the October 2015 sale located on the west side of
Kalifornsky Beach Road near Mile 19.5. This 5.12-acre (223,114 SF)
site sold for $404,500 or $79,004 per acre. Located outside of zoning
districts, the rectangular-shaped site consisted of five lots, but was
replatted into a four-lot site subsequent to the sale. The site was
primarily cleared, level, and graded at the time of sale with sparse
vegetation. There is access from Kalifornsky Beach Road at the
northwest corner. Natural gas and electricity are available, however
the site is not served by public water and sewer. The parcel was listed
for over a year, originally at $439,000. We make a downward
adjustment for clearing / grading. Further, lack of zoning allows for
greater development potential and reduces risk. Partially offsetting
these superiorities are lack of public water and sewer and a location
away from Kenai’s commercial core. Overall, Land Sale 7 is rated
superior, indicating a unit value less than $79,004 per acre for the
subject.
Reconciliation of Comparative Market Analysis: Presented below is a
rating grid and analysis of the land sales used in comparative analysis.
Land Sale $/Acre Rank Net Adjustment
7 $79,004 Superior
6 $69,167 Superior
Subject -- -- -- -- -- --
4 $16,556 Inferior
3 $10,000 Inferior
Before adjustments, the comparable land sales indicate a unit value
range from $10,000 to $79,004 per acre. Land Sales 3 and 4 are rated
inferior indicating a unit value greater than $16,556 per acre.
Conversely, Land Sales 6 and 7 are rated superior indicating a unit
value less than $69,167 per acre. After comparative analysis and
making the necessary adjustments, a unit value of $40,000 to $45,000
per acre is market-supported and develops the following.
5.80 acres × $40,000/acre = $232,000
5.80 acres × $45,000/acre = $261,000
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Reconciliation and Conclusion of Land Value: Based on the
foregoing, the market value via the sales comparison approach ranges
from $232,000 to $261,000. In conclusion, we correlate with an
estimate of land value at $250,000, which approximates $43,000 per
acre.
Market Value Estimate – Proposed Tracts A & B
$250,000
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Assumptions and Limiting Conditions
This appraisal is subject to the following assumptions and limiting conditions.
No responsibility is assumed for the legal description provided or for matters pertaining to
legal or title considerations. Titles to the properties are assumed to be marketable unless
otherwise stated.
The properties are appraised free and clear of all liens or encumbrances unless otherwise
stated.
The information furnished by others is believed to be reliable, but no warranty is given for its
accuracy.
All maps, plot plans, and other illustrative material are believed to be accurate, but are
included only to help the reader visualize the properties.
It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures that render it more or less valuable. No responsibility is assumed for such
conditions or for obtaining the engineering studies that may be required to discover them.
It is assumed the properties are in full compliance with all applicable federal, state, and local
environmental regulations and laws unless the lack of compliance is stated, described, and
considered in the appraisal report.
Possession of this report, or a copy thereof, does not carry with it the right of publication.
The appraisers, by reason of this appraisal, are not required to give consultation or testimony
or to be in attendance in court with reference to the properties in question unless
arrangements have been previously made.
Neither all nor any part of the contents of this report shall be disseminated to the public
through advertising, public relations, news, sales, or other media without the prior written
consent and approval of the appraisers.
The existence of any hazardous material or other type of environmental contamination, which
may or may not be present on the properties, was not observed by the appraiser nor does the
appraiser have any knowledge of the existence of such substances. However, the presence of
these substances may affect the value of the properties. Therefore, the client is urged to
retain an environmental assessment for discovery and evaluation.
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Extraordinary Assumption
This appraisal is subject to the following extraordinary assumption.
It is an extraordinary assumption of the appraisal of Properties 2 and 3 that they will be
subdivided and the plat will be approved by the Kenai Peninsula Borough.
MacSwain Associates LLC
4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503
Appraiser: Steve MacSwain, MAI
Member of Appraisal Institute - No. 5700
State of Alaska, Certified General Real Estate Appraiser - No. 42
Professional Experience: 1986 to Present - MacSwain Associates LLC
1976 to 1986 - Appraisal Company of Alaska - President
1970 to 1975 - Real Estate Services Corporation – Appraiser
1969 to 1970 - State of Alaska Department of Highways - Right of Way Agent
Real estate appraiser and consultant of all property types throughout Alaska including commercial, industrial,
subdivisions and special-purpose properties. Appraisals have been performed for financing, leasing, insurance,
condemnation, taxation, property damages, investment analysis, and buy-sell decisions. Appraisals include
valuation of both real property and business enterprises. Professional experience totals 45 years.
Education: Bachelor of Business Administration, Finance (1969), University of Alaska Fairbanks
Appraisal Education: The following is a list of completed appraisal courses and seminars.
2017 – Residential & Commercial Valuation of Solar by the Appraisal Institute
2017 – Right of Way Acquisition for Pipeline Projects by the International Right of Way Association
2016 – Uniform Standards of Professional Appraisal Practice – Update by the Appraisal Institute
2015 – Litigation Appraising: Specialized Topics and Applications by the Appraisal Institute
2015 – Business Practices and Ethics by the Appraisal Institute
2013 – Complex Litigation Appraisal Case Studies by the Appraisal Institute
2013 – Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) by the Appraisal Institute
2012 – Appraisal Curriculum Overview by the Appraisal Institute
2010 – Reviewing Appraisals in Eminent Domain by the International Right of Way Association
2010 – Commercial Appraisal Engagement and Review Seminar for Bankers and Appraisers by the Appraisal Institute
2009 – The Appraiser as an Expert Witness: Preparation and Testimony by the Appraisal Institute
2009 – Attacking and Defending an Appraisal in Litigation by Whitmer Education
2008 – Uniform Standards of Professional Appraisal Practice by the Appraisal Institute
2007 – Business Practices and Ethics by the Appraisal Institute
2007 – Eminent Domain Law for Right of Way Professionals by the International Right of Way Association
2007 – Appraisal Review for Federal Aid Programs by the International Right of Way Association
2007 – Analyzing Operating Expenses by the Appraisal Institute
2007 – Forecasting Revenue by the Appraisal Institute
2007 – Case Studies in Highest and Best Use by the Appraisal Institute
2002 – Uniform Standards for Federal Land Acquisitions: Practical Applications for Fee Appraisers by the Appraisal Institute
2002 – Legal Aspects of Easements by the International Right of Way Association
1969-2001: Numerous appraisal classes pertaining to principles, income capitalization, cost analysis, sale
comparison approach, and highest and best use analysis by the Appraisal Institute, Society of Real Estate
Appraisers, International Right-of-Way Association, International Association of Assessing Officers, and Marshall
Valuation Service
Membership and Organizations: Member of Appraisal Institute – No. 5700
Member of International Right of Way Association
Member of Building Owners and Managers Association (BOMA), Anchorage
Public Service: Past Chairman of the State Board of Certified Appraisers
Past member of Board of Equalization, Municipality of Anchorage
Past member of National Experience Review Committee of the Appraisal Institute
Past member of Regional Ethics and Counseling Panel of the Appraisal Institute
Past president of Alaska Chapter 57 of the Appraisal Institute
Significant Assignments:
Appraised the Trans-Alaska Pipeline System, an 800-mile common carrier crude oil pipeline from Prudhoe Bay
to Valdez, operated by Alyeska Pipeline Service Company.
Appraised Calais Company, Inc., a real estate holding company consisting of 39 commercial parcels in
Anchorage.
Principal real estate consultant and expert witness for all lands affected by the Exxon Valdez oil spill. Project
involved over 2,000,000 acres of remote land and nearly 2,000 private property owners.
Appointed as a representative of a three-member panel that analyzed and valued over 1,000,000 acres and 8,000
parcels for the Mental Health Lands Settlement.
Contract assessor for the North Slope Borough, Kodiak Island Borough, City of Nome, and the City of Valdez.
Represented Seibu Alaska, Inc. (Alyeska Resort and Alyeska Prince Hotel) in preparing of their property tax
appeal with the Municipality of Anchorage that resulted in a $65 million reduction in assessed value.
Appraised submerged tideland parcels and wetlands parcels located in Womens Bay on Kodiak Island for the
purpose of an exchange between Koniag, Inc. and U.S. Fish and Wildlife Service
Appraised Common Carrier Pipeline right-of-ways leased and operated by BP Transportation Alaska and
ConocoPhillips Alaska.
Appraised 3,600 acres consisting of the former Adak Naval Air Station and Submarine Base conveyed to the
City of Adak and the State of Alaska.
Appraised and/or provided consulting services on properties throughout Alaska including numerous financial
institutions, Native corporation lands, and real estate holding companies both public and private.
Expert Witness Experience: Steve MacSwain is qualified as an expert witness in both the United States Federal
Court and the State of Alaska Superior Court. Steve has testified as an expert witness in State and Federal courts.
In addition, Steve has testified as expert witness in numerous Alaskan municipal tax courts, public hearings, and
depositions on matters related to real property.
Arbitrator Experience: Appointed a Master by the Superior Court of Alaska and Municipality of Anchorage to
serve as an arbitrator in determining just compensation.
Kenai Chamber of Commerce & Visitor Center
Connecting Businesses on the Kenai since 1954
Johna Beech
President/COO
HISTORY
KENAI CHAMBER OF COMMERCE (KCC) FOUNDED IN 1954
KCC IS A PRIVATE, NON-PROFIT, MEMBERSHIP DRIVEN ORGANIZATION
COMPRISED OF BUSINESSES, CIVIC ORGANIZATIONS, EDUCATIONAL
INSTITUTIONS AND INDIVIDUALS.
1984 KENAI CONVENTION AND VISITOR BUREAU (KCVB) FORMED
1991 KENAI VISITOR & CULTURAL CENTER OPENS
2012 KCC + KVCB = KENAI CHAMBER OF COMMERCE AND VISITOR
CENTER (KCCVC)
2014 KCCVC CELEBRATES 60YEARS!
KCCVC
MISSION STATEMENT
To promote, support, and advocate
for our members and our community,
and to strengthen the economic
climate of the Kenai area.
KCCVC VALUES
Leadership: Providing visionary leadership by looking at the big picture and the long term
in formulating policies and positions.
Diverse: Welcoming the involvement and participation of all peoples in our programs and
activities and recognizing the benefits that such involvement brings to the organization.
Proactive: Positioning the KCCVC to positively and creatively respond to challenges and
opportunities.
Collaborative: Partnering with stakeholders in addressing common issues and
opportunities throughout our region.
Responsive: Maintaining a flexible and responsive organizational structure so that we can
quickly change activities or programs to serve the needs of our members in a rapidly
changing environment.
Inclusive: Serving and representing all our member businesses without a focus on any one
size of business, geographic area, or industry sector.
Business Driven: Acting always in the best interests of our members.
Excellence: Conducting all activities so as to bring credit to our community and our
members.
KCCVC
BOARD OF DIRECTORS
EXECUTIVE COMMITTEE
CHAIRMAN OF THE BOARD
BRUCE JACKMAN
TESORO ALASKA
VICE CHAIRMAN OF THE BOARD
BRENDYN SHIFLEA
CONOCOPHILLIPS
TREASURER
KARL HEINZ
FIRST NATIONAL BANK ALASKA
SECRETARY
PENNY FURNISH
STEWART TITLE OF THE KENAI PENINSULA PENINSULA CLARION DATED APRIL 8, 1976
KENAI CHAMBER BOARD MEETING AT MOOSEMEAT JOHN’S CABIN
KCCVC
BOARD OF DIRECTORS
Fred Braun
Jack White Real Estate –Kenai
Dennis Swarner O.D.
Kenai Vision Center
Jake Arness
Udelhoven Oilfield System Services
Chris Finley
MediCenter
Scott Hamann
Metal Magic
YOUR
KCCVC
STAFF
Johna Beech
President/COO
Chastity Swafford
Facility Rental Coordinator
Louanne Stanton
Visitor Services/Retail Manager
Gloria Ungrue
Administrative Assistant
KCCVC by the Numbers
Luncheons:
2016 –25 luncheons with a total of 1,053 attendees
Signature Community Events
Job Shadow:
2016: 119 Students w/ 52 Host Businesses
2017: 92 Students w/ 44 Host Businesses
Beer & Wine Experience:
2016: 309 Attendees
2017: 281 Attendees
Saturday Market:
2016: 33 Vendors
Fourth of July:
2016: 41 Vendor booths & 80 parade entries
Kenai River Marathon:
2016: 194 participants
Christmas Comes to Kenai:
2016: 1,150 attendees
KCCVC/McDonalds Student(s) of the Month:
2016 –2017 School Year: 16 students total (8 from NHS and 8 from KCHS)
Scholarships Awarded:
2017: 6 students/$4,00 awarded
KCCVC MEMBERSHIP
CURRENT MEMBERSHIP AS OF JULY 1, 2017
412 ACTIVE KCCVC MEMBERS
MEMBERSHIP TYPES
TOURISM IS EVERYONE’S BUSINESS
KENAI VISITOR & CULTURAL CENTER
45,000 KENAI RECRATIONAL GUIDES
2016 KVCC Visitors 40,239
2015 KVCC Visitors 41,971
In state TradeshowsMat-su Outdoorsman show -Curtis D. Menard Memorial Sports Center Wasilla, AKGreat Alaska Sportsman show –Sullivan Arena, Anchorage, AK
Kenai Peninsula Tourism Marketing Council Board of Directors President 2016 –CurrentVice President 2014 –2015 Director 2012 –2014
Alaska Travel Industry AssociationAnnual Convention attendee 2012 -presentTravel Policy & Planning Committee –2014
“The views,opinions and findings contained in this report are those of the authors(s)and should not be
construed as an official Department of the Army position,policy or decision,unless so designated by other
official documentation.”
July 5 & 6, 2017
KENAI RIVER BLUFF EROSION DRAFT REPORT
CITY COUNCIL/PUBLIC MEETINGS
1
File Name
Flood Tide Storm Event
RONNIE BARCAK –PM
JAN DEICK -PL
Senior Center Buildings
Project Area, Authority, History
Problem Statement and Existing Conditions
Alternatives/Plan Formulation
Tentatively Selected Plan
Path Forward/Schedule
2
Overview
STUDY AREA
Bluff Area
Cook Inlet
Kenai River
3 3
STUDY AREA
4 4
Authority
Section 116 of Energy and Water Development
And Related Agencies Appropriations Act of
2010 (P.L.111-85)
Implementation Guidance provided 10 May 2012
Funding –Federal Reprogramming
5
“The Secretary of the Army is authorized to carry out
structural and non-structural projects for storm damage
prevention and reduction, coastal erosion, and ice and
glacial damage in Alaska, including relocation of affected
communities and construction of replacement facilities:
Provided, that the non-Federal share of any project
carried out pursuant to this section shall be no more than
35 percent of the total cost of the project and shall be
subject to the ability of the non-Federal interest to pay,
as determined in accordance with 33 U.S.C. 2213(m).”
HISTORY of Investigations
1962 Study Navigation Improvements
1970-76 Further Navigation Studies
1982 City of Kenai Study Effort
1997 Corps’ Lower Kenai Recon
2002 Technical Evaluation Authorized
2004-12 Various Reports
2013 Recon 905(b) WRDA
2014 Feasibility Envisioned
7
CURRENT EFFORT/SCHEDULE
FCSA Signed
Alternatives Milestone
Tentatively Selected Plan
Concurrent Review
Agency Decision
Directors Report
12 May 15
13 May 15
9 May 17
16 Jun 17
*31 Oct 17
*30 Apr 18
8
PROBLEM STATEMENT
Severe and ongoing coastal erosion
at the mouth of the Kenai River
threatens structures and infrastructure
9
PROBLEMS
•Structures and property threatened
•Infrastructure threatened
•Cultural resources threatened
•Cultural vulnerability
•Under use of public-use areas Health and
safety issues (unstable bluff )
•Negatively impacted social connectedness,
identity, resiliency, leisure and recreation
•Uncertainty in community planning
10
GOALS AND OBJECTIVES
Reduce effects of bluff erosion
Protect
Structures and infrastructure
Historical and cultural resources
6
2001 Photo
T he white house
has since been
removed
11
EXISTING CONDITIONS
•Lost land to the sea:
o 7 parcels completely lost
o 18 parcels suffered land loss
o Nearly all threatened parcels have lost value
•Lost and damaged cultural resources
o 4 historic wooden structures
o Historic property of Kenai Bible Church
o Human remains have eroded out of the bluff
o Prehistoric house depressions lost or exposed
•Threatened structures and infrastructure
(e.g., Kenai Senior Center)
•Relocation of utilities and roads
12
BLUFF RETREAT RATE
Retreat Rate
is ~3 feet per
year
52 Parcels
Affected
34 Structures
Affected
13
IMPACTED STRUCTURE EXAMPLES
Hermansen-Miller Cottage –built 1916
December 2016 Photo
House above has been removed
14
PLAN FORMULATION
Began with:
Understanding erosion processes:
Soil types, overland flow,groundwater
occurrence, floodtides,and wave height
Evaluating management measures to develop
alternatives that were screened against agreed
upon criteria
15
BLUFF DESTABILIZATION CAUSES
Soils eroded from the upper slope to the toe are
removed during flood tides
Lower portion of the bluff remains exposed and
is eroded
Bluff slope is over steep, collapses, and retreats
inland
Dynamic conditions prevents establishment of
vegetation
16
MEASURES
Groundwater
Pumping
Longitudinal
Dike
Toe Protection
(Armoring)
Groundwater
Conveyance
Breakwater Gabions Toe Wall Regrading/Re-
vegetation
Shotcrete Beach
Nourishment
Channel
Training
Groundwater
Cutoff Wall
Relocate River
Mouth
Dredging Upper Slope
Stabilization
Top-of-Bluff
Drainage
Extended No-
Wake Zone
Zoning
Changes
Demolish/
Rebuild
Structures
Buyouts/
Relocations
17
ALTERNATIVE FORMULATION
Six Alternative Plans
1.No Action Plan
2.River Mouth Relocation
3.Revetting and Vegetating the Bluff Face-Buried Toe
4.Revetting and Vegetating the Bluff Face-Weighted Toe
5.Protective Berm at the Bluff Toe
6.Structure Relocation
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18
RELOCATION
No Action
Kenai River Bluff Erosion
Updated: 16 Feb 2017
ENVIRONMENTAL RESOURCES
Cook Inlet Belugas
Harbor Seals
Habitat
20
ENVIRONMENTAL RESOURCES
Beluga Whales
Listed as endangered under the ESA
Project area includes critical habitat
Presence in Kenai River is strongly seasonal March-May
Harbor Seals
Not listed under ESA
Protected under the Marine Mammal Protection Act (MMPA)
Common in Kenai River,sometimes in groups of hundreds
Can be present in the river at any time of year
Habitat
Compacted,river-scoured sediment with little habitat
value
Intertidal zone is not functionally a mudflat“
The foot of the bluff does not meet the jurisdictional
definition of a wetland
21
DECISION CRITERIA 2
Decision Criteria Metrics Description
Effectiveness High/Medium/
Low
The extent to which the measure contributes to achievement of the
planning objectives.
Constructability Yes/No Do site-specific conditions cause the measure to be technically
infeasible or not applicable as a storm damage risk management
measure?
Acceptability High/Medium/
Low
The extent to which the measure is acceptable in terms of
applicable laws and public policies.
Cost
Affordability
High/Medium/
Low
A measure with low costs would be estimated to have high cost
affordability and vice versa.
Constraint
Avoidance
Yes/No A measure’s ability to avoid study constraints.
Social
Considerations
High/Medium/
Low
The extent to which a measure is judged to be acceptable to
agencies,tribes,and the general public.
Structural
Measures
Generally those measures that reduce the probability of erosion.
Non-structural
Measures
Those measures that reduce the consequences of erosion through
relocations,buyouts,and demolition with reconstruction (within
authority granted by Section 116)
22
ALTERNATIVE 1
No Action Plan
Objectives would not be met
Property, structures,infrastructure
and cultural resources lost:
•Residences
•Commercial Buildings
•Senior Center &Senior
Housing
•Historical Structures
•Utilities / Supporting Infrastructure
23
ALTERNATIVE 2
River Mouth Relocation
Relocate the mouth ~3,500 feet to the
south
Dredge a new 1,000 foot wide channel
Fill existing channel
Construct 4,300 foot jetties at new mouth
Some buyout and relocation needed
Harbor created capturing
navigation opportunities
24
ALTERNATIVE 3
Revetting and Vegetating the Bluff Face-Buried Toe
26
ALTERNATIVE 4
Revetting and Vegetating the Bluff Face-Weighted Toe
27
ALTERNATIVE 5
Protective Berm at the Bluff Toe
Three zones identified based on storm wave
height
Height adjusted to protect bluff toe
Protecting toe from further erosion at floodtides
Allows bluff to reach a stable slope over time
naturally
No cutting or filling of the bluff face
30
ALTERNATIVE 5
Protective Berm at the Bluff Toe –Zone A
31
ALTERNATIVE 6
Structure Relocation
Relocate structures within the 50-year affected
area
Include buyouts, structure relocations, and
demolition
Historical structures relocated
Cultural resources would be properly
excavated and documented
Requires mitigation and coordination with the
Kenaitze Indian Tribe
33
REAL ESTATE CONSIDERATIONS
Alternative 1 allows bluff to retreat “as is”
Alternatives 3 and 4 have more predictable real
estate impacts by establishing the upper bluff line
Alternatives 2 and 5 allow bluff to retreat over
time,so real estate impacts are less predictable
over time
Alternative 6 allows bluff to retreat “as is”and would
include buyouts,structure relocations,demolition
34
ENVIRONMENTAL COMPLIANCE
35
ENVIRONMENTAL CONSIDERATIONS
The Alaska District has engaged in informal consultation
with the Services to date
Mitigation measures for marine mammals
No significant habitat issues
Bluff erosion will have impacts on cultural resources
36
CULTURAL RESOURCE CONSIDERATIONS
Alternatives that do grade the bluff
Known cultural resources and 13 additional historic
bldgs.
Evaluation for eligibility for listing on the NRHP
Mitigating cultural resources = full salvage recovery
operations and Historic American Building Survey
Alternatives that do not include grading the
bluff
No adverse effect on cultural resources
Alaska State Historic Preservation Officer concurrence
37
ECONOMICS
National Economic Development (NED)
analysis
No NED plan
Section 116 of Implementation Guidance:
Cost Effectiveness/Incremental Cost Analysis
(CE/ICA)
Least Cost Alternative
38
NED ANALYSIS SUMMARY
39
Alt 2 Alt 3 Alt 4 Alt 5 Alt 6
Average Annual
OMRR&R $5.4M $59,000 $57,000 $57,000 $0
Criteria Alt 2 Alt 3 Alt 4 Alt 5 Alt 6
Total PV Benefits $22.3M $23.1M $23.1M $22.3M $9.5M
Total Project Costs $592M $54.5M $58.1M $34.5M $40.4M
Avg. Annual Costs $22.5M $2.1M $2.2M $1.3M $1.5M
Avg. Annual Benefits $846,000 $877,000 $877,000 $846,000 $361,000
B:C Ratio 0.04 0.42 0.40 0.65 0.24
Net Annual Benefits -$21.6M -$1.2M -$1.3M -$463,000 -$1.7M
CE/ICA SUMMARY
40
Criteria Represent:
Study objectives of protecting structures, infrastructure
and cultural resources
Public significance
Social and cultural value to community
Stability for future community planning
Public health and safety
However, CE/ICA does not fully encapsulate damages
prevented nor provide enough granularity to choose a plan.
Criteria Alt 2 Alt 3 Alt 4 Alt 5 Alt 6
Stabilized Bluff Parcels 31 27 27 31 0
Average Annual Cost $22.5M $2.1M $2.2M $1.3M $1.5M
Average Annual Benefit $846,000 $877,000 $877,000 $846,000 $361,000
LEAST COST ALTERNATIVE
41
Criteria Alt 2 Alt 3 Alt 4 Alt 5 Alt 6
Avg. Annual Costs $22.5M $2.1M $2.2M $1.3M $1.5M
Avg. Annual Benefits $846,000 $877,000 $877,000 $846,000 $361,000
B:C Ratio 0.04 0.42 0.40 0.65 0.24
Net Annual Benefits -$21.6M -$1.2M -$1.3M -$463,000 -$1.7M
Stabilized Bluff
Parcels 31 27 27 31 0
•Alternative 5 is the least cost plan among plans with similar benefits.
•Alternative 5 costs approximately $20M less than any other alternative.
SELECTED ALTERNATIVE
Alternative 5: Protective Berm at the Bluff Toe
Allows bluff to reach a stable slope over time
naturally by:
Protecting toe from further erosion at floodtides
Allowing soil to accumulate between bluff and berm
No cutting or filling of the bluff face
No adverse effects to cultural resources (SHPO
concurrence)
Continued coordination on IHA for Harbor Seals
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CONSTRUCTION CONSIDERATIONS
Alternative 5 Protective Berm
Ice can close the river to vessel traffic
Tidal fluctuations will affect work schedule
Soils with high pore pressure can
hamper heavy equipment access
Access to the site is limited by
•Tidal fluctuation
•Material at the base of the bluff
•Privately owned RE at the top of the bluff
•Storm events
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FCSA Signed
Alternatives Milestone
Study Fully Funded
Tent. Selected Plan Mtg.
TSP Milestone
Concurrent Review
Agency Decision M/S
DE Transmittal Letter
Signed Directors Report
12 May 15
13 May 15
**Pending**
17 Feb17
09 May 17
16 Jun 17
31 Oct 17
31 Jan 18
30 Apr 18
Cost-Shared Feasibility $1.12-1.22M (est.)
~50%Fed-*50%Sponsor
Allocated:
Federal $454,919.18
Sponsor $560,000.00
Study Funds Available: $909,838.36
(limited to 2x FED since Federal funding lags Sponsor)
Expended to Date: $813,787.48
Available to Obligate: $96,050.88
*Sponsor has fully funded their share of
the higher study cost estimate
Kenai River Bluff Erosion Feasibility Study
Cost & Schedule
Updated: 29 Jun 2017
PATH AHEAD
Concurrent Review –16 June 2017
Comments due by: 21-Jul-2017
http://www.poa.usace.army.mil/Library/
Reports-and-Studies/
Resolve Issues Raised During Reviews
Agency Decision –31 Oct 2017
Director ’s Report –30 April 2018
45
COMMENTS AND QUESTIONS?
46
http://www.poa.usace.army.mil/Library/Reports-and-Studies/