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HomeMy WebLinkAbout1979-11-07 Council PacketCOUNCIL PACKETS 117q NOVEMBER Kenai City Council Meeting Packet November 7, 1979 0 E r >/ y 00, y Y vI yl x Y Y x y Y yIi y y i y v C-£ y ate. 4 AI �/ y v y V /, FIX y y l it )/ y Al x l y yl� y yy,y y y�j�, ly y Y �y y x y N/ y yl yly yly i Y y Y--Y y X _ I �I I i I l i 1 1 i F , AGENDA KENAI CITY COUNCIL - REGULAR MEETING NOVEMBER 1, 1979 - 7:00 P.M. PUBLIC SAFETY BUILDING PLEDGE OF ALLEGIANCE A. ROLL CALL - ;1-0 J, ' '' Yam' AGENDA APPROVAL B. BPUBLIC HEARINGS L r ' A A� 1. Ordinance 529-79. increasing estimated revenues and appropriations in the special revenue fund entitled "Kenai Senior Citizen Project - - FY 1979-80 in recognition of a grant from the State of Alaska �. 2. Ordinance 530-79, increasing estimatad revenues and appropriations In the capital project fund entitled "Willow Street Luminaires" by $13,042 3. Ordinance 531-79, amending the leasing of airport lands ordinance 4. Ordinance 532-79, establishing a procedure for the leasing of tidelands C PERSONS PRESENT SCHEDULED TO BE HEARD 1. Representatives of Coopers & Lybrand, CPA's 0. MINUTES 1. Minutes of the regular meeting of October 17, 1979 2. Minutes of the special meeting of October 23, 1979 3. Minutes of the special meeting of October 27, 1979 E. CORRESPONDENCE F. OLD BUSINESS _ G. NEW BUSINESS 1. Bills to be paid - Bills to be ratified 2. Requisitions exceeding $500 - 3. Ordinance 533-79, increase in revenues, Federal Revenue Sharing in the amount of $306,750 4. Ordinance 534-79, increase in revenues, shop addition capital project fund in the amount of $47,298 _. 5. Ordinance 535-79, increase in revenues, 1979-80 anti -recession i assistance fund in the amount of $5,000 6. Ordinance 536-79. amending 1979 Code, establishing Kenai Muni- ' cipal Library 7. Ordinance 537-79. 1979 Code, codifying personnel ordinance of City as Title 23 8. Resolution 79-145. transfer funds in the $400 of amount of - general fund — 9. Resolution 79-146, transfer of Funds in the amount of $500 - airport terminal enterprise fund 10. Resolution 79-147. transfer of funds in the amount of $750 - jail - = > t� fund budget 11. Resolution 79-148, transfer of funds in the amount of $9,000 - - 7 g to q general fund 12. Resolution 79-149, authorizing contract for architectural/engineer- ing for i 7 design city administration building between City of Kenai and - i arman Gintoii, architect 1. Lease of airport land or facilities - Raven Transit 14. Payments to USKH - Kenai Aerial Photo/Map ra I 15. Payment to Tolchina Excavating & Construction - installation of street sign names 16. Payments to CH2M Hill - Sewerage Projects design 1� 7 I �.�rs-r•^- - -ate-:- � � -- I .r- S, •I i t t� AGENDA 1 KENAI CITY COUNCIL NOVEMBER 7, 1979 Page 2 17. Payments to CH2M Hill - Central Peninsula Septage Disposal study 18. Games of Chance 3 Skill - Beta Sigma Phi International H. REPORTS 1. City Manager 2. City Attorney 3. Mayor 4. Clerk S. Finance Director 6. Planning & Zoning Commission 7. Kenai Peninsula Borough Assembly S. Harbor Commission I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD i ADJOURNMENT ; i� i it tl i i v CITY OF KENAI ORDINANCE NO. 529-79 _ AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI INCREASING ESTIMATED REVENUES AND APPROPRIATIONSS IN THE SPECIAL REVENUE FUND ENTITLED "KENAI SENIOR CITIZEN --.. PROJECT FY 1979-80" IN RECOGNITION OF A GRANT INCREASE FROM STATE OF ALASKA. WHEREAS, the State of Alaska, Office on Aging, has increased the Title III grant for FY 1979-80 to the City of Kenai by $3,650 (from $25,200 to $28,850), and WHEREAS, the City administration desires that these funds be used to reduce the City of Kenai match for shop services in the amount of $3,000 and to increase machinery and equipment for the purchase of a sewing machine in the amount of $650, and I WHEREAS, proper accounting practices require that all appropriations of City monies be made by ordinance. - NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimate revenues and appropriations in the special revenue fund entitled "Kenai Senior Citizens Project FY 1979-80" be increased (decreased) as follows: Increase (decrease) estimated revenues: State of Alaska - Kenai Senior Citizens Project, Title III $ 3,650 Shop services (in -kind) 3.00 $ 650 Increase appropriations: Machinery & Equipment $ 650 PASSED BY THE COUNCIL OF KENAI this 7th day of November,"1979. Attest: INCENT O'REILLY, MAYOR City Clerk Approved by Finance Director::::;:;,,.!' FIRST READING: October 17, 1979 SECOND READING: November 1, 1979 EFFECTIVE DATE: November 7, 1979 f CITY OF KENAI ORDINANCE NO. 530-79 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE CAPITAL PROJECT FUND ENTITLED "WILLOW STREET LUMINAIRES" BY $13,042. WHEREAS, the City of Kenai, by Ordinance No. 507-79, has appropriated $75,000 of 1974 Refunded Street Bond monies for the installation of luminaires along Willow Street, and WHEREAS, those bond monies were to be combined with $60,000 of Local Service Roads and Trails (LSR&T) program funds to provide $135,000 as the estimated cost of the project, and WHEREAS, the low bid, as negotiated, for the project is $155,000, and WHEREAS, Council desires that we proceed with the project and that existing LSR&T monies of $6,958 be used as well as $13,042 of bond monies to provide the additional $20,000 needed,and WHEREAS, proper accounting practices require that all appropriations of City monies be made by ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA as follows: Section 1: The City Administration be directed to request the State of lasA ka to increase the amount of Local Service Roads & Trails funds applicable to this project by $6,958 -- to a total of $66,958, and Section 2: Estimated revenues and appropriations in the capital project fund entitled "Willow Street Luminaires" be increased as follows: Increase Estimated Revenues: 1974 Refunded Bonds (Streets) $13,042 Increase Appropriations: construction $13,042 PASSED BY THE COUNCIL THIS 7th day of November, 1979 . Attest: City Clerk Finance Director Approval: VINCENT 0-REILLY, MAYOR FIRST READING: October 17, 1979 SECOND READING: November 7, 1979 EFFECTIVE DATE: November 7, 1979 CITY OF KENAI ORDINANCE NO. 531-79 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA i AMENDING THE LEASING OF AIRPORT LANDS ORDINANCE. i WHEREAS, the City presently has an airport lands leasing ordinance codified in 21.10.010, et seq of the 1979 Kenai Code, and i WHEREAS, the codified code revision of this ordinance should be amended to reflect certain additions within the body of the ordinance contained in new airport lands leases which were - = omitted from the pre -code airports ordinance and also to insert sections of the pre -code airports lands ordinance which are I not contained in the codified revision. NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA AS FOLLOWS: Section 1: Section 21.10.010 to and including ,-1 21.20.020 of the 1979 Kenai Code are hereby repealed. J Section 2: A new 21.10.010 to and including 21.20.730 of the 1979 Kenai Code is hereby adopted in the form as attached hereto and made a part hereof. s PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 7th day of November, 1979. VINCENT O'REILLY, MAYOR First Reading: October 17, 1979 Second Reading: November 7, 1979 Effective Date: December 7, 1979 a . c Title 21 CITY AIRPORT AND AIR?ORT LANDS Chapters:. 21.05 Airport Administration and Operation 21.10 Leasing of Airport Lands 21.15 Provisions Required in All Airport hand Leases 21.20 Policy Governing Modifications of Existing Leases 21.05.010 AIRPORT ADMINISTRATION & OPEPATION; Permit: 1. All lessees, owners or occupants of property within the territorial jurisdiction of the Kenai Municipal Airport who wish to construct or operate terminal or transportation facilities of any kind thereon, including, but not limited to, aircraft maintenance facilities, warehouses and all other related transportation, commercial or industrial facilities shall apply to the City Administrator for au- thorization. Such application shall be accompanied by a plan of the proposed construction that shall meet all standards or requirements which may be required by the ordinances of the City of Kenai relating to zoning, sub- r division regulations and.building construction standards. 2. The City Adminiktrator shall refer plans of the type or location of the proposed construction which are in conflict with the General Plan to the Planning Commission to determine whether such proposed construction is in keeping with the objectives of the General Plan. The decision of the Planning Commission shall be binding unless reversed by the Council. The City Administrator, subject to conditions of this section, may issue permits upon Such terms and conditions and for such durations as authorized by the Council, and no construction shall be done nor operation carried on without a permit from the City Administrator. 3. Every permit, lease, deed or conveyance of any right, title or interest from the City to any land within the jurisdiction of the Kenai Municipal Airport shall incorporate by reference, or otherwise, and shall be subject to the restrictions contained in this section of the 1963 Kenai Code. (KC 17-23) 21.05.020 Investigation of Per -tit Holders; Cancellation: The City Administrator may inquire into the manner in which obligations are carried out, and the practices of permit holders for the purpose of determining whether the pro- visions of the permits are being complied with. This section shall authorize access to boors and records o: perr.;it :polders 21-1 - "t+ v =r- as may be reasonably necessary to enable making a deter- mination thereunder. Should the City Administrator find that at any time a permit holder is not complying with the terms of the permit issued, the permit may be cancelled upon notice and in accordance with such procedure as may, by regulation, be.prescribed. (NC 17-24) 21.05.030 Regulation of Airport: The City Adminis- trator may regulate the manner in which the Kenai Airport and compatible non -aviation facilities are operated with reference to the safety, accommcdation and service to the public. In order to implement this grant of authority, the City Administrator shall have the power to adopt such rules and regulations as may be necessary to carry out the: duties under this grant. In this connection, the rules and regu- lations adopted prior to the enactment of this addition to the 1963 Kenai Code are hereby ratified, and approved and continued in full force and effect until further amended or repealed by subsequent action of the City Administrator in accordance with acceptable procedures for the adoption of rules and regulations. (KC 17-25) (See Appendix A attached hereto) 21.05.040 Parking Automobiles and Aircraft: It shall be unlawful for any person to park any automobile or air- craft in any area contrary to the designation for that area on the Kenai Municipal Airport, the lands of the Kenai Municipal Airport Terminal System, or fail to obey the proper regulations for the control of ground traffic as established by the Airport Manager or his designated rep- resentative. Said Airport Manager or his designated rep- resentative shall be vested with full police powers under the authority of this City to endorse the provisions of this section. (KC 17-34) 21.05.050 Penalties: Any person violating any of the provisions of this chapter or any of the rules, regulations or orders made and issued under this chanter is guilty of a misdemeanor, and upon conviction, is punishable by a fine of not more than $100. (Ord 263) 21.10.010 LEASING OF AIRPORT LAUDS; Lands Available for Leasing: All the Airport lards within the limits o: the City to which the City holds title may be leased as he rein - after provided. 21.10.020 Qualifications of Arrlicants or Bidders: An applicant or bidder for a lease is quali:ied if the applicant or bidder: 1. is an individual at least 19 ;'ears of a;e or o,•er; or 21-2 I 2. is a group, association or corporation which is authorized to conduct business under the laws of Alaska; or 3. is acting as an agent for another and has qualified by filing with the City Clerk a proper Power of Attorney or a Letter of Authorization creating such agency. The agent shall represent only one principal to the exclusion of himself. The term "agent" includes real estate brokers and agents. 21.10.030 Applications: All applications for lease of lands shall be filed with the City Clerk on forms provided by the City available at City Hall. Applications shall be dated on receipt and payment of filing fee. After filing, a maximum of 30 days shall be allowed to complete the appli- cation. Filing fees are not refundable. With every application the applicant shall submit a development plan, showing and stating: (a) the purpose of the proposed lease; (b) the use, value and nature of improve- ments to be constructed; (c) the type of construction; (d) the dates construction is estimated to commence and be completed (maximum of 2 years); and, (e) whether intended use complies with the zoning ordinance and comprehensive plan of the City, Applications shall become a part of the lease. 21.10.040 Rights Prior to Leasing: The filing of an application for a lease shall give the applicant no right to lease or to the use of the land applied for. The appli- cation shall expire within 6 months after the application has been made if a lease has not been entered into between the City and the applicant by that time. Lease rates are subject to change on the basis of an appraisal done every 6 months on the property applied for. 21.10.050 Classification Prior to Lease Reguired: Except for concept lease applications described in the section below, before accepting applications to lease lands the area involved shall have first been classified for permitted land uses and a laird use plan of the area prepared and publicly posted in the City Hall offices. The land use plan shall be prepared by the City Planning Comission and approved by the Council prior to posting. The availability of concept leases shall be made,known in the posting. 21.10.060 Processing Procedure: 1. Applications shall be forwarded to the Advisory Planning and Zoning Commission upon receipt. The Advisory Planning and Zoning Commission shall normally consider applications for specific lands on a first -come, first -serve basis. Where there is difficulty in obtaining a perfected application, details as to development plans, etc., then the Advisory Planning and Zoning Commission may, after due notice to the first ap- plicant, consider a second applicant for the particular lease. 2. The City Council shall normally review a lease proposal only after approval of the Advisory Planning and Zoning Commission. However, appeals of Advisory Planning and Zoning Commission disapproval may be made to the City Council. Completed, signed leases must be presented within 30 days after approval by the Advisory Planning and Zoning Commission. ?t.i 3. Conceptual applications relative to unplatted land and/or unreleased lands will also be considered on a first - come, first -serve basis. On approval of concept by the Advisory Planning and Zoning Commission and the City Council, the applicant is assured the right of first refusal of the lease following the determination of a lease rate in ac- cordance with established policy. 21.10.070 Review: No leased land may be changed in use, nor may any renewal lease be issued until the proposed use or renewal has been reviewed by the Planning Commission and approved by the Council. 21.10.080 Terms of Lease: All leases shall be approved by the City Council be of re the same shall become effective. The term of any given lease shall depend upon the durability of the pruposed use, the amount of investment in improvement proposed and made, and the nature of the improvement proposed with respect to durability and time required to amortize the proposed investment. 21.10.090 Appraisal: No land shall be leased, or a renewal lease issued, unless the same has been appraised within a 6 month period prior to the date fixed for beginning of the term of the lease or renewal lease. No land shall be J leased for less than the approved appraised annual rental. Appraisals shall reflect the number and value of City services rendered the land in question. 21.10.100 Annual Minimum Rental: Annual minimum rentals shall be computed from the approved appraised market value utilizing the method as described in section (a) below. Annual minimum rental shall include: (a) Taxes pertaining to the leasehold interest of the Lessee. (b) Sales tax now enforced or levied in the future computed upon rent payable in monthly installments whether rent is paid on a monthly or yearly basis. (c) All taxes and assessments levied in the future by the City of Kenai, as if Lessee was considered the legal owner of record of the Leased Property. (d) Interest at the rate of 8% per annum and 10% penalties of any amount of money owed under this lease which is not paid on or before the date it becomes due. (e) All sales taxes due on payments under this lease and to all sales tares applicable to its operations. (f) All special assessments for public improvements levied by the City of -Kenai, as if Lessee were considered legal owner of leased property. 2. Upon execution of the lease the lands demised become taxable to the extent of its leasehold interest and 21-4 0 Lessee shall pay all rent property taxes levied upon such �.. leasehold interest in these lands, that the City as part of the payment by the lessee of said assessments and taxes as if he were the owner of said demised land. 3. Rent shall be paid annually in advance. Said payments shall be prorated to conform with the City of Kenai's fiscal year beginning July 1 and ending June 30. If the equivalent monthly payment exceeds $200, then the lessee shall have the option of making payments on a monthly or quarterly basis. 21.10.110 Service by Realty Firms and Brokers: 1. Realtors shall be entitled to a fee at the time the first payment is made under such lease. Said fee shall be limited to 10% of the first year's lease rate, excluding charges for assessments, or 5% of each year for the first 5 years at the broker's option. However, realtors a party to the lease shall not be entitled to a commission. 2. Realtors shall treat any listing as they would any other client in regard to advertising, promotion, etc. 3. Listings of platted lands available for lease shall be announced and posted publicly. Such announcements shall include black and lot number, parcel number and any special limitations with restrictions as may be imposed by the Advisory Planning and Zoning Commission and City Council. Such restrictions or limitations shall be specific and in addition to zoning restrictions. No lease proposed by an eligible realtor shall be denied if it meets such restric- tions, applicable lease rates and zoning requirements in effect at time of application. 4. Unplatted, released Airport lands and unreleased lands shall not be listed with realtors. However, unless positive action has been taken by the Advisory Planning and Zoning Commission and/or the City Council to set aside a certain tract as not available for lease at that particular time, a realtor may, on behalf of a client, request a lease of such lands. Such a lease request shall be considered as described in the preceding application procedures, relating to unplatted, unreleased lands. Normal fees shall be due to the realtor on consummation of such a lease. 21.10.120 Bidding Procedure: As an exception to general policy listed above, the City Council may designate a specific lot or lots to be made available only for bid. This provision shall apply only when there is no outstanding application pending on the lot or lots. As designated, sealed bids shall be received offering a one-time premium in addition to the established lease rate. Highest bid, how- ever, shall be subject to all provision:; of review and approval established for all other lease applications. i -i 21-5 1 a a r R 11 -`i 21.10.130 Principles and Policy of Lease Rates: 1. A fair return to the Airport System is mandated by the terms and conditions of the quitclaim deed and appropriate deeds of release, granting these lands to the Airport System by the Federal Government. To insure a fair return, all leases for a period in excess of 5 years shall include a redeter- mination clause as of the fifth anniversary of each lease, normally set for the Ist of July of that fifth year. In pursuing a fair return, all lands for lease shall be appraised prior to lease and again prior to redetermination. There- fore, lease rates shall be based on: (a) fair market value of the land, including an appropriate consideration of facilities and services available (public water, public sewer, storm sewers and other public utilities) as deter- mined by a qualified independent appraiser, considering the best use of the specific land; and (b) the actual rate of return determined to be a fair return to the City shall be set annually in May by resolution of the City Council and shall apply to all leases thereafter requested. 2. Realizing that investors, developers and other potential lessees need a reasonable assurance of stability in future lease rates, the redetermination clause of all future leases shall include the following language: "At each 5-year interval, the fair market value shall be determined by qualified, independent appraisers. The redetermined lease rate, (annual rent) under this provision shall be limited to a 50% increase in the prior lease rate until the 30th year anniversary of the lease after which the 50% cap provision shall no longer apply and the lease rate shall be redetermined every 5 years on the basis of fair market evaluation as deter- mined in Section 080(1)(a) and W ." City leases existing at the time of the enactment of this chapter shall have a 30 year period determined from the date from which the lease was originally entered into. 3. Recognizing that the redetermination procedure provided for above may be in conflict with the mandate of the quitclaim deed and the several deeds of release, the City Council herein acknowledges its obligation to provide the Airport Fund with those sums which the above redeter- mination policy may cause the Airport Fund to lose. It is the intent of the Council to provide for such a possible shortfall by appropriating revenues relative to the assessed valuation of Airport properties. 4. Those leases existing at the time of the effective date of this chapter in which the lease rate has not been redetermined at its previous 5 year interval, may be redeter- mined at their next 5 year period, utilizing the 50% cap provision of Section 21.05.130(2), on the basis of the 1977 property appraisal (gauged at 6% return) performed by the City on the lots in question. 21-6 N /I1 21.15.140 PROVISIONS REQUIRED; Proper Location: It shall be the responsibility of the lessee to properly locate himself and his improvements on the leased land. It shall be unlawful to encroach on other lands of the City, or on lands owned or leased by another, and violation shall constitute a misdemeanor. 21.15.150 Responsibility to Properly Locate: It shall be the responsibility of the lessee to properly locate himself and his improvements on the leased land. It shall be unlawful to encroach on other lands of the City, or on lands owned or leased by another. 21.15.160 Lease Utilization: Leased lands shall be utilized for purposes within the scope of the application, the terms of the lease and in conformity with the ordinances of the City and Borough, and in substantial conformity with the comprehensive plan. Utilization or development for other than the allowed uses shall constitute a violation of the lease and subject the lease to cancellation at any time. Failure to substantially complete the development plan of the land, consistent with the proposed use anO terms of the lease, shall constitute grounds for cancellation. 21.15.170 Payment of -Rent: Rent shall be paid annually in advance. Said payments shall be prorated to conform with the City of Kenai's fiscal year beginning July 1 and ending June 30. If the equivalent monthly payment exceeds $200, then the lessee shall have the option of making payments on a monthly or quarterly basis. 21.15.180 Adjustment of Rental: All leases shall contain the agreement of the lessee to a 'reevaluation of the annual rent payment every fifth year. 21.15.190 Subleasing: Leases may provide for sub- leasing without prior Council approval. Subleases shall be in writing and be subject to the terms and conditions of the original lease. 21-15.200 Assignments: No lessee may assign the lands leased to him without prior Council approval. The assignee shall be subject to all of the provisions of the lease. Any attempted assignment made in violation of this section shall be void. Any assignment requiring Council approval will not be unreasonably denied. -`--'j� 21.15.210 Modification: No lease may be modified orally or in any manner other than by an agreement in writing, signed by all parties in interest or their successors in interest. Any such modification shall require Council ' approval. 21-7 A „ - I -"- _ 21.15.220 Cancellation -Forfeiture: 1. Leases in good standing may be cancelled in whole, or in part, at any time upon mutual written agreement by lessee and the City Council. 2. Any lease used for an unlawful purpose may be cancelled. 3. If the lessee shall default in the performance or observance of any of the lease terms, covenants or stipula- tions thereto, or of the regulations now or hereafter in force, and should said default continue for 30 calendar days after service of written notice by the City without remedy by lessee of the conditions warranting default, the City shall subject lessee to appropriate legal action, including, but not limited to, forfeiture of the lease. No improve- ments may be removed by lessee or other person during any time the lessee is in default. This provision shall not be construed to prohibit the City from taking any appropriate legal action, including, but not limited to, forfeiture of the lease, immediately upon the occurrence of a default. 21.15.230 Notice or Demand: Any notice or demand which under the terms of a lease or under any statute must be given or made by the parties thereto, shall be in writing and be given or made by registered or certified mail, ad- dressed to the other party at the address of record. How- ever, either party may designate in writing such new or other address to which such notice or demand shall there- after be so given, made of mailed. A notice given hereunder shall be deemed delivered when deposited ir.• a U.S. general or branch post office, enclosed in a registered or certified mail envelope, addressed as hereinabove provided. 11.20.250 Financing-Ri hts of Mortgagee or Liepholde: r 1. For the purpose of interim or permanent financing or refinancing from time to time of the,improvements to be placed upon the leased premises, and for no other purpose, a lessee, after giving written notice thereof to the City, may encumber by mortgage, deed of trust, assignment or other appropriate instrument, the lessee's interest in the leased premises and in and to the lease, provided such encumbrance pertains only to such leasehold interest and does not pertain to or create any interest in the City's title to the leased premises. If such mortgage, deed of trust, or assignment shall be held by a bank or other established lending or financial institution (which terms shall include an established insurance company and qualified pension or profit sharing trust) and such institution shall acquire the lessee's interest in such lease as a result of a sale under said encumbrance pursuant to a foreclosure 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, such lending institution shall have the privilege of transferring its interest in 21-8 S Y ' a 0 such lease to a nominee or a wholly owned subsidiary corporation with the prior consent of the City, provided, however, such transferee shall assume all of the covenants and conditions required to be performed by the lessee, whereupon such lending institution shall be relieved of any further liability under such lease from any after such transfer. Such lending institution or the nominee or wholly owned subsidiary corporation to which it may have transferred such lease, or any other lending institution which may at any time acquire such lease, shall be relieved of any further liability under such lease from and after a transfer of such lease. 2. A leasehold mortgagee, beneficiary of a deed of trust or security assignee, shall have and be subrogated to any and all rights of the lessee with respect to the curing of any default hereunder by lessee. 3. If the holder of any such mortgage, or the beneficiary of any such deed of trust, or the security assignee shall give the City before any default shall have occurred in the lease, a written notice containing the name and post office address of such holder, and City shall thereafter give to such holder a copy of each notice of default by the Lessee at the same time as any notice of default shall be given by the City to the lessee, and the City will not thereafter accept any surrender or enter into any modification of this lease without the prior written consent of the holder of any first mortgage, beneficial interest under a first deed of trust, or security assignee, in this lease. 4. If, by reason of any default of the lessee, either this lease or any extension thereof shall be terminated at the election of the City prior to the stated expi;:ation therefor, the City will enter into a new lease with the leasehold mortgagee for the remainder of the term, effective as of the date of such termination, at the rent and additional rent, and on the terms herein contained, subject to the following conditions: (a) Such mortgagee, beneficiary or security assignee, shall make written request to the City for such new lease within 20 days after the date of such termination and such written request shall be accompanied by a payment to the City of all sums then due to the City under the lease. (b) Such mortgagee, beneficiary or security assignee, shall pay to the City, at the 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 City shall have been subjected by reason of such default. (c) Such mortgagee, beneficiary or security assignee shall, on or before the execution and delivery of such new lease, perform all the other conditions required to be performed by the lessee to the extent that the lessee shall have failed to perform such conditions. 21-9 1401 M i 5. If a lending institution or its nominee or wholly owned subsidiary corporation shall hold a mortgage, deed of trust, or*similar security interest in and to this lease and shall thereafter acquire a leasehold estate, derived either from such instruments or from the City, and if such institution, nominee, or -corporation shall desire to assign this lease or any new lease obtained from the City (other than to a nominee or to a wholly owned subsidiary corporation as permitted by the above provisions) to an assignee who will undertake to perform and observe the conditions in such lease required to be performed by the lessee, the City shall not unreasonably withhold its consent to such assignment and assumption, and any such lending institution, nominee, or subsidiary shall be relieved of any further liability under such lease from and after such assignment. If the proposed assignor shall assert that the City in unreasonably wiAhholding its consent to any such proposed assignment, such dispute shall be resolved by arbitration. 21.15.250 Entry and Re-entry: In the event that the lease should be terminated as hereinbefore provided by summary proceedings or otherwise, or in the event that the demised lands or any part thereof should be abandoned by the lessee during the said term, the lessor or its agents, servants or representatives may, immediately or any time thereafter, re-enter and resume possession of said lands or such part thereof, and remove all persons and property therefrom, either by summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefor. No re-entry by the lessor :hall be deemed an acceptance of a surrender of the lease. 21.15.260 Forfeiture of Rental: In the event that the lease should be terminated because of any,breach by the lessee as herein provided, the annual rental payment last made by the lessee shall be forfeited and retained by the lessor as partial or total liquidated damages for said breach. 21.15.270 Written Waiver: The receipt of rent by the lessor with knowledge of any breach of the lease by the lessee, or any default on the part of the lessee in obser- vance or performance of any of the conditions or covenants of the lease, shall not be deemed to be a waiver of any pro- visions of the lease. No failure on the part of the lessor to enforce any covenant or provision therein contained, nor any waiver of any right thereunder by the lessor, unless in writing, shall discharge or invalidate such covenants or 21-10 9 provisions, or affect the right of the lessor to enforce the same in the event of any subsequent breach or default. The receipt, by the lessor, of any rent or any other sum of money after the termination, in any manner, of the term therein demised, or after the giving by the lessor of any notice thereunder to effect such termination, shall not reinstate,•continue or extend the resultant term therein demised, destroy or in any manner impair the efficacy of any such notice or termination as may have been given thereunder by the lessor to the lessee prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by the lessor. 21.15.280 Easement Grants Reserved: City reserves the right to grant and control easements in, or above the land leased. No such grant or easement will be used that will unreasonably interfere with the lessee's use of the land, and lessee shall have free access and use of any and all parking and loading rights, rights of ingress and egress now or hereafter appertaining to the leased premises. 21.15.290 Lease Subordinate to Financing Requirements: Lessee agrees that City may modify the lease to meet revised 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 this lease, nor act to cause the lessee financial loss. 21.15.300 Surrender on Termination: Lessee shall, on the last day of the term of this lease or upon any earlier termination of this lease, surrender and deliver up the premises into the possession and use of City withoutr 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 City in writing, and free and clear of all liens and encumbrances other than those created by City for loans to the City. Upon the end of the term of this lease or any earlier termination thereof, title to the buildings, improvements and building equipment shall automatically vest in the City without requirement of any deed, conveyance or bill of sale thereon. However, if the City should require any such document in confirmation hereof, lessee shall execute, acknowledge and deliver the same and shall pay any charge, tax and fee asserted or imposed by any and all governmental units in connection therewith. 21-11 C E r r I 21;15.310 Sanitation: The lessee shall comply with all regulations or ordinances of the City which are promul- gated for the promotion of sanitation. The premises of the lease shall be kept in a neat, clean and sanitary condition, and every'e_`fort shall be made to prevent the pollution of water. 21.15.320': Building and Zoning Codes: Leased lands shall be utilized in accordance with the building and zoning ordinances and rules and regulations of said authority. Failure to do so shall constitute a violation of the lease. 1 21.15.330, Fire Protection: The lessee will take all reasonable precaution to prevent and take all necessary action to suppress destructive or uncontrolled grass, brush or other fires on leased lands, and comply with all laws, regulations and rules promulgated and enforced by the City for fire protection within the area wherein the leased premises are located. 21.15.346 Inspection: The lessee shall allow author- ized representatives of the City to enter the leased land for inspection at any reasonable time. 2� 15.350 oPersonal;Use of Materials: All coal, oil, gas an other minerals and all deposits of store or gravel valuable for extraction or utilization and all materials subject to Title II, Division I, Chapters 4, 5 and 6 of the Alaska Administrative Code are excepted from the operation of a surface lease. Specifically, the lessee of the surface rights shall not sell or remove for use elsewhere any ti:Ole r, stone, gravel, peat moss, topsoil or any other material valuable for building or commercial purposes; provided, however, that material required for the development of the leasehold may be used if its use is first approved by the City Manager. 21.15.360 Restrictions and Reservations: The lease shall contain such restrictions and reservations as are necessary to protect the public interest. 21.15.370 Waste and In'ury to Land: If any person shall com.'Ttit waste, trespass or other injury upon City land, the person so offending, in addition to being civilly liable for any damages eaus- cd, shall be deei:ied guilt.: of a mis- demeanor. 21.15.380 warranty: The City doss not warrant by its classificat-ion or ieusing of land that the lane: is ideally suited for the use a;; -horiz•2d under said class if: ica�;._n or 21-12 21.20.390 Rules: The lessee shall observe, obey and comply with all applicable rules, etc., of the State or Federal governments. 1. City reserves the right to adopt, amend and enforce reasonable rules and regulations governing the demised premises and the public areas and facilities used in connection therewith. Except in cases of emergency, no rule or regulation hereafter adopted or amended by the City shall become applicable unless it has been given 30 days notice of adoption or amendment thereof. 2. Lessee, in the conduct of its operations on the demised premises, shall observe, obey and comply with any and all applicable rules, regulations, laws, ordinances, or orders of any governmental authority, federal or state, lawfully exercising authority over lessee or lessee's conduct of its business. 3. City shall not be liable to lessee for any diminution or deprivation of possession, or of its rights hereunder, on account of the exercise of any such right or authority as in this section provided, nor shall lessee be entitled to terminate the whole or any portion of the leasehold estate herein created, by reason of the exercise of such rights or authority, unless the exercise thereof shall so interfere with lessee's use and occupancy of the leasehold estate as to constitute a termination in whole or in part of this lease by operation of law in accordance with the Laws of the State of Alaska and of the United States made applicable to ti the states. 21.20.400 Aircraft Operations Protected: 1. The City shall reserve to itself its successors and assigns, 'for the use and benefit of the public, a right og flight for the passage of aircraft in the airspace above the surface and all improvements approved by the City of the premises conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now or hereafter used for navigation of or flight in the air, using said airspace of landing at, taking off from, or operating on the Kenai Airport. (When plans for improvements pursuant to section 230 are approved by the City, the City to the extent of those improvements releases the easements here expressed.) 2. The lessee by accepting conveyance expressly agrees for itself, its representatives, successors, and assigns, that it will not erect nor permit the erection of any structure or object, on the land conveyed, which would be an airport obstruction within the standards established under the Federal Aviation Administration Regulations, Part 77, as amended. In the event the aforesaid covenant is breached, 21-13 j the city reserves the right to enter on the land conveyed hereunder and to remove the offending structure or object, all of which shall be at the expense of the lessee or its heirs, successors, or assigns. 21.20.410 Right to Enjoyment And Peaceable Possession: The City shall agree and covenant 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 enjoy the said leased premises, except that any inconvenience caused by public works projects in or about the leasehold premises shall not be construed as a denial of the right of quiet or peaceable possession. 21.20.420 Lessee To Pay Taxes: Lessee shall pay all lawful taxes and assessments which, during the term thereof may become a lien upon or which may be levied by the State, Borough, City or any other taxlevying body, upon any taxable possessory right which lessee may have in or to the reason of its use or occupancy, provided, however, that nothing herein contained shall prevent lessee from contesting as any other land owner any increase in such tax or assessment through procedures outlined in State statutes. 21.20.430 No Partnership or Joint Venture Created_: The City shall not be construed or held to be a partner or joint venturer of lessee in the conduct of business on the demised premises; and it is expressly understood and agreed that the relationship between the parties thereto is, and shall at all times remain that of landlord and tenant. 21.20.440 Default Bankruptcy: If the lessee shall make any assignment for the benefit of creditors or shall be adjudged a bankrupt, or if a receiver is appointed for the lessee or lessee's assets, or any interest under this lease, and if the appointment of the receiver is not vacated within 30 days, or if a voluntary petition is filed under Section 18(a) of the Bankruptcy Act by the lessee, then and in any event, the City may, upon giving the lessee 30 days' notice, terminate this lease. 21.20.45n Nondiscrimination: The lessee, for himself, his heirs, personal representatives, successors in interest, 21-14 i and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land, that: 1. No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of; or be otherwise subjected to discrimination in the use of said facilities; 2. In the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation, denied the benefits of, or otherwise be subjected to discrimination; 3. The lessee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally -assisted Programs of the Department of Trans- portation --Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended; 4. In the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease, for a purpose involving the provision of similar services or benefits, the lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of;Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally -assisted Programs of the Department of Trans- portation -- Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. 21.20.460 Partial Invalidity: If any term, provision, condition or part of the lease is 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 such declaration was not made. 21.20.470 Parole Modifications: It shall be mutually i understood and agreed between -he parties that the agreement, as written, shall cover all the agreements and stipulations i between the parties; and no representations, oral or written, i have been made modifying, adding to, or changing the terms ' i thereof. t i 21.20.480 Amendment of Lease: Notwithstanding anything I- to the contrary, in order to aid the lessee in the financing 21-15 J i of the improvements to be situated herein, the City shall agree that in the event the proposed mortgagee, beneficiary or security assignee under any interim or permanent loan on the security of the leasehold interest of the lessee and the improvements to be situated thereon so requires, the City will make a reasonable effort to amend this lease in order to satisfy such requirements upon the express condition and understanding, however, that such variance in language will not materially prejudice the City's rights thereunder nor be such as to alter in any way the rental obligations of the lessee hereunder nor its obligations to comply with all existing laws and regulations of the City relating to the leasing of airport lands, and to all applicable Federal statutes, rules, and regulations, and all covenants and conditions of the deed by which the City holds title to the land. 21.20.490 Compliance With Laws: Lessee shall comply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the leased premises or the sidewalks, alleys, streets, and way adjacent thereto or any buildings, structures, fixtures and improvements or the use thereof, whether or not any such laws, ordinances and regulations 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 harmless: 1. From the consequences of any violation of such laws, ordinances and/or regulations; and 2. From all claims for damages on account of injuries, death, or property damage resulting from such violation. Lessee further agrees it will not permit any unlawful occupation, business or trade to be conducted on said premises or any use to be made thereof contrary to any law, ordinance or regulation as aforesaid with respect thereto. 21.20.500 Care of Premises: Lessee, at its own cost and expense, shall keep the leased premises, all improvements which at any time during the term of this lease may be situated thereon, and any and all appurtenances thereunto belonging, in good condition and repair during the entire term of this lease. 21.20.510 Lessee's Obligation to Remove Liens: Lessee will not permnit any liens including, but not limited to, 21.16 11 - mechanics', laborers', or materialmen's liens obtainable or available under the then existing laws, to stand against the - = leased premises or improvements for any labor or material furnished to lessee or claimed to have been furnished to lessee or to lessee's agents, contractors, or sublessees, in connection with work of any character performed or claimed to have beqn performed on said premises or improvements by or at the direction or sufference of lessee, provided, however, 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. On final determination f of such lien or such claim for lien, 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. 21.20.520 Condemnation: In the event the leased 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 such condemnation, there shall be such division of the proceeds, such abatement in rent payable during the term or any extension of the term hereof, and such other adjustments as the parties may agree upon as being just and equitable under all the circumstances. = If the City and lessee are unable to agree within 30 days after such an award has been paid into court, upon what division, annual abatement in rent, and other adjustments -" are just and equitable, the dispute shall be determined by �. arbitration provided in section 660 hereof. 21.20.530 Protection of Subtenants: To protect the position of any subtenants) hereafter pfoperly obtaining i! any interests in the leasehold estate granted lessee hereunder, the City agrees that in the event of the cancellation, termination, expiration or surrender of this lease (the around lease), the City will accept the subtenant, its =.� successors and assigns, as its lessee for a period equal to the full elapsed portion of the term of the sublease, including any extensions or renewals thereof not exceeding the term of this lease, upon the same covenants and conditions therein ;--: lly contained, to the extent that said covenants and conditions are not inconsistent with any of the terms and conditions of this lease, provided such subtenant shall make full and f.: 4 complete attornment to the City for the balance of the term of such sublease so as to establish direct privity of estate and contract between the City and the subtenant with the same force and effect as though such sublease was originally 21-17 1 - ,I 0 4 made directly between the City and such subtenant; and further provided such subtenant agrees to comply with all the provisions of the ground lease and all the terms of any mortgage, deed of trust or security assignment to which such leasehold estate is subject, except the payment of rent under the ground lease and the payment of any debt service under any such mortgage, deed of trust or security assignment. 21.20.540 Successors In Interest: This lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations or assignment as are provided for herein. 21.20.550 Governing Law: The indenture of lease shall be governed in all respects by the laws of the State of Alaska. ^� 21.20.560 Notices: 1. Any notices required by the ..J lease shall be in writing. -and shall be deemed to be duly given only if delivered personally or mailed by certified or registered mail in a prepaid envelope addressed as follows: To City: City Hall -City of Kenai P 0 Box 580 Kenai, Ak 99611 To Tenant: The City shall also mail a copy of any notice given to the lessee, by registered or certified mail, to any leasehold lender (mortgagee, beneficiary of a deed of trust, security assignee) who shall have given the City notice of such mortgage, deed of trust or security assignment. 2. Any such addresses may be changed by an appropriate notice in writing to all other parties affected provided such change of address is given to the other parties by the means outlined in paragraph 1 above at least 15 days prior to the giving of the particular notice in issue. 21.20.570 Fire Protection: The lessee will take all reasonable precaution to prevei:t and take all necessary action to suppress destructive or uncontrolled grass, brush or other fires on leased lands, and comply with all laws, regulations and rules promulgated and enforced by the City for fire protection within the area wherein the leased premises are located. 21-18 I , 21.20.580 Inspection: The lessee shall allow authorized representatives of the City to enter the leased land for inspection at any reasonable time. 21.20.590 Personal Use of Materials: All coal, oil, gas and other minerals and all deposits of stone or gravel valuable for extraction or utilization and all materials subject to Title II, Division I, Chapters 4, 5 and 6 of the Alaska Administrative Code are excepted from the operation of a surface lease. Specifically, the lessee of the surface rights shall not sell or remove for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material valuable for building or commercial purposes; provided, however, that material required for the development of the leasehold may be used if its use is first approved by the City. 21.20.600 Restrictions and Reservations: The lease shall contain such restrictions and reservations as are necessary to protect the public interest. 21.20.610 Waste and Injury to Land: If any person shall commit waste, trespass or other injury upon City land, the person so offending, in addition to being civillf liable for any damages caused, shall be deemed gpilty of a misdemeanor. '21.20.620 Warranty: The City does not warrant by its classification or -leasing of land that the land is ideally suited for the use authorized under said classification or lease, and no guaranty is given or implied that it shall be profitable to employ land to said use. City bears no responsibility for any water erosion of land. 21.2Q,630 Approval of other Authorities: The issuance by the City of leases does not relieve the grantee or lessee of responsibility of obtaining licenses or permits as may be required by duly authorized Borough, State or Federal agencies. 21-19 0 J w -t 21.20.640 Title Restrictions: All leases or sales of property' shall be made subject to restrictions and reservations in the patent, deed or other instrument under which the City holds. 21.20.650 Insurance -Hold Harmless: Lessee shall covenant to save the City harmless from all actions, suits, liabilities, or damages resulting from or arising out of any acts of commission or omission by the lessee, his agents, employees, customers, invitees, or arising from or out of the lessee's occupation, or use of the premises demised, or privileges granted, and to pay all costs connected therewith. In this connection, the lessee shall agree to arrange and pay for all the following: 1. Public liability insurance protecting both the City and/or its agents and the lessee, such insurance to be evidenced by a certificate showing the insurance in force. The amount of such public liability insurance shall have limits not less than those known as $250,000/$5001000/$100,000. 2. Liquor liability (where applicable). 3. Lessee agrees to carry employer's liability insurance and Workmen's Compensation insurance, and to furnish a '1 certificate thereof to the City, if applicable. 4. Insurance contracts providing liability insurance and Workmen's Compensation shall provide for not less than - 30 days written notice to the City of cancellation or j expiration or substantial change in policy conditions and j coverage. I - 5. Lessee agrees that waiver of subrogation against - the City shall be requested of lessee's insuror, and shall be provided at no cost to the City. 6. Cross Liability: It is understood and agreed that the insurance afforded by this policy or policies for more than one named insured, shall not operate to increase the limits of the company's liability, but otherwise shall not operate to limit or void the coverage of any one named insured as respects claims against the same pained insured or employees of such other named insured. 7. The insurance procured by the lessee as herein required shall be issued in the name of the lessee and the City by a company licensed to do business in the State of `! Alaska, and shall contain endorsements that (a) such insurance may not be cancelled or amended with respect to the City without 30 days written notice by registered or certified mail to the City by the insurance company; and (b) Lessee h`I shall be solely responsible for payment of premiums and that City shall not be required to pay any premiums for such - — -' insurance. 21-20 8. The amount of insurance coverage required above may be subject to review for increase at each 5 year renegotiation of the lease. 9. Upon review by the City, the lessee may be required to obtain such other insurance protecting the City and lessee that may be necessarily required or advisable owing to the particularities of the harbor related activities on the lease hold interest. 21.20.660 Insurance of Users -Subtenants: Lessee, for its own protection, may require bona fide public users and subtenants to execute agreements holding lessee harmless from actions arising out of user's operations and may require such bona fide public users and subtenants to show proof of public liability insurance covering their operations on the demised premises in such amounts as will adequately protect them. 21.20.670 Annual Report: The lessee may be required to submit to the City each year on or about March 15, an annual report on its operations, particularly those services and facilities offered to the public, whether on a fee or non -fee basis. 21.20.680 Arbitration: In the event the City and lessee shall be unable to agree as to any matter provided for in the lease except as to the amount of the 5 year,.rent redetermination amount which is handled pursuant to section 180, such dispute shall be determined by 3•disinterested arbitrators, (unless the parties can agree on one arbitrator). Such arbitration shall be conducted upon request of either the City or the lessee, before 3 arbitrators (unless the City or the lessee agree to one arbitrator) designated by the American Arbitration Association and in accordance with the rules of such Association. The arbitrators designated and acting under this lease shall make their award in strict conformity with such rules and shall have no power to depart from or change any of the provisions thereof. The expense of arbitration proceedings conducted hereunder shall be borne equally by the parties. The proceedings shall take place in Kenai, Alaska unless otherwise agreed upon by the parties. 21-21 i I " . 21.20.690 Modifications of Existing Leases: Leases shall only be modified to that extent deemed to be necessary to protect the public's interest. 21.20.700 Unauthorized Removed of Material Prohibited: Any person, firm or corporation who without written authority from the City removes rock, gravel or other material from the lands owned by the City without the express consent of the City shall be deemed guilty of a misdemeanor. Any criminal action taken against such person shall not preclude the institution of civil proceedings by the City. 21.20.710 Removal Not Authorized By Lease: No deed or lease granted by the City to any person shall contain terms or be construed as granting any right to remove material from City lands. 21.20.720 Disposition of Rights By Council: In recognition that conditions may exist from time to time whereby use of such lands and the material comprising the same may be beneficial to the public interest and promote the progress and development of the City, applications for the use thereof may be received and considered by the Harbor Commission, providing such applications fully disclose to the City all material facts and plans for the proposed use. Such applications shall be consistent with the Comprehensive Plan of the City and referred to the City Planning Commission for its recommendations. Disposition of such applications shall be'made by the Council after recommendation from the Harbor Commission. 21.20.730 Penalties: 1. It is unlawful for any person to violate any of the provisions of this chapter and upon conviction thereof shall be fined in an amount not exceeding $100. Each day such violation is committed or permitted to continue shall constitute a separate offense and shall be punishable as such hereunder. 2. In addition to or as an alternative to the above penalty provision, the City may impose a civil penalty not to exceed $100 per day for the violation of any provision of this chapter and seek injunctive relief for any infraction thereof for which the offending party will be charged for reasonable attorney's fees and costs incurred by the City as 21-22 awarded by the court. 3. 'Nothing in this section shall be deemed to restrict the City's exercise of any of its rights pursuant to the lease agreement including those enumerated in section and he-reof. 21-23 CITY OF KENAI ORDINANCE NO. 532-79 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ESTABLISHING A PROCEDURE FOR THE LEASING OF TIDE LANDS. WHEREAS, the City of Kenai received title to tide and submerged lands within the City limits from the State on January 6, 1977, and -'-� WHEREAS, it is appropriate and in the P public interest that policies and procedures be developed for the leasing of said lands on a long term basis to individuals or entities who -- - will construct improvements or beneficial industries thereon, NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA as follows: Section 1: A new chapter 20 is added to Title 11 of the Kenai Code of 1979 (Harbor and Harbor Facilities) which chapter shall be called "Leasing of Tidelands" in the form as attached hereto and made a part hereof. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 7th day of November, 1979. VINCENT O-REILLY, MAYOR ATTEST: CitClerk 4 r: F, i. l' 1 A i First Reading: October 17, 1979 Second Reading: November 7, 1979 Effective Date: December 7, 1979 ' /~ LEASING OF TIDELANDS: 11.20.010 Policy: The City, in order to make sites available for beneficial industries, may lease City -owned tidelands to persons who agree to operate a beneficial industry upon the terms and conditions the Council considers advantageous to the City. 11.20.020 Lands Available for Leasing: All classified tide and contiguous submerged land within the limits of the City to which the City holds title may be leased as hereinafter provided, for surface use only, and under the condition that said lease is subject and inferior to preference right claims that may be made within a two year filing period for 4 preference rights and subject to the rights of existing set ' net site holders within the city limits. t 11.20.030 Qualifications of Applicants: An applicant { for a lease is qualified if the applicant (1) is an individual at least 19 years of age or over, or (2) is a group, association or corporation which is authorized to conduct business under the laws of Alaska. i 11.20.040 Classification Prior to Lease Required: Before accepting applications to lease tidelands, the�area involved shall have first been classified for leasing by the City Council with the approval of the Advisory Planning and j Harbor Commissions, and their availability advertised in a ±. newspaper of general circulation in the area once each week for 2 successive weeks not less than 30 days prior to the time set for the closing of the acceptance of applications,; and that all applications are available for public inspection i at the City Hall offices. �I i 11.20.050 Applications: All applications for lease of tidelands shall be filed with the Clerk on forms provided by her and available at City Hall which shall upon execution of €€' the lease become part of the lease document. Only forms ;1 �'s I completed -in full and accompanied by a $100 filing fee will —' be accepted for filing. Filing fees are not refundable. .� With every application the applicant shall submit a development ; plan showing and stating (1) the purpose of the proposed r / f 1 lease (2) the use, value and nature of improvements to be constructed (3) the type of construction and (4) dates construction is estimated to commence and be completed (5) whether intended use complies with the zoning ordinance and comprehensive plan of the City (6) describe by reference to the plat the area to be leased (7) a detailed financial plan showing ability to carry through with the development plan (8) a performance bond of 5s of the project's estimated cost (which bond shall not exceed $50,000) payable to the City. 11.20.060 Rights Prior to Leasing: Neither the filing of an application for a lease nor the holding of a public hearing thereon as provided below, shall give the applicant a right to a lease or to the use of the land applied for. Any use not authorized by a lease shall constitute a trespass against the City. 11.20.070 Procedure: 1. Advisory Planning and Zoning Commission: All lease applications shall be reviewed �-: first by the City of Kenai Advisory Planning & Zoning Commission to determine whether the contemplated use falls within that permitted under the zoning ordinance. 2. Advisory Harbor Commission: All lease applications shall be reviewed by the Advisory Harbor Commission. If the commission after considering the lease applications determines at a public hearing as set forth in the section below that any one lease will be in the best interests of the City of Kenai, the Commission may make a recommen4ation to the City Council of applicant along with any modifications or conditions recommended by the Commission. 3. City Council: The City Council shall make the final determination of the selection of the applicant based upon the Advisory Harbor Commission's recommendation and approve or reject the choice of application made. 11.20.080 Public Notice -Public Notice -Public Head: Notice of the lease application shall be published in a newspaper of general circulation within the City not less than 10 nor more than 30 days prior to the date of public hearing. The notice must contain the name of the applicant, a brief description of the land, proposed use, term, and a declaration that the Advisory Harbor Commission will consider the lease to the applicant on the basis of the applicant's agreement to operate a beneficial industry upon the terms and conditions 11-25 r i M as set forth in its application which is available for public inspection at the City Hall offices. The notice shall state the date upon which public hearing will be held before the Advisory Harbor Commission for consideration of the application. 11.20.090 Selection of Applicant: After the hearing provided in section 080 above, the Advisory Harbor Commission may make its recommendation of the applicant to the City Council if in the Advisory Harbor Commission's opinion, on the basis of all the testimony presented, the award of the prospective lease will be advantageous to the City and in the best interests of the public welfare, health and safety. In the alternative, the Advisory Harbor Commission may elect to make no recommendation for any applicant giving its reasons therefor. The Advisory Harbor Commission may impose additional conditions upon the applicant before making its award. The decision of the Council shall be posted on the City Bulletin Board the day after the hearing and remain posted for 10 days. 11.20.100 Appeal: Any person disagreeing with the decision of the Council may appeal the decision by filing suit in the Superior Court, Third Judicial District at Kenai, within 10 days from the date of the posting of Council's decision. 11.20.110 Appraisal and Survey of Leased Lands: The City will furnish a survey and appraisal of the land in question prior to leasing. Any resurveying or replatting required will be the applicant's responsibility and expense. 11.20.120 The Lease Document -Terms: Leases may be issued for a term of not less than 2 years nor more than 99 years. The applicant shall state in his application the term desired. In determining whether to grant a lease for the requested term, the Council shall consider the nature, extent and cost of the improvements which the applicant agrees to construct thereon as a condition of the lease the time required to amortize the proposed investment, the value of the applicant's proposed use to the economy of the City and other relevant factors. The term of the lease may be extended for a number of successive periods for a set number of years each as long as the appropriate extensions and original term do not exceed 99 years. 11-26 0 t , I. J :1 "-1 11.20.130 Appraisal: No land shall be leased, or a renewal lease issued, unless the same has been appraised within a six month period prior to the date fixed for beginning of the term of the lease or renewal lease. No land shall be leased for less than the approved, appraised annual rental, according to the method as described in section 150(1) below except to State or Federal agencies or their subdivisions if it is in the public interest to do so. Appraisals shall reflect the number and value of City services rendered the land in question. 11.20.140 Review: No leased land may be changed in use, nor may any renewal lease be issued until the proposed use or renewal has been reviewed by the Planning Commission and approved by the Council. 11.20.150 Annual Minimum Rental: 1. Annual minimum rentals shall be computed from the approved appraised market value utilizing the method as described in section 160(1) below. Annual minimum rental shall include: (a) Taxes pertaining to the leasehold interest of the Lessee. (b) Sales tax now enforced or levied in the future computed upon rent payable in monthly installments whether rent is paid on a monthly or yearly basis. (c) All taxes and assessments levied in the future by the City of Kenai, as if Lessee was considered the legal owner of record of the Leased Property. (d) Interest at the rate of eight percent (8%) per annum and ten percent (100) penalties of any amount of money owed under this Lease which is not paid on or before the date it becomes due. (e) All sales taxes due on payments under this lease and to all sales taxes applicable to its operations. (f) All special assessments for public improvements levied by the City of Kenai, as if Lessee were considered legal owner of leased property. 2. Upon execution of the lease the lands demised become taxable to the extent of its leasehold interest and lessee shall pay all real property taxes levied upon such leasehold interest in these lands, that the City as part of the consideration of rental payments depends and relies upon the payment by the lessee of said assessments and taxes as if he were the owner of said demised land. 3. Rent shall be paid annually in advance. Said payments shall be prorated to conform with the City of Kenai's fiscal year beginning July 1 and ending June 30. If 11-27 B the equivalent monthly payment exceeds $200, then the lessee n shall have the option of making payments on a monthly or quarterly basis. 11.20.160 Principles and Policy of Lease Rates: 1. To insure a fair return, all leases for a period in excess of 5 years shall include a redetermination clause as of the fifth anniversary of each lease, normally set for the 1st of July of that fifth year. In pursuing a fair return, all lands for lease shall be appraised prior to lease and again prior to redetermination. Therefore, lease raters shall be based on: (a) fair market value of the land, including an appropriate consideration of facilities and services available (public water, public sewer, storm sewers and other public utilities) as determined by a qualified independent appraiser, considering the best use of the specific land; and (b) the actual rate of return determined to be a fair return to the City shall be set annually by resolution of the City Council and shall apply to all leases thereafter requested. The evaluation shall discount not only structural improvements made to the land by lessee but improvements made by way of gravel or other approved fill placed on the land. 2. Realizing that investors, developers and other potential lessees need a reasonable assurance of stability in future lease rates, the redetermination clause of all future leases shall include the following language: "At each 5-year interval, the fair market value shall be determined by qualified, independent appraisers. The redetermined lease rate, (annual rent) under this provision shall be limited to a 50% increase in'the prior lease rate until the 30th year, anniversary of the lease after which the 50% cap provision shall no longer apply and the lease rate shall be redetermined every 5 years on the basis of fair market evaluation as deter- mined in Section 080(a)(a) and (b)." City leases of tidelands existing at the time of the enactment of this chapter shall have a 30 year period determined from the date from which the lease was originally entered into. 3. Failure by the City to insist upon renegotiation at the end of any given five-year period shall not constitute a waiver of the right of the City to insist upon renegotiation in any subsequent year, provided that neither the City nor the lessee shall have the right to insist upon renegotiation until 5 years shall have elapsed from the date the rental was last adjusted. 11-28 0 11.20.L70 Responsibility to Properly Locate: It shall be the responsibility of the lessee to properly locate himself and his improvements on the leased land. It shall be unlawful to encroach on other lands of the City, or on lands owned or leased by another. 11.20.180 Lease Utilization: Leased lands shall be utilized for purposes within the scope of the application, the terms of the lease and in conformity with the ordinances of the City and Borough, and in substantial conformity with the comprehensive plan. Utilization or development for other than the allowed uses shall constitute a violation of the lease and subject the lease to cancellation at any time. Failure to substantially complete the development plan of the land within the specified time from the date of execution of the lease, consistent with the proposed use and terms of the lease, shall constitute grounds for cancellation. The lease shall set forth in detail with appropriate plans and specifications the improvements to be made within the time -� period described above. 11.20.190 Subleasing: Leases may provide for subleasing a portion of the leased land without prior Council approval. Subleases shall be in writing and be subject to the terms and conditions of the original lease. No approval of the City shall be given to the sublease of property until the lessee has substantially complied with the development plan. 11.20.200 Assignments: Except for assignments for collateral purposes, no lessee may assign the lands leased to him without prior Council approval. The assignee shall be subject to all of the provisions of the lease. Any attempted assignment made in violation of this section shall be void. Any assignment requiring Council approval will not be unreasonably denied. 11.20.210 Modification: No lease may be modified orally or in any manner other than by an agreement in writing, signed by all parties in interest or their successors in interest. Any such modification shall require Council approval. 11-29 r� 11.20.220 Cancellation -Forfeiture: 1. Leases in good standing may be cancelled in whole, or in part, at any time upon mutual written agreement by lessee and the City Council. 2. Any lease used for an unlawful purpose may be cancelled. 3. It the lessee shall default in the performance or observance of any of the lease terms, covenants or stipulations thereto, or of the regulations now or hereafter in force, and should said default continue for 30 calendar days after service of written notice by the City without remedy by lessee of the conditions warranting default, the City shall subject lessee to appropriate legal action, including, but not limited to, forfeiture of the lease. No improvements may be removed by lessee or other person during any time the lessee is in default. This provision shall not be construed to prohibit the City from taking any appropriate legal action, including, but not limited to, forfeiture of the lease, immediately upon the occurrence of a default. 11.20.230 Default -Right Of Entry: Should default be made in the payment of any portion of the rent or fees when due or in any of the covenants or conditions contained in the lease or in any regulations now or hereinafter in force, then in such event the City shall give lessee 30 days after such written notice to cure such default or defaults, after which if the default is not cured, the City may terminate the lease, reenter and take possession of the premises, remove all persons therefrom. 11.20.240 Notice or Demand: Any notice or demand which under the terms of a lease or under any statute must be given or made by the parties thereto, shall be in writing and be given or made by registered or certified mail, addressed to the other party at the address of record. However, either party may designate in writing such new or other address to which such notice or demand shall thereafter be so given, made or mailed. A notice given%hereunder shall be deemed delivered when deposited in a U.S.'general or branch post office, enclosed in a registered or certified mail envelope, addressed as hereinabove provided. 11.20.250 Financing -Rights of Mortgagee or Lienholder: 1. For the purpose of interim or permanent financing or refinancing from time to time of the improvements to be placed upon the leased premises, and for no other purpose, a lessee, after giving written notice thereof to the City, may 11-30 encumber by mortgage, deed of trust, assignment or other appropriate instrument, the lessee's interest in the leased premises and in and to the lease, provided such encumbrance pertains only to such leasehold interest and does not pertain to or create any interest in the City's title to the leased premises. If such mortgage, deed of trust, or assignment shall be held by a bank or other established lending or financial institution (which terms shall include an established insurance company and qualified pension or profit sharing trust) and such institution shall acquire the lessee's interest in such lease as a result of a sale under said encumbrance pursuant to a foreclosure 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, such lending institution shall have the privilege of transferring its interest in such lease to a nominee or a wholly owned subsidiary corporation with the prior consent of the City, provided, however, such transferee shall assume all of the covenants and conditions required to be performed by the lessee, whereupon such lending institution shall be relieved of any further liability under such lease from any after such transfer. Such lending institution or the nominee or wholly owned subsidiary corporation to which it may have transferred such lease, or any other lending institution which may at any time acquire such lease, shall be relieved of any further liability under such lease from and after a transfer of such lease. 2. A leasehold mortgagee, beneficiary of a deed of trust or security assignee, shall have and be subrogated to any and all rights of the lessee with respect to the curing of any default hereunder by lessee. 3. If the holder of any such mortgage, or the beneficiary of any such deed of trust, or the security assignee shall give the City before any default shall have occurred in the lease, a written notice containing the name and post office address of such holder, and City shall thereafter give to such holder a copy of each notice of default by the Lessee at the same time as any notice of default shall be given by the City to the lessee, and the City will not thereafter accept any surrender or enter into any modification of this lease without the prior written consent of the holder of any first mortgage, beneficial interest under a first deed of trust, or security assignee, in this lease. 4. If, by reason of any default of the lessee, either this lease or any extension thereof shall be terminated at the election of the City prior to the stated expiration therefor, the City will enter into a new lease with the leasehold mortgagee for the remainder of the term, effective as of the date of such termination, at the rent and additional rent, and on the terms herein contained, subject to the f= following conditions: 11-31 a_ (a) Such mortgagee, beneficiary or security assignee, shall make written request to the City for such new lease within 20 days after the date of such termination and such written request shall be accompanied by a payment to the City of all sums then due to the City under the lease. (b) Such mortgagee, beneficiary or security assignee, shall pay to the City, at the 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 City shall have been subjected by reason of such default. (c) Such mortgagee, beneficiary or security assignee shall, on or before the execution and delivery of such new lease, perform all the other conditions required to be performed by the lessee to the extent that the lessee shall have failed to perform such conditions. 5. If a lending institution or its nominee or wholly owned subsidiary corporation shall hold a mortgage, deed of trust, or similar security interest in and to this lease and shall thereafter acquire a leasehold estate, derived either from such instruments or from the City, and if such institution, nominee, or corporation shall desire to assign this lease or any new lease obtained from the City (other than to a nominee or to a wholly owned subsidiary corporation as permitted by the above provisions) to an assignee who will undertake to perform and observe the conditions in such lease required to be performed by the lessee, the City shall not unreasonably withhold its consent to such assignment and assumption, and any such lending institution, nominee, or subsidiary shall be relieved of any further liability under such lease -from and after such assignment. If the proposed assignor shall assert that the City in unreasonably withholding its consent to any such proposed assignment, such dispute shall be resolved by arbitration. 11.20.260 Entry and Re-entry: In the event that the lease should be terminated as hereinbefore provided by summary proceedings or otherwise, or in the event that the demised lands or any part thereof should be abandoned by the lessee during the said term, the lessor or its agents, servants or representatives may, immediately or any time thereafter, re-enter and resume possession of said lands or such part -thereof, and remove all persons and property therefrom, either summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefor. No re-entry by the lessor shall be deemed an acceptance of a surrender of the lease. 11-32 M 11.20.270 Re -lease: In the event that a lease should be terminated as herein provided, or by summary proceedings, or otherwise, the Harbor Commission may offer said lands for lease or other appropriate disposal, pursuant to the provisions of this ordinance. 11.20.280 Forfeiture of Rental: In the event that the lease should be terminated because of any breach by the lessee as herein provided, the annual rental payment last made by the lessee shall be forfeited and retained by the lessor as partial or total liquidated damages for said breach. 11.20.290 Right of Inspection: City shall have the right at all reasonable times to enter the premises, or any part thereof, for the purposes of inspection. 11.20.300 Easement Grants Reserved: City reserves the -- right to grant and control easements in, or above the land leased. No such grant or easement will be made that will unreasonably interfere with the lessee's use of the land, and lessee shall have free access and use of any and all parking and loading rights, rights of ingress and egress now or hereafter appertaining to the leased premises. 0 11.20.310 Lease Subordinate to Financing Requirements: Lessee agrees that City may modify the lease to meet revised 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 this lease, nor act to cause the lessee financial loss. 11.20.320 Written Waiver: The receipt of rent by the lessor with knowledge of any breach of the lease by the lessee, or any default on the part of the lessee in observance or performance of any of the conditions or covenants of the lease, shall not be deemed to be a waiver of any provisions of the lease. No failure on the part of the lessor to enforce any covenant or provision therein contained, nor any waiver of any right thereunder by the lessor, unless in writing, shall discharge or invalidate such covenants or provisions, or affect the right of the lessor to enforce the 11-33 a same in the event of any subsequent breach or default. The receipt,.by the lessor, of any rent or any other sum of money after the termination, in any manner, of the term therein demised, or after the giving by the lessor of any notice thereunder to effect such termination, shall not reinstate,'continue or extend the resultant term therein demised, destroy or in any manner impair the efficacy of any such notice or termination as may have been given thereunder by the lessor to the lessee prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by the lessor. 11.20.330 Surrender on Termination: Lessee shall, on the last day of the term of this lease or upon any earlier termination of this lease, surrender and deliver up 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 City in writing, and free and clear of all liens and encumbrances other than those created by City for loans to the City. Upon the end of the term of this lease or any earlier termination thereof, title to the buildings, improvements and building equipment shall automatically vest in the City without requirement of any deed, conveyance or bill of sale document in confirmation hereof, lessee shall execute, acknowledge and deliver the same and shall pay any charge, tax and fee asserted or imposed by any and all governmental units in connection therewith. 11.20.340 Sanitation: The lessee shall comply with all regulations or ordinances of the City which are pro- mulgated for the promotion of sanitation. The premises of the lease shall be kept in a neat, clean and sanitary condition, and every effort shall be made to prevent the pollution of water. 11.20.350 Building and Zoning Codes: Leased lands shall be utilized in accordance with the building and zoning ordinances and rules and regulations of said authority. Failure to do so shall constitute a violation of the lease. 11-34 ,r ' 1 1 11.20.360 Rules: The lessee shall observe, obey and comply with all applicable rules, etc., of the State or Federal governments. 1. City reserves the right to adopt, amend and enforce reasonable rules and regulations governing the demised premises and the public areas and facilities used in connection therewith. Except in cases of emergency, no rule or regulation hereafter adopted or amended by the City shall become applicable unless it has been given 30 days notice of adoption or amendment thereof. 2. Lessee, in the conduct of its operations on the demised premises, shall observe, obey and comply with any and all applicable rules, regulations, laws, ordinances, or orders of any governmental authority, federal or state, lawfully exercising authority over lessee or lessee's conduct ' of its business. 3. City shall not be liable to lessee for any diminution or deprivation of possession, or of its rights hereunder, on = account of the exercise of any such right or authority as in this section provided, nor shall lessee be entitled to terminate the whole or any portion of the leasehold estate herein created, by reason of the exercise of such rights or authority, unless the exercise thereof shall so interfere with lessee's use and occupancy of the leasehold estate as to constitute a termination in whole or in part of this lease by operation of law in accordance with the Laws of the State of Alaska and of the United States made applicable to -- -i the states. 11.20.370 Aircraft Operations Protected: 1. The City shall reserve to itself its successors and assigns, for the use and benefit of the public, a right ofIflight for the passage of aircraft in the airspace above the surface and all improvements approved by the City of the premises conveyed, i together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now or hereafter used for navigation of or flight in the air, using said airspace of landing at, taking off from, or operating on the Kenai Airport. (When plans for improvements P P P pursuant ;.,.: to section 230 are approved by the City, the City to the extent of those improvements releases the easements here expressed.) 'i 2. The lessee by accepting conveyance expressly agrees r for itself, its representatives, successors, and assigns, that it will not erect nor permit the erection of any structure or object, on the land conveyed, which would be an airport -° obstruction within the standards established under the Federal Aviation Administration Regulations, Part 77, as amended. In the event the aforesaid covenant is breached, :� ! 11-35 the City reserves the right to enter on the land conveyed hereunder, and to remove the offending structure or object, all of which shall be at the expense of the lessee or its heirs, successors, or assigns. 11.20.380 Riqht to Enjoyment And Peaceable Possession: The City shall agree and covenant 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 enjoy the said leased premises, except that any inconvenience caused by public works projects in or about the leasehold premises shall not be construed as a denial of the right of quiet or peaceable possession. 11.20.390 Lessee To Pay Taxes: Lessee shall pay all lawful taxes and assessments which, during the term thereof may become a lien upon or which may be levied by the State, Borough, City or any other taxlevying body, upon any taxable possessory right which lessee may have in or to the reason of its use or occupancy, provided, however, that nothing herein contained shall prevent lessee from contesting as any other land owner any increase in such tax or assessment through procedures outlined in State statutes. 11.20.400 No Partnership or Joint Venture Created: The City shall not be construed or held to be a partner or joint venturer of lessee in the conduct of,business on the demised premises; and it is expressly understood and agreed that the relationship between the parties thereto is, and shall at all times remain that of landlord and tenant. 11.20.410 Default Bankru tc : If the lessee shall make any assignment for the benefit of creditors or shall be adjudged a bankrupt, or if a receiver is appointed for the lessee or lessee's assets, or any interest under this lease, and if the appointment of the receiver is not vacated within 30 days, or if a voluntary petition is filed under Section 18(a) of the Bankruptcy Act by the lessee, then and in any event, the City may, upon giving the lessee 30 days' notice, terminate this lease. 11.20.420 Nondiscrimination: The lessee, for himself, his heirs, persona represen a -Ives, successors in interest, 11- 36 I., _069fiablim" and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land, that: 1. No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; 2. In the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation, denied the benefits of, or otherwise be subjected to discrimination; 3. The lessee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally -assisted Programs of the Department of Trans- - portation--Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended; 4. In the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease, for a purpose involving the provision of similar services or benefits, the lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in " Federally -assisted Programs of the Department of Trans- portation -- Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. 11.20.430 Partial Invalidity: If any term, provision, condition or part of the lease is 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 such declaration was not made. 11.20.440 Parole Modifications: It shall be mutually understood and agreed between -hc parties that the agreement, as written, shall cover all the agreements and stipulations between the parties; and no representations, oral or written, have been made modifying, adding to, or changing the terms thereof. 11.20.450 Amendment of Lease: Notwithstanding anything to the contrary, in order to aid the lessee in the financing 11-37 I- of the improvements to be situated herein, the City shall agree that in the event the proposed mortgagee, beneficiary or security assignee under any interim or permanent loan on the security of the leasehold interest of the lessee and the improvements to be situated thereon so requires, the City will make a reasonable effort to amend this lease in order to satisfy such requirements upon the express condition and understanding, however, that such variance in language will not materially prejudice the City's rights thereunder nor be such as to alter in any way the rental obligations of the lessee hereunder nor its obligations to comply with all existing laws and regulations of the City relating to the leasing of airport lands, and to all applicable Federal statutes, rules, and regulations, and all covenants and conditions of the deed by which the City holds title to the land. 11.20.460 Compliance With Laws: Lessee shall comply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the leased premises or the sidewalks, alleys, streets, and way adjacent thereto or any buildings, structures, fixtures and improvements or the use thereof, whether or not any such laws, ordinances and regulations 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 harmless: 1. From the consequences of any violation of such laws, ordinances and/or regulations; and 2. From all claims for damages on account of injuries, death, or property damage resulting from such violation. Lessee further agrees it will not permit any unlawful occupation, business or trade to be conducted on said premises or any use to be made thereof contrary to any law, ordinance or regulation as aforesaid with respect thereto. 11.20.470 Care of Premises: Lessee, at its own cost and expense, shall keep the leased premises, all improvements which at any time during the term of this lease may be situated thereon, and any and all appurtenances thereunto belonging, in good condition and repair during the entire term of this lease. 11.20.480 Lessee's Obligation to Remove Liens: Lessee F will not permit any liens including, but not limited to, 11-38 ? T + mechanics', laborers', or materialmen's liens obtainable or available under the then existing laws, to stand against the leased premises or improvements for any labor or material furnished to lessee or claimed to have been furnished to lessee or to lessee's agents, contractors, or sublessees, in connection with work of any character performed or claimed to have been performed on said premises or improvements by or at the direction or sufference of lessee, provided, however, 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. On final determination of such lien or such claim for lien, 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. 11.20.490 Condemnation: In the event the leased 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 such condemnation, there shall be such division of the proceeds, such abatement in rent payable during the term or any extension of the term hereof, and such other adjustments as the parties may agree upon as being just and equitable under all the circumstances. If the City and lessee are unable to agree within 30 days after such an award has been paid into court, upon what division, annual abatement in rent, and other adjustments are just and equitable, the dispute shall be determined by arbitration provided in section 660 hereof. 11.20.500 Protection of Subtenants:' To protect the position of any subtenants hereafter properly obtaining any interests in the leasehold estate granted lessee hereunder, the City agrees that in the event of the cancellation, termination, expiration or surrender of this lease (the ground lease), the City will accept the subtenant, its successors and assigns, as its lessee for a period equal to the full elapsed portion of the term of the sublease, including any extensions or renewals thereof not exceeding the term of this lease, upon the same covenants and conditions therein contained, to the extent that said covenants and conditions are not inconsistent with any of the terms and conditions of this lease, provided such subtenant shall make full and complete attornment to the City for the balance of the term of such sublease so as to establish direct privity of estate and contract between the City and the subtenant with the same force and effect as though such sublease was originally 11-39 made directly between the City and such subtenant; and further provided such subtenant agrees to comply with all the provisions of the ground lease and all the terms of any mortgage, deed of trust or security assignment to which such leasehold estate is subject, except the payment of rent under the ground lease and the payment of any debt service under any such mortgage, deed of trust or security assignment. 11.20.510 Successors In Interest: This lease shall be binding upon and shall a.nure to t e benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations or assignment as are provided for herein. 11.20.520 Governing Law: The indenture of lease shall be governed in all respects by the laws of the State of Alaska. 11.20.530 Notices: 1. Any notices required by the lease shall be in wr ting and shall be deemed to be duly _ given only if delivered personally or mailed by certified or registered mail in a prepaid envelope addressed as follows: To City: City Hall -City of Kenai P O Box 580 Kenai, Ak 99611 To Tenant: The City shall also mail a copy of any notice given to the lessee, by registered or certified mail, to any leasehold lender (mortgagee, beneficiary of a deed of trust, security assignee) who shall have given the City notice of such mortgage, deed of trust or security assignment. 2. Any such addresses may be changed by an appropriate notice in writing to all other parties affected provided such change of address is given to the other parties by the means outlined in paragraph 1 above at least 15 days prior to the giving of the particular notice in issue. 11.20.540 Fire Protection: The lessee will take all reasonable precaution to prevent and take all necessary action to suppress destructive or uncontrolled grass, brush or other fires on leased lands, and comply with all laws, regulations and rules promulgated and enforced by the City for fire protection within the area wherein the leased Premises are located. 11-40 11 i 11.20.550 Inspection: The lessee shall allow authorized representatives of the City to enter the leased land for inspection at any reasonable time. 11.20.560 Personal Use of Materials: All coal, oil, gas and other minerals and all deposits of stone or gravel valuable for extraction or utilization and all materials subject to Title II, Division I, Chapters 4, 5 and 6 of the Alaska Administrative Code are excepted from the operation of a surface lease. Specifically, the lessee of the surface rights shall not sell or remove for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material -- valuable for building or commercial purposes; provided, however, that material required for the development of the leasehold may be used if its use is first approved by the City. ` 11.20.570 Restrictions and Reservations: The lease shall contain such restrictions and reservations as are necessary to protect the public interest. I � I 11-20.580 Waste and Injury to Land: If any person shall commit waste, trespass or other injury upon City land, �- the person so offending, in addition to being civilly liable for any damages caused, shall be deemed guilty of a misdemeanor. i 11.20.590 Warranty: The City does not warrant by its classification or leas g of land that the land is ideally suited for the use authorized under said classification or lease, and no guaranty is given or implied that it shall be profitable to employ land to said use. City bears no responsibility y f.: for any water erosion of land. j, 11.20.600 Approval of Other Authorities: The issuance by the City of leases does not relieve the grantee or lessee -_; of responsibility of obtaining licenses or permits as may be required by duly authorized Borough, State or Federal agencies. 11-41 11.�0.610 + property shall in the patent, holds. Title Restrictions: All leases or sales of be made subject to restrictions and reservations deed or other instrument under which the City 11.20.620 Insurance -Hold Harmless: Lessee shall covenant to save the City harmless from all actions, suits, liabilities, or damages resulting from or arising out of any acts of commission or omission by the lessee, his agents, employees, customers, invitees, or arising from or out of the lessee's occupation, or use of the premises demised, or privileges granted, and to pay all costs connected therewith. In this connection, the lessee shall agree to arrange and pay for all the following: 1. Public liability insurance protecting both the City and/or its agents and the lessee, such insurance to be evidenced by a certificate showing the insurance in force. The amount of such public liability insurance shall have limits not less than those known as $250,000/$500,000/$100,000. 2. Liquor liability (where applicable). 3. Lessee agrees to carry employer's liability insurance and Workmen's Compensation insurance, and to furnish a certificate thereof to the City, if applicable. 4. Insurance contracts providing liability insurance and Workmen's Compensation shall provide for not less than 30 days written notice to the City of cancellation or expiration or substantial change in policy conditions and coverage. 5. Lessee agrees that waiver of subrogation against the City shall be requested of lessee's insuror, and shall be provided at no cost to the City. ' 6. Cross Liability: It is understood and agreed that the insurance afforded by this policy or policies for more than one named insured, shall not operate to increase the limits of the company's liability, but otherwise shall not operate to limit or void the coverage of any one named insured as respects claims against the same named insured or employees of such other named insured. 7. The insurance procured by the lessee as herein required shall be issued in the name of the lessee and the City by a company licensed to do business in the State of Alaska, and shall contain endorsements that (a) such insurance may not be cancelled or amended with respect to the City without 30 days written notice by registered or certified mail to the City by the insurance company; and (b) Lessee shall be solely responsible for payment of premiums and that City shall not be required to pay any premiums for such insurance. 11-42 8. The amount of insurance coverage required above may be subject to review for increase at each 5 year renegotiation of the lease. i 9. Upon review by the Kenai Advisory Harbor Commission, l the lessee may be required to obtain such other insurance protecting the City and lessee that may be necessarily required or advisable owing to the particularities of the harbor related activities on the lease hold interest. 11.20.630 Insurance of Users -Subtenants: Lessee, for its own protection, may require bona fide public users and subtenants to execute agreements holding lessee harmless from actions arising out of user's operations and may require such bona fide public users and subtenants to show proof of public liability insurance covering their operations on the demised premises in such amounts as will adequately protect them. 11.20.640 Annual Report: The lessee may be required to submit to the City each year on or about March 15, an annual report on its operations, particularly those services and facilities offered to the public, whether on a fee or '1 non -fee basis. 11.20.650 Tidelands Claims: The City shall lease the subject land subject to any preference rights claims made pursuant to the provisions of Alaska Statute 38.05.320 or Ordinance #455-78 dated September 5, 1979 of the City of Kenai adopted pursuant thereto, and the lessee holds lessor harmless for any damages, legal expenses, or compensation necessitated by the resolution or satisfaction of said claims, if any. ,^•� 11.20.660 Subjection to Harbor Ordinance: All leases t' are subject to the terms, conditions and regulations imposed by Title II, Harbor and Harbor Facilities, of the 1979 Kenai t Code of ordinances as amended of which this section is a part. 11.20.670 Arbitration: In the event the City and - _-� lessee shall be unable to agree as to any matter provided for in the lease except as to the amount of the 5 year rent -`: redetermination amount which is handled pursuant to section ` 11-43 _ =_ 180, such dispute shall be determined by 3 disinterested arbitrators, (unless the parties can agree on one arbitrator). Such arbitration shall be conducted upon request of either the City or the lessee, before 3 arbitrators (unless the City or the lessee agree to one arbitrator) designated by the American Arbitration Association and in accordance with the rules of such Association. The arbitrators designated and acting under this lease shall make their award in strict conformity with such rules and shall have no power to depart from or change any of the provisions thereof. The expense of arbitration proceedings conducted hereunder shall be borne equally by the parties. The proceedings shall take place in Kenai, Alaska unless otherwise agreed upon by the parties. 11.20.680 Provisions Regulating Public Use Purpose: The City Council realizes that only a limited area of tidelands bordering navigable waters are available within the City of Kenai and which are owned by the City of Kenai. It would be in the public interest to insure that these lands do not pass out of community control at least to the extent that the public would not be deprived of harbor services at reasonable rates in the future. Therefore, areas of City owned tidelands which are developable for the bona fide public purposes as enumerated below shall be leased only with the following covenants defined to insure public use and access at reasonable rates. 11.20.690 The following provision shall be included in leases where harbor facilities are constructed to be utilized all or in part for bona fide public uses. I 11.20.700 Public Use: Defined: Public use shall mean a use limited in part or in whole to the following: i In general the lessee may use the demised premises or part thereof for any of the following purposes only: (1) Public dock facilities (2) Maritime commerce ` (3) Transportation i (4) Fishing (5) Boat harbor (6) Port and water front development purposes Before lessee may conduct any activities which fall under this general criteria, but are not specifically men- tioned above, lessee must obtain written consent of the -� City. i a 4 11-44 r _ --w 11.20.710 Controlled Access: Lessee, for its own protection, may construct or install fences, gates or other types of barriers to restrict access to portions of the demised premises that are not designated for a public use and may provide reasonable controls for access to public use areas to allow for security for such areas while insuring reasonable public access. Reasonable public access includes accommodations made for fishing operations during fishing season. 11.20.720 Use Charges: Lessee shall make reasonable and non-discriminatory charges to the public for use of any of its facilities. It is expressly recognized that lessee is entitled to a margin of profit, which should be fair, reasonable and competitive, and that City will cooperate to this end in considering rates and fees. The Commission shall review all rate structures annually. The lease shall contain an arbitration provision as set forth in section 670 to resolve disputes arising hereunder. 11.20.730 Maintenance of Dock: Lessee covenants that it will maintain the dock facility in a safe condition and in accordance with applicable state and federal standards. 11.20.740 Modifications of Existing Leases: Leases shall only be modified to that extent deemed to be necessary to protect the public's interest. ' 11.20.750 Unauthorized Removed of Material Prohibited: Any person, firm or corporation who without written aut ority from the City removes rock, gravel or other material from ' the lands owned by the City without the express consent of the City shall be deemed guilty of a misdemeanor. Any 1; criminal action taken against such person shall not preclude the institution of civil proceedings by the City. 4 11.20.760 Removal Not Authorized By Lease: No deed or lease granted by the City to any person shall contain terms or be construed as granting any right to remove material from City lands. 11.20.770 Disposition of Rights By Council: In recognition that conditions may exist from time to time whereby use of such lands and the material comprising the same may be beneficial to the public interest and promote the progress - and development of the City, applications for the use thereof may be received and considered by the Harbor Commission, providing such applications fully disclose to the City all material facts and plans for the proposed use. Such applications shall be consistent with the Comprehensive Plan of the City and referred to the City Planning Commission for its recommendations. Disposition of such applications shall be made by the Council after recommendation from the Harbor Commission. 11.20.780 Penalties: 1. It is unlawful for any person to violate any of the provisions of this chapter and upon conviction thereof shall be fined in an amount not exceeding $100. Each day such violation is committed or permitted to continue shall constitute a separate offense and shall be punishable as such hereunder. 2. In addition to or as an alternative to the above penalty provision, the City may impose a civil penalty not to exceed $100 per day for the violation of any provision of this chapter and seek injunctive relief for any infraction thereof for which the offending party will be chargeCfor reasonable attorney's fees and costs incurred by the City as awarded by the court. 3. Nothing in this section shall be deemed to restrict the City's exercise of any of its rights pursuant to the lease agreement including those enumerated in section 220 and 240 hereof. 11-46 r t, n r l CITY OF KENAI ORDINANCE NO. 530-79 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE CAPITAL PROJECT FUND ENTITLED "WILLOW STREET LUMINAIRES" BY $13,042. WHEREAS, the City of Kenai, by Ordinance No. 507-79, has appropriated $75,000 of 1974 Refunded Street Bond monies for the installation of luminaires along Willow Street, and WHEREAS, those bond monies were to be combined with $60,000 of Local Service Roads and Trails (LSR&T) program funds to provide $135,000 as the estimated cost of the project, and WHEREAS, the low bid, as negotiated, for the project is $155,000, and WHEREAS, Council desires that we proceed with the project and that existing LSR&T monies of $6,958 be used as well as $13,042 of bond monies to provide the additional $20,000 needed,and WHEREAS, proper accounting practices require that all appropriations of City monies be made by ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA as follows: Section 1: The City Administration be directed to request the State of Alaska to increase the amount of Local Service Roads & Trails funds applicable to this project by $6,958 -- to a total of $66,958, and Section 2: Estimated revenues and appropriations in the capital project fund entitled "Willow Street Luminaires" be increased as follows: Increase Estimated Revenues: 1974 Refunded Bonds (Streets) $13,042 Increase Appropriations: construction $13,042 PASSED BY THE COUNCIL THIS 7th day of November, 1979 9= VINCENT O'REILLY, ' Attest: r � l �ft y Clerk FIRST READING: October 17, 1979 SECOND READING: November 7, 1979 EFFECTIVE DATE: November 7, 1979 CITY OF KENAI ORDINANCE NO. 531-79 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA AMENDING THE LEASING OF AIRPORT LANDS ORDINANCE. WHEREAS, the City presently has an airport lands leasing ordinance codified in 21.10.010, et seq of the 1979 Kenai Code, and WHEREAS, the codified code revision of this ordinance should be amended to reflect certain additions within the body of the ordinance contained in new airport lands leases which were omitted from the pre -code airports ordinance and also to insert sections of the pre -code airports lands ordinance which are not contained in the codified revision. NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA AS FOLLOWS: Section 1: Section 21.10.010 to and including 21.20.020 of the 1979 Kenai Code are hereby repealed. Section 2: A new 21.10.010 to and including 21.20.730 of the 1979 Kenai Code is hereby adopted in the form as attached hereto and made a part hereof. PASSED BY THE COUNCIL OF THE CITY F KENAI, ALASKA this 7th day of November, 1979. � ' INCENT O'REILLY, roll t ATTEST: .. C y Clerk First Reading: October 17, 1979 Second Reading: November 7, 1979 Effective Date: December 7, 1979 1 Title 21 CITY AIRPORT AND AIRPORT LANDS Chapters 21.05 Airport Administration and Operation 21.10 Leasing of Airport Lands 21.15 Provisions Required in All Airport Land Leases 21.20 Policy Governing Modifications of Existing Leases 21.05.010 AIRPORT ADMINISTRATION & OPEPATION; Permit: 1. All lessees, owners or occupants of property within the territorial jurisdiction of the Kenai Municipal Airport who wish to construct or operate terminal or transportation facilities of any kind thereon, including, but not limited to, aircraft maintenance facilities, warehouses and all other related transportation, commercial or industrial facilities shall apply to the City Administrator for au- thorization. Such application shall be accompanied by a plan of the proposed construction that shall meet all standards or requirements which may be required by the ordinances of the City of Kenai relating to zoning, sub- division regulations and.building construction standards. 2. The City Administrator shall refer plans of the type or location of the proposed construction which are in conflict with the General Plan to the Planning Commission to determine whether such proposed construction is in keeping with the objectives of the General Plan. The decision of the Planning Commission shall be binding unless reversed by the Council. The City Administrator, subject to conditions of this section, may issue permits upon such terns and conditions and for such durations as authorized by the Council, and no construction shall be done nor operation carried on without a permit from the City Administrator. 3. Every permit, lease, deed or conveyance of any right, title or interest from the City to any land within the jurisdiction of the Kenai Dunicipal Airport shall incorporate by reference, or otherwise, and shall be subject to the restrictions contained in this section of the 1963 Kenai Code. (KC 17-23) 21.05.020 Investiaation of Permit Holders; Cancellation: The City Administrator may inquire into the manner in which obligations are carried out, and the practices of permit holders for the purpose of determining whether the pro- visions of the permits are being complied with. This section shall authorize access to books and records of permit holders 21-1 t 0 as may be reasonably necessary to enable making a deter- mination thereunder. Should the City Administrator find that at any time a permit holder is not complying with the terms of the permit issued, the permit may be cancelled upon notice and in accordance with such procedure as may, by regulation, be prescribed. (KC 17-24) 21.05.030 Regulation of Airport: The City Adminis- trator may regulate the manner in which the Kenai Airport and compatible non -aviation facilities are operated with reference to the safety, accommodation and service to the public. In order to implement this grant of authority, the City Administrator shall have the power to adopt such rules and regulations as may be necessary to carry out the duties under this grant. In this connection, the rules and regu- lations adopted prior to the enactment of this addition to the 1963 Kenai Code are hereby ratified, and approved and continued in full force and effect until further amended or repealed by subsequent action of the City Administrator in accordance with acceptable procedures for the adoption of rules and regulations. (KC 17-25) (See Appendix A attached hereto) 21.05.040 Parking Automobiles and Aircraft: It shall be unlawful for any person to park any automobile or air- craft in any area contrary to the designation for that area on the Kenai Municipal Airport, the lands of the Kenai Municipal Airport Terminal System, or fail to obey the proper regulations for the control of ground traffic as established by the Airport Manager or his designated rep- resentative. Said Airport Manager or his designated rep- resentative shall be vested with full police powers under the authority of this City to endorse the provisions of tiTis section. (KC 17-34) 21.05.050 Penalties: Any person violating any of the provisions of this chapter or any of the rules, regulations or orders made and issued under this chanter is guilty of a misdemeanor, and upon conviction, is punishable by a fine of not more than $100. (Ord 263) 21.10.010 LE?SIZIG Or AIRPORT LANDS; Lands available for Leasing: All the rlirNort lan;:s within the limits of the City to which the City holds title may be leased as hereLin - after provided. 21.10.020. Qualifications of Applicants or Bidders: An applicant or bidder for a lease is qualified if to applicant or bidder: 1. is an individual at least 19 .ears of ace or over; or 21-2 C � u 2. is a group, association or corporation which is authorized to conduct business under the laws of Alaska; or 3. is acting as an agent for another and has qualified by filing with the City Clerk a proper Power of Attorney or a Letter of Authorization creating such agency. The agent shall represent only one principal to the exclusion of himself. The term "agent" includes real estate brokers and agents. 21.10.030 Applications: All applications for lease of lands shall be filed with the City Clerk on forms provided by the City available at City Hall. Applications shall be dated on receipt and payment of filing fee. After filing, a maximum of 30 days shall be allowed to complete the appli- cation. Filing fees are not refundable. with every application the applicant shall submit a development plan, showing and stating: (a) the purpose of the proposed lease; (b) the use, value and nature of improve- ments to be constructed, (c) the type of construction; (d) the dates construction is estimated to commence and be completed (maximum of 2 years); and, (e) whether intended use complies with the zoning ordinance and comprehensive plan of the City. Applications shall become a part of the lease. 21.10.040 Rights Prior to Leasing: The filing of an application for a lease shall give the applicant no right to lease or to the use of the land applied for. The appli- cation shall expire within 6 months after the application has been made if a lease has not been entered into between the City and the applicant by that time. Lease rates are subject to change on the basis of an appraisal done every 6 months on the property applied for. 21.10.050 Classification Prior to Lease Required: Except for concept lease applications described in the section below, before accepting applications to lease lands the area involved shall have first been classified for permitted land uses and a land use plan of the area prepared and publicly posted in the City Hall offices. The land use plan shall be prepared by the City Planning Commission and approved by the Council prior to posting. The availability of concept leases shall be made known in the posting. 21.10.060 Processing Procedure: 1. Applications shall be forwarded to the Advisory Planning and Zoning Commission upon receipt. The Advisory Planning and Zoning Commission shall normally consider applications for specific lands on a first -come, first -serve basis. inhere there is difficulty in obtaining a perfected application, details as to development plans, etc., then the Advisory Planning and Zoning Commission may, after due notice to the first ap- plicant, consider a second applicant for the particular lease. 2. The City Council shall normally review a lease proposal only after approval of the Advisory Planning and Zoning Commission, llowever, appeals of Advisory Planning and Zoning Vommission disapproval may be made to the City Council. Completed, signed leases must be presented within 30 days after approval by the Advisory Planning and Zoning Commission. --_--.ate--,- 3. Conceptual applications relative to unplatted land and/or unreleased lands will also be considered --n a first - come, first -serve basis. On approval of concept by the Advisory Planning and Zoning Commission and the City Council, the applicant is assured the right of first refusal of the lease followinc the determination of a lease rate in ac- cordance with established policy. 21.10.070 Review: No leased land may be changed in use, nor may any renewal lease be issued until the proposed use or renewal has been reviewed by the Planning Commission and approved by the Council. 21.10.080 Terms of Lease: All leases shall be approved by the City Council b re the same shall become effective. The term of any given lease shall depend upon the durability of the proposed use, the amount of investment in improvement proposed and made, and the nature of the improvement proposed with respect to durability and time required to amortize the proposed investment. 21.10.090 Appraisal: No land shall be leased, or a renewal lease issued, unless the same has been appraised within a 6 month period prior to the date fixed for beginning of the term of the lease or renewal lease. No land shall be leased for less than the approved appraised annual rental. Appraisals shall reflect the number and value of City services rendered the land in question. 21.10.100 Annual Minimum Rental: Annual minimum rentals shall be computed from the approved appraised market value utilizing the method as described in section (a) below. Annual minimum rental shall include: (a) Taxes pertaining to the leasehold interest of the Lessee. (b) Sales tax now enforced or levied in the future computed upon rent payable in monthly installments whether rent is paid on a monthly or yearly basis. (c) All taxes and assessments levied in the future by the City of Kenai, as if Lessee was considered the legal owner of record of the Leased Property. (d) Interest at the rate of 8% per annum and 100 penalties of any amount of money owed under this lease which is not paid on or before the date it becomes due. (e) All sales taxes due on payments under this lease and to all sales taxes applicable to its operations. (f) All special assessments for public improvements levied by the City of Kenai, as if Lessee were considered legal owner of leased property. 2. Upon execution of the lease the lands demised become taxable to the extent of its leasehold interest and 21-4 0 I: - Lessee shall pay all rent property taxes levied upon such leasehold interest in these lands, that the City as part of the payment by the lessee of said assessments and taxes as if he were the owner of said demised land. 3. Rent shall be paid annually in advance. Said payments shall be prorated to conform with the City of Kenai's fiscal year beginning July 1 and ending June 30. If the equivalent monthly payment exceeds $200, then the lessee shall have the option of making payments on a monthly or quarterly basis. 21.10.110 Service by Realty Firms and Brokers: 1. Realtors shall be entitled to a fee at the time the first payment is made under such lease. Said fee shall be limited to 10% of the first year's lease rate, excluding charges for assessments, or 5% of each year for the first 5 years at the broker's option. However, realtors a party to the lease shall not be entitled to a commission. 2. Realtors shall treat any listing as they would any other client in regard to advertising, promotion, etc. 3. Listings of platted lands available for lease shall be announced and posted publicly. Such announcements shall include block and lot number, parcel number and any special limitations with restrictions as may be imposed by the Advisory Planning and Zoning Commission and City Council. Such restrictions or limitations shall be specific and in addition to zoning restrictions. No lease proposed by an eligible realtor shall be denied if it meets such restric- tions, applicable lease rates and zoning requirements in effect at time of application. 4. Unplatted, released Airport lands and unreleased lands shall not be listed with realtors. However, unless positive action has been taken by the Advisory Planni..ng and Zoning Commission and/or the City Council to set aside a certain tract as not available for lease at that particular time, a realtor may, on behalf of a client, request a lease of such lands. Such a lease request shall be considered as described in the preceding application procedures, relating to Unplatted, unreleased lands. Normal fees shall be due to the realtor on consummation of such a lease. 21.10.120 Bidding Procedure: As an exception to general policy listed above, the City Council may designate a specific lot or lots to be made available only for bid. This provision shall apply only when there is no outstanding application pending on the lot or lots. As designated, sealed bids shall be received offering a one-time premium in addition to the established lease rate. Highest bid, how- ever, shall be subject to all provisions of review and approval established for all other lease applications. 21-5 I 21.10.130 Principles and Policy of Lease Rates: 1. A fair return to the Airport System is mandated by the terms and conditions of the quitclaim deed and appropriate deeds of release, granting these lands to the Airport System by the Federal Government. To insure a fair return, all leases for a period in excess of 5 years shall include a redeter- mination clause as of the fifth anniversary of each lease, normally set for the 1st of July of that fifth year. In pursuing a fair return, all lands for lease shall be appraised prior to lease and again prior to redetermination. There- fore, lease rates shall be based on: (a) fair market value of the land, including an appropriate consideration of facilities and services available (public water, public sewer, storm sewers and other public utilities) as deter- mined by a qualified independent appraiser, considering the best use of the specific land; and (b) the actual rate of return determined to be a fair return to the City shall be set annually in May by resolution of the City Council and shall apply to all leases thereafter requested. 2. Realizing that investors, developers and other potential lessees need a reasonable assurance of stability in future lease rates, the redetermination clause of all future leases shall include the following language: "At each 5-year interval, the fair market value shall be determined by qualified, independent appraisers. The redetermined lease rate, (annual rent) under this provision shall be limited to a 50% increase in the prior lease rate until the 30th year anniversary of the lease after which the 50% cap provision shall no longer apply and the lease rate shall be redetermined every 5 years on the basis of fair market evaluation as deter- mined in Section 080(1)(a) and (b)." City leases existing at the time of the enactment of this chapter shall have a 30 year period determined from the date from which the lease was originally entered into. 3. Recognizing that the redetermination procedure provided for above may be in conflict with the mandate of the quitclaim deed and the several deeds of release, the City Council herein acknowledges its obligation to provide the Airport Fund with those sums which the above redeter- mination policy may cause the Airport Fund to lose. It is the intent of the Council to provide for such a possible shortfall by appropriating revenues relative to the assessed valuation of Airport properties. 4. Those leases existing at the time of the effective date of this chapter in which the lease rate has not been redetermined at its previous 5 year interval, may be redeter- mined at their next 5 year period, utilizing the 50% cap provision of Section 21.05.130(2), on the basis of the 1977 property appraisal (gauged at 6% return) performed by the City on the lots in question. 21-6 21.15.140 PROVISIONS REQUIRED; Proper Location: It shall be the responsibility of the lessee to properly locate himself and his improvements on the leased land. It shall be unlawful to encroach on other lands of the City, or on lands owned or leased by another, and violation shall constitute a misdemeanor. 21.15.150 Responsibility to Properly Locate: It shall be the responsibility of the lessee to properly locate himself and his improvements on the leased land. It shall be unlawful to encroach on other lands of the City, or on lands owned or leased by another. 21.15.160 Lease Utilization: Leased lands shall be utilized for purposes within the scope of the application, the terms of the lease and in conformity with the ordinances of the City and Borough, and in substantial conformity with the comprehensive plan. Utilization or development for other than the allowed uses shall constitute a violation of the lease and subject the lease to cancellation at any time. Failure to substantially complete the development plan of " the land, consistent with the proposed use and terms of the lease, shall constitute grounds for cancellation. 21.15.170 Payment of -Rent: Rent shall be paid annually -_ in advance. Said payments shall be prorated to conform with the City of Kenai's fiscal year beginning July 1 and ending June 30. If the equivalent monthly payment exceeds $200, then the lessee shall have the option of making payments on .. a monthly or quarterly basis. 21.15.180 Adjustment of Rental: All leases shall contain the agreement of the lessee to a reevaluation of the annual rent payment every fifth year. 1 21.15.190 Subleasing: Leases may provide for sub- leasing without prior Council approval. Subleases shall be in writing and be subject to the terms and conditions of the original lease. v. 21.15.200 Assignments: No lessee may assign the lands leased to him without prior Council approval. The assignee shall be subject to all of the provisions of the lease. Any attempted assignment made in violation of this section shall '." be void. Any assignment requiring Council approval will not be unreasonably denied. "_ 21.15.210 Modification: No lease may be modified orally or in any manner other than by an agreement in writing, "__ ` signed by all parties in interest or their successors in interest. Any such modification shall require Council .: _. approval. 21-7 I a t:. 21.15.220 Cancellation -Forfeiture: 1. Leases in good standing may be cancelled in whole, or in part, at any time upon mutual written agreement by lessee and the City Council. 2. Any lease used for an unlawful purpose may be cancelled. 3. If the lessee shall default in the performance or observance of any of the lease terms, covenants or stipula- tions thereto, or of the regulations now or hereafter in force, and should said default continue for 30 calendar days after service of written notice by the City without remedy by lessee of the conditions warranting default, the City shall subject lessee to appropriate legal action, including, but not limited to, forfeiture of the lease. No improve- ments may be removed by lessee or other person during any time the lessee is in default. This provision shall not be construed to prohibit the City from taking any appropriate legal action, including, but not limited to, forfeiture of the lease, immediately upon the occurrence of a default. 21.15.230 Notice or Demand: Any notice or demand which under the terms of a lease or under any statute must be given or made by the parties thereto, shall be in writing and be given or made by registered or certified mail, ad- dressed to the other party at the address of record. How- ever, either party may designate in writing such new or other address to which such notice or demand shall there- after be so given, made or mailed. A notice given hereunder shall be deemed delivered when deposited in a U.S. general or branch post office, enclosed in a registered or certified mail envelope, addressed as hereinabove provided. 11-20.250 Financing -Rights of Mortgagee or Lienholder: 1. For the purpose of interim or permanent financing or refinancing from time to time of the improvements to be placed upon the leased premises, and for no other purpose, a lessee, after giving written notice thereof to the City, may encumber by mortgage, deed of trust, assignment or other appropriate instrument, the..lessee's interest in the leased premises and in and to the lease, provided such encumbrance pertains only to such leasehold interest and does not pertain to or create any interest in the City's title to the leased premises. If such mortgage, deed of trust, or assignment shall be held by a bank or other established lending or financial institution (which terms shall include an established insurance company and qualified pension or profit sharing trust) and such institution shall acquire the lessee's interest in such lease as a result of a sale under said encumbrance pursuant to a foreclosure 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, such lending institution shall have the privilege of transferring its interest in 21-8 such lease to a nominee or a wholly owned subsidiary corporation with the prior consent of the City, provided, however, such transferee shall assume all of the covenants and conditions required to be performed by the lessee, whereupon such lending institution shall be relieved of any further liability under such lease from any after such transfer. Such lending institution or the nominee or wholly owned subsidiary corporation to which it may have transferred such lease, or any other lending institution which may at any time acquire such lease, shall be relieved of any further liability under such lease from and after a transfer of such lease. 2. A leasehold mortgagee, beneficiary of a deed of trust or security assignee, shall have and be subrogated to any and all rights of the lessee with respect to the curing of any default hereunder by lessee. 3. If the holder of any such mortgage, or the beneficiary of any such deed of trust, or the security assignee shall give the City before any default shall have occurred in the lease, a written notice containing the name and post office address of such holder, and City shall thereafter give to such holder a copy of each notice of default by the Lessee at the same time as any notice of default shall be given by the City to the lessee, and the City will not thereafter accept any surrender or enter into any modification of this lease without the prior written consent of the holder of any first mortgage, beneficial interest under a first deed of trust, or security assignee, in this lease. 4. If, by reason of any default of the lessee, either this lease or any extension thereof shall be terminated at the election of the City prior to the stated expiration therefor, the City will enter into a new lease with the leasehold mortgagee for the remainder of the term, effective as of the date of such termination, at the rent and ,.additional rent, and on the terms herein contained, subject to the following conditions: (a) Such mortgagee, beneficiary or security assignee, shall make written request to the City for such new lease within 20 days after the date of such termination and such written request shall be accompanied by a payment to the City of all sums then due to the City under the lease. (b) Such mortgagee, beneficiary or security assignee, shall pay to the City, at the 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 ueiivery 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 City shall have ueen subjected by reason of such default. (c). Such mortgagee, beneficiary or security assignee shall, on or before the execution and delivery of such new lease, perform all the other conditions required to be performed by the lessee to the extent that the lessee shall have failed to perform such conditions. 21-9 5. If a lending institution or its nominee or wholly owned subsidiary corporation shall hold a mortgage, deed of trust, or similar security interest in and to this lease and shall thereafter acquire a leasehold estate, derived either from such instruments or from the City, and if such institution, nominee, or corporation shall desire to assign this lease or any new lease obtained from the City (other than to a nominee or to a wholly owned subsidiary corporation as permitted by the above provisions) to an assignee who will undertake to perform and observe the conditions in such lease required to be performed by the lessee, the City shall not unreasonably withhold its consent to such assignment and assumption, and any such lending institution, nominee, or subsidiary shall be relieved of any further liability under such lease from and after such assignment. If the proposed assignor shall assert that the City in unreasonably withholding its consent to any such proposed assignment, such dispute shall be resolved by arbitration. 21.15.250 Entry and Re-entry: In the event that the lease should be terminated as hereinbefore provided by summary proceedings or otherwise, or in the event that the demised lands or any part thereof should be abandoned by the lessee during the said term, the lessor or its agents, servants or representatives may, immediately or any time thereafter, re-enter and resume possession of said lands or such part thereof, and remove all persons and property therefrom, either by summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefor. No re-entry by the lessor shall be deemed an acceptance of a surrender of the lease. 21.15.260 Forfeiture of Rental: In the event that the lease should be terminated because of any breach by the lessee as herein provided, the annual rental payment last made by the lessee shall be forfeited and retained by the lessor as partial or total liquidated damages for said breach. 21.15.270 Written Waiver: The receipt of rent by the lessor with knowledge of any breach of the lease by the lessee, or any default on the part of the lessee in obser- vance or performance of any of the conditions or covenants of the lease, shall not be deemed to be a waiver of any pro- visions of the lease. No failure on the part of the lessor to enforce any covenant or provision therein contained, nor any waiver of any right thereunder by the lessor, unless in writing, shall discharge or invalidate such covenants or 21-10 provisions, or affect the right of the lessor to enforce the same in the event of any subsequent breach or default. The receipt, by the lessor, of any rent or any other sum of money after the termination, in any manner, of the term therein demised, or after the giving by the lessor of any notice thereunder to effect such termination, shall not reinstate, continue or extend the resultant term therein demised, destroy or in any manner impair the efficacy of any such notice or termination as may have been given thereunder by the lessor to the lessee prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by the lessor. 21.15.280 Easement Grants Reserved: City reserves the right to grant and control easements in, or above the land leased. No such grant or easement will be used that will unreasonably interfere with the lessee's use of the land, and lessee shall have free access and use of any and all parking and loading rights, rights of ingress and egress now or hereafter appertaining to the leased premises. 21.15.290 Lease Subordinate to Financing Requirements: Lessee agrees that City may modify the lease to meet revised 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 this lease, nor act to cause the lessee financial loss. 21.15.300 Surrender on Termination: Lessee shall, on the last day of the term of this lease or upon any earlier termination of this lease, surrender and deliver up 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 City in writing, and free and clear of all liens and encumbrances ! other than those created by City for loans to the City. Upon the and of the term of this lease or any earlier termination thereof, title to the buildings, improvements and building equipment shall automatically vest in the City without requirement of any deed, conveyance or bill of sale thereon. However, if the City should require any such document in confirmation hereof, lessee shall execute, ! acknowledge and deliver the same and shall pay any charge, ;! tax and fee asserted or imposed by any and all governmental ! units in connection therewith. 21-11 i 21:15.310 Sanitation: The lessee shall comply with all regulations or ordinances of the City which are promul- gated for the promotion of sanitation. The premises of the lease shall be kept in a neat, clean and sanitary condition, and every effort shall be made to prevent the pollution of water. 21.15.320`. Building and Zoning Codes: Leased lands shall be utilized in accordance with the building and zoning ordinances and rules and regulations of said authority. Failure to do so shall constitute a violation of the lease. 1 21.15.330, Fire Protection: The lessee will take all reasonable precaution to prevent and take all necessary action to suppress destructive or uncontrolled grass, brush or other fires on leased lands, and comply with all laws, regulations and rules promulgated and enforced by the City for fire protection within the area wherein the leased premises are located. 21.15.340 Inspection: The lessee shall allow author- ized representative o the City to enter the leased land for inspection at any reasonable time. 2 1�350 h.Personal;Use of Materials: All coal, oil, gas an oter minerals and all deposits of store or gravel valuable for extraction or utilization and all materials subject to Title II, Division I, Chapters 4, 5 and 6 of the Alaska administrative Code are excepted from the operation of a surface lease. Specifically, the lessee of the surface rights shall not sell or remove for use elsewhere any timber, stone, gravel, peat moss, topsuil or any other material valuable for building or cocmnercial purposes; provided, however, that material required for the development of the leasehold may be used if its use is first approved by the City manager. 21.15.360 Restrictions and Reservations: The lease shall contain such restrictions and reservations as are necessary to protect the public interest. 21.15.370 Haste and lnjury to Land: If any person shall commit waste, trey^ass or other i.njury ti-pon City land, the person so offending, in addition to being civilly liable for any damages caused, shall be doeme:d guilty of a mis- demeanor. 21.15.380 warranty: T'.:e City does not warrant by its classification or ieasinc o`_ land that the lard is idcall:: suited for the uae authoriz-ad un dar said class ificatic:i or 21-12 21.20.390 Rules: The lessee shall observe, obey and comply with all applicable rules, etc., of the State or Federal governments. 1. City reserves the right to adopt, amend and enforce reasonable rules and regulations governing the demised premises and the public areas and facilities used in connection therewith. Except in cases of emergency, no rule or regulation hereafter adopted or amended by the City shall become applicable unless it has been given 30 days notice of adoption or amendment thereof. 2. Lessee, in the conduct of its operations on the demised premises, shall observe, obey and comply with any and all applicable rules, regulations, laws, ordinances, or orders of any governmental authority, federal or state, lawfully exercising authority over lessee or lessee's conduct of its business. 3. City shall not be liable to lessee for any diminution or deprivation of possession, or of its rights hereunder, on account of the exercise of any such right or authority as in this section provided, nor shall lessee be entitled to terminate the whole or any portion of the leasehold estate herein created, by reason of the exercise of such rights or authority, unless the exercise thereof shall so interfere with lessee's use and occupancy of the leasehold estate as to constitute a termination in whole or in part of this lease by operation of lawinaccordance with the Laws of the State of Alaska and of the United States made applicable to the states. 21.20.400 Aircraft operations Protected: 1. The City shall reserve to itself 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 and all improvements approved by the City of the premises conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now or hereafter used for navigation of or flight in the air, using said airspace of landing at, taking off from, or operating on the Kenai Airport. (When plans for improvements pursuant to section 230 are approved by the City, the City to the extent of those improvements releases the easements here expressed.) 2. The lessee by accepting conveyance expressly agrees for itself, its representatives, successors, and assigns, that it will not erect nor permit the erection of any structure or object, on the land conveyed, which would be an airport obstruction within the standards established under the Federal Aviation Administration Regulations, Part 77, as amended. In the event the aforesaid covenant is breached, 21-13 0 the City reserves the right to enter on the land conveyed Ij hereunder and to remove the offending structure or object, all of which shall be at the expense of the lessee or its heirs, successors, or assigns. 21.20.410 Right to Enjoyment And Peaceable Possession: The City shall agree and covenant 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 enjoy the said leased premises, except that any inconvenience caused by public works projects in or about the leasehold premises shall not be construed as a denial of the right of quiet or peaceable possession. 21.20.420 Lessee To Pay Taxes: Lessee shall pay all lawful taxes and assessments which, during the term thereof may become a lien upon or which may be levied by the State, Borough, City or any other taxlevying body, upon any taxable possessory right which lessee may have in or to the reason of its use or occupancy, provided, however, that nothing herein contained shall prevent lessee from contesting as any other land owner any increase in such tax or assessment through procedures outlined in State statutes. 21.20.430 No Partnership or Joint Venture Created: The City shall not be construed or held to be a partner or joint venturer of lessee in the conduct of business on the demised premises; and it is expressly understood and agreed that the relationship between the parties thereto is, and shall at all times remain that of landlord and tenant. 21.20.440 Default Bankruptcy: If the lessee shall make any assignment for the benefit of creditors or shall be adjudged a bankrupt, or if a receiver is appointed for the lessee or lessee's assets, or any interest under this lease, and if the appointment of the receiver is not vacated within 30 days, or if a voluntary petition is filed under Section 18(a) of the Bankruptcy Act by the lessee, then and in any event, the City may, upon giving the lessee 30 days' notice, terminate this lease. 21.20.45n Nondiscrimination: The lessee, for himself, his heirs, personal representatives, successors in interest, 21-14 r. and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land, that: 1. No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; 2. In the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation, denied the benefits of, or otherwise be subjected to discrimination; 3. The lessee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally -assisted Programs of the Department of Trans- portation --Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended; 4. In the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease, for a purpose involving the provision of similar services or benefits, the lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of;Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally -assisted Programs of the Department of Trans- portation -- Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. 21.20.460 Partial Invalidity: If any term, provision, condition or part of the lease is 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 such declaration was not made. 21.20.470 Parole Modifications: It shall be mutually understood and agreed between -he parties that the agreement, as written, shall cover all the agreements and stipulations between the parties; and no representations, oral or written, have been made modifying, adding to, or changing the terms thereof. 21.20.480 Amendment of Lease: Notwithstanding anything to the contrary, in order to aid the lessee in the financing 21-15 of the improvements to be situated herein, the City shall agree that in the event the proposed mortgagee, beneficiary or security assignee under any interim or permanent loan on the security of the leasehold interest- of the lessee and the improvements to be situated thereon so requires, the City will make a reasonable effort to amend this lease in order i to satisfy such requirements upon the express condition and understanding, however, that such variance in language will not materially prejudice the City's rights thereunder nor be such as to alter in any way the rental obligations of the lessee hereunder nor its obligations to comply with all existing laws and regulations of the City relating to the leasing of airport lands, and to all applicable Federal statutes, rules, and regulations, and all covenants and conditions of the deed by which the City holds title to the land. 21.20.490 Compliance With Laws: Lessee shall comply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the leased premises or the sidewalks, alleys, streets, and way adjacent thereto or any buildings, structures, fixtures and improvements or the use thereof, whether or not any such laws, ordinances and regulations 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 harmless: 1. From the consequences of any violation of such laws, ordinances and/or regulations; and 2. From all claims for damages on account of injuries, death, or property damage resulting from such violation. Lessee further agrees it will not permit any unlawful occupation, business or trade to be conducted on said premises or any use to be made thereof contrary to any law, ordinance or regulation as aforesaid with respect thereto. 21.20.500 Care of Premises: Lessee, at its own cost and expense, shall keep the leased premises, all improvements which at any time during the term of this lease may be situated thereon, and any and all appurtenances thereunto belonging, in good condition and repair during the entire term of this lease. 21.20.510 Lessee's Obligation to Remove Liens: Lessee will not permit any lions including, but not limited to, 21.16 mechanics', laborers', or materialmen's liens obtainable or available under the then existing laws, to stand against the leased premises or improvements for any labor or material furnished to lessee or claimed to have been furnished to lessee or to lessee's agents, contractors, or sublessees, in connection with work of any character performed or claimed to have been performed on said premises or improvements by or at the direction or sufference of lessee, provided, however, 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. On final determination of such lien or such claim for lien, 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. 21.20.520 Condemnation: In the event the leased 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 such condemnation, there shall be such division of the proceeds, such abatement in rent payable during the term or any extension of the term hereof, and such other adjustments as the parties may agree upon as being just and equitable under all the circumstances. If the City and lessee are unable to agree within 30 days after such an award has been paid into court, upon what division, annual abatement in rent, and other adjustments are just and equitable, the dispute shall be determined by arbitration provided in section 660 hereof. A- 21.20.530 Protection of Subtenants: To protect the position of any subtenant(s) hereafter properly obtaining any interests in the leasehold estate granted lessee hereunder, the City agrees that in the event of the cancellation, termination, expiration or surrender of this lease (the ground lease), the City will accept the subtenant, its successors and assigns, as its lessee for a period equal to the full elapsed portion of the term of the sublease, including any extensions or renewals thereof not exceeding the term of this lease, upon the same covenants and conditions therein contained, to the extent that said covenants and conditions are not inconsistent with any of the terms and conditions of this lease, provided such subtenant shall make full and complete attornment to the City for the balance of the term of such sublease so as to establish direct privity of estate and contract between the City and the subtenant with the same force and effect as though such sublease was originally 21-17 0 0 made directly between the City and such subtenant; and further provided such subtenant agrees to comply with all the provisions of the ground lease and all the terms of any mortgage, deed of trust or security assignment to which such leasehold estate is subject, except the payment of rent under the ground lease and the payment of any debt service under any such mortgage, deed of trust or security assignment. 21.20.540 Successors In Interest: This lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations or assignment as are provided for herein. 21.20.550 Governing Law: The indenture of lease shall be governed in all respects by the laws of the State of " Alaska. 21.20.560 Notices: 1. Any notices required by the lease shall be in writing:and shall be deemed to be duly given only if delivered personally or mailed by certified or . r registered mail in a prepaid envelope addressed as follows: To City: City Hall -City of Kenai P O Box 580 Kenai, Ak 99611 To Tenant: 1 The City shall also mail a copy of any notice given to the lessee, by registered or certified mail, to any leasehold I lender (mortgagee, beneficiary of a deed of trust, security assignee) who shall have given the City notice of such 9 9 Y t . mortgage, deed of trust or security assignment. 2. Any such addresses may be changed by an appropriate notice in writing to all other parties affected provided such change of address is given to the other parties by the means outlined in paragraph 1 above at least 15 days prior to the giving ofparticularthe notice inissue. ,r 21.20.570 Fire Protection: The lessee will take all reasonable precaution to prevent and take all necessary action to suppress destructive or uncontrolled grass, brush or other fires on leased lands, and comply with all laws, regulations and rules promulgated and enforced by the City for fire protection within the area wherein the leased premises are located. 21-18 0 _. _ 21.20.580 Inspection: The lessee shall allow authorized representatives of the City to enter the leased land for inspection at any reasonable time. 21.20.590 Personal Use of Materials: All coal, oil, gas and other minerals and all deposits of stone or gravel valuable for extraction or utilization and all materials subject to Title II, Division I, Chapters 4, 5 and 6 of the Alaska Administrative Code are excepted from the operation of a surface lease. Specifically, the lessee of the surface rights shall not sell or remove for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material valuable for building or commercial purposes; provided, however, that material required for the development of the leasehold may be used if its use is first approved by the City. 21.20.600 Restrictions and Reservations: The lease shall contain such restrictions and reservations as are necessary to protect the public interest. 21.20.610 Taste and Injury to Land: If any person shall commit waste, trespass or other injury upon City land, the person so offending, in addition to being civilly liable for any damages caused, shall be deemed guilty of a misdemeanor. I I i I '21.20.620 warranty: The City does not warrant by its classification or leasing of land that the land is ideally suited for the use authorized under said classification or lease, and no guaranty is given or implied that it shall be profitable to employ land to said use. City bears no responsibility for any water erosion of land. 21.20.630 Approval of Other Authorities: The issuance by the City of leases does not relieve the grantee or lessee of responsibility of obtaining licenses or permits as may be required by duly authorized Borough, State or Federal agencies. 21-19 1 i i I 5 _ ,. 21.20.640 Title Restrictions: All leases or sales of property shall be made subject to restrictions and reservations in the patent, deed or other instrument under which the City holds. 21.20.650 Insurance -Hold Harmless: Lessee shall covenant to save the City harmless from all actions, suits, liabilities, or damages resulting from or arising out of any acts of commission or omission by the lessee, his agents, employees, customers, invitees, or arising from or out of the lessee's occupation, or use of the premises demised, or privileges granted, and to pay all costs connected therewith. In this connection, the lessee shall agree to arrange and pay for all the following: 1. Public liability insurance protecting both the City and/or its agents and the lessee, such insurance to be evidenced by a certificate showing the insurance in force. The amount of such public liability insurance shall have limits not less than those known as $250,000/$500,000/$100,000. 2. Liquor liability (where applicable). 3. Lessee agrees to carry employer's liability insurance and Workmen's Compensation insurance, and to furnish a certificate thereof to the City, if applicable. 4. Insurance contracts providing liability insurance and Workmen's Compensation shall provide for not less than 30 days/written notice to the City of cancellation or expiration or substantial change in policy conditions and coverage. 5. Lessee agrees that waiver of subrogation against the City shall be requested of lessee's insuror, and shall be provided at no cost to the City. 6. Cross Liability: It is understood and agreed that the insurance afforded by this policy or policies for more than one named insured, small not operate to increase the limits of the company's liability, but otherwise shall not operate to limit or void the coverage of any one named insured as respects claims against the same named insured or employees of such other named insured. 7. The insurance procured by the lessee as herein required shall be issued in the name of the lessee and the City by a company licensed to do buriness in the State of Alaska, and shall contain endorsements that (a) such insurance may not be cancelled or amended with respect to the City without 30 days written notice by registered or certified mail to the City by the insurance company; and (b) Lessee shall be solely responsible for payment of premiums and that City shall not be required to pay any premiums for such insurance. 21-20 8. The amount of insurance coverage required above may be subject to review for increase at each 5 year renegotiation of the lease. 9. Upon review by the City, the lessee may be required to obtain such other insurance protecting the City and lessee that may be necessarily required or advisable owing to the particularities of the harbor related activities on the lease hold interest. 21.20.660 Insurance of Users -Subtenants: Lessee, for its own protection, may require bona fide public users and subtenants to execute agreements holding lessee harmless from actions arising out of user's operations and may require such bona fide public users and subtenants to show proof of public liability insurance covering their operations on the demised premises in such amounts as will adequately protect them. 21.20.670 Annual Report: The lessee may be required to submit to the City each year on or about March 15, an annual report on its operations, particularly those services and facilities offered to the public, whether on a fee or non -fee basis. 21.20.680 Arbitration: In the event the City and lessee shall be unable to agree as to any matter provided for in the lease except as to the amount of the 5 year, rent redetermination amount which is handled pursuant to section 180, such dispute shall be determined by 3 disinterested arbitrators, (unless the parties can agree on one arbitrator). Such arbitration shall be conducted upon request of either the City or the lessee, before 3 arbitrators (unless the City or the lessee agree to one arbitrator) designated by the American Arbitration Association and in accordance with the rules of such Association. The arbitrators designated and acting under this lease shall make their award in strict conformity with such rules and shall have no power to depart from or change any of the provisions thereof. The expense of arbitration proceedings conducted hereunder shall be borne equally by the parties. The proceedings shall take place in Kenai, Alaska unless otherwise agreed upon by the parties. 21-21 A. 0 21.20.690 Modifications of Existing Leases: Leases shall only be modified to that extent deemed to be necessary to protect the public's interest. 21.20.700 Unauthorized Removed of Material Prohibited: Any person, firm or corporation who without written authority from the City removes rock, gravel or other material from the lands owned by the City without the express consent of the City shall be deemed guilty of a misdemeanor. Any criminal action taken against such person shall not preclude the institution of civil proceedings by the City. 21.20.710 Removal Not Authorized By Lease: No deed or lease granted by the City to any person shall contain terms or be construed as granting any right to remove material from City lands. 21.20.720 Disposition of Rights By Council: In recognition that conditions may exist from time to time whereby use of such lands and the material comprising the same may be beneficial to the public interest and promote the progress and development of the City, applications for the use thereof may be received and considered by the Harbor Commission, providing such applications fully disclose to the City all material facts and plans for the proposed use. Such applications shall be consistent with the Comprehensive Plan of the City and referred to the City Planning Commission for its recommendations. Disposition of such applications shall be made by the Council after recommendation from the Harbor Commission. 21.20.730 Penalties: 1. It is unlawful for any person to violate any of the provisions of this chapter and upon conviction thereof shall be fined in an amount not exceeding $100. Each day such violation is committed or permitted to continue shall constitute a separate offense and shall be punishable as such hereunder. 2. In addition to or as an alternative to the above penalty provision, the City may impose a civil penalty not to exceed $100 per day for the violation of any provision of this chapter and seek injunctive relief for any infraction thereof for which the offending party will be charged for reasonable attorney's fees and costs incurred by the City as 21-22 i ' I "T 11 1 awarded by the court. 3. Nothing in this section shall be deemed to restrict the City's exercise of any of its rights pursuant to the lease agreement including those enumerated in section and hereof. { Ur.�; �✓ �� 21-23 --1 CITY OF KENAI ORDINANCE NO. 532-79 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ESTABLISHING A PROCEDURE FOR THE LEASING OF TIDE LANDS. WHEREAS, the City of Kenai received title to tide and submerged lands within the City limits from the State on January 6, 1977, and WHEREAS, it is appropriate and in the public interest that policies and procedures be developed for the leasing of said _ lands on a long term basis to individuals or entities who will construct improvements or beneficial industries thereon, NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA as follows: Section 1: A new chapter 20 is added to Title 11 of the Kenai Code of 1979 (Harbor and Harbor Facilities) which chapter shall be called "Leasing of Tidelands" in the form as attached hereto and made a part hereof. PASSED BY THE COUNCIL OF THE CITY KENAI, ALASKA this 7th day of November, 1979. A/ VI CENT O'REILLY, MAYOR First Reading: October 17, 1979 Second Reading: November 7, 1979 Effective Date: December 7, 1979 �:; �� ,•fir -'JM 13 Tr - LEASING OF TIDELANDS: 11.20.010 Policy: The City, in order to make sites available for beneficial industries, may lease City -owned tidelands to persons who agree to operate a beneficial industry upon the terms and conditions the Council considers advantageous to the City. 11.20.020 Lands Available for Leasing: All classified tide and contiguous submerged land within the limits of the City to which the City holds title may be leased as hereinafter provided, for surface use only, and under the condition that said lease is subject and inferior to preference right claims that may be made within a two year filing period for preference rights and subject to the rights of existing set net site holders within the city limits. 11.20.030 Qualifications of Applicants: An applicant for a lease is qualified if the applicant (1) is an individual at least 19 years of age or over, or (2) is a group, association or corporation which is authorized to conduct business under the laws of Alaska. 11.20.040 Classification Prior to Lease Required: Before accepting applications to lease tidelands, the area involved shall have first been classified for leasing by the City Council with the approval of the Advisory Planning and Harbor Commissions, and their availability advertised in a newspaper of general circulation in the area once each week for 2 successive weeks not less than 30 days prior to the time set for the closing of the acceptance of applications, and that all applications are available for public inspection at the City Hall offices. 11.20.050 Applications: All applications for lease of tidelands shall be filed with the Clerk on forms provided by her and available at City Hall which shall upon execution of the lease become part of the lease document. Only forms completed in full and accompanied by a $100 filing fee will be accepted for filing. Filing fees are not refundable. With every application the applicant shall submit a development plan showing and stating (1) the purpose of the proposed lease (2) the use, value and nature of improvements to be constructed (3) the type of construction and (4) dates construction is estimated to commence and be completed (5) whether intended use complies with the zoning ordinance and comprehensive plan of the City (6) describe by reference to the plat the area to be leased (7) a detailed financial plan showing ability to carry through with the development plan (8) a performance bond of 5% of the project's estimated cost (which bond shall not exceed $50,000) payable to the City. 11.20.060 Rights Prior to Leasing: Neither the filing of an application for a lease nor the holding of a public hearing thereon as provided below, shall give the applicant a right to a lease or to the use of the land applied for. Any use not authorized by a lease shall constitute a trespass against the City. 11.20.070 Procedure: 1. Advisory Planning and Zoning Commission: All lease applications shall be reviewed first by the City of Kenai Advisory Planning & Zoning Commission to determine whether the contemplated use falls within that permitted under the zoning ordinance. 2. Advisory Harbor Commission: All lease applications shall be reviewed by the Advisory Harbor Commission. If the commission after considering the lease applications determines at a public hearing as set forth in the section below that any one lease will be in the best interests of the City of Kenai, the Commission may make a recommendation to the City Council of applicant along with any modifications or conditions recommended by the Commission. 3. City Council: The City Council shall make the final determination of the selection of the applicant based upon the Advisory Harbor Commission's recommendation and approve or reject the choice of application made. 11.20.080 Public Notice -Public Hearing: Notice of the lease application shall be published in a newspaper of general circulation within the City not less than 10 nor more than 30 days prior to the date of public hearing. The notice must contain the name of the applicant, a brief description of the land, proposed use, term, and a declaration that the Advisory Harbor Commission will consider the lease to the applicant on the basis of the applicant's agreement to operate a beneficial industry upon the terms and conditions 11-25 as set forth in its application which is available for public inspection at the City Hall offices. The notice shall state the date upon which public hearing will be held before the Advisory Harbor Commission for consideration of the application. 11.20.090 Selection of Applicant: After the hearing provided in section 080 above, the Advisory Harbor Commission may make its recommendation of the applicant to the City Council if in the Advisory Harbor Commission's opinion, on the basis of all the testimony presented, the award of the prospective lease will be advantageous to the City and in the best interests of the public welfare, health and safety. In the alternative, the Advisory Harbor Commission may elect to make no recommendation for any applicant giving its reasons therefor. The Advisory Harbor Commission may impose additional conditions upon the applicant before making its award. The decision of the Council shall be posted on the City Bulletin Board the day after the hearing and remain posted for 10 days. 11.20.100 Appeal: Any person disagreeing with the decision of the Council iaay appeal the decision by filing suit in the Superior Court, Third Judicial District at Kenai, within 10 days from the date of the posting of Council's decision. 11.20.110 Appraisal and Survey of Leased Lands: The City will furnish a survey and appraisal of the land in question prior to leasing. Any resurveying or replatting required will be the applicant's responsibility and expense. 11.20.120 The Lease Document -Terms: Leases may be issued for a term of not less than 2 years nor more than 99 years. The applicant shall state in his application the term desired. In determining whether to grant a lease for the requested term, the Council shall consider the nature, extent and cost of the improvements which the applicant agrees to construct thereon as a condition of the lease the time required to amortize the proposed investment, the value of the applicant's proposed use to the economy of the City and other relevant factors. The term of the lease may be extended for a number of successive periods for a set number of years each as long as the appropriate extensions and original term do not exceed 99 years. i 11-26 1 I- i 11.20.130 Appraisal: No land shall be leased, or a renewal lease issued, unless the same has been appraised within a six month period prior to the date fixed for beginning of the term of the lease or renewal lease. No land shall be leased for less than the approved, appraised annual rental, according to the method as described in section 150(1) below except to State or Federal agencies or their subdivisions if it is in the public interest to do so. Appraisals shall reflect the number and value of City services rendered the land in question. 11.20.140 Review: No leased land may be changed in use, nor may any renewal lease be issued until the proposed use or renewal has been reviewed by the Planning Commission and approved by the Council. 11.20.150 Annual Minimum Rental: 1. Annual minimum rentals shall be computed from the approved appraised market value utilizing the method as described in section 160(1) below. Annual minimum rental shall include: (a) Taxes pertaining to the leasehold interest of the Lessee. (b) Sales tax now enforced or levied in the future computed upon rent payable in monthly installments whether rent is paid on a monthly or yearly basis. (c) All taxes and assessments levied in the future by the City of Kenai, as if Lessee was considered the legal owner of record of the Leased Property. (d) Interest at the rate of eight percent (8%) per annum and ten percent (10%) penalties of any amount of money owed under this Lease which is not paid on or before the date it becomes due. (e) All sales taxes due on payments under this lease and to all sales taxes applicable to its operations. (f) All special assessments for public improvements levied by the City of Kenai, as if Lessee were considered legal owner of leased property. 2. Upon execution of the lease the lands demised become taxable to the extent of its leasehold interest and lessee shall pay all real property taxes levied upon such leasehold interest in these lands, that the City as part of the consideration of rental payments depends and relies upon the payment by the lessee of said assessments and taxes as if he were the owner of said demised land. 3. Rent shall be paid annually in advance. Said payments shall be prorated to conform with the City of Kenai's fiscal year beginning July 1 and ending June 30. If 11-27 4 the equivalent monthly payment exceeds $200, then the lessee shall have the option of making payments on a monthly or quarterly basis. 11.20.160 Principles and Policy of Lease Rates: 1. To insure a fair return, all leases for a period in excess of 5 years shall include a redetermination clause as of the fifth anniversary of each lease, normally set for the 1st of July of that fifth year. In pursuing a fair return, all lands for lease shall be appraised prior to lease and again prior to redetermination. Therefore, lease rates shall be based on: (a) fair market value of the land, including an appropriate consideration of facilities and services available (public water, public sewer, storm sewers and other public utilities) as determined by a qualified independent appraiser, considering the best use of the specific land; and (b) the actual rate of return determined to be a fair return to the City shall be set annually by resolution of the City Council and shall apply to all leases thereafter requested. The evaluation shall discount not only structural improvements made to the land by lessee but improvements made by way of gravel or other approved fill placed on the land. 2. Realizing that investors, developers and other potential lessees need a reasonable assurance of stability in future lease rates, the redetermination clause of all future leases shall include the following language: "At each 5-year interval, the fair market value shall be determined by qualified, independent appraisers. The redetermined lease rate, (annual rent) under this provision shall be limited to a 50% increase in the prior lease rate until the 30th year anniversary of the lease after which the 50% cap provision shall no longer apply and the lease rate shall be redetermined every 5 years on the basis of fair market evaluation as deter- mined in Section 080(a)(a) and (b)." City leases of tidelands existing at the time of the enactment of this chapter shall have a 30 year period determined from the date from which the lease was originally entered into. 3. Failure by the City to insist upon renegotiation at the end of any given five-year period shall not constitute a waiver of the right of the City to insist upon renegotiation in any subsequent year, provided that neither the City nor the lessee shall have the right to insist upon renegotiation until 5 years shall have elapsed from the date the rental was last adjusted. 11-28 I -: 0 11.20.170 Responsibility to Properly Locate: It shall be the responsibility of the lessee to properly locate himself and his improvements on the leased land. It shall be unlawful to encroach on other lands of the City, or on lands owned or leased by another. 11.20.180 Lease Utilization: Leased lands shall be utilized for purposes within the scope of the application, the terms of the lease and in conformity w4th the ordinances of the City and Borough, and in substantial conformity with the comprehensive plan. Utilization or development for other than the allowed uses shall constitute a violation of the lease and subject the lease to cancellation at any time. Failure to substantially complete the development plan of the land within the specified time from the date of execution of the lease, consistent with the proposed use and terms of the lease, shall constitute grounds for cancellation. The lease shall set forth in detail with appropriate plans and specifications the improvements to be made within the time period described above. 11.20.190 Subleasing: Leases may provide for subleasing a portion of the leased land without prior Council approval. Subleases shall be in writing and be subject to the terms and conditions of the original lease. No approval of the City shall be given to the sublease of property until the lessee has substantially complied with the development plan. 11.20.200 Assignments: Except for assignments for collateral purposes, no lessee may assign the lands leased to him without prior Council approval. The assignee shall be subject to all of the provisions of the lease. Any attempted assignment made in violation of this section shall be void. Any assignment requiring Council approval will not be unreasonably denied. 11.20.210 Modification: No lease may be modified orally or in any manner other than by an agreement in writing, signed by all parties in interest or their successors in interest. Any such modification shall require Council approval. 11-29 11 d i, �t 0 11.20.220 Cancellation -Forfeiture: 1. Leases in good standing may be cancelled in whole, or in part, at any time upon mutual written agreement by lessee and the City Council. 2. Any lease used for an unlawful purpose may be cancelled. 3. If the lessee shall default in the performance or observance of any of the lease terms, covenants or stipulations thereto, or of the regulations now or hereafter in force, and should said default continue for 30 calendar days after service of written notice by the City without remedy by lessee of the conditions warranting default, the City shall subject lessee to appropriate legal action, including, but not limited to, forfeiture of the lease. No improvements may be removed by lessee or other person during any time the lessee is in default. This provision shall not be construed to prohibit the City from taking any appropriate legal action, including, but not limited to, forfeiture of the lease, immediately upon the occurrence of a default. 11.20.230 Default -Right Of Entry: Should default be made in the payment of any portion of the rent or fees when due or in any of the covenants or conditions contained in the lease or in any regulations now or hereinafter in force, then in such event the City shall give lessee 30 days after such written notice to cure such default or defaults, after which if the default is not cured, the City may terminate the lease, reenter and take possession of the premises, remove all persons therefrom. 11.20.240 Notice or Demand: Any notice or demand which under the terms of a lease or under any statute must be given or made by the parties thereto, shall be in writing and be given or made by registered or certified mail, addressed to the other party at the address of record. However, either party may designate in writing such new or other address to which such notice or demand shall thereafter be so given, made or mailed. A notice given hereunder shall be deemed delivered when deposited in a U.S. general or branch post office, enclosed in a registered or certified mail envelope, addressed as hereinabove provided. 11.20.250 Financing -Rights of Mortgaqee or Lienholder: 1. For the purpose of interim or permanent financing or refinancing from time to time of the improvements to be placed upon the leased premises, and for no other purpose, a lessee, after giving written notice thereof to the City, may 11-30 S encumber by mortgage, deed of trust, assignment or other appropriate instrument, the lessee's interest in the leased premises and in and to the lease, provided such encumbrance pertains only to such leasehold interest and does not pertain to or create any interest in the City's title to the leased premises. If such mortgage, deed of trust, or assignment shall be held by a bank or other established lending or financial institution (which terms shall include an established insurance company and qualified pension or profit sharing trust) and such institution shall acquire the lessee's interest in such lease as a result of a sale under said encumbrance pursuant to a foreclosure 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, such lending institution shall have the privilege of transferring its interest in such lease to a nominee or a wholly owned subsidiary corporation J with the prior consent of the City, provided, however, such transferee shall assume all of the covenants and conditions required to be performed by the lessee, whereupon such lending institution shall be relieved of any further liability under such lease from any after such transfer. Such lending ! institution or the nominee or wholly owned subsidiary corporation to which it may have transferred such lease, or any other lending institution which may at any time acquire such lease, shall be relieved of any further liability under such lease from and after a transfer of such lease. J 2. A leasehold mortgagee, beneficiary of a deed of trust or security assignee, shall have and be subrogated to any and all rights of the lessee with respect to the curing of any default hereunder by lessee. 3. If the holder of any such mortgage, or the beneficiary of any such deed of trust, or the security assignee shall -=— give the City before any default shall have occurred in the lease, a written notice containing the name and post office { address of such holder, and City shall thereafter give to such holder a copy of each notice of default by the Lessee at the same time as any notice of default shall be given by the City to the lessee, and the City will not thereafter accept any surrender or enter into any modification of this lease without the prior written consent of the holder of any first mortgage, beneficial interest under a first deed of trust, or security assignee, in this lease. 4. If, by reason of any default of the lessee, either this lease or any extension thereof shall be terminated at the election of the City prior to the stated expiration therefor, the City will enter into a new lease with the ' leasehold mortgagee for the remainder of the term, effective as of the date of such termination, at the rent and additional rent, and on the terms herein contained, subject to the II/ _ following conditions: 11-31 1 (a) Such mortgagee, beneficiary or security assignee, shall make written request to the City for such new lease within 20 days after the date of such termination and such written request shall be accompanied by a payment to the City of all sums then due to the City under the lease. (b) Such mortgagee, beneficiary or security assignee, shall pay to the City, at the 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 City shall have been subjected by reason of such default. (c) Such mortgagee, beneficiary or security assignee shall, on or before the execution and delivery of such new lease, perform all the other conditions required to be performed by the lessee to the extent that the lessee shall have failed to perform such conditions. 5. If a lending institution or its nominee or wholly owned subsidiary corporation shall hold a mortgage, deed of trust, or similar security interest in and to this lease and shall thereafter acquire a leasehold estate, derived either from such instruments or from the City, and if such institution, nominee, or corporation shall desire to assign this lease or any new lease obtained from the City (other than to a nominee or to a wholly owned subsidiary corporation as permitted by the above provisions) to an assignee who will undertake to .1 perform and observe the conditions in such lease required to be performed by the lessee, the City shall not unreasonably withhold its consent to such assignment and assumption, and any such lending institution, nominee, or subsidiary shall be relieved of any further liability under such lease from and after such assignment. If the proposed assignor shall assert that the City in unreasonably withholding its consent to any such proposed assignment, such dispute shall be resolved by arbitration. 11.20.260 Entrx and Re-entry: In the event that the lease should be terminated as hereinbefore provided by summary proceedings or otherwise, or in the event that the demised lands or any part thereof should be abandoned by the lessee during the said term, the lessor or its agents, servants or representatives may, immediately or any time thereafter, re-enter and resume possession of said lands or such pert thereof, and remove all persons and property therefrom, either summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefor. No re-entry by the lessor shall be deemed an acceptance of a surrender of the lease. U 1 11-32 11.20.270 Re -lease: In the event that a lease should be terminated as herein provided, or by summary proceedings, or otherwise, the Harbor Commission may offer said lands for lease or other appropriate disposal, pursuant to the provisions of this ordinance. 11.20.280 Forfeiture of Rental: In the event that the lease should be terminated because of any breach by the lessee as herein provided, the annual rental payment last made by the lessee shall be forfeited and retained by the lessor as partial or total liquidated damages for said breach. 11.20.290 Right of Inspection: City shall have the right at all reasonable t es to enter the premises, or any part thereof, for the purposes of inspection. 11.20.300 Easement Grants Reserved: City reserves the right to grant and control easements in, or above the land leased. No such grant or easement will be made that will unreasonably interfere with the lessee's use of the land, and lessee shall have free access and use of any and all parking and loading rights, rights of ingress and egress now or.hereafter appertaining to the leased premises. 11.20.310 Lease Subordinate to Financing Requirements: Lessee agrees that City may modify the lease to meet revised 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 this lease, nor act to cause the lessee financial loss. 11.20.320 Written Waiver: The receipt of rent by the lessor with knowledge of any breach of the lease by the lessee, or any default on the part of the lessee in observance or performance of any of the conditions or covenants of the lease, shall not be deemed to be a waiver of any provisions of the lease. No failure on the part of the lessor to enforce any covenant or provision therein contained, nor any waiver of any right thereunder by the lessor, unless in writing, shall discharge or invalidate such covenants or provisions, or affect the right of the lessor to enforce the 11-33 0 same in the event of any subsequent breach or default. The receipt, by the lessor, of any rent or any other sum of money after the termination, in any manner, of the term therein demised, or after the giving by the lessor of any notice thereunder to effect such termination, shall not reinstate, continue or extend the resultant term therein j demised, destroy or in any manner impair the efficacy of any such notice or termination as may have been given thereunder by the lessor to the lessee prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by the lessor. 11.20.330 Surrender on Termination: Lessee shall, on the last day of the term of this lease or upon any earlier termination of this lease, surrender and deliver up 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 l- t necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by City in writing, and free and clear of all liens and encumbrances other than those created by City for loans to the City. Upon the end of the term of this lease or any earlier termination thereof, title to the buildings, improvements and building equipment shall automatically vest in the City without requirement of any deed, conveyance or bill of sale document in confirmation hereof, lessee shall execute, acknowledge and deliver the same and shall pay any charge, tax and fee asserted or imposed by any and all governmental units in connection therewith. 11.20.340 Sanitation: The lessee shall comply with all regulations or ordinances of the City which are pro- mulgated for the promotion of sanitation. The premises of the lease shall be kept in a neat, clean and sanitary condition, and every effort shall be made to prevent the pollution of water. 11.20.350 Building and Zoning Codes: Leased lands shall be utilized in accordance with the building and zoning ordinances and rules and regulations of said authority. Failure to do so shall constitute a violation of the lease. 11-34 11.20.360 Rules: The lessee shall observe, obey and comply with all applicable rules, etc., of the State or Federal governments. 1. City reserves the right to adopt, amend and enforce reasonable rules and regulations governing the demised premises and the public areas and facilities used in connection therewith. Except in cases of emergency, no rule or regulation hereafter adopted or amended by the City shall become applicable unless it has been given 30 days notice of adoption or amendment thereof. 2. Lessee, in the conduct of its operations on the demised premises, shall observe, obey and comply with any and all applicable rules, regulations, laws, ordinances, or orders of any governmental authority, federal or state, lawfully exercising authority over lessee or lessee's conduct of its business. 3. City shall not be liable to lessee for any diminution or deprivation of possession, or of its rights hereunder, on account of the exercise of any such right or authority as in this section provided, nor shall lessee be entitled to terminate the whole or any portion of the leasehold estate herein created, by reason of the exercise of such rights or authority, unless the exercise thereof shall so interfere with lessee's use and occupancy of the leasehold estate as to constitute a termination in whole or in part of this lease by operation of law in accordance with the Laws of the State of Alaska and of the United States made applicable to the states. 11.20.370 Aircraft Operations Protected: 1. The City shall reserve to itself 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 and all improvements approved by the City of the premises conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now or hereafter used for navigation of or flight in the air, using said airspace of landing at, taking off from, or operating on the Kenai Airport. (when plans for improvements pursuant to section 230 are approved by the City, the City to the extent of those improvements releases the easements here expressed.) 2. The lessee by accepting conveyance expressly agrees for itself, its representatives, successors, and assigns, that it will not erect nor permit the erection of any structure or object; on the land conveyed, which would be an airport obstruction within the standards established under the Federal Aviation Administration Regulations, Part 77, as amended. In the event the aforesaid covenant is breached, 11-35 the.City reserves the right to enter on the land conveyed hereunder and to remove the offending structure or object, all of which shall be at the expense of the lessee or its heirs, successors, or assigns. 11.20.380 Right to Enjoyment And Peaceable Possession: The City shall agree and covenant 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 enjoy the said leased premises, except f that any inconvenience caused by public works projects in or about the leasehold premises shall not be construed as a j denial of the right of quiet or peaceable possession. . 11.20.390 Lessee To Pay Taxes: Lessee shall pay all lawful taxes and assessments which, during the term thereof may become a lien upon or which may be levied by the State, Borough, City or any other taxlevying body, upon any taxable possessory right which lessee may have in or to the reason of its use or occupancy, provided, however, that nothing herein contained shall prevent lessee from contesting as any other land owner any increase in such tax or assessment through procedures outlined in State statutes. 11.20.400 No Partnership or Joint Venture Created: The City shall not be construed or held to be a partner or . joint venturer of lessee in the conduct of business on the demised premises; and it is expressly understood and agreed that the relationship between the parties thereto is, and i shall at all times remain that of landlord and tenant. „. 11.20.410 Default Bankruptcy: If the lessee shall make any assignment for the benefit of creditors or shall be adjudged a bankrupt, or if a receiver is appointed for the lessee or lessee's assets, or any interest under this lease, and if the appointment of the receiver is not vacated within 30 days, or if a voluntary petition is filed under Section 18(a) of the Bankruptcy Act by the lessee, then and in any event, the City may, upon giving the lessee 30 days' notice, terminate this lease. 11.20.420 Nondiscrimination: The lessee, for himself, his heirs, persona represen a Ives, successors in interest, 11-36 4 and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land, that: 1. No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; 2. In the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation, denied the benefits of, or otherwise be subjected to discrimination; 3. The lessee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally -assisted Programs of the Department of Trans- portation --Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended; 4. In the event facilities are constructed, maintained, or otherwise operated on the said property described in this lease, for a purpose involving the provision of similar services or benefits, the lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally -assisted Programs of the Department of Trans- portation -- Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. 11.20.430 Partial Invalidity: If any term, provision, condition or part of the lease is 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 such declaration was not made. 1.1.20.440 Parole Modifications: It shall be mutually understood and agreed between*he parties that the agreement, as written, shall cover all the agreements and stipulations between the parties; and no representations, oral or written, have been made modifying, adding to, or changing the terms thereof. 11.20.450 Amendment of Lease: Notwithstanding anything to the contrary, in order to aid the lessee in the financing 11-37 at of the improvements to be situated herein, the City shall agree that in the event the proposed mortgagee, beneficiary or security assignee under any interim or permanent loan on the security of the leasehold interest of the lessee and the improvements to be situated thereon so requires, the City will make a reasonable effort to amend this lease in order to satisfy such requirements upon the express condition and understanding, however, that such variance in language will not materially prejudice the City's rights thereunder nor be such as to alter in any way the rental obligations of the lessee hereunder nor its obligations to comply with all existing laws and regulations of the City relating to the leasing of airport lands, and to all applicable Federal statutes, rules, and regulations, and all covenants and conditions of the deed by which the City holds title to the land. 11.20.460 Compliance With Laws: Lessee shall comply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the leased premises or the sidewalks, alleys, streets, and way adjacent thereto or any buildings, structures, fixtures and improvements or the use thereof, whether or not any such laws, ordinances and regulations 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 harmless: 1. From the consequences of any violation of such laws, ordinances and/or regulations; and 2. From all claims for damages on account of injuries, death, or property damage resulting from such violation. Lessee further agrees it will not permit any unlawful occupation, business or trade to be conducted on said premises or any use to be made thereof contrary to any law, ordinance or regulation as aforesaid with respect thereto. 11-20.470 Care of Premises: Lessee, at its own cost and expense, shall keep the leased premises, all improvements which at any time during the term of this lease may be situated thereon, and any and all appurtenances thereunto belonging, in good condition and repair during the entire term of this lease. 11.20.480 Lessee's Obligation to Remove Liens: Lessee will not permit any liens including, but not limited to, 11-38 mechanics', laborers', or materialmen's liens obtainable or available under the then existing laws, to stand against the leased premises or improvements for any labor or material furnished to lessee or claimed to have been furnished to lessee or to lessee's agents, contractors, or sublessees, in connection with work of any character performed or claimed to have been performed on said premises or improvements by or at the direction or sufference of lessee, provided, however, 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. On final determination of such lien or such claim for lien, 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. 11.20.490 Condemnation: In the event the leased 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 such condemnation, there shall be such division of the proceeds, such abatement in rent payable during the term or any extension of the term hereof, and such other adjustments as the parties may agree upon as being just and equitable under all the circumstances. If the City and lessee are unable to agree within 30 days after such an award has been paid into court, upon what division, annual abatement in rent, and other adjustments are just and equitable, the dispute shall be determined by arbitration provided in section 660 hereof. 11.20.500 Protection of Subtenants: To protect the position of any subtenant(s) hereafter properly obtaining any interests in the leasehold estate granted lessee hereunder, the City agrees that in the event of the cancellation, termination, expiration or surrender of this lease (the ground lease), the City will accept the subtenant, its successors and assigns, as its lessee for a period equal to the full elapsed portion of the term of the sublease, including any extensions or renewals thereof not exceeding the term of this lease, upon the same covenants and conditions therein contained, to the extent that said covenants and conditions are not inconsistent with any of the terms and conditions of this lease, provided such subtenant shall make full and complete attornment to the City for the balance of the term of such sublease so as to establish direct privity of estate and contract between the City and the subtenant with the same force and effect as though such sublease was originally 11-39 made directly between the City and such subtenant; and further provided such subtenant agrees to comply with all the provisions of the ground lease and all the terms of any mortgage, deed of trust or security assignment to which such leasehold estate is subject, except the payment of rent under the ground lease and the payment of any debt service under any such mortgage, deed of trust or security assignment. 11.20.510 Successors In Interest: This lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations or assignment as are provided for herein. 11.20.520 Governing Law: The indenture of lease shall be governed in all respects by the laws of the State of Alaska. 11.20.530 Notices: 1. Any notices required by the lease shall be in writing and shall be deemed to be duly onl if delivered personally or mailed b certified or given Y P Y Y registered mail in a prepaid envelope addressed as follows: To City: City Hall -City of Kenai P O Box 580 Kenai, Ak 99611 To Tenant: The City shall also mail a copy of any notice given to the lessee, by registered or certified mail, to any leasehold lender (mortgagee, beneficiary of a deed of trust, security assignee) who shall have given the City notice of such mortgage, deed of trust or security assignment. 2. Any such addresses may be changed by an appropriate notice in writing to all other parties affected provided such change of address is given to the other parties by the means outlined in paragraph 1 above at least 15 days prior to the giving of the particular notice in issue. 11.20.540 Fire Protection: The lessee will take all reasonable precaution to prevent and take all necessary action to suppress destructive or uncontrolled grass, brush or other fires on leased lands, and comply with all laws, regulations and rules promulgated and enforced by the City for fire protection within the area wherein the leased premises are located. 11-40 0 11-20.550 Inspection: The lessee shall allow authorized representatives of the City to enter the leased land for inspection at any reasonable time. 11.20.560 Personal Use of Materials: All coal, oil, gas and other minerals and all deposits of stone or gravel valuable for extraction or utilization and all materials subject to Title II, Division I, Chapters 4, 5 and 6 of the Alaska Administrative Code are excepted from the operation of a surface lease. Specifically, the lessee of the surface rights shall not sell or remove for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material valuable for building or commercial purposes; provided, however, that material required for the development of the leasehold may be used if its use is first approved by the City. 11.20.570 Restrictions and Reservations: The lease shall contain such restrictions and reservations as are necessary to protect the public interest. 11.20.580 Waste and Iniury to Land: If any person shall commit waste, trespass or other injury upon City land, the person so offending, in addition to being civilly liable for any damages caused, shall be deemed guilty of a misdemeanor. 11.20.590 Warranty: The City does not warrant by its classification or 1 sae ni g of land that the land is ideally suited for the use authorized under said classification or lease, and no guaranty is given or implied that it shall be profitable to employ land to said use. City bears no responsibility for any water erosion of land. 11.20.600 Approval of Other Authorities: The issuance by the City of leases does not relieve the grantee or lessee of responsibility of obtaining licenses or permits as may be required by duly authorized Borough, State or Federal agencies. 11-41 M 11.20.610 Title Restrictions: All leases or sales of property shall be made subject to restrictions and reservations in the patent, deed or other instrument under which the City holds. 11.20.620 Insurance -Hold Harmless: Lessee shall covenant to save the City harmless from all actions, suits, liabilities, or damages resulting from or arising out of any acts of commission or omission by the lessee, his agents, employees, customers, invitees, or arising from or out of the lessee's occupation, or use of the premises demised, or privileges granted, and to pay all costs connected therewith. In this connection, the lessee shall agree to arrange and pay for all the following: 1. Public liability insurance protecting both the City and/or its agents and the lessee, such insurance to be evidenced by a certificate showing the insurance in force. The amount of such public liability insurance shall have limits not less than those known as $250,000/$500,000/$100,000. 2. Liquor liability (where applicable). 3. Lessee agrees to carry employer's liability insurance and Workmen's Compensation insurance, and to furnish a certificate thereof to the City, if applicable. 4. Insurance contracts providing liability insurance and Workmen's Compensation shall provide for not less than 30 days written notice to the City of cancellation or expiration or substantial change in policy conditions and coverage. 5. Lessee agrees that waiver of subrogation against the City shall be requested of lessee's insuror, and shall be provided at no cost to the City. 6. Cross Liability: It is understood and agreed that the insurance afforded by this policy or policies for more than one named insured, shall not operate to increase the limits of the company's liability, but otherwise shall not operate to limit or void the coverage of any one named insured as respects claims against the same named insured or employees of such other named insured. 7. The insurance procured by the lessee as herein required shall be issued in the name of the lessee and the City by a company licensed to do business in the State of Alaska, and shall contain endorsements that (a) such insurance may not be cancelled or amended with respect to the City without 30 days written notice by registered or certified mail to the City by the insurance company; and (b) Lessee shall be solely responsible for payment of premiums and that City shall not be required to pay any premiums for such insurance. 11-42 i 8. The amount of insurance coverage required above may be subject to review for increase at each 5 year renegotiation of the lease. 9. Upon review by the Kenai Advisory Iiarbor Commission, the lessee may be required to obtain such other insurance protecting the City and lessee that may be necessarily required or advisable owing to the particularities of the harbor related activities on the lease hold interest. i 11.20.630 Insurance of Users -Subtenants: Lessee, for !1 its own protection, may require bona fide public users and subtenants to execute agreements holding lessee harmless j from actions arising out of user's operations and may require such bona fide public users -and subtenants to show proof of public liability insurance covering their operations on the demised premises in such amounts as will adequately protect }f them. l i 11.20.640 Annual Report: The lessee may be required { to submit to the City each year on or about March 15, an annual report on its operations, particularly those services and facilities offered to the public, whether on a fee or non -fee basis. I 11.20.650 Tidelands Claims: The City shall lease the subject land subject to any preference rights claims made pursuant to the provisions of Alaska Statute 38.05.320 or Ordinance #455-78 dated September 5, 1979 of the City of Kenai adopted pursuant thereto, and the lessee holds lessor harmless for any damages, legal expenses, or compensation necessitated by the resolution or satisfaction of said claims, if any. 11.20.660 Subjection to Harbor Ordinance: All leases are subject to the terms, conditions and regulations imposed by Title II, Harbor and Harbor Facilities, of the 1979 Kenai Code of ordinances as amended of which this section is a part. 11.20.670 Arbitration: In the event the City and lessee shall be unable to agree as to any matter provided for in the lease except as to the amount of the 5 year rent redetermination amount which is handled pursuant to section 11-43 I 180, such dispute shall be determined by 3 disinterested arbitrators, (unless the parties can agree on one arbitrator). Such arbitration shall be conducted upon request of either the City or the lessee, before 3 arbitrators (unless the City or the lessee agree to one arbitrator) designated by the American Arbitration Association and in accordance with the rules of such Association. The arbitrators designated and acting under this lease shall make their award in strict conformity with such rules and shall have no power to depart J from or change any of the provisions thereof. The expense I of arbitration proceedings conducted hereunder shall be borne equally by the parties. The proceedings shall take place in Kenai, Alaska unless otherwise agreed upon by the parties. 11.20.680 Provisions Regulating Public Use Purpose: The City Council real zes that only a limited area of tidelands bordering navigable waters are available within the City of 1 Kenai and which are owned by the City of Kenai. It would be ' j i in the public interest to insure that these lands do not i pass out of community control at least to the extent that p the public would not be deprived of harbor services at reasonable rates in the future. Therefore, areas of City owned tidelands which are developable for the bona fide •, --_ public purposes as enumerated below shall be leased only with the following covenants defined to insure public use and access at reasonable rates. - 11.20.690 The following provision shall be included in leases where harbor facilities are constructed to be utilized ` all or in part for bona fide public uses. 11.20.700 Public Use: Defined: Public use shall mean a use limited in part oi, in whole to the following: ? in general the lessee may use the demised premises or V part thereof for any of the following purposes only: .. (1) Public dock facilities (2) Maritime commerce j (3) Transportation (4) Fishing _T- (5) Boat harbor (6) Port and water front development purposes Before lessee may conduct any activities which fall under this general criteria, but are not specifically men- tioned above, lessee must obtain written consent of the City. _ 11-44 F 11.20.710 Controlled Access: Lessee, for its own protection, may construct or install fences, gates or other types of barriers to restrict access to portions of the demised premises that are not designated for a public use and may provide reasonable controls for access to public use areas to allow for security for such areas while insuring reasonable public access. Reasonable public access includes accommodations made for fishing operations during fishing season. 11.20.720 Use Charges': Lessee shall make reasonable and non-discriminatory charges to the public for use of any of its facilities. It is expressly recognized that lessee is entitled to a margin of profit, which should be fair, reasonable and competitive, and that City will cooperate to this end in considering rates and fees. The Commission shall review all rate structures annually. The lease shall contain an arbitration provision as set forth in section 670 to resolve disputes arising hereunder. 11.20.730 Maintenance of Dock: Lessee covenants that it will maintain the dock facility in a safe condition and in accordance with applicable state and federal standards. 11.20.740 Modifications of Existing Leases: Leases shall only be modified to that extent deemed to be necessary to protect the public's interest. 11.20.750 Unauthorized Removed of Material Prohibited: Any person, firm or corporation who without written authority from the City removes rock, gravel or other material from the lands owned by the City without the express consent of the City shall be deemed guilty of a misdemeanor. Any criminal action taken against such person shall not preclude the institution of civil proceedings by the City. 11-45 11.20.760 Removal Not Authorized By Lease: No deed or lease granted by the City to any person shall contain terms or be construed as granting any right to remove material from City lands. 11.20.770 Disposition of Rights By Council: In recognition that conditions may exist from time to time whereby use of such lands and the material comprising the same may be beneficial to the public interest and promote the progress and development of the City, applications for the use thereof may be received and considered by the Harbor Commission, providing such applications fully disclose to the City all material facts and plans for the proposed use. Such applications shall be consistent with the Comprehensive Plan of the City and referred to the City Planning Commission for its recommendations. Disposition of isucir applications shall be made by the Council after recommendation from the Harbor Commission. 11.20.780 Penalties: 1. It is unlawful for any person to violate any of the provisions of this chapter and upon conviction thereof shall be fined in an amount not exceeding $100. Each day such violation is committed or permitted to continue shall constitute a separate offense and shall be punishable as such hereunder. 2. In addition to or as an alternative to the above penalty provision, the City may impose a civil penalty not to exceed $100 per day for the violation of any provision of this chapter and seek injunctive relief for any infraction thereof for which the offending party will be charged for reasonable attorney's fees and costs incurred by the City as awarded by the court. 3. Nothing in this section shall be deemed to restrict the City's exercise of any of its rights pursuant to the lease agreement including those enumerated in section 220 and 240 hereof. 11-46 •. I 4 t�® AGENI)A i KENAI CITY rOCtiCIL - REGULAR MEETING OCTOBER 17. 1979 - 6: 00 P.Al. NATIONAL GUARD ARMORY PLEDGE OF ALLEGIANCE A. ROLL CALL AGENDA APPROVAL B. PUBLIC HEARINGS 1. Ordinance 527-79. establishing a capital project fund entitled "Addition to "Fort Kenay" and increasing estimated revenues and appropriations in such fund by $53,600. C. PERSONS PRESENT SCHEDULED TO BE HEARD 1. Air. Robert Borgen, Street Excavation Ordinance; 2. Mr. Richard Morgan - regarding attendance of Recreation Director at City Council meetings D. MINUTES 1. Altnutes of the regular meeting of October 3, 1979 2. Minutes of the special meeting of October 5, 1979 E. CORRESPONDENCE 1. Mr. James A. Elson F. OLD BUSINESS 1. Resolution 79-137, change of street name from Wildwood Extension to Cook Inlet Drive n G. NEW BUSINESS 1. Bills to be paid - bills to be ratified 2. Requisitions exceeding $500 3. Ordinance 529-79, "Kenai Senior Citizen Project FY 1979-80" 4. Ordinance 530-79. capital project entitled "willow Street Luminaires" 5. Ordinance 531-79, amendment to Airport lands ordinance 6. Ordinance 532-79, Tidelands Leasing Ordinance 7. Resolution 79-141, transfer of funds in the amount of 004 - Legal Department S. Resolution 79-142, amending Resolution 79-12. LSR&T program priorities 9. Resolution 79-143. transfer of funds,in the amount of $2,500 - Shop Budget 10. Resolution 79-144. awarding contract for architectural services - addition to Fort Kenay H. Payments to Wine, Corthell, Bryson and Freas I2. Payment to USKH - Kenai Aerial Photo/Asap 13. Lease of Airport Lands or Facilities - Gloria June Snoods and Sidney Urie �..,.,._..:.,w.. r ,:•.�. �_. . �..:. H. REPORTS 1. City Manager 2. City Attorney 3. Mayor (a) Appointment to Planning Commission 4. City Clerk 5. Finance Director 6. Planning 4 Zoning Commission 7. Kenai Peninsula Borough Assembly S. Harbor Commission 1. PERSONS PRESENT NOT SCHEDULED TO BE HEARD \/ ADJOURXIIENT TO JOINT MEET= WITH PLANNING COMMISSION r T- � — � —W KENAI CITY COUNCIL - REGULAR MEETING OCTOBER 17, 1979 - 6: 00 P.M. NATIONAL GUARD ARMORY MAYOR VINCENT O'REILLY PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Vincent O'Reilly, Edward Ambarian, Betty Glick and Ronald Malston. Absent: Michael Seaman, Philip Aber and Raymond Measles AGENDA APPROVAL Approved as distributed B . PUBLIC HEARINGS B-1: Ordinance 527-79 Mayor O'Reilly read Ordinance 527-79 by title only. "An ordinance establishing a capital project fund entitled"Addition to Fort Kenay" and increasing estimated revenues and appropriations in such fund by $53,600." There was no public comment. MOTION: Councilwoman Glick moved, seconded by Councilman Malston, for adoption of Ordinance 527-79, establishing a capital project "addition to Fort Kenay". Motion passed unanimously by roll call vote. ' C. PERSONS PRESENT SCHEDULED TO BE HEARD C-1: Mr. Richard Morgan Mr. Morgan, Chairman of the City Recreation Commission, came before Council to recommend a change in policy wherein City Department Heads are required to attend all Council meetings and, in particular, the Parks and Recreation Director being compelled to attend when he has to be in attendance at several evening activities for the recreation program. Mr. Morgan stated that Mr. McGillivray was vitally needed at these other activities 1aue atteno meetings of the Council would sometimes have a conflict ef"ntereft: `�' N;.e►.. Councilman Ambarian recommended that such requests go through the Administration as it was a matter for them to bring before Council. D. MINUTES l 1 1 1 i ti 10/17/79 - Page Two n D-1: Minutes of the regular meeting of October 3, 1979 Approved as corrected. D-2: Minutes of the special meeting of October 5, 1979 Approved as distributed E. CORRESPONDENCE E-1: James A. Elson Mayor O'Reilly acknowledged receipt of correspondence from Mr. Elson relative to the advertising of ordinances that are set for public hearing. F. OLD BUSINESS `. F-1: Resolution 79-137 " I MOTION: Councilwoman Glick moved, seconded by Councilman Malston, to bring the matter of Resolution 79-137 back from the table. r-1 � Motion passed unanimously by roll call vote. Mayor O'Reilly opened the meeting to the public and there was no comment. City Attorney Schlereth advised that Mr. Miller of KNA was contacted and had no objection to the change in the name of the street and further that the street dedication should be taking place in the very near future. MOTION: Councilwoman Glick moved, seconded by Councilman Ambarian, for adoption of Resolution 79-137, approving the recommendation of the Kenai Advisory Planning and r Zoning Commission to change a street name within the City of Kenai from "Wildwood Extension" to "Cook Inlet Drive" I Motion passed unanimously by roll call vote. G. NEW BUSINESS G-1: Bills to be paid - bills to be ratified -" MOTION: Councilwoman Glick moved, seconded by Councilman Ambarian, for approval of i bills to be paid and bills to be ratified as submitted in the Council packet. a 1 —_- l Motion passed unanimously by roll call vote. i£ i s - 10/17/79 - Page Three G-2: Requisitions exceeding $500 MOTION: Councilwoman Glick moved, seconded by Councilman Malston, for approval of requisitions exceeding $500 as submitted. Motion passed unanimously by roll call vote. G-3: Ordinance 529-79 Mayor O'Reilly read Ordinance 529-79 by title only. "An ordinance increasing estimated revenues and appropriations in the special revenue fund entitled "Kenai Senior Citizen Project FY 1979-90" in recognition of a grant increase from the State of Alaska". MOTION: Councilman Malston moved, seconded by Councilman Ambarian, for introduction of Ordinance 529-79, increasing revenues/appropriations in the Kenai Senior Citizen Project FY 1979-80. Motion passed unanimously by roll call vote. G-4: Ordinance 530-79 Mayor O'Reilly read Ordinance 530-79 by title only. "An ordinance increasing estimated revenues and appropriations in the capital project fund entitled "Willow Street Luminaires" by $13,042." MOTION: Councilman Ambarian moved, seconded by Councilman Malston, for introduction of Ordinance 530-79, increasing revenues/appropriations in the Willow Street Luminaires fund by $13,042. Motion passed unanimously by roll call vote. G-5: Ordinance 531-79 Mayor O'Reilly read Ordinance 531-79 by title only, "an ordinance amending the leasing of Airport Lands Ordinance." MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick, for introduction of Ordinance 531-79, amending the leasing of airport lands ordinance. Motion passed unanimously by roll call vote. G-6: Ordinance 532-79 Mayor O'Reilly read Ordinance 532-79 by title only. "An ordinance establishing a procedure for the leasing of tidelands." • 10/17; 79 - Page Four �- , MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick, for introduction of Ordinance 532-79, establishing a procedure for the leasing of tidelands. Motion passed unanimously by roll call vote. G-7: Resolution 79-141* Mayor O'Reilly read Resolution 79-141, transferring $300 in the Legal Department budget to provide funds for subscription books. There was no public comment. MOTION: Councilwoman Glick moved, seconded by Councilman Malston, for adoption of Resolution 79-141, transfer of funds within the Legal Department budget in the amount of $300. Motion passed unanimously by roll call vote. G-8: Resolution 79-142 Mayor O'Reilly read Resolution 79-142 by title only. "A resolution amending Res. 79-131 which established priorities for Local Service Roads and Trails (LSR&T) program funds." There was no public comment. MOTION: Councilman Ambarian moved, seconded by Councilman Malston, for adoption of Resolution 79-142, amending Res. 79-131, which established priorities fior the Local Service Roads and Trails program. , Motion passed unanimously by roll call vote. G-9: Resolution 79-143 Mayor O'Reilly read Resolution 79-143, transferring $2,500 in the Shop budget to provide E . ; monies to repair the transmission of Unit No. 13, Fire Truck. - There was no public comment. MOTION: Councilman Malston moved, seconded by Councilwoman Glick, for adoption of _t Resolution 79-143, transfer of funds in the amount of $2,500 in the Shop budget. _ Motion passed unanimously by roll call vote. . f G-10: Resolution 79-144 r i .f; 1. 10/17/79 - Page Five Mayor O'Reilly read Resolution 79-144 by title only. "A resolution of the Council awarding the contract for architectural services in design of the addition to Fort Kenay to Carmen Gintoli, Architect." There was no public comment. MOTION: Councilman Malston moved, seconded by Councilwoman Glick, for adoption of Resolution 79-144, awarding addition to Ft. Kenay to Carmen Gintoli for architectural services provided. Motion passed unanimously by roll call vote. G-U.- Payments to Wince-Corthell MOTION: Councilwoman Glick moved, seconded by Councilman Ambartan, for approval of payments to Wince, Corthell, Bryson and Freas as follows: 79-9-4 in the amount of $3,947.16 and 79-9 in the amount of $11,640.71. Motion passed unanimously by roll call vote. G-12: Payment to USKH MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick, for approval of payment in the amount of $22,410 to Unwin, Scheben, Korynta and Huettl for services provided in the Kenai Aerial Photo/Map project. Motion passed unanimously by roll call vote. G-13: Lease of Airport Space , MOTION: Councilman Ambarian moved, seconded by Councilwoman Glick, for approval of lease of Airport Terminal space (Lobby Space No. 2) , 300 square feet for annual rental of $2,160 to Gloria June Woods and Sidney Urie. Councilman Ambarian requested that the clause relative to the City moving the facility If need be also be included within the lease document. Motion passed by roll call vote with Councilman Malston voting no. H. REPORTS H-1: City Manager (a) Acting City Manager Charles Brown advised Council that CH2M Hill would like to meet _ with the Public Works Committee from Council to discuss items and negotiate their contract for the Step III project. I '10/1i�i79 - Page Six H-2: City Attorney City Attorney Schlereth advised that he would have a report at the next meeting relative to a Federal tax lien that has shown up on the Lockheed Constellation. Mr. Schlereth also requested that Council consideration be given to the City Attorney applicants as soop as possible so that interviews could be scheduled. H-3: Mayor Mayor O'Reilly requested, with Council concurrence, that a special meeting of Council be set on Tuesday, October 23rd for the purpose of discussing the revenue sharing programs and departmental requests, City Attorney applicants and the interviewing and selection of a City Clerk. H-4: City Clerk City Clerk Sue Peter advised that she had received a telephone call from Mr. Charles Brodigan of Social Security who had received a letter from the Fire Chief indicating that the Social Security representatives could no longer utilize the Public Safety Building on their monthly visits to Kenai. City Clerk Peter requested Council input as to another facility in order to assist the Social Security representatives in their search for new quarters. H-5: Finance Director None H-6: Planning a Zoning Commission None H-7: Assembly Councilman Ambarian advised that one item in particular of interest to Kenai is that the public hearing relative to the rezoning of Tract B, the site for proposed Care Center, has been set for October 30th . H-8: Harbor Commission Of interest relative to the Harbor, the consultants hired by the Borough have been asked to return and address the problems of the Kenai port. I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD (Mr. Borgen was scheduled under Persons Present earlier in the evening but was not present to give his presentation.) .10' Mr. Borgen stated that he wished Council consideration to the enforcement of the excavation ordinance as presently the City is not enforcing the requirement that all w "' 10/17/79-Page Seven • excavators must have a proper permit obtained through the Public Works Department. Mr. Borgen stated that he had advised the Public Storks Department on several occasions of violations taking place and nothing had been done. Councilman Ambarian requested that the matter be referred to the Public Works Committee from Council for consideration at their next meeting. H-9: Public Works Committee from Council Councilwoman Glick advised that the Committee had addressed the problem of the security in the long-term parking lot at the Airport and after much discussion relative to a solution, it was decided that additional lighting could be installed which would greatly aid in alleviating the problem. Councilwoman Glick advised that AEA had been contacted to install the lighting which would cost the City $25/pole. Councilwoman Glick also advised that the Committee suggested that when funding was available, the City should consider fencing the long-term parking area. MOTION: Councilman Ambarian moved, seconded by Councilman Malston, to direct Public Works to proceed with the installation of ten lighting poles at the Kenai Municipal Airport including two lights on the south end of the Terminal. Motion passed unanimously by roll call vote. Councilwoman Glick stated that one other item pertaining to the long-term parking area was the suggestion to advertise for a franchise to rent out the parking lot and determine if there was any Interest. MOTION: Councilwoman Glick moved, seconded by Councilman Ambarian, to instruct Administration to advertise for franchise for rental of the long-term parking lot which would involve such items as snow removal, parking of cars, security and so on. Motion passed unanimously by roll call vote. ADJOURNMENT There being no further business, the meeting adjourned at 7: 25 p.m. Respectfully submitted, j2�j 0- (2!&i- Sue . Peter, City Clerk 0 AGENDA KENAI CITY COUNCIL - SPECIAL MEETING OCTOBER 23, 1979 - 7: 00 P.M. KENAI COMMUNITY LIBRARY CONFERENCE ROOM PLEDGE OF ALLEGIANCE A. ROLL CALL B. NEW BUSINESS I. Interview and selection of City Clerk 2. Discussion and scheduling of City Attorney applicants 3. Discussion - utilization of Federal Revenue Sharing funds C. ADJOUPMZNT r le i rk r I= 1 KENAI CITY COUNCIL - SPECIAL MEETING OCTOBER 23 , 1979 - 7: 00 P.M. KENAI COMMUNITY LIBRARY CONFERENCE ROOM MAYOR VINCENT O'$EILLY PRESIDING PLEDGE OF ALLEGIANCE A. ROLL CALL Present: Michael Seaman, Philip Aber, Edward Ambarian, Betty Glick, Ronald Malston, Raymond Measles and Vincent O'Reilly Absent: None B . NEW BUSINESS B-1: Interview and selection of City Clerk Mayor O'Reilly presented an evaluation system by which the Council members could rate each applicant. The evaluation broke down as follows: Education and background - 10 points; Alaska residency - 10 points; understanding of government -10 points; secretarial capability - 30 points and business/government experience - 40 points. The following candidates were interviewed: Samantha Collins, Lenore Jones, Nancy Walters and Janet Whelan. The candidates were advised that the interviews were public and they could be present for one anothers interviews if they so wished, however, all candidates departed from the Council room & met individually with Council. Upon tabulation of the final evaluation, Mrs. Janet Whelan was offered employment with the City of Kenai as City Clerk at a beginning salary of $20,500 which will be reviewed within the next few months for increase. Councilman Ambarian suggested that Acting City Manager Charles Brown strongly consider appointing a replacement to the position of Administration Assistant as soon as possible. Councilman Malston suggested it be left to the Acting City Manager, however, the Council could indicate no opposition in his filling the position. MOTION: Councilman Ambarian moved, seconded by Councilman Measles, that the Kenai City Council hereby recommend to the Administration to fill the post of Administration Assistant at the discretion of the Acting City Manager. Motion passed with Councilmembers Glick and Malston voting no. Acting City Manager Charles Brown advised that he would talk with City staff members to determine if there was an urgency in filling the position prior to the appointment of a new City Manager. B-2: Discussion and scheduling of City Attorney applicants City Attorney Schlereth advised that six applications had been received and he felt they could be narrowed down to three as two applicants were not members of the Alaska 0 1' 10/23/79 - Page Two Bar and the other was a firm offering their services under contract to the City. City Attorney Schlereth requested Council approval to contact the three individuals, most preferably the two that are presently residing in Alaska, and schedule an inter- view as soon as possible. Council concurred that a meeting will be held at 12: 00 noon in the Public Safety Building on Saturday, Octpber 27th for the purpose of interviewing City Attorney applicants Joyce Rivers and Ben Delahay. B-3: Discussion - Federal Revenue Sharing funds After lengthy Council discussion the following items were considered for inclusion In the appropriating ordinance: Fire Department - squad truck - $18,000; Library - Microfilm/microfiche - $6,136; Parks & Recreation - Playground Equipment - $11,978, Wood chipper - $4,750, fencing - $10,000; Shop - engine analyzer - $5,500, electric door openers - $9,000, City's share Qube rack/shop addition r $40,000; Streets - guardrails for bluff - $12,000, snow blower (used) - $32.800, quick coupler - $3,000, welder - $6,000, one dump truck - $70,000, pavement saw with blades - $1,500, parts for repair of distributor truck - $10,000, mobile asphalt recycler - $11,000; Animal Control - fencing and road to facility - $9,500; Clerk - small tape recorder - $1,000; Building Maintenance - addition to shop for use as building maintenance shop - $20,000; Water & Sewer - mint pick-up - $6,000, dewatering equipment - $12,000, portable generator - $6,500. The total for the foregoing is $304,664. Council directed Administration to prepare the proper appropriating ordinance to provide for the utilization of the Federal Revenue Sharing funds as requested by the individual departments and the difference in the requested amounts above and the allocation received by the City to be held in contingency. ADJOURNMENT There being no further business to be brought before Council, the meeting adjourned at 10:10 P.M. Respectfully submitted, i Su C. Peter, City Clerk 0 r r � e r . e r 1_ AGENDA KENAI CITY COUNCIL - SPECIAL MEETING OCTOBER 27, 1979 - 12: 00 NOON KENAI PUBLIC SAFETY BUILDING PLEDGE OF ALLEGIANCE A. ROLL CALL B. NEW BUSINESS 1. Confirmation of new member to the Kenai Advisory Planning and Zoning Commission 2. Interviewing of City Attorney applicants & possible appointment C. ADJOURNMENT T_ w - - --' KENAI CITY COUNCIL OCTOBER 27, 1979 - 12:00 Noon KENAI PUBLIC SAFETY BUILDING MAYOR VINCENT O'REILLY PRESIDING PLEDGE OP ALLEGIANCE A. ROLL CALL Present: Phil Aber, Ed Ambarian, Betty Glick, Ray Measles, Ron Malston, Vincent O'Reilly, Mike Seaman Absent: None AGENDA APPROVAL Mayor O'Reilly requested three additions to the agenda. 1. Discussion of letter from Snow Recruiters 2. Discussion of City of Kenai Comprehensive Plan 3. Discussion of City Hall Facilities Councilman Ambarian requested that each item addition be considered separately. The Council agreed.by roll call vote. 1. Snow Recruiters - Council accepted. 2. Comprehensive Plan - Council accepted. 3. City Hall - Objection by Councilman Ambarian, addition denied. B-1: Confirmation of new member to Planning and Zoning Commission Mayor O'Reilly proposed James Blanning. Council concurred by voice vote. City Clerk was directed to compose a letter to Mr. Blanning indicating confirmation, and to inform the Planning & Zoning Commission Chairman. B-2: Interviewing of City Attorney Applicants. , Atty. Schlereth requested a presentation from Ms. Rivers. Council had no objection. Ms. Rivers stated she wished to withdraw her application. Family considerations and an offer in Anchorage were the deciding factors. She would like to be considered next time. Mayor O'Reilly accepted for the Council and wished her the best of luck. Council approved by voice vote the criteria for applicants set up by Mayor O'Reilly. Mr. Delahay gave a statement to the Council. Mayor O'Reilly asked the Council if they wished to accept the appli- cation of Mr. Delahay, or consider Daniel Allen. Councilman Ambarian stated he felt we should have a comparison. Councilman Aber agreed. MOTION: Councilman Malston moved, seconded by Councilman Measles that the KENAI CITY COUNCIL OCTOBER 27, 1979 Page 2 Council hire Mr. Delahay immediately with salary to be negotiated. Motion passed with Councilmen Aber and Ambarian voting no. Salary was discussed. Mr. Delahay stated he felt the $30,000 to $35,000 figure was too low. Atty. Schlereth stated he was making $37,500 per year. Councilwoman Glick stated the $3500 per month requested by Atty. Delahay was $42,000 per year. She felt the salary should be $37,500 because of the budget. Councilman Ambarian agreed. Atty. Delahay accepted, but reminded the Council he did not need any moving expenses. Councilman Ambarian noted the Attorney, City Clerk and City Manager are not subject to scheduled raises, this is negotiable with Council. Atty. Delahay said four or five years ago, the City finances were tight, but this situation is better now. He is willing to wait for renegotiation in one year. Mayor O'Reilly asked if he was planning to go to Municipal Leaguein Sitka next week. Atty. Delahay said yes. He stated he would like to use his credit card and request reimbursement from the City so that he could have flight insurance. Mayor O'Reilly agreed he could make his own arrangements, and contact the City Clerk if he needed any help. Atty. Schlereth noted there would be an overlap problem, there would be two salaries on the budget. The Council will need an ordinance to arrange payment, he vrould be willing to work part time. Atty. Delahay said he would be gone next week, but he needed time to work with Atty. Schlereth. There should be some training time. Council- man Ambarian said we would need Atty. Schlereth two weeks full time. Mayor O'Reilly said he should check with Acting City Manager Brown to get funds. Councilman Measles asked if there were funds irf'the budget for an assistant. Atty. Schlereth explained that the funds were low because of the contract assistance we have had with the Constellation sale and the newspaper suit. B-3: Letter from Snow Recruiters Mayor O'Reilly explained this letter is a follow-up from a phone call from Snow Recruiters. Councilman Malston asked how many appli- cants we have for City Manager. Mayor O'Reilly replied he didn't know. MOTION: Councilman Ambarian moved, seconded by Councilman Aber that we accept the offer from Snow Recruiters. Councilman Ambarian then stated he would vote against it. He prefered direct contact with the applicants. Also, there is a 25% fee on the 1st year salary, and there are many applicants we won't need to bother with. Councilman Malston said he would like a background check only. Councilman Aber said most firms charge 25% if we hire in one year. Mayor O'Reilly gave the chair to Councilwoman Glick. Mayor O'Reilly then suggested we not pass or defeat the motion. We should use part of the offered services or other similar firms. Can the Council delggate authority to another agency? He would like verification on resumes, information given i - 11111Nw KENAI CITY COUNCIL OCTOBER 27, 1979 Page 3 to Council, and other information necessary for review. Then we could negotiate the fee. MOTION: Mayor O'Reilly moved, seconded by Councilman Measles that we table the motion to a time certain when we can invite Ms. Emerick, and see what she would be willing to negotiate. Motion passed with Councilman Ambarian and Councilman Seaman voting no. Mayor O'Reilly then returned to the chair. He then asked the City Clerk to compose a letter to Ms. Emerick asking her to submit (at her expense) what could be offered to the Council. Councilman Aber suggested the Council talk to the other recruiters. Mayor O'Reilly said he would write a letter to the other recruiters. B-4: Discussion of Kenai Comprehensive Plan Mayor O'Reilly gave the chair to Councilwoman Glick. Mayor O'Reilly said the Chamber of Commerce feels the community interests are involved. There is a boycott proposed. They want action from the Council to the community. He suggested the Council empower himself or a committee to announce to the radio and the papers the position of the Council. Mayor O'Reilly then presented a position paper he had composed. He said he would like to broadcast Monday or Tuesday, and release it to the press at the same time. Councilman Measles stated he didn't ever see the addition of Nikiski. Councilman Malston noted that part of what is listed in the plan as North Kenai is actually Redoubt, and this is already in the city limits. Councilman Aber said that #2 In the statement, mentioning revenues, should not be worded quite that strong. With the proposed industrial water line and plants revenue, we can't predict what will happen. Council Malston said we should word it as strong as vie can, the industrial water line will be Borough, not City. Atty. Schlereth suggested he and Atty. Delahay go over the wording together. There are State statutes on the wording. Councilwoman Glick said we would need to petition the Boundary Commission to annex, then vote. She asked if we can annex if we provide services only. Atty. Schlereth did not know. Atty. Delahay said we would need an affirmative vote in both areas, or the Boundary Commission can approve it. It is possible, but it must be in the best interests of the community. Councilman Aber said he felt we were tying future Councils, it shouldn't be that strong. Mayor O'Reilly said he agreed with Councilman Aber, but the City revenue is sufficient under present known conditions, and annexation would cost the City money. Attorney Delahay said the statement was for the foreseeable future, but that things could change. Councilman Aber noted the new gas wells brewing that could also change the situation, and that people would remember what is said. Councilman Malston suggested we delete any reference to annexation in the plan. KENAI CITY COUNCIL OCTOBER 27, 1979 Page 4 MOTION: Mayor O'Reilly moved, seconded by Councilman Seaman, that a statement be distributed via radio and newspapers, after review by the attorneys. Motion passed, with Councilman Aber voting no. Councilman Ambarian had to leave during discussion, and did not vote. Mayor O'Reilly noted that a gas well discovery may mean areas will want to annex. Our main concern, however, is inside the city, not to those outside. Pacific Alaska could use our municipal bonding power, and the IRS may require we annex to use our bonding power. But we should specify it would be only for Pacific Alaska use, not subject to taxes and not in the city limits. Councilman Malston noted that the plan is a guideline, in three or four years, there will be another one. Councilwoman Glick noted State statute requires an update every two years. Mayor O'Reilly reiterated that if any of the mentioned situations were problems, annexation would be necessary. But the plan did not. Councilwoman Glick suggested spheres of influ- ence. An example is: VIP subdivision is in the city limits, their zoning request was turned down (to have commercial), this wasn't fair. There was business near, but the people in the City are penalized. Both sides should work together, this is not annexation. The City should work with N. Kenai on the industrial water line, this is not necessarily annexation. The Pact with N. Kenai for fire department, is not undercover for annexation. In spite of the controversy on the radio, only 19 people came to the public meeting. If the news media was really concerned, neither radio nor papers showed up. Atty. Schlereth spoke as a citizen, he asked why add flame to the fire, forget it. Is there any reason to pursue this? Mayor O'Reilly re- plied at the Chamber luncheon there were comments made referring to an economic boycott. Councilman Aber agreed with Atty. Schlereth. Several years ago, a similar motion was made and sent to the papers. It has been already forgotten. Councilwoman Glick said she resented the fact the N. Kenai people are threatening the business men. We are trying to do what's right. Councilman Malston remarked he concurred with her. The retail merchants noticed a decline the last time. It is the obligation of the Council to put minds at ease, but it may not work. Atty. Delahay agreed with Atty. Schlereth. The Council has to set policy, when sales drop, the tax drops, and this affects the City. But it is better to ignore it and drop the section involved when the plan is proposed. Mayor O'Reilly said he would get the notice to the radio and the papers. ADJOURNMENT Meeting adjourned at 2:15 PM. Respectively submitted, ne� W1an .gity Clerk i NIKISKI ANTI -ANNEXATION COMMITTEE • J ^ i ROUTE I BOY. 767 ` /y t`}i KENAI, ALA°KA 99611 y� ��- Zoll - � October 30, 1979 � Mayor Vince O'Rilley Zity of Kenai {enai, Alaska 99611 RE: CITY OF KENAI COMPREHEiISIVE PLAIT Dear Mayor O'Rilley, The Nikiski Anti -Annexation Committee respectively requests a deletion of pages 156, entitled "Spheres of Influence", Paragraph A, B, and C, page 157, figure 37, page 158, "The Rationale and Analysis" Area I, page 159, figure 38, page 160, Area 2, 3, 4 and 5, page 161, Area 6 and D "Recommendations". Also we request that any on -going study and analysis of the North Kenai/Nik- iski area be eliminated, and a written statement of policy from the Kenai City Council regarding annexation from the October 26th, 1979, meeting of the council be incor- porated into the Comprehensive Plan. "'hank you for your consideration. 3r. Barron Butler "hairman ;Iikiski Anti -Annexation Committee BB/km Cc: Kenai Peninsula Borough Assembly Mayor Don Gilman, Kenai Peninsula Borough Alaska State Boundary Commission Zenator Clem Tillion Representative Hugh Malone Representative Pat O'Connell Community and Regional Affairs Committee i� r VLVXFR THE VOLT.OWInG IlM', AK ()VER 5S4r,~!Hirai ItEf.L r»tI"W,Tt. AM-1, 41. 62 kAIIIIrAll(z 11/7/1Y AMUNT AESCRIP/IoU PkO.IF.(,7/Dk?Akl3fVi7 /If"A.54 P.O. FOR APPROVA: Chevron 1,128.22 Gasoline awp Operating supplies 1,i28,22 10761/10749 Gaylord 548.16 Office ,Supplies Library Office SuppIfer; 548,16 10592 , Clacier State 1,868.54 October PLone Service Various Cu=unicationsi 1,Y68,54 Ken Equip_ent 526.40 Safrdblover Pistons Shop P.epair/Maint, Supplies 526,40 16678 Marathon Oil ca-wny 4,140.12 September %atural Gas Trust 1, Agency In Trust 4,140.12 I Union Oil Company 4,141.46 September Natural Gas Trust L Agency In Trust 4,141,46 ' Better Concrete Products 984.18 Sever Rock W L S Repair/Maint, Supplies %0.00 10716/10721 j Sever Rock W L S Repair/taint. Supplies 150,00 10726 Concrete W L S Repair/raiat, Supplies 234.18 10727 i City Electric 502.80 Repair at Well House 02 W L S Repair L Maintenance 502.80 10342 { I Doyles Fuel Service 744.58 Stove Oil Stop Operating Supplies 744,58 pZ IBM 502.91 August Copier Rental Various Printing L binding 502.91 16087 E KUSCO 1,262.83 October Gas various Utilities 1,126,80 Repair Heater Motor Airport MLO Repair L Maintenance 136.03 10828 j r goner Electric 1,012.00 3 Phase Service CP-Lift Station Reanovatfon Construction 812.00 10418 Re -Wire Transformer CP-Lift Station Reanovation Construction 200,00 10339 Western Utilities 1.418.92 Pipe/Fittings/Couplings W L S Repair/Maiat, Supplies 1,418,92 10372 Service= ter 3,159.20 November Janitorial Services Terminal Professional Services 2,493.00 I 10059 November Janitotial Services Police Professional Services 266.20 10054 November Janitorial Services Library Professional Services 400.00 10056 ' Motorola 858.00 Local Governcent Radio Airport Admin. Machinery L Equip -ant 858,00 10577 Southeentral Ca=nIcations 1,156.65 %ovember Radio Maintenance Cosa/W b 8 Repair b Maintenance 879,75 10410 Antenna Repair Police Repair & Maintenance 66.90 10952 Radio Repair Fire Repair L Maintenance 140,00 10951 Tine Clock Repair Cow-.+mications Repair L Maintenance 70.00 10878 r � t 3 i � { s PAGE 2 MA" AlYYM 6i...CRIPTIMS Pk1)iFf71rjEPAkr,,wn mtfp b: CHAmy AMMI Y,U, I i State of Alaska 51,717.27 3rd tPuarter FICA VarllwsS FIf.A 51.717.27 City of lcnai-MA 1,000.00 Transfer of Frady Central Treasury Transfer of Fund„ I,fBKi,fXJ least Peninsula Borough 9.wi.16 3rd r'uarter Sales Tax 7arlwis dales Tax 9,6(d/,14 Sally Blakeley 1,107.55 Auction of 10/11/79 Sale of Other Assets on Deposit 1.107.55 Clary Insurance Agency 3,611.00 September Workmen's Cozp. Varirris liorknen's Compensation 3,611.00 y Clary Insurance Agency 3.694.00 Au7ust Workmen's Coat'. 'larious Workmen'e Co-yensation 3.694.09 Clary Insurance Agency 3,058.00 July Workren's Corp. Various Workmenle CoWpensatfoa 3,059.00 superior Building Supply 655.20 Water Payamt Refund Water/Sales Tax Refund 655.20 j City of ream-EDA 14,967.87 Transfer of Funds Central Treasury Transfer of Funds 14,967,87 Peninsula Enterprises 2,500.00 Nov. Lease on nkluk Bldg, Airport MW Rentals 2,500,00 10695 Alaska Dept, of Revenue 4,737.00 October State W/H Cenral Fund Liability 4.737.00 National Bank of Alaska 26,133.00 October Federal W/8 General Fund Liability 26,133.00 Alaska Municipal Employees 8,057.00 October Credit Union General Fund Liability 8,057.00 Federal Credit Union i PERS 17,345.00 October Retirement Various Retirer MC 17.345.00 1st Rational Bank 250,000.00 Cert, of Deposit-10/25/79 TCD Central Treasury 250.000.00 lot National tank 200,000.00 Cert. of Deposit-10/26/79 TCD Central Treasury I 300,000.00 National Bank of Alaska 250,000.00 REPO-10/19/79 Central Treasury Central Treasury 250.000.00 . I National Bank of Alaska 500,000,00 NYPO-10/30/79 Central Treasury Central Treasury i 500,000.00 National tank of Alaska 200,000.00 YMO-10131179 Central Treasury Central Treasury 200,000.00 E r i 0 I (im RYInSITI(m 55OO.0f, ACH IIBED COLMIL APPWVAL 11/7/79 ' V r"olAl s uk:A.litY(1uA fIYJ'Ax7J:kAT AUXU5T AMU TtT i McLane b Aseaciates Additional Survey b Platting -Tract D Uon-Departccntal Professional Services 500.00 Kenai Boat kazq Per PU meeting 9/26/69 Bowman Distribution Shop Suppli" Shp Operating Supplies 1,400.00 Kenai Hall Travel Air Pare to Portland W,rknhop for SIP Transportation 695,00 Ben Siirila b Jim Holverton C82H Hill Grant Application for STP/Interceptor/ CP-STP Construction Arch Bng Basic Pee 2.500.00 f Outfall Step III Grant 1 I i 1 I I i E i ` y i fj 1 l-,, CITY OF KENAI n ORDINANCE NO. 533-79 AN ORDINANCE OF THE, COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE. FEDERAL REVENUE. SHARING FUND BY $306 , 750. WHEREAS, the Council of the City of Kenai has reviewed in a special Council meeting requests from City Department Heads for appropriations of Federal Revenue Sharing Funds, and WHEREAS, determination has been made concerning the desirability of and the need for the purchase of certain assets for the City, and WHEREAS, based upon information from the U. S. Department of Treasury, adequate funds wU1 be available in the form of Federal Revenue Sharing for these improvements, and WHEREAS, proper accounting practices require that all appropriations of City monies be made by ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that: Section 1: The 1979-80 Annual and Capital Projects budgets of the City of Kenai Se amended to include the items in categories as listed on Exhibit A, which is attached and made a part of this ordinance. Section 2. Estimated revenues and appropriations be increased as follows: Federal Revenue Sharing Fund Increase Estimated Revenues: Contribution from Fund Balance $134,060 Federal Revenue Sharing 72 690 q 750 J Increase Appropriations: Transfers to General Fund Transfers to Water & Sewer Fund Transfers to Capital Projects $224,250 24,500 58,000 $306, 750 i ORDINANCE NO. 533-79, Page Two General Fund Increase Estimated Revenues: Transfers from Federal Revenue Sharing Fund Increase Appropriations: Fire - Machinery a Equipment Library - Machinery & Equipment Parks & Recreation - Machinery & Equipment Parks & Recreation - Improvements Other Than Buildings Shop - Buildings Shop - Machinery & Equipment Streets - Improvements other than Buildings Streets - Machinery & Equipment Animal Control - Improvements Other Than Buildings City Clerk - Machinery & Equipment Water and Sewer Fund Increase Estimated Revenues: Transfers from Federal Revenue Sharing Fund Increase Appropriations: Water & Sewer - Machinery & Equipment Shop Addition Capital Project Fund Increase Estimated Revenues: Transfer from Federal Revenue Sharing Fund Increase Appropriations: Administration Construction Contingency 224 250 $ 20,000 6,200 16,750 10,000 9,000 5,500 12,000 134,300 9,500 1,000 . 224 250 1.241500 50 1,500 46,500 10,000 58,000 r ORDINANCE NO. 533-79, Page Three "EXHIBIT List of Federal Revenue Sharing Appropriations by asset name: Department Item Amount General Fund: Fire Squad Truck $ 20,000 Library Microfilm/microfiche 6,200 Parks & Rec. Playground Equipment 12,000 Parks & Rec. Wood Chipper 4,750 Parks & Rec. Fencing 10,000 Shop Electric Door Openers 91000 Shop Engine Analyzer 51500 —__ Streets Guardrails 12,000 Streets Snowblower 32,800 Streets Quick Coupler 31000 Streets Welder 6,000 Streets Dump Truck 70,000 Streets Pavement Saw with blades 1,500 Streets Asphalt Recycler 11,000 Streets Pump for Distribution Truck 10,000 Animal Control Fencing and Road 9,500 City Clerk Tape Recorder 1,000 Water Sewer: Water & Sewer Pick-up truck 6,000 { ! Water & Sewer Dewatering Equipment 12,000 Water & Sewer 3-phase Generator 6,500 Capital Projects: s She 3h A iti Dent. Total $ 20,000 6,200 26,750 14,500 146,300 9,500 1,000 24,500 i p op dd on 58,000 58,000 °f i 750 ' PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 21st day of November 1979. VINCENT O'REILLY, MAYOR FIRST READING: November 7, 1979 SECOND READING: November 21, 1979 EFFECTIVE DATE: November 21, 1979 t1 !f� s- -- - --,n - �- - - - CITY OF KENAI ORDINANCE NO. 534-79 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIM- ATED REVENUES AND APPROPRIATIONS IN THE SHOP ADDITION CAPITAL PROJECT FUND BY $47,298. WHEREAS, the City of Kenai received a grant from the U . S . Economic Development Admini- stration (EDA) for the winterization of the Airport Terminal in the amount of $50,400, and WHEREAS, the project was terminated after accrual of $3,102 of this estimated revenue, and WHEREAS, EDA has authorized that the unused revenues of this grant be applied to the construction of an addition to the City Shop, and WHEREAS, $58,000 of Federal Revenue Sharing monies has also been appropriated to the Shop Addition project, and WHEREAS, proper accounting practices require that all appropriations of City monies be made by ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations in the Shop Addition Capital Project ' Fund be increased as follows: Increase Estimated Revenues: Federal Revenues 547,298 Increase Appropriations: i Construction $47 , 298 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 21th day of November, 1979. Janet Whelan, City Clerk _ +l I ?1 j 1. r :1 P . VINCENT O' REILLY , MAYOR FIRST READING: November 7, 1979 SECOND READING: November 21, 1979 EFFECTIVE DATE: November 21, 1979 l� CITY OF KENAI _ f ORDINANCE 535-79 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE 1979-80 ANTI -RECESSION ASSISTANCE FUND IN THE AMOUNT OF $5,000. WHEREAS , under regulations of the Revenue Sharing Act and under the loan agreement with the Department of Housing and Urban Development, the City is required to have financial and compliance audits performed by independent auditors at its Federal Revenue Sharing Fund, Anti -recession Assistance Fund, and the Airport Terminal Enterprise fund for the fiscal year ended June 30, 1979, and WHEREAS, the City of Kenai has monies available in the Anti -recession Assistance Fund for audit purposes, and WHEREAS. proper accounting practices require that all appropriations of City monies be made by ordinance. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Kenai, Alaska that estimated revenues and appropriations be increased as follows: Anti -Recession Assistance Fund • Increase Estimated Revenues: Contribution from Fund Balance $5,000 Increase Appropriations: -- Transfer to Airport Terminal Enterprise Fund $1,500 Professional Services 500 5 000 -, Airport Terminal Fund Increase Estimated Revenues: Transfer from Anti -Recession Assistance Fund 1 500 Increase Appropriations: ,7, I Professional Services 1 00 j. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 21st day of November, 1979. ATTEST: VINCENT O'R.EILLY, MAYOR FIRST READING: November 7, 1979 SECOND READING: November 21, 1979 EFFECTIVE DATE: November 21, 1979 i� r7 , CITY OF KENAI ORDINANCE NO. 536-79 W ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ,MENDING THE KENAI CODE OF 1979 BY ADDING THERETO A CHAPTER )FFICIALLY ESTABLISHING THE KENAI MUNICIPAL LIBRARY. MEREAS, the City of Kenai has recently updated its Code of ordinances as set forth in the Kenai Code of 1979, and MEREAS, it is anticipated that the Code ordinances of the ;ity of Kenai shall undergo gradual revision and updating in order to reflect -necessary changes, and MEREAS, the City of Kenai has a municipal library properly .nstituted through financial (non -code) ordinance procedure, and MEREAS, it is proper and fitting to set out by code ordinance the establishment, powers and duties of the librarian, NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF KENAI, as follows: Section 1: A new chapter 56 in Title 1 of the 1979 Kenai Code is hereby adopted entitled "Municipal Library Department." Section 2: Said chapter shall read in its entirety as set forth in Chapter 56 of Title 1 "Municipal Library Department" as attached hereto and madc a part hereof. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 21st day of November, 1979. VINCENT O'REILLY, MAYOR ATTEST: Janet Whelan, City Clerk First Reading: November 7, 1979 Second Reading: November 2, 1979 _____•_ Effective Date: December 21, 1979 Ord. 536-79 Pagc 2 1.56.010 MUNICIPAL LIBRARY DEPARTMENT: There shall be a Municipal Library Department, the head of which shall be the Librarian, appointed by the City Manager for an indef- inite'term. The Librarian shall be an officer of the City and have supervision and control of the Kenai Municipal Library. r. 1.56.020 Rules, Regulations and Fines: The librarian shall establish rules and regulations for conduct on the property of and use of the Municipal Library and a fine or penalty charge schedule for overdo and/or damaged loaned library property, which rules and regulations besides being set forth below shall be posted in a location within the library on a bulletin board or readily visible by library patrons: RULES AND REGULATIONS OF LIBRARY USE 1. Borrowers' Cards: (a) All transactions will require the presence of valid library identification. (b) Upon application for a card, the borrower will be permitted to check out one book. After the card is received through the mail, the borrower may check out as many as 4 books each library visit. 2. Fines: (a) 5 cents a day on 14 day books (b) 10 cents a day on 7 day books and/or other library reading materials including periodicals, maps, atlases, and newspapers. (c) $5 a day on non -book and non -reading materials which include cassette players, screens and projectors. 3. Service Charges: (a) $1 for lost books and/or other library materials that are beyond repair. This shall beiin addition to full replacement costs. (b) 50 cents for each postal card or telephone call that is necessary to effect return of overdue books and/or other library materials or settlement of other charges. 4. Replacement Charges: (a) 10 cents for each pocket (b) 5 cents for date slips (c) 25 cents for lost library identification 5. Damages: (a) $1 per page for torn pages, defaced covers or pages, or covers or pages containing scribbling or writing. (b) Replacement cost plus service charge for any reading material damaged to the extent that any part is illegible. (c) Professional repair cost or replacement cost (if not repairable) for any non -reading material loaned. 0 t Ord. 536-79 rage 3 6. Limited Circulation: Books designated "Limited Circulation" are to be loaned only to borrowers with 6 months responsible library usage. A $5 fine will be imposed if any such book is deposited through the book drop. 7. Renewals: (a) Books and/or other library materials may be re- newed o ce if not on reserve. (b? Nothing will be renewed by telephone. 1.56.030 Sleeping and Resting Prohibited: No one shall sleep within the library or outside the library upon library property at any time, nor shall anyone lie in a reclined position within or outside the library or library grounds. To lie in a reclined position means to position one's body parallel to the floor or ground whether one is on the floor, ground, a table, bench, chairs, couch, counter, shelves, card cases or any other item of furniture. 1.56.040 Refusing to Return Loaned Material: No person, firm or corporation shall knowingly refuse to return any reading material, including books, peridicals, newspapers, maps, atlases, or any non -reading material including cassettes, record players, screens and projectors loaned to said person, firm or corporation within 30 days after said reading or non -reading material becomes overdue. 1.56.050 Penalty: In addition to any fine levied or other penalty imposed pursuant to this ordinance or regulations imposed thereunder, any person, firm or corporation who shall violate any provision. of Lhis chapter including any rules and regulations as herein set forth, or fail to comply therewith upon conviction thereof shall be punished by a fine not exceeding $100. (Ord 536) CITY OF KENAI ORDINANCE NO. 537-79 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA CODIFYING INTO THE 1979 KENAI CODE THE PERSONNEL ORDINANCE OF THE CITY OF KENAI AS TITLE 23. WHEREAS, the City of Kenai has recently updated its Code in the 1979 Kenai Code, and WHEREAS, it is anticipated that within the future months various updating and revisions will be made in several of the code ordinances themselves, and WHEREAS, the City of Kenai has a comprehensive personnel ordinance which up to this time has not been codified, and WHEREAS, it would be fitting to codify this ordinance so that employees and the public might have the ordinance and its numerous amendments and updates at their fingertips, and WHEREAS, various older sections of the prior Kenai Code have provisions dealing with merit system (1.60.040); Personnel Board (1.60.054, 060, 070 and 080) which sections have been replaced in spirit and function by the provision of the new personnel ordinance and its amendments thus making it unnecessary to retain these older sections in the Code, NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA as follows: le Section 1: Sections 1.60.040, 1.60.050, 1.60.060, 1.60.070 and 1.60.080 of the Kenai Code of 1979 are hereby repealed in their entirety. Section 2: There is hereby adopted Title 23, Personnel Regulations, in the form as attached hereto and made a part hereof. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 21st day of November, 1979. VINCENT O-REILLY, MAYOR ATTEST% Janet Whelan, City Clerk First Reading: November 7, 1979 Second Reading: November 21, 1979 Effective Date: December 21, 1979 0 Title 23 PERSONNEL REGULATIONS Table of Contents CHAPTER.5 - General 1. Employment -Qualifications and Fitness 2. Incentives and Conditions 3. Uniformity of Classification and Compensation 4. Appointments 5. Morale 6. Tenure CHAPTER 10 - CATEGORIES OF SERVICE 1. General 2. Exempt Service 3. Classified Service CHAPTER 15 - ADMINISTRATION CHAPTER 20 - CLASSIFICATION 1. Initial Classification 2. Review of Classification Plan 3. Adjustments to Organization CHAPTER 25 - COMPENSATION 1. Pay Plan -Development 2. Pay Plan -Adoption 3. Pay Plan -Amendment 4. Appointee Compensation 5. Pay Day 6. Overtime 7. Acting Positions S. Promotion CHAPTER 30 - PERSONNEL POLICIES AND PROCEDURES 1. General 2. Appointment 3. Probationary Period 4. Merit/Growth/Evaluation 5. Hours of Work 6. Attendance 7. Personnel Records 8. Transfers 23-1 I 9. Layoffs 10. Outside Employment 11. Travel Expenses 12. Moving Expenses -New Employees 13. In -Service Training 14. Relatives in City Service CHAPTER. 35 - GENERAL CONDUCT 1. Appearance - 2. Causes for Warning, Suspension or Dismissal 3. Disciplinary Actions 4. Grievance Procedures 5. Resignation -- 6. Reemployment 7. Cost Consciousness 8. Safety . --__ 9. Legal Liability CHAPTER 40 - BENEFITS 1. General 2. Holidays 3. Annual Leave 4. Terminal Leave 5. Leave of Absence without Pay 6. Leave of Absence with Pay 7. Education _ 8. Educational Opportunities 9. Retirement Age 10. Social Security 11. Industrial Accidents 12. Medical and Hospital Insurance 13. Maternity Leave CHAPTER 45 - PERFOP14ANCE EVALUATION �. 1. Purpose 2. Periods of Evaluation 3. Performance Evaluations �? 4. 5. Review of Performance Report Unsatisfactory Evaluation 6. Appeal Procedure CHAPTER 50 - CLASSIFICATION PLAN 7°0=- CHAPTER 55 - PAY PLAN 1. Exempt Salaries 2. Salary Structure -By Grade 3. Uniform Allowance JCHAPTER 60 - DEFINITIONS _ 23-2 I, •Y IIr lu W, 23.05.010 GENERAL PROVISIONS: It is hereby declared, personnel policy of the City of Kenai, that: 1. Employment -Qualifications and Fitness: Employment in City Government shall be based on qualification and fitness, free of personal and political considerations, with equal opportunity for all with no restrictions as to race, color, Breed, religious affiliations or sex. 2. Incentives and Conditions: Just and equitable incentives and conditions of employment shall be established and maintained to promote efficiency and economy in the operations of the City government. 3. Uniformity of Classification and Compensaticn: Positions having similar duties and responsibilities shall be classified and compensated on a uniform basis. 4. Appointment: Appointments, promotions and other actions requiring the application of the merit principal shall be based on systematic evaluation, designed for the position to be filled. 5. Morale: High morale shall be maintained by the fair administration of this ordinance, by every consideration of rights and interests of employees, consistent with the best interest of the public and the City. 6. Tenure: Tenure of employees covered by this ordinance shall be subject to good behavior, satisfactory performance of work, necessity for the performance of work and the availability of funds. 23.10.010 CATEGORIES OF SERVICE: 1. General: All offices and positions of the City are divided into classified service and exempt service. All the provisions of this chapter shall apply to positions in the classifie& service. The provisions of this chapter shall apply to positions in the exempt service as indicated in 2 bblow. 2. Exempt Service: The exempt service shall include the following: (a) Mayor - Only the following provisions shall apply to the Mayor: Sec. 30.010, 11(b) and 11 (d) and Sec. 40.010, 10 and 11. (b) Other elected officials and members of boards or commissions. Only the following provisions shall apply to such officials: Sec. 30.010, 11(b) and 11(d). (c) The following Council appointed administrative offices: i. City Manager. The City Manager shall perform all those duties mandated for his position by the provisions of this chapter and shall be bound or re- ceive the benefits of the following sections insofar as they are applicable: Sec. 25.010, paragraphs 5 and 6(d); Sec. 30.010, paragraph 11(b)(c)(d); Sec. 40.010, paragraphs 2, 3, 4, 8, 10, 11, 12 and 13. ii. City Clerk. Only those provisions specifically enumerated under "i" above shall apply to the City Clerk. 23-3 iii. City Attorney. Only those provisions specif- ically enumerated under "i" above shall apply to the City Attorney. '(d) Volunteer personnel and personnel appointed to serve without pay. None of the provisions of this chapter shall apply to such personnel. (e) Consultants and counsel rendering temporary pro- fessional services. Such services shall be by contract and none of the provisions of this chapter shall apply. (f) Positions involving seasonal or temporary work. All of the provisions of this chapter shall apply to such positions but only insofar as they are applicable. 3. Classified Service: The classified service shall include all other positions in the City service. (a) All permanent positions established by the annual budget or salary guide adopted by resolution of the City Council. Any new position created at the start or during the budget year and either ratified or affirmed by the City Council. (b) When this ordinance becomes effective, all persons then holding positions included in the classified service: i. Shall have permanent status if they have held their present positions for at least 6 months immediately preceding the effective date of this ordinance except for police, which shall be 12 months or; ii. Shall serve a probationary period of 6 months from the time of their appointment, which may be extended before acquiring permanent status, if they have held their position for less than 6 months, with the exception of police, for which 12 months is substituted in the above for the stated 6 month period. 23.15.010 ADMINISTRATION: The personnel program established by this ordinance shall be administered by the City Manager. He shall administer all provisions of this ordinance and of the personnel rules. He shall prepare and recommend revisions and amendments to this ordinance as deemed necessary. The City Manager shall draft such rules as may be necessary to carry out the provisions of this ordinance. Such rules shall be uniform application except as specifically stated. Additionally, each department of the City is encouraged to establish departmental rules, regulations and procedures subject to the approval of the City Manager. Such rules, regulations and procedures shall be in harmony with the general rules of the City Manager and provisions of this ordinance, and shall be binding on the employees. J 23.20.010 CLASSIFICATION: 1. Initial Classification: The City Manager shall make analysis of the duties and res- 23-4 ponsibilities of all positions in the classified service and shall recommend to the Council a job classification plan. Each position in the classified service shall be assigned to a job class on the basis of the kind and level of its duties and responsibilities, to the end that all positions in the same class shall be sufficiently alike to make use of a single descriptive title, the same qualification require- ments, the same test of competence and the same pay scale. A job class may contain one position or more than one position. The Council shall adopt a classification plan by ordinance. 2. Revisions to Classification Plan: The initial classification plan shall be revised from time to time as changing positions require it, with the recommendation of the City Manager and the approval of the City Council. Such revisions may consist of addition, abolishment, consolidiation, division or amendment of the existing classes. 3. Adjustments to Organization: Whenever a change in the organization of the City administration is brought about by changes in the classification system outlined above, the City Manager shall submit to the Council a chart or table of organization of the administration, indicating the new structure and reporting relationship. 23.25.010 COMPENSATION: 1. Pay Plan -Development: The City Manager, in consultation with the Finance Director, shall prepare a pay plan and rules for its administration. The rate and range where each class shall be such as to reflect fairly the differences in duties and responsibilities and shall be related to compensation for comparable positions in other places of public employment. The objective of the pay plan shall be to provide an appropriate salary structure to recruit and retain an adequate supply of competent employees. 2. Pay Plan and Adoption: The City Manager shall submit the pay plan and rules for its administration to the City Council for adoption. Before the pay plan and the rules for its administration are adopted by the Council, the City Manager shall assign each job class to one of the pay ranges provided in the pay plan. The Council shall adopt a plan and rules by ordinance. 3. Pay Plan Amendment: The pay plan may be amended by the City Council from time to time as circumstances require, either by adjustment of rates or by reassignment of job classes to different pay ranges. All modifications shall apply uniformly to all positions in the same class. 4. Appointee Compensation: (a) Upon initial appoint- ment to a position, the employee shall receive the minimum salary for the class to which the position is allocated. (b) However, in the cases when unusual difficulty in filling the vacancy is experienced, or when the appointee is exceptionally qualified, the City Manager may cause the 23-5 - .- ­9 F� Ej appointment to be made at a salary level above the minimum, but not more than Level D for the same class. 5. Pay Day: (a) Normally, employees shall be paid on the 13th and last day of each month. If the pay date falls on a Saturday, Sunday or a holiday, employees shall be paid on the last working day preceding the pay date. (b) The mid -month pay shall be a pro rata draw or a share of net entitlements for the monthly period, or period employed if a new employee. (c) Overtime payment, see paragraph 6. 6. Overtime: (a) Department heads and supervisors shall assign to each employee regular work duties and res- ponsibilities which can normally be accomplished within the established work day and work week. (b) When employees are required to work overtime, department heads shall authorize compensatory time off or overtime pay. Determination to grant cash or compensatory time off shall rest with the department head. City Manager or acting department heads, who shall give due consideration to desires of the employee, to budgetary controls and to the provisions of Sec. 25.010, 6(c) of this ordinance. Rates for overtime shall be: General Government Regular Workday x 1 1/2 Saturday x 1 1/2 Holiday (Normal Workday) x 2-1/2 which includes holiday pay Holiday (hours beyond 8) x 2 Sundays x 2 However, General Government employees must be in a paid status for 40 hours in the work week before overtime may be paid. Public Safety Regular Workday x 1 1/2 Saturday x 1 1/2 Holiday for which the employee is not scheduled x 2 1/2 which excludes holiday pay paid annually (Sec. 40.010- 2) Holidays (hours beyond 8) x 2 Sundays for which the employee is not scheduled x 2 However, Public Safety employees must be in a paid status for their normal work week, Police (40) before over- time may be paid. Fire employees (56 hours average work week) must be in a paid status for the normal 2 week work period (112 hours) before overtime may be paid. communi- cations employees (42 hour average) must be in a paid status for the normal 2 week period (84 hours) before overtime may be paid. Overtime rates for individual public safety 23-6 employees attending special activities not part of their usual work duties, the costs of which are reimbursable to the City, will be calculated at 1 1/2 times the hourly rate based'on a 2080 hour year. (c) Compensatory time accumulation shall not exceed 8 hours. Once this maximum accumulation has been reached, all overtime compensation earned by the employee shall automatically be paid in cash. (d) For some positions, overtime is considered part of the job responsibility and, therefore, does not justify overtime pay. Cash compensation for overtime shall not be granted to the following positions - Department Heads or exempt personnel to which this provision applies. In lieu of payment, time off is authorized on a non -cumulative basis. (e) Overtime shall be paid one pay day in arrears. 7. Acting Positions: Compensation during temporary assignment -an employee who is temporarily assigned to a position with a higher pay range for a period of 10 days or more shall be paid at the first step of the higher pay range or, he shall be granted a one step pay increase, whichever is higher, for the period worked in the temporary assignment. An employee who is temporarily assigned to a position with a lower pay range, for any period, shall not receive a reduction in pay. No such temporary assignment shall exceed 6 months. 8. Promotion: When an employee is promoted from one class to another having a higher pay range, he shall receive an increase of not less than one pay step. If the employee's current rate of pay is below the minimum for the higher class, his pay shall be increased to the minimum rate of the higher class. If the employee's current rate of pay falls within the range of the higher class, his pay shall be adjusted to the ndxt higher pay step in the range _for the higher class, which is at least equal to one increment above his current pay rate. 23.30.010 PERSONNEL POLICIES AND PROCEDURES: 1. General: (a) Recruitment and appointing authority shall be vested in the City Manager. (b) Applicants must be United States citizens in order to be employed by the City. (c) Applicants for positions in the City service need not reside within the City limits. Departmental Rules shall establish response times required by that department. (d) Minimum age for City employment shall be in accordance with State of Alaska laws. (e) Employment of qualified, handicapped persons shall be encouraged. (f) Employment rights for veterans shall be in accordance 23-7 rAQ with applicable State and Federal laws. (g) Applicants must possess an appropriate valid Alaska State Driver's License, should employment require operation of a motor vehicle. (h) Applicants must complete a City application form or submit a resume of sufficient detail to equate to a City form. (i)' Preference in appointment shall be given to qual- ified City residents. 2. Appointment: All appointments to vacancies shall be made solely on the basis of merit, efficiency and fit- ness. These qualities shall be determined through careful and impartial evaluation of the following: (a) The applicant's level of training relative to the requirements of the position for which applied. (b) The applicant's physical fitness relative to the requirements of the position for which applied. (c) The results of an oral interview, and (d) Whenever practical, the results of a competitive written examination or demonstration test, which shall be a fair and valid test of the abilities and aptitudes of ap- plicants for the duties to be performed. No question in any test or in any application form or by any appointing authority shall be so framed as to attempt to elicit information concerning race, color, ancestry, sex, national origin, or political or religious affiliation for �- the purposes of discriminating. All statements submitted on the employment application or attached resume shall be subject to investigation and verification. If required by the department, applicants shall be fingerprinted prior to appointment. Any job applicant or employee may be required to take a physical examination. In cases where a physical examination is deemed advisable, the City shall pay the cost of the examination. ' 3. Probationary Period: All original appointments shall be tenative and subject to a probationary period of not less than 6 months consecutive service, except for Police, which shall be normally 12 months, subject to meeting criteria for certification which may be accomplished following 6 months of service. Promotional appointment probationary period shall, for all personnel, be not less than 6 months. In cases where the responsibilities of a position are such that a longer period is necessary to demonstrate an employee's qualifications, the probationary period may be extended; however, no probationary period shall be extended beyond 12 months or 18 months for police. The employee shall be notified in writing of any extension and the reasons therefore. During the first 6 months of probationary period, a new employee (including police) shall not be eligible for vacation ✓ benefits, but he shall earn vacation credit from the first day of employment. 23-8 Upon completion of the probationary period, the em- ployee shall be considered as having satisfactorily dem- onstrated qualifications for the position, shall gain regular status, one step in pay raise, and shall be so informed through his supervisor. During the probationary period, a new hire may be terminated at any time without appeal. In the case of promotional appointments, the promoted employee may be demoted at any time during the probationary period without appeal, provided that the probationary em- ployee be reinstated in the class designation from which he was promoted, even though this necessitates the layoff of the employee occupying the position. 4. Merit/Growth/Evaluation: (a) Evaluations shall be required annually of all classified employees. Supervisors shall indicate thereon his recommendation as to whether or not the employee has merited a growth pay raise in accord- ance with the City Pay Plan, Sec. 23.55.010. (b) Approval of increment merit pay raises are vested in the City Manager. 5. Hours of Work: (a) The hours during which City offices and departments shall normally be open for business shall be 8:00 a.m. to 5:00 p.m., DPW - 8:00 a.m. to 4:30 p.m., except Saturdays and Sundays, holidays and further excepting Police and Fire which shall be open for business 24 hours a day. The library and Animal Control operations shall be open for business as authorized by the City Manager. (b) Public Safety employees, not including administrators, normal work week is: i. Police-4 shifts of 10 hours per week, 2080 hours annually; ii. Fire-24 hours on, 24 hours off/equivalent of 56 hours per week, 2912 hours annually; iii. Communication-12 hours on, 36 hours off/equiv- alent of 42 hours per week, 2184 hours annually. (c) All other employees' normal work week is 40 hours/8 hours a day, 2080 hours annually. Standard work day is midnight to midnight succeeding. Standard work week is midnight Sunday to midnight Sunday succeeding. Operating hours may be adjusted to meet special situations on timely notice. 6. Attendance: Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays and leaves of absence. An employee shall not absent himself from work for any reason without prior approval from his supervisor. When prior approval is not obtained, an employee, who for any reason fails to report to work, shall make a sincere effort to notify his supervisor of his reason for being absent. If the absence continues beyond the first day, the employee shall notify the supervisor on a daily basis unless other arrangements have been made with the supervisor. Departments shall maintain records of employees' attendance. 23-9 r Any unauthorized absence of any employee from duty shall be deemed to be an absence without pay and may be cause for disciplinary action. 7. Personnel Records: The City Manager shall cause a service or personnel record to be maintained for each employee in the service of the City of Kenai. The personnel record shall show the employee's name, title of position held, the department to which assigned, salary, change in employment status, training received, and such other information as may be considered pertinent. A personnel action form shall be used as the single document to initiate and update personnel records. Employee personnel records shall be considered con- fidential and shall be accessible only to the following: (a) the employee concerned, (b) selected City officials authorized by the City Manager. Departmental personnel files should not be developed or maintained, except as working records; i.e., accumulating data for evaluation reports. Departmental personnel records are therefore unofficial and have no standing. 8. Transfers: Requests from employees for transfers from one department to another shall be made in writing and shall be directed to the employee's present department head and referred to the appropriate department head and the appointing power. Such requests shall be given consideration when a suitable vacancy occurs; however, no employee shall be transferred to a position for which he does not possess the minimum qualifications. 9. Layoff: If there are changes of duties in the organization, lack of work or lack of funds, the appointing authority may lay off employees; however, the appointing authority shall first make every reasonable effort to integrate those employees into another department by transfer. When layoffs are required, the appointing authority shall base the decision on relative merit, and shall give due consideration to seniority in the City service only where the employee's qualifications and ability are relatively equal. 10. Outside Employment: No full-time employee shall accept outside employment, whether part-time, temporary or permanent that could reasonably interfere, conflict or reflect on the City. It is the individual employee's res- ponsibility to insure compliance with this section. Con- sultation with the individuals department head is strongly recommended before acceptance of outside employment. 11. Travel Expense: When employees are required to travel outside the City on City business, reimbursement, subject to advances received, for expenditures incurred shall be determined as follows: (a) Prior to traveling outside the City, the employee shall obtain permission for the trip and the mode of travel from the department head. 23-10 L } I (b) Travel on official business outside the City by a single individual shall be via public carrier or city -owned vehicle whenever practical. If, for extenuating circum- stances, the employee is authorized to use a private vehicle, total mileage shall be paid at the rate of $.20 per mile for the first 100 miles, $.10 per mile for the next 100 miles, and $.05 per mile thereafter. This rate includes all travel, insurance and storage expenses of the vehicle. (c) Those employees who habitually use their privately owned vehicle for City business shall be reimbursed $20 per month, subject to authorization by the City Manager. (d) The authorized per diem rates are $20 per day plus lodging expenses. Part days will be reimbursed for actual costs incurred. Claims for lodging expenses will be supported by receipts. 12. Moving Expense for New Employees: Whenever a pro- fessional or technically trained person changes his place of residence more than 50 miles, for the purpose of accepting employment with the City, such a person may be reimbursed for actual and necessary expenses under the following conditions: (a) The employee must be appointed to a position or a class for which the City Manager certifies that such expenditure is necessary to recruit qualified employees and funded by the Council. (b) The maximum reimbursable shall be subject to negotiation at the time of an offer of acceptance of appoint- ment. (c) To be eligible for the total allowance for an employee who is the head of a household, his dependents must accompany him or join him within one year of the date of his appointment. (d) New employees who are assisted with their moving expenses shall be required to sign a Transportation Agreement prior to employment. The Transportation Agreement stipulates that the employee will reimburse the City for all or part of such expenditures in the event of voluntarily leaving City service within a period of 2 years according to the following schedule: 100% - Less than 6 months 75% - 6 months but less than 12 months 50% - 12 months but less than 18 months 25% - 18 months but less than 24 months 0% - 2 years and over New employees may not be given an advance against moving expenses without prior written approval of the City Manager. 13. In -Service Training: The City Manager shall encourage training opportunities for employees and supervisors in order.that services rendered to the City will be more ef- fective. He shall assist department heads in meeting training programs designed to meet immediate City-wide personnel needs and to prepare employees for promotion to nn�;f;nn� of arpaf-Pr rpsnnnsihility_ 23-11 r Training sessions may be conducted during regular , working hours at the discretion of department heads. I lY. ReiaLiVCs its CiLy Sutvlt:e: Two uteutbers of an immediate family (spouse, children, brother, sister or parents) shall not be employed under the same supervisor. Neither shall two members of an immediate family be employed , at the same time regardless of the administrative depart- ment, ig such employment will result in an employee super- vising a member of his immediate family. This section shall not be construed to prohibit employment by the City of relatives of City Council members. The provisions of this section shall apply to promotions, demotions, transfers, reinstatements and new appointments. i Cohabitation by adults of the opposite sex presumes a family relationship and shall be construed as such. I Ij 23.35.010 GENERAL CONDUCT, DISCIPLINE, TERMINATION AND APPEAL: 1. Personal Appearance and Conduct: Public relations shall be an integral part of each employee's job. All employees shall be neat and clean in appearance and - shall conduct themselves in a manner which is appropriate for an employee in public service. Departmental regulations may impose reasonable specific standards of dress and ap- pearance. i Employees shall be courteous, efficient and helpful to everyone in their work and shall do the best job possible on . ! every assignment. 1 2. Causes for Warning, Suspension or Dismissal: When an employee's conduct falls below desirable standards, he may be subject to disciplinary action. General reasons for which an employee may be disciplined include: 1 (a) Drinking intoxicating beverages or use of non- prescription depressant, stimulant hallucinogenic or narcotic drugs on the job or arriving on the job under the influence j of intoxicating beverages or such drugs. 1 (b) Violation of a lawful duty; (c) Insubordination; (d) Breach of discipline; (e) Being absent from work without first notifying and securing permission from the employee's supervisors; (f) Being habitually absent or tardy for any reason; (g) Misconduct; (h) Conviction of a felony or a misdemeanor involving moral turpitude; (i) Using religious, political or fraternal influence; (j) Accepting fees, gifts, or other valuable things in = the performance of the employee's official duties for the City; L (k) Inability to perform the assigned job; (1) Political activity as restricted by the Charter. ' 3. Forms of Disciplinary Action: Disciplinary action ranges from oral or written reprimands to suspension, demotion and finally dismissal from the City service, and depends on 23-12 the severity of the offense as well as the number and the frequency of previous acts of misconduct. It shall be the duty of all City employees to comply with and to assist in carrying into effect the provisions of the City's personnel rules and regulations. No employee shall be disciplines except for violation of established rules and regulations, and such discipline shall be in ac- cordance with procedures established by the personnel rules and regulations. Every department head shall discuss improper or in- adequate performance with the employee in order to correct the deficiencies and to avoid the need to exercise dis- ciplinary action. Discipline shall be of increasingly progressive severity whenever possible. A written notice shall be given each employee for each disciplinary action stating the reasons for the disciplinary action and the date it shall take effect. The notice shall be given to the employee at the time such action is taken. A copy of the notice signed by the employee shall be placed in the employee's personnel file and shall serve as prima facie evidence of delivery. All permanent employees shall have the right to appeal disciplinary action taken against them within 5 working days after the effective date of disciplinary action. Appeals shall be made as grievances in accordance with the provisions set forth below. 4. Grievance Procedure: The City shall promptly consider and equitably adjust employee grievances relating to employ- ment conditions and relationships. Furthermore, the City desires to adjust the causes of grievances informally -both supervisors and employees are expected to resolve problems as they arise. The following steps shall be followed in submitting and processing a grievance: (a) Step 1 - The aggrieved employee or group of employees shall orally present the grievance to the immediate super- visor within 5 working days of the occurrence, not including the date of presentation. (b) Step 2 - If the grievance is not settled in Step 1, it shall be prepared in detail, shall be reduced to writing, shall be dated, shall be signed by the aggrieved employee or group of employees and shall be presented to the department head within 5 working days after the supervisor's oral reply is given, not including the day that the answer is given. (c) Step 3 - If the grievance is not settled in Step 2, the written grievance shall be presented along with all pertinent correpondence, records and information accumulated to date to the City Manager within 7 working days after the department head's response is given, not including the day that the response is given. The City Manager shall meet with the aggrieved employee or group of employees, the immediate supervisor and the department head. The City Manager shall reply to the grievance in writing within 7 working days of the date of presentation of the written grievance. The decision of the City Manager shall be final and binding on the employee or group of employees. 23-13 If the grievance procedures are not initiated within the time limits established by this section, the grievance shall be considered not to have existed. Any grievance not taken to the next step of the grie- vance procedure shall be considered settled on the basis of the last reply made and received in accordance with the provisions of this section. If.the City fails to meet or answer any grievance within the time limits prescribed for such action by this section, such grievance shall automatically advance to the next step. If the City fails to mppt or answer any grie- vance on the last step of the grievance procedure within the time limits prescribed for such action by this section, it shall be deemed that the City has considered the grievance to be in favor of the grievant and shall resolve the matter accordingly. The time limits prescribed in this section for the initiation and completion of the steps of the grievance procedure may be extended by mutual consent of the parties so involved. Likewise, any step in the grievance procedure may be eliminated by mutual consent. Mutual consent shall be indicated in writing and shall be signed by all parties involved. No employee shall be disciplined or discriminated against in any way because of the employee's proper use of the grievance procedure. 5. Resignation: To resign in good standing, an employee shall give the appointing authority not less than 10 working days prior notice of such resignation unless the appointing authority agreed to permit a shorter period of notice because of extenuating circumstances. The notice of resignation shall be in writing and shall contain the reasons for leaving the City service. Failure to comply with this section shall be entered in the employee's service record and may be cause foX denying future employment with the City. 6. Reemployment: Permanent and probationary employees with a satisfactory record of service who resign their positions (in accordance with the provisions of this or- dinance for resignation from the City service) may, on their written request, withdraw such resignation within one year from the effective date thereof and be considered on a preferential basis for reemployment in the same or compar- able classification to one resigned from. The preferential eligibility of all candidates for re- employment shall expire 2 years from the date on which they become entitled to the reemployment rights. A reemployed individual shall acquire seniority based on the length of the employee's continuous service to the City since the employee's last date of hire. 7. Cost Consciousness: City employees shall practice every economy possible in the discharge of their duties. Employees are encouraged to recommend to their super- visors work procedures which will result in a cost saving or improved service to the public. 8. Safety: The City Manager shall be responsible for the development and maintenance of a safety program, equal 23-14 i, to but not limited to OSHA requirements. Such program shall _ include safety regulation and discipline controls. Department heads, supervisors and employees shall guard the safety of themselves, fellow employees and the public. When accidents occur on City property, the employee shall contact his supervisor immediately and the supervisor shall complete an accident form. In case of a motor vehicle accident, the Police Department shall also be notified immediately. The City Manager shall be notified of all accidents in- volving City employees and City equipment as soon as possible and not later than the next work day. 9. Legal Liability: Employees shall abide by all laws and regulations which govern the performance of their duties, and shall perform their duties as reasonable, prudent persons. Defense of legal claims against an employee relating to an official status with the City, shall be the responsibility of the City. If an employee is grossly negligent in the performance of duties and responsibilities and if an accident results from such negligent performance of duties and responsibil- ities or if a court of law finds that the employee wilfully exceeded his scope of duty and responsibility, the employee may be held personally and legally liable. 23.40.010 BENEFITS: 1. General: All regular full time, regular part-time (15 hours and over per week) classi- fied employees are entitled to the following benefits as specified in this article. 2. Holidays: All regular employees of the City shall be entitled to the holidays listed below with pay. Full time employees shall receive regular compensation; part-time employees shall be compensated in proportion to the number of hours they are normally scheduled to work. (a) New Year's Day (b) Washington's Birthday (c) Memorial Day (d) Independence Day (e) Labor Day (f) Alaska Day (g) Veterans Day (h) Thanksgiving Day (i) Day after Thanksgiving (j) Christmas Day (k) A floating holiday to be selected by the City Manager If any such holiday falls on a Sunday, the following Monday shall be given as a holiday. If such holiday falls on a Saturday, the preceding Friday shall be given as a holiday. 23-15 j....... . .. Any general government employee who works on a recog- nized holiday as part of his regular work week shall be paid double time for that day which shall include his regular pay. .Any hours worked beyond normal on the holiday shall be paid at two times their regular rate of pay. Public safety employees shall receive pro rata an annual payment each December for appropriate holidays as follows: Firefighters (56 hour week), 11.2 hours pay per holiday Police (40 hour week), 8 hours pay per holiday Dispatchers (42 hour week), 8.4 hours pay per holiday Holidays which occur during vacation shall not be charged against such leave. 3. Annual leave: (a) accrual rate: i. Regular full-time classified and exempt employees less firefighters and communications personnel: 16 hrs. per month -first 2 years of service 18 hrs. per month-3 through 5 years of service 20 hrs. per month-6 through 10 years of service 22 hrs. per month -more than 10 years of service Regular part-time employees working 15 hours a week or more shall accrue at the same rate as a full-time employee except on a proportional basis as to hours. ii. Firefighters -Fire Engineers --Based on a 56 hr. week. 22.4 hrs. per month -first 2 years of service 25.2 hrs. per month-3 through 5 years of service 28.0 hrs. per month-6 through 10 years of service 30.8 hrs. per month -more than 10 years of service iii. Communications Personnel: (Based on 42 hour week) ' 16.8 hrs. per month -first 2 years of service 18.9 hrs. per month-3 through 5 years of service 21.0 hrs. per month-6 through 10 years of service 23.1 hrs. per month -more than 10 years of service (b) Annual leave is charged on a hour for hour basis; i.e., normal work day of 8 hours would be charged at 8 hour annual leave, 12 hour work day-12 hours annual leave, 10 hour work day-10 hours annual leave, 24 hour work day-24 hours annual leave. (c) Leave continues to accrue during the period of time an employee is on paid leave except during periods of terminal leave. Leave does not accrue during periods of leave without pay. (d) Accrued and unused leave may be carried over from one year to the next for the purpose of accumulating an annual leave account or reserve. However, on December 31 of 23-16 any year, an employee may not have more leave to his/her credit than the total of 80 hours times the number of years of City service to the nearest quarter, 112 hours for Fire, 84 hours for Communications. The maximum leave hours that may be accrued is 640 hours for regular classified and exempt, 896 hours for Fire and 768 hours for Communications. (e} Annual leave may be used for any purpose desired by the employee. Incidental absences for sickness as un- planned are not controllable. However, planned absences must be coordinated with and approved by the appropriate department head. (f) It is expected that each employee shall plan at a minimum 80 hours of annual leave per year for General Govern- ment employees, 112 for Fire, 84 for Communications, and effect appropriate coordination with the Department head. (g) Excess leave above the amount authorized for accrual (Paragraph iii d above) existing on December 31 shall automatically be paid at the then existing rate for the individual employee. (h) Department heads shall schedule vacations for their respective employees with due consideration for the desires of the employees and the work requirements facing the department. Vacation schedules may be amended to allow the department to meet emergency situations. (i) In the event of a significant illness or injury not covered by Workman's Compensation, an individual per- manent employee on exhausting annual leave may borrow up to a 6 month entitlement (i.e., 6 x 16 hours) to avoid a no -pay status. 4. Terminal leave: Upon separation during initial probation (first 6 months for Police), accrued annual leave shall not be granted nor paid to the employee. In other separations, accrued leave shal be paid in a lump sum. The salary or hourly rate to be used in computing the cash payment shall be the rate which is being received by the employee on the date of application for cash payment, or when resignation/separation is signed by the employee. 5. Leave of absence without pay: (a) Leave without pay may be granted to an employee upon recommendation of the department head and approval of the City Manager for up to 180 days. Each request for such leave shall be considered in the light of the reasons for the request and of the needs of the organization. Leave of absence without pay is not authorized or permitted for other employment. Leave without pay shall not be requested nor granted until such time as all accrued annual leave has been exhausted, except when an employee is absent and drawing Workman's Compensation Pay. (b) If an employee uses more than 30 days total leave without pay during his leave year, his merit anniversary and length of service dates shall be advanced by the number of days such leave without pay exceeds 30 days. 23-17 f (c) During a period of leave without pay, the em- ployee's benefits shall be in abeyance. Cost of maintenance of health and related benefits will be at the personal expense of the employee and must be prepaid via the City to insure continued coverage. 6. Leave of absence with pay: Employees may request leave of absence with pay for: (a)' Witness or Jury Duty: When a City employee is called for jury duty or is subpoenaed as a witness, he shall not suffer any loss of his regular City compensation during such absence; however, he shall be required to transfer any compensation he receives for the performance of such duty to the City. Time not worked because of such duty shall not affect annual leave accrual. (b) Military Leave: An employee who has successfully completed the probationary period and who is a member of the National Guard or a reserve component of the Armed Forces of the United States or of the United States Public Health Service shall be entitled, upon application, to a leave of absence from City service for a period not exceeding 15 calendar days in any one calendar year. Such leave shall be granted without loss of time, pay (difference between regular and military pay including COLA, but not including other regular allowances) or other leave, and without impairment of merit ratings or other rights or benefits to which he is entitled. Military leave with pay shall be granted only r-- when an employee receives bona fide orders to temporary active or training duty, and shall not be paid if the em- ployee does not return to his position immediately following the expiration of the period for which he was ordered to duty. (c) Conferences and Conventions: Decisions concerning attendance at conferences, conventions, or other meetings at City expense shall be made by the department heaft- with the approval of the City Manager. Permission shall be granted on the basis of an employee's participAtion in or the direct relationship of his work to the subject matter of the meeting. Members of professional societies may be permitted to attend meetings of their society when such attendance is considered to be in the best interest of the City. 7. Educational Opportunities: (a) The City shall reimburse an employee for 1/2 the amount of tuition for courses directly related to the em- ployee's work and conducted outside the employee's regular working hours, provided that: i. Funds for such expenditures are available in the current budget, ii. The employee has made application for approval of the course and tuition reimbursement to his depart- ment head at least 10 days prior to the registration for such course, and iii. The employee submits evidence of satisfactory Jcompletion of the course, and 23-18 t r 1 iv. The employee is not receiving reimbursement for tuition from any other source. (b) Courses which are only offered during regular working hours may be approved by the department head pro- vided time off can be arranged conveniently and reasonable arrangements can be made to make up time off. (c)• The City shall allow time off with pay and shall reimburse an employee for the expenses of attending classes, lectures, conferences or conventions when attendance is on an assignment basis with prior approval of the employee's department head. (d) Normally, the cost of textbooks and technical pub- lications required for such courses shall be the responsibil- ity of the employee. If the City purchases any of the textbooks and publications for such courses, said textbooks and publications shall become the property of the City. 8. Retirement: All full-time employment employees are ._.. required to participate in the State Public Employees Retire- ment System. See PERS Handbook for details. 9. Retirement age: As authorized and required by Public Employees Retirement System. 10. Social security: The city shall match the employee's contribution in the Social Security Plan. 11. Industrial accidents: All employees shall be covered under the State of Alaska Workmen's Compensation program for industrial accidents and disease. Benefits include medical treatment and care as well as disability compensation during the periods of time lost from the job. _ 12. Medical and hospital insurance: As provided by Group Policy G & G A836288A (Travelers Insurance Company) at no cost to the employee. Life, major medical, hospital- ization, dental and vision insurance are included as part of Group Insurance. :+. 13. Maternity leave: Immediately preceding and follow- ing childbirth, an employee is entitled to take a total of 9 weeks leave. This leave will be charged first to annual leave and if this is insufficient to leave without pay for the balance of the period of 9 weeks. ii Upon application and under extenuating circumstances, additional leave may be granted by the appointing authority. A physician's certificate shall be required to support the additional leave request. Where a maternity leave of absence ¢. is taken in accordance with this section, the employee shall accumulate service credit during such paid leave of absence. 1 23.45.010 PERFORMANCE EVALUATION: 1. Purpose: The primary purpose of the employee performance evaluation -- program is to inform employees how well they are performing and to offer constructive criticism on how they can improve -'i their work performance. Performance evaluation shall also ; 23-19 -- , be considered in decisions affecting salary advancement, promotions, demotions, dismissals, order of layoff, order of reemployment, placement, and training needs. "- 2. Periods of evaluation: Each employee in the classi- fied service shall have his performance evaluated at the following periods: (al End of probationary period: Each employee shall be evaluated 30 days prior to the completion of his probationary period. The employee must have an overall evaluation of at least "satisfactory" in order to become permanent. (b) Annual: Each employee shall receive an annual performance evaluation 30 days prior to his anniversary date. (c) Time of separation: Each employee shall be eval- uated at the time of separation and such record shall become part of his permanent personnel file. 3. Performance evaluators: -: (a) Rating officer: The rating officer shall normally _ be the employee's immediate supervisor. The rating officer shall be responsible for completing a performance evaluation _ report at the time prescribed for each employee under his supervision. (b) Reviewing officer: The reviewing officer shall normally be the rating officer's immediate supervisor or department head. The reviewing officer shall review the performance evaluation report completed by each rating officer under his jurisdiction before the report is dis- cussed with the employee. The reviewing officer shall - consider the performance evaluations completed by the rating officer in evaluating the rating officer's performance. 4. Review of performance reports: The rating officer shall discuss the performance evaluation report with the i employee before the report is made part of the employee's permanent record. If the rating officer plans to recommend :'- the denial of an in -grade salary increment or recommend an + II extraordinary increment, the report must be discussed with the reviewing officer and the City Manager prior to review with the employee. 5. unsatisfactory evaluation: Employees who receive an overall rating of "unsatisfactory" on their annual evalua- tion shall not be eligible to receive an in -grade salary increment. Employees who receive two consecutive overall ratings of "unsatisfactory" shall be subject to dismissal. 6. Performance evaluation appeal procedure: Employees' performance evaluation reports shall not be subject to the standard grievance procedure. Employees shall have the right to appeal their evaluation in accordance with the following procedure: Step 1-If, after a review of his performance evaluation report with the rating officer, the employee feels that the report is unfair, he may request a meeting with the reviewing officer by checking the appropriate section on the report. 23-20 i IF The rating officer will then immediately forward the report , to the reviewing officer who will arrange to meet with the employee within 5 working days after receiving the report. The reviewing officer will then forward a decision in writing to the employee within 5 working days after the date of their meeting. Step 2-In the event that the employee is dissatisfied with the decision of the reviewing officer, he may within 5 working days of receipt of the decision appeal his performance evaluation report, in writing, to the City Manager. The City Manager shall within 5 working days meet and discuss f the report with the employee. The City Manager will, in writing, make a decision within 10 working days from the date of their meeting. The decision of the City Manager - will be final. 23.50.010 CLASSIFICATION PLAN CLASS CODE CLASS TITLE RANGE 101 City Manager NG 102 City Attorney NG ' 103 City Clerk NG 104 Finance Director* 24 105 Public works Director* 22 106 Police Chief* 22 107 Fire Chief* 22 108 Senior Accountant 19 = 109 Assistant Engineer 17 110 Code Enforcement Officer 17 Airport Operations Manager 17 --.: ADMINISTRATIVE SUPPORT . f 201 Department Assistant I 3 202 Department Assistant II 7 203 Administrative Assistant 8 204 Accounting Technician I 10 -,. 205 Accounting Technician II 11 206 Accountant 16 PUBLIC SAFETY 301 Assistant Fire Chief 18 302 Fire Fighter 13 303 Police Lieutenant 18 304 Police Sergeant 16 305 Police Officer 14 j, 306 Dispatcher 7 307 Fire Engineer 15 `• 308 Correctional Officer I 11 309 Correctional Officer II 14 310 Fire Captain 16 311 Fire Marshall 16 23-21 0 I 11 ra� I 0 CLASS CODE CLASS TITLE RANGE PUBLIC WORKS 401 Building Inspector 15 402 Shop Foreman 15 403 Maintenance Supervisor 15 404 Treatment Plant Operator 13 405 Water & Sewer Operator I 12 406 Mechanic helper 12 407 Maintenance Worker I 11 408 Mechanic 14 409 Maintenance Worker II 12 410 Water & Sewer Operator II 13 SOCIAL SERVICES 501 Librarian* 14 502 Sr. Citizen Coordinator 8 503 Parks & Recreation Director* 16 504 Animal Control Officer 10 *Department Directors 23.55.010 PAY PLAN: 1. Exempt Salaries: (a) City Manager $43,000 annually (b) City Attorney $37,500 annually (c) City Clerk $23,500 annually 2. Salary structure by grade: (a) Table (attached) (b) On completion of the probationary period, each employee shall be advanced one step. At succeeding anniver- sary dates, subject to evaluation, employee may be advanced a step increment. The time period normally between steps B to C to D to E to F is one year. The time normally between Steps F to AA to BB to CC is 2 years. 3. Qualification pay: In recognition of professional development, personal time and effort of the individual to achieve same, the following annual recognition entitlement is authorized, payable on a pro rata monthly basis. This recognition entitlement is not considered when calculating hourly rates for overtime, double-time, annual leave or holiday pay. (a) Police Department: Certification in accordance with State of Alaska Certification Standards. Police Officer Intermediate Certification $720/year Advanced Certification $1,440/year 23-22 0 1 Police Sergeant Intermediate Certification $720/year Advanced Certification $1,440/year Police Lieutenant Advanced Certification $720/year (b) Fire Department: i. Recognition entitlements for an associate degree in fire science is $480 per year. Eligible grades are firefighter, engineer, lieutenant and captain. ii. Recognition entitlements for P24T certification for eligible grades of firefighter, engineer and lieuten- ant are as follows: F24T I Instructor $ 60/year EMT II $120/year EMT III $300/year c. Ilater and sewer utility: recognition entitlements for water and sewer certification are: t7 & S II $180/year W & S III $300/year 4. Uniform allowance: (a.) The following annual allowances are established to defer the cost of uniform cleaning, maintenance and replacement for second and succeding years of service: Jail $150; Police $250; Fire $200; Annimal Control $250 Payment shall be made based on pro-rata service and paid in July 1st and January 1st installments. (b) On hiring, the respective department head shall issue from stock or purchase from appropriate funds a basic uniform and equipment issue. , (c) Department of Public works, Water & Sewer and Animal Control personnel shall be authorized by purchase from appropriated funds, safety shoes, hard hats and other OSHA required items. Laundry service will also be provided for those clothing items furnished. 5. Hourly rates -part-time employees: PT-1 $3.40/hour PT-2 $3.65/hour PT-3 $3.90/hour PT-4 $4.15/hour PT-5 $4.40/hour PT-6 $4.65/hour PT-7 $4.90/hour 6. Stand-by pay: Where employees are regularly placed on a stand-by status for a Saturday, Sunday or Holiday, they shall be entitled to a minimum of 2 hours pay for such stand-by status. In the event of a "call out," overtime shall be paid for hours worked but not less than the minimum of 2 hours. 23-23 j i CLASSIFIED SALARY TAL'LE I 1 RANGE A B C D E F AA BE CC i 1 3 12,847 13,168 13,489 13,810 14,131 14,452 14,773 15,694 15,415 7 15,620 16,011 16,402 16,793 17,184 17,575 17,966 18,357 18,748 8 16,406 16,816 17,226 17,636 18,046 18,456 18,866 19,276 19,686 - i j 9 17,221 17,652 18,083 18,514 18,945 19,376 19,807 20,238 20,669 10 18,078 18,530 18,982 19,434 19,886 20,338 20,790 21,242 21,694 11 18,979 19,453 19,927 20,401 20,875 21,349 21,823 22,297 22,771 1 12 19,936 20,434 20,932 21,430 21,928 22,426 22,924 23,422 23,920 -, 20,922 21,445 21,968 22,491 23,014 23,537 24,060 24,583 25,106 'e�3 14 21,980 22,530 23,080 23,630 24,180 24,730 25,280 25,830 26,380 15 23,090 23,657 24,234 24,811 25,388 25,965 26,542 27,119 27,696 16 24,223 24,829 25,435 26,041 26,647 27,253 27,859 28,465 29,071 17 25,438 26,074 26,710 27,346 27,982 28,618 29,254 29,890 30,526 -18 26,709 27,377 28,045 28,713 29,381 30,049 30,717 31,385 32,053 19 28,038 28,739 29,440 30,141 30,842 31,543 32,244 32,945 33,646 20 29,454 30,190 30,926 31,662 32,398 33,134 33,870 34,606 35,342 22 32,455 33,266 34,077 34,888 35,699 36,510 37,321 38,132 38,943 f 24 35,833 36,729 37,625 38,521 39,417 40,313 41,209 42,105 43,001 hourly rates are determined by dividing annual salary by number of hours in work year. _ 23-24 r ---j , 3= r t' , 23.60.010 DEFINITIONS: As used in this ordinance the following terms shall have the meanings indicated: 1. Department: A major functional unit of the City government established by the City Council. 2. Department Head: A person directly responsible to the City Manager for the administration of a department. Wherevez under the provisions of this chapter, approval of a department head is required, if the person requesting approval is a department head, the approval shall be obtained from the City Manager. 3. Full-time Employee: An employee who works the normal amount of working hours for the class assigned. 4. General Government Employee: A City employee other than a Public Safety employee. 5. Grievance: An employee's oral or written expression of dissatisfaction with some aspect of his employment, a management decision affecting him, or an alleged violation of his rights for the purpose of attempting to gain an adjustment of said cause of dissatisfaction. 6. Permanent Part-time Employee: An employee who is employed regularly for less than the normal number of working hours, but who normally follows a pre -determined, fixed pattern of working hours. 7. Permanent Employee: An employee who has been retained in his appointed position after the completion of his probationary period. S. Probationary Employee: An employee who has not yet completed his probationary period. 9. Probationary Period: A working test period during which an employee is required to demonstrate his fitness for the duties to which he is appointed by actual performance of the duties of the position. 10. Public Safety Employee: A person employed in the Police, Fire or Communications departments. 11. Supervisor: Any person who is responsible to a higher divisional or departmental level of authority and who directs the work of others. 12. Temporary Employee: An employee who has been appointed for a limited period not to exceed 6 months. (Ords 336, 336(a), 364, 385, 414, 440, 458, 482, 503 & 513) 23-25 LM __ _ _. T r-_� _ter r �� �. i---• �� �11 CITY OF KENAI RESOLUTION NO. 79-145 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA THAT THE FOLLOWING TRANSFER OF MONIES BE MADE IN THE 1979-80 GENERAL FUND BUDGET. FROM; Recreation - Salaries TO: Recreation - Professional Services This transfer provides monies to hire artists to conduct Arts and Crafts Workshops. PASSED BY THE COUNCIL OF THE CITY OF KENAI this 7th day of November, 1979. VINCENT O'REILLY,--MA OR { Attest: Rf#net Whelan, City Clerk Approved by Finance Director_ ($400) $400 i CITY OF KENAI RESOLUTION NO. 79-146 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA THAT THE FOLLOWING TRANSFER OF MONIES BE MADE IN THE 1979-80 AIRPORT TERMINAL ENTERPRISE FUND BUDGET. FROM: Contingency ($500) TO: Advertising $200 Improvements Other Than Buildings 300 This transfer is needed to (1) fund advertising costs in the Terminal, and (2) fund installation of light poles in the Terminal parking lots. PASSED BY THE COUNCIL OF THE CITY OF KENAI this 7th day of November, 1979. VINCENT O'REILL OR Attest: I �fin et Whelan, City Clerk i Approved by Finance Director�G_ CITY OF KENAI RESOLUTION NO. 79-147 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA THAT THE FOLLOWING TRANSFER OF MONIES BE MADE IN THE 1979-80 JAIL FUND BUDGET: FROM: Operating Supplies ($750) TO: Professional Services $750 This transfer provides monies for physicals for jail personnel. - PASSED BY THE COUNCIL OF THE CITY OF KF.NAI, ALASKA this 7th day of November, 1979. VINCENT O'REILLY YOR ATTEST: Iffiet Whelan, City Clerk {3 i ' Approved by Finance Director! 'I i d .. r 1 .1 3 i 1 1 CITY OF KENAI RESOLUTION NO. 79-148 BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI THAT THE FOLLOWING TRANSFER OF MONIES BE MADE IN THE 1979-80 GENERAL FUND BUDGET. FROM: City Manager - Salaries ($91000) TO: f City Manager - Machinery & Equipment $9,000 f c 1 This transfer is to provide monies for the purchase of a vehicle and FAA radio for the City Manager. f PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 7th day -, of November, 1979. c VINCENT O'REILLY, M R ATTEST: Jallet Whelan, City Clerk f' Approved by Finance Director�/'vf CITY OF KENAI RESOLUTION NO. 79-149 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA AUTHORIZING THE CONTRACT FOR ARCHITECTURAL/ENGINEERING DESIGN FOR THE NEW CITY ADMINISTRATION BUILDING BETWEEN THE CITY OF KENAI AND CARMEN V. GINTOLI, ARCHITECT. WHEREAS, the City of Kenai received seven proposals for this project, and WHEREAS, this project is funded with CEIP funds, and WHEREAS, this project has been authorized by the Council of the City of Kenai, and WHEREAS, all seven firms were given consideration and interviews by the Council, and WHEREAS, after careful evaluation by the Council this list of seven was narrowed down to three, and WHEREAS, the final three firms were further interviewed, and WHEREAS, the Council as a Committee recommends to the Council as a whole that the contract for this project be awarded to Carmen V. Gintoli, Architect, and WHEREAS, the funding agency of CEIP is aware and approves of the methods used in selection of this architect, and WHEREAS, the maximum not -to -exceed figure of $49,000 listed in Carmen V. Gintoli's Scope of Services is within a budgeted amount for the project. NOW, THEREFORE,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI that Carmen V. Gintoli, Architect be awarded the project for design for a new City Administration Building, PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 7th day of November, 1979. Vincent O'Reilly, �A ATTEST: j J et Whelan -, City Clerk CITY OF KENAI RESOLUTION NO. 79-150 A RESOLUTION OF THE CITY OF KENAI, ALASKA ESTABLISHING THE AUTHORIZED SIGNATURES FOR DEPOSIT OR WITHDRAWAL OF FUNDS FROM DEPOSITORIES OF MUNICIPAL FUNDS. WHEREAS, employee turnover has reduced the number of authorized signators on accounts of the City of Kenai, and WHEREAS, an additional signator should be designated for efficient operation of the City business. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1: That for banking purposes, the persons listed hereinafter are authorized as signators on accounts of the City of Kenai and any two of such persons may sign negotiable instruments for the City of Kenai. Ben T. Delahay, City Attorney Charles A. Brown, Finance Director Lillian Hakkinen, Accountant Janet Whelan, City Clerk Section 2: That, for purposes of internal control, one of the following combinations of signatures must appear on any negotiable instrument of the City of Kenai. Ben T. Delahay, City Attorney Charles A. Brown, Finance Director or Ben T. Delahay, City Attorney Lillian Hakkinen, Accountant or Charles A. Brown, Finance Director Janet Whelan, City Clerk Section 3: That all prior resolutions designating and authorizing signators are hereby rescinded. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 7th day of November, 1979. ✓CENT TREILLY, M YOR ATTEST: Janet Whelan, y er CITY OF KENAI RESOLUTION NO. 79-151 BE IT RESOLVED by the Council of the City of Kenai, Alaska that the follow- ing transfer of monies be made in the 1919-80 general fund budget: From: Contingency ($650) To: Harbor Commission - Transportation 650 This transfer provides monies to allow two members of the Harbor Commission to attend a Statewide meeting of Port and Harbor Commissioners in Seward, November 14, 15 and 16, 1979. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 7th day of November 1979. ATTEST: Janet Whelan, City Clerk VINCENT O'REILLY, MAYOR rj i 11 LE-7-SE OF AIRPORT LA':DS OR FACILI^.IES THIS AGREEMMIT, entered into this day of 1979, by and between the CITY OF KENAI, a horse -ruled Munk`— icorporation of Alaska, hereinafter called 'City,' and RAMI TRANSIT, INC., c/o DOUG HAYNES, BOY. 6067, ANCHORAGE, AK 99502 hereinafter called 'Lessee." : That the City, in consideration of the payments of the rents and performance of all the covenants herein contained by the Lessee, does hereby demise and lease to the Lessee the following described property in the Kenai Recording District, State of Alaska; to slit: COUNTER SPACE NUMBER 16 (42 SQUARE FEET), FIRST FLOOR, KENAI l:UNICIPAL AIRPORT TERMINAL BUILDING, AS DESCRIBED IN THAT CERTAIN DEED FROST THE USA TO THE CITY OF KM.AI, FILED IN BOOK 27, PAGE 303, KENAI RECORDING DISTRICT TERM: (a) The term of this Lease is for ONE yeardf. commencing on the lot day of Jul_y, 19 79 , to the 30th day of June 1980 , at the annual rental off- 498.96 (b) The tern of this Lease may be extend Lesse successive periods of yea c , by giving writt , ice to the Lessor not an six (6) ronths prior to the expira the listing term. Each extended term shall he on the sa— d conditions as provided in this Lease for itial tern��will not be permitted to extend ase beyond the extended term. . termination of ase during the initial term or during any a ed term shall terzinate all rights of extension hereunder. PAYMIT: Subject to the terms of General Cov to. this Lease, the rental specified herein sh payable as follows. (a) Right and occupancy is authorized as becompu___t_e__d__fro he day of d the first rent shall ate qnt 1 June 30, at the rate of er day for days, equals ue. (b) Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable in ....vane,- nn or before the first day of July of each year. If the a..nual rent exceeds $2,400, then the Lessee may opt at the time of the execution hereof or at the beginning of each new Lease year to pay rent in equal monthly installments, payable in advance on or before the first day of July and on or before the first of each month there- after. (c) Rental for any period which is less than one (1) year shall be prorated bated on the rate of the last full year. (d) The rent specified herein is calculated as follows: 42 square feet at $ 99 per square foot per year, or $ 498.96 _ per year. In addition to the rents specified above, subject to General Covenant 11o. 10, the Lessee agrees to pay to the City fees as hereinafter provided: LEASE Page 1 LESSEE: Revisedd 3/30/79 LESSEE: LESSOR: i • I s LEASE OF �\ AIRPORT LAUDS OR FACILITIES THIS AGREEMENT, entered into this day of 1979, by and between the CITY OF KMIAI, a horse -ruled municipa corporation of Alaska, hereinafter called "City," and RAYEII TRAlISIT. IHC: R DOUG HAYHFS: PDX E067• Af1r. na_erF, i ecve 9440 hereinafter call "Lessee." That the City, in consideration of the payments of the rents and performance of all the covenants herein contained by the Lessee, does hereby demise and lease to the Lessee the following described property in the Kenai Recording District, state of Alaska; to wit: COUNTER SPACE MMER 16 (60 SQUARE FEET). FIRST FLOOR, KENAI MUHICIPAL AIRPORT TERMINAL BUILDING, AS DESCRIBED IH THAY4ERTAIH DEED FROM THE USA TO THE CITY OF KEHAI, FILED Iti BOOK 27, FAGE 303, KEHAI RECORDING DISTRICT TERM: (a) The term of this Lease is for 017E yearn, commencing on the _ I y day of .11;l v , 19 , to the �N day of jjjnF , 1gR0 , at the al rental of S 5712.SQ-` (b) The term of this Lease may be extended by Less a for successive periods of pars —each, by givi written notice to the Lessor not 775 than six (6) months prior the expiration �f the then exis 'Ang term. Each extended term s it be -on the same terms and c itions as provided in this Lea for the initial tern. see will not be permitted to extend th Lease beyond.the ex ed term. Any termination of this Lease ring the initia rm or during any extended term shall termi a all rights f extension hereunder. P Subject to the terms of General Covenant No. 10 of this Lea the rental specified herein shall be payable as follows: ``� (a) Right o entry and occupancy is`authorized as of the day of 19 , and the first rent_shall be eomput from sue aid to un_tTl a 30, , at the rate of $ per day for days, equals S77 now du . (b) Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable in advance on or before the first day of July of each year. If the annual rent exceeds $2,400, then the Lessee may opt at the time of the execution hereof or at the beginning of each new Lease year to pay rent in equal monthly installments, payable in advance on or before the first day of July and on or before the first of each month there- after. (c) Rental for any period which is less than one (1) year shall be prorated based on the rate of the last full year. (d) The rent specified herein is calculated as follows: 60 square feet at S .99 per square foot per year, or $ per year. In addition to the rents specified above, subject to General Covenant No. 10, the Lessee agrees to pay to the City fees as hereinafter provided: LEASE - Page 1 INITIALS. Revised 3/30/79 LESSEE*, LESSOR: � ` A (a) Rc:.cs:rents for pubIic.. imazovc=ents-now- 4CIIcfiting-p:u}.erty--in-the-an:ou:i�f y� I (b) Taxes--pertaining-to-the-leasehold-- ntcrest- of the-bessee.- i i (c) Sales tax now enforced or levied in the future computed upon rent payable in monthly installments whether rent is paid on a monthly or yearly basis. (d) Lessee agrees to g pay all taxes and --assess— ments levied in the future -by. -the -City -of -Kenai, as if Lessee was considered the -legal owner of record of the Leased Property. -- (e) Interest•at the rate of eight percent (8%) per annum and ten percent (108) penalties on any amount of money owed under this Lease which is not paid on or before the date it becomes due. (f) Additional charges as set forth in Schedule i A, attached. The purpose for which this Lease is issued is: t COMITER SPACE FOR BUS AND LIMMUSINE SERVICE f ' j GENERAL COMANTS 1. USES: Except as provided herein, any regular j use of lands or facilities without the written consent of the i City is prohibited. This prohibition shall not apply to use of areas designated by the City for specified public uses, such as fpassenger terminals, automobile parking areas, and street. 2. USES NOT CONTEI411LATED PROHIBITED: Solicitation of donations or the promotion or operation of any part or kind of business or commercial enterprise, other than as specifically set forth herein, upon, in or above airport lands, without the written consent of the City is prohibited. 3. ASSIGNMENT: (Not for collateral purposes) II Lessee with City's written consent, which will not be unreason- ably denied, may assign, in ::hula or in part, its rights as i Lessee (Leasehold Estate) hereunder except assignments for collateral purposes will be allowed pursuant to the provision of paragraph 33 herein. Any assignee•(except assignee's for collateral ' purposes, which will conform to the provisions of Paragraph 33 instead of this paragraph) of part or all of the leased premises shall assume the duties and obligations of the Lessee as to the E such part or all of the leased premises. No such assignment, however, will discharge Lessee from its duties and obligations hereunder. 4. SUBLETTING: Lessee may sublet part or all of its interest in the leasehold premises without prior City approval, except that Lessee agrees to send a copy of his executed sublease to the City within 10 days after its execution. In addition, all subleases are subject to the terms and conditions of the main lease, and no subletting shall affect the obligation of the Lessee to perform all of the covenants required to be performed by the Lessee herein. 5. TREATi•IENT OF DE:•111SE: The Lessee agrees to keep the premises clean and is good order at its own expense, suffering no strip or waste thereof, nor removing any material therefrom, without written permission of the City. At the expiration LEASE - Page 2 INITIAL$ i-Q ,/ Revised 3/30/79 LESSEE LESSOR: s , - If the City and cannot agree on one appiai:;er as above provided, or either object-, to the written report of th- appraiser as atx,ve provided, the City and Lessee shall each select an appraiser from either of the above groups who holds any of the above -required designations. Either party may select the appraiser who was jointly selected as above provided and whose report was rejected. These two appraisers shall select a third appraiser from either of the above groups and who holds any of the required designations. The appraised fair market value agreed upon in writing by two of these appraisers, or upon failure of any two to agree, the average value of the two appraisals closest to each other, shall be conclusive and binding upon City and Lessee for the purpose of adjusting the rental. Each party shall pay the fee of its selected appraiser and one-half the fee of the third appraiser. 10. LEASE UTILIZATION: Leased lands shall be utilized for purposes within the scope of the application (made a part of this Lease and attached hereto) the terms of the Lease, and in conformity with the ordinances of the City and Borough, and in substantial conformity with the comprehensive plan. Utilization or development for other than the allowed uses shall constitute a violation of the Lease and subject the Lease to cancellation at any time. Failure to substantially complete the development plan of the lane', consistent with the proposed use and terms of the Lease, sha=: constitute grounds for cancellation. 11. CONDITICN OF PREIdISES: The premises demised herein are unimproved and are leased on an "as is, where is" basis. 12. PROTECTION OF AIRCRAFT: No building or other, permanent structure shall be placed with n fifty_(50)-feet of_the property line fronting a landing_.strip, • tai_f_wiy, or apron without the written approval-of-t)ie-City. This area shall be used for parkin rcrait only. 13. OFFER TO LEASE ACCEPTANCE: The offer to lease is made subject to applicable laws and regulations of City, and may be withdrawn without notice at any time after thirty (30) days from submission thereof, unless within such thirty (30) days the Lessee executes and returns the lease to the City. 14. UNDERLYING TITLE: The interests transferred, or conveyed by this Lease are subject to any and all of the covenants, terms or conditions contained in the instruments conveying title or other interests to the City. 15. RIGHT OF INSPECTION: City shall have the right of all reasonable times to enter the premises, or any part thereof, for the purposes of inspection. 16. INSURANCE: Lessee covenants to save the City harmless from all actions, suits, liabilities, or damages resulting from or arising out of any acts of commission or omission by the Lessee, his agents, employees, customers, invitees, or arising from or out of the Lessee's occupation, or use of the premises demised, or privileges granted, and to pay all costs connected therewith. In this connection, the Lessee agrees to arrange and pay for all the following: (a) Public liability insurance protecting both the City and/or its agents and the Lessee, such insurance to be evidenced by a certificate showing the insurance in force. The amount of such public liability insurance shall have limits not less than those known as $250,000/$500,000/$100,000. LEASE - Page 4 INITIALS Revised 3/30/79 LESSEE. LESSOR: - r r• - s . ,- -� -- wr- the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies; unle!;:; expressly permitted by City in writing, and free and clear of all liens and encumbrances other than those created by for loans to City. Upon the end of the term of this Lease or any earlier termination thereof, title to the buildings and improve_ ments 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, acknowledge and deliver the same and shall pay any charge, tax and fee asserted or imposed by any and all governmental units in connection herewith. 22. RULES: Lessee shall observe, obey and comply with all applicable ruler, etc., of the State or Federal Govern- ments. 23. AIRCRAPT OPERATIONS PROTECTED: (a) 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 and all improvements approved by the City of the premises herein conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now or hereafter used for navigation of or flight in the air, using said airspace of landing at, taking off from, or operating on the Kenai Airport. (when plans for improvements pursuant to paragraph 7 are approved by the City, the City to the extent of those improvements releases the easement here expressed.) (b) The Lessee by accepting this conveyance expressly agrees for itself, its representatives, successors, and assigns, that it will not erect nor permit the erection of any structure or object, nor permit the growth of any trees on the land conveyed hereunder, which would be an airport obstruction within the standards established under the Federal Aviation Administration Regulatioris, Part 77, as amended. In the event the aforesaid covenant is breached, the City reserves the right to enter on the land conveyed hereunder and to remove the offending structure or object, and to cut the offending tree, all of which shall be at the expense of the Lessee or its heirs, or successors, or assigns. 24. RIGHT TO ENJOY14ENT AND PEACEABLE POSSESSION: City hereby 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 enjoy the said leased premises, except that any in- convenience caused by public works projects in or about the leasehold premises shall not be construed as a denial of the right of quiet or peaceable possession. 25. LESSEE TO PAY TAXES', Lessee shall pay all lawful taxes and assessments which, during the term hereof_.may- ' become a lien upon or which may be levied by the.State; Borough, City or any other tarlevying body, upon -any -'taxable possessory right which Lessee may have in or to the reason of its use or occupancy, provided, -however, that nothing herein contained shall prevent -Lessee from contesting any increase in such tax or assessment through procedures outlined in State statutes. 26. SP!:CI ,L SERVICES: Lessee agrees to pay City a reasonable charge for any siiccial services or facilities required by Lessee in writing, which services or facilities are not provided for herein. LEASE - Page G INITIAT,S, Revised 3/30/74 LESS):E%f -y— LESSOR: r i 54. ::hall not ^` allow U,c Icasel.�.Id �reu,i::._•:, to Lc_ u:.,•,1 for an uuIaw ul i,urpo:;c. ) 55. APPI:OVAL OF OTHER AUTHORITII:'�: The issuance by the City of Leases does salt rrlievethe L ca of rusiwnsibility of obtaining licenscf; or permits as may be required by duly authorized Borough, State or Federal agencies. IN hIITNF.SS [4i[EREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual ackno::•- lodgments below. CITY OF KENAI `. l By: STATE OF ALA.SKA ) )ss THIRD JUDICIAL DISTRICT ) Before me, the undersigned, a Notary Public in and for the State of Alaska, on this day personally appeared JOHN E. WISE, City Manager of the City of Kenai, known to be the person who executed the above Lease and acknowledged that he had the author- ity to sign the same, for the purposes stated therein. GIVER UNDER MY HAND AND SEAL OF OFFICE, this G day of } t� ......... Notary Public in and for Alaska My Commission Expires: LESSEE ,c �- 1: CORPORATION ACKNOWLEDGMENT +� 1 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) Before me, the undersigned, a Notary Public in and for the State of Alaska, on this day personally appeared . and , known to me to be the persons and officers whose names are subscribed to the foregoing Lease, who being duly s:;orn, did say that they are the President and , respectively, of Company, a corporation, and acknowledged to me that they executed said Lease as their free act and deed in their said capacities, and the free act and deed of said corporation, for the purposes stated therein. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this _ day of I 19 t Notary Public in and for Alaska Ply Commission Expires: ; LEASE - Page 13 INITIALS REVISED 3/30/79 LESSER: - LESSON: , I I I i f , UNWIN • SCHEBEN • KORYNTA • HUETTL 0515 A STREET ANCHORAGE, AK. 88503 278-4245 • r 1. 1,319 WY Ac of rc1>u CITY OF KEr4AI. o4m n'~• �� 01 1U/1O/79 C/O KORNELIS P.O.BOX 580 It'NOICE N,9. LOCY9279 C UST. NU. 5O0O15O Ar-PROVfD ZY C17- v�*jn,I JOB NO. 9279 0 CF;Y WNAGEis ....... Aea'Unue wofZKS .... _ — KU4AT AERIAL PHUM Pik... v ,;-•-r•�,.-„ q fIr! CL= .K � _...... � n AND MAPP IMC biiv":NAL „;t•Y T/1 FtN�rgt� F s FOR PROFESSICtJAL SERVICES RENuERED: �r Aerial Photo 1001 $5270.00 Ground Control 1000 28440,00 p�o Mapping 15°6 ($44800) 6720.00 8 04�+ 30.00 - y, o y3 s 36, 397 LESS: Prev. Inv. (24900.00) ...; AMT. THIS IUVOICE S15530.00 TGTAL T TERMS: 1'/a% per month service charge on all past due accounts. To avoid additional service charge. pay balance due within 15 days of the date of the billing. *Please return yellow Copy with payment. 1 i .V I J _ x i ' t4. i ' J Tolchina Excavating & Const. Co. P.O. BOX 326 KENAI, ALASKA "611 Phone 288-Ml INVOICE NO. 24-4�� Custom - City Of Kenai Date 10-14-74 Address P.O. Box 850 Kenai, Ak. Job Location Kornai a . f _ 3 i e'. I i 1 1P Y t CH2M III l H I LL Anchorage Office engineers 310 K Street, Suite 602 Anchorage, Alaska 99501 planners 907/279.6491 economists scientists Date 15 October 1979 Job No. K12720.00 City of Kenai Client Ref. No. Box 580 Invoice No. 9966 Kenai, Alaska 99611 Attn: Mr. Charles Brown, Acting City Manager STATEMENT ^mac:/;�:ej Deftyti For professional services from 25 July through 24 Septenber 1979 regarding the Sewerage Projects design. For detail regarding this billing period refer to Progress Report No. 6. Professional Services $23,704.64 Expenses 2,691.21 Mustafa, Hong a; Associates (Minority sub.) 5,772.77 Fee 5,131.38 Total $37,300.00 Ah10UNT DUE . . . . . . . . . . . . . . . . . . . . . . . $37, 300.00 rt- APPROVEp BY CITY OF f0>:IVAI / C CITY MANAGER , , �'F-INANCE ' I k/" 1:iLIC WORKS ❑ ATTORNEY . 7. !7/-.iiY CLERK ORIGINAL COPY TO i t � DUE AND PAYABLE ON RECEIPT OF STATEMENT. FINANCE CHARGES, COMPUTED BY A "PERIODIC RATE" OF 1% PER MONTH, WHICH IS AN ANNUAL PERCENTAGE RATE OF 12% (APPLIED TO THE PREVIOUS MONTH$ BALANCE AFTER DEDUCTING PAYMENTS AND CREDITS FOR THE CURRENT MONTH),WILLBE CHARGED ON ALL PAST -DUE AMOUNTS UNLESS OTHERWISE PROVIDED BY LAW OR BY CONTRACT. i vt � rr�o Kt � w I i.y jp- 1 {� t CH2M ®HILL engineers planners economists Anchorage Wee 310 K Street, Suite 602 Anchorage, Alaska 99501 907/279-6491 scientists Date 15 October 1979 Job No. K10510.DO City of Kenai Client Ref. No. Box 580 Invoice No. 9970 Kenai, Alaska 99611 Attn: Charles Brown, Acting City Manager O f6 2!� Fyft . ri STATEMENT For services from 25 August 1979 through 24 September 1979 regarding Central Peninsula Septage Disposal Study. Professional Services n Labor $402.54 Expenses 649.93 AMOUNT DUE . . . . . . . . . . . . . . . . . . . . . . . $1, 052.47 E� i APPROVED BY CITY OF KEMAf -f--�--- r ri Y MANAGER 001FUTAKE WAR ATT Aix KS TO G EY - . VC: CLERIC p ORIGINAL COPY TO �r Y. r J; y e. J�/�i e'er � t j DUE AND PAYABLE ON RECEIPT OF STATEMENT. FINANCE CHARGES, COMPUTED BY A "PERIODIC RATE" OF I % PER MONTH, WHICH I$ AN ANNUAL PERCENTAGE RATE OF 12% (APPLIED TO THE PREVIOUS MONTH'S BALANCE AFTER DEDUCTING PAYMENTS AND CREDITS FOR THE CURRENT MONTH{, WILL BE CHARGED ON ALL PAST -DUE AMOUNTS UNLESS OTHERWISE PROVIDED BY LAW OR BY CONTRACT. I i i z » Jf :, i ' il: yt T ALASKA DEPARTMENT OF REVENUE a APPLICATION FOR PERMIT FOR AUTHORIZED GAMES OF CHANCE AND SKILL CALENDAR YEAR 194a_ ! RETURN TO: PERMIT FEES: Dept. of Revenue - Audit $20.00 due with application Games of Chance A Skill 12 of entire net proceeds due with annual Pouch SA financial statement ;4 Juneau, Alaska 99811 FIRST APPLICATION _PERMIT RECEIVED PREVIOUSLY APPLICATION MUST BE COMPLETED IN ACCORDANCE WITH 15 AAC 05.460 ORGANIZATION: phi Chapter, Beta Sigma Phi Name: Lujean Diamond, Treasurer = Address: P.O. Box 1118 Kenai, Alaska 99611 QUALIFICATIONS FOR A PERMIT: A. Type of organization (Check one) (1)—Z—Civic or Service (6) Veterans (2) Religious (7) Police or Fire Company (3) Charitable (8) Dog Mushers (4) Fraternal (9) Fishing Derby (5) Educational (10) Political (11) Labor ' B. State how long organization has been in existence —�..ei.,e .,e..,. it vr. �vcl s ss■ zzvs C. Recognized as a non-profit organization under the Federal Income Tax Laws. —s Yes No Include a copy of IRS Certificate if not previously submitted. >>' D. Affiliation with National Organization: Name of National;_ Beta Sigma Phi Tnt,arnai-inn-7 Headquarters Address: P.0- Box 8500; Rana^^ ri y, Mi saw,ri E. Organized as a 1{ Corporation; Association; Partnership; Firm; Company. --- - Include a copy of original Charter, By -Laws and a current list of 25 local members, if not previously submitted. I i ***ALL ANSWERS MUST BE PRINTED IN INK OR TYPEWRITTEN*** 04-643 (8/78) (over) 'i- •a 'ram CITY ( 'E.NAI - CITIZEN PFTTTTQN MONTHLY REPORT 1 i DATE DATE DATE INVEST. CITIZEN RECEIVED SERVICE REQUESTED COMPLETED tJOTIFIED DEPARTMENTAL REPORT John Pierce 9/27/79 Can Road between Carr's and AK T.Y. 10/1/79 Private Drive - City does not be graded. maintain. Mrs. Konte 10/1/79 Lilac is very sandy -large trucks 10/4/79 City is hauling in gravel'and contributing to problem and tearing repairing'road where trucks up the street. t have torn up the road. 1 - Mr. Bassett 10/3/79 water smells bad- Broad & Peninsula 10/3/79 Clyde went out to propertyL n • no one was hone so tested out- side faucet -there was no shell.. checked with neighbors no other complaint. Mrs. Kleineick 10/8/79 Lilac Street -one lane traffic and .10/8/79 City is hauling out sand and road is soft and falling apart. hauling in gravel and will ask trucking co. to stop ! using the street for a turn around. Vivian Dye 10/11/79 End of Pine in Northgate is flooded. 10/11/19 Developer has promised to make retention basin. Sharon wells 10/11/79 Need to have ditch dug across Birch.. 10112/79 water hole drained by ditch ` across Birch. Mrs. Bassett 10/8/79 water smells like sewer -Pen.. $ Broad. 10/11/79 Clyde went out again and flushed•hydrants.' Mrs. Bassett 10/15/.79. water still smells bad esp. the hot.. 10/lS/79 . Lonnie took a water sample - from hot water.tap and it.• was sent in to be tested. ,. 1 Test Satisfactory. -� Kay Shearer 10/16/79 Street light pole knocked down and 10/16/79 Pole reported to light needs to be repaired.'Central Heights' company for repairs. ` Mr. MacBride 10/22/79 Sth Street off Birch needs grading. 10/29/7.9 Street too wet to'work. }i i Tim wisniewski 10/24/79 Stop sign knocked down -Pen. & Alain 10/29/79." Sign up. • 1 E ' i CITY ' 'CENAI � t - - CITIZEN PETITION MONTHLY REPORT DATE DATE DATE INVEST. CITIZEN RECEIVED SERVICE REQUESTED COMPLETED NOTIFIED DEPARTIMUTAL REPORT Mrs. Douthit 10/30/79 Walker Lane needs grading. 10/31/79 Walker Lane Bladed. Kenai Med. Cen. 10/31/79 Frontage Road and the road into 10/31/79 Rogers Road graded 10/31 ff E - INlet View needs grading. Frontage Rd. graded Ilrl f , ;t ii i DATE RECEIVED Johr, 'imager 10/1/79 hilI quandt 1G/3/79 Sharon tells 10/5/79 r. Sandy Lilderlack 10/5/79 Cindy 10/8/79 toys Hayes 10/9/79 Dave Smith 10/10/79 Annabelle 'tweedy 10/11/79 Annette 10/12/79 Hugh Gray 10/15/79 Oskolkoff 10/15/79 Lisa Borgen 10/15/79 Angela McCullough 10/17/79 Pam French-10/22/79. Mr. Saffel 10/22/79 Jim Doyle 10/22/79 Mike Dohicky 10/22/79,. I r t. it CITY 000%CENAI CITIZEN PETITION MONTHLY REPORT � DATE DATE INVEST. CITIZEN SERVICE REQUESTED COMPLETED NOTIFIED DEPARTMENTAL REPORT Lost Col en L'etriever P11ppy I()ll//'i^ Lost Dog File. Dogs in yard. kildwood Ixt. 10/3/79 Patrol area as tire perr.its Lireh St. Dogs running loose 10/5/79 -Patrol .area as tide pvimits. . Candlelight Dr. frogs running, loose 4 10/5/79 Patrol area as tir.,e PSrAits � 1 Lost Hanx Kitten 10/8/79 Lost cat file # , Neighbors letting dogs loose 10/9/79 Contacted 11r. Hayes about at night, problem ? Lost female Husky, 6 mos old 10/16/79 Lost dog File. Lost dog blk long hair rearing 10/11/79 Lost dog file I. D. tag - - i Dogs running loose. Birch St. 10/I2/79 Patrol area as*times permit Dogs in neighborhood coming up on i porch and bothering guests 10/15/79 Discussed solutions with :Irs. Gray then contacted owners. ! Lost Samoyed, b dogs running loose 18/16/79 Lost dog file. Patrol area Stray deg. Please pick up 1'0/16/79 Dog gone when I arrive06 Lost blk puppy. 10/17/79 Lost Dog File Found Blk Lab. 10/22/79 Please contact if owners come looking for dog. •: :. Lost German Shepard*. 10/21/79 Lost dog file.. I Lost two Boxers. 10/22/79 Lost dog file. I Dogs getting into garbage -ID/22/79 Contacted Airs. Dohicky, will • check' thier place when I pats>1, t .•s f i W. ' i ! •i j CITY 10�ENAI .� CITIZEN PETITION MONTHLY REPORT DATE DATE DATE INVEST. CITIZEN ; RECEIVED SERVICE REQUESTED COMPLETED NOTIFIED DEPARTMEMI, REPORT f Joseph Sl►ankel 10/22/79 Found small pale dog. 10/22/79 Please contact if owner calls Judy Russell 10/24/79 Lost German Shepard. Sterling 10/24/79 Lost dog file. fir. Ivanhoff 10/24/79 Dogs running loose on Birch St. 10/24/74 Patrol"area. /Z Mrs. Cray 10/24/79 Dogs running loose on Lilac St. 10/25/79 Cited Mrs. Cray's Neighbors at her request. Brian Johansen 10/25/79 Lost Siberian liusky, Blk 4 white 10/2S/79 Lost Dog File, ! Eric Lacelewski 10/1S/79 Lost Pitt bull puppy 10/25/79 Lost dog file Bccky Hughes 10/25/79 Lost white Poodle 10/25/79 Lost dog file. t i June Cissell 10/25/79 Found small dog terrier mix 10/2S/79 Picked up. ' fk Donna Strait 10/31/79 Lost Springer Spaniel. 10/31/79. Lost dog file. - Linda Superman 10/30/79 Lost Shepard boxer mix. 10/30/79 Lost dog fi1e. • Tt' c 1 i MONTH October Left from Sept. 3 Carried to Nov. 2 I u ANIMAL CONTROL REPORT IMPOUNDED DESTROYED 76 42 D.Q.A. ADOPTED CLAIMED 29 1 4 i i i i i i tI I �l 1 i I i �1 I �^ CITY OF KENAI •,ail eap" 4 4" P. O. BOX 590 KENAI, ALASKA 99611 TELEPHONE 283 - 7535 October 29,•1979 MEMO TO: Mayor and Council of the City of Kenai FROM: Keith Kornelis, Director of Public Works SUBJECT: What's Happening Report for City Council Meeting November 7, 1979 ALASKA DOT - WILLOW STREET PROJECT The following is a press release that we have just given to the Peninsula Clarion and KSRM. According to the Project Engineer, the fall phase of construction on the Willow Street Improvement Project will be concluded by Friday, November 2. At that time, the installation of storm drainage will be completed as well as patching of the pavement which has been removed by the contractor. Work of further improvements including street widening, repaving, curbs, gutters, sidewalk, and illumination is scheduled to resume in April, 1980 and should be completed by the end of July, 1980. RENOVATION OF WELL HOUSE 101 City Electric, the electrical contractor on the project, still has a considerable amount of work to do. They have assured us that they will meet the November 21, 1979 deadline. AIRPORT WAY - WATER, SEWER., AND STREET The only things that we are waiting for on this project are the .' sewer cleanout covers. We are still retaining $2,200 for this -__T i work. 1 a - -i t • ' 4.• ! !, r . i 3 All" What's Happening Report Page 2 October 29, 1979 WARM STORAGE BUILDING This project is a design and build project. The documents hove been sent to FAA and we are waiting at this time for FAA approval. LUBRICATION FACILITIES AND SHOP ADDITION The Drawings and Specifications have been changed to include a small building maintenance area. The Plans and Specifications have been completed and have been sent to EPA for their approval. SELCTION OF ARCHITECT FOR CITY ADMINISTRATION BUILDING Interviews were held on October 18, 1979 for the three finalists for the design of the City Administration Building. At the outset of this meeting, I was instructed to draw up a Resolution _ awarding the project to Carmen Gintoli. This Resolution will come before Council this upcoming meeting. I contacted .James Andregg with CEIP concerning the procedures and the steps that were used in the selection of this architect. This procedure meets with his approval. A contract with CEIP for this $50,000 grant has already been signed and is complete. LILAC STREET The results of the letter poll concerning improvements on Lilac Street have been compiled. The letter was sent to all property owners via certified mail on October 9, 1979. We asked that the property owner reply prior to October 22, 1979. There were a total of 30 letters sent out. Sixteen people replied prior to the October 22 deadline. Of the thirty letters sel t, only 16 percent wanted the ditches filled in. 10 percent wanted the road left the way it is and 27 percent would like to see it -paved with curbs and gutters. The results of this letter were compiled on October 26, 1979. Between the 22nd and 26th we received three more letters. By including these late letters, the percentages change as follows: 27% paved with curbs and gutters; 23% would like the ditches filled in; and 13% would like to leave the road as is. Attached is a copy of the tally sheet. The left-hand portion of the sheet is the part that was sent to the property owners. They were asked to check one of the four boxes at the left and/or write any comments that they wished concerning the street. The team leader for EDA was contacted concerning the problems which the residents have with Lilac Street. He stated that we could still use some of the grant money that is within the project but that the streets must be completed in accordance with the project documents and drawinPs. If there were to be any changes on the street a full explanation in writing must be sent to EDA. He cannot give any verbal O.K. to this change in scope of project. Approval would have to be done in writing and signed by the Regional Director. No force account work can be What's Happening Report Page 3 October 29, 1979 done on the project. If there is a change in scope of project above $10,000, it would have to go out for bid. Since the j City of Kenai has an ordinance requiring items over $2,500 f having to go out to bid, the City's Ordinance would take precedence. i INSTALLATION OF STREET SIGNS Tolchina Excavating has submitted an invoice for completion of installation of street signs. The City has completed the repairs i to the sign making machine and has delivered the needed signs to Tolchina. There are quite a few signs around the City that are still in the need of repair but were not a part of Tolchina's contract. Final inspection on this project will be on the - Sth, 6th, or 7th of November. WORKSHOP FOR SEWER TREATMENT PLANT OPERATORS There is an Activated Sludge workshop in Portland,Oregon on ' December 11, 12, and 13. This workshop is slated to be one of the best of the year and the Public Works Department desires to send our sewer treatment plant operators to the workshop. Both EPA and DEC officials have commented on the unbelieveable improvement that our treatment plant has seen over the past two years. Both of our operators have taken a considerable amount of interest in cleaning up and properly operating the '-= plant. We have recently received our compliance inspection which is done yearly and have received a comment from the EPA inspector of the plant that our plant was one of the best in the State. Test results from our operators and the professionals of EPA are unbelieveably close. Both operators have made improvements in their education also and are both certified. There are continuous changes in the sewer treatment plant business t that our operators should be aware of. Construction of the new sewer treatment plant addition is scheduled to start next construction season. Our operators need continued educational benefits and this workshop could be important to our operators. Approval for the cost to send them will come before Council at this next meeting. If approved, I plan to use someone from the Water and Sewer crew '= to watch the plant during these three days. Attached is the -,- summary of the cost for the workshop Y p plus a description of the workshop. MISCELLANEOUS ITEMS i The Public Works Department has been reviewing C112M Hill's drawings "I on the Interceptor Sewer Line and the Sewer Treatment Plant Addition. We have few made a comments on their drawings and are -_ awaiting their reply. 9 i I What's Happening Report Page 4 October 29, 1979 An application has been sent in to HEA for 10 yard lights in the City of Kenai's Airport parking lot. Six to go in the long term parking lot, 2 in the short term, and 2 by Daddy's Money. I am still awaiting a cost estimate from Malone Surveying for work on the Frontage Road south of the Spur Highway. Wince, Corthell, Bryson,and Freas seem to be knowledgable about this area, and I have therefore asked them to look into a cost estimate for engineering of a project for pavement, curb and gutter,and storm drainage. This project should be of top priority since there is an indication that the property owners would be willing bear some of the cost for construction and because this area needs to be cleaned up. KK/ j e t r --_ _- _— October 1 1979 TO: All Lilac Street Residents FRO',1: Keith Kornel is , Director of Public i'.orl:s SUBJECT: Lilac Street e validity of the letter poll of .April 13, 1979 hAs been lots on Lilac Replies Prior 10/22 Combined estioned. This poll was to ask the owners of reet what their feelings are concerning the improvements de last year. C-3 ease check one of the boxes below and return this. -sheet• in cam. o e enclosed, self-addressed, stamped envelope by October 22, 1979, - ;, �' '' is important that you return the poll no matter ho3a you a w, - -3 -r C) -n w u' el about it. _ _ • ' F_ o =. a -W .- t- FE o a. o 4J • z. 4� CG oA £--. C4 �+. .`l. dP t.,✓ dP (-+ 3 H ❑ Leave the road as it is. (Including continued maintenance. ❑ I feel Lilac Street has never had a drainage problem, and the City should spend additional money to pull the culverts S .3/ //,p 9 7 and fill he ditches with sand and gravel. ❑ I feel that Lilac Street should be paved with curbs and 8 SG a 7 8 ya a 7 gutters. ❑ I really do not care what happens. 9 Other comments: i Total... Total number of letters sent 30 Compiled on A0124f179 October 22,•1979 CiT ► 0F XLNAi .,C9,d Gap" Li Maw„ P. O. BOX 680 KENAI. ALASKA 99611 TELEPHONE 283 - 7S3S ACTIVATED SLUDGE WORKSHOP Portland C. C. Rock Creek Campus December 11, 12, 13, 1979 Air Fare for Jim Wolverton and Ken Siirila AAI Round Trip to Anchorage $ 90.00 Western Round Trip to Portland 603.88 Hotel Reservations - Monday, Tuesday, $ Wednesday Estimated $SS/per night 165.00 Per Diem for Monday, Tuesday, Wednesday, $ Thursday at $20/day each 160.00 Taxi Fare from Airport to Lodgings and Campus -Estimated 40.00 $1,0S8.88 j�� P�QGRAM - -•--.THE WORKSHOPS THE DESCRIPTIONS i� uugln the cooperation of the CHLORINATION .V munity college it1' your area and An operator course for those persons ; f State Board of Education, Linn- CHLORINATION -Southwest Oregon C.C.Q. sesponsible for chlorination equipment., ton COmtpuAlty College will again _ The course will cover the chemistry of f ACTIVATED SLUDGE )ffering up da training to the Coos Bay - North Bend , ' chlorination, the detection of Cl re- Sept.:r 25,26,27, 1979 2 r and W Wajer er8tors of g siduals, preventative and routine mainten• DAY 1 gon, ance of chlorinators and chlorination s flyer covers only those courses • • !' . ' - problems. Introduction to Operational Strat- •red during the 1979 Fail academic PUMPS AND PUMPING egtes rter (Sept. through Dec.). Linn-- PUMPS AND This eoursgcovers the operation, i SVI. 31CRT, SRT, 17/31 Ratio ton will be mailing to you a flyer PUMPING - Chemeketa C.C. maintenance basic theory, and nomen- Sludge Age, Sludge Quality, ate November covering those courses - Salem _ clature of centrifugal end suction pumps, Respiration Rate locations during Winter quarter Oct. 9, 10. 11. 1979 special attention given to selection and i Biological Principles of Secondary -i. through March). A Ayer will replacement of packing and mechanical Treatment be mailed in isle February for HYDRANTS AND seals, preventative maintenance, repair Process Control Calculations se courses offered Spring quarter . VALVES - Umpqua C.C. and replacement of pump parts. Settleometer, Centrifuge and r31 through Jlsue) Roseburg Oct. 23,24,25. 1979- -HYDRANTS AND VALVES ! Sludge Units WILL NOT be sending individual 44ill give slater works operators the DAY'2 •rs for each workshop. Therefore, skills to service and install common types r encourageyou to refer to this y CROSS -CONNECTION rr and the LBCC Training Calendar � to hydrants. cord includes inspection, testing and records. Activated Sludge Microbiology r Sludge Concentration Character- ilan your training activities for CONTROL - Linn -Benton C.C. istles coming year. Albany CROSS -CONNECTION CONTROL r Return Sludge Flow Control Nov. 6.7.8. 1979 For operation and management Tread Charts 3EGISTRATION PROCEDURE personnel. Will cover contamination pAY 3 :vses, sources and testing types, use, a year LBCC will be handling all SMALL IYATER -installation and inspection of control . I Sludge Wasting -registration. Fill out the attached r SYSTEMS - Treasure Valley C.C... devises. Data Handling istration form and mail to the seas indicated. The fee for all Ontario Dec. 4,5,6, 1979 : SMALL WATER SYSTEMS Trouble Shooting Problems •kshops is $45 per person which A course for the owner and/or • be paid in advance or at the work- - operator of small water systems (10-400 FOR MORE DETAILED INFORMATION . p. Checks for all fees paid in ACTIVATED connections). Covers wells, pumping ABOUT SPECIFIC OUTLINE TOPICS, once and billing requests should be �.. SLUDGE -Portland C.C. systems• surface water collection, . P LEASE CONTACT OUR OFFICE: le out to LBCC. You will be sent a . -1 "Kock Creek Campus chlorination, storage reservoirs, distri- I Linn -Benton Community College istration confirmation which will Dec. 11,12.13, 1979� bution systems. hydrants and meters. YlaterNiastewater Department Ieate exact workshop location and M Major emphasis will be placed on main- ! 6S00 SVI Pacific Blvd. or specific instructions. tenance of pumping piping Y P P g andsystem. t y, Oregon 97321 BRING YOUR HAND HELD ACTIVATED SLUDGE Phone: $03-928-2361 Ext. 338 11 CWULATOR TO ALL WORKSHOPS - ', Intermediate level instruction on : theory and operation of the activated I sludge process. Control schemes and : • 'operational lab tests will be covered. 3 1 • 3 r I ri iz _-r r --,% CITY OF KENAI -0d CajaiW 4 4,"fl P. O. BOX 530 XSMM, MASKA "611 TREPHONE 483 • 7535 I' October 19, 1979 RE: Contingency Aircraft Parking Plan - Fish Processors The proposed 1000 foot strip adjacent to taxiway "C" could be developed in approximately one week at an estimated cost of under $10,000. This - - space would then be leased to processors. John Arsenault, FAA Tower Chief, sees no control problems and concurs with using that area if necessary. Floyd Pattison, Chief of Airports Branch, FAA, also could see no problems when described to him on the telephone. He has been sent a letter and diagram explaining the situation. JES: jw Attach. 1 t f. 1' o r , i 1 , ' G t r wf � if A r ! / 4 'COli7/tCftCY /SE' tiJCLS50R4 rtl'!ST /-'�------------ ---- -------�--- .,, cross �r�. �. ------------- �-- - - - - - - - - ' PROPOSED APP014 EXrCUSIOP! ---------- -- - -- �315 _ ira' Pam' _, Asa ^Iro' ri10. i2o0'X 325' ADAP GKA,17"RtGUES7ED +� - IN ---....-......�-.-..--_�•---_-----'f }fit ", 10 Fir.� LOTS i' , ; - -- '4 LEASES At'fkJ ) FOX. 11 i 1 2 3 4, 5,G 7 S 10 11 i I t • . 1 fJ f J. t r 1 (; t October 26, 1979 PUBLIC STATEMENT BY THE KENAI CITY COUNCIL CONCERNING SPHERE OF INFLUENCE AND ANNEXATION STUDY AS PRESENTLY STATED IN THE DRAFT COMPREHENSIVE PLAN. The draft comprehensive plan is not before Council. The Plan must go before the City Planning & Zoning Advisory Commission for public input, revision and recommendation to Council. The Commission plans a work session Nov. 6, 1979 and a formal session November 14, 1979. The proposed plan, when it reaches Council for formal consideration may by quite different than the present form. The City Council, acting in a spirit of cooperation, desires the following to be clearly stated: The main facts considerations and recommendations of the draft plan deal with the internal development of the City. The Plan analyzes the amount of land within the City, the amount of usable land, the ownership of usable land. The amount of residential, commercial and industrial growth that can take place on such land - the findings of the Draft Plan is that substantial growth can and should take place within the present City limts. The major focus of the Plan, 174 pages out of 179, are concerned with the interior future growth of the City. As regards the five pages of the 179 which discuss "spheres of influences and future study areas" the Council wishes clearly state the only reasons for boundary adjustment would be the follow ng: 1. If the City were in a fully developed status and found itself in a landlocked situation. The Plan rather clearly demonstrates the population of the City utilizing present usable land can reach 63,721, compared to the present 4,500. It is apparent the City is not in a landlocked situation and will not be in one until a future date, if ever. 2. To produce net increase in municipal revenues. In this regard the City presently receives revenue from: a. Taxation of personal and private property, sales tax, user fees, Federal and State revenue sharing and other sources. b. The City has land assets which it contemplates selling, the proceeds of such sales will be used to offset capitol expenditures. Such sources of revenue are presently sufficient to fund reasonable growth within acceptable time frames. Further any extension of City boundaries at this time as proposed for study in the plan, would cost the City more to provide services than the revenues from the newly acquired area. ✓4 Thus it is apparent, there is no financial advantage to the City in acquiring additional areas. 3. Only after mutual study, consideration and consent of the people in the area involved, would boundary adjustments be enacted. The Draft Plan at this time calls for 'ongoing study and analysis rather than a programmed annexation plan." The Draft Plan recom- mends Borough action as regards zoning on the areas bordering the City but that is a matter to be decided by the persons in those areas, not by the persons in the City. In conclusion and review: The Draft Plan is not before the Council but is before the City Planning and Zoning Advisory Commission. The Plan is subject to revision before recommendation to the Council. The City does not have a landlocked situation requiring border adjustments. On the contrary, the analysis shows the City can grow to 15 times its present population based on present usable land. The City revenues are reasonably sufficient under presently known conditions to meet programmed growth. Adjustments of the City limits would be financially unfeasible. Any adjustment of City limits would only take place after mutual study consideration and consent of the people in the areas involved. ] 11 KENAI PENINSULA BOROUGH AGENDA 1-011 THE RECIJI.Ali ASSI.-M.R .Y MLLTING SLPTLM1!LR 18, 1979; 7:30 P.M. B)OR011611 Ai131I X I STI:.IT I ON 1;U I I.D I::G P. 0. BOX 850 . SOLDOI%A, ALASKA 99669 - A G E N D A- I'�;e No. A. CALL TO ORDER AND ROLL. CALL 1 B. PLEDGE OF ALLEGIANCE 1 C. SEATING OF NEW ASS I:"IBLYMEMm'PzS (none) 1 D. AGENDA APPROVAL 1 E. APPROVAL OF MINUTES OF SEPTEMBER 4, 1979 1 Approved F. ORDINANCE BEARINGS, OR OTHER PUBLIC HEARI`GS (a) Ord. 79-50 "Establishing a Borough -hide Economic Development Council" 1 Enacted (b) Ord. 79-52 "Establishing the Position of ssi� stan't to the Mayor for Civil Defense for the Fiscal Year 1979-80 and Appropri- ating Funds" I Enacted (c) Ord. 79-53 "Providing for the Disposal of Certain rarcels of Borough Selected Lands by Lottery and by Negotiated Sale" 2 Enacted as (d) Ord. 79-S4 "Providing for the Rezoning of Amended a portion of Killen Estates, addition No. 1 Subdivision, City of Kenai, from Rural Residential to General Commercial" 7 Enacted (e) Ord. 79-55 "Rezoning a Portion of the Beaver Greek Alaska Sub., City of Kenai, le From Rural Residential to General Commercial" 7 Enacted G. CONSIDERATION OF RESOLUTIONS (a) Res. 79-133 "Amending the Contract for gel ovia 5cl1001 Site Improvements to Include Additional Fencing" 7 Adopted (b) Res. 79-134 "Authorizing the Sale of urp us Borough Personal Property" 7 Adopted (c) Res. 79-135 "Promulgating Regulations Governi g the Lottery Sale of Borough Selected Lands" 7 Adopted as (d) Res. 79-136 "Awarding a Contract for Amended urve� y Services for the Design of Bear Creek Drive to Alpine Consulting Engineers" • 10 Adopted If. INTRODUCTION OF C>w)INANCF;S (a) Ord. 79-S9 "Amending Section 2.40.090 of the Borough Code Relating to Per Diem and Travel Expenses of Planning Commission Members" 10 Set for Bearing 10-30-79 t 7i 9 AGENDA 1:0!* HIMIT1.11 01' (b) Ord. 79-00 Amending, tb#- f"mi.pi ":ojiim- )J—v the 1.ocai ioll ("I' as a Collditiolin! Tl:,(- in the (,(-j.�ral Com-tercial Zone" 10 Set fur Ilearilig If)-30 Tc) Ord. 79 61 "Amthurj::jn,'. the !.xjj,.-w1iturc Fund-1- to the COU!Al-uctioll D0cM:Vr,*- Ph:lses (-.r Arcl.jtec- tural Services for Ilro;wsed vul,lic Scjlool; • Projects at !.orth Kc-r;ii Jr. lIi,.h Sch,,ol, Nik-olm-vsk Schriol A(IJitioj:, School Addition, Hon:cr School, Follf Classroo.-1 Additions at ..orlb Kcnai I-Aci-a-ritiry School, lio;z(-r Ili --,h School Phase 11 (11jeater Auditcritir, rand Sc-rvice Facility), Homer MiddIc- SclsoA, Kunai. Central Ifi9l; School Auditorju;-., and Soldotna Jr. Iligh School Addition" 10 Set for 111c i; I j (d) Ord. 79-62 "Authorizing the :xlm-nditurc of Is��raa'p•Ii Funds to I'ro�cvrcd Thionh the Con!;truction Documents Pivases of Architec- tural Services for 1'roposed Central Peninsula General hospital Facijj.tic:sl, 11 Set for If"arilq: ID-30 1. FOR'-IAL PRFSE'.."J"ATIONS 1,01111 PRIOR %01JCj, (a) Marge Miller - La --id Sale present J. LO"-!.'IJTTI:L Rl"1"01"I'S (a) School Board (Arnc--s) (b) 01A11' (r-ischer/Mosf-s" (c) Finance Corr/Dougl as) (c) Solid Wasto (c) Roads & Trails Ports F, IN! rbors (Avne-,;.-;j1CanI-j! 211 Meno 8 0 - 3 01 ; 'e,o od u% i rd - C i yde 1ptcl-j;n presentation by Charles Digelo'.. 11 (g,) Local Affairs Arness) K. MAYOR' S Pl:l'rjT?T (a) Finance Report for August, 1979 12 Acl.no-Audged L. SCIK)GI. CONSITRUCTICN' (ijunc) M. OTI1I.11 11,USINI"S!; (a) Appoinir.wYa of H-ctiwi Judges '-or uctobur 2, and oclolsvr 213, 1�79 JACCIiols'; 12 (b) Ch:in-.-.v of for cctc-lwr it) October 9, at.d 12 Apl-rovvi (r) Tax A,:jtj-,i:iiwnt 12 Appr"% c.' N.S. 79-131 tile SI::1'• of to Stlp;-ml the -'�Ialv (if in :(r- ust;; 13 ,ld:;ficcl as MAYC."'S 0- I'MILIC CO."IMENN'S; Mr. Dale Siawiers, Ilmicr svplic L I iA� �i M . . 0 tt C t I In r •• ++r � r+.+n„ur•n MfSU"fI:S )I= Till : ELGI)I.Alt A':';1.;•11,Y SHITi.11f1:R 18, 197'l; 7:51) P.M. A, CALL TO 011i)11% AM) IMI.I, C,11,1, Pres. LIsnn c;111e<1 the vc�titig to order ;it;rpl,r,xira;(tcly 7.30 r,ip.ra. Pi:Zs:T: Assetmblymenbers Lon-*, Martin*, Moses, )1cCloud, Anharian, Arness, Campbell, Cooper, Corr, Crawford, bavis*, Di nick, Douglas, EIson, Fischer*; Ifille; Mayor Gilntn*, Adnin, Asst, Baxley, Atty, Sarisky Finance Director Barton, Assessor Thomas, 1'Is(nning Director Waring, Ecuuo:sic Development Director Mcllhargey, Public Works Director Ilakert, Land ?Management Agent Barnes, Borough Clerk Brymer ABSENT; None LATE* B. PLEDGE OF ALLEGIANCE C. SEATING OF NEW ASSE}MBL1'MEbMBERS (none) D. AGE%DA APPROVAL The agenda was approved as submitted. E. MINUTES OF SEPTEMBER 4, 1979 The minutes were declared approved as written. F. ORDINANCE HEARINGS, OR OTIFER PUBLIC HEARINGS (a) Ord, 79-50 "}establishing a Borough -Wide Economic Development Council" The ordinance was read by title only as copies were available for the public. Public hearing was opened. Mr. Alcllhargey reported the ordinance is a formal identification of a boroughwide economic development program with an eleven member council. This is a reorganization of what was.previously referred to as the OEDP Committee. It will concentrate more effort on expanding business and attracting new industry. Organ- izationally it will retain boroughwide representation and develop- ment interests. Air. Scott Hammon believed if the council was established it would be a further step toward regional government, As no one else wished to speak, public hearing was closed. A SSEMBLY:dEMP,ER AlcCLOUD AMUVED TO ENACT ORD" 79-SO AND ItiIT11OUT DISCUSSION THE ORDINANCE WAS UNANIMOUSLY ENACTED. lb) Ord. 79-52 "Iestablishing the Positicr, of rssi`istantrto the Mayor for Civil Defense for the 'iscal Year 1979-80 and Appropriating Funds" The ordinance was read by title only as copies were available for the public. As no one wished to speak, public hearing was closed. ASS131BLYMEMBER DI?-DHICK %IOVED FOR ENACT14YNT OF ORD. 79-52 AND WITHOUT DISCUSSION 'THE ORDINANCE WAS U1ANI,MOUSLY ADOPTED. I Y.1..:' T PI:::I:..,I1!,! I: '`:'t!IG!1 it:'-'`'!':i:l.'i i:!.!7J!.:.!' 'I}.f:7 1:::: r•, ,•�,• t� tntin Vf,'' (c) Or I, 79_:3 "f'r�,v}%lir•,: for tiv-- Ui:.L•,::.:3 Of Cert;girl Ptrcel of Lot',Cy anti BY .a „•,tiatc• t `:.tic 'fhe ordir:a, ci. real h,• t it le u::ly as C(,pi'vs were avaF I::!.1t- for the. In{},lic. "'ubl is Leal i12,; ol,c:nrd, i i bir. Ucn:2d l:. Jnilnson ststca he c,:.:':. L^t 1, IA; I of Go•,l. I^.1^t Vic-:; flub, TI•r• lot lJnrJcrs p::rc: lr: W ;:11d I1:% :thich ::rr J,,;i%g cosaidcrcd for sale. Ile rc!!t{c.:tc3 thr borwl�J, al l �,..• kit. to Purchase tl:^sc lo`s for the value a:- hc• has t},^ only accessibIc rc:Jtr_ to the ttsc; lot:: it: r,:u.s? l.r.. 'ILe rc•k_(•1d tl:er'.s rcc6pt of ti,c letter and 1.:3p atta:hr:.tts fret.. ':r. John.:o:.. Mr. Pat Griner, Nord, ."•.oacl, prI_-.icntcd a letter concer;iir,:; a ]:ilia sale parcel, .o. 9i. It thi. lo):d has t,s c r. wi thur;..:;; frr,:.i the sale at this time 1,Jth the' rlc!;;a; :;tar:'}oJ, it Le heal, Th1rrc: is no lc,t•,al arcs:: to the Lrol„_rt:, i's. l:oi'is, fuvag I{rts L.!n livilt`• in a t.abin vii Ibn: v.hicl, '!,(: t{i'•Lj,!,t U:..'Jr�,t•,! Lei .II:.: Sprvcl:er. r�ae h'IS ;,title C61; 5idera!Ae to tl:n cabin and Y•15 fihUCfr•r'. to I(•arl, this pT,. I'iY t.': r int.liY:L•t in the bo r,u6h land sale. She is tsillin,; to pay a fs it pl•ict fcT tLc property and request.: the her tlr: ci•i .�t tuai ti to ;.:u ch sc the parcel it rs ne:;otiatecl sale. ILL rcc.rJ receipt of tLe Ictter frcr; ,at Gri{,iei;. Mr. Tru.,an }:::udsvn stated h. ..a: 1;c.i •:, r:i.iJ1 fc:l and pa.'tic.a,] Ir parcel, but Lc: ieved thr- burnt2';t: 'A1 ;,:1,I V c t I rd Of the 1 r: i, nut. l.as ill i t control. Vhad hup-3 flit: or.' i r:allc- vould be a: -I:.1r3 i!tlri c•n;acted to I:rov i c for frc•c�leild r,s that is how ouncrship of lard I:a. bt,cu ttrr.::fcrrc:! sil,':,• crc•Z�ti ..... . If the boroul;h trill rt;i ,j vc av-­y Oi, 1:.,•' 1,!-• believed they : he uld sell it at a lots price. Mr. Jim Vrindlc•• belit.:c:1 the laJ.c .•I: .11.: bed osc,l of J-, outcry auction rathvr 1}1[::1 luitc•i-7 of uCl,ctiat! d >i:i�::<. !f ti,c ]and is ,ol,l ;it pt;blic :w-tio:;, the i::di:;teal t.!.a ..:list: .11e lunu the I:.o: t V.•111 pay the :,!•.•t for it , L:- .:,id. 71i5 is the a..;::t equitable vay of dis,,usin,; of l:,nd. Mr. Scott llarstou e.tate•d 1tOt.W—_;tCL1JJnp if, '&lie Onl>' W3,- to l;o, follot:inE illc tradition;:] u::y of 1•Init acll!IF:citiw.. AL' nOt.uISL CI:C Isis]?^_!t 10 bc. 1'C rd }:"vlli hCrtl'JI',; .:a:. clo:'td. ASS" •I:J1.Y:•tfa•1/!'i: 111'•i.•iIC.F: t-o iiil OF OWI . is •S', ,`.:;o 7"!1 .. ,•it'l"}iiJ 1 .:.I;Si 'li . t t.l' FC•'... i;•:: section ?, line ? Lt. m"vn(cJ L)' ut••:titutis the 1:01•t' , 4#4l;,tc7d ptc'I51,rI' 12, 19:9" fJ the t;1rd!. 'tit::"1 1979" Sc•Ct ioa •1, 5ut'set't iwi %, J 1Jt,• 2 1:, rl:. :1:}l.i b,+ af1Ct' t!:!' wort, "(,1•'• t}N_ t.ord.: '•l(•rdl ri;•h: tn,. scclJt,: i, -1, ..ft •1 Ilia, t <t 1.•'{.!, .!!: 1I. font;..., u,+l 1•., "�Ih(' }'vt ;1' .•!� 11 J:.:1:: •:r rc)•rt•::c•;st.:t i^:1 to vw of nml i::.,rl-ct t•a}ut• of :lac ;tar•_. l ,t the t i;-,.- t'f :lt. .II paI-Ccl: A6:1It I5o v.,I:;t,. U." t}: } ... i. of tl c st iI.;..I ' acre•;:1:t• of t1-. p:11 t (1 :u• ::ht•1•.0 !•y tl;r ;i� a•. r.l''> rt•Ct',.i•. :,inl .:1:11'i+! i•.:i 1:y ppru; J i:t(• •'1:• 8,•i't•' �. 111.1: it'll•. It• tl:l :l .:t t•1" if a I i "tt .i': l:tl..! 1:fI:t't'+ef df•t+'rllllla':. •i,it1+111 1:1:'!••11^111},} that if r +arcrl Cotttailis lc:••:= tl..tr !tit 1.1 t lit- :('. (Tat'(• 111(liCatt b)' tht' t•Jtti;i,!! .. ...': {'t'. 'i•!' , t!! 11:' it111 ch•isv. pt ice ::]lull le rv.hl:r.1 pre;:,r? ic+n,i1vl-. r,� M ItEGULAR 211JA ING tT1:JJTJ:5 of PIA '•111FIZ I S . 1471 arr. z Section .1, add neu Suh:;cction 9 to rend: **9 . all parcels arc so Id "as -is" and the purchaser shall he re!;punsibl c! for Vi -Z i ting the 1-ai cel and fCr ascertaining the condition nf the site." Section -1, add a nr--,,, Subsection 10 to read: "kibcnet-cr the principal airourt of the purchase price is reduced by an incre..;ent. of 20'., the purchaser may request the 11crough to release its right, title and interest to 10, of the total acreage of the parcel selected by the purchaser for purposes of subdivision of the property. The borough shall release all right, title and interest to any such portion on condition that the purchaser will c0'1PIY with all su'.3division regulations and ::ill not transfer any ownership ril:hts, title, or interest by deed, or other instrument, or contract of szle, until the final subdivision plat is approved by the Planning Conn.ission." Section 4, add a new Subsection 11 to read: "The Planning Co.,imission shall not permit the subdivision of any sale land upon which there exists an unpaid principal balance, except acreage released pursuant to Section 4 (10), until suitable arrangements have been made to assure payment in full of the balance due to the borough." Add a Now Section 7 to read: "Section 7. The conditions recommended by the Planning CmmiFfor the disposal of certain parcels of 'sale lands', as set forth in the document 'Planning Commission Recommendations', dated august 27, 1979 are incorporated into this ordinance. These conditions, together with such other conditions of sale as the Nfayor may deem necessary to protect the interests of the borough, shall be incorporated into the contract for sale and inzluded in the dead for the affected parcel if necessary." ASSEMBLYMEMBER. CORR MOVED TO DELETE SUBSECTION 10 FROM THE X-1ENDMENT Mr. Fischer stated he also had reservations about Section 10 as it would allow a purchaser to buy a piece pf Innd, pay off 20% and then subdivide 101 of the total acreage. If that lot of the land has $01 of the 0 value, then the purchaser could do - fault and the borough would have to take back the less desirable 90%. Mr. Arness objected to Subsection 10 stating it puts the borough in the real estate business. If the borough proceeds in this manner more people will have to be hired for the Planning Dept. Mr. Corr agreed stating consideration should be given to getting homes and other improvements on property rather than just allowing subdivision speculation. Mr. Cooper commented the borough is already in the real estate business as it has acreage to select and dispose of under state law. Mrs. Douglas commented the borough may be in the real estate business, but it does not have to be the banker. QUESTION WAS CALLED ON THE A51EININMENT TO THE W11ICli PASSED BY A VOTE Or. 126.5 "YES" TO 17.5 "NO"; Campbell and Cooper voting negatively. 3 e 11 KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MLETING MINUTES SEPTE BER_ 18, 1979 PAf,F. 4 ASSEMBLYMEMBER Dl.%rIICK MOVED TO AMEND THE AMENDMENT BY DELETING FROM SECTION 4, NEW SUBSECTIONv 11, "except acreage released pursuant to Section 4 (10)" AND RENUMBER THIS SUBSECTION "10". MOTION PASSED BY A VOTE OF 118.5 "YES" TO 25.5 "NO"; Long, Martin and McCloud voting "tio". QUESTION WAS CALLED ON DI!-fffICK'S AMENDMENT AS AMENDED AND THE MOTION PASSED BY A VOTE OF 135 "YES" TO 9 "NO"; Martin voting negatively. ASSEMBLYMEMBER HILLS MOVED, BY REQUEST OF THE FINANCE COMMITTEE, TO AMEND THE ORDINANCE BY DELETING FROM THE TITLE "Al"D BY NEGO- TIATED SALE", DELETING SECTION 3 AND SECTION S I,; THEIR ENTIRETY, RENUMBERING THE REMAI`I`:G SECTIONS AND IN THE LIST OF LAINDS DELETE ALL PARCELS DESIGNATED FOR NEGOTIATED SALE. Mr. Hille reported the committee felt the negotiated sale portion of the ordinance is too broad and the committee would like to see the administration prepare an ordinance that specifically addresses negotiated sales as a separate issue, approved by the Planning Commission. QUESTION WAS CALLED AND THE AMENDMENT PASSED BY A VOTE OF 117 "YES" TO 27 "NO"; Martin, Arness and Corr voting negatively. Mr. Hille referred to the provided amendment to Res. 79-135 which includes the right of the spouse to file an application also. ASSEMBLYMEMBER HILLS MOVED TO AMEND THE ORDINANCE IN SECTION 6, PARAGRAPH (3) TO STATE "A person may file an application for purchase only on his or her own behalf" AND DELETE "or that of his spouse." THE AMENDb1ENT PASSED BY A VOTE OF 117 "YES" TO 27 "NO"; Martin, Davis and Douglas voting negatively. ASSEMBLYMEMBER FISCHER MOVED TO AMEND SECTION 6, PARAGRAPH (3) TO ADD THE FOLLOWING SENTENCE: "An applicant must have been a resident of the borough for one year prior to the sale". Mr. Fischer clarified his motion by stating he referred to residency immediately preceding the sale. QUESTION WAS CALLED AND THE AMENDMENT WAS APPR()VED BY A VOTE OF 102.5 "YES" TO 41.5 "NO"; .Moses, Campbell, Cooper, Crawford and Dimmick voting negatively. 4SSEMBLYMEMBLIt FISCHER MOVED TO AMEND PAGE 3, SECTION 4, ITEM 7 TO READ: "There shall be a Si reduction in sale price for each year of borough residency up to a maximum of SO£." Mr. Martin questioned the legality of the residency provisions and borough residency vs. state residency. The question was directed to Atty. Sarisky who replied that on several occasions he has cautioned the assembly about residency requirements in view of the U.S. and Alaska State Supreme Court's decisions construing the equal protection clause of the federal and state constitutions. Mr. Sarisky read a portion of the concurring opinion of Justice Rabinowitz in the Bierne Initiative case. In this case Justice Rabinowitz is saying that the Alaska constitution is more protec- tive of the equal protection right than the federal constitution and he has further stated that Alaska Supreme Court is going to require a compelling state or public interest that relates to the purpose of the legislation before people can be excluded simply because they are not residents. Mayor Gilman hoped Mr. Fischer would be prepared to write the 4 - i r^;;ui,tit�:,� r-.r.,;.l:-.lti,:, t},r_. ..t•,n,I.,:,l, fht }.ur�,t��,h •r,711 u>r, to detcr:;i; r�"siJ,s,• :, i'., tc .:,.L f, -:care; tr, ,latcrr in if .r i'"'r:-ten 1s r•I1; :h1,r to file :'a :;l,i,1, :,sivn ,rag IaC' rtlr:,i,, f of Y—r5, crc•lit he •r.iiI g t. ''r, C,r.l;:ell hell ee,i it will be difficult to cover all the ljrcl;l�:: areas in t?;is ;.:rti.uiar ;.,1, ra! th, a:;.-,• -s,1y :};nuId b-r••k off fro" the last tvn :,d:.�r.t- r�r}",tir.; to rr;ic.'cncY until "after thi sale an:! trrc $alesort the For friturA . THE ls?ti:.i�.tls:.T BU7 s1WEll TO CLARIFY ill:. 'rI Cili,it Ir1 hEAD, "Ti,ere ,"hall be a aji reduction al]61-rc•l in the sale price for each full year of hornuyh resid<ncy up to a raxinun credit of 501,," Yr. 2!artin fiVe tioned ::};ether the norou•"}, actually o.;nt the land being s.:d, •-laror Gilman reported at t}iis ti:-,e the borough owns 235 acres of the 873 br'in; considered. In discussion with the Director of the Division of Lands at 3 p.m. today, he has stated the brrrugh would have title to the 30,0'10 acres which it has signed the necessary docssrents for by October 20, hosnver, we have vicen told that before. The Mayor recocnended proceeding with the sale as all docli;a,sntation is in place to assert the borough has unqualified right to the lands, QUESTIO,4 WAS CALLED ON THE c' F:::IIr;1L::f i;1{ICII PASSED BY A 'COTE OF 113.5 "YES" TO 30,5 "No"; Ylartin, CanpLcll, Cooper and Crawford votin.- negatively, ASSLABLYNEMBEP. AIt::ESS MOVED TO "U'lL;:D SECTIO:: 6, (1 ) TO DELETE: "Each participant will be entitled to naive one application Specifying the particular land sale unit for which the applicant desires to be considered," In support of the notion, ;Jr, Arness stated anyone who wishes to get some land trill be limited if they can only file on one piece Of ground, The person should have the option to put his claia on any number of tracts to increase his chances. IV 11SSI.1 ILY:tlir1P,ER CORR MOVED TO XIEND THE AMENT)MENT THAT A PEli50:3 CAN O::LY APPLY FOP. FOUP TRACTS AT A TINE' AT EACH .`;ALE. To clarify the amendment 'Ir. Cooper noted rather than d--letilly, the sentence, Mr. Corr is suggesting the sentence be left in, but changing, it to "each participant 't-ould be entitled to make four applications for specifying the particular land sale unit for which the applicant desires to be considered." QUESTIO WAS CALLED A::D Tim AXi;,':D.'•JENT TO 7111; A311•s:.De1JE%T FAILED BY A VOTE OF 18 "YEs'; TO 126 "::0"; Corr and Tischer voting "Yes". THE PASGED BY ,1 VOTE OF 117.5 "YES" TO 26.5 "n0"; Calapbell, Cooper and Corr voting negatively, ASSEMBLY,*40-18ER CORR '10:1ED TO VlJ-'ND THE ORDINANCE THAT Till: SUROUGH LAND MANAGliNBdT OFFICER SET ASIDE 30, QF 'fill: PARCELS FROM 71115 SALE TO BE OFFERED Al THE SAME TIME AT A LUTTERY FOR PESIDE'iTS OF 30 YEARS OF AGE AND UNDER. • Mayor Gilman requested the wording be changed to authorize the Mayor to set aside the land rather than the Land Management officer, Mr. Corr concurred. Mr. Martin reported he would vote against the amendment as it discriminates against other classes of people. - 5 - i ` KENAI PENINSULA BOROUGH ASSEMBLY RF.GULAP. M ETING MIYr1TES o P,%r1. O THE AMENDMENT FAILED BY A VOTE OF 9 "YES" TO 13S "`:O"; Corr �-- voting affirmatively. ASSEMBLYMESIBER CR WFORD MOVED TO AMEND SECTION 6, (1), LAST SENTENCE TO CHANCE THE "the" TO "each". MOTION PASSED BY A VOTE OF 126 "YES" TO 18 "NO"; Corr and Davis voting negatively. ASSEMBLYMEMBER DIMMICK MOVED TO AME;:D THE PORTIONS OF THE ORDINANCE THAT REFER TO A LOTTERY, TO A SEALED BID STILE. Mrs. Dimmick reported she is not the only assemblymember who is uncomfortable with the lottery concept. The original Planning Commission recommendation was for a sealed bid sale and this is the best compromise between the people who wish to see an outcry auction in order to get the best dollar for the taxpayers of the borough who will not be getting the direct benefit of land, and the people who support a lottery and who would like to see the land available to borough residents. This would not change the 501 credit or the residents' requirements. She did not like the idea of gambling for land as land is too important. Mr. Davis asked if the borough would need a permit to conduct a lottery. Atty. Sarisky replied this is not looked upon as a gambling device, but a way of selecting who is qualified to purchase the land. At this time he could not reply as to the need for a state permit. Mr. Davis stated the courts across the nation have held that a lottery consists of three things; a prize, consideration, and chance. The prize is the award of the land, the consideration is the $10.00 in cash, and the chance is the drawing. Mr. Davis preferred the sealed bid method. \� E Atty. Sarisky stated the prize here is not in the sense of the usual lottery where you walk away with a prize that is far in excess of its value. Here you are selecting the purchaser who will then not obtain a prize, but be entitled to purchase pro- perty at the fair market value as determined by the appraiser. Mr. Moses commented that earlier members seemed to rely on the state's ability to conduct a lottery and that was all right at that time as long as we were talking about residency. Apparently the state did not have a lottery license. A few years back the federal government used the lottery system to get people into the army and that certainly wasn't a prize. fie believed the sale should be looked at for what it is rather than fabricating something else out of it. {` Mrs. Dimmick stated that either under the lottery or sealed bid system, once the person has title to the land, they can sell it, subdivide, etc. Referring to a comment on the "carnival atmos- _ pphere" of the assembly discussion, she believed this seems to be the only way to hammer things out without working behind closed doors or using a rubber stamp. Following further discussion of merits of various methods of sale, Mayor Gilman stated if the sealed bid method is used he wished to see some standards set which addresses the S, credit " for residency and what is going to be required to prove residency. Mr. Cooper stated this will be addressed in the resolution. QUESTION WAS CALLED AND Till: AMEI:DMENT FAILED BY A VOI li OF 56.66 � "YES" 'r0 87.34 " W"; Arness, Cooper, Davis, Dimmicb, Douglas, and Elson voting ill the affirmative. r KL.,,'AI Ill .:I:::;IILA WI'oIj(;I1 A';:;!.!-MLY 1±1011-. r; 1-11A.rr::f, :•1t::U"fl:S ;1:!,11 }SIs1:R l� 1979 —.—------____ _— I'.ii;I: 7 - I— T --nnow"4q FM C (NILS ION WA.-; CALLED X.11 1III: Ui:DIa.1aa: Ai ,u1L:: )ED V;A:i ENACTED BY A VOTE uP 9<9 "IfS" TO •15 "•:O"; 'l.irtrn, Arness, Davis, Dii.uaick and Douglas voting nes;ativrly. (d) Ord_. 79-54 "Providin;; for the ;rezoning of a I`i�r tion �ifKillen Esiates, Addition No. 1 Subdivision, City of Kenai, from Rural Residential to General Commercial" The ordinance was read by title only as copies were available for the public. Public hearing was opened and as no one wished to speak, :.as closed. ASSEMPLY:41JIBER AIMBARIAN MWED TO ENACT ORD. 79-54 AND NUTHOUT DISCUSSION, THE ORDINANCE WAS UN-ANIXOUSLY ENACTED. (e) Ord. 79-SS "Rezoning a Portion of the Beaver creek Alaska Subdivision, City of Kenai, from Rural Residential to General Commercial" The ordinance was read by title only as copies were available for the public. Public hearing was opened and as no one wished to speak, was closed. ASSEMBLYMEMBER AMBARIAN MOVED FOR ENACTNENT A.N'D WITHOUT DISCUSSION THE ORDINANCE WAS UNANIMOUSLY ENACTED. G. CONSIDERATION OF RESOLUTIONS (a) Res. 79-133 "Amending the Contract for Seldovia Sc'choolSiie Improvements to Include Additional Fencing" ASSE.%IBLYAIE%IBER CIL•11CFORD MOVED TO ADOPT RES. 79-133 AND WITHOUT DISCUSSION THE RESOLUTION WAS UNASIMOr1SLY ADOPTED. (b) Res. 79-134 "Authorizing the Salc of Surplus Borough Personal Property" ASSEMBLYMEMBER DI%r-.IICK MOVED FOR ADOPTION OF RES. 79-13.1,' AtiD WITH APPROVAL OF THE FINANCE COMMITTEE Till. RESOLUTION WAS ADOPTED BY A UNANUIOUS BALLOT. ' (c) Res. 79-135 "Promulgating Regulations Governing the Lottery Sale of Borough Selected Lands" ASSEMBLYMEMBER DAVIS MOVED FOR ADOPTION OF RES. 79-135 AND TO REFER TO LOCAL AFFAIRS CO:GIITTEE AND REC1X4:4EXD ACTION BY OCTO- BER 9, 1979. Mr. Arness stated the resolution must be amended based on the changes made to Ord. 7953 and suggested it be returned to the administration to have changes made, bring back the resolution October 9. Mayor Gilman suggested proceeding with the adoption of the regula- tions after which the administration can establish reasonable residency requirements so that after a person has been selected, a criteria can be developed to show length of residency for both the one year and the St discount. Otherwise, every individual applying; would have to provide residency verification at time of filing. One issue which he felt must be settled is what is meant by a resident of the borough; is it one year of continuous, collective, or consecutive residency? The Mayor further stated in the ordinance there is a certain amount of time allowed for notification to the public and it states the application pro- 7 r KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING MINUTES SEPTEMBER 18, 1979 PAGE 8 cedure will cease 10 days prior to the sale which is October 10. If the resolution is held up the borough will be operating with- out Bound rules until October 9. Mrs. Dimmick believed the sale should be postponed in order to allow time for the assembly to act on Resolution 79-135 after it returns from committee. ASSEMBLYMEMB,ER CAMPBELL MOVED TO AMEND THE RESOLUTION BY ADDING A SECTION 10 TO READ: "Adequate documentation of continuous borough residency will be required of all successful purchasers." Mr. Corr objected stating that the borough should require last year's income tax or drivers license when the person makes the application. It is conceivable a person from another state could file and if he wins, and is turned down because he is not a resident, the borough be taken to court over the residency re- quirement. FOLLOItiI`G FURTHER DISCUSSION AND A BRIEF RECESS, ASSEMBLYME.MBER DAVIS WITHDREW HIS MOTION TO REFER AND ASSEMBLYMEMLER CAMPBELL ItITHDREW HIS MOTION UNTIL THE ATTORNEY'S RECONSIENDATIONS 1111ICH FOLLOW COULD BE CONSIDERED: (1) Each individual 18 years of age or older may participate in any given land lottery. (A land lottery is defined as a lottery consisting of any number of parcels held on any given date.) (delete "submit one application to") (2) This refers to disqualification for filing more than one application on the land and the entire Section 2 is to be deleted in order to be compatible with Ord. 79-53. (3) This section remains the same. (4) Individuals must make their applications in person. Delete "and identify themselves to the Borough representative taking the applications. (Persons not having proper personal identification will not be permitted to fill out an application: Identi- fication may be made by (a) driver's license, (b) birth certificate, (c) personal papers or (d) other.)" (5) The application form shall contain the individual's full name, mailing address and age and shall desig- nate the land unit number selected for the lottery. Delete social security number, and certification as to the fact that this is the only application being submitted for a particular lottery," (6) A ten dollar registration fee must be paid in cash, money order, traveler's cheek, or cashier's check for each land unit selection. (7) This section would remain the same. (8) This section would remain the same except to delete "of non -duplication" from the first line. (9) Delete "cash, cashier's check, or money order", third line. - 8 - .- _ - _ - --N _ ,--- KENAI PIAIN'SUL,1 LOROUG11 .1'iSNMI . ::I.GllLAR '•HATING .`11MITES S-I 11 H %fIIf: 1. 1 Q 1 Q7q — -- — ? (10) Add a new section to read: .1 credit of So for each 1-car's borough residency, up to a maximum of 50;, shall he credited to the purchase price. (1 1) Add a new section to read: The burden of proof and verification of residency is on the purchaser who must establish such residency by tax records, voter registration, church registers, employment records or other Valid documentation to the satisfaction of the borough Finance Director. (12) Add a new section to read: Wherever residency is a requirement it refers to continuous and permanent residency for the period of time immediately preceding the purchase of the land. CLERK'S NOTE: By deletion of item 2, the resolution items were renumbered when the resolution was finalized. ASSEMBLYMEMBER ARNF.SS MOVED TO APPRJVE THE SUGGESTED A14E-NDMENTS XADE BY ATTORNEY SARISKY AND ALSO XIEND SECTION 3 TO INCLUDL' "(e) Kenai City Hall". i In support of the addition of Kenai City ball, Mr. Arness reported the people in North Kenai have to drive 30 miles to get to the borough building. Mayor Gilman had no objection to the addition of the City of Kenai. He reported the other cities had been asked to partici- pate and had accepted; if asked, the City of Kenai would probably accept also. ASS EMB LYMEMBE R DOUGLAS MOVED TO AMEND THE -MOTION TO DELETE SECTION 4 WHICH REFERS TO FILING AN APPLICATION IN PERSON. Mrs. Douglas believed there would be people in hospitals and handicapped persons who would not be able to file in person. Mr. Barton stated there will be a problem because the forms will be prenu,nbered for control and if individuals do not come in and register in person, the borough will lose control of the forms. fie believed the problem of the handicapped and those in hospitals could be handled in-house. MRS. DOUGLAS WITHDREW HER MOTION. Atty. Sarisky suggested using ;%fr. Campbell's amendment as item No. 11 and there was no objection. ASSEMBLYMEMBF.R CORR MOVED TO AMEND TIIE RESOLUTION PUTTING SECTION 2 BACK IN AND A.NIEND1NG IT TO READ "Any individual filing more than one application to participate in any given lot will be distlual ified." .fr. Tischer stated if there is a suitable piece of ground a person wants he could file any number of applications to increase his chances. fie believed the amendment would help eliminate the speculator. QUESTION WAS CALLED ON ;111. CORR'S VEND.MENT WHICH FAILIiD BY A VOTE OF S9.81 "YES" TO 84.16 "NO"; Martin, McCloud, Ambarian, Corr, Crawford, Fischer and llille voting affirmatively. - 9 - n 11 r _ M KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING MINUTES SEPTEMBER 181979 PALL 10 QUESTION WAS CALLED ON THE AJdESDML.NTS PROPOSED BY ATTY. SARIS1:Y INCORPORATING CAbil'BELL'S MOTION AND ADDING THE CITY OF KENAI TO ITEM 3 AND THE MOTION PASSED UNANIMOUSLY. THE RESOLUTION WAS UNANIMOUSLY ADOPTED AS AMENDED. (d) Res. 79-136 "Awarding a Contract for Survey Services fo'r the Design of Bear Creek Drive to Alpine Consulting Engineers" ASSEMBLYMENBER LONG MOVED FOR ADOPTIO` OF RES. 79-136 AND WITHOUT DISCUSSION THE RESOLUTION WAS ADOPTED BY A VOTE OF 135 "YES" TO 9 "NO"; Douglas voting negatively. H. INTRODUCTION OF ORDINANCES (a) Ord. 79-59 "Amending Section 2.40.090 of the oro� ugh Code Relating to Per Diem and Travel Expenses of Planning Commission Members" ASSF,MBLYMEMBER McCLOUD MOVED TO SET ORDINANCE FOR HEARING OCTOBER 30, 1979. Mrs. Dimmick reported the ordinance states the Planning Commis- sion will receive per diem and travel expenses incurred on auth- orized official business and asked who would authorize the expenses. Mayor Gilman stated it was his assumption the authorizing authority would be the Planning Commission Chairman. In reply to further questions, Atty. Sarisky reported the section being amended refers to other sections of the Code which authorize Planning Commission members to obtain per diem and travel on the same basis as borough employees and assembly - members, the ordinance does not attempt to change anything but donverts numbers in the code into a statement of per diem provision. Mrs. Dimmick believed the ordinance should be amended to clarify who will authorize travel and an amendment will be presented at time of public hearing. QUESTION WAS CALLED AND ORD. 79-59 SET FOR HEARING BY A VOTE OF 13S "YES" TO 9 "NO"; Martin votin negatively. (b) Ord. 79-60 "Amending the Kenai Zoning Code to Permit the Location of Churches as a Conditional Use in the General Comwercial Zone" ASSEMBLY,MEMBER McCLOUD MOVED TO SET ORD. 79-60 FOR HEARING ON OCTOBER 30 AND THE VOTE WAS UNANIMOUS FOR AFPROVAL. (c) Ord. 79-61 "Authorizing the Expenditure of Borough Funds to Proceed Through the Construction Documents Phases of Architecutral Services for Proposed Public Schools Projects at North Kenai Jr. high School, Nikolaevsk School Addition, Ninilchik School Addition, New Homer Elementary School, Four Classroom Addition at North Kenai Elementary School, homer high School Phase II (Theater Auditorium, Food Service Facility), flower diddle School, Kenai Central high School .Auditorium, and Soldotna Jr. high School Addition" ASSEMBLYMEMBER A.IBARIAN MOPED TO SET ORD. 79-61 FOR HEARING OCTOBER 30 AND THE VOTE WAS UNA;:IAIOUS. =t- • FI:SII I'i..':1 :',III.A Is01;�IIGII .155L:dI;1.Y 1:I:cUI.AR : 1,.LrISG M1`:UTES 1'I:'•Sltl.it I -A 19,19 A5�L'i1t1.1':•11.?t:a:fi Hll.l.l: `LOVED TO A:IENO SCCTIU` I TO READ: "That S'J61,Ot10 is hereby transferred from the surplus bond fund balance in the Soldotu:l iligh :school Capital Project for the purpose of funding construction docu:,x nts for the schools listed in Section _'. AND THAT" SLCTION 3, LAST PARAGR.II'll BE A11L.NDLD TO: "rlle ;11,1011nt of the cap endituros authorized by this ordinance shall be returned to the surplus bond fund in the Soldotna Iligh School Capital Project fron the proceeds of the sale of bonds after the school hoed issue is funded, and these authorized expenditures shall pruperly he accounted for in the respective school projects." Mr. lfille reported these amendments were discussed at the Finance Committee which recommended their inclusion in the ordinance. Because of the time frame involved in proceeding with the projects if the school bond ordinance passes, the Mayor suggested setting the date for hearin-- October 9. ASS EMBL]'M EMBER A%IBARIAN AGREED TO CHANGE HIS MOTION TO OCTOBER 9 AND THE AMENDMENT AND MOTION WERE APPROVED UNANIMOUSLY. (d) Ord. 79-621 "Authorizing the Expenditure of Borough Funds to Proceed Through the Construction Docusients Phases of Architectural Services for Proposed Central Peninsula General Hospital Facilities" ASS 01.13LY:di:MBER LONG MOVED TO SET ORDI`:ANCE FOR IIEARIXG OCTOBER 30, 1979 AND THE MOTION WAS UNANIMOUSLY APPROVED. I I. FOIOL:1L PRESENTATIONS {rITH PRIOR NOTICE. (a) Mrs. barge Miller left the meeting prior to this agenda item. J. COMMITTEE REPORTS (a) School Board (Arness) - Mr. Corr reported the board discussed a ne:, elementary school r year book and this was defeated. Pay scales were discussed. The construction report is in the packet ithich gives the infor- mation on the Soldotna High School. There appears to be a problem with the sewer line which is being resolved. (b) OEDP (Fischer/Moses) Mr. Fischer reported Mr, blcllhargey is assisting Tyonek in ems. getting a management type grant. (c) Finance (reported previously) (d) Solid {taste (no report (e) Roads and Trails (no report) (f) Ports and Harbors (Arness/Campbell/Ambarian) Mr. Arness asked Mr. Waring to introduce Mr, Charles Bigelow of Woodward -Clyde. Mr. Bigelow reported the August 1979 Port and Harbor Demand and Feasibility Study is the second of a series of reports being prepared and it will be followed by the Objec- tive of the Overall Project, which is the action plan for the borou-h's use in undertaking any plan toward port development. With this summary and related reports the borough should assess its overall development goals, review its potentials for population/economic growth, and select a strategy to be the focus of the action and master plans for implementing the overall goals and related port improvements. C I r 0 KFIJAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING MINUTES SLI'TE:IBCR 18 1979 FAA-4-1 Following Mr. Bigelow 's presentation, it was noted in the memo from Mr. Baring that Woodward -Clyde needs to knot: what port and harbor and related development option the borough and cities wish to pursue. Once they know which option is desired they will prepare a detailed step-by-step program. This information is needed by October S. Mayor Gilman explained that the timing is critical as this project was funded from the Coastal Energy Impact Program, administered by the State of Alaska. The funds are in a certain fiscal year to be expended. They have allowed the borough an extension to December 31 to complete the project. Mr. Bigelow feels that he has sufficient time, but the borough must give him direction. Mr. Arness reported worksessions will be held in the various cities during the last week of September and the committee will report back to the assembly on October 9 with its recommendations. Mr. Bigelow stated the later time frame will require some accommodation on the part of the staff, and he believed it could be worked out, however, the master plan eight appear a little later than scheduled in order to give time to work on the action plan. (g) Local Affairs (no report) K. MAYOR'S REPORT (a) Finance Report, August 1979 ASSEMBLYMEMBER HILLE MOVED TO ACKNOWLEDGE RECEIPT OF THE FINANCE REPORT FOR AUGUST 1979 AND ASKED UNANIMOUS CONSENT. THERE I;AS NO OBJECTION AND SO ORDERED. L. SCHOOL CONSTRUCTION (none) M. OTHER BUSINESS (a) Appointment of Election Judges for October 2 and October 23, 1979 borough elections ' ASSEMBLYMEMBER LDOPER MOVED FOR APPROVAL OF TIII: APPOINTMENT OF ELECTION JUDGES AS SUBMITTED AND REQUESTED UNANI2.I0US CONSENT. THERE WAS NO OBJECTION AND SO ORDERED. (b) Change of Meeting Dates for October to October 9 and October 30. ASSEMBLYMEMBER CA114PBELL MOPED TO C11A,CGE THE MEETING DATES FOR OCTOBER BECAUSE 01: Till' ELECTIONS. UNANI'10US CONSENT WAS ASKED AND GRANTED. (c) Tax Adjustment Requests ASSEMBLYMEMBER COOPER MOV0 TO APPROVE Till: TAN ADJUS111LNT REQUESTS AS PRESENTED BY THE ASSESSING DEPARTMENT AS FOLLOWS: 1979 Additions $ 72.827 1979 Deletions 126,053 1978 Additions 3,225 1978 Deletions 16,835 THE MOTION MET UNANIMOUS APPROVAL. - 12 - o 1',0iW'U(;11 AS'A".1!iLy NHAANG SLY R -1 ."J 19-19 1;;%(', F 13 (a) Res. 79-131 the S'tatc of Al:i:;I.a to 9—urj,�—)r—tT1Fc State of xcvada in Asserting State of of I'vder.il Lands" .,;ith FISCHEi, it) porr RE.-S. 79-131 AND '-10VhV '10 AMLND Tli-.,' RYSCILIHION '1111'0UG11OUT CII.XNGING THE TO '10*V;.%ERSIIIP". TsiE A.%J THE MAIN .40TION 'b'61RL U.'-;AN1- MOUSLY APPROVED. N. ASSEABLY AND MAYOR'S COMAENTS (a) ASSEMBLYMENIBER CORR MOVED FOR 1311:11:DIATE RLC0,'-.SIft-'RATI().% OF RES. 79-135 AND THE NOTION FAILED BY A VOTE OF 45.17 "I'l ' S" TO 9.1.83 "No"; faioring reconsideration were Long, McCloud, Ambarian, Corr and Fischer. (b) Pres. Eisen requested an excused absence for Tommy Corr for September 4, 1979 mecting. 0. PUBLIC COMMENTS (a) Mr. Dale Sumners, !loner Reported the septic vaste dumping is becoming a problem in the Honer area as the city has disallowed dunping and there appears to be no options available. fie urged the assenbly to support efforts to get state participation in providing some place to dump septic waste. There is an added problen as the soils in the Homer area are not suitable to accept the waste. Mr. Davis requested a resolution of the assciably for the next meeting urging state assistance for the septic waste problem. P. INFORtIATIO%AL *IATr-.RIALS A REPORTS Pres. Elson noted receipt of min:ttcs from the school boerd, planning and zoning commission and Xikiski Fire Service Area, in addition to other correspondence. Q. NOTTCH OF NEXT MEETING AND ADJOIJILIOIENT The next rel".ular meeting is scheduled for October 9, 1979. Meeting adjourned it 12:30 a.m. Date approved October 9, 1979 ATTEST: 1, 4or o u 9 �F—c IN,,� r-1 &/ - 13 -