Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2017-08-02 Council Packet
Kenai City Council Meeting Page 1 of 4 August 2, 2017 KENAI CITY COUNCIL – REGULAR MEETING AUGUST 2, 2017 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) 1. John Williams – Restored Fire Truck’s Fourth of July Parade Trophy. C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. Ordinance No. 2968-2017 – Appropriating General Fund Balance Funds into General Fund Land Administration-Lands Fund for the Purchase by the City of Kenai’s General Fund of Airport Property Outside the Airport Reserve Constituting Approximately 16.49 Acres of Real Property Described as S1/2 S1/2 SW1/4, Section 33,T6N, R11W, Seward Meridian, Commonly Referred to as ‘Lawton Acres’ and Deed Restricting the Future Use Of the Property to Parks and Recreational Uses to be Retained by the City for a Public Purpose. [Clerk’s Note: This item was postponed to this meeting from the July 5 meeting for a third public hearing and Airport Commission review and recommendation on July 13. A motion to enact is on the floor.] ............................................................. Pg. 5 2. Ordinance No. 2971-2017 – Amending Kenai Municipal Code Section 1.15.060 - Motions, to Provide for Deferring a Motion or Agenda Item Beyond the Next Meeting. ........................................................................................................ Pg. 81 3. Ordinance No. 2972-2017 – Appropriating Funds in the Airport Fund, Accepting a Grant from the Federal Aviation Administration and Appropriating Funds in the Airport Equipment Capital Project Fund for the Purchase of Snow Removal Equipment (SRE) – Loader with Attachments and a Multi-Purpose Broom. .. Pg. 85 Kenai City Council Meeting Page 2 of 4 August 2, 2017 4. Resolution No. 2017-48 – Awarding an Agreement for Construction of Kenai Animal Control Shelter Flooring Renovation. ............................................... Pg. 88 5. Resolution No. 2017-49 – Awarding an Agreement for Construction of Kenai Public Safety Building Boiler Replacement. ............................................................. Pg. 90 6. Resolution No. 2017-50 – Providing for The Submission to the Qualified Voters of the City of Kenai, at its Regular Election of October 3, 2017, the Advisory Question of Whether the City should use General Funds or General Fund Land for the Purchase of or Trade for Airport Land Commonly Referred to as “Lawton Acres”, which is Airport Land Outside the Airport Reserve Constituting Approximately 16.49 Acres of Real Property Described as S1/2 S1/2 SW1/4, Section 33,T6N, R11W, Seward Meridian. .......................................................................................... Pg. 92 7. Resolution No. 2017-51 – Accepting and Adopting the 2017 Airport Master Plan. .................................................................................................................. Pg. 125 8. Resolution No. 2017-52 – Amending the Financing Terms and Purchasing Party for the Sale of Tract A, Dragseth Subdivision 2016 Addition, According to the Official Plat Thereof, Under Plat No. 2016-22, Filed in the Kenai Recording District, Third Judicial District, State of Alaska, Including All Improvements Thereon as Previously Approved in Ordinance No. 2957-2017 (Substitute). .................................. Pg. 140 9. Resolution No. 2017-53 – Supporting Kenai Peninsula Borough Ordinance 2017- 17, Establishing an 8 Percent Areawide Sales Tax on Temporary Lodging and Providing for an Exemption of up to 4 Percent of the Levy on Temporary Lodging Within the Boundaries of Cities in The Borough that Levy a Similar Sales Tax in Addition to an Existing General Sales Tax, Subject to Approval by the Voters in the Regular Election on October 3, 2017. ........................................................ Pg. 171 E. MINUTES 1.*Regular Meeting of July 5, 2017 .................................................................. Pg. 174 F. UNFINISHED BUSINESS 1. Ordinance No. 2969-2017 – Amending Kenai Municipal Code Title 24 – Municipal Cemetery, to Update Procedures for Development of Cemetery Regulations and Opening and Closing of Graves, and to Provide Regulations in the Cemetery Regulations Appendix for Columbarium Niches, Marker or Headstone Deposits, and Other Housekeeping Changes. [Clerk’s Note: This item was postponed to this meeting from the July 5 meeting. A motion to amend is on the floor.] ................................................................ Pg. 184 2. Resolution No. 2017-43 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to Cemetery Fees. [Clerk’s Note: This item was postponed to this meeting from the July 5 meeting. A motion to adopt is on the floor.] .................................................................. Pg. 190 Kenai City Council Meeting Page 3 of 4 August 2, 2017 G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. .................................................... Pg. 195 2. *Action/Approval – Purchase Orders Exceeding $15,000. ....................... Pg. 196 3. *Ordinance No. 2973-2017 – Accepting and Appropriating a Grant from the State of Alaska for the Purchase of Library Books. ............................................. Pg. 197 4. *Ordinance No. 2974-2017 – Accepting and Appropriating a Grant from the United States Department of Transportation Passed Through the State of Alaska Department of Transportation and Public Facilities for the Reduction of Fatalities and Injuries on Roadways. ......................................................................... Pg. 200 5. *Ordinance No. 2975-2017 – Appropriating Funds in the Airport Fund, Accepting a Grant From the Federal Aviation Administration and Appropriating Funds in the Airport Capital Project Fund for the Terminal Building Rehabilitation Project and Awarding a Contract to Wince-Corthell-Bryson Consulting Engineers for Design Services. ................................................................................................... Pg. 203 6. *Ordinance No. 2976-2017 – Increasing Estimated Revenues and Appropriations by $15,371 in the Airport Fund and in the Airport Improvement Capital Project Fund for the 2016 Airport Fencing Rehabilitation Project. ................................... Pg. 212 7. *Ordinance No. 2977-2017 – Amending Kenai Municipal Code Sections 14.20.151 – Application for Conditional Use Permit for Surface Extraction of Natural Resources, 14.20.152 – Review of Application, 14.20.153 – Public Hearing, 14.20.154 – Issuance of Permit, 14.20.155 – Operation, 14.20.156 – Yearly Review, 14.20.157 – Termination, 14.20.158 – Amendment or Transfer, to Allow the City Planner to Determine Application Completeness and Making Other Housekeeping Changes............................................................................. Pg. 215 8. *Ordinance No. 2978-2017 – Increasing Congregate Housing Fund Estimated Revenues and Appropriations to Provide Repair and Maintenance Funds That Were Inadvertently Omitted from the Funds FY2018 Budget. .................... Pg. 224 9. Action/Approval – Mayoral Nomination and Council Confirmation of Clyde Crandall to the Harbor Commission. .......................................................... Pg. 227 H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission ................................................................................... Pg. 228 3. Harbor Commission ................................................................................... Pg. 231 4. Parks and Recreation Commission ............................................................ Pg. 234 5. Planning and Zoning Commission ............................................................. Pg. 236 6. Beautification Committee 7. Mini-Grant Steering Committee Kenai City Council Meeting Page 4 of 4 August 2, 2017 I. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1. City Manager ............................................................................................. Pg. 251 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION 1. Review and Discussion of Candidates, Interview Questions and Interview Dates for the City Clerk Position. [AS 44.62.310(C)(2)(3) a Subject that Tends to Prejudice the Reputation and Character of an Applicant and Matters which by Law, Municipal Charter, or Ordinance are Required to be Confidential.] M. PENDING ITEMS – None. N. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review. The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Council Member Boyle CITY OF KENAI ORDINANCE NO. 2968-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROPRIATING GENERAL FUND BALANCE FUNDS INTO GENERAL FUND LAND ADMINISTRATION-LANDS FUND FOR THE PURCHASE BY THE CITY OF KENAI’S GENERAL FUND OF AIRPORT PROPERTY OUTSIDE THE AIRPORT RESERVE CONSTITUTING APPROXIMATELY 16.49 ACRES OF REAL PROPERTY DESCRIBED AS S1/2 S1/2 SW1/4, SECTION 33,T6N, R11W , SEWARD MERIDIAN, COMMONLY REFERRED TO AS ‘LAWTON ACRES’ AND DEED RESTRICTING THE FUTURE USE OF THE PROPERTY TO PARKS AND RECREATIONAL USES TO BE RETAINED BY THE CITY FOR A PUBLIC PURPOSE. WHEREAS, the City obtained the 16.49 acre parcel (Lawton Acres) from the Federal Aviation Administration (FAA) in 1964, via a Quit Claim Deed generally restricting the use of the property to development, improvement, operation or maintenance of the Airport; and, WHEREAS, pursuant to a request by the City on April 20, 1983, the FAA issued a Deed of Release for Lawton Acres containing a Reverter Clause similar to the original Quit Claim Deed that provides that if the terms and conditions of the conveyance document are not followed, the property will revert to the federal government at its option; and, WHEREAS, in accepting the Deed of Release, the City Council passed Resolution 83-48 providing that proceeds from any sale or lease of the property would be devoted to the Airport for development, improvement, operation or maintenance; and, WHEREAS, Lawton Acres is not needed by the Airport for Airport purposes; and, WHEREAS, the funds utilized for the purchase will not leave the City, but transfer from the General Fund to the Airport for Airport uses; and, WHEREAS, Lawton Acres is currently and has historically been zoned as Conservation allowing for Parks and Recreational uses; and, WHEREAS, the City’s 2016 Comprehensive Plan provides for Lawton Acres to be parks, recreation and open space; and, WHEREAS, historic and recent efforts by the City to sell Lawton Acres for development purposes has been met with public opposition in favor of maintaining the existing uses; and, WHEREAS, the City Council and majority of public comments reflect a desire for a permanent resolution for the property eliminating future uncertainty and conflict; and, WHEREAS, there is significant public support, expressed in writing and orally at public meetings, for the purchase of Lawton Acres by the General Fund to allow for preservation of property; and, Page 5 of 276 Ordinance No. 2968-2017 Page 2 of 4 New Text Underlined; [DELETED TEXT BRACKETED] WHEREAS, preserving the property in its current state or allowing limited Parks and Recreational development will maintain the sanctity of the surrounding residential neighborhoods and provide separation from industrial and commercial areas; and, WHEREAS, at least parts of the 16.49 acres, which specifically includes the ‘Field of Flowers,’ is already used as a public park; and, WHEREAS, the City’s General Fund has sufficient funds to purchase the property without significant negative implications; and, WHEREAS, KMC 21.15.080-Appraisal, requires that Airport land be appraised within the last 12 months prior to a sale, and KMC 21.15.180-Sale, requires the sale to be at fair market value; and, WHEREAS, KMC 22.05.135-Acquisition of Property, allows the Council to authorize the purchase of property for a public use, after a qualified appraiser has appraised the property; and, WHEREAS, it is in the best interest of the City to purchase the property at its appraised value for the public use of preserving the property in its current state or allowing limited Parks and Recreational development to maintain the sanctity of the surrounding residential neighborhoods and provide separation from industrial and commercial areas and create public parks and recreational opportunities for all residents of the City; and, WHEREAS, placing a deed restriction on the property restricting its use in perpetuity for parks and recreational uses, will accomplish the public purpose in the property acquisition. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a non-code ordinance. Section 2. Statement of Ownership: That the City of Kenai, on behalf of the Airport is the Owner of the real property described as S 1/2 S 1/2 SW 1/4, Section 33, T6N, R11W , Seward Meridian. Section 3. Public Purpose and Best Interest Findings: That the Kenai City Council further finds the acquisition of the subject parcel to be in the best interests of the citizens of the City of Kenai and that the public interest shall be served by its acquisition for the total purchase price as established by a fair market value appraisal, in accordance with the recitals above which are incorporated herein. That it is further found that the property is not needed for Airport purposes. Section 4. Authorization of Purchase: That the Kenai City Council hereby authorizes the City Manager to purchase the real property described as S 1/2 S 1/2 SW 1/4, Section 33, T6N, R11W , Seward Meridian, for the total purchase price as appraised, on a form approved by the City Attorney, to be retained by the City for public use and restricted as provided below. Page 6 of 276 Ordinance No. 2968-2017 Page 3 of 4 New Text Underlined; [DELETED TEXT BRACKETED] Section 5. That estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues – Appropriation of Fund Balance: $ Increase Appropriations: Land Administration – Land: $ Section 6. Title: That Title shall be conveyed by a Quit Claim Deed. Any instrument conveying Title to the property shall include the following restrictions, promises, and/or covenants: (a) that the City of Kenai reserves unto that the Grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns, for the use and benefit of the public a right of flight for the passage of aircraft in the airspace above the surface of the property, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for landing on or at and for taking off from or operating on Kenai Municipal Airport; and, (b) that the Grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns to restrict the height of structures, objects of natural grown, and other obstructions on the property to a height of not more than 242 above mean sea level; and, (c) that the Grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns to prevent any use of the property which would interfere with landing or taking off of aircraft at the Kenai Municipal Airport, or otherwise constitute an airport hazard; and, (d) that in perpetuity, the use of the property shall be restricted for public park, recreation; and, (e) that all covenants heretofore stated, shall run with the land and shall inure to the benefit of, and be binding upon the heirs, executors, administrators, successors, transferees, and assigns of the parties to the contract for sale and conveyance. Section 7. Proceeds of Sale: That should a sale of the property be finalized, all revenues from the sale shall be deposited in the Airport Land Sale Permanent Fund for use in the development, improvement, and operation of the Kenai Municipal Airport and as otherwise required in that Deed of Release executed on April 20, 1983 and recorded at Book 209, Pages 30-31, Kenai Recording District. Section 8. Severability: That if any part or provision of this Ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this Title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this Ordinance even without such part, provision, or application. Page 7 of 276 Ordinance No. 2968-2017 Page 4 of 4 New Text Underlined; [DELETED TEXT BRACKETED] Section 9. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of June, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: City Clerk Introduced: June 7, 2017 Enacted: June 21, 2017 Effective: July 21, 2017 Page 8 of 276 'll/fftije «11'tli a PaJ'~ ft~ «11'tli a Fat~" 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Council Member Boyle June1,2017 Ordinance No. 2968-2017 regarding Lawton Acres Ordinance 2968-2017 proposes to purchase Lawton Acres utilizing General Fund , Fund Balance and deed restrict the property for Parks and Recreational uses. The funds utilized for the purchase will stay within the City and will be utilized for the benefit of the City's Airport. This direction is consistent with historic and recent public testimony and provides a final solution and direction for Lawton Acres . Kenai Municipal Code requires that the property be appraised and the purchase price reflect fair market value. There is not a recent appraisal on the property. This Agenda includes an Action Approval item authorizing the City Manager or City Attorney to obtain an appraisal. It is my understanding that an appraisal can be accomplished by June 19, 2017. This would allow the Council to know the purchase price of the property prior to voting on enactment of this Ordinance at Council 's June 21, 2017 meeting. Your consideration is appreciated. Page 9 of 276 Compromise Between City Residents and The City of Kenai: Lawton Acres. Background: A: The area known as Lawton Acres (see attachment)-a stretch of land in the City of Kenai, Alaska -running along the Kenai Spur Highway from Walker Lane to Rogers Road on the North side and from Walker Lane to Rogers Road along Lawton Drive on the South side -continues to resurrect itself for consideration by the City Council/Planning and Zone Commission for rezoning, conditional use considerations, and potential sale . B. It would seem to make sense to reach a permanent solution versus revisiting the issue over and over. Note: The land is currently drawn up by the City as four tracts (A-D) (see the attached drawing). Starting on at Tract A on the Walker Lane side, the lot may be 150 feet deep, but there is only 100 feet of tree cover. For Tracts A and B, one can see the Spur Hwy through the trees already. Lack of an adequate buffer is a paramount issue with the area's residents. The Walker Lane end of Lawton Acres (Tracts A and B) appears to be too narrow to allow a realistic - commercial to residential-transition. A 30 feet buffer at Tract A and B is just too thin in width! Tract C (Field of Flowers) is a former fire training ground and is plagued with contamination . Option: 1. Deem Tracts A, B, and C as not being commercially viable -using the rational of narrowness (lack of adequate buffer) of Tracts A & B and contamination of Tract C. Petition the FAA to deed over to the City without charge and without land sale requirements due to the costly process to make a vi able and acceptable buffer or to remediate contamination. The three tracts would then be added to the City Parks systems and would be under the care of Parks and Recreation. 2. With input from the Lawton Acres affected residents, sell, via an acceptable competitive offer, the property (Tract D) from Rogers Road to the beginning of Tract 3 (Field of Flowers) as LIMITED Light Commercial conditional use property-allowing such development as a Professional Office Building, Medical(Doctor's Office) or Dental Office . Require using a Spur Highway entrance, or possibly Rogers Road entrance and with limited reduction in trees toward the Lawton Drive side. Proceeds would go into the Airport Fund to further support the Kenai Airport. NOT ALL COMMERICAL USE ZONE BUSINESSES OR STRUCTURES WOULD BE ALLOWED. Stipulations would be made of the purchaser to provide development that has the esthetics and design to be the least conspicuous. Strict adherence to submitted site and building plans would be required. The Lawton Drive/Rogers Road buffer zone could be 150-200 feet! Since once trees are cut down it is impossible to replace them, close scrutiny is required by City Inspectors or designated personnel in the property Landscape phase . THOUGH IN A PERFECT WORLD, HAVING EVERYTHING STAY THE SAME MIGHT BE IDEALISTIC, THIS COMPROMISE WOULD ALLOW THE AREA TO GET THIS ISSUE BEHIND US. Attachments -Lawton Acres -Tracts A, B, C, and D. Page 10 of 276 ~ !! z ...J er w ::.:: ...J -~ - 0 a:: z ~ 0 :I: ~ ~ ~ ''"' "''" \OteO lCl2f KE.\\)A1. '! 7uo • Tr-.~1-B --~. 7 •<. L WTON "'' '" NOTES: 1) Gu service is avaif1t>Jt to 111 paruls from the K~1I Spur Hwy. 2) Ettctrlc service is avallible to 1fl parcels from t he Kenai Spur Hwy . 3) Wettr set"\ilce ls avaltaf:llefrom Walker Ln .• Lawton Dr ., ind Rogers Rd . 4) Sewtr 1ervtu Is ~vailob~ from W1lke-r Ln., Uwton Or., and Ro1ers Ref. 5) Thf Ke nai Penlnsul1 8 oro14h rtcommended a 20' riiht of way drdlatlon of Uwtori Or. alone the south bound1ry of Uwton Acrrs to provide for 1 total ri cht or WIY width of 10'. L 1:2,000 J - -~I I 11--::1 "' "'" .,, "' "' ~ ! ~ ... .,. ~ ~ ! e <./) ex: w I.$ 0 !l£: e a Page 11 of 276 Jamie Heinz From: Peter 0 . Hansen <pohansen@alaska.net> Thursday, June 15, 2017 9:58 PM Sent: To: Jamie Heinz Subject: Testimony in Support of Ordinance No. 2968 -2017 Dear Miss Heinz, My wife and I are aware the Kenai City Council is planning to hold a public hearing Wednesday June 21, 2017 on Ordinance No . 2968-2017 regarding Lawton Acres. We strongly support and favor the passage of this ordinance for the following reasons; since we will be out of state that evening we are asking for this information to be submitted as our testimony during the Public Hearing and read into the minutes of it. • Our home at 418 Rogers Road is one of about 80 residences in the Inlet View Subdivision which are effected by noise from the traffic rolling into and out of Kenai. Even though we live a block south of Lawton Street we often hear the Semi-truck tractors starting up from the Wal-Mart traffic light as well as other heavy traffic as they pick up speed leaving town . Preserving Lawton Acres for recreational purposes as it is with the flora and fauna it has helps keep a sound buffer even though it is not perfect for residences south of the highway. • Lawton Acres in its natural state provides a buffer for Inlet View and Central Heights Subdivisions from north winds. • There are an increasing number of children living in Inlet View as well as the many young folks living in Central He ig hts Subdivision which has probably another 60 homes and there is no City Park ground for these kids and/or their families to play in other than the middle school and hi gh sc hool playground a half mile away, and often these playgrounds have restrictions. • A portion of Lawton Acres has been used for Oil Fire Training which we have observed in the past and this land is contaminated. • Back in the 1970's we and many of our neighbors petitioned the Kenai City Council to have Lawton Acres preserved for, we believe, Conservation, in order for it to remain a natural habitat for plants and animals. If one looks at the area surrounding Lawton Acres, it is the last acreage of forested area on the Southeast side the City Center and shopping areas to serve this purpose. • The portion of Lawton Acres known as Flower Park is utilized by many citizens of the Central Peninsula. We frequently walk thru this park and meet people who are visitors there from surrounding communities. The park serves as an attraction for these individuals with their families to come and shop in Kenai, thus raising sales tax for the City. • Lawton Acres , preserved and dedicated by the City for Parks and Recreation, could further the quality of life for all Kenai's citizens by uniquely developing winding trails throughout parts of it for hiking, biking, skiing, skateboarding, and families pushing strollers ...... trails thru the trees. • We appreciate th e time and consideration Kenai Council persons put in on resolving this issue, which keeps returning every few years, and it would be nice to see it resolved which this ordinance would do for the benefit of Kena i's citi ze ns. Peter and Karolee Han se n 418 Roger s Road Kenai, Alaska 99611 Home phone: 907 -283 -46 15 1 Page 12 of 276 HEAR YE! HEAR YE! WHAT TO DO ABOUT LAWTON ACRES DATE: June 21, 2017 To : Kenai City Council Re : Agenda Item D4. Ordinance No. 2968-2017 – Appropriating General Fund Balance Funds into General Fund Land Administration-Lands Fund for the Purchase by the City of Kenai City Council Meeting Page 2 of 4 June 21, 2017 Kenai’s General Fund of Airport Property Outside the Airport Reserve Constituting Approximately 16.49 Acres of Real Property Described as S1/2 S1/2 SW1/4, Section 33,T6N, R11W, Seward Meridian, Commonly Referred to as ‘Lawton Acres’ and Deed Restricting the Future Use Of the Property to Parks and Recreational Uses to be Retained by the City for a Public Purpose. Considering the testimony of the people from the public at the work session on January 24th and June 15th, it would seem in order to NOT go ahead with the development of the property. This desire of the people most effected by this decision is not new. They have been saying NO DEVELOPMENT for 25 years or longer. The whole city voted on this at least twice and said NO DEVELOPMENT. The council was elected to represent all citizens, not just the business community. Let the citizens vote on it. At least three councilors support this. Why do some members of the council fear letting the people decide? At the work session in January some of the residents present seemed to respond positively to Dr. Sorhus’s development proposal. Put it to the voters to buy all 16 acres, then sell to Dr. Sorhus. The rest will then be made into a green strip or park. The airport will get the total value of the 16 acres and the city could partially offset the cost by selling to Dr. Sorhus. This is a win-win-win solution. Not everyone gets totally what they want, but everyone gets a fair share. And the fate of Lawton acres will be settled. Bob McIntosh PeninsulTownCrier.com bobmkenai@gmail.com 907-953-7995 Page 13 of 276 Page 14 of 276 Page 15 of 276 Page 16 of 276 Page 17 of 276 Page 18 of 276 Page 19 of 276 MacSwain Associates LLC 4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503 APPRAISAL REPORT Appraisal of Three Properties in Lawton Acres, Kenai, Alaska Property 1: 16.49-Acre Parcel (Property ID 045-01-003) Property 2: 4.10-Acre Parcel (Proposed Tract D) Property 3: 5.80-Acre Parcel (Proposed Tracts A & B) Effective Appraisal Date: June 15, 2017 File No. 17-3078 Submitted To: Scott M. Bloom, City Attorney City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 N Property 1 16.49± Acres (red boundary) Property 3 5.80± Acres Kenai Spur Highway Lawton Drive Lawton Drive Rogers Road Property 2 4.10± Acres Proposed Tracts A&B Proposed Tract C Proposed Tract D Page 20 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 4401 Business Park Blvd., Suite 22 Anchorage, Alaska 99503 Phone: 907-561-1965 Fax: 907-561-1955 s.macswain@macswain.com June 30, 2017 Scott M. Bloom, City Attorney City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 Re: Appraisal of Three Properties in Lawton Acres Kenai, Alaska Dear Mr. Bloom: We have prepared an Appraisal Report that analyzes three properties located in Kenai, Alaska. Property 1 is a 16.49± acre parcel known as Lawton Acres, which fronts the south side of the Kenai Spur Highway and the north side of Lawton Drive, between Walker Lane and Rogers Road. Property 2 is a proposed tract of land (Tract D) situated on the east end of Lawton Acres, containing 4.10± acres. Property 3 is a proposed tract of land (Tracts A & B) on the westerly half of Lawton Acres, containing 5.80± acres. Because Properties 2 and 3 are proposed, it is an extraordinary assumption of these appraisals that they will be subdivided and the plat will be approved by the Kenai Peninsula Borough. We analyzed each property independently, but present our findings bound in one report. Listed below are property identification numbers or legal descriptions, sizes, and market value estimates for each property appraised. The property rights appraised is the fee simple interest. The report is prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). Based on the data, reasoning, and analysis that follow, we are of the opinion that the market value of each subject property, as of June 15, 2017, is as follows: Legal Description Size Market Value Property 1 – Property ID 045-01-003 16.49± Acres $600,000 Property 2 – Proposed Tract D 4.10± Acres $275,000 Property 3 – Proposed Tracts A & B 5.80± Acres $250,000 We invoke an extraordinary assumption for the appraisals of Property 2 and Property 3, that they will be subdivided as indicated by the proposed plat, and the plat will be approved by the Kenai Peninsula Borough. If found to be false, the market value estimates could be affected. Page 21 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC Your attention is specifically directed to the Assumptions and Limiting Conditions and Extraordinary Assumption of this report. We hope the appraisal report assists your evaluation of the appraised property. If you have any questions regarding this report, please contact our office. Respectfully submitted, Steve MacSwain, MAI State of Alaska Certificate No. 42 Page 22 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC Appraiser Certification The undersigned certifies that to the best of their knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. MacSwain Associates, LLC appraised Property 1 as part of a project appraisal for the City of Kenai in 2015. We have not performed any other services as an appraiser or in any other capacity, regarding the property that is the subject of this report, within the three-year period immediately preceding acceptance of this assignment. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The reported analyses, opinion, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Alex Kleinke inspected the appraised properties on June 15, 2017. Steve MacSwain, MAI is familiar with the property from previous assignments in Kenai. Alex Kleinke provided significant real property appraisal assistance including photography, research, data gathering, and analytical support to the person signing this certification. As of the date of this report, Steve MacSwain, MAI, is a certified General Real Estate Appraiser in the State of Alaska and has completed the education requirements through June 2019. 6/30/17 Steve MacSwain, MAI State of Alaska Certificate No. 42 Date Page 23 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC Table of Contents Title Page Transmittal Letter Appraiser Certification Table of Contents Appraisal Summary 1 Chapter 1: Definition of the Appraisal Problem 3 Chapter 2: Location and Neighborhood Summaries 7 Chapter 3: Property 1 – Property ID 045-01-003 10 Property Photographs 13 Highest and Best Use Analysis 16 Property Valuation 18 Chapter 4: Property 2 – Proposed Tract D 23 Property Photographs 26 Highest and Best Use Analysis 28 Property Valuation 30 Chapter 5: Property 3 – Proposed Tracts A & B 35 Property Photographs 38 Highest and Best Use Analysis 40 Property Valuation 42 Assumptions and Limiting Conditions 47 Extraordinary Assumption 48 Addenda Appraiser Qualifications Page 24 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 1 Appraisal Summary Property 1 – Property ID 045-01-003 Property Type: Vacant land Property Rights Appraised: Fee simple interest Physical Address: 10095 Kenai Spur Highway, Kenai, AK Parcel ID Number: 045-010-03 Legal Description: S½ S½ SW¼, Section 33, Township 006N, Range 011W, Seward Meridian, Lying South of Kenai Spur Highway Zoning: C, Conservation Site Size: 16.49± acres or 718,304± square feet Shape: Long and narrow Vegetation: Majority treed with partial clearing for flower field Wetlands: Riparian wetlands bisect center of property Highest and Best Use: Subdivision with mixed-use development Extraordinary Assumption: None Effective Appraisal Date: June 15, 2017 Market Value Opinion $600,000 Property 2 – Proposed Tract D Property Type: Vacant land Property Rights Appraised: Fee simple interest Physical Address: 10095 Kenai Spur Highway, Kenai, AK Parcel ID Number: N/A Legal Description: Proposed Tract D Zoning: C, Conservation Site Size: 4.10± acres or 178,596± square feet Shape: Trapezoidal Vegetation: Heavily treed with spruce and birch Wetlands: None Highest and Best Use: Commercial development in accordance with allowable conditional uses under current zoning Extraordinary Assumption: Property will be subdivided as indicated by the proposed plat, and that the plat will be approved by the Kenai Peninsula Borough Effective Appraisal Date: June 15, 2017 Market Value Opinion $275,000 Page 25 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 2 Property 3 – Proposed Tracts A & B Property Type: Vacant land Property Rights Appraised: Fee simple interest Physical Address: 10095 Kenai Spur Highway, Kenai, AK Parcel ID Number: N/A Legal Description: Proposed Tracts A & B Zoning: C, Conservation Site Size: 5.80± acres or 252,648± square feet Shape: Narrow rectangle Vegetation: Heavily treed with spruce and birch Wetlands: None Highest and Best Use: Commercial development in accordance with allowable conditional uses under current zoning Extraordinary Assumption: Property will be subdivided as indicated by the proposed plat, and that the plat will be approved by the Kenai Peninsula Borough Effective Appraisal Date: June 15, 2017 Market Value Opinion $250,000 Proposed Plat Provided By: City of Kenai N Kenai Spur Highway Page 26 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 3 Chapter 1: Definition of the Appraisal Problem We prepare an Appraisal Report that analyzes Lawton Acres in Kenai Alaska. Our assignment values Lawton Acres under two scenarios. Under the first scenario, we appraise the entire 16.49± acre parcel, referred to as Property 1. The second scenario considers the proposed subdivision of Lawton Acres. Under this scenario, we appraise Proposed Tract D (Property 2) and Proposed Tracts A & B (Property 3). We analyze each property independently, but present our findings bound in one report. Listed below are chapter and page numbers, and identification of each parcel appraised. The report is prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). Chapter Property Page 3 Property 1 – Property ID 045-01-003 10 4 Property 2 – Proposed Tract D 23 5 Property 3 – Proposed Tracts A&B 35 Lawton Acres Market value City of Kenai The intended use of this appraisal report is to assist the client with an investment decision involving the subject properties. The intended user of this appraisal report is the City of Kenai. Overview Property Name Value Type Client Intended Use of Appraisal Report Intended User of Appraisal Report Page 27 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 4 June 15, 2017 June 15, 2017 June 30, 2017 Lawton Acres is situated on the south side of Kenai Spur Highway, 0.8± mile southeast of Kenai’s Municipal Airport. The type of value estimated is market value. Market value is defined as follows. The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after a reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming neither is under undue duress.1 The property rights appraised is the fee simple interest, which is defined as follows. Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.2 The appraised properties are legally defined in each of their respective chapters. 1 Appraisal of Real Estate, Fourteenth Edition (2013), by the Appraisal Institute, p. 58. 2 Appraisal of Real Estate, Fourteenth Edition (2013), by the Appraisal Institute, p. 5. Property Inspection Date Effective Appraisal Date Date of Report Location Value Type Property Rights Appraised Legal Description Page 28 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 5 Public records indicate the owner of the property is the City of Kenai. The 16.49± acre parcel has been assessed for $478,100 for the past ten years. This equates to $28,993 per acre or $0.67 per square foot. As the parcel is owned by the City of Kenai, it is exempt from paying property taxes. We employ the sales comparison approach to estimate the market value of the property, because neither the cost nor the income capitalization approaches provide meaningful analysis for vacant land similar to the subject. Additionally, we found sufficient land sale data to develop our opinion of value. Comparable land sale data was obtained from private parties, real estate brokers/agents, market participants, appraisers, and company files. The appraisal report is a summary of the appraiser’s data, analyses, and conclusions with supporting documentation retained on file. The scope of the appraisal is summarized as follows. Inspected the appraised properties on June 15, 2017; Discussed the appraised properties with Paul Ostrander, City Manager, and Scott Bloom, City Attorney with City of Kenai; Reviewed Kenai Peninsula Borough (KPB) land use ordinance pertaining to zoning, permitted uses, and conditional uses, and conditional use permits; Collected data from the City of Kenai, KPB Assessor’s Office, and State of Alaska Recorder’s Office regarding ownership, assessments, and general property information; Reviewed City of Kenai and KPB mapping and aerial imagery pertaining to ownership, land use, and wetlands; Performed a land use analysis; Determined the highest and best use of each property; Interviewed real estate agents active in the Kenai market district regarding sale activity, current market trends, and anticipated market trends; Collected and analyzed MLS data and statistics regarding all types of property sales located in Kenai; Property Ownership Real Property Assessment Appraisal Report Overview Scope of Appraisal Page 29 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 6 Collected data pertaining to the dynamics of the real estate market district; Collected, verified, and analyzed comparable land sales; Inspected and photographed the primary sales relied upon in the comparative analysis; and Developed the sales comparison approach to arrive at estimates of market value for each subject property. MacSwain Associates LLC has completed numerous appraisals of properties in Kenai and surrounding communities in the Kenai Peninsula Borough. A summary of the appraiser’s experience and professional qualifications are located in the addenda. Steve MacSwain, MAI has the knowledge and experience required by the competency provision of USPAP to complete this assignment credibly. We have collected and analyzed market and economic data that projects real estate trends and activity for commercial and residential properties. Discussions with Brokers and analysis of similar property sales indicate that a period of approximately one year prior to our effective date of value is a reasonable exposure period. Statement of Competency Exposure Time Page 30 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 7 Chapter 2: Location and Neighborhood Summaries Due to the knowledge of the reader, we do not include a detailed demographic and economic summary of the Kenai Peninsula Borough (KPB) or City of Kenai. The reader is referred to the map below and on following pages that illustrate the location and assist in the description and analysis. Location Map Kenai is located on the western coast of the Peninsula, and is often associated with Soldotna, which is located 11± miles to the southeast. These two cities have become known as the “twin cities,” sharing an integrated economy, while maintaining their independence. Kenai is a home rule city with a population of 7,098. In the summer months, the area benefits from tourists fishing the Kenai River. Kenai is also the center for the oil and gas industry on the Peninsula, providing services and supplies for Cook Inlet’s oil and natural gas drilling and exploration. Nikiski, which lies north of Kenai, has two refineries that process oil from the Cook Inlet oil platforms and the Swanson River oil fields. There are numerous oil field support businesses located in the area as well as the refineries. Kenai has the largest airport on the peninsula, the Kenai Municipal Airport, which has scheduled flights to/from Anchorage and other communities in the region. Overview City of Kenai Summary Kenai Cook Inlet SoldotnKenai River N Page 31 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 8 The subject is located within a mixed-use neighborhood, with commercial and institutional development to north, east, and west, and residential development to the south. Development in the immediate neighborhood includes Kenai Central High School to the east, Home Depot, Safeway, Three Bears, and Aspen Hotel to the west, Walmart to the north, and a residential subdivision to the south. The prime commercial district in Kenai is just to the west of the appraised parcel. Neighborhood Development Neighborhood Zoning Map Neighborhood Description N Safeway Home Depot Three Bears Walmart Aspen Hotel Kenai Spur Hwy Kenai Central HS Subjects N Subjects Page 32 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 9 Sale activity remains relatively scarce with assemblage, expansion, or special-purpose use representing the principal components of demand. After analysis, we determined commercial property values have been relatively stable over the past decade. Conclusion Page 33 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 10 Chapter 3: Property 1 – Property ID 045-01-003 The appraised property is a vacant parcel, which is partially cleared and planted with a flower field. We summarize the subject property in a summary format. The inserted exhibits and photographs that follow help illustrate our descriptive analysis. KPB Aerial Imagery Review of public documents indicates the property is legally defined as follows. S½ S½ SW¼, Section 33, Township 006N, Range 011W, Seward Meridian, Lying South of Kenai Spur Highway Location: South of Kenai Spur Highway between Walker Lane and Rogers Road, fronting north side of Lawton Drive, Kenai, Alaska Physical Address: 10095 Kenai Spur Highway, Kenai, Alaska Current Use: Primarily vacant with flower garden on portion of parcel Property Overview Legal Description Identification of Real Estate Appraised N Property 1 Walker Lane Kenai Spur Highway Rogers Road Page 34 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 11 Fee simple interest There are no known sales of the property in the past three years. Analysis of land describes the characteristics that enhance or detract from its utility or marketability. We base the site description and analysis our appraisal inspection on June 15, 2017 and review of the KPB assessor map and other available mapping. The following assessor map and aerial imagery on the previous page assist in the description and analysis of the site. KPB Assessor Map Parcel Shape and Land Area: Long and narrow parcel containing 16.49± acres (718,304± square feet) per City of Kenai Vehicular Access: Current access via Lawton Drive, paved two-lane road Frontage and Exposure: 2,605± feet on Kenai Spur Highway and Lawton Drive, 490± feet on Rogers Road, 170± feet on Walker Lane Topography: Mostly level with undulation near riparian wetlands, which bisect property from north to Property Rights Appraised Three-Year Sale History Site Description N Kenai Spur Highway Subject Page 35 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 12 south near center of property Vegetation: Primarily treed with partial clearing for flower field Public Utilities: All public utilities available to parcel Zoning: C, Conservation Easements and Restrictions: None noted Encroachments: None Flood Hazard Conditions: Federal Emergency Management Agency (FEMA) Community Panel No. 02122C0140E, dated October 20, 2016, indicates the site is located in Zone D, an area in which flood hazards are undetermined, but possible. Environmental Considerations: The appraisers were not provided an environmental assessment. The existence of any hazardous material or other type of environmental contamination, which may or may not be present on the property, was not observed by the appraisers nor do the appraisers have any knowledge of the existence of such substances. A search of the Department of Environmental Conservation Contaminated Sites Database yielded no results. Our value conclusion assumes that the property is free of environmental and hazardous contaminants. Soil and Subsurface Conditions: A soil report was not provided to the appraisers. The soils are consistent with undeveloped land in the area and consists of a good gravel base. Site Improvements: Partial clearing for flower field Site Utility: The parcel benefits from substantial Kenai Spur Highway frontage, availability of public utilities, and good gravel based soils Page 36 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 13 Property 1 Photographs Taken By: Alex Kleinke Date: June 15, 2017 Westerly view of subject along south boundary Westerly view of subject along north boundary Page 37 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 14 Taken By: Alex Kleinke Date: June 15, 2017 Northerly view taken from Kenai Spur Highway Easterly view of Lawton Drive frontage Page 38 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 15 Taken By: Alex Kleinke Date: June 15, 2017 Westerly view of Kenai Spur Highway frontage Easterly view of Kenai Spur Highway frontage Page 39 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 16 Highest and Best Use Analysis Highest and best use is a market-driven concept rather than a subjective conclusion based on the experience of the appraiser or property owner’s needs. The Dictionary of Real Estate Appraisal (Sixth Edition) defines highest and best use as follows. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Physically Possible: The subject parcel contains 16.49± acres or 718,304± square feet. A location within Kenai’s commercial core, substantial Kenai Spur Highway exposure, and availability of public utilities enhance commercial development potential. The large size limits demand from a single user, and increases the likelihood for subdivision. Thus, physical character enhances the potential for commercial use, with subdivision to accommodate multiple users. Legally Permissible: Zoning is C, Conservation Zone, “intended to apply to areas which should be preserved primarily as open areas and as watersheds and wildlife reserves. Airport and related uses have been included in this zone to allow for the reservation of aircraft approach zones. It is intended that this zone shall apply mainly to publicly owned land.”3 In addition to this zoning district’s intended permitted uses, many residential, institutional, and commercial uses are allowed as conditional uses. The Kenai Municipal Code states “the conditional use permit procedure is intended to allow flexibility in the consideration of the impact of the proposed use on surrounding property and the application of controls and safeguards to assure that the proposed use will be compatible with the surroundings.”4 Surrounding development includes commercial and institutional to the north, west, and east, on properties with Kenai Spur Highway frontage. Residential development to the south of the subject is evident, as this area lacks highway frontage. Because of the subject’s 3 Kenai Municipal Code, Chapter 14.20 Kenai Zoning Code, City of Kenai, Ordinance 2943-2017, effective May 5, 2017 4 Kenai Municipal Code, Chapter 14.20.150 Conditional Use Permits, City of Kenai, Ordinance 2943-2017, effective May 5, 2017 Overview Highest and Best Use as Vacant Page 40 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 17 highway frontage, conditionally allowed commercial use appears to be compatible with surrounding development. Financially Feasible and Maximally Productive: As discussed, commercial uses are evident along the Kenai spur Highway. Proximity to Kenai’s commercial core further encourages commercial development. The subject’s zoning, and the requirement to obtain a conditional use permit increases risk; however, commercial uses as allowed under Kenai’s land use table for conditional uses conform with the neighborhood development pattern. Thus, analysis indicates commercial development represents the only permissible financial option that is physically possible. This type of development maximizes the return to the land. Due to the large size of the property, subdividing the parcel will increase demand. Thus, the highest and best of the appraised parcel, as vacant, is commercial development after subdivision. Highest and Best Use As Vacant Subdivision and Commercial Development Page 41 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 18 Property 1 Valuation The sales comparison approach is a market-based analysis that develops a land value estimate by analyzing and comparing similar land sales to the subject property. Our market research revealed sufficient market activity of land in Kenai and surrounding areas. Due to the imperfect nature of the market, we use a qualitative comparison technique that rate elements of comparison as superior, inferior, or similar. Explanation of the elements of comparison, and analysis of the primary land sales follows. The first step of the market analysis is to determine what elements of comparison cause land sale prices to vary. We found that location, frontage, wetland inundation, topography, size, shape, utilities, and use (zoning) influence market behavior and the price paid for vacant land in Kenai. As discussed, the subject is zoned C, Conservation, which limits development potential. While certain commercial and residential uses are allowable with a conditional use permit, the extent of allowable development is less than the comparable properties’ zoning districts. Further, the requirement to file a conditional use permit increases property risk. Thus, Conservation zoning puts downward pressure on demand, requiring an adjustment to the comparables for their superior zoning characteristics. Regarding market conditions, Kenai’s land values remained relatively stable for the past 10 years, so we do not make an adjustment for time. Quantifying the identified adjustments is difficult due to the limited sale data; therefore, qualitative techniques are used to measure differences between the comparable sales and the subject. Importantly, the transactions offer similar highest and best use potential and are the best market data available. Researching the Kenai market for conservation zoned land sales revealed no transactions, requiring us to expand our search to include land in other zoning districts with similar utility. Listed on the following page are four transactions we rely upon to facilitate our comparative analysis. Additional details of the comparable land sales are retained on file. Overview Elements of Comparison Comparative Market Analysis Page 42 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 19 Comparable Land Sales No Location Zoning Sale Date Sale Price Size $/SF $/Ac. 1 East side of Kenai Spur Highway near Mile 20 None 1/14 $207,130 902,258 SF 20.71 Ac. $0.23 $10,000 2 West side of Marathon Road, north of Kenai Spur Highway CG 9/07 $1,650,000 649,991 SF 14.78 Ac. $2.56 $111,607 3 East side of Kenai Spur Highway at corner of Ross Street LC 7/16 $75,000 326,700 SF 7.50 Ac. $0.23 $10,000 4 South side of Lawton Drive, just east of Walker Lane RS 8/14 $225,000 591,980 SF 13.59 Ac. $0.38 $16,556 South side of Kenai Spur Highway between Walker Lane and Rogers Road (Subject) C -- -- -- -- 718,304 SF 16.49 Ac. -- -- Land Sale Map N Subject 4 1 2 3 Page 43 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 20 Comparative Land Analysis: Land Sale 1 is the January 2014 sale located on the east side of Kenai Spur Highway, near Mile 20 at Robert Walker Avenue. This 20.713- acre (902,130 SF) parcel sold for $207,130 or $10,000 per acre. Located outside of Kenai city limits, the trapezoidal-shaped parcel was heavily treed at the time of sale with generally level to gently rolling topography. Access is provided by Robert Walker Avenue, a gravel road. Public natural gas, electricity, and telephone are available to the property. The intention of the sale was for development of a storage yard for an oil-support related business. Subsequently, the property was purchased by Alaska LNG at an undisclosed price. By comparison, this sale is superior due to shape and lack of wetlands, which expand its developable footprint. Further, lack of zoning allows for greater development potential and reduces risk. Overriding these superiorities is inferior location away from Kenai’s commercial core, lack of public water and sewer, and access via a gravel road. Overall, Land Sale 1 is rated inferior, indicating a unit value greater than $10,000 per acre for the subject. Land Sale 2 is the September 2007 sale located on the west side of Marathon Road, just north of Kenai Spur Highway. This 14.78-acre (649,991 SF) parcel sold for $1,650,000 or $111,607 per acre. Zoned General Commercial (CG), the irregular-shaped parcel was heavily treed at the time of sale. Access is provided by Marathon Road, paved, two-lane, and all public utilities are available. The property was purchased by Lowe’s Home Improvement Warehouse to construct a retail warehouse. By comparison, this sale is rated superior in terms of use (zoning), lack of wetlands, level topography, and shape. While lacking direct Kenai Spur Highway frontage, it has good exposure and linkage to Kenai’s commercial core. After analysis, Land Sale 2 is rated significantly superior, indicating a unit value substantially less than $111,607 per acre for the subject. Land Sale 3 is the July 2016 sale located on the east side of Kenai Spur Highway near Mile 5 at Ross Street. This 7.50-acre (326,700 SF) parcel sold for $75,000 or $10,000 per acre. Zoned Limited Commercial (LC), the trapezoidal-shaped parcel is heavily treed and approximately 50% inundated with low-lying wetlands per KPB Wetland Mapper. According to the Broker, the property is dry due to the State rerouting drainage two years ago. Dual access is provided by Kenai Spur Highway, a paved, two-lane highway, and Ross Street, a gravel road. Natural gas and electricity are at the parcel. The Broker stated the buyer had no immediate plans to develop the property, and intended to hold for future commercial development. The parcel was listed for sale for most of the last five years, originally at $129,000 before dropping to $79,900. We make downward adjustments for Page 44 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 21 zoning, superior size differential, and lack of wetland inundation at the time of sale. Conversely, we make upward adjustments for inferior location away from Kenai’s commercial core, and lack of public water and sewer, which increases development costs. Overall, Land Sale 3 is rated inferior, indicating a unit value greater than $10,000 per acre for the subject. Land Sale 4 is the August 2014 sale located on the south side of Lawton Drive, just east of Walker Lane. This 13.59-acre (591,980 SF) parcel sold for $225,000 or $16,556 per acre. Located immediately south of the subject in a Suburban Residential (RS) zone, the irregular- shaped parcel is heavily treed. Riverine wetlands encroach onto the east boundary of the parcel. Access is provided by Lawton Drive, a paved, two-lane road. The Broker indicated public water, sewer, electricity, and telephone are available to the property. The parcel was exposed to the market for 291 days, originally listed at $295,000. We make a downward adjustment for superior RS zoning, which allows a wider array of permitted and conditional uses than the subject’s zoning. Conversely, an upward adjustment is required to account for a lack of highway frontage / exposure, significantly reducing demand from commercial users. Overall, Land Sale 4 is rated inferior, indicating a unit value greater than $16,556 per acre. Reconciliation of Comparative Market Analysis: Presented below is a rating grid and analysis of the land sales used in comparative analysis. Land Sale $/Acre Rank Net Adjustment 2 $111,607 Significantly Superior Subject -- -- -- -- -- -- 4 $16,556 Inferior 1 $10,000 Inferior 3 $10,000 Inferior Before adjustments, the comparable land sales indicate a wide unit value range from $10,000 to $111,607 per acre. Land Sale 2 is rated superior indicating a unit value significantly less than $111,607 per acre. Conversely, Land Sales 1, 3, and 4 are rated inferior indicating a unit value greater than $16,556 per acre. After comparative analysis and making the necessary adjustments, a unit value of $30,000 to $40,000 per acre is market-supported and developed on the following page. Page 45 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 22 16.49 acres × $30,000/acre = $494,700 16.49 acres × $40,000/acre = $659,600 Reconciliation and Conclusion of Land Value: Based on the foregoing, the market value via the sales comparison approach ranges from $495,000 to $660,000 after rounding. In conclusion, we correlate with an estimate of land value at $600,000, which approximates $36,000 per acre. Market Value Estimate – Property ID 045-01-003 $600,000 Page 46 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 23 Chapter 4: Property 2 – Proposed Tract D The appraised property is a vacant parcel on the southwest corner of Kenai Spur Highway and Rogers Road. We summarize the subject property in a summary format. The inserted exhibits and photographs that follow help illustrate our descriptive analysis. KPB Aerial Imagery As this is a proposed tract, we refer to the subject’s legal description as “Proposed Tract D”. Location: Southwest corner of Kenai Spur Highway and Rogers Road, fronting north side of Lawton Drive, Kenai, Alaska Physical Address: 10095 Kenai Spur Highway, Kenai, Alaska Current Use: Vacant land Property Overview Legal Description Identification of Real Estate Appraised N Walker Lane Kenai Spur Highway Rogers Road Property 2 Page 47 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 24 Fee simple interest There are no known sales of the property in the past three years. Analysis of land describes the characteristics that enhance or detract from its utility or marketability. We base the site description and analysis our appraisal inspection on June 15, 2017 and review of the proposed subdivision plat provided by the client, the KPB assessor map, and other available mapping. The following proposed plat and aerial imagery on the previous page assist in the description and analysis of the site. Proposed Subdivision Plat Parcel Shape and Land Area: Trapezoidal-shaped parcel containing 4.10± acres (178,596± square feet) per proposed plat Vehicular Access: Information provided by the client indicates access via Rogers Road, paved, two-lane road Frontage and Exposure: 470± feet on Kenai Spur Highway and Rogers Road, 450± feet on Lawton Drive Topography: Generally level, near access grade Property Rights Appraised Three-Year Sale History Site Description N Kenai Spur Highway Rogers Road Subject Page 48 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 25 Vegetation: Heavily treed with spruce and birch Public Utilities: All public utilities available to parcel Zoning: C, Conservation Easements and Restrictions: None noted Encroachments: None Flood Hazard Conditions: Federal Emergency Management Agency (FEMA) Community Panel No. 02122C0140E, dated October 20, 2016, indicates the site is located in Zone D, an area in which flood hazards are undetermined, but possible. Environmental Considerations: The appraisers were not provided an environmental assessment. The existence of any hazardous material or other type of environmental contamination, which may or may not be present on the property, was not observed by the appraisers nor do the appraisers have any knowledge of the existence of such substances. A search of the Department of Environmental Conservation Contaminated Sites Database yielded no results. Our value conclusion assumes that the property is free of environmental and hazardous contaminants. Soil and Subsurface Conditions: A soil report was not provided to the appraisers. The soils are consistent with undeveloped land in the area and consists of a good gravel base. Site Improvements: None Site Utility: The parcel benefits from a corner location, Kenai Spur Highway frontage, availability of public utilities, and good gravel based soils Page 49 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 26 Property 2 Photographs Taken By: Alex Kleinke Date: June 15, 2017 Northwesterly view towards Kenai Spur Highway of northeast corner Southerly view of Rogers Road frontage Page 50 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 27 Taken By: Alex Kleinke Date: June 15, 2017 Southwesterly view of Kenai Spur Highway frontage Westerly view of subject from Rogers Road Page 51 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 28 Highest and Best Use Analysis Highest and best use is a market-driven concept rather than a subjective conclusion based on the experience of the appraiser or property owner’s needs. The Dictionary of Real Estate Appraisal (Sixth Edition) defines highest and best use as follows. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Physically Possible: The subject parcel contains 4.10± acres or 178,596 square feet. A corner location within Kenai’s commercial core, Kenai Spur Highway exposure, and availability of public utilities enhance commercial development potential. Thus, physical character enhances the potential for commercial use. Legally Permissible: Zoning is C, Conservation Zone, “intended to apply to areas which should be preserved primarily as open areas and as watersheds and wildlife reserves. Airport and related uses have been included in this zone to allow for the reservation of aircraft approach zones. It is intended that this zone shall apply mainly to publicly owned land.”5 In addition to this zoning district’s intended permitted uses, many residential, institutional, and commercial uses are allowed as conditional uses. The Kenai Municipal Code states “the conditional use permit procedure is intended to allow flexibility in the consideration of the impact of the proposed use on surrounding property and the application of controls and safeguards to assure that the proposed use will be compatible with the surroundings.”6 Surrounding development includes commercial and institutional to the north, west, and east, on properties with Kenai Spur Highway frontage. Residential development to the south of the subject is evident, as this area lacks highway frontage. Because of the subject’s highway frontage, conditionally allowed commercial use appears to be compatible with surrounding development. 5 Kenai Municipal Code, Chapter 14.20 Kenai Zoning Code, City of Kenai, Ordinance 2943-2017, effective May 5, 2017 6 Kenai Municipal Code, Chapter 14.20.150 Conditional Use Permits, City of Kenai, Ordinance 2943-2017, effective May 5, 2017 Overview Highest and Best Use as Vacant Page 52 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 29 Financially Feasible and Maximally Productive: As discussed, commercial uses are evident along the Kenai spur Highway. Proximity to Kenai’s commercial core further encourages commercial development. The subject’s zoning, and the requirement to obtain a conditional use permit increases risk; however, commercial uses as allowed under Kenai’s land use table for conditional uses conform with the neighborhood development pattern. Thus, analysis indicates commercial development represents the only permissible financial option that is physically possible. This type of development maximizes the return to the land. Thus, the highest and best of the appraised parcel, as vacant, is commercial. Highest and Best Use As Vacant Commercial Development Page 53 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 30 Property 2 Valuation The sales comparison approach is a market-based analysis that develops a land value estimate by analyzing and comparing similar land sales to the subject property. Our market research revealed sufficient market activity of land in Kenai and surrounding areas. Due to the imperfect nature of the market, we use a qualitative comparison technique that rate elements of comparison as superior, inferior, or similar. Explanation of the elements of comparison, and analysis of the primary land sales follows. The first step of the market analysis is to determine what elements of comparison cause land sale prices to vary. We found that location, frontage, clearing/grading, topography, size, utilities, and use (zoning) influence market behavior and the price paid for vacant land in Kenai. As discussed, the subject is zoned C, Conservation, which limits development potential. While certain commercial and residential uses are allowable with a conditional use permit, the extent of allowable development is less than the comparable properties’ zoning districts. Further, the requirement to file a conditional use permit increases property risk. Thus, Conservation zoning puts downward pressure on demand, requiring an adjustment to the comparables for their superior zoning characteristics. Regarding market conditions, Kenai’s land values remained relatively stable for the past 10 years, so we do not make an adjustment for time. Quantifying the identified adjustments is difficult due to the limited sale data; therefore, qualitative techniques are used to measure differences between the comparable sales and the subject. Importantly, the transactions offer similar highest and best use potential and are the best market data available. Researching the Kenai market for conservation zoned land sales revealed no transactions, requiring us to expand our search to include land in other zoning districts with similar utility. Listed on the following page are four transactions we rely upon to facilitate our comparative analysis. Additional details of the comparable land sales are retained on file. Overview Elements of Comparison Comparative Market Analysis Page 54 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 31 Comparable Land Sales No Location Zoning Sale Date Sale Price Size $/SF $/Ac. 5 West side of K Beach Road near Mile 19.5 None 9/16 $120,000 80,150 SF 1.84 Ac. $1.50 $65,217 6 Southwest corner of N. Forest Drive and Second Avenue CG 4/15 $83,000 52,272 SF 1.20 Ac. $1.59 $69,167 7 South side of K Beach Road near Mile 17.2 None 10/15 $404,500 223,114 SF 5.12 Ac. $1.81 $79,004 8 Northwest corner of Kleeb Loop and Turnbuckle Terrace Road C1 9/16 $160,000 97,139 SF 2.23 Ac. $1.65 $71,749 Southwest corner of Kenai Spur Highway and Rogers Road (Subject) C -- -- -- -- 178,596 SF 4.10 Ac. -- -- 1. Commercial (C) zoning by City of Soldotna Land Sale Map N Subject 8 5 6 7 Page 55 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 32 Comparative Land Analysis: Land Sale 5 is the September 2016 sale located on the west side of Kalifornsky Beach Road near Mile 19.5. This 1.84-acre (80,150 SF) lot sold for $120,000 or $65,217 per acre. Located outside of Kenai city limits, the rectangular-shaped lot was heavily treed at the time of sale with generally level topography. There is access from Kalifornsky Beach Road. Natural gas and electricity are available, however the site is not served by public water and sewer. The lot was purchased by the owner of the adjacent property to the north, which is developed with a veterinary clinic. By comparison, this sale is superior due to size differential. Further, lack of zoning allows for greater development potential and reduces risk. Overriding these superiorities is inferior location away from Kenai’s commercial core and lack of public water and sewer. Overall, Land Sale 5 is rated marginally inferior, indicating a unit value slightly greater than $65,217 per acre for the subject. Land Sale 6 is the April 2015 sale located on the southwest corner of N. Forest Drive and Second Avenue, just north of Kenai Spur Highway. This 1.20-acre (52,272 SF) site sold for $83,000 or $69,167 per acre. Zoned General Commercial (CG), the L-shaped site contained three lots, but was replatted into a single lot subsequent to the sale, gaining additional square footage due to vacated Coolidge Lane. The property was exposed to the market for approximately a year and a half, listed at $90,000. By comparison, this sale is rated superior in terms of use (zoning), size differential, and clearing/grading. Conversely, the site lacks direct Kenai Spur Highway frontage and is located slightly west of Kenai’s commercial core. After analysis, Land Sale 6 is rated marginally superior, indicating a unit value slightly less than $69,167 per acre for the subject. Land Sale 7 is the October 2015 sale located on the west side of Kalifornsky Beach Road near Mile 19.5. This 5.12-acre (223,114 SF) site sold for $404,500 or $79,004 per acre. Located outside of zoning districts, the rectangular-shaped site consisted of five lots, but was replatted into a four-lot site subsequent to the sale. The site was primarily cleared, level, and graded at the time of sale with sparse vegetation. There is access from Kalifornsky Beach Road at the northwest corner. Natural gas and electricity are available, however the site is not served by public water and sewer. The parcel was listed for over a year, originally at $439,000. We make a downward adjustment for clearing / grading. Further, lack of zoning allows for greater development potential and reduces risk. Partially offsetting these superiorities are lack of public water and sewer and a location away from Kenai’s commercial core. Overall, Land Sale 7 is rated Page 56 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 33 superior, indicating a unit value less than $79,004 per acre for the subject. Land Sale 8 is the September 2016 sale located on the northwest corner of Kleeb Loop and Turnbuckle Terrace Road, situated just north of Sterling Highway, 0.7± northeast of the “Y”. This 2.23-acre (97,139 SF) parcel sold for $160,000 or $71,749 per acre. Access is provided by Kleeb Loop, a paved frontage road of the Sterling Highway. Public electricity, natural gas, and telephone are available to the property, however public water and sewer are not connected. Reportedly, there is a 120-foot well on the property, but it is not sufficient to support a commercial operation. The property contained an older home site with several ancillary improvements, however the Broker indicated the seller would remove the structures. The property was exposed to the market for over 2.5 years, originally listed at $349,400 and reduced to $224,000. We make downward adjustments for superior site clearing, size differential and commercial zoning, which allows a wider array of permitted and conditional uses than the subject’s zoning. Conversely, an upward adjustment is required to account for a lack of public water and sewer. Overall, Land Sale 8 is rated superior, indicating a unit value less than $71,749 per acre. We analyzed the sale of the 1.87-acre (81,636 SF) AlaskaLanes property located just west of the subject fronting Kenai Spur Highway. The property was purchased from the City of Kenai for $450,000, with the land contributing to the entirety of the property value. The buyers intend to rehabilitate the improvements, which are in disrepair. Comparatively, this sale is superior in all respects, including size differential, use (zoning), clearing/grading, and direct access from Kenai Spur Highway. We analyze this sale due to locational similarities, but relegate it to secondary consideration due to the number of irregular factors involved in the transaction. Additional Data Considered Page 57 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 34 Reconciliation of Comparative Market Analysis: Presented below is a rating grid and analysis of the land sales used in comparative analysis. Land Sale $/Acre Rank Net Adjustment 7 $79,004 Superior 8 $71,749 Superior 6 $69,167 Marginally Superior Subject -- -- -- -- -- -- 5 $65,217 Marginally Inferior Before adjustments, the comparable land sales indicate a unit value range from $65,217 to $79,004 per acre. Land Sale 5 is rated marginally inferior indicating a unit value slightly greater than $65,217 per acre. Conversely, Land Sales 6 through 8 are rated superior indicating a unit value slightly less than $69,167 per acre. After comparative analysis and making the necessary adjustments, a unit value of $66,000 to $69,000 per acre is market-supported and develops the following. 4.10 acres × $66,000/acre = $270,600 4.10 acres × $69,000/acre = $282,900 Reconciliation and Conclusion of Land Value: Based on the foregoing, the market value via the sales comparison approach ranges from $271,000 to $283,000 after rounding. In conclusion, we correlate with an estimate of land value at $275,000, which approximates $67,000 per acre. Market Value Estimate – Proposed Tract D $275,000 Page 58 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 35 Chapter 5: Property 3 – Proposed Tracts A & B The appraised property is a vacant parcel on the southeast corner of Kenai Spur Highway and Walker Lane. We summarize the subject property in a summary format. The inserted exhibits and photographs that follow help illustrate our descriptive analysis. KPB Aerial Imagery As this is a proposed tract, we refer to the subject’s legal description as “Proposed Tracts A & B”. Location: Southeast corner of Kenai Spur Highway and Walker Lane, fronting north side of Lawton Drive, Kenai, Alaska Physical Address: 10095 Kenai Spur Highway, Kenai, Alaska Current Use: Vacant land Property Overview Legal Description Identification of Real Estate Appraised N Walker Lane Kenai Spur Highway Rogers Road Property 3 Page 59 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 36 Fee simple interest There are no sales of the property in the past three years. Analysis of land describes the characteristics that enhance or detract from its utility or marketability. We base the site description and analysis our appraisal inspection on June 15, 2017 and review of the proposed subdivision plat provided by the client, the KPB assessor map, and other available mapping. The following proposed plat and aerial imagery on the previous page assist in the description and analysis of the site. Proposed Subdivision Plat Parcel Shape and Land Area: Narrow parcel containing 5.80± acres (252,648± square feet) per proposed plat Vehicular Access: Information provided by the client indicates access via Walker Lane, paved, two-lane road Frontage and Exposure: 1,290± feet on Kenai Spur Highway and Lawton Drive, 150± feet on Walker Lane Topography: Generally level, near access grade Vegetation: Heavily treed with spruce and birch Property Rights Appraised Three-Year Sale History Site Description N Kenai Spur Highway Walker Lane Subject Page 60 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 37 Public Utilities: All public utilities available to parcel Zoning: C, Conservation Easements and Restrictions: None noted Encroachments: None Flood Hazard Conditions: Federal Emergency Management Agency (FEMA) Community Panel No. 02122C0140E, dated October 20, 2016, indicates the site is located in Zone D, an area in which flood hazards are undetermined, but possible. Environmental Considerations: The appraisers were not provided an environmental assessment. The existence of any hazardous material or other type of environmental contamination, which may or may not be present on the property, was not observed by the appraisers nor do the appraisers have any knowledge of the existence of such substances. A search of the Department of Environmental Conservation Contaminated Sites Database yielded no results. Our value conclusion assumes that the property is free of environmental and hazardous contaminants. Soil and Subsurface Conditions: A soil report was not provided to the appraisers. The soils are consistent with undeveloped land in the area and consists of a good gravel base. Site Improvements: None Site Utility: The parcel benefits from a corner location, Kenai Spur Highway frontage, availability of public utilities, and good gravel based soils Page 61 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 38 Property 3 Photographs Taken By: Alex Kleinke Date: June 15, 2017 Westerly view of Lawton Drive frontage Northerly view of path through center of parcel Page 62 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 39 Taken By: Alex Kleinke Date: June 15, 2017 Westerly view of north boundary of property Northerly view of Walker Lane frontage near southwest corner Page 63 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 40 Highest and Best Use Analysis Highest and best use is a market-driven concept rather than a subjective conclusion based on the experience of the appraiser or property owner’s needs. The Dictionary of Real Estate Appraisal (Sixth Edition) defines highest and best use as follows. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Physically Possible: The subject parcel contains 5.80± acres or 252,648± square feet. A corner location within Kenai’s commercial core, Kenai Spur Highway exposure, and availability of public utilities enhance commercial development potential. Thus, physical character enhances the potential for commercial use. Legally Permissible: Zoning is C, Conservation Zone, “intended to apply to areas which should be preserved primarily as open areas and as watersheds and wildlife reserves. Airport and related uses have been included in this zone to allow for the reservation of aircraft approach zones. It is intended that this zone shall apply mainly to publicly owned land.”7 In addition to this zoning district’s intended permitted uses, many residential, institutional, and commercial uses are allowed as conditional uses. The Kenai Municipal Code states “the conditional use permit procedure is intended to allow flexibility in the consideration of the impact of the proposed use on surrounding property and the application of controls and safeguards to assure that the proposed use will be compatible with the surroundings.”8 Surrounding development includes commercial and institutional to the north, west, and east, on properties with Kenai Spur Highway frontage. Residential development to the south of the subject is evident, as this area lacks highway frontage. Because of the subject’s highway frontage, conditionally allowed commercial use appears to be compatible with surrounding development. 7 Kenai Municipal Code, Chapter 14.20 Kenai Zoning Code, City of Kenai, Ordinance 2943-2017, effective May 5, 2017 8 Kenai Municipal Code, Chapter 14.20.150 Conditional Use Permits, City of Kenai, Ordinance 2943-2017, effective May 5, 2017 Overview Highest and Best Use as Vacant Page 64 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 41 Financially Feasible and Maximally Productive: As discussed, commercial uses are evident along the Kenai spur Highway. Proximity to Kenai’s commercial core further encourages commercial development. The subject’s zoning, and the requirement to obtain a conditional use permit increases risk; however, commercial uses as allowed under Kenai’s land use table for conditional uses conform with the neighborhood development pattern. Thus, analysis indicates commercial development represents the only permissible financial option that is physically possible. This type of development maximizes the return to the land. Thus, the highest and best of the appraised parcel, as vacant, is commercial. Highest and Best Use As Vacant Commercial Development Page 65 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 42 Property 3 Valuation The sales comparison approach is a market-based analysis that develops a land value estimate by analyzing and comparing similar land sales to the subject property. Our market research revealed sufficient market activity of land in Kenai and surrounding areas. Due to the imperfect nature of the market, we use a qualitative comparison technique that rate elements of comparison as superior, inferior, or similar. Explanation of the elements of comparison, and analysis of the primary land sales follows. The first step of the market analysis is to determine what elements of comparison cause land sale prices to vary. We found that location, frontage, clearing/grading, topography, size, utilities, and use (zoning) influence market behavior and the price paid for vacant land in Kenai. As discussed, the subject is zoned C, Conservation, which limits development potential. While certain commercial and residential uses are allowable with a conditional use permit, the extent of allowable development is less than the comparable properties’ zoning districts. Further, the requirement to file a conditional use permit increases property risk. Thus, Conservation zoning puts downward pressure on demand, requiring an adjustment to the comparables for their superior zoning characteristics. Regarding market conditions, Kenai’s land values remained relatively stable for the past 10 years, so we do not make an adjustment for time. Quantifying the identified adjustments is difficult due to the limited sale data; therefore, qualitative techniques are used to measure differences between the comparable sales and the subject. Importantly, the transactions offer similar highest and best use potential and are the best market data available. Researching the Kenai market for conservation zoned land sales revealed no transactions, requiring us to expand our search to include land in other zoning districts with similar utility. Listed on the following page are four transactions we rely upon to facilitate our comparative analysis. Additional details of the comparable land sales are retained on file. Overview Elements of Comparison Comparative Market Analysis Page 66 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 43 Comparable Land Sales No Location Zoning Sale Date Sale Price Size $/SF $/Ac. 3 East side of Kenai Spur Highway at corner of Ross Street LC 7/16 $75,000 326,700 SF 7.50 Ac. $0.23 $10,000 4 South side of Lawton Drive, just east of Walker Lane RS 8/14 $225,000 591,980 SF 13.59 Ac. $0.38 $16,556 6 Southwest corner of N. Forest Drive and Second Avenue CG 4/15 $83,000 52,272 SF 1.20 Ac. $1.59 $69,167 7 South side of K Beach Road near Mile 17.2 None 10/15 $404,500 223,114 SF 5.12 Ac. $1.81 $79,004 Southeast corner of Kenai Spur Highway and Walker Lane (Subject) C -- -- -- -- 252,648 SF 5.80 Ac. -- -- Land Sale Map N Subject 6 7 3 4 Page 67 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 44 Comparative Land Analysis: Land Sale 3 is the July 2016 sale located on the east side of Kenai Spur Highway near Mile 5 at Ross Street. This 7.50-acre (326,700 SF) parcel sold for $75,000 or $10,000 per acre. Zoned Limited Commercial (LC), the trapezoidal-shaped parcel is heavily treed and approximately 50% inundated with low-lying wetlands per KPB Wetland Mapper. According to the Broker, the property is dry due to the State rerouting drainage two years ago. Dual access is provided by Kenai Spur Highway, a paved, two-lane highway, and Ross Street, a gravel road. Natural gas and electricity are at the parcel. The Broker stated the buyer had no immediate plans to develop the property, and intended to hold for future commercial development. The parcel was listed for sale for most of the last five years, originally at $129,000 before dropping to $79,900. We make a downward adjustment for zoning. Conversely, we make upward adjustments for inferior location away from Kenai’s commercial core, and lack of public water and sewer, which increases development costs. Overall, Land Sale 3 is rated inferior, indicating a unit value greater than $10,000 per acre for the subject. Land Sale 4 is the August 2014 sale located on the south side of Lawton Drive, just east of Walker Lane. This 13.59-acre (591,980 SF) parcel sold for $225,000 or $16,556 per acre. Located immediately south of the subject in a Suburban Residential (RS) zone, the irregular- shaped parcel is heavily treed. Riverine wetlands encroach onto the east boundary of the parcel. Access is provided by Lawton Drive, a paved, two-lane road. The Broker indicated public water, sewer, electricity, and telephone are available to the property. The parcel was exposed to the market for 291 days, originally listed at $295,000. We make a downward adjustment for superior RS zoning, which allows a wider array of permitted and conditional uses than the subject’s zoning. Conversely, upward adjustments are required for size differential and to account for a lack of highway frontage / exposure, which reduces demand from commercial users. Overall, Land Sale 4 is rated inferior, indicating a unit value greater than $16,556 per acre. Land Sale 6 is the April 2015 sale located on the southwest corner of N. Forest Drive and Second Avenue, just north of Kenai Spur Highway. This 1.20-acre (52,272 SF) site sold for $83,000 or $69,167 per acre. Zoned General Commercial (CG), the L-shaped site contained three lots, but was replatted into a single lot subsequent to the sale, gaining additional square footage due to vacated Coolidge Lane. The property was exposed to the market for approximately a year and a half, listed at $90,000. By comparison, this sale is rated superior in terms of use (zoning), size differential, and clearing/grading. Conversely, the site lacks direct Kenai Spur Page 68 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 45 Highway frontage and is located slightly west of Kenai’s commercial core. After analysis, Land Sale 6 is rated superior, indicating a unit value slightly less than $69,167 per acre for the subject. Land Sale 7 is the October 2015 sale located on the west side of Kalifornsky Beach Road near Mile 19.5. This 5.12-acre (223,114 SF) site sold for $404,500 or $79,004 per acre. Located outside of zoning districts, the rectangular-shaped site consisted of five lots, but was replatted into a four-lot site subsequent to the sale. The site was primarily cleared, level, and graded at the time of sale with sparse vegetation. There is access from Kalifornsky Beach Road at the northwest corner. Natural gas and electricity are available, however the site is not served by public water and sewer. The parcel was listed for over a year, originally at $439,000. We make a downward adjustment for clearing / grading. Further, lack of zoning allows for greater development potential and reduces risk. Partially offsetting these superiorities are lack of public water and sewer and a location away from Kenai’s commercial core. Overall, Land Sale 7 is rated superior, indicating a unit value less than $79,004 per acre for the subject. Reconciliation of Comparative Market Analysis: Presented below is a rating grid and analysis of the land sales used in comparative analysis. Land Sale $/Acre Rank Net Adjustment 7 $79,004 Superior 6 $69,167 Superior Subject -- -- -- -- -- -- 4 $16,556 Inferior 3 $10,000 Inferior Before adjustments, the comparable land sales indicate a unit value range from $10,000 to $79,004 per acre. Land Sales 3 and 4 are rated inferior indicating a unit value greater than $16,556 per acre. Conversely, Land Sales 6 and 7 are rated superior indicating a unit value less than $69,167 per acre. After comparative analysis and making the necessary adjustments, a unit value of $40,000 to $45,000 per acre is market-supported and develops the following. 5.80 acres × $40,000/acre = $232,000 5.80 acres × $45,000/acre = $261,000 Page 69 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 46 Reconciliation and Conclusion of Land Value: Based on the foregoing, the market value via the sales comparison approach ranges from $232,000 to $261,000. In conclusion, we correlate with an estimate of land value at $250,000, which approximates $43,000 per acre. Market Value Estimate – Proposed Tracts A & B $250,000 Page 70 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 47 Assumptions and Limiting Conditions This appraisal is subject to the following assumptions and limiting conditions. No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Titles to the properties are assumed to be marketable unless otherwise stated. The properties are appraised free and clear of all liens or encumbrances unless otherwise stated. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. All maps, plot plans, and other illustrative material are believed to be accurate, but are included only to help the reader visualize the properties. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. It is assumed the properties are in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. Possession of this report, or a copy thereof, does not carry with it the right of publication. The appraisers, by reason of this appraisal, are not required to give consultation or testimony or to be in attendance in court with reference to the properties in question unless arrangements have been previously made. Neither all nor any part of the contents of this report shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraisers. The existence of any hazardous material or other type of environmental contamination, which may or may not be present on the properties, was not observed by the appraiser nor does the appraiser have any knowledge of the existence of such substances. However, the presence of these substances may affect the value of the properties. Therefore, the client is urged to retain an environmental assessment for discovery and evaluation. Page 71 of 276 17-3078: Three Properties in Lawton Acres, Kenai, Alaska MacSwain Associates LLC 48 Extraordinary Assumption This appraisal is subject to the following extraordinary assumption. It is an extraordinary assumption of the appraisal of Properties 2 and 3 that they will be subdivided and the plat will be approved by the Kenai Peninsula Borough. Page 72 of 276 MacSwain Associates LLC 4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503 Appraiser: Steve MacSwain, MAI Member of Appraisal Institute - No. 5700 State of Alaska, Certified General Real Estate Appraiser - No. 42 Professional Experience: 1986 to Present - MacSwain Associates LLC 1976 to 1986 - Appraisal Company of Alaska - President 1970 to 1975 - Real Estate Services Corporation – Appraiser 1969 to 1970 - State of Alaska Department of Highways - Right of Way Agent Real estate appraiser and consultant of all property types throughout Alaska including commercial, industrial, subdivisions and special-purpose properties. Appraisals have been performed for financing, leasing, insurance, condemnation, taxation, property damages, investment analysis, and buy-sell decisions. Appraisals include valuation of both real property and business enterprises. Professional experience totals 45 years. Education: Bachelor of Business Administration, Finance (1969), University of Alaska Fairbanks Appraisal Education: The following is a list of completed appraisal courses and seminars. 2017 – Residential & Commercial Valuation of Solar by the Appraisal Institute 2017 – Right of Way Acquisition for Pipeline Projects by the International Right of Way Association 2016 – Uniform Standards of Professional Appraisal Practice – Update by the Appraisal Institute 2015 – Litigation Appraising: Specialized Topics and Applications by the Appraisal Institute 2015 – Business Practices and Ethics by the Appraisal Institute 2013 – Complex Litigation Appraisal Case Studies by the Appraisal Institute 2013 – Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) by the Appraisal Institute 2012 – Appraisal Curriculum Overview by the Appraisal Institute 2010 – Reviewing Appraisals in Eminent Domain by the International Right of Way Association 2010 – Commercial Appraisal Engagement and Review Seminar for Bankers and Appraisers by the Appraisal Institute 2009 – The Appraiser as an Expert Witness: Preparation and Testimony by the Appraisal Institute 2009 – Attacking and Defending an Appraisal in Litigation by Whitmer Education 2008 – Uniform Standards of Professional Appraisal Practice by the Appraisal Institute 2007 – Business Practices and Ethics by the Appraisal Institute 2007 – Eminent Domain Law for Right of Way Professionals by the International Right of Way Association 2007 – Appraisal Review for Federal Aid Programs by the International Right of Way Association 2007 – Analyzing Operating Expenses by the Appraisal Institute 2007 – Forecasting Revenue by the Appraisal Institute 2007 – Case Studies in Highest and Best Use by the Appraisal Institute 2002 – Uniform Standards for Federal Land Acquisitions: Practical Applications for Fee Appraisers by the Appraisal Institute 2002 – Legal Aspects of Easements by the International Right of Way Association 1969-2001: Numerous appraisal classes pertaining to principles, income capitalization, cost analysis, sale comparison approach, and highest and best use analysis by the Appraisal Institute, Society of Real Estate Appraisers, International Right-of-Way Association, International Association of Assessing Officers, and Marshall Valuation Service Page 73 of 276 Membership and Organizations: Member of Appraisal Institute – No. 5700 Member of International Right of Way Association Member of Building Owners and Managers Association (BOMA), Anchorage Public Service: Past Chairman of the State Board of Certified Appraisers Past member of Board of Equalization, Municipality of Anchorage Past member of National Experience Review Committee of the Appraisal Institute Past member of Regional Ethics and Counseling Panel of the Appraisal Institute Past president of Alaska Chapter 57 of the Appraisal Institute Significant Assignments: Appraised the Trans-Alaska Pipeline System, an 800-mile common carrier crude oil pipeline from Prudhoe Bay to Valdez, operated by Alyeska Pipeline Service Company. Appraised Calais Company, Inc., a real estate holding company consisting of 39 commercial parcels in Anchorage. Principal real estate consultant and expert witness for all lands affected by the Exxon Valdez oil spill. Project involved over 2,000,000 acres of remote land and nearly 2,000 private property owners. Appointed as a representative of a three-member panel that analyzed and valued over 1,000,000 acres and 8,000 parcels for the Mental Health Lands Settlement. Contract assessor for the North Slope Borough, Kodiak Island Borough, City of Nome, and the City of Valdez. Represented Seibu Alaska, Inc. (Alyeska Resort and Alyeska Prince Hotel) in preparing of their property tax appeal with the Municipality of Anchorage that resulted in a $65 million reduction in assessed value. Appraised submerged tideland parcels and wetlands parcels located in Womens Bay on Kodiak Island for the purpose of an exchange between Koniag, Inc. and U.S. Fish and Wildlife Service Appraised Common Carrier Pipeline right-of-ways leased and operated by BP Transportation Alaska and ConocoPhillips Alaska. Appraised 3,600 acres consisting of the former Adak Naval Air Station and Submarine Base conveyed to the City of Adak and the State of Alaska. Appraised and/or provided consulting services on properties throughout Alaska including numerous financial institutions, Native corporation lands, and real estate holding companies both public and private. Expert Witness Experience: Steve MacSwain is qualified as an expert witness in both the United States Federal Court and the State of Alaska Superior Court. Steve has testified as an expert witness in State and Federal courts. In addition, Steve has testified as expert witness in numerous Alaskan municipal tax courts, public hearings, and depositions on matters related to real property. Arbitrator Experience: Appointed a Master by the Superior Court of Alaska and Municipality of Anchorage to serve as an arbitrator in determining just compensation. Page 74 of 276 'Vttf or «1lt~ a Pa~~ e~ «11'tli a Fu.tfl.l"e " 210 FidalgoAve. Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax : (907) 283-3014 www.kenai .city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Coun 1 Paul Ostrander, City Manager ~ Mary L. Bondurant -Airport Manag July 17, 2017 Ordinance 2968-2017-Lawton Acres The above ordinance was placed on the Airport Commission agenda for discussion and recommendation at the regularly scheduled July 13 , 2017 meeting. At the direction of Chair Feeken, Co uncilm an Knackstedt gave Commission background information on the Lawton Acres property. After review of the ordinance and general discussion , Airport Commission made and passed th e two recommendations below: I. Move to recommend that Lawton Acres not be sold to the City. 2. Move to reco mmend that Council recommend Planning and Zoning look at rezoning property for commercial u se. Both reco mmendation s were passed unanimously. Please co ntact me if you have any question s . Page 75 of 276 'Vtff~ «J/t/i tl Pair~ e~ «J/t/i tl Fu.t~ II 210 FidalgoAve, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager -P. C: j? Terry Eubank , Fi nance Director 1 [_ July 26, 2017 Fund Balance Policy impact of proposed Lawton Acres purchase, Ordinance 2968-20 17 . The purpose of this memo is to respond to Counci lman Molloy's inquiry rega rding the proposed transaction to remove the Federal Aviation Administration's (FAA's) deed restriction from Lawton Acres by the City's General Fund and its compl iance with the General Fund 's Fund Balance Policy. Facts 1 . The adopted FY2018 Budget projects an ending General Fund , fund balance of $10,093 ,449. $624,937 is restricted for athletics, $6 ,868,847 is com m itted , including a $1,000,000 commitment for capita l improvements , $2 ,382 ,699 is assigned and $216,966 is unass igned and more t han the policy's max imum limit. 2 . FY2018 ending General Fund , fund balance is $1 ,869,487 above the policy min imum of $8 ,223,962. Th is amount is a vailable for short-term operational needs and non-recurring ex penditures. 3 . The policy min imum includes a commitment of $1,000 ,000 for future capital improvements. 4 . In total, projected ending fund balance includes $2 ,869,487 which is av ailable for short- term operational needs and non-rec urring expenditures . This is a combination of the amount in excess of the policy 's minimum , $1 ,869,487 and the $1 ,000,000 committed by Council for future capital improvements 5 . The purchase of Lawton Acres would be a non-recur ring e x penditure of the General Fund. 6 . The appraised amount to remove the FAA deed res t riction from the 16.49 acres known as Lawton Acres is $600 ,000 . Analysis 1. The use of $600,000 for the non-recurring purpose of removing the FAA deed restriction on Lawton Acres would not violate the C ity's Genera l Fund , Fund Balance Policy . 2 . The use of $600 ,000 for the non-recurring purpose of removing the FAA deed restriction on Lawton Acres would reduce fund balance a va ilable for future non-recurring and operational needs by $600 ,000 to $2 ,269,487. Page 76 of 276 "tftllate «1/t'1 a PaJ'~ Ct'ti «1/t'1 a h.t~ 11 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax : (907) 283-3014 www. kenai. city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ?. O . July 26, 2017 Lawton Acres General Fund Purchase -Financial analysis and potential impacts on future expenditures of the City Pursuant to the City Council request at its meeting of July 5, 2017, this memo will provide a financial analysis and discuss potential impacts on future City expenditures based on the proposed transaction as outlined in Ordinance 2968-2017 in which the General Fund would pay the Airport Fund $600,000 to remove the FAA deed restriction from the 16.49 acres know as Lawton Acres . Financial Analysis The financial analysis will examine the impact on the City's General Fund and on the C ity's Airport Fund . Background Information 1. Pursuant to KMC 7 .30. 010( c ), the proceeds from the sale must be deposited in the Airport Land Sale Permanent Fund (ALSPF). Once a component of the ALSPF , the use of the funds will be subject to restrictions. 2. Pursuant to KMC 7.30 .010(b ), the ALSPF is a restricted fund , created by the City Council , subject to "Deed restrictions , Federal regulations and grant assurances [that] require that airport funds be used for the use and benefit of the Kenai Municipal Airport." 3. Pursuant to KMC 7.30.010(d ), "Money placed in the Airport Land Sale Permanent Fund shall not be available for use by the City for any purpose other than for investments in accordance with City ordinances". Page 77 of 276 Page 2 of 4 Lawton Acres General Fund Purchase -Financial Analysis and Impacts 4. Future amendment of KMC 7.30.010 would be lim ited by the federal regu lations and FAA grant assurances noted in KMC 7.30 .010(b). 5 . As written , Ordinance 2968-2017 would require placement of a deed restriction on the property known as Lawton Acres, permanently limiting future development and/ or sale of the property. 6. The current appraisal of the property included an assumption the property would remain zoned conservation and would be sold as a single 16.49 acre parcel. 7. The appraiser determined that the highest and best use of the property as vacant is commercial development after subdiv ision . 8. The City's General Fund has sufficient reserves to complete the transaction and maintain compliance w ith its Fund Balance Policy. General Fund Financial Impact The City 's General Fund has the financial capacity to complete the transaction as described in Ordinance 2968 -2017 . If adopted , the $600,000 that will be transferred to the ALSPF will no longer be available to the General Fund for any purpose. To put it in terms of the mill rate , $600,000 is equivalent to a one-year mill rate increase of 0.6845 mills . The impa ct of an increased mill rate of 0.6845 would be $68.45 on $100,000 of taxable property. The General Fund , FY2018 ending fund balance is projected to be $10,093,449 . The amount restricted for athletics is $624 ,937; $6 ,868,847 is committed , including a $1 ,000,000 commitment for cap ital improvements ; $2 ,3 82 ,699 is assigned ; $216,966 is unassigned and more than the policy 's ma ximum limit. The m inimum leve l of fund balance per the pol icy is $8,223,962 and includes $1,000,000 committed for future capital improvements . The policy 's ma ximum limit is $9,8 76,483. The difference between the policy min imum and ma ximum , $1 ,869,487, is the amount ava ilable for future short-term operational needs and non-recurring expenditures . Combine this amount with the committed $1,000 ,000 for future capital projects and there is $2 ,869,487 available for future short-term operational needs, non-recurring e xpenditures and future capital projects. Reducing available funds by $600,000 will impact the amount or timing of other City capital projects and the City's ability to meet short-term operational shortfalls. Placement of a deed restriction that wi ll permanently restrict the use and de velopment of the property will limit its utility and negatively impact the financial value of the property once placed. The loss of future property and sales ta x revenues will negatively impact the finances of the General Fund . Airport Fund Financial Impact The Airport Fund will be the rec ipient of $600 ,000, however only the earnings on these funds , once invested , will be available for the cap ital or ope rational needs of the airport. The percent of market value methodology utilized by the ALSPF makes 5% of invested funds available annually for op erations and capital needs . Once deposited in the ALSPF, the $600 ,000 will return $30 ,000 annually for use by the Airport. Page 78 of 276 Page 3 of 4 Lawton Acres General Fund Purchase -Financial Analysis and Impacts As noted by the appraisal, the sale of the parcel as it is currently zoned and as a single 16.49 acre track does not represent the highest and best use of the property. Subdivision prior to selling the property for commercial development would generate the highest financial return to the Airport . Additionally, sale of the property will eliminate the future opportunity of the Airport to lease the property. Leasing under current City code provisions which set lease rates at 8% of the property value, would generate more revenue for Airport operations and projects than the one-time receipt of $600 ,000 . Lease revenue can be used for airport operations or capital projects and is not limited to the restrictions of the ALSPF. In summary, despite receiving $600,000 in proceeds , only $30 ,000 annually will be available to the Airport for operations and cap ital projects, and the Airport will lose the ability to lease the property in the future. Additionally, the Airport will not benefit from the future appreciation of value , and the sales price of $600 ,000 does not represent the highest economic value the Airport could receive based on the parcel size and current zoning . Potential Impacts to Future City Expenditures During the preparation of the FY2018 budget, administration committed to the creation of a five year capital plan . This plan will identify and prioritize capital projects throughout the City. The General Fund will be responsible for the rehabilitation of streets, deferred maintenance on City buildings, and the construction of new or expansion to existing City facilities . For FY2018 budget , $631 ,500 of General Fund money was appropriated for capital projects . To date, administration has identified a number of significant needs of the City but until the capital plan is completed , the extent of those needs and an estimate of total expenditures required is un k nown . What we do know is that the $2 ,869,487 currently available above the General Fund minimum level of fund balance is not sufficient for the foreseeable needs of the City. The Bluff Erosion project is a well-known need of the City and will require additional funding from the City. The total City match amount required for the project is variable , dependent on the total cost of the project, the amount of in-kind contribution the City provides , and if there are State or Federal resources or funds that can be used in lieu of City dollars. However, the City could be responsible for as much as $6 ,000,000 in additional funds to meet grant obligations . This would almost certainly require that the City bond for the project. However, money that can be appropriated towards the project from the City 's fund balance reduces the amount of debt the City would incur. Beyond the Bluff Erosion proje ct, some projects and /or expenditures that have been identified and will need to be addressed in the near future include : 1) Wildwood Drive rehabilitation -W ildwood Drive is badly in need of a complete rehabil itation . The Current road surface is significantly worn and has been patched annually fo r many years . The cost of this project is un known , however, in 2008 , engineer's estimates for the project, depending on the approach , were between $790 ,000 and $1,400,000 . 2) Aliak Drive -Aliak Drive is being impacted by a recurring sinkhole in one area. This is almost certainly a result of a failure of the storm water system underlying the road . Page 79 of 276 Page 4 of 4 Lawton Acres General Fund Purchase -Financial Analysis and Impa cts Inve stigation and repair of this road and the associated infrastructure is needed . High water tables, significant traffic, and the unknown status of the storm water system makes estimating the cost of this project without significant additional information difficult. 3) General road repair and maintenance -A cost estimate for needed repair and maintenance of City streets over the next five years is a component of the administration 's efforts to create a five year capital plan . While not yet quantified , these needs are significant. In the past, State grant funding would have provided for much of this work , however, grant funding from the State in the near future seems unlikely. 4) Cemetery expansion -$250 ,000 was appropriated for Phase I of the cemetery expansion in FY2018. Additional work will be needed to complete this project in the coming years. Preliminary engineer's estimates for completion of this project exceeded $600 ,000 . 5) Kenai City Dock -The concrete superstructure and the steel pile caps at the dock have either fa iled or are failing. Additionally, cracks are present in the concrete deck at many locations and guardrail connections need repair. The engineer's estimate to complete this work is $162,000. 6) Police and Fire Department -For FY2018, the identified needs of the Police and Fire Department totals $397,000. This includes new patrol cars, self-contained breathing apparatus , and renovations and upgrades to the public safety building. In these uncertain economic times, the reality is that some of our fund balance may also be needed for short term operational needs, leaving less fund balance available for identified non- recurring (capital) needs . Our fund balance policy requires a budget with financial projections showing recurring expenditures , for which fund balance is the revenue source, will be supported by revenue s, other than the use of fund balance , within three fiscal years , inclusive of th e budget year being adopted, and at no time sha ll fund balance drop below the policy 's minimum amount. With less support from the State, the City will need t o rely more heavily on its fund balance and possibly additional tax revenues , and I or the is suance of debt to meet capital needs. Th e use of $600 ,000 to remove the FAA deed re striction from the 16.49 acres know as Lawton Acres will potentially limit the City's ability to meet future capita l needs with existing fund balance , requiring greater reli an ce on bond sa le s or additional ta x revenue s to bridge the gap. Page 80 of 276 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: City Clerk CITY OF KENAI ORDINANCE NO. 2971-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE SECTION 1.15.060 - MOTIONS, TO PROVIDE FOR DEFERRING A MOTION OR AGENDA ITEM BEYOND THE NEXT MEETING. WHEREAS, Kenai Municipal Code 1.15.120- Rules of Order, provides that Robert’s Rules of Order Newly Revised, 11th Edition, governs unless superseded by City Charter or ordinance; and, WHEREAS, according to Robert’s Rules of Order, based on the City’s meeting schedule, a motion, “to postpone to a certain time,” limits the timeframe for postponement to the end of the next meeting; and, WHEREAS, making available a special rule of order to provide for deferring a motion or agenda item beyond the next meeting is in the best interest of the City to provide for additional public process in such cases where the Council seeks input from a Committee, Commission, or the Council on Aging or other situations as they arise. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance. Section 2. Amendment of Section 01.15.060 of the Kenai Municipal Code: That Kenai Municipal Code, Section 01.15.060 – Motions, is hereby amended as follows: (a) A motion to amend an amendment shall be in order, but a motion to amend an amendment to an amendment shall not be entertained. (b) No appeal from any decision of the presiding officer shall be entertained unless it is seconded, and no other business shall be in order until the question on appeal has been decided. The question on appeal is not debatable and shall be put as follows: “Shall the decision of the Chair stand as the judgment of the Council?” It shall be deemed to be decided in the affirmative unless a majority of the votes given are to the contrary. (c) Any member may make a parliamentary inquiry of the Chairman at any time during the meeting. (d) Any member may make a point of order without a second at any time. The presiding officer may speak to points of order in preference to other members, and shall decide all such questions, subject to appeal to the Council by motion duly seconded; and no other business shall be in order until the question on appeal has been decided. (e) When the previous question is moved by any member, all debate on the main question shall be suspended immediately and the presiding officer shall put the question to Page 81 of 276 Ordinance No. 2971-2017 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] the following form: “The previous question is moved on (specifying the motion on which the previous question is demanded). As many as are in favor of ordering the previous question will so indicate.” If four (4) members vote affirmatively, the affirmative has it, the previous question is ordered, and the Chairman will proceed immediately to put to a vote the question on which the previous question was ordered. If less than four (4) members so indicate, the negative has it, the motion is lost, and the question reverts to the immediately pending question, which is again open to debate and amendment as if the previous question has not been demanded. (f) The presiding officer shall put all questions in the order in which they are moved unless a subsequent motion shall be previous in its nature, except in naming sums and fixing times, the largest sum and the longest time shall be put first. (g) When a vote has been taken, any member who voted on the prevailing side may move a reconsideration thereof at the same meeting or at the next succeeding meeting whenever motions are in order, provided that the subject matter has not passed out of the control of the Council. (h) A motion to reconsider requires four (4) votes; if such motion thus prevails, the subject shall be open to debate and amendment in the same manner as the original question. Debate on motions to reconsider shall be limited to twenty-five (25) minutes, and no member shall speak more than five (5) minutes. No motion shall be reconsidered more than once. (i) A motion must be reduced to writing if the presiding officer so requires or any member so demands, and no other motion shall be entertained until reasonable time (not over ten (10) minutes) if afforded for compliance with this rule. (j) Any previous vote may be rescinded by vote of four (4) members of the Council at any time, provided the subject matter has not passed out of the control of the Council. (k) All motions shall require a second, unless otherwise provided. (l) Any member may require the division of a question when the sense of it will admit. (m) When a question is under debate, the presiding officer shall receive any of the following motions but no other: (1) To adjourn; (2) To recess; (3) To raise a question of privilege; (4) To call for the order of the day, or the regular order; (5) To lay on the table; (6) For the previous question; (7) To limit or extend limits of debate; (8) To postpone to a certain time; (9) To refer; (10) To postpone indefinitely. Page 82 of 276 Ordinance No. 2971-2017 Page 3 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] (n) When one of the above motions has been made, none of the others inferior to it in the order in which they stand above shall be made; and in proceeding to vote, motions pending shall be put in the order of their rank as above arranged. The first seven (7) are not subject to debate. A motion to postpone to a certain time, refer, amend, or to postpone indefinitely may be amended; the previous question may be demanded before an amendment, which motion shall be decided without debate. A motion to adjourn shall always be in other provided that business of a nature to be recorded in the journal has been transacted since any previous motion to adjourn has been defeated. No motion or proposition of a subject different to that under consideration shall be admitted under color of an amendment. When a matter has been especially assigned to be taken up at a fixed time, or at a certain stage of proceedings, such matter shall, at the appointed time, or at any time subsequent thereto, be in order upon the call of any member, and take precedence over all of the business. (o) After a motion is stated or read by the presiding officer, it shall be deemed to be in the possession of the Council, and shall be disposed of by vote, but the mover may withdraw it at any time before decision or amendment, by consent of the second. (p) The motion “to postpone to a certain time” is the motion by which action on a pending question or agenda item can be deferred beyond the next meeting to a definite day, meeting or hour, or until after a certain event. Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of August, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, Acting City Clerk Introduced: July 5, 2017 Enacted: August 2, 2017 Effective: September 3, 2017 Page 83 of 276 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: FROM: Jamie Heinz, Acting City Clerk DATE: June 30, 2017 SUBJECT: Ordinance No. 2971-2017 – Postponing to Time Certain The City of Kenai uses Robert’s Rules of Order which prescribes certain rules for certain motions unless superceded by local regulation. According to Robert’s Rules of Order, based on the City’s meeting schedule, a motion, “to postpone to a certain time,” limits the timeframe for postponement to the end of the next meeting. From time to time, situations arise in which the ability to defer a motion beyond the next meeting would be beneficial to Council and public process. Referring an item to a Committee, Commission, or Council on Aging to seek additional input when their meeting falls after the next City Council meeting is a good example of when this type of deferment would be beneficial. The amendment to Kenai Municipal Code, as presented in Ordinance No. 2971-2017 would provide for the deferment of a motion beyond the end of the next meeting. Your consideration is appreciated Page 84 of 276 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2972-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROPRIATING FUNDS IN THE AIRPORT FUND, ACCEPTING A GRANT FROM THE FEDERAL AVIATION ADMINISTRATION AND APPROPRIATING FUNDS IN THE AIRPORT EQUIPMENT CAPITAL PROJECT FUND FOR THE PURCHASE OF SNOW REMOVAL EQUIPMENT (SRE)-LOADER WITH ATTACHMENTS AND A MULTI-PURPOSE BROOM. WHEREAS, the 1993 966 CAT loader is inoperable and requires excessive and costly repairs; and, WHEREAS, the multipurpose broom replaces the oldest SRE (1992 broom) on the Airport which consistently requires expensive maintenance repairs ; and , WHEREAS , new upgraded and reliable equipment will improve the Airport's capability to effectively address snow and ice conditions ensuring safe aircraft operations with dependable equ ipment; and, WHEREAS , SRE is FAA eligible and grant funds are available and the City has been awarded a grant totaling $ 1,088, 759 comprised of 93 . 75% FAA $ 1,020, 712 and requiring a 6.25% local share of$ 68,047; and, WHEREAS, the State of Alaska Department of Transportation, awarded a competitive bid for equipment that meets our specifications ; and, WHEREAS , KMC 7.15.070 (b) (4) allows for supplies , materials, equipment or contractual services purchasable under the contract of another governmental agency in which contract the City is authorized to participate. WHEREAS , the Federal Aviation Administration has approved the procurement process utilizing State of Alaska Cooperative Fleet Purchasing Agreement. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. Form: That this is a non-code ordinance. Section 2. That the City Manager is authorized to accept grant funding in the amount of $1 ,020,712 from the Federal Aviation Administration and to execute a grant agreement and to expend grant funds to fulfill the purpose and intent of this ordinance. New T ext U nd erlin ed ; [DELETED TEXT BRACKETED] Page 85 of 276 Ordinance No. 2972-2017 Page 2 of 2 Section 3 . That the estimated revenues and appropriations be increased as follows: Airport Fund : Increase Estimated Revenues - Appropriation of Fund Balance Increase Appropriations: $68.047 Transfer to Airport Equipment Capital Project Fund $68.047 Section 4. That the estimated revenues and appropriations be increased as follows: Airport Equipment Capital Project Fund: Increase Estimated Revenues: FAA Grant Transfer from Airport Fund Increase Appropriations: Machinery & Equipment $1,020,712 68,047 $1.088 ,759 $1 .088.759 Section 5 . That the City Manager is authorized to execute a purchase order to Yukon Equipment for$ 693,447 for a OSHKOSH H-Series multi-purpose broom and a purchase order 'to NC Machinery for$ 373,964 for a Caterpillar 966M Wheel Loader uti lizing the State of Alaska Fleet Purchasing Agreement. Section 5. Severability : That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any co urt of competent jurisdiction , such judgment shall be confined in its operation to the part, provision , or application directly involved in all controversy in which this judgment shall have been rendered , and shall not affect or impair the validity of the remainder of thi s title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision , or application. Section 6. Effec ti ve Date: That pursuant to KMC 1.15.070 (f), this ordinance shall take effect upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 2nd day of August, 2017. ATTEST: Jamie Heinz, Acting City Clerk Approved by Finance ~ BRIAN GABRIEL SR., MAYOR Introduced: July 5, 2017 Enacied :Augu~2.2017 Effective: August 2, 2017 New Text Underlined; [DELETED TEXT BRACKETED) Page 86 of 276 'Vttl'~ «1/th a Pa.s'~ e~ «1/th a Fu.tal"e JJ 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Te lephone: (907) 283-7535 I Fax : (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Coun ii Paul Ostrander, City Manager2 Mary L. Bondurant -Airport Manag June 27, 2017 Ordinance 2972-2017 -FAA Grant for Snow Removal Equipment The FY17 Airport Capital Improvement Plan (ACIP) identified the replacement of snow removal equipment (SRE) and the FAA received clearance from the Office of the Secretary of Transportation (OST) to move forward with the grant process on June 26, 2017. A grant application was sent to the FAA on June 26, 2017, totaling $1,088,759 for a new loader and multi-purpose broom. The SRE cost of $1,088 , 759 will be paid with 93. 75% FAA funding of $1,020, 712 and a 6.25% local share of$ 68,047. A grant offer is anticipated prior to the August 2 , 2017 Council meeting . The multi-purpose broom replaces the oldest piece of SRE (1992 broom) that consistently requires extensive and costly repairs and the loader replaces a broke-down 1993 loader that is 24 years old and repairs are not cost effective. This SRE is crucial to the airport's capability to perform snow and ice control with dependable equipment to ensure safe aircraft operations. Due to the cancellation of the second Council meeting in July, this ordinance is being introduced at the July 5th meeting, to be adopted at the August 2, 2017 meeting to expedite the ordering of the equipment for delivery this winter. If you have any questions , please contact me. Attachment: Page 87 of 276 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2017-48 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA , AWARDING AN AGREEMENT FOR CONSTRUCTION OF KENAI ANIMAL CONTROL SHELTER FLOORING RENOVATION WHEREAS, the following bids were received on July 20, 2017, BIDDERS BASE BID ADD ALT ADD ALT ADD ALT ADD ALT Total (BB+ 1 2 3 4 Alts 1-4) Enq. Estimate $35,775 $3,645 $8,305 $4,290 $1 ,985 $54,000 Pro Grind $36,613.24 $3,295.75 $5,086.42 $2,938.65 $1,482.25 $49,416.32 K-C Corp $48,519 $8,997 $14,225 $6 ,749 $4,585 $83,075 ; and , WHEREAS, Pro Grind Alaska Rental LLC submitted the lowest responsive combined total base bid plus additive alternates one through four; and, WHEREAS , award of the base bid and additive alternates one through four to Pro Grind Alaska Rental LLC would be in the best interest of the city; and, WHEREAS, the recommendation from City Administration is to award the agreement to Pro Grind Alaska Rental LLC for the total approximate cost of $49,416.32; and , WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA: Section 1. That the City Manager is authorized to award an agreement for the project entitled "KENAI ANIMAL CONTROL SHELTER FLOORING RENOVATION " to Pro Grind Alaska Rental LLC for the bid amount of $49,416.32. Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 2nd da y of August, 2017 . BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, Acting City Clerk Approved by Finance /~ I Page 88 of 276 "(ltt'ltije a1/t/r, a Pa.f~ Ct~ a1/t/r, a h.ttJ.l<'e " 2 10 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai. city MEMORANDUM TO: THROUGH : FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager?. O , Sean Wedemeyer, Public Works Director/Capital Projects Manager 5;11 VJ July 20, 2017 Award agreement to construct Animal Shelter Flooring Renovation This purpose of this memo is to recommend adoption of a resolution awarding an agreement to construct the Animal Shelter Flooring Renovation project. The follow ing bids were opened July 20, 2017. BIDDERS BASE BID ADD ALT ADD ALT ADD ALT ADD ALT Total (BB 1 2 3 4 +Alts 1-4) Eng. $35 ,775 $3,645 $8,305 $4,290 $1 ,985 $54,000 Estimate Pro Grind $36 ,613.24 $3,295.75 $5 ,086.42 $2 ,938 .65 $1,482 .25 $49,416.32 K-C Corp $48 ,519 $8,997 $14,225 $6 ,749 $4,585 $83 ,075 The base bid scope of work includes removing and replac ing the cove rings on the floors an d walls of the dog runs (kennels .) Additive alternate one includes removing and replacing the coverings on the floors of the corridor. Additive alternate two includes removing and replacing the coverings on the floors and walls of the isolation room . Additive alternate three includes removing and replacing the coverings on the floors and walls of the pupp y room . Additive alternate four includes removing and replacing the coverings on the floors of the medical room . The bid is less than the engineer's estimate . Sufficient funds are appropriated . Thank you for your consideration . Page 89 of 276 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2017-49 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, AWARDING AN AGREEMENT FOR CONSTRUCTION OF KENAI PUBLIC SAFETY BUILDING BOILER REPLACEMENT WHEREAS, the following bids we re received on Jul y 20, 2017 , BIDDERS BASE BID Enq ineers Estimate $1 40,000 All-Star $89,500 Peninsula Plumbinq $115,350 Wolverine $127,770 Mantech $129 ,000 ; and, WHEREAS, All-Star Plumbing and Heating LLC submitted the lowest responsi ve base; and, WHEREAS, award of the base bid to All-Star Plumbing and Heating LLC woul d be in the best interest of the city ; and , WHEREAS, the recommendation from City Administration is to award the agreeme nt to All -Star Plumbing and Heating LLC for the total approximate cost of $89 ,500 ; and, WH EREAS , sufficient monies are appropriated. NOW , THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to award a n agreement for the project entit le d "KENAI PUBLIC SAFETY BUILDING BOILER REPLACEM ENT" to All-Star Plumbing and Heating LLC for the bid amount of $89,500 .00. Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCI L OF THE CITY OF KENAI , ALASKA, this 2nd day of August, 2017. ATIEST: Jamie Heinz, Acting City Clerk Ap proved by Finance 7 £ BRIAN GABRIEL SR., MA Y OR Page 90 of 276 'lftflOfe tt1/t/i a. Pa.O'~ Ct'tf tt1/t/i a. Fat~ 11 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax : (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH : FROM: DATE : SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ?~ Sean Wedemeyer, Public Works Director/Capital Projects Manager 5)11 W July 20, 2017 Award agreement to const ruct Public Safety Building Boiler Replacement This purpose of this memo is to recommend adoption of a resolution awarding an agreement to construct the Public Safety Building Boiler Replacement project. The following bids were opened July 20, 2017. BIDDERS BASE BID Enqineers Estimate $140 ,000 All-Star $89,500 Peninsula PlumbinQ $115 ,350 Wolverine $127,770 Man tech $129,000 The base bid scope of work includes removin g an d repla c ing the boilers. The bid is less than the engineer's estimate. Sufficient funds are appropriated. Thank you for your consideration . Page 91 of 276 _____________________________________________________________________________________ Sponsored by: Council Member Molloy CITY OF KENAI RESOLUTION NO. 2017-50 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PROVIDING FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF KENAI, AT ITS REGULAR ELECTION OF OCTOBER 3, 2017, THE ADVISORY QUESTION OF WHETHER THE CITY SHOULD USE GENERAL FUNDS OR GENERAL FUND LAND FOR THE PURCHASE OF OR TRADE FOR AIRPORT LAND COMMONLY REFERRED TO AS “LAWTON ACRES”, WHICH IS AIRPORT LAND OUTSIDE THE AIRPORT RESERVE CONSTITUTING APPROXIMATELY 16.49 ACRES OF REAL PROPERTY DESCRIBED AS S1/2 S1/2 SW1/4, SECTION 33,T6N, R11W, SEWARD MERIDIAN. WHEREAS, the City obtained the 16.49 acre parcel commonly referred to as “Lawton Acres” from the Federal Aviation Administration (FAA) in 1964, via a Quit Claim Deed generally restricting the use of the property to development, improvement, operation or maintenance of the Airport; and, WHEREAS, on April 20, 1983, pursuant to a request by the City, the FAA issued a Deed of Release for “Lawton Acres,” releasing the property for sale or lease and containing a Reverter Clause similar to the original Quit Claim Deed, which provides that if the terms and conditions of the Quit Claim Deed are not followed, Lawton Acres may revert to the federal government at its option; and, WHEREAS, in accepting the Deed of Release, the City Council passed Resolution 83-48 providing that proceeds from any sale or lease of the property would be devoted to the Airport for development, improvement, operation or maintenance; and, WHEREAS, Lawton Acres is not needed by the Airport for Airport operations; and, WHEREAS, in June, 2017, Lawton Acres was appraised at the fair market value of $600,000; and, WHEREAS, Lawton Acres is currently and has historically been zoned as Conservation, allowing for parks and recreational uses; and, WHEREAS, the City’s “Field of Flowers” is located on Lawton Acres; and, WHEREAS, the City’s 2016 Comprehensive Plan provides for Lawton Acres to be parks, recreation and open space; and, WHEREAS, historic and recent efforts by the City to sell Lawton Acres for development purposes have been met with public opposition in favor of maintaining the existing use as green and open space with limited parks and recreational development; and, WHEREAS, the City Council and majority of public comments reflect a desire for a permanent resolution for Lawton Acres that would eliminate future uncertainty and conflicts; and, Page 92 of 276 Resolution No. 2017-50 Page 2 of 3 WHEREAS, transferring ownership of the property from the Airport to the City’s General Fund Land Administration-Lands Fund will allow the City greater opportunity in preserving Lawton Acres as green and open space with limited parks and recreational development, including the Field of Flowers; and, WHEREAS, there is significant public support, expressed in writing and verbally at public meetings, for the purchase of Lawton Acres by the General Fund to allow for preservation of Lawton Acres as green and open space with limited parks and recreational development; and, WHEREAS, preserving the property in its current state as green and open space with limited parks and recreational development, including the Field of Flowers, will provide separation from industrial and commercial areas and maintain the sanctity of the surrounding residential neighborhoods; and, WHEREAS, green and open space, and limited parks and recreational activities, including the Field of Flowers, can provide benefits to all residents of the City; and, WHEREAS, expenditure of funds from the General Fund, or alternatively a trade of general of General Fund lands, or alternatively doing nothing, are also matters that affect all residents of the City; and, WHEREAS, the City Council desires the qualified voters of the City to advise the Council on whether the City should use General Funds or General Fund Land for the purchase of or trade for Lawton Acres, and restrict Lawton Acres to public purpose, preserving Lawton Acres as green and open space with limited parks and recreational development, or do nothing, and leave Lawton Acres in its current ownership status as Airport Land, generally restricted to development, improvement, operation or maintenance of the Airport. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the following advisory proposition will be submitted to the qualified voters of the City of Kenai at its October 3, 2017 regular election in substantially the same form as set out hereafter: PROPOSITION A Advisory Proposition: The real property commonly referred to as “Lawton Acres” is approximately 16.49 acres and is presently Airport Land outside the Airport Reserve described as S1/2 S1/2 SW1/4, Section 33,T6N, R11W, Seward Meridian, (as shown on the map below). A deed restriction in the deed to City of Kenai from the Federal Aviation Administration (FAA) generally restricts the use of Lawton Acres to development, improvement, operation or maintenance of the Airport. A subsequent Release from the FAA allows the Airport to sell or lease Lawton Acres as long as proceeds are dedicated to the Airport. An independent appraisal values Lawton Acres at $600,000.00. The City’s use of $600,000.00 from the fund balance in General Funds for the purchase of Lawton Acres, or the City’s trade of other General Fund Land for Lawton Acres, will allow the City to restrict Lawton Acres to a public purpose, preserving Lawton Acres as green and open space with limited parks and recreational development. Please vote on only one option. Which one of the three options should the City Council choose? Page 93 of 276 Resolution No. 2017-50 Page 3 of 3 [This is an advisory vote only] (….) Purchase Lawton Acres from the Airport by using $600,000 from fund balance in the General Fund OR: (….) Purchase Lawton Acres from the Airport by trading other city-owned land of equal or like value to the Airport in exchange for Lawton Acres OR: (….) Do nothing, and leave Lawton Acres in its current ownership status as Airport Land, generally restricted to development, improvement, operation or maintenance of the Airport Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of August, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, Acting City Clerk Page 94 of 276 ''lftfl'~e «1/t/v a Pa~~ Ct'tj «1/t/v a h.tu.r-e 11 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Scott M . Bloom , City Attorney 5!J July 27, 2017 Resolution No. 2017-50 , Advisory Proposition This Memorandum addresses whether proposed Proposition A, as proposed in Resolution 2017- 50 must be an advisory vote only, or whether it could direct mandatory action. Proposition A proposes three options to the voters: (1) use general fund balance to purchase 'Lawton Acres'; (2) trade general fund land for 'Lawton Acres '; or (3) leave 'Lawton Acres' in its current ownership status . Section 11-1 of the City's Home Rule Charter, in relevant part, prohibits initiatives that dedicate revenues or make, repeal, transfer or change appropriations . Proposition A can be advisory only, otherwise it potentially would direct the appropriation of $600 ,000 by initiative , which is prohibited by Charter. Page 95 of 276 11Vtl/a3e with a Past, City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 /FAX: 907-283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: Mayor Gabriel and Council Members Bob Molloy, Council Member ~ M~ July 26, 2017 ~ - SUBJECT: Resolution No. 2017-50, Providing For The Submission To The Qualified Voters Of The City Of Kenai, At Its Regular Election Of October 3, 2017, The Advisory Question Of Whether The City Should Use General Funds Or General Fund Land For The Purchase Of Or Trade For Airport Land Commonly Referred To As "Lawton Acres" Section 10-8 of our City Charter authorizes the Council, by resolution, to submit questions to the qualified voters of the City at regular and special elections. If Council does not support Ordinance No. 2968 -2017 authorizing the purchase of Lawton Acres from the Airport using fund balance from the City's General Fund, then I will ask Council to support Resolution No. 2017-50. This Resolution, if approved, will submit to the qualified voters of the City at the City's regular election of October 3, 2017, an advisory question as Ballot Proposition A.1 The text of Reso lution No. 2017-50 sets out the reasons that support Council's action to approve submitting this advisory question, Ballot Proposition A , to our qualified voters. Other relevant information is the City Attorney's memo dated 111917 (brief summary of the zoning and development history of Lawton Acres), and other past public records regarding the history of Lawton Acres. Council has heard and read the public comments received on Lawton Acres, both verbal and written, since December 2106, so tho se comments are alr eady in the r ecord and have not been submitted with this memo. The text that will appear on the ballot itself is on page 2, Section 1 of the Re solution, and is set out again on the next page to this memo. If Council does not support Ordinance No. 2968 -2017, then Council 's action to approve Resolution No. 2017-50 is res pectfully requested. 1 The Borough C lerk and the City 's Acting Clerk recommend use of "Proposition A" so t here is no voter confusion w ith the Borough's Proposition 1 regarding commercial marijuana. Page 96 of 276 2 PROPOSITION A Advisory Propos ition : The real property commonly referred to as "Lawton Acres" is approximately 16 .4 9 acres and is presently Airport Land outside the Airport Reserve described as S 1/2 S1 /2 SW1/4, Section 33 ,T6N , R11W , Seward Meridian , (as shown on the map below). A deed restriction in the deed to City of Kenai from the Federal Aviation Administration (FAA) generally restricts the use of Lawton Acres to development, improvement, operation or maintenance of the Airport. A subsequent Release from the FAA allows the Airport to sell or lease Lawton Acres as long as proceeds are dedicated to t he Airport. An independent appraisal values Lawton Acres at $600 ,000 .00. The City 's use of $600,000 .00 from the fund balance in General Funds for the purchase of Lawton Acres , or the City's trade of other General Fund Land for Lawton Acres , will allow the City to restrict Lawton Acres to a public purpose, preserving Lawton Acres as green and open space with limited parks and recreational development. Please vote on only one option . Wh ich one of the three opti ons should the City Council choose? [This is an advisory vote only] ( .... ) Purchase Lawton Acres from the Airport by using $600 ,000 from fund balance in the General Fund OR : ( .... ) Purchase Lawton Acres from the Airport by trading other city-owned land of equal or like value to the Airport in exchange for Lawton Acres OR: ( .... ) Do nothing , and leave Lawton Acres in its current owners hi p status as Airport Land, generally restricted to development, i mprovement, operation or maintenance of the Airport Page 97 of 276 OTHER SUPPORTING RECORDS SUBMITTED BY SPONSOR RESOLUTION NO. 2017 -50 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PROVIDING FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY OF KENAI, AT ITS REGULAR ELECTION OF OCTOBER 3, 2017, THE ADVISORY QUESTION OF WHETHER THE CITY SHOULD USE GENERAL FUNDS OR GENERAL FUND LAND FOR THE PURCHASE OF OR TRADE FOR AIRPORT LAND COMMONLY REFERRED TO AS "LAWTON ACRES", WHICH IS AIRPORT LAND OUTSIDE THE AIRPORT RESERVE CONSTITUTING APPROXIMATELY 16.49 ACRES OF REAL PROPERTY DESCRIBED AS Sl/2 Sl/2 SWl/4, SECTION 33,T6N, RllW, SEWARD MERIDIAN Page 98 of 276 tire &t"t;I of. "Vt1/~e with a Past, CtCy with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 www.kenai.city KENAI, ALASKA v MEMORANDUM TO: FROM: Mayor Gabriel and Council Members Scott Bloom, City Attorney DATE: January 19, 2017 SUBJECT: History of Lawton Acres This memorandum will provide a brief summary of the zoning and development history of"Lawton Acres'', a 16.49 acre parcel fronting the Spur Highway and Lawton Drive. The City obtained the parcel (Parcel No. 045-010-03) from the FAA in 1964, via a quitclaim deed with, among other restrictions, the following: That no property transferred by this instrument shall be used, leased, sold, salvaged, or disposed of by the Grantee for other than airport purposes without the written consent of the Administrator of the Federal Aviation Agency, whlch shall be granted only if said Administrator determines that the property can be used, leased, sold, salvaged or disposed of for other than airport purposes without materially and adversely affecting the dev elopment, improvement, operation or maintenance of the airp01t at which the property is located. Prior to July 4, 1984 the Kenai Peninsula Borough had planning and zoning authority inside the City. This was codified in KBP Chapter 21.76 -Kenai Municipal District-Zoning Code. Until the City took over zoning authority, Lawton Acres was a split zone. There was a strip fronting Lawton Drive that was zoned Conservation, and the remainder and majority of the property to the Spur Highway side, was zoned Suburban Residential. The Borough 's code defined "Conservation" as follows: 21. 76.060 Conservation zone--C zone. A. mtent. The C zone is intended to apply to areas which should be preserved primarily as open areas and as watersheds and wild li fe reserves. Airport and related uses have been included in this zone to allow for the reservation of aircraft approach zones. It is intended that this zone shall apply mainly to publicly owned land. .. B. Uses pennitted: 1. Airports and related use; 2 . General gardening and fanning ; 3. Park or recreation use; Page 99 of 276 2 4. Off-street parking; 5. Cemeteries; 6. Radio or television transmitter towers. On March 16, 1983 the City's Land Manager at the time, requested the FAA release the property for lease or sale. In request to the FAA, the Land Manger noted that the property was vacant and unimproved, that a portion of the property was well suited for moderate residential development, that there was demand for residential building lots , and that some of the property was zoned Conservation and that portion of the parcel was precluded from most development uses. On April 6, 1983 , The City Council passed Resolution 83-48 accepting a deed of release for Lawton Acres from the FAA. The Resolution requested the Release to pennit the sale and long-tenn lease of the property and provided that the City wou ld devote proceeds from the sale or long-term lease to the Airport for development, improvement, operation or maintenance. On Apri l 20 , 1983 the FAA issued a Deed of Release for Lawton Acres. The Deed of Release contains a reversionary clause similar to the original quitclaim deed that provides that if the terms and conditions of the conveyance document are not followed , the property will revert to federal government at its' option. In May and June of 1983 , City records show that the City was going through the preliminary plat process to subdivide Lawton Acres. It appears that 29 lots were proposed and that there were concerns about the cost and design of water and sewer availab ility for the proposed lots. On Apri l 18 , 1984 the City Council adopted Ordinance 925-84, establishing the City 's own zoning ordinances. The Borough 's Zoning Code for the City of Kenai was subsequently repealed. The City 's new zoning ordinances contained the same intent statement for the purpose of the Conservation Zone, and the land use table provided that the only pennitted uses were airport and related uses, parks and recreation , cemeteries, essential services, fam1ing/ gardening/ general agriculture, off street parking and radio/ tv transmitters . N atural resource extraction was allowed in this zone by conditional use. City record s indicate that as the platting process for Lawton Acres moved through the Planning and Zoning Commiss ion there was public te sti mony in support of keeping Lawton Acres as open green space and natw-al habitat. Instead of moving forward with the subdiv ision plans, the Planning and Zoning Commission recommended that Council zone the entire parcel as Conservation through PZ84-67. Ordinance 962-84 chang ing the zone of Lawton Acres to all Conserva tion was adopted on August 15 , 1984. The Ordinance notes that the su bstantial majority of those testifying before the P lanning and Zoning Commission's public h earing requested the Conservation Zone. It is interesting to note that the Ordinance, including the tit le , refer to Lots 1-29 of Lawton acres even C: \Users\smodigh\AppData\Local\M icrosoft\ Windows\ Temporary Intern et File s\Co ntent.O utlook\N651QGVG\lawton m e mo.docx Page 100 of 276 3 though the subdivision was never recorded. Also, one of the "Whereas " clauses of the Ordinance indicates that at some point Council had recommended the first 16 lots remain zoned as Suburban Residential, but this was not what was ultimately adopted. In 1985 , it appears there was renewed interest in developing Lawton Acres pursuant to a request from a representative from Pizza Hut to locate a business on Lawton Acres. However, in October and November 1985, the Planning and Zoning Commission voted to retain the Conservation Zone according to City records , and again there was public s upport for the Conservation Zone. Ordinance 1100-85 was introduced before Council on December 4 , 1985 amending the zoning on a portion of Lawton Acres towards Walker Lane to General Commercial. The Ordinance failed and noted that the Planning and Zoning Commission recommended against the change. In 2005 , Planning and Zoning Resolution 05-36 rezoning Lawton Acres from Conservation to Limited Commercial failed before the Planning and Zoning Commission. The rezone was requested by the City Administrator at the time. A s imilar rezone brought forward by the City through Planning and Zoning Resolution 16-08 failed to pass on March 9, 2016. The 2013 Kenai Comprehensive Plan that was referred to the voters and never adopted by the Borough (after a vote to repeal the City's O rdinanc e approving the plan) provided for Lawton Acres to be a Mixed Use Zone. The 2016 Comprehensive Plan recommended by Council and adopted by the Borough provides for Lawton Acres to be parks, recreation and open space. On September 6, 2016, the City received a proposal from Jeremy Surhus to purchase a portion of Lawton acres, roughly the east 1/3 portion of the parcel, to construct a dentist office. Of note, an appraisal completed for the City by MacSwain and Associates provides a 2015 valuation of the parcel of $478,100 or roughly $29 ,000 per acre. Finally, while the definition of Conservation in the current City code has not changed significantly, many more us es are now allowed by conditional use. C: \U sers\smodigh \AppData \Local\Microsoft\ W indows\Temporary Intern et File s\Conte nt.Outlook\N651QGVG\lawton memo.docx Page 101 of 276 , ~: --~--· ~ I I . j .~ .i ' ---• .&. .... ·:. - . ' .. ··-..... -·.:J'..::....~·· ... "'7.······~.·'I""·~~:·· ,..;·, __ __._ .. ;.• -.·.~.~ .... :·-1,,:J_..!:tt....~··o :•··· .: •.. u ....... -: .. -.1.,.• P ·111i11:1iili1:1.-.i'¢ _____ ,.. sug9aoted by P & Z co .. iweian CHY Of KENAI ORDINANCE NO. 962-84 AN ORDINANCE Of THE COUNCIL Of THE CITY ~f KENAI , ALASKA, AMENDING TH£ OFFICIAL KENAI ZONING HAP BY REZONING LOTS 1-29, LAWTON ACRES SUBDIVISION TO CONSERVATION (C) OISTRICT. WHEREAS, KMC 14.Z0.270-280 eatabllehea a procadura to •••nd th• Official Zoning Map of the City of Kenai, end WHEREAS, a patition to ra~one Lota 1-24, Lawton Acraa ~ubdlwiaion to Conearvation (C) Dletrlct w•• initiated by tha Kanai Advlaory Planning 6 Zoning Colll9iaaion, and WH£REAS, the co .. i•eion conducted • public hearing on thia petition on July 2~, 1984, and epproxi•alely on• dozen paraone teattrted at thia public hearing, and WH£REAS, a aubetantial ••Jority or the paraone taattryln9 deaired to rezone the entirety of Lawton Acraa Subdiv1aion to Conaervation Dlatrict, and WHEREAS, the co .. iaaion reoo .. endad a pproval or th• rezoning or Lot• 1-29, Lawton Acrea Subdlviaion to Conaarvation D1etr1ct in eocardanoe with Reaolution PZ84-67. WHEREAS, the Council he• reooaeended th•l Lot• 1-16 be retained •• Suburban Raeidentlal and Lot• 17-29 b e rezoned to Con•erwation. NOW, THEREFORE, 8£ IT ORDAINED RY THE COUNCIL or THE ClTY or KENAI, ALASKA, that the orrlcial Zoning Map of the City or Kenai •h•ll be ••ended •• rollo••• Seetion 1t Lota 1-29 , Lawton Acree Subdlvialon are hereby rezon•d lo Coneerv•tion (C) Dletrict, PASSED BY THE COUNCIL Or or Au9ual, 191•. ATTESTI ~ ~ .•. %11t .. f' iret Raad1nq' Second RHding1 £rracuve Datu day Auquet 1 , 19111 Au9uet 15, 1914 S•p~a•b•r 15, 198• (i) Page 102 of 276 CA ... • 1 • r1 ANNING COMMISSION 1 "' n,-tob~r 9. 19BS -~ .~ ------~-_:'ll! j ln .,inter. COllllltiHianer 8ryau. Hi<ed if rn; was propolinq to veqet::t/ ~-~ -~T • ...:,_ -:-;. ~~ -:~::.:V:i:io llleo ~.~~W8~ Y!!-'. ~e.11 ·ng it !!! ()?I'm .:~ poHible for !In ( i . ' I I I 1 l I • ! I • . I • 1.·.'. •I • I~. 1 • , . . ' .. ! •· : r ..... .:i . .. '·•: .. : 1 • .: :· .-; ; i . ·. .. ··: ' ... -.; .. ! r ...... -.-.~, .. VllTEr c . MOTIONS VOTEs C0111111t11toner Cartqna ved approval of extension "S/1/ with eOMpletio C0111111i11ioner 01b ne. 2, f'BO SID - lot hu MOTIONr COMiHi cons tr 01bor rignan 1110ved approval of le11e extension date or COfllPletion date of 9/,0/96, seconded by COllll!liasioner '\.. -·-· -- I ! i " I I i t ii f ·i ?'. tion p111ed unani1110U1ly. · ~f'~.~-.~: .-.· 7~--:--;:::::---'HolM.llt...iioliln1-1i1.o.!!.i .. !!•~e~d ~u:!!.n~11!!n1~mou~~11~r:.!.·----------------------1---.. ;ju . , .. , I ; I ., I .I ., l ~· ·I . ' I .· ' PLANNING •• pevelopment of Lawton Acree W-- . ,. ·•••-.: ....... •--·l>•U-~O 'l -•~-•••t·•,..-,.•·•"'4 --•• _.., .. ,•-•••· • -••~"'" ••• ' ,, l••• ,., p ,, •• ·~ '••· • • • • Adllliniatra tive A11i1tant Ce r 1tlauer explained th1t the two parties reques tlnq the site 1tate that ther e ia no property available along the Spur Hwy, that priv1t e property owners along the Spur have been apprn sched and are not willing to sell, or have such aever~ restriction• that the site is prohibitive • ··---~-~· --::.-.;·:?' .. _ : .J • ~ •.. • 2 ) , I." f .( l t f " .. I • 'f f 1 .. ·"f ..... ... ... ~--· ··i t Page 103 of 276 ,.,.. ... .+-f.- ~-l'i ......... "• _..,..F~ .. - # .~ .T ' -' ·l . r· \1 ; .. ··-·· ,_ .. __ .. PLANNING r.OMMtSSION October 9, 198S P1qe 4 "if mt?' Vice ChRirman Small~y indicated that, while it ia not atandBrd proceduro, there are lllttfllbera of th~ audience wishinq to speak to '~~ ittue and aaked the wishes of the Co111111i1sion, it was aqreed that ~h~ ' ' L~'- 1 i public be allowed to epe.k. ··-· __ ;::~;;;~·;-:·-~·=_;_~-~-~:;;:---=-=,.i;,;~;;;;;;;;~,~:~;;~~ff'~;,;:~:_;,~:;:;;;;~;;ry;;l~=.~1;~~~Li:;!~;t-~~~~!::;~-~-~;x· ;~· -1-~,--~l Sa191plea,and ~Ollt Th0111paon all re1ident1 of either Inlet Yi~ or c~ntr~l ! i :·· ,_, ~- ..... ·, : ; f _;:; . : ;: :'.-;.: t': ·~ ... -: ·.·: ':{· ~:~: ~-··- .~~1 . . ·- ~:: :~~1 ; ~-::· . (:., : 'JJ(i f /.· ;.1~. ''." i, . Heiqhtt gave presentation• opposing the proposed development. Tht? j general concenaus it that no portion of the strip known as Lawton Acrea be 1llowed to be developed and should remain in th~ conaerv~~io" cltegory. COllW!tiationer Bryson at1ted that sooner or later developert will h ri•11? to dell with the priv1te land owners. In th1t area, there are 2 ~.c 4 l1rqe parcel• where individual• have tailored their developments t.n entice cliento ta utilize the property and I feel that i• where th~y 1hould be going rather thin encroaching on an area that preaU1111bly la :a buffer. C011111ti11ioner Carignan 1t1ted that he phila1ophic1lly ~liqne ·with the speaker• in the audience in maint1ining SOflle contervation zane1, coupled with that 11 the availability of other property in t h~ City. I MOTIONS VOTEs COll!littioner C1rignan moved to recClfllllend that the Con1erv1tion zon~ be 111aint1ined, seconded by CDt!llllittioner Bryton. ror clarification, the intended 1rea it the entire ttrip bordered by the Spur Hwy Rogers, Walker, and L1wton. Hotton p111ed unant1110U1ly. ·l .. .__.----Page 104 of 276 1 I ;-o·y·y . ·=· · .. ~'~ ·--.... _.._.,__.....; ________ r_· ______ ......, _______ ------·------- . ' . f. l l -l Octobe r 10, 198S HEHORANOllH <;. -7 CITY' OF KE NAI "(Jd rJapdaL of lllaUza." 210PIOALOO klNAI, ALAIKA Ht1t ~ TILll'HOffl 2H • 71U T01 Kenai City Council '--'. .. :"'\( rROHt Dana Geretlauer, Administrative Aftftiatan~ j R£1 Rezon i ng of Lawton Acres and Adjoining Property h (south of Spur Highway) ; --l pre unted a propoul -ta··-EnePlennfng=anct-Zorfing-t-o-nrm1el!ri"CJ M'"""on---• -~$-:!ri-=;~,.... n-~;~~~it~~n -l-i'f5iih;(j1JAd~f.M~.8t1i · th1H ·"~ -. · · ,~~--:. -.· ·-·~ _, hne"bereille to tht~y ror=commerc"i11T ·:prop1,.rt"°y clono t hes-~ -; 'i:. I . i . t· Highwe~,,·b•t;~een Wilker Lane end ~09era Road. f During the meeting, approxima tely 10 individuals from the ~ ~urrounding residential ire•• gave teatimony in aup?ort of { retaining this property •• a buffer strip between the highway and . 1 the reaidenti1l property in this area. ; The Pl1nnin9 and Zoning Commission voted unanimously ~o recommend to Council thst t~i • property remain in the Conservation zone. /d ·.: ................. 4 , ... ,: I I i ' I i Page 105 of 276 r..· ,. 1! '. I l l t I •• . ' l - . l .;;~ ·---~ - .. t ·,, • # ...... • .• • ·:.· .. . :~::; ::~ . . :~ .. ::·:'· ·' ' ..... 1 ..... I. z. _.,/ Zubeck 3. PERSONS PRE ·4 . : I: .... ·.,, :~ ... None \PUBLIC .HEARINGS r 1. R11olutton PZ8S-83s Rezontnq Portion of Section 33 Known 11 Lawton Acrn frOll Conserv1tion to General CCM11Mn'Ci1l Ol1trtct Counetlaln Wtte 11ked that the ChllrMan to "clarify e•1ct1y·lfh1t you're doing, itt the wnt 300". We're not tllklng 1bout the whole strip". Chalnain Lewit 11ked that Hr. N1th pre1ent hit c11e before the public hetrtng • 8ob Nath of Property World Rellty, repretentltbe of ICurent Corp./ Ptiz1 Hut. Mr. H1th e•platned that the 1111tn t11ue it the rezoning of the portion detcrtbed froa Conserv1tton to fieneral COMercill and quoted the COfllPrehenthe plln that it fortheolling 11 projecting the entire 1trip froa tildker lane to the gully 11 cOMercill. Ir that ta the c11e, it would be in order to tet a pj,en for developMnt. Ht. N1th IU99ftted a deed rntriction thlt any land th1t is told in that 1rn hive a 10' wide greenbelt along Lawton Or barring aeceH, drtvew1y1, ind curb cutt e•cept for utilitin. ·~; ·i·r . ~~. :/ ::·:':: :: .... . ;:, :::·.; . . · .:~ Jerry Carlton (1), rroa the audience Hked 1eveE1l questions r~uding other titn avaUable. COMi11toner S•lley agreed. quoting an ... ' '· · .. · ·_ e=rlier cOMent that financi"'.'.' is not 1 pniblM-'tf!th the ktirani . ...COrp. · .. · · · · and further that the projected c0111prehen9ive plan hH ude no ·.!-. '\ . , . •. -,~·-. : r . . "< . co.it.Int in writing thlt the COMislion lt 1wtre of. Mt. Nath mentioned several different locations, stltlng that each of thete WMted well above 1111rket value. . .;.-............. , ............ _ ....... ~-:-• .... ~ ........ ~ ......................... ---·-··--,_ ...... ----.. _,_ ... ,.-........ , ..• --... ·-· .. .. I ' '-- =-,:::0r~~I:L~!~.:~~~i~.;~_·. -~ 1 . ' •• ···_.t.·· • l : • ·. ';.•,., .. ... • ·-. -·· · 1 I ··· . ·. , ~· ... ·-·, .•. -.. · ...• L I I ' · 1 .:~ ·, ( ' .. +) . ,, ·~ ~:. Page 106 of 276 . !. •·' . · ... ~ .. . "" . ';:; .":-:;. ~ i~ · .. ·-:;. --'· -- " -~.1.:·.~~ '•, '~ ,. ·:••: . ...... .. . . ... ; : ~ • . ;i-. ·{ •. _~ . =-·~= · . .... ~.~: · . ..,. ,• •: ;~, . " . • .. ::.~.l . . ·.·.'~: ··;. , .. ·:·. ;~~ ·: .> ... "--..... • ? .: ~~, .. ~· •.. •· . ··; .. :·. • .• r· '. , '.' ... · ~ ... ·. . Pt ANNING COMMIS~ION November 27. 1985 Paqe 2 NOTEs Because the re are two Je r ry Carlson&. each will be de1iqn a t~•: by a (1) or (2) to indicate which qentle11111n spoke. Bob Nath feels stronqly that this property will evtmtually qo eOlllllM!reial due to econ0111ic factors and that by approsching this a t t >.,, outwet , the strip can be det igned to be an a11et. Chairman lewis opened the tneetinq to the public. Howud Hackney, Inlet View S/O, "when Mr, Nath 11y1 that the e0111Prehentive plan callt for that zoned C011111erei1l, I would like to 1ee that, there hH not been 1nything in writing H yet. He Hye t' they put the whole strip down H co:r=rcial, that doeen't Min the whale strip i• c011111ercial until it 11 rezoned by the Pltnnlnq C0111111i11ion and Council, it doesn't h1ppen 1ut011t1tic1lly. This l• beinq dre11ed up to look better, ju1t like when .y t110ther uted to qi ._.,,. ,,. flledicine. she ueed to put it on brown suqn, but it •till t11ted like 1!19dicine. I don't aee where anything it ch1nqed, At •oon ac Y'l'J let one in there. ih only • 11111tter or tt111e before •OMOM elte will be along that will jutt have to have the ne•t piece until there it nothing left. We nave ju1t enacted • l andttcape ordinance to prnen· .. the tree• and now .., are qoing to cut thetlt dawn, A1 f u H planning thet for cDMltrcill, it will have to go through the landscape botrd '-· ... any wty." Jun Slanning, Central Ht• S/O, "I feel very •trongly about any encroactwent into the greenbelt or conaervation zones and that ii e•actly what thi• 11, literally 1 epot rezoning and I agree with Mr • N1th that thit would 1et a precedent, there would be other butineitn thlt would want to do euctly the HM thing until it WH all taken." Hike Thoue, Central Hte. 5/0, "F'int .Ot all I feel that-i'ttzz1 Hut would be a valuable contribution to the e~ity, however, not in !:•,.. pllce they •eetc. Thet Wll originally deliqned 11 coneervation 1nd 1 think 11 everyone here don that it should be left that way. A 23' buffer 1ound• nice, but when you 111e11ure it off, that includes verv little trees or bruth. An MlftlPle would be the junior high, bet•., the road and the junior high which 11 well aver 23' but is •till vr.n· j .~ thin." . "; ·'.'.... -_ ... _.. . ~~ " ·~ ·--C.E..-Willfnqford;-lnlet "VliW Sl~.) cue downto_p~tnt • ....,.r_t_r!.!:.f-t-~-~ .... -_ _..._ _ _,__,. .. --~~!·· -~ ~· -·-~~_iid;ieciihlk5'r• ahead~ ho•---,_ __ __,,... e are more desir1ble locations available for another pizza parl cir •• we already have J fr a one •ile radius . We have a SS lllph speed lt•it there which will not add any safety. Riqht now you can hardh get out onto the Spur Hwy fro. walker lane, thie would Mke it worgr?, Jerry Carlson (2), Inlet View, I ,. definitel y ag 1inet that loeatir.~ being zoned cOMe rcial. I have Uved in Kenai all "'Y Ure and t j111 t bought a house in Inlet View thi1 swme r bec1uu Jt. ,ie .. one .oLthe ·-·· ... ,.....,,_._,. ... ,_ ...... ,...,_i-•· .. ,,..,.._.••••-M--...,....,. . .,,,,..,. ... -.. -... -,.. ·•· ••·-···• • .. . ... ' ---:-------------••r1•1'R111iil•• ........ ---.. ·-· . ····------~ .. ~-. . ~ •. '!~ ... ·;., _ .. Page 107 of 276 : .. .:: -------···--------------- ., t' ~ l : 1 • .. . ~· ' i ~. . . :"-.': ' ·:.·. ... C'I. !' .···:· f. ... • r , I I ·I • ; . . -~ ;."t .... . ---·--' . ~. I t: ·~ J• . \ I i ,:: ' . ~·.: .. .,. . . . . 'I .... -:. :· • . 1,: I . :,<. ·, ~ . .. , ··-1 ... .. { r'• I ~r , .··: .. ~ t ... 1· ' •• 4 • I ..... ,. 'I"' I ,• '· r •·. ~ -·· :·.:·· l>L.\1'NHiG COMMISSllJN 1;0 Vttfllber 27, 198~ P:t<lf!' ) nicer eubdivieions in town. I'~ •11 for qrowth for the City but l think it should go in a different direction rather than residential neighborhoods • Randy Caler, Valhalla 5/D, representing the landseapinq Review 801rd, st1ted th1t the Board unani1110U1ly approved the conservation zoning. It was the consensus or the Board that they would not 1upport any butinese in that greenbelt area. There it a bike trail, high traffic, students fro. th~ high tchool are ne1r, there i1 1 cleared area where the fire training used ta be which d089 look bleak, however, what tree• are left do form • buffer. The Mayor h11 COllle out as oi>PQled to lt, the Council oppo:od it, the Mayor tfflc> kl'KIW9 1110re about ltndl ·tnan I do ude the .tate11ent that there are other land• available. Cheryl Sat11plet, Central Hts S/D, Mr. Nath hat preaented 1n 1ttr1ctive propoHl, hawner, the question i1 whether or not to rezone frOlll cont1ervation to COlllll8rcial, not what Hr. Nath'a client is prepared to do to accOllllllOdate 1 green9trip and build hl.a:::ea.tabliahllleftt-. Mrs. S .. plH prnented I petition liCJned by 96 persons tll opposidiny developMent ln• restrictive, not all persons being residents of adjoining 1ubdivitions. Petition entered into ttm remnt. The coneervation 1trip needs to be left for several re11on.. it 11 • · buffer strip for the neighborhood, it ls probable that the property alonq Lawton will be developed in the future leaving the Pizza Hut and other eat•bli1twnent1 in their front y1rd. A 10' greenstrtp will not hide that feet. It don not benefit the City of Kenai to build on . ~ery corner _at_. the expenee .. .o..f'JOtlinCJ 1 conurvat!®.--tone=•nd= ---- :.::_·diereqardinq the wi1hel or the piop1,.~e:.~it ~~--.you;. .., -;:·-.-=.":'-~w fflft:iii (bir:t1tjii'£0tmeU2>fo:::Uibiii Siit=f'Hpo1"1 td the optniOM •nd withes or the '*"'le. Jerry Culton (1), Inlet View, I ,,. opposed to the rezoning but not the Pizza Hut. Mr. Carlton 1uqget1ted a rererendullt ind put it to the vote or the people. Councilun Wise anewered that the land ie in trust 11 it it FAA land end h11 epecial connotations of tta own. I don't feel that the City by referendull r:oald over ride the deed of trutt that we have fra11 the feder1l qovern111ent. Whit you are really Hkinq i1 thllt thtt City buy the t.nd froa the airport and dedic1ted it far sc.e rntrictive puqMne •. However.· ... ,.t!OOft ·':n'f.~.'-~·~i thlai: anything thlt :ii done by· on9·.Cauneil "can .-be-~Uncfane:·by· e future · council. even 1 referendull initiative. You can't put it in the Charter. The cleanest way to do this ts for a priv1te party to buy the,, land and deed it to the city with 1 reverter (sic) clause designating what it can be used for whkn 111eans the city can't do anything wi th it eJCeept whit 11 provided by deed. . Cheryl Sa111Ple1 asked how parks & recreation keepe its land and facilitiefJ and could this property be treated the sa11e way • Councilan Wite explained that parks lr recreation ta an inw trunent of . . the._ c~.~Y ·-~~" ~~. lancfL.caa;be-•fezonect·-an6 ... old·1t-'"lny'·t ·t11e ·the· ... . _ ....... --~. -~ -____ ,. .• ·,.~ ... ,;· ... ">; ...... ; .fa~ ••• • J ,~-.... ~-·----.. ! '\ f [ I i ' ~ Page 108 of 276 .. I· 'I . I \I 1 ' "' ;" ~ :i . .! I \I ' ~ f: " . }. :· . ' l· ... . . t " • ; ;J . ,. " ij l.\, w• ' ..... . ~ . . j · . . !f: .... ·ii~ .. , ~ I PLANNING COMMISSION Novt!tllber 27, 1985 Peqe 4 Council decides. The Council is considering the duet bowl rioht ,..,~·-1.; lt9 the 1ame, its airport land, it is a baseball field, the eirr.nrt. 11 getttnq no revenue frOllt it, it probably will be rezoned and pu~ 1m for sale. · Chairman Lewie closed the public heartnq and brouqht the issue b~ck to the COl'lllllietion MOTIONs COIM!letioner Carignan moved for the adoption or PZ8S-8). eecond~d by j COMiedoner Oaborne. I i Ca.ittlltonttr Cariqnan eteted-. t~t t-~. he: ~lwaya . ralt atronqly acout l maintatninq that con1erv1tion zone ere• and I have not heard a~1n9 this evening th1t would change fllY 111tnd. We have di1cuned the I ra~ifications or developing both aides of the road and felt thP.r~ :ire other land• available out there. even thouqh they cost 1110re, wr. :irl'! alto looking into developing land• acroaa the road• in the other-· direction. COMiHioner Salley ttated he would reiterate the HM COllllW!flts ~~· 90 on to 1t1te that this body nor_ the community_ that 1poke is aqJJinst the Pizza Hut, it ii just the loettton and l"Delifte-there are ·,,thl!r! ,. land9 available. The idea of the new c0111prehen9he plan indicatinql ·c ...... ·e::rci•l ".zoneiE"the ·:penon~.thllt . it doing the pl8n i• b11tcally ·q,,i ~.., '. :;.qh•:·~~~~ ·"' ~~·!":?'1~ld i.\,J.ike;to .have, it is not :cast , ,.,. .. ., . . t. :.!lfiJIVN rM"'•uen · 11 this will. be eventually or probably changed" why can• t we Hy, "it ay not be changed". It• not a P'hice ·· of land thlt belong• ju1t to the residents of that area but to .the' 1 city a1 • con1erv1tion 1trip, we didn't intend for it to be a park. we - b already turned it over to parka & rec~~-•ti.on SOM ...t.i111e ago and from . --+---~therwe-.Jdrl'iiirlt-wn=-t:oo=Hrge tii .devriop. on tape ls M•yQ...r -------w "~·. . -t W!nlst•H~@..lli14?tqn;*CI'.et s·· er?------· ~--. con1ervl£Ton zone -to'"'bUffer the residential from ·t.he ca.ereiel di1trlct1. Beeauee of those itettt end the people th:.tt; 1poke, I would oppote • rezone. VOTES Motton f'eUed 1· not : Ca..l11loner1 Bry1on, Carlqn1n, Lewis, Oleson, Slllalley. fob~ck yn1 C0111i1doner 01borne \ " .~· :~;;:_: .. ~: ~~~~~·~.J,_~.~t~1~i /:·;. ?·;:~'.:'' _<_; ;~:~;:; : --:~--"!l!!'lll!' 11!!1!11!~~~~--l .. ~~ . \ Page 109 of 276 -· ,'-... '. ·.·t =: .,..'.1 j· I ,', ""i -.:"_·,. . .,·~ . . ,.·:· ::~~ ·. ~ . . ~:"-.. :J.· • ··~ :.~ ... -~~:~··. ':~ ..... ... -. .,....,......, · .. -..... ~.. . . .... ··~-=== ...... , CITY OF KENAI "();,/, (J<ZfJda/, ~ ,4'44/ta" 210'1DALOO KUW,ALAllCA Htt1 TILIPHOHI '".nu ...... -.. ~ I l \ -. ..--1---~ --·· i~ _· ----r -~~--. I I ' ., l ·1 MEMORANDUM Mayor Wagoner and City Council Hetllbert FROMr Janet Loper, Planning Specialltt SUSJECTt OATEt · BACKGROUND Applicants Rezones Portion of Sec. JJ known 11 lawlon Acr99 -frOffl Contervancy ta General COl98rcial -Pizza Hut . kurani, Inc (Pizza Hut R99taurants) I L19al Oetcriptiont Portion of Sec. )J .Known at Lawton ~~r~t T6N, RllW, S.M. Edattnci ZonincJs Propoaed Zonings Exiating land Ute Plans Proposed Land Uta Plans Con1ervation General C0111111ercial Medium Oen.ity R99idential COMercial At the public hndftCJ held by the PllnninCJ ec.tnian an NawMber 27th, 9 teH of the pWllc att.ndinC) lpdce art the inue with all 9 requnttnq denial. *• Chnyl 5-.lel of Central Heiejht1 SID .._itted a petition barinC) the •il)Mturee of '6 par•• •11 •11 "appoeiftCJ any develapMnt ten rntrlcttwe•, not •11 •iCJMturft wre rnident• of the "Lawton" am. A copy of tlle petition i• •tbdwd. . i _The P11mlng Caminian failed the eppHeationJ.or.....rezaninc}-with a vote of lr-1 and f.CC ld9 deniaJ.Jlf. . .Jt.~8PPlic8tian .... -·---•·· · · ~· .. · -· -.· ..... -·-:T. -~ ·~·:-·.. -~~ . . . . . ··' ' ~ :_. .. ,,· .. ,, .,. '· ..--· --------·-·-·-- ' ' I I I I I I I 1 ! ~ ... -. ' -· ..:.-.-.. ~--:.-;::;· . . -·· •. .. -y ·.---. .. - I- ,~·. ·:"· ~ .. ~ .. · ; Page 110 of 276 I l r : t " • f ' ·-·~. __ ,....,._,__.....,,,._-......--. -----~.c.-=-=-----lliiiiii. ...... .....,... ... ---···----- "1rqt.IC COHHENft '.·-Ct .... -· ~-•--.. .... _.... ... ;.--· .: "' .· ' . • . I ... ~·-.: . ~-:··. .. :~ . .. ·.; ... ,,~- .~._; , :T ·· ... -.~ t~'.: t~ ··.· ~ ,. ·~;.1 . . : ·,. • 0 .; .... . ·:\ 'l-•. : . : -~. '.i~-f. ~--~-. :[. -~ .; !·~ . ·'""· ·: ·:··· .. ·.fl! .. .. . .~ • ,. 7. .. -·, ... , I: ·'-. ¥.8n•i* ~@~her of th~ problems t.hey · spector Hackney. PH) VOTE, Hain Motion ea AMendeds Motion aeeed uneni~ouely by roll call vote. C-2 Ord. 1100-85 -AMending Zoning Hap -Lawton Acree MOTION s Council••n Measle• ~oved, seconded by Council•an Wise, to adopt the ordinance. . PIJBLIC COMMENT s s. Sob Heth, ERA Property World, Kenai. Since he initiated the aMendment on behalf of Pizza Hut, it has appeared before P&Z Z ti~ea and Council ' tiMea. The opposition hae J concernes 1) the need for e buffer zone, Z} e request to restrict traffic increase on Lawton, 3) deterioration of the area due to business. Regarding l'J, whatever deterioration will start, hae been done. ' of the 4 corners have been taken. Regarding 12, at a meeting of residents of the area and the •aneger of Pizzi Huts, these ' concerns and one ·~.· ,. : . ' •ore (the difference between what a developer a1ya and what he does) were discueaed. The euggeation wae for ~ buffer zone to be built, the manager agreed. There ; .. ;: .. would be a 10 rt. green belt, plue e 13 rt. are• next to it, fot a total of 2' rt. or buffer zone. Federal Revenue sharing ia down. A• to-BS-of incrome _i~re•aea, there will be preeeure for general comMercial here. w~-:. have an opportunity to deci~e the beat use at this ti•e. There wae not enough time for polling all the citizens, but the results he had were gratifying. He · ...... ~-11.a --,75 --.. dijnatur·ee ···requeeUng · rez·oning·. · · Counc u woman Bailie aeked if he was aware of the fact that if , . ' ... :!.,c,~;;~~,~~ r.~-~~,~~~;'··.~-d /,~'. 9oe a out -~.~ .... ::.~, .t.~er~-ia no J ~ .,,, .. , .. : ~ '~~'11'!'!'1'" ""''-'=' .• ~~ ... ~ ..... "'*'ti"" ~ -: -·~~:<J~,.n ~ _,.,,,.,~·'.jill'~,G~c~'~r · .... -~~-«,-: ... ,,,~,~·t :ffilil'•"·' · ·y 1111111i~~P.:~~ ..... :.-........ .-·~;2£' ,,,......._ .. "';; ':2 +~·:---!!i!;i:i;:W;i."'~~.:..··'~;;...;_ ... i ,>..:._'::-~ .... • ~. -...,..-.. ~*Ul»:'llFHlF·•:,-... _.. ....... • :w•,i.....,, w,::n:c=~~--=== ... w ........... _., ..... -~ . ; ... . . • ··i i ; I -: • . ,. -• ' • .i:;i~~::~:'~-:"~·.: . .-:· ::::~;~~E;:~'tf~<i ~~>· · j ' 1 i ' -:-J i. --·r =--i ' ;..;, •. . I~ , . - . ...-, .. -·~ .......... -- l i Page 111 of 276 _.;.; :~ .. ::.·· !' . :~! -··---·-· . ~.::mmr·--in--·---~.._ ... ...;.....,,,._, ______ .. -.. -·-.. ·---· vr~Af [ffr COU~Cfl 0' C:CHACR 11J, 1'ftt., r Ar;r J ·-=-=--querente~ P lzza HtJt will be hiqh bidder. Hr-;-~at.h rerlie~, he dineqre~d with th11t. Hayor Wnqon~r declared the ite• out of ord~r, ns it did not relele t~ ,.":·,t : the rft:toninq. Councilwt>111an B11il1e objectf!d, r.>q:l11inin~ • % the reznning hearing is baaed on the preMi&~ that Pizz n ~ j Hut May go in. Atty. Rogers explain~d, his Nov. 17 ~·~ •e•o relates to no preference and no co••ission. The --~;:At . ~·"f City would be initiating to 11ell to preclude 1tBle. Hr. · • --~-.. -Nath replied, aft!!!.-that .letter, Pizza Hut asked to iu-f -····-----:-oav. They followed all procedures for 1~tright or ------. ·---""''--1 ._ ...... .,,._ ..... """ ... --+~=~=~-==1~~=~:i:1!~ ;~='1~~-:;:~~:;e:·~ri:~~·;:~i!~-~B~~-~-~~!i~ -~ ---~ ----~r .. •· . -:: .... :'- · 1·;;. '. . . . . '4# :i· . :.:. . -~. ·~:: ... • replied it would be brought to Council if there was any 1 i question. b. Howard Hackney, Kenai. '7S na~es out of s total ~f 6,000 people is not overwhelming. The buffer strip on Walker is gone, HEA and the 7··11 store. The fire school on Lawton Acres ia gone but the 8pot is still there. It is s only B •atter of time before someone has to have the last piece down there. There are many areas in the City that have not been touched. We havP. had an individual fro• Soldotna and 2 from Anchorage eay the area should be co••ercial. Where does the man fro• Kenai co•" in on this? The Council is supposed t 0 represent hi•. The people in Valhalla and the peoplP. around the proposed trailer court have told the Counci ! they do not went co••~rcial in their area. Council 1hold listen to the• • c. Suean Smalley, Beaver Loop Rd., Kenai. There are people that do not live in the are1 that are concerned~ It i• one or the few areas thet could be used for a bike trail. She did not want it to stay-conservation, it should go forward. Anchorage had to buy back land for green belt. If we had to buy back land it would have to be used for ball fields, there are no trees left. d. Karen Dorcas, Kenai. She was speaking for Cheryl Sa•ples and herself. They went through the area and got 1'0 signatures in ,_4 hours opposing this. She di~ not know if the Pizza Hut petition was in favor of rezoning or in favor of a Pizza Hut. She had heard ~. people were hired to get petitions for Pizza Hut, theirs waa volunt1ry, o, Randy Cole, Kenai. P&Z haa turned this down 2 time~, Landscape Bd. has turned this down, Beautification Ca••ittee has turned thi~ down. They are not talkinq about Pizza Hut, but rezoning. The Landscape Bd. is · . trying to do eomething creative we can all enjoy. TQ · __ .,........._, .. __ -Change th·ia .. h .. ·ga-ing "89ainat what thef. ar•-trying to do. There are other places av1ilable. One asked Pi z zR Hut to 9ive them an offer. Pizzi Hut did not reply. ·-! :?,4 --~;?.:~.: .-.. .:-:. _____ .~ . -. .-.. ··---·~ ·-Page 112 of 276 ' .. ' ·~-. . . , .... ·. <::!~· 't:r.· : ~:;· ~-; .•. :-\· .. it .. ; : ' •. .. -. l :;· .i ~;.·· .. ' •!. j.·· . .... -~ .~· ::· .. ' ~-T:" - l • j -~· .::1 ;:j ----------------------.-·-~----· .... ,,_.,.._ - · .. q r. I f Y C(llJ .. C II. ··r 1ornr.R 1R. 1'Jff~ . ·,r 4 -r. g. Jt 1B also the idtta of anothl!r pizr." hut. lhf!re in n ti•~ to cr"ntn an area we cnnnot touch. Jn mnftt eitiea they hn ve to buy back n qreen belt, WI! havr, B ch •nce to have one now. Jerry R. (;11rl11on, KBmai. CouneiL...vnted thl!!. - conservation ;r:on" 1-1/2 yr1t. A'JO. Th" Bame pr.op'lewr.rr, on the Council. He did not know why they would chanqr.. The ftrea ne,,dB to he preserved, along with other area~. People have made mistaken in the States ovr.r deve lop111ent. Cheryl Hain, 207 Walker, Kenai. The neighborhood in just aterting to improve. She anked Council, what if this was . thd r nsi9hborhood? ... SofHJ uy-they coulcj juat ....... --..... ---... -· . .. -~ . ;:.,a;:.-._ .. -~~~-~-~~!-of h* ~-a~=~-do_~Jtl~f.-~. . ~~ .r _ -----t .. Bill Osborne, Inlet View 5/0, Kenai. Mrs. Hain haa to 1 - .. /~~:-·. ' .:-. _,., · . ,. .. -~\ -·· . --.. . "'\ . . , _'":··· h. 1. j • i· k • : l • worry about increased traffic in Lawton, aa ahe ia t : expecting a child. Reqarding the gre~n belt, the residents hav" had a concern and asked to keep thin. Other areas in California have found the whdo111 of f · conaerv•tion ere••• He ••ked, how ~•ny people would I( went to live ne ar a pizza hut? There is nothing magic to having it there. People would go to it no Matter where it ia. ~ Oon Oberg, Kena i. He hsa used the area for ecological study •t the high s chool. It is not big but it has wild areas. He i• not ••king for no developMent in the future, h" doee not know what it will be like in the future. To decide to rezone now ie poor econoMics. It may be worth more in the future. We should not worry about the big bucks, but the quality of life. People have bought property there with the conservation are~ in •ind. Jerry H•nsen, Ken•i. There ie other land available. He would like to aee ua hold onto this land. II people rro~ Kenai went to Anchorage and asked to build on their green strip, they would be laughed out of town. Jerry o. Carlson, Ken a i. other ) corners that are up the 4th? There ia no Maybe 20 ye•re fro~ now, Mr. Nath referred to the developed. Why should we give re•eon to change thia now, Lloyd Carey, Kenai. If Pizza Hut goes in, he stands to lose More than anyone else. His house haa a 4 plex •rou nd it. He could not sell with the Pizza Hut there also. He naa asked to l eave it conaervation . J75 sign•tures ia not much on the petition . This may be prime commercial, but the people have asked for . _ ... ~~t'.•'-r.v•~.ion ,, ... ····-'~--~ ··-·· ........ , ..... ·---···-· ._, .......... ·-·····-.·-.. . ~ .-~ :" .. ·: ;" ·\~~~ :. t~;~;~~{ . _< .-.~-,>~!;.~.:.~ .. ~.·; ·. ' ..... ' ... r-.· •• . ••.• "':· ·~ t~ ..... \,·. . . t ; .. -~~~~:~~~~-}~-!~{;:h~·:{ I • Page 113 of 276 ··-·--"·· .. ---------------------.-i------------. --~ r:-:*· . .,...,..._,... .. _.. - .... . . .. . i . : .... l ' ~ ! i .1 .. ........ ~ ·1' . .- .. ..:.'-... ··--.. . • ... ;.~ J .::. j - Y.f.~AI CJfY COUNCii. or:c£HACR 18, 1?A~ ~J'A'iC ~ •• n. o. r•th"r Targonnky, Ru1111lnn Orthodow Chor~h. H~ suqqn1ttftd P11.Zll Hut b" put no1111'!pl11t'!" "1"" nor.h 1111 frr .. Heyer. He w1111 told it would h" 111or" nwp,,n111v" so111,,pl11ce "ls,,. Th"r" 11r" 1t lot of v11r.11nt. 11r,,1111. I" City 111 11howlnq r11vorlti11111 by qivlnq it tn hlM eh,,11p~· . Thst ifs unfllir. C.£. W11llingford, 1(19ne1. rro11t th1t t,,11ti11umy it 11hn•ll" be obvious th17y do not w1Jnt......il-'4 _ P11.z1!-H11t r.nultf h111 l < so~eplece ~lee. A lot eould bft dnn,, with"t.111,, 111nrl, leevft it alone until then. If Pizza Hut 111ov,,,, Jrt tit~., will went a beer end wine license. School11 11nrl churches ere neer • Wende C11rleon, Kon1i. She doen not w11nt busin""""" neer her ho~e. They """d e buff~r bfttw""" thftM 11nrl buei"111111e11 • . ----.. ~,.---;---;~=::::::::::::...,..::..-=·-- ..... ·--·"r ifS·· • ·~-( ~~~-.;f:._. ·--P_•_ -:...-~~ .... ,. ~ 0111111 y T!!_~!l!!'on, Inl!_t VJ.~1!.!..-H." _f10t~~~"!.!:.• ~~r_,,.Y_,__ -~ .. --=- .. ---~"..c;_s~h-iltona .y~· -t'T-=P~~~-~·---~.-.. .. . . ,_ . ~.· ·. I ' I h•d the zoning eh1nged, 1 used car lot eould b" put !·· there. Neither Hr. Nath nor the City ie wlllinq to atand the lou in yft!ue (to the ruidentff). One p,,r,,,,,, who h11d been 11eked to eiqn the P"tltion w11e told it w~~ next to Creycroft. Councilwomen Bailie euq9eeted creeting •new zone for thl~ type of .are• •nd require a vote of th• people to chanqe. VOTE• (raUed)s Motion failed unanimously by roll c•ll vote • • Lessee of Airport Lends Hunt Purchaee. HOTIONt VOTEs (F'dled) s Ye• -Meaelu, HO /• Monfor, ..n-i:'tHll...-.,,... ( C-4 Ord 2-85 lncre11. Rev/Appne P 'or Grant Reimbureemente • .... , •. ,~,,,,... ..... ·~i+ir·•Al:..·· ·~ .~ ................. ,,,;...\,,i ...... , .• ,,,. ........ ~ .................. ~-.... , ·' ............... . f Aft.. fnr f r l l ·, ·. I I I I Page 114 of 276 ) VOTE: Hammelman Absent Twait Yes Eld.rid e Yes Barrett Absent Glick Yes MOTION PASSED. Glick informed t ~blic of 5-day appeal period and tha be in writing and submitted to the __ City Clerk. 5-d. PZOS-36 -An application to rezone the property known asap ;ti.on of Section 33 S 1/2 S 1/2 SW~ Lying South of the Kenai Spur Highway ~ (also known as Lawton Acres -10095 Kenai Spur Highway) from · !f\ conservation to limited commercial. Application submitted by Linda L. Snow, City Manager, City of Kenai, 210 Fidalgo Avenue, Kenai, Alaska. Kebschull reported: • The identified area as the green strip between the city proper and the Kenai Central High School and Challenger Learning Center. • The application was submitted by the City of Kenai and was to rezone a portion of the area, beginning at the intersection of Lawton /Walker and the Kenai Spur Highway to the gully. • Offered a history of the attempts to rezone the area and noted, currently, due to some interest for purchasing a piece of the property for development, council requested a rezoning application be submitted for Limited Commercial Zone. • The Comprehensive Plan identifies the property as conservation, however it also notes, where it is appropriate, the city should consider re-designating areas currently zoned for conservation to conform with expected uses. • The Comprehensive Plan notes neighborhood concerns related to areas close to residential areas being rezoned or conditional uses allowed, particularly close to the Spur Highway. • The city is known as a lineal growth pattern for commercial use and businesses believe they need visibility from the Spur Highway to exist. • It is believed by administration, the rezone to Limited Commercial would m eet the needs for commercial development which meets the limited commercial requirements and preserves separation from the residential areas (this property is separated by Lawton Drive). • The limited commercial zone includes specific development requirements, including buffer landscaping and also limits structures to 3,000 square feet. • It was her recommend ation the rezoning would meet the Comprehensive Plan and the Kenai Municipal Code for an amendment and believes it would be a positive compromise to meet the development needs of the city and preserving space and providing separation between commercial and residential areas. PLANNING & ZONING COMMISSION MEETING JUNE 8, 2005 PAGE 10 Page 115 of 276 ) Public hearing was opened. ) ) Roy Wells, 410 Lawton Drive, Kenai --Wells stated his objection of the rezone and noted his concerns as alleyway requirements, the Kenai Economic Development Strategy recommending avoidance of sprawl and concentrating business development to the downtown area; and, building new buildings and causing a higher number of abandoned buildings. Wells also reputed comments in a recent letter to the editor indicating the property owners in the area thought positively of the proposed rezone. William Nelson, 209 Susieana Lane, Kenai --Comments included: • Wants it to stay zoned Conservation as it was set aside. • He is not opposed to new business, but doesn't feel it is the right place or time to install that business (Kiel}. • The area is a nice buffer between Lawton and the neighborhood . Carol S. Baumer, 411 Rogers Road, Kenai --Referred to the Comprehensive Plan: • Pages 26 and 30, related to the city center and Millennium Square. • Page 34, related to Kenai residential subdivisions. • Page 36, related to abandoned business areas / commercial strip development. • Page 39, related to integrating open space with neighborhoods (visual appeal, neighborhood identity, enhance residential property values, etc.}. Janice Magee, 218 Susieana Lane, Kenai --Comments included: • Is very supportive of business in the community. • Children use the area for biking, running, playing basketball. • For the safety of the children in the area, requested voting against the rezone. Jim Blythe, 422 Lawton Drive, Kenai --Comments included: • Lives at the corner of Rogers and Paula. • A lot of noise from the highway is blocked from the area due to the wooded lots included in Lawton Acres. • People use the area for walking, biking, jogging, rollerblading, etc. • Would hate to see the increase in traffic that will probably occur. • He objects to the rezone. Gina Kiel, 404 Lawton Drive, Kenai --Comments included: • Is a resident of the area and is a potential business owner in the area. • She is the closest resident to the area being requested to be rezoned. • Assumed the Lawton Acres property was zoned commercial when she built her house and assumed at some time, business would move into the area. PLANNING & ZONING COMMISSION MEETING JUNE 8, 2005 PAGE 11 Page 116 of 276 • She was the quote in the newspaper article and had some neighbors tell -) her they supported the rezone in order for adding to the development in Kenai. ) ) • She did not go door to door to ask opinions and she did not have anyone coming to her door to discuss the issue. • After the limited commercial zone was set, she didn't think there would be a problem. • She and her husband have been looking for two years for a site for a business, checking abandoned buildings, property availability, etc. and found nothing suitable. • Supports the rezone of the property and would even if she was not interested in building there. Jerry Carlson, .105 Paula Street, Kenai --Read from a letter signed by Wanda Carlson, his wife: To: Kenai City Council and Planning & Zoning Commission: As a homeowner in a subdivision lmown as Inlet View, I am against any and all clearing, destruction and construction on or in the green strip. There are many locations vacant between McDonald's and the Moose Cl ub and also on the streets connecting with the Kenai Spur. These could house a beauty salon. Our noise pollution has increased greatly during the past 33 years, we have lived there 33 years. We need to maintain the existing buffer in order to prevent further destruction. Thank you. Wanda R. Carlson, 105 Paul Street, Kenai. Ron Fullinck, 424 Lawton Drive, Kenai --Comments included: • Purchased their home 13 years ago and were told the area was zoned Conservation. • They want to keep the buffer between the highway and Lawton. Mike Beck, 406 Lawton Drive, Kenai --Comments included (submitted a packet of information with pictures of available property and a letter): • A premise for developing the area had been stated as being visible, particularly from the Spur Highway. • Identified properties within 1/3 of mile from Lawton Acres and included them in the packet of information distributed. • He questioned the logic of developing Lawton Acres when there are so many available properties/buildings within 1/3 of mile of the area. Greg Daniels, 426 Rogers Road, Kenai --Comments included: • He and his wife have lived there for 25 years. PLANNING & ZONING COMMISSION MEETING JUNE 8, 2005 PAGE 12 Page 117 of 276 ) ) • Noise is increasing and the area has developed around them (junior high school, golf course, Oilers Park, space center, large high school, five subdivisions, hockey rink, etc.). • Cutting down trees would increase noise abatement and allow noise from the city property to fi lter through to all residents of three or four subdivisions and open it up to other problems. • Thinks there is land in the city to fit the limited commercial zone, but believes this is the wrong parcel. • Thinks the area zoned Conservation since 1985 should remain in conservation as he believes it is needed much more now than before 1985. • Reading from the staff recommendation, he did not believe the area is "surplus" land and is needed for a buffer for privacy for the subdivisions, safety of children, noise abatement, wildlife, etc. • Believes their property values will be affected by the development of the area. • Is particularly against urban encroachment in this area. • Would like to see the city grow within and not linearly and would rather see a centrally located Kenai. • People service-type businesses don't need visibility from the street. • There will be an increase of traffic. • Keep the green strip as a separation from downtown Kenai. Daniels distributed pictures of the area during different months of the year. Bryson explained Linda Snow submitted the application for rezone on behalf of the Kenai City Council and the staff report/recommendation was prepared by City Planner Kebschull. Bill Osborn, 423 Rogers Road, Kenai --Comments included: • Same concerns expressed by Daniels and others. • Has lived in the area since 1969. • Believes the green strip is an asset to the city. • Walked Inlet Woods Subdivision with two other residents and 90% of the homeowners they spoke with strongly opposed the rezoning. Kathy Watson, 308 Haller, Kenai --Comments included: • If there are animals, wildlife, children playing, and noise, the residents would want someone to keep the animals out of the area. • Where she lives, there are trees, but there is still noise from the airport -- development of the area would absorb some of the noise (in the Lawton Acres area) and keep the wildlife away from the children. Betty Osborn, 423 Rogers Road, Kenai --Comments included: PLANNING & ZONING COMMISSION MEETING JUNE 8, 2005 PAGE 13 Page 118 of 276 ) ) ) • Wants Lawton Acres left as a conservation zone because of the children playing, traffic from the high school, noise from the highway and noise from the airport. • Very concerned about the noise it will cause. • The core of Kenai should be kept in the core of Kenai; there are empty buildings available; she felt there are other suitable sites. Tom Thompson, 111 Paula Street, Kenai --Comments included: • The six lots proposed for rezoning, and if the rezone is approved, the lots would be developed and populated with businesses, but thinks it would be detrimental to the welfare and safety of the community. • Thinks it is a bad idea --it was in 1986 when it development of the area was first proposed, and it still is. Bill Munson, 215 Susieana Lane, Kenai --Comments included: • He's a new homeowner in Inlet Woods (under a year). • There are children using the area for biking. • There is a lot of wildlife in the area. • Concerned about property values being affected. • One reason he bought in that area was because he believed Lawton Acres would remain a conservation zone. • He is against the rezone. Nate Kiel, 404 Lawton Drive, Kenai --Comments included: • Respect and appreciated the comments offered. • He and his wife were encouraged by the City of Kenai to pursue the area for development. • Feels it would be a win/win situation. • Didn't go door-to-door, but h ave had people approach him about the city opening property for development. • His wife (Gina Kiel) submitted 25 l etters from city residents in favor of the rezoning, including neighbors directly in the area as well as other close neighborhoods. • The proposed zone is not a half-baked idea to promote business at the expense of environment and residential neighborhoods. • Administration worked diligently to initiate a new limited commercial zone in the city, designed to promote low-density commercial and professional business without negatively impacting residential areas. • The new zone limits the scope of development that may occur and provides for buffers and restrictions for new businesses in the area. • Immediate economic benefits, including diversification of the economy; bring in more tax revenue; bring income from land sales; existing businesses would PLANNING & ZONING COMMISSION MEETING JUNE 8, 2005 PAGE 14 Page 119 of 276 ) I ) benefit from indirect sales; enhancement of the BLT (Buy Local Today) program; stronger Chamber of Commerce; a greater cash flow; and, would expand services and retail economy throughout the city. In response to newspaper articles and quotes/misquotes, Kiel responded: • The City should not subsidize land sales --No one has offered them a sale that would mean the city would be subsidizing a sale to them. • Should not clear cut --He lives in Kenai because it is more esthetically pleasing and more to offer; no one has proposed clear-cutting as there are r estrictions, requirements for buffers, etc. • Should encourage renovation of existing structures --Though he agrees, owners have to want to renovate, find it profitable to accommodate prospective buyers, etc. • This would not be 'sprawl' as there are current businesses on the north side of the Spur Highway. • There's a significant buffer between the drainage to Rogers Road and the Challenger Center /multipurpose facility. It's much closer to food franchises, etc. • There has been public testimony at both the council and commission levels supporting the rezone. • Thinks the 60-62' area between the property and the sidewalk is sufficient. • Would be in support of the rezone even if he did not win the competitive bid. Kristine Schmidt, 513 Ash Avenue, Kenai-:--Comments included: • Believe the council indicated they were interested in a head count on the issue and urged people to testify. • Opposes the development as she did 20 years ago for the same reasons. • She took pictures of empty and 'for sale' properties in Kenai and submitted the pictures (found four in one-half hour). • The finding in the Comprehensive Plan states, " ... Kenai is fortunate to have an ample inventory of privately-owned vacant land suited for its future demands." • Considers it a spot zoning request. • Strip development in that area has been turned down twice because, she felt, people in the community do not support strip development. • Nothing has changed in 20 years as far as the reasons why people do not want the area developed. • Didn't think the city properly complied with the public posting requirements (not the required amount of signs posted). • There are a number of areas in the Comprehensive Plan that would not support the development. • Development of the area would be contrary to the latest airport land study and consultant's report (stop selling airport land and begin leasing it). PLANNING & ZONING COMMISSION MEETING JUNE 8, 2005 PAGE 15 Page 120 of 276 ) ) ) • Development would be contrary to the KEDDS report (included in its goals is the desire to cut down on strip development and revitalization of the downtown area and support existing businesses). • There is no evidence or statistics in the report to support the statement that businesses believe, in order to survive, they must be visible to traffic. • Doesn't believe the city needs to do the development; money is available in the Airport Land Fund. Pete Hansen, 418 Rogers Road, Kenai --Comments included: • Has lived at this address for 32 years. • He participated on the KEDDS Committee. • KEDDS report includes a goal to put together a basic design for Millennium Square , develop a common ground on a portion of the 21 Acres for small businesses, and develop a business center in Kenai. • Hopefully in time, there will be more focal orientation of small businesses in an area where people can walk to them instead of driving. Public hearing was closed. MOTION: Commissioner Bryson MOVED to recommend approval of the rezoning from Conservation to Limited Commercial of a portion of Section 33 S 1/2 S 1/2 SW 1/4 Lying South of the Kenai Spur Highway. Commissioner Eldridge SECONDED the motion. Amen noted the following: • The meeting received a lot of good information from the neighbors and those affected by the proposal. • Concerns expressed were quality of life, value of homes, noise, etc. • Appreciation of the work put into developing a limited commercial zone, including limited square footage of buildings, buffer zones, etc. • Question before the Commission is whether this would be the correct application for the use of the zone for this particular property. • He appreciated the input and from it, learned this probably is not a good match . Eldridge noted the following: • Appreciated the input from the public. • Unfortunate the use of a limited commercial zone was not advertised more because it was designed to be a buffer development. • From the testimony, he felt this probably would not be the time to or the place to use the limited commercial zone. PLANNING & ZONING COMMISSION MEETING JUNE 8, 2005 PAGE 16 Page 121 of 276 ) ) ) Bryson noted the following: • He is supportive of the concept for a limited commercial zone. • Did not think this was the tract with which to apply it, even prior to the testimony given. • For persons who live relatively close to the highway, noise is a major issue and gets worse in the wintertime and the proposed lots would not be able to be developed without clearing a major portion of the buffer. • Would not support the motion. Amen noted a comment made related to concern about driveways crossing where people now walk. He asked if all the road access would be toward the highway. Kebschull explained, that would be a platting issue. She noted, a preliminary plat was provided to the public, but no final decisions had been made as to development options. VOTE: Hammelman Absent Bryson No Twait No Eldridge No Amen No Barrett Absent Glick No MOTION UNANIMOUSLY FAILED. Glick noted, the actions could be appealed within 15 days. Letters of appeal must be submitted to the city Clerk. ITEM 6: ITEM 7: 7-a. PZOS-38 --An applica · for a Home Occup on Permit for a daycare for the property known as t 3, Yragui S division (503 Candlelight Drive), Kenai, Alaska. Applica · tted by Carolyn Barnes, 503 Candlelight Drive, Kenai, Alaska. Approved by consent agenda. 7-b. Discussion/Recom endation --Kenai River Cerr r Project #5767 -An application sub · ted by Gordon Griffin , Kenai Golf rse, to withdraw approximate 00 gallons of water a day from Boat La un Creek for watering f greens. PLANNING & ZONING COMMISSION MEETING JUNE 8, 2005 PAGE 17 Page 122 of 276 COUNCIL STRATEGIC PLANNING WORK SESSION AUGUST 20, 2005 PAGE2 Re co endation: Graves will contact communities to find out how a building ce ordinance has worked out and come back with a recommendation. Public Works M ger Kornelis reviewed the results of the l atest study: hich recommended furili r study and noted, he has been told $500,000 i coming to fund it. The federal gove ent has said it is not a Corps project. Recommendation: a response to the latest study. Street Improvement Fund: Recommendation: Adminis and funding options. ) Wellhouse Remediate S Wellhouse: Discussio system and it could h or only those on the water ) Shop Remediatio . Graves stated reme does not allow arrowing for remediati esent the impact of we house rovement on rates. In 0 an with proposed fund' Y.LLj,c.L ..... stration is to present a capi improvement council a roval: Recommendation: nistration is to draft an ordinance to increase the amount to $25,000. Increase the limit of purchase orders requiring council approval: Recommendation: Administration is to draft an ordi $15,000. Lawton Acres: · crease the amount to Page 123 of 276 ) COUNCIL STRATEGIC PLANNING WORK SESSION AUGUST 20, 2005 PAGE3 Bringing the rezoning of Lawton Acres before council for consideration was discussed. * Recommendation: Leave it alone. Grant Writer: Recommendation: dministration is to rep at budget time, addressing the need or contract work Recommendation: Tourists to Kenai: Recommendation: dministration is to draft a code amendment to allow for an - The work se ion ended at approximately 11:43 A.M. Page 124 of 276 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2017-51 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, ACCEPTING AND ADOPTING THE 2017 AIRPORT MASTER PLAN UPDATE. WHEREAS , the Federal Aviation Administration (FAA) requires as part of the terms and conditions of its grant support that the City formally adopt a master plan ; and , WHEREAS , in July 2010 , the FAA approved and offered to the City a grant agreement to "Conduct Airport Master Plan "; and, WHEREAS , the master plan consultants , Wince-Corthell-Bryson , prepared a new master plan for the Kenai Municipal Airport ; and , WHEREAS, the Kenai Airport Commission , under KMC 21 .20.010 , shall develop , adopt, alter or revise, subject to approval by the City Council , a master plan for the airport development; and WHEREAS , the Kenai Airport Commission unanimously recommended City Council approve th e 2017 Airport Master Plan at th e regularly scheduled meeting of July 13, 2017 meeting ; and , WHEREAS , the Kenai City Council concurs with the recommendations of the master plan . NOW, THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA : Section 1. That the 2017 Kenai Municipal Airport Master Plan is hereby adopted by the City of Kenai. PASSED B Y THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 2nd day of August , 2017. BRIAN GABRIEL SR , MAYOR ATTEST: Jamie Heinz, A ct ing City Clerk Page 125 of 276 'Utlqpe a1lth a Pa.ft, e~ a1ith o. Fatfif'e '' 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax : (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai Cit~C~unc· Paul Ostrander, City Manager 9. Mary L. Bondurant -Airport Manage July 26, 2017 Resolution 2017-51 -Adopting Airport Master Plan The purpose of this memo is to recommend adoption of the Phase 3 Report presenting the Airport Master Plan. The master plan process began in August 2010 with a grant from the Federal Aviation Administration based on a scope of work that was tailored to the Kenai Airport. The master plan is a comprehensive study of the airport that is the City of Kenai's strategy for the development of the airport based on the identified short-medium-and long-term needs; whether it be expansion, modernization, or airfield design requirements. City Administration appointed a Technical Advisory Committee consisting of representatives from the City and Airport Administration, Airport Commission, Planning and Zoning, Lands, and Finance to consult on the process. Attached is the Executive Summary of the updated master plan for your review that describes the timeline and elements of the Phase 1, 2, and 3 reports. The Phase 3 report was presented to Airport Commission at the regularly scheduled July 13, 2017 meeting. Commission unanimously approved and recommends the City Council adopt the Phase 3 report for the Airport Master Plan as submitted by Wince-Corthell-Bryson dated July 2017. attachment Page 126 of 276 Chapter 1 EXECUTIVE SUMMARY 1.1 INTRODUCTION The Kenai Municipal Airport (also referred to as the "Airport" throughout this report) is geographically located in the northwest portion of th e C ity of Kenai on approximately 1,481 acres of land at an elevation of 99 feet above mean sea level. The location of the City with re spect to other Alaska communities and the Airport within the community are illustrated on Figure 1-1 . The Airport is owned and operated by the City of Kenai . An Airport Commission serves as an advisory board to the City for airport and aviation-related issues. The Kenai Municipal Airport is included in the Federal Av iation Administration's (FAA) Na tion al Plan of Integrated Airport Systems (N PIAS ). The NPIAS defines th e rol e an d futur e development of public-use airports throughout the United States . The Airport is classified as a Commercial Service-Primary Airport in the F AA 's overall national system of airports. Co mm ercial Service a irports are defined as those ai rports h av ing 2 ,500 or more annual passenger enplanements. Primary Airports are defined as tho se Commerci a l Service airports ha v ing 10 ,000 or more annu a l passen ge r enplanements. The designated role of the Airport is to serve short-haul a ir carrier routes of less than 500 miles. The Kenai Municipal Airport is included in th e Alaska Aviation System Plan (AASP) prepared for the State of Alaska, Department of Transpo rtation and Public Facilities. The AASP classifies the Airport as one of 28 Reg ional Airports in the State . A Regional Airport serves as a transportation and economic hub to more than one community. Kenai Municipa l Airport Master Plan The general objective of the Airport Master Plan is to provide a long-range plan to guide deve lopment of the Airport. This will maintain the Airport as a valued transportation fac ility for the C ity of Kenai and those parts of the surrounding Ken a i Pe ninsula Borough for which the Airport is the mo st convenient aviation facility . The Airport Master Plan was prepared in several phases. The Phase 1 Report documented the Aviation Activity Forecasts, Existing Airport Conditions and Airport Sustainability Practices. Pas senge r Terminal Building Existing Conditions Surveys, including architectural , structural, mechanical and e lectrical inspections were documented in Appendix A. A descrip ti on of th e Aeronautical Survey and Airport Geographic Information System Mapping re quired for the new Airport Layout Plan draw ings, prepared in Phase 3, was presented in Appendix B. The Phase 2 Report documented the Airport Facil ity Requirements, Alternative A irp ort Development Co ncepts and E nvironmental Overview. The Phase 3 Report documented the Recommended Airport Master Plan, Facilities Implementation Plan and Financia l Feasibility Analysis. The new Airp ort Layout Plan drawings were presented in Appendix C. The three Phase Reports have bee n combin ed into thi s Airport Master Plan Report. 1-1 Page 127 of 276 Figure 1-1 LOCATION AND VICINITY MAP Kenai Municipal Airport Master Plan 1-2 Page 128 of 276 Since the Airport Master Plan was initiated in 2010, several events relevant to the Airport Master Plan have occurred as noted be low. In 2012, under the FAA Modernization and Reform Act (FMRA) an Airport Recycling, Reuse and Waste Reduction Plan is now required as part of an Airport Master Plan. In 2013 , the tree obstructions on Airpo1i and City-owned property were removed. In 2013, the City updated the 2003 Comprehensive Plan. In 2015, FAA issued updated FAA Order 1050.JF, Environmental Impacts : Policy and Procedures. In 20 13 The FAA issued a new Airport Layout Plan Checklist with significant additional requirements. In 2015, the State of Alaska notified the City that the State DOT &PF will be unable to continue providing a 3 .125 perc ent matching share grant to local sponsors for FAA Airport Improvement Program grants. In 2015 , the FAA redesignated the runways from 1-19 to 2-20. However, the runway designations were not repainted until 2017. In 2016, the City updated the 2003 Comprehensive Plan again. In 2016, the City updated the zoning within the Airport Reserve Boundary. In 2016, Taxiways F, G and H and the general aviation tiedown apron and the float plane basin overflow weir projects were completed. The Phase Reports incorporated the implications of these events after they occurred as noted in the text. Kenai Municipal Airport Master Plan 1.2 FINDINGS AND RECOMMEND A TIO NS The principal findings and recommendations of the study are presented below. 1.2.1 Aviation Activity Forecasts The aviation activity forecasts, based on the high enplaned passenger forecasts, are summarized below. The Kenai Peninsula Borough is forecast to increase from a population of 55,712 in 2010 to an estimated 66,700 in 2030, an average annual increase of 0 .9 percent. The Air Service Area is forecast to increase from a population of 35,191 in 2010 to an estimated 42,000 in 2030, an average annual increase of 0.9 percent and continue to account for about 63 percent of the total population of the Kenai Peninsula Borough. Passengers are forecast to increase at an average annual growth rate of 1.6 percent from 97,041 enplaned passengers in 2011 to 131 ,600 enplaned passengers in 2030. Annual aircraft departures by the scheduled commuter air carriers are forecast to increase from approximately 9 ,000 operations in 2011 to 10 ,200 operations by 2030. The total volume of cargo and mail currently reported at the Airport is forecast to increase from 1,384 tons in 2011 to 1,575 tons by 2030. The reported air cargo does not include the transportation of bulk fuel to outlying areas or the annual fish haul activities. An estimated 7,500 tons of bulk fuel were flown out of the Airport and an estimated 200 tons of fish were flown into the Airport in 2011. Total aircraft operations, on a 24-hour basis, are forecast to increase from about 45,894 1-3 Page 129 of 276 operations in 2011 to 55,500 operations in 2030. Air carrier operations are forecast to remain at about 1, 100 operations. Commuter/air taxi operations are forecast to increase from about 28,219 operations in 2011 to 34,000 operations by 2030. These operations include scheduled and nonscheduled passenger and air cargo aircraft and helicopters. General aviation operations are forecast to increase from 13, 115 operations in 2011 to 16 ,800 operations by 2030 . Itinerant operations are forecast to increase from 6,550 operations in 2011 to 8,400 operations by 2030. Local operations are forecast to increase from 6,565 operations in 2011 to 8,400 operations by 2030 and to continue to account for about 50 percent of total general aviation operations . The water runway is forecast to accommodate an estimated 1,3 00 operations (about 7 percent of the general aviation aircraft operations) by 2030. The gravel runway is forecast to accommodate an estimated 500 operations (about 3 percent of the general aviation aircraft operations) by 2030. Military operations accounted for 3,589 operations in 2011 and are forecast to remain at a level of 3,600 annual military operations. Annual aircraft instrument operations are forecast to increase from about 10 ,800 operations in 2011 to 13,000 operations by 2030. Based aircraft are forecast to increase from 85 aircraft in 2011 to 95 aircraft by 2030. Single-engine aircraft are forecast to increase from 76 aircraft in 2011 to 82 Kenai Municipal Airport Master Plan aircraft by 2030, multiengine propeller aircraft are forecast to increase from six aircraft to eight aircraft and helicopters are forecast to increase from three helicopters to five helicopters. Peak month enplaned passengers are forecast to increase from 11 ,090 pas sengers in 2011 to 15 ,800 passengers by 2030. Daily enplaned passengers during the peak month are forecast to increase from 360 passengers in 2011 to 500 passengers by 2030. Peak hour enplaned passengers are forecast to increase from 54 passengers in 2011 to 75 passengers by 2030. Peak hour aircraft operations are forecast to increase from 21 operations in 2011 to 28 operations by 2030. FAA accepted the forecasts on February 26, 2013 for proceeding with the airport master planning activities and formally approved the forecasts on January 13 , 2016. 1.2.2 Airport Property Acquire an additional 12 .6 acres of land to the southwest of Runway 2L-20R for future airport development and protection. Acquire additional avigation easements over approximately 3. 75 acres north of the Kenai Spur Highway. Acquire 80 acres northwest of the Airport for future airport purposes. 1.2.3 Airfield Retain Runway 2L-20R as a 7,855 -foot runway with a width of 150 feet to handle commuter aircraft, business jet and other large aircraft expected to use the Airport. The Runway 2L threshold is retained to provide only 7,575 feet for landing on runway 2L and 20R. a full-length parallel taxiway for Runway 2L-20R is retained at 1-4 Page 130 of 276 600 feet to the east with one additional entry/exit taxiway. Retain Runway 2R-20L (gravel runway) at 2,000 feet long and 60 feet wide. Retain Runway 2W-20W (water runway) at 4 ,600 feet long and 252 feet wide. A separate 150-wide water taxi channel is planned west of the water runway. Reserve space, at least 500 feet west of Runway 2W-20W centerline, for a potential relocated gravel runway 2,400 feet long by 60 feet wide on the west side of the Airport. Rehabilitate Runway 2L-20R, taxiways, terminal aircraft parking apron and general aviation tiedown apron pavement based on the Pavement Maintenance Management Plan. Retain the present loading and unloading helipads near the passenger terminal and Airport Operations Facility. Provide new loading and unloading helipads west of the FAA Air Traffic Control Tower. Implement the Float Plan Basin Level Control Weir replacement and General Aviation Area Storm Drain Sedimentation/Oil/Water Separator Drainage Improvements. 1.2.4 Airspace and Navigational Aids Enhance the capabilities of the Airport with a nonprecision instrument flight rules (IFR) approach procedure to Runway 2L with lower minimums than presently exist. FAA has indicated that, if all the obstruction penetrations, both on and off the Airport, were mitigated , the minimums could be further reduced. Do not recommend reducing the visibility minimums to less than % mile for Runway 2L as this would require larger runway Kenai Municipal Airport Master Plan protection zone, land acquisition and medium intensity approach lights. Retain a 2 ,500-foot long prec1s10n instrument runway protection zone for Runway 20L and a 1,700-foot long nonprecision instrument runway protection zone for Runway 2L. Recommend the City acquire in fee title , or enforce , the avigation easements within the runway protection zone for Runway 2L that extend outside the Airport property line . Recommend the City continue to work with affected private property owners to mitigate the remaining off-Airport tree obstructions. Retain visual runway protection zones, 1,000-feet long, for Runways 2W-20W and 2R-20L. Recommend that the Building Restriction Line on the east side of the airfield, north of the passenger terminal, be moved to the west edge of the existing lease lot lines. Also move the lease lot lines 100 feet west to create additional space for lease lot development. 1.2.5 Passenger Terminal Retain the commuter aircraft parking apron to accommodate up to six commuter-type aircraft positions for DeHavilland DHC-8 and Cessna 208 Caravan type aircraft through 2030 without impacting the itinerant aircraft parking to the south. Retain the aircraft parking apron and Taxiway J, adjacent to the passenger terminal building, to accommodate the commuter aircraft parking positions and allow up to C-130 aircraft to taxi along the west side of the apron. Reserve beyond 2030, or if air traffic grows faster than forecast , additional aircraft 1-5 Page 131 of 276 parking apron space to the north. The helipad and large itinerant general aviation spaces in this area would have to be relocated. Long-term expansion should also allow for expanding the aircraft parking apron to the west. Preserve the existing 25,000-square foot passenger terminal building which is generally adequate to accommodate the forecast 2030 demand. Modify and reassign some terminal building space, as necessary, to provide additional space for improved passenger handling services and increased passenger volumes including departure lounge/waiting area, passenger security screening, passenger ticketing and check-in, airline operations and baggage handling depending upon the number of air carriers, size of aircraft, security requirements and associated facilities. Provide an Airport Administration area addition. Modify and improve terminal building to address deferred maintenance and Code issues , including installing a new roof, rehabilitating the sprinkler system and implementing recent energy audit recommendations . 1.2.6 Air Cargo Continue to accommodate some air cargo as belly cargo on passenger aircraft handled through the passenger terminal building. Retain (and expand) the apron area for the air cargo refueling, bulk fuel and supplies , air carrier diversions, fire suppression, fish haul , military and larger cargo aircraft to the north of the FAA Air Traffic Control Tower. Kenai Municipal Airport Master Plan 1.2.7 General Aviation Retain the commercial aviation/fixed base operator lease facilities southeast of Runway 2L-20R. About 3 acres to the south of the passenger terminal vehicular parking lot are provided for additional commercial aviation/fixed base operator facilities. There are vacant lease lots of about 1 acre in General Aviation Apron No. 1 and about 1.8 acres in the F.B.O . Subdivision available. Provide about 3.6 acres for future commercial aviation/fixed base oerator and other aviation-related activities north of the State of Alaska Department of Natural Resources, Division of Forestry, facility. Reserve an additional 41 acres along an extension of Willow Street to the north for future aviation-related and/or aviation compatible development beyo nd 2030. Reserve space for lease lots along the west side of the float plane basin. Provide tiedown spaces for over 100 based aircraft in either the present City general aviation tiedown area or in the existing leas e lots in this area. There is also space for Civil Air Patrol-owned based aircraft on their own facility at the south end of the Airport. Provide space for at least 20 itinerant aircraft that is needed through 2030. The existing itinerant aircraft tiedown area provides 15 to 30 spaces depending on the mi x of aircraft. Recommend that hangars be consolidated in a few general areas on the Airport in the long term. One is the present area southeast of the passenger terminal area. The other is a new area east of the float plane basin water taxiway that would be developed on an as- required basis for I-hangars, executive or conventional hangars . 1-6 Page 132 of 276 Provide space for additional aircraft slips on the west side of the old float pond with access from Float Plane Road. Retain an aircraft parking area alongside the gravel Runway 2R-20L for use by taildragger aircraft with oversized tundra tires. Locate additional helipads for parking helicopters at the north end of the City General Aviation aircraft parking apron. Another helipad parking area is also provided near the FAA Air Traffic Control Tower. 1.2.8 Airport Access and Parking Retain the existing access roadways off Willow Street into the terminal area which are adequate to serve the passenger terminal, cargo and general aviation activity on the east side of the Airport through 2030. A future extension of Willow Street to the north is planned for future development beyond 2030 . Reconfigure the curbside roadway in front of the passenger terminal. Modify the public vehicular parking lot to handle different types of paid parking ranging from an honor system to a fully- enclosed parking lot. Space is reserved for another 50 spaces south of the existing rental car parking lot and an additional 70 space paved parking lot east of Willow Street. Relocate, or upgrade, the access road into the gravel runway, which tilizes an existing maintenance road entrance from Willow Street, when the aircraft parking apron and lease lots are extended to the north. Extend/realign the maintenance/perimeter roadway inside the north and west sides of the Airport property line. Kenai Municipal Ailport Master Plan 1.2.9 Airport Support Retain the Airport Operations Facility which is adequate for present needs. The Aircraft Rescue and Fire Fighting facility satisfies the required response time. Retain the FAA Air Traffic Control Tower and FAA Flight Service Station in their present locations. Reserve space for an aircraft wash pad on the City general aviation tiedown area. Extend and modify the utility systems on the east side of the Airport, which are well established, in the future consistent with the development recommended. Implement water and sewer improvements for commercial aviation development on the southwest side. Realign the Airport fencing as additional airport improvements are implemented. Retain the Alaska Regional Fire Training Center along Marathon Road. Retain the City of Kenai reserve water tank and adjacent camping area south of the float plane facility. The nonaviation uses on the east side of General Aviation Apron No . 1 are also retained. Expand the cemetery to the west, if required, on City-owned property within the Airport Boundary. 1.2.10 Capital Improvement Program Implement a three-phase Capital Improvement Program for the recommended Airport Master Plan. Phase I (through 2020) projects, which are considered the highest priority items to be implemented as soon as practicable, are estimated to co st $16 . 7 million. 1-7 Page 133 of 276 KENAI MUNICIPAL AIRPORT PASSENGER TER\HNAL IMPROVEMENTS 2017-2018 Scope of Work -June 27, 2017 Scope of Work Outline: The consultant will work with the City to develop a scope of work to address the near and midtenn tenninal facility requirements identified in the Phase Two Master Plan Report giving consideration to potential long term requirements through the twenty year planning period. The scope of work will define the planning and design services required to rehabilitate, upgrade and expand the passenger terminal taking into consideration but not limited to the following criteria: 1. Current airport master plan determinations 2. Stakeholder involvement 3. Update near and midterm facility requirements 4. FAA environmental review 5. Project phasing 6. Project design 7. City and FAA reviews 8. Financial considerations 9 . FAA project programming 10. Project Implementation J J • Construction Administration Environmental Reviews: The 2013 Environmental CA TEX is no longer considered valid, by FAA, due to the lapse of time since its completion, as well as the new requirements contained in FAA Order 1050-1 F, Environmental Impacts-Policies and Procedures. A new documented CA TEX will be required for this project and will be prepared and submitted to FAA for a review process concurrent with the phase one design. The consultant will assist the City in preparation of the CA TEX documents. Planning and Design: Under a planning and design grant the project will be broken down into planning and design phases with the first phase provided a firm not to exceed fee and the second phase provided an estimated fee for grant purposes. The second phase will be negotiated prior to notice to proceed once the City has selected the improvements to be completed. Phase One: Based on the approved scope of work, fees for the first phase and a notice to proceed, the consultant will complete the first phase of the project determining the facility requirements and a phased development plan . Kenai Municipal Airport Passenger TermiriaJ Improvements Page 1 Page 134 of 276 Facility requirements: At this time known, near and midtenn, Passenger Tenninal Facility requirements, based on the determinations found in Chapter 5 -Airport Facility Requirements, of the 2015 Master Plan Phase Two report, are as follows: • Deferred maintenance projects o Terminal building roof membrane replacement • Evaluate roof mechanical systems • Evaluate roof insulation system o Terminal building fire sprinkler system rehabilitation o Interior/exterior building upgrades • Exterior siding system • Interior flooring, wall repairs and painting • Interior/exterior lighting upgrades • Baggage makeup area expansion for secure and cold storage and overhead door air dams. • Air carrier operations area refurbishment • New second story airport administration area for environmental separation as well as due to displacement by present and future air carrier space requirements • Mechanical/Electrical room expansion for improvements and building code upgrades • Structural building code upgrades • Water, sewer, electrical and telecommunications utility upgrades • Miscellaneous terminal public amenities o Visual Information Systems o Wireless Computer service and portable kiosks • Terminal parking garage for airport manager's airport vehicle, air carrier tugs, and miscellaneous terminal building storage requirements, attached and/or detached. • Terminal pet release area. • Air carrier equipment parking shelter i.e. deicing equipment, aircraft stairs, etc. The consultant will review, update and define the facility condition and requirements with the City and project stakeholders. At least two stakeholder involvement meetings will be held to review the facility requirements. The consultant wil1 develop conceptual plans for the improvements and assemble material and equipment information necessary to formulate a narrative and conceptual cost estimates for presentation and inclusion in a design study report. The design study report and presentation will provide, in addition to the conceptual plans, a prioritized breakdown of the facility requirements, an updated code review, and conceptual order of magnitude cost estimate for each component of the facility requirements. The consultant will work with the City to develop a near and midtem1 improvement list for developing a phased improvement plan. The consultant will work with the City and FAA to determine grant eligible facilities Specific tasks are listed as follows: 1. Kickoff meeting with stakeholders 2 . Program development for near and midtenn facility requirements 3. Update facility conditions inspection 4. Stakeholder concept design meeting Kenai Municipal Airport Passenger Terminal Improvements Page 2 Page 135 of 276 5 . Develop one, at most two , conceptual design drawings for near and midtenn facility requirements 6. Update existing code reviews to the 2012 codes 7. Assist City with FAA programming of grant eligible items 8. Prepare design study report from all disciplines with order of magnitude cost 9. Stakeholder concept design review meeting Phased Development Plan: The consultant will develop a phased plan addressing the near and midterm needs of the passenger terminal building while providing for the efficient utilization of available funding and potential long term expansion requirements of the overall terminal area. The conceptual plans, for the near term improvements will be updated to a schematic stage providing additional detail, material and finish schedules as well as mechanicalfelectrical equipment necessary to support the improvements. The design study report will be updated to provide narratives of the updated plans, materials and equipment as well as the conceptual cost estimate updated with the new information available. At least two stakeholder involvement meetings will be held to review the phased development plan and cost estimates. The consultant will assist the City with FAA review and negotiations of grant eligible items. Specific tasks are listed as follows : 1. Develop near term schematic drawings 2. Develop preliminary finish schedules and equipment requirements 3. Update code reviews 4. Update design study report and cost estimates 5. Stakeholder schematic design review meeting Phase Two Design and Bid Process: Based on the improvements selected by the City the consultant will establish a firm fee for design development and construction bid documents to be approved by the City and FAA prior to a separate notice to proceed. The consultant will follow the standard design process from the schematic phase, determined earlier, through the design development and contract documents for the phase one improvements. All design will be completed in accordance with current building codes and FAA advisory circulars. Specifications and contract forms will be prepared as required by FAA and Federal procurement regulations and policies. Design Development will progress the plans with the required detail to provide technical specifications, and construction cost estimates. Following review the contract documents will be completed for the bid phase of the project Bid phase services wil1 include preparation of the bid advertisement, attending a pre bid conference, the preparation of plan/specification clarifications and any necessary addendums. Kenai Municipal Airport Passenger Terminal Improvements Page 3 Page 136 of 276 The consultant will assist the City with the bid opening, bid evaluations and recommendations as to award. This phase would also include assisting the City through the FAA reviews. grant programming and application process. Specific tasks are listed as follows: I. Design Development: • Review approved schematic design and review comments • Prepare design development drawings to 65% stage • Prepare preliminary specifications and cost estimates • Update design study report • Stakeholder review meeting • Review comments and prepare final design development documents 95% • Prepare final design development specifications and cost estimates • Stakeholder review meeting 2. Construction Documents: • Review approved design development documents and comments • Prepare final construction documents, specifications and cost estimate • Stakeholder review meeting • Address final review comments and prepare bid ready documents and estimate 3 . Bid Phase • Assist City with bid documents and advertisement • Attend pre bid conference • Respond to bidder questions for addendums • Assist City with bid reviews and recommendation of award • Assist City with FAA Grant application Deliverables: All deliverables will be prepared and submitted in conformance with the City of Kenai Contract General Conditions The consultant shall prepare a planning and design study report beginning with the facility requirement study and update. The report will be updated with each subsequent phase. Plans will be prepared using up to date versions of AutoCAD with the deliverables plotted in 22 x 34 and 11 x 17 formats. Electronic files will be provided to the City. Technical Specifications will be prepared using standard architectural formats and the General Conditions prepared using the established FAA approved format currently used by the City on its airport projects. The City will be provided hard copy originals and the WORD files. The design study report, plans, specifications and cost estimates will be submitted for reviews by City, FAA and project s takeholders at the Schematic stage (35%), the Design Development stage (65%) and at the final Construction Bid Document stage (100%). After each review and approval the consultant will revise the documents as requested and proceed to the next stage of development. Kenai Municipal Airport Passenger Terminal Improvements Page4 Page 137 of 276 Construction Administration: The City will apply for a construction grant after bids are opened and a contractor is selected for the project. The consultant shall provide construction contract administration and inspection services to assure compliance with the plans and specifications. Typical tasks during this phase typically include the following tasks: Preconstruction meetings Submittal reviews Daily inspections and reports Review and responses to contractor RFI's and DCVR's Contractor payment application reviews Equipment commissioning and certifications Project and grant closeout reports Schedule: A tentative schedule, following a notice to proceed, for the above described work is provided as follows. Stake holder involvement meetings and review periods are included in each phase. Facility Requirements 8 weeks Phased Development Plan 4 weeks Phase One Design and Environmental CATEX 16 weeks Programming and FAA CJP Applications 4 weeks Bid Process, Grant Applications 6 weeks Construction 2018 Design Team: The planning and design team remains as presented in the April 2014 proposal for term architectural, engineering and construction management services for the Kenai Municipal Airport as listed below: Project Managers Architectural Engineering Ci vii/Structural Mechanical/Electrical Airport Planning Surveying Wince-Corthell-Bryson, Consulting Engineers Klauder and Company, Architects Wince-Corthell-Bryson, Consulting Engineers MBA Consulting Engineers Aries Consultants Whitford Surveying Kenai Municipal Airport Passenger Terminal Improvements Page S Page 138 of 276 Estimating Fees and Implementation: The project should be broken down into three phases for fee negotiations and separate notices to proceed. This process will provide the consultant and the City with a firm understanding of the work that will be required for each subsequent phase and at the same time provide the City with more flexibility in managing the phased planning and initial implementation of improvements selected to proceed. The recommended phases are as follows: First Grant FY 2017 1. Facility requirements planning and phased development plan 2. Design development and construction documents, environmental and bid process A detailed line item scope of services will be provided for each discipline to affix fees to. Line items will consist of, but not necessarily be limited to, the fo11owing major tasks. • Existing conditions observations and documentation • Planning and programming • Concept Designs • Design Study Report • Schematic design (35%) • Finish and Equipment schedules • Design Study Report update • Design development (65%) • Design Study Report update • Construction documents (100%) • Bid Phase Second Grant FY 2018 1. Construction and construction inspection and administration Kenai Municipal Airport Passenger Terminal Improvements Page 6 Page 139 of 276 Sponsored by: Administration lhuifJ1. KENAI, ALASKA '\/" CITY OF KENAI RESOLUTION NO. 2017-52 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, AMENDING THE FINANCING TERMS AND PURCHASING PARTY FOR THE SALE OF TRACT A, DRAGSETH SUBDIVISION 2016 ADDITION , ACCORDING TO THE OFFICIAL PLAT THEREOF, UNDER PLAT NO. 2016-22, FILED IN THE KENAI RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, INCLUDING ALL IMPROVEMENTS THEREON AS PREVIOUSLY APPROVED IN ORDINANCE NO. 2957-2017 (SUBSTITUTE). WHEREAS, Ordinance No . 2957-2017 (Substitute), au thorized the sale of Tract A, Dragseth Subdivision 2016 Addition to PRL Logistics Inc., for $825 ,000 pursuant to the terms and conditions in the previously provided Purchase and Sales Agreement; and, WHEREAS , an ordinance was previously required to sell the property primarily because it was sold without a recent appraisal ; and , WHEREAS , the Purchaser has recently requested the City to amend the terms of the Purchase and Sales Agreement to provide short term financing by the City and change the name of the Purchaser from PRL Logistics Inc ., to Ron B . Hyde Jr.; and , WHEREAS, Kenai Municipal Code 22.05.105 -Terms for Financing Sale of City Lands , allows for a sale to be financed by the City for a down payment of not less than 15% for a term of not more than 20 years and at an interest rate determined by Council ; and , WHEREAS , the Purchaser has requested financ ing from the City until February 3, 2018 at a rate of 4% with a 15% down payment inclu s ive of existing earnest money. NOW , THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA: Section 1. That the City Council agrees to amend the Purchase and Sales Agreement as Authorized by Ordinance No. 2957-2017 (Substitute) to change the Buyers name from PRL Logistics to Ron B. Hyde Jr. Section 2. That the City Council agrees to amend the Purchase and Sales Agreement as Authorized by Ordinance No. 2957-2017 (Substitute) for Tract A, Dragseth Subdivision 2016 Addition , according to the official plat thereof, under Plat No. 2016-22 , filed in the Kenai Recording District, Third Judicial District, State of Alaska , including all improvements to finance the sale until Februa ry 3, 2018 at a rate of 4% with a down payment of $123 , 750 (inclusive of existing earnest money) as provided in the attached Addendum . Section 3. That the C ity Manager is authorized to execute the attached Addendum in the same or substantially same form as attached hereto. Section 4. That this Resolution takes effect immediately upon passage . Page 140 of 276 Resolution No. 2017-52 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA , this 2nd day of August, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: City Clerk Page 141 of 276 DocuSi gn Envelope ID: AA203E2F-9BC2-4D8A-A907-10EDD2D7C179 Addendum or Amendment to the Purchase and Sale Agreement This fonn authorized fa use ONL V by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc. ~ ALASKA MLS Date 0712512017 2 In reference to the Ptxchase and Sale Agreement between: 3 Ron B Hyde Jr . the Buyer(s), and , the Seller(s), dated 4 City of Kenai 5 040 400 17 • covering the real property commonly known as: 6 Address: 2 270 Royal Street 7 Legal (the Property): Oragseth Sub 2016 Addo Tract A 8 the undersigned Buyer(s) and Seller(s) hereby ag ree to the following (check only one): 9 (J Addendum -to be used when more space is needed on the Purchase and Sale Agreement IO (J Amendment -to be used only when changing an existing Purchase and Sale Agreement 1 I 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 3 1 32 33 34 35 36 37 3 8 39 40 4 1 42 43 44 To amend o ffer to financing by the City of Kenai Sales price to be $825 ,000 (ei ght hundred twenty five thousand and no/100) Down payment t o be 15% ($123,750.00) Seller Financing $701,250.00 pay able at $3,347 .87 o r more per month includi ng 4 % interest per. annum w ith a balloon payme nt due in 6 months or February 3 , 201 8 which ever is sooner. Due on sale c lause, no prepayment penalty to be i ncluded. Buyer to carry insurance on property naming City of K enai as addit ional insured until City i s paid in full. Escrow to be set at First National Bank Closing cost s plit: Recording fees split 50/50 Owners T rtle p aid by Seller Escrow closing split 50/50 Bank set up fee s plit 50/50 3 % B ro kerage fee paid b y Selle r C losing to be A ugu st 3 , 2017 To the extent any provision of this AddendumJAmendment is inconsistent with the provisions of the Purchase and Sale Agreement, the terms of this Addendum/Amendment shall control. All other Tenns and Conditions to remain the same. This AddendumlAmendment shall expire unless the party making this Addendum/Amendment is notified of its acceptance no later than (date) (J a .m . (J p.m. (time). Notification of acceptance of this Amendment/Addendum may be made only by one of the methods specified in the paragraph titled 'Acceptance/Notice of Acceptance/Delivery' as contained in Purchase and Sale Agreement. 7/25/2017 Date: 8~Docu5igned1>y: Time: Cl a .m . (J p .m . 9 Buyer CJ Seller 1: C ..=.,. 2: 3: Brokerage ,de .i ~ .~,J. Licensee (s) 'fffdm J.. ~V,._~.-,.,p-------- undersigned accepts the above Amendment/Addend..n Upon execution by both parties, this agreement becomes an integral part of the referenced Purchase and Sale Agreement . Date: CJ a .m. CJ p .m . CJ Buyer CJ Seller 1: -----------3 :~~~~~~~~ Brokerage ________________ ~Licensee(s) _______________ ___.. Form 7 0718 . Revi sed 031 13. e> 201 5 Alaska Multiple Li sting Service, Inc . (AK MLS) Aft rig hts reserved . Page 142 of 276 'lftt'ltije «1/t/t a Pa.r~ Ct~ «1/t~ a f°a.ttJ.t<-e " 210 Fidalgo Ave , Kenai , Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai .city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ? O . July 27, 2017 Dragseth Subdivision sale -amending financing terms and purchasing party Ordinance 2957-2017 (substitute) authorized the sale of Tract A, Dragseth Subdivision , 2016 Addition to PRL Logistics Inc., for $825,000. Pursuant to the Purchase and Sales Agreement approved by that ordinance, PRL Logistics Inc. was utilizing conventional financing to purchase the property. Administration received a request on July 25, 2017 to provide short term financing for the sale and to change the name of the purchaser from PRL Logistics Inc. to Ron B. Hyde Jr. This resolution amends the financing terms and changes the purchasing party pursuant to that request. Your consideration is appreciated . Page 143 of 276 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2957-2017 (SUBSTITUTE) AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA , AUTHORIZING THE SALE OF TRACT A. DRAGSETH SUBDIVISION 2016 ADDITION, ACCORDING TO THE OFFICIAL PLAT THEREOF, UNDER PLAT NO. 2016-22, FILED IN THE KENAI RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, INCLUDING ALL IMPROVEMENTS THEREON, TO PRL LOGISTICS INC., AND PROVIDING THE SALE PROCEEDS TO THE STATE OF ALASKA FOR REIMBURSEMENT INTO GRANT NO. 15-DC- 078 FOR USE BY THE CITY TO CONTINUE ENHANCING ACCESS AND OTHER RELATED IMPROVEMENTS TO THE SOUTH BEACH. WHEREAS , the City manages dip net access issues on its beaches which includes conflicts between local property owners and dip net fishery participants; and , WHEREAS, in 2014 the City Council appropriated $1,900,000 of State Grant funds (Grant No . 15-DC-078) via Ordinance No. 2771-2014 for the purpose of des ig ning and constructing a new roadway for access to the South Beach and related improvements to help alleviate such conflicts; and , WHEREAS, after numerous meetings with affected property owners and state and federal agencies weighing alternatives for improved access, including obtaining permitting for building a new road across City owned wetlands, the City with State approval, authorized the purchase of seven abutting parcels from Ark Properties, LLC for the purpose of constructing a new road with minimal wetland disturbance through Resolution No . 2015-50 (Substitute); and , WHEREAS, the City needed only a portion of the newly acquired property for the purpose of road construction ; and, WHEREAS , the State's approval of the utilization of Grant funds for the purchase of the property was co nditioned on proceeds from the sale of the unneeded property and improvements thereon going back into the grant for the City 's use for South Beach access and related improvements; and, WHEREAS, the City completed const ru ction of a new road providing beach access and a re-plat of the seven parcels allowing th e City to maintain the land needed for the road and maximizing the value of the unneeded land and improvements for resale; and, WHEREAS, the City is expending significant funds maintaining the la nd and improvements for re-sale and the nature of the improvements limits the available market; and, WHEREAS, PRL Logistics , Inc., (PRL) has made an offer to purchase the property based on numerous conditions; and, New Text Underlined : [DELETED TEXT BRACKETED] Page 144 of 276 Ordinance No . 2 757-2017 Page 2 of 3 WHEREAS. PRL 's business plan is to potentially use the property for office space, lodging , restaurant/bar, event hosting and airport related activities to support its business, including the operation of an airship; and , WHEREAS, all of these uses will require the approval by City Planning Commission of conditional use permits given the current zoning of the property; and , WHEREAS , PRL's offer is also conditioned on the ability to purchase adjacent City owned land for the use of an existing airstrip for fix winged and airship uses; and , WHEREAS , PR L's acquisition of the adjacent property will require a subdivision and conditional use permit; and , WHEREAS , PRL has previously refurbished and repurposed old cannery property in the City demonstrating a responsibility towards environmental sensitivity and respect for the history of the City; and , WHEREAS, it is anticipated that PRL's acquisition of additional property in the City will create new economic opportunities and will be managed in a responsible manner; and, WHEREAS, the City Council finds that it is in the best interest of the C ity to sell Tract A, Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No . 2016- 22, filed in the Kenai Recording District. Third Judicial District, State of Alaska, including all improvements thereon to PRL for the purchase price of $825,000 ; and , WHEREAS , in accepting PRL 's offer, the City Council agrees to work cooperatively w ith PRL for the future sale of the adjacent City owned lands that include the airstrip ; and ; WHEREAS , the property being so ld is unique in that it is neither General Fund Land , nor Airport Land , but instead la nd held by the State Grant, therefore City Code provisions governing General Fund Land and Airport Land do not apply; and WHEREAS, the City Council finds that it is in the best interest of the City to sell the property for the aforementioned reasons to PRL without a recent appraisal. NOW , THEREFORE , BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. Form : That this is a non-code ord inance . Section 2. Statement of Ownership : That the City of Kenai is the owner of Tract A, Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016 - 22 , filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all improvement s thereon. Section 3. Public Purpose and Best Interest Findings: That the property is not needed for future public purposes . The sale of the Property is in the best interests of the City as it is intended to promote new economic opportunities and the proceeds will be used to continue development of access to the South Beach and related improvements in compliance with Grant No . 15-DC-078. Ne w Text U nderlin ed ; [DELETED T EXT BRACKETED] Page 145 of 276 Ordinance No. 2757-2017 Page 3 of 3 Section 4. Authorization of Sale: That the Kenai City Council hereby authorizes t he City Manager to sell the City-owned lands described as Tract A, Dragseth Subdivision 2016 Addit ion , according to the official plat thereof, under Plat No . 2016-22, filed in the Kenai Recording District, Third Judicial District, State of Alaska , including all improvements thereon, und er the terms established in the attached Purchase and Sale Agreement and Addendum subject to the additional essential terms and conditions of sale on page 6 of the Purchase and Sale Agreement as amended by the Addendum . Section 5. Title : That title shall be conveyed by wa rranty deed. Section 6 . Proceeds of Sale : That should a sale of the property be finalized , all revenues from the sale shall be provided to the State of Alaska for Grant No . 15-DC-078 for the City's use for South Beach access and related improvements. Section 7. Severability: That if any part or provision of this ordinance or application t hereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, suc h judgment shall be confined in its operation to the part, provision , or application directly involved in all controversy in which this j udgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances . The City Council hereby declares that it would have enacted the remainder of th is ordinance even without such part, provision , or application . Section 8 . Effective Date : That pursuant to KMC 1.15 .070(f), th is ordinance shall take effect 30 days after adoption . (Emergency ordi nances and ordinance making , repealing , transferring, or otherwise changing appropriations, shall go into effect immediately upon passage unless they specify a later t ime : "That pursuant to KMC 1.15 .070(f ), th is ord inance shall take effect upon adopt ion "). ENACTED B Y THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 17th day of May , 2 017 . ATTEST: ~-~<£. "f3 RIAN GABRIEL SR., MAYOR New T ext Underlined : [D ELET ED T EXT BRACKETED) In trodu ced : May 3, 20 17 Enacted : May 17 , 2 017 Effective: June 16, 20 17 Page 146 of 276 'Vtfl~ «J/th, (l Pa6'~ e~ «J/th, fl Fat~ II 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager "Y. O · May 10, 2017 Ordinance 2957-2017 (Substitute)-addendum to purchase and sale agreement modifying financing method This substitute ordinance recognizes and incorporates two addendums to the original purchase and sale agreement received from the buyer's agent that modify the terms and conditions of the sale . The original purchase and sale agreement anticipated owner financing with a down payment of 15% and an interest rate of 4% for 6 months or December 31 , 2017, whichever was earlier, followed by a balloon payment for the remaining principal at that time to satisfy the terms of the loan . The buyer is now proposing to utilize conventional financing for the purchase of the property with closing scheduled for June 20, 2017. Modifications to closing costs for the buyer and seller as a result of the change in financing are also outlined on the addendum and First National Bank is removed as the ho lder of the escrow. The two addendums are attached for your reference. Page 147 of 276 OocuSign Envelope 10 . CE702430-C3E4-"180S.aEFC-9AOFF7BC188A 2 3 4 5 6 7 8 9 10 II 12 Addendum or Amendment to the Purchase and Sale Agreement This form aulhorized fer use ON LY by active Real Estate Licensu Subscribers of Alaska Multiple Listing SErvice, Inc. ALASKA M LS Date 0412512017 In reference to the Purchase and Sale Agreement between: ...i.:.P!:lR.i..L..JL.i.otligl.lijsulic:><..1..1.IN11C.,_. _____________________________ , the Buyer(s), and _C=ity'-o~f;...;K..:.e:;..;n.;.;;a;.;..i __________________________ _,. the Sett er(s), dated _0 .... 4,.,.12~5,..12""0 ... 1_,_7 ___ ~· covering the real property commonly known as: Address: 2270 Royal Street Legal (the Property): Dragseth Sub 2016 Addn Tract A the undersigned Buyer(s) and Seller(s) hereby agree to the following (check only one): ~ Addendum -to be used when more space is needed on the Purchase and Sale Agreement O Amendment -to be used only when changing an existing Purchase and Sale Agreement 13 D ining room table and chairs • plus 3rd floor desk to remain 14 Seller to·pay 3% brokerage fee 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Buyer requesl c ity turn water back on in mansion before closing and repair leeks if any. To the extent any provision of this Addendum/Amendment is inconsistent with the provisions of the Purchase and Sale Agreement, the terms of this AddendumfAmendment shall control. All other Terms and Conditions to remain the same. This Addendum/Amendment shall expire unless the party making this Addendum/Amendment is notified of its acceptance no later than 0511 7/2017 (date) 5 CJ a.m. «I p .m . (time). Notification of acceptance of this AmendmenVAddendum may be made only by one of the methods specified in the paragraph titled 'Acceptance/Notice of Acceptance/De livery' as contained in Purchase and Sale Agreement Date: 5/8/2017 ~ ~Buyer 0 Seller 1: ---+R __ ~_,.._..._."" ___ ,____ 2 : ----------3 : ---------- B rokerag e ______ L __ 93_5BEA9 __ 7_•E.944 __ 7o_ .. _____ Licensee(s) ------------------' Time: _________ _ 0 a.m . 0 p .m . The undersigned accepts the above Amendment/Addendum Upon execution by both parties. this agreement becomes an integral part of the referen ced Purchase and Sale Agreement. Date: T ine : ________ _ Q a .m . Q p.m . 0 Buyer 0 Seller 1: -----------3: ~~~~~~~- Brokerage _________________ Licensee(s) ------------------' Form 7071 8. Re,1sed 03!13. e 201~ Alaska Munlple Listing SerVlee. Inc. (AK MLSJ All r ights reserved. Page 148 of 276 DocuSign Envelope ID: CE702430-C3E4-4806-BEFC-9AOFF7BC188A I 2 3 4 5 6 7 8 9 JO JI 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Addendum or Amendment to the Purchase and Sale Agreement This fam authcrized for use ONLY by active Real Estate Licensee Subscribers ol Alaska Multiple Listing Service, Inc. ~ .. --~ ALASKA MLS Date 04/25/2017 In reference to the Purchase and Sale Agreement between: ...L-PuR .. L_.,L,,.~,..,.is""tic......,,lu.N..,C'------------------------------'' the Buyer(s), and _C=ityc..co:...;f_K""'e_n_ai __________________________ , the Seller(s). dated 05ma1201 z , covering the real property commonly known as: Address: 2270 Royal Street Legal (the Property): Dragseth Sub 2016 Addn Tract A the undersigned Buyer(s) and Seller(s) hereby agree to the following (check only one): ~ Addendum - to be used when more space is needed on the Purchase and Sale Agreement O Amendment-to be used only when changing an existing Purchase and Sale Agreement C..105> 11\s i. c:. l:>e. i.o-20 -.:Z.017 Seller to pay 3% brokerage fee Buyer has applied for a conventional loan. will provide 90% letter with in 3 business days of accepted offer. Seller to pay · 112 of lender d oc prep fee Owners lltle Insurance Flood Cert Tax Registration 112 of Recording fee 112 of Escrow Closing fee 3% Brokerage Fee Any assessments Levied or Pending Smoke Detector and CO detectors in p lace Buyer to pay: Lender Origination Fee Commitment Fee MIP/PM 112 of Lender doc prep fee Appraisal Alta Title 112 Recording and Escrow C losing Fee To the extent any provision of this Addendum/Amendment is inconsistent with the provisions of the Purchase and Sale Agreement, the tenns of this Addendum/Amendment shall control. AH other Terms and Conditions to remain the same. This Addendum/Amendment shall expire unless the party making this Addendum/Amendment is notified of its acceptance no later than 05/17/2017 (date) 5 0 a.m . ~ p.m . (time). Notification of acceptance of this AmendmenVAddendum may be made only by one of the methods specified in the paragraph titled 'Acceptance/Notice of Acceptance/Delivery' as contai ned in Purchase and Sale Agreement. Date : 5/8/2017 Time:---------0 a.m 0 p.m. The undersigned accepts the above AmendmenUAddendum Upon execution by both parties, this agreement becomes an integral part of the referenced Purchase and Sale Agreement. Date: Time:----------CJ a .m. 0 p .m . 0 Buyer 0 Seller 1: -----------2: ---------~ 3: ---------- Brokerage _________________ Licensee(s) ---------------~ Form 70718. Revised 03113. Q 20'15 Alaska Multiple Listing Service, Inc. (AK MLS) All rights reserved . Page 149 of 276 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2957-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, A HORIZING THE SALE OF TRACT A. DRAGSETH SUBDIVISION 2016 ADDITION, AC ORDING TO THE OFFICIAL PLAT THEREOF, UNDER PLAT NO . 2016-22, FILED IN TH KENAI RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALAS , INCLUDING ALL IMPROVEMENTS THEREON, TO PRL LOGISTICS INC., AND ROVIDING THE SALE PROCEEDS TO THE STATE OF ALASKA FOR REIMBURSEME INTO GRANT NO. 15-DC- 078 FOR USE BY THE CITY TO CONTINUE ENHANCING AC SS AND OTHER RELATED IMPROVEMENTS TO THE SOUTH BEACH. WHEREAS, the City manages dip net access issues on · s beaches wh ich includes conflicts between local property owners and dip net fishery partici nts; and, WHEREAS, in 2014 the City Council appropriated $ ,900,000 of State Grant funds (Grant No. 15-DC-078) via Ordinance No. 2771-2014 for the rpose of designing and constructing a new roadway for access to the South Beach and relate improvements to help alleviate such conflicts; and, WHEREAS, after numerous meetings wit affected property owners and state and federal agencies weighing alternatives for improv d access, including obtain ing permitting for building a new road across City owned wetlands, e City with State approval , authorized the purchase of seven abutting parcels from Ark Prop ies, LLC for the purpose of constructing a new road with minimal wetland disturbance throug Resolution No. 2015-50 (Substitute); and , WHER EAS , the City needed onl a portion of the newly acquired property for the purpose of road construction ; and , WHEREAS, the State 's ap oval of the utilization of Grant funds for the purchase of the property was conditioned on proc ds from the sale of the unneeded property and improvements thereon going back into the gra t for the City's use for South Beach access and rela ted improve ments ; and , WHEREAS , the Ci completed construction of a new road providing beach access and a re-p lat of the seven par els allowing the City to maintain the land needed for the road and maximizing the value of th nneeded land and improvements for resale; and, WHEREAS he City is expending significant funds maintaining the land and improvements for re- sale and t nature of the improvements limits the available market; and , WHER :A.S, PRL Logistics, Inc., (PRL ) has made an offer to purchase the property based on numer. us conditions; and, New Text Underlined; [DELETED TEXT BRACKETED] Page 150 of 276 Ordinance No . 2757-2017 Page 2 of 3 WHEREAS, PRL's business plan is to potentially use the property for office space, lodging, restauranVbar , event hosting and airport related activities to support its business, including the operation of an airship; and, WHEREAS, all of these uses will require the approval by City Planning Commission of conditional use permits given the current zoning of the property; and, WHEREAS, PRL's offer is also conditioned on the ability to purchase adjacent City owned land for the use of an existing airstrip for fix winged and airship uses; and, WHEREAS, PRL 's acquisition of the adjacent property will require a subdivision and conditional use permit; and, WHEREAS, PRL has previously refurbished and repurposed old cannery property in the City demonstrating a responsibility towards environmental sensitivity and respect for the history of the City; and, WHEREAS, it is anticipated that PRL's acquisition of additional property in the City will create new economic opportunities and will be managed in a responsible manner; and, WHEREAS. the City Council finds that it is in the best interest of the City to sell Tract A , Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-22, filed in the Kenai Recording District, Third Judicia l District, State of Alaska , including all improvements thereon to PRL for the purchase price of $825,000 and to finance the sale for up to six months at a rate of four percent with a down payment of $123, 750; and, WHEREAS, the financing provisions will allow the City to utilize the balance of the purchase fund s for South Beach access and related improvements in 2018; and, WHEREAS , in accepting PRL's offer , the City Council agrees to work cooperativel y with PRL for the future sale of the adjacent City owned lands that include the airstrip; and; WHEREAS, the property being sold is unique in that it is neither General Fund Land , nor Airport Land , but instead land held by the State Grant, therefore City Code provisions governing General Fund Land and Airport Land do not apply; and WHEREAS, the City Council finds that it is in the best interest of the City to sell the property for the aforementioned reasons to PRL without a recent appraisal. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows : Section 1. Form: That this is a non-code ordinance . Section 2. Statement of Ownership: That the City of Kenai is the owner of Tract A, Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-22, filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all improvements thereon . Section 3. Public Purpose and Best Interest Findings: That the property is not needed for future public purposes. The sale of the Property is in the best interests of the City as it is intended New Text Und erl ined; [OELETED TEXT BRACKETED! Page 151 of 276 Ordinance No. 2757-2017 Page 3 of 3 to promote new economic opportunities and the proceeds will be used to continue development of access to the South Beach and related improvements in compliance with Grant No . 15-DC- 078 . Section 4 . Authorization of Sale: That the Kenai City Council hereby authorizes the City Manager to sell the City-owned lands described as Tract A, Dragseth Subdivision 2016 Addition , according to the official plat thereof, under Plat No . 2016-22, filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all improvements thereon, under the terms established in the attached Purchase and Sale Agreement including the financing conditions contained therein, and subject to the additional essential terms and conditions of sale on page 6 of the Purchase and Sale Agreement. Section 5. Title : That title shall be conveyed by warranty deed. Section 6. Proceeds of Sale : That should a sale of the property be finalized, all revenues from the sale shall be provided to the State of Alaska for Grant No. 15-DC-078 for the City 's use for South Beach access and related improvements . Section 7. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly in v olved in all controversy in which this judgment shall have been rendered , and shall not affect or impair the validity of the remainder of this title or application thereof to other perso ns or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision. or application . Section 8. Effective Date : That pursuant to KMC 1.15.070(f), this o rd inance shall take effect 30 days after adoption. (Emergency ordinances and ordinance making , repealing , transferring , or otherwise changing appropriations, sha ll go into effect im med iate ly up on passage unless they specify a later time: "Tha t pursuant to KMC 1.15 .070(f), this ordinance shall take effect upon adoption"). ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, thi s 17th day of May, 2017 . ATTEST: Sandra Modigh , City Clerk BRIAN GABRIEL SR., MAYOR New T ext Under lined ; [DELETED TEXT BRACKETED] Introduced : May 3, 2017 En acted: May 17 , 2017 Effective : June 16 , 2017 Page 152 of 276 OocuS lgn EnveloPe ID: E1EOF990-C421-400C-AOE5-AOB780AF1BFC Kenai Peninsula Purchase and Sale Agreement (RKldentlal) Th is form authorized for use ONLY by active Real Estate Licensee Subsaibers of Alaska Multiple Listing Service, Inc. ALASKA MLS Dated 04/2512017 Brokerage Names AK MLS ID# Brokerage Ph Listing Brokerage: ------------------- Selling Brokerage: RE/MAX of the Peninsula AK12001 907-283-5888 MLS# _____ _ Licensee Names License # Direct Ph Cell Ph Email Address listing 1: ----------- Listing 2 : ----------- Selling 1: Glenda Feeken AK12001 907-252-2743 907-252-2743 glenda@teamfeeken.com Selling 2 : ----------- Licensee Relationships: The Seller and Buyer acknowledge the following : t 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 t9 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 a) Listing Licensee 1 0 is representing the Seller only (may assist the Buyer); or IJ is assisting both the Buyer and Seller as a Neutral Licensee ; or 0 is assisting the Seller without representation . Listing Licensee 2 IJ is representing the Seller only (may assist the Buyer); or D is assisting both the Buyer and Seller as a Neutral Licensee; or o is assisting the Seller without representation . b) Selling Licensee 1 ~ is representing the Buyer only (may assist the Seller); or 0 is assisting both the Buyer and Seller as a Neutral Licensee; or Q is representing the Seller only (may assist the Buyer); or a is assisting the Buyer w ithout representation. Selling Licensee 2 0 is representing the Buyer only (may assist the Seller); or 0 is assisting both the Buyer and Seller as a Neutral Licensee; or Q is representing the Seller only (may assist the Buyer); or 0 is assisting the Buyer without representation . 1) Buyer(s), PRL Logistic, INC . , hereby deposit(s) earnest money of Five.Thousand Dollars ($ 5,000 )Dollars evidenced by: D Cash 0 Personal Check Q Cashier's Check 0 Note, Due on (date) JO Or on acceptance of offer shall be held in trust by 0 Listing Broker ~ Selling Broker as earnest money on and part payment for the purchase of real property and improvements situated in Kenai (city or area) 99611 (zip), in the ""K'"'e""n"'a"""i --------- Recordi ng Di strict, State of Alaska, described as : ~2~27~0"-'-'R~oy~a~l~S~tr~e~e~t-------------------------..,,..--.,--,--<Address) D,,.wra<>.ig_.s.,.e..,thcu.oS,,.u ... b..6>2 ... 0u1_..6..LA:ud.,.du..n1....Iura...,.ct...,A"'---------------------(Legal) (the Property). 2) Purchase Price: =E"-"ig"'h"-t '-'H-"u""'"nd=.:r;..;::e..::cd....:T....:.w:..::e:..:cn:.:;tv'-'F'-'i'-'--ve:::.....:.T.:..:.ho=-u=s=-=a:.:..:nc::d ______________ oot100 ($_8_2_5,~0_00 ___ _.)Dollars Minimum Down Payment (including earnest money shown above) ............................. Sor% _12_3_,_75_0 ______ _ 3) Terms: Buyer D does !J does not intend to occupy Property as Buyer's primary residence. Property Type (check one): ~ Single Family D Condominium D PUD Q Duplex 0 Triplex 0 Fourptex 0 Other __________ _ Check one below. a) D All Cash Offer: No loan is needed to purchase the Property; Buye r shall provide Seller written t hird-party documentation verifyi ng sufficient funds to close no later than (date) (time). Seller shall have three (3) business days after receipt of documentation to notify Buyer, in writing, if the verification of funds is nol acceptable. If Buyer fa ils to provide such documentation, or if Seller finds verification of funds unacceptable, Seller may terminate this Purchase A greement. Failure of Seller to provide Buyer written notice of objection shall be considered ac- ceptance of verification of funds . b) CJ New Financing: Recording is contingent upon Buyer obtaining financing as follows: Check the appropriate b lock(s) below: O Conventional 0 FHA -(Attach Required Addendums) Fonn 70753. Originated 11104. Revised 07115. G 2016 NaGko MulUple Usting Service. Inc. {AK MLS) NI r1ght s reserved. Page 153 of 276 DocuSign Envelope 10: E1EDF99~21-400C-AOE5-AOB780AF 1 BFC I 2 3 4 5 6 7 8 9 10 11 12 J3 14 JS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 3 7 38 39 40 4 1 42 43 44 45 Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: Address: 2270 Royal Street Legal (the Property): Qragseth Syb 2016 Addo Tract A This form authorized for use ONLY by active Real Estate Licensee Subscribers or Alaska Multiple Listing Service. Inc. ALASKA MLS 0 VA -(Attach Required Addendums) O Alaska Housing Finance Corporation under the following program ---------------- 0 RD -Rural Development OOther ----------------------------~--,..------~ i) On or before (date) the Buyer will provide the Seller a letter from __________________ (Lender) verifying the following items: (1) a satisfactory credit report, (2) acceptable income, (3) source of down payment, (4) availability of funds to close , and (5) that loan approval 0 is or 0 Is not contingent on the lease , sale or recording of a sale of any property. ii) Buyer agrees to make a complete loan application with Lender, and provide verification to the Seller from the Lender by (date}. ii i) If Buyer does not reveal a fact or contingency to the Lender and this purchase does not record because of that nondisclosure after initial application, the Buyer shall be in default. iv) In the event Buyer fa ils to provide Seller with documentation required in (0 and Qi) by the respective dates above, this Purchase Agreement may be terminated at the election of the Seller. If the Seller terminates this agreement, Seller to provide written notice to Buyer with in _ (3 business days if not filled in) days from the dates noted in (i) and QO above. v) Buyer must obtain Seller's approval in writing of any change in Lender, type of financing or allocation of closing costs . vi) Buyer agrees to pay all fees and satisfy all condit ions, in a timely manner, required by the Lender for pro- cessing of loan application. Buyer agrees the interest rate offered by Lender is not a contingency of this Pur- chase Agreement, so long as Buyer qualifies for the financing herein agreed . Availab!lity of any financing pro- gram may change at any time , Brokers and Licensees are not responsible for representations or guarantees as to availability of any loans. project and/or property approvals or interest rates . ~ 0 Seller Financing: ~ 701 ,250 ~yable at$ 3,347.87 . or more , per moo~ including _4 __ % intlfrest per annum or ~years . t."j (~1U j::\0-:;:i .~ (\J~ ~~~'Ii:...\; 3 j l.l.., d..O r] The parties a re encouraged to negotiafe th e ltnportant terms of seller financing now, and to include such terms in Paragraph 25, or in a separate addendum. Important terms may include form of financ ing documents (con- tract. note and trust deed or mortgage), due on s ale clau se, prepayment optio n or penalty. remedies upon de- fault , etc., if any. i i ~ Buye r shall provide Seller with documentation , as requ ired by Seller , verifying Buye r's ability to purchase ac- cord ing to the price , terms and conditions of the Purchase Agreement by . (date). iv) Seller Fi nancing is contingent upon the Seller's approval of the above d ocumentation on or before ---------· (date). In the event Buyer fa ils to obtain Seller's approval, this Purchase Agreement shall automatically terminate. 4) Costs: The costs shall be paid by Buyer (B) or Seller (S) a s indicated below. Costs payable by bol h Buyer and Seller to be shared equally. Buyer to pay for any fees due to requirements of the lender not covered below. ITEM B S ITEM B S ITEM B S ITEM B S L endor Orioinati on Fee Croon Reoort Owner Title lnsura~ ]Ii,. Smoke Detectors Commi tment Fee Reserves AL TA Tl tkl Insurance CO Detectors Discount Points Prepaid tntere M Recordino Fee /\ As-Bulll Survev I Recert. MJPIPMlldefautt lnsuranc•I Escrow Closl no Fee x VA Fundi ng Fee Sa les Ta x Annual Escrow Fee Te$1$ for Health Authoritv At Droval : Rural Oelf. lolln Fee Reaale CertHicatc I Bank Sat-Up Fee x Well Flow /QuantJM l..Qnder Doc. Pree Fee Publi c Offer Statement Assume!Tninstu FH Basic Water Qu ality HOA Transfer Fees Asussments Lm9d PIWAWater Flood C:.u t if'ocation HOA Assessments Assessmenhi Pendina Other """"'il"oed W1ter Tu t Tax R.....U.tration HOA Questionaire Attomev Doc p,.D Fee LHd/Nitrate Tea t Home Wamintv ADDraisal Brokera oe Fee )( SellCic lna......,tion DEC Annroval Fees F OITTl 70753. O ri ginated 11/0-4 . Revised 7115. © 201 5 Alaska Multiple Listin g S ervice. Inc. (AK ML S) All rig hts reserved . Pa ge 2 of 8 ~l~lllals S.llar(s) Initial s Page 154 of 276 DocuSign Envelope ID: E1EDF99D-Ol21-400C-AOE5-AOB780AF1BFC 1 2 3 4 5 6 7 8 9 10 I l 12 13 14 JS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 4 ] 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: Address: 2270 Royal Street Legal (the Property): Oragseth Sub 2016 Addo Tract A This form authorized for use ONLY by active Real Estate licensee Subscribers of Alaska Multiple listing Service, Inc. ALASKA MLS 5) Funds At Recording: Seller and Buyer agree before recording can take place. funds provided to the Closing Agent shall be in the following form : cash; interbank electronic transfer; money order; a certified check or cashier's check drawn on a financial institu- tion located in the state; or any above combination that permits the Closing Agent to convert the deposit to cash not lat- er than the next business day (AS 34.80.040). 6) Prorations: Property taxes, interest on loans being assumed, prepaid rents. and HOA fees, if applicable, shall be prorated as of the date of recording . 7) Titte!Survey: a} The Seller shall convey title by statutory warranty deed or ____________________ _ b) The Property may be subject to restrictions contained on the Plat; in the Deed ; in covenants, conditions , and re- strictions; or other documents noted in the preliminary tille report. c) On or before (dale), Seller will, at Seller's sole expense, order the report and exceptions from First American Title (Title Company) and furnish them lo Buyer. d) Upon receipt of the report and exceptions. Buyer shall have business days (three (3) if not filled in) within which to notify Seller. in writing of any matters disclosed in the report, which are unacceptable to Buyer. Buy- er's failure to timely object, in writing shall constitute acceptance of the report. e) If, within business days (three (3) if not filled in) following receipt of the objections, Seller fails to re- move or correct the matters identified in the objections, or does not give written assurances reasonably satisfactory to Buyer that they will be removed or corrected prior to the recording date this transaction shall automatically termi- nate. After recording , Buyer shall receive an owner's standard form policy of title insurance insuring marketable title in the Property to Buyer in the amount of the purchase price, free and clear of the objections and all other title ex- ceptions agreed to be removed as part of this transaction . f) Mineral rights may not pass with title to the Property. g) Neither Seller nor Seller's licensee make any representation as to the location of the lot corners or boundary lines. Buyer accepts sole responsibility for identifying and locating the comers and boundary l ines of the lot. h) Survey, as-built survey, or recertification or survey shall be dated on or after • (date) OR 0 a s required by Lender. 8) Documents/Disclosures Required By Law: a) Lead-Based Paint Warning: Unless exempt, if th e improvements on the Property include one or more residential dwelling(s) constructed prior to January 1, 1978. the Buyer shall not be obligated under the terms of this Purchase Agreement unless a completed Lead-Based Paint Disclosure form is signed by Seller and the Seller's real estate li- censee(s), w hich must occur before the parties sign this Purchase Agreement. (See EPA pamphlet Protect Your Famil y From Lead in Your Home for more information.) If applicable, Buyer acknowledges receipt of the tead- based paint disclosure signed by the Seller prior to signing this offer. b) Buyer DD has 0 has not received a copy of the State of Alaska Resi dential Real Property Transfer Disclosure Statement c ) Buyer I!! has 0 has not received a copy of the Alaska Real Estate Commission Consumer Disclosure. d ) Sex Offendel'$: The State of Alaska requires the registration of sex offenders residing within the State of Alaska (AS12 .63.010). The Alaska Department of Public Safety is charged with mai ntaining the registry created . For more information, contact the Alaska State Trooper Post, Municipal Police Department or on -l ine at the State of Alaska /Department of Public Safety (http ://www.dps.state.ak.us) Internet site b y clicki ng on the Sex Offender Registry. As a buye r, it is you r responsi bility to independently investigate and verify for yo ursel f the acceptability of a property with respe ct t o these issues. (AS34 .70.050). If Buyer elects to tenninate this agreement based upon this In- vestigatio n, Buyer must provide Se ller with written notice on or before NIA . e) The State of Alas ka m aintains a list of properties that have been identified by Alaska law enforcement agencies as illega l drug manufacturing sites , including meth labs. For more information on this subject and to obtain a li st of these properties, go to http://www.dec.state .ak.us If Buyer elects to tennlnate this agreement based upon this investigation, Buyer must provide Seller with written notice on or before NIA . f) If a Resale Certificate or a Public Offering Statement is required by law for the transfer of th is Property , it is hereby agreed that the time for the Buyer to review these documents beg ins on the date the Buyer acknowledges in writing the receipt of these documents. In the event that this Purchase and Sales Agreement terminates and Buyer has rece ived a Resale Certificate or Public Offering Statement, t he Buyer agrees to deliver the Resale Cer- tificate or Public Offering Statement to Seller or Seller's Licensee. Form 70763. Origina1et1 11104. Revi&ed 7116 . © 2015 Alaska Multiple Listing Service. Inc. (AK MLS) All rights reserved. Page 3 of 8 ~~ltials Sollor(s} Initials I I Page 155 of 276 DocuSign Envelope ID: E1EDF99D-C421-400C-AOE5-AOB760AF1BFC I 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: Address: 2270 Raya! Street Legal (the Property): Dragseth Sub 2016 Addo Tract A This form authorized for use ONL V by active Real Estate Licensee Sobscribers of Alaska Multiple Listing Service, Inc. ALASKA MLS 9) Property Condition: a) Until the date of possession or recording, whichever is earlier, Seller agrees to ma intain the Property in its current condition, subject to ordinary wear and tear. b) Buyer and Seller understand that Brokers and/or Licensees are not experts in the areas noted below and Buyer and Seller should rely solely on experts who are qualified in these areas. Brokers and/or their Licensees make no rep- resentations regarding the Property, including whether the residence or other improvements meet current building codes, safety or other requirements; and assume no duty to investigate or verify any disclosures made by Seller. c) In the event the improvements on the Property are destroyed or materially damaged prior to recording , then, at the Buyer's option, this Purchase and Sale Agreement shall terminate upon Buyer's written notice to Seller. 10) Appraisal: a) Q Buyer Q Seller agrees to advance funds for the appraisal fee to Lender by (date) and authorizes the Lender to order by , (date). b) The completion of Purchase Q is Q is not contingent upon the appraisal of the Property being equal to or greater than the agreed upon Purchase Price. c) If the completion of Purchase is contingent upon the appraisal, and the Property does not appraise for the Purchase Price or greater, the parties shall have __ business days (three (3) if not filled in) from receipt of appraisal to re- negotiate the Purchase Price. In the event the parties do not reach agreement on the Purchase Price within this time, the Purchase Agreement shall automatically terminate. (In the event of FHANA loans, the FHANA Amenda- tory Clause shall supersede). d) In the event the appraisal generates Lender-required repairs, repairs to be negotiated between Seller and Buyer. e) If Seller and Buyer have not reached an agreement regarding Lender-required repairs. within business days (three (3) if not filled in) of Seller's receipt of the appraisal, this Purchase Agreement shall automatically termi- nate. f) If repairs/remedies are subject to re-inspection and approval prior to the recording date, Buyer shall pay for first re - inspection. Thereafter, Seller to pay for all additional re-inspection fees . 11) Recording/Possession: a) This sale shall be recorded on 06121/2017 • (date) or earlier by mutual agreement. Prior to recording, Buyer and Seller agree to sign all reasonably necessary closing documents and to perform the reasona ble condi- tions required by the Closing Agent and Buyer's Lender. b) If obtaining new financing , and: i) If Buyer is unable to obtain a loan commitment from agreed Lender by Recording Date, through no fault of Buyer, Buyer to provide written notice to Seller immediately upon Buyer learning of their inability to obtain loan commitment from Lender. This Purchase Agreement shall terminate automatically unless Seller and Buyer agree to modifications by Amendment to this Purchase and Sale Agreement. ii) If Buyer fails to provide notice of inability to obtain loan commitment by such date (11a), or as rnodffied by Amendment, and this transaction does not record, through no fault of the Seller, Buyer shall be in default. c) Seller shall deliver possession of the Property to the Buyer upon confirmation of recording or 0 under attached occupancy agreement or Q other------------------ d) Unless otherwise agreed in writing, Seller shall remove all debris, personal property not sold to Buyer , and leave the Property in dean condition . Seller shall provide keys and/or means to operate all locks. including but not limited to: mailboxes. security systems , alarms, garage door openers and any portable control devices for accessing the Property upon confirmation of recording. e) Buyer may walk through the Property prior to recording to determine there have been no material changes to the condition of the Property. f) If Property is a unit in a condominium or other common interest community, Buyer may be required to pay a deposit to the homeowners' associatio n (HOA) to obtain access to HOA fa cilities . 12) Tenant Occupied Property: Seller to provide rental/lease agreement(s) including lead based paint d isclosures(s) (if applicable) within three (3) busi- ness days of fully executed Purchase Agree ment which are subject to Buyer's approval within the time set forth in Par- agraph 1 of the Kenai Peninsula Right and Duty of Inspection Addendum. Seller and Buyer shall comply with the regu- lations contained in the Alaska Land lord/Tenant Act . All refundable deposits shall be transferred to the Buyer at record- ing. Seller to provlde Estoppels Certificate(s) prior to dosing. Forni 70753. Originaled 1 1104. R ev1$ed 7115. © 2015 Alaska Multiple Listing Service, Inc. (AK MLS} All right& reGe rved. l:il& Page"lofS ~~iti;als Soll<lr(a) lnltlala Page 156 of 276 DocuSign Envelope ID: E1EDF990-C421-400C-AOE5-AOB780AF1BFC I 2 3 4 5 6 7 8 9 JO II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 5 8 Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: Address : 2270 Royal Street Legal (the Property): Oragseth Sub 2016 Mdn Tract A This form authorized for use ONLY by active Real Estate Licensee Subscribers or Alaska Multiple Listing Service, Inc. ALASKA MLS 13) Insurance: It is the Buyers' responsibility to detennine whether homeowners' or property owners' Insurance can be obtained for this property on or before as need before dosing • and provide evidence of availability of same as may be required prior to recording. 14) Carbon Monoxide Detectors: Carbon Monoxide (CO) is a colorless. odorless, and potentially fatal gas produced by the burning of fossil fuel. advised to use CO detectors in your property and have heating systems inspected and serviced regularly. Statute AS 18.070.095(a). 15) Home Warranty Protection Plans: You are Alaska Home warranty protection plans (HWPP) may be available to buyers and/or sellers for residential properties, including multi-family units, during and after recording of this transaction. However, the HWPP does not replace the need for an independent home inspection. The Real Estate Brokerages do not warrant or provide any product or service in connec- tion with the HWPP. In the event Buyer andfor Seller choose not to purchase a HWPP prior to recording, this paragraph shall serve as acknowledgement Buyer and/or Seller wish to waive their right to purchase the plan. 16) Brokerage Notice Regarding Earnest Money Deposits & Refunds: Under Alaska law (12 ACC 64.250(7)), earnest money must be deposited into the Real Estate Brokerage trust account in a timely manner. Alaska Statutes and Regulations also require real es1ate brokerages to ensure the bank has cleared the earnest money deposit before funds can be released . If an offer is not accepted, or Purchase and Sale Agreement terminates, there may be up to fourteen (14) business days delay in refunding the earnest money to the Buyer, to allow the Buyer's check to dear the Real Estate Brokerage Trust Account. If Buyer provides written documen- tation from their bank showing funds have been deposited in Broker's Trust Account. Alaska Statutes & Regulations requ ire the Broker refund the earnest money to the Buyer not more than one business day after the Buyer's check has cleared . 17) Tennination: lo the event this Purchase Agreement is terminated as provided for in this Purchase Agreement, absent a default by the Buyer. all earnest money shall be returned to the Buyer and all parties shall be relieved of their obligations as set fort h herein . 18) Time of the Essence and Remedies: Seller and Buyer understand that time is of the essence. If any obligation is not performed or waived as provided, or if any note or check received as earnest money or any other payment is not paid, honored or tendered when due, there shall be the following remedies: a) If Buyer is in Default: Except as provided in Paragraphs 3 , 10c, 10e, 11b, 19 and 20, Seller's remedies shall be limited to liquidated damages in the amount of the earnest money set forth in Paragraph 1 above . It is agreed that such payments and things of value are liquidated damages and are Seller's sole and only remedy for Buyer's failure to perform the obligations of this contract. The parti es agree that Seller's actual damages in the event of Buyer's default would be difficult to measure, and the amount of the liquidated damages herein provided for is a reasonable estimate of such damages. b ) If Seller Is in Default: Buyer may elect to treat th is Purchase Agreement as canceled, in which case all earnest money paid by Buyer hereunder shall be returned and Buyer may recover such damages as may be proper. or Buyer may elect to treat this Purchase Agreement as being in full force and effect and Buyer shall have the r ight to specific performance or damages, or both. 19) Earnest M oney Di spute: Notwithstanding any term ination of this Purchase Agreement, Buyer and Seller agree that. in the event of any c ontro- versy regarding the earnest money held by Broker, the Broker may : a) Make the determination as to the cause of the failure of this Purchase Agreement and distribute the earnest money accordingly after giving notice to Cooperating Broker, o r b) Require the parties to execute an agreement for the release of the earnest money, in which case the earnest mon- ey shall be distributed in accordance with such agreement. If the parties are unwilling to ex ecute an agreement for the release of earnest money, the parties shall submit the matter to mediation as provided below, and if mediation fails . the broker may file an interpleader action in a court of competent jurisdiction requesting the court to determine the distribution of the earnest money. Broker shall be entitled to an award from the earnest money of full reasona- ble attorneys· fees and costs. F om1 70753 Originate d 11/()4_ Revised 7115. €> 201 5 Alaska M u ltip le Li sling Service, Inc. (AK MLS) All rights reserved . Page 5 of 6 cc '~ltialJ Scflor(11) Initials Page 157 of 276 DocuSign Envelope ID; E1 EDF99D-C421-400C-AOE5-AOB780AF1 BFC ] 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 4-0 Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: Address: 2270 Royal Street Legal (the Property): Dragseth Sub 2016 Addo Tract A This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service. Inc . ALASKA MLS c) In the event the Broker makes a determination as to the cause of the failure of the Purchase Agreement and dis- tributes the Earnest Money accordingly, the parties hereto agree to indemnify and hold the Broker harmless from any and all claims, liabilities or losses that either party may incur as a result of the Broker's decision. 20) Mediation: If a dispute arises relating to this Purchase Agreement. between or among Buyer and Seller, and is not resolved prior to or after recording, the parties shall first proceed in good faith to submit the matter to mediation. Costs to be shared by mutual agreement between or among the parties. Unless otherwise agreed in mediation, the parties retain their rights to proceed to arbitration or litigation. If the parties have not agreed to mediation within 30 days from date of original dis- pute, It will be assumed that they do not wish to mediate the dispute and the Broker will act accordingly. 21) Costs and Expenses: In the event of any arbitration or litigation relating to this Purchase Agreement, the arbitrator or court shall award to the prevailing party all reasonable costs and expenses. including attorney fees. 22) Broker: a} It is mutually agreed by all parties that the Brokers and/or their Licensees shall not be held liable in any manner whatsoever for damages arising from defaults or acts by or omissions of Buyer or Seller. b) Both Buyer and Seller acknowledge Brol<ers are participants of the Alaska Multiple Listing Service, Inc., {AK MLS) and are authorized to report details of the sale to AK MLS. 23) Authorization to Release lnfonnation to Brokers: Buyer and Seller authorize any lender. escrow agent. closing agent. appraiser. home inspector, surveyor and any other related party to this sale to furnish and provide any and all information and copies of documents related to th is sale to both the Listing and Selling Brokers and their Licensees. 24) Foreign Investment in Real Property Tax Act: The Foreign Investment in Real Property Tax Act ("FIRPTA") requires every person who purchases real property locat- ed within the United States from a 'foreign person" to deduct and withhold from the Seller's proceeds ten percent (10%) of the gross sales price, with certain exceptions, and to pay the amount withheld to the Internal Revenue Service. A "foreign person" includes a non-resident alien individual , foreign corporation, foreign partnership, foreign trust, and fo r- eign estate. Seller and Buyer agree to execute and deliver, as appropriate, any instrument, affidavit or statement. and to perform any acts reasonable or necessary to comply with FIRPTA. Z5) Attachments: The following attachments are hereby made part of this Purchase Agreement: see attached addendum 26) Additional Tenns and Conditions: Sales price to be $825,000 Down payment to be 15% ($123,750.00) Seller F inan cing: $7 01 ,2 50 .00 p ayable at $3 ,34 7 .87 , o r m o re . p er m onth i nc luding 4% inte rest per a nnum w ith balloon p ayment d ue in 6 months or u ntil December 3 1 whichever is earli er. D ue o n sale clause, prepay ment option and remedies upon default t o be i n cluded in doc uments . O ffer C ont ingent upon special use penm it s to be p ut in p la c e for p rofessional o ffice , lodgin g , res ta u rant . a i rpo rt, assemblies o n mansion, also conti ngent on agreement of p u rchase o f acreage for d i rt runway from t ax parc els #049101 2 8 and 04910051 and pennit for Airport. In s u ranc e on property n aming C ity of K enai as additional insured t o be pro vided by b uyer before closing. Offer su bject to Council App rov al 0 See attached addendum for additional terms and conditions . Form 70753. Orfg 1natc <1 1 1/QAI . RcviGC <! 7/16. c. 201 5 A laska M ul tiple Listing Service, I nc. (AK MLS) A ll righte reserve<!. Page6of8 Seller(s) Initials Page 158 of 276 DocuSign Envelope ID: E 1EDF99D-C421-400C-AOE5-AOB780AF 1BFC Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: ~ Address: 2270 Royal St reet ~ Legal (the Property): Qragseth Syb 2016 Mdn Tract A ALASKA Thi s form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, In c. M LS I 27) Acceptance/Notice of Acceptance /Delivery: 2 This offer may be accepted by being signed. or electronically signed, by the other party with no changes , and such ac- 3 ceptance shall be effective when a complete copy of the fully signed ag reement is delivered to the other party by any 4 one of the following methods: 5 a} Hand delivery to the other party or the other party's licensee or the other party's Brokerage; 6 b) Via email to the other party or the other party's licensee, but only if the person transmitting the email receives elec- 7 tronic confirmation that the email was received by the intended recipient; or 8 c) Via facsimile to the other party or the other party's l icensee, but only if the transmitting fax ma c hine prints a confir- 9 mation that the transmission was success ful. JO 11 This Purchase Agreement may be signed In multiple counterparts with the same effect as if a ll parties signed the same 12 documents. 13 14 Delivery of a photocopy , telefax, electronic, carbon or carbonless copy of a signed , or electronically signed , original of 15 this Purchase Agreement or any other documents referred to herein shall be treated the same as delivery of the ori gi- 16 nal. 17 18 28) Entire Agreement: 19 This Purch ase Agreement , the Resi dential Real Property Transfer Disclosure Statement, and any attached addenda 20 constitute the Whole agreement between the parties. No warranties, including any warranty of habitability, agreements 2 1 or representations have been made or shall be binding upon either party unless herein set fort h. This document may 22 not be modified except in writing and signed by the Parties. 23 a) Buyer agrees to pu rchase and pay for the above-described Property on the terms and conditions herein staled . 24 Receipt of a copy of this Purchase Agreement is hereby acknowledged . Buyer understands th is is a legally binding 25 contract. 26 b) Buyer agrees that recording of the sale wlll constitute an acknowledgment that the premises and Its sys- 27 terns are acceptable at the time the sate is recorded. 28 2 9 In the event the Seller or Seller's Licensee has failed to notify Buyer or Buyer's Licensee, of the Seller's signed ac- 30 ceptance prior to May 17,201 7 , (date) __ a .m . _5 __ p.m. (time), this offer shall tennl nate. 31 32 Th is Purc hase Ag reement h as significant legal and financial con se quences. You are advis ed to see k independent legal an d 3 3 financial counsel, including tax advice from a ta x attorney or CPA, b efore signing . The Brokers and License es cannot give 34 lega l, tax or financial advice. 35 36 37 38 3 9 40 4 1 42 43 44 45 46 Buyer Si~.~ture~) 1 :~ 2 . 3 . __________ _ ~70 .. Date 4/25/2017 _____________________ Ti me: _________ _ __ a .m. __ p.m. Print name(s) to be on d ocuments A ddress Phon e E-Mai l Name of Se llin g Bro ker's Offi ce Lice nsee Si gnature . ______________ licen se e Signature---------------- Selling licensee #1 Fax Numbe r: _________ Selling Li censee #2 Fax Number:----------- ___________ Selli ng Licensee #2 Email:-------------S elling Lice nsee #1 Ema il : Fonn 70753. Originated 11/04. Revised 7/15. f~ / e 20 15 Alaska Multiple Listing Service. Inc (AK MLS) All nohtR reset\led P age 7 o f 8 ~~ l nltlals I I Sol ler(s) Ini tials Page 159 of 276 DocuSign Envelope ID: E1EDF99D-C421-400C-AOE5-AOB780AF1BFC Kenai Peninsula Purchase and Sale Agreement Regarding Property Described As: ~ Address : 2270 Roya l St reet ~ Legal (the Property): Dragseth Sub 2016 Addo Traci A ALASKA This form authorized for use ONLY by active Real Estate Licensee Subscribers of Alaska Multiple Listing Service, Inc. M LS Brokerage Fee: 2 A real estate broker may be compen sated by any party to a real estate transaction , by a thi rd party, or by one or more of the 3 parties to the tran saction splitting or sharing the compensation . Selle r and/o r Buyer ag ree to pay fo rthwith at recording a 4 brokerage fee in cash as stated in the Persona l SeJVices Ag re ement. (i.e . Listing Agree ment, Buy er's Agreement) 5 6 Se ller Respon se: (sign only one!) 7 8 • Seller accepts the foregoing offer as written. Seller agrees to sell and convey the Prop- 9 erty described on the ter ms and condition s herein stated. Seller understands this Is a 10 legally binding contract . 11 Seller Signature(s) 1: 2 . 3 . Date Tim e : --a .m. __ p.rn . 12 13 • Seller makes t he attached Counter Offer 14 Selle r Signature(s ) 1: 2 . 3 . Dale Time : --a.m. __ p .m. 15 16 • Seller hereby rejects t he foregoing offer and dec lines to mak e a Count er Offer 17 Seller Signature(s) 1 : _____________ _ 2. ___________ _ 3 . _________ _ Date ___________________ Tim e: ________ _ __ a.m. __ p.m. 18 Pnnt name(s) ----------------------------------~ 19 Address 2270 Royal Street 20 2 1 22 Phon e _______ E-Mail ---------------------------- 23 Name of Li sti ng Bro ker's Offi ce ------------------------------ 24 25 Licensee Si gnature _____________ Lice nsee Signa tu re -------------- 26 27 listin g licensee #1 Fax Number: --------Listing licensee #2 Fax Numbe r:---------- 28 29 Lis ti ng Licensee #1 Email: ----------Li sting Li ce nsee #2 Em ail:------------ 30 Form 70753. Orig inated 11/04 . Revised 7115. © 2015 Ala~ Multiple Listing S ervice . Inc (AK MLS) All righls reserved . I~ Pegc 8 of 8 ~~itials Seller(s ) l n tuals Page 160 of 276 DocuSign Envelope ID: E1EDF99D-C421-400C-AOE5-AOB780AF1BFC Addendum or Amendment to the Purchase and Sale Agreement Th is form authorized for use ONL V by active Real Estate Licensee Subscribers or Alaska MLJtiple listing Service, Inc. ~ ALASKA MLS Date 0412512017 2 In reference to the Purchase and Sale Agreement between: 3 PRL L og jstjc INC 4 City of Kenai , the Buyer(s), and , the Seller(s), dated S 04/2512017 . covering the real property commonly known as: 6 Address: 2270 Royal Street 7 Legal (the Property): Dragsetb Sub 2016 Mdn Tract A 8 the undersigned Buyer(s) and Seller(s) hereby agree to the following <check onlv one): 9 ~ Addendum -to be used when more space is needed on the Purchase and Sale Agreement 10 Q Amendment-to be used only when changing an existing Purchase and Sale Agreement II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Escrow to be set at First National Bank Dining room table and chairs , plus 3rd floor desk to remain Seller to pay 3% brokerage fee Buyer request city turn w ater back on in mansion before closing and repair leaks if any. To the extent any provision of this Addendum/Amendment is Inconsistent with the provisions of the Purchase and Sale Agreement, the terms o f this Addendum/Amendment shall control. All other Terms and Conditions to remain the same. This Addendum/Amendment shall expire unless the party making this Addendum/Amendment is notified of its acceptance no later than 05/17/2017 (date) 5 0 am .~ p .m . (time). Notification of acceptance of this Amendment/Addendum may be made only by one of the methods specified in the paragraph tilled 'Acceptance/Notice of Acceptance/Delivery' as contained in Purchase and Sale Agreement. Date: 4/25 /20l7 Time ·. 0 am 0 . . p .m . 3 : C 'r--....,.~~\ __ r_ ___ _ Brokerage---J~...._1,.-1-1-..i...::::~-~,._-.1:~'--...c::i.:.u.aiuu;•~.Lcensee(s) ... , j\o 1y\.ok ;1 ~;.s.;--H''....) JZ1Buyer0 S The undersigned accepts the above Amendment/Addendum Upon execution by both parties, this agreement becomes an integral part of the referenced Purchase and Sale Agreement. Date: Time:----------0 a .m . Q p .m . Q Buyer Q Seller 1: -----------2: ---------~ 3 : ---------~ Brokerage ________________ ~Licensee(s) ---------------~ Form 70718. Revised 03113. © 2015 Alaska Mulliple listing S eTV1Ce , Inc. (AK MLS) All rights reserved Page 161 of 276 'Vtffate t<1/t~ a Pa~~ e~ t<1/t~ a h.t~" 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager(' 0 · April 27, 2017 Ord inance 2957-2017 Tract A, Dragseth Sudivision , 2016 Addition is a City-owned parce l which contains land and a residence. The C ity acquired the parcel utilizing State grant funds to improve access and fac ilities on the South Beach . Tract A contains 6.303 acres of land, an approxim ately 7,500 square foot residence , and several outbuildings not needed for a public purpose. The City has been attempting to sell Tract A , whereby proceeds from the sale will go back into the grant for the Cities use for South Beach related improvements . PRL Logistics has made an offer to purchase Tract A with the condition that the purchase include the adjacent airstrip to the north for the use of fixed wing aircraft and airships in support of their business operations. Additionally, because Tract A is currently zoned Rural Residential , PRL Logistics will be required to apply for a conditional use permit that would allow their intended uses of office space , lodging , restaurant I bar, event hosting , and airport-related uses . The offer by PRL Logistics is for a purchase price of $825,000, financing the sa le for up to 6 months with an interest rate of 4% and a down payment of $123,750 . If approved, closing on the purchase is tentatively scheduled for June 19, 2017. The conditional use permit process for both Tract A and for the airstrip should be completed prior to closing . If the conditions in those permits do not sufficiently support their business needs or if they are not permitted to purchase the airstrip from the City, PRL Log istics has the option of cancelling the closing and recei vi ng their earnest money payment back . Your consideration of th is ord inance is appreciated. Page 162 of 276 Ke1meth Tarbox 33270 Community College Drive Soldotna, Alaska 99669 9072627767 tarbox@p tialaska .net May 2, 2017 Paul Osh"ander, City Manager City of Kenai 210 Fidalgo Avenue Kenai, Alaska 99611 Dear Paul Osh"ander, City Manager, The purpose of this Jetter is to conunent on the proposed sale of C ity of Kena i land to PRL Logistics for use as an airsb·ip. During our conversations it has become apparent that a number of questions need answering before one can make a reasonable assessment of impacts of this proposed sale on the environment, recreational activities at the site, and whether the b enefits of sale ouhvcigh the potential negatives. Before I get into the specifics I would like to point out t11at the land in question is located in one of th e most environmentally productive a reas on the Kenai Peninsula. Estu arine areas are critical to fish and wildlife populations and the Kenai estuary provides r esting, feed ing, and/ or breeding habitat for thousands of birds. Over 180 species of bi rd s have been documented t o use the Kenai River estuary. The gull colony loc a ted in and adjacent lo the proposed sale area has a breeding population of 20,000 birds at the s tart of April growing to 30,000 \•vhen the yo ung hatch and fledge. Tn addition waterfowl and shorebirds numbe ring in the tens of thousands pass through this area on their migration lo northern breeding sites. Because of th is use pattern this area has been designated a Continental Jmportant Bird Arca by the National Audubon Society. But birds are just part of the story. Plant material moves from the estuary to the nearby Kenai River providing nutrients and energy to riv e r flora and fauna. In short, this is critical habitat by any measure. D Page 163 of 276 The proposed sale from '"'hat I understand it to provide landing and takeoff area for hybrid airs hips and fixed winged aircraft up to twin otter s . Frequency of u se has not be en determined at this point. Reviewing the sale rationale it is hard for one to justify this sale when hvo major airpor ts (Kenai and Soldotna) are w ithin 12 miles of the proposed ad h oc airsh·ip. Th ese tvvo a irports offe r infrastructure, landing and takeoff space, safety s t and ards and procedures that protect th e public and the environment. The p roposed airstrip does not p rovide the same level of service and p r otection and threatens a critical habitat area. Th erefore this begs t he question -What is the ra ti o n ale tha t would support putting t he p u bic and environment at r isk given the proximity of the exi sting airports ? I h ave read o r h eard n othing th at says the use of the airpo rt would threat en the viability of the hybrid airship project. Assuming th e sale goes through then ther e are a n umber of issues/questions that need to b e discussed before a conditional use permit is given. I have listed these b elow : 1. Vvhat is the projecte d operational (n ot just sta rt up) level of use by day and month for all an ticip ated aircr aft? Th e assumption is lhat the business w ill be successful so what constitutes a successful operation and use? While the exact day of use may n o t be known a rough approximation of use patterns is needed to assess impacts. 2. What is the fligl1l pnth of the hybrid aircraft to the hanger location and other aircraft to the airstrip? Does th e flight path go over s ignificant portions of the estuary? 2 3. Will there be any restrictions on public use (exclus ion zones) that go beyond the sale boundaries due lo concerns for security or safety? For example, Homeland Security put an exclusion zone around the Nikiski dock area. lf military materia ls are loaded at the airstri p or h o m el and security issues arise will that prompt additional sec urity measures? 4. Duck hunters use the area and will be shooting towa rd and over the airstrip? \!\'ill an exclusion zone be implemented to res trict fir ea rm us e near the airstrip? 5. From April to November thousands of birds will be in the flight path of aircraft landing and taking off. Will the ownPr of the airsh·ip seek USFWS permits for hazing or conh·olling bird use in the area? \Vha t is the risk of an accident due lo a bird s lrikes '":hen thousands of birds are present? Can a season al restriction on use during April to Novembe r be implemen ted and at whal level? What liability doC's the City have fo r selling a property for a use that has a significant ri sk of acc id en ts due to bird strikes and high density of human use on the adja cent beach? Page 164 of 276 6. During the p eriod April to November recreational use of the area by personal use fisherman, bird watchers, and hunters wiU bring thousands of people in close proximity to the airstrip. This creates a significant pote ntial for the safety of these individuals in the event of an accident. What measures are being taken to reduce this potential? Does the owner plan to fence any part of the airsb·ip to limit access? If so what impact does that have on w ildlife and the estuarine structure and function? 7. wrn the use of the airstrip require any additional mechanical work (cl earing, vegetation conb·ol. .. ) beyond its existing condition for use with the h ybrid airship or o ther aircraft? The proposed sale is for a width of up to 400 feet which is beyond the present disturbed area. Will mechanical clearing of this area o r 1nowing of the grass be done in this larger area? If so will resb·ictions be put on when this will happen to protect nesting and migrating birds? Has any assessments been made of this project on dune s tability? 8. The area in question floods or is \·vet during the year. What type of protections will keep the new land owner from filling in the area and h-ying to protect his a irstrip by channeling water away from the airstrip? Have hydrology studies been done to see what impact changing this airsh·ip will have on the r est of the southern portion of the fle1ts or the existing infrastructures including roads? 9. What is the impact of an airstrip use (e.g. noi se and human activity) on the area beyond the airstrip? For example, adverse reactions to disturbance by birds may eliminate or reduce current gu11 , water fov.11, tern, and songbird n esting areas? What noise levels are anticipated and ,.,,hat impact will both wildlife and humans in. close proximity to the acti vity (for example during th e personal use fi shery) experience? 10. The airsh·ip crosses a public road paid for with State of Alaska funds. Will this road be closed for use when the a irsh·ip is being used? Whal safety measures will be put in place to keep traffic from going on or across the airstrip? 1l1 e new road cannot be closed as the funding source is the State of Alaska. Does the City or owner plan to ask for temporary closures during aircraft operations or loading o f materials? 11. Are there any federal of state permits required for consh·uction, operation, and maintenance of thi s airsti·ip? Do any permits require an environmental assessment? 12. Has the City contacted any experts on this area or the Federal or State agencies for comments on this project and/ or mitigation measures? Thank you for taking th e time to consider my concerns about this project. In sunu11ary, the preferred alternative from m y perspective is to u se the existing airports or at least 3 D Page 165 of 276 seasona lly. For exa mpl e, from th e month of April to November the airstrip is closed to use. During this period the environmental and safety risks ar e signif icantly lowered given that th e other considerations a re accommodated. Thu s use during this time p eriod may be possible w ith potential mitigation m easures. H owever, it will take time to discuss and w ork out th e deta ils given the lack of information at this time for a prope r evaluation and discu ssi o n . l knm·v J h ave not covered all the questions but h ope th is le tter h e l ps t he Council s ta r t the discussions. J am available for further discussion if the Council or you d esir e. Sincerely, Kenneth Tarbox Page 166 of 276 Page 167 of 276 Page 168 of 276 ---:T:-1 111~~ I J~!j~ I I/I~ i i ~t1~~@11 I ! !3 I~ § ~ 11 i "' I~ ~ 11: Is ... ' ... ' .., I 1' I ~ I~: I I I ~ a~ !; "" iS "" i i (· '= • a <: ! ;~ <: ~ <:~ () ~ 'i " °' ., " ~ ,: " ~ ' <: <: f f ~<: ~ <: ~ f <: f :~ •oe $+ ,I; ... <: f :.1 r. itg <•l pi:! ~· pi ti <: <: <-~ffif ~i:n ;~s-~· ::~ .. <-HI =~qa~ql~h q' !rf'-~€•· <: <: <: • ¥ ~A·~-! tt';; -s~ l <: Page 169 of 276 8 r .r r;GION ~FPL/~ ;, i\lf,-._(ACATIC.. . 3· _/-\ ~ 11 ' ' 902 K p.VE. 8 )2 -JAVE )03 2 816 90'3 814 RlVERVI~ g g § ~OA )&!J .,, lfi· ii'! t 901 ~ :g 1 0 8 (ij <( co 1-- 1 ~ g 7 3&9 A 4 • 608"'" ovv v..,.. ..._ . 2 Page 170 of 276 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2017-53 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, SUPPORTING KENAI PENINSULA BOROUGH ORDINANCE 2017-17, ESTABLISHING AN EIGHT PERCENT AREAWIDE SALES TAX ON TEMPORARY LODGING AND PROVIDING FOR AN EXEMPTION OF UP TO FOUR PERCENT OF THE LEVY ON TEMPORARY LODGING WITHIN THE BOUNDARIES OF CITIES IN THE BOROUGH THAT LEVY A SIMILAR SALES TAX IN ADDITION TO AN EX ISTING GENERAL SALES TAX , SUBJECT TO APPROVAL BY THE VOTERS IN THE REGULAR ELECTION ON OCTOBER 3, 2017. WHEREAS, due to the continuing decline in state assistance to municipalities and other losses of revenue , the Kenai Peninsula Borough is pursuing a borough-wide bed tax similar to bed taxes levied by other Cities and Boroughs in Alaska; and, WHEREAS, the City of Kenai attracts a significant number of visi t ors to the Kenai Peninsula each year, and although visitors contribute to the economy, the City does not currently receive any direct revenue from visitors to offset demands on public services other than the City's share of general sales tax; and, WHEREAS, the City at one time had a Ho tel/Motel Room Tax of five percent (5 %) which was transmitted from the operator and /or owner renting rooms to the City; however, effective June 15, 1996, the Hotel/Motel Room Tax was suspended unti l such time as Council directs otherwise; and , WHEREAS, under the Borough Ordinance, the bed tax would be 8% of the room rate and apply to "temporary lodging ," defined as "a service to provide any lodging of less than one month ," and would include motels , hotels , and bed and breakfasts within the City of Kenai; and , WHEREAS, the City of Kenai does not currently have a bed tax and , if adopted and approved by voters , Ordinance 2017-17 would allow the City to participate in a Borough-wide 4 % bed tax le vie d by cities within the Borough in which the borough-wide rate of 8% would be co lle cted by the Borough , and 4% remitted to the City; and , WH EREAS , the revenue generated from the Borough portion of the bed tax would be used for educational purposes and make other Borough revenues available to offset visitor costs, however the City would be able to designate where to direct its portion of the bed tax; and , WHEREAS, this Resolution of support does not obligate the City to enact a bed tax but supports placing an areawide bed tax on the October 3, 2017 Kenai Pen insula Borough ballot. NOW, THEREFORE , BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA , supports Kenai Peninsula Borough Ordinance 2017-17 , establishing an 8% areawide sales tax on temporary lodging and providing for an exemption of up to 4% of the levy on temporary lodging within the boundaries of cities in the borough that levy a similar sales tax in Page 171 of 276 Resolution No. 2017-53 Page 2 of 2 addition to an existing general sales ta x, subject to approval by the voters in the regular election on October 3, 2017. BE IT FURTHER RESOLVED , a copy of this resolution be transmitted to Mayor Mi ke Navarre and Kenai Peninsula Borough Assembly Members . PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 2nd day of August , 2017. BRIAN GABRIEL SR., MAYOR ATTEST: Sandra Modigh , City Clerk Page 172 of 276 'Viti~ «J/ti a Po.if~ Ct'ti «J/ti a ratun,, II 210 Fidalgo Ave , Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Counc il Paul Ostrander, City Manager ?. O . July 27, 2017 Resolution No. 2017-53 -Supporting Kenai Peninsula Borough Ordinance 2017-17 to Establish a Sales Tax on Temporary Lodging Due to the continuing decline in state assistance to municipalities and other losses of revenue, the Kenai Peninsula Borough is pursuing a borough -wide bed ta x similar to bed ta xes levied by other Cities and Boroughs in Alaska to be placed on the Borough ballot October 3 , 2017 . The City at one time had a Hotel/Motel Room Ta x of 5 % which was transmitted from the ope rator and /or owner renting rooms to the City . This ta x was suspended in 1996 until such time as Council directs otherw ise , and the C ity does not have a bed ta x at this time . If adopted and approved by vote rs, Ordinance 2017-17 would allow the C ity to partici pate in a Borough-wide 4% bed ta x levied by cities with in the Borough in which the borough-wide rate of 8 % would be collected by the Borough , and 4% remitted to the City. The City's participation in a bed ta x would include approximately 28 businesses operating as motels , hotel s, or bed and breakfasts within the City of Kenai. Arguments in support of the bed ta x include generating revenue from visitors who do not pay ta xes other than general sales ta xes . The City of Kenai attracts a significant number of visitors to the Kenai Peninsula each year, and although visitors contribute to the economy , the City does not curren tly receive any direct revenue from visitors to offset demands on public services other than the City's share of general sales ta x. The estimated annual distribution of ta x revenue for a full fiscal year ranges between $200 ,000 -$240 ,000 to the City of Kenai. Support of Resolution No. 2017-53 does not obligate t he City to enact a bed ta x but supports placing an areawide bed ta x on t he October 3, 2017 Kena i Peninsula Borough ballot. Page 173 of 276 KENAI CITY COUNCIL – REGULAR MEETING JULY 5, 2017 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR BRIAN GABRIEL, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on July 5, 2017, in City Hall Council Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at 6:00 p.m. 1. Pledge of Allegiance Mayor Gabriel led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor Robert Molloy Henry Knackstedt Tim Navarre Jim Glendening Glenese Pettey Mike Boyle A quorum was present. Also in attendance were: Paul Ostrander, City Manager Jamie Heinz, Acting City Clerk 3. Agenda Approval Mayor Gabriel noted the following modifications to the agenda and additions to the packet: Add to Item D.4. Ordinance No. 2968-2017 • Correspondence from M. Whiteley • Appraisal Report from MacSwain Associates Remove Item G.2. Purchase Orders Exceeding $15,000 MOTION: Council Member Molloy MOVED to approve the agenda with the requested modifications to the agenda and additions to the packet and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. Consent Agenda Page 174 of 276 City of Kenai Council Meeting Page 2 of 10 July 5, 2017 MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, the public hearing was closed. VOTE: There being no objections, SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS 1. Johna Beech, Kenai Visitor and Cultural Center – First Quarter 2017 Statistics Report. President and COO of the Kenai Chamber of Commerce, Johna Beech, provided an overview of the Kenai Chamber of Commerce, the Kenai Visitor and Cultural Center, and the visitor center’s statistics for the first quarter of 2017. 2. U.S. Army Corps of Engineers – Alaska District – Kenai Bluffs Bank Stabilization Project. Ronnie Barcak and Jan Deick provided an overview of the history of and the feasibility study for the Kenai Bluffs Bank Stabilization Project. C. UNSCHEDULED PUBLIC COMMENTS Justin Post explained complications with signage for his business near the Right-of-Way to the Kenai Spur Highway and had been advised by State of Alaska, Department of Transportation that he needed to remove signs; further explained the Right-of-Way went to the edge of the building. Pamela Papasodora, another tenant in the commercial building, agreed that the inability to have signs was a problem. Vivian Swanson, manager of the the property, added that another new business recently left because they couldn’t have a sign by the road and couldn’t afford to be there without the signs. D. PUBLIC HEARINGS 1. Ordinance No. 2968-2017 – Appropriating General Fund Balance Funds into General Fund Land Administration-Lands Fund for the Purchase by the City of Kenai’s General Fund of Airport Property Outside the Airport Reserve Constituting Approximately 16.49 Acres of Real Property Described as S1/2 S1/2 SW1/4, Section 33,T6N, R11W, Seward Meridian, Commonly Referred to as ‘Lawton Acres’ and Deed Restricting the Page 175 of 276 City of Kenai Council Meeting Page 3 of 10 July 5, 2017 Future Use Of the Property to Parks and Recreational Uses to be Retained by the City for a Public Purpose. [Clerk’s Note: This item was postponed to this meeting from the June 21 meeting for a second public hearing and Airport Commission review and recommendation on July 13. A motion to enact is on the floor.] Clarification was provided regarding the appraisals having been done with the property zoned as Conservation. Mayor Gabriel opened the public hearing. Michael Christian expressed concern with the time it would take for the Airport Commission to weigh in and with the notification postcards not being mailed; also suggested the City should know what kind of contamination was in the property from the fire training operations. Greg Daniels spoke in favor of the ordinance noting retention of the beautiful piece of property added to residents’ quality of life and was appreciated by the visitors. Pointed out that Kenai was a two-time All-America City winner and that beauty was a factor in that award. Barb Christian spoke in favor of the ordinance noting she was surprised by all the facets involved such as contamination and water and sewer services; hoped a solution could be found to keep the property as a buffer. Vivian Harriet spoke in favor of the ordinance noting she traveled down Lawton Drive often and loved the trees, flowers, and homes in the area and would rather see the beauty than commercial businesses. Lucy Barton spoke in favor of the ordinance noting she had retired to Kenai because of the beauty. Pete Hanson spoke in favor of the ordinance noting the many people in the neighborhood that walked their dogs around the property; also noted the property provided a great space for wildlife. Rex spoke in favor of the ordinance noting it was near school zones and suggested the area becoming commercial would negatively impact the area by adding traffic in school zones. Melissa Frates spoke in favor of the ordinance noting it was prudent to keep residential areas away from the commercial areas for aesthetics; wondered why the property wasn’t appraised as commercial; appreciated that it was zoned conservation. Sue Rask pointed out the many vacant lots that were available for commercial property and asked that the beautiful property be retained. There being no one else wishing to be heard, public comment was closed. Clarification was provided that the purchase wouldn’t violate the fund balance policy. Administration was asked to evaluate the expenditure and how it would affect future capital expenditures. It was noted that consideration had to be given to ensure the best expenditure of money; how to best manage the funds, and the need to be fair and equitable utilizing public money. Page 176 of 276 City of Kenai Council Meeting Page 4 of 10 July 5, 2017 Administration clarified that the property appraised with conservation zoning lowered the value of the property but not significantly because of the Conditional Use Permit process that allowed for some uses; also clarified that a rezone would be necessary to be considered commercial property but given past attempts to rezone to commercial had been overturned by referendum, it likely wouldn’t be feasible. Administration also pointed out that it was likely that the FAA wouldn’t have an issue with the property being sold as conservation or with the City taking interests above the airport’s. MOTION TO POSTPONE: Council Member Glendening MOVED to postpone to August 2 for a third public hearing and to be reviewed by the Airport Commission and Council Member Navarre SECONDED the motion and requested UNANIMOUS CONSENT. VOTE: There being no objection; SO ORDERED. [Clerk’s Note: Council Member Glendening left the meeting at 8:45 pm.] 2. Ordinance No. 2969-2017 – Amending Kenai Municipal Code Title 24 – Municipal Cemetery, to Update Procedures for Development of Cemetery Regulations and Opening and Closing of Graves, and to Provide Regulations in the Cemetery Regulations Appendix for Columbarium Niches, Marker or Headstone Deposits, and Other Housekeeping Changes. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2969-2017 and the motion was SECONDED by Council Member Knackstedt. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. MOTION TO AMEND : Council Member Knackstedt MOVED to amend the last sentence of Section 3 to read, “Opening and closing of graves shall be conducted by an approved licensed and insured contractor only,” and the motion was SECONDED by Council Member Navarre. It was suggested the addition of an approval process may complicate the issue. MOTION TO POSTPONE: Council Member Navarre MOVED to postpone to the August 2 meeting for input from legal and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Molloy. VOTE ON POSTPONEMENT: There being no objection; SO ORDERED. Page 177 of 276 City of Kenai Council Meeting Page 5 of 10 July 5, 2017 3. Ordinance No. 2970-2017 – Increasing Fiscal Year 2017, General Fund, Airport Fund, Water & Sewer Fund, Personal Use Fishery Fund, and Congregate Housing Fund Estimated Revenues And Appropriations For The Transfer Of Funds To Establish The New Employee Health Care Internal Service Fund Which Shall Be Utilized For Administering Employee Health Care Beginning In Fiscal Year 2018, July 1, 2017. MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 2970-2017 and the motion was SECONDED by Council Member Molloy. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. The Finance Director was thanked for his work and it was recognized that the fund would provide a long term benefit to the employees. Administration clarified that the establishment of the fund was retroactive to FY17. VOTE: YEA: Knackstedt, Gabriel, Pettey, Navarre, Molloy, Boyle NAY: MOTION PASSED UNANIMOUSLY. 4. Resolution No. 2017-42 – Authorizing Extension of a Professional Services Agreement With BDO USA, LLP for Completion of the City’s Fiscal Year 2017 Annual Financial Statement Audit. MOTION: Council Member Navarre MOVED to adopt Resolution No. 2017-42 and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Knackstedt. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There was no objection; SO ORDERED. 5. Resolution No. 2017-43 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to Cemetery Fees. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2017-43. The motion was SECONDED by Council Member Molloy who requested UNANIMOUS CONSENT. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Page 178 of 276 City of Kenai Council Meeting Page 6 of 10 July 5, 2017 Unanimous consent was objected due to its tie in to the associated ordinance which was postponed. MOTION: Council Member Molloy MOVED to postpone to the August 2 meeting and the motion was SECONDED by Council Member Boyle. UNANIMOUS CONSENT was requested. VOTE: There was no objection; SO ORDERED. 6. Resolution No. 2017-44 – Authorizing the Purchase of Real Property Described as Lot 4, Block 20, Original Townsite of Kenai, Located within Section 5, Township 5 North, Range 11 West, Seward Meridian, from Mew Trust, for the Public Purpose of Including the Property in the Bluff Erosion Restoration Project and Determining that Public Interest will not be Served by an Appraisal. MOTION: Council Member Navarre MOVED to adopt Resolution No. 2017-44 and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Molloy. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There was no objection; SO ORDERED. 7. Resolution No. 2017-45 – Consenting to a Renewal of Lease of Certain Airport Lands within the Airport Reserve between the City Of Kenai, Lessor, and Dewayne Benton, Lessee, on Property Described as Lot 3, Block 4, General Aviation Apron Number One. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2017-45. The motion was SECONDED by Council Member Navarre who requested UNANIMOUS CONSENT. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was pointed out that the lease rate was to be amended in three years per code. VOTE: There was no objection; SO ORDERED. 8. Resolution No. 2017-46 – Awarding an Agreement to Peninsula Pumping, Inc. for Providing and Servicing Portable Restrooms and Dumpsters on the North and South Kenai Beaches, Including Portable Restrooms at the City Dock, During the 2017 Personal Use Fishery. MOTION: Council Member Navarre MOVED to approve Resolution No. 2017-46 and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Molloy. Page 179 of 276 City of Kenai Council Meeting Page 7 of 10 July 5, 2017 Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Administration clarified that the price was very similar to the previous year. VOTE: There was no objection; SO ORDERED. 9. Resolution No. 2017-47 – Awarding an Agreement to Alaska Waste – Kenai Division, LLC for Providing and Servicing Road Accessible Dumpsters at the End of South Spruce Street, Kenai Little League Parking Lot and Kenai City Dock during the 2017 Personal Use Fishery. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2017-47 and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Navarre. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There was no objection; SO ORDERED. E. MINUTES 1.*Regular Meeting of June 21, 2017 Meeting minutes approved by the consent agenda. F. UNFINISHED BUSINESS – None. G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. Approved by the consent agenda. 2. *Action/Approval – Purchase Orders Exceeding $15,000. [Clerk’s Note: This item was removed from the Agenda during Approval of the Agenda.] 3. *Ordinance No. 2971-2017 – Amending Kenai Municipal Code Section 1.15.060 - Motions, to Provide for Deferring a Motion or Agenda Item Beyond the Next Meeting. Introduced by the consent agenda and public hearing set for August 2, 2017. 4. *Ordinance No. 2972-2017 – Appropriating Funds in the Airport Fund, Accepting a Grant from the Federal Aviation Administration and Appropriating Funds in the Airport Equipment Capital Project Fund for the Purchase of Snow Removal Equipment (SRE) – Loader with Attachments and a Multi-Purpose Broom. Page 180 of 276 City of Kenai Council Meeting Page 8 of 10 July 5, 2017 Introduced by the consent agenda and public hearing set for August 2, 2017. 5. Action/Approval – Special Use Permit for Jennifer Ellis for Conducting Outdoor Zumba Classes at the Softball Green Strip. MOTION: Council Member Molloy MOVED to approve a Special Use Permit for Jennifer Ellis for Conducting Outdoor Zumba Classes at the Softball Green Strip and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Knackstedt. It was clarified a Special Use Permit was required when a business was using City property and collecting fees. The airport manager had no objection to the use of the property. VOTE: There being no objection; SO ORDERED. 6. Action/Approval – Authorization to Extend a Facility Management Services Agreement at the Kenai Recreational Center Facility. MOTION: Council Member Navarre MOVED to Authorize the extension of a Facility Management Services Agreement at the Kenai Recreational Center Facility and requested UNANIMOUS CONSENT. The motion was SECONDED by Council Member Knackstedt. VOTE: There being no objection; SO ORDERED. H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – No report; Next meeting July 13. 2. Airport Commission – No report; next meeting July 13. 3. Harbor Commission – No report; Next meeting July 10. 4. Parks and Recreation Commission – No report; next meeting August 3. 5. Planning and Zoning Commission – It was reported that the Commission approved two Conditional Use Permits; next meeting June 28. 6. Beautification Committee – It was reported that the opening of the Pathway of Poetry was a well attended event; next meeting September 12. 7. Mini-Grant Steering Committee – No report. I. REPORT OF THE MAYOR Mayor Gabriel reported on the following: Page 181 of 276 City of Kenai Council Meeting Page 9 of 10 July 5, 2017 • Attended the funeral mass and celebration of life for former City Manager Rick Koch; Governor also attended; • Participated in the Fourth of July parade; was glad to see the restored fire truck also in the parade; • Congratulated Allie Ostrander on her Mount Marathon run. J. ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: • Administration reviewed Mr. Normandy’s request for handicapped access to the dipnet fishery; reported there was ample opportunity to access the fishery with a 4-wheeler everywhere except where Mr. Normandy referenced; • Attended the Henu Community Wellness Court grand opening; reported it was an opportunity for a member of the community to enter an alternative program for drug or alcohol abuse. • Met with AIX Energy regarding an update on production; noted the difficult economic environment; • Met with the Alaska Missions Group with Mayor Gabriel and Vice Mayor Navarre noting the group volunteered for hands on labor; • Provided a reminder of a second meeting regarding the Bluff Erosion Project. 2. City Attorney – No Report. 3. City Clerk – No Report. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) Bob Peters noted the City looked great and thanked staff; noted attendance of the Fourth of July parade was largest ever; was hopeful the Bluff Erosion Project continued moving forward. 2. Council Comments Council Member Knackstedt thanked public for attending and commenting; noted Mayor Williams knew a great deal of history on the T-33 aircraft. Council Member Pettey thanked the Parks & Recreation Department staff; encouraged attendance at the Bluff Erosion Project meetings. Vice Mayor Navarre reported Mayor Porter’s mother had passed away. L. EXECUTIVE SESSION 1. Review and Discussion of Interview Questions, Interview Dates, and Applications Submitted for the City Clerk Position. [AS 44.62.310(C)(2)(3) a Subject that Tends to Prejudice the Reputation and Character of an Applicant and Matters which by Law, Municipal Charter, or Ordinance are Required to be Confidential.] Page 182 of 276 City of Kenai Council Meeting Page 10 of 10 July 5, 2017 MOTION: Council Member Molloy MOVED to convene in executive session to discuss interview questions, interview dates, and applications submitted for the City Clerk position, a subject that tends to prejudice the reputation and character of an applicant and matters which law, municipal charter, or ordinance are required to be confidential per AS 44.62.310(C)(2)(3) r and the motion was SECONDED by Council Member Boyle. VOTE: YEA: Gabriel, Knackstedt, Navarre, Pettey, Molloy, Boyle NAY: MOTION PASSED UNANIMOUSLY. Council reconvened in regular session and noted they continued their review of candidates, interview questions, and interview dates for the City Clerk position. Named Jamie Heinz and Arlon Jacob Taylor as candidates selected for interview on Friday August 11 beginning at noon subject to being revisited at the August 2 meeting if the candidates needed. Directed the City Manager’s office to notify applicants accordingly. Requested an Executive Session on August 2 for the review interview questions and interview dates if there was a conflict with the August 11 date M. PENDING ITEMS – None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 10:07 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of July 5, 2017. _____________________________ Jamie Heinz, CMC Acting City Clerk Page 183 of 276 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: City Clerk CITY OF KENAI ORDINANCE NO. 2969-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE TITLE 24 – MUNICIPAL CEMETERY, TO UPDATE PROCEDURES FOR DEVELOPMENT OF CEMETERY REGULATIONS AND OPENING AND CLOSING OF GRAVES, AND TO PROVIDE REGULATIONS IN THE CEMETERY REGULATIONS APPENDIX FOR COLUMBARIUM NICHES, MARKER OR HEADSTONE DEPOSITS, AND OTHER HOUSEKEEPING CHANGES. WHEREAS, in 2016 the City commissioned the construction of a columbarium for the cemetery which was finished in September 2016; and, WHEREAS, it is appropriate to develop regulations prior to the columbarium’s use; and, WHEREAS, the Parks and Recreation Commission, Parks and Recreation Director, Finance Director and City Clerk reviewed KMC Title 24 – Municipal Cemetery; and the Cemetery Regulations Appendix of the Code and suggested amendments; and, WHEREAS, at their regular meeting of March 2, 2017, the Parks and Recreation Commission reviewed the policies and procedures herein and recommended approval. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance. Section 2. Amendment of Section 24.15.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 24.15.010 – Adoption of Regulations, is hereby amended as follows: The City Clerk, with the assistance of the Parks and Recreation Commission and Director, shall establish regulations for the purchase of plots and use of the cemetery. These regulations shall be effective after approval by the City Council. Amendments to the regulations shall be submitted by the City Clerk to the City Council for approval. Section 3. Amendment of Section 24.20.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 24.20.030 – Grave preparation, is hereby amended as follows: All openings, closings, plot preparations, interments, disinterments, marker placements and removals shall be overseen by the City and under the supervision of the Parks and Recreation Director or his designated representative. Opening and closing of graves shall be conducted by a licensed and insured contractor only. Section 4. Amendment of Appendices Cemetery Regulation of the Kenai Municipal Code: That Kenai Municipal Code, Cemetery Regulation Section 1: Plots, is hereby amended as follows: Page 184 of 276 Ordinance No. 2969-2017 Page 2 of 4 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] a. Plots shall be platted in those areas of the cemetery where interments have not as yet taken place in five-foot (5′) by ten-foot (10′) plots, two-and-one-half-foot (2-1/2′) by five-foot (5′) plots for infants, and two feet (2′) by two feet (2′) by two feet (2′) for cremains. b. The City Clerk shall be in charge and have access to said plats for the purpose of assigning plots upon request, and have charge of burial records, files and maps which shall be stored by the City of Kenai. The City Clerk shall charge a fee for each plot, depending upon the size of the plot (adult or infant or cremains) and the season during which the opening and closing of the grave occurs. All fees shall be as set forth in the City’s schedule of fees adopted by the City Council. Payment in full for the plot is required at the time of purchase of the plot. Payment for the opening or closing of the grave is due prior to commencement of work. c. The purchase [A RESERVATION] of a burial plot, [SPACE] cremains plot, or columbarium niche in the Kenai Municipal Cemetery shall [CAN] be made through [ACQUIRED BY APPLYING TO] the City Clerk’s Office. The purchaser will be [AND BEING] assigned a [PLATTED] plot(s) or niche(s) [PLOTS] after having paid the appropriate fee. It is prohibited for the purchaser of said plot(s) or niche(s) to re-sell or re-assign [THE PLOTS] except to the [C]City. [CHARGES FOR RESERVATION IN ADVANCE WILL BE AT MAXIMUM COST. FUNERAL DIRECTOR WILL TAKE THE FAMILY TO THE CEMETERY FOR SITE SELECTION. THE FAMILY WILL PAY CLERK UNLESS THE DIRECTOR IS PAID IN ADVANCE.] All payments for burial plots, cremains plots, or columbarium niches shall be made directly to the City of Kenai. The fees for such purchase shall be established and maintained in the City Clerk’s Schedule of Rates, Charges, and Fees. Section 5. Amendment of Appendices Cemetery Regulation of the Kenai Municipal Code: That Kenai Municipal Code, Cemetery Regulation Section 2: Interment and Disinterment, is hereby amended as follows: Section 2: Interment and Disinterment or Niche Opening and Closing a. The City Clerk shall be provided with the appropriate State burial and transit permits before interment or inurnment will be permitted. The burial plots can be used for no other purpose than interment and cremains plots or columbarium niches can be used for no other purpose but inurnment. b. Interment or disinterment shall be made in compliance with all State and City laws and regulations. c. Prior to interment or inurnment a marker or headstone deposit is required. Such deposit shall be established and maintained in the City’s Schedule of Rates, Charges, and Fees, and must be paid to the City of Kenai. Deposit refunds will be issued after proper installation of marker or headstone. If after eighteen (18) months (plots) and six (6) months (columbarium’s) a permanent marker or headstone has not been installed, the City shall install a marker or flat headstone utilizing the deposit as payment. d[C]. Markers and headstones for cemetery plots may be set in a concrete base and installed at the head of the grave, centered and inside the plot area. The Parks and Recreation Director must be notified prior to any plot preparation, construction, or placement of headstone or marker. Page 185 of 276 Ordinance No. 2969-2017 Page 3 of 4 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] If religious practices make the conformance of this requirement impossible, the old section of the cemetery may be utilized. This decision will be at the discretion of the Parks and Recreation Director[SUPERVISOR] or designee. e[D]. All niche openings and closings shall be overseen by the Parks and Recreation Department. A niche may be opened only at the request of the niche owner as listed in the cemetery records or as determined by the City Clerk. The initial opening and closing (inurnment) of the niche is included in the original cost of the niche. Additional openings and closings thereafter are charged at a rate pursuant to the City’s fee structure. Markers for columbarium niches shall follow a standard format, font, and size as determined by the City and shall include the first and last name of the deceased, year of birth, and year of death. f[E]. Only interment or inurnment of human remains is [ARE] permitted [TO BE BURIED] in the Kenai Municipal Cemetery. g[F]. No more than one (1) grave marker per plot shall be allowed. h. One (1) casket and up to two (2) cremains may be buried in a standard or infant plot. Up to three (3) cremains may be buried in a standard or infant plot. Only one (1) cremain may be buried in a cremain plot. Up to two (2) cremains may be inurned in a standard niche. Section 6. Amendment of Appendices Cemetery Regulation of the Kenai Municipal Code: That Kenai Municipal Code, Cemetery Regulation Section 4: General, is hereby amended as follows: a. The City of Kenai shall not be liable for any order received verbally or for any mistake occurring from the want of precise and proper instructions as to the particular space, size or location in a tract where interment is desired. b. No person shall enter the Kenai Municipal Cemetery except through the established access routes. The vehicle gate will be open daily from 6:00 a.m. to 10:00 p.m., from May 1 to September 30 (summer months) and will remain locked from October 1 to April 30 (winter months). The cemetery is open year-round for pedestrian traffic. The Kenai Police Department or the Kenai Parks and Recreation Department may be contacted for emergency access during closed hours. c. No burials shall be within the City limits except on homesteads owned by or resided on by the deceased. Such homesteads must be five (5) acres or larger. Private cemeteries within the City limits on the date of passage of Ordinance 1108-85 may continue in use but are limited to their platted size. A burial permit is[WILL] still [BE] required to be submitted to [FROM] the City Clerk if the burial is to be on a homestead or private cemetery within the City limits. d. Bicycles, skateboards, roller blades, roller skates, motor bikes, three (3) or four (4) wheelers are not allowed on the cemetery grounds. e. No child under the age of twelve (12), unaccompanied by a guardian or parent or other adult, shall be allowed on the cemetery grounds. f. Food, beer or other intoxicating liquors are strictly prohibited within the confines of the cemetery. Section 7. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such Page 186 of 276 Ordinance No. 2969-2017 Page 4 of 4 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 8. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of July, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, Acting City Clerk Introduced: June 21, 2017 Enacted: July 5, 2017 Effective: August 4, 2017 Page 187 of 276 1t'f ff~ «1/th a Po.6'~ 6'tf «1/th a fat~ 11 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager 17 c::::> · Robert J . Frates, Parks & Recreation Director Jamie Heinz, Deputy City Clerk June 16, 2017 Ordinance No. 2969-2017 Purpose of this correspondence is to inform Council that certain sections of the Kena i Municipal Code (KMC) Title 24 -Municipal Cemetery, including the Cemetery Regulations Appendix of the Code, require updating. The City Clerk's office, along with assistance from the Finance Director and Parks & Recreation Director reviewed current procedures and regulations. The Parks & Recreation commission, at their regular meeting of March 2, 2017, further rev iewed the current policies and procedures and recommended several amendments be adopted. The most notable changes recommended are the requirement of marker or headstone deposits, establishing procedures for use of the Columbarium and other light housekeeping changes. Your consideration to this matter is appreciated. Page 188 of 276 'Vtflate «1/t~ a Paif~ Ct'tj «1/t~ a ratw<-e" 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax : (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Scott M. Bloom, City Attorney <;:> July 25 , 2017 Amendment to Ordinance No. 2969-2017 Amending KMC Title 24, Municipal Cemetery At the July 5 , 2017 Council Meeting there were questions regarding Section 3 of Ordinance No . 2969-2017, specifically in relation to what type of licensed and insured contractor could open and close graves . The proposed amendment shown in bold below specifically restricts the type of contractor or business to one who is licensed by the State in Mortuary Science. Section 3. Amendment of Section 24.20.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 24.20.030 -Grave preparation , is hereby amended as follows : All openings , closing§., plot preparation.§., interments, disinterments , marker placement.§. and removals shall be overseen by the City and under the supervision of the Parks and Recreation Director or their[HIS] designated representative . Opening and closing of graves shall be conducted by a contractor or business licensed and insured in the State of Alaska as an embalmer. funeral director or mortuary establishment. contractor only. Page 189 of 276 ____________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: City Clerk CITY OF KENAI RESOLUTION NO. 2017-43 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO INCORPORATE CHANGES TO CEMETERY FEES. WHEREAS, in 2016 the City commissioned the construction of a columbarium for the cemetery which was finished in September 2016; and, WHEREAS, it is appropriate for inclusion of fees for columbarium niches in the Comprehensive Schedule of Rates, Charges, and Fees; and, WHEREAS, a market study conducted by staff on fees for columbarium niches and cemetery plots indicated the City’s fees were significantly under market; and WHEREAS, at their regular meeting of March 2, 2017, the Parks and Recreation Commission reviewed the suggested fee increases and recommended approval. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. The Cemetery section of the City’s Comprehensive Schedule of Rates, Charges and Fees be amended as follows: CEMETERY FEES (All Cemetery Fees are Exempt from Sales Tax) APX - 1 Title 24 - Cemetery Regulations Section 1: b. Standard Plot [$250.00] $1,000.00 Section 1: b. Veteran Plot $750.00 Section 1: b. Infant Plot $150.00 Section 1: b. Cremains [$100.00] $300.00 Section 1: c. Columbarium Niche (up to two standard urns) $1,000.00 Columbarium Niche - opening and/or closing fee for reasons other than inurnment. $100.00 Section 2: c. Marker/Headstone Deposit (applies to Cemetery Plots and Columbarium Niches) $400.00 [SECTION 1: B. SUMMER GRAVE OPENING AND CLOSING - STANDARD PLOT $500.00] [SECTION 1: B. SUMMER GRAVE OPENING AND CLOSING - INFANT PLOT $250.00] Page 190 of 276 Resolution No. 2017-43 Page 2 of 2 ____________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] [SECTION 1: B. SUMMER GRAVE OPENING AND CLOSING - CREMAINS $100.00] [SECTION 1: B. WINTER GRAVE OPENING AND CLOSING - STANDARD PLOT $600.00] [SECTION 1: B. WINTER GRAVE OPENING AND CLOSING - INFANT PLOT $250.00] [SECTION 1: B. WINTER GRAVE OPENING AND CLOSING - CREMAINS $100.00] Cemetery Gazebo Marker Fees (includes first 30 letters, shipping @ $50.00, one proof @$30.00, extra letters @ $3.00 each.) $330.00 Section 2. That this resolution takes effect August 4, 2017 to coincide with Ordinance No. 2969-2017. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of July, 2017. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, Acting City Clerk Page 191 of 276 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: FROM: Jamie Heinz, Acting City Clerk DATE: June 30, 2017 SUBJECT: Resolution No. 2017-43 – Cemetery Fee Changes As previously referenced in the memo attached to Ordinance No. 2969-2017, the Finance Director, Parks & Recreation Director, and City Clerk reviewed current procedures and regulations for the Cemetery. As a part of the review, they completed a market study of all fees for the cemetery and it was discovered that the City’s fees were significantly under market rates. The information was provided to the Parks & Recreation Commission and, at their meeting of March 2, 2017, recommended several amendments and fee increases. The Clerk’s Office has prepared the amendments to the fee schedule, as recommended by the Parks & Recreation Commission, for your consideration and adoption, together with the enactment of Ordinance No. 2969-2017. Your consideration is appreciated Page 192 of 276 MARKET COMPARISON Standard Plot Infant Plot Cremains Columbarium Niche Wasilla $1,000 (includes one small flat lot marker) $1,000 $1,000 $1,000 (Includes 1 niche inscription; additional fees for each additional inscription) $100 -Opening/Closing niche Homer $1,000 $200 $200 N/A Soldotna $1,000-Upright headstone area $750 -Flat headstone area (Headstone fees sepa rate) $500 Marker deposit (refundable upon purchase and installation of permanent marker within 24 months after internment. Fee waived with proof of purchase/order of marker) $0 $400 $1,200 (Includes 1 niche inscription) $300 -Second urn $100 -Opening/Clo sing niche Page 25of27 Memorial Park (Anchorage) $1,100 (May-O ct) $1,500 (Nov-Apr) $625 (May-Oct) $850 (Nov-Apr) $500 (May-Oct) $875 (1 Urn) $1,750 (Up to 3 Urns) $100 -Opening/Closing niche Kenai $250 $150 $100 N/A Kenai Proposed Fee $1,000 $750 (Veterans) $400 -Marker deposit (required prior to interment or inurnment and re funded after proper i nstallation of a headstone. If after 18 months a permanent headstone has not been installed, City w ill utilize the deposit as payme nt and install a flat headsto ne) No change $300 $1,000 (Up to 2 standard urns) $400 -Marker deposit (required prior to inurnment and refunded after proper installation of a marker. If after 6 months a permanent marker has not been insta ll ed, City will utilize the deposit as payment and install a marker). $100 -Opening/Closing fee for reasons other than inurnment Page 193 of 276 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: FROM: Jamie Heinz, Acting City Clerk DATE: July 27, 2017 SUBJECT: Resolution No. 2017-43 – Changes to Cemetery Fees At the July 5, 2017 Council Meeting, Ordinance No. 2969-2017, the ordinance that Resolution No. 2017-43 is associated with, was postponed to the August 2, 2017 meeting, and subsequently so was Resolution No. 2017-43. If Ordinance No. 2969-2017 is adopted at the August 2, 2017 meeting, Section 2 of Resolution No. 2017-43 will need to be amended to reflect the effective date of Ordinance No. 2969-2017. Recommended ammendment: Amend section 2 of the Resolution to reflect that the Resolution becomes effective on September 1, 2017 to coincide with Ordinance No. 2969-2017. Page 194 of 276 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: AUGUST 2, 2017 VENDOR DESCRIPTION PERS PERS HOMER ELECTRIC ELECTRIC USAGE INVESTMENTS VENDOR DESCRIPTION PIPER JAFFRAY CERTIFICATE OF DEPOSIT DEPARTMENT VARIOUS VARIOUS MATURITY DATE 7/14/2022 ACCOUNT AMOUNT LIABILITY 96,797.30 UTILITIES 109,582 .98 AMOUNT Effect.Int. 245 ,000 .00 2.3 % Page 195 of 276 PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: AUGUST 2, 2017 VENDOR DESCRIPTION DEPT. RUNWAY WEATHER SENSOR VAISALA INC . SYSTEM UPGRADE AIRPORT ALASKA GARDEN & PET SUPPLY UREA -20 TONS AIRPORT INCREASE OF EXISTING PURCHASE ORDER VENDOR DESCRIPTION P.O.# -DEPT. ACCOUNT AMOUNT MACHINERY & EQUIPMENT 19,654.00 OPERATING SUPPLIES 16,780.00 REASON AMOUNT TOTAL PO AMT Page 196 of 276 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2973-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A GRANT FROM THE STATE OF ALASKA FOR THE PURCHASE OF LIBRARY BOOKS . WHEREAS , the City of Kenai received a grant from the State of Alaska, Department of Education & Early Development for the purchase of library books; and, WHEREAS, it is in the best interest of the City of Kenai to appropriate these grant funds for the purpose intended . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. Form: That this is a non-code ordinance. Section 2. That the City Manager is authorized to accept a grant from the State of Alaska , Department of Education and Early Development in the amount of$ 7,000 for the purchase of library books and to execute grant agreements and to expend the grant funds to fulfill the purpose and intent of this ordinance . Section 3. That estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Library -State Grants $7 ,000 Increase Appropriations: . Library -Books $7,000 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction , such judgment shall be confined in its operation to the part, provision , or application directly involved in all controversy in which this judgment shall have been rendered , and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances . The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part , provision , or application . Section 4. Effective Date : That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. (Emergency ordinances and ordinance making , repealing , transferring , or otherwise changing appropriations, shall go into effect immediately upon passage unless they specify a later time : "That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption ") New T ext Und erl ined ; [DE LETE D TEXT BRACKET ED ] Page 197 of 276 Ordinance No. 2973 -2017 Page 2 of 2 ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 161h day of August, 2017. ATTEST: Jamie Heinz , Acting City Clerk Approved by Finance ~ BRIAN GABRIEL SR., MAYOR Introduced : August 2, 2017 Enacted: August 16, 2017 Effective : August 16 , 2017 New Text Underlined; [DELETED TEXT BRACKETED] Page 198 of 276 'Vtff~ «1/t~ a Pacf~ Ct'tf «11't~ a rat~ 11 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Te lephone : (907 ) 283 -7535 I Fax : (907) 283 -3 014 www.kenai.city MEMORANDUM TO : THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager? o . Mary Jo Joiner ..... ;A. J J 20 July 2017 Annual State Grant The library has been awarded the annual public library assistance grant by the Alaska State Library. As per the grant award , the amount of $7 ,000 is to be used for the purchase of books and should be deposited in account 001-440-4666 . The library d irector completes an application each year in order to rece ive these funds . Certain mi nimum standards must be met in order to receive this grant. These include reporting requirements on expenditures and collectio n statistics , number of hou rs that the library is open to the public, minimum educational requirements for the Library Director and continuing education requirements Page 199 of 276 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2974-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, ACCEPTING AND APPROPRIATING A GRANT FROM THE UNITED STATES DEPARTMENT OF TRANSPORTATION PASSED THROUGH THE STATE OF ALASKA DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES FOR THE REDUCTION OF FATALITIES AND INJURIES ON ROADWAYS. WHEREAS, the Kenai Police Department joins with other law enforcement agencies statewide to support Alaska Highway Safety Office (AHSO) traffic safety programs to reduce fatalities and injuries on roadways; and, WHEREAS, AHSO traffic-related overtime funds require no local match and allow the department to show a strong traffic presence within the City of Kenai; and, WHEREAS, actual AHSO overtime expenditures for traffic safety patrols totaled $2 ,615 .67 from 5-15-17 to 6-4-17; and, WHEREAS , the Police Department is requesting appropriation of the grant in the amount of $2 ,615.67 to the department's overtime account. NOW , THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form : That this is a non-code ordinance. Section 2. That the City Manager is authorized to accept grant funding from the Alaska Highway Safety Office in the amount of $2,615.67 for expenditures related to police traffic overtime. Section 3. follows: That fiscal year 2017 estimated revenues and appropriations be increased as General Fund Increase Estimated Revenues : Federal Grants -Police $2,615.67 Increase Appropriations: Police -Overtime $2 ,615.67 Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision , or application directly involved in all controversy in which this judgment shall have been rendered , and shall not affect or impair New Text Underlined ; [DELETED TEXT BRACKETED] Page 200 of 276 Ordinance No . 2974-2017 Page 2 of 2 the validity of the remainder of this title or application thereof to other persons or circumstances . The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision , or application. Section 5. Effective Date: "That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon enactment. The appropriation and transfer shall be made effective June 30 , 2017 and shall be considered an action of Fiscal Year 2017. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 161h day of August, 2017 . ATTEST:· Jamie Heinz, Acting City Cler~ Approved by Finance _J'i-,--_f:/l.---__ BRIAN GABRIEL SR., MAYOR Introduced: August 2, 2017 Enacted : August 16 , 2017 Effective : August 16 , 2017 New Text Underline d ; [DE LE TED TEXT BRACKETED ] Page 201 of 276 'Utt~ wit~ Q Pu~ ei? 1Uiti a FataH JI 210 FidalgoAve, Kenai.Alaska 99611-n94 Telephone: (907) 283-7535 I Fax: (907} 283-3014 www.kenai.city MEMORANDUM TO: THRO UGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ? o · David Ross -Police Chief ~~ 7-26-2017 Ordinance requesting appropriation -Police Overtime The Kenai Police Department continues to participate in traffic enforcement overtime patrols, reimbursed to the City of Kenai through a grant by the Alaska Highway Safety Office (AHSO}. These overtime patrols are not budgeted in the FY17 budget. Actual overtime costs for traffic enforcement around the Memorial Day holiday.that qualifies for AHSO reimbursement, was $2,615.67. AHSO -overtime reimbursements · are deposited into the general fund. The reimbursement should be appropriately attributed to the police overtime account for FY17. Page 202 of 276 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2975-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROPRIATING FUNDS IN THE AIRPORT FUND, ACCEPTING A GRANT FROM THE FEDERAL AVIATION ADMINISTRATION AND APPROPRIATING FUNDS IN THE AIRPORT CAPITAL PROJECT FUND FOR THE TERMINAL BUILDING REHABILITATION PROJECT AND AWARDING A CONTRACT TO WINCE-CORTHELL-BRYSON CONSUL TING ENGINEERS FOR DESIGN SERVICES. WHEREAS, the Kenai Airport terminal building was constructed in 1968, expanded in 1983 and renovated in 1989 and 2001; and WHEREAS, in addition to deferred maintenance projects, such as the replacement of the building roof membrane and rehabilitation of the fire sprinkler system , near and midterm facility requirements were identified in the Phase 2 Master Plan Report for the terminal ; and, WHEREAS, the Airport is requesting funds for the environmental, design, and construction engineering services for the rehabilitation of the terminal building at the Kenai Municipal Airport; and , WHEREAS, Wince-Corthell-Bryson was the highest ranked consultant as a result of the architectural/engineering & construction management services for Kenai Municipal Airport Capital Improvement Projects Request for Proposals; and, WHEREAS, City Administration has reviewed the proposal from Wince-Corthell-Bryson and finds the scope of work to be accurate and the price of$ $440,212 to be fair and reasonable; and, WHEREAS, award to Wince-Corthell-Bryson would be in the best interest of the City; and, WHEREAS, the Federal Aviation Administration has provided their concurrence that the cost and scope is reasonable and relevant; and, WHEREAS , the design grant is FAA eligible and grant funds are available and the City has been awarded a grant totaling $ 521,007 comprised of 93. 75% FAA $ 488,444 and requiring a 6 .25% local share of$ 32,563; and , NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a non-code ordinance. Section 2. That the City Manager is authorized to accept a grant from the Federal Aviation Administration in the amount of$ 488,444 and to expend the funds in accordance with the grant provisions. New Text Underlined; [DELETED TEXT BRACKETED] Page 203 of 276 Ordinan ce No . 2975-2017 Page 2 of 2 Section 3. That estimated revenues and appropriations be increased as follows: Airport Fund: Increase Estimated Revenues - Appropriation of Fund Balance Increase Appropriations - Transfer to Airport Capital Project Fund $ 32 .563 $ 32.563 Section 4. That the estimated revenues and appropriations be increased as follows : Airport Capital Project Fund: Increase Estimate Revenues - Federal FAA Grant Transfer from Airport Fund Increase Appropriations: Design and Engineering Administration $488,444 32 ,563 $521,007 $488,444 32 ,563 $521,007 Section 5 . That the City Manager is authorized to execute a professional services agreement to Wince-Corthell-Bryson at a total cost $440,212. Section 6 . Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgement shall be confined in its operation to the part, provision , or application directly involved in all controversy in which this judgment shall have been rendered , and shall not affect or impair the validity of the remainder of this title or application thereof to other perso n o r c ircumstances. The City Council hereby declares that it would have enacted the remainder of this ord inan ce even without such part, provision, or application . Section 7. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of August, 2 017 . ATTEST: Jamie Heinz, A cting City Clerk Approved by Finance 1 ~ BRIAN GABRIEL SR., MAYOR Introduc ed : August 2, 20 17 Ena cted : August 16 2017 Effective : August 16 , 2017 New Text Un derlined ; [D ELETE D TEXT BRACKETED] Page 204 of 276 'Utt~ «1lti a Pa.r~ e~ «11'ti a Fat~ " 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai.city MEMORANDU M TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City~o~nc· Paul Ostrander, City Manager ~ Mary L. Bondurant -Airport Manag July 26, 2017 Ordinance 2975-2017 -Airport Terminal Rehabilitation Project The FY17 Airport Capital Improvement Plan (ACIP) identified a terminal rehabilitation project and the FAA has given notice to move forward with the grant process. The airport terminal building is in need of a new roof and fire sprinkler system in addition to mechanical and electrical upgrades. The master plan process also identified interior/exterior building upgrades, interior flooring , lighting upgrades, and relocation of the airport administration offices, baggage makeup expansion and structural building code upgrades. The planning and design grant will be in phases; the first phase will consist of determining the facility requirements and a phased development plan; phase two will consist of the design and bid process. Construction is anticipated to be in 2018. Wince-Corthell-Bryson submitted a scope of work and proposal that the City and the FAA agree is reasonable. I recommend approval of Ordinance 2975-2017 to support the rehabilitation of the airport terminal building . Please contact me if you have any questions . Page 205 of 276 KENAI MUNICIPAL AIRPORT PASSENGER TERMINAL IMPROVEMENTS 2017-2018 Scope of Work -June 27, 2017 Scope of Work Outline: The consultant will work with the City to develop a scope of work to address the near and midterm terminal facility requirements identified in the Phase Two Master Plan Report giving consideration to potential long term requirements through the twenty year planning period. The scope of work will define the planning and design services required to rehabilitate, upgrade and expand the passenger terminal taking into consideration but not limited to the following criteria: 1. Current airport master plan determinations 2. Stakeholder involvement 3. Update near and midterm facility requirements 4. FAA environmental review 5. Project phasing 6. Project design 7. City and FAA reviews 8. Financial considerations 9. FAA project programming 10 . Project Implementation 11. Construction Administration Environmental Reviews: The 2013 Environmental CATEX is no longer considered valid, by FAA, due to the lapse of time since its completion, as well as the new requirements contained in FAA Order 1050-I F, Environmental Impacts-Policies and Procedures. A new documented CATEX will be required for this project and wi11 be prepared and submitted to FAA for a review process concurrent with the phase one design. The consultant will assist the City in preparation of the CATEX documents. Planning and Design: Under a planning and design grant the project will be broken down into planning and design phases with the first phase provided a firm not to exceed fee and the second phase provided an estimated fee for grant purposes. The second phase will be negotiated prior to notice to proceed once the City has selected the improvements to be completed. Phase One: Based on the approved scope of work, fees for the first phase and a notice to proceed, the consultant will complete the first phase of the project determining the facility requirements and a phased development plan. Kenai Municipal Airport Passenger Terminal Improvements Page 1 Page 206 of 276 Facility requirements: At this time known, near and midterm, Passenger Terminal Facility requirements, based on the determinations found in Chapter 5 -Airport Facility Requirements, of the 2015 Master Plan Phase Two report, are as follows: • Deferred maintenance projects o Terminal building roof membrane replacement • Eval uate roof mechanical systems • Evaluate roof insulation system o Tenninal building fire sprinkler system rehabilitation o Interior/exterior building upgrades • Exterior siding system • Interior flooring, wall repairs and painting • Interior/exterior lighting upgrades • Baggage makeup area expansion for secure and cold storage and overhead door air dams . • Air carrier operations area refurbishment • New second story airport administration area for environmental separation as well as due to displacement by present and future air carrier space requirements • Mechanical/Electrical room expansion for improvements and building code upgrades • Structural building code upgrades • Water, sewer, electrical and telecommunications utility upgrades • Miscellaneous tenninal public amenities o Visual Information Systems o Wireless Computer service and portable kiosks • Tenninal parking garage for afrport manager's airport vehicle, air carrier tugs, and miscellaneous terminal building storage requirements, attached and/or detached. • Terminal pet release area. • A ir carrier equipment parking shelter i.e. deicing equipment, aircraft stairs, etc . The consultant will review, update and define the facility condition and requirements with the City and project stakeholders. At least two stakeholder involvement meetings will be held to review the facility requirements. The consultant will develop conceptual plans for the improvements and assemble m aterial and equipment infonnation necessary to formulate a narrative and conceptual cost estimates for presentation and inclusion in a design study report. The desig n study report and presentation will provide, in addition to the conceptual p lan s, a prioritized breakdown of the facility requirements, an updated code review, and conceptual order of magnitude cost estimate for each component of the facility requirements. The consultant will work wi th the City to develop a near and midterm improvement list for developing a phased improvement plan. The consultant will work with the City and FAA to determine grant el i gible facilities Specific tasks are listed as follows : I . Kickoff meeting with stakeholders 2 . Program development for near and midtenn facility requirements 3 . Update facility conditions inspection 4 . Stakeholder concept design meeting Kenai Municipal Airport Passenger Terminal Improvements Page 2 Page 207 of 276 5. Develop one. at most two, conceptual design drawings for near and midterm facility requirements 6. Update existing code reviews to the 2012 codes 7. Assist City with FAA programming of grant eligible items 8. Prepare design study report from al1 disciplines with order of magnitude cost 9. Stakeholder concept design review meeting Phased Development Plan: The consultant wiJI develop a phased plan addressing the near and midterm needs of the passenger terminal building while providing for the efficient utilization of available funding and potential Jong term expansion requirements of the overall terminal area. The conceptual plans, for the near term improvements will be updated to a schematic stage providing additional detail, material and finish schedules as well as mechanicaVelectrical equipment necessary to support the improvements . The design study report will be updated to provide narratives of the updated plans, materials and equipment as well as the conceptual cost estimate updated with the new information available. At least two stakeholder involvement meetings will be held to review the phased development plan and cost estimates. The consultant will ass ist the City with FAA review and negotiations of grant eligible items. Specific tasks are listed as follows: 1. Develop near term schematic drawings 2. Develop preliminary finish schedules and equipment requirements 3. Update code reviews 4 . Update design study report and cost estimates 5. Stakeholder schematic design review meeting Phase T wo Design and Bid Process: Based on the improvements selected by the City the consultant will establish a firm fee for design development and construction bid documents to be approved by the City and FAA prior to a separate notice to proceed. The consultant will follow the standard design process from the schematic phase, det ermined earlier, through the design development and contract documents for the phase one improvements. All design will be completed in accordance with current building codes and FAA advisory circulars . Specifications and contract forms will be prepared as required by FAA an d F ederal procurement regulations and policies . Design Development will progress the plans with the required detail to provide technical specifications, and construction cost estimates. Following review the contract documents will be completed for the bid phase of the project. Bid phase services will include preparation of the bid advertisement, attending a pre b id conference, the preparation of plan/specification clarifications and any necessary addendums. Kenai Municipal Airport Passenger Terminal Improvements Page 3 Page 208 of 276 The consultant will assist the City with the bid opening, bid evaluations and recommendations as to award. This phase would also include assisting the City through the FAA reviews, grant programming and application process. Specific tasks are listed as follows: I. Design Development: • Review approved schematic design and review comments • Prepare design development drawings to 65% stage • Prepare preliminary specifications and cost estimates • Update design study report • Stakeholder review meeting • Review comments and prepare final design development documents 95% • Prepare final design development specifications and cost estimates • Stakeholder review meeting 2 . Construction Documents: • Review approved design development documents and comments • Prepare final construction documents, specifications and cost estimate • Stakeholder review meeting • Address final review comments and prepare bid ready documents and estimate 3. Bid Phase • Assist City with bid documents and advertisement • Attend pre bid conference • Respond to bidder questions for addendums • Assist City with bid reviews and recommendation of award • Assist City with FAA Grant application Deliverables! All deliverables will be prepared and submitted in conformance with the City of Kenai Contract General Conditions The consultant shall prepare a planning and design study report beginning with the facility requirement study and update. The report will be updated with each subsequent phase. Plans will be prepared using up to date versions of AutoCAD with the deliverables plotted in 22 x 34 and 11 x 17 formats. Electronic files will be provided to the City. Technical Specifications will be prepared using standard architectural formats and the General Conditions prepared using the established FAA approved format currently used by the City on its airport projects. The City will be provided hard copy originals and the WORD files . The design study report, plans, specifications and cost estimates will be submitted for reviews by City, FAA and project stakeholders at the Schematic stage (35%), the Design Development stage (65%) and at the final Construction Bid Document stage (100%). After each review and approval the consultant will revise the documents as requested and proceed to the next stage of development. Kenai Municipal Airport Passenger Terminal Improvements Page4 Page 209 of 276 Construction Administration: The City will apply for a construction grant after bids are opened and a contractor is selected for the project. The consultant shall provide construction contract administration and inspection services to assure compliance with the plans and specifications. Typical tasks during this phase typica11y include the following tasks : Preconstruction meetings Submittal reviews Daily inspections and reports Review and responses to contractor RFI's and DCVR's Contractor payment application reviews Equipment commissioning and certifications Project and grant closeout reports Schedule: A tentative schedule, following a notice to proceed, for the above described work is provided as follows. Stake holder involvement meetings and review periods are included in each phase. Facility Requirements 8 weeks Phased Development Plan 4 weeks Phase One Design and Environmental CATEX 16 weeks Programming and FAA CJP Applications 4 weeks Bid Process, Grant Applications 6 weeks Construction 2018 Design Team: The planning and design team remains as presented in the April 2014 proposal for term architectural, engineering and construction management services for the Kenai Municipal Airport as listed below: Project Managers Architectural Engineering Civil/Structural Mechanical/Electrical Airport Planning Surveying Wince-Corthell-Bryson, Consulting Engineers Klauder and Company, Architects Wince-Corthell-Bryson, Consulting Engineers MBA Consulting Engineers Aries Consultants Whitford Surveying Kenai Municipal Airport Passenger Terminal Improvements Page 5 Page 210 of 276 Estimating Fees and Implementation: The project should be broken down into three phases for fee negotiations and separate notices to proceed. This process will provide the consultant and the City with a firm understanding of the work that will be required for each subsequent phase and at the same time provide the City with more flexibility in managing the phased planning and initial implementation of improvements selected to proceed . The recommended phases are as follows: First Grant FY 2017 1. Faci lity requirements planning and phased development plan 2. Design development and construction documents, environmental and bid process A detailed line item scope of services will be provided for each discipline to affix fees to. Line items will consist of, but not necessarily be limited to, the fo11owing major tasks. • Existing conditions observations and docwnentation • Planning and programming • Concept Designs • Design Study Report • Schematic design (35%) • Finish and Equipment schedules • Design Study Report update • Design development (65%) • Design Study Report update • Construction documents (100%) • Bid Phase Second Grant FY 2018 1. Construction and construction inspection and administration Kenai Municipal Airport Passenger Terminal Improvements Page 6 Page 211 of 276 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2976-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $15,371 IN THE AIRPORT FUND AND IN THE AIRPORT IMPROVEMENT CAPITAL PROJECT FUND FOR THE 2016 AIRPORT FENCING REHABILITATION PROJECT . WHEREAS, at the direction of the Federal Aviation Administration (FAA) this project has been renamed to the Airport Fencing Rehabilitation Project from the 2016 Security Camera Project; and, WHEREAS, Ordinance 2751-2014, enacted on May 7, 2014, appropriated $25,000 for a design/bid package preparation for this projects original scope of work ; and, WHEREAS, Ordinance 2810-2015, enacted on January 21 , 2015, appropriated an additional $6,500 due to administrative costs required for the completion of the design/bid package phase of the project; and, WHEREAS, Ordinance 2878-2016 , enacted on February 3 , 2016 , appropriated an additional $24,016 after City review of the new FAA regulations clarifying procurement by competitive proposals to be in the best interest of the City to change the project from a design/build (performance specifications) to design bid documents with sealed bids ; and , WHEREAS, on further FAA consultation and direction, it has been determined to modify the previously submitted project documents for the security cameras to reduce the number of cameras and to include modifications to upgrade the access control system to the existing automatic gates; and, WHEREAS , Wince-Corthell-Bryson submitted a proposal to provide additional engineering services in the amount of $15,371 which Administration has reviewed and found to be fair and reasonable; and WHEREAS, the Administration has received confirmation that the costs will be eligible for 93 . 75% FAA reimbursement upon completion of the grant application and award of a grant. NOW, THEREFORE , BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. Form : That this is a non-code ordinance . Section 2. That estimated revenues and appropriations be increased as follows : New Text Underlined ; [DELETED TEXT BRACKETED] Page 212 of 276 Ordinance No. 2976-2017 Page 2 of 2 Airport Special Revenue Fund Increase Estimated Revenues - Appropriation of Fund Balance Increase Appropriations - Transfer to Capital Projects Fund Airport Fencing Rehabilitation Project Increase Estimated Revenues Transfer from Airport Special Revenue Fund Increase Appropriations Engineering $15 ,371 $15,371 $15,371 $15,371 Section 3. That the City Manager is authorized to execute an amendment to Wince-Corthell- Bryson in the amount of $15 ,3 71 to complete this work. Section 4. Severability: That if any part of provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgement shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgement shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The C ity Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application . Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. (Emergency ordinances and ordinance making , repealing, transferring, or otherwise changing appropriations, shall go into effect immediately upon passage unless they specify a later time : "That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption "). ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of August, 2017 . ATTEST: Jamie Heinz, Acting City Clerk Approved by Finance ..1:L-- BRIAN GABRIEL SR., MAYOR Introduced: August 2, 2017 Enacted : August 16, 2017 Effective: August 16 , 2017 New Text Underlined; [DELETED TEXT BRACKETE D] Page 213 of 276 'Vttf ~ «1/ti a Pa.r~ e~ «1/ti a Fat~ JJ 210 Fidalgo Ave , Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai. city MEMORANDUM TO: Mayor Brian Gabriel and Kenai Cit THROUGH: FROM: DATE: SUBJECT: Ordinance 2976-2017 -Airport Fencing Rehabilitation Project The purpose of this memo is to appropriate an additional $15,371 for the FY17 Airport Fencing Rehabilitation Project. This project now only consists of upgrades to the automated gates and access control (card reader) system . The security cameras did not receive approval from the Office of the Secretary of Transportation (OST); however, the FAA is recommending pursuing the gate upgrades and taking advantage of any cost savings that Kenai can benefit from with any infrastructure installation that would make it easier for the City to benefit from with future security camera installation . Security cameras are only eligible now for the purposes of identifying people as they enter access points, not for observation of wide areas such as the airfield. The FAA has confirmed that the additional costs are grant eligible . I recommend approval of Ordinance 2976-2017 to support the fencing rehabilitation project. Please contact me if you have any questions. Page 214 of 276 Sponsored by: Council Member Glendening CITY OF KENAI ORDINANCE NO. 2977 • 2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE SECTIONS 14.2 0.151 -APPLICATION FOR CONDITIONAL USE PERMIT FOR SURFACE EXTRACTION OF NATURAL RESOURCES, 14.20.152 -REVIEW OF APPLICATION, 14.20.153 -PUBLIC HEARING, 14.20.154 -ISSUANCE OF PERMIT, 14.20.155 -OPERATION, 14.20.156 -YEARLY REVIEW, 14.20.157 -TERMINATION , 14.20.158 -AMENDMENT OR TRANSFER , TO ALLOW THE CITY PLANNER TO DETERMINE APPLICATION COMPLETENESS AND MAKING OTHER HOUSEKEEPING CHANGES . WHEREAS, Kenai Municipal Code Section 14.20.152 -Review of Appl ication, presently requires that a Conditional Use Permit application for Surface Extraction of Natural Resources be placed on the agenda of the Planning and Zoning Comm is sion to conduct a completeness review prior to scheduling it for a Public Hearing; and, WHEREAS, at the completeness review, the Planning and Zoning Commission can only review the application for completeness and can therefore only discuss the application and accompanying information ; and , WHEREAS, after the completeness review is completed by the Planning and Zoning Commission, pursuant to Kenai Municipal Code Section 14.20.153 -Pub lic Hearing, the application is then scheduled for the first regular meeting following the meeting at which the initial application review was made ; and, WHEREAS, as wi th other Land Use Permit Applications including , Conditional Use Permits, Variances, Encroachment Permits and Landscape Site Plans , it is the practice of the City Planner to determine application completeness and to request addition al information that may be needed prior to the application being deemed complete and scheduled for a Public Hearing before the Planning and Zoning Commission; and, WHEREAS , it is in the best interest of the City of Kenai and the Applicant to streamline the processing of Conditional Use Permits for Surface Ext raction of Natural Resources by allowing the City Planner to conduct the Conditional Use Permit application completeness review prior to the application being scheduled for a Public Hearing before the Plannin g and Zoning Commission; and, · WHEREAS, due to Conditional Use Permits being a Quasi-Judicial discretionary decision, the Planning and Zoning Commission can request that the applicant submit additional application materials for their review at their next regular meeting and then postpone their decision to review the materials at their next regular meeting ; and, WHEREAS, at the meeting of August 9, 2017 the Plan ning and Zoning Commission recommended th at the Council of the City of Kenai this Ordinance . Ne w Text Unde rlin e d ; !DELE TE D TEXT BRA C KETED] Page 215 of 276 Ordinance No. 2977 -2017 Page 2 of 8 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance . Section 2. Amendment of Section 14.20.151 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.20 .151 -Application for Conditional Use Permit for Surface Extraction of Natural Resources, is hereby amended as follows: 14.20.151 Application for [C]Conditional [U]Use [P]fermit for [S]§urface [E].~xtraction of [N]Natural [R]Resources. An application for a [C]Conditional [U]Use [PJEermit to engage in the surface extraction of natural resources shall be in writing on a form supplied by the City of Kenai and shall be filed with the City Planner [ADMINISTRATIVE OFFICIAL], along with the appropriate fee as set forth in the City's schedule of fees adopted by the City Council. All applications shall be accompanied by the following documents and information: (a) A site plan , drawn to scale, containing the following: (1) Graphic (and legal) description of the proposed area, including dimensions in feet and number of acres or square feet; (2) Existing topographical contours with not less than ten-foot (10') contour intervals; (3) Proposed finished topographical contours (when extraction is completed) with not less than ten-foot ( 1 O') contour intervals ; (4) Existing and proposed buildings and structures on the site; (5) Principal access points which will be used by trucks and equipment, including ingress and egress points and internal circulation, especially the haul road from the public road to the proposed site of the pit; (6) Indication of the existing landscape features, including cleared areas, wooded areas, streams , lakes , marsh areas , and so forth ; (7) Location and nature of other operations, if any, which are proposed to take place on the site. (b) A narrative statement containing the following information: ( 1) Soil surveys with reference to the average year-round water table throughout the entire acreage . Piezometers may be used to determine an average water depth; (2) Estimated amount of material to be removed from the site over the entire period of operation; (3) Estimated length of time to complete the operation, or, if the pit is to be operated on a continuing basis, a statement to that effect; New Text Und erlined; [DELETED TEXT BRACKETED] Page 216 of 276 O rdinance No . 2977 -2 01 7 Page 3 of 8 (4) Proposed hours of operation; (5) Method of fencing or barricading the petition area to prevent casual access ; (6) Amount and location of natural screening provided by trees and vegetation , if any, between the property lines and the proposed site of the pit; (7) Plans, if any, to construct artificial screening ; (8) Description of operations or processing which will take place on the site during and after the time the material is extracted ; (9) Plan or program for regarding and shaping the land for future use ; (10) Method of backfilling and /or replacing topsoil ; (11) Proposed future use of the land after resources are extracted, including a proposed development plan showing location of houses, parks, lakes, etc .; (12) Other information which may pertain to the particular site. (c) Proof that the appl icant has obtained or is eligible to obtain the necessary licenses required by state or federal agencies . (d) Proof that the appli cant is the owner of the subject property. Section 3. Amendment of Section 14.20 .152 of the Kenai Municipal Code : That Kenai Municipal Code , Section 14.20 .151 -Review of Application , is hereby amended as follows : 14.20.152 Review of [A]Application for Surface Extraction of Natural Resources .. The City Planner [ADMINISTRATIVE OFFICIAL SHALL PLACE THE APPLICATION FOR THE CONDITIONAL USE PERMIT ON THE AGENDA OF THE COMMISSION FOR THE FIRST MEETING OF THE COMMISSION FOR WHICH IT IS ELIGIBLE , BASED ON THE DATE OF FILING WITH THE SECRETARY AND THE APPLICABLE RULES OF THE COMMISSION AT THAT TIME. AT THAT MEETING, THE COMMISSION] shall review the applicatio n and accompanying information and [SHALL] determine if it meets the requirements of th is [C]Chapter. If the requirements have not been met , the City Planner [COMMISSION] shall spe ci fy the deficiencies there in and [SHALL] request that a supplemen t to th e application be filed . The City Planner [COMMISSION] may[, IN ITS DISCRETION ,] request additional information pertinent to the particular site to be supplied by the applicant. Such additional information shall not be requested unless it can be ob tained by the applicant at a reasonable cost. The issue of reasonable cost may be appealed by the applicant directly to the Board of Adjustment before further review of the application by the City Pla nner [PROCEEDINGS BY THE COMMISSION]. Section 4. Amendment of Section 14.2 0 .153 of the Kenai Municipal Code : That Kenai Municipal Code , Se ction 14.20 .153 -Public Hearing , is hereby amended as follows: 14.20.153-Public Hea ri ng for Surface Extraction of Natural Resources. New Text Underlined ; [DELETED TEXT BRACKETED] Page 217 of 276 Ordinance No. 2977 -2 017 Page 4 of 8 [THE COMMISSION SHALL HOLD A PUBLIC HEARING ON THE APPLICATION AT THE FIRST REGULAR MEETING FOLLOWING THE MEETING AT WHICH THEIR INITIAL REVIEW WAS MADE, IF NO ADDITIONAL INFORMATION IS REQUESTED, OR IF ADDITIONAL INFORMATION IS REQUESTED, AT THE FIRST MEETING FOLLOWING A DETERMINATION BY THE COMMISSION THAT THE SUPPLEMENT TO THE APPLICATION CONTAINS THE REQUESTED INFORMATION . THE PUBLIC HEARING AND NOTIFICATION PROCEDURE FOR THIS CONDITIONAL USE PERMIT SHALL BE ACCOMPLISHED IN ACCORDANCE WITH THE REQUIREMENTS OF THIS CHAPTER.] If the application is determined to meet the requirements of this Chapter by the City Planner. a public hearing on the application shall be scheduled in accordance with the requirements of Kenai Municipal Code Section 14.20.280. In addition to the application, a map showing the approximate location of the proposed surface extraction , and a statement as to the nature of the proposed extraction operation shall be provided to the Commission [INCLUDED]. Section 5. Amendment of Section 14.20.154 of the Kenai Municipal Code : That Kenai Municipal Code, Section 14.20.154 -Issuance of Permit, is hereby amended as follows: 14.20.154 -Issuance of [P]fermit for Surface Extraction of Natural Resources. (a) On the basis of the application with accompanying information, any supplemental information filed, and such information as may be presented at the public hearing provided for in this chapter, the Commission shall make a determination as to whether each of the following requirements has been met: (1) The application is in substantial compliance with the requirements of this chapter; (2) The boundaries of the proposed excavation at its greatest dimensions, including back slopes , are at least two hundred feet (200 ') from any road or public right-of-way and at least one hundred fifty feet (150 ') from other surrounding property lines , except that adjoining permitted surface extraction of natural resources sites are not required to maintain the above one hundred fifty feet (150 ') excavation between sites ; (3 ) The buffer strips between the excavation site and roadways and property lines contain sufficient natural screening to obscure the entire excavation from sight of roadways and inhabited areas . If there is not sufficient natural screening, the site plan must provide for artificial screening ; ( 4) The site plan provides that back slopes be a minimum of a 2: 1 slope, except for the contiguous working face; (5) The site plan does not provide for excavation below the water table except where a reasonable method of drainage is available at the particular site or where the proposed future development plan provides for a lake on the site of the excavation; (6) If the excavation is to be below the water table and the site is likely to endanger the public safety, the site plan shall provide for fencing of the work area ; (7) The proposed use of land after extraction is completed is feasible and realistic and is a use permitted in the zone in which the property is located ; New Text Un derline d ; [DELETED TEXT BRACKETED ] Page 218 of 276 Ordinance No. 2 9 77 -2017 Page 5 of 8 (8) The extraction does not destroy the land for the purposes for which it is zoned; (9) The need for the particular natural resource within the City of Kenai outweighs any detrimental effects the operation may have on surrounding property owners ; (10) The applicant is the owner of the subject property. (b) If the Commission determines that all requirements have been met, the Commission shall direct the City Planner [ADMINISTRATIVE OFFICIAL] to issue a [C]Conditional [U]Use (P]Permit to the applicant. The permit shall be issued for an indefinite period and shall be subject to the provisions of this chapter, and shall so state . (c) The permit may be expressly conditioned by the Commission upon the erection of artificial screening . If the permit is so conditioned, the Commission shall specify the type of screening to be erected . Such screening shall obscure the entire extraction operation from view from any public roadway or inhabited area and shall be compatible with the general character of the neighborhood. No extraction of resources can take place until the artificial screening provided for has been erected and approved by the Commission . (d) Appeals from decisions of the Commission under this section shall be made in accordance with the provisions of this chapter. Section 6. Amendment of Section 14.20 .155 of the Kenai Municipal Code : That Kenai Municipal Code , Section 14.20 .155-Operation , is hereby amended as follows: 14.20.155 Year Review [OPERATION]. The City Planner shall review the operations of the permit holder annually to determine whether such permit holder is in compliance with the provisions of this chapter. The City Planner shall compile a report based on their review and shall submit their report, along with the report of the permit holder as required by this Chapter. to the Commission. [DURING THE PERIOD OF CONDITIONAL USE PERMIT , THE PERMIT HOLDER SHALL COMPLY WITH THE FOLLOWING PROVISIONS : (A ) THE PIT SHALL BE OPERATED SUBSTANTIALLY IN ACCORDANCE WITH THE SITE PLAN AND STATEMENTS THAT ACCOMPANIED THE APPLICATION FOR THE CONDITIONAL USE PERMIT , AS SUCH MAY BE AMENDED FROM TIME TO TIME IN ACCORDANCE WITH THIS CHAPTER. (B ) THE PERMIT HOLDER SHALL SUBMIT A Y EARLY REPORT TO THE ADMINISTRATIVE OFFICIAL WITHIN THIRTY (30) DAY S FOLLOWING THE ANNIVERSARY OF THE ISSUANCE OF THE CONDITIONAL USE PERMIT. SUCH REPORT SHALL SHOW THE AREA WHICH HAS BEEN CLEARED DURING THE PREVIOUS YEAR , THE CURRENT WORKING AREA AND AN Y AREA WHICH HAS BEEN RECLAIMED OR PARTIALLY RECLAIMED , AND SHALL STATE THE QUANTITY OF MATERIAL WHICH WAS ACTUALLY REMOVED DURING THE PRECEDING WORK YEAR. THE REPORT SHALL ALSO CONTAIN PROJECTIONS OF THE SAME INFORMATION FOR THE NEXT WORK YEAR. New Text Underlined; [DELETED TEXT BRACKETED] Page 219 of 276 Ordinance No. 2977 -2 01 7 Page 6 of 8 (C) NO PART OF THE EXTRACTION OPERATION SHALL BE VISIBLE FROM PUBLIC ROADWAYS OR INHABITED AREAS .] Section 7. Amendment of Section 14.20.156 of the Kena i Mun ici pa l Code: That Kena i Municipal Code, Section 14.20 .156 -Yearly Review, is hereby amended as fo ll o ws : 14.20.156 Operation and Revocation [YEARLY REVIEW]. During the period of Conditional Use Permit, the permit holder shall comply with the following provisions : @l The pit shall be operated substantially in accordance with the site plan and statements tha t accompanied the application for the conditional use permit, as su c h may be amended from time to time in accordance with this chapter. .{!;?_} The permit holder shall submit a yearly report to the City Planner within thirty (30) days following the anniversary of the issuance of the Conditional Use Permit. Such report shall show the area which has been cleared during the previous year. t he current w orking area and any area which has been reclaimed or partially reclaimed . and shall state the quantity of material which was actually removed during the preceding work year. The report shall also contain projections of the same information for the next w ork year. {£) No part of the extraction operation shall be visible from publ ic roadways or inhabited areas. fQ} If the City Planner determ ines . based on their yearly re vie w or any other in ves ti gation undertaken by them , that the conduct of the operation is not in complianc e w it h the pro vis ions of this chapter. they may re voke the permit. They s hall not revo ke the permi t, however. unless and until the permit holder has been notified of t he vio la ti on and g iven a reasonable opportunity to correct it. In the event that a pi t is unused for a period of three (3) years . the City Planner may revoke the Conditional Use Perm it. ~ Appeals from decisions of the City Planner under this section s hall be made in acc orda nce w ith the provisi o ns of this chapter. [THE ADMINISTRATIVE OFFICIAL SHALL RE V IEW THE OPERATIONS OF THE PER MIT HOLDER ANNUALLY TO DETERMINE WHETHER SUCH PERMIT HOLDER IS IN COMPLIANCE WITH THE PROVISIONS OF THIS CHAPTER. HE SHALL COMPILE A REPORT BASED ON HIS RE V IEW AND SHALL SUBMIT HIS REPORT , ALONG W ITH THE REPORT OF THE PERMIT HOLDER AS REQUIRED BY THIS CH A PTER , TO THE COMMISSION .] Section 8. Amendment of Section 14.20.157 of the Kena i Munici pa l Code : That Kenai Municipal Code , Se ction 14.20 .157-Termination, is hereby amended as follo ws : 14.20.157 Amendment or transfer. @l No Conditional Use Permit issued hereunder shall be tra nsferred unti l th e prop os ed transferee has made app lica ti on for transfer in w riting fi led wit h the C ity Planner. w hich application shal l state tha t they intend to be bound by the plan and statements c ontained New Text Underlined; [DELETED TEXT BRACKETED] Page 220 of 276 Ordinance No. 2977 -20 17 Page 7 of 8 in the application of the permit holder or shall contain the amendments to the plan his proposed operation would mandate. The Commission shall approve the application for transfer and in so doing amend the site plan and statements if such amendments as are contained in the application for transfer would have been approved had they been contained in the original application. ,(Q} A permit holder may amend their site plan and statements by fi li ng an appl ication for amendment in writing with the City Planner. The Commission shall approve the application for amendment if the original application would have been approved had it contained the provisi ons of the application for amendment. [14.20 .157 TERMINATION. (A) IF THE ADMINISTRATIVE OFFICIAL DETERMINES, BASED ON HIS YEARLY RE VI EW OR ANY OTHER INVESTIGATION UNDERTAKEN BY HIM, THAT THE CONDUCT OF THE OPERATION IS NOT IN COMPLIANCE WITH THE PROVISIONS OF THIS CHAPTER , HE MAY REVOKE THE PERMIT. HE SHALL NOT REVOKE THE PERMIT, HOWEVER, UNLESS AND UNTIL THE PERMIT HOLDER HAS BEEN NOTIFIED OF THE VIOLATION AND GI V EN A REASONABLE OPPORTUNITY TO CORRECT IT. IN THE EV ENT THAT A PIT IS UNUSED FOR A PERIOD OF THREE (3) YEARS, THE ADMINISTRATIVE OFFICIAL MAY REVOKE THE CONDITIONAL USE PERMIT. (B) APPEALS FROM DECISIONS OF THE ADMINISTRATIVE OFFICIAL UNDER THIS SECTION SHALL BE MADE IN ACCORDANCE WITH THE PROV ISIONS OF THIS CHAPTER.] Section 9. Deletion of Section 14.20.158 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.20.158 -Amendment or Transfer, is hereby de leted as follows: [14.20.157 AMENDMENT OR TRANSFER . .(61 NO CONDITIONAL USE PERMIT ISSUED HEREUNDER SHALL BE TRANSFERRED UNTIL THE PROPOSED TRANSFEREE HAS MADE APPLICATION FOR TRANSFER IN WRITING FILED WITH THE ADMINISTRATI VE OFFICIAL . W HICH APPLICATION SHALL STATE THAT HE INTENDS TO BE BOUND BY THE PLAN AND STATEMENTS CONTAINED IN THE APPLICATION OF THE PERMIT HOLDER OR SHALL CONTAIN THE AMENDMENTS TO THE PLAN HIS PROPOSED OPERATION WOULD MANDATE. THE COMMISSION SHALL APPROVE THE APPLICATION FOR TRANSFER AND IN SO DOING AMEND THE SITE PLAN AND STATEMENTS IF SUCH AMENDMENTS AS ARE CONTAINED IN THE APPLICATION FOR TRANSFER W OULD HAV E BEEN APPROV ED HAD THEY BEEN CONTAINED IN THE ORIGINAL APPLICATION . .{fil A PERMIT HOLDER MAY AMEND HIS SITE PLAN AND STATE MENTS BY FILING AN APPLICATION FOR AMENDMENT IN WRITING WITH THE ADMINISTRATIV E OFFICIAL. THE COMMISSION SHALL APPROVE THE APPLICATION FOR AMENDMENT IF THE ORIGINAL APPLICATION WOULD HAVE BEEN APPROVED HAD IT CONTAINED THE PRO V ISIONS OF THE APPLICATION FOR AMENDMENT.] Section 10 . Severability: That if any part or provision of this ord inan ce or ap plication thereof to any person or ci rcumstances is adjudged in val id by any court of compet ent jurisdiction , such Ne w Text Un d e rline d ; [DELETED TEXT BRA CKETED] Page 221 of 276 Ordinance No. 2977 -2 017 Page 8 of 8 judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part , provision, or application. Section 11 . Effective Date : That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption . ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA , this 161h day of August, 2017 . ATTEST: Jamie Heinz, Acting City Clerk BRIAN GABRIEL SR, MAYOR Introduced: August 2, 2017 Enacted: August 16 , 2017 Effective : September 15, 2017 New Text Underlined ; !DELETED TEXT BRACKETED] Page 222 of 276 TO: THROUGH: FROM: DATE: SUBJECT: 'Vttf ~ «1/t~ a Pa.f~ Ct~ «1/t~ a Fu.t«fl-11 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city Mayor Brian Gabriel and Kenai City Council Council Member Glendening Matt Kelley, City Planner Jtl(_ July 26, 2017 Ordinance No. 2977-2017 The purpose of this communication is to provide information to the City Council regarding Ordinance No 2977-2017; which would amend Kenai Municipal Code Sections 14.20.151 - Application for Conditional Use Permit for Surface Extraction of Natural Resources, 14.20.152 - Review of Application , 14.20.153 -Public Hearing , 14.20 .154 -Issuance of Permit, 14.20.155 - Operation , 14.20.156 -Yearly Review, 14.20 .157 -Termination , 14.20.158 -Amendment or Transfer, to allow the City Planner to determine application completeness and make housekeeping changes. Pursuant to Kenai Municipal Code Section 14.20.152, a Conditional Use Permit Application for the Surface Extraction of Natural Resources requires the Planning and Zoning Commission to conduct a completeness review of the application and supplemental materials, prior to schedul ing it for a Public Hearing. In the past, when conducting a completeness review, the Planning and Zoning Commission is limited to reviewing only the application and supplemental materials and therefore would ha ve to wait to discuss the full project at the next meeting . Pursuant to Kenai Municipal Code Section 14.20.153 -Public Hearing the application is then scheduled for the first regular meeting following the meeting at which the initial application re view was made. As is done with other Land Use Permit Applications in c luding Conditional Use Permits , Variances , Encroachment Permits and Landscape Site Plans , it is the practice of the City Planner to determine appli cation completeness and to request additional information that may be needed prio r to the application being deemed complete and scheduled for a Public Hearing before the Planning and Zoning Commission . The proposed ordinance would streamline the processing of Conditional Use Permits for Surface Ex traction of Natura l Resources by requiring that the Ci ty Planner c onduct the application completeness review prior to the application being scheduled fo r a Public Hearing before the Planning and Zoning Commission . This would reduce the number of meetings needed for the consideration of a Conditional Use Permit for the Surface Extraction of Natural Resources from two to one. The proposed ordinance would not eliminate the ability of the Planning and Zoning Commission to ask for additional or re v ised appl ication mate rials from the applicant a nd postpone their decision until the ne xt meeting to allow the materials to be submitted and reviewed by the City Planner and the Commission. Thank you for your consi deration . Page 223 of 276 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2978-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, INCREASING CONGREGATE HOUSING FUND ESTIMATED REVENUES AND APPROPRIATIONS TO PROVIDE REPAIR AND MAINTENANCE FUNDS THAT WERE INADVERTENTLY OMITTED FROM THE FUNDS FY2018 BUDGET. WHEREAS , the adopted Repair and Maintenance account amount in the FY2018 Budget for the Congregate Housing Funds was $350 which mistakenly omitted $48 ,200 in needed funds; and, WHEREAS , Repair and Maintenance funds are utilized for the purchase of repair and maintenance services at the facility including but not limited to plumbing and electrical repairs , apartment move-outs and painting when needed, carpet cleaning or replacement, drapery replacement, seasonal maintenance, i.e. outside window and gutter cleaning, seasonal maintenance of sprinklers, maintenance of AEDS, monitoring fire alarms, and inspections ; and , WHEREAS, providing sufficient funds for maintenance of the facility is in the best interest of the residents of Vintage Pointe Manor and the City. NOW , THEREFORE , BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA , as follows: Section 1. Form: That this is a non-code ordinance . Section 2. That estimated revenues and appropriations be increased as follows : Congregate Housing Fund Increase Estimated Revenues - Appropriation of Retained Earnings Increase Appropriations: Repair & Maintenance $48 ,2 00 $48.200 Section 3. Severability: That if any part or pro vision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction , such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances . The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision , or application. Section 4. Effective Date : That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect upon adoption . New Text Underlined: [DE LE TED TEXT BRACKE TE D] Page 224 of 276 Ordinance No . 2978-2017 Page 2 of 2 ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA , this 161 h day of August, 2017. ATTEST: Jamie Heinz , Acting City Clerk Approved by Finance BRIAN GABRIEL SR., MAYOR Introduced : August 2, 2017 Enacted: August 16, 2017 Effective : August 16, 2017 New Text Underlined; !DELETED TEXT BRACKETED ] Page 225 of 276 'Vt tf~ tt1/t~ a PaJ't, Ct'tf tt11't~ a h.tu.r-e 11 210 Fidalgo Ave , Kenai , Alaska 99611-7794 Telephone: (907) 283-75351 Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM : DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Os t rander, City Manager '\?O- Rachael S. Craig July 26, 20 17 Appropriation of Vintage Pointe funds for Repair and Maintenance This memo is in support of appropriating funds for the repair and maintenance budget for Vintage Pointe Manor. During the preparation for the budget , I included items in my draft budget for repair and maintenance. However, the budget I submitted to finance did not include these amounts. Repa ir and maintenance funds in the amoun t of $48,550 are needed to operate and maintain the facility in FY21018. $350 was included in the adopted FY2018 budget necess itating the need for a supplemental appropriation in the amount of $48 ,200 for the remaining funds . The repair and maintenance services reflect repairs and maintenance above the on-site manger's capabilities when a vendor needs to be called to do major repa irs , i.e. plumbing and electrical repairs, apartment move-outs and painting when needed , carpet cleaning or replacement, drapery replacement , seasonal main te nance , i.e. outside window and gutter cleaning, seasonal maintenance of sprinklers, maintenance of AEDS , monitoring fire alarms, and inspections. Please support the ordinance to appropriate repair and maintenance funds for Vintage Pointe Manor's budget 2017-2018. Page 226 of 276 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / Fax: 907-283-3014 www.kenai.city MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: FROM: Jamie Heinz, Acting City Clerk DATE: July 27, 2017 SUBJECT: Harbor Commission Appointment ______________________________________________________________________ The Harbor Commission currently has a vacancy that needs to be filled. Clyde Crandall has submitted an application expressing interest in filling the vacancy. The term expires December 2018. Mayor Gabriel has requested this applicant be added to the meeting agenda for his nomination and consideration of Council’s confirmation. A committee/commission vacancy shall be filled by nomination of the Mayor and confirmation by the Council (KMC 1.90.010). Your consideration is appreciated. Page 227 of 276 KENAI AIRPORT COMMISSION July 13, 2017 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS CHAIR GLENDA FEEKEN, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Feeken called the meeting to order at 6:06 p.m. a. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Commissioners Present: Commissioners Absent: G. Feeken, J. Zirul, J. Bielefeld, C. Henry, K. Dodge, P. Minelga, D. Pitts Staff/Council Liaison Present: Airport Manager M. Bondurant, City Planner M. Kelley, Council Member H. Knackstedt A quorum was present. c. Agenda Approval The agenda was approved as presented. 2. PERSONS SCHEDULED TO BE HEARD – None. 3. UNSCHEDULED PUBLIC COMMENT – None. 4. APPROVAL OF MEETING SUMMARY a. June 8, 2017 MOTION: Commissioner Dodge MOVED to approve the meeting summary from June 8, 2017 with the addition of Councilman Glendening as having attended and Commissioner Bielefeld SECONDED the motion. There were no objections; SO ORDERED. 5. UNFINISHED BUSINESS a. Discussion/Recommendation – Master Plan Phase 3 Report Casey Madden, with Wince, Corthell & Bryson, gave an overview of the Master Plan. General Page 228 of 276 Airport Commission July 13, 2017 Page 2 of 3 discussion followed; all commission members are in support of the Phase 3 Report. MOTION: Commissioner Zirul MOVED to recommend that the Phase 3 Report go to City Council for approval and Commissioner Pitts SECONDED the motion. There were no objections; SO ORDERED. 6. NEW BUSINESS a. Discussion/Recommendation – Ordinance 2968-2017 Appropriating general fund balance funds into general fund land administration-lands fund for the purchase by the City of Kenai’s general fund of airport property outside the airport reserve constituting approximately 16.49 acres of real property described as S1/2 S1/2 SW1/4, section 33,T6N, R11W, Seward Meridian, commonly referred to as ‘Lawton Acres’ and deed restricting the future use of the property to parks and recreational uses to be retained by the City for a public purpose. Councilmember Kanckstedt gave a background report on what had been discussed at Council Meetings. It was suggested that Lawton Acres should be appraised as “highest and best use”, rezoned as Commercial, and what returns the most money to the Airport. It was also expressed that there was no reason to sell for the appraisal amount as the airport has no plans for the property right now. There was some disagreement with the assessed value and assumptions on the value. Appreciation for the field of flowers was indicated, but it was noted that the property has a great potential. MOTION: Commissioner Zirul MOVED to recommend that Lawton Acres not be sold to the City and Commisioner Minelga SECONDED the motion. There were no objections; SO ORDERED. MOTION: Commissioner Zirul MOVED that the Council recommend Planning and Zoning look at rezoning property for commercial use. Commissioner Henry SECONDED the motion. There were no objections; SO ORDERED. 7. REPORTS a. Airport Manager – reported on airport projects and military exercises. b. City Council Liaison – reported on various actions at last two Council meetings. 8. NEXT MEETING ATTENDANCE NOTIFICATION – August 10, 2017. Commissioner Pitts noted he may be unable to attend the meeting. 9. COMMISSIONER COMMENTS AND QUESTIONS Page 229 of 276 Airport Commission July 13, 2017 Page 3 of 3 Commissioners Minelga and Bielefeld noted that it was nice to see the runway numbers. 10. ADDITIONAL PUBLIC COMMENT Councilmember Pettey expressed her appreciation of the dedication to the ordinance on Lawton Acres and the work of the Airport Commission. Councilmember Glendening thanked members for the discussion on Lawton Acres and invited the Commission to the August 2, 2017 City Council Meeting. 11. INFORMATION ITEMS – None. 12. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:55 p.m. Meeting summary prepared and submitted by: _____________________________________ Tawni Eubank Administrative Assistant Page 230 of 276 KENAI HARBOR COMMISSION MEETING JULY 10, 2017 – 6:00 P.M. CITY HALL COUNCIL CHAMBERS CHAIR CHRISTINE HUTCHISON, PRESIDING MEETING SUMMARY 1. CALL TO ORDER & ROLL CALL Commission Chair Hutchison called the meeting to order at 6:09 p.m. Roll was confirmed as follows: Commissioners present: B. Peters, J. Desimone, C. Hutchison, N. DuPerron, G. Greenberg, Dunn, Commissioners Absent: None Staff/Council Liaison present: Acting City Clerk J. Heinz, City Planner M. Kelley, Council Member G. Pettey A quorum was present. 2. AGENDA APPROVAL MOTION: Commissioner Duperron MOVED to approve the agenda. Commissioner Greenberg SECONDED the motion. There were no objections; SO ORDERED. 3. ELECTION OF CHAIR AND VICE CHAIR MOTION: Commissioner Duperron MOVED to nominate Christine Hutchison as Chair; Commissioner Desimone SECONDED the motion. There were no objections; SO ORDERED. MOTION: Commissioner Hutchison MOVED to nominate Commisioner Duperron as Vice Chair; Commissioner Dunn SECONDED the motion. 4. APPROVAL OF MEETING SUMMARY a. May 8, 2017 MOTION: Commissioner Peters MOVED to approve the meeting summary of May 8, 2017 and Commissioner Duperron SECONDED the motion. There were no objections; SO ORDERED. Page 231 of 276 Harbor Commission Meeting May 8, 2017 Page 2 5. PERSONS SCHEDULED TO BE HEARD – None. 6. UNFINISHED BUSINESS – None. 7. NEW BUSINESS a. Discussion – Defining Roles & Responsibilities Interest was expressed in continuing the glazer’s process to define roles and responsibilities. Commissioners Hutchison and Duperron indicated they would take the lead in going forward. b. Discussion/Recommendation – Draft Ordinance amending Kenai Municipal Code Chapter 14.25 – Landscaping and Site Plans for all Retention Basins, Commercial, Industrial, and Multi-Family Development and Land Clearing in Certain Zones in the City and Making other Housekeeping Changes. City Planner Kelley provided an overview on current landscape site plan code and proposed changes in the draft ordinance. It was pointed out that landscaped property reduced runoff into the harbor and the commission could review from that point of view; more time was requested to review materials. MOTION: Commissioner Duperron MOVED to postpone to the August meeting and Commissioner Desimone SECONDED the motion. There were no objections; SO ORDERED. c. Discussion – “No Wake” signage for the mouth of the Kenai River. It was noted that in the past there had been “No Wake” signs on either side of the mouth of the Kenai River, but they had been removed and could potentially contribute to the deterioration of the base of the river and the riverbank. It was suggested that the signs be put back into place specifying no wake at high tide. The Public Works Director was asked to provide a history of the signs at the August meeting. 8. REPORTS a. Public Works Director – Absent; no report. b. Commission Chair – C. Hutchison noted she was looking forward to continuing to define roles and responsibilities utilizing the glazer’s process. c. City Council Liaison – G. Pettey noted the Personal Use Fishery had begun, the Dipnet Kenai App was available, and the Corps of Engineers report regarding the Bluff Erosion Project was available online. 9. NEXT MEETING ATTENDANCE NOTIFICATION – August 7, 2017 Page 232 of 276 Harbor Commission Meeting May 8, 2017 Page 3 10. COMMISSIONER COMMENTS/QUESTIONS All Commission members expressed sorrow at the passing of Commission Member Koch and also congratulated the Chair and Vice-Chair on their election. Commissioner Peters welcomed Commissioner Dunn to the Commission. Commissioner Greenberg noted PRL Logistics had built a harbor and was charging fees for launching and mooring; suggested inviting them to a meeting. Commissioner Desimone noted she was excited about the council having tasked the commission with providing a recommendation on the Landscape Siteplan Ordinance. The Commissioners participated in a moment of silence to remember Commissioner Koch and what he brought to the City of Kenai. 11. PERSONS NOT SCHEDULED TO BE HEARD Council Member Glendenning noted he appreciated the Harbor Commission’s enthusiasm. 12. INFORMATION – None. 13. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 6:56 p.m. Meeting summary prepared and submitted by: _____________________________________ Tawni Eubank, Administrative Assistant Page 233 of 276 JOINT KENAI PARKS & RECREATION COMMISSION AND BEAUTIFICATION COMMISSION JULY 11, 2017 KENAI CITY HALL COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city SPECIAL MEETING SUMMARY 1. CALL TO ORDER & ROLL CALL Chair Stephens called the meeting to order at 6:05 p.m. Roll was confirmed as follows: Commissioners present: C. Stephens, N. Widmayer, J. Halstead, T. Wisniewski, J. Hudson, T. Canady, R. Sierer, L. Gabriel, S. Peterson, B. Madrid Commissioners absent: J. Joanis Staff present: Parks & Rec Director B. Frates, City Planner Matt Kelley A quorum was present. 2. AGENDA APPROVAL MOTION: Commissioner Widmayer MOVED to approve the agenda; Commissioner Halstead SECONDED the motion. There were no objections; SO ORDERED. 3. PERSONS PRESENT NOT SCHEDULED – None 4. NEW BUSINESS a. Discussion/Recommendation – Draft Ordinance amending Kenai Municipal Code Chapter 14.25 – Landscaping and Site Plans for all Retention Basins, Commercial, Industrial, and Multi-Family Development and Land Clearing in Certain Zones in the City and Making other Housekeeping Changes. City Planner, Matt Kelley, presented a staff report outlining goals and timelines. As part of the process, various city commissions and committees are asked to review and comment on the Draft Site Plan Ordinance. Mr. Kelley reviewed the existing Site Plan Ordinance noting certain updates needed; a review of how site plans are currently administered was also explained. Questions were asked pertaining to contractor notifications, opportunity for public comment, invasive plant species, fines, fire buffers, fencing, and speculative building. Mr. Kelley provided explanations and answered questions accordingly. MOTION: Commissioner Halstead MOVED to approve a motion between the Beautification Committee and Parks & Recreation Committee to approve the draft ordinance amending KMC Chapter 14.25 for Page 234 of 276 Parks and Recreation Commission Meeting April 6, 2017 Page 2 possible inclusion of the following considerations: invasive species, privacy fencing, residential application (spec homes), and firewise compatibility; Commissioner Widmayer SECONDED the motion. There were no objections; SO ORDERED. 5. COMMISSION QUESTIONS & COMMENTS – None 6. PERSONS PRESENT NOT SCHEDULED TO BE HEARD – None 7. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 6:53 p.m. Meeting summary prepared and submitted by: _____________________________________ Tawni Eubank Administrative Assistant Page 235 of 276 CITY OF KENAI PLANNING & ZONING COMMISSION CITY COUNCIL CHAMBERS JUNE 28, 2017- 7:00 P.M. COMMISSION CHAIR JEFF TWAIT, PRESIDING MINUTES 1. CALL TO ORDER: Commission Chair Twait called the meeting to order at 7:00 p.m. a. Pledge of Allegiance Commission Chair Twait led those assembled in the Pledge of Allegiance. b. Roll Call Commissioners present: B. Springer, J. Twait, K. Peterson, V. Askin, D. Fikes Staff/Council Liaison present: City Planner M. Kelley, Planning Assistant W. Anderson, Acting City Clerk J. Heinz, and Council Liaison B. Molloy A quorum was present. c. Agenda Approval MOTION: Commissioner Peterson MOVED to approve the agenda and Commissioner Askin SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Springer MOVED to approve the consent agenda; Commissioner Peterson SECONDED the motion. There were no objections; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. e. *Excused Absences – J. Halstead, G. Greenberg 2. *APPROVAL OF MINUTES: June 14, 2017 Page 236 of 276 Planning and Zoning Commission Meeting June 28, 2017 Page 2 Minutes were approved by the consent agenda. 3. SCHEDULED PUBLIC COMMENT: (10 Minutes) None scheduled. 4. PERSONS PRESENT NOT SCHEDULED: (3 Minutes) None. 5. CONSIDERATION OF PLATS: None. 6. PUBLIC HEARINGS: a. PZ17-20 - Application for a Conditional Use Permit to operate an approximately 3,000- square-foot Marijuana Cultivation Facility, Standard and an approximately 2,500-square- foot Marijuana Product Manufacturing Facility, within an existing approximately 5,500- square-foot commercial building located at 12516 Kenai Spur Highway, Kenai, AK 99611 (KPB Parcel No. 04314013) and further described as Lot 2, C-Plaza Subd. Application submitted by: ACG, LLC, 836 Heath Place, Soldotna, AK 99669 City Planner Kelley reviewed his staff report provided in the packet noting the Conditional Use Permit would allow 3,000 square-foot Marijuana Cultivation Facility and a 2,500 square-foot Marijuana Product Manufacturing Facility within an existing 5,500 square-foot commercial building, and, based on the review of criteria, found that the permit could be approved with the following conditions: • Further development of the property shall conform to all Federal, State, and local regulations; • A building permit will be required for the construction of the Commercial Marijuana Establishment as shown on the submitted floor plan; • Prior to issuance of the Building Permit, the property owner shall submit a Landscape Site Plan for review and approval by Planning Administration. The Landscape Site Plan shall demonstrate compliance with Kenai Municipal Code Chapter 14.25 – Landscaping/Suite Plan Regulations; • All Marijuana Product Manufacturing methods shall conform to the requirements within the International Fire Code; • Prior to operation of the Marijuana Cultivation Facility, Standard and/or the Marijuana Product Manufacturing Facility, the property owner shall submit a copy of the approved and fully executed license from the Alaska Alcohol & Marijuana Control Office. The property owner shall comply with all regulations as stipulated by the State of Alaska Marijuana Control Board; • A sign permit will be required for the construction of any proposed signage; • Pursuant to Kenai Municipal Code Section, 14.20.150(f) the property owner shall submit an Annual Report to the City of Kenai. MOTION: Commissioner Peterson MOVED to approve Resolution No. PZ17-20 and Commissioner Fikes SECONDED the motion. Commission Chair Twait opened the public hearing. Page 237 of 276 Planning and Zoning Commission Meeting June 28, 2017 Page 3 David Daniel, member of Kenai Christian Church spoke against the Conditional Use Permit noting the main entrance, as far as patrons were concerned, was the office/chapel side and not under the covered entrance, pointing out that those attending weddings, funerals, etc. entered through the side. Suggested it was unreasonable to say that the door used on Sunday morning was the main entrance. Further noted they wanted to be a good neighbor and their proud tradition of supporting community. Eric Derleth, partner in Red Run Cannabis Company, noted the facility was meant to be a working facility and nothing on the outside would indicate what was taking place on the inside; pointed out that no one had complained of the retail operation. Also pointed out that the retail operation employed ten people and was paying significant taxes. Julie Naff, employee of the Red Run Cannabis Company retail facility, spoke in favor of the Conditional Use Permit noting the high level of professionalism at the Red Run Cannabis Company noting the promotion of good health and living naturally. Also noted that the staff was invested in maintaining the high quality of the property noting it reflected on the employees. John Rogers, cultivator at Red Run Cannabis Company, spoke in favor of the Conditional Use Permit, noting the company was great to work for and treated the neighborhood well. Hoped that with time, the stigma associated with cannabis would resolve. Marc Theiler, partner in Red Run Cannabis Company, expressed appreciation for the equitable treatment from the staff for the City of Kenai; proud to have businesses in Kenai and live in Kenai. Explained that the facility would not have retail and would not be able to have the on-site consumption rider on the license. Also explained that there was no reason for any signage from a marketing standpoint directing traffic to the facility and the intent was to keep it low key with very little traffic to and from the facility. Dave Hall, owner of C-Plaza, spoke against the facility noting he was enhancing the curb appeal of the property; was a family type atmosphere; expressed concern that the proposed business would limit who would want to lease space and visit the businesses in the plaza. Tina Hall, business owner in C-Plaza, reiterated that a number of people use the side entrance of the church on a daily basis; noted her business was one that catered to moms and children and was concerned she would lose business if a marijuana facility was nearby. Amy Jackman spok e in favor of the business; noted she had two teens and wouldn’t consider not visiting businesses in C-Plaza or taking children into any of the businesses because of private manufacturing facility built and run under direct supervision of state and City regulations. Roger Boyd, partner in the Red Run Cannabis Company spoke in favor of the business noting their purchase of the building put it back into the private sector and allowed his company to grow their business; recognized a decision had to be made regarding the front door of the church; pointed out that the Moose Lodge was an alcohol establishment that may have presented a more negative image with neon signs; reiterated that signage for the new business could be minimal; planned on producing CBD oil for medicinal purposes. George Frasier, Red Run Cannabis Company extract expert, explained the plan to create extracts to be manufactured for edibles; also explained the difference between open and closed loop methods of oil extraction pointing out their intent to use a closed loop method. Page 238 of 276 Planning and Zoning Commission Meeting June 28, 2017 Page 4 There being no one else wishing to speak, the public hearing was closed. It was clarified that Kenai Municipal Code determined that the distance measurement was from the main public entrance and matched state regulations. Commission Chair Twait noted the proposal met code requirements and the Commission was mandated to approve the permit given Administration’s determination on the entrance and would be voting in favor. Commissioner Peterson noted a majority of the State of Alaska voted to allow marijuana and though he wasn’t excited about approval, the Commission was bound by code. Commissioner Fikes noted she didn’t have an opinion one way or the other when Red Run Cannabis Company opened their other location; each criteria had been addressed line by line; noted the property was attractive now; hadn’t heard of complaints to the Commission or the City; felt the company had succeeded; would be voting in favor. Commissioner Springer noted he would be voting in favor based on staff’s decision regarding the church’s main entrance. Commissioner Askin noted she would be voting in favor; echoed Commissioner Peterson’s comments. Also noted she had some experience regarding the medicinal benefits; comments from the community gave a positive impression. VOTE: YEA: Twait, Askin, Springer, Peterson, Fikes NAY: MOTION PASSED UNANIMOUSLY. Commission Chair Twait noted the fifteen-day appeal period. b. PZ17-21 - Application for a Conditional Use Permit to construct and operate an approximately 288-square-foot Retail Marijuana Store and a 500-square-foot Marijuana Cultivation Facility, Limited and also construct and operate an approximately 3,800- square-foot Marijuana Cultivation Facility, Standard, and an approximately 1,200-square- foot Marijuana Product Manufacturing Facility located as 12656 Kenai Spur Highway, Kenai, AK 99611 (KPB Parcel No. 043140001) and further described as G. L. 142 and the West 20 feet of G. L. 141, Section 31, T6N, R11W. Application submitted by: Deniece and Ronald Isaacs, P.O. Box 3526, Kenai, Alaska 99611. City Planner Kelley reviewed his staff report provided in the packet noting the Conditional Use Permit would allow construction of a 2,016 square-foot commercial building which would contain a 288 square-foot Retail Marijuana Store, a 500 square-foot Marijuana Cultivation Facility, and a 360 square-foot garden supply retail store. The project also consists of construction of a 5,000 square-foot commercial building which would contain a 3,800 square-foot Marijuana Cultivation Facility and a 1,200 foot Marijuana Product Manufacturing Facility, all of which, based on the review of criteria, it was found that the permit could be approved with the following conditions: • Further development of the property shall conform to all Federal, State, and local Page 239 of 276 Planning and Zoning Commission Meeting June 28, 2017 Page 5 regulations; • A building permit will be required for the construction of the Commercial Marijuana Establishment as shown on the submitted floor plan; • Prior to issuance of the Building Permit, the property owner shall submit a Landscape Site Plan for review and approval by Planning Administration. The Landscape Site Plan shall demonstrate compliance with Kenai Municipal Code Chapter 14.25 – Landscaping/Suite Plan Regulations; • All Marijuana Product Manufacturing methods shall conform to the requirements within the International Fire Code; • Prior to operation of the Retail Marijuana Store and/or Marijuana Cultivation Facility, and/or Marijuana Cultivation Facility, and/or the Marijuana Product Manufacturing Facility, the property owner shall submit a copy of the approved and fully executed license from the Alaska Alcohol & Marijuana Control Office. The property owner shall comply with all regulations as stipulated by the State of Alaska Marijuana Control Board; • A sign permit will be required for the construction of the proposed marquee sign, which is shown on the submitted floor plan and building elevations. Prior to installation of any new signs, a Sign Permit shall be submitted to the City of Kenai Planning Department for review and approval; • Pursuant to Kenai Municipal Code Section, 14.20.150(f) the property owner shall submit an Annual Report to the City of Kenai. MOTION: Commissioner Springer MOVED to approve Resolution No. PZ17-21 and Commissioner Peterson SECONDED the motion. Commission Chair Twait opened the public hearing. Todd Slaughter, spoke on behalf of Tara Phillips, owner of Encore Dance Academy, noting she was against the operation. Deniece Isaacs spoke in favor of the permit noting the parcel was ideal and their plan to upgrade the run down property was a goal in the Comprehensive Plan; planned for a small operation. Ron Isaacs spoke in favor of the permit, explaining four walls had to be in place to apply for state permits; interested in CBD oils as father and uncle had Parkinson’s Disease. Amy Jackman spoke in favor of the permit noting it was common sense pointing out that the Encore Dance Academy had been subjected more to negative effects with the former alcohol establishment than they would have to with the marijuana establishment. There being no one else wishing to speak, the public hearing was closed. It was clarified that a Conditional Use Permit for both types of establishments was acceptable VOTE: YEA: Twait, Askin, Springer, Peterson, Fikes Page 240 of 276 Planning and Zoning Commission Meeting June 28, 2017 Page 6 NAY: MOTION PASSED UNANIMOUSLY. Commission Chair Twait noted the fifteen-day appeal period. 7. UNFINISHED BUSINESS: None. 8. NEW BUSINESS: None. 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Molloy reviewed the Action Agenda of the June 21 City Council meeting which was provided in the packet and gave an overview of the upcoming July 5 agenda; commended b. Borough Planning – Borough Planning Commissioner Fikes reviewed actions from the June 26 meeting. c. Administration – City Planner M. Kelley reported on the following: • Provided a copy of Resolution No. 2017-24 – amended policy regarding Committees, Commissions and Council on Aging; • Explained he was working on Bluff Erosion Project property evaluations; • Was working on an Encroachment Permit for Peninsula Botanicals; • Had scheduled future meetings with Harbor Commission, Parks & Recreation Commission and Beautification Committee to review Draft Landscape Site Plan Ordinance; • Provided information on services for Rick Koch. 11. PERSONS PRESENT NOT SCHEDULED: None. 12. INFORMATIONAL ITEMS: a. Resolution No. 2017-24 Amending Council Policy 2016-01, Procedures for Commissions, Committees, and Council on Aging. 13. NEXT MEETING ATTENDANCE NOTIFICATION: July 12, 2017 Commissioner Fikes noted she would be absent. 14. COMMISSION COMMENTS & QUESTIONS: Commissioner Peterson thanked Commissioner Fikes and Councilor Molloy for their reports. 15. ADJOURNMENT: Page 241 of 276 Planning and Zoning Commission Meeting June 28, 2017 Page 7 There being no further business before the Commission, the meeting was adjourned at 8:52 p.m. Minutes prepared and submitted by: _____________________________ Jamie Heinz, CMC Acting City Clerk Page 242 of 276 CITY OF KENAI PLANNING & ZONING COMMISSION CITY COUNCIL CHAMBERS JULY 12, 2017- 7:00 P.M. COMMISSION CHAIR JEFF TWAIT, PRESIDING MINUTES 1. CALL TO ORDER: Commission Chair Twait called the meeting to order at 7:00 p.m. a. Pledge of Allegiance Commission Chair Twait led those assembled in the Pledge of Allegiance. b. Roll Call Commissioners present: B. Springer, J. Twait, K. Peterson, V. Askin, J. Halstead, G. Greenberg Staff/Council Liaison present: City Planner M. Kelley, Acting City Clerk J. Heinz, and Council Liaison B. Molloy A quorum was present. c. Agenda Approval Commissioner Peterson noted the following modifications to the agenda and additions to the packet: Remove Item 8.a. Discussion/Recommendation – Lease Application of Airport Reserve Lands – City of Kenai – Hilcorp Alaska, LLC Lots 5&6, FBO Subdivision. Remove Item 10.c. Revised Preliminary Plat Townsite of Kenai 2016 Addition. MOTION: Commissioner Peterson MOVED to approve the agenda with the revisions to the agenda and packet and Commissioner Askin SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda Page 243 of 276 Planning and Zoning Commission Meeting July 12, 2017 Page 2 MOTION: Commissioner Peterson MOVED to approve the consent agenda; Commissioner Halstead SECONDED the motion. There were no objections; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. e. *Excused Absences – D. Fikes 2. *APPROVAL OF MINUTES: None. 3. SCHEDULED PUBLIC COMMENT: (10 Minutes) None scheduled. 4. PERSONS PRESENT NOT SCHEDULED: (3 Minutes) None. 5. CONSIDERATION OF PLATS: None. 6. PUBLIC HEARINGS: a. PZ17-24 - Application for an Encroachment Permit to recognize an encroachment into the side yard setback for an existing garage. The garage was constructed entirely into the fifteen-foot (15’) side yard setback and onto the neighboring property. The property is located at 1030 Angler Dr.; and further described as Lot 2, James H. Cowan Subdivision. The Application was submitted by Kathryn Staskon, 1030 Angler Dr., Kenai, AK 99611. City Planner Kelley reviewed his staff report provided in the packet noting the Encroachment Permit was a requirement of a Conditional Use Permit that had been granted for a Commercial Marijuana Cultivation Facility and found that the permit met the criteria for issuance and could be approved with the following conditions: • Applicant must comply with all Federal, State, and local regulations; • Applicant must complete the modifications to the structure to alleviate the encroachment across the property line between Lots 1 and 2, James H. Cowan Estates. MOTION: Commissioner Springer MOVED to approve Resolution No. PZ17-24 and Commissioner Askin SECONDED the motion. Commission Chair Twait opened the public hearing. Kathryn Staskon noted she had a survey done to ensure she remained on her property with the reconstruction of garage and would remain within the requirements of the Building Official; also noted that the encroachment occurred because the previous owner owned all three lots and didn’t think it mattered what he built where. Page 244 of 276 Planning and Zoning Commission Meeting July 12, 2017 Page 3 There being no one else wishing to speak, the public hearing was closed. It was clarified that the driveway also encroached onto the neighboring property, but didn’t cause an issue because an Access Easement had been granted; garage encroachment issue remained and the Conditional Use Permit application caused a review. VOTE: YEA: Twait, Askin, Springer, Peterson, Halstead, Greenberg NAY: MOTION PASSED UNANIMOUSLY. Commission Chair Twait noted the fifteen-day appeal period. 7. UNFINISHED BUSINESS: None. 8. NEW BUSINESS: a. Discussion/Recommendation – Lease Application of Airport Reserve Lands between the City of Kenai and Hilcorp Alaska, LLC, for the properties described as Lots 5 and 6, FBO Subdivision, for a term of 35 years. [Clerk’s Note: This item was removed from the agenda during Approval of the Agenda.] 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Molloy reviewed the Action Agenda of the July 5 City Council meeting which was provided in the packet. b. Borough Planning – No Report; next meeting July 17. c. Administration – City Planner M. Kelley reported on the following: • Revised Preliminary Plat of property donated to Tribe was going back to same as it was, without removal of property lines, due to financial considerations at this time; • Provided an update on the status and input regarding the Draft Landscape Site Plan Ordinance; 11. PERSONS PRESENT NOT SCHEDULED: None. 12. INFORMATIONAL ITEMS: a. Planning & Zoning Resolutions – Second Quarter 2017 b. Building Permits – Second Quarter 2017 c. Code Enforcement Report – Second Quarter 2017 13. NEXT MEETING ATTENDANCE NOTIFICATION: July 26, 2017 Page 245 of 276 Planning and Zoning Commission Meeting July 12, 2017 Page 4 Commissioner Halstead noted he would be available to attend telephonically. 14. COMMISSION COMMENTS & QUESTIONS: Commissioner Halstead thanked staff for their efforts on the Draft Landscape Site Plan Ordinance and also thanked Council Member Glendening for the report on the Bluff Erosion Project. Commissioner Peterson thanked Council Member’s Molloy and Glendening for their reports. 15. ADJOURNMENT: There being no further business before the Commission, the meeting was adjourned at 8:04 p.m. Minutes prepared and submitted by: _____________________________ Jamie Heinz, CMC Acting City Clerk Page 246 of 276 CITY OF KENAI PLANNING & ZONING COMMISSION CITY COUNCIL CHAMBERS JULY 26, 2017- 7:00 P.M. COMMISSION VICE CHAIR KEN PETERSON, PRESIDING MINUTES 1. CALL TO ORDER: Commission Vice Chair Peterson called the meeting to order at 7:00 p.m. a. Pledge of Allegiance Commission Vice Chair Peterson led those assembled in the Pledge of Allegiance. b. Roll Call Commissioners present: B. Springer, K. Peterson, V. Askin, J. Halstead, G. Greenberg Staff/Council Liaison present: City Planner M. Kelley, Planning Assistant W. Anderson, Acting City Clerk J. Heinz, and Council Liaison B. Molloy A quorum was present. c. Agenda Approval MOTION: Commissioner Springer MOVED to approve the agenda with the change of item 5.a. numbering be changed to PZ17-23 and Commissioner Askin SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Springer MOVED to approve the consent agenda; Commissioner Greenberg SECONDED the motion. There were no objections; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. e. *Excused Absences – D. Fikes, J. Twait Page 247 of 276 Planning and Zoning Commission Meeting July 26, 2017 Page 2 2. *APPROVAL OF MINUTES: a. *June 28, 2017 Minutes were approved by the consent agenda. b. *July 12, 2017 Minutes were approved by the consent agenda. 3. SCHEDULED PUBLIC COMMENT: (10 Minutes) None scheduled. 4. PERSONS PRESENT NOT SCHEDULED: (3 Minutes) None. 5. CONSIDERATION OF PLATS: a. PZ17-23 - Original Preliminary Plat of Dragseth Subdivision 2017 Addition submitted by Integrity Surveys, 820 Set Net Dr., Kenai, AK 99611, on behalf of City of Kenai, 210 Fidalgo Avenue, Kenai, AK 99611 City Planner Kelley reviewed his staff report provided in the packet noting the preliminary plat reconfigured parcels into tracts, one used as an Airport and Limited Use Airstrip and the other to be retained by the City, noted the proposed plat complied with subdivision regulations and recommended approval with the following conditions: • Further development of the property shall conform to all Federal, State, and local regulations; • The City Manager for the City of Kenai must sign the plat, acknowledging acceptance by the City of Kenai of the final plat. MOTION: Commissioner Springer MOVED to approve Resolution No. PZ17-23 and Commissioner Askin SECONDED the motion. VOTE: YEA: Springer, Peterson, Greenberg, Askin, Halstead NAY: MOTION PASSED UNANIMOUSLY. 6. PUBLIC HEARINGS: None. 7. UNFINISHED BUSINESS: None. 8. NEW BUSINESS: a. Discussion / Recommendation - Lease Application of Airport Reserve Lands between the City of Kenai and Hilcorp Alaska, LLC, for the properties described as Lots 5 and 6, Page 248 of 276 Planning and Zoning Commission Meeting July 26, 2017 Page 3 FBO Subdivision, for a term of 35 years. Staff explained the applicant was amending their site plan and had requested postponement to the August 9 meeting. Commissioner Askin noted she worked for Hilcorp Alaska, LLC and had a potential conflict. After the Acting City Clerk read the provisions of KMC 1.85.060(d)(1) pertaining to conflict of interest, Commission Vice Chair ruled that Commissioner Askin could vote on the matter because her employment wasn’t specifically related to the lease. MOTION: Commissioner Springer MOVED to postpone consideration of the recommendation on the lease application between the City of Kenai and Hilcorp Alaska, LLC, to the August 9 meeting and Commissioner Greenberg SECONDED the motion. There were no objections; SO ORDERED. b. Discussion / Recommendation - Authorizing the City Planner to draft and send a letter to the Kenai Peninsula Borough supporting a request by the developers of Windhaven Estates Phase 3 for a two-year time extension. Staff explained the Borough had received a request for an extension and the Borough in turn asked the City if there was objection. MOTION: Commissioner Springer MOVED authorize the City Planner to draft and send a letter to the Kenai Peninsula Borough supporting a request by the developers of Windhaven Estates Phase 3 for a two-year time extension and Commissioner Halstead SECONDED the motion. There were no objections; SO ORDERED. 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Molloy reported there had been no meeting between the last two Planning and Zoning Commission meetings but reported on the agenda items scheduled for its August 2 meeting. b. Borough Planning – No Report; Borough Planning Commissioner Absent. c. Administration – City Planner M. Kelley reported an ordinance being brought forth for consideration to amend the Conditional Use Permit application process for the gravel pits by removing the Commission’s completeness review. 11. PERSONS PRESENT NOT SCHEDULED: None. 12. INFORMATIONAL ITEMS: None. 13. NEXT MEETING ATTENDANCE NOTIFICATION: August 9, 2017 14. COMMISSION COMMENTS & QUESTIONS: None. Page 249 of 276 Planning and Zoning Commission Meeting July 26, 2017 Page 4 15. ADJOURNMENT: There being no further business before the Commission, the meeting was adjourned at 7:29 p.m. Minutes prepared and submitted by: _____________________________ Jamie Heinz, CMC Acting City Clerk Page 250 of 276 'lltfl'~ «1/t~ a Pa~t, e'tt «1/t~ a Fu.t~ JI MEMORANDUM 210 Fidalgo Ave, Kenai, A laska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai. ci ty TO: THROUGH : FROM: DATE: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ?~ O - Terry Eubank, Finance Director 1L July 25, 2017 SUBJECT: June 2017 Quarterly Investment Report City of Kenai Investment Portfolio At June 30, 2017 the City had investments with a market value of $20 ,022,698 that is down from $20 ,201 ,258 at March 31, 2017 . The City's portfolio is yielding 1.14% that is up from 0 .98 % at March 31 , 2017 . The Federal Reserve continues to raise the Federal Funds Rate increasing the portfolios yield but devaluing many of the assets held in the portfolio . There is an inverse relationship between bond values and interest rates meaning when interest rates increase , bond values decrease. Fair market value adjustments to the portfolio through June 30 , 2017 are a negative $111 ,908. The relative short duration of the portfolio ha s limited the negative adjustment and rising interest rates are a welcome event and should increase the City's investment revenues in years to come . City's Investment Portfolio US Agency Securities AML Investment Pool Wells Fargo Money Market FDIC Insured Certificates of Deposit Bank Balance Total Permanent Fund Investments $ 7,000,275 488,789 3,229,337 8,6 3 1,989 672 ,3 08 $ 20 ,002,698 The second quarter of 2017 saw a continued rally in the equity markets despite Federal Funds Rate changes . Short term interest rate increases are projected to increase more in 2017 depending upon the performance of the nation's economy. Equities propelled the portfolio to a return of 2.23% for the second quarter of 2017 , combined with first quarter performance the portfolio has returned 5.6 3% ye ar to date. Since inception the portfol io has returned 8 .57 %. As of June 30 , 2017 the portfolio value was $27,464 ,562 , comprised of $24,282, 141 (88.41 %) Airport Land Sale Permanent Fund, $3,046,800 (11 .09%) General Land Sale Permanent Fund monies, and $135 ,622 (0 .50 %) Kenai Community Foundation holdings. Page 251 of 276 CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY June 30, 2017 Fair Market Current Value Yield Cash & Cash Equivalents Wells Fargo Checking 672,308$ 0.00% Wells Fargo Secured Money Market 3,229,337 0.58% FDIC Insured Certificates of Deposit 8,631,989 1.22% Alaska Municipal League Investment Pool 488,789 0.93% Total Cash & Cash Equivalents 13,022,423 0.99% Average Yield Government Securities Maturities Less than 1 Year 497,960 0.91% Maturities 1 to 2 Years 2,494,780 1.23% Maturities Greater than 2 Years 4,007,535 1.62% Total Government Securities 7,000,275 1.43% Total Portfolio 20,022,698$ 1.14% Investment Portfolio - Purchase Price 20,088,156$ Investment Portfolio - Fair Value 06/30/16 20,134,606 Fair Value Adjustment - 06/30/16 46,450 Fair Value Adjustment thru - 6/30/17 (111,908) Cummulative Change in Fair Value (65,458)$ June 30, 2017 $0 $4,000,000 $8,000,000 $12,000,000 $16,000,000 Liquidity 20% Minimum Maturity 1 - 2 years Maturity over 2 years 30% Maximum Portfolio Liquidity Policy Minimum/Maximum Actual Page 252 of 276 CITY OF KENAI Investments 06-30-17 COK CITY OF KENAI INVESTMENTS 6/30/2017 Current year cost or Unrealized Expected Call 06/30/16 06/30/17 Gain Accrued EFFECT. SECURITY or Maturity CUSIP original cost Market Value Market Value or Loss Interest RATE FFCB 1.0 08/23/18 w/5days after 11/23/16 3133EGBG9 1,000,000 1,000,470.00 996,310.00 (4,160.00) 3,555.56 1.000 FHLMC 0.875 6/26/18 Bullet 3134G32U3 500,991 500,991.19 497,960.00 (3,031.19) 60.76 0.910 FHLMC 1.35 12/17/18 1 TIME 12/17/15 3134G6S95 1,498,500 1,522,290.00 1,498,470.00 (23,820.00) 787.50 1.380 FHLMC 2.00 3/29/22 Quarterly 9/29/17 w/ 5 days. Step 9/19 2.0, 9/20 2.25, 9/21 2.5, 9/21 3.0 & 3/22 4.0.3134GA7K4 1,004,872 1,004,872.22 996,140.00 (8,732.22) 5,111.11 2.000 FHLMC 1.70 8/24/20 1 TIME 5/24/18 w/ 5 days 3134GBMD1 1,000,000 1,000,000.00 996,460.00 (3,540.00) 1,747.22 1.700 FNMA 1.375 3/30/21 9/30/2016 Quarterly w/10 days. Step 3/17 1.50, 3/18 1.75, 3/19 2.0, 3/20 3.25 3136G3DV4 1,000,000 1,000,070.00 988,220.00 (11,850.00) 3,475.69 1.375 FNMA 1.50 5/25/21 11/25/2016 Quarterly w/10 days.3136G3MW2 502,479 502,479.17 489,710.00 (12,769.17) 750.00 1.500 TVA 3.875 2/15/21 Bullet 880591EL2 555,678 555,677.71 537,005.00 (18,672.71) 7,319.44 1.370 TOTAL 7,062,520.29 7,086,850.29 7,000,275.00 (86,575.29) 22,807.28 1.097 FDIC Insured CD's CD - 12/31/10 1.00 GMATBK 06/18/18 57803 02006LE33 245,000 245,173.95 244,279.70 (894.25) 100.68 1.000 1.95 AXP 11/20/18 35328 02587CCV0 247,106 252,330.26 248,857.44 (3,472.82) 554.23 1.950 2.00 AXP 11/28/18 27471 02587DWJ3 247,000 252,112.90 248,726.53 (3,386.37) 460.16 2.000 0.90 ASHEVL 3/29/18 29663 04407RAZ4 245,000 245,046.55 244,507.55 (539.00) 12.08 0.900 1.00 BMW 6/18/18 35141 05580AEU4 245,000 245,173.95 244,279.70 (894.25) 93.97 1.000 1.05 BMO 3/29/18 16571 05581WEQ4 245,000 245,759.50 244,811.35 (948.15) 655.46 1.050 1.20 BNCCTL 9/28/18 4033 05890NAF8 247,000 247,000.00 246,342.98 (657.02) 16.24 1.200 1.0 BBDNBK 9/24/18 26610 062683AF4 248,095 248,095.12 246,539.28 (1,555.84) 54.36 1.000 1.05 BCHINA 10/19/17 33653 06426WCP5 248,000 248,000.00 247,952.88 (47.12) 520.80 1.050 0.90 BRKL 12/27/17 34147 064577CH0 245,000 245,009.80 244,661.90 (347.90) 24.16 0.900 0.85 BNP 10/18/17 3514 065680KU3 248,000 248,000.00 247,801.60 (198.40) 421.60 0.850 0.80 BSVBK 8/16/17 57833 07370WM45 249,000 249,000.00 248,937.75 (62.25) 398.40 0.800 1.35 BRKL 12/28/18 17798 11373QCQ9 247,000 247,000.00 246,518.35 (481.65) 27.41 1.350 2.4 COF 4/19/22 33954 1404202E9 247,000 247,000.00 249,158.78 2,158.78 1,185.60 2.400 1.15 COF 7/17/17 4297 14042E4Q0 248,000 248,572.88 248,002.48 (570.40) 1,304.89 1.150 1.15 ADS 7/13/17 57570 20033ALN4 248,000 248,602.64 248,002.48 (600.16) 140.65 1.150 1.65 CWBKNA 12/30/19 57176 20084TJW4 247,000 247,000.00 246,666.55 (333.45) 11.17 1.650 1.40 DFS 6/29/18 5649 254672X78 247,000 247,000.00 247,125.97 125.97 18.95 1.400 1.60 FRME 12/30/19 4365 32082BEL9 247,000 247,000.00 246,365.21 (634.79) 10.83 1.600 0.90 FSBSIA 4/20/18 18508 336386AR8 245,000 245,083.30 244,448.75 (634.55) 66.45 0.900 1.50 FSBDQN 6/28/19 21805 336460CC2 247,000 247,000.00 246,444.25 (555.75) 10.15 1.500 1.80 FFIC 12/10/18 58564 34387ABA6 247,000 250,430.83 247,708.89 (2,721.94) 194.89 1.800 1.25 GRBKIW 9/27/18 14079 36198JCK8 247,000 247,000.00 246,498.59 (501.41) 33.84 1.250 0.95 MBFI 2/16/18 3628 55266CSC1 245,000 245,053.90 244,588.40 (465.50) 95.65 0.950 1.25 MFNC 6/29/18 14816 55275FKL1 247,000 247,000.00 246,757.94 (242.06) 8.46 1.250 1.00 MVZAVC 6/18/18 22953 58733ACV9 245,000 245,181.30 244,289.50 (891.80) 93.97 1.000 0.60 NEWREP 7/13/17 34860 64828QBJ6 249,000 249,000.00 248,967.63 (32.37) 73.68 0.600 0.60 PPBKMA 7/14/17 90213 710465DM4 249,000 249,000.00 248,965.14 (34.86) 1,064.22 0.600 0.85 SAFR 10/12/17 26876 78658QZQ9 248,000 248,000.00 246,757.94 (1,242.06) 1,507.36 0.850 1.25 PFBC 6/29/18 33539 740367FJ1 247,000 247,000.00 247,727.20 727.20 8.46 1.250 2.00 SALLMA 2 11/26/18 58177 795450VE2 247,000 251,930.12 248,620.32 (3,309.80) 487.23 2.000 0.90 SONA 12/28/17 57968 83540RFJ7 245,000 245,004.90 244,659.45 (345.45) 18.12 0.900 1.35 STBFLO 12/28/18 15146 856191AY7 247,000 247,000.00 246,518.35 (481.65) 9.14 1.350 1.00 WFC 12/18/17 3511 9497485V5 245,000 245,034.30 244,691.30 (343.00) 87.26 1.000 1.00 ZION 3/22/18 2270 98878BDN5 245,000 245,725.20 244,806.45 (918.75) 677.95 1.000 TOTAL FDIC Insured CD's 8,635,200.69 8,657,321.40 8,631,988.58 (25,332.82) 10,448.47 1.224 WELLS MONEY MKT 3,229,337.06 3,229,337.06 3,229,337.06 - 1,962.90 0.580 AML POOL - City ACCT Agreed to Amlip 488,789.18 488,789.18 488,789.18 - 165.94 0.930 Agreed to GL 19,415,847.22 19,462,297.93 19,350,389.82 (111,908.11) 35,384.59 WF Cash Agreed to WF 672,308.32 672,308.32 672,308.32 - - 0.000 TOTAL 20,088,155.54 20,134,606.25 20,022,698.14 (111,908.11) 35,384.59 MONTHS (65,457.40) TOTAL CURRENT YIELD 1.1425% Max/Min Return Actual Difference Maturity over 2 years 30% Maximum 6,006,809.44 1.6663% 4,749,726 1,257,083.90 OK Liquidity 20% Minimum 4,004,539.63 0.7846% 10,305,418 (6,300,877.99) OK Maturity 1 - 2 years 1.3841% 4,967,555 1.1425% 20,022,698 Page 253 of 276 CITY OF KENAI PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY June 30, 2017 Current or Current Average Portfolio Target Portfolio 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 Yield Weight Weight Maximum Fixed Income Cash & Cash Equivalents 1,642,134 1,597,365 1,531,191 1,676,898 1,686,861 0.81% 6.05% Total Cash & Cash Equivalents 1,642,134 1,597,365 1,531,191 1,676,898 1,686,861 Government & Corporate Securities Government Securities 4,966,107 5,324,096 5,381,797 4,872,143 4,074,384 2.07% 17.59% Corporate Securities 5,169,918 5,111,978 5,040,425 5,438,448 6,085,153 4.07%19.63% Total Government & Corporate Securities 10,136,025 10,436,074 10,422,222 10,310,591 10,159,537 2.90%37.22% Total Fixed Income 11,778,159 12,033,439 11,953,413 11,987,489 11,846,398 2.83% 43.27% 45.00% 65.00% Equities Domestic Equities Standard & Poor's 500 Index 5,084,866 5,352,519 5,537,151 5,555,087 5,486,353 20.06% 20.00% 25.00% Standard & Poor's 600 Small-Cap Index 1,226,016 1,309,783 1,450,836 1,616,615 1,638,821 5.83% 5.00% 10.00% Standard & Poor's 400 Mid-Cap Index 2,502,283 2,653,277 2,835,581 2,992,070 3,039,776 10.80%10.00%15.00% Total Domestic Equities 8,813,165 9,315,579 9,823,568 10,163,772 10,164,950 36.69% 35.00% 50.00% International Equities Vanguard Europe Pacific ETF 2,822,816 2,656,370 2,583,625 2,791,741 3,020,144 10.08% 10.00% 15.00% Vanguard Emerging Market ETF 1,194,532 1,302,166 1,211,948 1,420,558 1,351,080 5.13%5.00%10.00% Total International Equities 4,017,348 3,958,536 3,795,573 4,212,299 4,371,224 15.20%15.00% 25.00% Real Estate Vanguard REIT ETF 1,356,651 1,305,437 1,242,077 1,342,088 1,081,990 4.84%5.00%10.00% Total Real Estate 1,356,651 1,305,437 1,242,077 1,342,088 1,081,990 4.84%5.00%10.00% Total Equities 14,187,164 14,579,552 14,861,218 15,718,159 15,618,164 Total Portfolio 25,965,323 26,612,991 26,814,631 27,705,648 27,464,562 5.63%100.00%100.00%150.00% Total ALSPF Balance 22,939,838 23,512,038 23,690,184 24,477,380 24,282,141 Total GLSPF Balance 2,901,139 2,973,504 2,996,033 3,095,588 3,046,800 Total Kenai Community Foundation 124,345 127,447 128,413 132,680 135,621 Fair Market Value 0.00% 25.00% 50.00% 75.00% Fixed Income Standard & Poor's 500 Index Standard & Poor's 600 Small-Cap Index Standard & Poor's 400 Mid-Cap Index Vanguard Europe Pacific ETF Vanguard Emerging Market ETF Vanguard REIT ETF Portfolio Composition Current Portfolio Weight Target Portfolio Weight Maximum Portfolio Weight Current Month Current Quarter Year to Date Last 1 Year Inception to Date Portfolio 0.67% 2.23% 5.63% 9.09% 8.57% Benchmark 0.52% 2.29% 5.65% 9.34% 8.67% -5.00% 0.00% 5.00% 10.00% 15.00%Portfolio Performance Page 254 of 276 $15,000,000 $17,000,000 $19,000,000 $21,000,000 $23,000,000 $25,000,000 $27,000,000 Total ALSPF Balance Transfer of $1,195,313 to Airport Operations. Transfer of $1,147,714 to Airport Operations. Transfer of $1,184,356 to Airport Operations. $‐ $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Total GLSPF Balance Transfer of $1,011,485 Transfer of $1,075,123 to Airport Operations. Transfer of $135,668 to General Fund Operations. Transfer of $1,158,473 to Airport Operations. Transfer of $154,172 to General Fund Operations. Transfer of $153,493 to General Fund Operations. $‐ $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 Total Kenai Community Foundation Balance $50,000 investment. $5,000 investment. Initial investment of $66,143. Transfer of $149,802 to General Fund Operations. Page 255 of 276 Clients are encouraged to compare this report with the official statement from their custodian.INVESTMENT PERFORMANCECurrentMonthCurrentQuarterYear toDateLatest 1YearInception toDatePortfolio0.67 2.23 5.63 9.09 8.57Benchmark0.52 2.29 5.65 9.34 8.670.001.002.003.004.005.006.007.008.009.0010.00Percent Total Return (Gross)Performance is Annualized for Periods Greater than One YearCurrent Account Benchmark:Equity BlendPORTFOLIO COMPOSITIONFixed Income43%US Lg Cap20%US Md Cap11%US Sm Cap6%Int'l11%Emer Mkts5%Real Estate4%MANAGEMENT TEAMClient Relationship Manager:Amber Frizzell, AIF®Amber@apcm.netYour Portfolio Manager:Bill Lierman, CFA®Contact Phone Number:907/272 -7575ACCOUNT ACTIVITYPortfolio Value on 05-31-1728,539,122Contributions0Withdrawals-1,257,608Change in Market Value 45,480Interest26,641Dividends110,774Portfolio Value on 06-30-1727,464,410CITY OF KENAI PERMANENT FUNDSAccount Statement - Period Ending June 30, 2017Page 256 of 276 Alaska Permanent Capital Management Co. PORTFOLIO SUMMARY AND TARGET CITY OF KENAI PERMANENT FUNDS June 30, 2017 % Asset Class & Target Market Value Assets Range FIXED INCOME (45%) US Fixed Income (40.0%)10,159,547 37.0 35% to 65% Cash (5.0%)1,706,815 6.2 0% to 10% Subtotal: 11,866,362 43.2 EQUITY (55%) US Large Cap (20.0%)5,466,240 19.9 15% to 25% US Mid Cap (10.0%)3,039,776 11.1 5% to 15% US Small Cap (5.0%)1,638,821 6.0 0% to 10% Developed International Equity (10.0%)3,020,144 11.0 5% to 15% Emerging Markets (5.0%)1,351,080 4.9 0% to 10% Real Estate (5.0%)1,081,990 3.9 0% to 10% Subtotal: 15,598,051 56.8 TOTAL PORTFOLIO 27,464,410 100 Page 257 of 276 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2017YieldAverage Total Market Pct. Annual Accrued toQuantitySecurityCost Average Cost Price Value Assets Income Interest MaturityU.S. TREASURY 200,000 US TREASURY NOTES99.64199,281 99.60199,196 0.73 2,500421 1.431.250% Due 10-31-1975,000 US TREASURY NOTES100.3375,246 99.3574,514 0.27 937319 1.501.250% Due 02-29-20150,000 US TREASURY NOTES100.06150,094 97.60146,397 0.53 1,6875 1.751.125% Due 06-30-21375,000 US TREASURY NOTES99.34372,510 101.44380,392 1.39 7,96922 1.752.125% Due 06-30-21750,000 US TREASURY NOTES100.59754,414100.80756,007 2.75 15,000 2,541 1.812.000% Due 10-31-21125,000 US TREASURY NOTES100.95126,191 100.72125,904 0.46 2,5007 1.832.000% Due 12-31-21225,000 US TREASURY NOTES101.00227,250 100.00224,991 0.82 4,219357 1.881.875% Due 05-31-22500,000 US TREASURY NOTES98.24491,211102.63513,145 1.87 12,500 4,696 2.042.500% Due 08-15-23500,000 US TREASURY NOTES100.23501,133101.52507,615 1.85 11,875 4,461 2.142.375% Due 08-15-24425,000 US TREASURY NOTES100.65427,756 94.80402,921 1.47 6,906882 2.271.625% Due 05-15-26250,000 US TREASURY NOTES95.26238,145 97.51243,770 0.89 5,000639 2.302.000% Due 11-15-26150,000 US TREASURY NOTES100.24150,363 99.53149,302 0.54 3,375 1,268 2.302.250% Due 02-15-27Accrued Interest15,617 0.063,713,5943,739,773 13.6215,617AGENCIES300,000 FEDERAL FARM CREDIT BANK100.00300,000 99.28297,834 1.088,550 1,591 2.952.850% Due 04-24-25Accrued Interest1,591 0.01300,000299,425 1.091,591FNMA & FHLMC33,432 FHLMC POOL G14203104.5634,957 104.9735,094 0.13 1,337111 1.434.000% Due 04-01-26Accrued Interest111 0.0034,95735,205 0.13111CORPORATE BONDS200,000 STATOIL ASA101.11202,212 100.18200,362 0.73 6,250 2,326 1.723.125% Due 08-17-171Page 258 of 276 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2017YieldAverage Total Market Pct. Annual Accrued toQuantitySecurityCost Average Cost Price Value Assets Income Interest Maturity250,000 UNITED PARCEL SERVICE121.23303,075 102.12255,302 0.93 13,750 6,340 1.555.500% Due 01-15-18200,000 MCDONALDS CORP M/T/N104.35208,698 102.48204,954 0.75 10,700 3,567 1.615.350% Due 03-01-18200,000 CHEVRON CORP99.86199,71299.97199,948 0.73 2,730902 1.401.365% Due 03-02-18200,000 BERKSHIRE HATHAWAY FINANCE117.86235,714 103.28206,556 0.75 10,800 1,380 1.615.400% Due 05-15-18200,000 COMMONWEALTH EDISON123.20246,400104.85209,692 0.76 13,900 6,409 2.226.950% Due 07-15-18200,000 SOUTHERN CAL EDISON122.07244,134 104.23208,468 0.76 11,000 4,156 1.685.500% Due 08-15-18200,000 TOYOTA MOTOR CREDIT CORP100.48200,958 100.61201,230 0.73 4,200 1,913 1.702.100% Due 01-17-19500,000 GOLDMAN SACHS GROUP INC.116.51582,570 108.47542,350 1.97 37,500 14,167 2.167.500% Due 02-15-19200,000 MICROSOFT CORP117.24234,472104.91209,824 0.76 8,400700 1.594.200% Due 06-01-19200,000 TORONTO-DOMINION BANK101.89203,782 100.68201,362 0.73 4,500 1,200 1.942.250% Due 09-25-19200,000 HSBC USA INC99.61199,216 100.83201,670 0.73 4,750633 2.012.375% Due 11-13-19250,000 CAPITAL ONE99.94249,850 100.03250,082 0.91 5,875 2,464 2.342.350% Due 01-31-20200,000 ENTERPRISE PRODUCTS OPER112.75225,494 108.53217,066 0.79 10,400 3,467 2.395.200% Due 09-01-20250,000 PNC BANK NA99.72249,300 100.85252,127 0.92 6,125953 2.182.450% Due 11-05-20200,000 NBC UNIVERSAL MEDIA LLC109.20218,408 107.79215,576 0.78 8,750 2,187 2.204.375% Due 04-01-21200,000 AMERICAN EXPRESS CREDIT99.92199,850 99.84199,690 0.73 4,500700 2.292.250% Due 05-05-21200,000 MORGAN STANLEY114.98229,964110.89221,772 0.81 11,000 4,675 2.665.500% Due 07-28-21200,000 GILEAD SCIENCES INC96.28192,564 98.00196,006 0.713,900 1,300 2.401.950% Due 03-01-22200,000 BANK AMER CORP99.34198,686101.97203,940 0.74 6,600 3,117 2.913.300% Due 01-11-23150,000 DISCOVERY COMMUNICATIONS98.88148,320 98.59147,880 0.544,875 1,219 3.523.250% Due 04-01-23150,000 NEWELL BRANDS INC106.01159,022104.99157,491 0.57 5,775 1,444 2.903.850% Due 04-01-23200,000 Waste Management Inc100.24200,478 98.68197,364 0.72 4,8006032.642.400% Due 05-15-232Page 259 of 276 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2017YieldAverage Total Market Pct. Annual Accrued toQuantitySecurityCost Average Cost Price Value Assets Income Interest Maturity200,000 JPMORGAN CHASE & CO105.18210,362 104.81209,612 0.76 7,750 3,229 3.063.875% Due 02-01-24175,000 PRUDENTIAL FINANCIAL INC103.15180,505 104.11182,189 0.66 6,125783 2.843.500% Due 05-15-24200,000 WELLS FARGO & COMPANY99.88199,764 101.43202,864 0.74 6,600 2,053 3.083.300% Due 09-09-24150,000 REYNOLDS AMERICAN INC108.47162,700 107.13160,702 0.59 6,675352 3.424.450% Due 06-12-25150,000 ANHEUSER-BUSCH INBEV FIN103.01154,519 103.03154,540 0.56 5,475 2,281 3.243.650% Due 02-01-26Accrued Interest74,5210.276,240,7316,085,14322.1674,521DOMESTIC FIXED INCOME FUNDS/ETF1,499,750 GOLDMAN SACHS PRIME OBLIGATIONS FUND1.00 1,500,000 1.001,500,350 5.46 NADOMESTIC LARGE CAP EQUITY FUNDS/ETF33,000 FLEXSHARES QUAL DIV ETF40.67 1,341,978 41.081,355,640 4.94 NA17,000 SPDR S&P 500 ETF110.49 1,878,278 241.804,110,600 14.97 NA3,220,2565,466,240 19.90DOMESTIC MID CAP EQUITY FUNDS/ETF17,475 ISHARES CORE S&P MIDCAP 400 ETF66.27 1,158,075 173.953,039,776 11.07 NADOMESTIC SMALL CAP EQUITY FUNDS/ETF23,375 ISHARES S&P SMALLCAP 600 INDEX ETF31.00724,633 70.111,638,821 5.97 NAINTERNATIONAL EQUITY FUNDS/ETF49,600 ISHARES ETF CORE MSCI EAFE50.81 2,520,166 60.89 3,020,144 11.00 NAEMERGING MARKET FUNDS/ETF27,000 ISHARES ETF CORE MSCI EMERGING MKTS37.29 1,006,779 50.041,351,080 4.92 NAREAL ESTATE13,000 VANGUARD REIT ETF35.19457,463 83.231,081,990 3.94 NACASH AND EQUIVALENTSDIVIDEND ACCRUAL20,11320,113 0.07WF ADV GOVT MM FD-INSTL #1751186,352186,352 0.68206,465206,465 0.75TOTAL PORTFOLIO21,083,11927,464,410100 318,06191,8413Page 260 of 276 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-17 To 06-30-17Trade Settle TradeDate Date Security Quantity AmountPURCHASESCORPORATE BONDS06-06-17 06-09-17 NEWELL BRANDS INC150,000 159,022.503.850% Due 04-01-2306-06-17 06-09-17 REYNOLDS AMERICANINC150,000 162,700.504.450% Due 06-12-25321,723.00DOMESTIC FIXED INCOME FUNDS/ETF06-08-17 06-09-17 GOLDMAN SACHS PRIMEOBLIGATIONS FUND499,750.1200 500,000.00INTERNATIONAL EQUITY FUNDS/ETF06-23-17 06-28-17 ISHARES ETF CORE MSCIEAFE5,600.0000 340,625.60U.S. TREASURY 06-28-17 06-29-17 US TREASURY NOTES 125,000 126,191.412.000% Due 12-31-211,288,540.01DEPOSITS AND EXPENSESMANAGEMENT FEES06-30-17 06-30-17 MANAGEMENT FEES 3,955.373,955.37DividendDOMESTIC FIXED INCOME FUNDS/ETF06-02-17 06-02-17 GOLDMAN SACHS PRIMEOBLIGATIONS FUND842.99DOMESTIC LARGE CAP EQUITY FUNDS/ETF06-16-17 07-31-17 SPDR S&P 500 ETF 20,112.841Page 261 of 276 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-17 To 06-30-17Trade Settle TradeDate Date Security Quantity Amount06-19-17 06-23-17 FLEXSHARES QUAL DIVETF9,275.9429,388.78DOMESTIC MID CAP EQUITY FUNDS/ETF06-27-17 06-30-17 ISHARES CORE S&PMIDCAP 400 ETF10,516.30DOMESTIC SMALL CAP EQUITY FUNDS/ETF06-27-17 06-30-17 ISHARES S&P SMALLCAP600 INDEX ETF4,817.28EMERGING MARKET FUNDS/ETF06-20-17 06-26-17 ISHARES ETF CORE MSCIEMERGING MKTS9,744.08INTERNATIONAL EQUITY FUNDS/ETF06-20-17 06-26-17 ISHARES ETF CORE MSCIEAFE42,448.12REAL ESTATE06-23-17 06-29-17 VANGUARD REIT ETF 13,016.25110,773.80InterestCASH AND EQUIVALENTS06-01-17 06-01-17 WF ADV GOVT MMFD-INSTL #1751622.05CORPORATE BONDS06-01-17 06-01-17 MICROSOFT CORP 4,200.004.200% Due 06-01-192Page 262 of 276 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-17 To 06-30-17Trade Settle TradeDate Date Security Quantity Amount06-12-17 06-12-17 REYNOLDS AMERICAN INC3,337.504.450% Due 06-12-257,537.50FNMA & FHLMC06-15-17 06-15-17 FHLMC POOL G14203 114.244.000% Due 04-01-26U.S. TREASURY 06-30-17 06-30-17 US TREASURY NOTES 843.751.125% Due 06-30-2106-30-17 06-30-17 US TREASURY NOTES 1,250.002.000% Due 12-31-2106-30-17 06-30-17 US TREASURY NOTES 3,984.382.125% Due 06-30-216,078.1314,351.92PRINCIPAL PAYDOWNSFNMA & FHLMC06-15-17 06-15-17 FHLMC POOL G14203 840.78 840.784.000% Due 04-01-26840.78Purchased Accrued InterestCORPORATE BONDS06-06-17 06-09-17 NEWELL BRANDS INC 1,090.833.850% Due 04-01-2306-06-17 06-09-17 REYNOLDS AMERICAN INC3,281.884.450% Due 06-12-254,372.713Page 263 of 276 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-17 To 06-30-17Trade Settle TradeDate Date Security Quantity AmountU.S. TREASURY 06-28-17 06-29-17 US TREASURY NOTES 1,243.092.000% Due 12-31-215,615.80SALES, MATURITIES, AND CALLSDOMESTIC LARGE CAP EQUITY FUNDS/ETF06-07-17 06-12-17 FLEXSHARES QUAL DIV ETF1,000.0000 41,051.6006-07-17 06-12-17 SPDR S&P 500 ETF 600.0000 146,233.31187,284.91EMERGING MARKET FUNDS/ETF06-07-17 06-12-17 ISHARES ETF CORE MSCI EMERGING MKTS2,725.0000 137,302.94INTERNATIONAL EQUITY FUNDS/ETF06-07-17 06-12-17 ISHARES ETF CORE MSCI EAFE4,175.0000 259,627.14REAL ESTATE06-23-17 06-28-17 VANGUARD REIT ETF 3,250.0000 273,456.18U.S. TREASURY 06-01-17 06-01-17 US TREASURY NOTES 350,000 362,414.062.625% Due 11-15-2006-06-17 06-07-17 US TREASURY NOTES 300,000 294,199.221.125% Due 06-30-21656,613.281,514,284.454Page 264 of 276 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-17 To 06-30-17Trade Settle TradeDate Date Security Quantity AmountSold Accrued InterestU.S. TREASURY 06-01-17 06-01-17 US TREASURY NOTES 424.422.625% Due 11-15-2006-06-17 06-07-17 US TREASURY NOTES 1,473.071.125% Due 06-30-211,897.491,897.49WithdrawCASH AND EQUIVALENTS06-01-17 06-01-17 WF ADV GOVT MM FD-INSTL #17511,257,216.0006-20-17 06-20-17 WF ADV GOVT MM FD-INSTL #1751391.841,257,607.841,257,607.845Page 265 of 276 Alaska Permanent Capital Management Co.REALIZED GAINS AND LOSSESCITY OF KENAI PERMANENT FUNDSFrom 06-01-17 Through 06-30-17Avg. CostDate Quantity Security Basis Proceeds Gain Or Loss06-01-17 350,000 US TREASURY NOTES 353,916.64 362,414.06 8,497.422.625% Due 11-15-2006-06-17 300,000 US TREASURY NOTES 300,187.50 294,199.22 -5,988.281.125% Due 06-30-2106-07-17 1,000.0000 FLEXSHARES QUAL DIV ETF40,666.00 41,051.60 385.6006-07-17 600.0000 SPDR S&P 500 ETF 66,292.18 146,233.31 79,941.1306-07-17 2,725.0000 ISHARES ETF CORE MSCI EMERGING MKTS101,610.11 137,302.94 35,692.8306-07-17 4,175.0000 ISHARES ETF CORE MSCI EAFE206,808.63 259,627.14 52,818.5106-15-17 840.78 FHLMC POOL G14203 879.14 840.78 -38.364.000% Due 04-01-2606-23-17 3,250.0000 VANGUARD REIT ETF 114,365.84 273,456.18 159,090.34TOTAL GAINS 336,425.84TOTAL LOSSES -6,026.641,184,726.03 1,515,125.23 330,399.20Page 266 of 276 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 06-01-17 To 06-30-17Trade Settle TranDate Date Code Activity Security AmountWF ADV GOVT MM FD-INSTL #175106-01-17 Beginning Balance 1,116,080.3006-01-17 06-01-17 dp Sale US TREASURY NOTES 362,414.062.625% Due 11-15-2006-01-17 06-01-17 dp Accrued Interest US TREASURY NOTES 424.422.625% Due 11-15-2006-01-17 06-01-17 wd Withdrawal from Portfolio -1,257,216.0006-01-17 06-01-17 dp Interest MICROSOFT CORP 4,200.004.200% Due 06-01-1906-01-17 06-01-17 dp Interest WF ADV GOVT MM FD-INSTL #1751622.0506-02-17 06-02-17 dp Dividend GOLDMAN SACHS PRIME OBLIGATIONS FUND842.9906-06-17 06-09-17 wd Purchase NEWELL BRANDS INC -159,022.503.850% Due 04-01-2306-06-17 06-09-17 wd Accrued Interest NEWELL BRANDS INC -1,090.833.850% Due 04-01-2306-06-17 06-09-17 wd Purchase REYNOLDS AMERICAN INC -162,700.504.450% Due 06-12-2506-06-17 06-09-17 wd Accrued Interest REYNOLDS AMERICAN INC -3,281.884.450% Due 06-12-2506-06-17 06-07-17 dp Sale US TREASURY NOTES 294,199.221.125% Due 06-30-2106-06-17 06-07-17 dp Accrued Interest US TREASURY NOTES 1,473.071.125% Due 06-30-2106-07-17 06-12-17 dp Sale FLEXSHARES QUAL DIV ETF 41,051.6006-07-17 06-12-17 dp Sale SPDR S&P 500 ETF 146,233.3106-07-17 06-12-17 dp Sale ISHARES ETF CORE MSCI EMERGING MKTS137,302.941Page 267 of 276 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 06-01-17 To 06-30-17Trade Settle TranDate Date Code Activity Security Amount06-07-17 06-12-17 dp Sale ISHARES ETF CORE MSCI EAFE 259,627.1406-08-17 06-09-17 wd Purchase GOLDMAN SACHS PRIME OBLIGATIONS FUND-500,000.0006-12-17 06-12-17 dp Interest REYNOLDS AMERICAN INC3,337.504.450% Due 06-12-2506-15-17 06-15-17 dp Interest FHLMC POOL G14203114.244.000% Due 04-01-2606-15-17 06-15-17 dp Paydown FHLMC POOL G14203840.784.000% Due 04-01-2606-19-17 06-23-17 dp Dividend FLEXSHARES QUAL DIV ETF9,275.9406-20-17 06-20-17 wd Withdrawal from Portfolio-391.8406-20-17 06-26-17 dp Dividend ISHARES ETF CORE MSCI EAFE 42,448.1206-20-17 06-26-17 dp Dividend ISHARES ETF CORE MSCI EMERGING MKTS9,744.0806-23-17 06-28-17 wd Purchase ISHARES ETF CORE MSCI EAFE -340,625.6006-23-17 06-28-17 dp Sale VANGUARD REIT ETF273,456.1806-23-17 06-29-17 dp Dividend VANGUARD REIT ETF13,016.2506-27-17 06-30-17 dp Dividend ISHARES CORE S&P MIDCAP 400 ETF10,516.3006-27-17 06-30-17 dp Dividend ISHARES S&P SMALLCAP 600 INDEX ETF4,817.2806-28-17 06-29-17 wd Purchase US TREASURY NOTES-126,191.412.000% Due 12-31-2106-28-17 06-29-17 wd Accrued Interest US TREASURY NOTES-1,243.092.000% Due 12-31-2106-30-17 06-30-17 dp Interest US TREASURY NOTES843.751.125% Due 06-30-2106-30-17 06-30-17 dp Interest US TREASURY NOTES1,250.002.000% Due 12-31-212Page 268 of 276 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 06-01-17 To 06-30-17Trade Settle TranDate Date Code Activity Security Amount06-30-17 06-30-17 dp Interest US TREASURY NOTES3,984.382.125% Due 06-30-2106-30-17Ending Balance186,352.25DIVIDEND ACCRUAL06-01-17Beginning Balance0.0006-16-17 07-31-17 dp Dividend SPDR S&P 500 ETF20,112.8406-30-17Ending Balance20,112.843Page 269 of 276 ''{ltfla;e «1/t/t, a Pa6'~ e't? «1/t/t, a h.tlife JI 210 Fidalgo Ave , Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax : (907) 283-3014 www . kenai .city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander. City Ma nager ·10· Terry Eubank, Finance Director 1 L May 31 , 2017 Quarterly Financial Report for the quarter ended June 30, 2017. Attached is a quarterl y fin an cia l re port fo r the Genera l F und , P er sonal Use Fish ery Fund, Airpo1i Fund, Water/Sewer Fund, and S eni or Fund as of June 30 , 201 7. Thi s re po11 is essentiall y on a cash ba si s, so there are accounts that m ay not look reason able. In the General F und for exampl e, sa les and prop erty tax revenu e only incl ud es p ayment s made to th e C ity by the B oro ugh tlu·o ugh May . The second ca l endar qu rut er 20 17 sales tax filin gs and t ax p aym ent s are not represented in the ba lances. FY201 7 revenue amounts w ill not be accurate for a few month s because of th e d elay in rec eipt of t he p aymen ts. St ate an d Federal is be low budget in a ll fu nds because of PER S a id. T he State doesn't actu a ll y g ive us any money. In stead th ey m ake an 'on-beha lf' payme nt to th e pe ns ion syste m. S imil arly we h ave not booked exp enditures for the PERS the Stat e i s coveting, so the Non-D epa11m ent al d ep artm ent is way u nder budget. At year-end we wi ll record r evenue and exp endi tu res fo r th ese i tems. T he actu al fi n an cia l p er fo rmance of eac h fu nd w ill be prese nted w hen th e C ity 's Co mp re hen s ive Annua l Fin ancial Rep011 is completed . Thi s rep o11 will b e on the modi fied acc ru a l basis fo r Governm ental Funds and w ill show a m or e accurate picture of each fund s fin anc ial perfo1mance for FY 201 7. The repo11 is expected in November aft er completi on of th e annu al aud it the fir st week of Oct ob er and will b e presented t o Council in ea rly D ecember. Page 270 of 276 Quarterly General Fund Expenditure Report For Quarter Ended June 30, 2017 7/1/2015 7/1/2016 7/1/2016 7/1/2016 6/30/2016 7/1/2016 6/30/2017 6/30/2017 Original * FY2016 FY2017 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 630,583$ 870,416$ -$ (870,416)$ 0.00% Taxes 11,030,476 11,139,858 11,139,858 9,349,008 (1,790,850) 83.92% Licenses/Permits and Ambulance 508,921 546,500 546,500 503,073 (43,427) 92.05% State/Federal 1,202,084 869,654 876,554 526,251 (350,303) 60.04% Dock/Multipurpose/Miscellaneous 122,324 115,500 115,500 131,687 16,187 114.01% Fines and Forfeitures 82,679 101,000 101,000 83,094 (17,906) 82.27% Interest and Miscellaneous 368,378 380,985 389,546 490,260 100,714 125.85% Transfers/Central Admin Fees 1,497,200 1,676,209 1,676,209 1,802,305 126,096 107.52% Total Revenues 14,812,062 15,460,289 15,715,583 12,885,678 (2,829,905) 81.99% EXPENDITURES & TRANSFERS General Government 01 City Clerk 241,051$ 276,258$ 276,258$ 271,124$ 5,134$ 1.86% 11 Legislative 180,123 175,870 179,370 159,319 20,051 11.18% 12 Legal 352,121 348,902 348,902 305,000 43,902 12.58% 13 City Manager 378,405 379,531 380,131 354,973 25,158 6.62% 15 Finance 625,649 652,304 652,304 616,707 35,597 5.46% 16 Land Administration 25,518 26,270 26,270 30,119 (3,849) -14.65% 18 Non-Departmental 646,054 759,417 756,650 217,691 538,959 71.23% 19 Planning and Zoning 234,782 213,850 213,850 208,759 5,091 2.38% 20 Safety 2,976 23,250 23,250 2,420 20,830 89.59% Total General Government 2,686,679 2,855,652 2,856,985 2,166,112 690,873 24.18% Public Safety 21 Police 2,701,523 2,946,426 2,946,426 2,695,958 250,468 8.50% 22 Fire 3,165,263 3,077,473 3,077,473 2,849,857 227,616 7.40% 23 Communications 748,439 839,274 839,274 746,083 93,191 11.10% 29 Animal Control 372,385 421,265 421,265 385,376 35,889 8.52% Total Public Safety 6,987,610 7,284,438 7,284,438 6,677,274 607,164 8.34% Public Works 31 Public Works Administration 196,624 236,648 236,648 221,246 15,402 6.51% 32 Shop 712,870 658,827 658,827 635,283 23,544 3.57% 33 Streets 902,179 998,852 998,852 688,241 310,611 31.10% 34 Buildings 283,263 335,507 335,507 310,793 24,714 7.37% 35 Street Lighting 156,875 165,851 165,851 154,579 11,272 6.80% 60 Dock 70,985 116,198 116,198 67,925 48,273 41.54% Total Public Works 2,322,796 2,511,883 2,511,883 2,078,067 433,816 17.27% Parks and Recreation & Culture 03 Visitor Center 179,033 181,747 181,747 177,795 3,952 2.17% 40 Library 843,603 917,768 929,729 856,667 73,062 7.86% 45 Parks, Recreation & Beautification 1,079,222 1,125,502 1,125,502 1,063,260 62,242 5.53% Total Parks and Recreation & Culture 2,101,858 2,225,017 2,236,978 2,097,722 139,256 6.23% Total Operating Expenditures 14,098,943 14,876,990 14,890,284 13,019,175 1,871,109 12.57% Transfer to other funds Street Improvement Capital Project Fund 15,000 78,000 78,000 78,000 - 0.00% Park Improvements Capital Project Fund 123,000 35,000 35,000 35,000 - 0.00% Senior Center Impr. Capital Projects - 158,400 208,400 208,400 - 0.00% Kenai Rec. Center Capital Project Fund - 20,000 20,000 - 20,000 100.00% City Dock Capital Project Fund - - 35,000 - 35,000 100.00% New City Shop Capital Project Fund 280,000 - - - - - City of Kenai Comprehensive Plan Fund 36,000 - - - - - Senior Citizen Special Revenue Fund 88,339 151,385 208,385 208,385 - 0.00% Employee Health Care Fund - - 100,000 100,000 - Debt Service 143,914 140,514 140,514 140,440 74 0.05% Total Transfer to other funds 686,253 583,299 825,299 770,225 55,074 6.67% Total Expenditures & Transfers 14,785,196 15,460,289 15,715,583 13,789,400 1,926,183 12.26% Net Revenues over(under) Expenditures 26,866$ -$ -$ (903,722)$ (903,722)$ * Note: The original budget includes outstanding encumbrances at 6/30/2016. Page 271 of 276 Quarterly Personal Use Fishery Fund Expenditure Report For Quarter Ended June 30, 2017 7/1/2015 7/1/2016 7/1/2016 7/1/2016 6/30/2016 7/1/2016 6/30/2017 6/30/2017 Original * FY2016 FY2017 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance 182,739$ 180,350$ 14,473$ -$ (14,473)$ -100.00% Beach Parking 182,739 180,350 182,854 182,854 - 0.00% Beach Camping 230,729 227,650 238,752 238,752 - 0.00% Dock Launch & Park 133,181 131,700 128,388 128,109 (279) -0.22% Dock Parking Only 15,238 15,000 14,807 14,807 - 0.00% Participant Drop-off Fee - 28,950 10,717 10,717 - 0.00% Interest Earnings 1,580 750 750 (71) (821) 0.00% PERS Grant 2,167 1,986 3,020 - (3,020) -100.00% Credit Card Fees (6,888) (3,500) (4,500) (3,680) 820 -18.22% Total Revenue 741,485 763,236 589,261 571,488 (17,773) -3.02% EXPENDITURES Public Safety 113,943$ 111,599$ 128,999$ 116,692$ 12,307$ 9.54% Streets 34,116 49,258 50,963 52,274 (1,311) -2.57% Boating Facility 71,417 72,417 76,768 70,763 6,005 7.82% Parks, Recreation & Beautification 266,996 346,935 333,682 266,267 67,415 20.20% Total Expenditures 486,472 580,209 590,412 505,996 84,416 14.30% Net Revenues over Expenditures 255,013$ 183,027$ (1,151)$ 65,492$ 66,643$ * Note: The original budget includes outstanding encumbrances at 6/30/2016. Page 272 of 276 Quarterly Airport Fund Expenditure Report For Quarter Ended June 30, 2017 7/1/2015 7/1/2016 7/1/2016 7/1/2016 6/30/2016 7/1/2016 6/30/2017 6/30/2017 Original * FY2016 FY2017 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ -$ -$ -$ -$ 0.00% State/Federal 30,048 30,961 30,961 - (30,961) 0.00% Interest , Leases & Fees 776,427 858,968 858,968 808,730 (50,238) 94.15% Terminal Revenues 784,184 783,414 903,414 650,191 (253,223) 71.97% Landing Fees 418,644 375,000 375,000 512,827 137,827 136.75% Transfers In 1,142,714 1,184,356 1,184,356 1,175,414 (8,942) 99.24% Total Revenues 3,152,017 3,232,699 3,352,699 3,147,162 (205,537) 93.87% EXPENDITURES & TRANSFERS Terminal Area 548,308$ 630,953$ 628,150$ 569,341$ 58,809$ 9.36% Airfield 1,522,298 1,710,321 1,704,174 1,597,125 107,049 6.28% Administration 287,087 315,259 438,647 408,709 29,938 6.83% Other Buildings & Areas 110,734 174,924 245,880 140,203 105,677 42.98% Training Facility 32,620 36,768 42,017 35,120 6,897 16.41% Total Expenditures 2,501,047 2,868,225 3,058,868 2,750,498 308,370 10.08% Transfer to other funds Airport Improvement Capital Projects 203,007 - - - - 0.00% Total Transfer to other funds 203,007 - - - - #DIV/0! Total Expenditures & Transfers 2,704,054 2,868,225 3,058,868 2,750,498 308,370 10.08% Net Revenues over Expenditures 447,963$ 364,474$ 293,831$ 396,664$ 102,833$ * Note: The original budget includes outstanding encumbrances at 6/30/2016. Page 273 of 276 Quarterly Water Sewer Fund Expenditure Report For Quarter Ended June 30, 2017 7/1/2015 7/1/2016 7/1/2016 7/1/2016 6/30/2016 7/1/2016 6/30/2017 6/30/2017 Original * FY2016 FY2017 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ -$ 37$ -$ (37)$ 0.00% State/Federal 30,836 24,255 24,255 - (24,255) 0.00% Water/Sewer Fees 2,570,242 2,756,781 2,756,781 2,716,808 (39,973) 98.55% Penalty and Interest 39,679 40,000 40,000 35,838 (4,162) 89.60% Interest and Miscellaneous 13,708 15,000 15,000 4,361 (10,639) 29.07% Total Revenues 2,654,465 2,836,036 2,836,073 2,757,007 (79,066) 97.21% EXPENDITURES & TRANSFERS Water 829,081$ 880,772$ 904,678$ 695,501$ 209,177$ 23.12% Sewer 384,963 450,651 809,638 718,920 90,718 11.20% Wastewater Treatment Plant 923,882 1,121,757 1,121,757 971,877 149,880 13.36% Total Expenditures 2,137,926 2,453,180 2,836,073 2,386,298 449,775 15.86% Transfer to other funds - Water & Sewer Capital Projects - - - - - - Total Transfer to other funds - - - - - - Total Expenditures & Transfers 2,137,926 2,453,180 2,836,073 2,386,298 449,775 15.86% Net Revenues over Expenditures 516,539$ 382,856$ -$ 370,709$ 370,709$ * Note: The original budget includes outstanding encumbrances at 6/30/2016. Page 274 of 276 Quarterly Senior Fund Expenditure Report For Quarter Ended June 30, 2017 7/1/2015 7/1/2016 7/1/2016 7/1/2016 6/30/2016 7/1/2016 6/30/2017 6/30/2017 Original * FY2016 FY2017 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 37,813$ 37,813$ -$ (37,813)$ 0.00% State Grants 196,978 192,939 207,786 189,522 (18,264) 91.21% USDA Grant 15,780 13,000 13,000 20,523 7,523 157.87% Choice Waiver 252,604 275,000 275,000 200,297 (74,703) 72.84% KPB Grant 126,207 126,207 126,207 126,207 - 100.00% United Way 9,582 9,582 9,582 4,483 (5,099) 46.79% Rents & Leases 12,971 13,000 13,000 8,260 (4,740) 63.54% Donations 24,720 31,000 38,677 14,717 (23,960) 38.05% Meal Donations 59,842 66,500 70,000 75,321 5,321 107.60% Transfer from General Fund 88,339 151,385 151,385 208,385 57,000 137.65% Other (620) 300 300 239 (61) - Total Revenues 786,403 916,726 942,750 847,954 (94,796) 89.94% EXPENDITURES & TRANSFERS Senior Citizen Access 175,261$ 164,631$ 166,940$ 154,425$ 12,515$ 7.50% Congregate Meals 179,437 226,133 235,092 215,388 19,704 8.38% Home Meals 148,045 178,274 185,933 175,346 10,587 5.69% Senior Transportation 108,564 68,439 75,536 66,813 8,723 11.55% Choice Waiver 331,887 279,249 279,249 247,354 31,895 11.42% Total Expenditures 943,194 916,726 942,750 859,326 83,424 8.85% Transfer to other funds - - - - - - - Total Transfer to other funds - - - - - - Total Expenditures & Transfers 943,194 916,726 942,750 859,326 83,424 8.85% Net Revenues over Expenditures (156,791)$ -$ -$ (11,372)$ (11,372)$ * Note: The original budget includes outstanding encumbrances at 6/30/2016. Page 275 of 276 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF: AUGUST 2, 2017 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT BRO DART RENT AL CONTRACT FOR BOOKS LIBRARY RENTALS 6,426.00 INGRAM LIBRARY SERVICES BOOKS LIBRARY BOOKS 4,000.00 GREENSCAPES FY18 PLANT LEASE AIRPORT RENTALS 4 , 140.00 LEGACY ELECTRIC FY18 STREET LIGHT REPAIRS & LOCATES STREET LIGHTING REPAIRS & MAINTENANCE 14,000.00 CHRISTINE BABCOCK FY18 PHYSICIAN CONSULTATION FEES F IRE PROFESSIONAL SERVICES 6 ,000.00 TERRI ELLIOTT FY18 PHYSICIAN CONSULTATION FEES FIRE PROFESSIONAL SERVICES 6 ,000.00 SOLDOTNA PROF. PHARMACY FY18 MEDICATION & EMS SUPPLIES FIRE OPERATING SUPPLIES 4 ,200.00 ALASKA MUNICIPAL LEAGUE FY18 MEMBERSHIP DUES LEGISLATIVE DUES 6,740.00 GRANICUS FY18 MEETING MGMT & VIDEO STREAM CLERK PROFESSIONAL SERVICES 12,730.80 EDOCSALASKA FY18 LASERFICHE LSAP CLERK SOFTWARE 7,4 15.40 PENINSULA CLARION FY18 AGENDAS/NOTICES CLERK ADVERTISING 6 ,000.00 PENINSULA PUMPING PORT-A-POTTIES JULY-SEPT RECREATION RENTALS 4,500.00 GREENSCAPES FY18 PLANT LEASE SENIOR CENTER PROFESSIONAL SERVICES 4 ,200.00 GCI CABLE FY18 CABLE SERVICE VINTAGE POINTE UTILITIES 8 ,640.00 KCHS NORDIC SKI TEAM BEACH CLEANUP PERSONAL USE FISHEF MISCELLANEOUS 4 ,000 .00 PITNEY BOWES FY18 CITY HALL POSTAGE NON-DEPT. POSTAGE 8,000.00 PITNEY BOWES FY18 POSTAGE SCALE & MACHINE NON-DEPT. RENTALS 3 ,300.00 KONICA MINOLTA FY18 COPI ER SERVICE NON-DEPT. PRINTING & BINDING 7 ,000.00 WEST PAYMENT CENTER FY18 INFORMATION CHARGES LEG A L BOOKS 4 ,907.5 2 WORLD WIDE TECHNOLOGIES FY18 CISCO SMARTNET RENEWAL VARIOUS COMMUNICATIONS 8,045.32 DRIVEN AUTOBODY REPAIRS TO VEHICLE SHOP REPAIRS & MAINTENANCE 4 ,449.58 Page 276 of 276 AUGUST 2, 2017 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION ITEM REQUESTED BY Add to Item D.9. Resolution No. 2017-53 • KPB Municipal Tax Survey Results City Manager Add to Item J.1. City Manager’s Report • Letter to U.S. Army Corps of Engineers City Manager Regarding the Bluff Stabilization Project • Correspondence from Dr. Sorhus City Manager Regarding his Lawton Acres Proposal MIKE NAVARRE BOROUGH MAYOR MEMORANDUM TO: Kelly Cooper, Assembly President Kenai Peninsula Borough Assembly Members THRU: Mike Navarre, Mayor FROM: Larry Persily, Chief of Staff DATE: July 31, 2017 SUBJECT: Other Alaska municipalities implementing or considering tax increases Working through the Alaska Municipal League, I asked cities and boroughs statewide if any had recently increased local taxes or were considering tax increases to help cover reductions in state funding and other revenue needs. I received almost two dozen responses: Matanuska-Susitna Borough The Matanuska-Susitna Borough assembly will hold a public hearing on Tuesday, Aug. 1, to consider an ordinance asking voters in the Oct. 3 election to approve a 3% sales tax to support education. While the cities of Wasilla, Palmer and Houston each has a sales tax, the borough does not. The borough, however, does have a bed tax (5%), a marijuana sales tax (5%), a cigarette tax ($2.20 per 20-cigarette pack) and a tobacco products tax (55% of the wholesale price). Wasilla The city council voted to put a question on the Oct. 3 ballot, asking voters to increase the city sales tax rate from 2% to 3% for a period of two years or until $12 million is collected, at which time the rate would fall back to 2.5%. The additional funds would be dedicated to construction of a new police station. KENAI PENINSULA BOROUGH 144 North Binkley Street ● Soldotna, Alaska 99669-7520 Toll-free within the Borough: 1-800-478-4441 PHONE: (907) 262-4441 ● FAX: (907) 262-1892 www.kpb.us July 31, 2017 Page 2 of 4 City and Borough of Juneau The assembly is considering going to voters in October to seek approval for an increase in the 7% bed tax to 9%. Juneau has a 5% general sales tax. Bethel The city council approved an ordinance to ask voters in the Oct. 3 election to increase the 12% alcohol tax to 15%, with 20% of the revenues dedicated to health, public safety and social services related to alcohol consumption. Bethel also has a 6% general sales tax and a 12% bed tax. Kodiak Island Borough The assembly agenda for Aug. 3 includes discussion of an ordinance to impose a cigarette tax of $1 per pack and a 45% excise tax on the wholesale price of other tobacco products. As these are excise taxes, not sales taxes, the borough assembly is not required to seek voter approval. The staff report accompanying the proposed ordinance explains: “Due to 2018 budget constraints and recent cuts in federal and state funding, it has become necessary for the borough to expand its tax base.” Unalaska The city council in January adopted an ordinance asking voters in October to raise the sales tax rate on alcohol, marijuana and tobacco from 3% (the current general sales tax rate) to 6%. City of Kodiak The city is looking at possible raising the $750 cap at which it stops collecting sales tax on each individual transaction, and also is looking into a cigarette tax and reviewing all tax exemptions including the city’s senior sales tax exemption. The city’s sales tax is 7%, with a 5% bed tax. Craig The council put a proposition on the October ballot for voters to decide on a flat-rate bed tax of $5 per day per room, and also whether to impose a 10% tax on marijuana and marijuana products. Craig already has a 5% general sales tax. City of Fairbanks The Fairbanks city council has placed on the Oct. 3 ballot a new property tax levy — up to 0.63 mills — to help replace declining state assistance. The proposition would raise city property taxes annually by a maximum of $1,713,652, less any municipal assistance funds received from the state. The 0.63 mill levy would be in addition to the city’s general property tax levy of 4.9 mills and the Fairbanks North Star Borough general government levy of almost 12 mills. Fairbanks North Star Borough The Fairbanks North Star Borough this year raised its general government levy by 0.495 mills to about 12 mills. July 31, 2017 Page 3 of 4 Fort Yukon The city of Fort Yukon is considering an increase in its 3% sales tax rate to 5%. Petersburg Borough The borough assembly decided to seek voter approval in October of an increase in the cap on transactions subject to Petersburg’s 6% general sales tax. The current limit is $1,200. The ballot proposition asks voters to approve an increase in the cap to $1,500. Kivalina The city will ask voters in October for an increase in the sales tax rate from 2% to 3%. Dillingham Dillingham is considering an excise tax on tobacco products. As an excise tax, approval would be up to the city council; voter approval is not required. Dillingham has a 6% general sales tax, a 10% bed tax, a 10% alcohol tax, and a 2.5% raw fish tax. St. Paul Voters last summer approved a 0.5% sales tax increase to a rate of 3.5%. Voters rejected a higher tax on alcohol and tobacco. The city is considering a bed tax. King Cove Voters in 2015 approved an increase in the 4% sales tax to 6%. Ketchikan Gateway Borough The borough is not considering any new tax increases that would require voter approval, but with the reduction of state funding and cost-shifting from the state, borough staff recognizes the need to begin the process of reducing the number of sales tax exemptions. Unalakleet The city administration has considered seeking an increase in Unalakleet’s 5% sales tax, but the issue is not before the council for action. Municipality of Skagway Borough The borough assembly in July defeated an ordinance to seek voter approval for a 1% increase in the sales tax rate to pay for general obligation bonds for a recreation center expansion project and to fund operation and maintenance of the center. The current sales tax rate is 5% April through September, and 3% the rest of the year. Skagway also has an 8% bed tax. Sitka Voters last year defeated a ballot proposition to increase the property tax levy. The proposition failed 976 to 1,772. July 31, 2017 Page 4 of 4 Utqiagvik (Barrow) The mayor has proposed an increase in the 5% bed tax to 10%; voters last year rejected an increase in the bed tax. The city has a 3% general sales tax, in addition to the 5% bed tax and a cigarette tax of $1 per pack. Hoonah The city in February 2017 imposed a 6% excise tax on alcohol and a 15% excise tax on tobacco products. In April, voters rejected a 1% increase in the city’s 6.5% sales tax rate. Seward The city council this year voted to increase the property tax mill levy from 3.12 to 3.84 mills to cover debt service on $3 million in general obligation bonds for road improvements.