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HomeMy WebLinkAbout1986-10-01 Council Packetv !1 ,Y. o i ,N t ` F ti COUNCIL PACKETS A OCTOBER L 4 Kenai City Council Meeting Packet October 1, 1986 41 Councll holds public hearings { A dwt agemia Laces the Now ft Council at iia 7 ; p+m+meetlEsWedoesday. a0* two pnbnc bearbip m wAedab& One is an on • ordinance amending the zmig map by rmo t a tract of land caned the Par- sons Homestead a from suburban r+ dittisl to coral The otherpumnc bearing is on a resoludon awarding the $A= wniwt management contract on the Kenai boating tacnity to William s 'A report an the read plan for Old Tbam will also be. , discussed at the mewni; - .. , . CYO- _L• t.� .ir_. Or I AGENDA KENAI CITY COUNCIL - REGULAR MEETING OCTOBER 1, 1966 - 7s00 PM PLEDGE OF ALLEGIANCE A. ROLL CALL 1. Agenda Approval 2. Consent Agenda *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 mamba' 3 0 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. PERSONS PRESENT SCHEDULED TO BE HEARD (10 Min.) _ 1. Phil Stiffler - Airport Parking of Planes t-0A S��n',\\� wo1 -• Env\1.� S`fl S �wr sicC. PUBLIC HEARINGS ..� rj�\\ Cyr 7 t OA n 1. Ordinance 1167-86 - Amending Zoning Map - Persons Homestead 2. Resolution 86-89 - Awarding Contract - Project Management, Coordination, Inspection - Wm. Nelson - Kenai Boating Facility - $78,000 D. MINUTES 1. *Regular Meeting, Sept. 17, 1986 E. CORRESPONDENCE F. OLD BUSINESS G. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. Discussion - Organizing Regional Transportation Organization 4. Report - Old Town Committee - Approval of Road Plan H. REPORTS 1. City Manager 2. Attorney 3. Mayor 4. City Clerk S. Finance Director 6. Planning 6 Zoning 7. Harbor Commission B. Recreation Commission 9. Library Commission 1. PERSONS PRESENT NOT SCHEDULED TO BE HEARD (S Min.) ADJOURNMENT :�: Ci�1:�•:.: .. _ ..� _ ... _ .. —.. ...___. .ems; L L- I� i (i 4 COUNCIL MEETING OF 8� �arvvr�iii�oAWo��� ear c�c�v���■���■■���■� EA SAMONAMENNommommmomm 7 A OCTOBER 1, 1986 INFORMATION ITEMS 1 - Council on Aging Minutes, Sept. 159 1986 2 - Landscape Board Minutes, Sept. 23, 1966 3 - Jackson Sales & Service, Request for Reduction in Insurance Requirements, CIIAP 4 - Resource Development Council Newsletter - Sept. 1986 5 - Billing - Woodard Const. - FSS - $132, 602 6 - Billing - Wince, Corthell, Bryson - Airport Way - $189620.75 7 - Billing - Zubeck, Inc. - Airport Way- $2599855.17 8 - Billing - Zubeck, Inc. - Lawton Dr. - $3,924.45 9 - Resource Development Council - Arctic Natl- Wildlife Refuge - Open to Oil do Gas Devel. 10 - Public Works Director Kornelis - Kenai/Soldotna Traffic Study 11 - Billing - C. Gintoli - FSS - $4,535 12 - Airport Manager Ernst - Resolution, Federal Express Lease Request 13 - Municipal League Newsletter - November 1986 jw PW L �I • k Federal Express Corporation 4001 West International Airport Road E a Anchorage. Alaska 99502 800 238-5355 - SEPTEMBER 26,1886 fir MR. RANDY ERNST AIRPORT MANAGER CITY OF KENAI ' 210 FIDALGO STREET i KENAI. ALASKA 89611 DEAR RANDY: PER OUR RECENT DISCUSSION. I WILL BE UNABLE COUNCIL MEETING OCTOBER 1,1986 AND REQUEST TO ATTEND THE' AN EXTENTION TO SOMETIME IN MID—OCTOBER. .. THANK YOU FOR YOUR ASSISTANCE. 3 F - , B AN A. BELL r SENIOR MANAGER ALAKKA t' . .t .1 iL k, r- - i ..F f: MEMO C CITY OF KENAI „ ail ea aiW 4 4" 110 FID"O KENAI, ALASKA 9MI TBLHPNONB M - 7M . TO: Honorable Mayor & Members City Council ' FROM: Tim Rogers, City Attorney RE: Deeds of Trust in Lend So a Contracts .:... - on City Lands r DATEt 5/11/84 A This memo is a result of attempts by various individuals to enter into land sale contracts as opposed to first deeds of trust with the City of Kenai on presently leased parcels of land. The present code gives the Administration discretionary power to _ enter into land sale contracts. In the past two such contracts have been entered into. t! The reason that land sale contracts would be considered, as opposed to deeds of trust, is because the provisions for land sale contracts purport to make it permissible under the code for the City to take a second position whereas the deed of trust provisions require the City to be in a first position. Since deeds of trust are the common means of securing debts on real estate in Alaska, the law in Alaska on mortgages is sparce. �.: Alaska has adopted the lien theory of mortgages as opposed to the title theory. Thus, a person who owns title to real estate and gives a mortgage to another to secure an indebtedness, has not r executed a conveyance, but has merely given a security for the ';debt. The debtor cannot be divested of title, or dispossessed of . ._.-- ---.---,-.; :. .. �.' his property. Bank of Wrangell vs. Alaska Asiatic Lumber Mills, 12 Ak 3389 84 F. upp. k 4 . It has been found that a document entitled "Real Estate-- �. Conditional Contract With Escrow" was, in fact, an equitable mortgage. Stephens vs. Aero Lumber Com an , 354 F.2d 732 (C.A. ` Alaska 1966Thus, it would appear that a real estate contract gives the same rights in land as a deed of trust. # Further, as shown by Alaska Statutes sections dealing with remedies of the mortgagee in a default situation (AS 9.35.110 f -330, and AS 9.45.170 - 220), foreclosure of a mortgage lien is ! L 1 c- 11 through judicial action rather than through private sale as in 4; the case of a deed of trust which means it would be much more expensive, burdensome, and time-consuming to recover property through a real estate contract than under a deed of trust which does not require a judicial proceeding. With a real estate contract, a junior lienholder who has fore- �'. closed out has 60 days from the time of confirmation of the sale is within which to redeem the property, and any subsequent junior �- --j lienholder has 60 days from that redemption within which he can ' redeem, and so on, until the last junior lienholder has had his chance to redeem. This means that a person in a second or worse position is going to be required to reimburse the person in First or senior position. Under either system, should an individual sell raw land which is subsequently developed and the person who kA k1 '# sold the land be in second position, the person in second position would have to pay off the indebtedness owed the person {. in first position to save the land. This could mean that a y person who sold land for $50,000 would have to pay off the person i # in first position holding a mortgage for improvements regardless of the amount to protect his $50,000 investment. However, with a deed of trust, the sale date is the date of payment for both .� :�. junior lienholders and the debtor without any redemption period. Under a real estate contract Foreclosure, the mortgagor retains a right to redeem the property either before the confirmstion of sale, or within a 12 month period after the confirmation of sale. A deed of trust provides no redemption period once the sale takes place, and the sale takes place without judicial involvement ;.. since it is a streamlined and expedited procedure. A first deed of trust, as opposed to a first mortgage is always -} easier to foreclose in the event of a default. Where a creditor { is in a second position, either for a deed of trust or mortgage, that creditor is at risk if the creditor in first position r- forecloses. The creditor in second position has two choices; :. first, he can forget his security and try to collect a debt personally from the debtor or, second, he can preserve his ` - security by buying at the foreclosure sale or, in the case of a mortgage, redeeming subsequent to the sale. Of course, there is - the unpalatable choice of eating it. In any case, the debt owing the first creditor could be substantial enough to squeeze out the second creditor. The Kenai City Code with the inclusion of KMC 22.05.045(c) purports to let a person out from under the requirements of KMC 22.05.045(a). The latter code provision requires a lessee who is purchasing and who has a lien for financing upon the lend, to cash the City out in order to consummate the sale. Subsection " (c) allows the lessee to avoid the cash out, by depositing an unrecorded real estate contract with an escrow agent, making payments thereon pursuant to the terms of the contract. Under 2 i tt. . this latter provision a liberal forfeiture provision is allowed in that if a default occurs, the buyer has 30 days to cure the default after receiving notice of the default. The City also has the power to take the affirmative action of retrieving the contract of sale, and keeping the payments that have previously been made as rental. It is also purportedly provided that a buyer gains no equitable interest pursuant to a contract of sale that is foreclosed upon. This dilemma is discussed below. When dealing with a contract of sale, one is dealing with an unrecorded instrument. Therefore, there is always the possibility that a buyer, who is shown as a lessee on the record, could incur indebtedness and create creditors who would have no notice of the contract of sale and therefore not be bound by it and thus have priority over the City if they attempted to foreclose liens on the property. While the City may have a remedy against the buyer/lessee, that remedy and fifty cents might get the buyer a cup of coffee, if the buyer/lessee were insolvent after subsequent lienholders took theirs. The big problem is what happens when a buyer defaults? Under KMC 22.05.045(c), a forfeiture is purportedly available. This is contrary to state statute insofar as the foreclosure provisions of AS 9.35.110-330 and AS 9.45.170-220 are concerned. This combined with the fact that the courts abhor a forfeiture means that the provisions for a forfeiture in the contract of sale may not be enforceable. At best it would have to be litigated; at worst the City would lose. If the City lost, it would mean that whet we have is a real estate contract that is really an unrecorded equitable mortgage that has to be foreclosed upon pursuant to Alaska Statutes which would mean that persons who became lienholders of a lessee/buyer subsequent to the execution of an unrecorded real estate contract but before foreclosure proceedings were instituted would probably stand ahead of the City. Assume a lessee/purchaser will not pay off the indebtedness owed to the City upon sale of the City lands. Further assume a financial institution after reviewing financial history and date relative to a City lessee/buyer of the City will not subordinate its loan to the interest of the City. Given the above, there is a real question why the City, without so much as reviewing the financial stature and history of the lessee/buyer would even consider subordinating its interest. The City is dealing with public assets and funds and does not have the same freedom and latitude that a private entity such as a private lending institution. The City is held to a higher standard of fiscal responsibility than is the case in the private sector since it is charged with a public trust. 3 L L t "'I 1 n 1s I In short, the City should never subordinate its interest pursuant to the terms of KMC 22.05.045(c) and that provision of the code should be rescinded. TJR/md !i L L F I t CITY OF KENAI %Vd Cap" of A",. 210FIDALOO KENA1.ALASM M11 TUEPHONBM-MB MEMORANDUM TO: Councilmembers t of Kenai FRO : 'Rogers, City Attorney i v of Kenai DATE: June 17, 1986 RE: Dick Morgan Golf Course Lease Some confusion has arisen surrounding the National Bank of Alaska (NBA) request that the City'subordinate its lease on the golf course in order to aid Mr. Morgan in financing improvements. At the June 4, 1986 City Council Meeting, the City Council approved the concept of "subordinating." In the interim, I have corresponded with Bogus Morgan of NBA and discussed the request (a copy of the letter is attached). Subordinating interests in land can be subject to several interpretations. In the context of land sale contracts, mortgages and deeds of trust, I have always been against the City subordinating any interests. As for back as May 1984, I sent a memorandum to this Council in which I explained the following: "Where a creditor is in a second position, either for deed of trust or mortgage, that creditor is at risk (emphasis added) if the creditor in first position forecloses. The creditor in second position has two choices; first he can forget his security and try to collect the debt personally from the debtor or, second he can preserve his security by buying at the foreclosure sale or, in the case of mortgage redeeming subsequent to the sale. Of course there is the unpalatable choice of eating it. In any case, the debt owing the first creditor could be substantial enough to squeeze out the second creditor." L L. ti._ - 1 7 I r r l l i j In the past, the City has subordinated its interest under the provisions KMC 22.05.045. In that same memo I suggested that "...there is a real question why the City, without so much as reviewing the financial stature and history of the lessee/buyer would even consider subordinating its interest. The City is dealing with public assets and funds and does f not have the same freedom and latitude that a private entity such as a private lending institution. The City is held to a higher standard of fiscal responsibility than is the case in the private sector since it is charged with a public trust. In short, the City should never subordinate its interest , pursuant to the terms of KMC 22.05.045(c) and that provision 1 of the code should be rescinded." i In a memorandum to Bill Brighton, City Manager and Jeff Labahn, j then Land Manager, on October 25, 1984, I again stressed the importance of having individuals as well as corporations sign real estate contracts where the City is in second position. In that case, I felt it necessary to have the individuals sign for the protection of the City because the City had subordinated its interests. In land sale matters, I continue to be strongly opposed to the City subordinating its interests in any respect. The danger of the City losing substantial amounts of money remains a threat whenever such activities take place. At this time I would again call for the rescission of KMC 22.05.045. This is not, however, to say that in the instant case, "subordinating" the City's interest in leased land would necessarily be bad. It appears from the letter Mr. Bogue Morgan has sent the City that all they are asking for is an assignment for the purposes of security. This is a request which the City has honored frequently in the last few years on leased lands. Where there is an assignment for security, the original lessee becomes secondarily liable to the lessor as between him and the transferee. In other words, the original lessee becomes, in effect, a surety with the relationship arising from the assignors continuing liability to the lessor under what is known as privity of contract. The assignee is liable but it is through privity of estate and not because the assignor and assignee are parties to the same contract. See e.g, Price v. S.S. Fuller Inc., 639 P.2d 1003 (Alaska 1982). Ail his means is that should the original lessee default, the assignee (NBA) has the right to step into the shoes of the lessee and in this case, take over the lease. F i 2 . w 1 �( F _,..._ ,, t> { is r L.. •� i 1 TR/clf The reason the bank would want a assignment for security is obvious. If a lessee were to be evicted from the premises and there were substantial improvements upon the promisee, secured by a loan from a bank, the City could then charge the bank rent in whatever amount it felt was appropriate. The City would be in a very powerful bargaining position. With the assignment, the lease continues as if there has been no default and the bank steps into the shoes of the golf course lessee. In other situations, the bank could, perhaps, turn the property to some other use or continue to operate it. In this case, because of the deed restriction in the land and the way the lease is written, the bank would essentially end up running a golf course. It would not have any discretion to operate some other sort of facility. Until such time as I see the paperwork which NBA will be asking the City to sign, I would suggest that a simple assignment for security purposes is acceptable. The language of NBA's letter seems to indicate though that they may went something more then a simple assignment for security purposes. If that is the case, I will prepare a supplement to this memorandum, addressing that issue. I would urge the Council not to take any action on anything but a simple assignment of security purposes unless we have had a chance to thoroughly research the ramifications of NBA's forthcoming request. 3 L 0 y October 19 1986 40-a CITY OF KENAI Del Capddl a 4" MO RDAL00 KENA:, ALASKA SWI TELEPNONEM-TM MEMORANDUM TO: t m Rogers, City Attorney j FROM: ane Gerstlauer, Administrative Assistant RE: Lots 1-A, 1-89 1-C, Spur Subdivision 02 Schilling/Tyler Per your request, this memorandum provides information on the referenced lots. i Lot 1-A i The esaessed value of the land and building is $545,600, while -. l the proposed indebtedness is $137,886.25 (not including other liens against the property). F Lot 1-8 The assessed value of the land and building is $366,200, while the proposed indebtedness is $124,599.07 not including other liens against the property). t Lot 1-C e The assessed value of the land is $113,000 and the current indebtedness is $73,750.78. The buyer has requested reallocation of this amount to Lots 1-A and 1-89 leaving Lot 1-C free and ,;. clear. i Attached to this memorandum is a copy of a letter from Dale Dolifka, outlining his client's request. r1{ Attachment . .r t � r" '� `+. •.Hr •• .a.. _,•, .+}', ..� .'i t'4+ _' '•:' .N s?A�'�j .'';,�� I: t i.. Frva+�ti.ri '!� �1 �, TL,. �;£.-""t'*a• L7.`'i 3 � ;`' -SC'tl �ti � i �6 �,�va rid; -}; �.s 1 "tf t�. � '1'?� •{t -.{�J Yt, �� t� .4s -s'.' - i .1 �> ` _: rS.t. .� sr(�.3 + '., dc�� �' 4' J f}i.�'.r .,! r�l� � � •i.:''� E a ( �isya'`•� . a :.fi �j;; :�,a•s' :�: --T't � i�•r�i• 't ��si. 'i• s �p:Y� _ i ,.'Tt•._L'iF, ;F,� i. `4 -� +fit.- -'i 'db It .'..i'• tom' •_i4Ft �r •'.a �:��:�hi ra.t}.t ".i-�'• 'K' _- .ij�� r4%� � �•'� � I ID it 3 t rrY ��� ilYi .0 •y r. _s. 9t i' j�� �,?' ( ��. - dF ... �'tt �+ � - :k tC•:a�" •.''• f..., fr�.{ai- ' .ci'c ;1r:•t'r::- 7� �%!i:"' t � , k � , j I i • I y • y, 1 I I � i I F IIII�I�I'�III'�11-'-tt'1 `if �•_ ij � "f 3 .3 rt i - LAW 0FTICE6 DALE DOLIFKA P.O. BOX 1105 KENAI. At.A6KA 99611 coos) @60-94" August 28, 1986 ��yloon City of Kenai op 210 Fidalgo Kenai, Alaska 99611 Attention: William Brighton Dear Mr. Brighton: Please be advised that I have been retained by Victor Tyler 41 to represent him with regards to the reallocation of debts t y.1 due and owing the City of Kenai by Victor Tyler on Lots 1-A, japi 1-B, and 1-C, SPUR SUBDIVISION NO. TWO (2), a resubdivision of Lot 1 of SPUR SUBDIVISION. our proposal for the reallocation of the debts due and owing on the above --described property is as follows: 1) Lot 1-C would be released to Victor Tyler by the City of Kenai free and clear of all indebtedness. The e preseent indebtedness on Lot 1-C is approximately such time as Lot 1-C is released to Mr. Tyler free and clear from the indebtedness, t Lots l the uAtanddue land owing on said lot t, would be reallocated 2) The Kenai Peninsula Borough assessed value of Lot 1-A is te the of the6indebtedness due land eowing aon Lot 1-CC to Lotof �100A:00 3) The Kenai Peninsula Borough assessed value of 'Lot 1-B l d )locate the balance %e is the sum of $139,900.00. We wou•4 f approxi- of the indebtedness owed on Lot 1-C in the amount o mately $24►000.00 to Lot 1-B. Please review our proposal and contact me with regards to any questions you may have with regards to it. Your coopera- tion in this matter will be greatly appreciated. Sincerely, i RA ZI DALE DOLIF C L L M \ it ''IA � I I r �I CITY OF KENAI „0d e� */ 4"f, 210 FIDALOO KENAI, ALASKA M11 TELEPHONE M - 7535 October 19 1986 MEMORANDUW, TO: im Rogers, City Attorney ._. FRO one Gerstlauer, Administrative AssistantVM RE: Lot 1, Block 1, Etolin Subdivision A request has been received from Dale Dolifka, representing Jerry OeFoor on reallocating the debt due and owing the City of Kenai on the referenced property. This property was recently subdivided into three lots known as Lots 1A, 18 and 1C, Etolin Subdivision, First Addition, DeFoor Addition. A copy of this request is attached. Also attached to this memorandum is a letter of opinion from'Ed Warfle Real Estate Appraisals defining the market value of this property. Following is a summary of the value of the property and the proposed indebtedness: Lot 1A This lot would be released free and clear with the debt being reallocated to Lots 18 and 1C. Lot 18 Value: $73550 Proposed indebtednesss $69:000 (approximately 1/2 of total debt) Lot IC Vol us s $77,160 Proposed indebtedness: $69,000 (approximately 1/2 of total debt) /d Attachments L L LAW OMCH8 DALE DOLIFKA �1I J P.O. Box 1106 1. , KBNA1. ALABKA 99011 1907) 9e8-9464 •� ;,,�.... ��_y� September 30, 1986 CITY OF KENAI 210 Fidalgo Kenai, Alaska 99611 ATTENTIONS MR. WILLIAM BRIGHTON MR. TIM ROGERS Dear Mr. Brighton and Mr. Rogers: Please be advised that I have been retained by Mr. Jerry DeFoor to represent him with regards to the reallocation of his debt due and owing the City of Kenai (approximately $138,000.00) arising out of his purchase of a lot located in ETOLIN SUBDIVISION. The lot has been re - subdivided as Lots 1A, 1B, and.lC, ETOLIN SUBDIVISION, FIRST ADDITION. Our proposal for the reallocation of the debt due and owing on the above -described property would be as follows: 1. Lot 1A would be released to Mr. DeFoor by the City of Kenai free and clear of all indebtedness. At such time as Lot lA is released to Mr. DeFoor free and clear of the indebtedness, the amount due and owing on the three lots would be reallocated to Lot 1B and Lot 1C only. 2. I have enclosed a Letter of Opinion prepared by Mr. Ed Warfle indicating the fair market value of Lot 1B to be approximately $73,551.00. We would propose to reallocate one-half (approximately $69,000.00) of the amount presently due and owing the City of Kenai by Mr. DeFoor to Lot 1B. L is CITY OF KENAI ,,Od ea W o f 4"„ MG RIOALQO KENAI, ALASKA 99611 TMMNONE203- B October 1, 1986 rt MEMORANDUM. ... i .-...� TO: im Rogers, City Attorney ,�,��`"`/ Administrative AssistentQ�s" FRO Dane Gerstlauer, s = RE: Lot 1, Block 1, Etolin Subdivision 4 A request has been received from Dale Dolifka, representing Jerry Defoor on reallocating the debt due and owing the City of Kenai on the referenced property. This property was recently subdivided into three lots known as Lots 1A, 18 and 1C9 Etolin si Subdivision, First Addition, DeFoor Addition. A copy of this request is attached. c Also attached to this memorandum is a letter of opinion from'Ed Warfle Real Estate Appraisals defining the market value of this property. Following is a summery of the value of the property .t and the proposed indebtedness: .h Lot 1A a This lot would be released free and clear with the debt being .. reallocated to Lots 18 and IC. r Lot 18 Value: $739550 Proposed indebtedness: $69,000 (approximately 1/2 of total debt) Lot 1C _,....._..: Values $779160 Proposed indebtedness: $69,000 (approximately 1/2 of total debt) ,. /d Attachments a] d M ' t } a !� f ._...;.. .. t_.. . -; ±i tI�V i� DD a rmd i' September 30, 1986 Page 2 co ETOLIN SU ntinued BDIVISION/DeFOOR 3. indi The Letter of Opinion prepared by Mr. Ed Warfle cates that the fair market value of Lot 1C is appr real the oximately $77,162.00. We would propose to locate one-half (approximately $69,000.00) of indebtedness owed to the City of Kenai by Mr. regards proposal apprecia DeFoor to Lot 1C. Please review our proposal and contact me with to any questions you may have with regards to the . Your cooperation in this matter will be greatly ted. Sincerely, DALE DOLIFKA L L Se Wao Real54&* AAftatm& 35021 KENAI SPUR HIGHWAY 80LOOTNA, ALASKA 99669 (907) 262.7443 August 18, 1986 Lou Schilling Kenai, Alaska 99611 1101M1ILLOW STREET, SUITE 104 KENAI, ALASKA 99611 (907) 283.7190 Res Letter of Opinion concerning Lots 1B and 1C, First Addition — Defoor Addition, Btolin Subdivision Dear Mr. Schilling; As requested, I have conducted a'study of the above noted property for the purpose of reporting to you my opinion of their Market Value as of August 14, 1986. It is not the purpose of a letter of opinion to be all Inclusive concerning descriptions of the Subject or the analysis leading the appraiser to a conclusion of value. The most pertinent information utilized in the analysis is included in the following pages. Subject Lot IS is located 1 lot north of Barnacle Way and lying on the east side of Main Street Loop. It contains 23,726 sq. ft. and has 101.75 ft. of frontage on Main Street Loop. It is level at road grade and is serviced by electricity, telephone, city water and sewer and natural gas. Lot 1C is located 1 lot east of Main Street Loop lying on the north aide of Barnacle Way. It contains 23,742 sqe ft* and has 150.11 ft. of frontage on Barnacle Way. It is level at road grade and is also serviced by electricity, telephone, natural gas and city sewer and water. Both sites have good visual exposure from there respective travel arteries. The appraisal process' includes three approaches to value, the Cost Approach, Income Approach and Sales Comparison Approaches. Typically, in the valuation process of undeveloped land, the Sales Comparison Approach is the most reliable method of interpreting the actions of the market. L L i 1- 7 PURPOSE OF THE APPRAISAL i FAIR MARKET VALUE The purpose of the appraisal report is to convey the estimated Market Value of the Subject in Fee Simple Title as of August 14, 1986. Market Value is defined by the American Institute of Real Estate Appraisers and the Society of Real Estate Appraisers in their joint terminology handbook as follows: The most probable price in cash, terms equivalent to cash, or in other precisely revealed terms, for which the appraised property will sell in a competitive market under all conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeable, and for self- interest, and assuming that neither is under undue duress. Fundamental assumptions and conditions presumed in this definition are: w 1. Buyer and seller are motivated by self-interest. 2. Buyer and seller are well informed and are acting prudently. 3. The property is exposed for a reasonable time on the open market. 4. Payment is made in cash, its equivalent, or in specified financing terms. 5. Specified financing, if any, may be the financing actually in place or on terms generally available for the property type in its locale on the effective appraisal date. 6. The effect, if any, on the amount of market value of atypical financing, services, or fees shall be clearly and precisely revealed in the appraisal report. The above definition was acquired from the Appraisal of Real Estate Textbook, Edition 08. 7-7 L L , 1 ; n. • ;i ;. i .. It ii G HIGHEST AND BEST USE Highest and Beat Use, defined by the Appraisal of Real Estate Textbook, is "the reasonable and probable use that supports the highest present value as defined as of the date of the appraisal". As typically understood, the Highest and Best Use of a property must be a legal use, and most probable use that would yield the highest return in terms of money and other amenities. The Highest and Best Use study is conducted both on the site as if vacant and with improvements. This use must also consider the economic period of time which such use pertains to or if an alternative interim use would be more feasible or more profitable. Elements in the Highest and Best use study which must be considered separately are, is a use physically possible, legally permissible, financially feasible and have the maximum troductivity. In considering these factors the Highest and Beat Use study must pass all of these considerations. For instance it would not make any difference if it was physically possible to use a site for a particular purpose if it was not legally possible. The following is a result of a study concerning each one of these characteristics. Physically possible: This study is primarily performed on the site as if vacant because it primarily refers to a proposed construction situation. Considerations to be given to it being possible to construct a particular type of improvement are the type and quantity of utilities available, soil conditions, the configuration of the sight, ingress —egress and easements, right of ways, building setback lines or other restrictions placed on the site itself. The concept of physically possible also relates to other concerns such as legally permissible or financially feasible. In the case of the Subject site, it is of adequate size, has good soil conditions and all utilities necessary are available. Therefore the Subject meets the first test of Highest and Best Use. Legally ermissible: Legally permissible refers to does a particular use or a number of possible uses comply with the zoning code in affect, has a plat been filed with the Kenai Peninsula Borough or would a building or other improvements impede on easements, set back lines or road right of ways. Intended improvements must also comply with general law. For Instance it would not be either legal or feasible to construct a facility designed as a gambling hall if such activity was not permitted by law in the area. The Subject is legally permissible to be utilized for commercial purposes. Financially feasible: This study could be aimed at either the market in general or to a particular individual investor. For our purposes we are dealing with the market in general which involves a supply and demand study for purposes of indicating if there is such a present need in the community for such use. It is also necessary to identify if the level of economic rents and present and anticipated vacancy factors would permit the payment of debt service and provide a reasonable return to the investor. As a conclusion of my analysis, I have formed the opinion that the Subject's Highest and Beat Use is to be utilized for commercial purposes. ed *do R"e Waet� A4,� L a� RIGHTS APPRAISED UNENCMIBERED FEE SIMPLE TITLE Fee Simple Title refers to the owners complete rights inherent in Real Estate ownership. These rights include the right to use, sell, lease or alter the condition of the property. It must be understood that while in theory it is ideal to think of Fee Simple Title as having absolute unrestricted rights to the property; this is rarely the case. Government agencies may have the right to tax, condemn or otherwise cloud what we consider Fee Simple Title. The owner of the property may assign a portion of his rights through a lease to another party. The result is that the owner has a Leased Fee Interest and the tenant has a leasehold interest. The above definition is a combination of definitions acquired from both the 7th and 8th Editions of The Appraisal of Real Estate Textbook. L n CONCLUSION OF VALUE Comparable sales which have occurred in the Subject's general neighborhood indicate a range of $3.11 to $3.26 per square foot. The comparable sales range in size from 22,500 sq. ft. to 59,925 sq. ft.. The Subject's are considered to fall at the upper end of this value range. Subject Lot 1C is considered superior to Subject Lot 1B because of its more uniform shape and greater frontage on Barnacle Way. Lot 1B while being somewhat inferior to Lot IC is of adjusted width to length ratio to provide good utility for development. As a conclusion of my analysis, I have formed the opinion that the Subject's in Fee Simple Title as of August.14, 1966 had a market value of: Lot 1B 23,726 eq. ft. x $3.10 per sq. ft. $73,551 Rounded to $73,550 Lot iC 23,742 sq. ft. x $3.25 per sq. ft. • $77,162 Rounded to $77,160 —AEld * W Z-45; Edwin S. Warne, C.P.A. Appraiser [4 11%, - --I 5d WMA -¢�i�ur�eals CERTIFICATION I certify that this letter of opinion has been made in conformity with, and is subject to, the requirements of the Codes of Professional Ethics and Standards of Professional Conduct of the American Institute of Real Estate Appraisers. I certify that I have no personal interest in, nor bias toward, the Subject property, the Subject matter of this report or persons involved, and that my compensation is not contingent upon the value estimated. The undersigned has prepared the analyses and conclusions of this report. I have personally inspected the property identified set LOTS 1B AND 1C, FIRST ADDITION - DEFOOR ADDITION, ETOLIN SUBDIVISION I have not knowingly nor willfully omitted pertinent information and to the best of my knowledge, the statements made herein are true and correct. After consideration of the available data, subject to the Contingent and Limiting Conditions embodied in this report, it is my opinion that the Market Value of the Subject in Fee Simple Title, as of August 14, 1986, was; LOT 1B $73,550 SEVENTY THREE THOUSAND FIVE HUNDRED AND FIFTY DOLLARS LOT 1C $77,160 SEVENTY SEVEN THOUSAND ONE HUNDRED AND SIXTY DOLLARS I-E Edwin S. Warfle, C.W.A. Appraiser � getatc r�j�j�raleals L 7 0 FIRSTAC�\ EMLIN SUED. 24/2" amss Cap IMODRKR. BL IM Ikl 7 AN 000, LOT /-B" A� 726 CO /03. S is eo AS LOT PJ,742 s.f LOT /—C ZJ, 742 s.f. IA 0 a"'96 3,36 300 84)? k4ck'e C01046 (I Of 40 W4Y c, A I 7 f 10 a CERTIFICATION AND STATEMENT OF LIMITING CONDITIONS CERTIFICATION: The Appraiser certifies and agrees that: J. The Appraiser has no present or contemplated future interest in the property appraised; and neither the employment to make the appraisal, not the compensation for it, is contingent upon the appraised value of the property. 2. The Appraiser has no personal interest in or bias with respect to the subject matter of the appraisal report or the partici- pants to the sale. The "Estimate of Market Value" in the appraisal report is not based in whole of in part upon the race, color, or national origin of the prospective owners or occupants of the property appraised, or upon the race. color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised. 3. The Appraiser has personally inspected the property. both inside and out, and has made an exterior Inspection of all comparable sales listed in the report. To the best of the Appraiser's knowledge and belief, all statements and information in this report are true and correct, and the Appraiser has not knowingly withheld any significant information. 4. All contingent and limiting conditions are contained herein (imposed by the terms of the assignment or by the under• signed affecting the analyses, opinions, and conclusions contained In the report). S. This appraisal report has been made in conformity with and Is subject to the requirements of the Code of bofessiormrl Ethics and Standards of professional Conduct of the appraisal organizations with which the Appraiser is affiliated. 6. All conclusions and opinions concerning the real estate that are set forth in the appraisal report were prepared by the Appraiser whose signature appears on the appraisal report, unless indicated as "Review Appraiser." No change of my item in the appraisal report shall be made by anyone other than the Appraiser, and the Appraiser "I have no responsibility for any such unauthorized change. CONTINGENT AND LPHMG CONDITIONS: The certification of the Appraiser appearing in the appraisal report is subject to the following conditions and to such other specific and limiting conditions as are set forth by the Appraiser in the report. 1. The Appraiser assumes no responsibility for matters of a legal nature affecting the property appraised or the title there- to, not does the Appraiser render any opinion as to the title, which is assumed to be good and marketable. The property is appraised as though under responsible ownership. 2. Any sketch In the report may show approximate dimensions and is included to assist the reader in visualizing the prop. erty. The Appraiser has made no survey of the property. 3. The Appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in question, unless arrangements have been previously made therefor. 4. Any distribution of the valuation in the report between land and improvements applies only under the existing program of utilization. The separate -valuations for land and building must not be used in conjunction with any other appraisal and are Invalid if so used. S. The Appraiser assumes -that there as no hidden or unlippatent conditions of the property, subsoil, of structur M which would tender it more or less valuable. The Appraiser assumes no responsibility for such conditions, or for engineering which might be required to discover such factors. 6. Infomution. estimates, and opinions furnished to the Appraiser, and contained in the report, were obtained from sources - considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the Appraiser can be assumed by the Appraiser. 7. Disclosure of the contents of the appraisal report Is governed by the Bylaws and Regulations of the professional appraisal organizations with which the Appraiser is affiliated. ' g. Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to the property value, i; the identity of the Appraiser. professional designations, reference to any ptofessional appraisal orgimizatioas, or the firm with -- - - --- which the Appraiser is connected), shall be used for any purposes by anyone but the client specified in the report, the borrower if appraisal fee paid by same, the mortgagee or its successors and assigns, mortgage insurem consultants, professional appraisal --1- - - -- --- - -- - , organizations, any state or federally approved financial institution, any department, agency, or instrumentality of the United States or any state or the District of Columbia, without the previous written consent of the Appraiser; nor shell it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without the written consen. and approval of the Appraiser. 9.On all appraisals, subject to satisfactory completion, repairs, or alterations, the appraisal report and value conclusion ate contingent upon completion of the improvements in a workmanlike manner. 7 i; 35021 KENAI SPUR HIGHWAY fi SOLOOTNA. ALASKA 9960 (007)262.7443 EDUCATIONS UALIFICATIONS OF APPRAISER EDWIN S. WARFLE, C.R.A. 110 WILLOW STREET, SUITE 104 KENAI, ALASKA 99611 (907) 283.7190 A.A. Degres-Business Administratioa-Goldey Beacom School of Business s, S.S. Degree -Accounting -University of Baltimore VIII b IA .0 American Institute of Real Estate Appraiser -Course ;: .. FNMA Residential Seminar -April 13, 1978 II III - AIREA Capitalization Theory b Techniques I, and ° AIREA Case Studies AIREA Report Writing . ASSOCIATIONS AND DESIGNATIONS: American Institute of Real Estate Appraiers-M.A.I. Candidate ` Kenai Peninsula Board of Realtors Kenai Peninsula Home Builders Association t National Association of Review Appraisers C.R.A. Kenai Peninsula Borough Planning Commission Member of BUSINESS EXPERIENCES y September 1979 to present -Ed Warfle Real Estate Appraisals 1979-Appraiser-Frykholm Appraisals .. April 1977 through August March 1977-Merchandise Manager -Superior Bldg. Supply _ 1973 through TYPICAL ASSIGNMENTS: g j_. .. Residential, Commercial and Industrial Real Estate, Vacant Land Real Estate development consultation TYPICAL CLIENTELE: q. __. NBI Inc. National Bank of Alaska Alaska Statebank First National Bank of Anchorage Coast Mortgage Company ; First Interstate Bank of Alaska t LL. First Federal Savings and Loan Association Small Business Administration C. USARAL Federal Credit Union -- - - - - - - `- 1 City of Kenai Relocation Realty Service Corporation l First National Bank of Bartlesville Merrill -Lynch Relocation Management, Inc. Veterans Administration Seafoods of Alaska ;. Del Monte Corporation Fee appraising for various private individuals and construction companies. L E7 r 11 September 30, 1986 CITY OF KENAI 210 FIVALGO KENAI, ALASKA 80611 TELEPHONE 283. MB LM % W.- r del w 0A MEMORA U TO: iE% m Rogers, City Attorney FR s Dana Gerstlauer, Administrative Assiatent�J RE: Lots 7 and 89 Block 1, CHAP - W.M. Burnett The referenced lots were sold to William Burnett by a real estate contract dated June 28, 1982, subject to a first deed of trust with the State of Alaska. As shown by the attached letter, the amount owing on that deed of trust at the end of 1985 was $152,703.00. As of September 17, 1986, the amount owing to the City of Kenai was $40,844.15. Attached to this memorandum is a copy of an appraisal provided by Alaska Statebank which indicates a value on the property, with improvements, of $700,000.00. A comparison of current appraisals on lots adjacent to Mr. Burnett's indicate an average value of $2.75 per square foot, or $96,112.50 for Mr. Burnett's leased lots. Proposed indebtedness: $294,699.67 Estimated value of land plus improvements: $700,000.00 /dg AA -&.-I e.nn*C 1 0 44ILLAS ,APPRAISAL COMPANY REAL ESTATE APPRAISERS E CONSULTANTS BOX 102 MOMER. ALASKA 99603 PHONEi 235-854S 14 February 1985 William H. Burnett Evergreen Investors Kenai, Alaska 99611 RE: Lots 7 & 8 Block 1, Cook Inlet Industrial Park Kenai Recording District Dear Mr. Burnett: in accordance with your request, I have inspected the above referenced property for the purpose of providing you with this letter stating an opinion of value. An appraisal was completed on the above referenced property in August of 1984. The appraisal also included a 4,080 sq. ft. office building. The appraised value on this date was $600,000. With the recent economic development and growth that has occured in the Kenai area, a current appraisal of the subject would probably exceed $700,000. This letter is intended to estimate an approximate market value and should not be construed as a full and detailed appraisal. Thank you for letting us be of assistance to you. Please call if there are any questions. Sincerely, ZLC ( 1 Angelo Hillas Appraiser AJH:me fi - 1 •APPRAISAL FOR EVERGREEN INVESTORS BURNETT BUILDING LOTS 7&8,BLOCK 1, COOK INLET IND. AIR PK. KENAI RECORDING DISTRICT AS OF 15 DECEMBER 1983 L 14 AUGUST 1984 f J! �; ; r 44ILLAS APPRAISAL COMPANY REAL ESTATE APPRAISERS & CONSULTANTS iii SOX 102 HOMER, ALASKA P9603 PHONEs 235-8545 14 August 1984 f A . r 1 William X. ilr�it Evergreen Investors Kenai, Alaska 99611 Dear Mr* Burnett: 7-­ :j In accordance with yc= request, I have cixwleted an appraisal on the following described real estates :-:-.-Lots 7 G 8, Block 1# Cook Inlet Industrial Air Park Kenai Recording District ...... '41 • The purpose of this appraisal was to estimate the market value of a c=nercial office building located an the above referenced site. The appraisal report I have prepared contains descriptive !a=atioiiF* valuaticim data,, and the analysis and conclusions used in estimating the final value of the subject property. The opinion of value stated s herein is subject to the Contingent and Limiting CA=- diti= found in this report. The stated values are based upon current market tom- dLtions in the Kenai area. Based upon data contained herein, it is my considered opinion that the mariaet value of the subject is, as of December 15, 1983t .6XX M)NDPED TMAND DOLLARS ($6000000) 4 Please call If there are any questions. Am ;i i I; TABLE OF CONTENTS y{ PAGE } CONTINGENT AND LIMITING CONDITIONS 1 `} 1SUMMARY OF THE APPRAISAL 2 3 PURPOSE OF THE APPRAISAL PROPERTY IDENTIFICATION 4 PLAT MAP •SRss. 5T_ - zr ' NEIGHBORHOOD DESCRIPTION 6 1 NEIGHBORHOOD MAP .:.Nn...;.t, cS:;t@c•: JS•. y ':.fir „ r. •,... 1 C:'• PROPERTY DESCRIPTION S , ; LAND 8 & 9 ' BUILDING ad: or - • �� ::'.f ''• 10, 11 ,, & 12 r BUILDING SKETCH 13 .. PHOTOGRAPHS 14 ; {I AND BEST USE _ 15 ,HIGHEST PROPERTY VALUATION '•" "' ' .16 � �,�- , . .: a •. _ ..-� :, ,: . & 17 4y ' t".:LAND ,. _ COMPARABLE SALES 18 IMPROVED PROPERTY VALUATION 19 COST APPROACH •: 20 -.MARKET DATA APPROACH 21 ' INCOME APPROACH 22 & 23 AREA MAP 24 t:. PROJECTED INCOME & EXPENSES 25 iANALYSIS OF INCOME AND EXPENSE PROJECTIONS 26 - INCOME CAPITALIZATION 27 i1 RECONCILIATION AND FINAL VALUE ESTIMATE 28 n -r t CONCLUSION AND CERTIFICATION 29 ... " QUALIFICATIONS OF THE APPRAISER 30 AREA ANALYSIS 31 & 32 t t . S . Illt 1 AC AAAOAICAI I*/16AA4&6y �t l t. I 'j CONTINGENT AND LIMITING CONDITIONS !: The information contained in this report is considered to be from reliable sources, but Its authen• tkity and accuracy are not guaranteed. The comparobles used in this report have been Inspected :s t, by the appraiser but not all the data thereto hove been verified. As mentioned, however, the data come from sources considered reliable. ' No responsibility is assumed for matters legal in characteristic, nor is any opinion rendered j herein with respect to the title. The legal description as furnished the appraiser and used In the - valuation is assumed to be correct. i The dimensions as shown herein are considered reasonably accurate but should not be construed as exact. being �°' ,:. : �"'... '- ;'.•r : �, ..> " , 7 The property rights appraised herein are considered as being in fee simple. That Is a fee without limitations to any particular class of heits or restrictions, but subject to the limitations of eminent domain, escheat: police power and taxation. It Is the largest state of inheritance a person can have. = •'i. °f'• a, ;.. » ... �l;i ;ir.`' �. �t'a• ,'/' :,.. .•;« •... ,i�'.• ..,; e•..?:T,; r,.Tw.. ••'," �ti y.:'(.r '. •:i 1'hbi•.•i •' �'. '`:` 1 I '•..,A ..'•-. A. ,:�_�i.'•: _ .:_4''. l:'-�V4�-4.' to The various sketches and/or maps as contained herein are for illustration purposes only aid the and should not be construed as being exact. ;. i'•'.: z ' :;• ; reader All existing Dens and/or encumbrances -have been disregarded and the property has been _ appraised as though free and clear under reiponsible ownership and competent management. Typical mortgage financing as customarily secured for the type of property that is the subject of this appraisal is considered, as is a favorable mortgage position, 9 any, as shown in the report. The distribution of total valuation between land and improvements as shown in this tepeA opplta under the existing program of utilization. The valuation for either,. if used independently, may or may not be its correct market value. If any improvements were included in this appraisal, a careful visual inspection was mode, and - any deferred maintenance or apparent physical defects have been noted in the report. The appraiser, however, assumes no responsibility for any hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. No responsibility b assumed for engineering which might be required to discover such factors. t Possession of chit report, or a Copy thereof, does not carry with it the right of publication, nor 't may it be used by any but the addresses for any purpose whatsoever without the express written content of the appraiser. I - The appraiser. by reason of this report, is not required to give testimony or attendance in court with reference to the property described herein, unless prior written arrangements have been made eaerefot d 0 1 • SUMMARY OF THE APPRAISAL • t , . 0 i SUBJECT PROPERTY Commercial TYPE OF PROPERTY _. Kenai, Alaska LOCATI� 8 August 1984 DATE OF VALUATION Present Use R : ` HIGHEST AND BEST USE $ 516 , 4 37 p INDICATED VALUE BY COST APPROACH Not Applicable INDICATED VALUE BY MARKET COMPARISON _.;... - $ 538 , 772 INDICATED VALUE BY It APPROACH $600,000 FINAL ESTIMATE OF VALUE HILLAS APPRAISAL COMPANY C y :i PURPOSE OF THE APPRAISAL PURPOSE OF THE APPRAISAL This appraisal was requested by Mr. William Burnett for the purpose of estimating the current market value of an existing commercial building. Information pertaining to the subject property was obtained by visual inspection. DATE OF INSPECTION A number of inspections. EFFECTIVE DATE OF APPRAISAL 8 August 1984 VALUE DEFINITION For the purpose of this appraisal, the most appropriate definition of value is "fair market value" as defined in Real Estate Appraisal Terminology: The highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. APPRAASAL ASSIGNMENT The appraisal assignment was to estimate the fair market value of -an existing commercial building. The subject building was determined to be the highest and best use of the site, no unusual appraisal problems were encountered. The three usual approaches to value were utilized in forming an opinion of Fair Market Value; these are the Cost, Direct Market Comparison, and Income Approaches. .- --" -- -- ENCUMBERANCES ' This appraisal is based upon the assumption that there will be no encumberances other than the "typical" financing. 4 # 3 } SALLAS APPRAISAL COMPANY I a 0� L i n PROPERTY IDENTIFICATION COMMON NAME Burnett Building FEE SIMPLE OWNER Evergreen Investors LEGAL DESCRIPTION Lots 7&8, Block 1, Cook Inlet Industrial Air Park Kenai Recording District Third Judicial District State of Alaska PURPOSE AND FUNCTION OF THE APPRAISAL The purpose and function of this appraisal is to estimate fair market value of the fee simple interest of the subject and the proposed building. The function of this appraisal is to facilitate mortgage lending. TYPE OF REPORT REQUESTED Narrative - Full Market Value PROPERTY RIGHTS APPRAISED The legal rights appraised are fee simple ownership. �. 4 X L 4 1 4 .t. - i il f :f F . Plat Map za 4 ' .. A3; ` 3 0 `y • 3 Q 182.111 . c AA • •• • Oo !b. 9 c. - 5 C� a VILLAS APPRAISAL COMPANY o.� NEIGHBORHOOD DESCRIPTION The subject property is located near the Kenai Municipal Airport and just north of the central commercial district. There is good access over paved roads to the subject property. The subject site fronts on the north side of Beaver Loop Road between Willow Drive and Trading Bay Road. The new Airport Terminal building is about 3 blocks to the north. Improvements along this section of Beaver Loop Road includes the court building, library, police and fire departments and other office buildings. New and substantial commercial buildings have recently been constructed along Willow Street. There are oil related warehouse type buildings located within the remainder j I of this subdivision. The central commercial area is a few blocks h to the south where banking, postal services, hotel -restaurant, and other various commercial services are available. Improvements in the area are substantial and well maintained. i The trend is for industrial type development in the immediate subject area, with office -commercial type development along Beaver , {; Loop and Willow Streets. Since commercial industrial land is in short supply, there is - added attraction to the subject area. There are a few lots still .. available for lease or purchase from the City of Kenai. There are also some sites whicrh have been leased from the City, but have not been developed. t i"- With the continued growth and development in the area, property values should continue to -increase in the foreseeable future. :i o. it F• L 1. { I s =•�� FN6'1g_ hborhood Map' ._. memo _._._. memo m._._._._e_..._._.1 e�vD. nnuunnuunounenuu�� UNIDO _� ♦� 1 •••...••_ ?'���►1.1 •��� s :1 L1'1 woo AND ♦� SEARS - I 6 [CSC oa RT bwj __ - i►° sees •;iii%l..iii.. e •9� '1� �i •� 'I— K[NAI plan aeloa :.r LAwi� oN oRlvc rr R[DOYn -1 s- d s �• s•s= aft•'4# ;,.% ,, • '�•••• ; suuuuenmpnns�n � anunnnnnu aYl. i....t: - •.• j I1 i►�1"ur %�!�:.•.'.•..:. • a ♦_ a •u.= � M ......... .. �<r rY :i �i?`{:�:•, r{ t .�?i. �1'r :ti ��4} 1 1 1 . 1 . i 4PPRAISAL COMPANY �i 1 t PROPERTY DESCRIPTION ' LAND 1 The subject site is located on the north side of Beaver Loop } 1 Road and near the intersection with Willow Street. Additional details are: # SIZE & SHAPE ' The subject is rectangular in shape, 150' deep, 230' wide. TOTAL LAND AREA -. 34,950 sq. ft. (0.80 acre) r, ACCESS ;.s The subject fronts on Beaver Loop Road, a paved 2 lane highway. PUBLIC UTILITIES 4 Available public utilities include city water and sewer, t 1 natural gas, electric power, and telephones. ZONING -�' The present zoning is Light Industrial (IL) as described in the City of Kepai Zoning Ordinance: "The IL zone is designed to provide for the development of industrial and commercial uses which are mutually compatible and which either are of a type which has no nuisance effects I upon surrounding property, or may be controlled to prevent any uuisance effects upon surrounding property. New single and 2 family residential uses and some other nonindustrial I uses are excluded from this zone because an industrial area _ is a poor environment for such uses and because it is in- tended that land in this zone be reserved for industrial and commercial purposes. - A. Uses permitted: 1. Principal uses: - _- - - -- -- -1 a. All uses permitted in the CC zone; ` b. Airport related uses; c. Manufacturing, fabricating, assembling and storage of a character that meets _ development requirements listed below: d. Conditional uses as specified in Section r 21.76.140; 8 i i , 1 i ZONING (Cont.) B. PROPERTY TAXES PROPERTY DESCRIPTION (CONT.) 2. Secondary uses - as specified in the CG zone. Development requirements: 1. No uses shall be conducted in a manner which .is noxious or injurious to nearby properties by reason of the production or emission of dust, smoke, refuse matter, odor, gas fumes, noise, vibration or similar substances or conditions, provided that the restriction against noise shall not apply to uses located within 2,000 feet of the air field landing strips" 2. Minimums - Lot size 5,000 sq. ft., 60' width, 25' setback, side yard 151, backyard 20' The Kenai Peninsula Borough is the entity responsible for assessing and collecting property taxes. According to State Statute, all properties must be assessed at 100% of market value. In actual practice, the level is somewhat lower, particula;ly in the latter part of an assessment cycle. The 1984 assessed value is: Assessors Parcel 43-230-2300 Land Building TOTAL 54,300 311,200 365,500 The 1984 tax rate within the City of Kenai is 4.36 mills, total taxes will be $1,591.40. TOPOGRAPHY & SOYLS The subject site is fairly flat and level, slightly above road grade. The soils have a gravely base. The southerly half of the site has not been cleared, the existing building is located on the northerly half. . . -I. .. 7 7,7 7; f PROPERTY DESCRIPTION BUILDING - The subject is a one story office building of split faced concrete ?„ block and flat trussed roof construction which has been load engineered to accept a second level. Construction details are 1 as follows: SIZE 50 feet by 87 feet.(with offsets). GROSS AREA {` 4,080 square feet. r.;E. DATE BUILT 1978 ' I CONSTRUCTION AND FOUNDATION i 4 Split faced concrete block outer walls, poured concrete ` perimeter footing and foundation walls, plus concrete footing pads under the bearing partition. ni. " HEIGHT • t 12 foot from floor slab to roof, with 9 foot ceiling. :i ROOF : The flat roof is supported by 18 inch TGI roof trusses. Roofing is 3/4 inch tounge and groove decking with 12 inch fiberglass insulation and 3-ply built-up fire retardant roofing. EXTERIOR WALLS AND WINDOWS Exterior walls are apre-colored split faced concrete block with artificial rock trim in the front. Windows are double pane with bronzing on the exterior pane. INTERIOR WALLS AND CEILING The interior partitions are 2 by 4 inch wood stud wal: insulated wit:: 31I inch fiberglass, lined with 5/8 ind t sheetrock, taped and finished with either high grade `... paneling, wallpaper, or an enamel paint. r The four offices and computer room have side by side glass panels running frcm floor to door height. The 'a ceiling is an acoustical the drop ceiling throughout i i • �i i 9 '.i it �j A. .t J r � y n PROPERTY DESCRIPTION (CONT.) BUILDING FLOORS Concrete slab over a plywood subfloor. High quality double pad carpet in the President's Suite, medium grade anti -static carpet in all areas except for vinyl the in the restrooms and painted concrete in the service and janitorial rooms. . HEAT AND AIR The building is heated by a gas fired forced air system. It is a complete air change system with air cleaning, humidifying and temperature control capabilities. There is a separate and independent system for the computer room. PLUMBING There are two two -fixture restrooms for clients, two three -fixture restrooms for employees, a double sink in the employee lounge, and a service sink in the janitor's room. ELECTRICAL Flourescent lighting panels spaced adequately througghout. Track lighting in areas of emphasis and exterior li=hting on the building. A built-in speaker system with 21 ceiling speakers, amplifier, and tape player. Additional phone jacks and electrical outlets throughout. These is 220 volt electrical service to the computer room. DOORS Exterior doors are steel insulated doors in the rea= of the building and a glass door in front. Interior d=rs are solid core birch doors. FIRE ALARM SYSTEMS A Halon 1301 fire system has been installed in the :--ult and computer room. Smoke detectors and heat sensor: are placed throughout the building. SECURITY ALARM SYSTEM The system consists of a master control with batter- booku=, � 11 ' f VILLAS APPRAISAL COMPANY _ X L lj il I' PROPERTY DESCRIPTION (CONY.) BUILDING - -- - :- ; SECURITY ALARM SYSTEM -... 3 one interior and one exterior alarm, tamper proof cabinet alarm with red light, one white protective circuit light, one exterior remote control, and two magnetic operating switches which secures the three exterior doors, 19 windows, wault and vault door. J� dr VA__ The vault is of reinforced concrete block construction with .;. a two-hour Mosler vault door. 4 FIREPLACE x The President's Suite has a gas -fired fireplace with a entire wall is recessed floor area. The fireplace and U ; faced with artificial rock. } ROOFED ENTRY The front entry has a 10 foot by 25 foot roofed entry way. SIDEWALKS There are 4 foot sidewalks on the north side of the build- the back door on the south -='. ing, in the rear and leading to side. PARKING The north 60 feet of the site and the area behind the the lot line have been paved. building to within 10 feet of 12 f -11 E' PHOTOGRAPHS ' (S �� �t� ��.. F'^ r �H!>i.�'v:; F r�c.:..2' .. v;.'. •. '..• ::.: '• ram: •''t''Y• �.�'+•� Crxlc��+��' �{+ fit id } FRONT OF BUILDING ) i 1 - -- ----...-- L-- a - j ,{ REAR OF BUILDING lei F i •1/1 1 AC A000AICAI (t r . ` r i .. • _ ._t- taut tczx7q{prmx�. �.nrsiws U2! ntdl'-?'...���____`^__-_'-a.4t^.1_:)t T_l. .S - f � HIGHEST AND BEST USE The highest and best use of a particular property is defined = as the most profitable and likely use to which a particular property can be put over a given period. The subject site is zoned Light Industrial. There is a wide 4.., ` range of permissable use under this zoning classification, from residential to industrial use. The land lease with the ' cit of Kenai, however, restricts urea e b Y g y prohibiting resi- dential. By nature of the zoning requirements, the subject :i site, if unimproved, is best suited for either commercial or light industrial. Although the subject site is zoned light industrial, the pre- dominant development along Beaver Loop Road is commercial and ji public type buildings. The subject building is consistent and .4 in harmony with the zoning requirements and the existing land use. The subject building design is attractive and contains many quality features lacking in most of the existing office buildings. The present use is considered the highest and -best use. L 1 � '}t ? PROPERTY VALUATION (CONY.) LAND !� ' a ANALYSIS OF SALES - In considering the market conditions for commercial land, - - all of the above sales were sold by either sealed bid or negotiation with the City of Kenai, the seller. _ =.3 Sales S-5 and S-6 both front on the Kenai Spur Highway, the main thoroughfare through Kenai and are considered f to establish the upper limits of value with a selling price ranging from $430 g g .per square foot. After adjust- ment for time, the indicated price paid is over $5.00 per sq. ft. 'I Sale S-2 is located on a side street lacking the traffic and exposure of the other sales comparables and subject. This sale is considered as establishing the lower limit of value. Sales S-1, S-3, and S-4 are considered the most similar in location. The indicated price paid per sq. ft. ranges from $2.74 to $3.30, the higher price is also the latest sale. } CONCLUSION • After careful analysis of the market data analyzed, con- sideration of factors influencing value, adjusting for time, the opinion of the subject value is $3.50 per sq. ' ft. The subjects total land value is: ` J. . _. � 34,950 x $3.50 m $122, 325 .17 I 4i MILLAS APPRAISAL c AMPAMV �- 1 A e •� 11 '! I } 1 i f ��saaa ``# 4 Al Is Z i / �• iS.. r�r- 1�181"T r� n .• . Sales J, `� •• fie • ' wew ?4j'Qi6 . (y lit ;�Q 4 TR. 6 Tel . .�. • p`•t^p• '9- fit 1'--� air• t • " . � p�,�i, �-1 ,4 kLEY ' IF E a) VILLAS APPRAISAL COMPANY a S V r IMPROVED PROPERTY VALUATION The three most accepted methods of valuing improved real ;1 estate are the Cost Approach, Income Approach, and the _ Market Approach, +� COST APPROACH The Cost Approach measures value by estimating the re- production cost of the building and site improvements. p s 1 From this is deducted any accrued depreciation. Finally the land value is added for the total estimate. MARKET APPROACH i The approach to value is based upon comparison to recent sales of similar type properties. f` INCOME APPROACH The Income Approach estimates the value of an income producing property through its net income. The gross ' maximum income is estimated, the normal operating ex- + ,{ penses are then deducted. The resulting net income is then capitalized into an indicated value. l + ;l v 1 i n r s a Y -I I eP COST APPROACH . % In the cost approach to value, the estimated cost of the im- provements less any depreciation, is added to the value of the land to obtain an estimated property value. if the land value estimate is sound and the cost to construct is accurate, the value indicated by the cost approach can be a valid indicator of value. This approach assumes that a knowing buyer will pay no more for a property than the cost for which he could re produce that property assuming no serious delays. " , Cost data was obtained from the cost manual provided by Marshall, Valuation Service, publishers of a reputable national cost manual, adjusted to local conditions. COSTS NEW, BUILDING 4,060 sq. ft. 0 $90.00 $3670200 isAttached Entry 70500 Fire a Alarm System 15,000 $389,700 DEPRECIATION An estimated 4% physical depreciation has accrued 15,588 DEPRECIATED BUILDING VALUE SUMMARY OF COST Building $374,112 Site 122,325 Site Improvement 20,000 $516,437 7 .1 8 I � � a a' f MARKET DATA APPROACH A means of estimating the value of a property is by comparison _,'•- ,- to recent sales of similar properties. This basic premise is j that a given property is worth no more than a similar property can be purchased for. A search of the market did not reveal any recent transactions �.i on which a meaningful comparison could be made. The market data approach is not reliable unless there are improved sales similar to the subject in size, location, age, and producing - -" i similar net income. ° ' - Information from the market is used throughout this report in both the income and cost approaches. ..t i A � d { 1 • i1 e .• l t t 1 -r .. •� jf � j 1 E %! 21 "ILLAS APPRAISAL COMPANY ai r. :F � SIB is i1 (i 4, .4 . 1 6 � t 1 INCOME APPROACH In the Income Approach to value, the net income the subject property is capable of producing is capitalized into an in- dicated value. The first step in this process is to estimate the subject's income potential. The anticipated operating expenses are then deducted to produce a net income. The gross potential income of the subject is based upon what other similar properties are renting. A survey was made of the Homer area, the results are listed below. RENTAL SURVEY S . Ft. Services No. Building Size Rental Provided R-1 Log Gift Bldg. Various $1.00 Heat R-2 Spur Plaza Bldg. Various 1.25 All Utilities R-3 Locko Bldg. Various .75 Heat R-4 Professional Bldg. Various .75-$1.00 All Utilities R-5 Benco Bldg. Various 1.25 All Utilities R-6 Trading Bay Various 1.10 All Utilities DESCRIPTION OF COMPARABLES R-1 The Log Gift Building located near the southwest corner of the Spur Highway and Beaver Loop Road. There are 4 tenants in this average quality building that was built in 1981. R-2 The Spur Plaza was built in 1983-84 and has a total of 8 tenants in this better than average quality building, located to the west of R-1. A new portion is now under construction behind tho.existing building. R-3 The Locko Building is frame concrete block and was built about 20 years ago, has been well maintained. There are a total of 7 tenants. Site fronts on the Spur Highway near the junction with Willow Street. R-4 The Professional Building is a two story metal frame structure approximately 18-20 years old. The site fronts on willow Street just north of the junction with the Spur Highway. There are a number of tenants with offices of varying size, the sq. ft. rental rates vary accordingly. f' VILLAS APPRAISAL COMPANY L X i, 1 i INCOME APPROACH (CONT.) DESCRIPTION OF COMPARABLES (Cont.) R-5 The Benco Building is located on the south side of the Spur Highway. This 2 story office building had its 2nd story added about 5 years ago. Good quality, has multiple tenants renting varying amount of space. R-6 The Trading Bay office complex is located on Trading Bay Road to the east of Beaver Loop Road. CONCLUSION OF FAIR MARKET RENT The comparables presented are the major office complexes in the central portion of Kenai. The indicated rental range varieab from 750 to $1.25 per sq. £t. The lower rents are for the older buildings. The better quality and newer rentals range from $1.00 to $1.25 per sq. f t. Based upon comparable quality, an equitable rent for the subject would be $1.25 per sq. ft., however, the subject has a number of quality features that would command a higher rental. These quality features include the Presidents Suite with the recessed area, fireplace, rock wall. There is also the computer room that has controlled atmosphere, Salon fire system and the fireproof valut. An equitable rental for the subject is $1.75 per sq. ft. L t 1 i —11 u i ] ft 1 i; 'f Y' Y -• -- .. i i ` r I N. ••••\ ham 10 SN IF TR l� oa0;: • ' �yY Ir�,'^ 5C� , l. TR. 6 •. r ----- =aaaaaa v B -- —• AT �Al �v 43 jj// „ W Rental4Ila E ut �•-w•r; �zQT�si i fi •A I VILLAS APPRAISAL COMPANY L L i u R PROJECTED INCOME &EXPENSES _ ..i:....: GROSS POTENTIAL INCOME 4,080 sq. £t. @ $1.65 $6,732 Month Annual - $6,732 x 12 mo. _ $80,764 . � Less Vacancy -5% 4,040 EFFECTIVE GROSS INCOME $76#744 PROJECTED EXPENSES t Property Taxes 1,750 Insurance 6,400 - - ` Utilities 5,154 Management 3% 2,300 Repair 6 Maintenance 1,875 f tf 17,479 -"i j $59,265 t, 4 e it ;f z 4 f 'jjt •�S ANALYSIS OF INCOME AND EXPENSE PROJECTIONS INCOME The levelsoss income of similaretypeates are buildingsaindtheoactual Kenai area. Ad- justments have been made for location, quality of build- inge, etc. The vacancy estimate allows for change of tenants, re- decgrating, etc. At present, there is a very low vacancy rate. FIXED EXDENSES The fixed expenses are those costs which would typically have to be paid whether the subject building is occupied or vacant. These expenses generally consist of the follow- ing$ Property Taxes - Total taxes are actual, based on current assessed values and tax rates. Insurance Premiums - Actual premium paid. OPERATING EXPENSES Utilites - Actual amounts paid the prior year for water- aewyr, natural gas, and electricity. Manacement - Based upon 3% of the Effective Gross Income. Repair & Maintenance - Based upon h% of depreciated building valve. 26 tj fill 1 AG AANf'4AICAI /•'%un4•.4 M, ry I � i �r r .ti INCOME CAPITALIZATION Income capitalization is a process used in estimating the value of a property based on its net income. The potential income the subject is capable of producing has been estimated, the operating expenses deducted, resulting in the net operating income. This income is then capitalized into an indicator of total value for the entire building. An overall capitalization rate is developed through the Ellwood Mortgage Equity capitalization technique. This method is a com- posite rate which includes typical and available financing, the rate of return desired by a "typical" investor, and the esti- mated holding period. The following are considered appropriate for the subjects 1. A typical and probable financing package of 75% loan to value ratio, a 25 year term, an 11-12% interest rate. 2. An ownership, or holding period, of la years. 3. It can reasonably be assumed that rising property values and rental rates will be greater than the physical depreciation incurred, an increase in property value of 15% is projected over the holding period. 4. The return on equity is based primarily upon the rental market, the degree of risk involved, the availability of financing, and the subject property itself. The prevailing market conditions indicate a 14% rate as being equitable. The resulting composite capitalization rate is ll%- The rate is then divided into the net operating income for an indicated value. Net Operating income - 59,265 ; 11% $538,772 The indicated value by the income Approach is $538,772 27 1? i "ILLAS APPRAISAL COMPANY RECONCILIATION AND FINAL VALUE ESTIMATE For the final value conclusion, the estimates from the different approaches are summarized. COST APPROACH Building $374,112 Site Developments 142,325 TOTAL $516,437 MARKET DATA APPROACH Direct market comparison. Not utilized, insufficient data available on which to base an opinion. INCOME APPROACH Capitalized Income $538,772 CONCLUSION Most emphasis was placed upon the capitalized income approach to value. This would indicate a final value of $538,772. However, it is noted that Lot 8, or half the subject land, is not utilized for the operation of the subject building. This portion is still wooded with spruce. As a consequence, this half of the site is considered surplus, its.value added to the capitalized income. Capitalized Income Approach $538,772 Surplus Land (Half of subject site ll6'x150')= 17,400 sq. ft. @ $3.50 60,900 $5990672 Rounded to $600,000 A L 28 j EL CONCLUSION AND CERTIFICATION _J I certify that this appraisal report has been made in conformity with, and is subject to the requirements of the Code of Profession- al Ethics and Professional Conduct of the American Institute of Real Estate Appraisers. t I certify that I have no personal interest in, nor bias toward 1 the subject property, the subject matter of this report or persons involved, and that my compensation is not contingent upon the value estimated. The undersigned has prepared the analy- ,.h. ! sis .and conclusions to this report. identified I have personally inspected the property as: Lots 7 & 8, Block 1, Cook Inlet Industrial Air Park Kenai Recording District I have not knowingly nor willfully omitted pertinent information r , and to the best of my knowledge, the statements made herein are true and correct. After consideration of the available data, subject to the general ..�...• .� and special limiting conditions and assumptions embodied in this P g P report, it is my opinion that the Fair Market Value of the subject property, as of 15 December 1983, is: SIX HUNDRED THOUSAND DOLLARS ($600,000) Angelo J. H llas Appraiser Al VILLAS APPRAISAL COMPANY AREA ANALYSIS (CONT.) Transportation services include paved highways, daily scheduled air services and barge transportation. Air taxis provide charter air service, cabs and rental cars are available for local trans- portation. There are two local weekly newspapers with a daily paper from Anchorage. There is one local radio station, additional stations and T.V. reception is good from Anchorage. I.Climate is always an important factor in Alaska. Local temperatures range from -20 degrees during the winter to 75 degrees in the summer with occasional short periods of warmer or colder weather. Annual precipitation averages 20 inches of rain and 68 inches of snow. With the expansion of the natural resource exploration and the chemical plants in the North Kenai area, the Kenai area should have a economic and which will result in good population growth an ever-increasing demand for real property. 32 L. 7 I� W. M. Burnett & Asrociater, Inc. Ftr i j Box 4309 Kenai. Aleelre99811 t'. fl0712834M :t { W.M.11URNER.oree10ee1 ALLWAURNW.8eerelery•7reetere► September 21, 1986 �. City of Kenai 210. Fi:dalgo ,� .. Kenai, Alaska 99611 .;... ATTN: Mr. Tim Rogers, City Attorney ll i Gentlemens Per the attached letter, we are requesting that the :n City of Kenai assist in our obtaining an equipment loan from Alaska Statebank by being willing to subordinate into a third position on our Lots 7 4 & 8, Block 1, CIIAP. A ' We appreciate your assistance in this matter. Very trul yours, -. W. M,' U NETT & ASSOC TES, INC. W, M. Burnett, E, A. President .. .. WMR: bslb _... Enclosure: Alaska Statebank Letter 9/29/86 I I . �.. ,.. L ' Alaska StaLeuank Drawer 910, Kenai, Alaska 99611 9071283.7542 September 29, 1986 City of Kenai 210 Fidalgo Street Kenai Alaska 99611 Attn: Dana Gerstlauer Property Management Dear Ms. Gerstlauer: Alaska Statebank is seeking a subordination of the City of Kenai's position on the following described real property: Lots Seven (7) and Eight (8), Block One (1), according to the Plat of Cook Inlet Industrial Air Park, filed under Plat No. K--1448, Kenai Recording District, Third Judicial District, State of Alaska. Buyer: W. M. Burnett and Assoc., Inc/Evergreen Investments The loan with State of Alaska (let Deed of Trust) has a year and (1985) outstanding balance of $152,703.00. The proposed loan with Alaska Statebank is $101,152.52. Enclosed is a copy of a'fes appraisal as of August 14, 1984 Indicating a value of $600,000.00, along with an update opin- ion dated February 14, 1985 increasing the value to $700,000. As of 1986, the Borough assessed the land at $94,600.00 and improvements at $316,000.00, totalling $410,600.00. Should you require any additional information, please contact me at 283-7542. Thank you in advance for your considerations in this matter. Sin rely, rods Chivers Vice President/Branch Manager cc: William Burnett L L L 7 -1 1 �+ t a E .J Suggested by: Planning 8 Zoning Commission I CITY OF KENAI ORDINANCE NO. 1167-86 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA AMENDING THE OFFICIAL KENAI ZONING MAP BY REZONING PARSONS HOMESTEAD i3 (BY PRELIMINARY PLAT) FROM SUBURBAN RESIDENTIAL (RS) TO RURAL RESIDENTIAL (RR) DISTRICT. WHEREAS, KMC 14.20.270 establishes a procedure to amend the Official Zoning Map of the City of Kenai, and WHEREAS, a rezoning petition has been received from MSM Partnership, property owners within the designated area proposed for rezoning, and WHEREAS, the Kenai Advisory Planning do Zoning Commission has conducted the required public hearing on September 10, 1986, and WHEREAS, as a result of that public hearing, the Planning 6 Zoning Commission recommend approval of the requested rezoning contingent upon the preliminary plat designating the area to be Parsons Homestead 63 be duly recorded and filed. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1s Subject property consisting of those lands depicted in Exhibit "A'" are hereby rezoned to Rural Residential (RR) District. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 1st day of October, 1986. ATTEST: Janet Whelan, City Clerk OM WAGONER, MAYOR First Readings September 17, 1986 1 Second Readings October 1, 1986 Effective Dates November 1, 1966 L Ll i W-1 W-1 1 � i A CITY OF KENAI „Oil edla" 4 4"„ M011I0AIM IIENAI,ALMM 00611 T=P110NEM-7'&35 MEMORANDUM TO: Kenai Advisory Planning do Zoning Commission t. .. FROM: Janet Loper, Planning Specialist '.;;. SUBJECT: Ordinance 1167-86s Amend Kenai Zoning Map by Rezoning Parsons Homestead S/D- from Suburban Residential (RS) to Rural Residential (RR) District DATE: September 11, 1986 BACKGROUND Applicants Legal Description: Existing Zonings Proposed Zoning: ;. Existing Land Use Plan: Proposed Land Use Plan: MSM Partnership ' Box 466 Soldotna, AK 99669 1 Parsons Hometead #3 by preliminary plat Suburban Residential (RS) Rural Residential (RR) Medium Density Residential Low Density Residential i; DISCUSSION -_ - - -- --- This property came before the Commission as a part of a resubdivision of the entire area, one half to be Inlet Woods (existing), the other half to be Inlet Woods West. As the plat for Inlet Woods West was never finalled, ` the name reverts back to the original at the request of the former and potential owner, Mrs. Ruth Persons. It is Mrs. Parsons request that the property also reverts back to the same zoning designation prior to the sale _ and development of both parcels. ill q F i p PARSONS HOMESTEAD #3 Rezoning Ordinance 1167-86 Page 2 The current Land Use Map designates the area as Medium Density Residential and would require an amendment to Low Density Residential. The proposed Land Use Map already designates the area Medium Density Residential due to the availability of city water & sewer, however, as it has never been adopted, the amendment is necessary. The City of Kenai has had a mandatory hookup ordinance for sewer for some time and has a proposed ordinance which is similar dealing with water hookups. While this poses no problem at the time of the petition, it does suggest that some time in later years, as parcels are sold which are close to these utility stubouts, individual purchasers will be returning to the Commission for rezoning back to the Suburban Residential (RS) designation. It should be kept in mind that the 7200 sq ft designation for Suburban Residential is a minimum only, there is no maximum lot size suggested. The homestead could still be developed with large lots and remain Suburban Residential (RS) zone. The Commission held a public hearing on September 10th. No comments or objections were heard. The Commission recommends approval of the rezoning, however, at the suggestion of Councilman Wise. the Commission added the 17) stipulation that the rezoning be contingent upon the preliminary plat be finalled. A copy of the unapproved minutes pertaining to this item area attached. L L CITY OF KENAI ADVISORY PLANNING AND ZONING COMMISSION RESOLUTION NO. PZPL, A RESOLUTION OF THE ADVISORY PLANNING & ZONING COMMISSION OF THE CITY OF KENAI RECOMMENDING (APPROVAL) (DENIAL) OF TH RE VESTED ZONING (LAND USE PLAN AMENDMENT) SUBMITTED BY Appl cant) FOR AA-Itae-PW� -9� WHEREAS, the Commission finds the followings 1. The subject property is currently zoned.:g2wiy r 2. The present land,ype plan deognation of the subject property is 3. The proposed effected Pro PLAN DESIGNATION v for the 4. An appropriate pub is hearing as required hoe been conducted by the Commission on ,X) /ff& S. That the following additionnaal" facts have been found to exist: NOW, THEREFORE BE IT RESOLVED, by the Advisor lann4todeheetnaWi-City Commission of City of Kenai that the petitioned ONINf- NDMEN 5is hereby (RECOIM�IENOEO) (NOT RECOMMENDED) Council—. PASSED by the Advisory Pla=6u oning Commission of the City of Kenai, Alaska, this 6g&day of„�'9 . Q' t Chairman 0 ATTEST: Planning c etary 8/64 n n 1. PETITIONER: AND 2. ADDRESS: PHONE; 3 61A}TTr., CITY OF KENAI REZONING APPLICATION DATE: August 13, 1986 MSM Partnership Post Office Box 468 Soldotna,.Alaska 99669 (907) 28374218 4. LEGAL DESCRIPTION: Tracts One and Three of Parson's Homestead No. 2 S. PRESENT ZONE: Suburban Residential (SR) : 6. PROPOSED ZONE: Rural Residential (RR) 7. INTENDED USE AND/OR REASON FOR REZONING: Farming/gardening, and general agricultural utilization of the 3 to 5 acre tracts. 6. REZONING CHECKLIST: Be map b. signatures Co deposit/advertising fee ($100) d. application form or letter LM 7 r•i 1 i4 ,i l� .y L Ara of +o 9x T � I rezonir�� it 1 C 1• tl• tw l It ;,•VO I kip I ` ; 1, , • 1 _ �I t fi LJ g 3.15 As. 3 U LEI i ~ •10 O W SOON I �j :5.2-4 Ae. / "•o• a/w BLOCV- d i. .. ► `� 530' jJ `• r 6 0 4.01 At. I9 5.53 A•. 25 32 31 (NM'91'ao'w A10.01, �4 i �S 1 i NO lark •«u91kk+ { !•11Mk• . Ml 99aa9 t s0on k, y/k 111"T99 ,r rook wl/s a•In stele •, t•r 911,• va Al, fl,a till OF rtr�l 00 lrt afro i .. •trrsuLA scausil. w.•w• er• ��� eM •at0at•las. sm. •eloolne. •r •aan o.0 o► su•w r • las• t •� 9 - i i'. 1. .' L r I 1 -a Suggested bys Administration RESOLUTION NO. 86-89 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT FOR THE PROJECT MANAGEMENT, COORDINATION, ENGINEERING INSPECTION SERVICES TO WM. J. NELSON & ASSOCIATES FOR THE PROJECT ENTITLED "KENAI BOATING FACILITY" FOR A NOT -TO -EXCEED AMOUNT OF $789000. WHEREAS, the City of Kenai received a proposal from the following firm on February 1, 1986: Wm. J. Nelson & Associates WHEREAS, the Public Works Department feels that it is in the best interest of the City of Kenai to award this project to Wm. J. Nelson h Associates. WHEREAS, sufficient funds are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that a contract be awarded for project management, coordination, engineering inspection services to Wm. J. Nelson & Associates for the project entitled "Kenai Boating Facility" for a not -to -exceed amount of $78,000. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st day of October, 1986. TU-M--WAUOVff—,MAV6R ATTESTS Jane Whelan, City C er Approved by Finances C 4 Written by Public Works: � 1 A. B. C. D. 1 N AGENDA KENAI CITY COUNCIL - REGULAR MEETING SEPTEMBER 179 1986 - 7:00 PM PLEDGE OF ALLEGIANCE ROLL CALL 1. Agenda Approval 2. Consent Agenda *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. PERSONS PRESENT SCHEDULED TO BE HEARD (10 Min.) 1. Ron Garzini, City Managers Seward - School Bond Issue 2. Representative, Federal Express - Lease of Airport Terminal PUBLIC HEARINGS 1. Ordinance 1159-86 -Increasing Rev/Appns - Boating Facility and Transfer $3249622.41 Within Port Facilities Fund a. Res. 86-88 - Boat Facility - Award Construction Contract 2. Ordinance 1161-86 - Amending Kenai Municipal Code - Standard Procedures for Commissions/Committees 3. Ordinance 1164-86 - Amending Zoning Map - Sprucewood Glen S/D 4. Ordinance 1165-86 - Increasing Rev/Appns - Library Grants for Wildwood Correctional Center - $129000 a. Substitute Ord. 1165-86 - $209500 5. Ordinance 1166-86 - Increasing Rev/Appns - Rec Center - Donation from Elks Club - $500 6. Res. 86-87 - Change Street Name - Sunrise to Watergate, VIP S/D MINUTES 1. *Regular Meeting, Sept. 3, 1986 4 63 E. CORRESPONDENCE i. 1. USA Coalition, United Seafood Americanization - Limiting Foreign Fishing & Processing in U.S. Waters 2, *Sen. Murkowski Fisheries Issues F. OLD BUSINESS 1. Airport Bar Insurance, Rent Reduction 2. C. Gintoli, Architect Insurance G. NEW BUSINESS 1. Bills to be Paidt Bills to be Ratified 2. Requisitions Exceeding $19000 3. *Ordinance 1167-86 - Amending Zoning Map - Parsons Homestead 4. Ordinance 1168-86 - Increasing Rev/Appns -Purchase Railroad Ties for Airport Triangle Park - $8t500 Public Hearing, Ord. 1168-86 b. Approval of 2 PO's - Airport Triangle Park 5. Confirm Election Judges - Oct. 7, 1986 Election 6, Old Town Committee Report 7. H.A.S. Project - Const. Unlimited Change Order #5 - $4,151.81 b. Change Order #6 - $109960.74 8. Approval - Change Order #1 - Robing Kensitze, Eagle Rack - Doyle Const. 9. Approval - Kenai Ct. - Inspection & Survey Wm. Nelson 10. Engr. Disc: - Replace Old Street Lights H. REPORTS 1. City Manager 2. City Attorney 3. Mayor 4. City Clerk 5. Finance Director 6. Planning & Zoning 7. Harbor Commission B. Recreation Commission 9. Library Commission I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD (5 Min.) ADJOURNMENT ASS 0 r- Q I.J i"' KENAI CITY COUNCIL, REGULAR MEETING, MINUTES I SEPT. 17, 191169 7s00 PH KENAI CITY HALL MAYOR TOM WAGONER PRESIDING PLEDGE Of ALLEGIANCE A. ROLL CALL Presents Jose Hall, Rey M686188, Chris Monfor, John Wise, Tom Wagoner, Tom Ackerly, Sally Bailie Absents None A-1 Agenda Approval 8. Mayor Wagoner asked that item G-6 (Old Town Committee Report) be deleted. b. Mayor Wagoner asked that Airport Safety Zone/Tie Downs/Taxiway Inspection/Surveying/Testing, distributed this date, be added as item G-11. 0. Mayor Wagoner asked that Flight Service Station, distributed this date, be added as item G-12. d. Mayor Wagoner noted substitute Ord. 1159 (item C-1) and a ub1titute Res. 96-88 (item c.1a) were distributed this date. Agenda was approved by unanimous consent. A-2 Consent Agenda MOTIONS Councilman measles moved, seconded by Councilman Ackerly, to approve the Consent Agenda as submitted. Notion passed by unanimous consent. B. PERSONS PRESENT SCHEDULED To BE HEARD B-1 Ran Garzinit City Manager, Seward - School Bond Issue Mr.Garzini introduced Roger Sampson, principal of Seward Elementary. Roger Sampson, Box 1546, Seward. There is a bond issue On It is the Oct. 7 ballot for an elementary school In Seward. prototype, the same as others in the Peninsula. It is a 500 student capacity, it will meet the needs of the students. The estimated cost - $8,940,000 - is better then they have They have a 430 student capacity now and have not started the impact an Seward. They have spoken to many recently.The Peninsula is in a conservative mode. groups Regarding the question, what will it do to taxes. They can Only estimate. The best information they have from the Borough and the State is that State reimbursement will be 7 0%. that is less than I mill. On a $100, BID home,It would be $9 per year. Some OOPIO feel w have overbuilt that they did not the schools with move than basic needs, have sufficient information. They are also questioning the 70% figure. He feels this is a reasonable figure. They are in a serious overcrowded position. They have supported a choole in the Borough for 10 years without receiving any. If they do not get this, they will have to go to portables. He asked that people give them the opportunity to answer I M ;i c, I I 1 KENAI CITY COUNCIL SEPT. 1?, 1986 Page 2 questions before making decisions. They know they have an uphill battle. The citizens of Kenai and Soldotne may make or break this. I Mr. Carzini explained, the mill rate for the City of Seward Is 3, it is the 2nd lowest, next to Kenai. Even though Seward was designated the jail site last year, he said no to the school then because it was not definite. There are still people who feel Seward may not get the jail. People will get kicked out of jails in the States, by court order the State must build the jail. The minimum employment to open the facility is 186, 307 total jobs. It will be a $45 Million facility, there will be a 25% increase in employed people in Seward. The school district beaea its figures on number of employed people. The average salary in Seward is low, lees then $1,500 per month. The average salary for a jail person is $2,100 per month. These people have career Jobe, so they can get mortgages, credit, etc. They are going from 100 over capacity to 300 over capacity, not including any other growth - the marine industrial center, Seward fisheries, coal terminal, Diamond Shamrock. Alaska Statutes aay schools are a State function, we need legislators in a frontal role to meet the basic formula for school debt. B-2 Representative, Federal Express - Lease of Airport Terminal Brian Bell, Federal Express. He asked Council to reconsider their vote on apace at the terminal. They are a profitable operation, they are 7th largest airline in the United States. He distributed material for review. Mayor Wagoner explained, at the time they expanded the airport, Council made a policy decision that there would be no over-the-counter service for freight. It would be outside the terminal. There were a tremendous number of commuter airlines. Council received pressure from FAA to provide service, they had to set this policy. Mr. Bell explained, they consider what they handle urgent express, not freight. The majority of items would be small - couriee envelopes or overnight box. Mayor Wagoner asked, what is the maximum allowable size? Mr. Bell replied, 150 ibs., Kenai would be up to 70 Ibs., no restricted articles. They plan to bring in their own aircraft, but will use local at this time. They would like to use the vacant apace in the terminal, they will hire local people. They ere in Juneau and Fairbanks now, they plan to be in airports throughout Alaska. They plan to link Alaska with the rest of the United States. The people working there are airline people, well -dressed and professional. Councilman Ackerly suggested Council could change policy. The other airlines do this. If we have e policy, we are not following it. Mr. Bell explained, the majority of the freight will be picked up by courier, the counter would be convenient. Mayor Wagoner noted SouthCentral has a freight terminal, anything of any size goes there. Councilwoman Bailie noted there is a freight facility next to the airport. She asked if they had explored this. Mr. Bell replied yes but for visibility and convenience, this would be better. They are not handling large parcels. He added, moot other airlines do this now in the terminal. �d L L 1 KENAI CITY COUNCIL SEPT. 17, 1986 Page 3 Council agreed to have s resolution for the Oct. 1 meeting. Councilwoman Monfor noted as long as they handled smell items, there would be no problem. It would become a problem if they started to handle large items. Mr. sell replied, at this time they would be using local airlines they would have to remain within their restrictions. When they get their own airline, they will have to move. Councilmen Measles said when they mode the policy decision, that was the main reason for building the terminal. We should stop the others from dealing with large items. Councilman Ackerly suggested, if we needed the extra epsce for additional airlines, they would get priority. Mr. Bell agreed. Mayor Wagoner noted this was a problem in the past, they wanted to take an area already in uue. FAA hno nnid we have to accommodate everybody. Mr. Bell explained, they are a 121 Operator, is major airline. OHL is not, they are freight forwarders. Federal Express has its own airline. Councilman Measles noted Flying Tigers is a major airline but they use the freight terminal. Mr. Bell explained, they only transport large materiel. C. PUBLIC HEARING C-1 Transfer9$324,622.418Within s. /port sFacilities - Boating Facility fund6 a. Res. A6-88 - Boat Facility - Award Construction Contract MOTIONS Councilman Ackerly moved, seconded by Councilwoman Bailie, to adopt the ordinance. NOTION, Amendments Councilmen Ackerly moved, seconded by Councilwomen Bailie, to amend the motion with substitute Ord. 1159-86 with proper numbers. VOTE, Amendments Motion passed by unanimous consent. There was no public comment. VOTE, Main Motion as Amendeds Motion passed unanimously by roll cell vote. C-1a Reg. 86-88 - Boot Facility - Award Construction Contract MOTIONS Councilmen Ackerly moved, seconded by Councilwoman Monfor, to adopt the resolution. There was no public comment. L F Y r:' •a j KENAI CITY COUNCIL SEPT. 17, 1986 Page 4 MOTION, Amendment: Councilman Wise moved, seconded by Councilwoman Bailie, to amend the resolution by deleting 05 and reduce the amount by $34,000. Councilmen Wise explained, this Is a summer activity, it Is not required, it is subject to vandalism. Councilman Ackerly replied, even in summer it gets some darkness. It offers some security, it would be nice in winter for patrolling, it is not blocked off by gates. If we don't do it now, we will not do it. Mayor Wagoner added, there are many periods of time in the dark. If you are off-loading fieh, it would be dangerous on the dock without lighting. VOTE, Amendment (Failed): Yost Wise Not Hall, Mesalse, Monfor, Wagoner, Ackerly, Bailie Councilwoman Bailie noted 039 $120,000, Do we need showers? She fait the cost for rest rooms was high. MOTION, Amendment: Councilwoman Beilie moved, seconded by Councilman Wiest to delete /3. r_ Councilman Wise suggested this is going to provide new camping sites for the cannery workers and the problems related to that. There will be infringement on private property. Mayor Wagoner explained, when the fishermen come in on their boats, they have been out for a long time. In Seward one of their biggest incomes is the showers. We would not have a problem with the campers if they had to pay. Councilman Wise noted it ie not in the Plana to charge. Mayor Wagoner suggested this be deleted and re -bid separately after review. Engineer Nelson explained, if there was a change order, the contractor would not have to honor this price. Public Works Director Kornelie added, we could not bid separately on this till the job was complete. Mr. Nelson reviewed the plans. There would be 4 showers, temperate water, automatic shut-off. This is included because the major coat is the septic system, the flow of showers does not increase the flow in the septic systems. The rest rooms are prison -type fixtures to minimize vandalism. It may increase campers, this is a Council decision. It would only be approximately $201OD0. The doors are self -closing. Public Works Director Kornelie noted the Harbor Commission met this date, this is their recommendation. Councilwoman Bailie noted we are catering to local fishermen for them to refuel and dump fish. She doubted that they would need showers, they can go home. There are private individuals that went to build camping facilities. VOTE, Amendment (Felled): Yee: Measles, Wise, Bailie No: Hall, Monfor, Wagoner, Ackerly L M -11 t KENAI CITY COUNCIL SEPT. 17, 1986 Page 5 Councilmen Wise asked if the $34,000 for lights was for the Parking lot. Engineer Nelson replied yes, it does not serve the dock. There are lights on the dock. This may be used for fish haulers. The reason for inclusion to if they are handling fish away from the dock in the dark, it would be 24 hour day. Mayor Wagoner suggested they could put lights on the fork lift. MOTION, Reconsideration, Amendments Councilman Measles moved, seconded by Councilwomen Bailie, for reconsideration of the tot amendment (item 05). VOTE, Reconsiderations Motion passed by unanimous consent. VOTE, Amendment (Passed)t Yes, Hall, Measles, Wise, Wagoner, Bailie Not Monfor, Ackerly C-2 Ord. 1161-66 - Amend. KMC - Standard Procedures for Commisaione/Committees MOTIONS Councilmen Ackerly moved, seconded by Councilwoman Monfor, to adopt the ordinance. MOTION, Amendments Councilmen Wise moved, seconded by Councilmen Ackerly, to amend the ordinance, Section 6 of the Procedures, as requested by the Clerk in memo dated Sept. 16, 1986. VOTE, Amendment: Motion passed by unanimous consent. Councilwomen Bailie noted the Landscape Bd. hoe been added as a separate section of the Code, why wasn't the Council on Aging? There was no public comment. Councilwoman Bailie noted the Landscape Bd. and Council on Aging were discussed at the Sept. 3 meeting. If it is neceaasry to include each board, then Council on Aging should be included. Councilmen Wise explained, the ordi Identified those established by Code, Council on Aging s not in the Code. Clerk Whelan added, the Landscape Bd. and other Commissions listed in the ordinance are specified in the Code, the Council on Aging is not specified In the Code. If this ordinance passes, it will refer to all Boards, Commissions and Committees, whether in the Code or not. Mayor Wagoner suggested the Council on Aging could be added to the Code after the ordinance is passed. Councilwomen Sallie noted, the Council on Aging is required to have 01 r f Y �•;�4..� la +i•�I f, i i rs KENAI CITY COUNCIL SEPT. 17, 1906 Page 6 strict requirements, they should be in the Code. Clerk Whelan suggested passage of this ordinance to clean up the Code, than preparing a separate ordinance tainting to Council on Aging. Councilwomen Bailie asked that an ordinance be prepared for the Oct. 17 meeting. She asked that Council come to the meetings of the Council on Aging. They deserve to be a commieelon. Councilmen Ackerly asked If all commissions were advisory. City Manager Brighton replied, P&Z is not, they have Code provisions. VOTE, Main Motion as Amendedt Motion passed unanimously by roll call vote. ^-1 n-A 4 "4-86 - Amend. Zoning Mop - Sprucowocd Glon S/0 man Ackerly moved, seconded by Councilwoman Bailie, C the ordinance. me no public comment. nun Wiett explained, there were negotiations between tiling and the residents, it wee worked out. passed unanimously by call call vote. 65-86 - Increas. Rev/Appne - Library Grants for d Correctional Center - $12,000 batitute Ord. 1165-86 - $20,000 man Ackerly moved, seconded by Councilwoman Bailie, t the ordinance. dmentt man Wise moved, seconded by Councilman Ackerly, to he ordinance with substitute submitted in the lent t passed by unanimous consent. toe no public comment. lwoman Bailie asked, how did they plan to provide to to Wildwood7 Librarian Deforest replied, the and contract says we will purchase and have books Wildwood will provide transportation 4 times per A volunteer goes over 2 times per week at this time. ,000 grant is for a girl who does inter -library loan library. Motion so Amendedt passed unanimously by roll call vote. L NO 0 L KENAI CITY COUNCIL SEPT. 17, 1986 Page 7 C-5 Ord. 1166-86 - Inoreas. Rev/Appne - Roe Center - Donation from Elks Club - $500 MOTIONt Councilmen Hell moved, seconded by Councilmen Ackarly, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-6 Rea. 86-87 - Change Street Name - Sunrise to Watergate, VIP MOTION: Councilman Ackerly moved, seconded by Councilwomen Bailie, to adopt the resolution. PUBLIC COMMENT: a. Chris Reynolds, Kenai. She noted at the time of the change to Sunrise notifications were not sent to property owners. There was no objection because nobody knew about it. People said they sent out petitions, no one hoe seen them. One day while she was at work the name was changed. There ere 6 streets in the Kenai/Soldotna area with the name Sunrise. According to the Borough, the street is legally Watergate, they have never changed it because the City did not have a public hearing. Mayor Wagoner explained, the City had 7 public hearings at Council, 1 et P&Z.. There was a petition. If the Borough has not acted, Administration should check on it. Mre. Reynolds asked why the people were not notified. Mayor Wagoner replied, all public hearing: are advertised. Mre. Reynolds asked why we used a name already used 6 times. Mayor Negoner explained, it is not in Kenai. He added, this to the procese we always use. Mrs. Reynolds said she never sew the petition. She noted Borough Code says, new or changed street names shall not duplicate names in the Borough and shall be adopted by the Borough. b. Don Aeee, Kenai. He subdivided the property. Mr. Malone named the streets after ships, water, fish, etc. He came to P&Z and Council regarding this. It le still listed at the Borough as Watergate. He still owns land on Watergate. C. John St. John, Kenai. He lives on the street. When he came to Council last summer regarding road improvements, he said he lived on Sunriese The City Manager did not know where that was. He asked that it be returned to Watergate. VOTE Motion passed by unanimous consent. L r, KENAI CITY COUNCIL SEPT. 17, 1906 Page 6 D. MINUTES D-1 Regular Meeting, Sept. 3, 1986 Approved by Consent Agenda. E. CORRESPONDENCE E-1 USA Coalition, United Seafood Americanization - Lie Foreign Fishing & Processing in U.S. Waters Councilman Ackerly asked if the Mayor could write i of support. Council agreed to the request. E-2 Sen. Murkowaki - Fisheries Issues Approved by Consent Agenda. F. OLD BUSINESS F-1 Airport Bar - Insurance, Rent Reduction Sandy Daniels, Box 4285, Kenai. She distributed material to the Council. Councilman Ackerly noted, if the City reduces her lease, all the others will ask too. Renee Daniels, Kenai. Everyone aloe in the airport Is paying $1.75. She is asking $2.20, well above the othere. Councilwoman Nonfat noted with the rent reduction it is still $600 more then the nearest bid. This is a time of economic distress, we should help them se much as possible. Each situation has to be weighed on its own merits. Councilman Measles said he had no problem reducing the rant because it was on a bid baeia, rather than appraisal. It was a short term lease, it a piree 1n August. It is not the some as the other counter apace in the airport. MOTIONt Councilman Measles moved, seconded by Councilwoman Bailie, to approve the request to reduce to $2.24 eq. ft. for the 10 month period to June 1987. Mayor Wagoner noted Council should review the memo distributed 3 months ago regarding redetermination. If this passes, it Is a bad precedent. VOTE (Paeeed)t Yest Hall, Measles, Nonfat, Bailie Not Wise, Wagoner, Ackerly F-2 C. Gintoli, Architect - Insurance Carmen Gintoli, Kenai. He disagreed with Atty. Rogers' memo, page 2, loot sentence, "The message to clear, given the Increased number of claims there has been a resultant Increase in architect/engineer insurance premiums." Mr. Gintoli disagreed with this. His premium Is put in a reserve account. If they are losing money on architects. L L. .. "1 -1 KENAI CITY COUNCIL SEPT. 17, 1966 Page 9 they will not sell him $25,000. The minimum would be eqnot insure If they of insurance goingup, he were losing thoughtmoney. Regarding the question they said last year it would not. Atty. Rogere explained, it has not been assessed this year. Mr. Gintoli said the Borou h hoe reduced insurance requirements on its projects over �1 Million. They feel they ere doubly insured. Anything he can be sued for, so can the city. HEA and federal contractors do not require insurance. He just wanted to inform Council that he could not cover insurance. He will still pursue State and Borough contracts that are larger. Councilmen Ackerly asked, whet is the contract amount? Mr. GlntolL replied, it in reduced from $1 Million to $500,000. Councilmen Ackerly asked if he had considered bonding. Mr. Gintoli replied, he doesn't know if bonding is available. Councilman Hell asked, if we have a different engineer and inspector, does the insurance and when the builder ends and the design begins? Atty. Rogers replied, the courts construe insurance contracts of adhesion, they normally find in favor of coverage. They could sue the city, engineer and architect. The architect would be held to a lesser standard then the city. Then the city could go against the architect/engineer. The court would hold the ineurence would have to pay if the engineer/architect wee liable. Councilmen Hall asked, even if the contractor work had run out? Atty. Rage re replied, there is usually a time limit. He added, this is a Council policy decision. There is no State requirement for insurance regarding this. Councilman Ackerly asked, if the building fails, could the city go beck to the architect? Atty. Rogers replied, it could, but we could be warranting plane to contract. When we accept, we warrant. Mr. Gin to explained, if he has Insurance this year but does not 2 years from now, the city does not have coverage. Insurance has to be in effect when the claim is made. Bill Nelson, Engineer, Kenai. Regarding the question if the city has an architect and he has insurance at the time, completes his work and the city hires another architect to inspect. If the let architect drops his Insurance, the city he e no recourse against him. The new architect is only liable for errors he makes in inspection. MOTIONS Councilman Ackerly moved that the City continue with Carmen Gintoli as inspector on the flight Service Station, without insurance. Atty. Rogers suggested Mr. Gintoli state there are no defects. Mr. Gintoli replied, "Not to my knowledge." MOTION, Correctedt Councilman Ackerly moved, seconded by Councilwoman Baille, that per Atty. Rogers' memo of Sept. 3, 1986, the City delete the malpractice Insurance. a t t$ ,t F KENAI CITY COUNCIL SEPT. 17, 1986 Page 10 Public Works Director Kornalis said when Mr. Gintoll come to him asking to lower ineurence, he had a request from other engineers. At the present time we have a proposal for a float plane basin. We have $1 Million coverage required. Should we leave that so is? Mayor Wagoner replied, that subject Is not before the Council. Motion passed by unanimous consent. G. NEW BUSINESS G-1 Bills to be Paid, Bills to be Ratified NOTIONs Councilman Ackerly moved, seconded by Councilman Hall, to approve the bills as submitted. Motion passed by unanimous consent. G-2 Requisitions Exceeding $1,000 MOTIONS Councilman Hall moved, seconded by Councilman Wise, to approve the requisitions as submitted. Public Works Director Kornelie explained, the tat 2 items on the list are discussed under item G-4b. They should be deleted for an appropriating ordinance. Also, regarding the HEA bill, he distributed material this date explaining this. Councilman Ackerly asked if the railroad ties have accelerated in price. Mr. Kornelie replied, that is maximum coat, $4.50 hundred cut, $6.50 each. Councilman Ackerly asked if they were new. Answer - no. Councilwoman Monfor said she had thought we would get them in Palmer from Alaska Railroad. She had a problem buying these when we could buy them in Alaska. Councilwoman Bailie explained, with the railroad ties in the State there would have been a lose. Quality was doubtful, these are treated and sold as landscape. There is an option from a company in Sterling, their product is not treated. Mr. Gintoli felt it would not hamper the project if they were not treated. They hoped to finish by this fall. 300 man hours have been donated. It will take 2 weeks to ship. The freight from Anchorage to Kenai may be deleted, if it was for Rotarians. $4,500 is freight to Kenai. Mr. Kornelia added, these are called post ties, they are used by landscape gardeners outside. Councilman Wise asked Administration to explain the sewer aervice to Woodcock residence. Public Works Director Kornelie explained, during the H.A.S. project, the sever service line was left off. A man came in and asked it to be put in, Council said yea. This is the coat. It is in the water table, the work hoe not been done yet. NOTION Amendments Councilwoman Bailie moved, seconded by Councilmen Ackerly, to omit the let 2 items from the list. i M KENAI CITY COUNCIL SEPT. 17, 1986 Page 11 VOTE, Amendmente Motion passed by unanimous consent. VOTE, Mein Motion as Amendedt Motion passed by unanimous consent. G-3 Ord. 1167-86 - Amend. Zoning Map - Persona Homestead Approved by Consent Agenda. G-4 Ord. 1166-86 - Incress. Rev/Appne - Purchase Railroad Ties for Airport Triangle Perk - $8,500 e. Public Hearing, Ord. 1168-86 b. Approval of 2 PO's - Airport Triangle Park MOTIONt Councilman Ackerly moved, seconded by Councilman Measles, to Introduce the ordinance. Motion passed by unanimous consent. MOTION, 2nd Reading& Councilwoman Bailie moved, seconded by Councilwoman Monfor, to have 2nd reading of the ordinance this date. Motion passed by unanimous consent. MOTION, Adoptt Councilwoman Bailie moved, seconded by Councilwoman Monfor, to adopt the ordinance. There was no public comment. Councilman Ackerly asked, whet was the difference between $8,500 and the local rough cut. Councilwoman Monfor replied, $300 with the $6 ones. Councilman Ackerly asked, whet is the Sterling coat? Architect Gintoli explained, he suggested 6x6 Spruce, untreated, $1.10 lineal ft., 8 ft.long. That is last year's coat. He noted he has used them on his house and they hold up dirt. Motion passed unanimously by roll call vote. G-4b PO's for Airport Triangle Park MOTION: Councilwoman Bailie moved, seconded by Councilwoman Monfor, to approve the ties and freight. Motion passed by unanimous consent. -- .&5 - . -_-_.,_ L i A 4 KENAI CITY COUNCIL SEPT. 17. 1966 Page 12 0-5 Confirm Election Judges - Oct. 7, 1986 Clerk Whelan read memo distributed thl and ealarise. MOTIONS Councilman Ackerly moved, seconded by approve the judges as submitted. Motion passed by unanimous consent. G-7 H.A.S. Project - Const. Unlimited a. Change Order 05 - $4,151.81 b. Change Order 06 - $10,960.74 Mayor Wagoner noted Info items 08 and 016 relate to this subject. G-7s Change Order 05 MOTIONs Councilmen Ackerly moved, seconded by Councilmen Hall, to adopt Change Order 05. Councilwoman Bailie noted 01, 04, 05, & 06. Are we relocating boxes to another location? Should they pay? Should we be reimbursed for thew wires, service key box, and valve box riser? Public Works Director Kornai is replied, we should be. He explained, at the beginning of the project, Engineer Nelson spoke to the poet office and got locations for the boxes. It was verbal. Last year they said they were in the wrong place, we had to move them. They ate where they went them now. He said he could bill for these items, but we have no proof they are the guilty party. Council agreed he should attempt to bill. Motion passed by unanimous consent. G-7b Change Order 06 MOTIONs Councilman Hall moved, seconded by Councilwoman Bailie, to approve Change Order 06. Councilwoman Dellis asked, what are the materials? Public Works Director Kornelis replied, our contract Bays if we have a design that requires certain materials and we change, we are obligated to purchase these materials. This is 48 Pt. of 16 in. culvert, 2 vane, fire hydrant parts, man hole sections, pipe, gate valves, insulation end freight for this. We can use these things. Notion passed by unanimous consent. G-9 Approval - Kenaltze Ct. - Inspection.& Survey - Wm. Nelson Engr. I r r 1' i I� KENAI CITY COUNCIL SEPT. 17, 1986 Page 13 MOTION$ Councilman Ackerly moved, seconded by Councilwomen Beilie, to approve the change order. Motion passed by unanimous consent. G-10 Disc. - Replace Old Street Lights Councilman Ackerly noted every light in Inlet Woods is out. Councilmen Measles added, all the lights at Seers were shot out with a 88 or pellet gun. Also Woodland lights. Mayor Wagoner explained, this goes back to a discussion with Frank Arbolovaky, City Electric. Lights were ordered and not used. He thought we had agreed to use them for Airport Way. Public Works Director Kornelie referred to the materiel In the packet. He explained, the lights cannot be used anywhere else without modification,. GE will not take them beck unless we pay 50% of cost plus shipping. City Electric has sent the City a bill for finance charge, and other charges. If City Electric had ordered what we asked for, we would have no problem. There were no exceptions. GE can provide what we specified, but it would be an additional $850. Councilmen Ackerly deferred to Atty. Rogers. He did not want tan$8 pay r,000eiitied9up0in legal costs- Mr. Korneliewill have move th said, he is asking for Council reinforcement of hie letter. He noted Airport Way lights are different. Councilmen Hell asked, if we buy thin for $50,000 we will spend $8,000 to fix. If they do not ineta11, will it be lees then $50,000? Mr. Kornelie sold City Electric said we had paid them, now they ray we have not. They are asking for $51,000 to deliver. Our bid is for them to be fully operable. Mayor Wagoner said labor would be deducted, but most is in the fixture. There woe a breakdown of cost end labor at the meeting with Mr. Arbelovaky. He added, City Electric cannot put them on HEA poles. Mr. Kornelis said they can. HEA will maintain them. MOTION$ Councilmen Hell moved, seconded by Councilwomen Monfor, to spend $8,850 to upgrade the light fixtures. Mayor Wagoner said they are not ours to maintain till we buy them from City Electric. He suggested offering City Electric a settlement. Councilmen Hall asked, if we go out for a labor bid, will they charge more? Mr. Kornelie replied yes. MOTION, Additions Councilmen Hall moved, with consent of second, to offer to buy $8,500 in parts and Administration negotiate with them to install the lights. Councilwomen Monfor asked, where will we put them, and could we sell them? Mr. Kornells replied, the lights in Woodland, Redoubt Terrace and other place. will not be repaired. L 7 . j KENAI CITY COUNCIL SEPT. 17, 1986 Page 14 Mayor Wagoner suggested Administration, HEA and City Electric come up with something solid for a proposal at the Oct. 1 meeting. Councilman Ackerly said when we pay additional money, we any we are wrong. MOTION, Withdraws Councilmen Hall, with consent of second, withdrew hie motion. Council agreed to Mayor Wagoner's suggestion. G-11 Airport Safety Zone/Tie Downs/Taxiway Inspection/ Surveying/Testing MOTIONt Councilwoman Bailie moved, seconded by Councilwomen Nonfat, to adopt the motion se recommended in Public Works Director Korn el is' memo dated Sept. 17, 1986. Motion passed by unanimous consent. G-12 Flight Service Station Public Works Director Kornelis explained, normally Public Works would handle this without going to Council. Our specs require certain products but allow substitute equal or better. When this was awarded, a contractor came to Council and said we could not. But thla floor substitute is equal or better. He wanted Council to review this because of the statements of the other contractor. Councilman Measles said there may be a problem with the other contractor. Architect Gintoll referred to the last page, 2.01-8. We had tight specs using Floating Floors. Anyone who could meet this would be acceptable. Mr. Kornelie added, the contractor had said T63 can only install steel floors. This is a different company with aluminum floor. Council took no action. H. REPORTS H-1 City Manager City Manager Brighton spoke. a. He distributed a research report on fiscal condition of U.S. cities. b. He will not be at the Oct. 1 meeting, he will be attending the International City Management Meeting. o. Councilwoman Monfor asked if he had any information on the new grocery store. Mr. Brighton replied, they came to P8Z with request for additional specs. That to all he knows. d. Councilwoman Mentor asked if Administration was working with the Chamber of Commerce and talking with Carr's regarding the Mall situation. Mr. Brighton replied, 0 �.1 7 4 -� I �a l� i4 Ali r } ii u b .:u Q KENAI CITY COUNCIL SEPT. 17, 1986 Page 15 they did not go to Anchorage. Mayor Wagoner added, some of the Chamber Board told them it was none of their business regarding private enterprise. Councilwoman Monfor noted anything we can do in the economic downturn is good for the City. Mr. Brighton noted 2 gentlemen came down from Carr's to see property the City may have for development. They said they had to do something to save the Mall. Interplay with the Mall owners hoe them stymied. Mayor Wagoner added, the Chamber did not went to get in the middle of this. e. Councilwoman Sallie asked if FAA had approved the teat rite for a camper park. Mr. Brighton replied not yet. Councilwomen Bailie noted the man is very interested in a camper park facility. He wants Marathon as an alternate. Mr. Brighton said Dept. of Agriculture has indicated they went to continue, he did not know how long. If we use the site, we will have to kick them off. Councilwoman Belli e asked if they had done anything. Mr. Brighton replied, Parke Dept. had participated with labor on the site. Mayor Wagoner said we should find out how much City labor we furnished and bill them. He said he would write them a letter. Council agreed to the suggestion. H-2 Attorney's Report Atty. Rogers spoke. a. He referred to the collections report in the packet. b. He referred to the golf course report in the packet. He finds there hoe been compliance. Council could valve further compliance or reserve the City right to enforce what has not been completed. He had Legal Aset. Sutcliffe do the research because of Atty. Rogers' Involvement. He is asking for Council guidance. Mr. Morgan would like the $10,000 bond beck. MOTION1 Councilmen Ackerly moved, seconded by Councilwoman Bailie, based on Page 3, last paragraph of Atty. Rogets' memo dated Sept. 17, 1986, we return f10,000 bond with the stipulation it be completed according to lease. Atty. Rogers asked if a written letter that he will complete be sufficient. Council agreed. Notion passed by unanimous consent- C. Atty. Rogers will be at Municipal Lew Officers meeting and will miss the Oct. 19 meeting. No one will cover for him. The reason is the diminished budget and Atty. Cuesk has declined to do it. d. Councilwoman Bailie noted we have the ability to make signs and suggested we put eigne up on Tinker directing to the golf course. This le the only municipal golf course in Alaska. t i... f �t t r �1: ztt` t L KENAI CITY COUNCIL SEPT. 17, 1986 page 16 o. counsel atoallimeetings.lwoman We have a legslie said we laeet�.eel that has passed the bar. He can give opinions in writing, he could give verbal opinions. Every attempt should be made to have legal counsel. Atty. Rogers said he hoe tried not to miss meetings. Regarding another attorney sitting in, there are few that have the expectNould Those that do are litigating with the City o decline for other reasons. The legal Best. hell a job description that does not cover this, he has expressed a desire not to. He is needed in the office and is entitled to comp time when he cameo to meetings. Covering Council meetings by a substitute was not provided for prior to hie taking office. He started this. If Council orders him to have counsel here, he will talk to Mr. Sutcliffe. He clearn nction with Atty. Rogers now. Councilwoman Bailie said we will have 2 new Council people and a new Mayor. This is one time we meet as a body, this is where we make decisions. We need representation of our attorney in case the need arises. Regarding comp time, every employee does not go to work after Council meetings? City Manager Brighton replied, they will take time, but not the next day. Mayor Wagoner noted, it is generally the next day. Mr. Brighton said it has to be within the same week. Councilwoman Bailie said Nathan Callahan did attend when he was legal east. Wee that not in his job assignment? Atty. Rogers replied he f asked him to. He felt uncomfortable. He was hesitant to give legal advice, he had not passed the bar. Mayor Wagoner said if Council confirms this, he will do it. Councilwoman Monfor said Oct. 15 meeting will have new people here. It is unfair not to have legal representation. Mayor Wagoner noted the Clerk sweets the new people in. Council agreed to have legal representation at the Oct. 15 meeting. e. Councilwoman Beille noted the memo on Commission/Committee secretary (item H-2). She hea difficulty that it has to be complicated. We contract snow removal without complications. She talked to a secretarial Service regarding equipment. They said they could handle it easily without City equipment, just type the minutes and submit. Council voted on this. There is one secretarial service in Kenai, 2 in Soldotna. Why does this have to be complicated? Why did we not receive something like this with snow removal? Atty. Rogers replied, he is not saying we cannot do it (in memo, item H-2), he is cautioning Council. It has to do with the nature of the position. Mayor Wagoner said it goes along with Legal Aset. Sutcliffe attending without it being in the job description. If a person is seeigned duties above his anbemployeetofnthe City,lit is easecretarydtohtakeis S °o! minutes. It is no problem to come in and take minutes bhtoblmsyCouncudthere could 0 i Sawehad �J DOWNED _ -- -- -_. L KENAI CITY COUNCIL SEPT. 179 1906 Page 17 no problem contracting snow removal. There are liabilities with that, more than with a secretary taking minutes oP meetings. Councilmen Hell noted we are.contrecting by the hour, it to easy to construe es a laborer. Councilwoman Bailie said we went meetings covered and minutes taken. Councilman Hell suggested we could say we will pay a certain amount 89 a lump sum. It would be easier. We are paying someone to work by the hour like employees and calling them a contractor. Councilwomen Monfor noted most job descriptions say additional as assigned. Kelly Girls is the largest in the Notion, they take minutes and get paid without difficulties. She requested that by the time new Council members are on board, we have a secretary or know the reason why. Council agreed to the request. H-3 Mayor Mayor Wagoner said he attended a meeting with Councilmen Measles on Sept. 11 regarding the Regional Highway Plan. The Sterling Hwy. is projected to be rebuilt in 1990, the Spur Hwy. in 1991. They propose a Kenai Peninsula Caucus. The objective would be a strong single voice to promote State highway projects. It has no bearing on City priorities, it may help the City. H-4 City Clerk Clerk Whelan noted the memo (H-4) in the packet regarding the joint meeting of Legislstore, Comm/Comm 8 Council. Council agreed to schedule it after the Nov. elections. H-5 Finance Director None H-6 Planning 8 Zoning None H-7 Harbor Commission None H-8 Recreation Commission None H-9 Library Commission Library Comm. Chairman Swerner reported Sept. 22-26 is Banned Book Week. The Library Comm. is concerned regarding a secretary. A member has been taking notes. It is a hindrance to commission members. Other commissions have a City employee doing minutes. She suggested another employee take minutes and take comp time. L L m 1 .t L KENAI CITY COUNCIL SEPT. 17, 1986 Page 1B I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD a. her hadiaegroatrd. amountPorter. The Adult ofdonations from Care business Program busineee people. Sadlers donated good furniture, 4-D Interiors - carpet, Kenai Supply, Kenai Custom Interiore, Hersberger'e, Brown's Electric. Dorothy Lee went around end got donations. The Senior Citizens will be having a play in Sept. 8 Got. b. Public Works Director Kornelie noted Info M regarding RFP for Float Plane Facility C. Public Works Director Kornelie noted In 69 regarding OceanTech request for payment. He hoe denied it. Council agreed with the action. d. Councilmen Ackerly asked when the City will start Kenaitze Ct. Public Works Director Kornelie replied, in a couple of weeks. It will only take 1-2 days. e. Councilman Ackerly noted his parents celebrated their 48 wedding anniversary this date. Mayor Wagoner noted he will celebrate hie 44th birthday Sept. 19. f. Councilwoman Beille noted the Employee Classification Study Committee will meet Sept. 23. AD30URNMENTi Meeting adjourned at 1000 PM. i�Jen�th' len City Clerk L i � NN .- �' h O O 00 � o N Lm .4 rl . { �f .... _ ._. N m . r. M 9 q .r rp W 0 C. O y 0 a u u w w u 93 Y t I � q Ul �) �� •i '3yN p� 21 1p u o o6 w w a A i O14 01 N - - , • •y Y Y 4j U Y Mp M MM N •9 AAN In N tiN 'A U1 U;A v, In h O• 00 O• $ N NJ •nJ rZ 01 aD r1J C1as 00 2 O Og •O �O J O ..1 v1 O .a O •'V U1 •4 O N N •O •T Pf P {y N M 00 ey O h qD U1 r1 N CD {NV ,,pp 0 1 M1 ppO pp � n y aD h aD O h t+f h 0OD J h 0 00 rj ap J .4 y N N •'1 J J O OD N 00 2 M1 ,AD r.I M Y oy w tl m a+ Y 1g ai 10 •W+•q+ q Y �y e0 Y Mo' V N11 O) M N M6 Y /0 •0 �l{p rlyp ey U M U M U M U w w w w M y ,Y• y p O d s d g Y q Y Y Y Y Y py0. qNf Oq0 eyyl M {{11 Y {M� Y vjji�• Yq1 �Cjj ',q M 6 Fqi M D•Mp•ItlM hMMM G7 f..l U •y IA m FAmjtoo 1111"ll � 6 1m� 1ma 1,aw,p1 D Oml �Ya y M M• yyym to p •{� O p SUM. }� dy1 yd w x F i qq B j� G p�p 64 4 �0�/ N ..Vyppy ..yypp.1 4. .,.Yyyj .Myy Vpy Mpyg1 Npy .c D 7. 'S yyMr•N N6Q [7 V ii V Y u cc h U/1 ONO � M YY YYY Yw ••/•�i ••pp ���mppp OD W O. O h ti oAd1���tb�3d5F�Ml+ O M y 1p .e6o1 U O y 'y O ~ � Y � 'J r1 O Y O � tla Y M tl� $ M ~ Y � •.7 F ►►..11 W Faa 4i 3 M � W Ci � .e M 'S Y M Y O m 'i w � c7 O i� iqQ a. •„1 d M W ii L A 1 � ' CITY 4F ^l „od 4"„ 210 RIOAL00 KENAI, ALASKA 0111 TELEPHONE 283.7636 j MEMORANDUM TO: Councilmembers - ter- of Kenai FRO ' Rogers, City Attorney City of Kenai 1 DATE: September 22, 1986 RE: Bills To Be Paid, Requested $25,000.00 The Legal Department is requesting an extra $25#000 on the Bills -- To Be Paid agenda. This will enable the City to deposit an additional twenty percent above the original offer of tender to the defendant in the float plane basin condemnation action. The reason for this requested extra amount revolves around Alaska Rule of Civil Procedure 72(k). This rule generally provides that costs and attorney's fees incurred by the defendant shall not be assessed against the plaintiff unless the taking of the property is denied; there is no appeal from the Master's report; or the award is at least ten percent larger than the amount deposited by the condemning authority. Essentially, what this Rule means is that if the jury and/or the Master's report comes back at ten percent more then the amount tendered ($120,000), then the City would be responsible for the i defendant's attorney's fees and costs. To avoid possibly incurring this cost, I am suggesting that the City deposit an additional twenty percent (the extra ten percent is a safety margin) with the Court. That way, if there is a variance based upon increased land values or some other factor which cannot be j 1- ' Y r.. 4 i. i1 �i i h determined at this time, and the award given the defendant exceeds $120,0000 the City will not be responsible for all of costs and attorney's fees that may be assessed under Civil Rule 72(k). If the defendant withdraws the full amount tendered to the Court and a lesser amount is later determined as final payment by either a trial court or a Master, then a judgment may be entered for the City against the Defendant for the resulting difference. The defendant could, of course, always tender the difference back to the City and avoid the hearing which would be required to enter the judgment. TR/clf a l' CITY MONDALGO KENAI,ALASKA M11 TELEPHONE283- 35 MEMORANDUM T0: Charles A. Brown, Finance Director City of Kenai FROM Rogers, City Attorney .C1ty of Kenai DATE: September 22, 1986 RE: Request for Additional Funds/Airport Condemnation x Please place an additional $25,000 item on the Bills to be Paid agenda for next council meeting. The reason for this request is outlined in the attached memorandum to Council which I will be placing in the packet. TR/clf Attachment E._ L K i St � 11 1 L� i t i t _S y y i - .v 4 1 p _ ic } d 4, q31 y• OCIA p• 9 ZO 1 a N � 4 N i 96 A 7N V Y IJ it Y Him Y A M A W � b b b b b a b } � *qY x p N 4 eM1� w 4. M x � Y w ,a viWavi a u Gi N ~ W .y q PG M .41 r1 b p m d +H■� 4F p Wpy, CS N 4 W.7 Aj Y ~77 P• H a m � 4 M 'Qg N M�gj m y/ 7 PURCHASE ORDER lT CITY OFKENAI VENDOR 210 FIDALGO ST. PHONE 283-7536 ALL PACKAGES AND PARRS LDENROD - ACCOUNTING RELATING TO THIS PUR- • ACCOUNTING KENAI, ALASKA 99611 CHASE. rANA y BLUE • SHIPPING& RECEIVING NO. J� INK R EN • APPROVED COPY 9-29-86 NK RIEOUISITIONER j VENDOR NO. IBM Corp. TO SHIP VIA; BY rg Ij wiv-wv aft too PREPAY SHIPPING i CHARGE PURCHASES AUTHORIZED ONLY WHEN SIGNED ABOVE BY SEPARATE ON INVOICE THE FINANCE DIRECTOR OR HIS AUTHORIZED AGENT DEXPIPTION OR ARTICLE AMOUNT UNIT UNIT PRICE ITEMN07, iEIM t4ndal 89 PCIXT COMDUter 1 3,041.00 J, DEPARTMENT By L TOTAL 3,041.00 or) _401 K l_ PURCHASE ORDER CITY OF KENAI HITS }� LDENROD ACCOUNTING 210 FIDALOO ST. PHONE 283.7538 l NARY • ACCOUNTING KENAI, ALASKA 99611 BLUE • SHIPPING & RECEIVING REEN • APPROVED COPY PINK • REQUISITIONER VENDOR NO. NC MACHINERY 'J TO „ SHIP VIA: i i� ,.`. . ,: I. 1 s i ts, i n 4 1 I r 4 All PACKAGES AND PAPERS RELATING TO THIS PUR• CHASE. A-32oobNo. -8 J' I BY ivtn pA►t PREPAY SHIPPING CNARGE r O B PtROWTAMM PURCHASES AUTHORIZED ONLY WHEN SIGNED ABOVE BY SEPARATE ON INVOICE THE FINANCE DIRECTOR OR HIS AUTHORIZED AGENT ITEMNO. DESCRIPTION OR ARTICLEO�R0t4Ep UNIT UNIT PRICE AMOUNT VEHICLT ST-33 759891 Valve service gwoup (nozzel) 6 ® 036.84 $ 230.04 583718 Seal 6 0 1.39 8.34 6F1069 Seal 6 0 1.89. 11.34 6V1339.Valve grind gskt set 1 0 93.20 733206 Seal 6 ® 3.83 22.98 238959 liskt 6 ® 2.80 16.60 559588 askt 1 0 .67 T-225 Qakt 1 ® .12 1P4303-NC Cylinder head Assembly (EXCHG) 1 ® 1r075.9] 554044 Regulator 1 ® 21.92 559059 r;skt 1 0 1.28 STATffi�4ENT BELOW READ OR MAILED TO VENDOR. PO is for all cost d freight to kenai _, >}`reight for this PO is on PO#� NO ADDIDTIONAL CO3T8 WILL BE PAID WITHOUT AUTHORIZATION &NEW PO PRIOR TO DELIVERY. TOTAL 1,482.61 DEPARTMENT��. 01.43120-2023 $1,482 60 BY trwitNr Mao roN COUNCIL lelrtlb:u yr ❑ City myr• ---Lirqk.. (RoubjjC %Vgrky -- Lj o6iy CxlrA Ly}i; ­ U Origm� To subMIU-0 ..,--ire Council OK ONO Elves bk-- L C- -3 ., X. v,u,.N:,Al 4 i� p. 7 — •r �i O 'o CITY OF QPPORIUmITY September 12,1986 Betty Glick. President Kenai Borough Assemby Box 850 Soldotna, Alaska 99669 Dear Betty: I wish to thank you for attending last night's meeting to discuss Borough transportation project priorities. Here is the proposal I made for your review and consideration. In recent years the Kenai has not had much success in attracting federal highway administration dollars for road improvements. As an example. the Department of Transportation's spending plan provides only $270 000 of federal highway funds for Kenai projects i , FY 87, while other protects in the central region are scheduled to receive =65.4 million. In FY 88, the Kenai is iacscheduled to receive =73 2 milli nee Other areas of the central. What's even more frustrating is the fact that reconstruction of the Ster linq Highway from mile post 79 to 94, a project for which plans were p completed several years ago, is not scheduled udn o her 9while other tKenairoijescts ula being accelerated ahead of thisimport projects. Perhaps, one reason for our apparent inability to attact federal highway funds is the fragmented approach we've used in expressing our needs to the Department of Transportation, the Governor and the State Legislature. Given conflt s nale from various cities and organizations within the Kenai. its easy 1'�ore�state�tjustobb s for transportation p projects in other areas where there orb Y The proposal was made that we need a regional organization to meet on a periodic basis and mold concensus on issues of common importance to the Kenai Peninsula. Transportation project priorities are an obvious topic. Others issues which come quickly to mind include: Location of the North Slope Natural Gas Pipeline Establishing the Borough as a Customs Port of Entry Economic Development & Diversification Borough Wide Bond Issue Propositions Tourism -Promotion Solid Waste Disposal Insurance & Tort Reform State Legislative Affairs L 9 1 E 'E '-F i Betty Glick September 12.1986 The suggestion was made that this organization should consist of one representative from the Borough Assembly each City Council and each Chamber of Commerce of the Kenai Peninsula Borough. We'll need some staffing to put this thing together and sustain its operation . I think Frank Mcllhargey could do an excellent job in this regard. Thanks for your consent to serve as interim chair of a work group to organize this endeavor. If I may be of any assistance. please just let me know. :Dotfily l6W, F Mayor of Soldotna W. M or Stan Thompem Keene PeninsulaiBorough ,Mayor Tom Wagoner. Oty of Mayor John Calhoun. City of Homer Mayor nany Gieseler. City of Seward Mayor Gerald Willard. City of Seldovia Soldotna City Council L.� L Ll f L a r -11 { t _ E �tt ppa A; i • l G-Y OLD TOWN COMMITEE TO: Mayor and Counsel Members DATE: September 23, 1986 RE: Road Plan for Old Town The following is a recommendation by the Old Town Committee regarding the road plan for the Old Town area. This recommendation was reached unanimously at a meeting of the Old Town Committee on September 18, 1986. After a thorough review of the three plans presented by Mr. Kasprisin, the Old Town Committee has decided to recommend the acceptance of road plan option number two as proposed by Mr. Kasprisin with the following deletions and additions: 1. The Old Town Committee would recommend that in Road Plan Option Number Two the Peninsula Avenue alteration as reflected in that plan be rejected. The basis for this is that it would prevent a circulation of traffic in that area and also present a potential hindrance to fire department and other services that may be needed in that area. 2. The Old Town Committee also recommends that the proposed road development around the Alaska State Bank area also be rejected. The basis for this is that it has no apparent relationship to the necessity of road development in the area and that given the limited funding available at this time that this should be an extremely low priority. 3. The Old Town Committee would recommend that the proposed view site as reflected in Road Plan Option Number Two by Mr. Kasprisin be moved. it is the belief of the committee that the area next to the Miller house where the proposed view site would be is an unstable area and that it would be a waste of money and energy to try to develop an area that has no permanent future. It is L i f ii � • �. � `k ?i f 1 Mayor & Counsel Members September 23, 1986 Page 2 recommended that the city utilize available land to the west or secure other land to the west in a permanent area that does not have an erosion problem. The city is encourage to look into the possibility of effecting an exchange of lands if necessary to secure a view site area. It is the belief of the committee that a view site is essential to this area and should be included as an integral part of the road plan. 4. The Old Town Committee would recommend that the city pave Upland and Highland as a first step with the funds available. This would include the alteration of the existing dangerous exit onto Main Street from Highland Avenue. 5. The Old Town Committee also suggest that the proposed back road entrance into the c recommendation► is hrch area also be considered as a future addition. based on the approach utilized in Plan 1 by Mr. Kasprisin. We feel that there are not sufficient funds to consider this now and that there are problems if tlhiesownership wo of the property in question. However, rs should be resolved the Committee would recommend that this access to the road to the church areas be seriously considered for future development. 6. The Old Town Committee would recommend that all efforts be expended to secure a stop light at the corner of Main and the Kenai Spur Road. The Committee feels that this would accomplish a two -fold purpose in that it would enhance the safety of the area for the school children and would also operate as Thedevi old deviceto encourage traffic into the Old Town area. Committee would strongly encourage the city to proceed forward with its proposed plans to alter the intersection at Main Street and the Kenai Spur for the purpose of adding a right-hand turn lane. It is felt that this addition ateioto placeill also stop lightathatand intersectionencourage n the future. L L t 1 ' 4 ! h ,! e - ... il r. r Mayor & Counsel Members September 23, 1986 Page 3 The above are the recommendations by the Old Town Committee only in regard to the road plan system. This recommendation is based on the realization that we are dealing with limited funding at this time and in the near future. One of the reasons that Plan No. 2 was so attractive was that it utilized the existing road systems and required very little alterations. We felt this was both desirable from an economic view point and also desirable from a historical perspective in perserving the historical road system of the Old Town area. The overall considerations in this recommendations are the future development of Old Town as both an effective tourist attraction and as an enhancement for future development of a somewhat neglected area of the town of Kenai. We think the future looks bright for Old Town and would encourage the continued support of the development of the Old Town area. Thank you for your consideration in this matter. sincerely yours, ROBER'P MERLE COWAN Chairman of Old Town Committee L m MEMORANDUM %' _vda 007 CITY OF KENAI (?apdW aj Atzahoa " 210 ROAL 00 KENAI, ALASKA 99611 TELE►HONE289.7696 T0: Councilmembers City of Kenai ._� FROM' i Rogers, City Attorney '',. ty of Kenai i DATE: October 1, 1986 RE: Acting City Attorney Position As the Council is aware, I will be out of town for eleven (11) ' consecutive working days. At a previous Council Meeting, the Council expressed a desire to have legal representation at the {°51Council Meeting during my absence. Various department heads have also expressed concern that the City will be affected without the legal representation during my absence. Having weighed possible alternatives and hoping to achieve the most j cost-effective solution to the problem, I propose the following. The City Clerk has, by virtue of KMC 1.25.030, solved the problem *;of what happens when the Clerk is unavailable to perform duties ....... required under the Code. KMC 1.25.030(b) provides for a fr.... replacement of the City Clerk with an Acting City Clerk. KMC for five 1.25.030(c) provides that if the City Clerk is absent days or more in length, the person serving as the replacement ,. Clerk is to be paid at the same salary rate as the City Clerk k, .. during that period. - -'-- - ---- I have prepared a similar ordinance for the Legal Department to - provide for an Acting City Attorney when the City Attorney is In the interim, it would be permissible - — ----- - absent over five days. to have the Legal Assistant act as the City Attorney in my absence, based upon KMC 23.25.070. This Code section provides that an employee who is temporarily assigned to a position with a ,. higher pay range for a period of ten days (10) or more, shall be L I f i k 71 j paid at the first step of the higher pay range or at a one step pay increase from their present position, whichever is higher. Because I will be out of the state for more than ten days, this Code provision applies. Rather than simply supply a substitute attorney for the Council Meeting and leave the City without legal representation during my absence, I feel that assigning an Acting City Attorney is more cost effective. The funds are available, the legal Assistant has agreed to this, and the City will have the benefit of a full-time attorney during my absence. To give the Council an idea of the costs involved, a small spreadsheet was prepared and is included below: Hourly Net Replacement Rate Hours Total Cost 1. Attorney $110 84 $9,240 $9,240 2. Attorney 50 84 49200 4,200 3. Assistant (at City Atty. rate) 36.22 80 2,897 1,801 4. Assistant (or Contract Atty.) 110 7 770 - 770 Net amount additional to hire 1,031 Legal Assistant to act as Attorney in all matters for two weeks. The first line labelled "Attorney" indicates the cost to the City at the usual rate if it were to hire a replacement for the entire period. As is evident, the cost is extensive ($9,240.00). This assumes the City could even find an attorney to fill the position given the number of attorneys in town who would be in a conflict situation. The second scenario envisions the same circumstances with an attorney charging $50.00 per hour. Total services would be billed for $4,000.00. It is doubtful that such a scenario would arise, but it is offered to show how much less it will cost the City to appoint an Acting Attorney pursuant to KMC 23.25.070. 2 L L L ', 1 01 0 i The third scenerio details what happens if KMC 23.25.070 is followed. The Legal Assistant assumes the attorney salary range for the duration of the absence at a cost of $2,897 (ten days at attorney rate). For the remainder of the month, the Legal Assistant is paid at his usual rate or $1,404.00 (13 days at $108 per day). For the month the Legal Assistant would be paid $40301.00. The Legal Assistant is presently compensated at $2,500 per month, so the actual additional compensation the City must disburse is $1,801.00. If the Assistant or contract attorney attends the Council Meeting only (scenario 4), and the City pays the contract rate of $110 an hour for seven (7) hours (assumes preparation of three hours) for a total cost of $770.00. The $1,031 figure represents what the additional actual cost is to have the Legal Assistant act as City Attorney for the two weeks of my absence. I would submit that this is not an overly large amount to pay extra for two weeks of legal service. TR/clf q Y r 1 Suggested by: Administration CITY OF KENAI ORDINANCE NO. 1169-86 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE CHAPTER 1 BY ENACTING SECTION 1.55.030 ENTITLED "ACTING CITY ATTORNEY." WHEREAS, the City Attorney is occasionally absent from the City due to personal leave or municipal business; and, WHEREAS, the City Council desires that effective legal representation be available both at Council Meetings and for regular working hours during the attorney's absences; and WHEREAS, no specific provision currently exists for designating an Acting City Attorney; and, WHEREAS, the City has in the past had, presently has, and may have in the future, a Legal Assistant who is a member of the Alaska State Bar and familiar with City of Kenai municipal issues and litigation who could act as City Attorney. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that Kenai Municipal Code be amended by enacting KMC 1.55.030 entitled "Acting City Attorney" as follows: 1.55.030 Acting City Attorney: (a) In the event of a vacancy of the office of the city Attorneyp or in the event the City Attorney is not available to perform the duties of the office because of illness or other incapacity, being out of town on official business, being on annual leave, or being unavailable for any other reason for five (5) or more working days, the City Attorney or in his absence or incapacity, the City Manager may appoint to perform the duties of the City Attorney during such vacancy, absence, incapacity, or unavailability, an Acting City Attorney. (b) The appointment of an Acting City Attorney shall be made in writing and shall be posted on the City Administration Bulletin Board with copies to all Councilmembers, Department Heads, and Commission Chairpersons, and a copy thereof shall be placed in the Personnel file of the employee so appointed. L Is 0 I (c) When any period of service as City Attorney by an Acting City Attorney shall be five (5) working days or more in length, the person so serving shall be paid at the same salary rate as the City Attorney during such period. I PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA# this 15th day of October, 1986. TOM WAGONER, MAYOR a i ATTEST: Janet Whelan, City Clerk First Reading: October 1, 1986 Second Reading: October 15, 1986 i Effective Date: November 15, 1986 Approved by Finance: 10/1/86 i 1 i i L in CITY C eapdal 4 4" NO FIDMAO KM, MMU "I"I TMMHONF M- Ms MEMORANDUM TO: File FRO. 0 m Rogers, City Attorney City of Kenai DATE: September 19, 1986 RE: Float Plane Condemnation After numerous conversations with staff of the Attorney General's (� Office, Transportation Division, who have graciously consented to review numerous documentation and pleadings prior to filing with the Court for a "quick -take" condemnetion action as to 80 acres incident to the construction of the proposed float plane basin, several observations, recommendations and/or suggestions are in order. Some of the suggestions will necessitate a delay in filing of the actual court documents in order that certain actions anticipated to be taken by the other side might be diffused, and so that the City may present a stronger case for the end result of saving money in the acquisition. In conversations with Randy Ernst, Airport Manager, as well as Bill Brighton, City Manager, the consensus has been reached that the delay at this juncture will have no bearing on the actual construction in view of the fact that the pre -application to the FAA will not occur until January and the delays incident to the filing should not exceed thirty (30) days. There would only be concern if it was found that the taking would be delayed sufficiently long so that the property would not be in the hands of the City at the time the pre -application was filed. 1 I ' One suggested change has to do with the amount of the deposit with the Court at the time of the filing of the complaint for the quick -take which sum is presently approved at $120,000. As e result of Alaska Rules of Civil Procedure 72(k), which allows an adverse party to be paid for his costs and attorney's fees if the Court eventually awards more than the deposit, it is suggested that the initial deposit be increased by approximately $25,000 to a sum of $145,000 at this time. Since the amount of the deposit has no bearing on the amount of the award, it would merely serve to preclude the payment of additional funds for the other party's costs and attorney's fees should the Court award more than the $120,000 previously deposited. Of course, should the additional sum be exceeded in an award, Rule 72(k) would again come into play for an award of costs and attorney's fees. The second comment is that it is felt that it would be beneficial at this time to employ professional services of an MAI to provide an appraisal for litigation purposes, to be available to substantiate evaluations as of the date of taking, and to establish that its present zoning is in accordance with the highest and best use of the property (RR) and if not, to provide evaluation by application of its highest and best use, which may very well be pursuant to a different zone, i.e. commercial. Contact has been made with Alfred J. Ferrara, SRPA, MAI, Chief Appraiser and Consultant with Alaska Evaluation Services, Inc. to solicitate such a proposal for professional services. TR/clf 2 i Si 3 R i . `i �4 z..aa--- -- --- - .. w A + t FROST & GRASHIN ATTORNEYS AT LAW f d 3900 ARCTIC BLVD.. SUITE 101 % ANCHORAGE. ALASKA 99303 8T&M P. FROST AREA CODE 907 DAVID E. GRASHIN 50.0303 LAURENCB A. HUBBARD September 23, 1986 Tim Rogers City Attorney City of Kenai 210 Fidalgo Kenai, AK 99611 Re: Lots 10, 11, 12, and 141 Block 1, CI1AP Beluga Development Corporation Dear Mr. Rogers: I am in receipt of your letter of September 2, 1986, and respond on behalf of my client as follows: With regard to paragraph one of your letter, well over eight weeks have passed since the scheduled time for negotia- tions were to be completed. it is my client's position that the City has waived its right to renegotiate the lease rate. With regard to paragraph two of your letter, you state: "You have what we feel is a fair rate." What you are evidently referring to is the increased rate that you have unilaterally attempted to dictate to my client. You are not referring to the rate that was previously in effect and is in effect today. What you are doing is attempting to confirm the increased rate and placing the burden on my client to convince the City Coun- cil to reduce that rate. This is untenable. My client has absolutely no intention of coming to Kenai and speaking to the City Council in an effort to reduce the un- ilaterally increased rate. My client is not in a position of attempting to lower an illegally increased rate. in fact, the very most my client is obligated to do is to sit down in good faith and negotiate with the City, starting with the existing rate as it had been in the past and discussing the possibility of increasing or decreasing that rate. Furthermore, i believe it would be preferrable if t I�f a City Council appointed a repre- mantative with authority to negotiate this lease. A meeting I Tim Rogers September 23, 1986 Page Two may take place in Anchorage or Kenai, depending on the prefer- ences of the parties. However, before entering into negotiations, my client re- quires the followings 1. That the City stipulate and agree that Beluga has not waived its right to claim that the City has waived its right to negotiate an increases 2. That a decision be made prior to the negotiations re- garding the property taxes and who is obligated to pay them and when and if the City intends to reimburse my client for previ- ous taxes paid; and 3. That the City agree that the 50% cap rate be guaran- teed f or so long as the existing sublessees are leasing the premises from my client. At first blush, you may say that it is not necessary to resolve these problems prior to negotiating a new lease rate. However, it is impossible for my client to renegotiate the new lease rate unless it knows the City's position with regard to who has to pay the taxes and the City's position with regard to the 50% cap. You see, like the City, my client is entitled to make a modest profit on the subleasing or development of these properties. In order to ascertain what a reasonable lease rate Lap one must look over the covenants and conditions of the lease itself• i.e. are there any caps and who pays property taxes? Until this is determined, it makes little or no sense to try to negotiate a reasonable lease rate. An appraiser would have to know the answers to these questions before he could set a value on a fair lease rate. Finally, it is quite surprising to me that the City has unilaterally increased these lease rates while at the same time in your letter, in the second to last paragraph, you states "To lose a valuable lessee at this late date because of a downturn in the economy would be a shame." You seem to rec- ognize the serious downturn of the economy, and in that light, it is unreasonable to take the position that the lease rates should be increased. Be that as it may, the sublessees of these properties are fully expecting a decrease in the lease rates as everything else in the State of Alaska has decreased �M L r �1 f M f Tim Rogers September 23, 1986 Page Three N" V i over the last year. It is my client's belief that the tenants may be lost unless the rate is decreased. However, that information will be provided more formally } once we understand the City's position with regard to the above three items. Thank you for your time and consideration in these mat - tore. Sincerely, 47.& G ASHIN By IV C, y r I i VIU SHEFFIEW, GOVEP.NOR 550 W. 7th Avenue 4 ALCONOUCBEVER40ECONTROLBOARD Anchorage, Alaska - 99501 f # September 12, 1986 11 l Boys Limited. dba: One Stop P.O. Box 4233 Soldotna, AK 99669 At its meeting of September 3, 1986 the Alcoholic Beverage Control Board considered your request for exempption of the 30 days operation requirement under AS O4.11.330(a)(3) for the 1986 license year. The Board granted t this request. The Board requires that your 1187 renewal must be accompanied with the 750.00 r license fee and the $50.00 filngfee. r " Please note that your renewal application must be filed no later than December 31st. or there is a late penalty fee of $100.00. If not filed by February 28th., the license expires and may not be renewed. If you have any questions, please contact our office. Sincerely, Betty�alhoon ' Records and Licensing Supervisor _'�.. (907) 277-8638 I ... - BLC ' cc: Governing body - Kenai * The above was approved with the stipulation that the -- -"-- - license must be in operation y u y .1961 k L L 2 1. 0 { F Memo to: William J. Brighton, City Manager From: Charles A. Brown, Finance Director 604 Date: 9-29-86 Subject: Analysis of Interest Revenue and Sales Tax John Wise asked that I review Interest Revenue and Sales Taxes to determine whether or not we are close to our estimates per the budget. We must bear in mind that we only have one-fourth of the year to use as a basis for projections, but these are my best guesses at this time. INTEREST REVENUE We have about $24,000,000 invested, and that has remained fairly steady for quite a while. About $7,030,000 of that amount belongs to funds that earn interest on their own behalf, such as the airport and federal revenue sharing. I expect that we will pay out $1,330,000 during the year on the FSS facility; so figure half of that will be subtracted for annual estimate purposes. That leaves about $16,305,000 to earn interest for the General Fund. At the start of the year, our average rate of earnings was about 6.9%. Now it's about 6.1%, and falling. My best guess right now is that our average rate for the fiscal year will be around 6%. Six percent of $16,305,000 is $978,300 of projected interest revenue for the fiscal year. We budgeted $1,031,875. So, based on this projection, we'll be $53,575 short. SALES TAX Attached is a schedule showing taxable sales by quarter going back to fiscal year 1981-82. The April, May, June quarter is the first of our fiscal year, and for that quarter in 1986 we collected $474,692 in sales tax. The third column of the attached schedule shows historically what the percentage of the first quarter is to the total for the fiscal year. The five year average works out to be 24.6%. A reasonable sales tax projection for the year is $1,929,642 (474,692/.246). We estimated $2,000,000. Based on this projection, we'll be $70,356 short. With only one quarter of collection data, I would be very cautious with this projection. For instance, if the real percentage turns out to be 24% instead of 24.6%, the projection would be $1,977,883, or only $22,117 short. COMMENTS Earlier, I estimated that the reductions in State Revenue Sharing and Municipal Assistance would cost the City about $132,000. Therefore, considering these four revenue items, we may be short in our budgeted revenue estimates some $250,000. Based upon the City's historical use of fund balance and normal expenditures as a percentage of budget, I would have guessed that we would have had an increase in unappropriated fund balance of somewhere around $750,000 during the 1986-87 year. Therefore, this probably just cuts the increase to $500,000. We appear to have plenty of cushion to get through these relatively minor revenue estimate shortfalls. 71 w f• ? �e 1i 'i � � J CITY OF KENAI TAXABLE % OF CUMULATIVE SALES TOTAL APR—JUN 13, 219, 865 25% 25% JUL—SEP 14,747,131 28% 53% —OCT---DEC - — T3,43b,�67 . -.____..-_._.25%-___ --78% (� JAN—MAR 11,694,545 22% 100% TOTAL 53,098,308 100% FY 82-831 APR—JUN 1495839273 23% 23% OCT—DEC 169684,392 27% 78% JAN—MAR 1397229224 22% 100% ---WTA � 328; 887------i 0o . FY 83-84 e --A —,729, 34 JUL—SEP 20,0389331 29% 53% } OCT—DEC 179538,148 26% 79% ---dAN—MA , 4- 454 Q'• TOTAL 68,9509278 100% --FY-84-851 APR—JUN 17,9769759 25% 25'/. . JUL—SEP —GOT DES JAN—MAR TOTAL 19,890,113 28/. 53/. 17,, 893, 320---85%�8% i 1598239140 22% 100'/. 7195839332 100% FY 85-86 a APR—JUN —duL--SE OCT—DEC JAN—MAR } 18,7749893 26% 26% 1, 3�121923----29'/.-----�BS% 18, 595, 415 25%80'/. 14,883,818 20% 100% 4 L L 1 -L l 7) N-h PHAPPROVED KENAI PLANNING & ZONING COMMISSION September 24, 1986 Kenai City Hall Lee Lewis, Chairman 1. ROLL CALL All Commissioners Present 2. APPROVAL OF AGENDA Agenda approved as submitted 3. PERSONS PRESENT SCHEDULED TO BE HEARD None 4. PUBLIC HEARINGS None 5. OLD BUSINESS a. Preliminary Plat PZ86-45: Baron Park S/D N6 This plat is the site of the Pizza Hut Restaurant and was postponed from the last meeting due to the lot line being too close to the existing building which does not meet the building code. The revised plat has moved the lot line 20' and now meets the building code. MOTION: Commissioner Smalley moved approval of PZ86-45, including resolution item 69, inclusion of staff comments, seconded by Commissioner Zubeck VOTE: Notion passed unanimously 7. NEW BUSINESS a. Preliminary PZ86-46: Chiniak S/DPZ86-46: Chiniak S/D NOTE: This plat listed in error on agenda as PZ86-56. This plat subdivides property in the new RR-1 zone which has water & sewer service and a minimum of 20,000 square foot lots. W 7l PLANNING & ZONING COMMISSION September 24, 1986 Page 2 MOTION: Commissioner Carignan moved approval of PZ86-46, seconded by Commissioner Osborne VOTE: Motion passed unanimously. S. PLANNING Commissioner Smalley asked for information concerning the planning for parks. Some time ago the Commission had held hearings on the closing of the parks and the future plans. Commissioner Carignan stated that it was his understanding that the plans were to become a part of the Comprehensive Plan. Councilman Wise agreed to check on the status and return a report at the next meeting. 9. REPORTS a. City Council Councilman Wise reported that Federal Express was requesting counter space at the airport terminal. The City has a policy statement which prohibits freight activities. The Council will be discussing this issue at the next meeting and asked for any input the Commission wishes to make. There were no comments. Councilman Wise reported on Ord. 1161-86 which outlines procedures for Commissions and Committees. There will be no holdover terms, i.e., when terms expire in January, there will be no persons continuing in a position unless confirmed by Mayor and Council. In the past the person holding a position simply carried on assuming that person was accepted for another term. The Council approved the request for street name change back to Watergate. Councilman Wise asked that the minutes of the Landscaping/Site Plan Review Board be forwarded to the Commission and Council. It was noted that the minutes are already forwarded to Council. They will appear in the packet under Information items. Commissioner Carignan inquired about the missing bike trail. There had been an asphalt bike trail which ran from the bowling alley to Walker Lane and now it 0 n C PLANNING & ZONING COMMISSION September 24, 1986 1 Page 3 appears that the trail is completely gone. Whether it has been dug up or covered over is unknown. Planning Specialist Loper asked to check on this and report back - to the Commission at the next meeting. J` b. Borough Planning Commissioner Bryson reported that there were no plats - - and no items of specific interest to the Commission, ! however, the Borough has advanced two site selections for the Borough landfill to the public hearing level. The two sites are north on Marathon Road and Elephant Lake, in the vicinity of Valhalla S/D, both outside the city limits. ' - { Commissioner Bryson reported on the request for lease -- for coal extraction on the west side of Cook Inlet submitted by Diamond Alaska (sic). The Borough is preparing a letter to go out and it is anticipated that one will be going to the Kenai Planning Commission. There have been over filings for native allotment { lands. Over 100 individuals have been affected by the { filings including the residents of Douglas Lake S/D. Councilman Wise asked for a report on the Marathon Rd �i bypass. Commissioner Bryson stated that it was not an item discussed. Councilman Wise stated that he was of n di th r the understang a � however, if it was for the study or the approval he did . not know and asked for a report at the next meeting. .. c. City Administration i; None r 10. PERSONS PRESENT NOT SCHEDULED TO BE HEARD '. None 11. INFORMATION ITEMS Discussed above 12. COMMISSION COMMENTS &QUESTIONS - �j There has been a notice of public hearing concerning the overturning the Anchorage sign ordinance. The Commission will be hearing further reports. L L I -. w I PLANNING & ZONING COMMISSION September 24, 1986 Page 4 13. ADJOURNMENT There being no further business, the meeting adjourned at 805 PM. Janet A. Loper, Planning specialist Secretary to the Commission y :.y - Al 4 — --?k -- -- — —' - to f -- - it o. N- 9 KENAI ADVISORY LIBRARY COMMISSION August 5, 1986 Kenai Community Library Linda Swarner, Chairwoman 1. ROLL CALL Present: Commissioners Swarner, Heus, Reynolds, Smalley, Turner, Quesnel, Emery 2. APPROVAL OF THE AGENDA -� The agenda was approved. �'• ;. 3. PERSONS PRESENT SCHEDULED TO BE HEARD None ' _. 4. APPROVAL OF THE MINUTES The minutes for the meeting of May 14, 1986, were accidentally destroyed. . .�:. 5. DIRECTOR'S REPORT The following work has not yet been done by Landmark: y o Fix glass in door which is pitted o Replace the window operating fixture which is missing to Replace or find missing ladder t " to Repair daytime switch on night light at arctic entry o Repair the arctic entry door closer } to Return lock which was sent to Seattle by mistake :_. Emily will be attending a PNLA conference in Vancouver, B.C., 6/11/86 8/16/86. The PC computer has been ordered for the library. The prison Brant was rewritten and is waiting acceptance by the state. The state funding is up in the air — Senator Fisher's grant is down to $8500.00 (from '1 $10,000.00). 6. OLD BUSINESS a. Librarian grade increase The study on salaries is to be completed later this fall. L B i. �f +s ' M KENAI ADVISORY LIBRARY COMMISSION August S, 1986 Kenai Community Library Linda Swarner, Chairwoman b. Library budget The city approved the library budget without the additional for books. c. Summer programs The summer programs were very successful. See attached report from Jeanette Neal. In response to her request for suggestions for the Elementary School program, the commission suggested to change the time of the story/craft hour or else to change the day. d. Volunteer awareness program Cobblers aprons have been ordered for all the volunteers to wear while they are working at the library. 7. NEW BUSINESS Commissioner Smalley will make posters asking for more volunteers. 8. COMMISSION COMMENTS AND QUESTIONS None 9. ADJOURNMENT There being no further business, the meeting was adjourned. Respectfully submitted: Christine A. Reynolds Recording Secretary L L Kenai Community Library Summer Reading Program Report_ The program, with the theme, "Happy Birthday Miss Liberty", began on June 9th running through July llth. There were 154 participants, with 56 children finishing and receiving their certificates. These 56 children read a total of 1536 books, which we thought was wonderful! A large birthday cake for wall display was made by Vivian Dye, so that after each 10 books a child read, he/she could light one of the 100 birthday candles with a star on which the child's name had been written. Certificates were given for reading 10 or more books. Prizes were presented to the children from a drawing. These prizes included t-shirts, books pertaining to the Statue of Liberty and gift certificates from the Book Cache. As a part of the program, an afternoon story/craft hour was offered to the Elementary School age children on Thursday afternoons during June and July. Leaders for this were Sue Pike and Eileen Bryson. The participation for this was not particularly good. We have discussed the possibility of having this story hour on a different day next year since Preschool storytime parents might have objected to making two trips on one day. Any input would be appreciated. Thanks for your continued support!" �-9 KEW ADVISORY LIBRARY COMMISSION September 2, 1986 Kenai Community Library Linda Swarner, Chairwoman 1. ROLL CALL Present: All Commissioners Present 2. APPROVAL OF AGENDA The agenda was approved as submitted 3. PERSONS PRESENT SCHEDULED TO BE HEARD None 4. APPROVAL OF MINUTES of August 5, 1986 Minutes were accepted as submitted S. DIRECTOR'S REPORT New budget has allowed ordering of new books. Karen Crane, new state librarian said they would write a proposal for automated library system. 6. OLD BUSINESS a. Budget Two grants 1) $5,000 to books 2) $7,000 for books for jail (1/2 for jail and 1/2 for this library for books on social problems (?) of jail. b. Summer Programs 9/15/86 last day of Alaskans films; about same attendance as last year c. Addition Update Bee Minutes of August 5th meeting attached. Landmark has not been given their final payment. d. Susan made posters 7. NEW BUSINESS a. Fines: 1) Can people work off their fines: consensus, no; MOTION: Commissioner Emery moved to table issue, seconded by Commissioner (not indicated) L 0 01 1 LIBRARY COMMISSION September 2, 1986 Page 2 VOTE: 4 (Not indicated) 2) Update ordinance on cost of out -of -print books b. Linda asked Emily to bring procedure for banned books 4 ------- c. Discussion an Library fines. Councilwoman Monfor to bring report next time d. Interlibrary loans: cost us money charge back to patron? NOTION: Commissioner Emery moved library pick up WIN fee ($1.25), seconded by Commissioner Turner VOTE: it 6 to 1 e. Western Union link called Infomaster, costs $25.00 and 9.00 per hour connect time - Emily will check into this further and bring back report. S. COMMISSION COMMENTS & QUESTIONS Commissioner Emery - smoking in bathroom - a problem, but what can you do. kK. Councilwoman Monfor Study done, 2 women department heads should be upgraded from 14 to 17. 9. ADJOURNMENT Meeting adjourned at 8:50 PM Janet A. Loper, Planning Specialist Secretary : L (from written notes) In 40 7" N 1' 1: A. R 4 1 s - k � i r KENAI ADVISORY LIBRARY COMMISSION August 5, 1966 Kenai Community Library Linda Swarner, Chairwoman 1. ROLL CALL Present: Commissioners Swarner, Heus, Reynolds, Smalley, Turner, Quesnel, Emery 2. APPROVAL OF THE AGENDA The agenda was approved. 3. PERSONS PRESENT SCHEDULED TO BE HEARD None 4. APPROVAL OF THE MINUTES The minutes for the meeting of May 14. 1986, were accidentally destroyed. S. DIRECTOR'S REPORT The following work has not yet been done by Landmark: o Fix glass in door which is pitted �� o Replace the window operating fixtu7�g.yhicb is missing -� o Replace or find missing ladder — •��1 o Repair daytime switch on night light at arctic entry - o Repair the arctic entry door closer o Return lock which was sent to Seattle by mistake Emily will be attending a PNLA conference in Vancouver, B.C., 8/11/86 - 8/16/86. The PC computer has been ordered for the library. The prison grant was rewritten and is waiting acceptance by the state. The state funding is up in the air - Senator Fisher's grant is down to $8500.00 (from $10,000.00). 6. OLD BUSINESS a. Librarian grade increase The study on salaries is to be completed later this fall. L L 9 I ,zNF-o KENAI MAYOR'S COUNCIL. ON AGING, REGULAR MEETING, MINUTES SEPT. 15, 1986, 10t00 AM KENAI SENIOR CITIZENS CENTER CHAIRMAN SYLVIA JOHNSON PRESIDING 1, ROLL CALL Present: Sylvia Johnson, Francis Meeks, JoAnn Buzzell, Roy Moore, Gene Sipperly Absents Shirley Henley, Fred Chambers, Betty Warren (arrived late) 2. AGENDA APPROVAL MOTIONt Moved by R. Moore, seconded by G. Sipperly, to approve the agenda as submitted. Motion passed by unanimous consent. 3. PERSONS PRESENT SCHEDULED TO BE HEARD 3-a Clarence Ladd Mr. Ladd explained he had several items to discuss. Regarding finances. He suggested, if people had problems they should be able to come to the meeting to express themselves. Regarding the work shop. He was told to talk to Sr. Citizen Coordinator Porter. It was not on the agenda. Regarding the list of members (listing male, female and minority totals). It says all members are white, that is not good. We should have at least one minority on the Council. He suggested we should have a secret ballot when people are checking to see how others have voted. Regarding replacements. Why was Sue Chinn not replaced? Why was Father Targonsky not renewed? He was told he could not be renewed. Father Targonsky said he was not notified of meetings, that is why he did not come. He would like to continue to have a secretary to take minutes. We should have that instead of tapes. MAYOR'S COUNCIL ON AGING SEPT. 159 1986 Page 2 Mrs. Porter replied to some of the questions. Regarding the secret ballot. An ordinance relating to commissions and committees is up for public hearing at the Sept. 17 Council meeting. In this ordinance it states each vote will be counted. Regarding the Native problem. She spoke to George Miller, he had no problem with listing the number of men do women and race, but he wanted the bottom section of the report struck out. A report on this is required by the grant, but she does not have to have it in this list, she could just put it In the report. Sue Chinn was deceased last month. We have not had time to replace her. Father Targonsky had not been attending meetings and had to be replaced. Regarding minutes. They are typed out as well as recorded. it J. Buzzell. When she was appointed to the Council, she just submitted an application to City Council and was appointed. R. Moore asked if Natives had been asked to join. Chairman Johnson replied yes. Chairman Johnson. The wood shop is listed under Old Business on the agenda. 4. COMMITTEE REPORTS 4-a Fund Raising: Sylvia Johnson Chairman Johnson reported the play is in progress. There will be a raffle. The tickets have been printed. There were 2 salmon bakes in August. 4-b Building Committee Betty Warren B. Warren reported Architect Gintoli was going to speak on =j the property line and make a schematic. He will be doing `-- --- --- ! this as soon as possible. 5. MINUTES G. Sipperly read minutes of lest meeting. Marian Davis�. said she had spoken at the end of the meeting, not during the reading of the letter. Council agreed to amend minutes to read, "Mrs. Davis spoke at the end of the meeting." Mrs. Davis asked to have added that she was refused permission r - , i MAYOR'S COUNCIL ON AGING SEPT. 15, 1986 Page 3 to speak. MOTION: Moved by Be Warren, seconded by J. Buzzell, to accept the minutes as corrected. Motion passed by unanimous consent. 6. OLD BUSINESS 6-a Carpet - Platform Platform. Sr. Citizen Coord. Porter said it has been suggested installing a platform where the organ and piano are so they can be seen better. Be Warren asked if there was enough money. Chairman Johnson said if there is a platform, somebody may fall off, it would be a safety hazard. Be Warren agreed, noting the Housing for Older Citizens report suggests everything be on one floor. She suggested this item be put on indefinite hold. Carpet. Sr. Citizen Coord. Porter reported the carpet was awarded to Rutherford. They have 60 days to complete. The color and pattern are what they wanted. 6-b Board Appointments Sr. Citizen Coord. Porter explained, the Council on Aging can make recommendations for replacements to City Council. She suggested putting a notice on the bulletin board that there is a vacancy. 6-c Davis Letter Chairman Johnson read the letter sent to Mr. & Mrs. Davis dated July 28, 1986. She added, a copy of the Rules of Conduct was included in the letter. A reply dated Aug. 11, 1986 was sent by Attorney Shapira, Anchorage, to the Council. He requested an outline of specific accusations from the Council on Aging. Chairman Johnson said the letter from Atty. Shapira was turned over to the City for review. They will reply. 6-d Wood Shop i-� B. Warren said a recent visitor to the Center was very enthused about the shop. He has much equipment he used when he lived in Fairbanks. He may be able to work as an instructor. This may spur some action in the wood shop. Li L- . -1 i MAYOR'S COUNCIL ON AGING SEPT. 159 1986 Page 4 She suggested holding off on dismantling if this man is willing to work at the Center. He will be gone for 2 months, she asked that the item be discussed at the November meeting. Council agreed to the request. Sr. Citizen Coord. Porter said she has contacted Ms. Vickory, she is willing to teach. She has many people on the list that are willing to attend. She noted she had a problem with people taking safety guards off the equipment. 8o Warren suggested making a policy that no equipment can be used without safety guards. Mrs. Porter noted it is posted now. MOTION: Moved by 8. Warren, seconded by R. Moore, to make a policy that no wood shop equipment can be used without safety guards. Motion passed by unanimous consent. 7, NEW BUSINESS 7-a Senior Voice Stories Sr. Citizen Coord. Porter explained, the Senior Voice wants stories of people in the area that have done good things. B. Warren suggested an article about Sue Chinn. Chairman Johnson suggested the seniors give ideas to Mrs. Porter. Council agreed to the suggestion. 7-b Brush Clearing Sr. Citizen Coord. Porter explained, the reason it is on the agenda is that it is a concern of a few people that there is a lot of brush there and the building cannot be seen from the road. Not much has been done. She suggested the seniors work there and City crews can take the brush away after it is auto She asked if the Council was willing to form a committee or if they wanted to keep it there. J. Buzzell noted she had a cutter they could use. Chairman Johnson appointed J. Buzzell to take a poll of members to see if they went it taken down. Mrs. Porter added, just the brush, not the trees. r_, 7-c Forget -Me -Not Program Criteria Liz Schubert reported she has prepared a Policy and Procedure Manual for the program. She asked for a work session with the Council to review and she will make it y 44i - �. K MAYOR'S COUNCIL ON AGING SEPT. 15, 1986 Page 5 official. Council agreed to meet Mondays Sept. 229 1986 at 10:00 AM. Me. Schubert added, she has been using the guidelines of the Older Alaskans Commission. 7-d Council on Aging: Pat Porter Sr. Citizen Coord. Porter explained this was put on the agenda to discuss the listing of sex and minorities on the membership list. This was discussed earlier, she will remove them from the list. B. PUBLIC COMMENT 8-a B. Warren. She felt the remarks by Clarence Ladd regarding her method of running the Council were unnecessary. Chairman Johnson explained there will be a 2 minute limit on testimony. 8-b Clarence Ladd. He noted there was no time limit stated on the agenda. Regarding the work shop. He will go along with delaying the dismantling if it is used. Regarding the brush removal. He would like to see the work done. 8-c Marian Davis. She asked if the letter from her attorney was going to Atty. Rogers. Answer - yes. She asked, why was the original one not approved by Atty. Rogers? She noted the Council has not replied to the letter from her attorney. She asked that her remarks made at the last meeting of the Council on Aging be given to Atty. Rogers. 8-d Harold Davis. Regarding the safety guard taken down from the machines. That was taken off by the City maintenance man. ADJOURNMENT: Meeting adjourned at 11:00 AM. Janet Whelan City Clerk L. L a f 1 � KENAI LANDSCAPING REVIEW HOARD _ September 23, 1986 { Kenai City Hall I 4; t Lou Schilling, Chairman _...... _ _:. 1. ROLL CALL Presents Cole, Caler, Oberg, Schilling 41 Absents Darrow -` Also Presents Planning Specialist Loper, Public Works j; Director Kornelis 2. APPROVAL OF AMENDED AGENDA Amended Agenda accepted as submitted 3. APPROVAL OF MINUTES of September 16, 1986 '11 Minutes accepted as submitted _1 . 4. OLD BUSINESS - a. Revised Landscaping Plans Lots B1A, H-2, and C-1A, a ` > Sprucewood Glen S/D - E. Lowry ` } All three sites were considered together. The revised plan. The Board and Mr. Lowry agreed to delete the "future site" from the plan. Any additions to the mall will return individually. The new plan, while doubling the previous percentage of landscaping, still does not come near 5% not including the ROW. For the record, ` the Board indicates that this plan, if approved, will be approved with the less than 5% amount due to the fact that (a this was the very first plan reviewed by t the Board, and b) the plans for Lot c-lA were approved at a prior date. The purpose of this statement is for the developers past and present who have made the effort willingly to meet and in most cases exceed the 5% standard set by Council and Board. h The Board noted that since the ROW area will be -,---==- - included, that it be maintained, Mr. Lowry agreed. it was further noted that Mr. Lowry has planted the entire ----- ROW strip to the driveway of McDonald's even though no buildings exist along a portion of it. Board Member Cole noted the existing large (20' approx.) trees to 1. 1 i _3 'i i .. r ,1 LANDSCAPING REVIEW BOARD September 23, 1986 Page 2 the west of the lots currently under review and asked for future plans for the trees, Mr. Lowry stated that he had every intention of ensuring that they remain. The Board concurred. The total lot size of B-2 is approximately 1200 sq.ft., the landscaping is 6%, 11% including the ROW frontage. MOTION: Board Member Schilling moved approval of the three plans with the notations concerning the "future site" the existing trees, and the ROW included and maintained, seconded by Board Member Cole VOTE: Motion passed unanimously 5. NEW BUSINESS a. Kenai Boating Facility, Tract A, Kenai Boat Launch - City of Kenai - K. Kornelis, Public Works Director As Mr. Kornelis was the first person to arrive, the Board reviewed the plans for the boating facility first. Mr. Kornelis described the plans and a topo of the area was available. The project has already been bid, the award going to Western Marine Construction, the first pre -conference bid will be in about a week. The facility will be located partially in the mud flats area and will extend inland towards the existing tree line beyond the existing road. While it was generally accepted by the Board that not much could be done on the site, a large portion of the property lying in mud, it was agreed that some landscaping could be done in the areas around the restroom facilities and the site of the tanks and fence. It will be necessary to ensure that any vegetation planted at this site will not have a root system that will interfere with the underground tanks. Mr. Kornelis will return at the next meeting wit a revised plan encompassing the suggestions agreed upon. b. Short Review: Lot 3A1, FBO S/D, South Add. - Hancar Facility - Dan 0. Pitts Mr. Pitts was not in attendance. The Board briefly reviewed the plans. There was confusion as to the location of the site, it was ascertained that the lot I. LANDSCAPING REVIEW BOARD September 23, 1986 age +s VOTE: ,`• Motion passed unanimously. 6. BOARD COMMENTS & QUESTIONS 4 nip JACKSjOQN SAuick LES &tu,�SEIRVICE Tow,owing P.O. Box 618, Kenai, Alaska "611 2834760 September 209 1986 City Of Kenai 210 Fidalgo Kenai, Alaska 99611 RE: Lot q, Block 59 CIIP & ROW XNPO -3 h� l � •l Dear Mr. Brighton Writing in regards to the 1,000?000 dollars -Insurance on this property. I was wondering if there was some way we could reduce this back tO the 500#000• I also understand this requirement as been done on other Airport leases, and has been reduce. I will appreciate any thing you can do in helping us reduce this back, or to a more reasonable figure. Since r /G`L2V" obert . ac on Jackson's Sales & Service L H l_ This edition AlaskaPacificBank Sponsored by: A KeyCorp Affiliate , MRESS OOME REQUESTED RIW ftWP G"W"N Resourcecity of MayorTomH. Wagoner ����� K1e FigalgoKenai Resource Development Council for Alaska, Inc. eox 100516, Anchorage, AM. anal, AK 9961i •;�, September 1986 •®TM �'� s�' ✓'� Groundfish harvest ti Alaska fishermen fight for share -' by Chris Blackburn After nearly 25 years of promises and false _- starts, it appears that U.S. processors are mounting a serious effort to tam over the her. ✓ ' I cod and vesting of the groundfish — poi ock, .. r flounder — in Alaskan waters, but whether ��,��... �,1• �, Make processors and fishermen will be part v of this development remains in doubt. Ilk a Fourteen Seattle -based factory trawlers _ are already harvesting groundfish off Alaska's ,. coasts and another six are known to be under construction — the actual number is probably . y t�•_ higher. About a half dozen U.S.-owned floating processors, only one of which is based out of Minced hsh is mixed with stabiBsers to make suNM at Alaska Paeft Seafoods in Kodiak. (Photo Alaska, are also at sea taking deliveries from by chns etackbum) U.S. vessels and several more are either under construction or in the planning stage. resident salmon fleets developed the crab fisheries. Even today in Kodiak the mean keel fleet would swoop through the areas fished by the resident fleet and "scoop up all the Washington State residents are currently taking home about 90 percent of the money length in the Tanner crab fleet is 66.1 feet. However, for the Bering Sea Crab fish- crab." The Board of Fisheries over the years pas - being made from Alaskan groundfish by U.S. vessels. Including joint venture vessels, and eries largervessels Inthe 100-footclasswere required to withstand winter weather In the sad a series of regulations designed to make large basis uneconomical in the Gun of U.S. processors. Oregon and California real- dents are also involved in Alaska's groundfish middle of nowhere. The large vessels de- manded volumes of product and vast areas Alaska — limits on the number of pots that could be fished, restrictions on the amount of fisheries• Only a handful of Alaska plants are proses- to fish. The owners tended to be fishermen from the Seattle area with a history of spend- area a vessel could fish. The regulations worked, but they also pre. sing any substantial quantity of groundfish — three which worked under state or federal Ing part of the year fishingAlaska and then vented fishermen who wanted to fish near home from Investing in bigger vessels. grants and the two Dutch Harbor surimi plants returning home inevitably, the resident Alaska fleets be- As a result, the investment in high technol• which are Japanese financed as part of an came concerned that the large "outside" crab ogy for the crab fisheries, In large vessels and Industry "fish and chips" agreement. in catcher processors, was made mainly by Alaskas failure to participate in the proses• non-resident fishermen working in the Bering sing and harvesting of the abundant groundfish stocks off its shores appears to be INSIDE 3 Sea. The Bering Sea crab fleet became 90 per - the result of past policies designed to protect • fi ......................................cent non-resident vessels; white the small Alaska coastal communities and new policies • hydro ........................... 5 r8radley vessel Kodiak crab fleet remained 97 percent . which discourage fisheries investment in • way to Olympics ............... 6 resident vessels. As a result, Alaska lost 40 ' Alaska. • Admiralty Island ........................ 6 percent of the exvessel value of Its crab Big Boat vs. small Boat The combination of weather and salmon • Wilderness reviews 6 ••••""•""""' fisheries to Washington fishermen. When the crab Industry collapsed, it was created two crab fleets in Alaska. In coastal • Conservation ............................ 7 the non-resident, large Bering Sea crabbers communities around the QUIP of Alaska the (Continued on page 4) L L OF L L 7 '1 . f r i i ' 1 i� 'i 9 i. li i Message from our executive director by Paula P. Easley Balance needed to solve industry conflicts If you're a fish, you lead a charmed Ile in Alaska. Of all the Inhabit- ants of the universe — well, let's keep it to Alaska — can you think of one that has a more elevated, even deified, status than does the fish? Fish are more Important than people, and more Important than minerals, petroleum, trees — you name ft. There is no balancing test In the regulatory process that asks which resource development is more important to the economy or to the needs of the people of the state. Did you ever think about that? The presence of fish near any proposed development project means that the developer Is subjected to millions of dollars of environ- mental studies and costly mitigation measures. "Fish must be pro- tested at all costs" is the prevailing philosophy. Even the more sugges- ton that fish "could be affected" by all drilling, timber sales, land disposals or commercial activity of any kind is enough to forestall or preclude resource exploration, i.e. the Bristol Say oil lease sale, the buyback of the Kachemak Bay leases, seismic testing in the tidelands, gold mining in Cook Inlet, logging in Prince Willem Sound. Another example of this lack of balancing is the U.S. Borax molyb• denum project. The Forest Service says the annual value of commer- clal fish and shelffish tosses (this Is the "worse case projection;' mind you) for the two primary altematives for mine tailings disposals are $7,334 for Wilson Arm and $5,000 for Boca de Ouadra. The federal government wants Borax to build a $59 million tunnel to Boca de Cuadia. The Idea is that fewer fish would be affected, about $2.000 worth, by going to Boca de Ouadra. My first reaction was, "Youve got to be kiddingl" Spend $59 million for $2,000 worth of fish?" Yet this scenario is repeated time after time, and every industry can relate similar horror stories. Even the commercial fishermen and processors Interested in management of the fishery and development of new technology are held back by attitudes resistant to cosWenefit analysis and independent research. An Alaska oil company was required to construct 700 feet of bddg- Resource Development counca,lno. The Resource Development Council (RDC) Is Ataaks's largest privacy funded nonprofit economic devetopmeM orgeM 110n woding Is dewetop Alaska's natural resources In an orderly manner and to create a broadtesed, dhrorsised economy while protecon0 and enhandnq the envlronmat. ROC Wise members and the goners! public to its woo Waldnt meeting featuring toot and NMI- aily knorm Wears an scronle end resource de- velopment Issues. The meetings ere held on Thurs� We day we saq�bd by calling 2Tan, In ft Nwthern 76�0M Reaena ing on a causeway that cost $35 million. in spite of its own fish monitor- ing programs and in-depth studies which showed the extensive bddg- ing was not a necessary mitigating measure, the company was forced to do the work. It was even forced to install special lighting inside the culverts so the fish could see as they passed throughl Unlike the timber Industry, Alaska's fishing industry is allowed to capture 1000/6 of Its annual sustainable yield. I propose that we extend similar privileges to the timber Industry and take a more rational ap- proach to addressing the matter of fish mitigation. Let's go back to the Borax situation. Here government has laid the entire cast of $59 million, which translates Into billions of dollars over the Ile of the project, onto one company. What happens when we do that? (1) Projects are delayed, until the price of the resource goes up enough to recapture the mitigation costs, (2) The company decides It can't go Into production at all, or (3) We import the product from some other country that doesn't have these stringent requirements. Has government ever answered this question: What is the most officlent and beneficial use of our available resources? Without an Input/output model to evaluate the direct and multiplier effects of each development project, we have no way to judge if our potential has been maximized. We simply can't afford to continue to make value judgments in favor of fish (and often only one species of fish — salmon) when other resources are under utilized. Other Industries have provided revenues to the state which have greatly enhanced the fisheries Industry In a variety of ways. An objec- No, analytical approach to tracing the flow of revenue might reveal a few surprises about where the dollars earned in each resource Industry end upl We're all in this together and there has to be some give and take. Editor's Note: Now can tw do a better lob of balenoing economic and environmental concerns to beneR the maximum number of eftens? Please send your Ideas for publication /n the Resource Review. socuun Committee Omura President . Bold Brownfield Vice Preddent ............... John Foceskle Vice President Joseph Mend Vice President ................ Shelby Steedry secretary....O.K.•E'Urelibrem Treasurer .............. lsnylaughmen ............... a Peel Presweni Char) Webber Executive Director .. ..... Peuls P. Easley Deputy Director ................ Becky L Day Public Relations Dkector ......... Cad Folmar dINOW .................. n pRreoeieecafth tts coorCoo din Munro Korb ............. Him MAN. ..... Manrbersllp Relations Mellor ..... Lynn 8011e1 Page 2 / RESOURCE REVIEW / September 1986 The ROC business is located st 807 a Street, Suite 200. Anchorage. Resource Review Is the offiew monthly pubikaw of the Reaoums Development Council. Box 100510. Anchorage, Alaska 90510 — (007) 2784700. Materiel In the publicedw may be repdmed without permission provided appraptate rndil Is given. Cat Potmen Editor a Advertising Manager ResourceReview encourages its readersto sntxna a oft umunoemems and wm b iM edxa br �tSw d at/ nn-80oneanwe to Resource COURA Raowoa Rsvisw, Bon 100516, AtwAorage. mom 99510. J L 111111[, F' t See related story .,.)ANWR on page 5. RDC launches effort to form consensus Council meets with community leaders The Resource Development Council has launched a campaign to forge a statewide i .r consensus on opening the Arctic National Wildlife Refuge coastal plain to environmen- tallyresponsible oil and gas development. ' 4 s. The Council will be mobilizing communities and organizations throughout the state to ex• press formal support for opening the 1.5 mill - Ion -acre coastal plain to development. Com- r,- ,._ . munities and organizations from Ketchikan to Barrow are being asked to adopt resolutions - " u -� Unbeknownstto many Alaskans, the battle urging Congress to allow exploration on the a? N:• : y -... lines are being drawn on the fate of about 1.6 million acres of coastal land between Prudhoe Arctic coastal plain. ti Council officials have met In Juneau, S ft " `r " Ba and the Canadian Border. land Kodiak, Barrow, Dillingham, Nome. Valdez, The coastal plain of the AmW Naliona/ Wildlife Bethel and Fairbanks to solicit endorsements Refuge holds elmller geogiephlcal features as fits Isn't, however, just any ordinary as it represents the largest and, perhaps, the by city councils and borough assemblies. The 'hose along the coastal plain between Prudhoe Valdez City Council was the first local govem- Bay and the Brooks Range, as shown here. last remaining onshore oil deposit In the U.S. of significant size — it may well parallel the ment body to adopt the resolution. production of Prudhoe Bay. "It is Imperative that Alaskans speak with through organizations to which they belong a unified voice on the ANWR Issue before may obtain a draft Rom RDC," Brownfield The land to which I rotor is part of a 19 million -acre parcel known as "ANWR" (Arctic Congress," said Boyd J. Brownfield, Presl- said. "We're also Inviting people to join our National Wildlife Refuge). dent of the Resource Development Council. ANWR Task Force to work on the project as "Alaskans wishing to advance resolutions the Issue advances through Congress. I need not dwell on whet this coastal plain means to the economy of Alaska and the no - don, should even a portion of the qua" of ANWR report won't be oil expected Coexist prove to there. The tattle lines to which 1 refof er are the old before January familiar ones. Now that 17.4 million acres (or over usper- released aside a%)otANWRarefferef refuge aside as a national wildlife refuge (thus per - The U.S. Fish and Wildlife Service report on whether to allow oil exploration on the coastal milling NO consideration for any development of our natural resources In the area), the en plain of the Arctic National Wildlife Refuge (ANWR) probably won't be Issued before January, Secretary of the Interior Donald Hodel told a meeting of RDC officials September 6. Wvilofor nt r community wants to lock it all �" forever (all 19 million acres) under the The U.S. Department of the Interior is appealing a court ruling that would force it to include false of irrevocable damage the shis public comments and an environmental Impact statement In the report to Congress. The ruling p subsuclaimsrface, rcto face subsurface, and wildlife resources. This was issued after five environmental groups sued the Fish and Wildlife Service In October position, predictably, discounts the over- 1985 and asked for additional items in the agency's report to Congress. whelming, proven evidence otherwise. The Fish and Wildlife Service has maintained that Congress should have the prerogative to review the report and decide whether to ask for public input. The agency contends that Your RDC, along with other responsible public Input at this point would cloud the issue. 0 the litigation moves along quickly, the report could be out by the end of this year, but state and national organizations, wants the coastal area, 8% of the enure ANWR, to re- more likely the report won't be released until early next summer. main open for exploration and possible pro - duction. The report on the refuge was mandated by the Alaska National Interest Lands Conservation The Act of 1980. Title X of ANILCA authorized and directed a number of studies and reports on This Is not a local or state issue, it is na- the oil and gas potential and fish and wlldl8e resources of the coastal plain of ANWR. Section goneland will be decided in Washington, D.C. 1002(h) of Tide X directs the Secretary of the Interior to make recommendations based on development and within the range. You must become aware and be prepared to exercise your influence beyond our state bar. the report on whether to permit exploration, production Environmentalists say that exploration on the refuge would disrupt the Porcupine caribou data. You, as member of RDC, will be called herd. Industry says the 1.6 million -acre coastal plain, covering only 8 percent of the refuge, upon for direct Involvement. My October re - has the greatest potential for discovery of large oil reserves. marks will provide more guidance as the Issue (continued to page 6) develops. Be prepared) September 1986 / RESOURCE REVIEW / Page 3 1 i I' 5 _I 1. j. t< 1 i , c F Alaska fishermen struggle for share . . (Continued from page t) counter -productive. A reanalysis of the tax Agency Support which were the appropriate size to convert for structure on processors Is badly needed. The Alaska Department of Fish and Game joint venture trawling. It was former large boat, Regulatory Predictability has virtually eliminated Its groundfish pro - non -resident crab fishermen who saw oppor- Alaska's fishing regulations are made by jects; has only one observer on the staff and tunities for U.S.-owned factory trawlers to de- Industry members appointed to the Board of has firmly stated its unwillingness to be in- velop a U.S. groundfish Industry. Fisheries. The board meets twice a year for volved In groundfish research or management In the salmon fisheries, where vessel size marathon sessions. There Is no criteria the as long as It has to coordinate with the federal Is limited by law, about 25 percent of the ex- hoard must most when passing regulations, government, which has management author - vessel value goes to Washington -based nor is there any appeal process outside the fty outside the state's three-mile limit. fishermen. Fishermen from Oregon and court system. As a result, there is no way for the state California also participate in the Alaska sal- The current board is dominated by salmon to collect the data on bycatch of halibut and mon fishery. seine and drift net fishermen. There are no crab In the trawl fisheries needed to determine The numbers indicate that where a large large boat fishermen and no trawl fishermen reasonable time and area closures which boat fleet is necessary, only about 10 percent on the board. would encourage groundfish fishing in state of the fleet will be Alaskan -based; where a During its March meeting the board closed waters and give adequate assurance against mix of large and small vessels can be used, major trawling areas in state waters to trawling unreasonable crab and halibut mortality by Alaska's share of the catch jumps to around — based on fear that trawlers might damage trawls. 50 percent and when the fishery Is limited to crab stocks. There was no data to support The federal government has shown the small vessels, Alaskans take 60 to 70 percent the board's contention, same unwillingness to work with domestic of the catch. Thought should be given to whether":. ,_, _ - _ :, :•�. policies encouraging Alaska residents to in- r vest in large vessels would increase Alaska's, . " , share In the groundfish and shellfish fisheries. The other obvious conclusion Is that non- resident large harvesting and processing ves• sets are here to stay and Alaska can profit by,, offering them services, transshipping t facilities and docking space. 3 Because Alaska has considered itself a state of small -boat fishermen, most of its har- bors and docks were built to accommodate small vessels. Even in Kodiak, which Is home to a number of large vessels, there is only minimal large vessel docking space. Raw Fish Tax The raw fish tax, a tax on every pound of fish passing the dock or deck of a processor '-j. r •p•s within the State of Alaska, has also served to encourage investment capital to look at A computerized filleting machine turns out 12o fillets a minute for Alaska Pacific Sealoods sudmi financing groundfish processing at Sea, out- line in Kodiak. The line was set up under an Alaska Fisheries Development Foundation grant as g p 9 a model suriml line. Ode state waters and beyond the reach of the raw fish tax. Though the board felt Its action was for trawling — currently most of the bycatch infor- Processors fought hard for some relief conservation reasons, it also had a disquiet- matron available is that collected by National from the raw fish tax and this year the legis• Ing effect on processors contemplating major Marine Fisheries Service observers aboard lature allowed credit up to 50 percent of the investments in groundfish processing equip- joint venture processors. The foreign com- tax owed for specified investments in shore- ment. panes paid the cost of the observers. based plants. It's too early to tell If the raw In short, processors realized that under the fish tax credit will result in any significant in- Current board system they would always be There has been talk on both the state and vestment in groundfish processing equipment in danger of losing the fishing grounds on federal level about making U.S. trawlers pay by shore -based Alaska plants. which their fleets depended — that there was for observers — which would preclude trawl. Floating operations pay a higher tax than neither dependability, rationality nor stability Ing by any but the largest vessels — which shore -based operations — a differential orig• in the states regulatory system. are non-resident vessels Involved in joint ven- Inally intended to encourage shore -based in- tures or factory trawlers. vestment, but In actuality it has worked to Any processor, before making multi -million encourage loafing operations to stay outside dollar Investments, needs assurance that the Shrimp trawling coexisted with crab fishir'. state waters. state cannot arbitrarily close down the fishery. for more than 20 years. The state maintained While the state government has a right to A similar set of criteria and method for on- a strong shrimp program and sent observers realize revenue from its fisheries beyond going education is needed for the Board of out regularly to monitor the bycatch of crab creating employment for residents, methods Fisheries if Alaska is to encourage shore- and halibut. that discourage shore -based investment are based groundfish processing. (Continued on page 5) Page 4 / RESOURCE REVIEW / September 1986 f.� L -Ij L N Bradley Lake work proceeds on schedule Site preparation work at the Bradley Lake hydroelectric project near Homer is proceeding .. - at an excellent pace and a contract for dam construction Is expected to be awarded early next summer, according to Lee Nunn, Chairman of the Alaska Power Authority Board of Directors. i, "We are especially pleased with the local hire effort of our contractor for the $20 million worth of site preparation work" Nunn told the Resource Development Council August 20. "The contractor, AIC/Enserch, setagoalof 96 percent local hire and has exceeded that mak" Over seven miles of road have been built this summer, Nunn reported. A temporary camp, airstrip, quarry and gravel pit have also been constructed. J ' Nunn, who also is construction manager for ARCO Alaska, Inc., sold APA has conditional agreements with Chugach Electric Association and Homer Electric Association for 100 percent of Bradley's output. APA is currently negotiating with all seven of the Southcentral utilities for t final contracts. The amount each utility can contract for will be prorated based on 1985 sales. Nunn said APA will not proceed with the contracts for the dam until these contracts are complete. He road pouodc arrive at an Alaskan processing expects to have them in place early next year. pant. Nunn said Bradley Lake will offer Southoentral consumers long -tern benefits. Once the facility has been paid off, the cost to generate power will be very low. Nunn explained that Grou ndfish seven cents per kilowatt hour In the early days of the dam will eventually drop to seven4enths of a cent. Given the 100-year life of a hydroelectric project, that means at least 65 years of processing ... very cheap power. Even with the drop in petroleum prices, Bradley Lake power remains competitive, Nunn (Continued from page 4) said. "Assuming $1.65 per thousand feet of natural gas (the current price) and a slow price Increaseover the next50 years, Bradley Lake maintains positive costlbenetitratio,"he said. A similar program would allow the develop- Bradley Lake has been recognized as a prime hydroelectric site for many years and was ' ment of a groundfish fishery with appropriate authorized by the U.S. Congress as a federal project in the Flood Control Act of 1982. time and area closures to protect crab. Conclusions For investors the options are clear — invest in at -sea groundfish processing and work within the federal system or invest in Alaska and face raw fish taxes, unpredictable regula- tion by the Board of Fisheries and a complete lack of state support. At this point, without some radical changes In direction, the State of Alaska may be deal- ing its residents out of participating in Alaska's groundfish fisheries. The entire picture could be changed 0 the state, Instead of talking about "Alaskanizing the groundfish fisheries" took steps to create a stable investment climate. I suggest that the state take a long look at the effect of the raw fish tax on investment in shore -based plants; fund and develop a strong groundfish program within the Depart- ment of Fish and Game which included an observer program to resolve the crab bycatch issues and set criteria, similar to federal criteria, governing the Board of Fisheries ac- tions. Without positive steps to encourage invest- ment in Alaska for groundfish development, the state can expect to continue to see the profits from its major resource flow outside the slate. Chris Slackbum is director of Alaska OroundBsh Data Bank, Kodiak, Alaska. L work on an access road to the Bradley Lake hydro project near How is prme ft on whodule- Notable Quote In the sometimes maddening rare of governor, in fact for all state political positions, candidates promised wider employment based on natural resources. But how cananygovemor — or any legislator — fulfill his promise ff the environmental organizations continue to bar the wise use of natural resources, which Is Gifford Pinchot'sclassical definitional conservation. —Chuck Herbert Anchorage mining consultant and a former president of Resource Development Council September 19M / RESOURCE REVIEW / Page 5 L L J I; ,t s • 1 j' j A it i Murkowski aims to make Committee adopts Alaska "Gateway" to Olympics Admiralty Island 17• legislation Over a quarter of a million people are expected to travel to the 1988 Summer Olympic Games in Seoul, South Korea from the United States, Western Europe and the Middle East and 0 Senator Frank Murkowski has his way, Alaska will serve as the Gateway to the Seoul The House Interior Committee has unani- Olympics with travelers disembarking here for an 'Olympic Vacation. "The mously adopted legislation designed to settle a long-standing controversy on Admiralty Is - 1988 Olympic Games in Seoul offer us an opportunity to bring visitors from around lend In Southeast Alaska. the world to Alaska," Murkowski said. "We will be able to open our doors to those who will The legislation, which was introduced by be traveling through our state and show off the abundance of human and natural resources Congressman Don Young, Chairman Molls we have to offer." To meet the challenge of making Alaska the gateway to the Olympics. Murkowski is working John Sei Udall and Rewould allow foor r expannsisi on of the GGrere n ens with Secretary of Transportation Elizabeth Dole to see that foreign airlines, most of which are Creek mineral operation on Admiralty limited to refueling and crew -change stops in Alaska, will have the clearance to disembark expected to employ approximately 20200 Alas - passengers during the period of the Seoul Olympics. Murkowski Is also the cosponsor of a bill to establish a pilot visa program which would kans within several years. It also provides an offer to Shoe Alike, Inc., to accept lands off waive visa requirements to encourage International travel to the U.S. by making it easier for Admiralty Island, where It presently owns certain visitors to vacation here. The three-year pilot program is designed to allow visitors from certain countries to visit the United States for as long as 90 days without the inconvenience 23,000 acres. In return for Shea Atlka timber of applying for a visa before entering the United States. The countries to be included in the lands, long the subject of litigation by environ- mental groups, the corporation would receive program would be determined by the Secretary of State and the Attomey General based on lands which will allow for the expansion of the the rate of visa refusal for their citizens and whether the countries reciprocate such privileges city of Sitka, as well as timber lands in the to American travelers. It is estimated that the visa waiver program would bring In another 400,000 tourists a year Bay of Pillars area on Kulu Island. "Alaska requires a diverse economy, and to the U.S. with Alaska receiving a good share. The Resource Development Council's Tourism Committee of the Renewable Resources this bill will aid in providing jobs in the mineral and timber Industries, and badly needed com- Division Is working with Senator Murkowski's office to advance these and other actions so munity expansion," said Young. Alaska can host travelers bound for the 1988 Games. jr Hearings set ANWR... �-x ��--�� • S on wi ':.-, (aontlnuedlrompage3) .:. :�'e ` Fifteen years of extensive oil exploration, Public hearings on whether the National �:►.<; ;.; development and production have already Park Service should add up to18millionacres r� ` • '.; - taken place near ANWR with no significant of land inside existing Alaska parks Into the °• Qa?�` >' d 4 ;'" environmental Impacts. In fad, a threefold National Wilderness Preservation System will = Increase In the size of the Central Arctic be conducted throughout September. The caribou herd at Prudhoe Bay and Kuparuk hearings have been set to gain public input ��.,�•• . 4 4 has oawred over the past decade. about wilderness recommendations. When construction of the trans -Alaska "We're just beginning to draft alternative pipeline was proposed, environmentalists wilderness recommendations that will be placed full -page ads in the New York Times analyzed in Environmental Impact State- and other newspapers around the country ments, and early public comments will help predicting widespread destruction of wildlife, us focus on the critical Issues," said Boyd unimaginable pollution and tremendous oil Evison, regional diredorof the Park Service. spills. The caribou was selected as a symbol The wilderness recommendations, re- quired by Section 1317 of the Alaska National by national environmental groups to prevent construction of the trans -Alaska pipeline. Interest Lands Conservation Act, are due to Congress In December 1987. New wilderness Mt McKinley hom Denali National Park. In the brewing battle over ANWR, environ- areas can only be established by an act of mentalists are once again using caribou as a Congress. this time how much of a presence they want symbol in their efforts to convince Americans "Since park management is somewhat re- the Park Service to have on these lands in to support their position. shiclive by nature, and since wilderness In the future." Studies have shown caribou to be one of Alaska is less restrictive than it is in the rest The Resource Development Council will the most adaptable animals to development of the country — the differences between the present testimony at a public hearing on this activities associated with oil and gas develop - two_ here are really quite subtle and meritcare- Issue in Anchorage September 23 at 7:00 ment in Alaska, the Soviet Union and Northern ful consideration," Evison said. "The Park p.m. at Park Service headquarters. Europe. However, environmentalists contend Service's options to develop visitor facilities Persons wishing to attend the meeting may that the Porcupine caribou herd in ANWR will on park lands are narrowed by wilderness contact the Park Service at 271.2492 for ad- designations. Americans need to consider at ditional information. read differently from those of the Central Arc - tic caribou herd at Prudhoe Bay. Page 8 / RESOURCE REVIEW / September 1986 L 7 - Conservation dependent upon industry " ... Only through the wealth and efficiencies created by industry can the environment be improved" — Dr. James R. Dunn "Neither environmental Improvement nor irrational reaction against the industrial sys. now, based on logic and not on political per - Improvement in the human condition are pos- tem that created the comforts and security suasion, that only through the wealth and ef- sible in this world without Industry, technology which we take for granted." ficiencies created byIndustry can the environ- and the wealth they create," according to Dr. Dunn's article pointed out that the emotion- meat be improved." James R. Dunn of the National Council for ally turbulent decades of the '80s and 706 Dunn cited the following examples: Environmental Balance. brought about radical changes in laws and • The efficiency of Industry, agriculture and In a report on the interdependence of in- perspectives about the environment. "Many transportation now make millions of acres dustrial development and conservation, Dunn of these laws and perspectives still bear the of marginal land uneconomic for farming. said that a basic danger In America's effort imprint of emotional turbulence," Dunn wrote, Thus great tracts of land, no longer cultf- to create an environment he from flaws Is "rather than the national scientific approach vated, have reverted to forest — more than that "we may excessively damage our induct• which is needed to conserve an environment 50 million acres since 1900. riai system." He said the system itself Is an that must support 230 million Americans In • As the forests have expanded Industry has "essential resource, and the base on which constantly Improving standards of comfort greatly expanded and Improved many the quality of our environment really rests." and health." wildlife habitats, Increasing major seg- Dunn added, "failure to understand this Is an Dunn said "a growing realization exists mentsof both bird and animal populations. - Reforested areas have greatly reduced X erosion, vastly improving the quality and recreational value of surface waters. - Greatly Increased treatment of sewage has Improved the quality of both surface water and groundwater. • Medical research and development have allowed a phenomenal Increase in the health and longevity of the U.S. population In this century. In static contrast, the less developed coup- tries — a great deal less Industrialized — are now undergoing the greatest human created environmental destruction in the history of the human race, Dunn said. "The bottom line for most of these coun. Idea is deforestation, destruction of plant and animal species, rampant disease, shortening life spans, high birthrates, deterioration of water and soil resources and ultimately star- vation," Dunn said. He stressed that industrial development and conservation are Interde- pendent. "Industry is often considered to be emrhon- mentally guilty until it proves itseff Innocent," Dunn said. "Considering Industry's excellent track record of compliance with environmental regulations, this is gross injustice. Our legal system affords better treatment of hardened criminals." Environmental laws are necessary; how- ever, "unless they are written in the aanos- phere of scientific understanding and reexamined objectively and systematically, they may be counterproducthre to environ- mental health and not In the best interests of the United Statm economically or emrirow mentally," Dunn concluded. September 19881 RESOURCE REVIEW I Page 7 L -1 __ 6__ . - _ L AlaskaPacific Bank commends the Resource Development Council for their work in promoting economic development in Alaska. They have worked tirelessly to broaden Alaska's economic perspective through diversification, without losing sight of sensitive environmental considerations. We appreciate and support their continued efforts to improve the quality of life for all Alaskans through sound resource development. AlaskaPacificBank A KeyCorp Affiliate 5� P.O. Box 100410 • Anchorage. Alaska 99510 Gomm "Onaw In MID pow 00 ra 0000" r rpnpM Me VWAS of Ib tpwww Page 8 1 RESOURCE REVIEW / September.1988 r Al 11 7. 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V \- O 50°d`ou a 60POOD 6 s N NCli N O ao c+ z i6 z zG � g c = 4 LU Q O d 44 f O •,- •I- M u" 41 b al N7 6 +3 N V w S ¢vim G O z � O Y in vi O w •C c} ate+ v Y V Z W O Ch S O M 5,;qvd, V, Z 0 0 0 0 r � o d a '� O pc « a 8c'o a a c i C 'gg s a < V K O C E E 0 y 'O p 'g � 0 d OD C7 c c o e a E x .6 Q d u .�L 7 �g�yAw�C CELL o o e LQu3 EEq.�� ° .w NF w HE rsE�; s 8P H d vo&-- }$ •ayr 3 d E c i tg cE AA oG �q1 C O ro�t�r> G N w N OI z d.o€SE O ae U M L m a o � •V 8 a i i I a ; g c o �A8 ro�'O o Fed d 0■ 1198 0 od M < j ,1 0 S°oii q o °«00 € U l- Q0f N G y 3 p O�Oy� ,o .YL •� CI xim p L' o� N .- « c o � a N! vc 3E�013°u O+yy� �,cy« an2 ro W y c•C y�i:H cySe��' • _s i 1 .J WINCE • CORTHELL • BRYSON CONSULTING ENGINEERS ► O Eon 1041 907.283•4672 KENA1, ALASKA 99611 City Of Kenai �. %;~';, September 24, 1986 210 Fidalgo Stree`•-' Job #86.37 Kenai, Alaska 9t0-kYl Subjects Amende'pil�:i'ng.aA'11r.00rt Way Inspection Please consider this billing for inspection services rendered on the subject from August 24th to September 20th, 1986. ENGINEER VII 293.5 HRS @ $58.00' $17,023.00 ENGINEER III 2.0 HRS @ $40.50' 81.00' SR. INSPECTOR (TEMPORARY) REPLACEMENT FOR ENG. C.MADDEN) 8.0 HRS @ $41.50� 332.00 TYPING 3.5 HRS @ $30.00' 105.00' SURVEYING INVOICE #86658 (1) 3340.00 + 10% 3,674.00' INVOICE #86058 (2) 8320.00 + 10% 9,152.00' INVOICE #86058 (3) 6240.00 + 10% 6,864.00- INVOICE #86058 (4) 3082.50 + 10% 3,390.75- TESTING INVOICE #5641 1370.00 + 10% N_1.507_000_ TOTAL $42,128.751* PREVIOUS AMOUNT PAID $23,508.00! TOTAL AMOUNT DUE %$I8, 20.75 If you have any questions regarding this matter, please contact us at this office at your convenience. Very truly yours, WINCE-CORTHELL-BRYSON P ILIP W. 8W-yib N:P.E ,�/e 13,E ki100,1697 Philip W {ryron ► E is Aloes N Cortholl ► E 1'03 COU1401. OF City Nigr. --- U AtUruel tb11.iiC �lWork, -- LJ Ci:y 'C�. fr i.il .. r _LJ 'rY_ GriU..d �� sLn,i.�eJ 6�OK L frank W Wince ► E -'J - J1 ESTIMATE CITY OF KENAIJ Page a:A F:O — % N0: 2 Project AIRPORT WAY 1986 WIDENING ;: •; e a Contractor ZUBECK, INC- ��` - Address 7983 SPUR HIGHWAY . . RENAI, AK 99611 '" Project No. 86-04 , (907)283-3991 Period From26 Aug 86to 20 Sept 86 Phone ANALYSIS OF ADJUSTED CONTRACT AMOUNT TO DATE ;} $660, 656. 45 ,' 1 Q r g f Net change by change orders .' O3 Adjusted contract amount to date h- 4 _ $660,656.45 ANALYSIS OF WORK COMPLETED ® Original contract Work completed OS Additions from change orders completed OMaterials stored at close of period 0 Total earnedO4 +O5 +@ ® Less retainage of 10 percent Total earned less retainage(D 10 Less amount of previous payments ;. 1© Balance due this payment '> re cc: Contractor Zubeck, Inc. Wince-Corthell-Bryson =i Engineer � $516017.65 0 0 $516017.65 $51,601.77-- $664415.88 y $204560.71 �! $25%855.17 ;iWLrb ur'v_-r—• LJ trey ..�. . J 1 I .. -•tea OrfOtnal 1.�— Submitted By Cwa¢II Oh U 0-05 �k--- L L i J Page 2 of 8 !' PAY ESTIMATE N0: CERTIFICATION OF CONTRACTOR According to the best of my knowledge and belief. l certify that all items and amounts shown on the face of this h thePerire Estimate ; for Partial Payment are correct-. that all work ban been performed and/or material supplied in full accordance with the requirements (: of the referenced Contract, and/or duly authorized deviations, substitutions. alterations, and/or additionsi that the forego Is a true and correct statement of the contract account up to and including the last day of the period covered by ibis Periodic "timatei i that no part of the "Balance Due This Payment" has been received, and that the undersigned and his subcontractors have•(Cheafr ; - - t apptlrsble line) �. A. Co pl with all the labor provisions of said contract. !; contract except in chose instances where an honest dispute exists with cc - It. Complied with all the labor provisions of said S spect to said tabor provisions. (it (b) to checked. describe briefly nature of dispute.) • t� ' Zubeck (Conutetor) (Q 'Authorlsea Rgreeentatlw) t f 190 Title Aedit: .. r, t - 4 1 0 — - -- - 4 .I All Al is .. . CERTIFICATION OF ARCHITECT OR ENGINEER I certify that I have checked and verified the above and foregoing Periodic Estimate for Partial Payment; that to the best of my knowledge -and e•and belief• it - is- a• itue-and,-correct etatement•ef work performed and/or -material supplied by. the eontra�ctori ehlt,all " ' VbtlianIdl"Mateiriol inbludeltltl'this Periodic Estimate has been inapeeted War and/di by mi duty aia"6orlied representative or assistants and that it has been performed and/or supplied in full accordance with requirements of the reference contract; and that pottial ymeat claimed and requested by the contractor is correctly computed on the basis of work performed and/or more- tial supp o dote. Signed j /ueb;toot or enalneer) Wince—Corthell—Bryson .. �... _» • Date �PRE•PAYMENTCERTIFICATION BY FIELD ENGINEER --• - •• Cheek ype of payment ee►tilledl 1have checked this estimate against the contractor's Schedule of Amounts (or Contract Payments, the notes and reports oI my inspections of the project, and the periodic reports submitted by the architect/engineet. It is my opinion that the statement of work performed and/or materials supplied is accurate, that the contractor is observing the requirements of the contract, and that the contractor should be paid the amount requested above. 1 certify that all work and/or materials under the contract has been inspected by me and that it has been performed and/or *up - plied in full accordance with the requirements of the contract. (field Bnalnear) Wince—Corthell—Bryson—� (Date) Approved (Contracting Offlesr) (Dots) L I r. P A'Y ESTIMATE 3 CITY OF KENAI A0 Project 1986 LA14TON DRIVE ROAD, WATER, AND SEWER MPROv•••LRVTS 4. Contractor ZUBECK, INC. j. Address 7983 KENAI SPUR HIGHWAY rt KENAI, AK 99611 Project No. 86-33 Phone 283-3991 Period From 8-18-86 to 9-19-86 ANALYSIS OF ADJUSTED CONTRACT MOUNT TO DATE Original contract amount $349,168.22 U2 Net change by change orders 0 ,01 O3 Adjust6d contract amount to date $349,168.22 ✓ ANALYSIS OF WORK COMLETED O, Original contract work completed �4. !3�. 82 ; YIF; OS Additions from change orders completeded 0 /7% Wo . .. Materials stored at -close of period . . 0 (D Total earned (D+G+G- $344,392.82 ✓ Less retainage of percent $17,219.64 Total earned less retainage(D _(D $327,173.18 It Less amount of previous payments $323,248.73 01 Balance due this payment 4 �A 5 3.92 ILY Mgt. T Council OK [3`16 [3y-s T, L L L —I a A Puss a 'of _.�... .. t PAY ESTIMATE NO:--= 1986 LAWTON DRIVE ROAD, WATER, AND SEWER IMPROVEMENTS CERTIFICATION OF CONTRACTOR' Accord to to the best of my know ledge and belief. I certify that all items and amounts shown on the face of this Periodic Estimate !er Partial Payment are correct; that all work has been performed and!or matctial supplied in full accordance with the requirements of the referenced Contract, andtor July authorised deviations, substitutions. alterations, and/or additions; chat the foregoing is s r true and correct statement of the conttact account up to and including the last day of the period covered by this Periodic Estimates Chat no part of the"Balance Cue This payment**has been received, and that the undersigned and his subcontractors have-(Cacok app.teaafr fJne) a• CompU with Al the labor provisions of said contract. b. C specs to said labor with all the labor provisions -of said contrttact except in those instances hete an honest dispute exists with to• r i sPccto provisions. (it (e) is checked, describe f•rleffy nerure of dispute.) t ZUBECK, INC. (contractor) By t (Sisnat Atahorraed Representative) 1 ,l9n�•,TitleAt'?S/4�.?r{� .. ,j •.Mwr..erMrwt�� 4 CERTIFICATION OF ARCHITECT OR ENGINEER 1 ct•rtify that 1 have chucked anJ ruriiivJ the ahrlve-.IUJ foxepoinp Pctialie fatimate ;act ftartiA. Paymentt that to the bewt of my knowle4v and beliei it -iv a true anJ correct statemunt of . 11k %nJ%or rcriottned ntatcrial wurrlieJ by Chu cuntroctot; that all work ant: Vf matctial incluJaJ oil this f'rrl%Qic Estimate haw been m.peetctl by me .1 of by my Jutv authori.:eJ repecwentatir,e of aaaiatants and th.0 11 h.1t, been putlurmcd a J'.v surplicJ in full ac.arJ.Ince with requirementr,ul the reierenee cuntractt and the ,.irtiadl .lyment cl.1imed Inj ruqut:st eJ by the eontractur is cutructly contrutej tin thu basis of wCyk Purmcd .►nJ!att matr- CIA .upPllelac J.ut:. url r tArent cr er vaKS"Ove WINCE—CORTHELL—BRYSON ' 24, tags Ua1e . .... PRE•PAYMEPirCERTIFICATIAN BY FIELD ENGINEER yr Chrak ry•p.. of Perot•nr rNtthrdt _ ._.._. ------_-__._ ._.. ... bare cbrclr.t chi. v.tlmatr a..lin.e 111r callot 6l.;lot . S.lu•t:uh• .+t dmnunr.. /n► Cwfrtcf All. a•nta. the nary. and re Pasta of my tn.p•at"n..•t riot rtah461..4nl th. I•vtoo.6%; n•r.•rt. •ul•rutta•,1 l•r tilt- arehltert vospinewt. It 1♦ Inv orouan that the %tatement nl Warr - : I•vrt.Vrry t ..lac at matt rl.ti..ul•1•la.t i. a:: actors, ulat thu . entractar 1% ahwrttn' the Ieyuttetna•nrw tot the contrail, .InA twat t:.e r.•nlra:tur .Iwul.l t•a• Pal.i IRI: anl.wnt h•yue.ta•J ahvvv. - — ;; ------ -- - -- (.. its:. tt...r ...: -A.•ti. an.i •rot 11.116'rla:. mtst t :hv a01t1d.I h.l. N.%o in. Iy .0 J !•? acre .InJ thou It hot. ',evil h rl.vmc.1 anJ '..t wuP• It.a t4tit .t.: utdalKe M. fr.Iul rrmvltt..•1 Ilty {l try° r^•�^••rt WINCE—CORTIIELL—BRYSON Coate, L :.nt..:t.ne vtr.:er. Data L I I 7-1 L.t tx�Y.ea L ZNPO "' 9 • Development Resource • 501 r u* sib 40o, wmp, hm ollol-we for Alaska, Inc. Sot too5it MdOn�, uana 815114511 — 8074764M �g10111?I3is EXECUTNE DIRECTOR It P. Easley September 15. 198 v Res' Arctic National Wildlife Refuge (ANM coastal plain Dear Mayors The Resource Development Council is gearing up for what we expect to be a hotly -contested issue in Congress --whether the ANWR coastal plain will be open to potential oil and gas development or placed in Wilderness status. We have assumed responsibility for soliciting expressions of support from communities and organizations within Alaska so that we can assure a unified position is presented from our state. We are also working to get support outside Alaska and will contact you later regarding those efforts. It will be very important for our congressional delegation 4 to be able to cite by name or number the Alaska communities that have taken official action in support of opening ANWR. A short fact sheet and draft resolution are enclosed. We would appreciate your circulating the material and ask that you place the issue on the next agenda of your council or assembly meeting. Please let us know as quickly as possible the action you have taken so that we can "zip up" this part of the project. Do call us if you have questions or wish additional. informations our expertise is growing by the day as we consider all aspects of the issue. We look forward to your response. Sincerely, RESOD DEVELOPMENT COUNCIL For a ka, Inc. Paula P. Easley Executive Director L.� L n • • ... DISTRIBUTED AS ANOTHER tt i MEMBERSHIP SERVICE BY THE RESOURCE DEVELOPMENT COUNCIL FOR A ARCTIC NATIONAL LDLIPE REP GE COASTAL PLAIN •C=r f� - - 4 �G4yV The Decision: Sometime in 1987 Congress will have the opportunity to decide whether it is in our national interest to open the coastal Rlain of Alaska's Arctic National Wildlife Refuge (ANWR) to oil and gas development or to designate the area as "wilderness." The coastal plain contains approximately 88 of the 19 million acre refuge and holds the nation's best prospect for a major onshore oil and gas discovery. How Should Congress Evaluate The Issue? Prior to making a decision on opening ANWR Congress should examine the 1002(h) report which is due to be released by the USPWS. This report was mandated by Congress in 1980 and will evaluate resource potential and environmental concerns. Congress should also examine external issues such as: National Imperatives: C America Needs Ml The United States must increase domestic production and offset its growing dependence on foreign oil. Today we import more than one third of our oil supply; by the year 2000 that is expected to be as much as two-thirds. Our economy and national security mandate that we not allow ourselves to become more dependent on unreliable foreign suppliers. The Middle East, our primary foreign supplier, is no more stable today than it was in 1973 or 1979 when we suffered such devastating shortages. Our own proven petroleum reserves and production capacity are dwindling. Alaska now supplies 20% of our domestic production, but that contribution will begin to fall in the next five years as Prudhoe Bay production declines. Unless we develop other domestic reserves we are doomed to increase our dependency on foreign suppliers. America Needs Mm Jobs And Economic Activity 7 Development on the coastal plain will generate economic activity �.-. and jobs in every state. Par instance, several hundred million dollars will be spent in the State of Washington if a major ; discovery like Prudhoe Bay is developed in the coastal plain. This spending will involve the manufacturing, construction, j transportation and service sectors, but does not include j indirect spending this money will generate in local areas. LJ V j If 1 _ r+ �, i� y Y.- . t The O.S. tanker fleet is predominantly employed to transport North Slope oil. Unless new supplies of petroleum are developed those tankers will be retired and their crews terminated. imported oil accounts for one-third of our trade deficit ($53 billion in 1984). We can reduce this substantially and enhance our trade opportunities by developing domestic resources like the coastal plain. A recent study by Battelle/DRI determined that oil and gas development on ANWR could increase the U.S. GNP by 1% and create more than a million new jobs around the nation. gg C.an Do_ 11 Without Harming = Environment Every significant species on the coastal plain has thrived alongside 20 years of oil exploration and production on many other North Slope areas in the United States and Canada. Caribou and a variety of important birdlife co -exist with oil development at nearby Prudhoe Bay. Through the use of modern technology and development techniques, impacts on permafrost, tundra vegetation and water quality can be minimal. Government and the oil industry have spent tens of millions of dollars learning how to operate in the Arctic without ruining aesthetic or habitat values. There is every reason to believe the Porcupine caribou herd will continue to increase in size as the Central Arctic herd has done alongside activity at Prudhoe Bay. gQ Nag Need More Wilderness In Alm Alaska has more than 50 million acres of congressionally designated Wilderness lands ( 15% of the state). Alaska also has 70 million acres of other National Wildlife Refuges and National Parks. Eight million acres of the Arctic National Wildlife Refuge have already been designated as Wilderness. We must set aside some lands to provide energy resources for the future. Why place such an impressive energy source in a Wilderness area when the important habitat and aesthetic values are compatible with reasonable development? L RBOOL10TION ON THE AMR COASTAL PLAIN WHEREAS, Alaska's Arctic National Wildlife Refuge includes more than 19 million acres of land, amounting to approxima- tely five percent of the entire state landmass, and WHEREAS, the Coastal Plain is approximately eight percent of the refuge, it is considered to be highly prospective for the discovery of large quantities of oil and gas; and WHEREAS, Congress has reserved the discretion to decide if the 1.5 million acres will be opened to further explora- tion, development and productions and WHEREAS, the petroleum industry has consistently demonstrated its ability to operate in conditions similar to those found on the oil range in a safe, responsible manner without significant adverse environmental impacts; and WHEREAS, the United States must prepare to develop domestic petroleum resources if it is to preclude overwhelming dependence on foreign petroleum sources in the 21st century; and WHEREAS, the value and development potential of state-owned tidelands and federally -owned OCS lands offshore of the ANWR Coastal Plain would be enhanced by a Congressional , decision to open the oil range to further exploration, development and production; and WHEREAS, facilities developed to transport petroleum resources on the oil range to Pump Station One may allow marginal discoveries between the ANWR oil range and Prudhoe BVay to be developed; and WHEREAS, national energy security depends on the development of domestic oil and gas resources to replace depleted O.S. reserves; and WHEREAS, the nation stands to derive revenues including portions of bonuses, royalties and rents from Oil •and gas development; and WHEREAS, opening the ANWR oil range to further exploration, development and production will generate increased employment and business opportunities for all ' Americans; j THEREFORE BE IT RESOLVED THAT strongly { urges the Congress of the United States to open the ANWR oil range to environmentally responsible oil and gas exploration, development and production. L L f M-1 ,47-me NED 11WoYA i A,PG O N 0*0 Ffi C S rives y /W6,*r sf/oivT /S 7NE /Yi4 rjl���� Al =-, K' ,Al' t :� oot *4`06 r�r� Pa,9ci� Ti'fF rt'E�v�tT/Sow O 07WA T/ � i 7WC C�vatsc ♦CI PW. 4 i LAM Pvk buY..oil. MEt1/04 6IN6 Of --� guy mqr. _J3 AtMey uouc works --[3 City Ckdt Finance --0 Orlonal To-- Submitted By- COoncil OK (34-0 DYes Cil— Is SIGNED DATE -- L KENAI - SOLOOTNA TRAFFIC STUDY Public Meeting September 18, 1986 W Alaska Department of Transportation The TRAIISPO Group, Inc. DOML Engineers Stuart Denslor Z Associates 7 Y " 11 To identify improvements to the existing roadway system which will facilitate movement of traffic in and around the cities of Kenai and Soldotna. I "-I 4 li ) f I + f % I; STUDY PROCESS ) i • Goals and Issues Identification �f • Transportation Inventory if - {: • Development Patterns " • Existing Needs • Travel Forecasts and Alternatives • Project Identification and Evaluation • Transportation Improvement Program • Report ,f I It e „ fi 'r; h 1 i r i , �. ,i r ..F ,? F a i PROBLEM IDENTIFICATION • Types of Problems • Sight Distance - Access Control - Accident Locations - Poor Geometry - Drainage - Signing - Others • Locations of Problems • Relative Importance - Safety - Congestion :ss 3strian Facilities ers i l 1 Is - Figure o KBNAt/ ROAD SYSTEM "lop + 6OLOOTNA 1} I —I Flour* a AVERAGE ANNUAL ACCIDENTS 11 `l 11 � Aw A A \ Via - a MUM t) _ 6 . d, Illllllq c�roitweuas�at.�u A Mo"Nt showier, i 8 —11 KENAI/ piouts T owl SOLVOTNA SNOYLDSII CONDITIONS „1 -I I <; II i .i r. f 0 J F a/3, 7 0, "hoq4 carmen vincent gintoile architect 130 trading bay road, suite 330 kenai, alaska 99611 907 283-7732 `Q ti C7 V`TOF sAIr-O - // September 23, 1986 ,•}-� . City of Kenai 210 Fidalgo Kenai, AK 99611 Attention: Keith Kornelisr Director Public Works Department Res Invoice for Observation Services #2 Automated Flight Service Station 8/22/86 through 9/19/86 CONTRACT AMOUNT: 0 30.000.00 DUE IBIS INVOICE: 8 y S3s. 0 0 �ogQ PREVIOUS EARNED: S 3.913.50 TOTAL EARNED: 8 f Y Y[r. S'o LESS PAYMENTS: S 3.913.50 WE: �Pq�rjsr-00 C44 MM YOU .' _�J.,Y,L JOLCIL.N OF L-1-4 mL-j ,,,, ,,,,r. ---CJ wttornc/ FIV �...r.. .wrk; ----Lj City Gera U GI�•di 1 �OgO.IttC{i /� J.u:i UK (]::o (-js►t Ck-- L K 4 r 5NPO-19- CITY OF KENAI ,,Od Cap" of 44"a 210 RIDAL0IO KENAI, ALASKA M11 TELEPHONE2e,3-MB September 26, 1986 MEMORANDUM TOt Kenai City Council �y� FROM: Randy Ernst, Airport Managet— RE: Federal Express Federal Express has requested that the resolution regarding their request for lease space in the Kenai airport terminal be postponed to the October 15, 1986 regular Council meeting. Their letter confirming this is forthcoming, but was not available at packet time. It will be carried into the October 1, 1986 Council meeting. RE/dg L L �l zAlPO-i3 AML NEWSLETTER Volume 8, No. 1 ALASKA MUNICIPAL LEAGUE November 1986 Motivational Keynote Planned for Conference Richard Anderson of the Edge Learning Insti- tute in Tacoma, Washing- ton will address the dele- gates at the second lun- cheon and general ses- sion on 1 hursday, Novem- ber 13th of the 36th An- nual Local Government Conference in luneau. Mr. Anderson is a na- tionally -recognized speaker, and consultant to business, education, and government organi- zations nationally, special- izing in supervisory and management development. With local government leaders facing increasing demands from �1ir constituents, and with the state and eral government mandating more responsibilities with decreasing financial assistance, a positive attitude on the part of municipal officials will be even more im- portant. Mr. Anderson promises to provide a motivational message to stimulate our conference policy discussions, and send the conference delegates off, better able to face the challenges facing their municipalities. Author/creator of Edge Learning In- stitute's audiolvideo'lime Management" system, Mr. Anderson is also responsible for the development of Edge's 'Total Self - Management" workshop, and Edges Canference Kgnote Speaker — Richard Anderson of the Edge Learning Institute will address the AML Conference delegates at noon on November 13, 19861n Juneau. CENTENNIAL HALL — Juneau, Alaska: Site of the 1986 AML Annual Conference, roouemoer 1949, Jym newest offering "Self -Esteem: The Key to Effective Leadership." Prior to becoming President of Edge Learning Institute and a keynote speaker and workshop presenter, Mr. Anderson was a corporate executive in a sales company in California, and an educator/coach at the high school and community college levels. AML Insurance Program Growing Approximately ninety-eight entities, municipalities and school districts, signed up for, or renewed, their casualty and liability insurance policies with the AML Insurance Program in July of this year. Representatives for Frank B. Hall & Co. of Alaska, brokers for the AML Insurance Pro- gram, and AML staff worked quickly to bind the coverages to insure coverage in this difficult market. While coverages are still limited and prices still high, the pro- gram has continued to grow and respond to the needs of AML members. As reported in previous "Bulletins the Board of Directors has asked Frank B. Hall to submit a proposal for a joint insurance arrangement 01A) or pool under the authority of SLA Chapter 136 (HB 506) for further consideration. The Board will review the Frank B. Hall proposal, and any other proposals submitted, at their meeting during the AML Conference in Juneau. If a self-insurance pool is feasible and will better meet the insurance needs of our membership, the Board will take fur- ther steps to establish a IIA by July 1,1987, at the earliest. In the meantime, the AML Insurance Program continues to meet some of the in- surance needs of the AML membership. For further information on the current Pro- gram, contact the AML or Jody Smith, Ac- count Executive, Frank B. Hall & Co. at 274-2662. AML Welcomes New Members The league welcomes the following new municipal members since June: Aniak (population-475); Emmonak (641), Holy Cross (238); Chuathaluk (123); Kotlik (414), and, Brevig Mission (159). Welcomes as associate members, the law offices of Timothy G. Middleton, 717 M Street, Anchorage, AK 99501.3307. Also join- ing the AML were the following school districts: Chatham, Chugach, Iditarod, Aleutian Region, Annette Island, Kuspuk, Lower Yukon, Lower Kuskokwim, Southwest Regional, and Pribilof. Official Notice Change The Alaska Municipal League an- nual business meeting will be held in the Centennial Hall in Juneau at 12.00 noon on Friday, November 14, 1986 - the last day of the 36th An- nual Local Government Confer- ence. Major agenda items include the adoption of the 1987 Policy Statement and the election of AML officers and directors for the up- coming year. only delegates of member municipalities in good standing (dues paid) are eligible to vote. 7 J Lr. Strategic Planning for Economic Development by Wrginia L. Wblf tronomk Development Specialist Midwest Research Institute (MRI) has assisted communities across the United States in setting up their own economic development programs. MRI's experience has shown that the key factors of a suc- cessful economk development program are well4efined goals and objectives, a focused marketing effort, and people who can make the best use of available finan- clal and technical assistance programs. Although mid -size towns and metropolitan areas have been involved in this process for many years and are com- peting efWilvely with their counterpart communities across the nation, many smaller communities and rural areas have just recently became involved in economic development efforts. largely as a result of the changing role of agriculture, many of these smaller communities have chosen to promote their area's economic develop- ment as a way to expand or diversify the local economic base: This article discusses the process that should be followed by a commumly wishing to start en economic development program. Based on MRI's long experience, the process is essential- ly the same, regardless of the size of the community. Organizational Efforts The first step in the process is to establish an organization to lead the effort. To be effective, the organization must be broad based so as to have the best possi- ble financial and resource support. It must Include representatives of the following groups: chamber of commerce, civic groups, educational Institutions, elected officials, existing industry, financial institu- tions, labor, media, retail sector, utilities, and interested citizens. The first task of this organization will be to establish goals and objectives. Matters to consider are: a What does the group want for the community? • Are some forms of economic activity favored over others? • Are some types of industry not wanted in the community? This organization must set a clear direc- tion, and a group which is represented by all sectors is in the best position to pro- vide this direction. Resource Asseesrstent The next step in the process Is to con- duct a resource assessment which iden- tifies community factors that either positively or adversely affect Industrial base, industrial sites and buildings, labor force, population, transportation, and utilities. The material developed during this phase of the analysis can be used in preparing promotional materials and documents relative to prospect marketing. Among the questions to be answered are the following: • What is the current profile of the com- munity's population and labor force? • What Industries currently exist in the community; and historically, how have they grown or declined? • What is currently being done to pro- mote the central business district? • Are there specific resources, such as tourism or education, which make the community particularly attractive? • What does the community have to offer in terms of industrial sites and buildings? • Does the existing labor force match the needs of prospective business? • Can the city's physical Infrastructure meet the requirements of new Industry? • What were the successes and failures of past economic development programs? If a community already has organiza- tions formed for economic development rposeso they should be reviewed. Usual- y, in both large and small communities, there are too many organizations to be ef- fective because of their overlapping pur- poses and memberships. The goals and objectives of each existing organization should be reviewed and, if possible, a single organization formed to promote in- dustrial development. A single organiza• tion whose sole purpose is to promote in- dustrial development will more likely make the best use of community resources. Identifh adon of Industries Once a community has assessed its resources for promoting economic development, the next step is to identify those Industries which show the best potential for locating in the community. This identification process, called a target industry analysis, provides a focus to marketing efforts and makes the best use of community resources. At a minimum, a community should examine its own in- dustrial base, the Industries of the county in which it is located, and those of sur rounding counties. Personal calls should be made on major area manufacturers to ascertain their expansion plans, the loca- tion of their supplier industries, and in- dustries which use their finished products. A list of the state's manufacturers who are new or who have expanded should also be reviewed to determine the types of manufacturers who are choosing to loy") In the state. MRI recently conducted a target industry analysis for the Missouri Division of Com- munity and Economic Development. The end result of this study was the Identifica- tion of Industries best suited for locating in metropolitan, in mid -size, and in rural areas. This information should providethe basis for a Missouri community involved In targeting efforts. Development Plan The last step that a community takes in promoting Its economic development Is to formulate a development plan. This plan should Include, at a minimum, strategies, identification of person or groups respon- sible for Implementation, and a timetable for implementation. Some general areas to be included in t Malteting: Amngreprogram must b•focused and consistent. It does not have to be elaborate. The use of local resources such as academic institutions, newspapers, or existing industry can often help provide technical assistance in the development of marketing materials. • industry Retention: An average of about 80 percent of all economic growth across the United States is attributed to tom, expansion of existing industry. Cok_ munities are only recently starting to put resources into this Important activity. An active and effective retention program is not only beneficial to keeping existing business and Industry in the local area, but also it serves as an attractor for generating new Industry. These new Industries will perceive the community as pro -industry. • Local Incendm Pierre Local incentives include the latitude the community has in using state development incentives such as property tax exemption or industrial revenue bonds. Also, a community can utilize special arrangements on land, buildings, and utilities. It Is Important to have an established plan so that when the community representative approaches a prospect, the Incentives that are available can be discussed at initial meetings. (continued on page 5) AML NEWSLETTER 105 Municipal Way • Suite 301 • Juneau, Alaska 99801 • (9(V) S66-1325 STAFF: Scott A. Burgess, Executive Director and Editor Timothy R. Smith, Programs Manager Phyllis H. Urson. Administrative Assistant Page 2 September 1986 7 L. Committee Studies Tax Policy ( ,he Joint Special Committee on Statds Tax Policy, created by the 14th Legislature, has begun Its work to address the merits of, and make recommendations concern- ing "a long-term, broad -based and stable tax policy to minimize taxes and foster economic growth." The Committee is co- chaired by Senator Frank Ferguson and Representative Ben Grussendorf. The Committee has until the 11th day of the Se- cond Session of the 1Sth Legislature to make its findings and recommendations, but at its first meeting, July 21st, Governor Sheffield had asked the Committee to ac- celerate its work to make recommenda- tions for the next legislative session. Ac- cording to the minutes, Senator Ferguson indicated that it "was doubtful any substantial recommendations could be made by then." The Committee and Its charge was set up by Senate Concurrent Resolution 42. In addition to Co -Chairs Ferguson and G►ussendorf, the legislative members ap. pointed to the Coinmittee according to the legislation include Senators Abood and Ellason, and Representatives Sund and Martin. The members representing the private sector include Dave Rasley, operating Engineers, Local 302, Fairbanks; t >� tt Garber, Alaska Native Programs, UAF; and, George Nelson, Standard Alaska Pro- duction Company. The ex-officio members from the administration Include Dick Monkman, Department of Revenue; Gor- don Harrison, OMB; and, Barbara Her- man, Department of law. The first meeting of the Committee centered around defining the task ahead, a review of the State's current tax and revenue picture, and description of infor- mation desired by the members for their deliberations. The next meeting was scheduled for September 11 in Anchorage and the agenda was to focus primarily on information about the Economic Limit Fac- tor (ELF). For more information, contact Peggy Sepulveda In Senator Ferguson's of- fice at 465-3862. Mental Health lands Resolution Needed AML President Dan Keck has appointed Chip Dennerlein, Manager of the In. tergovernmental Affairs Office for the Municipality of Anchorage, to represent the League and Its member local govern- ments on the joint Special Committee on Mental Health Trust Lands. The Commit- tee was set up by the 14th Legislature (SCR 36) to resolve the issues resulting from the Weiss v Alaska litigation in which the Alaska Supreme Court ruled that the 1978 decision of the Alaska State Legislature to redesignate mental health trust land, granted in trust by the federal government to the State, as general grant land had breached the trust established by Con- gress. In a letter to Senator Rick Halford, who co-chairs the Committee with i ,t { go" Mee&S in Ko" — The AML Board of Directors met In Kodiak on August 1S-16, 1986 to approve, among other things, the AML budget and the draft 19PAML Policy State- ent See this Newdette► and the August "Special BulletW for other actions. Shown ove am members; AML 2nd Vice President Heather Flynn (from left to right) a `Anchorage, AML 1st Vice President George Carte of Palmer, Dennis McCarty of Ket chikan Gateway Borough, Phil Reeves of Kenai Peninsula Borough, Kristin lambert of Soldotna, and John Pugh of Kodiak. I Representative Pat Pourchot, Keck said, 'The decision in Weiss v Alaska has cast a shadow over the status of those lands selected by municipalities and approved by the State. An expeditious and fair resolution of this problem is necessary in order that muncipalities can continue to plan for and provide land essential for growth and development of our com- munities.• The other legislators serving on the Committee Include Senators Betty Fahrenkamp and Paul Fischer, and Representatives Max Gruenberg and Marco Pignalberl, The Committee chose to appoint representatives of the plaintiffs and interveners in the Weiss case as two public members required by the legisla- tion, but have included Mr. Dennerlein in a larger working group comprised of other affected by the mental health lands issue. For muncipalities, the discussions concer- ning the resolution of the issues resulting from the Weiss case are of critical interest. This interest stems from municipal selec- tions of mental health lands pursuant to AS 2% 6S, selections of "redesignated" former mental health lands which were selected by certain municipalities as general grant land following redesignation by the Legislature in 19A and community interest in various mental health lands which were designated for public uses such as parks or refuges. All of these potentially affected by the resolution of the Weiss case, and by the Department of Natural Resources (DNR) Revised Depart- ment Order No. 121 which "freezes" municipal selection approvals and con- veyances. According to information provid- ed to the Committee by DNR, approx- Imately 23,286 acres have been patented to municipalities, and 18AI68 acres have (continued on page 4) Submit Resoludons Early To repeat the Information given in the August 29th 'special Bulletin; resolu- tions to be considered by the delegates at the annual conference for inclusion In the 19V AML Policy Statement must be typewritten, submitted bya member delegate, and available to the AML staff by I&M a.m. Wednesday, November 1Z 198b The Board of Directors made the change in the resolutions procedure at their August meeting in Kodiak to in- sure that adequate opportunity for review and comment is given to resolu- tions. The resolutions will be reviewed by the Resolutions Committee and sent to the appropriate policy section for debate and recommendation. AML Newsletter Pkge 3 7 L.� Is Mental Health... (continued from page 3) approved for patent by DNR. For further information, contact Representative Pat Pburchot (465.3712) and/or Senator Rick Halford (465-4958). The 14th Legislature also passed legislation (SB 472) which also set up an Interim Mental Health Trust Commis- sion in DNR. The Commission was created to oversee the management of mental health trust lands consistent with the 1985 Weiss decision, and to develop recommendations for legisla- tion relating to those lands and mental health programs of the State. This group is actually reviewing actions on mental health lands subject to Department Order 0121. The members include Esther Wunnicke, Commissioner of Natural Resources; John Pugh, Commis- sioner of Health and Social Services, George Rogers of Juneau, representing the plaintiffs; Lidia Selkregg, represen- ting the interveners; Sharon Lobaugh of Juneau, representing the Governor's Ad- visory Council on Mental Health. Recommendations of this group are to be presented to the Legislature by the 10th day of the 19V legislative session. Questions regarding the Commission's activities should be directed to Tony Braden, DNR, at 752.4370. News From Community and Regional Affairs The following news items were recently released from the Division of Municipal and Regional Assistance (MRAD) of the Alaska Department of Community and Regional Af- fairs (DCRA): RDA Grant Awards: During the June round of the RDA grant program, 77 communi '. requested grant funds in excess of $6,024018. Marty Rutherford, MRAD Director, selected 25 grants totaling $1;ooAo0 to be awarded. There will not be a second round of funding RDA grants this December. The program was originally funded at S2AOOAO , but, at the direction of the Governor, reduced 15%. Following is a list of communities, the project, and the amount awarded each grant: Sunshine $ 60AN Dental Component Sand Point 50,000 Clinic Upgrade Port Lions 10,000 Scallop Farming Newhalen 60,900 Waste Water System English B 97,500 Sewer Project Russian Mission 83,000 Heavy Equipment Sheldon Point 99,750 Health Clinic Y/K Region 61,152 Generators Mt. Village 97,500 Bulk Fuel Storage Facility Kasigluk 70,450 Fire truck/Pumper Toiak 100,000 Fishery Wharf Chi nik Bay42,057 Electric Upgrade Clark's Point 100,000 Fuel Storage Facility U shik 9,110 Freight for Equipment Nulato 63,050 Fuel Storage Facility Koyukuk 26,567 Fuel Storage Facility Tok 42,383 X-Ray Equipment Craig 100,000 Police Department Hoonah 90,000 Day Care Kasaan 56,500 Sanitation Facility Teller 95,286 P.S. Building Dlomede 95,000 Health Clinic Gambell 50,515 Health Facility Golovin 82,280 P.S. Building White Mountain 55,000 Office Renovation (continued on page S) ,Wdm Delegates at NW — The National League of Cities' 1BB6 Congress o7 Cities Will be held November 29. December 3, 1986 in fan Antonio, Texas. Shown above (from left to right) is the Alaska voting delegation during the NLC annual business meeting of the 1985 Congress of Cities held last November /n Seattle. Alade Stanton of Ketchikan, Paul tNhitney of Fairbanks, Val /ackson of Keichlkan, AML President Dan Keck of Sitka, AML Executive Director Scott Burgess, AML 2nd Vice President He Flynn of Anchorage, Elaine Seymour of Keichikan, and Chlp Dennerlein of Anchorage. See August "Special Bulletin" for further Information on the 1986 Congress of Cities in San Antonia Page 4 T Sea Farming Group Established The growing interest in mariculture or sea farming has resulted In the decision to form a trade organization designed to promote the growth of a mariculture In- dustry in Alaska. According to Roger Painter of the Alaska Mariculture Associa- tion (AMA), mariculture offers one of the best opportunities for diversifying Alaskafs economic base and providing greater employment stability in coastal com- munities. Alaska has the potential of becoming a major exporter of mariculture products which will enhance the existing seafood industrys competitive position in the world marketplace, says Painter. The AMA wil be an umbrella group pull- ing together the various Individuals, organizations and companies interested in mariculture, act as a clearinghouse for in- formation, and will advocate policies favor- ing mariculture development. A steering group of three individuals will guide the Initial development of the organizati( They include: Paul Fuhs, President of tiw (continued on page S) aciammuer w W L News From Community and Regional Affairs (continued from page 4) Letters of awards and denials were to be mailed by August 15th. A grant agreement, hlch Is prepared by a DCRA Grants Administration section, will be mailed to those receiv- ing a grant. Once signed by the community representative and by the Department representative, funds will begin flowing. New Documents: The Division is just completing a number of new publications. Copies of each can be found at all DCR/4MRAD Regional offices. Site Control Designing Floodproofed Residential Homes in Alaska Aleutians East Regional Government Study New RDA Applications DCRA State of Alaska Maps (1 was sent to each community) Alaska Statutes Title 29 Municipal Government Comparative Edition (Revised Edition, 1 complimentary copy sent to each municipality) Incorporation of a City in the Unorganized Borough Incorporation of a City in A Borough National Petroleum Reserve — Alaska (NPR.A) Grant Pmgram: All municipalities were sent an application for this grant program. This program provides funds to municipalities that are experiencing or will experience direct and severe impacts from oil and gas develop- ment within the NPR -A. Any municipality Interested in applying may inquire at the nearest DCRA.MRAD Regional Office. NO Workshop in Nome: DCRArMRAD (Nome) has tentatively set up a 14c workshop to be held in Nome at the Northwest Community College from December 1 through December 5,1986. At the present time, the only three Northwest villages who have com- pleted or are near completion of their 14c work are Council, Solomon, and Unalakleet; (71 most other villages would benefit from this workshop. Topics to be presented are ,s follows: (1) Review of maps, reading, legal description, title instruments and recorda- tion; (2) Native Allotments; (3) Federal Townsites; (4) Easements; (5) State land Disposals; (6) Site Control; (7) ANCSA Section 14c. For more information, contact Gary Longley, DCRA-MCAD, P.O. Box 41, Nome, Alaska 99762; (907) 443.5457. Strategic Planning for Economic Development (continued from page 2) • Technical Assitancm Many com- munities, both large and small, tend to isolate themselves from resource provid- ed by state economic development organizagons, utilities, and railroads. This Is a mistake since these organizations are in daily contact with prospects and can serve as an important resource for referrals. This article has outlined an approach to the structuring of an effective industrial development program that MRI has found to be highly effective. Attracting develop- ment to a community is a time-consuming process which requires considerable sup• port from the entire community and ac- tive involvement and commitment from local leaders. If the proper organizational structure is in place, and it includes peo- ple and organizations that are committed to the program's Implementation, a well - designed program can succeed. A focus- ed, coordinated Industrial development program can result in considerable economic gain for the smaller communi- ty that Is willing to pull together. Reprinted from "Mississippi Municipali- ties;' August 1986. Sea Farming Group Established (continued from page 4) Southwest Municipal Conference, Mayor of Unalaska and a partner in a company interested in farming shrimp and salmon; Robin Larsson, President of Alaska Shellfish Growers Association and owner/operator of an oyster farm near Wrangell; and, Rick Harris, Vice President of Sealaska Corporation which is in- terested in the development of mariculture in Alaska. for further information and comments on the development of the organization and mariculture, contact Rodger Painter, AMA, P.O Box 020704, Juneau, Alaska 996024FM EVERYONE IS A W/NNERI — AML Presi- dent Dan Keck selecting the winner of a 35 lb. king salmon at the AML booth at the NW annual conference in Seattle last November. Carl Meissner, Administrator, of Cottage Grove, Minnesota won the salmon as an AML door prize which was to be donated by the Alaska Seafood Marketing institute MSMI), and delivered to Mr. Meissner in Minnesota. The booth was a blg hill It was organized by the AML with theassistanceo(GinnyChitwoodand Shari Gross In Seattle, and was cosponsored by the visitors and convention centers of Nome, Fairbanks, Anchorage Sitka, and the Anchorage Olympic Committee. L Par t� I Where Are We? brought changes. With recent declines in membership. Therefore, such an evalua- oil revenues, municipalities are having to tion process must involve them. Where Are We Goings re -think priorities, and to find ways to do The membership will have to decide 11 1 So it is a riate that the what it wants from the AML. The AML h And how do we get theret These are the questions the AML hopes to answer over the next year with the help of the member- ship, the Board, the staff, and, probably, a consultant. The Board has authorized staff to investigate further the cost and pro- cess of a strategic planning effort to deter- mine how the League can better serve its members in the future. The staff is now seeking statements of interest and qualiflcations of professional consultants, individuals or firms, to assist the AML In the process. The AML, and the membership it serves, have changed considerably In the 36 years since the League was formed. The membership alone, now at 119, has Increas- ed almost 300% since 1966, and 40% since 19ik1 Major changes have occurred in our municipalities, and in the way we govern and serve them, as a result of growth, technology, and legal requirements. The economy, at the local, state, federal and even the international levels, has also more w t esa pprop AML undertake a little Introspection to evaluate the organization and the services the League is providing now, what the membership might need or want It to pro- vide in the future, and how about Im- plementing any desirable changes. The implementation of the AML In- surance Program was a significant new direction for the AML in proNding services to its membership: The further developp.- ment, if feasible, of the program Into a self. insurance pool will be even more signifi- cant. cant. Other state municipal leages are pro• viding a variety of services across the coun- try to assist its member municipalities, both at the legislative and service level. Such prnarams must he evaluated in terms of priority, benefit and cost. Time and resources are limited, and increases in pro- grams cost money which must come from dues or fees. The ultimate cost/benefit decision for the continuation of existing programs, or implementing new ones, must be made by the Board and the a great potential to help its membf, municipalities pprovide services collectively, more efficiently and effectively, than can be provided individually. The staff is advertising for a statement of interest and qualifications of profes- slonal consultants who might be chosen by the Board to assist the AML in develop- Ing a strategic and action plan for the AML over the next year for the Leaguers future. Working with the consultant, primarily as a facilitator, the Board will evaluate the cur- rent programs and services, Investigate the desirability and feasibility of new Pro- grams, and develop a plan for maintaining and improving current programs and im- pplementing new ones. This could be done by using membership surveys, focus groups, reviewing successful programs In other state leagues, etc. In any event, the usefulness and success of the process and the product will depend on the active par- ticipation of the membership, the Board and the staff. You've been prewiftaring your city forthefirhrre for ieveral'years, Now ifs time to get on witl 1 I 4 e B September an 'take the fast steps at the 1986 Congress of Cities. Discover the four keys that vA open the future for Sm dt . Learn how partnerships, management, capacity, and people can add up to a promising tomorrow for your dl And then go home —ready to move ahead. National 1"Pe of Cities 1986 Congress of Cities & Exposition November 29—December 3, 19811 San Antmilo, Texas L_ For tug uttoormaton wnte to me. NLC Conference Registration Center P.O. Box 1741% Dulles hMnational Airport Wasldn", D.C. 20041, pr call (202) 6263M. L_ L. ANOTHER VIEW This column appears periodically in the AML Newsletter presenting views on sues of general interest to all ►unicipalities. The views are those of the author, and are not necessarl/�yy those of the AML. The articles are prin:2 t the discre- tion of the Executive Director. Views on other local government topics, or in resppoonnse to the one presented here, are welrnmed. Changing Times: Fiscal Adjustments for Alaska Local Governments by George Goldman and Anthony NaWawa With rapidly declining oil prices, the coming fiscal year will begin a period of major fiscal adjustments for Alaska local governments as the State of Alaska's budget reflects the changing price of oil. For many in Alaska, these will indeed be 'changing times:' This will be especially so for Alaska's local governments who derive a significant amount of their operating revenues from the state. The major source of funding for these municipal governmental units has been state sources such as state revenue shar- ing, municipal assistance payments, and legislative appropriations for local con- struction projects. These state sources, in total, have comprised for some local �rnments over 90% of their past local rnment annual revenues. In many communities throughout the state, there Is very little revenue generation. At the local level, these declines in revenues will result in cuts in local govern- ment expenditures and services. Under these conditions, what gets cut? Capital ex- penditures, both for new facilities and for maintenance, will be one of the first areas that will get cut. Reduction in personnel frequently will follow. Areas that will be perhaps disproportionately cut more than other pZnd ms will be recreational pro- grams libraries. Expenditures for public (police and fire) and general administration, probably will not drop very much. What are some ways governments can manage under these situations? This short article discusses the follow- ing: the common methods of coping with local government fiscal decline; several cutback managgement strategies; and presents some nteresting problems and paradoxes in fiscal decline situations. Listed here are five common methods of coping with local government fiscal decline. The first of these frequently ef- fects employment. The traditional method is adjustment by seniority, which means that those workers who have been around for the shortest amount of time are laid - off first. The main advantage of this ethod is that there is a certain kind of ..— uity that most people intuitively unders- d. The disadvantage is that seniority considerations may have little or nothing to do with efficiency. Should what is trim. AML Newsletter med be determined by the accidents of how Ion g employees have been around? Even within a program area, should a long term employee be kept and a new, perhaps more efficient, employee be let g Never- theless, at the present, seniority considera- tions seem to have a solid standing in our legal and cultural Institutions regarding personnel. With minor (less drastic) fiscal cuts, many local governments opt for hiring freezes, personnel retirements and resignations to reduce budgets. This is ac- ceptable since no one has to be fired or laid -off. This method, however, has all the disadvantages of the seniority the - the cutbacks are not related to the cost of effectiveness of the programs affected. A third method of coping with decline Is to allocate a set percentage cut across all programs. This method also has a cer- tain kind of non -political, more effec- tiveness equity attached to it, but it has the same disadvantages of the methods men- tioned above. While this method Is easy to Implement, it is not related to the value of the program involved. Another method of reducing expen- ditures is by means of productivity or value criteria. Programs could be judged accor- ding to productivity or value to the com- munity and cutting off those determined to be the least productive or valuable. While theoretically sensible, it is politically difficult to Implement. It is very hard to drive an objective measure or productivi- ty or value convincing enough to protect sector administrators against the criticism from the leaders whose programs are cut. The last method of reducing public sector budgets is called zero base budgeting. This is a method, first popular about fifteen years ago, that woulrequire setting up basic cost benefit analyses studies to rank projects and programs by their efficiency. Then, when expenditures needed to be reduced, the lowest ranking programs would be cut. This method, of course would have the same political obstacles discussed previously. Local governments have two methods for dealing with a fiscal crisis, to either reduce expenditures as discussed previously or find new sources of revenue The most ob- vious and prominent way of Increasing revenues is to charge user fees for services. As local governments begin facing revenue reductions, particularly with declining state revenue assistance programs, one op- tion is to adopt new fees and Increase ex- isting fees to balance budgets. These fees have taken the form of building permit fees, development charges, and several types of user charges. In recent years, local governments may have to impose fees for services and commodities which used to be free or available at low subsidized cost Wt., utilities, museums, etc.) Unfortunately, it is much easier to adopt such fees in an economically healthy com- munity than in an economically distress- ed one. In a community hit by economic hardship with declining employment opportunities or as in the case of most of Alaska's small rural communities where limited employment opportunities exist, raising or imposing fees is realistically very difficult or impossible. Local governments and agencies which have experienced budgetary Imbalances caused by severe economic declines (e g., lumber mill or pulp mill closures such as experienced by some Southeast Alaska commuftitles) find it nearly impossible to raise taxes or fees of any type and may on- ly be able to decrease expenditures. in this case, the usual decreases may take the form of: 1) Limits on travel and training, 2) deferred maintenance, 3) no capital expenditures, 4) various cuts in services (e.g., parks, libraries), 5) attrition and hiring freezes. Several problems and paradoxes arise when cutbacks and cutback management are considered. The first is the paradox of Irreversibility of organizational formation. This means that one cannot generally shrink or reduce an organization In the reverse order in which it was built up. Ad- ministering a budget cutoff would be relatively easy if thelast units or p ms added to the system could be term hated as the least valuable. Not only do people find this rule unfair, but ppeerhaps the newest program might also be the most valuable to the community. Another paradox in managing cutbacks are the problems caused b lack of ade- quate staff. In a situation where cutbacks have to be made, local government needs the most capable staff it can get. However, this is exactly when such staff is likely to be laid -off or resign. When local govern- ment has plenty of money, it is more like- ly to have adequate staff than when It needs the best staff; that is in times of fiscal crisis. Then there is the "tooth fairy syndrome." No matter how poor the economic situa- tion is, some employees and citizens will believe that there is no reason for concern and that somethingg will happen to remove the financial deficit. It's hard to make cut- back decisions when staff feel that no emergency exists. Good personnel prac- tices would seem to dictate that employees be involved in decisions that effect them. This leads to our next paradox, the participation paradox. In a situation of economic decline, it is almost impossible to have employees participate in their own job terminations or in those of their associates. In opposition to what is usual- ly good personnel policy, job termination or firings are easiest handled as edicts from above. One of the characteristics of local government Is the short tenure of top leadership; that is, local elected officials cannot be depended upon to hold long tenures of office. This means employees cannot depend on a consistent policy over the years. This has undesirable implica- tions for any type of tong -run planning or planning for a fiscal deficit. No deals can (continued on page 7) LIn Page 7 L. 4 i F. i 4 } Changing Time (continued from page 71 be made for the future that new leadership cannot reverse. The last paradox is the productivity pard- dox. In a fiscal crisis, It is obviously desirable that local government become as efficient and productive as possible. However, changes that increase pr)ductivb ty frequently require money for invetst- ment in new equipment or hiring of per- sonnel with different experience and train- ing, but this is exactly the time the local government has no money to spare, and Is not able to borrow it. , In Alaska, local government officials accustomed to a recent history of state bas- ed revenue increases, have, in many cases, been not hit with revenue shortfalls. But with the declining price of oil and its direct Impact on state revenues, Alaska local governments now haws to adopt a manage- ment style for different from what they were used to. Hopefully, Alaskds local government officials will adjust to these »changing times" with a great deal of motivation. George Goldman is an economist with the University of California Cooperative Exten- sion Service and Anthony Nakanwa is a local government specialist with the University of Alaska Cooperative Extension Service. Position Vacancy City Attorney, Barrow — located in Bar- row, the northernmost City In Alaska and the seat of the North Slope Borough. Salary in low $67s, DOE. New City Manager, new City Hall, and many challenges and opportunities. Apply by let- ter, concise writing sample, and Include resume to the attention of Earl Finkler, City Manager, City of Barrow, Box 629, Barrow, AK 99723. Phone: (9071852-5211 1986 AML ANNUAL CONFERENCE HOTEL INFORMATION The following Juneau hotels have cooperated with the AML by blocking rooms and offering conference rates. Please show your a pre. i ciation by making your reservation early with one of these hotels. With the elections in October, it may be difficult to give the hotel names but, to insure that you have the accommodations of your choice, make reservations in the name of a current municipal official. If that individual does not run for reelection, or is defeated, the name can be changed at that time or the reservation cancelled. Reser- vation cards are not being used this year, so please call in or write to one of the following hotels for your room reservation: i sheHkld Juneau Baranof Hotel Alaskan Hotel ` Central Reservations Central Reservations 167 South Franklin Street Sheffield Hotels Sheffield Hotels Juneau, Alaska 99801 860 "H" Street, Suite A 880 "H" Street, Suite A $36001private bath plus tax Anchorage, Alaska 99S01 Anchorage, Alaska 995M $2SWshared bath plus tax 14110.418.1111 14004&1111 f5.00/additional person Single: f 49.00 plus tax Single: MAO plus tax Double: Same as single Double: Same as single Driftwood lodge 435 Willoughby Avenue Breakwater Hotel Prospector Hotel Juneau, Alaska 99801 1711 Glacier Avenue 340 Whittier Street 149-544-2239 Juneau, Alaska 99801 Juneau, Alaska 99801 Single: f.35A0 plus tax 7-S66.3737 Double: $4000 plus tax Single: f59A0 plus tax Single: $SW plus tax Kitchen: f45W plus tax ` Double: $6400 plus tax Double: Same as single 1 Bdrm AptJKltchen. f50A0 4 2 I B(0en: 65A f79Awith 6peopI AML CONFERENCE ADVANCE REGISTRATION FORM Name Tide I ! Municipality/Organization Telephone Address City State —Zip Advance Registration On -Site Registration by October gp) (after October 30) 1 Member. $130.00 f155.00 - - ; Non -Member. k160.00 f170.00 Spouse: $ 90.00 $100.00 spouse's name Of attending) NO IIENJNDs will be made on registrations cancelled after November 7. Please tall UL NEtion form and togs) spec to: Alaska Municipal for hotel i ue, 103 Municipal and program dletalb, Juneau, Alaska contact AML staff at , Suite 301 Watch the AMt NEWBtFRER and special (SM SM132S. Advance mgisb&*m saves money and dm at the reestration desk. L.. aepacm..or w.. + c 7 F fi nEPMONE 115 MU411FAI WAY, SURE 101 (907) 586-1325 JtMiJ1U, A{ASKA 996M SPECIAL CONFERENCE BULLETI tool-- LO NOMINATIONS PACKET '$ During the 36th Annual Local Government Conference in JiMau, November 12-14, 1986, officers and directors for the Alaska Municipal League Board will be elected by the membership. Also, incoming AHL President George Carte of Palmer will appoint the 1987 AHL Legislative Committee. Please use the Officer/Director and Legislative Committee Nomination Forms attached to make your municipality's nominations for these important leadership positions. A complete form for each individual and position, submitted on time, will insure that your municipality's nominations are duly considered. officers and Directors: Nominations on the appropriate forms for 2nd vice President and/or Director should be submitted to AHL President Dan Keck, a Nominating Committee member or ANL staff person no later than 2:00 p.m. Thursday, November 13, 1986, to be considered by the Nominating Committee. A Nominations Committee will be appointed by AML President Keck at the opening session on November 12. Additional nominations may come from the floor at the Friday business meeting. The new AHL Board will meet sometime Saturday morning, November 15, 1986. Legislative Committees Nominations on the appropriate forms for the Legislative Committee should be submitted to the AHL staff or incoming AML President George Carte prior to the Conference, if possible, but no later than Thursday, November 13, at 2:00 p.m. The Legislative Committee appointments will be made and announced at the Conference. The new AHL Legislative Committee will meet sometime Friday afternoon, November 14, depending on time available, or Saturday morning, November 15, 1986- The information below and the Nomination form will give the membership the information they need to correctly nominate individuals for vacancies on the Board, as well as the Legislative Committee, according to AML Constitution, Bylaws, and resolution. OFFICERS under provisions of the bylaws for automatic successions (Article 11, Section 4 and Section 5), at the 1986 annual meeting George Carte of Palmer will become President. He is from Director District 4. Heather Flynn of Anchorage will become First Vice President. She is from Director District 5. L MIMWR op Twa NATIopm u mu6 or cmas ANo TMB NATmft AssocAMN OR cDUNnW L L Article II, Section -3, of the Bylaws states "The president and Vice presidents shall be chosen from different director district." Article V, Section 3.A., of the Constitution instructs: "The (nominating) committee shall prepare a slate of at least two (2) Candidates for each expired or vacant office." Therefore, the Nominating Committee will be instructed to nominate at least two (2) candidates for the office of second Vice Presidents however, none of the nominees may be from Director Districts 4 or S. Dan Keck will succeed Betty Glick of the Kenai Peninsula Borough Assembly (District 3) as immediate Past President. DIRECTORS r According to AML Constitution, there are nine (9) Director Districts and one At Large Director District (Article IV, Section S). The terms of directors elected to even numbered districts shall end in even numbered years, and the terms of directors elected to odd numbered districts shall end in odd numbered years. The term of office of directors elected to numbered director districts is two years and the term of office of the director elected at large is one year. Here is an analysis of the current Board of Directors: George Davidson - Director District 2 - current term expires in 1986. John Devens - Director District 4 - current term expires in 1986. J. 8. Carnahan - Director District 6 - current term expires in 1986. Jonathan Solomon - Director District 8 - current term expires in 1986. Dennis McCarty - Director District 1 - current term texpi eterm xpires 1986. Dorothy Jones - At Large Director District es in 1986. Kristin Lambert - Director Districtt 3 - c term renn teireexpires 1987s. 1987. Joe Lvans - Director District S - current Terry Cook - Director District 7 - current term expires in 1987. John Pugh - Director District 9 - current term expires in 1987. Here is the vacancy and incumbent status as of the November AML election: Director District 2 (Senate District C) - George Davidson is the incumbent from this district. At the 1986 annual meeting, a director must be elected for a two-year term to expire at the 1988 annual meeting (even numbered district). George Davidson has served only one year on the Board having been elected in 1985 under the new Constitution and district system. Director District 4 (Senate District 8) - John Devens is the incumbent from this district. Since his term expires, a director must be elected for this district to serve a two-year term expiring in 1986. - 2 - L i i { i i i i i r �1 Director District 6 (Senate District J and K) - J. H. Carnahan is the incumbent and from this district. Since his term expires in 1986, a director must be elected to serve a two-year term expiring in 1988. Director District 8 (Senate District M) - Jonathon Solomon is the incumbent from this district. Since his term expires in 1986, a director must be elected to serve a two-year term expiring in 1988. Director District 1 (Senate Districts A a H) - Dennis McCarty is the incumbent since 1984 from this district. Since his two-year term expires in 1986 under the old Constitution, a one-year election must now be made, since the district term expires in odd -numbered years (next in 1987) under the new Constitution. At -Large Director Dorothy Jones is the incumbent. Because the at large district term is one year, a director should be elected to serve a one-year term expiring in 1987. Director District 3 (senate District D) - Kristin Lambert is the incumbent from this district. Since she is serving a two-year term expiring in 1987, no election will be held this year in this district.* Director District 5 (Senate Districts P, a, H, and 1) - Joe Evans is the incumbent. Since he will be serving the second year of his two-year term expiring in 1987, no election will be held for this seat in 1986.* Director District 7 (Senate District L) - Terry Cook is the incumbent from this district. He will be serving his second year of a two-year term expiring in 1987 so no election will be held in 1986 in this district seat.* Director District 9 (Senate District N) - John Pugh is the incumbent. He will be serving his second year of his term to expire in 1987, so no election will be held for this seat this year.* Currently, AML Past Presidents serving on the AML Hoard of Directors include Phil Younker of Fairbanks North Star Borough, Dave Walsh of Anchorage, Ted Lehne of Fairbanks, and Jack Foster of Sand Point. Nominations Needed The League is soliciting for the Nominating Committee, nominations for Second Vice President from any district except 4 and 5, and for Directors to stand for election in Districts 1, 2, 4, 6, 8, and At -Large. i *while some of the Director District seats are not up this year, the membership may elect one of the incumbents Second Vice President; therefore, nominations would then be in order for the vacancy that would be created; i.e., Director Districts 3, 7, and 9. t 3 - { { r. f" x { r En r 4 Directors from District 4 and 5 may not be nominated for Second vice President since there is a prohibition of two officers coming from the acme district. j.. Since the Nominating Committee is required to nominate at least two candidates from each district, nominations from the member municipalities are in order for each of the eligible districts including those with - -, incumbents whose term is expiring, and who may be nominated to serve another two-year term. it is the policy of the Board of Directors to solicit nominations in writing from member municipalities for each vacancy. These written nominations on the forms provided will be provided to the Nominations Committee. Each municipality may nominate for one of three offices: the Director from its District, Director at Large, or Second Vice President. Please use the Nominating Form attached for each nomination. Single municipality districts such as Juneau most make at least two nominations for consideration by the Nominating Committee and the membership. EX -Off i_ According to Article IV, Section 2, "The Alaska Association of Municipal Attorneys, the Alaska Association of Municipal Clerks, and the Alaska Municipal Management Association shall enjoy ex-officio, non -voting status on the Hoard of Directors. Their seats shall be filled by their respective associations at the Annual Meeting of the Alaska Municipal League." Please consider your nominations for key positions in the League carefully, and submit the appropriate completed forme as soon as possible. Remember that the League is only as effective as the active participation of its members. if you have any questions, please call the League staff in Juneau. Register early for the conference and prepare to participate! - 4 - L.� L I t ALASKA WHICIPAL LEA= OPdICER/DZMCTOA NOMINATIONS FORK To: Nominating Committee Alaska Municipal League The of (Assembly, City Council, and/or Mayor) (Municipality) in AML District (check appropriate box): II Director District 1 - Senate Districts A/B: Ketchikan, Wrangell, and Petersburg [j Director District 2 - Senate Districts C: Juneau (] Director District 3* - Senate District D: Kenai -Cook Inlet [] Director District 4 - Senate District E: South Anchorage, Nikiski, and Matanuska-Susitna (] Director District 5 - Senate Districts F/Q/N/I: Anchorage [] Director District 6 - Senate Districts J/K: Interior Highway and Fairbanks [] Director District 7* - Senate District Lr North Slope, Kotzebue, and Norton Sound '� [] Director District 8 - Senate District M: Interior Rivers and Lower Knskckwim [] Director District 9* - Senate District N: Bristol Say, Aleutians, and Kodiak (j At -Large Director nominates _ for: (name) . (check appropriate box): (] Second Vice President (Nominations for Director Districts 4 and 5 • are not eligible) [] Director for Director District (indicate District Number) I.n nominating the individual above, both the individual and the governing body of the municipality understand and accept the time and financial commitment to actively participate as a member of the AML Hoard of Directors. Signed: - Title: Date: j *Director Districts 3, 7, and 9 have incumbents, but could be elected Second Vice Presidents therefore, back-up nominations for these Director Districts are in order. -01 7� Biographical Information Nominees Name Mailing Address City state zip Telephone (home) (office) Elected Position Municipality A Terms Expires Relevant Experience (a. q. years in elected office, elected positions, profession, area of expertise and/or interests in local government, com=nity involvement, etc.) Past involvement in AML (e.g., Board, Legislative or other Committees) 7 I ALASKA MUNICIPAL LEAGUE LEGISLATIVE COMMITTEE NOMINATING FORM �) To, George Carte', An first vice President Alaska municipal League The of assembly, city council, mayor and/or Manager) (municipality) in mm District (check appropriate box)s Director District I Senate Districts A/as Ketchikan Wrangell, and Petersburg tj Director District 2 - Senate Districts C1 Juneau Director District 3 - Senate District Ds Kenai -Cook Inlet tj Director District 4 - senate District Ht south anchorage, Nikiski, and,matanuska-Susitna tj Director District 5 - Senate Districts F/G/H/11 Anchorage Director District 6 - Senate Districts J/Ks interior Highway and Fairbanks tj Director District 7 - Senate District Ls North Slope, Kotzebue, and Norton Sound tj Director District 8 - Senate District Ms interior Rivers and Lower Kuskokwim Director District 9 - Senate District Ns Bristol Bay, Aleutians, and Kodiak nominates for the (name) Legislative Committee of the Alaska Municipal League. in nominating the individual above, both the individual and the municipality understand and accept the time (at least three meetings a year) and financial (travel, hotel, etc.) commitment to actively participate as a member of the AML Legislative Committee. Signeds Titles Dates Area of interest The individual named above is most interested in and qualified to serve on the following subcommittee (indicate, at least, first and second choice) Taxation and finance Education, Municipal Elections, and Local Government Powers Land Use, Resources, and Economic Development Transportation, Docks and Ports, Municipal Utilities, and Public Safety I -I Biographical Information Nominee's Name Municipality Title Mailing Address City state Zip - Telephone (ham)_(office) Relevaat Experience (e.g., yeags in local government. positions held, profession, area of expert ise in/or interest in local government, community involvement, etc.) past involvement in AM (e.g., Board, Legislative or other Committees) ri 0 ALASKA MUNICIPAL LEAGUE 1987 POLICY STATEMENT (AML BOARD of DIRECTORS DRAFT) PART I n; TAXATION AND FINANCE cp A. LOCAL TAX RELIEF r� The League supports state -funded relief for local't6piyers where such relief does not reduce the tax base or the tax -levying authority of the municipality, and does not adversely affect the marketability of municipal bonds. B. STATE ASSISTANCE IN FINANCING LOCAL GOVERNMENT 1. Administration of Grants a Entitlements: The League supports legislation simplifying grant programs and prohibiting the addition of special conditions to grants by a state agency where such conditions are not contained in the appropriation or the authorizing legislation for the grant program. The League further supports elimination of administration fees deducted by state departments administering the grants, and opposes any restrictions on the retention or use of interest earned on grant funds. 2. Pass -Through Funds and Grants The League encourages the Legislature to make appropriations to nonprofit corporations and other_ 37.05.315 (adopt policies for pass -through funds to non-profit corporations that do not cause any present or future liabilities to the municipality]. (3) 4. Population Determinations The League supports the use of federal census determination guidelines to determine annually the resident population for revenue sharing and municipal assistance. (4) 5. Forward Fundings The League urges the Legislature to establish a forward funding program for municipal assistance, municipal revenue sharing, school foundation, and school construction programs, and that the Legislature begin setting aside funds for the next fiscal year so that the program may be fully implemented at the earliest possible date. L *%�._ --_/ - -- f -- - C. MUNICIPAL ASSISTANCE/REVENUE SHARING PROGRAMS 1. Revenue Sharingi (a) The League supports the State Revenue Sharing Program. Changes to the annual appropriation by the Legislature to the State Revenue Sharing Program should be based on such criteria as state population, inflation, cost of local government services, and other timely considerations. (b) In those cases where legislation is approved increasing the state revenue sharing entitlement for specific recipients or for a specific purpose, the League advocates that the total funding for state revenue sharing be increased accordingly in order to preclude the dilution of funding to other recipients. (e) The League supports an increase in the state revenue sharing minimum entitlement. (d) The League supports full state funding for road maintenance at the $25O0 per mile level determined by the First Session of the filth State Legislature and the adjustment of that amount to reflect increased cost of maintenance, since that date. (e) The League supports predictability of payments, and an initial payment of not less than 7S% of the prior year's entitlement, the first week of July of each fiscal year. 2. Municipal Assistance: The League supports the continued funding of Municipal Assistance at the highest level possible (full funding of the current year entitlement]. C. OTHER STATE ASSISTANCE PROGRAMS 1. State -Collected, Locally -shared Taxes and Licenses (note expanded title): Municipalities Ln Alaska presently derive significant revenues from State -collected, locally -shared taxes and licenses to help meet their basic operating expenses. The League, therefore, opposes reduction of such revenues through elimination of such taxes and licenses, unless other equal sources of revenue are made available to local or appropriations to compensate for lost revenues are made by the State. 2. Funding of Local Capital Protects: The League supports the establishment, by statute, of a mblock grant" approach to a portion of the state funding of local capital projects in order to allow the - 2 - L I V J decisions regarding local capital project priorities to be made at the ( - local level. ' E. LOCAL TAXES 1. State -Mandated Exemptions: The League opposes the imposition of =- ' state -mandated exemption of certain classes of property, individuals, - - - - organizations, or commodities from the application of taxes unless full compensation is made for revenues lost due to these exemptions. if the reimbursements for state -mandated exemptions are not fully funded, currently or in the future, the exemption should be repealed. - 2. Payments In -Lieu: The League endorses the establishment of a program for payment in -lieu -of taxes for improved state property within a municipality. 3. Right To Taxi The League opposes any further State effort to levy a property tax which would infringe upon the rights of local governments to levy the same rate of tax as levied on other property within the taxing jurisdiction. 4. Waiver of Tax Collections The League endorses legislation to permit the waiver of collection of taxes when collection costs exceed taxes due. F. PUSLIC EMPLOYEES RETIREMENT F The League urges that in any legislation which increases the cost of }d the Public Employees Retirement System or the Teachers Retirement System !1 due to increased benefits, the cost be borne by contributions from the employees. The League urges the Legislature to require fiscal notes to address the impact on each participating municipal employer, if any _.r amendments are made to the Public Employee's Retirement System, and the Teachers Retirement System. r a. HEALTH AND SOCIAL SERVICES 1. Utilization of Local Health Facilities: The League urges the state and federal agencies responsible for health care, to utilize ` local health facilities, and to transport patients to regional centers when necessary services are not available locally. E only I „ ' (3. Increased State Funding: The League strongly supports 0-1 _. increased state funding of hospital construction costs and of specie - - - -- --- rt hospital and health facility construction and operating costs. - + z 13.1 2. (Separatel Revision of Funding For Hospitals and Health Facilities (note title change): The League strongly ports funding of hospital and health facility grants outside the municipal revenue , T sharing program, and an increase in health facility operating _ assistance. I �. L h t 1 a. 1f (11f j' ii v _i i a fi (4) 3. Funding for Air/Sea Ambulance Services: The League supports a program to cover the cost of transporting patients to regional health care facilities for treatment in a medical emergency. H. FISCAL NOTES/STATE MANDATES 1. Fiscal Notess The League supports enactment of legislation requiring the State to prepare, in consultation with the impacted local government, notes assessing the fiscal impact on local goverment of any proposed bill or regulation, including pass -through 2. State Mandatess The League urges passage. of legislation which would require the state to reimburse municipalities for costs they incur in programs or activities mandated by the State of Alaska. I. SOARED FEDERAL REVENUES 1. Federal Revenue Sharing: The League supports reauthorization of Federal Revenue Sharing and continuation of funding at FY 84 levels. 2. Outer Continental Shelf Revenue Sharing: (a) The League endorses enactment by the United States Congress of an OCS Revenue Sharing Program, to be funded annually from the proceeds of the oil and gas lease sales on the OCS at the level of at least $300 million. (b) The League endorses an automatic pass -through of at least 1/3 of the state's allocation directly to communities affected by OCS activities. (c) The League endorses the concept that the state's and community's allocation of OCS Revenue Sharing funds be used for coastal planning and preparation, resource protection programs, construction of capital infrastructure resulting from OCS activity and health and social service needs resulting from OCS activity. 3. P.Iw L.T.s The League supports continued funding of Federal Payments -in -Lieu -of -Taxes. J. Local Debt 2. State Mane ement of Local Debts Because the establishment of a mechanism for dealing with municipal bond defaults, when bond defaults have not occurred and when none appear imminent, would aive the bond - 4 - L � �i State Taxes and Finance - 5 - 19 -"I I 1 �1 PART II EDUCATION A. SCHOOL SUPPORT 1. Funding for Schools: federal funding or to administer local schools.) ((c)) (d) The League supports and encourages local effort. ((d)1 (e) The League supports the use of forward funding to provide for basic education (a foundation formula which includes forward funding and full funding for basic education]. (2. Basic Education: The League recommends that the AML/Legis- lature/DOE define basic education.) (3.1 2. Bonded Indebtedness: (a) The League supports continuation of the program for reimbursement of school debt and school capital expenditures]. - 6 - In for t i and/or the Legislature, to revise the Department of Education, regulations promulgated to define the criteria for state reimbursement for school debt to include the total community/school concepts. 14. Post -Secondary Educations The League urges the Legislature to provide adequate capital and operational funding needed by the University of Alaska to bring all of its campuses to an adequate level of support and to aid the University to fully service quality higher education needs of the State of Alaska.) S. RECLASSIFICATION GUIDELINES The League urges the Legislature to set up guidelines to assist communities considering municipal reclassification, with regard to transfer of the educational system. C. ASSEMBLY/COUNCIL-SCHOOL BOARD RELATIONSHIPS The League supports legislation to clarify assembly/council-school board relationships, and opposes legislation which would diminish assembly/council authority in education matters. The reason is that the D. LIBRARIES AND MUSEUMS The League supports continued funding for grants to municipalities in the State for the construction and equipping of libraries and museums. - 7 - I 7 im i A r PART III PUBLIC SAFETY A. FINANCIAL IMPACT 1. State public Safety ResponsibilitYs The League strongly urges the Legislature to provide full funding of the Department of Public Safety so that, at the very least, (the current] an adequate level of services Statewide can be maintained. 2. Detention Costss The League recommends that costs associated with prisoner care and prisoner transportation be borne by the State. When a municipal police officer makes an arrest for a violation of a state law, the State should (continue toj assume the legal and financial responsibility for the prisoner as soon as the prisoner is incarcerated. 3. 8lnancial ImA s The League supports full financial assistance for programs impacted by mandatory services, enforcement, referral or sentencing. 4. Public Defenders: The League recommends the State resume full financial responsibility for the Public Defender Agency. B. TRAINING The League urges the Legislature to assure that local full-time and volunteer police, fire, and emergency medical personnel, throughout the State, have access to adequate facilities and program resources for training. Further, the League endorses public -fire education and arson investigation, Village Public Safety officers, and the Police Standards j Council. The League urges full funding of these programs. C. COURT SYSTEM 1. Use of TV Capacity: The League encourages the court system to make maximum use of TV capacity and other cost saving techniques for arraignment, grand jury, and similar court functions to release the burden on highly trained, public safety personnel. 2. Judicial Presence: The League supports the funding of a judicial system that would assure the presence of sufficient judicial officers in each community in the State when the need arises. 3. Local Trials: The League recommends local felony trials if adequate facilities are available in the community where the offense occurred. i 0. STATE ASSISTANCE 1. Emergency Managements The League supports full state and federal funding of civil defense and emergency preparedness activities.` 8 - L 1 I f� 4 2. Fire Fighting Ecluipment' The League supports full funding for Services basic fire fighting equipment which meets minimum Insurance for small Alaska cities and fire service ' - Office (ISO) or State criteria # districts. 3. Substance Abuse Counseling: The League encourages state funding LL of positions for counseling on drug and alcohol programs, particularly in conjunction with the existing juvenile probation system •. 4. Substance Abuse and Domestic Violence: The League recognizes that exist in all • ' - the serious individual and public safety problems in Alaska as a result of substance abuse and domestic communities violence. It supports the enforcement of the domestic violence sections 25.35.060), of Title 25, Marital and Domestic Relations (AS 25.35.010-AS in all parts of the State as a public safety priority. :q _I E. HAZARDOUS MATERIALS REPORT The League supports legislation which would require producers, and industrial users to submit to f shippers, distributors, and commercial affected municipal governments, the Standard Material Safety Data �i all Sheet on all toxic material physical agents being shipped to or through, or. stored, manufactured, utilized, produced as a by-product, or or rights•of-way of any found at an time, on the property otherwise Y ,• enterprise or site within municipal boundaries. F. (TORT REFORMS] INSURANCE ,. The League urges the Legislature to review the insurance n ustrY For a and tort (reforml systems and to (work for] make necessary changes viable municipal insurance system. 't -9- -A i i' PART IV LAND USE A. LOCAL OPTIONS A 1. Planning and Zonin a The League feels strongly that 14 pertaining to the powers of local planning and zoning must allow for i greatest flexibility at the local level. 2. Land d Use: The League supports the requirement that the St comply with all local land use and subdivision regulations. B. LAND SELECTION 1. EaseEase_entse The League urges modification of State Statu which encourage the practice of blanketing all waterways wit municipal selections with reservations for public easements encumbering patents with undefined easements. The League, howev supports the policy of preserving needed specific rights -of -way easements which provide for present and future public access. 2. Conveyance and Land Use (a) The League urges the immediate conveyance of Native and State lands presently identified and jointly agreed upon for selection. (b) The League urges the State to move expeditiously to complete in -lieu, cash entitlements, and to convey lands to municipalities with the least amount of encumbrance and restrictions, and to take whatever actions are necessary to correct existing inequities and overcome all remaining obstacles, to fulfill land entitlements, for all municipalities to receive their entitled share. (c) The League urges the funding of . a cooperative intergovernmental land use planning commission to expedite conveyance of lands not yet jointly agreed upon by considering municipal, state, and federal interests in lands affected by the land selection process. (d) The League urges funding for the surveying of municipally -selected State land. (a) The League urges the modification of regulations for greater 1 flexibility in the use of grant funds by municipalities for the disposal of municipal grant land entitlements. (f) The League urges the full and continued funding of grant programs pertaining to the disposal of municipal grant land entitlements. 3. Land Bank Program: if the State of Alaska passes legislation i ) adopting a state -administered, land bank program, the League supports t - 10 - L L i i ii J ..J.{ ._ �_... .. i i. _ ..,. ., i r full participation of affected municipalities in land bank negotiations, and no land bank agreement may be made without agreement of the affected participating municipality. C. HISTORIC AND RECREATION SITES 1. Monuments & Historic Sites: The League supports continuation of a state matching grant program and funding for acquisition, maintenance, and rehabilitation of monuments, historic sites, and rights -of -way. 2. Outdoor Recreation Sites: The League supports the establishment of a state matching grant program to be used to assist in the cost of projects initiated by communities to acquire, develop, or extend local outdoor recreation sites and facilities. 3. Recreational opportunities: Since many of Alaska's citizens recreate outside of local jurisdictions in which they reside, the League urges the State to exercise its responsibility to provide a broad spectrum of recreation opportunities for all Alaskans. The League strongly supports adequate funding for improved development and maintenance of accessible parks, recreation areas, and trails. D. COASTAL MANAGEMENT 1. Local Controls The League supports continued and maximum local i� control VIM development, management and implementation of coastal planning and policies. 2. Extra -Territorial Planing: The League supports the concept of "extra -territorial" planning by municipalities in the unorganized borough with statutory provisions to permit the Alaska Coastal Policy Council to adopt the "extra -territorial" planning as part of the Alaska Coastal Management Program, provided that the planning process allows for participation and comment by all affected private and quasi -public parties, and is mutually agreed on by affected local governments, until such time as a resource district plan is adopted. 3. Agency Review of Local District Programs: All state and federal agency comments and recommendations must be made expeditiously by these agencies prior to local government conceptual approval of the district plan. 4. Coastal Leasing: The League discourages the State from pursuing oil, gas, tideland, or mineral leasing activity in a coastal area until a local coastal management plan is in effect or the deadlines for establishment of that plan have expired. 5. financial Su o_ rt: The League strongly supports a firm (encourages state) financial commitment to (support oft the Alaska Coastal Management Program. L L 0 4 . c . V I: ,) (G. OCS Revenue Sharings The League supports the State in asking to receive a share of offshore drilling income from the U.6. Government to pay for impact of such a program, and that a portion of that income be returned to the impacted communities.) E. SUBDIVISIONS 1. Proof of Approvals Subdivision of land is a major factor in community development, creating patterns which have long lasting effects. Although present legislation clearly recognizes the need for regulation of subdivisions, means of enforcement are inadequate. The League supports legislation which would require proof of approval by local authorities prior to the filing of an instrument, including those filed or ordered by the State, which would change the boundaries of land. F. STATE LAND DISPOSAL 1. Improvement rundinge The League supports a cooperative effort by the State and municipalities to dispose of road accessible and remote land in a continuous and orderly manner. The League also supports state funding to provide planning grants, funds for necessary access roads, survey costs for land scheduled for disposal, for state, borough and city subdivision roads, sewers and utilities to meet local subdivision improvement ordinances, and for expanded dissemination of land disposal information. 2. Mandated Programs: The League continues to oppose any state mandated program regarding disposal of municipal selected land relative to timing, size, or use. 3. Compliance with Municipal Planning: The League supports state legislation, or administration policy which would require state land disposals to recognize local planning efforts and their implementation tools. 4. Construction of Ri hts-of Wa : The League supports state funding of construction on dedicated rights -of -way in state subdivisions that have been, or are in the process of being, disposed of. S. Compliance with Existing Roads and Rights -of -Way: The League supports state legislation or administrative policy which would require state land disposal to recognize existing or planned roads, trails and rights -of -way by means of right-of-way dedication. C• 1 �I G. SHARED GEOGRAPHICAL DATA Computer -based, geographical, information systems should be coordinated and standardized where possible to allow the sharing of data between state and local agencies. H. FARMLAND PRESERVATION The League supports State encouragement of agriculture through farmland preservation, and opening up of new agriculture lands with adequate road access within a farm area, and by encouraging the development, processing, and marketing of Alaska agriculture products. I. HOODLOT5 The League supports the State in identifying accessible, selected wood cutting and beach log salvage areas for personal use by State residents. - 13 - Is 9 v -� k =- --;t - --- -- A. i 1 1 � 1 PART V TRANSPORTATION, DOCKS, AND PORTS A. TRANSPORTATION PLANNING 1.' Rights+ -of-Weas The League supports the identification of adequate corridors for public access and early acquisition of adequate rights -of -way. 2. Transportation Systems: The League continues to support statewide planning for an integrated state transportation system comprised of air, marine, and surface components. 3. Municipal Involvement: State transportation plans, including port and harbor facility plans, should be prepared and developed consonant with municipal plans and municipal transportation priorities. 8. SURPACE TRANSPORTATION 1. Railroad System: The League supports efforts towards an expanded and improved railroad system that operates to provide reliable service and reasonable charges to better serve all areas of Alaska. Expansion and improvement includes, but is not limited to, extension to additional tide -water ports, and to link the State of Alaska with Canadian rail facilities. 2. Highways and Trails: The League supports funding and implementation of a scheduled maintenance program for the state road system and the state trail system. 3. Mass Transit: The League supports funding and development of cost-effective mass transit systems. 4. Trail Marking: The League urges that a program of uniform permanent trail marking be established and funded by the State. C. AIR TRANSPORTATION 1. Construction Assistance: The League supports an equitable approach to state construction assistance for all public airports, and supports the concept of continued expansions and upgrading of airports, airport facilities, and air navigational aids in Alaska. The League urges the State to provide increased levels of funding to provide for these facilities. 2. Maintenance: The League supports the adequate funding and maintenance of airports, including dust control measures when appropriate. 3. Air Service: The League strongly recommends the State of Alaska work to maintain the level of essential air service established in the deregulation act for Alaska communities.' - 14 - lip L 1 i 4. Land Transfers The League supports transfer to municipalities of federal and state lands to provide for needed construction and expansion of municipal airport facilities and operations. 5. Airport.Safetys The League urges expeditious funding of pro- jects that eliminate airport hazards or increase airport safety. The League also encourages' the State to explore the development of an emergency air strip system throughout Alaska. D. MARINE TRANSPORTATION 1. Expansion of the Alaska Marine Highways The League supports legislation which will expand the Alaska Marine Highway to western Alaska and improve transportation to tie the central Alaska ports to the Aleutian ports, and further supports the expeditious procurement and/or contracting of a number of appropriate ocean going vessels to accomplish the expansion of the Alaska Marine Highway System. 2. Efficiencies in Operations The League supports efforts to provide efficiencies in the operation of the Alaska Marine Highway System, providing these efficiencies are based on publicly available economic and technical, data. However, the League strongly objects to any reduction in existing marine highway systems. The League strongly urges community input'be required prior to establishing marine highway r rates, schedules, and operational changes, and requests public input for studies affecting the operation of the Alaska Marine Highway System be solicited on a statewide basis. 3. Jones Acts The League supports such modifications of the Jones Act as would benefit the United States. 4. Shipping Corridors: The League requests that the State of Alaska support mandatory shipping corridors within Alaska waters affecting commercial fishing areas whenever local communities request such mandatory shipping corridors. 5. Acquisitions The League supports transfer to municipalities of federal and state lands to provide for needed expansion of municipal port facilities and operations. 6. Equal Status Basis: The League supports inclusion of the Alaska Marine Highway System on an equal basis with other State road and highway systems, transportation planning efforts and funding. 7. Marine Maintenances The League urges all State of Alaska agen- cies responsible for marine vessels to develop, adopt and use purchasing and contracting procedures which ensure that in -state, marine repair - related businesses have an economic priority on all State vessel con- struction, maintenance and repair work to the extent legally possible. 7 PART VI UTILITIES A. STATE REGULATION a 1. Alaska public Utilities Commissions The League supports the current statutory exemptions which allow municipal utilities to operate in the best interest of the consumer public without regulation by the APUC. 2. Acquisition: In order to eliminate service area conflicts between municipalities and utilities, the League supports legislation which would allow municipalities to acquire the facilities of a utility under specific terms which would fairly compensate the utility. 3. Utility Relocation Costs: The League opposes any effort to shift to municipalities the cost of all non -municipal, utility relocation within existing rights -of -ways associated with municipal street work. 4. Clean Water Act: Amendments were passed by the U.S. Congress to allow waiver from the requirement of secondary treatment in the Clean Water Act with respect to sewage disposal in marine waters with sufficient fluctuation. The League opposes any federal regulation for implementing Section 301(h) of the Clean Water Act which would unduly burden the Alaska community in receiving these exemptions. S. ADEC Role in water Quality Standards: The League urges the Legislature to adopt legislation authorizing and funding the Department of Environmental Conservation to assume the administration of water quality standards for Alaska waters that are now under the jurisdiction of•the U.S. Environmental Protection Agency. 6. General Fund Support: The League endorses an amendment to federal law which would allow general fund support from the State and municipalities for operation of sewage treatment facilities. B. FUNDING ASSISTANCE 1. Construction Grant Program: The League strongly endorses the concept of the State paying. at least SO% for sewage, auxiliary equipment, solid waste facilities, and water systems constructed by municipalities under the State of Alaska Construction Grant Program, and that the replacement of outmoded systems be grant eligible in the same manner as the installation of new systems. The League strongly supports appropriation levels to meet statewide needs. C 2. Needs Assessments: The League strongly urges the State, through the Department of Environmental Conservation, to assess the needs of communities for adequate and appropriate water, waste water treatment, and solid and hazardous waste disposal facilities, including the need for operator training and assistance with facility maintenance.,r - 16 - F t' ! S it r !, d il tt L 1, 3. Solid Waste Reduction Programsc The League supports funding and implementation of solid waste reduction programs, i.e. recycling, litter reduction, waste oils recycling, etc. 4. Grants and Loans for Services The League supports continued funding which would make available to the various essential utilities in the State, direct grants and/or low interest loans in order that they may meet the needs of the citizens served by the utilities. 5. Grants and Loans for Energy Sources: The League supports the concept of di -re -et grants and low interest loans from State funds for the construction of conventional and alternative energy sources, in order that rates paid by the Alaska consumer for these necessary services may be set at a reasonable level. L �= PART VII MUNICIPAL ELECTIONS A. REGISTRATION The League supports efforts to improve the processing and quality of the voter registration system. B. DISCLOSURE RESTRICTIONS M 1. Reporting Requirements: The League urges the Legislature to review the campaign and financial disclosure laws and make the reporting requirements more effective. 2. service Area Advisory Boards: The League supports legislation that would exempt elected or appointed service area advisory boards from campaign and financial disclosure requirements. C. VOTER QUALIFICATION 1. State Re irement: The League supports an amendment to Title 29, Municipal Code, to require a municipal voter to be registered to vote in state elections 30 days before the municipal election, or before signing a nominating (initiative) or recall petition, or an initiative •:.4 a T6a 2. Local Requirement_: The League supports legislation that would allow a municipality, by ordinance, to require persons to be registered within the State of Alaska and the precinct district or service area in which they reside not less than thirty (30) days immediately preceding the date of the municipal election. 3. RgMistration: The League supports current statute language (present legislation) which requires a voter who has been purged from the voter registration list in accordance with AS 15.07.130, "Elimination of Excess Names", to reregister in accordance with AS 15.07.090, and supports deletion of AS 15.15.198, "Voters not on Official Registration List", which is in conflict with those statutes. E. QUALIFICATION FOR ELECTIVE OFFICE The League supports legislation that would include provisions in Title 29, the Municipal Code, and Title 14, the Education Code, for municipalities to set qualifications for all elected municipal officials including school board members. L L r It •i 4 T � c PART VIII LOCAL GOVERNMENT POWERS A. LOCAL AUTONOMY (1. Effective Local Governmental The League supports legislation which would promote more effective and independent local government in all organized boroughs and cities, and opposes any legislation which unduly restricts local government operations. The League opposes all (21 1. Lobbbbing: The League supports the continued exemption of municipal officials and employees from the lobbying reporting requirements under the Lobbying sections of Title 24, the Legislative Code (AS 24.45). 131 2. Anti_ Trust L.awss The League supports legislation at both the state and federal levels placing municipalities in an equal posture with state governments with respect to federal anti-trust laws. 141 3. Enforcement of Municipal Ordinances: The League opposes state restriction on enforcement of municipal ordinances and supports legislation clearly establishing local autonomy in the creation of mandatory sentences and other remedies for violation of local ordinances. (51 4. Public Records: The League supports legislation ensuring that local governments are free to adopt, through ordinance or resolution, their own policies and procedures concerning local public records. (6) 5. Interest on Retainage:- The League supports repeal of the application to municipalities of the Public Construction Contract Payments section of Title 36, Public Contracts Code (As - 36.90.001) relating to payment of interest on retainaqe on construction contracts. (71 6.Eminent Domain: (a) The League strongly supports legislation amending the Prerequisites to Taking of Private Property section of Title 9, Code of Civil Procedure (AS 9.55.270), to create a rebuttable presumption that the choice of the condemning authority has been made in a manner compatible with the greatest public good and least private injury. (b) The League supports legislation amending Title 29 to give municipalities the authority to exercise the power of eminent domain, including the declaration of taking, in areas outside their boundaries. Local Construction: Local governments should have autonomy (81 7. to administer local construction projects. Title 360, the Public - 19 - L __: 6% - _-____-t- L L e 7 N - - - -- - — i i _! Contracts Code, should be amended to permit local .governments to establish their own notice, reporting, and prevailing wage requirements for local construction. (91 S. plumbing and Electrical Codes (note new title): To eliminate the conflict between state and local plumbing and electrical codes, the League supports an amendment to the State Statutes to place sole authority for enforcement with municipalities that have adopted such codes, and supports the expeditious updating of state safety codes. B. PUBLIC EMPLOYEE LABOR RELATIONS 1. Alaska Public Employees Labor Relations _ Acts The League strongly opposes any legislation which would force municipalities to be subject to the provisions of the Alaska Public Employees Labor Relations Act. The League opposes, just as strongly, any legislative efforts to dictate the provisions of local public employees labor relations ordinances. The League supports legislation to allow each municipality at any time to reject or withdraw from the terms of the Alaska Public Employees Relations Act. The ;Dope of decisions as__to local government ., f.ee. 1 ef* 4-0% *i.o Inn_al aovarnina bodv. 2. Binding Arbitration: The League opposes legislation imposing binding arbitration o— n local governments and school districts. Binding arbitration hinders local elected officials (Such legislation would hinder local governments'] ability to determine their personnel costs and prevents local governments from having complete control of determining the local tax rate. The scope of decisions with regard to . - _ w- .._ -4_ ,__-, C. UNORGANIZED BOROUGH The League urges the Legislature to address the k—v.,,,.,k nnA ita ralatianshio with R.E.A of the unorganized borough.) D. TRIBALAOCAL GOVERNMENT RELATIONS The League supports and encourages efforts on the part of the Legislature and other concerned parties to address tribal/local government relations. E. FORMATION OF NEW MUNICIPALITIES 1. State Policies: The League supports state policies that encourage rather than discourage the formation of new municipalities. 2. Fundings The League supports legislation to provide adequate funds to assist in the study of the feasibility of forming new -20- L J 6 �^ PART IX i v RESOURCES A. NATURAL RESOURCES 1. Dever ti The League supports the adoption and implemen- tation by the State of Alaska, in cooperation with the private sector, of policies for the planning, exploration, development, processing and marketing of natural resources in a manner that produces direct benefit for the State and municipalities, and provided that it is consistent with approved state and local plans. 1� 3 , 2. Energy Efficiency: (a) The League urges the federal government, the State of Alaska, and League members to design, construct, and use their facilities with an emphasis on energy efficiency, as a part of life cycle cost considerations. i (b) The League urges regionalized studies by the State for ` development and changes in model building codes to be kept up-to-date with emphasis on proper planning, high quality workmanship and maximize energy efficiency. 3. Fisheries: (a) The League urges the State to oppose all federal limited entry fisheries designations. (b) The League supports increased state funding of the Alaska Saafood Marketing Institute. - (c) The League supports state funding of research and develop- n went efforts to expand the Alaska fishery. (d) The League supports sustained yield management of State fishery resources. j (a) The League strongly urges the State to pursue state juris- diction over the management of fishery resources in the federal C Exclusive Economic Zone. 4. Timber: The League supports the development of our State-owned, timber resources. Specifically, the League urges the creation of a - - - - - — - - - - long-term program for the harvesting, sale and reforestation of timber - -� ----- -_,--. on eligible state lands, development of transportation infrastructure, and encourages the development, processing, and marketing of Alaska timber products. t - i S. Subsi_ stence: The League supports legislation which provides fair and equitable rights to all subsistence users. }II 1 -22- r V_ - r municipalities and in the formation of newly organized municipalities and in the unification and/or consolidation of borough and city governments. 3. Transfer of Powers: The League supports legislation setting out provisions for the transfer of powers, services, and facilities from a borough or service area to a newly incorporated city within the borough. This legislation should include provisions for continuation of the power being exercised by the borough or service area until the newly formed city actively assumes the power. IF. COMMUNITY AND REGIONAL AFFAIRS The League supports increased funding for the Department of Community and Regional Affairs, Municipal Assistance Division, for increased staff to better serve growing areas of the State and increased staff responsibilities.] - 21 - L L W 6. Min_ erales The League supports development of state-owned mineral resourose and urges State support of efforts to improve the efficiency of mining technologies to lessen any negative environmental impact of these activities. 7. Aqriculture: The League supports a State and private marketing campaign for "in -State" use of Alaskan farm products. $. HUMAN RESOUTICF+S 1. Alaska Hire: The League supports and encourages, within the confines of� the Constitution and human resource limitations, any efforts on the part of the Governor and the Legislature to implement a local hire policy, particularly within state government which would not pre- empt municipal policies and ordinances. 2. Training Incentives: The League supports the development of incentives that would encourage contractors and other employers to train and apprentice local workers, and encourage their employment. 3. Chiles e= The League urges full State funding for communities participating in the child care program. 4. Adult Day Care: The League urges full State funding for communities participating in the adult day care program. C. PLANNING 1. Resource Development Protects: The League supports resource development and funding policies which provide that state -assisted, resource development projects, substantially impacting communities, should be approved by the municipalities. 2. Waste Disposal: The League encourages the State to adopt and maintain acceptable standards concerning waste disposal from processing of all resources. 3. Cooperative planning: The League recognizes that many of the States most valuable resource lands are already under private control through mining claims, leases, and conveyances pursuant to the Alaska Native Claims Settlement Act. Thus, in furthering its goals of both resource development and theprotection nni f Alaska'sbetween the iro ent, the League urges meaningful, cooperative polities, and appropriate private parties, particularly Alaska Native Corporations. -23- l� L PART X ECONOMIC DEVELOPMENT .y A. IMPACT The exploration, development, and industrial utilization of renew- able and non-renewable resources, both inside and outside municipal boundaries, creates a substantial and immediate impact on the need for - municipalfacilities and services. The need exceeds the financial j ability of most municipalities to have such facilities and services of state - - = operational in the time available. The League urges adoption and federal legislation which would provide financial assistance to municipalities which are facing impacts of resources development. Such legislation needs to establish criteria for impact assistance with appropriate trigger mechanisms to activate such assistance. B. INCENTIVES The League urges that legislation be enacted to allow local munici- ': polities to adopt and implement incentives for economic development, such as economic development corporations and tax increment financing - authorities. C. INDUSTRIAL DEVELOPMENT BONDS 1. Allocations_ Legislation is needed to establish a State policy with regard to the allocation of authorization to issue industrial development bonds (IDB'8). 12. Per Cent Reserve: Fifty percent of the available IDB authority should be reserved if needed for local governments.) 3. Tax+ e= The League supports the continued tax exemption of municipal bonds for public purposes. (4) 3. Priority: Priority should be given to local governments for �! no less ihan 50 per cent of the available IDB authority. D. TOURISM DEVELOPMENT - The League recognizes the importance of tourism to the economy of the State of Alaska and encourages increased assistance to municipali- ties for tourism promotion and attraction programs, especially within the visitor Information Center and Tourist Attraction Development Grant Programs administered by the Division of Tourism. Recognizing the :."`. ..-.� .. -24- L C' 0 r 1f 7 r�til • 4Pe y tELEPMOMis 105 MUNWAL WAY, SUM � „1 19071 U6.1328 MiAU. ALASKA 99e01 K1.111 �r September 19s 198E i 1 SPECIAL + Enclosed "io thisaeial apmailing are several important. aeas relation to the AML Annual Conference, November =-ip in ,ww. These include the Draft 1987 Policy Statements the Nominations Packet for A1H6 officers and - announcement and registration form. •several other items of directors, and the Newly Elected officials Salver t interest are also discussed below. Piave distribute this information including the anciosures as appropriate. Tmnaes susesBNATI01t - Alaska Airlines has just released its fall schedule for flights to mad from imam. The f a special conference rate with Al"ka Airlines but time is ptti Less" staff is eon- seaming to negotiate nn remrratione nos especially if you can take advantage of "super saver" or group short and you and to sake your and Jneaus and provided ipfor- n. for your eoavemisuCes we have listed the adhedules between Anchorage travel agent. rat Patin an saw saver ad group rates. For Wit ioaal informations contact Alaska Airlines os your nism SCMMDIS R ANCHOBAt•'JUMD is 62 Stops. 0 Meals Breakfast i Fregstnsay: Daily Departs 8s2sae Arrives 9ss0u High � Daily Departs NOSPa Arrives 6s20pm Flights 66 Stopss 2 Meals Snack x6 (except Sat.) Departs 7is� Arrives 9120ps Flights 70 Stops. 0 Meals Snack JIR�AfANCROVA99 Fnqusaays 3e7 (except Sun.) Departs 7sl0sa Arrives 8145411 Flight: 73 Stopst 0 Meals Breakfast . Daily Depose: 1O150ap Arrives 7s2SOpt Fiightt 67 $topes 0 Meals Dinner Daily Departs Ssasp. �pyp YAMS - The WO is for groups o£ 10 or acre. The departure. is for groups of 30 or more. Reservations must be pads for the outbound portion at least 72 hours before departuss. Tiekota may' Do purchased Any time.- The Stoup out travel tonether on the outbound Portion, but it individual tickets ors written, they pay return separately. No children's discounts apply.open Stm SAVER • Reservations for the entire trip must be made at least 14 day$ PAW days aftertodeP �' �rvreturns ats�allowtd. Tickets mat be purchased 1.4 days Prior to departure or wbichaysr oc . first. A Ift pamalty w111 be amassed for oheaasa refunds and CanCellatioss. C "P§ to the reservations aunt be pads at lust 3.4 days Prior to the now travel data. Tho lo4 paaaity will apply. A child's ticket is 73% of the adult's super Saver Fssm. as minima■ stay is to overnight the first Saturday night. if trawl begins on a Sundayo the return travel may be on the sane Sunday. The MAXIM Stay met for V"SMW may stand by for the return tligbts provide4 the minimum/passimum stay requirements the mntire trip. not Penalty► of W% "ill apply. U= SOPEIt SAVER - Reservations must be side for the anti" - trip -at last -30 days before _ depar-tM.. Tickets past be puroased either 24 days after ressrvs"M are made or 30 We before dapsrtuta, whichever coma fiat. it1► Mill ba pigged for Cbantes. reimsds, and aaCellattoms. All Changes t0 reservations must be made at lout 30 days in advance. as s0�► peealty will apply. It changes era pads less than 30 days Is advances the Mtn super saver Fars is no lamas valid. and the tare becomes a coach fan. Ths SOt penalty would apply. There will be's 50% penalty to the ban fan each time a Chu" is made. The ainLeua stay is to travel The �ostay i�2ltdayr�8ytandbye an beings swan a Sundays the return trawl may be an the am 8unday. wrsclsua� WWBRS PAW - as Breakwater Hotel has lowered its rates for the AHL Conference to $29.95 par night for a single or double. go hotal is. located near downtown and is on the bus Tina but not within wbakis. distance "Cept e transportation In Contact 1--SWR4o2 Oefor� rvatiom1sss and Mtioa that hotal Will dyou arm attending the its AM Conference . an an an as mailable bale. L L. L_ 1 Special Bulletin - ')• ` September 19, 1986 f { (M$ VICTORY • The Nowt Appropriations Cosmittas included General Revenue Sharing at $3.4 billion la the COAtiu- f wing Resolution for FY 1987 on Tuesday, September 16th. Chairman Whittn had included ORS in the Resolution b Minority Leader !lithe, had proposed an amendment to remove it. The amendment failed 29-13 The ANL and sever :t municipalities sent telegrams to ConInssasn Young asking him to use his influence with his colleagues mho sit on the Appropriations Committee (Young does not) to support GRS. Thin was a saving vluieory for GR8 continuation ` bums N.R 1400 uuould probably not cams to the floor because time to running out for consul@. If GRS had not peso included in the Contimnins Resolution, it probably would haw died. With the battle von, the war is not t. over. It nowt seal pass the Rood, ad the hardest fight to still to be fought to the'Ssaata. WM ATION BY PERMANENT FIND - as Department of Community and Regional Affairs (DCRA) to use Permanent pond i applications as an "iadioatorleof population changes to determining distribution of IT 1967 municipal asNetnce i and aunts seveaw sharing foods. The -indications are that the major impact will be lass roomy for larger munict- ( a i palities Wok chow decirasses to population according to the dividend application figures. The preliminary numbers also show population increases; however, Jim Plasmas of DCRA says the Increases using the one method --- will not be used. the current population or latest acceptable aommumtty data will be wed. In nay avant, the is total foods available remains the ens{ it is only the proportionate distribution of tboar fun the will very by community. =A Deputy Cammiwioaer Jeff Smith acid in an interview with AM Reporter, Peter Kenyan, that the Department i has a "toad methodology to oaptutse inaseesss" in population but not decrease$. The plan to to us the 1US•certified municipal population ad 19S6 Permanent Fund Dividend applications and difference bommm the apply that percentage to the 1986 permaseat Fund application to determine the PY 1987 State Revenue Sharing municipal population on whteh the revenue program distributions are based. Letts" notifying municipalities of the am matbod went out on September 13th telling them of the asw plan. The letter also notified those mumiai- polities vher! the preltmtaary application f1pne indicated that their population had declined. Some of the eammtmitils that above deotlaass according to the preliminary figures are Anahorage (-3.70 , Fairbanks (city: -5.7%, and borougbt-1.2M), Juneau (-9.ZM), Kstebikan Gatavay Borough (-1.9M), Sitka (•1.7M), Barron (1.7M) Nwlia (-8.9%), KaktovS (-8.4M), MOW (•1.6M), Po Antoon(•I%), Brevig Mission (-iM), Ion Yukon (•13.5M), Lions (-S.6M), and Whittier (•i.60. TMse figures are preliminary, and the momte of money that results, at { least in tbs trvsaue sharing Progreso. on other factors in the formula. The offiaial figures will be -depends released by DCRA October 15th, and mamicipalitiss will bave until December released to provide chair own counts or appeal the Condomionar's numbers. That is not a long time for a municipality to do its own mow, but DMA r. officials say "its the but they an do". j NNOE. Send POSITION AIN� -The City of Yakutat is advertising for the position of City Manager. Salary D.O. ' Tacoma to the City of Yakutat, P.O. Box 6, Yakutat, AFC 99689 by coon, October 6, 1986. For more information a call (907) 784-3322. REVIEW DRAFT POLICY BMZM T - Enclosed are copies of the "Draft 1987 AML Policy Seatemant" approved the AlII. Board of Knotors for review and discussion by the delegates at the AML Annual Conference. Plam review the Policies and the proposed changes among the officials to your community, end acme prepared to discuss them in Juneau in November. Additional copies will be included in delegate packets. Ik NON0=018 NEE9ED • As discussed in previous NawiGteera and "Bulletins" nominations are needed for officers and directors to ow" On the AML Board of Dtrectors. Elections will be held on Friday, November 14, 1986, ;, _... __ .... . _ - is to -rve- on .the. AML Lgislativs_.Cosittss _ors 404mis the ammusl bust"" martins. NominsCtoas of Individuals ne also requested. Incoming AML President George Corte' will oak! his appotat""Its from tM nominations darias ; -- -- --- -�`� -ths-AHL Caaferenem*- n { MEHLY ELEOTED OFFICIALS SEMINAR Eaolosed an brochures announcing AML's on and one half day Newly Elected � :l Officials Seminar to be held in Juneau, NOvnbOT 11-32, 106. Last year's seminar was very popular. It is , i being hold in conjunction with the AML Amuai Conference for the convenience of recently elected municipal y officials. Separate registration and fee are required. L r ' ERMTIM - No the latest Newsletter was not early, nor did you cis$ any. The printer$ accidently printed , "Novemb" on the front pate rather than "September" 1986. they also amid it was "Volume 8, No. 1" rather than er "Volume 7, No. 2. ' - i t: a. E 10 Central Peninsula General Hospital Operated by Lutheran Hospitals and Homes Society September 22, 1986 250 HOSPITAL CIRCLE o SOLD01 (907) 262.4404 Kenai City Council Members 210 Fidalgo Kenai, Alaska 99611 1„ `: lr�ai S t Cti Dear Council Members: We hope you will be able to join us for our dedication ceremony on Sunday. We also want to invite you to our activities on Monday, October 6th. 9,00 A.M. Satellite Teleconference "The Medical Effects of Drug and Alcohol Abuse" 1000 A.M. "Overview of the Disease of Chemical Dependency" Dr. Gary Forrest Ed.D. 1:00 P.M. Replay of Satellite Teleconference 200 P.M. "Effects of Chemical Dependency on the Family" Dr. Gary Forrest Ed.D. Staff will be available to discuss our program and referral procedures. We look forward to seeing you. Sincerely, Kevin Murphy, Director Carole Geordge, Treatment Coordinator IT 77 77 ALTERNATIVE DEVELOPMENT Figure -4 CONCEPT 4 Page 7-230/ L r- Kunway JL-jLv w,alo- x JL*u-I $M- 4 Clear Zone 00* _ - - Sol 0 Soo1.000 FEET SCALE. 1'= OQQ' Nc or ALTLRNAMM I ARIES F111 re 7.1 r „ 9 L ' it 1 p _ /- 86 --r'u 0 a J OL do fires 'rrr r I/ r al -11