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Home My WebLink About1987-01-21 Council PacketKenai City Council Meeting Packet January 21, 1987 AGENDA KENAI CITY COUNCIL REGULAR MEETING January 21, 1987 - 7:00 PM B. PERSONS PRESENT SCHEDULED TO BE HEARD (10 mina 1 Bob Schafer - Friendship Air - Insurance Minimum Problems C. PUBLIC HEARINGS 1Ordinance 1133-86 - Amending Kenai Municipal Code - New Townsite Historic Zone. 2. Ordinance 1183-87 - - Finding City -Owned Lands. Not Required for Public Purpose - Sec- tion 36. 3. Ordiance 1184-87 - Ordinance 1184-87 - Amending Kenai Municipal Code -Provide $500,000" Limit, Insurance ' Requirement. The public is invited to attend and participate.-'. i Janet Whelan, CIVIC City Clerk AGENDA KENAI CITY COUNCIL - REGULAR MEETING JANUARY 21, 1987 - 7:00 PM PLEDGE OF ALLEGIANCE A. ROLL CALL 1.0 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. daft, Bo PERSONgy S PRESENT SCHEDULED TO. HEARD (10 Min,) i . - ` 4; �:^...✓ 1 y ff' '"� `0 "` N V\ 40?0 k � 1 Ir Bob Schafer Friendship- Air Insurance Minimum Problems .Ce PUBLIC HEARINGS .4 Ordinance 1133-86 Amending Kenai Municipal Code - New Townsite Historic Zone 2e Ordinance 1183-87 - Finding City -Owned Lands Not Required for Public Purpose - Section 36 3* Ordinance 1184-87 - Amending Kenai Municipal Code - Provide $500,000 Limit, Insurance Requirement 7- Do COMMISSION REPORTS 16 Planning & Zoning 2* Harbor Commission 3. Recreation Commission 4. Library Commission E. MINUTES 10 *Regular Meeting, Jan. 7, 1987 F. CORRESPONDENCE 1* *Sen, Stevens - Cook Inlet Terminus for Yukon -Pacific Natural Gas 2. *E. Beistline, Mine Consultant - ANWR Oil & Gas Development 3 City of Kodiak - Arizona Firm with Alaska Seafood Co. Name 4. *Gov. Cowper - Cook Inlet Terminus for Yukon -Pacific Natural Gas G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Requisitions Exceeding $1,000 3. *Ordinance 1186-87 - Increasing Rev/Appns - Physical Exam for New Employee, Senior Center - $50 4. *Ordinance 1187-87 - Increasing Rev/Appns - State Grant and Donations, Library - $3,383 5. *Ordinance 1188-87 - Amending Kenai Municipal Code - Zoning Code - Encroachment Permits 6. *Ordinance 1189-87 - Amending Kenai Municipal Code - Landscape/Site Plan 7. *Games of Chance & Skill - Elks Lodge #2425 8. *Games of Chance & Skill - AARP 9. Acceptance of Corporate Signatories to Lease - ERA Disc. - Golf Course Lease 11. Disc. - Kenai Borough Resource Development Commission - Appointment of City Representative I. ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. Mayor 4. City Clerk 5. Finance Director 6, Public Works Director 7. Airport Manager J. PERSONS PRESENT NOT SCHEDULED TO BE HEARD (5 Min.) ADJOURNMENT ', _ a M2TAS� rvd' J 4fA'NtlL COUNCIL M-B&T-ING OF I ff - ff ff I f rX. , 5� „M >/ y >/ Y� Y, y An 14 ,w Y- Xly x • y COUNCIL MEETING OF-- JANUARY 21, 1987 INFORMATION ITEMS 1 - KPB Agenda, 1-6-87 2 - Letter from FAA - Dist. of AIP Funds, FY 1987 3 - Letter from Marathon Oil - Expiration of Gas Contract with City of Kenai 4 - TO DO List - 1-7-87 5 - Senior Citizen Report - 1986/87 6 - KPB Minutes - 12-2-86 7 - Letter, Public Works Director Kornelis to AK DOT/PF - State Maintenance & Operation of Street Lights 8 - Animal Control Report - 1986 9 - Library Report - Dec. 1986 - 10 - KPB Caucus Minutes - 12-13-86 11 - Comm/Comm Application - Cynthia Salazar 12 - Comm/Comm Application - Darren Bond e 13 - AK Resource Development Council - Conference 4-2 to 4-4, 1987 14 - Beautification Comm Minutes, 1-13-87 15 - Council on Aging Minutes, 1-12-87 16 - Transfer of Funds Under $1,000 - Jan. 1987 17 - Memo, Public Works Director Kornelis - Boating Facility 18 - Billing - HEA, Marathon Rd. Relocation - $15,079.35 19 - KPB Caucus Agenda - 1-17-87 20 - AK DNR - Amendments to Regulations - Div. Parks & Outdoor Recreation 21 - Bicentennial Constitution Comm Minutes - 1-14-87 22 - Comm/Comm Application - Katherine Boling jw CITY OF KENAI 0 110d capiw 44"" it 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283 - 7535 MEMORANDUM TO: Mayor and Members of the City Council City of Kenai FROM: Randy Ernst, Airport Manager City of Kenai DATE: January 21, 1987 RE: Aircarrier Passenger Liability Insurance Mayor Williams has requested that I research passenger liability insurance requirements at other airports in Alaska. The following insurance requirements are in effect: Kenai: $1,000,000 per seat with the following minimum limits, regardless of seat capacity: --- for propeller aircraft $10 million --- for jet aircraft $20 million Soldotna:_$10,000,000 combined single limit per occurance for bodily injury and property damage, but with a $1,000,000 per seat sublimit for passenger liability. Ketchican: $10,000,000 liability plus $1,000,000 per seat with a combined single limit of $200,000,000 of the carriers. Anchorage: $1,000,000 per seat based on the maximum seating capacity with the following minimum limits regardless of seat capacity or cargo configuration: --- for propeller aircraft $10 million --- for jet aircraft $20 million The above examples apply to certified aircarriers and commuter airlines with operating agreements and use of terminal gates. The U.S. Department of Transportation (CAB) minimum requirements are: Certified air carriers certificate, Less than 60 seats Over 60 seats holding a public convenience $300,000/seat plus $2,000,000 third party public liability $20,0001000 State owned "bush" airports only require liability insurance on on -land leased by each aircarrier since they are responsible of maintaining their own terminal facilities ($300,000.00). Air taxi and charter type fall under different use type permits and vary from $150,000.00 to $175,000.00 per seat limits. RE/clf K MARTCO Vending 323 W. Rockwell Ave. Soldotna, AK 99669 December 8, 1986 Mr. Randy Ernst Airport Manager City of Kenai 210 Fidalgo St. Kenai, AK 99611 Dear Mr. Ernst, As a recently established local vending business, we would be @1 interested in placing a coin -operated vending machine in the airport terminal building. We propose the placement of a single Pepsi -Cola machine, occupying approximately 9 square feet of floor space. The machine is capable of cooling and dispensing 348 12 ounce cans of 10 separate flavors. We would be responsible for filling the machine weekly, or more frequently if necessary, and for all maintenance to the machine itself. The city would receive 10% of any gross profits in the form of a check issued every second month, or a yearly lease fee for vending space. We realize that there is presently a Coca-Cola machine in the terminal, but we feel there is room for both Pepsi and Coke products. Please let us know if we can be of service to you in this capacity. Y (907) 262-7452 Gary & Louise Martin Owners MARTCO VENDING 323 W. Rockwell Ave.Soldotna, AK 99669 Sincerely, ar E. Martin Ow er ARTCO Vending CITY OF K E N A I U0 41W 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283 - 7535 MEMORANDUM TO: Councilmembers City of Kenai FRDM-0 , Tim Rogers, City Attorney City of Kenai _ y DATE: January 16, 1987 RE: ERA Helicopters This financial information has been included incident to a request from ERA Helicopters to permit corporate signatures on the lease agreement without personal sureties. 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Business.......................................................... 1 ContractDrilling....................................................... 1 Offshore Operations .................................................. 1 Onshore Operations ................................................... 2 Contracts............................................................ 3 Competition......................................................... 3 Regulations and Hazards ............... 4 Aircraft Operations..................................................... 5 Contracts............................................................ 6 Competition.......................................................... 6 Regulations and Hazards .............................................. 6 Oiland Gas Exploration ................................................. 7 Employees............................................................... 7 Item 2. Properties........................................................ 8 DrillingRigs........................................................... 8 Aircraft................................................................ 11 Item 3. Legal Proceedings ................................................. 11 Item 4. Submission of Matters to a Vote of Security Holders ............... 11 Additional Item. Executive Officers of the Company ........................ 11 PART II Item 5. Market for Registrant's Common Stock and Related Stockholder Matters .............. 13 Item 6. Selected Financial Data .......13 ...................... Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations ............................. 13 Item 8. Financial Statements and Supplementary Data ....................... 13 Item 9. Disagreements on Accounting and Financial Disclosure .............. 13 PART III Item 10. Directors and Executive Officers of the Registrant ................ 13 Item 11. Executive Compensation ............. 13 Item 12. Security Ownership of Certain Beneficial Owners and Management .... 9 14 Item 13. Certain Relationships and Related Transactions 14 PART IV Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K............................................. 14 PART I I1 EM I. BUSINESS Rowan, organized in 1947 as a Delaware corporation and a successor drilling business conducted since 1923 under the name to a contract Rowan Drilling i ng Company, is engaged principally in the contract drilling of oil and as wells s g in offshore domestic and foreign waters and onshore in the United States. Its offshore operations primarily consist of contract drilling utilizing mobile rigs, principally a fleet of 20 self -elevating drilling platforms ("jack -up rigs"), including the three - ee��heavy duty cantilever hack -up rigs (Gorilla Class rigs) delivered in 1983 84. -See CONTRACT DRILLING" below for details with respect to an agreement providing for the construction of an additional Gorilla Class rig. Rowan also provides contract and charter helicopter and fixed wing service, primarily to oil and as related operations g aircraft Mexico. It also en g p ation� i n Alaska and i n the Gulf of not significant in a program of oil and gas exploration which to date has generated significant revenues. Information regarding revenues, operating profit, identifiable assets segments and f - and export sales of the Company's industry se 9 foreign and domestic operations for each of the three years in the period ended December 31, 1985 is provided 9 of the Notes to Consolidated Financial Statements on p� p ovided for in Footnote ages 28 and 29 of the Company's Annual Report to Stockholders for fiscal year ended December incorporated 31, 1985 ("Annual Report"), p portions of which are filed 1 ed as Exhibit 13, which footnote i s i ncor orated herein by reference. p CONTRACT DRILLING During 19855 offshore drilling operations, both domestic and forei n operating profit (income from operations before deducting 9 � contributed expenses) of $14 459 OOJ. 9 general and administrative Onshore domestic drilling operations in 1985 incurred an operating doss of $357125000. Offshore Operations At December 31, 1985, the Company operated 20 deepwater jack -up conventional and twelve cantilever including� P rigs (eight the three Gorilla Class rigs, one semi - submersible rig and three submersible barge rigs. One cantilever ' sold in December, 1984 and another in Dec m hack -up rig was e ber, 1985 and 1 eased back for a fifteen year period. The Gorilla rigs are of a new and heavier class, intended to drill feet in * n, water to depths up to 328 feet in extreme hostile environmentsto 30,000 (winds up to 100 miles per hour and seas up to 90 feet). The legs on one Gorilla extendedwater to permit its operation in g la rig have been p er depths of 450 feet in the Gulf of Mexico. Under the revised terms of a shipyard construction agreement, the C ' construction of the fourth Gorilla Class � Company has authorized The Company h jack -up -rig estimated to cost $85 million. p y as the option to refuse delivery of the rig and pay a $6. 5 million cash payment and such cancellation would entitle the shipyard to retain the C' equipment. Company y furnished For a discussion of the 1986 capital expenditure program and the availability of funds for capital expenditures see "Management's Condition and Results of Operations" g s Discussion and Analysis of Financial on page 18 incorporated herein by reference from the Annual Report and "ITEM 2 - PROPERTIES" of this Form 10-K for additional with respect to the operating status of rigs.ti opal information -1- In recent years the Company has pursued a policy of concentratingjack- rigs. Jack -ups are utilized for both offshore exploratory on u P p y and development drilling and, in certain areas, for well work -over operations. The Company operates larger deep -water type jack -up rigs capable of drillingp y p g in maximum water P t o depths of 20,000 to 30,000 feet depths ranging from between 250 and 450 feet, depending on the size of the rig. A jack -up rig consists of a floating hull with three self -carried The Company's rigs are equipped with ro propulsion legs. p p thrusters to assist in towing. The entire drilling unit, consisting of the drilling rig, supplies, crew quarters, loading and unloading facilities, helicopter landing deck and other q g mounted on the hull. At the drill' related equipment,. is Ong site the legs are lowered until they penetrate the ocean floor and the platform hull is jacked up on the legs to the desired above the water. The platform hull then serves g elevation. p as a drilling platform until the well is completed and the operation is reversed by lowering the platform hull t and towing it to the next drilling site. The can o the water • g cantilever ever feature contained on the newer jack -ups provides for the extension of the portion of the drilling platform containing the drilling rig over fixed production platforms P P p so that the drilling rig may be utilized to perform development or work -over operations on production platforms with a minimum of interruption to production from the platforms. p P rms Class 200 rigs which P p t orms. The three Gorilla 9 the Company now owns and the fourth under construction are designed to provide the capability of operating in extreme hostile environments Class 116-C and one Class 116 jack-u ri s have b Six J p g een modified to provide �o a lesser extent similar capability. Semi -submersi bl e rigs are utilized principally for offshore exploratory drilling from a floating position in waters to depths of 1,000 feet. A semi -submersible drilling rig consists of a drilling platform raised above multiple e hulls s b col The hulls are flooded so as to be submerged beneath the P y columns. 9 e surface, in which position the rig is anchored during drilling operations. The same type of equipment ►h is contained on a hack -up rig is mounted on the drillingyP ment q P which of the well the platform. After completion submerged hull i s debal 1 asted to reduce vessel draft and facilitate towing, assisted by its own thrusters, to another drilling location. Submersible barge rigs are used in shallow coastal and inland waters to depths up to 26 feet for ex lorator P p y development and work -over drilling. A submersible ba rge rig consists of a drilling rig with crew quarters mounted on an elevated platform on to of a floating hull. p m P g At the drilling site the hull is flooded so that it rests on the bottom and the elevated platform protruding above the water serves as stationary drilling platform. a Onshore Operations The Company provides drilling equipment, personnel and camps on a contract b for exploration and development of onshore areas. Thep basis Company has in recent years concentrated on larger rigs with deeper capacity. It currently owns and operates 15 land rigs (nine rigs located in the Anadarko and Permian Basins p Texas and six winterized rigs located in A of Oklahoma and g Alaska) capable of drilling to various depths of from 18,000 to 30,000 feet, all of which are competitive in the dedrilling ep market. The drilling equipment comprising an onshore rig consists basicallyof drawworks or hoist, derrick, pumps to ci r; ul ate the drilling flu' l pines, and drilling bits. The type of rig r fluid, and drill pipe yP g• required a customer depends upon the anticipated well depth, terrain and conditions i n the drilling area. - 2- Contracts The Company generally pursues a policy of negotiating short more- (not than one year) rather than long-term term contracts for its offshore rigs. During periods when the offshore rig markets are strong and increasing rates prevail, such the Company to maximize its abilityto obtain P Policy allows the benefit of rate increases and to pass through cost increases to customers. During the current period characters by ri g oversupply, this policy has been expanded to include P zed • P ude low rates permitting the Company to remain in a competitive position and to defray the maintaining inactive rigs. In some 'n y substantial costs of 9 instances, , such short-term contracts contain rates designed to break even on a cash flow basis. Rigdemand continues affected indirectly b overproduction ntanues to be negatively Y, p by certain petroleum exporters and the associated decline in worldwide oil and gas prices. The Company's drilling contracts are obtained either through ' or individual negotiations. Rates obtainedough competitive ve bidding ng depend upon the type of equipment used, its availability and its location, as well as the type YP of operations involved. Both onshore and offshore contracts for use of the Company's drilling equipment are "well to well", "multiple well" or for a faxed term generally ' "Well to well" contracts are cancellableg y ranging from four to 12 months. at the option of either party upon completion of drilling at any one site and fixed term contracts customa rily ly provide for termination by either party if drilling operations are suspended for con P extended periods by events of force ma j eure. The Company's tracts provide for drilling compensation on a day rate basis with lower rates prevailing when the equipment ' i n drilling operations. While current f' a s not actually engaged fixed term contracts are for relatively short periods, some fixed term and well to well contracts are actually expected to be continued for a longer period than the on p original term or for a specific c series of wells, although the contracting party has no legal obligation to do operations, g so. Contracts, particularly those for offshore o p , generally contain renewal or extension provisions exercisable at the option of the customer at prices mutually i n some instances, P y agreeabl e to the Company and the customer and for mobilization i zits on and demobilization. provide for additional payments 1 In many instances in the past, customers have negotiated extensions or renewals, particularly with respect to offshore rigs. Contracts for work in foreign countries States dollars g generally provide for payment i n United except for minimal amounts required to meet local expenses. Competition The Company encounters continual competition in securing domestic and foreign contracts, principally from approximately 85 offshore drilling contractors operating or having available to operate about 597 mobile rigs in domestic and for waters, approximately 15 major domestic drilling contractors operating or h vain to operate about 275 land rags in the deep -well mar P 9 having available p market in the Permian and Anadarko Basins, and approximately seven domestic drilling contractors operating about winterized land rigs on the Alaskan North Slope.P g 37 As a result of technological advances in equipment, particularly offshore equipment, older equipmentha i capital costs, may be less suitable for some� having lower proposed drilling operations. As a part of the Company's $800 million five year capital expenditure ram ro completed ' 11 of the Company's 20 jack -up rigs were cor�str program P an 1984, 9 ucted, including three Gorilla Class jack -ups and six cantilever jack -up rigs modified to provide operating capability an more severe hostile environments. This program P g P sty �1, _ p g m was designed to provide the Company's ;t, juc� ups reflecting the most recent technological advancements. The c1 1 4,ies of one Gorilla Class rig have been further enhanced b extendingth leg lengths from 503 feet to 605 feet permitting the y e P g e unit to operate an 450 feet water depth in th,? Gulf of Mexico offshore the U. S. The 1 e s on a Class 116 unit extend��d to 462 feet making it capable of operations •g were P p ataons an 350 feet water depth, also in -,.-he Gulf of Mexico offshore U. S. Some of the Company's competitors with greater ter -3- financial and other resources may be in a better position than the Company to make the continuous capital investments required to effect technical improvements to existing equipment or to replace existing equipment that becomes obsolete. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" for a discussion of current industry conditions and their impact on operations. The offshore markets in which the Company competes are chosen on the basis of those which offer the greatest market potential and are located in the more politically stable areas of the world. Following completion of a major offshore rig relocation program during the 1983-85 period, the Company had at year-end 1985 12 jack -ups located in the Gulf of Mexico, seven in the North Sea, and one offshore Eastern Canada. A number of factors affect a drilling contractor's ability both onshore and offshore to obtain contracts at a competitive and profitable rate within an area. Such factors include the location and availability of equipment, its suitability for the project, the comparative cost of the equipment, the competence of personnel and the reputation of the contractor. The ability to obtain a profitable rate of return is dependent on receiving adequate rates to compensate for the higher costs of newer equipment which have resulted from inflation and for costs of moving equipment to drilling locations. As a result of the deterioration in the market for offshore rigs which began in mid-1982, the Company, commencing in mid-1983, has been entering into lower rate, short-term contracts, in some instances at rates designed to "break even" on a cash flow basis, to remain in a competitive position and to offset the substantial cost of maintaining stacked rigs. The Company markets its drilling services by directly contacting present and potential customers, including large international oil companies, many smaller o i 1 exploration and production companies and, in the case of offshore drilling services, foreign government owned or controlled production companies. j Regulations and Hazards The offshore and onshore operations of the Company are subject to the many hazards inherent in the drilling business, including blowouts and well fires, which could cause personal injury, suspend drilling operations, seriously damage or destroy the equipment involved and cause substantial damage to producing formations and the surrounding areas. Offshore drilling operations are subject also to the hazards incident to marine operations, either on site or under tow, such as capsizing, collision, grounding and adverse weather and seas. Raising and lowering the legs of jack -up rigs into the ocean bottom and ballasting semi -submersible units requires skillful handling to avoid capsizing or other serious damage. The Company believes that it is adequately insured, with coverage for comprehensive general liability (including maritime liabilities), physical damage (under currently available all risk type policies) and employer's liability. Except for certain hazardous operations, no insurance is carried against loss of earnings. Under present conditions the Company anticipates that its present insurance coverage will be maintained, but no assurance can be given that insurance coverage will continue to be available at rates considered reasonable. Foreign operations are subject to certain political, economic and other uncertainties not encountered in domestic operations, including risks of expropriation of equipment as well as expropriation of a particular oil company operator's property and drilling rights, taxation policies, foreign exchange restrictions, currency rate fluctuations and the general hazards associated with foreign sovereignty over certain areas in which operations are conducted. -4- Many aspects of the operations of the Company are subject to government includingthose relating to equipping g regulation, 9 q pping and operating vessels, drilling practices and methods and the level of taxation. In addition, various countries ulations rely (including the United States) have regulations relating to Pollution ution control affecting drilling operations. The Company may be liable for damages resulting from pollution of ish financial responsibility. waters and, under United States regulations, must establish offshore. Insurance against pollution risks is normally unavailable under terms deem to the Company. Generally, the Companyis indemnified deemed acceptable red under drilling contracts from Pollutiondamag�s, except in certain cases of surface Pollutiont of indemnification P � but u he enforceability provisions in foreign countries may be questionable. The Company, bel ieves that it complies with all legislation and re ulations of its operations in the drilling of oil and as wells, g affecting of wastes. To date compliance g e and in controlling the discharge p Sance has not materially affected the capital expenditures, earnings or competitive position of the Company, although these measures add costs of operating drilling equipment in some instancesto the and in others they may operate to reduce drilling activity. Further legislation or regulation may reasonably anticipated and the effect thereof on operations y y be P cannot be predicted. The Crude Oil Windfall Profit Tax Act of 1980 (the "Act") in general imposes an excise tax (at varying rates dependingon the category o P S g y or tier of the oil and the classification of the producer) on the excess of the sales or removal price crude oil produced and sold or removed over certain P ce of domestic tain specified base prices. The Natural Gas Policy Act of 1978 ("NGPA") establishes maximum prices for certain categories of natural gas sold in either interstate or intrastate commerce of prices with respect to certain regulated , subject to deregulation g ed categories in 1985 or 1987. Since the Company has derived no substantial revenues from its investment in oft and gas r to date, the Act and the NGPA currently have had no material properties effect on the C P Company. No prediction can be made as to the effect the Act or the NGPA may have on th future revenues or exploration efforts the indirect y e Company s c effect on petroleum exploration generally, or what additional legislation may be enacted, if any, affectin the demand for oil or gas or the petroleum industry. y g market AIRCRAFT OPERATIONS The Company provides charter and contract helicopter and fixed wing aircraft services Drincioally in Alaska and coastal areas of Louisianag in both locations are Primarily to oil 1 and Texas. Services orov i ded and gas related industries although a diversified customer base has been developed in Alaska for servicing mining operations, fire control seismic exploration and power line and dam construction projects. In addition th Alaska Division conducts scheduled airline services between several to e towns and villages. Based on the number of helicopters operating, the Company is the largest helicopter operator in Alaska. It provides charter services from bases at Anchorage, P (on the Alaskan North Slope), Fairbanks Juneau,, 9 � Deadho rse P )� Kenai, Valdez and Yakutat and provides service to the Beaufort Sea Area and Southeastern Alaska, including the Gulf of Alaska and along the route of the Alyeska Pipeline. Since early 1979, the Company has been providing charter and contract helicopter services in the Gulf of Mexico area primarily -to the offshore oil p and gas industry Operations are conducted from the division office in Lake Charles, Louisiana and from satellite heliports in the Louisiana cities of Morgan City, Cameron and New Iberia and the Texas cities of Sabine Pass, Rockport, Port O'Connor, Freeport, Galveston and Houston. -5- Contracts At March 1, 1986, the Company owned for contract use 95 helicopters (of which 46 were based in Alaska and 49 in the Gulf of Mexico area) and 12 fixed wing aircraft that are based in Alaska. Seven additional helicopters are leased and based in Louisiana and one DeHavilland "Dash-7" fixed wing aircraft is leased and based in Alaska. Three of the Company's fixed wing aircraft and 28 helicopters were operating under term contracts on March 1, 1986. Term contracts for aircraft provide for base monthly rentals and incremental payments based on operations with fixed terms, ranging from one month to one year, to meet the customer's requirements. The aircraft not 9 g employed on fixed term contracts are used on day charters principally to supplement personnel transportation in connection with the term contracts and provide an air taxi service for other customers. The Company is compensated for day charters at hourly rates. Helicopter and fixed wing aircraft are usually operated on a seasonal basis in Alaska because of the prevalent climatic conditions. The peak utilization period in Alaska is May through September with the winter months comprising the least active period for all aircraft operations. The seasonal nature of the Alaska business has been ameliorated by moving additional helicopters to the Gulf of Mexico area. Since June, 1983 the Company has had approval under Section 401 of the Federal Aviation Act of 1958 to operate as a scheduled air carrier at which time operations commenced serving Valdez, Alaska from Anchorage. Later in 1983 scheduled flights were started to Kenai and Bethel, Alaska from Anchorage. The Bethel -Anchorage route was discontinued in October, 1984. In 1985, scheduled service was started to Homer, Alaska from Kenai and Anchorage. The Company currently serves 18 villages from Bethel. g Competition Although the Company maintains the largest helicopter operations in Alaska in terms of numbers of aircraft and revenues, it encounters intense competition from several other companies which furnish services to offshore areas. Helicopter operations in offshore areas of Alaska require substantially larger and more expensive helicopters than are required for onshore operations as a result of longer p ge distance flight requirements and severe operating conditions. Approximately 16 other operators compete directly with the Company in Alaska on a contract or charter basis, principally on a local onshore basis. The Company competes over its scheduled routes with from one to three carriers. In the Gulf of Mexico area, the Company competes directly with eight other operators ranking third in the number of helicopters operatingwith approximately 8/ of the business. Regulations and Hazards The operation of scheduled services requires a certificate under Section 401 of the Federal Aviation Act of 1958 as presently administered by the Department of Transportation. i on The p p granting of such a certificate is conditional upon a showing of financial ability and operational expertise. A certificate authorizingthe right to operate a charter service is not required in either the g operations. Alaska or Gulf of Mexico Operation of helicopters and fixed wing aircraft, particularly under weather conditions prevailing in Alaska, is considered particular) hazardous. The adequately protected b y Company believes that it is ade q y p y public liability and property damage insurance, including hull insurance against loss of equipment, but carries no insurance against loss of use or earnings. I Me OIL AND GAS EXPLORATION See "Exploration & Production Division Operations" on pages 10 and 11 incorporated herein by reference from the Annual Report for information on oil and gas operations which have to date not generated significant revenues. EMPLOYEES At February 20, 1986 the Company had 2,172 employees, of whom 1,435 (some of whom are not United States citizens) were engaged in contract drilling operations and 737 were engaged in helicopter and fixed wing aircraft operations. None of its employees is covered by collective bargaining agreements with labor unions. The Company considers its relations with employees to be satisfactory. -7- ITEM 2. PROPERTIES The following is a summary of the principal drilling equipment owned or operated by the Company and currently in service at March 25, 1986. (b) Contracting Party/ Depth: Year (e)TypeofContract, Name/C1 ass (a ) Water/ Dri 11 i ng In Service Location (f) Expiration Date, or Estimated Release Date OFFSHORE Cantilever Jack -up Rigs: Rowan Gorilla l l a I 200 (d) 328' /30, 000' 1983 Eastern Canada Petro -Canada, I nc . / (e)Well to Well (g) March, 1986; Mobil Oil Canada, Ltd./ Rowan Gorilla II 328'/305000' 1984 North Sea (e)Well to Well (9) July, 1986 Not Committed 200 (d) Rowan Gorilla III 200 (d) 450'/30,000' 1984 Gulf of Mexico Amoco Production Company/ Term Pan y/ Rowan -California 116-C (c) 350 /30,000 1983 North Sea (f) June, 1986 Union Oil Company of the Netherlands Rowan -Halifax 350 /30,000 1982 North Sea (e) Well to Well (g) May, 1986 Continental Netherlands Oil Company/ pan y/ 116-C (c)(h) Cecil Provine 350'/3090001 1982 North Sea (e) Term (f) June, 1986 Committed(j) 116-C (c) (i) Gilbert Rowe 116-C (c) 350'/309000 1981 North Sea Committed 0 ) Arch Rowan 116-C (c) 350'/309000' 1981 North Sea Not Committed Charles Rowan 116-C (c) 350'/30,000' 1981 North Sea Shell U.K. Exploration and Production/ P coon/ Rowan -Paris s 350' /30, 000' 1980 Gulf of Mexico (e) Term (f) February, 1987 Amoco Production C Pan Company/ y/ 116-C Rowan -Middletown 350'/309000' 1980 Gulf of Mexico (e) Term (f) Apri 1, 1986 Not Committed 116-C Rowan -Fort Worth 116-C 350'/30,000' 1978 Gulf -of Mexico Conoco, Inc./ Well to Well (a ) Conventional Jack -Up Rigs: (g) June, 1986 Rowan -Juneau 116-(c) 3501/309000' 1977 Gulf of Mexico Not Committed Rowan -Odessa 116 3501/309000' 1977 Gulf of Mexico Not Committed ITEM 2. PROPERTIES Name/Class (a) OFFSHORE (CONTINUED) Rowan -Louisiana 116 Rowan -Alaska 116 Rowan -Texas 82 Rowan -Anchorage 82 Rowan -New Orleans 82 Rowan -Houston 82 Semi -Submersible Rig: Rowan -Midland Submersible Barges: Rig 4 Rowan Fai rbanks Rowan -Morgan City (t) Contracting Party/ Depth: Year Water/ In (e) Type of Contract, Drilling Service Location (f) Expiration Date, or fi_g) Estimated Release Date 350'/30,000' 1975 Gulf of Mexico Not Committed 350'/309000' 1975 Gulf of Mexico Not Committed 250'/209000' 1973 Gulf of Mexico Not Committed 2501/209000' 1972 Gulf of Mexico Committed (k) 250'/20,000' 1971 Gulf of Mexico Not Committed 250' /20 , 000' 1970 Gulf of Mexico Not Committed 12000'/259000' 1976 Gulf of Mexico 24'/305000' 1970 Gulf of Mexico 261/259000' 1975 Indonesia 261/259000' 1973 Indonesia See footnote - meson t`he following page Mobil Exploration & Producing Services, Inc./ (e) Well to Well (g) April, 1986 Not Committed Total Indonesie/(e) Term M June, 1986 Total Indonesie/(e) Term (f) August, 1986 I FEM 2. PROPERTIES Number of Ki ys One (1) Land Rig 1 One (1) Land Rig 1 Grilling Depth Location 18,000' Texas 253,000' Oklahoma Seven (7) Land Rigs (1) 259000'-30,000' Two (2) Winterized Land Rigs (1) 209000' Nos. 35, 41 Four (4) Winterized Land Rigs (1) Nos. 26,33.35 209000' No. 29 Oklahoma & Texas North Slope, Alaska North Slope, Alaska Southern Al as ka Estimated Release Date Not Committed Meridian Oil, Inc./Well to Well April, 1986 Not Committed ARCO Alaska, Inc./Multiple Well December, 1986 Not Committed Not Committed (a ) Classes 200 •("Gorilla"), p design and construction116-C , 116 and 82 are nomenclature assigned Company to jack -ups of its des i by Marathon LeTourneau . (b ) Depth indicates rated water depth where applicable and rated drilling d • . depth, respectively. (c ) Indicates units modified to increase environmental operating n capability. 1 i t P. 9. p y. (d) Denotes Gorilla Class units designed for extreme hostile environment capability. ' pab�lity. (e) Refer to "Contracts" on Page 3 for definition of types of contracts. (f) Indicates expiration date of fixed "Term" contract. (9) Indicates estimated completion date of work to be performed on "Multiple " Well" contracts. P �ple Well or Well to (h) Rig sold December, 1984 and leased back for 15 years. (i) Rig sold December, 1985 and leased back for 15 years. (j) Contract negotiations in process for one well commencingin May, 198 ' two months to drill. Y� 6 requiring estimated (k) Contract negotiations in rocess for one wel l 11 commencing in April, 1986 requiring estimated one month to drill. (1) Onshore rigs were constructed at various dates between 1960 and 1982, utilizing, in some instances, new as well as used equipment. Most of the older rigs have been substantially rebuilt subsequent to their respective dates of constructiong pally . (m) The Company is constructing Gorilla IV, a class 200 jack-up,scheduled for third quarter 1986 delivery and estimated to cost $85 million. Under the terms of the shipyard contract, the Company has the option to refuse deliver PY construction struction y of the rig and pay a $6.5 million pay- ment and such cancellation would entitle the shipyard to retain the Company furnished equipment. Aircraft At March 1, 1986, the helicopter fleet of Company -owned aircraft consisted of 16 twin -turbine IFR rated Bell 212 (14 passenger) helicopters; 12 twin -turbine IFR -rated Bell 412 (14 passenger) helicopters; four turbine Bell 205A-1 (14 passenger) helicopters; and 63 various turbine helicopters (four to six passenger). The fixed wing fleet of Company -owned aircraft consists of: three Convair 580 (50 passenger) and eight DeHavilland Twin Otters (9-19 passenger) and one Beech King Air 200 (nine passenger). In addition, the Company had short-term leases on helicopters in the Gulf of Mexico as follows: two Bell 222UT (8 passenger); three Aerospatiale 355 Twin Star (six passenger); one 206E-1 (six passenger); and one MBB BO-105CBS (five passenger). The Alaska Division has a short-term lease on one DeHavilland "Dash-7" (50 passenger) fixed wing aircraft. The Company's principal aircraft operations bases in Alaska, all located on leased property, are a fixed wing air service center (573,000 square feet of hangar service, repair and office facilities) at Anchorage Intern g g International Airport with an adjacent hangar facility of 14,800 square feet and helicopter hangar, office and repair facilities at Fairbanks International Airport (139000 square feet) . The Company also maintains similar smaller helicopter facilities in Alaska at Deadhorse, Juneau, Valdez and Yakutat. The Company's principal facility to accommodate the Gulf of Mexico operations is a helicopter hangar, repair facility and a operations and administrative building having a combined 33,000 square feet at Lake Charles Municipal Airport in Louisiana. ITEM 3. LEGAL PROCEEDINGS The Company is not currently involved in any material legal proceedings not adequately covered by insurance. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS There were no matters submitted to a vote of the Company's common stockholders during the fourth quarter of the fiscal year ended December 31, 1985. ADDITIONAL ITEM. EXECUTIVE OFFICERS OF THE REGISTRANT The names, ages and positions of all of the executive officers of the Company as of March 15, 1986 are listed below. Officers area appointed P y of Directors at the meeting PP annually by the Board g of directors immediately following the Annual Meeting of Stockholders. There are no family relationships among these officers, nor an arrangements or understanding between an officer and an other y y y person pursuant to which the officer was selected. Name Position A e C R. Palmer Chairman of the Board, President 51 . and Chief Executive Officer C. W. Yeargain Executive Vice President 60 D. C. Anderson Senior Vice President and 61 Secretary -Treasurer -11- Name Position David L. Baumeister Vice Presid ent and President of 42 ERA Helicopters, Inc. O. A. Blanchard Vice President 64 Robert G. Croyle Vice President 43 Paul L . Kelly Vice President 46 R. A. Watson Vice President 61 E. E. Thiele Controller 46 Each of the executive officers of the Company continuous) served shown above for more than the past five ear .y in the position p years with the following exceptions: Since November, 1984, Mr. Baumei ster's principal occupation with the has been in the positions set forth. Form Company ore than five years prior to being elected President of ERA Helicopters, Inc. a wholly owned subsidiar of th Baumeister served as Executive Vice Pre e Company, Mr. President dent of that subsidiary. Since October, 1983, Mr. Croyl e's principal occupation with the Company P nY has been in the position set forth. For more than five i Years prior to that time, Mr. Croy) e was employed by the Company n the position t i on of Attorney. From May, 1980 to October, 1983 Mr. Croyle served as Vice President of Rowan International Inc. Ro Inc. and Rowan Petroleum, Inc., each a subsidiary wandr.i l l , i ary of the Company. ` Since joining the Company in May, 1982, Mr. Kelly's principal al the Company has been in theposition set forth y p p occupation with primarily with duties upuntilthe latter part of 1985 p y i n industry and Government Relations. For more than five ears prior to May, 1982, Mr. Kelly served in various executive positions y Corporation, including Vice President-Administration,p ons with Zapata General Counsel, and most recently, Corporate Vice President -Public Affairs. Zapata Corporation parent, subsidiary or affiliate of the Company. p p on �s not a -12- PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS The information required hereunder regarding the Common Stock price range and cash dividends by quarter for 1985 and 1984 and the number of holders of Common Stock .is set forth on page 31 of the Company's 1985 Annual Report to Stockholders under the title "Price Range of Common Stock and Dividends Paid", and is incorporated herein by reference. Rowan Common Stock is listed on the New York Stock Exchange and Pacific Stock Exchange. ITEM 6. SELECTED FINANCIAL DATA The information required hereunder is set forth on pages 14 and 15 of the Company's 1985Annual Report to Stockholders under the title, "Eleven Year Financial Review". i and s incorporated herein by reference except for the information on such pages for the years 1975-1980. ITEM_7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The information required hereunder is set forth on pages 16, 17 and 18 under the title, "Management's Discussion and Analysis of' Financial Condition and Results of Operations" in the Company's 1985 Annual Report to Stockholders and is incorporated herein by reference. ITEM 8__ FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Refer to Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K on page 14 of'this Form 10-K for a listing of financial statements of the Registrant and its subsidiaries filed or incorporated by reference under this item. ITEM 9._ DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None PART III ITEM_10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT The information provided under the columns entitled Name, Principal Occupation for the Past Five Years, Age and Year First Became Director in the table on pages 2 and 3 and footnote (1) on page 3 of the Proxy Statement for the 1986 Annual Meeting of Stockholders are incorporated herein by reference. There are no family relationships among the directors or nominees for directors and the executive officers of the Company, nor any arrangements or understandings between any director or nominee for director and any other person pursuant to which such director or nominee for director was selected. Except as otherwise indicated, each director or nominee for director of the Company has been employed or engaged for the past five years in the principal occupation set forth opposite his name in the information incorporated by reference. See EXECUTIVE OFFICERS OF THE REGISTRANT in Part I following Item 4 on pages 11 and 12 of this Form 10-K for information relating to executive officers. ITEM 11. EXECUTIVE COMPENSATION The standard arrangement for compensating directors in footnote (2) on page 3 and the compensation paid to executive officers in cash and pursuant to plans as described on pages 7 through 10 of the Proxy Statement for the 1986 Annual Meeting of Stockholders is incorporated herein by reference. -13- ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT The information regarding security ownership of certain beneficial owners and management of the Company set forth under the headings "Voting Securities Outstanding" .and "Election of Directors" appearing on pages 1 through 4 of the Proxy Statement 9 y t -for the 1986 Annual Meeting of Stockholders is incorporated herein by reference. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS Information regarding certain business relationships and transactions between the Company and certain of the directors of the Company under the heading "Certain Transactions" appearing on pages 10 through 12 of the Proxy Statement for the 1986 Annual Meeting of Stockholders is incorporated herein by reference. PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K (a)1. Financial Statements The following financial statements and opinion of independent certified public accountants, included in the Annual Report, are incorporated herein by reference. Page of Annual Report: Opinion of Independent Certified Public Accountants Consolidated Balance Sheet, 19 December 31, 1985 and 1984 .............................. Statement of Consolidated Income for the 20 Years Ended December 31, 19853 1984 and 1983 ............ 21 Statement of Changes in Stockholders' Equity for the Years Ended December 31, 1985s, 1984 and1983................................................ Statement of Changes in Consolidated 22 Financial Position for the Years Ended December 31, 19859 1984 and 1983 ........................ 23 Notes to Consolidated Financial Statements ............... 24 Unaudited Supplementary Financial Data Adjusted for the Effects of Changing Prices for the Year Ended December 31, 1985 .o.o........... 0.... 30 Selected Quarterly Financial Data (unaudited) for the quarters ended March 31, June 30, September 30, and December 31, 1985 and 1984 31 (a)2. Financial Statement Schedules Pages of This Report Opinion of Independent Certified Public Accountants ............................................. 17 II - Amounts Receivable From Related Parties and Underwriters, Promoters and Employees Other Than Related Parties ........................... 18 -14- Pages of This Report V - Property and Equipment for the years ended December 31, 1985, 1984 and 1983 ...................... 19 VI - Accumulated Depreciation, Depletion and Amortization of Property and Equipment for the years ended December 31, 1985, 1984 and 1983 .......... 21 Financial Statement Schedules I, III, IV, VII, VIII, IX, X. XI, XII and XIII have been omitted as not required, not significant, or because the required information is shown in the Notes to the Consolidated Financial Statements. (a)3. Exhibits: *3a Restated Certificate of Incorporation of the Company, dated February 17, 1984. (Exhibit 3a to the Company'c Form 10-K for the fiscal year ended December 31, 1983, File No. 1-5491). *3b Bylaws of the Company amended as of October 31, 1984. (Exhibit 3b to the Company's Form 10-K for the fiscal year ended December 31, 1984, File No. 1-5491). *10a Copy of 1972 Nonqual i fied Stock Option Plan of the Company. (Exhibit 4.1 to the Company's Form 10-K for the fiscal year ended December 31, 1972, File No. 1-5491). *10b Copy of 1980 Nonqualified Stock Option Plan of the Company together with Stock Option Agreement related thereto. (Exhibit 5.10 to the Company's Registration Statement on Form S-7, Registration No. 2-68622). 10c Participation Agreement dated December 1, 1984 between the Company and Textron Financial Corporation et al and Bareboat Charter dated December 1, 1984 between the Company and Textron Financial Corporation et al. 10d Participation Agreement dated December 1, 1985 between the Company and Eaton Leasing Corporation et al and Bareboat Charter dated December 1, 1985 between the Company and Eaton Leasing Corporation et al. 10e Note dated March 1, 1986 from C. R. Palmer to the Company. 11 Computation of Primary and Fully Diluted Earnings Per Share for the three years ended December 31, 1985 located on page 23 in this Form 10-K. **13 Annual Report to Stockholders for fiscal year ended December 31, 1985. 22 Subsidiaries of the Registrant as of March 15, 1986. 24 Consent of Independent Certified Public Accountants. 25 Powers of Attorney pursuant to which names were affixed to this Form 10-K for the fiscal year ended December 31, 1985. * Incorporated by reference. ** Only portions specifically incorporated herein are deemed to be filed. Exhibits 2, 45 9, 129, 185 193 28 and 29 as provided for in the table of Item 601 of Regulation S-K have been omitted because such exhibits are not required. (b) Reports on Form 8-K. No reports on Form 8-K have been filed by the Registrant during the fourth quarter of fiscal year 1985. -15- SIGNATURES Pursuant to requirements of Section 13 or 15(d) of the Securities Exchange Act i of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ROWAN COMPANIES, INC. By C. R. PALMER (C. R. Palmer, Chairman of the Board, President and Chief Executive Officer) Date: March 27, 1986 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the date indicated. Signature Title Date C. R. PALMER President, Chairman of the Board (C. R. Palmer) and Chief Executive Officer D. C. ANDERSON Principal Financial Officer (D. C. Anderson) E. E. TRIFLE Principal Accounting Officer (E. E. Thiele) � * ROBERT W. BALDWIN Director (Robert W. Baldwin) * HAROLD DECKER Director (Harold Decker) * WILLIAM T. FLEMING Director March 27, 1986 (William T. Fleming) * WALTER J. HICKEL Director (Walter J. Rickel) * KENNETH E. MONTAGUE Director (Kenneth E. Montague) * PETER SIMONIS Director (Peter Simonis) * J. C. WALTER, JR. Director (J. C. Walter, Jr.) * C. W. YEARGAIN Director (C. W. Yeargain) * BY C. R. PALMER (C. R. Palmer, Attorney -in -fact) -16- OPINION OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Rowan Companies, Inc.: We -have examined the consolidated balance sheet of Rowan Companies, Inc. and its subsidiaries as of December 31, 1985 and 1984 and the related statements of consolidated income, changes in stockholders' equity and changes in consolidated financial position for each of the three years in the period ended December 31, 1985, and have issued our opinion thereon dated March 5, 1986; such financial statements and opinion are included in your 1985 Annual Report to Stockholders and are incorporated herein by reference. Our examinations also comprehended the supplemental schedules of Rowan Companies, Inc. and its subsidiaries, listed in Item 14. In our opinion, such supplemental schedules, when considered in relation to the basic financial statements, present fairly in all material respects the information shown therein. DELOITTE HASKINS & SELLS Houston, Texas March 5, 1986 -17- SCHL-:.ALE II q ROWAN COMPANIES, INC. AND SUBSIDIARIES AMOUNTS RECEIVABLE FROM RELATED PARTIES AND UNDERWRITERS, PROMOTERS AND EMPLOYEES OTHER THAN RELATED PARTIES (In Thousands) Balance at Balance at Deductions End ofPeriod Beginning Amounts Amounts Non Name of Debtor of Period Additions Collected Written _ en Off Current Current Year Ended December 31, 1985 C. R. Palmer, Chairman, President and Chief Executive Officer(1) -0- $32000 $100 - $22900(2) Year Ended December 31, 1984 None(3) Year Ended December 31, 1983 None(3) (1) On March 29, 1985, the Company extended a loan to Mr. C. R. Palmer, • Executive Officer of the Company,i � Chairman, President, and Chef n the amount of $3,000,000. The proceeds of the loan were used to repay a personal bank promissory note. The loan was secured by the to 348,670 shares of Company Common Stock bore interest pledge the Company of e est at the prime rate, and was due December 31, 1985. The loan, as reduced by a $1005000 repayment, was ratif ed b the ' April 25, 1985. At a meetingheld on October y Board of Directors on e 25, 1985, the Board extended the maturity of the loan to March 1, 1986. The loan was restructured as of March 1, 1986, pursuant to approved by the Board of Directors .actin on the recommendation P an arrangement 9 endation of the Compensation Committee adopted at a meeting on February 28, 1986. Pursuant to this arrangement, loan, together with 51,000 additional shares o g � the shares securing the owned by Mr,. Palmer, were sold by Mr. Palmer and the net proceeds of $291789128 applied to pay the accrued interest on the loan and to r ' amount thereof to $985,127. The remainingoutstand' educe the principal i ng balance of the loan i s evidenced by a five-year, non -interest bearing unsecured note due March 1, 1991. The note is callable t r� � a the discretion of the Board of Directors, in the event that Mr. Palmer's s employment with the Company terminates for any reason. Interest accrued on the loan at December 31, 1985 was $218,104. (2) Amount included in Receivables - Trade and Other. (3) Amounts receivable from related parties and underwriters, . promoters, related parties were each less than P othrs, and employees other than $100,000. ROWAN COMPANIES, INC. AND SUBSIDIARIES PROPERTY AND EQUIPMENT (In Thousands) / 1 1 A - i -' - - L ! - - FOR THE YEAR ENDED DECEMBER 31, 1985: Drilling equipment Drill pipe and tubular equipment Other drilling equipment Total drilling equipment Aircraft and related equipment Transportation equipment Leasehold, building and yard improvements Furniture, fixtures and office equipment Land Shop tools and equipment Lease and well equipment Total other property and equipment Construction in progress Oil, gas and mineral properties TOTAL FOR THE YEAR ENDED DECEMBER 31, 1984: Drilling equipment Drill pipe and tubular equipment Other drilling equipment Total drilling equipment Aircraft and related equipment Transportation equipment Leasehold, building and yard improvements Furniture, fixtures and office equipment Land Shop tools and equipment Lease end well equipment Total other property and equipment Construction in progress Oil, gas and mineral properties TOTAL SCHEDULE V B alance at Balance at Beginning Additions Retirements Close of Period at Cost or Sales Other of Period $ 838,448 $ 15,272 $ 39,072 $ $ 814,648 40,941 2,010 (91) 43,042 172 172 879, 561 179282 38,981 857,862 99, 946 10,372 12, 829 11079 98, 568 19, 108 2,834 23S (11079) 20, 628 23, 203 11567 47 24, 723 21379 414 7 2, 786 31868 3,868 3, 093 331 11 3,413 2 2 51, 653 5, 146 300 (l, 079) 55, 420 2, 075 2, 075 47, 792 22,655 841 69,606 $11078, 952 57,530, 52, 951 , $1, 083, 531 $ 702,396 $ 71003 $ 46, 564 $175, 613 $ 838,448 41,520 1,200 1, 779 40, 941 172 172 744,088 81203 48, 343 175,613 879,561 96,159 6, 832 3, 045 99,946 18,962 443 297 1.9, 108 21,041 2,162 23,203 21054 339 14 2,379 31012 856 3,868 2, 509 563 1 22 3,093 2 2 47t580 41363 312 22 S1,653 54, 443 121,192 175, 635 39, 923 13,072 51203 47, 792 $ 982,193 153 662 �S 56,903 $1 078 952 I 0 ROWAN COMPANIES, INC. AND SUBSIDIARIES PROPERTY AND EQUIPMENT (In Thousands) Classification FOR THE YEAR ENDED DECEMBER 31, 1983: Drilling equipment Drill pipe and tubular equipment Other drilling equipment Total drilling equipment Aircraft and related equipment Transportation equipment Leasehold, building and yard improvements Furniture, fixtures and office equipment Land Shop tools and equipment Lease and well equipment Total other property and equipment Construction in progress Oil, gas and mineral properties TOTAL Balance at Beginning Additions Retirements of Period at Cost or Sales Other $5651672 $ 5, 468 $ 11268 40,708 1,508 675 171 l 606,551 6, 977 1, 943 94,788 10915 544 19,277 352 -646 20,038 1,113 110 1,938 295 179 3,087 75 2,114 393 19 2 46,456 2,153 1,029 47, 852 139,094 29,212 10,711 $824, 859 1601 850 3, 516 $132,524 (21) 132, 503 (21) 21 (132, 503) SCHEDULE V Balance at Close of Period $ 702, 396 41,520 172 744,088 96,159 18,962 21,041 2,054 3,012 2,509 2 47,580 54,443 39,923 '982, 193 ROWAN COMPANIES, INC. AND SUBSIDIARIES ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF PROPERTY AND EQUIPMENT (In Thousands) Classification FOR THE YEAR ENDED DECEMBER 31, 1985: Drilling equipment Drill pipe and tubular equipment Other drilling equipment Aircraft and related equipment Transportation equipment Leasehold, building and yard improvements Furniture, fixtures and office equipment Shop tools and equipment Oil, gas and mineral properties TOTAL FOR THE YEAR ENDED DECEMBER 31, 1984: Drilling equipment Drill pipe and tubular equipment Other drilling equipment Aircraft and related equipment Transportation equipment Leasehold, building and yard improvements Furniture, fixtures and office equipment Shop tools and equipment Oil, gas and mineral properties TOTAL Additions Balance at Charged to Deductions Beginning Costs and Retirements of Period Expense or Sales Other $187,806 $ 42,555 $ 5,752 $ 22,709 31205 159 172 38,734 8, 786 51631 344 61833 11326 234 (344) 51358 1,020 22 1,032 224 7 11803 513 5 10, 100 4, 528 274 547 62jr 157 $ 11,810 $ SCHEDULE VI Balance at Close of Period $224, 609 25,755 172 42,233 71581 61356 1,249 2,311 14,628 $324, 894 $154, 625 $ 35,571 $ 21372 $ (18) $187, 806 20,321 3,311 923 22,709 172 172 31,424 81371 1,061 38,734 S, 437 1, 550 154 6,833 41333 11025 5, 358 833 201 2 11032 11339 446 18 1, 803 _ 6.165 3,935 101100 _$224, 649 $ 54,410 _$ 4,512 $ $274,547 ROWAN COMPANIES, INC. AND SUBSIDIARIES SCHEDULE VI ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION OF PROPERTY AND EQUIPMENT (In Thousands) Additions B alance at Charged to Deductions Balance at Classification Beginning Costs and Retirements Close of Period Expenses or Sales Other of Period ry FOR THE YEAR ENDED DECEMBER 31 1983: ' Drilling equipment Drill. pipe and tubular equipment $ 12 7 4 2 6 $ 28, 252 $ 11053 $154, 625 Other drilling equipment 17, 533 172 3,158 370 20, Aircraft and related equipment Transportation equipment 23, 375 8, 17g 130 172 172 31, 424 Leasehold, building and yard improvements 4, 330 31485 1,557 954 450 1 5, 437 Furniture, fixtures and office equipment 785 178 130 4, 333 Shop tools and equipment 931 416 8 833 Oil, gas and mineral properties 3, 012 3, 153 1, 339 TOTAL TR 1, 049 45, 847 2, 247 6,165 224, 649 EXHIBIT 11 ROWAN COMPANIES, INC. AND SUBSIDIARIES COMPUTATION OF PRIMARY AND FULLY DILUTED EARNINGS PER SHARE (In Thousands Except Per Share Amounts) Year Ended December 31, 1985 1984 1983 Weighted Average Shares of Common Stock Outstanding ................. 549563 542290 512273 Stock Options (Treasury Stock Method) ......................... 235(1) 398 461 Weighted Average for Primary Earnings Per Share Calculation .. 54,798 54,688 519734 Shares Issuable From Assumed Conversion of Convertible Preferred Stock ................. 29688 Weighted Average for Fully Diluted Earnings Per Share Calculation .......,.............. 54,798 549688 549422 Net Income ......................... $3,830 $42163 $219894 Preferred Stock Dividend .......... (2,312) I Net Income for Primary Calculation ...................... 3,830 41163 19,582 Preferred Stock Dividend .......... 29312 Net Income for Fully Diluted Calculation ....................... $3,830 $4,163 $219894 Earnings Per Share: Primary $ .07 $ .08 $ .38 Fully Diluted $ .07 $ .08 $ .40(2) Note: Reference is made to Note 1 of Notes to Consolidated Financial Statements regarding computation of per share amounts. (1) Included in accordance with Regulation S-K Item 601 (b)(11) although not required to be provided for by Accounting Principles Board Opinion No. 15 as the effect is insignificant. (2) This calculation is submitted in accordance with Securities Exchange Act of 1934 Release No. 9083 although it is contrary to paragraph 40 of APB Opinion No. 15 because it produces an anti -dilutive result. -23- I Substitute C -j Suggested by: Planning & Zoning Commission CITY OF KENAI ORDINANCE NO. 1133-86 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE KENAI MUNICIPAL CODE TITLE 14 WITH THE ADDITION OF SECTION 14.20.145 ENTITLED "TOWNSITE HISTORIC" (TSH) ZONING DISTRICT. WHEREAS, the current zoning within the area described as Kenai Original Townsite currently has varied and conflicting zoning districts; and, WHEREAS, the Kenai city Council has created an Old Town Committee to review and make recommendations pertaining to Kenai Original Townsite; and, WHEREAS, the Landscaping/Site Plan Review Board, a representative of the Old Town Committee, and the Planning & Zoning Commission have met in several sessions over a period of several months; and, WHEREAS, the Commission has held work sessions and another public hearing on 1/14/87 to determine if this section will meet the needs of the community, and WHEREAS, as a result of these public meetings the Commission feels the draft "Exhibit A" before the Council and attached to this ordinance, now fulfills the needs of the Board, Commission, Council, and Community. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: eor+; ,,r 1 . The Kenai Municipal Code Title 14 be amended by adding Section 14.20.185 entitled "Encroachment Permits" as defined in the attached "Exhibit All. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this day of Febr, 1987. z° f ATTEST: Janet Whelan, City Clerk John J. Williams, Mayor First Reading: May 7, 1986 Second Reading: May 21, 1986 Third Reading: June 4, 1986 Fourth Reading: July 16, 1986 Fifth Reading: January 21, 1987 %t i A `ing February 47,.-� E-f-etive...,,Date rtMarch 4.„ .1.'9:87; EXA b�i- A Reuisec! �//y/P7 14.20.145 Townsite Historic (TSH) Zoning District (a) Intent. The TSH Zoning District is intended to provide for a mixed, controlled use in a designated area, which will protect and enhance the historic character. The specific intent in establishing this zone is: (1) To manage all new development and major reconstruction by requiring all applications for a building permit to submit landscaping and site plans to the appropriate body for approval prior to the issuance of the permit. All applicants must meet the criteria of the application process. (a) Landscaping and Site Plan are to be submitted to the Landscaping/Site Plan Review Board for approval (14.25.010 - 070). [(b) THE SITE PLANS ARE TO BE SUBMITTED TO THE SITE PLAN REVIEW BOARD FOR APPROVAL 914.25.010 - 040)] [(c) THE LANDSCAPING PLAN AND THE SITE PLAN WILL BE SUBMITTED TO THE OLD TOWN COMMITTEE JOINTLY.] (2) Guidelines. The following guidelines are intended to provide the applicant with an idea of the general criteria the [OLD TOWNE COMMITTEE] Landscaping/Site Plan Review Board will employ when reviewing proposals for the Townsite Historic (TSH) zoning district. They are designed to preserve the characteristics which typify development in the district and provide the basis for preserving the historical character of the district. (a) All alterations to existing structures should be performed so as to preserve the historical and architectural character of the Townsite Historic (TSH) zoning district. (b) The distinguishing original qualities or character of a building, structure, or site in its environment shall not be destroyed. The removal or alteration of any historic material or destruction of architectural features should be avoided when possible. % (c) All existing buildings, structures, and sites should be recognized as products of their own time. Alterations that have no historical basis should be discourage. except buildings that have functional utilities. (d) Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site, and its environment. These changes may have acquired significance of their own, which should be recognized and respected. (e) Contemporary design for alteration and additions to existing properties shall not be discouraged when such alterations or additions do not destroy the historical character of the structure. The same will hold true on new construction, that is, contemporary design shall not be discouraged if it does not violate the historical character of the surrounding buildings or of the historic district as a whole. Design proposals for both new construction and alterations to existing structures should be compatible with the size, scale, color, material, and character of the property, the immediate surrounding structures, and those in the historic district. (3) Review Process: The following procedures are for persons who intend to undertake rehabilitation or new construction within the Townsite Historic (TSH) zoning district: 1 (a) Application is filed with the Planning Department. The landscaping and site plan is filed with the Review Board. (b) The planning department schedules the application for review at the following appropriate meeting. (c) The Board approves or disapproves the landscaping plan and site plan and forwards to the [OLD TOWN COMMITTEE] Building Official. (4) The following items are required for major rehabilitation/ renovation and new construction within the historic district. These shall accompany the application forms and must be submitted to the [PLANNING BOARD AND THE APPROPRIATE COMMITTEES:] Landscaping/Site Plan Review Board. (a) Three copies of the application signed by the applicant and, if leasing the premises, co -signed by the owner indicating type or nature of business. (b) Current color photographs of the site and of any existing structures representing both the overall condition of the structure and accurately portraying the materials and color shall be submitted. (c) Major modifications requiring a building permit for construction of $10,000 or more shall require the submittal of three copies of a landscaping and site plan showing the existing structure and its relationship to the site and all proposed alterations and additions. These drawings must be to scale. (d) Should any of the reviewing bodies require modification to the submitted exhibition or additional submittals due to unusual conditions, 'then these must be submitted'by the applicant as requested by the Board prior to the applicant receiving a building permit. (e) To provide for a district in which mixed residential and retail enterprises co -habit in a desirable and compatible use: [1] encourage foot traffic wherever possible, compatible with historic character; [2] encourage restaurants, gift shops, parks, etc. compatible with historic character; [3] encourage indigenous Kenai Peninsula flora; [4] encourage historic interpretation. (f) Discourage uses which will violate the historic, scenic quality: [1] no stores or business should involve any kind of industrial manufacture compounding, processing, or treatment of products, except of an artistic nature; [2] discourage more than duplex residences; [3] discourage gas stations, auto repairs, rental storage of any kind, junk, kennels, or similar uses. (5) Development Criteria: (a) Discourage: [1] buildings and building additions that are not compatible in height with adjacent buildings and that violate the existing scale of the district; [2] metal buildings, quonset but style buildings, "modern design" style of architecture. (b) Encourage: 2 [1] wooden structures including log style, soft colored or natural sidings which would enhance the historic character of the district. (c) Setbacks shall be as stated under the Urban Residential (RU) criteria including 21.76.150(f)(1), except as to existing buildings. 3 Vol loll Aft ti • ti Exhibi 1 t 1 14.20.145 Townsite Historical (TSH) Zoninq District (a.) Intent. The TSH Zoning District is intended to provide for a mixed, controlled use in a designated area, which will protect and enhance the historic character. The specific intent in establishing this zone is: (1) To manage all new development and major reconstruction by requiring all applications for a building permit to submit landscaping and site plans to the appropriate bodies for approval prior to the issuance of the permit. All applicants must meet the criteria of the application process. a (a) Landscaping and Site Plan are to be submitted to the Land- scapinq/Site Review Board for approval (14.25.010 - 070). [(b) THE SITE PLANS ARE TO BE SUBMITTED TO THE SITE PLAN REVIEW BOARD FOR APPROVAL (14,30.010 - 040)] [(c) THE LANDSCAPING PLAN AND THE SITE PLAN WILL BE SUBMITTED TO THE OLD TOXIN COMMITTEE JOINTLY.] (2) Guidelines. The following guidelines are intended to provide the applicant with an idea of the general criteria the Old Town Committee will employ when reviewing proposals for the Townsite Historical (TSH) zoning district. They are designed to preserve the characteristics which typify development in the district and provide the basis for preserving the historical character of the district. (a) All alterations to existing structures should be performed so as.to preserve the historical and architectural character of the Townsite.Historical (TSH) zoning district. (b) The distinguishing original dualities or character of a building, structure, or site in its environment shall not be destroyed. The removal or alteration of any historic material or destruction of ''architectural features should be avoided when possible. (c) All existing buildings, structures, and sites should be recognised as products of their own time. Alterations that have no historical basis should be discouraged.. except buildings that have functional utilities. (d) Changes which may have taken place in the course of time are evidence of the history and development of a building, structure, or site, -and its environment. These changes may have acquired significance of their own, which should be recognized and respected. (e),.Contemporary design for alteration and additions to existing properties shall not be discouraged when such alterations or additions do not destroy the historical character of the structure. The sage will hold true on new construction,.that is, contemporary design shall not be discouraged if it does not violate the historical character of the surrounding buildings or of the historic district as a whole. Design proposals for both new construction and alterations to existing structures should be compatible with the size, scale, color, material, and character of the property, the immediate surrounding structures, and those in the historic district. (3) Review Process: The following procedures are for persons who intend to undertake rehabilitation on new construction within the Townsite Historic (TSH) zoning district. 1 (a) Application is filed with the planning department. The site plan is filed with the Review Board. (b) The planning department schedules the application for review at the following appropriate meetings. (c) The boards approve or disapprove the landscaping plan and site plan and forward to the Old Town Committee for action, (4) The following items are required for major rehabilitation/ renovation and new construction within the historic district. These shall accompany the application forms and must be submitted to the planning board and the appropriate committees: (a) Three copies of the application signed by the applicant and, if leasing the premises, co -signed by the owner indicating type or nature of business. (b) Current color photographs of the site and and of any existing structures representing both the overall condition of the structure and accurately portraying the materials and color shall be submitted. (c) Major modifications requiring a building permit for construction of $10,000 or more shall require the submittal of three copies of a site plan showing the existing structure and its relationship to the site and all proposed alterations and additions. These drawings must be to scale, (d) Should any of the reviewing bodies require modification to the submitted exhibition or additional submittals due to unusual conditions, then these must be submitted by the applicant as requested by the board prior to the applicant receiving a building permit, (e) To provide for a district in which mixed residential and retail enterprises co -habit in a desirable and compatible use: [1] encourage foot traffic wherever possible, compatible with historic character; [2] encourage restaurants, gift shops, parks, etc. compatible with historic character; [31 encourage indigenous Kenai Peninsula flora; [4] encourage historic interpretation. (f) Discourage uses which will violate the historic, scenic quality: [1] no stores or businesses should involve any kind of industrial manufacture compounding, processing, or treatment of products, except of an artistic nature; [2] discourage more than duplex residences; [3] discourage gas stations, auto repairs, rental storage of any kind, junk, kennels, or similar uses. 0 (5) Development Criteria, (a) Discourage: [1] building and building additions that are not compatible in height with adjacent buildings and that violate the existing scale of the district; F� (2) metal buildings, quonset but style buildings, Itmodern design" style of architecture. (b) Encourage: (11 wooden structures including log style, soft colored or natural sidings which would enhance the historic character of the district. (c) Setbacks shall be as stated under the Urban Residential (RU) criteria including 21.76.150(f)(1), except as to existing buildings. 3 a A � CITY OF KENAI 'I'lod eapd.,�d 44a4a 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283 - 7535 MEMORANDUM TO: Mayor Williams and Council Members FROM: Janet Loper, Planning Specialsit SUBJECT: Ordinance 1133-86 Pertaining to a New Townsite Historic (TSH) Zoning District DATE: January 15, 1987 The Planning & Zoning Commission held additional work sessions and ' public hearings to "clean up" the document to bring it into compliance with KMC14.25. Landscaping ordinance after the addition of the site plan requirements. There has long been a discussion over where the district should lie. The final outcome of the additional work sessions and public hearings is that the line should be extended to Lake Street in order to include the location of the old Harbor View building and open up that area for further controlled mixed development. As evidenced by the articles in the'Clarion, the public appears to be happy with the steps taken -thus far. C.0 Requested by: City Council CITY OF KENAI ORDINANCE NO. 1183-87 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, FINDING THAT CERTAIN CITY -OWNED LAND IS NOT REQUIRED FOR A PUBLIC PURPOSE. WHEREAS, KMC 22.05.010, .030, and .050 requires that the Council shall determine whether certain City -owned properties are needed for a public purpose, and WHEREAS, the disposition or sale of such lands shall be made only upon finding that said property is not needed for a public purpose, and WHEREAS, certain lands within Section 36, T6N, R12W, S.M. were conveyed to the City of Kenai from the State of Alaska ..,.in 1980, and WHEREAS, the portion of these lands lying west of the Kenai Spur Highway have been deemed suitable for development, and WHEREAS, the following described property is hereby found as not needed for a public purpose. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1: The described City -owned land is not needed for a public purpose and shall be made available for sale: Tract F, Dena'ina Point Estates Subdivision Section 2: The City shall initiate the sale of the land described herein and KMC 22.05.040(f) shall not be applicable to the sale of the land described in Section 1 herein. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of January, 1987, ATTEST: Janet Whelan, City Clerk JOHN J. WILLIAMS, MAYOR First Reading: January 7, 1987 Second Reading: January 21, 1987 Effective Date: February 21, 1987 4 i 16 LEGEND ound official survey monument, see description Y ' O ound 6'x 6' concrete R/W monument, A.O.H. • ```"`�` ndicates datum of record . P�•�OF A ,..••••.,,qs �� o et 2' aluminum cap on 5/a'x 30'steel rebar. 4637-S AV • •� I - 000 so �!LJ .......... .. .. ... . . •. 4837-S .• Q� � J �•'AW so •• •• S 1� SSIO .0000ez - DETAIL - . ' N.T. S. 300 .0�0 co /0000� 7- Vb 0 • y-cy9s TRACT F ,;� - _ .v . _ a 2.236 AC. N.T. S. - N - /Fnd. B.C. in cone. `p• �- �--- • J C7 - v;•• p y�G 0� 30.7E J g �'; � •�Y ati• r Fnd. B.C. in .conc. _ • ;:�:'* m - - .. Fnd. B.C. in cone. 4.1 •� • � w CIO co v 11 "� \ c • • .. H �w Fnd. B.C. in cone. NOTES r CD 30 f. ,.46G 1. BASIS OF BEARING is the G.L.O. record datum of Nortr •� �22,60 G �10 for the east bounaary of Section 36. 25 �- -'��-• G lh� ?• All waste water treatment ano disposal systems 0 20 0� ;hall co'+oly with existing law at time of construction, 'S0 � �3 y 50 , 3• Tracts traversea oy the section lines are sUb � ect 1 U v o 1 TRACT E :o a �o goo: easement on each side of the section O- �+ 0 - ; ;ine whlc't 3s roservea to the State Of Alaska for t C CO n 1 �� .706 AC public hignways unoer A.S.19. 10.010. ? 1 z a• r'act G 13 s�eIect to a 50 foot wide lines `1 •- � 1 / pub : i c e a;erent a ` n l Derpetua 0 � a .0 q the mean high water line of o o k Inlet. - 1 i 00 =BMW , i Suggested by: Administration CITY OF KENAI ORDINANCE NO, 1184-87 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 21.20.270(a)(1) AND PROVIDING FOR A $500,000 LEVEL LIMIT POLICY INSURANCE REQUIREMENT. WHEREAS, Lessees of City -owned property are having an increasingly difficult time acquiring $1,000,000 of insurance as required by KMC 21 .20 .270 (a) (1 ) ; and, WHEREAS, the President of the United States has declared a crisis in the insurance liability market ; and, WHEREAS, it is the desire of the City of Kenai to aid small businesses in this particular crisis. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 21 .20 .270 be amended as follows: 21 .20 .270 Insurance -Hold Harmless: (a) Lessee shall convenant to save the City harmless from all actions, suits, liabilities, or damages resulting from or arising out of any acts of commission or omission by the lessee, his agents, employees, customers, invitees, or arising from or out of the lessee's occupation, or use of the premises demised, or privileges granted, and to pay all costs connected therewith. In this connection, the lessee shall agree to arrange and pay for all the following: (1) [PUBLIC] Comprehensive general liability insurance protecting both the City and/or its agents and the lessee, such insurance to be evidenced by a certificate showing the insurance in force. [THE AMOUNT OF SUCH PUBLIC LIABILITY INSURANCE SHALL HAVE LIMITS NOT LESS THAN THOSE KNOWN AS $5009000/$190009000/$2509000.1Said comprehensive general 1 liability insurance shall be in the form of policy commonly known as a level limit policy combining bodily injury and property and in an amount not less than $500,000. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of January, 1987. ATTEST: Janet Whelan, City Clerk 12/31/86 JOHN J. WILLIAMS, MAYOR First Reading: January 7, 1987 Second Reading: January 21, 1987 Effective Date: February 21, 1987 2 Suggested By: Mayor Williams CITY OF KENAI RESOLUTION 87-5 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, SUPPORTING THE KENAI PENINSULA COMMUNITY COLLEGE. WHEREAS, the Kenai Peninsula Community College has been legally established between the Kenai Peninsula Borough School District Board of Education and the University of Alaska Board of Regents; and, WHEREAS, the impetus for the founding, development, and growth of the College has emanated from the citizens, businesses and industry of the Kenai Peninsula; and, WHEREAS, the College has operated efficiently and effectively within the policies of the Regents through considerable citizen community involvement; and, WHEREAS, the Alaska State Legislature has fully funded degree programs, both college transfer and vocational/technical, and continue to do so at a level capable within the reduced revenue of the State, with such funds placed in the stewardship of the Regents; and, WHEREAS, the reorganization of the University of Alaska adopted by the Regents erodes local control of programs specifically developed and accredited to meet the post secondary needs of the citizens, industry, and the Borough- and, WHEREAS, the new organization removes frontline service capabilities to address the local concerns and needs for college transfer and vocational training appropriate to the citizens of the Kenai Peninsula; and, WHEREAS, the University of Alaska Statewide Administration has not demonstrated that significant reductions have been made in the administrative budgets in areas not related to instruction thus addressing legislative concerns and budget reduction requirements; and, WHEREAS, the City Council of the City of Kenai believes the community's needs could be best met through a structure which' provides programs and services determined by the local citizens to meet local needs. NOW THEREFORE, BE IT RESOLt BY THE /COUNCIL OF THE CITY OF KENAI, ALASKA, that the Alaska Board bf Regents be requested to its decision je�� reconsider ' which now has a community --c-eg 611 ...... -et,-ohave self-determination ether or not should be maintained, become learning center,' or be phased out completely; and, BE IT FURTHER RESOLVED that the City Council of the City of Kenai supports the establishment of a structure which allows greater local determination, oversight and administration of funds allocated by the legislature in support of community college courses and vocational programs, PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that 21st day of January, 1987. JOHN J. WILLIAMS, MAYOR ATTEST: Janet Whelan, City Clerk (1/21/87) KENAI HARBOR COMMISSION Minutes, Regular Meeting Held, Kenai City Hall, Council Chambers Thursday, January 15, 1987, 7:00 p.m., AST CALL TO ORDER Leon Quesnel, Chairman (pro tem), called the meeting to order at 7:00 p.m. and welcomed the new member, Barry Eldridge to the Commission. Swearing in will take place at the next meeting, along with two other members. Chairman Quesnel called for election of Chairman and Vice Chairman. Commissioner Houtz nominated Commissioner Quesnel as Chairman. Commissioner Thompson seconded the nomination and asked that the nominations be closed, It was seconded by Commissioner Houtz � that the nominations be closed.. Commissioner Quesnel was elected Chairman. Chairman Quesnel nominated Commissioner Thompson as Vice Chairman. The nomination was seconded b Commissioner Houtz and Y , asked that the nominations be closed. Commissioner Thompson was elected Vice Chairman, 1. ROLL CALL Present Absent Leon Quesnel Marvin Dragseth Allen Houtz Tom Thompson Barry Eldridge In Attendance: Tom Ackerly, Kenai City Councilman Keith Kornelis, Public Works Director 2. APPROVAL OF AGENDA Chairman Quesnel approved the agenda as written. 3. PERSONS PRESENT SCHEDULED TO BE HEARD None. KENAI HARBOR COMMISSION January 15, 1987 Page -2- 4. APPROVAL OF MINUTES The Harbor Commission has not met since April of 1985, therefore, the Chairman waived approval of the minutes. 5. UNFINISHED BUSINESS 6. a. Harbor Project. Chairman asked Director Kornelis to bring the commission up to date. Director Kornelis referred to his memorandum, dated January 15, 1987, with a copy given to each Commissioner. Director Kornelis gave a brief report of information contained within the memorandum. He asked for suggestions and comments relating to the operation of the boat facility. Director Kornelis elaborated- on the research done and the pros and cons of the project for the City of Kenai. All areas of this project were discussed with questions from the Commissioners relating to this project. NEW BUSINESS A. Operational Criteria, Chairman Quesnel indicated he had acquired a booklet of information on "How to Establish a Small Boat Harbor Operation" by the Department of Transportation, dated 4/20/84. He would like copies for each Commissioner. There was general discussion involving all phases of the operation, the management, costs, codes and ordinances. The general consensus was to draft a detailed information packet by April 1,,1987. Chairman Quesnel appointed Commissioner Thompson to head a committee to obtain operational criteria for the new facility and to work with Director Kornelis on this. Commissioner Thompson accepted this appointment. Chairman Quesnel will help on this committee. KENAI HARBOR COMMISSION January 15, 1987 Page -3- Commissioner Houtz would like a letter sent to all processors. Chairman Quesnel asked that a letter be sent to all processors and ask for comments and proposals as to how they would like to see the dock utilized and if they would be utilizing this facility. Also, asking for their comments and suggestions, Director Kornel is will see that the letter is sent and refer all replies to the commission. Chairman Quesnel stated that questions could be directed to him if any calls were received for further information. b. Budget. The budget for FY 87/88 was discussed by the commissioners. The blank form provided by Planning } Specialist Loper P p was addressed and the work sheet, (attached), was f illed in with the amounts as they were discussed. 7. COMMENTS AND QUESTIONS Commissioner Houtz would like to have outlined, at the next meeting, what is being proposed. Commissioner Thompson will work on operating manual. The general consensus was to work on setting up the harbor with the City running the facility and working on a budget, to address at the next meeting. Next meeting will be held February 5, 1987 at 7:00 p.m., City Council Chambers. ADJOURNED The meeting was adjourned at 8:50 p.m. Niva A. Aburto dba/Niva's Clerical Services for the City of Kenai I .j I 1 1 ) I KENAI PARKS & RECREATION COMMISSION January 13, 1987, Wednesday, 7:00 p.m., AST Held, Kenai City Hall, Conference Room Presiding: Richard Hultberg, Chairman Minutes, Regular Commission Meeting 1. ROLL CALL Present Absent Dick Hultberg Dale Sandahl Cindy Salazar Marvin Siekawitch Roger Siebert (arrived later) Jerry Carlson Jenni Lynn ( KCHS ) In attendance: Kayo McGillivray, Director, Parks & Recreation 2. APPROVAL OF MINUTES - December 9, 1987 Chairman Hultberg called for approval of the minutes. Jenni Lynn advised that her named was misspelled. The correction was noted by the secretary. The minutes were approved with the correction. 3. DIRECTOR'S REPORT a. City league Basketball Schedule. Director McGillivray passed out copies of the basketball schedule. There are nineteen teams. They have been divided into two leagues. Fourteen teams in the B League and five in the A League.. Director McGillivray further reported on the times and locations of the various leagues. OR 04 b. Carpet Bid Award and Selection. Director McGillivray advised the bid was awarded to Peninsula Flooring for $9,828.59. Total appropriated was $9,000, and $828.59 came from the budget. Color sample was passed around and discussed for color of carpeting. It was decided that the color "Real Silver" be installed upstairs and a choice of "Sirocco Tan" or "Burlwood" be installed downstairs. KENAI PARKS & RECREATION COMMISSION January 13, 1987 Page -2- c. Off Road Vehicle Ordinance. Pamphlets were passed around to each committee member regarding the Off Road Vehicle Ordinance. This was reviewed, discussed and the change was pointed out to the committee members. d. Ski Trip. It was reported by Director McGillivray that one bus was used for the ski trip and thirty-seven participated. The cost was $25.00 per person, which covered everything, 4. OLD BUSINESS a. Parks Update. Director McGillivray indicated the parks update is not ready, as it needs to be typed. 5. NEW BUSINESS a. Park Lands Not Required - Release for Purchase: Tract F, Dena'ina Point Estates (Section 36) Location of this property was discussed. It was determined that this tract would not be suitable for a park location. MOTION Commissioner Carlson moved not to designate Tract F as a park and release it back to the City. The motion was seconded by Commissioner Siebert, Chairman Hultberg choose a vote by roll call. The motion passed by unanimous consent. 6. BEAUTIFICATION COMMITTEE REPORT Director McGillivray gave a brief report of the Beautification Committee meeting he attended. KENAI PARKS & RECREATION COMMISSION January 13, 1987 Page -3- 7. COMMISSION COMMENTS & QUESTIONS Director McGillivray indicated that the budget will need to be discussed and a special session may need to be called for sometime in February. There was a general discussion involving the budget and possible cuts involving Parks and Recreation. Chairman Hultberg wanted to make arrangements to meet with Director McGillivray regarding the Regional Wrestling Tournament scheduled for April. � KCHS Representative ' p ative Jenni Lynn asked what happened to the pamphlet for the Kenai Recreation Center. Director .McGillivray stated that the individual interested in producing the pamphlet never followed through, Commissioner Salazar would like to see more programs for the teenagers* P g g Commissioner Salazar would also like to know how problems with the dances can be solved, so that dances can be held again. Commissioner Siebert had no comments at this time. Commissioner Carlson had no comments at this time. ADJOURNMENT Meeting was adjourned at 8:13 p.m. y Niva A. Aburto dba/Niva's Clerical Services for the City of Kenai r AGENDA KENAI CITY COUNCIL - REGULAR MEETING JANUARY 7, 1987 - 7:00 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 member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. B. PERSONS PRESENT SCHEDULED TO BE HEARD (Time Limit - Ten Minutes Per Person) 1. Joe Arness - Baling Facility in City 2. Don Cornell Increase in Lease Amount - Alyeska Subdivision C. PUBLIC HEARINGS 1. Ordinance 1179-86 - Amending KMC Title 14, deleting "advisory" from committee names. 2. Ordinance 1180-86 - Amending KMC Title 16, providing supplemental assessment for specified assessment district. 3. Ordinance 1181-86 - Amending KMC Title 8, adopting national fire code and uniform fire code. 4. Ordinance 1182-86 - Amending KMC Title 6, location of polling places. 5. Resolution 87-1 - Authorizing sale of Government Lot 15 to Marvin Dragseth, 6. Resolution 87-2 - Awarding Contract of Recreation Center Flooring to Peninsula Flooring Center - $7,450. 7. Resolution 87-3 - Awarding bid for Senior Center van to Craycroft Chrysler - $16,701.70. 8. Resolution 87-4 - Confirming assessment roll - Eagle Rock/Tern, 9. Renewal of Liquor License - Windmill Restaurant, 10. Renewal of liquor licenses - Mr. D's, King Oscar's, EadieIs Frontier Club, Uptown Motel/VIP Lounge, Rainbow Bar & Grill. *11. Renewal of Liquor License - Eagles Club #3525. 12. Renewal of Liquor License - Peninsula Moose Lodge #1942. D. REPORTS 1. City Manager 2. City Attorney 3. Mayor 4. City Clerk 5. Finance Director 6. Planning & Zoning Commission 7. Harbor Commission 84, Recreation Commission 9. Library Commission E. MINUTES *1. Regular Meeting, December 17, 1986. F. CORRESPONDENCE G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid , Bills to be Rati fled 2. Requisitions Exceeding $1,000 *3. Ordinance 1183-87 - Finding City -owned land not required for public purpose - Section 36. *4. Ordinance 1184-87 - Amending KMC Title 21 - Providing for $500,000 level limit policy insurance requirement. 5. Discussion - HEA letter regarding Bradley Lake Project/Railbelt Energy Fund. 6. Request for Assignment of Lease - D & D Enterprises to Galaxy, Inc. - Travel Agency/Kenai Airport. 7. Discussion - 1987-88 Capital Improvement Projects - Request for State Grants Priority List, 8. Request for Rescission of Lease - Blue Mountain Ventures, FBO Subdivision. 9. Discussion - Disposition of Candlelight Drive Extension, 10. Ratification of Council Telephone Poll of January 2, 1987 - Regarding award of bid for ticket counter construction and installation at Kenai Airport. _ I. PERSONS PRESENT NOT SCHEDULED TO BE HEARD (Time Limit - Five Minutes Per Person) ADJOURNMENT ft KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 2 ADDED ITEM: Mayor Williams noted a PO for $5,400 to Ross Services, Snow Plowing, was distributed this date to be added / under item H-2. B. PERSONS PRESENT SCHEDULED TO BE HEARD B-1 Joe Arness - Baling Facility in City Joe Arness, Chairman of Kenai Borough Waste Disposal Commission. There has been continuous controversy regarding the land fill in Section 36. The Commission has proposed closing it one year from this June. The Soldotna land fill would be the Borough land fill. It would be a problem moving solid waste from Nikiski and Kenai. One solution is a baling facility. It is done in Homer and works well. It would be baled and brought to Soldotna once or twice a day. It would be cost -saving and cut down on litter. In some communities these balers are being used to create topography. It could be for ski hills. The Commission is meeting this date and will recommend Architect Gintoli to do the schematic proposal. They will not recommend if there is any hesitation by Kenai. Mr. Arness distributed material showing the Homer facility and other facilities. He added, all operations are inside the building. City Manager Brighton asked if their intent was to increase the Soldotna site. He noted, many people at the Jan. 6 hearing objected to this. Mr. Arness replied, the Soldotna site is the one they have now. They do not have Elephant Lake at this time. Soldotna will only last 5-8 more years once Kenai waste goes there, it could add a number of years if the waste is baled. He noted balers are the top priority at the Borough for Municipal funding. Councilwoman Bailie asked about Marathon Rd. site being 7 miles out. Mr. Arness replied, that would be a land fill site. It was the only place with enough gravel. It is not a baler site. Councilwoman Bailie asked if they could locate the baler there. Mr. Arness replied, that is 2nd choice if they cannot get the Kenai site. Councilwoman Bailie noted there is a group trying to improve Section 36 into a nice subdivision. Marathon could be considered as an alternate. Mr. Arness explained, he could not give a date at this time, but they have an idea of how many bales they will produce. They would have to know how long it would take to build a ski site. When completed, they would move the baler. Councilman Wise noted the site cannot be developed now. He expressed concern that the site is encroaching on Woodland Subdivision. He asked that no more area be disturbed, that a buffer around the area be retained by the Borough and the rest of the land be disposed of by sale. He asked for a commitment from the Borough how the land will be developed. Councilman McComsey asked if there was a saving if the waste is baled in Kenai and hauled to Soldotna. Mr. Arness replied yes, this will extend the life of the Soldotna land fill also. Bales have less impact than land fill. Councilman McComsey noted you can put playground equipment on bales right away, but cannot with land fill. Mr. Arness added, bales are water proof, they help keep surface water from filtering through the old land fill. Mayor Williams asked, what is the cost of the schematics? Mr. Gintoli replied, $1,800. KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 3 MOTION: Councilman Wise moved to concur with exploration of the concept Mr. Arness has proposed. Council agreed to wait till after Mrs. Breeden's testimony. MOTION, Withdraw: Councilman Wise withdrew his motion. B-2 Loretta Breeden - Ordinance for Toxic Wastes Loretta Breeden, 1602 Barabara, Kenai. She asked that before Council considers extending the life of this facility or any other site in Kenai, they have a toxic waste ordinance. The land is useless because of pollution, it cannot be used for 100 years. Before Marathon Rd. is discussed, Council should consider this is the beginning of the water shed for Beaver Loop aquifer. She added, the only oil and gas action is in Cannery Loop. Mr. Arness replied, the Borough is drawing up a hazardous waste ordinance. They have reviewed the Anchorage ordinance. Alaska DEC is going to enact new regulations regarding solid waste facilities that will give local government almost total control. *"*&QF Councilman Wise moved, seconded by Councilman McComsey, to concur with exploration of the concept as Mr. Arness has proposed. Motion passed unanimously by roll call vote. B-3 Iona Wilson - Alpine St. Plowing Ms. Wilson asked Council to reinstate Alpine as a street to be plowed. She has lived there since 1962, there was no division at one time but the City built a road for access to Alpine. The City had plowed and graded the road till the winter before last. She called the City and they said they would not plow because it was the only house on the road. She wrote a letter to Council and the road was plowed. It was graded last summer. She called last week and asked it be plowed and they said they would not because it was not on the list. When the road is not plowed, she can only get out by 4-wheel drive. She does not have city water & sewer, police, fire or ambulance when the road is not plowed. Public Works Director noted material distributed this date. Councilman Wise said the map is erroneous, the plats do not agree with the topography. He did not think Alpine was on the property line. Councilwoman Monfor noted she lives on a road that is not completed and not accepted by the City, it is being plowed by the City. Mayor Williams said in Oct. 1984 Council directed Alpine not be maintained by the City. Councilwoman Monfor asked how long it would take to do Alpine. Public Works Director Kornelis replied, it is difficult to maintain, the gravel surface is poor. He estimated 45 minutes. Councilman Ackerly suggested it would be cheaper to pay someone to do it. Ms. Wilson said she has never seen them take longer than 15 minutes. It is 1/4 mile long, smooth gravel, no hills KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 4 or hollows. They can do it with one swipe. Mr. Kornelis explained he was directed to discontinue maintenance. He had suggested it be put on the Capital Improvement list. He added, this property is not on Alpine, it is behind the lots facing Alpine. The road is outside the right of way, it goes through private lots. We would be trespassing if we maintained. City Manager Brighton asked if the road broke up during Break -Up. Mr. Kornelis replied yes, it also floods. MOTION: Councilman Wise moved, seconded by Councilwoman Monfor, that Administration be directed to limit maintenance of Alpine to snowplowing. Motion passed unanimously by roll call vote. Mayor Williams asked if next Spring, Public Works Director Kornelis could define the exact location, if Alpine is on or off private property. B-4 Don Cornell - Increase in Lease Amount - Alyeska Subdivision Mr. Cornell explained he is sub -leasing the land. The lease price was increased last July from $1,340 to $4,446, 3290 over the original price. By the terms of his lease, he is obliged to pay the difference. Business is tough. Sept. 5, 1986, Mr. Booth (original lessee) sent a letter to Atty. Rogers, there was no reply. He has come to Council because he is paying the difference. He is asking to have the City reconsider the new price. Mayor Williams asked if he had a 500 cap. Atty. Rogers replied the 50o cap was rescinded. It was in effect for 2 years. The lease amendment was signed by Cornell to Booth, Mr. Booth's objection was 6 months later. It is too late. If it had been done in a timely manner, it could have been worked out. Mr. Cornell said there are 2 leases, one for Booth and the City and one for Booth and Cornell. He has no choice but to pay the difference. He could not protest to the City, he had to let Mr. Booth protest. Atty. Rogers replied he is not privy to the Booth/Cornell lease. Mr. Booth is the appropriate person to protest. He did not protest in a timely manner. Mr. Cornell is not the proper person to protest. Mr. Cornell replied, he agreed, but he is asking Council to see if anything can be done. Atty. Rogers said we have a number of lessees that object because of lease amounts. If Council gives relief, he asked that it be in a uniform manner. Councilman Wise said the City instructed re -appraisal at renewal with a local appraiser. The lessee has a right to protest the increase, they should dispute the appraisal. He did not know if the value is wrong, 60 return is not unreasonable. Mr. CorAell said when he agreed to lease, there was a price. Mr. Booth had said it could not be increased beyond 500. It was true at that time. Mayor Williams said the 50o cap was incorporated into the original lease and has been rescinded on others. It does not affect Mr. Cornell's lease. Council took no action. B-5 Jill Burnett - Candlelight Ext. KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 5 Jill Burnett, 1304 Kiana, Kenai. The development of her land has been delayed 4 years because of City delay. There is no appropriate access. The marketing peak has come and gone. They have 3 choices: a) Not to expand the golf course. That would be bad at a public standpoint; b) City build access road, that would be at a large cost; c) Redesign the course to accommodate existing road. Mr. Morgan has been approached regarding this. He did not feel this was a viable solution. She has heard of golf courses that have been planned around roads. Mr. Morgan has not consulted professionals regarding the fact this would not be a viable solution. State and Federal agencies have approved the road for many years. The City should stand by their word so she can continue the development. The City should commit to maintenance till there are residents there. That option is in the original ordinance. That should be exercised as recompense to her for the delay. She asked that: a) the City honor the old ordinance, all aspects have been complied with; b) The City provide maintenance. Mayor Williams said Ord. 870-83 grants this easement without maintenance or cost of perfecting. The problem is the lease to Mr. Morgan came after this ordinance. He asked, what does perfecting mean? Atty. Rogers replied there was no delay by the City in establishment of public use easement. It says a 60 ft. easement be established. It is worded purposely that way. Also, } the City does not assume the cost of maintenance, improvements or perfecting. Administration spoke against the easement. The easement was not perfected by a recordable document. Had it been recorded, any lease of those lands would be subject to the recorded document. There was a subsequent lease that did not exclude the property covered by Ord. 870-83. Had it been recorded, it would have been excluded. At this point, it would appear Mr. Morgan has indicated he will not give the rights he has. Council has indicated it does not wish to spend money on alternate access. Access does exist on the section line. The Burnetts k have not perfected the easement. The Morgans have property with recorded easement. Mrs. Burnett said at the time of the ordinance, she talked to Land Manager Labahn. He said the only thing required was a letter from the State. No mention of recording was made. She has attempted to record. The court house will not accept a copy of the ordinance. She made an appeal to the City to utilize the ordinance temporarily and was denied by Atty. Rogers. She has not been allowed to record. Alternate access does not exist, it is government declared wetlands. If permission could be obtained, it would be red tape and cost. Atty. Rogers replied he did not recall the denial. If it was made, he asked if it was in writing. Mrs. Burnett replied, it was verbal to the Clerk. Atty. Rogers said if there was a denial, he would have it on record. Mrs. Burnett said she was told the City does not relinquish original copies. Atty. Rogers said that sounded reasonable. Mrs. Burnett said she did not feel she should be penalized. Atty. Rogers asked if she said, if it was recorded, it would be a perfected instrument? Mrs. Burnett replied, she thought that is what he said. Atty. Rogers said, no recordable document was recorded. Mrs. Burnett said that was the only one available, and the City would not relinquish it. Councilwoman Bailie said if Council is responsible for approving establishment of public use easement by ordinance, the KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 6 City has the responsibility for recording of the ordinance. Under the circumstances, since this was prior to the Morgan lease, we have a responsibility to Burnetts. MOTION: Councilwoman Bailie moved, seconded by Councilman Wise, to provide Burnetts with access whether through existing Candlelight or through acquisition of a new route. Councilman Wise said there was access that had been used over time by predecessors and Burnetts. It was the intent of Council that the access be protected. Council meaning of perfecting was, they would not spend money on the road even for recording. But we did not expect perfecting meant surveying, that this would be incumbent on Burnetts. If was clear from the ordinance we would not maintain the road. The City should not have leased without due consideration of a road. Councilwoman Monfor said she is embarrassed Mrs. Burnett is back, she thought it was settled. She was remiss when the lease was made with Mr. Morgan. She always thought Candlelight would be access. Mayor Williams said we have an existing lease with Mr. Morgan. An addition is planned this year. It will require re -design. He suggested Council consider a work session with Burnetts and Morgans prior to a motion, or after the action to clarify. Councilman Wise said we have an obligation to ensure access. Mayor Williams noted if an alternate route is chosen, Council will have to address the cost. Councilwoman Bailie noted this ordinance was adopted before the lease with Mr. Morgan, the City's responsibility lies with Burnetts. VOTE: Motion passed unanimously by roll call vote. 144 B-6 City Manager's Report - Budget Status - City Mayor Williams asked that this report be done every month. He noted there is another short -fall in the State. We should be aware of the large change in State finances. City Manager Brighton reviewed the report from Finance Director Brown. Every one of our revenue sources is substantially below projected amounts with the exception of personal property (up a little). We have increased fund balance substantially in recent years. This will be the first year of a short fall. He added, Finance Director Brown attended a session in Anchorage regarding bonding and revenues. Comm. of Revenue Malone attended. It is not beyond possibility that we will take another cut in municipal assistance and revenue sharing. Finance Director Brown reviewed the meeting. Comm. Malone said the State will go back to essential services. There will be a State, private economy blend. There will not be capital projects to provide jobs. Employment in the State has been carried by the State, this will stop. An increase in the price of oil should be saved so we do not have to go through this again. Many pass -through funds will be eliminated. He was told local governments will get cut "real hard." The optimistic figure was 500. He noted these are Comm. Malone's thoughts, not the Governor's KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 7 or the Legislature's. City Manager Brighton explained, if we get 50% funding for school debt, we will be lucky. It is a possibility municipal assistance and revenue sharing will expire this year. This means an excess of $1 Million per year. One mill is $330,000, 3-1/4 mills lost just for the City. At $15 Million to fund school bond indebtedness in the Kenai Borough, the Borough will need $7-1/2 Million new money. That is without opening the new schools, equipment, teachers. The Federal Government is in the same process of passing programs back to local government. Now the State is doing the same. It is happening all over the U.S. Kenai is ahead of others, but it will not save us. Mayor Williams said every time the City considers spending money, we have to consider this. There are many services that will have to be curtailed. We are looking at 15 mills next year. Councilman Ackerly asked if it is going to be equitable in Kenai and larger areas with Bush areas. It has not been in the past. Mr. Brighton said some people are taking a long look at the Bush. They have our services but pay no taxes. The suggestion has been made that each one get a permanent fund check and pay a percentage in lieu of tax payments. There will be much debate regarding this. Councilwoman Bailie noted this was discussed at Municipal League. They are encouraging the Bush to tax themselves. It was suggested that if the tax payers were to organize they would out number them and could come to a decision. She added, we need to re -prioritize our commitments. She noted the sales tax report was through Sept., the new businesses will make a difference in the last quarter. Councilman Wise noted a head tax at $25 was mentioned. That could impact all people. A State sales tax was discussed. Also, a tax equivalency on those taxing themselves. He added, we need to think of the law suits against the City. If they are lost, that could be $1/2 Million to $3 Million loss. It would wipe out the capital improvement reserve. It generates interest revenue. He suggested Administration find a $100,000 cut in the current budget to cover the short fall. C. PUBLIC HEARINGS C-1 Ord. 1179-86 - Amend. KMC - Title 14 - Deleting "Advisory" form Committee Names MOTION: Councilwoman Bailie moved, seconded by Councilwoman Monfor, to adopt the ordinance. There was no public comment. Motion passed unanimously by roll call vote. C-2 Ord. 1180-86 - Amend. KMC - Title 16 - Providing Supplemental Assessment for Specified Assessment District MOTION: Councilman Ackerly moved, seconded by Councilwoman Bailie, to adopt the ordinance. There was no public comment. KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 8 City Manager Brighton said there has been substantial objection to this. This is designed for: a) After we close out a special assessment district, if there is additional cost, it cannot be added into the assessment; b) Payment will go to all the tax paying public, this will confine the charges to the assessment district. c) If there is a question regarding closing, the interest keeps accruing and adds to the cost. With this we can close out and address the problem at a later date. He noted Councilman Wise was concerned that a lending institution would not loan money for purchase without knowing liens. Councilman Wise explained, the application is punitive to any future special assessment districts or to Inlet Woods. Alaska Housing Finance will not loan money on property which has assessments without paying off the assessments. They are the major lender in the State. 2 charges are allowed in the ordinance. Alaska Housing Finance calls the City whenever there is an assessment till the 2nd special assessment is completed. Those living in assessment districts could not sell till there were 3 assessments levied. Also, if HEA wins their suit (regarding relocation of utility lines) we could go back and assess our losses. We are putting it to everybody because of one problem. VICE MAYOR MEASLES TOOK THE CHAIR. MOTION, Table: Mayor Williams moved, seconded by Councilman Wise, to table the ordinance till such time as Administration can answer the question if it will affect financing of homes if it is put on the books. VOTE, Table (Passed): .Yes: Wise, Williams, McComsey, Measles, Monfor No: Ackerly, Bailie Acting Mayor Measles asked that this be done as soon as possible. MAYOR WILLIAMS RESUMED THE CHAIR. C-3 Ord. 1181-86 - Amend. KMC - Title 8 - Adopting National Fire Code & Uniform Fire Code Mayor Williams asked that "Effective date, Feb. 7, 1987" be added to the ordinance. MOTION: Councilman Ackerly moved, seconded by Councilwoman Bailie, to adopt the ordinance. OR There was no public comment. Motion passed unanimously by roll call vote. C-4 Ord. 1182-86 - Amend. KMC - Title 6 - Location of Polling Places MOTION: Councilman Ackerly moved, seconded by Councilwoman Bailie, to adopt the ordinance. KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 9 There was no public comment. Motion passed unanimously by roll call vote. C-5 Res. 87-1 - Authorizing Sale of Govt. Lot 15 to Marvin Dragseth MOTION: Councilman Measles moved, seconded by Councilwoman Monfor, to adopt the resolution. There was no public comment. Atty. Rogers stated this meets the criteria of the Code. Councilman Ackerly asked, what is a small parcel? Atty. Rogers replied, this was used in the past for Alaska Statebank. A small parcel is what the Council says it is. Councilman Wise said this has been released for sale. It should be the same as Dave Brown's request for Section 36 purchase, it was not for sale without an ordinance to make it available for sale. Land Specialist Gerstlauer said the area is approximately 5 acres. In Mr. Brown's case it was set aside for public use, the ordinance was to make it available for sale. We do not have to make all lands available by ordinance. Councilman Measles said Dave Brown is an adjoining owner, and his land area is smaller than this one. Atty. Rogers said this is not a small parcel. This would get them on the tax rolls when they are not acceptable as a separate parcel to be utilized. Mrs. Gerstlauer said one acre is developable, the rest is swamp. Atty. Rogers replied, that is a different situation. Councilman Measles said we could not judge if the property is of value to anyone else or how much can be developed. Mr. Brown's case and this are similar, we should be consistent. The intent of the ordinance is for small areas of no value to anyone else. Councilman McComsey asked if he could still match the bid if it was put up for sale. Atty. Rogers replied, probably. MOTION, Table: Councilman Wise moved to table the resolution. MOTION, Withdraw: Councilman Wise withdrew his tabling motion. Mayor Williams explained, Section 36 land requested by Mr. Brown was set aside for special purpose and was not for sale, this land was available for sale. City Manager Brighton explained, he thought this was the easiest way to resolve the problem. Mr. Dragseth has the only access. Size, location and shape were all in the criteria. VOTE (Failed): Yes: Williams, Monfor No: Wise, Ackerly, Bailie, McComsey, Measles Councilman Wise noted Council has not objected to the sale, but it should be by bid. Council agreed to the statement. Mayor Williams said if it is offered for sale, there is no legal access. Adjoining property is KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 10 owned by Mr. Dragseth or the City. Council will have to make provision for access. Councilman Wise suggested the sale state there is limited access. C-6 Res. 87-2 - Awarding Contract of Recreation Center Flooring to Peninsula Flooring Center - $7,450 MOTION: Councilwoman Bailie moved, seconded by Councilman Ackerly, to adopt the resolution, with substitute resolution submitted this date. Recreation Director.McGillivray asked for an additional $827.15 to carpet the pool/game room. At the time of the request, the carpet was not bad, but it is now. He has $9,000 in the budget. MOTION, Amendment: Councilman Measles moved, seconded by Councilwoman Bailie, to amend the resolution to include additive alternate #1, $2,377.15. VOTE, Amendment (Failed): Yes: Bailie, Measles, Monfor No: Wise, Williams, Ackerly, McComsey, MOTION, Reconsideration: Councilman McComsey moved, seconded by Councilwoman Bailie, to reconsider the resolution. Motion passed by unanimous consent. Finance Director Brown explained, there is enough to cover the excess, it is under $1,000 and does not have to come back to Council. MOTION: Councilwoman Bailie moved, seconded by Councilwoman Monfor, to add the added alternate #1 to bring the total to the required amount and Administration will find the additional. Councilman Wise said we will have a $400,000 shortfall in income. It is time we start cutting the current budget. Councilwoman Monfor said the area is in need of carpet. It would be better to spend a small amount now than a large amount later. Councilman Measles said the last area to cut is allowing public buildings to deteriorate. VOTE, Amendment: pq Yes: Williams, Bailie, McComsey, Measles, Monfor No: Wise, Ackerly VOTE, Main Motion as Amended: Yes: Williams, Ackerly, Bailie, McComsey, Measles, Monfor No: Wise KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 11 C-7 Res. 87-3 - Award Bid - Senior Citizen Van - Craycroft Chrysler - $16,701.70 MOTION: Councilman Ackerly moved, seconded by Councilman McComsey, to adopt the resolution. There was no public comment. Councilman Wise asked, why are we using volunteer moneys and sending money back to the State? City Manager Brighton replied, this awards the van and the radio. The wheel chair lift is not part of the resolution. They are negotiating with Easter Seals Society to provide the lift. If we cannot buy it, the remainder will go back. Councilman Wise said we are obligating $16,000+, we are asking Easter Seals for $3,000+. It would appear we are creating more problems for Finance Dept. by sending back $3,000+ and asking the public to come up with $3,500. Program Director Porter said she was contacted by Easter Seals as to what is needed. She needed a wheel chair lift, they said they would pay for it. She will use the left -over funds for winter tires and other things. She decided the easiest way was to have Easter Seals pay for the lift. There may be some funds sent back. She is still working with Easter Seals. Councilman Wise said we are obligating this amount and will have to pass the wheel chair lift later. Mrs. Porter said she would like to go ahead with the resolution. If she had to come up with the lift portion, she can come back for that. Councilman Measles said she cannot order the vehicle till they know about the wheel chair lift. It is factory installed. City Manager Brighton asked, how vital is the chair lift? Mrs. Porter replied, it is vital. Mr. Brighton asked if we had one before. Mrs. Porter replied yes, but they did not use it. They inherited it from the Salvation Army. Mr. Brighton t noted, we disposed of the wheel chair lift before we disposed of the vehicle. Mrs. Porter said we have additional older people. VOTE: Motion passed unanimously by roll call vote. C-9 Renewal of Liquor License - Windmill Restaurant Approved by Consent Agenda. C-10 Renewal of Liquor License - Mr. D's, King Oscar's Eadie's Frontier Club Uptown Motel/VIP Lounge Rainbow Bar & Grill MOTION: Councilman Ackerly moved, seconded by Councilman Measles, to send a letter of non -objection to ABC regarding the applications. Motion passed by unanimous consent. C-11 Renewal of Liquor License - Eagles Club #3525 KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 12 Approved by Consent Agenda. C-12 Renewal of Liquor License - Peninsula Moose Lodge #1942 % Approved by Consent Agenda. D. REPORTS D-1 City Manager City Manager Brighton spoke. a. Building Permits Report: 1985 - 79 single 1986 - 33 single 1985 - $4,600,000 commercial 1986 - $15,000,000 commercial Of the $15 Million, $6.7 Million is non-taxable, the remaining $8.3 Million is taxable. That is up 800. b. The Community College is having a "Building Better Boards" course. Last year Administration contacted all comm/comm, the City paid the tuition. He suggested it be offered to all new members, including Council. Council agreed to the suggestion. C. The Borough Planning Dept. is asking for a decision regarding the Comprehensive Plan. He F asked for a work session to resolve this. The Plan has not been adopted. He suggested he work with the Borough and report to Council at the Jan. 21 meeting. Council agreed to the suggestion. d. Council has placed the comm/comm reports at the beginning of the agenda. He asked if Administration reports could remain at the end of the meeting. The comm/comm chairmen wish to leave early, but Administration would prefer to review actions of Council during the meeting. - MOTION: Councilman Ackerly moved, seconded by Councilwoman Bailie, for Commission/Committee reports to be after "Persons Present Scheduled to be Heard" on the agenda, "Administration Reports" at the end of the agenda. VOTE (Passed): Yes: Williams, Ackerly, Bailie, McComsey, Monfor No: Wise, Measles D-2 Attorney None D-3 Mayor's Report Mayor Williams spoke. a. Regarding the Annual Conference on Alaska's Resources meeting in April (item D-3). He asked if Council was interested. Councilwoman Bailie noted she would like to attend if Council approves. No action taken by Council. KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 13 b. Mayor Williams and Barry Thomson attended an ANWR meeting in Anchorage Jan. 5. Their comments were well -received. C. He has received a letter from Hope Cottage in Anchorage. There are Kenai people there. They are asking for verbal support from Council. No action taken by Council. d. Appointments to Comm/Comm: Wildwood Advisory Board - Councilwoman Monfor Council on Aging - Sylvia Johnson - Re -appointment Shirley Henley - Re -appointment Betty Warren - Re -appointment Fiocla Wilson - Appointment Patrick Cartee - Appointment Beautification - Harry Lewis - Appointment Landscape - Doug Sloan - Appointment Carolyn Osborne - Appointment Economic Development - Darren Bond - Appointment Library - Ron Chappell - Appointment Personnel Arbitration - Robert Summers - Appointment Gene Burden - Appointment Ron Malston - Appointment Mike Baxter - Confirm Roger Holl - Confirm Planning & Zoning - Marj O'Reilly - Appointment Gloria Church - Appointment Leighton Misshou - Appointment Parks & Rec - Dale Sandahl - Appointment �. Cynthia Salazar - Appointment Harbor - Barry Eldridge - Appointment Council approved the actions as submitted. e. Regarding the Airport Committee and Harbor Commission. We have other transportation problems in the City that could be reviewed by a transportation commission. Government entities have no problem with combining the 2. It has been done before. There is no problem with co -mingling of assets, the Finance Dept. can take care of that. An airport commission could review all material and bring it back to Council. Councilwoman Bailie said we need an airport commission more than we need a harbor commission. _ We are not looking at a full blown harbor any more. Mayor Williams said a transportation comm. .could hasten Federal funds for a 4-lane Spur Hwy. Councilman Ackerly said a commission does very little regarding Federal funds, Administration does the grant writing. Mayor Williams said the idea was to increase the number to 9, 4 for airport and 4 for harbor, with one chairman. He has asked Administration to prepare an ordinance for an airport commission. Councilman Ackerly noted there are things,qthat need to be done this summer with the harbor commission. City Manager Brighton said over the past 7 years the airport has expanded itinerant parking, remodeled the terminal, expanded the apron, painted the runway, worked with the float plane basin, expanded and improved parking to an amount of $5-$6 Million. Why do we need a commission now? 1 Councilman Wise said we do not know the needs of the airport tenants, what action is being taken to fill up the lots, if sanding and cleaning is adequate, etc. We do not hear till there is a KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 14 problem. It is a $50 Million project. The taxiway was done because we were going to lose $400,000 in AIP moneys. Mayor Williams asked for a vote of Council regarding the preparation of an airport commission. VOTE (Passed): Yes: Wise, Ackerly, Bailie, McComsey, Measles No: Monf or Mayor Williams abstained. Airport Manager Ernst reported the safety zone project was submitted the same time as the float plane basin. It was not a last minute project. It was proposed if we could not get the basin done. Mayor Williams asked that an ad be placed in the newspaper asking for volunteers for the airport commission. f. Councilman Ackerly suggested the Airport Manager and Public Works Director be added to the agenda under reports. Council agreed to the suggestion. D-4 Clerk Clerk Whelan spoke. a. A telephone poll was conducted Jan. 2, 1987: Shall the Council award Ticket Counter Const. & f° Installation project, to 4-D Interiors for $3,899? Vote - 4 yes, 3 unable to reach. b. Council had requested the Clerk obtain an estimate of costs to place the entire agenda in the newspaper. For a 2 page agenda, the cost would be approximately $100 per notice. Mayor Williams suggested limiting it to 1) Persons Present Scheduled to be Heard and 2) Public Hearings. Councilman Ackerly suggested it be placed as a display item rather than a legal notice. Council agreed to the suggestions. Polly Crawford, Peninsula Clarion, said there is an article on the agenda before every Council meeting that includes public hearings. C. Councilwoman Bailie asked about the suggested ad regarding the accomplishments of the year. Clerk Whelan replied she and City Manager Brighton were to work on it after the 1st of the year. Mr. Brighton said the Peninsula Clarion had an article on all projects done in the past year. Councilwoman Monfor said she had thought it would be mailed to the citizens, using the Capital Improvement Projects list. Councilwoman Bailie said we have done many things right, we provide more services at a low mill ram. It should be stated. D-3 (Contd): Mayor Williams noted Friendship Air will have their inaugural flight Jan. 16. D-5 Finance Director None D-6 Planning & Zoning KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 15 None D-7 Harbor Commission None D-8 Recreation Commission None D-9 Library Commission Chairman Swarner spoke. a. She has been re-elected chairman. b. She thanked Council for changing the agenda and thought Administration reports should stay at the end. C. The library has 609 volunteers in December, 3 full time people. 300 people attended the open house. She thanked Council for the $100 donation. d. The Friday Night Flicks have started. E. MINUTES E-1 Regular Meeting, Dec. 17, 1986 Councilman McComsey asked that page 3, item C-3, the numbers be changed to $1,700 for 1985 and $874 for 1986. Council approved the minutes as amended. F. CORRESPONDENCE None G. OLD BUSINESS None H. NEW BUSINESS H-1 Balls to be Paid, Bills to be Ratified MOTION: Councilman Measles moved, seconded by Councilwoman Bailie, to approve the bills as submitted. Motion passed by unanimous consent. H-2 Requisitions Exceeding $1,000 Mayor Williams noted the PO to Ross Services for $5,400, snow plowing, distributed this date. MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, to approve the requisitions with the additional $5,400. Motion passed by unanimous consent. H-3 Ord. 1183-87 - Finding City -Owned Land Not Required for Public Purpose - Section 36 KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 16 MOTION: Councilman Ackerly moved, seconded by Councilwoman Monfor, to introduce the ordinance. Councilman Wise had a concern with Section 2, it states auction will be with no right of refusal. Mr. Brown should be granted 1st right of refusal. MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, that the appropriate site be guaranteed that 1st right of refusal be granted. Atty. Rogers explained Section 2 refers to 5% real estate commission. Councilman Wise asked if Mr. Brown had 1st right of refusal. Atty. Rogers replied, he has no preference till he has made a good faith deposit after the land is available. MOTION, Withdraw: Councilman Wise, with consent of second, withdrew his motion. VOTE: Motion passed by unanimous consent. H-4 Ord. 1184-87 - Amend. KMC Title 21 - Providing for $500,000 Limit Policy Insurance Requirement Approved by Consent Agenda. H-5 Disc. - HEA Letter - Bradley Lake Project/Railbelt Energy Fund Mayor Williams asked if Council wanted a resolution prepared. He is not sure if we should pass a resolution till we know what the State Administration will do. It will cost the State $91 Million to abandon, $356 Million to complete. Councilman Ackerly asked that it be on the Feb. 4 agenda. Mayor Williams asked that Kent Wick be asked to speak. City Manager Brighton noted HEA had a meeting this date, he will distribute the material to Council. Council agreed to the suggestions. H-6 Assign of Lease - D&D Enterprises to Galaxy, Inc. - Travel Agency, Airport MOTION: Councilman Ackerly moved, seconded by Councilwoman Bailie, for approval based on Atty. Rogers' contingency in his memo. Motion passed by unanimous consent. H-7 Disc. - 87-88 Capital Improvement Project Priority List Public Works Director Kornelis reviewed. The changes are from the work session of Dec. 29. He had suggestions as stated in his memo. Councilman Ackerly asked if the picture could be changed to show a project using State funds. Mr. Kornelis explained it has to be KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 17 engraved, but it could be done next year. Mayor Williams noted the golf course will be increased to 18 holes and will increase traffic on Candlelight. Last year Public Works did dust control, it did not work. The cost was such that it would be paved in 4 years at the cost. He asked to be on record regarding paving Candlelight. Councilwoman Bailie suggested putting signs on Tinker and Lawton directing to the golf course. Mr. Kornelis replied it has been started. MOTION: Councilman Wise moved, seconded by Councilwoman Bailie, to adopt the City of Kenai's 1987-88 Capital Improvement Project List Request For State Grants as amended and shown on Attachment A, attached hereto. Motion passed by unanimous consent. H-8 Rescission of Lease - Blue Mountain Ventures, FBO S/D MOTION: Councilman Ackerly moved, seconded by Councilwoman Monfor, for approval provided they are current in their lease. Land Specialist Gerstlauer explained, they have leased the building that AAI Freight was in. They are from Anchorage. The lease if for 5 lots that are not developed. They are asking to rescind on those 5. It is a 99 year lease, beginning in 1980. City Manager Brighton explained, from a legal standpoint, the City can hold them to the lease till they can make it profitable or rescind and make 3 lots available for development. They have said they have no ideas or projects. Councilwoman Monfor said at one time Ski Mo had an area for sale when he had a lease. Can they do the same thing if they found some one with an idea? Answer - yes. Councilman McComsey asked if there were other lots available. Mrs. Gerstlauer replied, at the other end. Atty. Rogers noted they would be willing to z lease if anyone wanted them. Councilman Wise said it does not benefit the City to bludgeon business that has suffered from the economy or poor planning. Councilman McComsey asked if each lot was a separate lease. Mrs. Gerstlauer replied they would be in default of all if they stopped paying on any. They want a partial rescission. Councilwoman Bailie suggested putting in the lease that if there was any reason for rescission there would be a penalty. Atty. Rogers replied, it could be done but he suggested not putting it in the lease because the City may not want to enforce it. By not putting it in the lease, we keep our options open. Councilwoman Monfor said she did not want people to think that it is easy to rescind. *nce a lease is rescinded, can people come back if the economy picks up? Atty. Rogers replied once they rescind a lease they have no grandfather rights. Mayor Williams suggested Administration enter into negotiations to see what it is worth to them. He suggested a 6 months or one year penalty. Motion passed by unanimous consent. H-9 Float Plane Facility KENAI CITY COUNCIL JANUARY 7, 1987 PAGE 18 Councilwoman Bailie expressed concern regarding seeding, etc. $124,000 is high. She suggested doing this in-house. Is the $196,000 for inspection, etc. included in the basic bid? Public Works Director Kornelis explained, there was a mistake in the water. That is a normal price. Headworks is control of water. Councilman Ackerly said he objected to the $196,000 inspection fee. He suggested doing a design -build. Would FAA accept it? Mr. Kornelis replied, FAA has already accepted. Atty. Rogers said a design build is professional services. This was done in Juneau and stopped in the courts. Mr. Kornelis added, a design build is going out to bid and saying what we want. This is already out.. Also, Mr. Nelson is using the maximum amount. The $196,000 is from the original proposal, we are not locked into this. Councilwoman Bailie asked if it is difficult to have someone else come in with some other engineer. Mr. Kornelis replied it is not usually done. Councilwoman Bailie suggested we delete anything in reference to seeding. Councilwoman Monfor wondered how we could do this after the budget discussion. Councilman Wise said the time for that is when we go for bid. The seeding could be an additive alternate. Councilman Ackerly asked why there were 2 top soil prices. Mr. Kornelis replied, there is a difference in hauling distance. Council took no action. ADJOURNMENT: Meeting adjourned at 11:55 PM. vf' Janet Whelan City Clerk ft MARK 0. HATFIELD, OREGON, CHAIRMAN TED STEVENS, ALASKA JOHN C. STENNIS, MISSISSIPPI LOWELL P. WEICKER, JR., CONNECTICUT ROBERT C. BYRD, WEST VIRGINIA JAMES A. McCLURE, IDAHO WILLIAM PROXMIRE, WISCONSIN PAUL LAXALT, NEVADA DANIEL K. INOUYE, HAWAII JAKE GARN, UTAH ERNEST F. HOLLINGS, SOUTH CAROLINA THAD COCHRAN. MISSISSIPPI LAWTON CHILES, FLORIDA :RK ANDREWS. NORTH DAKOTA J. BENNETT JOHNSTON, LOUISIANA jMES ABDNOR, SOUTH DAKOTA QUENTIN N. BURDICK, NORTH DAKOTA jBERT W. KASTEN, JR., WISCONSIN PATRICK J. LEAHY, VERMONT ALFONSE M. D"AMATO, NEW YORK JIM SASSER, TENNESSEE MACK MATTINGLY, GEORGIA DENNIS DECONCINI, ARIZONA WARREN RUDMAN, NEW HAMPSHIRE DALE BUMPERS, ARKANSAS ARLEN SPECTER, PENNSYLVANIA FRANK R. LAUTENBERG, NEW JERSEY PETE V. DOMENICI, NEW MEXICO TOM HARKIN, IOWA J. KEITH KENNEDY, STAFF DIRECTOR FRANCIS J. SULLIVAN, MINORITY STAFF DIRECTOR lunited 5tates senate COMMITTEE ON APPROPRIATIONS WASHINGTON, DC 20510 Janet Whelan, City Clerk City of Kenai 210 Fidalgo Kenai, AK 99611 Dear Janet: Thanks for sending me a copy of the Kenai City Council's resolution supporting Cook Inlet as the terminus of the Yukon -Pacific Natural Gas pipeline. I appreciate your taking the time to inform me of the Council's position and I will keep it in mind as work on this critical issue continues. With best wishes, Cordially, TED STE ONS r amooft a EARL H. BEISTLINE Mine Consultant P.O. Box 80148 Fairbanks, Alaska 99708 January 6, 1987 The Honorable John Williams Mayor City of Kenai 210 Fidalgo Kenai, Alaska 99611 Dear John: (907) 479-6240 Thank you for your Memorandum of December 23, 1986 and the Resolution 86-120 of the Kenai City Council. I congratulate you and the City Council for your positive stand in opening the ANWR Coastal Plain for Oil and Gas Development. You who are in the center of oil activities have realistic thoughts and realize the impor- tance of resource development in Alaska. I have written a letter to the Interior Department supporting Interior's stand for opening ANWR to oil and gas exploration and development. Sincerely, �r. Earl H. Beistline EHB / j c i 40 January 12, 1987 1 r L � The.Honorable Tom Wagoner, Mayor City of Kenai 210 Fidalgo Kenai, AK 99611 Dear Mayor Wagoner: Please find enclosed a resolution passed by the Kodiak City .Council. The resolution was sent, together with a strongly - worded letter, to oppose the granting of the trade name "Alaskan Seafood Company" to a Chandler, Arizona firm marketing products not produced in Alaska. We feel that such a misnomer misleads and deludes the consumer, unethically trades on the Alaska image, and jeopardizes the seafood industry in Alaska. We request that you consider a similar resolution, discouraging such practices at this time and in the future. We have also enclosed our cover letter for any assistance it might be.... Thanks for your consideration. Respectfully, CITY OF K PIAK Samuel Co Gesko, r City Manager SCG/keh enclosures POST OFFICE BOX 1397, VODIAK , ALMA 99615 PHONE (907) 486-3994 l Enclosures left o T ut of 1/12/87 letter 1 '4 CITY OF KODIAK'�`� RESOLUTION NUMBER 05-87 1 T - 1 !1 y A RESOLUTION OF THE COUNCILF THE ! O CITY OF KODIAK OPPOSING] RECORDATION OF TRADE NAME "ALASKAN SEAFOOD COMPANY" 1 WHEREAS the seafood l ood resources and the developing seafood: industry of the State of Alaska are vital to the State's over all :economy, especially in view of declining oil revenues; and WHEREAS, since 1980 the State of Alaska has expended � significant financial resources through the Alaska Seafood. Marketing Institute to successfully promote Alaskan seafood 'products in U.S. and international markets; and WHEREAS, consumers are entitled to expect products labeled in,, any form suggesting "Alaskan Seafood" to be, in fact; seafood of 1 Alaskan origin; and - �r WHEREAS, appearing in Volume 51 No, 228 of 'the Federal Register, dated Wednesday, November 26, 1986, is the announcement� of an applicant for recordation of Trade Name "Alaskan Seafood, Company" of Chandler, Arizona, which applicant proposes to use said trade name in connection with fresh -frozen seafood - manufactured in Mexico and the U.S., } NOW, THEREFORE, BE IT RESOLVED that the Council of the City �of Kodiak, Alaska, joins the Kodiak Island Borough Assembly in' opposition to the recordation of the trade name "Alaskan Seafoodi Company' to the Arizona Corporation in connection with Mexican manufactured seafood products. BE IT FURTHER RESOLVED that the Kodiak City Council strongly urgesthe Commissioner'of Customs, and the Entry, Licensing, and; Restricted Merchandise Branch to reject the application of any,' corporation proposing use of a trade name suggesting Alaskan, Seafood products, unless such products 'are, in fact, of Alaskan origin and U.S. manufacture. .1 PASSED AND APPROVED this day o 1987. t CITY OF KODIAK c i ATTEST: MAYOR CITY CLERI{v A O <ela January 12, 1987 Mr. William Von Raab, Commissioner United States Customs Service 1021 Constitution Avenue, N.W. Washington, DC 20229 Dear Commissioner Von Raab: The Federal Register for November 26, 1986 (Vol. 51 #228) carried.. an announcement of an -application to record the trade name ' "Alaskan Seafood Company" of Chandler, Arizona. The application proposes to use that trade name in connection with fresh -frozen seafood manufactured in Mexico and the United States. As indicated by the attached resolution, the City of Kodiak Alaska strongly objects to the allowance of that trade name for a product which will not originate or be manufactured in Alaska. Further, we object to the recording of any trade name now, or in the future, which would include the word "Alaska" or "Alaskan" for any seafood product which does not originate in Alaska. Fish consumption is on the increase in the U.S.A, and rightfully since fish � g tfully Sol ish has been proven to be nutritious, healthful, safe --and actually deters or retards the formation of cholesterol. But such an increase in consumption is not accidental or coincidental. Much of it has resulted from recent scientific research, but much also has resulted from extensive financial expenditures by the State of Alaska promoting Ala products in �- seafood 9 Alaskan seafood p �.re U. S .A. Alaskan seafood resources and the developing seafood industry of the State of Alaska are vital to the State's overall economy. Several years ago there was a. recall of canned Alaskan seafood and the repercussions of that recall were --and still are --felt significantly. Those who buy a product' suggesting "Alaskan seafood" are entitled to a product of Alaskan origin. Should a Product be recalled bearing -a trade name "Alaska" or "Alaskan" which, in fact, did not originate in Alaska, the impact of that recall would nevertheless be felt strongly in the Alaskan fishing and fish -processing industry. Hence, we cannot allow any company P Y POST OFFICE BOX 1397. WODIR . AI W 99615 PHONE (907) 486-3994 Commissioner William Von Raab January 12, 1987 Page 2 dealing in products which do not originate in Alaska to trade on the "Alaskan" image. The Alaskan image is one of � clean cold water, clean air, shining mountains and untouched wilderness --all of which imply products which are uncontaminated b high gh populations and/or commerc ial and industrial activity. We urge that the application of the Chandler, Arizona firm for the trade name "Alaskan Seafood Company" be denied. We urge further that any future, similar attemptg by any company to exploit the words "Alaska" or "Alaskan" be disallowed when the product produced is not caught, processed or produced in an manner in Alaska or Alaskan waters, p y We Y respectfully request, if possible, that an future applications for seafood products which contain the words "Alaska" or "Alaskan" be investigated and verified for origin of the product, or that the" State of ' Alaska , Department of Commerce and Economic Development, and the Alaska Seafood Marketing Institute be informed of such applications n pp bons before action is taken to consider them for approval. Respectfully, CITY OF KODIAK i�Samue C.sko, �rCity Managr BY DIRECTION SCG/keh cc: The Honorable Steve, Cowper, Governor, State of Alaska The Honorable Frank H.- Murkowski, U. S. Senator The Honorable Ted Stevens, U. S. Senator The Honorable Donald E. Young, U. S. House of Rep. The Honorable Fred Zharoff, Senator, State of Alaska The Honorable Clifford Davidson, Alaska House of Rep, P Tony Smith, Commissioner, Alaska Dept. of Commerce Kodiak Area Native Association, OEDP Committee rss. Merry Tuten, Exec. Dir., Alaska Seafood Marketing Inst. STEVE COWPER ��•:, GOVERNOR �vf( STATE O F ALAS SA OFFICE OF THE GOVERNOR eJU NEAU January 13, 1987 The Honorable John J. Williams Mayor of the City of Kenai 210 Fidalgo Kenai, AK 99611 Dear Mayor Williams: Thank you for sending me a copy of the City of Kenai's Resolution 86-122 supporting Cook Inlet as the terminus of the Yukon -Pacific Natural Gas Pipeline. As noted in your resolution, there are a number of very important issues to the state that must be considered with regard to the Trans -Alaska Gas System Pipeline. Yukon - Pacific Corporation has applied for a federal right-of-way that would place the marine terminus at Valdez. The Bureau of Land Management (BLM) has tentatively identified Cook Inlet as a possible alternative in their preliminary envi- ronmental impact statement (EIS) investigation. The state will be reviewing the EIS to ensure that both the Valdez and Cook Inlet alternatives are given the same level of assess- ment and consideration should BLM decide that Cook Inlet is a feasible alternative. I appreciate your interest in this project and believe the City of Kenai's resolution will help to draw the attention of both the BLM and Yukon -Pacific Corporation to the possi- ble benefits of a pipeline route to Cook Inlet. Since y teve Cowper Governor i PAYMENTS OVER $1,000.00 11HICIi NEED COUNCIL APPROVAL OR RATIFICATION 1-21-37 VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT PO# FOR APPROVAL: Homer Electric Relocate Electric Lines CP-Marathon Rd. Construction 159079.35 FOR RATIFICATION: Walters & Olson Misc. City Insurance Non -Departmental Insurance 122591.00 PERS Dec. Retirement W/H Various Retirement 329326.93 Union Oil Co. Nov. Natural Gas Central Treasury In Trust 122590.93 Marathon Oil Co. Nov. Natural Gas Central Treasury In Trust 122628.49 Telephone Utilities Dec. Phone Service Various Communications 22472.72 Kenai Peninsula Borough 4th Quarter Sales Tax Various Sales Tax 10,918.00 Rainier National Bank Interest 1980 G.O. Bond Interest 139758.75 Enstar Natural Bas Dec. Natural Gas Usage Various Utilities 32407.88 Homer Electric Dec. Electricity Usage Various Utilities 329565.56 National Bank of Alaska Treasury Bill 1/8/87 Central Treasury Central Treasury 21,3385,735.57 5.682% Int. Treasury Bill 1/15/87 Central Treasury Central Treasury 293009913.76 5.586% Int. REQUISITIONS OVER $12000.00 14HICH NEED COUNCIL APPROVAL 1-21-87 VENDOR DESCRIPTION DEPARTMENT Frykholm & Shaafsma Appraisal The Traffic Institute CPC Engineering, Corp. Appraisals of leased lands for Airport Land annual renegotiations Room & Board for Officer to Police attend Police Staff School ($1,200 to be reimbursed by AHSPA) . Roller Assembly for Bearing STP Carriage ACCOUNT AMOUNT Professional Services 85,500.00 Transportation 12450.00 Repair & Maint. Supplies 29152.00 R.1 y Suggested by: Administration CITY OF KENAI ORDINANCE NO, 1186-87 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE 1986-87 "SENIOR EMPLOYMENT" FUND BY $50*00* WHEREAS, the State of Alaska has increased the City of Kenai Senior Employment Grant in the amount of fifty dollars ($50,00) to enable a new employee of the program to obtain a physical examination, which is required by the State. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Senior Employment Increase Estimated Revenues State Grant $50*00 Increase Appropriations Miscellaneous $50.00 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of February, 1987, JOHN J. WILLIAMS, MAYOR ATTEST: Janet Whelan, City Clerk First Reading: January 21, 1987 Second Reading: February 4, 1987 Effective Date: February 4, 1987 Approved by Finance: Cqa (1/12/87) l � 1 1 1 1 Suggested by: Administration CITY OF KENAI ORDINANCE NO, 1187-87 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND BY $3,383 FOR LIBRARY BOOKS. WHEREAS, the State of Alaska has awarded the City of Kenai a Library Assistance Grant in the amount of $2,500; and, WHEREAS, the City has received $883 in library donations. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: General Fund Increase Estimated Revenues: State Library Grant $29500 Library Donations 883 32383 Increase Appropriations: Library - Books 3 383 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of February, 1987, JOHN J. WILLIAMS, MAYOR ATTEST: Janet Whelan, City Clerk First Reading: January 21, 1987 Second Reading: February 4, 1987 Effective Date: February 4, 1987 Approved by Finance: P �Q (1/13/87) M t 1 Ar57" Suggested by: Planning & Zoning Commission CITY OF KENAI ORDINANCE NO. 1188-87 ` AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE KENAI MUNICIPAL CODE TITLE 14 WITH THE ADDITION OF SECTION 14.20.185 ENTITLED "ENCROACHMENT PERMITS". WHEREAS, the Planning & Zoning Commission had been given certain duties which assist the public in matters pertaining to lands, and WHEREAS, during the course of reviewing and attempting to meet the needs of the community, it has been found by this body that there is an area that is lacking and is a problem of sufficient magnitude to require a new section added to the existing zoning code, and WHEREAS, the Commission has held work sessions and public hearings to determine if this section will meet the needs of the community, and WHEREAS, as a result of these public meetings the Commission feels the draft "Exhibit A" before the Council and attached to this ordinance, now fulfills the needs of the Commission and Community. • NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: 0 /1 /Y T 7 -% Y1 1 . The Kenai Municipal Code Title 14 be amended by adding Section 14.20.185 entitled "Encroachment Permits" as defined in the attached "Exhibit All. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 4th day of February, 1987. ATTEST: Janet Whelan, City Clerk John J. Williams, Mayor First Reading: January 21, 1987 Second Reading: February 4, 1987 Effective Date: March 4, 1987 i i i Chapter 14.20.185 ENCROACENF.NT PERMITS 14.20.185 (a) Definitions. Encroachments shall be considered as any object or structure above or below ground belonging to a private owner other than the municipality which has been constructed or located across property lines or setbacks, exlusive of rights -of -way. (b) Intent: An encroachment permit is the relaxation of the development requirements of this chapter in existing cases and which do not fall under Section 14.20.050, nonconforming uses and which satisfy the requirements of a financial institution. An encroachment permit is not intended for uses within Federal, State, or City rights -of -way, or utility easements. (c) Permit Application: An application for an encroachment permit is filed in writing with the [BUILDING OFFICIAL OR] Planning Department and signed by the owner of the property concerned or representative of the owner. (1) The application shall contain the following: [i] A legal description of the property involved; [ii] Plans showing the location of all existing and proposed buildings, objects, rights -of -way or easements, elevations, and any data pertinent to the application. (d) Review Criteria: The [BUILDING OFFICIAL OR] Planning Department shall submit the application to the Planning Commission for review and public hearing. The Planning Commission shall establish a finding that all of the conditions have been found to exist as a prerequisite to issuance of an encroachment permit. (1) The conditions are pre-existing and shall not be based upon other nonconforming land uses or structures within the land use or zoning district. (2) The granting of the encroachment permit shall not authorize a use that is not a permitted principal use in the zoning district in which the property is located. (3) (e) Public Hearing: The public hearing and notification procedure for an encroachment permit application shall be accomplished in accordance with the requirements of this chapter. (c) Unauthorized Encroachments. Unauthorized encroachments shall be subject to immediate removal by the owner upon being given notice by the City. Notice shall consist of a written letter, sent by certified mail return reciept requested, or by personal service, explaining the violation and allowing twenty days to remove the encroachment. (d) Expiration of Permit: Permits shall expire automatically upon termination or interruption of the use and, in addition, in the case of a building, structure, or object, or damage to the building, structure, or object which makes it unecomonic to repair the building, structure, or object, or the expiration of the useful life of the building, structure, or object, whichever comes first. _(e) Right to Appeal: Any revocation, suspension, or denial of an encroachment permit by the [BUILDING OFFICIAL OR THE] Planning Depart- ment may be appealed to the City Council by filing a written notice of appeal with the clerk and stating the grounds for such appeal. The appeal notice must be filed within thirty days after the effective date of the revocation, suspension, or denial from which the appeal is taken. All notices of appeal must comply with Section 14.20.290. (f) Public Hearing: The public hearing and notification procedure for an encroachment permit shll application shall be accomplished in accordance with the requirements of this chapter. CITY OF KENAI ;,/,.7 1 "Od (?af". 44"4a w' 210 FIDALGO KENAI, ALASKA 89611 TELEPHONE 283 - 7535 MEMORANDUM TO: Mayor Williams and Council Members FROM: Janet Loper, Planning Specialist SUBJECT: Ordinance No. 1188-87 Pertaining to Encroachment Permits DATE: January 15, 1987 At the present time, a Variance to the zoning code is used for irregularities prior to construction. However, if there is a pre-existing condition which does not meet the zoning code, a property owner is at a loss to proceed. (Usually his desire is to buy a home or sell his home.) If his home encroaches on to the adjacent property or into a setback he must replat which takes about 3 months minimum and many steps through at least two agencies. The Encroachment Permit is a vehicle by which the property owner can present this document to the local financial institution and Borough which says, in effect, that the City of Kenai has reviewed his problem and approved this permit. The property owner will still have to replat, however, his time has been cut down to three weeks at the most, depending upon submittal date and public hearing time, allowing him to move ahead with his sale. The platting can be accomplished at any point thereafter. 1 1 1 1 1 1 Suggested by: Planning & Zoning Commission CITY OF KENAI ORDINANCE NO. 1189-87 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE KENAI MUNICIPAL CODE SECTION 14.25.010 AND 14.25.020 PERTAINING TO THE LANDSCAPING/SITE PLAN ORDINANCE. WHEREAS, during the course of reviewing and attempting to meet the needs of developers, it has been found by the Landscaping/Site Plan Review Board that there is an area of the code that is lacking, and WHEREAS, the Board has worked towards drafting revisions which would clarify the meaning and intent of the ordinance and sent them on to the Planning Commission according to procedures described by the Code, and WHEREAS, the Commission has held work sessions and public hearings to determine if this section will meet the needs of the community, and WHEREAS, as a result of these public meetings the Commission feels the draft before the Council and attached to this ordinance, now fulfills the needs of the Board, Commission and Communit . Y _ NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1: A portion of KMC14.25.010 be amended to read: "The general purpose of landscaping is to visually enhance the city's appearance and reduce erosion and storm runoff. (Ord 1094)" A portion of KMC14.25.020 be amended to read: " 'Commercial development' shall be defined as any improvements requiring a building permit for new construction or any improvements of $10,000 or more located on properties ....." as defined in the attached "Exhibit All. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 4th day of February, 1987. ATTEST: Janet Whelan, City Clerk John J. Williams, Mayor First Reading: January 21, 1987 Second Reading: February 4, 1987 Effective Date: March 4, 1987 ExA / /• i r , , r Chapter 14.25 LANDSCAPING REGULATIONS Sections: 14.25,010 Intent 14,25,020 Application 14.25,030 Landscapinq 14,259035 Landscapinq 14.25,040 Landscapinq 14.25,050 Landscapinq_ 14.25,060 Completion 14.259080 Expiration 14.25.090 Penalties 14.25,100 Definition - 14.25-14.25.035 Plan - Submittal Requirements Site Plan Plan - Performance Criteria Review Board Landscapina 14.25.010 Intent: It is the intent of this section to provide for Landscapinq and/or the retention of natural vegetation in conjunction with commercial and industrial development within the City of Kenai. The general purpose of landscaping is to visually enhance the city's appearance, (MAINTAIN OR INCREASE PROPERTY VALUES.1 and reduce erosion and storm runoff. (Ord 1094) 14.25.020 Application: This section shall apply to all commercial and industrial development within the City of Kenai. "Commercial development" shall be defined as any improvements requirinq a buildinq permit for new construction or any improvements of $10,000 or more located on properties within the Central Commercial (CC), General Commercial MG), Heavy Industrial (IH) and Liqht Industrial (IL) Zoninq districts. (Ord 1094) 14.25.030 Landscapinq Plan - Submittal Requirements: Three (3) copies of the landscaping plan shall be submitted for approval to the Planninq and Zoninq Specialist prior to the issuance of --a building_ permit. One copy of the approved plans shall be returned to the applicant: one copy filed; and the third copy showinq action taken, filed with the Buildinq Inspector. The landscap_inq plan shall be prepared at a minimum scale of 1"= 20': and shall include the followinq information: (a) Common and scientific name of the planting materials to be used in the project 04 (b) Typical plantinq details (c) Location of all plantinq areas and relationship to buildinq_s. parking areas, and driveways (d) Identification and location of existinq_ vegetation to be retained (e) Identification and location of non-livinq landscapinq materials to be used M Identification of on -site snow storage areas W Drainage patterns T CITY OF KENAI �-. "od 1A.71 v� 41ai4a it 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283-7535 MEMORANDUM TO: Mayor Williams and Council Members FROM: Janet Loper, Planning Specialist SUBJECT: Amend KMC14.25.010 and 14.25.020 Pertaining to Landscaping/ Site Plan Requirements DATE: January 15, 1987 The attached copy of the ordinance with their revisions comes to you from the Planning Comlmission and the Landscaping/Site Plan Review Board who are requesting these changes after having worked with the ordinance felt these changes necessary. "14.25.010 Intent:" The Board feels -that dealing with issues regarding property values should lie with the attorney rather than with the Board. The Board recognized that no development in a situation with adjacent land uses could avoid lower property values to one of the lots. 1114.25.020 Application:" adds verbiage to clarify intent. Presently, the wording of the ordinance has been interpreted to mean that only construction of $10,000 or more need appear before the Board. This was not the intent of Council or the Board. By adding the words, "new" and "or any improvements". The sentence now reads "Commercial development shall be defined as any improvements requiring a building permit for new construction or any improvements of $10,000 or more located on properties within ......." and meets the intent of the ordinance. 5. Local Officers (must be current, bona fide members in good standing) NAME TITLE 4B. RENEWAL APPLICATION Most Recent 8 6 — 318 Year Permit Number.. Issued 1986 3. Organized as: (Check the appropriate box.) The following must be submitted with this application. X1 Corporation ❑ Association ❑ Partnership ❑ Current Alaska membership list must have at lea st ast ❑ Firm ❑ Company 25 members); ❑ Copy of amendments to bylaws, if any. DAYTIME PHONE NUMBER WALTER KOERBER EXALTED RULER 283-3674 MAHLON MORP.IS SECRETARY 776-5172 KEN RICE TREASURER 776-8163 PAUL MORRISON TRUS-TEE 776-8121 JIM HARMON Return To: Alaska Department of Revenue Public Services Division Compliance Section Games of Chance and Contests of Skill 3p1111 W. 8th Street, Room 108 VW%1- PEMMIT APPLICATION.:1, Juneau, Alaska 99801 r000" :, FEES: $20.00 due with application; 1% of entire net proceeds due with Annual Financial Statement. :. Please read the instructions before completing this applicatioi � - y 4A. NEW APPLICATION..�� #- 1. Name of Organization KENAI ELKS LODGE #2425 Number of Years Organizadiort ,, �r,; Mailing Address Has Been in Existence in`Af;aka' 17 YEARS . P . 0, B 0 X 666 The following must be submitted with this application: City, State, Zip Code KENAI A LA S KA 9 9 6 1 1 ❑ Current Alaska membershiplist (must have at least , 25 members); 2. Type of Organization. (Check the appropriate box. Refer to ❑ Certified true copy of articles of incorporation or, if not AS 05.15.210 and 15 AAC 105.010,100 for definitions.) incorporated, copy of bylaws and national and state El Municipality Munici alit ❑ Police or Fire Department charters; - ❑ ❑ Civic or Service and Company Copy of IRS certificate of tax exemption issued to non - El ❑ Religious ❑ Dog Mushers' Association profit if applicable. Name and MailingAddress of National tonal Organization (if applicable) ❑ Charitable P01M al Fraternal ❑ Non-profit Trade ❑ Educational Association ❑ Veterans El Fishing Derby Association ❑ Labor ❑ Outboard Motor Association 776-3121 6. Types of Games to be Conducted. List types of games by common name if other than those listed. See AS.05.1 15 AAC 105.110-.160. 5.i 80, AS.05.15.210; TRUSTEE KI a. Bingo (NOTE: Bingo games must not be held ( b. Raffles & Lotteries ❑ f. Fish Derbies s ❑ j. Goose Classic more than 9 occasions in a calendar month C C. Pull -tabs ❑ g. Contests of Skill ❑ k. S almon Classic with no more than 35 ❑ d. Ice Classics ❑ h. Rain Clas i s cs games per session or series of games.) ❑ e. Dog Mushers' Contests ❑ i. Mercury Classic THE SPACE BELOW IS RESERVED FOR DEPARTMENT OF REVENUE USE ONLY. Date of Receipt Permit Number: Date of Issue: Financial Statement: New ❑ Yes ❑ No 0 04•sa3 (louse NOTICE: GAMING ACTIVITIES MAY NOT BE CONDUCTED UNTIL THE PER MIT IS ISSUED. DEDICATION OF NET PROCEEDS The entire proceeds of the games shall be devoted to and disbursed assistance, charitable functions and dinners for the community, etc. in accordance with 15 AAC 105.280 Use of Dedicated Net Proceeds. The qualifications to receive the charitable donations must include (a) The dedicated net proceeds given to a qualified organization a requirement that all members of the organization within the com- may not be used to a an pay y person for services rendered in connec- tion with the activities from which the funds were derived. Detailed munity may qualify and receive the assistance. These payments ma) not be devoted to organizational parties, dinners or benefits, picnics, records of all disbursements must be kept for later audit review. or social functions limited to members and their families. These must be kept with the other accounting records for a period of (c) Permittees may not erect, buy or lease buildings or land for. three years. their organization with the net proceeds unless these. buildings are:.:.. - (b) Disbursements for the promotion of the welfare and well-being (1) used exclusively for educational, civic. public, or religious pur- of the membership means that a member may receive assistance in poses (such as hospitals, churches, schools, government buildings, the form of various charitable donations, which have been approved or community centers); or by the organization's board of directors. Charitable projects which an (2) turned over to an appropriate nonprofit organization which organization may sponsor include education grants, training assistance or job counseling, food baskets, medical or health-care qualifies as a tax-exempt organization under the Internal Revenue Code, Section 501(C)(3), or to a local, state or federal government. 7. In the space below, state the specific purposes for which the entire net proceeds are to be devoted and in what manner. CHARITY, SCHOLARSHIPS, YOUTH ACTIVITIES, SPECIAL OLYMPICS, DRUG AWARENESS PROGRAMS AND COMMUNITY SERVICE. 8. Estimated Yearly Gross Receipts $ 65,000 - 75 000 9A. Person in charge of games (Must be a bona fide and active member of permittee organization) NOTE:. The member in charge shall be present during the conduct of each of the specified activities stated on the permit. An alternate may be designated to conduct the authorized activities during the absence of the member in charge. NAME MAILING ADDRESS DAYTIME PHONE NUMBER (Primary) ERNEST KNACKSTEDT P.0, BOX 532 KENAI AK 9 611 -2 - 9 83 7624 (Alternate) TED MCGIRR P.O. BOX 206 KENAI AK 99611 776-8121 9B. If a commercial operator is employed to conduct gaming activities on your behalf, please provide the name of the premises the name of the person operating the premises; the street address and daytime telephone number of the premises. NAME OF PREMISES STREETADDRESS DAYTIME PHONE NUMBER NAM E OF OPERATOR: 10. Has either person listed in 9A or 98 above ever been convicted of a felony or gambling misdemeanor? ❑ Yes (Z No 11. Will either person listed in 9A or 9B above receive compensation of any kind from the receipts of the ❑ Yes (2No gaming activities? 12. What is the HOURLY wage to be paid to employees? NONE 13. Signature of Two Officers Required We certifyunder penalty f p y o perjury that to the best of our knowledge and belief all the information on this application, Including any at- tachments, is true, correct and complete. We understand that any false statement made on this application is punishable by law. We fur- ther certify that we have delivered two copies of this application to the nearest city or horntinh nffino ff%r ravinuo 2.--Z&A • ` B. C l 04-643 sack (10/86) rvvi 1160t: AN T r-HLZ)t J iAI tMtN I MAut UN I M 5 APPLICATION IS PUNISHABLE BY LAW. Raturn To: Alaska Department of Revenue Games of Chance and Contests of Skill -- Public Services Division Compliance Section PERMIT APPLICATION 1111 W. 8th Street, Room 108 Juneau, Alaska 99801 FEES: $20.00 due with application;1% of entire net proceeds due with Annual Financial Statement. Please read the instructions before completing this application. 1. Name of Organization 4A. NEW APPLICATION AMERICAN ASSOCIATION OF RETIRED PERSONS Number of Years, Organization Mailing Address Has Been in Existence in Alaska: BOX 310 The following must be submitted with this application: City, State, Zip Code l Current Alaska membership list (must have at least Kenai, Alaska 99611 25 members); 2. Type of Organization. (Check the appropriate box. Refer to ❑ Certified true copy of articles of incorporation or, if not AS 05.15.210 and 15 AAC 105.010-.100 for definitions.) incorporated, copy of bylaws and national and state ElMunicipality ❑ Police or Fire Department charters; ❑ Civic or Service and Company Copy of IRS certificate of tax exemption issued to non - ❑ El profit organizations, if applicable. ❑ Religious Dog Mushers' Association Name and Mailing Address of National ( Organization if applicable) g pp ) El Charitable ❑ Political AMERICAN ASSOCIATION OF RETIRED PERSONS ❑ Non -prof Trade El Fraternal P 215 LONG BEACH BOULEVARD Association ❑ LONG BEACH, CALIFORNIA 90801 Educational ❑ Fishing Derby Association ❑ 14B. Veterans El Outboard Motor RENEWAL APPLICATION ❑ Labor Association Most Recent Year Permit Number: 86-197 Issued 1986 3. Organized as: (Check the appropriate box.) The following must be submitted with this application: ❑ Corporation g Association ❑ Partnership Current Alaska membership list (must have at least ❑ Firm ❑ Company 25 members); ❑ Copy of amendments to bylaws, if any. NONE 5. Local Officers (must be current, bona fide members in good standing) NAME TITLE DAYTIME PHONE NUMBER Connie Burnard President 283-9307 Billie Huddleston Vice President 283-9443 Sylvia Johnson Secretary 283-4761 Mable Richter Treasuref 283-9007 6. Types of Games to be Conducted. List types of games by common name if other than those listed. See AS.05.15.180, AS.05.15.210; 15 AAC 105.110-.160. tea. Bingo (NOTE: Bingo 09 b. Raffles & Lotteries ❑ f. Fish Derbies ❑ j. Goose Classic games must not be held more than 9 occasions ❑ C. Pull -tabs in a calendar month ❑ g. Contests of Skill ❑ k. Salmon Classic with no more than 35 ❑ d. Ice Classics ❑ h. Rain Classics games per session or series of games.) ❑ e. Dog Mushers' Contests ❑ i. Mercury Classic THE SPACE BELOW IS RESERVED FOR DEPARTMENT OF REVENUE USE ONLY. Date of Receipt ,y Permit Number: _ Date of Issue: Financial Statement: ❑ Yes ❑ No New ❑ NOTICE: GAMING ACTIVITIES MAY NOT BE CONDUCTED UNTIL THE PERMIT 1S ISSUER DEDICATION OF NET PROCEEDS The entire proceeds of the games shall be devoted to and disbursed in accordance with 15 AAC 105.280 Use of Dedicated Net Proceeds. (a) The dedicated net proceeds given to a qualified organization may not be used to pay any person for services rendered in connec- tion with the activities from which the funds were derived. Detailed records of all disbursements must be kept for later audit review. These must be kept with the other accounting records for a period of three years. (b) Disbursements for the promotion of the welfare and well-being of the membership means that a member may receive assistance in the form of various charitable donations, which have been approved by the organization's board of directors. Charitable projects which an organization may sponsor include education grants, training assistance or job counseling, food baskets, medical or health-care assistance, charitable functions and dinners for the community, etc. The qualifications to receive the charitable donations must include a requirement that all members of the organization within the corn munity may qualify and receive the assistance. These payments m., not be devoted to organizational parties, dinners or benefits, picnics, or social functions limited to members and their families. (c) Permittees may not erect, buy or lease buildings or land for their organization with the net proceeds unless these buildings are: (1) used exclusively for educational, civic, public, or religious pur- poses (such as hospitals, churches, schools, government buildings, or community centers); or (2) turned over to an appropriate nonprofit organization which qualifies as a tax-exempt organization under the Internal Revenue Code, Section 501(C)(3), or to a local, state or federal government. i. in Lne space oeiow, state the specific purposes for which the entire net proceeds are to be devoted and in what manner. KENM SENIOR SERVICES ....... DONATION TOWARDS PROGRAM ACTIVITIES EXCHANGE STUDENTS...........CASH DONATION EACH YEAR ANDRESS FOUNDATION.......... YE&IMY DONATION 8. Estimated Yearly Gross Receipts $ 1'r 000.00 9A. Person in charge of games (Must be a bona fide and active member of permittee organization) NOTE: The member in charge shall be present during the conduct of each of the specified activities stated on the permit. An alternate may be designated to conduct the authorized activities during the absence of the member in charge. NAME MAILING ADDRESS DAYTIME PHONE NUMBER (Primary) Gene Sipperly 903 Cook 44"IB-4 Kenia,= Alaska 283-4146 (Alternate) lvia Johnson Box 152 Kenia, Alaska 283-4761 9B. If a commercial operator is employed to conduct gaming activities on your behalf, please provide the name of the remises the person operating the premises; the street address and daytime telephone number of the premises. p th e name of NAME OF PREMISES NAME OF OPERATOR: STREET ADDRESS DAYTIME PHONE NUMBER 10. Has either person listed in 9A or 9B above ever been convicted of a felony or gambling misdemeanor? ❑ Y es X7 No 11. Will either person listed in 9A or 98 above receive compensation of any kind from the receipts of the El Yes gaming activities? l No 12. What is the HOURLY wage to be paid to employees? None - 13. Signature of Two Officers Required We certify under penalty of perjury that to the best of our knowledge and belief all the information on this application, including any at- tachments, is true, correct and complete. We understand that any false statement made on this application spunishable b ther certify that we have delivered two copies of this application to the nearest city or borough office for review. yaw' We fur. �-6�3 Back (t0/86� NOTICE: ANY FALSE STATEMENT MADE ON THIS AP06CATION IS P SHABLE BY LAW. •� ' �i Return To: Alaska Department of Revenue Public Services Division Compliance Section 1111 W. 8th Street, Room 108 Juneau. Alaska 99801 AUTHORIZED GAMES OF CHANCE AND SKILL ANNUAL FINANCIAL STATEMENT AS 05.15.010 - 05.15.210 Name of Organization Permit Number AMMTCaN - A __q_qccTATToN _n7 21=T2m pr2.(:�Ms 86-197 Mailing Address (Street Address or P.O. Box, City, State, Zip Code) BOX 310 Ea T , AIASKA 99611 CALCULATION OF CURRENT YEAR NET PROCEEDS Calendar Year 19-36 DUE DATE: JANUARY 31 1. Total Gross Receipts (from page 2. Schedule A, line 10)................................................1 1 Is 450.71 2. Total Game Prizes Awarded (from page 2, Schedule B, line 10) ................. 12 1 $ 0 3. Total Game Related Expenses (from page 3, Schedule C, line 19) ............... I 3 I 0 4. Total Prizes and Expenses (Add lines 2 and 3)....................................................... 1 4 0 5. Current Year Net Proceeds Before 1 % Fee (Subtract line 4 from line 1; enter difference here) 450.71 6. 1 % of Net Proceeds Due with this Statement. (Multiply line 5 by .01; enter amount here) Do not send payment if less than $1.00. .............................................AMOUNT DUE ► 6 4.50 7. Current Year Net Proceeds After Deduction of 1 % Fee 446.21 (Subtract line 6 from line 5. Enter here and on line 9 below) ............................................ 7 RECONCILIATION OF FUNDS 8. Prior Year Balance of Games of Chance and Skill Account ................................. ... . 9. Current Year Net Proceeds (from line 7 above) ...................................................... 10. Total Net Proceeds Available for Disbursement (Add lines 8 and 9) ..................................... 11. Total Dedications of Net Proceeds (Enter total from page 7, Schedule D) Must be disbursed according to law. See AS 05.15.150 and 15 AAC 105.280 .............................. 12. Year -End Balance of Games of Chance and Skill Fund as of December 31. (Subtract line 11 from line 10; enter difference here) .................................................. 8 0 ,9 446.21 10 446.21 11 446.21 12 $ 0 I declare under penalty of unsworn falsification that I have examined this Financial Statement, including accompanying schedules and statements, and to the best of my knowledge and belief it is true, correct and complete. Office 's Signature and itle Date Member in Charge of ames Date /'.� �f � ✓ � ..�/CEO If a mmercial opera r was employed to conduct gaming activities on your behalf, please provide the name/of of he premi s, the name of the er- son operating the premises, and the street address of the premises. p Name and Address of Premises Name of Operator 04-647 (Rev. 10M) Page 1 (over) SCHEDULE A. TOTAL GROSS RECEIPTS Authorized Games of Chance and Skill List only that income received as a direct result of the Name of Organization games, or sale of gaming equipment. Membership dues, donations, food booth receipts, etc. can not be included in this report. 1. Gross receipts from Bingo ...................................... 2. Gross receipts from Raffles and Lotteries ......................... 2A. Gross receipts from Pull -tabs ................................... 3. Gross receipts from Monte Carlo ............................... . 4. Gross receipts from Contests of Skill ............................. 5. Gross receipts from Dog Mushers' Contests ...................... . 6. Gross receipts from Fish Derbies ................................ A. Receipts from ticket sales .................................... B. Receipts from sale of fish ..................................... 7. Gross receipts from Classics' .................................. . 8. Gross receipts from Rain Classics ................................ 9. Sale of game equipment and/or supplies ........................... 10. Total Gross Receipts (Add lines 1 -9; enter here and on page 1, line 1) ... Permit Number SCHEDULE B. GAME PRIZES AWARDED Authorized Games of Chance and Skill On lines 1-10 list the total cost to the permittee organization of all prizes awarded during the year. On line 11, list the total market value of these rizes, including the value of prizes donated in part or in whole. NOTE: Schedule E. Prize Listing must also be completed. p CASH AND SERVICES & GAME I STROUMENTS MERCHANDISE REAL ESTATE TROPHY17 TOTAL BY GAME 1. Bingo 1 2. Raffles and Lotteries 2 3. Pull Tabs 3 4. Monte Carlo 4 5. Contests of Skill 5 6. Dog Musher's Contests 6 7. Fish Derbies 04 7 8. Classics 8 9. Rain Classics 9 'Classics —Ice, Salmon, Goose, Mercury 10.. Enter amount of Total Prizes on page 1, line 2 ....... . . . . . . . . . . . . . . ........... . ..... . Total Market Value by E Category (Include donations) -sisn-nn 0-647 AS 11i1S5) TOTAL PRIZES Ada Imes 1.9 0 Page 2 r a .. .. r SCHEDULE C. GAME RELATED EXPENSES Authorized Games of Chance and Skill IMPORTANT: SEE PAGE 4 FOR INSTRUCTIONS. Enter only those expenses that are game related. Name of Organization Permit Number F Please see the back of this schedule for line -by-line instructions. A=CAN ASSOCIATION OFPgg6 §F 86-197 1. Computation of Proration Factor for Building Rent and Expenses (a) Total hours building and/or equip- (b) Total hours building and/or equip- (c) Proration factor to four decimal ment was used by permittee for ment was available for any use by places. games during the year. permittee this year. 1(a) _ 1(b) _ 1(c) 2. Building Rent. (Allowed only if building was not owned by permittee organization) (a) Total Rent Paid (b) Proration Factor (c) Allowable Building from line 1(c) Rent Expense 2(a) X 2(b) _ 2(c) $ 1 1 1 $ Building Expenses. (Allowed only if building was owned by permittee organization) 3. Repairs and Maintenance .................. 3 $ 4. Utilities ................................ 4 $ 5. Building Depreciation (See instructions on back) ................ 5 $ (a) Add lines 3-5 (b) Proration Factor (c) Allowable from line 1(c) Building Expense 6(a) 6(b) — - 6(c) 6. Total Building Expense ........... X — $ Other Expenses 7. Postage and Stationery.................. . 8. Freight ........ ......................... 9. Printing of Tickets or Cards .............. . 10. Advertising for Games .................. . 11.Accounting ............................. 12. Non -Alcoholic Refreshments for Games .... 13. Permit Fees (Please see instructions) ....... 14. Equipment Actually Purchased for Games ... 15. Repairs for Damages to Equipment Used for Games .............................. 16. Wages (from Schedule C-1) ................ 17. Miscellaneous expenses directly relating to games only (List in detail on separate sheet) . . . 7 $ 8 $ 9 $ . 10 $ . 11 $ 12 $ 13 $ 14 $ 15 $ 16 $ 17 $ 18. Total Other Expenses (Add lines 7-17; enter here) ...................................................... 18 $ 19. Total Game Related Expenses (Add lines 2(c), or 6(c) and 18; enter here and on page 1, line 3)................ 1 19 $ 0 04-s47c (10184) Page 3 (over) Authorl7ed Games of Chance and Skill SCHEDULE C-1. WAGE EXPENSE Name of Organization Permit Nv r AME.RICM ASSOCIATION OF RETIRED PERSONS 86-197 List all employees who were paid wages at any time during the year for helping with the games; e.g. bingo callers, ticket takers, prize distributors, etc. Please note that under Alaska regulation 15 AAC 105.220, employees must not be paid more than $1.00 over the state minimum hourly wage. The Total Wages Paid column should include the total wages paid each individual during the calendar year. Use additional pages as needed and include in the total. NAME SOCIAL SECURITY NUMBER" MAILING ADDRESS HOURLY RATE HOURS WORKED TOTAL WAGES PAID TOTAL FROM OTHER SIDE. If you need additional space, use the back of this schedule, and transfer the Total Wages Paid to this line . ..................... $ 0 TOTALS. Add the entries in the Total Wages Paid column. Enter here and on page 3, Schedule C, line 16............................................... $ 0 "You are not required to provide your Social Security Number. If provided it will be used by the department for identification purposes. This information may be provided to the Internal Revenue Service or other agencies. 04.647G1(10186) Page 5 (over) Authorized Games of Chance and Skill SCHEDULE D. DEDICATIONS OF NET PROCEEDS Name of Organization Permit Number AMEPSCAN ASSOCIATION OF RETIRED 8 6 —19 7 List in detail all dedications of net proceeds. Give the full name of each recipient and indicate the reason or purpose of the payment. Use additional pages as necessary, or any reasonable facsimile that contains all of the requested information. Failure to report dedications of net proceeds in detail may result in the nonrenewal of your games of chance and skill permit. AS 05.15.150 LIMITATION ON USE OF NET PROCEEDS. (a) The authority to conduct the activity authorized by this chapter is con- tingent upon the dedication of the net proceeds of the games or contests to the awarding of prizes to contestants or participants and to political, educational, civic, public, charitable, patriotic, or religious uses in the state. "Political, educational, civic, public, charitable, patriotic, or religious uses" mean uses benefiting persons either by bringing them under the influence of education or religion or relieving them from disease, suffering, or constraint, or by assisting them in establishing themselves in life or by providing for the promotion of the welfare and well-being of the membership of the organization within their own community, or through aiding candidates for public office or groups which NAME OF RECIPIENT OF DEDICATION FORGET ME -NOT SENIOR CARE (ADULT DAY CARE PROS) support candidates for public office, or by erecting or maintaining public buildings or works, or lessening the burden on government, but do not include the erection, acquisition, improvement, maintenance or repair of real, personal or mixed property unless it is used exclusively for one or more of the uses stated.- (b) The net proceeds derived from the activity must be devoted within one year to one or more of the uses stated. An organization desiring to hold the net proceeds fora period longer than one year must apply to the Commissioner of Revenue for special permis- sion, and upon good cause shown, the Commissioner may grant the request. REASON OR PURPOSE PURCHASE VCR EQUIPMENT AMOUNT GIVEN $ 446.21 1 TOTAL DEDICATION OF NET PROCEEDS. Enter here and on page 1, line 11................................ L$4 46.21 n . 1& . � r% "�'' Page 7 (over) January 9, 1987 City of Kenai. City Manager 210 Fidalgo Kenai, Alaska 99611 Re: Kenai Municipal Golf Course and Recreation Area Lease Dear City Manager: Pursuant to the terms of my lease with you dated June 7, 19 85 -, I intend to commence construction of the second nine holes of the golf course as soon as the ground can be worked this spring. Please prepare the necessary paperwork for giving me possession of the Lease Option A_xe.a., as shown as Exnibit "B" of the lease. Also please advise me of the prorated rental amount of that area for 1987, Very truly yours, RICHARD I. MORGAN RECEIVED BY DATE CITY OF KENA1 .� „OTC G'� 4 �4�" 210 FIDALGO KENA19 ALASKA 99611 TELEPHONE 283 - 7535 MEMORANDUM TO: Councilmembers City of Kenai FRO'b im Rogers, City Attorney City of Kenai DATE: January 20, 1987 RE: Purported Existence or Advocated Extension of Candlelight Drive It is the City Attorney's position that no validly perfected public use easement presently exists as a result of Ordinance No, 870-83. Nonetheless, it appears that the Council desires to provide the Burnett..'s access to their property either by extending Candlelight Drive or by other means. Subsequent to the last City Council Meeting, Dick Morgan indicated his intent to expand the present golf course to include lands . presently encompassing the area known as Candlelight Extension. It should be noted, however, that these lands are not presently leased but are subject to a right of first refusal pursuant to Article 17 of the "Kenai Municipal Golf Course and Recreation Area Lease and Concession Agreement. This Agreement provides: ARTICLE XVII Lease Option The CITY grants to LESSEE a right of first refusal to lease, upon the same terms and conditions as set forth herein, the property described in Exhibit 8 at a rental per square foot equal to the per square foot rental then being paid for the property described in Exhibit A to be used by the LESSEE only in a manner consistent with the purposes of this agreement. The aforementioned lease provides that Lessee Morgan shall have the right of first refusal on the same terms and conditions as the existing lease, assuming the City does in fact lease that property. Furthermore, the existing lease contains a clause in the second paragraph of Page 1 which states that: "...the CITY hereby leases to the LESSEE, and LESSEE takes and leases in an 'as is' condition from the CITY..." Thus, if prior to the lease, there was a valid perfected public. - use easement established, it is arguable that the Lessee would take subject to that public use easement. On the other hand, a lessee would conceivably argue that the right of first refusal somehow entitled them to acquire the lands as they existed on the date of the original lease and that at that time there was no validly perfected public use easement. Of course, had there been a public use easement perfected, Article XV would cover the problem since it provides: ARTICLE XV Van eft +-ew This lease is subject to all easements across the Premises that are of record. Should the City lease these additional lands to the Lessee pursuant to Article XVII, which is entitled "Lease Option," there is not only the protections for the City as cited above, but also the indemnification clause of Article XI which provides that-, ARTICLE XI Indemnification LESSEE shall protect, indemnify and save harmless the CITY from and against any and all claims, demands and causes of action of any nature whatsoever for injury to or death of persons, or loss or damage to property, occurring on the Premises or in any manner growing out of or connected with the LESSEE's use and occupation of the Premises or the condition of the Premises during the terms of this Lease. To insure 'indemnification of the CITY,, LESSEE shall procure and keep in force contractual liability coverage with limits as to bodily injury liability of $1,000,000.00 for each occurrence and $1,000,000.00 in 61 aggregate, and as to property damage liability with limits of $100,000.00 for each occurrence and $100f00-00 in aggregate. A certificate of insurance shall be delivered to the CITY before occupancy of the Premises by LESSEE. Of course, the Lessee may choose not to exercise its right of first refusal as provided for in Article XVII, if the Council decides that they want to recognize some inchoate right of the Burnett's (or the public) to a public use easement over Candlelight Extended. Furthermore, if the Council acts to validate or perfect the easement across this property, the action will not technically affect Mr. Morgan because he is not yet a lessee of the property. If the City offers to lease the property to Mr. Morgan under his right of first refusal, he would then take the leased property subject to the perfected easement as provided by Article XV of the lease. TR/clf 3 TIM ROGERS CITY ATTORNEY CITY OF KENAI P. O. BOX 580 KENAI, ALASKA 99611 283-7539 EGLK Q�U5 720 KENAI MUNICIPAL GOLF COURSE AND RECREATION AREA LEASE AND CONCESSION AGREEMENT THIS LEASE, made and entered into this 7th day of June, 1985 by and between the City of Kenai, hereinafter referred to as CITY, a body corporate under the laws of the State of Alaska, with offices at 210 Fidalgo Street, Kenai, Alaska, and Richard I. Morgan, hereinafter referred to as the LESSEE. That for and in consideration of the rent to be paid by LESSEE and the construction of golf facilities and other improvements and surrender of the same in good condition to the CITY at the termination of this Lease and the other consideration given by the LESSEE herein, the CITY hereby leases to the LESSEE, and LESSEE takes and leases in an "as is" condition from the CITY, that area of land described and shown on the attachment labeled Exhibit "A" and made a part hereof, which Exhibit "A" is, at the time of execution of this Lease, a Preliminary Drawing for Field Survey, to be replaced, at a later date, by a Field Survey, which shall be produced by the CITY, and which shall be conclusively established as having been approved and accepted as a part of this Lease by the presence of signatures on behalf of the CITY and the LESSEE thereon. Said leased area shall hereinafter be referred to as "the Premises." TO HAVE AND TO HOLD the same Premises unto LESSEE, subject to the conditions and covenants herein contained, for the term of years hereinafter specified. The parties hereto further covenant and agree as follows: ARTICLE I The initial term of this lease shall be twenty (20) years, commencing the seventh day of June, 1985, and terminating at midnight on the 31st day of December, 2005. Upon termination of this Lease, each of the improvements listed and described under Article III, Paragraph A, shall be and become the property of the CITY and further upon the termination of this Lease, all buildings constructed by LESSEE on the leased premises under provisions hereof and all fixtures appurtenant to such buildings shall be and become the property of the CITY. ARTICLE II Option to Renew Upon completion of the twenty (20) year initial term of this Lease, the LESSEE at its option, may renew this Lease for an additional term of ten (10) years, subject to the conditions and covenants contained herein. LESSEE'S option to renew shall be exercised by notice in writing to the CITY, at least six (6) months prior to the termination of the twenty (20) year initial term, and said option shall expire and cease if not so exercised. LCA-1 LESSEE: CITY:uglu" .r EGGK 0?65P,',CE72J ARTICLE III Purpose and Improvements LESSEE shall provide for the construction and operation and maintenance of a public golf facility and appurtenances, and the Premises shall be used only for such purposes unless consent to some other use is obtained from the CITY in writing. It is anticipated that areas not being utilized for golf will be available to the public without charge for jogging and other uses not inconsistent with or in frustration of the premises primary use as a golf course. LESSEE shall cause to be designed, constructed, and installed upon and within the Premises, at a value of not less than THREE HUNDRED THOUSAND ($300,000.00) DOLLARS and at no cost to the CITY, the improvements listed and described under Paragraph A of this Article III. The preliminary plans prepared by LESSEE and approved by the CITY shall constitute the Master Plan for development of the Premises. Construction shall be started in accordance with the terms of this Lease not later than thirty (30) days after the date hereof and shall proceed with due diligence until completed within one (1) year and one hundred twenty (120) days from the date hereof. A. Required Construction. LESSEE covenants that he will construct the following: 1. Regulation 9-Hole Golf Course. A regulation 9-hole golf course will be constructed on the Premises, the design and subsequent construction of which shall be equal to other courses existing in Alaska. The design shall incorporate a minimum yardage of 3,000 yards; the par shall be 36; the turf greens shall each contain a minimum area of 5,000 square feet; the layout and construction shall conform with the best practices and with applicable U.S. Golf Association recommendations. 2. Practice Putting Green. A practice putting green will be constructed on the Premises. The design shall contain a minimum area of 5,000 square feet; the surface shall be of the same turf as the greens on the course; the construction shall conform with best practices and with the applicable U.S. Golf Association recommendations. 3. Practice Driving Range. A practice tee and fairway with provision for a minimum of Six (6) tee spaces will be constructed on Premises. Design of this facility shall include provision for increasing the capacity if space requirements will permit. 4. Buildings. A clubhouse building, with a floor area of not less than 1,300 square feet, which will include restrooms and facilities for a pro -shop and for sale of food and refreshments will be constructed on the Premises. All buildings constructed on the Premises shall conform to all laws, rules, regulations and ordinances applicable to safety and accessibility of physically handicapped. The building construction shall provide for accommodating maintenance equipment and storage. 5. Roads and Parking. A surfaced access and entrance road shall be provided to the clubhouse area from Lawton Drive, the northern boundary of the Premises. Surfaced parking areas to accommodate a minimum of 60 cars shall be provided in close proximity to the clubhouse, with handicapped parking provided in the most easily accessible location within the parking area. The surface shall be of comparable construction to Lawton Drive as it exists at the time of golf course construction. TIM ROGERS CITY ATTORNEY LCA-Z CITY OF KENAI P. O. BOX 5W KENAI, ALASKA 99611 283-7539 L E S S E E CITY: TIM ROGERS CITY ATTORNEY CITY OF KENAI P. O. BOX 580 KENAI, ALASKA 996H 283-7539 r, Eoa� Q"65 PncE 722 Space for future surfaced parking for additional cars and an overflow parking area, in accordance with parking requirements of the Kenai Zoning Code, shall also be provided in close proximity to the clubhouse. Planning shall include a surfaced access and entrance road to the above -mentioned parking areas from Lawton Drive. 6. Watering System. A watering system of sufficient capacity will be provided for all tees and greens. B. Lack of Facilities. LESSEE shall be responsible for costs of any improvements on the premises, including but not limited to roads, water and sewer. CITY agrees to extend water and sewer mains along Lawton Drive to the proposed access road location serving the clubhouse building site and provide the appropriate stub outs. Said construction shall be completed by July 1, 1986. C. The LESSEE agrees that the golf course and the other improvements provided for herein shall be equally available to all members of the general public without discrimination. Any discrimination by the LESSEE in the dispensing of food and beverage as provided for herein or in the use of any golf facility hereinabove described on grounds of race, sex, religion or national origin shall be deemed to be a material breach of this Lease. Signs advertising the golf course shall indicate that the facility is open to the general public. D. The LESSEE agrees that he will not discriminate against any employee or applicant for employment, to be employed in the performance of this Lease with respect to his hire, tenure, terms, conditions or privileges of employment or any matter directly or indirectly related to employment because of age, except when based on a bona Pied occupational qualification or because of race, sex, religion or national origin. LESSEE understands that any such discrimination shall be deemed to be a material breach of this Lease. Lessee shall pay to the CITY for the use of the Premises the following rent for each nine -hole course constructed: Operating Annual Season Rent First $ 500.00 Second through Fifth $ 19000.00 Sixth through Eighth $ 29500.00 Ninth and Tenth $ 59000.00 Eleventh through remainder of initial term $ 79500.00 Additional Term of Lease $109000.00 LESSEE intends to apply for two beverage dispensary licenses and the LESSOR hereby gives its non -objection, provided LESSOR is named on the Licenses and is indemnified against any loss as hereinafter provided. For the purpose of this Lease, "operating season" shall mean the period of time in any calendar year commencing on the date when LESSEE shall open its facilities for use and enjoyment by the public and ending on the date when the LESSEE shall close its LCA-3 LESSEE: CITY: TIM ROGERS CITY ATTORNEY CITY OF KENAI P. O. BOX 580 KENAI, ALASKA 99611 283-7539 C', C, EGGK 02"65 P�r-E 723 facilities to the public. The required minimum "operating season" shall be from June 15 to October 1 of each year unless otherwise agreed to by the Kenai City Council. LESSEE agrees that all articles sold or used under this Lease shall be of good quality and shall be subject to the approval of the CITY. For the initial two years of operation, commencing with the 1987 season, green fees shall not exceed five dollars ($5.00) per person for nine holes of golf on weekdays or six dollars ($6.00) per person for nine holes on weekends and holidays. Green fees subsequent to the first two years of operation shall be set at the sole option of the Kenai City Council upon petition of successful bidder. LESSEE may charge reasonable fees for other uses during the golf season upon approval of Council. The premises under this Lease are owned by the CITY. However, it is contemplated that LESSEE shall be subject to taxation upon all personal property owned by LESSEE and used on or in connection with the leased Premises. LESSEE covenants to pay any taxes as may be lawfully assessed against such personal property. ARTICLE IV Possession and Maintenance LESSEE shall have sole possession of, and responsibility for maintenance of the Premises, including all improvements constructed thereon. The CITY shall have the right to inspect the Premises and to impose reasonable regulations to insure proper care, maintenance, and upkeep of the Premises. The degree of maintenance shall be in keeping with other golf courses. the CITY, through its City Manager, shall have the right to require that the Premises and improvements thereon meet general standards of other owned and operated golf courses. The CITY shall advise the LESSEE in writing of any deficiency in maintenance of the Premises. The deficiency shall be corrected within thirty (30) days, or within an appropriate period as may be otherwise agreed. ARTICLE V Operation A. In its operation on the leased premises, LESSEE shall observe all applicable Federal, State and Municipal laws and shall take such actions as may be necessary to the protection of health, safety, and well-being of the public. B. LESSEE shall at its expense, meet the requirements of local and state health departments covering the handling and dispensing of food and beverages. Adequate toilet facilities in accordance with the plans and specifications shall be provided at locations on the golf course and at the clubhouse. Refuse and waste materials shall be handled as required by applicable state and local laws, ordinances and regulations. C. LESSEE agrees to pay all public utility bills for electricity, gas, water, and any and all other utilities used or consumed, on the Premises and to procure at its expense all meters and permits necessary for making connections and continuing utility services. D. For purposes of promoting the facility the CITY may from time to time join with the LESSEE in holding major golf tournaments of State and National significance. LCA-4 LESSEE��— ... CITY: TIM ROGERS CITY ATTORNEY CITY OF KENAI P. O. BOX 580 KENAI, ALASKA 99611 283-7539 C C. LCov,0265P.1 r-E72 E. LESSEE agrees that winter usage (November 1 through May 1) of the golf facility by the public for purposes consistent with CITY policies of winter use on golf courses will be permitted excepting the clubhouse, tees, and greens areas, which will remain closed unless otherwise agreed to in writing; provided, however, that damage to the premises resulting from such authorized winter usage shall be repaired at the expense of the CITY. ARTICLE VI During the term of this Lease, LESSEE shall procure and keep in force, or shall where appropriate, require LESSEE'S contractors and subcontractors to procure and keep in force, the following insurances: A. Workmen's compensation insurance, sufficient to meet State of Alaska statutory requirements, including $100,000.00 employers liability coverage, protecting all employees of LESSEE and employees of its contractors or subcontractors during the term of this Lease. B. Comprehensive general liability insurance, including product with limits, as to bodily injury liability, of $1 ,000,000.00 for each occurrence and $1 ,000,000.00 in aggregate and, as to property damages, liability of $100,000.00 for each occurrence and $100,000.00 in aggregate. Insurance policies required by this paragraph shall name LESSEE as Insured and the CITY as an additional insured. Such insurance shall be made effective prior to the beginning of construction on the golf course and shall cover construction and, thereafter, operation of the improvements on the Premises. C. Comprehensive automobile liability insurance with limits, as to bodily injury liability, of $500,000.00 for each person and $1,000,000.00 for each occurrence, and, as to Property damage required by this paragraph shall name the CITY as an additional insured. D. Fire, Vandalism, Malicious Mischief, and extended coverage insurance covering all buildings constructed by LESSEE during the term of this lease in an amount equal to at least eighty (800) percent of the full insurable replacement value of such building above foundations. Such insurance policies shall be issued in the joint names of the CITY and LESSEE and shall be payable to the CITY, LESSEE and to any leasehold mortgagee, as their respective interests may appear. Duplicate originals or certificates of all insurance policies required hereunder shall be delivered to the CITY prior to occupation of the Premises by LESSEE. The entire amount collected for losses under any fire and extended coverage polices shall be held under joint control of the CITY, LESSEE and any leasehold mortgagee, shall be made available to repair, restore, or rebuild the damaged improvements. Any excess part of the insurance fund remaining after the cost of repairs, rebuilding or restoration is paid, shall be paid to the LESSEE. In the event the insurance fund is insufficient to cover the cost of repairs, rebuilding or restoration, the excess cost shall be borne by LESSEE. E. Reassessment of insurance needs shall be made by CITY at least every five (5) years to determine whether or not in the City's sole determination the coverage shall be increased. LESSEE:�p�.�i... CITY: j"15 ,� LCA-5 �= UG��r, 0."65 f e,rE 72 F. LESSEE agrees that thirty (30) days notice in writing shall be given the CITY in the event of cancellation, termination or material change of any insurance policy required hereunder. ARTICLE VII Performance and Payment Bond Within fifteen (15) days after the execution hereof, LESSEE shall furnish to the CITY, either performance and payment bonds (with a corporate surety license to do business in the State of Alaska) each in the amount of ONE HUNDRED THOUSAND ($100,000.00) DOLLARS, or a cash bond in the amount of TEN THOUSAND ($10,000) DOLLARS, conditioned upon LESSEE'S completion of construction items described in Paragraph A of Article III in accordance with submitted plans and specifications, and the payment bond conditioned upon the LESSEE'S payment of the full cost of all labor, materials, tools and equipment furnished for the work. The aforementioned bond shall in no way be construed as a limitation on liability, duty to defend or indemnify, or a restriction of any other kind, and shall be payable to the CITY as well as being subject to approval by the CITY. ARTICLE VIII Assignment of Lease Except as provided in this paragraph, this Lease shall not be assigned in whole or in part, unless and until the CITY approves such assignment in writing, which approval shall not be unreasonably withheld. Upon written request by the CITY, the identity of the holder or holders to any mortgage, deed of trust or security instrument and all individuals, corporations, or parties having a financial interest as investors or shareholders with the LESSEE in this lease, shall be provided the CITY by LESSEE within thirty (30) days of such request, LESSEE shall have the right to sublease the Premises or parts thereof for uses and purposes which are in accord with the provisions of this Lease, only upon written approval by the CITY which approval shall not be unreasonably withheld. ARTICLE IX Pledge of Lease It is understood that in borrowing funds LESSEE cannot place a mortgage on the Premises or the fixed improvements placed thereon. However, it is contemplated that LESSEE will be required to borrow funds for the initial construction of improvements and that from time to time during the term of this Lease it may be desirable or convenient for LESSEE to borrow additional funds for additional improvement, alterations, repairs or for other purposes. Accordingly, it is agreed that LESSEE shall at all times during the term of this lease have the right to grant rights of security in this Lease and the leasehold rights of LESSEE created by this Lease, provided, however, that any such rights of security shall at all times be subject to, and the right, title and interest of the CITY as owner of the Premises and fixed improvements placed thereon and the right of the CITY to require the payment of all rentals due hereunder and the full and faithful performance of the covenants and conditions of this Lease by the LESSEE. Subject to any such rights of security, the CITY shall have a lien upon all personal property not daily exposed to sale, owned by LESSEE and used on the Premises to secure the payment of the rentals as they respectively come due hereunder. TIM ROGERS CITY ATTORNEY CITY OF KENAI L C A - 6 P. o. BOX 5W KENAI, ALASKA 99611 283-7539 L E S S E E CITY: TINT ROGERS CITY ATTORNEY CITY OF KENAI P. o. Box 580 KENAI, ALASKA 99611 283-7539 �u^ 65.),rE726 1 In the event at any time during the term of this Lease, LESSEE, or anyone holding under LESSEE shall be in default of any of the covenants or conditions of this lease, then and in such event, before forefeiture is invoked by the CITY, the holder of any rights of security granted by LESSEE head all payments and do and perform any and all acts and things which may be necessary or required to prevent a forefeiture of this Lease, and the party making such payments or performing such acts or things shall thereby and thereupon be subrogated to all rights of the LESSEE under this Lease. The CITY agrees, that, if requested in writing by the holder of any such rights of security, the CITY will send to the said holder at the address specified in such written request copies of all written notices or demands which the CITY. may serve upon LESSEE or anyone holding under LESSEE under and pursuant to the terms of this lease or otherwise. It is understood, however, that the holder of such rights of security, shall in no way be liable to the CITY for the payment of any rent or for the performance of any other covenant or conditions under this Lease until such time as it shall acquire by conveyance from the LESSEE, or by the foreclosure or other proceedings provided by law or by the terms of any written instrument, all the rights, title and interest of the LESSEE under this Lease; provided, however, that any party who shall acquire said rights, title and interest of the LESSEE, as above provided, shall thereupon and thereby become liable for the full performance and all payments theretofore and thereafter required to be made by LESSEE under the covenants and conditions of this Lease, as fully and completely and to the same extent as the LESSEE itself would have been if it still had retained its right, title and interest hereunder. Nothing in this Article XII shall prevent or delay the termination of this Lease under the provisions of Article X. ARTICLE X Cancellation and Forefeiture In the event LESSEE shall be declared bankrupt according to law, or if any assignment shall be attempted to be made of this Lease For the benefit of creditors (other than as herein permitted) or if LESSEE shall abandon the leased premises or in the event rental due hereunder remains unpaid for thirty (30) days after notice of nonpayment given to LESSEE, then in any of said events, the CITY may declare the lease to be terminated and may enter into and upon the land covered by this lease or any part thereof and repossess the same (including any and all improvements and installed fixtures) and expel the LESSEE and those claiming under it and remove its effects, forcibly if necessary, without being deemed guilty of any manner of trespass and without prejudice to any other remedies which might otherwise be used for possession or for arrears of rent. ARTICLE XI Indemnification LESSEE shall protect, indemnify and save harmless the CITY from and against any and all claims, demands and causes of action of any nature whatsoever for injury to or death of persons, or loss or damage to property, occurring on the Premises or in any manner growing out of or connected with the LESSEE' use and occupation of the Premises or the condition of the Premises during the terms of this Lease. To insure indemnification of the CITY, LESSEE shall procure and keep in force contractual liability coverage with limits as to bodily injury liability of $1,000,000.00 for each occurrence and LESSEE: 44au- CITY: LCA-7 TIM ROGERS CITY ATTORNEY CITY OF KENAI P. O. BOX 580 KENAI, ALASKA 99611 283-7539 C' $1,000,000.00 in aggregate, and as to property damage liability with limits of $100,000.00 for each occurrence and $100,000.00 in aggregate. A certificate of insurance shall be delivered to the CITY before occupancy of the Premises by LESSEE. ARTICLE X I I Waiver of Default Any waiver by the CITY of any default or breach of this Lease shall not be construed to be a continuing waiver of such default or breach nor as a waiver or permission, express or implied, of any other or subsequent default or breach. ARTICLE XIII Force Ma jeure If by reason of strike, lockout, war, rebellion, material or labor shortage due to a national emergency, fire, flood, hurricane or other casualty, periods of excessive rain, or by any other matter not within its control, the CITY or LESSEE in good faith and without fault or neglect on its parts is prevented or delayed in the construction of any condition except as relates to rental payments or the maintenance of insurance which, under the terms of this Lease, it is required to do so perform within a specified period of time, the period of time within which such performance was to have been completed shall be extended by a period of time equal to that of such delay or prevention, and the CITY or LESSEE, as the case may be, shall not be deemed to be in default if it diligently performs and completes such work or covenant or condition in the manner required by the terms of this Lease within the specified period of time as so extended. ARTICLE XIV Drainage It is contemplated that the existing drainage within the Premises will be retained as the drainage way for the Premises. Any construction or relocation shall be by LESSEE at LESSEE'S expense. ARTICLE XV This lease is subject to all easements across the Premises that are of record. ARTICLE XVI General Clauses A. All references to the parties to this Lease and all covenants, conditions and agreements of this Lease shall apply to and be binding upon the CITY and LESSEE and their respective heirs, executors, administrators, legal representatives, successors and assigns (when assignment is made in accord with the provisions hereof) as if they were in each case fully named and stated. In this Lease both the CITY and LESSEE are referred to in the singular and neuter gender. However, such words and all other terms and words used in this Lease regardless of the number and gender in which they are used, shall be deemed and construed to include any other number (singular or plural) and any other gender, masculine, feminine or neuter, as the sense of LESSEE• CITY: LCA-8 TIM ROGERS CITY ATTORNEY CITY OF KENAI P. O. BOX 580 KENAI, ALASKA 99611 283-7539 CCU,,0.�fS pl"IrE 728 the writing herein may require, the same as if such words had been fully and properly written in the required number and gender. B. All notices to the CITY shall be sent by certified or registered mail addressed to the City Manager, City of Kenai, 210 Fidalgo, Kenai, Alaska 99611, or at such other address as the CITY may in writing from time to time designate by written notice to the LESSEE. All notices to LESSEE shall be sent by certified or registered mail addressed to LESSEE at P.O. Box 1101, Kenai, Alaska 99611 or at such other address as LESSEE may from time to time designate by written notice to the CITY. C. This Lease is made under the applicable laws of the State of Alaska and if any term, clause, provision, part or portion of this Lease shall be adjudged invalid or illegal for any reason the validity of any other part or portion of this Lease shall not be affected thereby and invalid or illegal term, clause, provision, part or portion shall be deleted and ignored as if the same had not been written. D. This Lease may be altered, modified or amended only be written instruments signed by LESSEE and the CITY and approved by the City Council of the CITY. ARTICLE XVII Lease Option The CITY grants to LESSEE a right of first refusal to lease, upon the same terms and conditions as set forth herein, the property described in Exhibit B at a rental per square foot equal to the per square foot rental then being paid for the property described in Exhibit A to be used by the LESSEE only in a manner consistent with the purposes of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be signed and sealed the day_ and year first above written. CITY OF KENAI: - A - d—J. BkAghton City anager LESSEE CITY: LCA-9 LESSEE: C E 7 29 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 1985, WILLIAM J. BRIGHTON, City Manager of the C1, ."gyp �. e,�p i,. Alaska, being personally known to me or' ? having R•- le'.�aed°.!'l•:' satisfactory evidence of identification, appeared�ai'f, r `' iit-`ar;�d acknowledged the voluntary and authorized execdtd:or'oc r foregoing instrument on behalf of said City. { M Notary Public for AY $'.I�'',� My Commission Expirer .,l) ". � STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 1985, RICHARD I. MORGAN, being personally known 't.6r, m `,,` 9 :vit g produced satisfactory evidence of identificatio�;�_ a`p:.xd�,b�ore me and acknowledged the voluntary and authori;ied�,gt�o'f"� the foregoing instrument. • `�. l 2 Notary Public for A,>as!jb 6- My Commission Expiiic, t LCA-10 TIM ROGERS CITY ATTORNEY CITY OF KENAI P. O. 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L 1► A < r OIL < < .I •� .� r A A I., < p 1► A 7.1 4 47< A < t► 4 A A A Ie �V� '/ < w 1 J 1A p.1 b `J 1'< + ad v J a a < r� V < A < V p < tkV 1► 71►A 7a >Y�OL 7 Yq A� , V V ^ < J < , v A < r , V l► 'r < + b 30 < ` , t 1► q d < ,a rr 1� MARSH Q V4 x Plt QvTsoM E.LEv1�t10N 75 %/ t3v� Fe c� ARE �► LE 7Q! -VES ilf'T10N GOV'T LOTS 1,1, 3 and 4 SECTION 3 T 5N, RIIW S M. AK EXCLUDING THE NW1/4 Gov LOT 4 (:ONTAING /50 AC. MIL. rw *A figh % s lor "p.,f %=wWp&sw a.ivo ca"KINSIA4,0W AREA 20 cz 0) Z1. m C-� C:) ;:o c-- c:) m m c: CD --4 rncn v — ::::f ::a cc 85 65 IF v 20 BU EF?��//, STRIPI -c-v -V v 4 7 7 A BALL FIELD V Tb 'r J% P- 1% A c *rs 74 4c v v 7 L A T I A A V 4c Ex IS 1 '4 V t %0A A V A r J, V A L# r A A .4 P. #�, &- ). t- V . 1 Vp V.), A 7 T A A V7 .1 3b A A LOT 2 LOT .4 t- 0 T ;i v v t, r 1. SIX -* P. v t. I A T J, 4 4 7 v > 3b L&LA A4c - X %1 14 7 f- 4 A A A 4L vy A 4c 4 V V, A. 146 L Z A V It < N T/ A A A 4 A V. A I 4c, A S MARSH WAXER k—oCV\Tl0T4 x Pig 75 0 T T'0 V-s, �LV—'Y NN ION UA wx w LEr74L PESViIPTION GOV'r LOTS 1,2,3 and 4 SECTION 3 T5N,RIIW • SM. 4K EXCLUDING THE IVW114 GOV T Lor4 ��rl0%1 (,-ONTAING 150 AC. MIL. Pk ti A A H-10 CITY OF KENAI 44 210 FIDALGO KENA19 ALASKA 99611 TELEPHONE 283 - 7535 MEMORANDUM TO: William J. Brighton, City Manager FROM: Keith Kornelis, Public Works Director DATE: January 20, 1987 SUBJECT: GOLF COURSE LEASE/BURNETTS' PROPERTY ACCESS FOR: COUNCIL MEETING OF JANUARY 21, 1987 Public Works would like to make some comments concerning the above subject which I understand will be discussed again at this upcoming Council meeting. This subject concerns access to the Burnetts' property either through or around the golf course lease and future lease option. As near as I can remember, the first time this subject was brought to Public Works attention was in discussion Public Works had with the Burnetts as far as the City of Kenai building a road and water and sewer down Candlelight extended to their property. I explained to Mrs. Burnett that: 1) the City of Kenai is not in the business of building roads, water, and sewer for private developers; 2) there is no public right-of-way or access on Candlelight beyond Lawton Drive. At that point, Mrs. Burnett pursued a series, of events to convince the City Council to give her access to her property via Candlelight Drive Extended. Ordinance 870-83 was passed by the Council of the City of Kenai on August 17, 1983. At that time and all along, Public Works adamantly opposed granting any type of easement through this City property and explained that the Ordinance was incorrect in that the City does not maintain Candlelight Drive Extension. The reason Mrs. Burnett would like to use Candlelight Drive Extended for access to her property is because: 1) it is the shortest distance from the existing road to their property therefore the least expensive to construct; 2) their existing access to their property crosses some areas of wetlands that would require a Corps permit. One should remember in order to Page 1 of 3 subdivide any property, the Borough and City require access to each subdivided parcel. In the Burnetts' case, the section line, which extends down Swirep Road, is legal access to their property. Mrs. Burnett should have perfected the easement that the City Council agreed they would give with Ordinance No. 870-83. Public Works Department often obtains and perfects easements for construction projects. In some cases we may have 8 or 9 easements on a project. In most cases we can convince the property owners that it ip benefitting their property and do not have to pay for these easements. However, in one case we had to purchase a lot and in many other cases we have actually had to pay for the easement. Unless there is a clear and understandable benefit to the person giving up property for an easement or right-of-way, compensation to the property owner is justifiable. Because I could not see Candlelight Drive Extended actually benef itting the individual citizens of the City of Kenai and because it broke up a large parcel of existing City land thus possibly restricting a future large development (like a golf course), I was opposed to granting an easement or right-of-way. How do you perfect an easement and have it recorded? The first step in perfecting an easement is to have a survey done and establish the meets and bounds which will define the location of the easement. To define an easement or right-of-way one needs a "closed loop" survey or one that accurately defines the property boundaries. Merely to say that Candlelight Drive Extended ip insufficient to properly define a new right-of-way or easement. In order to perfect an easement for Candlelight Drive Extended, Mrs. Burnett should have drawn up a proper grant -of -easement, had the City Manager sign as property owner for the City, had it notarized, and then have it recorded. Again, Public Works Department does this quite frequently on our construction projects. Attachment A is a copy of the area being discussed. The map shows the golf course lease that is in existence at the present time with Richard Morgan and his golf course lease option that I understand he is asking to obtain. As shown on Attachment A. I have looked at two new road alternates that would provide access to the Burnetts' property. NEW ROAD ALTERNATE 419 This alternate consists of extending Lawton Drive east to Swires Road and south down Swires to the Burnetts' property. This distance is approximately 3,000 feet and a rough estimated cost would be $�00,000. If Mr. Morgan would relinquish some of his lease property so that the road could be built along the bluff line, this estimate could be Page 2 of � lowered to $250,000 or $275,000. If this was allowable it would also bring the terminus of the road closer to "dry ground" or usable property. NEW ROAD ALTERNATE This alternate would extend Tinker Lane South to the southern lot line of Government Lot #4 and east to the Burnett property. This road is a little over 2,000 feet long but 3/4 of it would be built in wetlands. A rough estimated cost for this alternate would be $250,000. CANDLELIGHT DRIVE EXTENDED: This option would extend Candlelight Drive south past Lawton to the Burnetts' property. The option has been discussed in the past and the cost estimate for 1,350 feet of road is approximately $100,000. Crossing the wetlands is not anticipated with this option therefore there would be lower unit costs for construction. It seems a.s if this option is not available since Dick Morgan is requesting to take his golf course lease option and does not want the road through the center of his golf course. PUBLIC WORKS RECOMMENDATION: The first recommendation that I would have would be to tell Mrs. Burnett that access to her property is down Lawton to Swires and south on Swires to her property. This has always been her legal access to her property and this road can be built. Granted a Corps of Engineers permit would be needed but I feel it can be easily obtained. The City of Kenai has received three or four Corps permits and we would be happy to show Mrs. Burnett the procedures needed in obtaining this permit. As a private developer it should be her responsibility to construct her own access, why should the citizens of the City help pay for it? My second recommendation would be for the City of Kenai to build the Lawton Drive portion of the New Road Alternate 1. This would extend Lawton Drive down to Swires Road. Since the City owns Lots 1-16 we would also benefit from this construction and may want to even consider including water and sewer. I feel Swires Road south of Lawton should definitely be constructed by the Burnetts. The length of Swires Road Extended beyond Lawton would be approximately the same distance as Candlelight Drive Extended. If Mr. Morgan would allow the road to transverses along the bluff line, the cost for the Burnetts to build the road would also be approximately the same as Candlelight Drive Extended-, I would recommend against New Road Alternate #2 which would extend Tinker Lane to the Burnetts' property. This road would be very little value to the adjacent property owners since a good portion of it goes through wetlands, KK/sw Attachments Page 3 of 3 J OILER PARK m W Y Z 1904 ROA,0 A-7- u LAWTo N svE A�0*3oo,00a) .. ........... .............. ... ........... .............. I 2 3 4 5 6 7 8 9 10 II 12 13 I 2 3 4 5 6 T 8 ;;;;;;;;;;;; 1 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 .. ............... . . . . . . . . . . . . . . . . . • . • • . . . . c.....•............................................................................................ L J /�� A .� q �. 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VQ1 :•:::•.:•:::: V :::••::•:::::•�:•�•�•�:•:�•�::•�:•:�•�•�:::• •:•�:::•::�•�•:�•••••:•:•:••:•:::::•:•i�'::•:': I : I�.............................................................................................. tv % *0'000* 0 X-4 . . . . . .. 0 at so v to l4c 0. r�..; • ...v ,, •.....•. ' • • • ••••••• • • • • • • • •.•.•.•.•.•.•.•..•.•. . '�.� t 4 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • .......` c . .......... ..•..•.•.A lotA ....... • Goy ,c cooes� L ear sE' pPT/oN NEw , 60, 4 .6 X1. r �# 2 (`�aso,coc� BURN E7'T �' 13.G vc'F w Aw /-/ ... I / w - �`� . _,r ,: ;,. mow:: •- : -. s.. BOX 850 • SOLDOTNA. ALASKA 99669 PHONE 262-4441 STAN THOMPSON MAYOR January 12, 1987 City Council City of Kenai 210 Fidalgo Kenai, Alaska 99611 Dear Council Members: Borough Ordinance #86-92 was adopted by the Assembly on December 2, 1986, reorganizing and reestablishing the Resource Development Commission. A copy of that ordinance is attached. Essentially, the makeup of the Commission will remain the same with a total of 11 members► five of whom are representative of the Borough's five first class or home rule cities but to be nominated by the respective City Councils rather than assigned by the Commission. g Les Vierra has been representing the City of Kenai on the Commission up to this time. To comply with the terms of the ordinance, we will need your Council's official action in nominating such a representative. We would appreciate your early action on this matter to assure participation in the Commission's reorganizational meeting on Friday, February 14, 19870 Sincerely, Frank McIlhar aY �• g Resource Development Director FM/b r Attachment: Ordinance 86-9 2 Introduced by: Nash & Fande Date: October 28 , 1986 Hearing: Dec. 2, 1986 Vote: 13 Yes, 1 No • Action: Adopted KENAI PENINSULA BOROUGH ORDINANCE 86-92 (SUBSTITUTE -REVISED) REORGANIZING AND REESTABLISHING THE RESOURCE DEVELOPMENT COMMIS- SION THROUGH ENACTMENT OF A NEW KPB 2.43 AND REPEALING KPB 2.42 and 2.40.100, WHEREAS, the Economic Development Council was formed in 1979 to act in an advisory capacity to the administration and the assembly; and WHEREAS, Ordinance 81-89 established the Resource Develop- ment Commission to continue the work of the then disbanding Economic Development Council; and WHEREAS, through oversight Title 2.42 which created the council was not repealed and the establishing ordinance for the commission established the new body in Title 2.40 within the planning commission and errors were never corrected; and WHEREAS, Ordinance 83-40 provided for the disbandment of the commission not more than two years from June 21, 1983; and WHEREAS, the Kenai Peninsula Borough Assembly believes that the specific legislative mandate of Ordinance 79-50 for the preparation and implementation of the borough's overall economic development program is as important in the economy of 1986 as it was in 1979 if not more so; and WHEREAS, the assembly needs to be kept informed of the status of the borough's overall economic development program on a timely basis; NOW THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH: Section 1. That KPB 2.42 and 2.40.100 are hereby repealed. Section 2. That a new KPB 2.43 is hereby enacted to read as follows: Chapter 2.43 RESOURCE DEVELOPMENT COMMISSION 2.43.010 Established. There is established under the planning department a resource development commis- sion which shall act in an advisory capacity to the administration, the assembly and the planning commis- sion, Kenai Peninsula Borough Ordinance 86-92 Sub-Rvs Page 1 of 3 Pages 2.43.020 Members. The commission shall be com- posed o mem erso'Membership shall include a repre- sentative sentative from each of the borough's 5 first-class or home rule cities nominated by the council of each such ? city. The remaining members shall be chosen so as to provide a balanced cross-section of the borough's economy. Commission members shall be appointed by the mayor, subject to confirmation by the assembly, for a term of service of 3 years with initial terms - sta Memberarisingstag- gered. s may be reappointed. vacancies from unexpired terms shall be filled for the unexpired portion of the term only. 2.43,030 Meetings, officers and expenses, 1. The commission shall meet at least quarterly, 2. The commission shall elect a chairman and a vice-chairman for one year terms, 3. Per diem and travel expenses shall be allowed d as provided for the planning commission members, 2.43.040 Powers and duties. The commission shall be respons i e for formulating resource, business and industrial development programs, development policies, studies, and projects that will assist in the - ment em to P y of borough residents and in the economic develop - meat of the borough. The commission shall: 1. Collect and analyze data to evaluate existing g borough resources; 2. Formulate and develope the overall long range economic development goals of the residents of the borough through the public hearing process; 3 Formulate quantifiable objectives or preformance criteria for the attainment of the borough economic development goals; 4, Identify specific alternatives or projects to accomplish the objectives ; 5. Prioritize the projects or alternatives; 6, Design and publish the borough economic development implementation plan; 7. Supervise and monitor the implementation of the plan; and 8. Ensure continual evaluation of the program. Kenai Peninsula Borough Ordinance 86-92 Sub-Rvs Page Z of 3 Pages 8. Ensure and provide continued evaluation of the program. 2 .-4 3.0 5 0 Administration. The borough's economic development director shall a minister to the functions of the commission, and be responsible for disseminating to commission members the minutes, reports, economic data, and other information, and to keep the commission advised and informed of economic developments. The commission chairman and the economic development director shall be the liaison with the administration, the assembly and the planning commission. The economic development director shall also be responsible for liaison between the commission and other governmental entities. 2.43.060 Assembly reports, The Resource Develop- ment Commission or a su committee thereof shall make a formal report to the assembly immediately preceding a regular assembly meeting at least once each calendar quarter concerning the borough's overall economic development program and the current projects, plans and studies of the council designed to further economic development and increase employment in the borough. Section 3. That the Kenai Peninsula Borough Assembly hereby expressly approves the continued operation of the previously existing Resource Development Commission through the effective date of this ordinance and expressly ratifies and approves the acts and expenditures of the previous existing committee in performance of their responsibilities as provided by the KPB Code of Ordinances. Section 4. That this ordinance shall take effect immmediately upon its enactment. ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH ON THIS _ DAY OF December , 1986. 2 nathan W. Sewall, Assembly President ATTEST: Borough Clerk, �) � v Kenai Peninsula Borough Ordinance 86-92 Sub-Rvs Page 3 of 3 Pages Gov. Steve Cowper Pouch A Juneau, Alaska 99811 Dear Gov. Cowper: We are writing you concerning municipal assistance, revenue sharing, education foundation and school debt reimbursement. While these programs vary in individual importance to each community, in combination they provide some of the essential lifeblood to local governments throughout Alaska. They are also a critical element in the partnership of service delivery between the State and local governments. We understand both the decline and volatility of our present economic situation, and we recognize the need to significantly reduce the state operating budget. For these reasons, we do not seek the promise of a specific dollar amount. We ask only for a principle - that as reductions are made in the state budget, these key programs formula rams g share those reductions in the same proportion. We appreciate tha t at in establishing your priorities, different state agencies will receive different cuts. But the composite of all the program cuts will represent an overall percentage reduction. This is the reduction that should be applied to the municipal formula programs. To reduce them disproportionately to the direct state budget, or to favor one above the others, would be unfair and unwise. In prior discussions, you have supported this fairness principle. We thank you for that, and we reaffirm our commitment to work cooperatively with you and to help shoulder our share of the budget challenge we all face. Sincerely, /��, i VNess Taovf Be it RESOLVED that municipal entitlements (Municipal Assistance, Revenue Sharing, Education Found p Lance, Foundation, School Debt REtirement) not be reduced by any greater percentage than is the state operating budget, exclusive of municipal entitlements. p rating Be it further RESOLVED that the relative percentages for distr b g � siting monies appropriated for the four municipal entitlement programs be :T.he people below agreed to the following principles: 0 1. Since the--Railbelt Energy Fund was established by the Legislature for the sole purpose of financi p p ng energy projects in the Railbelt region, it must not be used for any non -energy related purpose nor for any energy/ non -energy purpose outside the Railbelt. Z. Bradley Lake must be fully funded so that construction can be completed Y without delay, p 3. Transmission interties between the North and South areas of the Railbelt are a necessary part of any Railbelt energy development. 4. A plan should be considered whereby Railbelt Energy funds spent for the - transmission interties Brad p Bradley Lake Hydro and other energy projects can eventually be recovered to enable future railbelt energy project development. Affordability to the ratepayer is the key to any capital i tal recovery plan. 5. As a means of meeting the Railbelt's future energy needs development of 9 p coal and natural gas -based generation, conservation and the Devil Canyon onHydroelectric Project should be considered. • C4 Gillispie D000%t Dav%_BvtcJegs Mike "K lly Tony o 1 s OW �Q�vG�( NLtnJC-g�+v/e WAJYGf /f / CITY OF KENA'I 0 eapi 4 4z"" it 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283 - 7535 December 26, 1986 TO: Council FROM : Janet Whelan City Clerk y RE: Municipal League, Nov. 9, 10, 11, 1986 On Sunday, Monday and Tuesday before Municipal League, the Alaska Clerks' Association had an advanced academy session on elections. 'topics were: 1. Pre --Clearance requirements (Div. of Elections) 2. Lunch Card noting (Data Group Alaska, Inc.) 3. Election ordinances, mail -out ballots, petitions (Clerks' Assoc.) 4, Data Processing: Boards, Procedures, Counting, Certification, security (Clerks' Assoc.) We were given a demonstration of procedures at Election headquarters and Data Group Alaska, Inc. (programmers for Alaska elections) I might note that the three examples given of difficulties encountered in changing over to punch card voting were all in Kenai 1) incorrect programming L - Juneau 2) insufficient test ballots from Anchorage and 3) three precincts in one building (established by State Div, of Elections). jW CITY OF KENAI 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283 - 7535 January 9, 1987 Betty Cook Alaska Housing Finance Corp. 235 E. 8th Avenue Anchorage, Alaska 99501 Dear Ms. Cook: As we discussed on the phone January 8, I am enclosing a copy of City of Kenai's proposed Ordinance No. 1180-86, along with a copy of my memo to the City Council of December 22, 1986. Someone has suggested that if this ordinance is adopted, AHFC will not loan money for real estate in an area that is or has been an assessment district. Perhaps an example will help. Let's assume that an assessment district is formed to develop raw land. The purpose is to install water, sewer and streets. After the work is done, the City prepares and adopts an assessment roll. Will AHFC - refuse to loan money to build a house on one of the assessed lots solely because the City could, if additional costs were incurred some time in the future, make a supplemental assessment? If possible, I would like to have an answer to this question in writing so that I can provide the information to our City Council. Also, for my own information, I would like to ask another question. At times a lending institution or title company will inquire about assessments and we will notify them of pending assessments. This occurs when an individual wants to build a -house .and acquire quire a loan) on a lot in an assessment district that has not been totally closed out. The physical work of installing the water, sewer, and streets are done, but the City has,not adopted an assessment roll. The City cannot tell the lending institution the amount of the assessment, nor can we accept payment in any amount and label it payment in full. Yet, these people do get loans and do build houses. It appears, then that it P PP is not absolutely necessary for the lending institutions to know the amount of pending or possible liens in order for them to approve a loan. Is this correct? I thank you for the time you will spend on these matters. Please call me if I can help in any way. Sincerely, Charles A. Brown Finance Director CAB/vj Enclosure sIV,�o-/ KENAI PENINSULA BOROUGH REGULAR ASSEMBLY MEETING JANUARY 6, 1987; 7:30 P.M. BOROUGH ADMINISTRATION BUILDING SOLDOTNA, ALASKA--,--,, A G E N/rrr�A t/4 It U Ass 01-1 A. CALL TO ORDER CO Nash c Phillips B. PLEDGE OF ALLEGIANCE Keene C Walli C. INVOCATION: Scott Franchino, C> Bre -�Mullen Peninsula Grace re6h Crawford Moore D. ROLL CALL Carey Glick E. VACANCY, DESIGNATION OR SEATING OF ASSEMBLYME14BERS Sewall McGahan F. APPROVAL OF MINUTES: December 16, 1986 & BOA Mins. O'Connell Fandel G. COMMITTEE REPORTS Skogstad McLane Johnson (a) Finance (Crawford, Carey, O'Connell, Nash, Fandel, Johnson) ( b ) Lands/Resources (Skogs-tad, Johnson, McGahan, Mullen) (c) Legislative/Policies (Glick, Phillips, Carey, Crawford) (d) Local Affairs (Moore, Phillips, Fandel, Mullen, Walli) (e) Public Works/Education (McLane, Skogstad, Walli, McGahan, Keene) M Data Processing (Johnson) H. MOTIONS TO RECONSIDER • (a) Ord. 86-91 "Authorizing Conveyance of Borough Patented Lands Located Within Section 17, T7N, R11W, S.M., Alaska" (Mayor) MTR CRAWFORD I. AGENDA APPROVAL AND CONSENT AGENDA (a) Appointment of -Loretta Breeden to the Central Peninsula Hospital Service Area Board J. ORDINANCE HEARINGS (a) Ord. 86-100(AM) "To Reduce the Assembly Membership Upon Adoption of a Districting Plan for This Reduced Membership" (Mullen) (b) Ord. 86-103 "Amending KPB 1.12 to Clarify the Form Requirements of Ordinances and Resolutions" (Nash) (c) Ord. 86-104 "Amending the Land Uses Allowed Table of the Seward Urban District Zoning Code" (Mayor) K. INTRODUCTION OF ORDINANCES (a) Ord. 87-1 "Altering the Boundaries Ridgeway/Sterling Fire Service Area" (Mayor) (b) Ord. 87-2 "Appropriating $100,000 to the East Kenai Peninsu a Road Maintenance Service Area for the Construction of Lost Creek Bridge" (Mayor) (c) Ord. 87-3 "Accepting a Grant From the State of Alaska For n-t a -Job Training at North Peninsula Recreation Service Area" (Mayor) (d) Ord. 87-4 "Appropriating $100,000 to the South Kenai een�insu a Road Maintenance Service Area for the Construction of Dorothy Road Bridge" (Mayor) L. CONSIDERATION OF RESOLUTIONS a (a) Res. 86-146 "Urging the Alaska Legislature to Amend the unic pal Taxation Laws to Provide the Same Assessment from Time of Purchase Until the Property Is Sold" (McGahan) (b) Res. 86-157 "Relinquishing Certain Borough Selected -:. Lands Eocated Within Section 17, Township 7 North, ` Range 11 West, S.M., Alaska" (Mayor) (c) Res. 86-164 "Authorizing the Settlement with Oteco in the AmFunt of $95,382 for Site Work at Kenai Elementary School" (Mayor) (d) Res. 86-166 "Approving the Naming of the 1985 School Bond ...Project and Authorizing the General Contractors on the t 1985 School Bond Projects that were Formerly Called -- Central Peninsula High School, Nikiski High School, ; Nikiski Elementary School, Kenai Elementary School and ; Hope School to Proceed with Contract Requirements to Order and Install Permanent School Signs" (Mayor) i (e) Res. 87-1 "Correcting the Boundaries of the Soldotna an to Match Correct Topographical Information" (Mayor @ Req. Waste Disposal Commission) (f) Res. 87-2 "Approving the Installation of One Additional onitor ng Well Down Gradient of the Soldotna Landfill Site" (Mayor @ Req. Waste Disposal Commission) (R) Res. 87-3 "Declaring Articles of Clothing Belonging to the North Peninsula Recreation Service Area as Surplus Property and Authorizing the Sale of the Clothing' (Mayor @ Req. N.P.R.S.A.) M. PENDING LEGISLATION F (This item lists legislation which will be addressed at a later time as noted; not for action this meeting.);' (a) Ord. 86-71 "Stating the Principal Purposes of Kenai Peninsula Borough Computerized Records; Setting Forth - Criteria for Classification of Such Records, According to Access and Processing Requirements; and Providing for the Disposition of Such Classified Records (Johnson) E SUBSTITUTE (Mayor) POSTPONED TO 1-20-87 (b) Ord. 86-85 "Promoting the Furtherance of Local Hire {= Providing Certain Protections for Subcontractors; Reducing School Construction Costs; and Providing for a Construction Ombudsman" (Nash) POSTPONED INDEFINITELY (c) Ord. 86-94 "Establishing Penalties for Violation of KPB 4.06.040 Prohibition on Use of Public Monies to Advocate Passage of a Ballot Proposition" (McGahan) POSTPONED TO 2/17/87 f (d) Ord. 86-101 "Amending KPB 21.12 to Prohibit the Disposal or Storage of Hazardous Waste" (Nash) REAR 1/20/87 REF: WDC (e) Ord. 86-105 "Amending the Borough Code of Ordinances Concerning Assembly Member Tc-rn (if O `E f :e and Election of Assembly Officers" (Moore) HEAR 1/20/87 a -d"11% few � U.S. Department of Transportation Federal Aviation Administration January 7, 1987 Mr. William J. Brighton Manager, City of Kenai 210 Fidalgo Kenai, Alaska 99611 Dear Mr. Brighton: Alaskan Region 1::ryr—o-a 701 C Street, Box 14 Anchorage, Alaska 99513 The Federal Aviation Administration has announced the distribution of federal funds under the Airport and Aimiay Improvement Act of 1982 for fiscal year 1937. Enclosed for your information is a copy of the U.S. Department of Transportation news release. The current year funds available to the City of Kenai are $673, 4 00. The carryover funds from FY 1986 are $624, 894 and the funds from FY 1985 are $395,128, If further information is desired, please contact Sylvia Kobayashi or thyself at 271-5440, Sincerely, 39si t Z $ 473 Liao z Floyd H. Pattison 1 Manager, Planning and Programing branch Airports Division Enclosure 6Oil=: {` Marathon MARATHON Company City of Kenai Post Office Box 580 Kenai, Alaska 99611 Attention: Mr, William J. Brighton City Manager Gentlemen: Natural Gas Division Worldwide Production P.O. Box 3128 Houston, Texas 77253 Telephone 713/629-6600 January 8, 1987 The Gas Sales Agreement dated May 17, 1966, among Marathon Oil Company, Union Oil Company and the City of Kenai, (the Contract) expires after twenty contract years. A "contract year" is defined to mean a period of twelve consecutive months beginning with the first day of the month in which Marathon and Union commenced deliveries of gas to the City. Our records indicate that deliveries under the Contract commenced on February 21, 1967. Thus the Contract expires on January 31, 1987. You are hereby notified that Marathon will make no further deliveries of natural gas to the City of Kenai after January 31, 1987 under the Contract. Marathon has enjoyed its relationship with the City of Kenai and regrets that we were unable to agree on terms for a new contract. We hope that the City enjoys prosperity and growth in the future. SRS:deh.4 xc: Walter E. Nellis Regional Gas Manager Unocal Doyle Jones J. P. Cramer Very truly yours, MARATHON OIL COMPANY By: av 0 S. R. Severy Manager, Northern Region Natural Gas Marketing ro �.� tX cc r A D MAN. o'b o"-`s KF/�'q / .�?' SENIOR SERVICES SECOND QUARTER REPORT 1986-87 F-10-S TOTAL NUl`lBER OF UNDUPLICATED SENIOR CITIZENS SERVED SUPPORTATIVE SERVICES TOTAL NCD'=R OF SENIOR CITIZENS PROVIDED RIDES TOTAL NLZIBER OF RIDES PROVIDED TOTAL NUMBER OF SENIOR CITIZENS PROVIDED ESCORT SERVICES TOTAL NUMBER OF ESCORTS PROVIDED TOTAL NUMBER OF SENIOR CITIZENS PROVIDED REFER SERVICES. TOTAL NUMBER OF SENIOR CITIZENS PROVIDED SHOPPING ASSISTANCE TOTAL NUMBER OF SENIOR CITIZENS PROVIDED HOMEMAKER SERVICE TOTAL NUMBER OF SENIOR CITIZENS PROVIDED HEALTH RELATED ACTIVITY 'DOTAL NUMBER OF SENIORS PROVIDED HOME VISITS TOTAL NUMBER OF HOME VISITS PROVIDED TOTAL NUMBER OF PERSONS PROVIDED TELEPHONE REASSURANCE NUTRITION SERVICES TOTAL NUMBER OF SENIOR CITIZENS PROVIDED CONGJ.EGATE MEALS TOTAL NUMBER OF MEALS SERVED TOTAL NUMBER OF SENIOR PROVIDED HOME DFLI MEALS TOTAL NUMBER OF HOME DELIVERED MEALS SERVED RET.ATED SENIOR ACTIVITIES TOTAL NUMBER OF SENIOR CITIZENS PROVIDED RECREATION TOTAL NUMBER OF SENIOR CITIZENS PROVIDED POTLUCK PARTY ACTIVITY TOTAL NUMBER PROVIDED ART/CRAFT ACTIVITY TOTAL NUMBER OF VOLUNTEERS TOTAL NUMBER OF SENIOR CITIZENS PROVIDED IN -CARE SERVICES TOTAL NUMBER OF PERSONS PROVIDED ADULT DAY CARE SERVICES DONATIONS } MEALS RIDES DAY CARE PROD M GOAL 410 75 2,400 26 750 15 18 15 62 52 82 36 300 2,400 18 520 67111 12 $3,907 275 ACTUAL 466 97 2,671 60 2,062 28 39 28 93 101 175 69 311 3,367 44 974 231 82 14 50 27 13 $4,025 413 1,176 *ALL COUNTS ARE UNDUPLICATED z N F-00-6 KENAI PENINSULA BOROUGH REGULAR ASSEMBLY MEETING MINUTES DECEMBER 2, 1986; 7:30 P.M. BOROUGH ADMINISTRATION BUILDING SOLDOTNA, ALASKA A G E N D A - Page No A. CALL TO ORDER 1 B. PLEDGE OF ALLEGIANCE 1 C. INVOCATION: Rev. Carl Landerholm, North Star United Methodist Church r 1 D. ROLL CALL E. VACANCY, DESIGNATION OR SEATING OF ASSEMBLYMEMBERS F. APPROVAL OF MINUTES: November 18, 1986 1 Appvd G. COMMITTEE REPORTS (a) Finance -- Audit Report -- Price Waterhouse 1 (Crawford, Carey, O'Connell, Nash) (b) Lands/Resources (Skogstad, Fandel, Johnson, McGahan, Mullen) 2 (c) Local Affairs (Moore, Phillips, Fandel, Mullen, Walli) 2 (d) Public Works/Education (McLane, Skogstad, Walli, McGahan , Keene) 2 **REMAINDER OF NOVEMBER 18, 1986 AGENDA** K. CONSIDERATION OF RESOLUTIONS (a) Res. 86-148(AM) "Requesting That the State Delay ssuance o ermits that Would Allow Exploration for Minerals in Cook Inlet South of the Forelands" (Mullen) 2 Adopted* Res. 86-148(Sbst) "Supporting the Issuance of Uffshore Prospecting Permits in Cook Inlet by the State of Alaska" (Mayor) (Motion to amend to) 2 Defeated (b) Res. 86-132(Sbst) "Accepting a Kenai Peninsula Borough Forest esource Management Study" (Nash) 4 Adopted (c) Res. 86-140(Sbst) "Approving Intergovernmental Mu-tual AidAgreements Between Service Areas and Other Service Areas or Government Agencies" (Mayor) 5 Adopted (d) Res. 86-142 "Improving the Road Service System" (Brown) 5 Defeated (e) Res. 86-144 "Accepting Ownership of Lot 16, Block 7 of GoodrichAcres Subdivision No. 2 from Anna L. Goodrich and Classifying the Parcel for Public Use as a Park" (Mayor) 5 Adopted (f) Res. 86-155 "Opposing the Merger of Kenai Peninsula Colleges with the University of Alaska or With Any Other Community College" (Nash) 6 Adopted (g) Res. 86-158 "Electing to Participate in the Retire- ment Incentive Program (RIP), Chapter 26, SLA 1986, and Authorizing the Mayor to Enter Into an Agreement with the Administrator of the Public Employees' Retirement System (PERS) to Fund the Cost of Parti- cipation in the RIP" (Mayor) 6 Adopted (h) Res. 86-160 "Urging Congress to Open the Arctic National Wildlife Refuge to Oil and Gas Exploration and Development" (Mayor) 6 Adopted H. AGENDA APPROVAL AND CONSENT AGENDA Page No. (a) Res. 86-161 "Amending the Allocation of Municipal Grant un s Provided in Res. 86-156 By Transferring $2,384.18 from West Poppy Lane to Robinson Loop Road" (Mayor) 7 Adopted I. ORDINANCE HEARINGS (a) Ord. 86-80(Sbst) "Establishing Code Provisions for Access to Public Records" (P & P Cmte. AMD Nash) 8 Enacted as Amnd. (b) Ord. 86-86 "Amending the Borough Code of Ordinances Respecting Reconsideration of Legislation" (McGahan)9 Enacted as Amnd . (c) Ord. 86-92(Sbst) "Reorganizing and Reestablishing the Resource Development Commission and Recodifying and Amending KPB 2.42 and Requiring Quarterly Report- ing to the Assembly"(Nash/Fandel) 9 Pstpnd to 12/16 (d) Ord. 86-94 "Establishing Penalties for Violation of KPB 4.06.040 Prohibition on Use of Public Monies to Advocate Passage of a Ballot Proposition" (McGahan) 10 Defeated w/MTRecn (e) Ord. 86-96 "Accepting Disaster Relief Funds from E—e7Ttate and Federal Government and Appropriating Those Funds for Relief in Disaster Areas Within the Kenai Peninsula Borough" (Mayor) 10 Enacted J. INTRODUCTION OF ORDINANCES (a) Ord. 86-100(AM) "To Reduce the Assembly Membership Upon Adoption of a Districting Plan for This Reduced Membership" (Mullen) 10 Set Hrng 1/6/87 (b) Ord. 86-103 "Amending KPB 1.12 to Clarify the Form Requirements of Ordinances and Resolutions" (Nash) 10 Set I 1/6/8/ (c) Ord. 86-104 "Amending the Land Uses Allowed Table of the Seward Urban District Zoning Code" (Mayor) 10 Set Hrng 1/6/87 K. CONSIDERATION OF RESOLUTIONS L. M. (a) Res. 86-146 "Urging the Alaska Legislature to Amend the Municipal Taxation Laws to Provide the Same Assessment from Time of Purchase Until the Property Is Sold" (McGahan) 10 Pstpnd to 12/16/86 (b) Res. 86-162 "Regarding the Preparation of the Kenai Peninsula orough School District Budget for Fiscal Year 1987-88" (Nash) 11 Action Incmp 1 t (c) Res. 86-163 "Authorizing the Borough to Apply for a Grant for Development of a Recreation Area and Facilities in the North Peninsula Recreation Service Area" (Mayor) 8 Adopted PENDING LEGISLATION (This item lists legislation which will be addressed at a later time as noted; not for action this meeting.) (a) Ord. 86-71 (Johnson) HEAR 12/16 (b) Ord. 86-85 (Nash) HEAR 12/16 (c) Ord. 86-91 (Mayor) HEARING 12/16/86 (d) Ord. 86-99 (Mayor) HEAR 12/16 (e) Ord. 86-101 (Nash) HEAR 1/20/87 REF: WDC (f) Ord. 86-102 (Mayor) HEAR 12/16/86 FORMAL PRESENTATIONS WITH PRIOR NOTICE UPON SUBJECTS NOT ON THE MEETING AGENDA (a) Knight Drive Representatives 7 (b) Louie March, Local Hire 11 N. PUBLIC COMMENTS AND PUBLIC PRESENTATIONS UPON MATTERS NOT CONTAINED IN THE ASSEMBLY'S AGENDA 0. MAYOR'S REPORT (a) Central Peninsula Waste. Disposal Cost Analysis 11 (b) Dave Brown vs. KPB Suit (c) Lost Creek Bridge replacement (d) *Veto of Res. 148(AM) 12 (e) Seward Flood Emergency Hire P. OTHER BUSINESS (a) Vacation of portion Wolf Trail Lane within Clyde King S/D & Woodland Hills Estates Part Two 12 No Actn. Q. ASSEMBLY AND MAYOR'S COMMENTS 12 R. INFORMATIONAL MATERIALS AND REPORTS S. NOTICE OF NEXT MEETING AND ADJOURNMENT (Dec. 16, 1986) 14 t KENAI PENINSULA BOROUGH REGULAR ASSEMBLY MEETING MINUTES DECEMBER 2, 1986; 7:30 P.M. BOROUGH ADMINISTRATION BUILDING SOLDOTNA, ALASKA A. CALL TO ORDER The regular meeting of the Assembly was called to order by President Jonathan W. Sewall. B. PLEDGE OF ALLEGIANCE C. INVOCATION The invocation was given by Rev. Carl Landerholm, pastor of the North Star United Methodist Church. D. ROLL CALL PRESENT: Assemblymembers Nash, Phillips, Walli, Mullen, Crawford, Moore, Carey, Glick, Sewall, O'Connell, Skogstad, Fandel., McLane and Johnson; Mayor Thompson, Atty. Boedeker, Finance Director Barton, Borough Clerk Brindley EXCUSED: Assemblymembers Keene and McGahan E. VACANCY, DESIGNATION OR SEATING OF ASSEMBLYMEMBERS F. APPROVAL OF MINUTES The minutes of the regular meeting of November 18, 1986 were approved as written. G. COMMITTEE REPORTS (a) Finance (Crawford, Carey, O'Connell, Nash) Mr. Crawford introduced representatives from Price Waterhouse in presentation of the FY 1985-86 Annual Audit. Jim Feeney referred to the comprehensive Borough report, stating reports are also provided for both the Central and South Peninsula Hospitals and Bear Creek Fire Service Area. He stated the combined financial statements present fairly the financial position of the Borough and the results of its operations. He stated a new area of reporting was required this year under the single audit concept which meant that one firm (in this case Price Waterhouse) would audit federal and state funds along with local funds. This will save later audits by several other agencies. Marianne Burke, manager of the Borough's account, referred to the management report which includes suggestions for improving efficiency or internal controls. She stated the report does not identify any material weaknesses of system of the borough, school district, or service areas, however some recommendations for improvement are noted. She stated it was getting more difficult to find areas to improve, this year only three. One is that a single individual be made responsible for the numerous requirements of federal and state grant regulations. Another is a review of service area director's minutes in a timely manner so corrective action can be taken if it is appropriate. Thirdly, the delinquent sales tax problem increases with difficult times and accounts should be prioritized. The recommendations made last year are all in process of implementation. In answer to a question, Ms. Burke stated income or loss from hospital operations are controllable. Central Peninsula Hospital is generating enough income to meet expenses but South Peninsula Hospital lost in excess of $1.2million last year. Either the income from patients will have to be increased, expenses decreased or they will face an increase in taxes. She stated under third party - 1 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 reimbursement rules, as subsidies (property taxes) are increased, th amount third parties such as Medicare will reimburse is decreased, st- there is a domino effect. She stated the increase in operational cost has been consistent. (b) Lands/Resources (Skogstad, Fandel, Johnson, McGahan, Mullen) Mr. Skogstad reported the committee met and studied a draft timber resource ordinance which will implement the plan addressed in Res. 86-132. They also requested a resolution be prepared for the 16th to provide for a timber sale in the near future. Also considered was the report on future waste disposal sites and options as to location. (c) Local Affairs (Moore, Phillips, Fandel, Mullen, Walli) Mr. Moore expressed optimism for the coming year with appointed membership; all discussion was on agenda items. (d) Public Works/Education (McLane, Skogstad, Walli, McGahan, Keene) Mr. McLane reported other than agenda items, the committee discussed the road program draft and 1987 priorities and capital project list. **REMAINDER OF NOVEMBER 18,.1986 AGENDA** K. CONSIDERATION OF RESOLUTIONS (a) Res. 86-148(AM) "Requesting That the State Delay Issuance of Pe—rmits that Would Allow Exploration for Minerals in Cook Inlet South of the Forelands" (Mullen) Res. 86-148 (Sbst) "Supporting the Issuance of Offshore Prospecting Permits in Cook Inlet by the State of Alaska" (Mayor) Pres. Sewall asked that public testimony be restricted to those who had not addressed the issue at a prior meeting and that Assembly members hold questions until after public comment. Dennis Ste f , 17 year resident of the Peninsula and U of A post - employment training in the mining and petroleum industry statewide. He supported the Mayor's substitute to support issuance of prospecting permits. He reported his involvement with Inspiration Mining Co. in Nome last summer and requested permission to show via slides some of the aspects of that training and start-up operation. He reported training local residents who had not been in a classroom for 20 years to do tasks required on the barge. He stated mining had become the backbone of the Nome economy with 7 companies now mining. He reported there were a lot of environmental concerns there too, but at the end of the season in September, none of the marine life seemed to be disturbed. He urged support for the prospecting in Cook Inlet believing as a resident of the area and part-time commercial fisher- man there would be no adverse effect. Leo T. Oberts, Kenai, stated with the unemployment factor at 17%, every source of economic development should be considered. He stressed the proposal only addresses prospecting, not mining, and with the rising cost of government and subsequently taxes, additional economic base was critically needed. Roland Lind, Kenai, supported the substitute as well, being aware of the number of applications and permits required prior to allowing evenprospecting. Evidence of Aspen Exploration's cognizance of the requirements was the 11 point program proposed of steps to be taken He noted Substitute #2 details the stipulations that would have to be met which satisfied his fears concerning protection of the fishery. - 2 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 Mr. Lind pointed to the voter approval of industrial revenue bonds for coal development as proof they support new industry and diversification. He felt a negative vote would be an indication to industry that this government is not interested in development, noting the unemployment rate is the highest in the state. Louie March, Seward, supported Substitute #2 for the jobs which had been promised. He stated the number of unemployed increased by 1,000 from September to October and he felt any development should be encouraged. ASSEMBLYMEMBER MULLEN MOVED THE ADOPTION OF RES. 86-148(AM). He reported having received many calls from people willing to testify against the proposal but he had understood public comment had ended. He referred to letters and a 70 page document submitted to DNR by ADF&G relating to the issue which contains biological data and other sound reasoning against prospecting. He noted this is a high use area where both sport and commercial fishermen profit from halibut and salmon fishing as well as being a popular tourist attraction. Prospecting should be limited to areas north of Forelands even with the promise of needed jobs and income. He reported contacting the Inspiration Mining personnel officer and learning that 66 people operate the dredge reported to be 1/3 larger than what would be operating in Cook Inlet, including 10 onshore persons. Statements in the proposal regarding 150-200 employees did not seem accurate; more likely 44 would be needed. The Nome project employs 64% local people although 80% local were promised in the Cook Inlet proposal. He did not feel 34 jobs were worth the potential risk to the established renewable resource industry. The chosen location is between two critical habitat areas and cannot be compared with the minimal fishery in Nome. } Mrs. Walli spoke in support of 86-148(AM)� and read portions of a letter from the Ninilchik Chamber of Commerce which asked questions regarding the short life of the exploration company and what restrictions would be placed on the mining company to follow if the prospecting proved successful, noting in applying for 50-60 permits, Aspen involves 300,000 acres. They also requested a public hearing be held in the adjoining area with representatives of DNR, ADF&G, Aspen Exploration, the Borough and the Peninsula Fishermen's Coop Assoc. Political and Action Committee. ASSEMBLYMEMBER NASH MOVED TO AMEND TO RES. 86-148(SBST. #2) WITH CORRECTION TO TWO TYPOGRAPHICAL ERRORS (1) DELETE "old" FROM THE 1st WHEREAS AND IN SECTION lA CHANGE "Natural Resources Commission" TO "Resource Development Commission". Mr. Nash stated when this proposal came before the Assembly a year ago he voted against it but he had changed his mind in light of the economy at this time and restrictions that Aspen Exploration was willing to impose on itself. Mr. Carey spoke in support of the amendment, noting when oil exploration came to the Inlet the same fears for the fishery were voiced, but they were not realized. With the tremendous tidal action in the Inlet there is a huge amount of movement on the bottom. He urged a compromise be sought wherein because of the important established fishing industry this zone be denied but prospecting in other areas of the Inlet would be encouraged. Mr. Mullen reported the Alaska Board of Fish today made a decision that will drastically change the eastside Inlet setnet fishery as well as the drift fishery. He felt approval of this resolution in addition would be more than the industry could handle. Mrs. Glick supported Substitute #2 noting it speaks to exploration only and if successful, another evaluation would be made on what was learned from the exploration process. A "catch 22" situation seemed to result from the lack of knowledge of the Inlet floor in order to judge whether the permits should be issued. - 3 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 Mr. Moore noted a restriction in 86-148(Sbst. #2) that no more than 450 acres would be mined annually, but reported a biologist ha stated sedimentation can expand the area of disturbance 4-5 times the amount dredged. He commented. the fishing industry has been providing income to the area for many years and the new proposal was too risky. In reply to questions, Mayor Thompson stated the Subst. #2 was basically drawn up by Aspen as their proposal, reviewed by himself and the attorney. Mr. O'Connell questioned how an agreement made with the Mayor would effect their ability to get a permit from the State or insure the precautionary steps would be part of the permit. He also questioned the makeup of the steering committee, who would appoint, and whether there would be 'any net* profits from which to take 3% to be used toward better understanding of the marine biology of the Inlet, until sufficient years have passed to ascertain if mining operations have done damage to the fishery. The dislocation of the terrain by a dredge is 100%. Mr. Fandel supported the Subst. #2 noting that following the institution of a limited entry program to disallow outside fishermen it was hoped a limited industries program would prevail as well. Mr. Johnson spoke to statements of risk involved, stating in any investment or development there is risk set off by rewards. It seems if an exploration company is willing use their money to do what the state biologist should do, they should be allowed to proceed. He spoke against the distrust expressed and look at what is good for the borough as a whole, asking where the state would be if oil explora- tion had not been allowed. Mayor Thompson recalled having fished the Inlet commercially since 1948 and has 4 sons still involved. He could see no way the proposal would be damaging and every job gained is needed. He had also spoken contrary to the fishing industry when oil production in Cook Inlet was proposed and it has not proven harmful. He urged the Assembly to allow Aspen to explore. VOTE WAS CALLED ON THE NASH AMENDMENT WHICH FAILED BY A VOTE OF 6 YES TO 8 NO; Nash, Carey, Glick, Fandel, McLane and Johnson voting Yes. ASSEMBLYMEMBER MOORE MOVED TO AMEND RES. 86-148(AM) BY CORRECTING THE NAMES OF THE LEGISLATORS TO THOSE NEWLY ELECTED AND IT WAS APPROVED BY UNANIMOUS CONSENT. RES. 86-148(AM) WAS ADOPTED BY A VOTE OF 10 YES TO 4 NO; Nash, Glick, Fandel and Johnson voting No. (b) Res. 86-132(Sbst) "Accepting a Kenai Peninsula Borough Forest Resource Management Study" (Nash) Mark Jensen, Kasilof Wilderness Subd., reported he is beginning the t it year of listening to chain saws 7 days a week resulting from a timber sale which should have been finished a year ago. He stated he is not against a timber management plan but he could find no protection in it for people who live on adjoining property. He reported having spent $5,000 to have surveying done and damage estimated following loggers cutting approximately 500 feet into private land. With no supervision from the Borough, and loggers not able to afford surveyors, grave mistakes are made. ASSEMBLYMEMBER NASH MOVED THE ADOPTION OF RES. 86-132(SBST). Mr. Skogstad reported the Lands Cmte. recommended adoption of the substitute with ordinance to follow outlining in detail the implementation of the plan. They were aware of problems described by Mr. Jensen as well as some others that have been reported which they intend will not happen again. Mr. Nash recalled in 1984 the Assembly enacted the ordinance for timber resources which has never been implemented in that it required adoption of a plan which included an inventory, use trends, areas of - 4 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 21, 1986 fire or beetle kill, previous timber sales, the terms, conditions and limitations of permits for that year. That information was to go to the Planning Cmsn, for review, public hearing, and setting of fees. He stated the document before the Assembly is not ready for approval and the Substitute would accept, rather than approve the contract. He hoped the administration would take the base document and build the program according to the ordinance. Mr. Johnson stated there is a state statute that specifically awards trouble damages for tree cutting on private property. Timber contractors should be made aware of this liability. MR. McLANE REQUESTED UNANIMOUS CONSENT TO ADOPT AND THERE WAS NO OBJECTION. (c) Res. 86-140 "Approving Intergovernmental Mutual Aid Agreements Between Service Areas and Other Service Areas or Government Agencies" (Mayor) & SUBSTITUTE ASSEMBLYMEMBER MOORE MOVED THE ADOPTION OF RES. 86-140(SBST). Mr. Moore reported the Local Affairs Cmte. recommended adoption of the Substitute which eliminates some agreements which are not quite cleared by the Legal Dept. and the agreement between Kalifornsky Fire and Central Emergency Services is complete as written. He noted (Substitute) should be added to the signature Page 11. RES. 86-140(SBST) WAS ADOPTED BY UNANIMOUS CONSENT. (d) Res. 86-142 "Improving the Road Service System" rown ASSEMBLYMEMBER CAREY MOVED THE ADOPTION OF RES. 86-142. Mr. McLane reported the Public Works Cmte. recommends do not pass. Mr. Moore stated the Local Affairs Cm te. also recommends do not pass. RES. 86-142 WAS DEFEATED BY UNANIMOUS VOTE. (e) Res. 86-144 "Accepting Ownership of Lot 16, Block 7 of Goodrich Acres Subdivision No. 2 from Anna L. Goodrich and Classifying the Parcel for Public Use as a Park" (Mayor) LOCAL AFFAIRS/LANDS CMTE. ASSEMBLYMEMBER SKOGSTAD MOVED THE ADOPTION OF RES. 86-144. Mr. Skogstad reported the Lands Cmte. recommends adoption. Mr. Moore reported the Local Affairs Cmte. recommends adoption as well having questions regarding park powers and liability answered. In answer to questions, Mr. Boedeker stated in spite of the fact the Borough does not have authority to do anything with the parcel without approval of park powers but there is no prohibition of accepting land for its use. The negative side was expressed as an addition to nontaxable list of property which outweighs the taxable portion in the Borough. RES. 8 6 -14 4 WAS ADOPTED BY A VOTE OF 9 YES TO 5 NO; Nash, Phillips, O'Connell, Fandel and Johnson voting No. Mrs. Phillips askedif the Borough has a procedure for expressing appreciation for this type of act. Pres. Sewall stated he could draft a letter to the estate of Mrs. Goodrich if the Assembly so desired. ASSEMBLYMEMBER PHILLIPS MOVED A LETTER OF APPRECIATION BE SENT TO THE ESTATE AND THE MOTION WAS APPROVED BY A VOTE OF 10 YES TO 4 NO; Nash, Moore, Sewall and Johnson voting No. - 5 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 (f) Res. 86-155 "Opposing the Merger of Kenai Peninsula Colleges with the University of Alaska or With Any Other Community College" (Nash) LOCAL AFFAIRS CMTE. Leo T. Oberts, Kenai, supported the resolution for its value in vocational training. He reported the local school has the lowest operating cost of any of the Alaska colleges. Budget cuts could better take place at the two University schools that are much less cost efficient. Leroy Barton, Soldotna, member of the KPCC Council, stated there should be more stud of the subject. The administration y � for the community colleges in Alaska includes more people than the community colleges for the State of California. ASSEMBLYMEMBER NASH MOVED THE ADOPTION OF RES. 86-155 WITH AN AMENDMENT TO INCLUDE THE GOVERNOR, SEN. FISCHER AND REPS. NAVARRE AND SWACKHAMMER. Mr. Moore reported Local Affairs Cmte. strongly supported Res. 86-155 as the community college was too long in coming to be cut back so quickly. Mr. Nash reported the Legislature appropriates approximately twice as much per student for every student in the Univ. of Alaska than it would cost to send that student to any of the state colleges outside. He felt the community colleges the most valuable and cost efficient. ASSEMBLYMEMBER MOORE MOVED TO HAVE ADDED ALL THE NAMES OF PENINSULA REPRESENTATIVES AND SENATORS; IT WAS APPROVED BY UNANIMOUS CONSENT. RES. 86-155 WAS ADOPTED BY UNANIMOUS CONSENT. (g) Res. 86-158 "Electing to Participate in the Retire- ment IncenFive Program (RIP), Chapter 26, SLA 1986, and Authorizing the Mayor to Enter Into an Agreement with the Administrator of the Public Employees' Retirement System (PERS) to Fund the Cost of Parti- cipation in the RIP" (Mayor) ASSEMBLYMEMBER CRAWFORD MOVED THE ADOPTION OF RES. 86-158. Mr. Crawford reported the Finance Cmte. discussed and approved the resolution as it could result in a savings for the Borough. ASSEMBLYMEMBER CAREY MOVED TO AMEND SECTION 1 BY ADDING AFTER "units", "except elected officials" AS RECOMMENDED BY THE FINANCE COMTE. THE AMENDMENT WAS APPROVED BY UNANIMOUS CONSENT. Mr. Careystated the program would seem to give a benefit at a time of declining revenue, and he was not sure it would be productive. RES. 86-158 WAS ADOPTED BY A VOTE OF 13 YES TO 1 NO; Skogstad voting No. (h) Res. 86-160 "Urging Congress to Open the Arctic National Wildlife Refuge to Oil and Gas Exploration and Development" (Mayor) Leo T. Oberts, Kenai, spoke in favor of the resolution, noting newspaper reports indicate the U.S, continues to import more and more oil. He felt that to insure against another oil embargo, exploration should go forward. He stated it is necessary for Alaska and the National economy as well. ASSEMBLYMEMBER GLICK MOVED THE ADOPTION OF RES. 86-160. Mrs. Glick reported the Mayor of the North Slope Borough is alsr supporting exploration of this area as is the Governor. If oil ik. found it will be 8-10 years before production begins. She addressed the need for jobs and boost to the economy. - 6 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 Mr. Moore reported the Local Affairs Cmte. supports the resolution with an amendment. ASSEMBLYMEMBER MOORE MOVED TO AMEND BY ADDING A NEW SECTION 2 TO READ: "The KPB Assembly encourages Congress to preserve the 240,000 acres considered to be the core area for the porcupine/caribou calving grounds." RENUMBERING EXISTING SECTION 2. Mr. Mullen reported this was recommended by a report from the Dept. of Interior; it represents less than 2% of the 19 million acres. THE MOORE AMENDMENT FAILED BY A VOTE OF 7 YES TO 7 NO; Phillips, Mullen, Crawford, Moore, Glick, Sewall. and Skogstad voting Yes. RES. 86-160 WAS ADOPTED BY A VOTE OF 13 YES TO 1 NO; Walli voting No. Pres. Sewall called a 15 minute recess. H. AGENDA APPROVAL AND CONSENT AGENDA : Pres. Sewall requested the vacation proceeding be moved to Item P, Other Business as it did not have a unanimous recommendation from the Planning Commission. Mrs. Glick asked that the Knight Drive representatives be moved from Item M to speak prior to Item I and there was no objection. (b) Res. 86-161 "Amending the Allocation of Municipal Grant- Funds Provided in Res. 86-156 By Transferring $2,384.18 from West Poppy Lane to Robinson Loop Road" (Mayor) Res. 86-161 was adopted with the Consent Agenda and the agenda was approved with consideration of Res. 86-163 moved to follow the Knight Drive presentation. ** (a) Knight Drive Representatives ** Danette Kebshull, residing on Knight Dr., asked the Assembly to place paving o -Knight Drive at the top of the road priority list. She stated the impetus for the request was the safety of the children on the road, particularly in the summer when the dust is so thick visibility is less than the width of the road. In the winter, lighting is inadequate for children waiting for the school bus. The road has been recognized as a problem for many years; funds allocated twice for engineering and design work.* $45 , 000 was spent and all that remains is the construction. Mr. Underkofler, Soldotna City Manager, stated it would cost $1.2 million and is #3 on the city's priority list. If it were also placed high on the Borough's list, construction costs could be split since it is the city boundary. The road provides access to sport fishing at Poacher's Cove and a busy gravel pit. The improvement would benefit tourism as well as several businesses located there. She presented the Clerk with an advisory petition with the signatures of 58 residents. Vern Gehrke, Soldotna, Knight Ct., Soldotna, reported he has lived at the en of Knight Dr. for more than 20 years. He stated the City dug out the road from Kobuk to the bottom of the hill to bedrock and replaced with D-1 and greatly improved it. He had worked since 1967 to get improvements made beginning with private donations. He stated it is one of the oldest and busiest roads on the Peninsula and is only 1 mile long. He urged the Assembly do act on its behalf. He stated the design work was done as a City/Borough project 3 years ago. Do le Jow, ers, KnightDr. & Irons Rd., reported the road has been a problem since he arrived in 1961. He asked that the project be moved to a top priority position. - 7 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 Dave Johnson, Knight Dr. & Marshall, 3 year resident, stated he ha Fe—a—rZ many promises concerning improvement and asked what could b, done about it. He addressed the extreme dust problem in the summer. Pres. Sewall stated the Public Works Cmte. and Assembly would be looking at the road priority list in the coming weeks. (c) Res. 86-163 "Authorizing the Borough to Apply for a Grant for Development of a Recreation Area and Facilities in the North Peninsula Recreation Service Area" (Mayor) (Taken up earlier) ASSEMBLYMEMBER MOORE MOVED THE ADOPTION OF RES. 86-163 AS RECOMMENDED BY THE LOCAL AFFAIRS CMTE. NRSA Board Member Johnson reported the plan included the development of a trail system and a small fishing area on a lake that has been planted by ADF&G available by foot only. The grant is specifically for this type of use. If it is received, matching funds would come out of next year's budget without increasing the mill rate. RES. 86-163 WAS APPROVED BY UNANIMOUS CONSENT. I. ORDINANCE HEARINGS (a) Ord. 86-80 "Establishing Code Provisions for Access to Public Records" (P & P Cmte) & Ord. 86-80(Sbst) (includes amendments proposed by Assm. Nas Joan Bennett -Schrader, Kenai, stated the ordinance is lengthy, deals with a number of civil liberties problems and she asked the Assembly to hold hearings on the ordinance throughout the Borough with both versions available to the public. ASSEMBLYMEMBER NASH MOVED THE ENACTMENT OF ORD. 86-80(Sbst). Mr. Moore reported Local Affairs Cmte. reviewed and supported passage of the ordinance with amendment. Mr. Nash stated the amendments contained in the Substitute have been available for several meetings. ASSEMBLYMEMBER NASH TO AMEND 2.54.040 C BY ADDING "average" BETWEEN and "cost" cost AND allocated in the budget FOLLOWING "benefits", PARAGRAPH J WOULD REMAIN AS WRITTEN PRIOR TO THE SUBSTITUTE, AND DELETE SECTION 2.54.080 APPEAL. ASSEMBLYMEMBER MOORE MOVED TO AMEND SECTION 2.54.060 A 1 BY DELETING WORDING FOLLOWING "records" AND IN 2.54.070 B, CHANGE "will" TO "may" AT THE END OF THE 5th LINE AS RECOMMENDED BY THE MEMO FROM THE LEGAL DEPT. ASSEMBLYMEMBER CAREY MOVED THE POSTPONEMENT OF ORD. 86-80 AND SUBSTITUTE UNTIL THE DECEMBER 16 MEETING DUE TO NONPROVISION OF THE SUBSTITUTE TO THE PUBLIC. Mr. McLane spoke against postponement and for proceeding with the agenda expeditiously. POSTPONEMENT WAS DEFEATED BY A VOTE OF 4 YES TO 10 NO; Walli, Mullen, Moore and Carey voting Yes. THE MOORE AMENDMENT WAS APPROVED BY A VOTE OF 12 YES TO 2 NO; Nash and O'Connell voting No. ASSEMBLYMEMBER NASH MOVED TO STRIKE "or the assembly" FROM 2.54.070; AS PART OF HIS AMENDMENT. ASSEMBLYMEMBER O'CONNELL MOVED TO AMEND 2.54.070 C BY STRIKING "or assembly projects" AT THE END OF THE PARAGRAPH. - 8 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 There was discussion of the possible legal or practical problems with deciding eligibility for waiving costs with listing types of groups. THE O'CONNELL AMENDMENT FAILED BY A VOTE OF 6 YES TO 8 NO; Mullen, Carey, Sewall, O'Connell, Skogstad and Fandel voting Yes. ASSEMBLYMEMBER MOORE MOVED TO AMEND 2.54.070 C BY ADDING "and expenses when in the best interests of the Borough" AFTER "costs" AND STRIKING THE REMAINDER OF THE PARAGRAPH. MOTION APPROVED BY A VOTE OF 13 YES TO 1 NO; Carey voting No. THE NASH AMENDMENT WAS APPROVED BY UNANIMOUS CONSENT. ORD. 86-80(SBST) AS AMENDED WAS ENACTED BY A VOTE OF 12 YES TO 2 NO; O'Connell and Skogstad voting No. (b) Ord. 86-86 "Amending the Borough Code of Ordinances Respecting Reconsideration of Legislation" (McGahan) There was no public comment. ASSEMBLYMEMBER GLICK MOVED THE ENACTMENT OF ORD. 86-86 ON BEHALF OF MRS. McGAHAN. Mr. Moore felt there was confusion at the last meeting concerning this ordinance. It is intended only to provide a place on the agenda where items upon which a notice of reconsideration has been given will be heard at a specific time; they have tended to get lost in the past when agendas have not been completed. Mr. Boedeker explained if notice of reconsideration has been given, nothing compels the making of that motion at the next meeting, but if it is not done at that meeting, the opportunity to reconsider is 1 lost. If a meeting were continued to a later date, the motion would not die but if there is adjournment, it would. ASSEMBLYMEMBER NASH MOVED TO AMEND BY MOVING THE "Motions to reconsider" TO ITEM I, AHEAD OF "ORDINANCE HEARINGS" AND IT WAS APPROVED BY UNANIMOUS CONSENT. Mrs. Glick commented the provision of a motion to rescind is always available if the motion to reconsider is not which has the same effect. Mr. Moore did not feel it was an alternative since the ability to modify or change would not exist with a motion to rescind. ORD. 86-86 WAS ENACTED BY A VOTE OF 10 YES TO 4 NO; Walli, Mullen, Carey and O'Connell voting No. (c) Ord. 86-92(Sbst) "Reorganizing and Reestablishing the Resource Development Commission and Recodifying and Amending KPB 2.42 and Requiring Quarterly Report- ing to the Assembly"(Nash/Fandel) Leo T. Oberts, Kenai, suggested the ordinance could call for more aggressive action whereby investors would be sought out and Borough employees be instructed to help in validating ideas as they come up. He also believed only people with private business experience should be appointed to the Commission and a statement that the Assembly favors resource development should be included. ASSEMBLYMEMBER NASH MOVED THE ENACTMENT OF ORD. 86-92(SBST). Mr. Nash reported some ideas along the lines of Mr. Oberts comments were expressed at the AML Conference which he would like to add in to the ordinance. ASSEMBLYMEMBER NASH MOVED TO POSTPONE ORD. 86-92(SBST) UNTIL DEC. 16 AND IT WAS APPROVED BY UNANIMOUS CONSENT. - 9 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 (d) Ord. 86-94 "Establishing Penalties for Violation of KPB 40 Prohibition on Use of Public Monies to Advocate Passage of a Ballot Proposition" (McGahan) There was no public comment. ASSEMBLYMEMBER MOORE MOVED THE ENACTMENT OF ORD. 86-94. Mr. Boedeker answered a question as to amount of fine by stating the borough would have the right to go to court to obtain conviction to impose a fine regardless of the amount. Fines generally are imposed as a deterrent, not a money maker to offset cost of prosecution. Mrs. Walli spoke against the ordinance, believing violations of the ordinance were unintentional. ORD. 86-94 WAS DEFEATED BY A VOTE OF 3 YES TO 11 NO; Phillips, Moore and Fandel voting Yes. MR. MOORE GAVE NOTICE OF RECONSIDERATION. (e) Ord. 86-96 "Accepting Disaster Relief Funds from t e Late and Federal Government and Appropriating Those Funds for Relief in Disaster Areas Within the Kenai Peninsula Borough" (Mayor) There was no public comment. ASSEMBLYMEMBER SKOGSTAD MOVED THE ENACTMENT OF ORD. 86-96 AND THERE WAS NO OBJECTION TO UNANIMOUS CONSENT, FINANCE CMTE. RECOMMENDING DO PASS. J. INTRODUCTION OF ORDINANCES (a) Ord. 86-100(AM) "To Reduce the Assembly Membership Upon Adoption of a Districting Plan for This Reduced Membership" (Mullen) Pres. Sewall noted Ord. 86-100 was amended at introduction November 18 but not set for hearing. ASSEMBLYMEMBER MULLEN MOVED TO SET ORD. 86-100(AM) FOR HEARING ON JANUARY 6, 1987.- Mr. Mullen stated his belief that a smaller assembly would provide for greater efficiency, more fairness and improvement in the overall quality of assembly functions. ORD. 86-100(AM) WAS SET FOR HEARING BY A VOTE OF 10 YES TO 4 NO; Nash, Moore, Skogstad and Fandel voting No. (b) Ord. 86-103 "Amending KPB 1.12 to Clarify the Form Requirements of Ordinances and Resolutions" (Nash) ASSEMBLYMEMBER NASH MOVED TO SET ORD. 86-103 FOR HEARING ON JANUARY 6, 1987 AND IT WAS APPROVED BY UNANIMOUS CONSENT. (c) Ord. 86-104 "Amending the Land Uses Allowed Table of the Seward Urban District Zoning Code" (Mayor) ASSEMBLYMEMBER GLICK MOVED TO SET ORD. 86-104 FOR HEARING ON JANUARY 61 1987 AND IT WAS APPROVED BY UNANIMOUS CONSENT AS RECOMMENDED BY THE LANDS CMTE. K. CONSIDERATION OF RESOLUTIONS (a) Res. 86-146 "Urging the Alaska Legislature to Amend the unicipal Taxation Laws to Provide the Same Assessment from Time of Purchase Until the Property Is Sold" (McGahan) - 10 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 Pres. Sewall stated Mrs. McGahan had asked this be postponed until December 16 and so ordered. (b) Res. 86-162 "Regarding the Preparation of the Kenai Peninsula lorough School District Budget for Fiscal Year 1987-88" (Nash) ASSEMBLYMEMBER NASH MOVED THE ADOPTION OF RES. 86-162 WITH A CHANGE OF "prepare" TO "include" IN SECTION 1. Mr. Nash stated the purpose of the resolution is to request the school district administration to provide .along with the usual budget, also a budget based on the same local share as what was actually received this year. It does not necessarily mean that it would be approved, but it could be used as a comparison. Mr. Crawford reported Finance Cmte. recommended "do not pass" ASSEMBLYMEMBER CAREY MOVED TO DELETE THE 2nd WHEREAS. MR. NASH STATED HE AGREED AND WOULD INCORPORATE IT IN HIS MOTION TO ADOPT. ** Before the vote could be taken, the midnight deadline for legislative action arrived. L. PENDING LEGISLATION (This item lists legislation which will be addressed at a later time as noted; not for action this meeting.) (a) Ord. 86-71 (Johnson) HEAR 12/16 (b) Ord. 86-85 (Nash) HEAR 12/16 (c) Ord. 86-91 (Mayor) HEARING 12/16/86 (d) Ord. 86-99 (Mayor) HEARING 12/16 (e) Ord. 86-101 (Nash) HEAR 1/20/87 REF: WDC (f) Ord. 86-102 (Mayor) HEAR 12/16/86 M. FORMAL PRESENTATIONS WITH PRIOR NOTICE UPON SUBJECTS NOT ON THE MEETING AGENDA (b) Louie March, Local Hire Mr. March addressed the failure of local hire to be demonstrated during the flood disaster in Seward. He felt there was favoritism shown in the hiring of 9 public officials. He stated on Nov. 4 he was told by the coordinator for the State emergency response department that no hirings were done through the State. All hiring was done through the City of Seward and Borough and he did not believe, with the help received from the Coast Guard there was sufficient emergency that the hiring could not have been done through the State Job Service. There were 55 unemployed, qualified residents who would like to have had a chance at those jobs. He cited comments in the Seward Phoenix Log to support his position. He recommended steps be taken to insure (1) no City official should be allowed to take jobs from local unemployed people and (2) the City of Seward and the Borough should be compelled to go through Job Service for emergency jobs. N. PUBLIC COMMENTS AND PUBLIC PRESENTATIONS UPON MATTERS NOT CONTAINED IN THE ASSEMBLY'S AGENDA 0. MAYOR'S REPORT (a) Memo: Central Peninsula Waste Disposal Cost Analysis Mayor Thompson asked the Assembly to review the informational memo, stating he would be coming back with a proposal at a later time. (b) Dave Brown vs. KPB Suit KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 Mayor Thompson reported the Borough has not been served to date an did not have any information on the Sterling Special Waste Site suit, beyond the newspaper story. There are 52 defendants in the suit. (c) Lost Creek Bridge replacement Mr. Thompson reported he was informed by FEMA yesterday that before they will fund the replacement the Borough will need to design a longer one, as the Creek is wider. After approval it will go to bid and he estimated it could be constructed before March 1, which is the low water period for the Creek. It is uncertain whether the bridge will be approved as a one or two lane bridge. (d) Veto of Res. 86-148(AM) The Mayor announced he was vetoing the Assembly's action in adopting the resolution. (e) Seward Flood emergency hire TheMayor stated his understanding was that the Borough did no hiring; the State did, but he would double check. Pres. Sewall noted one other area of concern in regard to the flood was mitigation work in the streams to preclude another flood, which had to be done before the salmon are in the streams. The Mayor reported permits are being applied for from the Corps of Engineers in order to do that work. P. OTHER BUSINESS (a) Vacation of portion Wolf Trail Lane within Clyde King S/D & Woodland Hills Estates Part Two Pres. Sewall asked this item be carried forward to the December 16 agenda. Q. ASSEMBLY AND MAYOR'S COMMENTS Mr. Moorerequested the Mayor's veto be on the December 16 agenda for override action. Mr. Johnson reported the Data Processing Steering Cmte. met on November 5 and discussed the possibility of having computer access from Assembly members homes and the North Peninsula Recreation Service Area. He reported the change -over to the new computer is ahead of schedule. The next meeting will be December 10. He noted the attendance of a Boy Scout Troop 151 at the meeting earlier and appreciated their interest. Mr. McLane requested an excused absence for the December 16 meeting. He stated the Assembly should pursue a policy that states "we want responsible economic development in the Borough". This should be weighed equally with expert testimony from various groups so the agency issuing permits can consider all sides. He has noted in representing clients before the Corps of Engineers, if the Planning Commission votes against a project, it doesn't have a chance, regardless of what compromises might have been reached with the Fish & Game, National Marine Fisheries, or whomever. Mr. Fandel commended the Mayor on his decision to veto Res. 86-148(AM). Mr. Skogstad encouraged the Mayor to look further into the hiring on the flood emergency in response to Mr. March's presentation, also the mitigation procedure. He reported DOT has denied all overtime fo maintaining the State highways which presents a hazardous situation, regardless of budget constraints. - 12 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 Mr. Nash felt the Assembly had taken a step backwards in remarks made to members of the public at this meeting. Mrs. Walli reported on the economic development workshop at AML, making reference to booklets she would circulate to those interested, as well as one on ports and harbors. Also several members attended a sales tax C&RA hearing and Mr. Nash made comment that was considered by the committee and included in the AML policy statement as well. She stated it would behoove Assemblymember and the public to become familiar with the AML Policy Statement that is being sent to the Legislature. She stated she is not against mining, but believed comprehensive studies needed to be done by neutral parties in order to protect the established renewable resource of fishing. Mr. Moore believed the Assembly's reluctance to rubber stamp any project that would produce a few jobs should precipitate labeling as anti -development. He saw Ord. 86-80 as an example of administration and assembly cooperating to enact effective legislation in a timely fashion. In reference to the Knight Dr. problem, he noted as it - is not state maintained there would be no points attached for the road priority list. He hoped Mr. Conyers would prepare some proposal for consideration at the next meeting as to how they might be helped. Mrs. Glick reported the Legislative Cmte. would be watching formulation of the federal and state budgets, particularly regarding the PILT funds which was fully funded last year. At a recent WIR Board meeting it was decided to be satisfied with the status quo rather than requesting an increase. She reported the Board of Education has voted to make a new Seward Elementary school the Number 1 priority. She also encouraged Pres. Sewall to continue the task force for the So. Peninsula Hospital which had been waiting for the management letter from the auditor in order to have necessary facts. She asked copies of the audit be sent to members of the task force if it is to continue. In regard to the Kenai Kaucus, she stated it was not their intention to be in conflict or competition with the KP Resource Cmsn.So far the group has supported the customs port of entry application, the prison site, royalty oil contracts and Bradley Lake project, items that were to the benefit of the whole Borough. Their main objective is to be a lobbying group for Borough needs. Pres. Sewall appointed Mrs. Glick the Assembly representative on the Kenai Kaucus and Mrs. Phillips the alternate. He noted in the past the Public Works and Legislative Cmtes. have met jointly and prepared a list to submit for Assembly approval and he would recommend that continue. He announced a worksession to begin at 6 p.m. December 16 on parliamentary procedures, and getting things accomplished. He stated he would like to continue the task force with present members of the Finance Cmte. He announced the name chosen for the new central peninsula school is Captain Cook High School. Mayor Thompson reported on the Knight Dr. project, there is a right of way problem and a storm drain permit holdup. Mr. Conyers advised him according to traffic count, it should be No. 5 on the priority list. R. INFORMATIONAL MATERIALS AND REPORTS - 13 - KENAI PENINSULA BOROUGH ASSEMBLY REGULAR MEETING OF DECEMBER 2, 1986 4 S. NOTICE OF NEXT MEETING AND ADJOURNMENT Pres. Sewall stated the next meeting of the assembly will be o. December 16, 1986 and this meeting was adjourned at approximately 1 a.m. Date approved 0&<.. / �7 I98 l ATTEST: at anSewall, ssem yPre- si ent ` Clerk k 14 - INFORMATION 1/21/87 CITY OF KENAI Capi-41a7l 4 44u4a„ 210 FIDALGO KENAI, ALASKA 99611 TELEPHONE 283 - 7535 January 8, 1987 Mr. Chris Kepler DOT/PF 44149 Sterling Highway Soldotna, AK 99669 SUBJECT: STATE MAINTENANCE AND OPERATION OF STREET LIGHTS Dear Mr. Kepler: The City of Kenai is very pleased that the State is taking over the maintenance, repairs, operation, and payment for power consumption on all State maintained roadways. The City is willing to do whatever is necessary to help you and HEA is making this transition easier. Enclosed are the keys to the electrical boxes for the lights on the State maintained roads within the City of Kenai. I think these are all that are needed, but if you discover that other keys are needed please call me. If there is anything else that we can do to be of further assistance, please do not hesitate to call. Sincerely, 00, Keith Kornelis, Director Public Works Department KK/sw cc: Larry Slate, HEA Enclosures Li LJ DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES CENTRAL RE — DIVISION OF MAINTENANCE & OPERATIONS S EVE T COWPER t GOVERNOR i { 1 P.O. BOX 196900 ANCHORAGE, A LA SKA 99519-6900 (TELEX 25-185) •:� .a� December 2. 1986 •tier _� �.'; Re: Kenai Maintenance Agreement Mr. William Brighton City Manager City of Kenai P. 0. Box 580 Kenai, Alaska 99611 Dear Mr. Brighton: It is my intent to discontinue the annual illumination agreement between the State of Alaska and the City of Kenai. The illumination in question is adjacent to State owned and maintained roadways; consequently, I have determined that it is the State's responsibility to maintain this lighting system. Please coordinate any required repair work with Chris Kepler, Peninsula District Superintendent. If there are any questions, please call. Si ely, f� Rowe D. Redick Director Central Region M & 0 cc: Chris Kepler ANIMAL CONTROL REPORT YEAR 1986 MONTH IMPOU KEt� AI P u �dLdC WORKS QEPY. P/W -.�-.- Mr. � i C} And. Cont. -----[] City En9r. ----- Wtt &, Siwr. -�- P/W Sec. --..-0 Streets' ----�-- B�q. Insp•-•--•-.� Shop ---•--�J •--•--•a STP iV TOTAL DED + WAIVERS + D.O.A. + HANDLED DESTROYED ADOPTED CLAIMED January 76 38 2 116 68 8 31 February 63 26 4 93 47 8 23 March 73 33 6 112 54 14 26 April 86 14 1 10 1 37 6 37 May 78 29 2 109 48 12 28 June 87 15 9 111 56 5 27 July . 100 17 6 123 50 17 34 August 98 35 3 136 68 17 41 September 87 62 6 155 102 15 21 October 95 32 6 132 73 30 12 November 63 28 5 95 44 13 20 December 97 32 5 134 77 10 25 TOTAL 1, 003 361 55 19417 724 155 325 January: 76 Service Requests 29 Lost Animal Reports TOTAL : 86 . 4. Service Requests February. 59 Service Requests 23 Lost Animal Reports March: 61 Service Requests P 3� Lost Animal Reports q 27 Lost Animal Reports April: 55 Service Requests 26 Lost Animal Reports May: 79 Service Requests 22 Lost Animal Reports June: 83 Service Requests 43 Lost Animal Reports .�.....•--. ��+ July: 84 Service Requests 49 Lost Animal Reports FOR COUNCIL NiEET11,14iG QFfit [� Y Mgr. ---[ Attorney August: 77 Service Requests 39 Lost Anima •� 1 Reports ''ubtr� Works City Clerk September: 93 Service Requests 34 Lost Animal Reports -- Finance 64 Service Requests '� • •� � Oct. q 37 _Lost Animal Reports Otigiiiai Tam-�--- Submitted By November: 69 Service Requests 24 Lost Animal Reports q�nCii;•QK [jNa []Yes December: 63 Service Requests 33 Lost Animal Reports CARRIED TO NEXT MONTH 6 11 12 20 19 14 16 7 11 14 14 17 161 i CARRIED TO NEXT MONTH 6 11 12 20 19 14 16 7 11 14 14 17 161 i /V s 5(znai Community Zdwzy A PUBLIC LIBRARY IN SERVICE SINCE 1949 Box 157 KENAI, ALASKA 99611 REPORT FOR THE MONTH OF December, 1986 Circulation Adult Juvenile Easy Books Fiction 1173 260 602 Non-fiction 1282 120 172 Total Book Circulation 3609 Films, Phonodiscs , Pamphlets, Periodicals 448 Total Circulation 4057 Additions Adult Juvenile Easy Books AV Total Gifts 49 3 11 8 71 Purchases 65 4 28 0 97 Total Additions 168 Remedial and Re -worked Books Adult Juvenile Easy Books AV Total 131 44 21 0 196 Interlibrary Loans Ordered Received Returned Books 32 69 60 AV 78 78 70 Interlibrary Loans by Our Library Books AV Eqpt_ 36 63 19 Volunteers Number 31 Total Hours 609.25 3.39 FTE Income Fines and Sale Books $675.45 Lost or Damaged Books 55.10 Xerox 260.00 Donations 01 .00 Total Income for December, 1986 = $990,55 I LIBRARY CARDS ISSUED Kenai Kasilof North Kenai Sol dotn a Sterling .Anchorage 53 3 18 35 2 1 Total Cards Issued 112 KENAI PENINS ULA CAUCUS MEETING BOROUGH ADMINISTRATION BUILDING - SOLDOTNA, SATURDAY, DECEMBER 13, 19869 2:00 P.M. ATTENDANCE Kevin Fenner, Kenai Peninsula Borough Gloria Wisecarver, Funny River Chamber of Commerce Andy Patapof, f , Seward Chamber of Commerce Maureen Karigan, Frontier Training Center, Soldotna Roger Holl , Kenai Chamber of Commerce Jan Jensen, Horner Chamber of Commerce Angie Newby, Homer Chamber of Commerce Dan Calhoun, Homer City Council Art McComsey, Kenai. City Council Betty J. Glick, Borough Assembly Marie Becker, North Peninsula Chamber of Commerce Dolly M. Farnsworth, Soldotna City Mayor Leo T. Oberts, Citizen, Soldotna Rich Underkofler, Soldotna City Manager AGENDA ITEM A: CALL TO ORDER The meeting was called to order with Committee Chairman Betty Glick presiding. AGENDA ITEM B : ROLL CALL Chairman Betty Glick reviewed the representatives that were present and determined that all community representatives were in attendance except representatives for the following areas: Soldotna Chamber of Commerce, City of Seward, City of Seldovia, Tus tumena Chamber of Commerce, Ninilchik Chamber of Commerce and City of Ka chemak . AGENDA ITEM C: APPROVAL OF MINUTES 11/8/86 Minutes for the November 8, 1986 Kenai Peninsula Caucus meeting were approved as submitted. AGENDA ITEM D: ADOPTION OF CONSTITUTION AND BYLAWS ARTICLES OF INCORPORATION Chairman Glick stated that the Kenai Peninsula Caucus is a committee established to lobby for projects for communities within the Kenai Peninsula Borough. The purpose of the committee is to address those projects that will be beneficial to the economy of the Kenai Peninsula Borough. In order for the committee to function effectively the adoption of a constitution and bylaws is essential. Kenai Peninsula Caucus Minutes December 13, 1986 Page 2 The committee members reviewed the proposed Articles of Incorporation, Bylaws and Constitution. Committee Members Andy Patapoff suggested that the word "First", as shown on the last page of the Articles of Incorporation under the section titled Article VII Incorporators, be changed from "First Vice President" to read "Vice President". Under Article VI of the Initial Board of Directors 17 people shall constitute the Initial Board of Directors. The following persons are to serve as the initial directors: Mayor Stan Thompson representing the Kenai Peninsula Borough; Mitchel Robinson representing the Soldotna City Council; Dan Calhoun representing the Homer City Council; Harry Gieseler representing the Seward City Council; Carl Hille representing the Seldovia City Council; Jeanie Caulkins representing the Kachemak City Council; Jack Brown representing the North Peninsula Chamber of Commerce; Betty Glick representing the Kenai Borough Assembly; Roger Ho l l representing the Kenai Chamber of Commerce; Sharon Moock representing the Soldotna Chamber of Commerce; Angie Newby representing the Homer Chamber of Commerce; Andy Patapoff representing the Seward Chamber of Commerce; Annie McKenzie representing the Seldovia Chamber of Commerce; Kathryn Kennedy representing the Ninilchik Chamber of Commerce; Earl Fisler representing the Tustumena Chamber of Commerce; and, Gloria Wisecarver representing the Funny River Chamber of Commerce. Article IV of the Internal Affairs section of the Articles of Incorporation outlines the voting members, associate members, board of directors, executive committee, interim vacancy, bylaws and dissolution. The voting members of the committee will be limited to representatives of municipal corporations and chambers of commerce of the Kenai Peninsula Borough. Associate members will be any person, individual, business, corporation, association or governmental agency may become a non -voting Associate Member of the Corporation by payment of the dues prescribed by the Board of Directors. Any Associate Member of the Kenai Peninsula Caucus shall be accorded voting privileges at the committee level of the organization. Board of Directors will be the governing body of the Kenai Peninsula Caucus, The Board of Directors shall consist of at least eleven (11) voting members of the Corporation. Any voting member may send a representative to vote at meetings of the Board of Directors. Any voting board member may send a representative of his organization to vote in his stead. Each member of the Board of. Directors shall serve for an indefinite term at the pleasure of the organization he or she represents, except that the Mayor of the Kenai Peninsula Borough shall serve for a term of office on the Board of Directors consistent with the term of' Mayor's office. Rich Underkofler said that he would like to see a minimum of Kenai Peninsula Caucus Minutes December 13, 1986 Page 3 eleven (11) and leave a maximum number open so as new chambers are organized they can be included. An Executive Committee shall be elected from and by the Board of Directors. It shall consist of a President, a Vice President, a Secretary and a Treasurer. Any interim vacancy on the Executive Committee shall be filled by appointment of the Board of Directors for the remainder of the vacated term. The Board of Directors shall adopt the initial bylaws of the Corporation: The power to adopt, alter, amend or repeal bylaws is vested in the Board of Directors. The bylaws may contain provisions for the regulation and management of the affairs of the corporation not inconsistent with law or these articles of incorporation. In the event of dissolution of the Corporation, all assets owned by the Corporation shall be distributed for educational and/or charitable purposes, which shall be designated by the Board of Directors. MOTION by Dolly Farnsworth (City of Soldotna), SECOND by And Pata o (Seward Chamber of Commerce), and UNANIMOUSLY CARRIED to appoint Stanley F. Thompson, Mayor as the initial registered aen g agent of the Corporation. MOTION by Gloria Wisecarver (FunnyRiver Chamber of Commerce) SECOND by Do Farnsworth So otna), and UNANIMOUSLY CARRIED to adopt the Articles of- Incorporation as amended at this meeting, BYLAWS The committee reviewed the Bylaws and amended Article I Identification Section 2 item C by filling in the blank with Stanley F. Thompson as the initial registered agent of the Corporation. Chairman Betty Glick amended Article VI by adding a new Section 8 entitled Parliamentary Rules. The new section will state, "All questions of parliamentary procedure shall be decided according to Roberts Rules of Order" By addingthe new Section 8 Parlia mentary Rules the old Section 8 Dissolution will become Section 9 Dissolution. MOTION by Kevin Fenner (Kenai Peninsula Borough) SECOND by Dan Calhoun (City of Homer), and UNANIMOUSLY CARRIED to added a new Section 8 Parliamentary Rules to Article VI of the Kenai Peninsula Caucus Bylaws and renumbering old Section 8 Dissolution to Section 9 Dissolution. One of the Committee members reported that Ron Garzini, the City Manager for the City of Seward, said the language of the Bylaws Kenai Peninsula Caucus Minutes December 13, 1986 Page 4 requires the Board of Directors to be elected officials. Chairman Glick informed the Committee that within Article vI Section 1 in the Bylaws for the number and qualifications of the Board of Directors it states, "The business and affairs of the Corporation shall be managed by a Board of Directors, who must be residents of the Kenai Peninsula Borough. The Board of Directors shall consist of at least eleven (11) voting members of the Corporation. Any voting member may send a representative to vote at meetings of the Board of Directors. Any voting board member may send a designated alternate representative of his organization to vote in his stead." MOTION by Roger Holl (Kenai Chamber of Commerce), SECOND b Gloria Wisecarver (Funny River Chamber of Commerce), and UNANIMOUSLY CARRIED to adopt the Bylaws for the Kenai Peninsula Caucus as amended at this meeting. Chairman Glick informed the Committee that the Task Force decided at the Saturday November 22, 1986, Kenai Peninsula Caucus meeting to begin with a first year budget of $10,000. The Borough would be responsible for 60 percent or $6,000 and the chambers would not be required to make any contribution. The possibility of charging the associate members a small annual fee was discussed, but not determined if that would be the actual budget. She feels that the Committee needs to get started and be in operation for a year to see how well the Committee is going to function with the guidelines as they have been adopted. A due schedule should be preparedfor the next annual meeting to be presented before the membership for consideration. She said the operational budget needs to be determined now, because the Borough is providing all of the operational cost and services, which affects the Borough's budget. AGENDA ITEM E: ELECTION OF OFFICERS President: Betty Glick was nominated for president by Gloria wisecarver and seconded by Dolly Farnsworth. MOTION by Art McComse (City_of Kenai), SECOND b (Could not identify from the tape), and UNANIMOUSLY CARRIED to close nomination for the o'ffice of president of the Kenai Peninsula Caucus and vote by unanimous ballot. Hearing no objections to a unanimous ballot vote, Betty Glick 'was elected as president of the Kenai Peninsula Caucus. Kenai Peninsula Caucus Minutes December 13, 198 Page 5 Vice President: �{f 1 Dan Calhoun was nominated for vice president by Dolly Farnsworth. Mr. Calhoun declined the nomination. Jack Brown was nominated for vice president by Marie Becker. MOTION b Art McComse -(City of Kenai), SECOND -.--.by (Could not identify zrom the tape), and UNANIMOUSLY CARRIED to close nominations for the office of vice president of the Kenai Peninsula Caucus and vote by unanimous ballot. Hearing no objections to a unanimous ballot vote, Jack Brown was elected as vice president of the Kenai Peninsula Caucus, Secretary: Mitch Robinson was nominated for secretary by Dolly Farnsworth and Gloria Wisecarver seconded the nomination. MOTION b (Did not identify on the tape), SECOND b (Did not identify on the to e), and UNANIMOUSLY CARRIED to close nominations or the office of secretary of the Kenai Peninsula Caucus and vote by unanimous ballot. - Hearing no objections to a unanimous ballot vote, Mitch Robinson was.,elected as secretary for the Kenai Peninsula Caucus, Treasurer: Roger Ho11 was nominated for treasurer but declined the nomination. Andy Patapoff was nominated for treasurer by declined the nomination. MOTION -by Art McComse (City of Kenai), SECOND -by Marie Becker (North Peninsula Chamber of Commerce), and UNANIMOUSLY CARRIED to to nominate Gloria Wisecarver for treasurer of the Kenai Peninsula Caucus. MOTION by Dolly Farnsworth (City of Soldotna) , SECOND by (Did not . Ir icentify on the tape), and UNANIMOUSLY CARRIED to c1o__ se nominations for the -off ice of treasurer of the Kenai Peninsula Caucus and vote by unanimous ballot, Hearing no objections to a unanimous ballot vote Gloria Wisecarver was elected as treasurer of the Kenai Peninsula Caucus. Kenai Peninsula Caucus Minutes December 13, 198 Page 6 The officers for the initial year will be as follows: Betty Glick - President Jack Brown - Vice President Mitch Robinson - Secretary Gloria Wisecarver - Treasurer AGENDA ITEM F: DISCUSSION - PRELIMINARY BUDGET - DUES MOTION by Roger Holl (Kenai Chamber of Commerce), SECOND by Dan - Calhoun (City of Homer), and UNANIMOUSLY CARRIED that the executive board study the budget and make a recommendation to the Committee at the next regularly scheduled meeting. AGENDA ITEM G : PRIORITIES FOR LOBBYING The City of Kenai presented a resolution to the Committee in support of the Yukon -Pacific natural gas pipeline. The Committee discussed setting up a list of priorities for items that might have either negative or positive impacts on the Kenai Peninsula Borough as a whole. Chairman Betty Glick stated that she felt the Bradley Lake project should be first on the list of priorities for lobbying by the Committee. Some of the other projects that were mention included the school funding and taxes, customs port of entry, tourism promotion, the 1994 Winter Olympics with focus being on the Kenai Peninsula, the Kenai Peninsula Community College reorganization and the North Slope gas. MOTION by Andv Patapof f ( Seward Chamber of Commerce) , SECOND by Angie Newby (Homer Chamber of Commerce, that the project priority list for Kenai Peninsula Caucus be established and separated into two categories and limited to two items per category for immediate discussion and/or action. AMENDMENT TO THE MOTION by Kevin Fenner (Kenai Peninsula Borough), SECOND by Dan Calhoun (City of Homer), to establish t ree priorities at this meeting to be acted on by a time need basis, and have the executive committee decide on an approach to prioritizing the other projects in three categories: 1) State help; 2) non -State help; and, 3) Other. Hearing no objections, the motion carried unanimously as amended. After much discussion of priority projects and prioritizing procedures the Committee decided to limit the priority list -for projects that need immediate action because of time element involved. The priority list will include the following list of projects for immediate consideration and/or action by the Committee: 1) Bradley Lake Hydroelectric Project: 2) School Fudning; and 3) Community College Reorganization Task Force. Kenai Peninsula Caucus Minutes December ,1986' Page 7 MOTION by Gloria Wisecarver (Funny River Chamber of Commerce), SECOND by Angie Newby (Homer Chamber of Commerce), to prioritize the following projects for Committee action: 1) Bradley Lake Hydroelectric Project; 2) School Funding; and, 3) Communi t y College Re -Organization Task Force. Chairman Betty Glick suggested that resolutions be prepared to present to the legislators to advise them of the Committee's position on the prioritized projects. Hearing no objections, the motion carried unanimously. Kevin Fenner suggested that more detailed information be put together on each one of g the prioritized projects for information purposes. AGENDA ITEM H: NEW BUSINESS Committee discussed the prospects of putting a local representative on the Board of Fisheries. It was decided to postpone any further discussion or action on this issue at this time to. avoid any confrontation with fishery user groups. Angie Newby made reference to a resolution she submitted for the Homer Chamber of Commerce to the Committee for review in regards to the Aspen Mining' s request for an exploration permit. The resolution is directed to the State Department of Natural Resources requesting that the public hearing be extended from January 9, 1987 to June 1, 1987 to allow further public input. AGENDA ITEM I: NEXT MEETING Next Kenai Peninsula Caucus meeting has been scheduled for 1:00 p.m. January 17, 1987 in Homer. Meeting adjourned, CITY OF KENAI %% . if Cap.,-ed 4 4ia&4a 210 FIDALGO KENAI, ALASKA 99611 2 TELEPHONE 83 - 7535 t � 1 J CITY OF KENAI BACKGROUND AND PERSONAL DATA - CANDIDATES FOR APPOINTMENT TO COMMITTEES AND COMMISSIONS NAME ( 1 Resident of City of Kenai? How long? Mailing Addressl��'-� Tel. Bus. Address ��'��( ,,�,!��p� Tel. Presently employed by�%� Job Title/_)d�ll�£/'� lC� ��C�(s�J�=/ Name of Spouse_ Current membership in organizations: t 1 r l Past organizational membership: Committees interested in: Sign ture iJ' t i :r1 �' A Aid y4 CITY OF KENAI Od eap �- 0 4 210 FIDALGO KENAI, ALASKA 99611 _ TELEPHONE 283 - 7535 0i } �, RJ i CITY OF KENAI ., BACKGROUND AND PERSONAL DATA - CANDIDATES ` oR"-��A'PPOINTMENT TO COMMITTEES AND COMMISSIONS NAME Darren Q . Bond Resident of City of Kenai? No How long? Mailing Address Box 4516 Kenai, Alaska 99611 Tel. 776-5677 Bus. Address Box 4070 Kenai, Alaska 99611-Tel. 283-3585 Presently employed by The First National Bank of Anchorage Job Title Branch Manager Name of Spouse Sheri Bond Current membership in organizations: Kenai Rotary Club, Kenai Chamber of Commerce, Kenai Horne Builders, Ducks Unlimited, Board of Realtors, American Petroleum Institute, B.P.O.E. Past organizational membership: Kenai Peninsula Community_College Program Advisory Committee. Committees interested in: Economic Development Committee. S i g n-gfjdre Darren Q . Bond t . KFVIF ... t AIF 0 /Uyeso rce eve- o enR D I P t - r 1 r i 1 • 8.07 "G"-,Street, Suite 200, Anchorage, Alaska 19501-3440 Nf orAlaska,Inc. Boz 100516, Anchorage, Alaska 99510-0516 — 9071276-0700 January 9 1987 ff. 'a t" O EXECUTIVE DIRECTOR Paula P. Easley Dear Mayor /Manager EXECUTIVE COMMITTEE Boyd J. Brownfield, President John Forceskie, Vice Pres. J. Shelby Stastny, Vice Pres. Joseph R. Henri, Vice Pres. O.K. "Easy" Gilbreth, Sec. Larry Laughman, Treasurer Sharon E. Anderson Stephen M. Ellis Robert Gilliland Uwe L. Gross Dave Harbour Karen J. Hofstad Phil R. Holdsworth Charles H. Johnson John T. Kelsey Ethel H. "Pete" Nelson E. Thomas Pargeter John Rense Darrell F. Smith R. D. Stock Doug M. Webb Charles R. Webber DIRECTORS Lenny Arsenault Earl H. Beistline Ric H. Bendio Rex I. Bishopp Terry Brady Robert A. Breeze Kelly M. Campbell Alexander J. Capasso Joy E. Clark )Larry Dinneen James V. Drew James G. 'Bud" Dye Fred O. Eastaugh Roy Ewan Don L. Finney Lee E. Fisher Robert W. Fleming Dan R. Fondell Mano Frey Ray D. Gardner Paul Glavinovich Randy Goodrich Dick Griffin John L. Hall Jon Halliwill Donald L. Hansen Hazel Heath Dave Heatwole M. A. Higgins William J. Hornung Kurt A. Humphrey Dorothy A. Jones John K. Kim Phillip L. Locker Dennis W. Lohse Chris McAfee Jerry McCarthy Len McLean Max D. Nalley Richard A. Peluso William R. Purrington Stephen M. Rehnberg Thomas H. Reynolds William E. Schneider Lin S. Sloane Mary Jane Sutliff Dale Teel Joe J. Thomas Richard W. Tindall Rudy J. Trosclair Dale P. Tubbs Joseph E. Usibelli, Jr. Lyle Von Bargen JAnita L. Williams EX-OFFICIO MEMBERS Senator Ted Stevens Senator Frank Murkowski Congressman Don Young Governor Bill Sheffield Enclosed is a press release concerningf 'a.. -.Call;_-' for Papers for the Alaska Great Opportunities Conference;- April 2-4, 19870 On Saturday, April 4, a series of Community Development Workshops will be held. One workshop will use some of the ideas submitted in response to the Call for Papers to show how they can be transformed from the idea stage into new business ventures. This is an exciting opportunity for you to learn if a venture that has been talked about actually has potential for being developed in your community. Our press release sets a deadline of March 1 for papers. However, if you have a project that you would like selected by the consultants to be highlighted in the workshop, by all means try to get it to us before March 1. This will allow the consultants more time to research its feasibility, review market potential and explore financial options. Even if your project is not selected, by attending the workshop your delegation will learn how the process works. You will then be better able to apply the process within your own community. RDC has invested in this worthwhile effort because the Council believes community leaders are anxious to know how they can successfully guide development projects to completion. The sooner you get your project in to us, the more likely it will be selected. Perhaps you could call a meeting of community leaders to seize this significant opportunity to have your project analyzed at no cost by these professionals, Do call me or Becky Gay after reading the enclosures if you wish more information, Sincere , RECE EVELO E for ka In . Paula P. Easley Executive Director COUNCIL E�0u 1 � C1 A ,,men. so rce eve o7* for Alaska, Inc. 1 807 1" Street, Suite 200, Anchorage, Alaska 9950' 9 Box 100516, Anchorage, Alaska 99510-0516 — 9011216-„id0 EXECUTIVE DIRECTOR December 22 , 1986 Paula P. Easley EXECUTIVE COMMITTEE CALL FOR PAPERS, THE ALASKA "GREAT OPPORTUNITIES" CONFERENCE Boyd J. Brownfield, President John Forceskie, Vice Pres. J. Shelby Stastny, Vice Pres. Joseph R. Henri, Vice Pres. O.K. "Easy" Gilbreth, Sec. The Resource Development Council for Alaska, Inc. has Larry Laughman, Treasurer , Sharon E. Anderson Stephen M. Ellis Robert Gilliland issued a call for papers e r s in connection with its upcoming omin p p g Uwe L. Gross Dave Harbour Karen J. Hofstad conference scheduled for Ap r i 1 2 - 4 , 1987. Phil R. Holdsworth - Charles H. Johnson JohnT. Kelsey Ethel H. "Pete" Nelson Individuals local officials government administrators, > > E. Thomas Pargeter John Rense Darrell F. Smith chambers of commerce and economic development task forces are R. D. Stock Doug M. Webb Charles R. Webber asked -to-consider four questions and submit responses to the DIRECTORS Lenny Arsenault Earl H. Beistline Resource Development Council. Ric H. Bendio Rex I. Bishopp Terry Brady Robert A. Breeze The papers will be made available to economic develop - Kelly M. Campbell Alexander J. Capasso Joy E. Clark went professionals speaking. at the conference and. will be r Larry Dinneen James V. Drew James G. "Bud" Dye printed in the conference proceedings. Fred O. Eastaugh Roy Ewan Don L Finney Lee E. Fisher The questions, are: Robert W. Fleming Dan R. Fondell Mano Frey (1) What, in your opinion, are the three most significant Ray D. Gardner Paul Giavinovich opportunities available to (Alaska) or (your ity) for Randy Goodrich Dick Griffin growth rnc and diversification? John L. Hall Jon Halliwill Donald L. Hansen (2) 1 hat actions should be taken to realize these opportunities? Hazel Heath Dave Heatwole M. A. Higgins (3) To7hat should be the role' of government, the private sector William J. Hornung Kurt A. Humphrey and academic institutions in relation to these actions and Dorothy A. Jones John K. Kim opportunities? Phillip L Locker Dennis W. Lohse Chris McAfee (4) If implementation funding is needed, haw should revenues Jerry McCarthy Len McLean be raised? Max D. Nalley Richard A. Peluso William R. Purrington Stephen M. Rehnberg Respondents may answer any or all of the a ue s t i on s in - Thomas H. Reynolds William E. Schneider Lin S. Sloane their submissions. To facilitate distribution to conference Mary Jane Sutliff Dale Teel Joe J. Thomas hld be submitted b March 1, 1987. to speakers,* papers should y Richard W. Tindall Rudy J. Trosclair Dalep. Tubbs Joseph E. Usibelli, Jr. Resource ce Development Council, Inc.Box 100516, Anchorage > > > Lyle Von Bargen Anita L Williams AK 99510. Papers should be single-spaced, in pica type, withh Ex-OFFICIO MEMBERS Senator Ted Stevens Senator tor Frank Murkowski Con Don Young one inch margin on each side maximum six pages, � Governor Bill Sheffield -30- ..O � , rrn y ARTHUR YOUNG AND ASK* INFORMATION SEARCH: JOINT ACTIVITIES FOR THE 1987 RESOURCE DEVELOPMENT COUNCIL "GREAT OPPORTUNITIES" CONFERENCE Arthur Young and ASK* Information Search have. been retained- -to select a few of the idea papers or proposals on economic develop— ment P ment for review. These will be used for presentation and discus- sion at the conference. We have prepared a brief questionnaire or checklist designed to facilitate the process of preparing these papers and in discussing them at the "Great Opportunities Conference" organized by the Resource Development Council, ACHIEVING SUCCESS IN COMMUNITY ECONOMIC DEVELOPMENT IN ALASKA Alaska's current state of economic turmoil has been largely caused by an over -reliance on outside forces, chiefly falling commodity (oil) prices and declining. government spending. Commu- nities throughout the state have relied, to one degree or. another, on the pass -through of state and federal -dollars to support their local economies. And although the state is rich in natural resources, we for the most part export our resources with a minimum of value added processing. Production of final goods. manufactured from our natural resources primarily occurs outside the state. We thereby lose much of the economic benefit of our natural resources. To counter this detrimental trend, we need to -achieve a higher level of internal economic benefit. We need to put forward a maximum effort into creating home-grown jobs within our communi- ties. One way to do this is to increase the economic benefits of our natural resources at every stage from extraction through pro- duction, distribution and marketing. We must also look beyond traditional "Alaskan" natural re- sources to other opportunities in trade and international mar- kets. This could include such things as international marketing (both import and export) of goods to and from the U.S, exporting of Alaskan telecommunications, engineering and fabrication ex- pertise. The only meaningful way to promote economic development is through capital investment. Without capital investment, there can be no economic development. But our recent experience in dispensing state dollars for needed infrastructure projects in- structs us that capital investment by itself is not enough. For a healthy economy we need home grown jobs created by viable business across a diversified number of sectors. page 1 over.... For most communities, there will be no Red Dog project to pave the way to future prosperity. Rather, we will need to nurture more modest forms of business ventures within our communities. To avoid shortsightedness, we must look beyond immediate profit margins and dollars when analysing "profitability" and consider broader social or community benefits of a given project. A key factor to attaining economic develop- ment lies in the creation of a large number of local businesses, each contributing to the local, regional and state economy. This provides a diverse economic foundation firmly supported by local conditions, as opposed to artificial and transitory development arising from one-time investments made by outside sources. We welcome the opportunity to assist the Resource Development Council in its effort to solicit economic development ideas from Alaska's many communities. Communities can positively promote economic development even in the face of the declining economy by capitalizing on their strengths, focusing their efforts and resources, and emphasizing the growth and development of exis- ting and new businesses in their communities. We can assist in the process by reviewing selected economic development proposals for economic and financial feasibility cri- teria, assessing the level,of.required resources, doing a rough assessment of -the market situations, reviewing business and marketing plans and suggesting possible financing sources. For the Resource Development Council's call for idea papers, we have volunteered to select a few of the papers for review and discussion at Conference workshops. We in no way intend to judge their worthiness since this would be counter -productive and obviously premature. Given the obvious constraints, in terms of time and involvement, we cannot provide in-depth answers to the multitude of issues which relate to any economic development proposal or idea paper. However, we will take a "rough cut" on many of these in an attempt to clarify the development process and to help identify opportunities. Some basic research will be performed and each paper selected will be put into a common framework or model for discussion. By sharing these ideas in this way, we can all learn a great deal which will be useful in local planning to achieve economic success. -January 1987 Ray Benish - Alex Kochkin ( for Arthur Young) ( for ASK* Information Search) (907) 279-0422 (907) 562-1275 page 2 CHECKLIST These checklist questions are meant only to assist in the thinking, writing, and reviewing process of the idea papers. Use them as you like; all of them will not apply equally to all pro- jects. 1. What are the expected- economic or social benef its f or r the project in its area? 2. How does the project build on the unique strengths of the community? 3. What are all the major assumptions (such as with regard to economic or external factors, technological factors, etc.)? 4. How will it create permanent jobs? 5. How will the project increase the communities tax revenue? 6. In what ways will the project assist existing businesses or attract new business? - 7. Who will own and operate the project? _ 8. Have you identified sources for financing? 9. Have you completed a business and marketing plan? What are the major goals of the project? What measurable objec- tives are there? 10. Have you completed a preliminary financial analysis to assess capital requirements, flow of funds and profit and loss? What is the yield? Have you performed a cost analysis? 11. What research will be needed to determine whether to go ahead with the project or not? 12. Are there any similar or related projects elsewhere to learn from? - - 13. What is the nature of the markets) you will be entering with regard to competition, overall market size, direction or \ dynamics of the market(s)? What are the smallest meaningful groups of customer types which can be considered as market segments? page 3 over.... 14. What makes the project's products or services competitive in the marketplace? 15.What strategies will be initially employed to get the project to its objectives? Have significant risks been noted within suggested countering strategies? 16. How will objectives and progress be measured for the project and its major parts? 17. What sort of "marketing communications" will be needed? (Both locally and for promoting sufficient awareness, etc. within your major market segments.) 18. What sort of organization will be required to implement the project? page 4 >>,: . \� , =•:g yy�: }:'� '?vr v �ti::•.. fr v::. r. '' { • !. : J �:. viz SSi ;:� +.�: :•. : W • • • r i:•,:v '{:::?±}:/S:$r fi: :f :�'i,: � r?fti:•y'r? i:•i:Cr}{{Yi:4: Anchor News x.:.. {�:;:>} r:r'r Y:}:•r Anchorage Daly Wednesday, December 10 1986 f•��f, �;:� •< ..::x r#:;•: •} • d -way f ■ Searc un r or econo ic eve op en i eas By PAULA P. EASLEY economy, we mean creatingjobs -primarily � s primarily When John Anderson,Washington state's _ for people in private industry. economic development director, spoke at the What can we do to begin diversifying ` • � ' Resource Development Council's conference Alaska's econom ?We've alrea Playin e(;ono�' i Y dy taken the last February, his important message went first step' — admitting that we have a development" •.unheralded b the media. I confessed won- in the 80s Y problem, or challenge, as we might prefer to derment at how little excitement was gener- ... call it. is an entikel y new ball ated about his state's aggressive economic The second step involves commitment — development program, Team Washington, commitment to make economic development game,, and Alaskans and how it had brought local and state a major priority at local and state levels. have a lot to learn from governments together with private -sector Recently more than 30 governors have made leaders to pursue economic goals. economic development their top priority and Two other speakers addressed subjects person, agency or institution knows all the have put the full weight and force of the the pros who've been at � • • . • pertinent to Alaska's current situation: One. answers as to what that "something" is. One governor's office behind their- programs. it for well over a'. dealt with the costs and benefits of incen- thing for certain, the old��rules of the game How did they do it? By studying what tives and the other with organizing state no longer apply. Playing economic develop - worked and what didn't work in other :'• decade.9 economic development programs. The speak- ment in the 80s is an entirely new ball states, by borrowing the good ideas and ers were Walter O'Connor and Scott Fosler, game, and Alaskans have a lot to learn from discarding the ones that proved too costly or and their recommendations were published the pros who've been at it for well over a ineffective. That's the third step. �' .Called "The Alaska Great O o ' •�''1 pp rtunities in the Conference Proceedings.: decade. f :When it comes to economicc de • . 'Conference," it will describe u development successful pro - These and other speakers provided sound During that same period, Alaskans were :• strategies, we . do care how they do it � • • grams of cities and states across the nation, direction to local . and .state leaders for too complacent to address the concerns of .Outside. Alaska cannot afford to waste and even the country of Ireland. Believe me .:.; mobilizing the forces to improve Alaska's . • their primary industries. With billions •of • •precious time reinventing the wheel or many of these programs and processes can economy. Bob Richards 'and John - Sandor, dollars in revenues frompetroleum, who spending scarce resources on economic Bevel- and should work to our benefit in Alaska. who prepared -papers for the proceedings, ..needed mining, timber, agriculture, fisheries, "opment experiments. That's precisely why Between now and April 2, when the confer - offered additional guidance. tourism or power '• development?, • We did, the Resource Development Council's mem• ence convenes, we encourage Alaskans from I mention this.now because it points up an that's who. But it was impossible to generate hers have paid us to examine a variety of all walks of life to gather their thoughts and ,.of ten-subst anti ated fact about economic de- widespread support . for creating the right state programs to see which processes or ideas for future directions and share them velopment activity: No city or state has ever climate for these industries to "make it" in strategies might fit Alaska's needs... ' with us for publication. gotten serious about economic. development '..-.'!-Alaska while we were awash in petro dol- • ' • One obvious conclusion of our research is BY using our talents and applying the best until there was'a crisis. And last February, jars. that virtually .every successful program in- human resources to meeting, the challenge of the general population had apparently not How many times have .you heard that no :.volves a marriage of business,government,Alaska s economy, we can indeed create an accepted the , reality of Alaska's economic other industry could begin to bring in the :. labor and universities.. . economic development movement, and that's state of affairs. Its safe to say that the kind of revenues government, gets from oil? . ; Because thetiming is now right for Alas- What we need. . message has now sunk In there is wide True, but an important point is missed here. k•a to aggressively protect . and enhance its spread agreement. -that we must do some- ::..All • these other - industries generate high own economic interests, a major conference 0 Paula Easley Is executive director of thing. What? .: w; •:._ . :� %";,e:: levels of employment in the private sector, has been the • ; scheduled to consider exciting Resource Development Council for Alaska. . Here the agreement ends, because no one and when we talk about diversifying the -options. •i •�� r li ice; - .. • _ A �i Arthur Young A MEMBER OF ARTHUR YOUNG INTERNATIONAL Arthur Young is an international business accounting and management consulting firm. They have extensive "hands-on " ex- perience in providing the types of assistance that are most mean- ingful in achieving specific development goals,, Arthur Young has developed a series of services to assist communities with successful economic development. Their approach consists of four integrated services: Strategic planning, development and finance, business assistance, and foreign trade and investment. Each service is tailored to help communities to accomplish specific economic development objectives. asle * lnfo,7nation Search ASK* Information Search is a research and consulting firm specializing in marketing research and planning, and comprehen- sive information support for business and government. They provide a full range of primary research services using such methods as telephone, mail -out, and interview questionnaires. All data collection and statistical analysis is handled directly by ASK.* Information Search. They also offer extensive corporate library services from computer databank searches worldwide to article and document retrieval and local and national clipping services. Beyond marketing and management issues, computer databases provide them with a vast array of information concerning phy- sical, natural and social sciences, engineering and technology, government, economic statistics, and worldwide news retrieval. The scope of their services is both local and international. In connection with their international trade information services, translation and typesetting in over 20 languages is provided. Alaskan offices are in Fairbanks and Anchorage. As a special library, ASK* is also a member of the Alaska Library Association. BEAUTIFICATION COMMITTEE Minutes, Regular Meeting Held, Kenai City Hall, Conference Room Tuesday, January 13, 1987, 1:30 p.m., AST Present Lil Hakkinen Nina Selby Roseanna Shelden No Quorum Absent Tim Wisniewski Glen Jackson Marian Nelson Harry Lewis In Attendance: City Council Representative, Sally Bailie Kayo McGillivray, Director, Parks and Recreation Janet Loper, Planning Specialist It was the general consensus of those present to discuss the agenda, as there was not a quorum present. 1. AGENDA a. Nursery Project. Discussion was held regarding the letter of interest sent to all nurseries in the area. No response was shown, as reported by Specialist Loper. Committee member Shelden indicated that the record will reflect this for future reference. Committee member Hakkinen was asked for her ideas and suggestions for types and care of flowers and shrubs for the different projects and areas. Director McGillivray suggested contact be made with Dan of Trinity Greenhouse. Committee members Hakkinen and Shelden will make arrangements to meet with Dan at Trinity,, Councilwoman Bailie suggested more publicity be given to Trinity for all the work and flowers that has been done by them, BEAUTIFICATION COMMITTEE January 13, 1987 Page -2- Committee Shelden asked about costs and how much to order. Director McGillivray indicated the cost to be approximately $4,000. to $5,000. with the additional areas. Specialist Loper indicated an interest by Mr. Huff of getting some high school students involved. Mr. Huff would like to make arrangements to discuss this further in the future, Councilwoman Bailie discussed the availability of funds and money appropriated. Funding was discussed further with Charlie Brown of the Finance Department, Mr. Brown would need to know more about the scope of the project to research further for -funding and monies - available, ADJOURNMENT Meeting adjourned at 2:30 p.m. 12wx: C� • G Niva A. Aburto dba/Niva's Clerical Services for the City of Kenai i J 1 J 1 i 1 i j KENAI MAYOR'S COUNCIL ON AGING Minutes of Regular Meeting Held, Kenai Senior Citizens Center Monday, January 12, 1987, 12:50 p.m., AST Presiding: Sylvia Johnson, President 1. ROLL CALL Present Absent Sylvia Johnson Fred Chambers Betty Warren Roy Moore Gene Sipperly Joanne Buzzell Shirley Henley Frances Meeks Pat Car tee Fiocla Wilson In attendance: Sally Bailie, City Council Representative Pat Porter, Director Chairwoman Johnson introduced and welcomed the two new members to the Board: Pat Cartee and Fiocla Wilson, 2. PERSONS PRESENT WHO WISH TO BE HEARD 3. a. Clarence Ladd AGENDA APPROVAL Chairwoman Johnson included the election of officers on the agenda. Another addition was made under old business, # 4 - United Way was to be added to the agenda. MOTION Betty Warren moved that the Agenda be approved as amended. The motion was seconded by Shirley Henley. 4. APPROVAL OF MINUTES Chairwoman Johnson asked for approval of the minutes of November loth, 1986. Betty Warren stated she had not received a copy of the minutes of that meeting. Chairwoman Johnson stated there were two name corrections, which were noted by the Secretary. KENAI MAYOR'S COUNCIL ON AGING January 12, 1987 Page -2- 5. COMMITTEE REPORTS a. Fund Raising. Sylvia Johnson Cinnamon Rolls/Chocolate - Mormon Church $150.00 AARP $ 50.00 Bazaar $860.89 Bank statement for the loth of January: Ending balance as of December loth $7,989.14 b. Foundation. Pat Porter Chairwoman Johnson reported that she had taken the "Operation Boot Strap" booklet to Mr. Holl, an attorney, for review and consideration. He will take to a CPA to check out any problems. Special Meeting may be called to consider this foundation. Chairwoman Johnson stated that a name is needed. Suggestions were asked for. Betty Warren suggested the name should be versatile, so as to receive 'funding from several sources. Betty Warren also suggested tabling the name until report was received from Mr. Holl, 6. CORRESPONDENCE a. Letter was received from the City of Kenai advising of a meeting of all Boards on November 23rd, Chairwoman Johnson attended and gave report. It was reported that the carpet was delayed. The factory had ran out and had to re -weave. Director Porter stated the City gave an extension for the installation of the carpet until it arrives. A letter was received from Dorothy Lee and the contents of the letter have been taken care of at previous meetings. No further action necessary. KENAI MAYOR'S COUNCIL ON AGING January 12, 1987 Page -3- 7. OLD BUSINESS a. Vehicle Grant Award, Chairwoman Johnson reported that a state grant was awarded for $20,000. for a Senior Citizens van to serve Nikiski. Director Porter advised that Craycroft Chrysler received the bid and that Easter Seal obtained the wheel chair portion of the bid. Delivery should be in 90 days. b. North Road Transportation, Director Porter reported that transportation to the North Road area remained the same, with the exception of last week, in which five people were provided transportation. It was asked that everyone keep informed of transportation needs for that area. c. Wood Shop, Director Porter reported one new person using the wood shop. There has been good use of the wood shopg • and it runs consistent with a comparison made to the Anchorage Senior Center. d. United Way, Director Porter reported that the center had been approved as a recipient for United Way funding. Agreement needs to be signed. Director Porter, City Manager and United Way representatives will meet to rewrite the agreement to fit the needs of the Senior Center under a separate agreement. 8. NEW BUSINESS a. Election of Officers. Chairwoman Johnson called for nominations of officers. Pat Car tee was nominated for President by Betty Warren. Vote by acclamation was called. Vote was unanimous. Betty Warren was nominated for Vice President by Shirley Henley. Vote by acclamation was called. Vote was unanimous. Joann Buzzell was nominated for Secretary/Treasurer by � Gene Sipperly. Vote by acclamation was called. Vote was unanimous. KENAI MAYOR'S COUNCIL ON AGING January 12, 1987 Page -4- Director Porter suggested a new name for bank account to separate monies from the City of Kenai, General discussion was held regarding name suggestions. MOTION Betty Warren moved that the checking/savings account be changed from Kenai Mayor's Council on Aging to "Kenai Seniors by the Sea." Motion seconded by Shirley Henley. Motion was passed by unanimous consent. b. Drivewayapproach, Gravel Path to Forest Street, Parking Lot Lighting and Parking Area. Director Porter stated that these items were put on the agenda, as she thought that Clarence Ladd wanted to address these items. Mr. Ladd stated that he did not want to address these items as he brought them up at the City Council Meeting. c. Future Funding. Director Porter reported that she has had communication with the Older Alaskans Commission. The communication was in the form of a question regarding budget cuts and how it would effect the center* Director Porter went on to explain her views and how the cuts would relate to the center and what would have to be eliminated. Director Porter wanted everyone to be aware there would possibly be a cut, however, it is unknown at this time what that amount would be. Betty Warren was asked to contact the Borough Mayor regarding future funding. Betty will report on this when she meets with Borough Mayor Thompson, Chairwoman Johnson asked for any further new business. Gene S ipperly asked for more space to display crafts to produce more sales. Betty Warren also suggested an autograph party to sell cook books on hand. 9. PUBLIC COMMENTS Councilwoman Bailie asked about the difference between KENAI MAYOR'S COUNCIL ON AGING January 12, 1987 Page -5- total number of seniors provided escort services and total number of escorts provided. Director Porter explained. Chairwoman Johnson asked for further public comment. ADJOURNMENT Meeting adjourned at 1:40 p.m. ' Niva A. Aburto dba/Niva's Clerical Services for the City of Kenai CITY OF KENAI FOR COUNCIL INFORMATION Transfers of Funds under $1, 000 under KMC 7025.020 (a� Date Department Amount From To Explanation 1/9/87 1/9/87 Clerk Library $ $ 244 800 Prof. Services Repair/Main.• Purchase of maintenance agreement on IBM computer. Improve. Other 1/6/87 PW/Street Dept. p $ 750 Than Building Repair/Main. Repair/Main. Rentals IBM computer maintenance contract/projector repair. P 1/12/87 • Recreation $ 800 Miscellaneous Repair/Main. Crane rental/re airs from flooding. P g urc Carpet p purchase. 1/12/87 1/14/87 Senior Center PW/Water $ $ 218 999 Operating Supp. Prof. Print/BindingLetterhead and d envelopes. 1/14/87 PW/Sewer $ 999 Services Prof. Print/BindingCosts for - a s built water projects. 12/16/86 Building Dept. $ 500 Services Miscellaneous Print/BindingCosts Oper/Su lies PP for a - • as -built sewer projects. Screw rivet ,wire � ,.ire nut,etc. assortment set up 12/18/86 Float Plane $ 999 Engineering Land Acquis. under Bowman System. Deposit with Cour rt. t. 12/22/86 12/24/86., Airport Fire Dept. $ $ 200 400 Contingency Repair/Main. Airport Admin. Cannon cartridge. Copier ' p dge. Sm. Tools/ 12/24/86 Clerk $ 480 Prof. Services Repair/Main. Repair/Main. Repairs on nozzles (money allocated to wrong acct.) Purchase of a' m intenance agreement on IBM computer. I ZZ. Al FOOOO (//1 1 f1� ) S J CITY OF KENAI 0 "Od Cap" 44" ff 210 FIDALGO KENAI, ALASKA 98611 TELEPHONE 283 - 7535 �f�Adf •qr TTiYGff�✓E-.r�TS To 7i�is „d .may MEMORANDUM TO: William J. Brighton, City Manager FROM: Keith Kornelis, Public Works Director DATE: January 15, 1987 FOR: HARBOR COMMISSION MEETING OF 1/15/87 SUBJECT: KENAI BOATING FACILITY Attached is an outline for the Harbor Commission. I do not mean to tackle this all tonight, but I am requesting everyone to take the outline home and seriously think about each and every point. I am hoping the Harbor Commission will add some points, reveal some possible problems, work on a solution, and make some comments. The more the operation is discussed, thought about, and worked on, the less chance of problems when the operation starts. I. PROJECT STATUS REPORT II. LIST OF FACILITIES: MAINTENANCE & OPERATION III. CONTRACT VS CITY OPERATION IV. ADDITIONAL PERMITS, STATE & FEDERAL COORDINATION, PAPERWORK NECESSARY V. OTHER FACILITIES VI. CITY OF KENAI 87-88 BUDGET VII. PROBLEMS AND SOLUTIONS VIII. COMMENTS KENAI BOATING FACILITY JAN ARY 15, 1987 HARBOR COMMISSION MEETING I. PROJECT STATUS REPORT A. Status at this time: 1. Contract Sum = $1,5659500 2. Completed and Stored to Date - $2579093 3. Around 16 o complete 4. See Attachment A for details B. Changes (at no change in costs): 1. Went to all 24" x 1/2" main piles except for four ice piles staying at 30" x 1/211. This increased piling by adding 15 tons. 2. Went to 12" x 1/2" fixed fender piles in lieu of 10" x 3/8" removable pile over 8" pin pile. 3. Minor electrical changes C. Project was designed to be: 1. Structurally sound - sturdy and basic 2. Lowest maintenance cost possible 3. Vandal proof (prison fixtures, concrete solid color block, etc. D. Completion Dates: 1. Basic: JUNE 159 1987 Dock, trestle, erosion protection, parking, etc. 2. Alternatives: - JULY 309 -1987 (#1) Fuel, (#2A) A -Crane, (#3) Restrooms, Septic, Landscape and (#4) Repair Grid II. LIST OF FACILITIES MAINTENANCE & OPERATION - Many items requiring methods of operations, City Ordinances, rules,_ regulations, control, fees, etc. and how to implement. A. Dock: 36' x 170' Trestle: 16' x 200' B. Fueling Facilities: Fuel tickets? piping, tanks, hoses, nozzles, valves, fencing, pumps, etc. C. Lighting: Dock and Trestle, Restroom, Ramp, Parking lot, etc. D. Repair Grid: No painting, times? Use request? E. Parking: Boats, trailers, cars, RV, etc. - Where? Impounds? Future expansion? F. Restrooms: Janitorial,,showers, sinks, toilets, paper, trash, etc. G. Well & Well House: Piping, Pumps?, Distribution, H. Water Washdown: Boat cleaning, reel, hoses, nozzles, etc. I. Unloading Crane: Credit Card?, $/hour, $/pound, $/month, ?, have room for 2 more. J. Septic Holding Tank: Wash down, hose, emptying, etc. K. Waste Oil Tank: Clean-up, emptying, etc. L. Trash or Refuse: Clean-up, Peninsula Sanitation contract. M. Boat Launching Ramp & Float: Small private dingies and boats tied and laying on float. N. Access to Larger Boats Anchored in River: Everyone have dingy? Ferry system operated by who? 0. Signing: Where, what, capital and maintenance cost, charges, etc. P. Road and Parking Lot Maintenance: City maintained versus contractor Q. Hours of Operation: Limited or unlimited - fuel, restrooms, washdown, dock office, crane, etc. R. Dock Office: Maintenance, hours S. Telephones: Dock office, - Restrooms, - Public Pay Phones, Private? _ T. Erosion Protection: Additional Gabions? Rip -rap? Gravel? III. CONTRACT VS CITY OPERATION A. Many Unknowns: 1. Number Processors wanting to use? 2. Number Commercial Boat Owners wanting to use? 3. Number Recreation Boat Owners wanting to use? 4. Fueling needs? Gallons? Types? 5. Unloading crane needs - 1 enough? 6. Repair grid use? B. Contract Pro's: 1. Less trouble and worry for City Administration 2. If it turns out to be losing business - City (supposedly) does not lose (contractor does) 3. No additional personnel 4. Contractor have start-up problems, rules, regs, equipment, etc. (not City) BUT then again City will be called on to correct or change. 5. Less accounting, billing, collection, etc. by City Finance Department C. City Operate Pro's: 1. Both ways City still has to make the rules, regulations, set fees, ordinances, etc. BUT if City operated it may be easier to make changes, additions, and deletions. 2. City has more control if not under contract to someone. 3. The first few years have new equipment less likely to break down and more likely to be covered by warranty. 4. Existing City crews may be able to do much of the work: Restroom and lawn maintenance (Parks & Rec); Septic and holding tank pumping (Public Works - Sewer and Water); grade road and parking lot, sign repair, pull floats, etc. (Public Works - Streets); light - repair, pumps, heat, etc. (Public Works - Building Maintenance) - STILL would require a "Kenai Boat Facility Manager" for 3-5 months. 5. May be a money maker for the City with the right people and proper efficient operation. 6. May serve the public better if not trying to make the biggest profit possible. IV. ADDITIONAL PERMITS, STATE & FEDERAL COORDINATION, PAPERWORK NECESSARY A. U.S. Coast Guard - "Letter of Intent to Operate a Boat Fueling Facility" Be U.S.- E.P.A. "Spill Prevention and Containment Contingency Plan" C. Occupancy Permit D. Fire Marshall Inspection E. D.E.C./Fish & Game/Parks V. OTHER FACILITIES A. Attachment B is Kasilof Small Boat Harbor Rental Agreement with Rice in 1981 Be I will be writing for input from: 1. Anchorage 2. Homer 3. Seward 4. Whittier 5. Ninilchik 6. ? VI. CITY OF KENAI 87-88 BUDGET A. Finance would like by February 18, 1987 Be See Attachment C - Estimate of Costs & Revenues C. Can Include: 1. Revenue estimates with sources 2. Personnel Services 3. Office Supplies 4. Operating Supplies 5. Repair and Maintenance Supplies 6. Small Tools and Minor Equipment , 7. Professional Services 8. Communication 9., Transportation 10. Advertising 11. Printing and Binding 12. Insurance 13. Public Utilities 14. Repair and Maintenance (contract) 15. Rentals 16. Misc. 17. Land, Buildings, other than building 18. Machinery and Equipment VII. PROBLEMS AND SOLUTIONS: Please bring up any problem or potential problems and please at least try for a solution. 1.A) Problem: 1,9B) Solution: 11 T T T nnuurkirc _ �-.r A/ POD 01> "I -7 HOMER ELECTRIC ASSOCIATION, INC. 3977 LAKE STREET HOMER, ALASKA 99603 FCity of Kenai 210 Fidalgo Kenai, AK 99611 A/C 143 Member #6370 DATE -9- REFERENCE CHARGES 1200/900104 Marathon Road Relocation Letter of Agreement dated 8-2-85 Labor & Overhead Consulting Engineer Materials & Handling Transportation Less Cost of Item #4 Betterment Credit Plus Cost of Item #4 Balance Due ea PLEASE REMIT COPY WITH PAYMENT. 42146 (Rev. 12-83) CREDITS I BALANCE BALANCE FORWARD 15, 722 9 0 3, 412.2 10, 808. 1 56597 (8 , 467.0 ) ( 15 , 428 9 8 ) 10 �o 8. 467.0 aK cqq $15,079o35 NET 20 DAYS V Promoting the Kenai Peninsula and its Communities , C ,� BETTY GLICKActina Chairman ��%�`: 7 � .1..t_V►t►L.1L.�: n' n :: i%'iCi� � i�J; �� i"�: n �J� �:� i� i:'�c�'�:'�� '�' � �C'k'� n'��►�ii �i;?�..�n i�'�i�' n A G E N D Azz KENAI PENINSULA CAUCUS MEETING' 1:00 F.M. Saturday, January 17, 1987 Council Chambers Homer City H"-11 491 E . Pioneer Ave . , Homer, Alaska � ^ iCi��'�`�"�'n n'iCi� �►i�► n �� n��i� i�n n n'ziC��C'n n � i� n � � n n�n n'J� � n�� i�n n n i��'n�n �i� � :::: n'�'�� I. CALL TO ORDER II. ROLL CALL IIT. - MINUTES OF KENAI PENINSULA CAUCUS MEETING DEC. 13, 1986 IV. APPROVAL OF AGENDA V. FRONTIER TRAINING CENTER— Presentation by Maureen Karigan (See Attachment) ?d000 VI. BRADLEY LAKE PROJECT - Presentations by: y a. Representatives from Alaska Power Authority b. Representatives from Homer Electric Assoc. c. Bradley Lake Steering Committee VII, OLD BUSINESS VIiI. NEW BUSINESS a. Executive Committee Report b. Other IX, PUBLIC COMMENTS X. SETTING DATE/LOCATION FOR NEXT CAUCUS MEETING X I . ADJOURNMENT A.- k'7 — 0?/0 1Fi 1 t 7 r� DEPARTMENT �iENT OF NATURAL RESOURCES OFFICE OF THE COMMISSIONER STEVE COWPER, GOVERNOR POUCH M JUNEA U, A LA SKA 99811 PHONE: January 5, 1987 Ou i Dear Alaskan: • Department of Natural amendments to regulations of - t �, ep,%Enclosed are proposed _ �-.�,-„ ,,-,.• - relating to the Division of Parks and Outd-o.o.r_Recreation. These Resources g proposed amendments are being submitted to you for review and comment, as required by AS 44.62.210. The dra ft regulations are in four chapters: 11 AAC 12, 18, 20 and 21. The amendments proposed for Chapter 12 place conditions on having a pet in a state leaving unattended camps, and change the definition of developed park, 1 �� g 18 proposed amendments establish facilities to exclude roads. In Chapter p p condition s for commercial use permits. Chapter 20 proposes regulations which open units of the State Park System to activities restricted in Chapter 12 on t r a unit -by- _^. t basis. Amendments to Chapter 20 open several un_t_s to the discharge:& o. firearms in pursuit of lawful hunting and trapping and reduce the distance r io—_. a developed facility in which the discharge of a " -rearm is Prohibited . . :additional state park units are closed to the use or alcoholic erred to the use of bicycles, and changes in the conditions under o beverages, p • person may recreationally pan for gold are also proposed in Chap — which a p Proposed regulations recommended by the Kenai River Special ter �0. Prn P Managemen t Area Comprehensive Plan governing the use of specialized water craft, camping 'n on islands and water skiing are included in Chapter 20 revisions. Chapter ter 21 proposes restrictions on conditions or activities occurring on land and water in the Alaska Chilkat Bald Eagle Preserve. These acti vities include the disposal of refuse and waste, the use of motor ve- hicles, the construction of structures, the disturbance of natural objects, vandali sm and commercial uses. Proposed regulations for the Eagle Preserve well also establish criteria under which closure and use management will occur and conditional activities may be permitted* proposed Your comments on ro the osed draft regulations will be most useful to the de if you reference particular sections by number and if you suggest department g specific wordingchanges or other, modifications you feel would result in improvement to the regulations* The enclosed legal notice details exactly how and when comments are to be submitted, whether by mail or at the hearings to be conducted at the times and locations outlined in the notices cerely, i� J me K. Bar t � eputy Commissioner enclosures - Proposed Regulations ,ZNFo-a/ BICENTENNIAL CONSTITUTION COMMITTEE Minutes, Organizational Meeting Held, Kenai Elks Lodge Wednesday, January 14, 1987, 6 p.m., AST Presiding: Walt Koerber (Elks), Co -Chairman Craig Fanning, Co -Chairman 1. ROLL Present Craig Fanning Walt Koerber Richard Hultberg Bill Brighton Debbie Williams Mari O'Reilly Barb Sandahl Robert Summers Absent Sue Carter Tom Ackerly In attendance: John Williams, Mayor of Kenai 2. BICENTENNIAL CELEBRATION Chairman Koerber reported he would write to a Mr. J.F. Price, one of the Commissioners for the United States Bicentennial, to get the date when the United States would be celebrating the Bicentennial. The Elks have designated as Bicentennial Week, February 16th through the 22nd. They have proclaimed that week as National Patriotism Week, The Elks have sent for one hundred 9 X 21 placard flags to provide. They are proposing that the Cub Scouts and Boy Scouts put these on the windows of every business in the C i ty of Kenai There are kits that have also been ordered that contain the Bill of Rights, Declaration of Independence, Constitution and Monroe Doctrine. They will be placed on a billboard for display at the schools, City Hall and Airport. Decals will also be ordered. It was suggested that one be made permanent for the schools, BICENTENNIAL CONSTITUTION January 14, 1987 Page -2- Chairman Koerber suggested the schools may be interested in making the displays as a school project. Chairman Koe r ber asked if the Mayor would make , a proclamation for National Patriotism Week,, Government Week was also discussed. This could be incorporated with National Youth Week, which is May 6th. General discussion was held regarding Flag etiquette. It was pointed out that during June on Flag Day, the committee could run a series of articles in the newspaper on flag etiquette. The Elks publication of "We the People" was brought into the discussion, as it contains information on the flag. Copies will be made and sent to the committee members. Committee members discussed offering small flags f o r sale in the community. Co -Chairman Fanning will check into the purchase of flags, Mayor Williams suggested displaying the preamble of the City Charter and State Constitution under glass, and making copies of the City Charter for handouts. Mayor Williams will check on a booklet that is published and perhaps order for hand-outs. A Bicentennial calendar was passed around and displayed to the committee members. The historical value of the calendar was discussed, Committee member Summers reported on the plans the Veteran's of the Kenai/Soldotna area have regarding the construction and ceremonial placement of a Memorial for those veterans that have fallen and also, those that are home. Committee member Summers asked the committee to consider joining in this effort. The question of location and the Memorial Park was brought into the discussion. Mayor Williams suggested that contact be made with the Memorial Committee. BICENTENNIAL CONSTITUTION COMMITTEE January 14, 1987 Page -3- 3. NEXT MEETING It was decided that the next meeting would take lace y, January 26, 1987 at 6 p.m at City Hall, Monday, Janu p . . ADJOURNMENT Meeting was adjourned at 7:00 p.m. Niva A. Aburto dba/Niva's Clerical Services for the City of Kenai ,ZiVPD-aa CITY OF K E N A I "Od a 4 4za d 210 FIDALGO, , ;e?&f ALASKA 99611 TELEPHONE 261 �7535 r1 Q r� y CITY OF K ENAI BACKGROUND AND PERSONAL DATA - CANDIDATES FOR APPOINTMENT TO COMMISSIONS AND COMMITTEES NAME Katherine Boling Resident of City of Kenai? X How long? 4 years Home Address Central Ave Chuda House Tel. 283 3241 Bus. Address same Tel. 283 5459 Name of Spouse Presently employed by Cook Inlet Housing Job Title Building Manager Senior Housing Current Membership in organizations: Kenai, Native Association Regional ReP resenative for Christian Womens Clubs Member American Conferance on Aging Past Organizational -membership: Kenai Native Assocation, City of Anchorage P.T.A. Officer Committees interested in: Council on Ageing Signature Every year Cook Inlet Housing has me attend the American Society on Aging Meetings taking part in workshops etc. to help me keep up with all the new and changing challenges and ideas on coping with the changes we all make in the aging process.