HomeMy WebLinkAbout1994-06-01 Council PacketKenai City Council
Meeting
June 1,
Packet
1994
A.
B.
C.
AGENDA
RENAI CITY COUNCIL - REGULAR MEETING
June 1, 1994
7:00 P.M.
RENAI CITY COUNCIL CHAMBERS
CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. 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.
SCHEDULED PUBLIC COMMENT (10 Minutes)
1. Paul Dale (Snug Harbor): City dock lease.
2. Charlie Pierce: Basin View Paving Project.
3. David Beckett: Acquisition of City Property for
Habitat for Humanity.
4. Gus Rodeo: Protocol for Public Comments at Council
Meetings.
PUBLIC HEARINGS
1. Resolution No. 94-33 - Authorizing the execution of
cooperative participation agreements among Alaska
municipalities and school districts creating the Alaska
Municipal League joint insurance arrangement.
2. Resolution No. 94-34 - Transferring $4,601 in the
Airport Land System for purchase of a flail mower.
3. *1994 Games of Chance and Contests of Skill Permit
Application: Peninsula Oilers Baseball Club, Inc.
-1-
D. COMMISSION/COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Library Commission
5. Parks & Recreation Commission
6. Planning & Zoning Commission
7. Miscellaneous Commissions and Committees
E. MINUTES
1. *Regular Meeting of May 18, 1994.
F. CORRESPONDENCE
G. OLD BIISINESS
H. NEW BIISINESS
1. Bills to be Paid, Bills to be Ratified
2. Purchase Orders Exceeding $1,000
3. *Ordinance No. 1596-94: Increasing estimated revenues
and appropriations by $44,375 in a new capital project
fund entitled "Airport Signage Project."
4. Approval: Change Order No. 1 - Thompson Park Water &
Sewer Project. Foster Construction/$11,000.
5. Discussion: Crosswalk at Kenai Spur Highway and Tinker
Lane.
6. Discussion: Bluff Erosion Control.
7. Approval: Consent to Assignment for Security
Purposes - Lots 7 & 8, Block 1, F.B.O. Subdivision -
Blue Mountain Ventures, Inc. to National Bank of
Alaska.
8. Discussion: Dock lease.
-2-
I. ADMINISTRATION REPORTS
1.
Mayor
2.
City Manager
3.
Attorney
4.
City Clerk
5.
Finance Director
6.
Public Works Director
7.
Airport Manager
J. DISCUSSION
R.
1. Citizens (five minutes)
2. Council
-3-
MAYOR'S REPORT
JUNE 1, 1994 COUNCIL MEETING
ADDITION
CHANGES TO THE AGE N A BY:
MOVE: Information Item No. 4 to Item H-9.
AND
ADD: Item H-9, for Approval - Petition to Vacate a
portion of the thirty-foot wide public right -of
-way known as Riverview Avenue, bounded on north
by Lots 6,7 and portion of Lot 8, Block 18; bounded
on south by Lots 3, 4 and a portion of Lot 5, Block
19, Original Townsite of Kenai; within Section 5,
T5N, R11W, SM. CLERK
ADD: to Item H-9, Additional Information -- City of Kenai
Planning & Zoning Commission minutes regarding
requested petition to vacate right-of-way. CLERK
ADD: Item H-10, Discussion - Senators' Visit/Reception
Costs - $2,000 requested. CLERK
CHANGES TO THE CONSENT AGENDA
MAYOR'S REPORT DISCUSSION
D:\WP51\MINUTES\AGENDA\MAYOR.RPT
ADDITION
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City of Kenai
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210 Fidalgo
MAY 1994 %
Kenai, Ak. 99611
44
To: Kenai City Mayor =
City Council Members
-Re:. Snug Harbor Seafoods dock lease
May 26, 1994
In February of 1994, Snug Harbor Seafoods asked for an extension of the
dock lease at $15,000 for the 1994 season. At this time we believed the city
would lease the other station for at least $12,000 as indicated in the
invitation to lease package sent to us and other processors. As the bid date
came and passed, it became apparent that the city was considering bids for
station #3 at less the $1210001 or possibly leasing it to a combination of
companies to make up a $12,000 total commitment. Either of these
situations would place SHS at a competitive disadvantage in a very tight and
uncertain salmon market.
At this point, SHS offers to lease buying station #2 at $151000 minimum
payment and $.0375/lb. for wharfage in excess of 400,000#, but we would
ask that the lease dollar amount be relieved by whatever percentage buying
station #3 is leased under $12,000/year, and the reduction be based on 1 /2
the total lease amount if two companies participate, or 1 /3 if three
companies participate.
Alternatively, it may be in our best interests to lease both stations, therefore
we make a second and preferred offer to lease both stations for a combined
rate of $20500/year and wharfage in excess of 800,000# at
Snug Harbor Seafoods, Inc. - P O Box 701 - Kenai, Alaska 99611
Telephone (907) 776-5342 - Fax (907) 776-5471
W'&boT-
$.0375/lb. We think this combined offer yields more to the city of Kenai
than our individual offer and the current offers on station #3. If this is not the
case, we would be willing to negotiate an increase in the value of a
combined lease.
We hope you appreciate our circumstances, and consider these offers fair
--- -and reasonable.
t
r ni"',
Paul Dale
Snug Harbor Seafoods, Inc. • P O Box 701 • Kenai, Alaska 99611
Telephone (907) 776-5342 • Fox (907) 776-5471
CITY OF KENAI
BASIN VIEW SUB. ROAD IMPROVEMENTS/ASPHALT PAVING
The survey resuhs for the proposed road enprovements in the Basin View Subdivision are
listed below.
NAME
LEQAL
us
NO
NO RESPONSE
Byerly, Marlene
L-17 B-4
Yes
Cheek, Deirdre
L-10 B-4
Yes
Ferguson, John
1-3dt4 B-2
Yes
Scott, Robert
L-20 B-4
Yes
Suva, Jim
L-3 B-4
Yes
Mamiinen, Tom
L-9 B-4
Yes
Donahue, Joe
L-21 B-4
Yes
Pettey, Jay
L-18t2 B-2
Yes
Romero, Josie
L-16 B-4
Yes
Lashot, Jack
1--8 B-4
Yes
TOTALS
Marston, Patricia
L-15 B-4
Yes
36 lots
Krein, James
" B-4
Yes
20 yea votes
Eubank, Charles
L-23 B-4
Yes
16No votes
Iverson, Larry
L-18 B-4
Yes
55% Approval
Richardson, Lloyd
L-l2 B-4
Yes
Holmes, Robert
1,24 B-4
Yes
Pierce, Charles
L-13 B-4
Yes
Mishler, Beth
1--11 B-4
Yes
Bibbler, Bonnie
L-4 B-4
No
Armstrong, Mary
L-2 B-3
No
Stillings, William
L-25 B-4
No
Coston, John
L-1 Snowflake
No
Klaben, Paul
L-2 B-4
No
Gahr, Kathie
Ir22 B-4
No
Haywood, William
L-1 B-3
No
Haywood, William
L-1 B-4
No
Thompson, Tucker
L-5 B-2
No Response
Thompson, Tucker
1,5&14 B-4
No Response
Madel, Robert
L-19 B-4
No Response
Hildegard, Plagge
Lr4 B-3
No Response
Hildegard, Plagge
L-3 B-3
No Response
Hutchins, Janice
L- Unsubdivided (24)
No Response
Hood, William
L-7 B-4
No Response
527/94
Suggested by:
City of Kenai
RESOLUTION NO. 94-33
Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA
AUTHORIZING THE EXECUTION OF COOPERATIVE PARTICIPATION
AGREEMENTS AMONG ALASKA MUNICIPALITIES AND SCHOOL DISTRICTS
CREATING THE ALASKA MUNICIPAL LEAGUE JOINT INSURANCE
ARRANGEMENT.
WHEREAS, AS 21.76 enacted by the 1986 Alaska Legislature
provides a means for local governments and school districts to
join together in a joint insurance arrangement intended to
mitigate the cyclical and erratic nature of the conventional
insurance market; and
WHEREAS, a not -for -profit Association has been established
pursuant to AS 21.76 by the Alaska Municipal League to provide
risk management services for Alaska municipalities, city and
borough school districts and regional education attendance
areas; and
WHEREAS, this Association will provide pooling of risks, self-
insurance management, joint purchase of insurance, claims
administration, loss prevention and control, insurance defense
and other related risk management services on behalf of its
members; and
WHEREAS, similar local government associations throughout the
United States have been able to assure insurance coverages
while obtaining significant long-term economic savings for
their members due to the joint buying power of the members,
the non-profit tax-exempt status of the Association, the
pooling and investment of premiums paid, .and risk management
services provided for members; and
WHEREAS, AS 21.76.010 provides that two or more local
governmental entities may enter into cooperative agreements
for these purposes; and
WHEREAS, the City wishes to participate in the Joint Insurance
Arrangement;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA AS FOLLOWS:
Section 1: The City of Kenai hereby indicates its commitment
to become a member of the Alaska Municipal League Joint
Resolution No. 94-33
Page Two
Insurance Association, organized pursuant to AS 21.76. By
making this commitment the City Council hereby accepts and
approves the bylaws of the Association, a copy of which is
attached hereto and incorporated by reference.
Section 2: The City Council hereby authorizes the execution
of a Cooperative Participation Agreement, and a second
Cooperative Participation Agreement for the Law Enforcement
Joint Liability Protection Program (hereinafter the
"Agreements") among municipalities, school districts and
regional educational attendance areas creating the Alaska
Municipal League Joint Insurance Association. The City
Manager is hereby authorized and directed to execute said
"Agreements" and such other documents as may be necessary to
effectuate participation of the City as a member of the Joint
Insurance Association.
Section 3: The City Council pledges to appropriate sufficient
funds for annual premiums and assessments under the
"Agreements". The "Agreements" will go into effect upon
receipt by the Association of a signed copy of this resolution
and signed "Agreements". The City's participation in the
Association continues for a term of three years commencing on
July 1 of the calendar year in which coverage begins. Amounts
payable to the Association, as encumbered by the "Agreements"
shall be classified as "operating expenses" and are subject to
annual appropriation by the City Council.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st
day of June, 1994.
JOHN J. WILLIAMS, MAYOR
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance: c ra
(5/24/94)
kl
CITY OF KENAI
It Od ed,12iW 4 Aad*laa it
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014
illl�l
1"2
To: The Honorable Mayor John Williams & Kenai City Council
From: Thomas J. Manninen, City Manager. -MA
Date: May 25, 1994
RE: FY95 INSURANCE QUOTES; City Administration's
Recommendation to Adopt the AML/JIA Three Year Insurance
Proposal Including Passing the Required Resolution for
the AML/JIA Pool
The City Administration has requested quotes for the City's next
three year insurance coverages. These insurance quotes were due on
May 16, 1994 and they were tabulated and analyzed by the city's
Finance Director (see the attached insurance memorandum).
CITY ADMINISTRATION'S INSURANCE RECOMMENDATION FOR FY95 AND
FOLLOWING THREE FISCAL YEARS:
The City of Kenai's Administration (City Attorney, Finance Director
and City Manager), having reviewed the FY95 insurance coverages,
deductibles and cost quotations, unanimously and without
reservation recommend that the City of Kenai's City Council adopt
the FY95 three year AML/JIA INSURANCE PLANS AS PROPOSED.
Furthermore, it is recommended that the City Council, at it's
regular City Council meeting, June 1, 1994, adopt a resolution
required by the JIA pool for the City of Kenai's participation in
the pool and authorize its execution.
It is the City Administration's strong recommendation that the time
is right to switch insurance coverages based on the cost of
existing coverages, the deductibles, cost savings/cost avoidance
and potential credits available for good performance, i.e. small
losses. The City Finance Director's insurance memorandum,
summarizing the insurance quotes, is well thought through and
summarizes the City's current insurance, preferred insurance, the
insurance quote comparisons, as well as financial comfort zone and
analysis of the AML/JIA recommendation. The bottom line is
straight forward. There is a net $20,000 annual cost savings on
the insurance quotations comparing AML/JIA with the traditional
insurance plan. As pointed out in the memorandum, this would be
approximately $52,000 less than the City of Kenai paid in FY94.
Furthermore, adopting the AML/JIA plan will result in a substantial
cost savings of $147,000 from the FY95 budgeted insurance cost.
Several reservations and questions about switching to a "pooling
concept" were answered satisfactorily by the Finance Director's
memorandum and discussions. Some of these included tails and
deductibles, prior acts coverages, cost savings/cost avoidance,
strength of reinsurance carriers and $3.225 million for all claims
that occur. Also, AML/JIA credit or assessment is limited to 10%
of the liability premiums for all but Police. Finally, the City's
pooling obligation would be that the City would have the first
$25,000 of each loss for general liability, public officials, and
auto. Between $1 and $25,000 losses, the City would not
participate in loss pooling with other municipalities; loss pooling
with other municipalities, based on experience and exposure, would
occur between $25,000 and $225,000 of Kenai's individual losses.
Losses above $225,000 would be covered 100% by the AML/JIA pool and
reinsurance provisions. This is somewhat different for the Police
pool, but the principal and concept of pooling above a $25,000 loss
remains basically the same in the JIA Police pool.
Finally, as pointed out in the Finance Director's memorandum, the
AML/JIA pool reserves include over $11 million cash and a projected
$2 million surplus. The AML\JIA is now a financially stable and
viable insurance pool, strictly specializing in municipal business.
By providing municipal loss and safety training and keeping each
year's losses separate for pooling purposes, it has a specialized
niche and it's time for Kenai to join the AML/JIA plan.
C:\WP51\TJN\INSURANC
CITY OF KENAI
►► Od ears 4 4&i4a►►
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 bftd
rr.r.ati
'III►
1":
MEMORANDUM
TO: Thomas J. Manninen, City Manager
FROM: Charles A. Brown, Finance Director
eqQ
DATE: May 19, 1994
SUBJECT: Insurance Quotes, FY95
Quotes for next year's insurance were due May 16, 1994. I
received renewal quotes, with several options that I had
requested, from Last Frontier and Walters & Olson. The
AML/JIA also quoted two options. An analysis and summaries of
the quotes follow. Not every option is discussed. I've made
great effort to select the options the City needs and that are
comparable with one another.
Current Insurance
In general, our current policies are zero or low deductible on
liability policies. We do have deductibles of $25,000 on
property, $5,000 on Public Officials, $25,000 on Police,
$1,000 on Airport, $1,500 on mobile equipment, and $250 on
Ambulance.
In total, including workers comp., we paid about $372,000 in
insurance premiums this (FY94) year.
Next Year's Preferred Insurance
The City should be increasing its deductibles and assuming
more risk. Last year, Council agreed with that aspect of my
insurance recommendations. I recommend that most liability
policies should have $25,000 deductible and that the property
policy should have a $50,000 deductible. The savings are
quite substantial. By increasing the deductibles by $25,000
(and less on some lines), we save about $77,000 over the low
deductible plan (in the program I recommend). If -we adopt a
higher deductible program, we should increase the General Fund
designation of fund balance for self-insurance at June 30,
1994.
Memorandum
Thomas J. Manninen
May 19, 1994
Page Two
Next Year's Ouotes
Traditional AML
Insurance JIA
General Liability, Auto, Police;
occur. form; $4,000,000/occur.
& aggreg.; $25,000 ded.;
Mt. Airy $ 123,000 --
General Liability, Auto, Police,
Public Officials; occur. form;
$3,225,000/occur., no aggreg;
$25,000 ded. - $ 112,910
Property; scheduled values;
$50,000 deductible;
AK National (Trad.) 23,600 22,028
Public Officials; claims made
form; $4,000,000/claim & aggreg.;
$5,000 ded.; Mt. Airy (Trad.) 15,000 Included
in G/L
Workers Comp.; statutory; $500,000
Employer's Liab. ($1,000,000 in
JIA);
Industrial Indemnity (Trad.) 125,889 142,465
Mobile Equipment; schedules values;
$25,000 deductible; Phoenix
Assur. (Trad.) 7,275 Incl. in
Prop.
Airport; occur. form; $50,000,000
C.S.L: products; $25,000,000
C.S.L./occur. & aggreg. personal
injury; deductibles; $1,000/
occur., $5,000/property damage;
National Union Fire (either
program) 35,000 35,000
Ambulance; mid -year renewal, Jan.,
1994 quote; $500,000/occur.,
$1,000,000 aggreg.; $250
ded.; Northland (Trad.) 2,374 Incl. in
G/L
Memorandum
Thomas J. Manninen
May 19, 1994
Page Three
Physician Sponsors Medical
Malpractice
Totals*
513
332.651
Incl. in
G/L
$ 312,403
As you can see, the AML/JIA is about $20,000 less expensive.
In addition, with good claims experience, the City can expect
up to $34,500 in credits from the JIA toward future premiums.
The JIA credit or assessment is limited to 10% of liability
premiums (except Police, which credit generally would not
exceed 70%). While I will not guarantee a credit, some credit
is extremely likely because the calculation is against each
line independently. For example, had the City joined the
AML/JIA pool for the current year under the plan I
recommended, the City would likely be receiving a credit from
FY94 of about $41,000. When added to the reduced premium for -
that plan, the City would have saved about $90,000 in FY94
insurance costs had we joined the J1A.
Financial Capabilities
With regard to financial capabilities, I am uncomfortable with
the companies backing the "traditional" insurance quote. Mt.
Airy is an A- company. Until the quarter ending September,
1993, its size was quite small. During that single quarter,
policyholder surplus increased from about $12,000,000 to
nearly $186,000,000 (1450%). Not long ago, in 1991, the
company experienced a net underwriting loss of $80,000.
Considering that the Mt. Airy quote is for $4,000,000 of
coverage on the bulk of our liability lines, thus omitting an
excess policy, I simply do not feel comfortable with the
company. The proposing broker admits that Mt. Airy offers
less strength and stability.
At this point, I'll mention that we received an optional quote
for "traditional" insurance. That quote, however, is even
less appealing. It does not offer the deductible level I
requested for public officials liability, it includes two A -
companies, one company is non -admitted in Alaska, and it costs
$4,500 more than the other "traditional" option. It also
would continue with Alaska National as our general liability
carrier. Cary and I are both unhappy with Alaska National's
response to claims.
* Totals do not include Museum at about $7,120. Policy would
have to be added at mid -year under any plan chosen.
Memorandum
Thomas J. Manninen
May 19, 1994
Page Four
I am confident that the AML/JIA has sufficient resources to
meet obligations of the pool. It has over $11,000,000 in cash
and a projected $2,000,000 surplus. Losses greater than
$225,000 in the pool are reinsured with Sphere Drake, a non -
domestic company with about $235,000,000 in shareholders'
equity.
Further Analysis of AML/JIA
The JIA is a strong, proven organization. I recommended
entering the pool last year. This year, it is even more
attractive. The refund or surcharge is now limited to 10%
instead of 30% (except for Police). Liability limits have
been increased to $3,225,000 from $2,250,000. I will briefly
list my reasons for again recommending the JIA pool and
details of how the pool operates.
1) All JIA coverages are occurrence form, with no claims
made forms. I prefer occurrence form. (The traditional
program includes claims made.) Prior acts are covered,
so no tail will be needed in the JIA.
2) Limits of coverage are higher. The JIA has no
aggregates; we'll be covered up to $3,225,000 for as many
claims that occur. The traditional plan has an aggregate
equal to one occurrence limit.
3) As stated above, surcharges are now limited to 10% per
year per line (except Police).
4) The JIA costs less than the traditional options.
5) Coverages appear at least as broad as the traditional
program.
6) The cost is predictable. It will be a simple matter to
budget for insurance.
7) The rating is simple, based on easily identifiable data
such as payroll, auto counts, and property values. This
will allow for simple cost allocation to the various
funds.
Memorandum
Thomas J. Manninen
May 19, 1994
Page Five
8) The JIA general pool (not Police) will work this way:
a) The City will pay the first $25,000 of each loss
(G/L, Public Officials, Auto).
b) The City would not participate in any loss pooling
of the first $25,000 of each loss incurred by other
municipalities.
c) Individual losses between $25,000 and $225,000, of
Kenai's and other municipalities, will be pooled
based on experience and exposure.
9) The JIA Police pool will work this way:
a) The City will pay the first $25,000 of each loss.
b) The City will not participate in pooling other
municipalities' losses of $25,000 or less.
c) Losses between $25,000 and $100,000 will be pooled
based on experience.
d) Losses between $100,000 and $250,000 will be pooled
based on exposure.
e) Excess losses are reinsured.
10) The above pooling methods substantially reduce our
exposure to other cities' losses.
11) For my part, joining the JIA will remove bidding and
politics from the process.
12) The JIA coverage memorandum is much easier to understand
than our traditional insurance policies. I believe we
may actually have a good idea what we are buying.
13) JIA loss control is specifically tailored for
municipalities.
Summary
Without reservation, I reoommend that the City join the JIA.
Cary is also familiar with the City's insurance; he also
recommends the JIA. The plan I've presented will cost about
Memorandum
Thomas J. Manninen
May 19, 1994
Page Six
$52,000 less than we paid in FY94. It will also cost about
$147,000 less than we budgeted for FY95.
Health Insurance
Walters & Olson marketed our health insurance. I had budgeted
for a 20% increase. It appears that they did a fine job.
Instead of a 20% increase, we'll have a nearly 14% decrease.
Well come in about $150,000 under budget.
Action
This matter should be placed on the June 1, 1994 Council
agenda. That will be the last regular Council meeting which I
will attend this fiscal year. Or, if you want to handle this
alone, you could wait for the June 15 Council meeting.
If we move into the JIA pool, Council must adopt a resolution,
I have the form.
t G a 5 t u i P 0- -ret
Ve
ALASKA MUNICIPAL LEAGUE
JOINT INSURANCE ASSOCIATION, INC.
B YLA WS
AS AMENDED OCTOBER 29, 1990
ALASKA MUNICIPAL LEAGUE JOINT INSURANCE ASSOCIATION, INC.
BYLAWS
ARTICLE 1 - NAME
The name of this association shall be ALASKA MUNICIPAL LEAGUE JOINT
INSURANCE ASSOCIATION, INC.
ARTICLE 2 - DEFINITIONS
The following terms have the following meanings for the purpose of these bylaws:
(a) "AML" means Alaska Municipal League.
(b) "Annual Deposit Contribution" means the amount of contribution payable by
a member of the Association for a particular type of risk coverage for a one-year period as
determined by the Trustees of the Association, exclusive of entry fee and supplemental contributions,
if any.
(c) "Association" or "JIA" means the Alaska Municipal League Joint Insurance
Association, Inc.
(d) "Cooperative Participation Agreement" means a written agreement entered
into by two or more local public agencies for the purpose of establishing, operating, or participating
in a joint insurance arrangement. For the purpose of these bylaws, the phrase does not refer to any
specific agreement but is a reference to whichever agreement applies for a particular program or Par-
ticipant.
Alaska.
(e) "Director of Insurance" shall mean the Director of Insurance of the State of
(f) "Joint Insurance Arrangement" means a joint insurance arrangement
authorized under AS 21.76.010 to enable the participants to pool contributions of public monies,
grants, loans, and income from investment of the same in joint insurance funds as are authorized by
AS 21.76.010, in order to either assume such risks from losses to the participants as it may determine
shall be assumed, or purchase any and all insurance coverage for the participants on a group basis,
as authorized by statute.
(g) "Local public agency" means any political subdivision of the state, including
any municipality, school district or regional educational attendance area as defined in AS 21.76.10
AMWIA Bylaws Page 1
10129190
or such other public entity as may be permitted under AS 21.76. and which is a member in good
standing of the Alaska Municipal League ("AMU).
(h) "Municipality" means a political subdivision incorporated under the laws of
the State of Alaska that is a home rule or general law city, a home rule or general law borough, or
a unified municipality, and for purposes of the joint insurance arrangement, shall include pursuant
to AS 21.76.010 school districts and regional educational attendance areas and all agencies or
political subdivisions thereof, including without limitation, municipally -owned hospitals, utilities,
service areas, port authorities or facilities, airports, and similar entities, agencies or services.
(i) "Participant" or "participating member" means a local public agency which
has joined the Association and is in good standing with the AML and the JIA, as set forth in Article
5. Section 1, below.
0) "Public liability" means any liability to which a political subdivision may be
subject pursuant to the agreement.
(k) "Trustees" means the Board of Trustees of the Association, as provided in the
Cooperative Participation Agreement, and as defined in AS 21.76.900(3).
(1) The terms "administrator" and "fund" or "joint insurance fund" shall have the
meanings ascribed in AS 21.76.900.
ARTICLE 3 - PURPOSE AND OBJECTIVES
Section 1 - General Purpose
These bylaws are promulgated to create a joint insurance arrangement which may
establish and operate such joint insurance funds under the Association as permitted by Alaska
statutes, as an essential governmental service to members of the AML and Participants in the
Association.
Section 2 - General Objectives
The general objectives of the Association are to formulate, develop and administer
a joint insurance arrangement for the Participants, to facilitate the availability of adequate coverage
for, without limitation, liability, automobile and workers' compensation, and such lines as are
authorized by statute and the Trustees, to lower costs and assure availability of such coverage, to
provide a program of loss prevention and control services, and to provide claims administration and
covered insurance claim defense services. Risks which may be pooled include, but are not limited
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to, public liability; automobile liability, including liability to pay basic reparation benefits;
automobile collision losses and losses customarily covered by the comprehensive coverage
provisions of automobile insurance policies; property loss or damage; and workers' compensation.
The joint insurance arrangement to be established pursuant hereto shall not be for disability
insurance, health insurance, life insurance or title insurance, so long as such insurance is prohibited
by AS 21.76.10(b).
Section 3 - Use of Funds
The Association shall be nonprofit and all funds in excess of expenses and costs of
loss control activities and reasonable reserves required by law or greater, as established by the
Trustees, shall be used to reduce the cost of insurance or increase risk protection for the Participants;
excess funds may, at the determination of the Trustees, be distributed to the Participants as provided
by the Cooperative Participation Agreement.
Section 4 - Activities of Association/Ownership of Assets
It is intended that the Association shall perform those risk management activities with
the assistance and cooperation of its Participants, including pooling of risks, self-insurance
management, joint purchase of insurance, claims administration, insurance defense, loss prevention
and control, and all other related activities which are essential governmental functions of the
Participants. All income and assets of the Association shall be dedicated to the benefit of the
Participants and shall be the property of the Participants according to their respective interests and
as provided by the Cooperative Participation Agreement.
ARTICLE 4 - NATURE OF THE ORGANIZATION
The Association shall consist of a nonprofit corporation whose members are local
public agencies of the State of Alaska, as defined in Article 2 hereof. Any local public agency in the
state may become a member of the Association provided it is a member in good standing of the AML
and agrees to comply with these bylaws and the rules, regulations and contractual commitments of
the Association. Any local public agency that becomes a Participant of the Association may
continue to be a Participant so long as it complies with these bylaws and the rules, regulations and
contractual commitments of the Association including payment of annual deposit contributions,
unless membership is canceled or otherwise terminated in accordance with these bylaws and the
Cooperative Participation Agreement.
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Participation in the Association commences upon the effective date of any risk
coverage provided by the Association, and as provided in the Cooperative Participation Agreement.
ARTICLE 5 - PARTICIPATION
Section 1 - Composition
The Participants of the Association shall be the local public agencies which are
members in good standing of the AML, which complete the form of application which the Trustees
shall specify, which upon approval of said application by the Trustees shall execute the Cooperative
Participation Agreement (provided the RA shall have received written notice of the execution of said
agreement), and which thereafter comply with all of the requirements of the Association.
Section 2 - Representation
Each Participant shall be represented by a permanent representative who shall be the
chief executive officer of each local public agency or his or her designee.
Section 3 - Annual Meeting
Annual meetings of the Participants shall be held each year, in conjunction with the
AML Annual Conference. The purpose of these annual meetings is for the Trustees to present an
annual report to the Participants concerning the premium year just ended. This meeting will include
discussion and review of the program, and will be open to all Participating Members.
Section 4 - Special Meetings
Special meetings of the Participants may be called at any time by the Trustees or by
the chairman and shall be called by the chairman or secretary at the written request of at least one-
third of the Participants or four Trustees.
Section 5 - Place of Meetings
All meetings of the Participants shall be held at such place in the State of Alaska as
shall be designated in the notices or waivers of notice of such meetings, as determined by the
Trustees.
Section 6 - Notice
Written notice of each meeting of Participants, whether annual or special, stating the
time when, and the place where it is to be held shall be served either personally or by mail, telegraph
or other form of electronic written communication, not less than 10 nor more than 50 days before
the meeting. Notice of a special meeting that is called shall indicate that it is being issued by or at
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the direction of the person or persons calling the meeting. Each notice shall be directed to the
representative of each Participant at his or her address as it appears on the application to participate
in the Association, unless he or she shall have previously filed with the Administrator a written
request that notices intended for him or her be sent to some other address. in which case it shall be
sent to the address designated in such request.
Section 7 - Quorum and Proxy
A quorum shall consist of a majority of the designated representatives of the
Participants in good standing, attending the meeting in person or by proxy, for purposes of
conducting matters upon which a vote of members is required or permitted. provided that a proxy
shall be counted only for purposes of establishing a quorum and voting on issues specifically set
forth in the proxy. As to matters not specifically set forth in a proxy, the majority vote of the entire
membership of Participants shall be required for passage. No quorum shall be required to conduct
a meeting of Participant members at which no vote is taken.
Section 8 - Cancellation of Participation
The Board of Trustees shall have the right to cancel a Participant's membership in the
Association upon a two-thirds (2/3) vote of the entire Board of Trustees for those Participants taking
part in any program whereby Participants assume risks from losses on a group basis. Grounds for
such cancellation shall include failure to conform to loss prevention or safety programs; failure to
adhere to material provisions of the Cooperative Participation Agreement or default in performance
of obligations under said Agreement; failure to meet underwriting standards established by the
Association; insolvency of the Participant; or such other condition as the Association, acting through
the Trustees, shall determine and incorporate by agreement. For any program whereby Participants
purchase coverage on a group basis, the Participant's membership in that program may be canceled
in accordance with the applicable insurance policy and Cooperative Participation Agreement.
Section 1 - Function
The Association shall be governed by a Board of Trustees. The Trustees shall operate
the Association and administer the joint insurance arrangement on behalf of the Participants pursuant
to these bylaws and shall be composed of the number of trustees appointed in the manner hereinafter
set out, and shall have the functions, powers, and duties hereinafter set forth.
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Section 2 - Membership
(a) An interim Board of Trustees of nine (9) members shall be appointed by the
AML Board of Directors to govern the formation of the Association and its operation until the AML
Board of Directors appoints the first Board of Trustees in accordance '" ith subsection (b) of this
section.
(b) The first Board of Trustees shall be appointed by the AML Board of Directors
for the following terms:
Two members shall serve a one-year term;
Three members shall serve a two-year term;
Two members shall serve a three-year term.
The first appointed Trustees shall meet the qualifications set forth in subsection (c) of this section.
After the expiration of the terms of the first Trustees, the successors shall serve for the terms
specified in subsection (c). The Executive Director of the AML shall serve as an ex-offrcio,
nonvoting initial Trustee for a term concurrent with his or her tenure as the AML Executive Director.
(c) After the expiration of the term of the initial Board of Trustees, the Board of
Trustees will consist of seven (7) members appointed by the AML Board of Directors for two-year
staggered terms. Each Trustee shall hold office until the annual meeting at which his or her
successor is appointed. The Trustees will consist of the following:
(1) Two (2) AML Board members; and
(2) five (5) individuals, including appointed or elected officials from local public
agencies appointed for their expertise in insurance, finance administration,
risk management, law, or other areas of expertise deemed appropriate by the
AML Board.
(d) The Executive Director of the AML shall serve as an ex-offrcio, nonvoting
member of the Board of Trustees for a term concurrent with his or her tenure as the AML Executive
Director.
(e) Not fewer than four (4) members of the Board of Trustees shall be
representatives of Participants. Consideration shall be given to geographic and population
distribution when Trustees are appointed.
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(f) Individuals interested in serving on the Board of Trustees must submit a
completed application in a form approved by the Trustees not less than ninety (90) days before the
annual meeting.
Section 3 - Officers of the Association
(a) Chairman and Vice Chairman. The Trustees shall elect a Chairman and Vice
Chairman of the Association at its first meeting, each to hold office for a one-year term and until a
successor is elected. Thereafter at the annual meeting of each succeeding calendar year, the Trustees
shall elect or re-elect the Chairman and Vice Chairman for the ensuing year. In the event the
Chairman or Vice Chairman so elected ceases to be a member of the Board of Trustees, the resulting
vacancy in the office of Chairman or Vice Chairman shall be filled at the next regular or special
meeting of the Trustees held after such vacancy occurs. In the absence or inability of the Chairman
to act, the Vice Chairman shall act as Chairman. The Chairman, or in his or her absence, the Vice
Chairman, shall preside at and conduct all meetings of the Trustees and shall be a member and the
Chairman of the Executive Committee.
(b) Administrator. The Administrator shall have the general administrative
responsibility for the activities of the Joint Insurance Arrangement and shall retain all necessary
employees thereof. The Administrator need not be a member of the Board of Trustees.
(c) Treasurer. The Treasurer shall be appointed by the Trustees and shall be a
person other than the Administrator and shall not be a member of the Board of Trustees. The duties
of the Treasurer are set forth in the Cooperative Participation Agreement.
(d) SecreIM. The Secretary of the Board of Trustees shall be appointed by the
Trustees and shall be a person other than the Chairman or Vice Chairman, and need not be a member
of the Board of Trustees. The Secretary shall be responsible for keeping and maintaining minutes
of the meetings of the Participants and Trustees of the Association, and other records, contracts, and
documents pertaining to the Association.
Section 4 - Quorum
At all meetings of the Trustees, the presence of a simple majority of the membership
of the Board of Trustees (i.e., five Trustees for the interim Board and four Trustees thereafter) shall
constitute a quorum. An affirmative vote of a simple majority of the membership of the Board of
Trustees (i.e., five votes of the interim Board and four votes thereafter) shall be required to pass any
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motion, except as to those matters for which a greater majority is specified in these bylaws or by
contract.
Section 5 - Meetings
The Trustees shall meet at least once per calendar quarter and at such other times as
determined by the Trustees. Special meetings shall be held whenever called by the Chairman or at
the request of three Trustees.
(a) Minutes. The Trustees of the Association shall cause minutes of regular,
adjourned regular and special meetings to be kept and shall, as soon as possible after each meeting,
cause a copy of the minutes to be forwarded to each member of the Board of Trustees. Copies of the
minutes shall be made available to each participant upon request.
Section 6 - Notice
Written or telephonic notice of at least five working days shall be sent to each Trustee
prior to any meeting, unless waived. Notice shall be deemed given on the day notice is sent.
Telephonic notice shall be confirmed by letter, telegram or other comparable electronic or written
communication. Any Trustee may waive notice in writing either before or after the date of the
meeting, and if such waivers are received from all Trustees not present, any action taken at the
meeting shall be valid as though due notice had been given.
Section 7 - Open Meetings
Meetings of the Trustees shall be open to all participating members except the
Trustees may hold closed, executive sessions for claims, personnel, litigation or any matter the
immediate knowledge of which would adversely affect the finances of the JIA or any of its
Participants, or subjects that tend to prejudice the reputation and character of any person, or matters
which are required to be confidential pursuant to law.
Section 8 - Telephonic Meetings
Any meeting which has been duly noticed and which could properly be held by
Trustees attending in person, may, at the discretion of the Chairman, or at the request of at least three
Trustees, be conducted via conference telephone or similar means of simultaneous electronic
communication.
Section 9 - Vacancy
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Any vacancy on the Board of Trustees occurring by reason of an increase in the
number of Trustees or the death, resignation, disqualification, removal, the inability to act of any
Trustee or otherwise, shall be filled for the unexpired portion of the term by a majority vote of the
AML Board of Directors, at any regular or special meeting of the AML Board of Directors.
Section 10 - Resignation
Any Trustee may resign at any time by giving written notice to the Board of Trustees,
to the chairman or secretary of the Association, and to the Executive Director of the AML. Unless
otherwise specified in such written notice, such resignation shall take effect upon receipt thereof by
the Trustees or such officer, and the acceptance of such resignation shall not be necessary to make
it effective.
Section 11 - Removal
Any Trustee may be removed with or without cause at any time by an affirmative vote
of three-quarters (3/4) of the AML Board of Directors at a regular or special meeting called for that
purpose. Any Trustee subject to such removal shall be given not less than 10 days written notice of
the fact that the issue of his or her removal shall be decided, and of the date, time and place of such
meeting, and shall be afforded an opportunity to present written or verbal comment upon the
proposed action prior to any decision thereon.
Section 12 - Compensation
The Trustees shall serve without compensation, but shall be entitled to reimbursement
of actual and reasonable expenses incurred in the performance of their official duties upon approval
of the Trustees. The Association reserves the right to make reservations or prior arrangements for
such expense items as airlines and hotels, and to establish a per diem rate or allowance to cover other
incidental expenses.
Section 13 - Bonding
The Trustees may obtain, and expend Association funds to maintain such fidelity
bonding or employee or directors' errors and omissions, malfeasance or misfeasance insurance
coverage as is deemed appropriate.
ARTICLE 7 - POWERS AND DUTIES OF THE BOARD OF TRUSTEES
The Trustees may establish and manage any joint insurance funds, pools, policies and
other services contemplated in these bylaws, and may:
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(a) Prepare specifications, request bids, and enter into any contract for the purpose
of underwriting, administering or providing any services to the joint insurance funds or their
Participants, policies or services contemplated in these bylaws.
(b) Determine the rates, risks, benefits and terms of participation in the joint
insurance funds, policies or services contemplated in these bylaws; adjust the rates and benefits
based on claim experience and file such rates and terms as required by law.
(c) Provide for individual or collective underwriting or other agreements for
Participants in any joint insurance fund, policy or service contemplated by these bylaws; serve as
the policyholder of any group policies; determine the methods of claims administration and payment,
consistent with law; determine extent of loss prevention required; provide claims experience reports
for Participants collectively or separately; pool or purchase excess insurance and reinsurance.
(d) Determine the amount of contributions or appropriations required from
Participants for the purpose of participating in any part or all of the joint insurance funds, policies
or services established pursuant to these bylaws.
(e) Establish standards for eligibility of Participants in any joint insurance fund,
policy or service, and procedures for enrollment and withdrawal in any joint insurance fund, policy
or service; and establish effective dates of coverage.
(f) In accordance with a Cooperative Participation Agreement filed with the
Director of Insurance, provide for the administration of any joint insurance fund established
hereunder, for the manner of payments to such joint insurance fund or funds, policies or services
which may be established, and establish procedures for safekeeping, handling and investing such
joint insurance fund or funds and any monies received or paid. With respect to each fund, claim
reserves are to be accounted for by policy year for incurred but not yet paid, as well as incurred but
not reported, losses.
(g) Define the duties of the employees of the Association, particularly an
Administrator or Insurance Manager and establish record requirements for the Association to enable
the correct billing of contributions and fees, enrollment of Participants and their employees, and
payment of claims.
(h) Serve as or appoint an appeals body for complaints of Participants and their
employees regarding allowance and payment of claims, eligibility and other matters (subject to the
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jurisdiction of the workers' compensation commission and other governmental agencies having
jurisdiction), and establish procedures for grievances of Participants and their employees.
(i) Study the operation of joint insurance funds, policies or services, gross and
net costs, administrative costs, benefits, utilization of benefits and claims administration.
0) Incur expenses, acquire and hold property, and enter into agreements
necessary to accomplish the purposes of these bylaws; exercise the full power and authority of any
Participant of the Association with respect to risk management matters when required to do so by
contract with the Participant; or otherwise provide for necessary activities to accomplish the
purposes of these bylaws.
(k) Contract for such professional services as it may deem necessary and fix the
time, manner, and payment therefor.
(1) Contract with any qualified organization to perform any of the functions
necessary for the carrying out of a joint insurance arrangement, including excess loss insurance or
reinsurance, handling of claims, loss prevention and control services, administrative services and any
and all other services that the Trustees shall deem expedient for the proper servicing of those
Participants who use the services of the Association.
(m) Provide for proper accounting and reporting procedures for each of the
Participants so that it shall be apprised at all times of the nature of the claims arising within its
jurisdiction, the manner in which these claims are being handled, and the impact of the same upon
the joint insurance.
(n) Provide for annual audit of the books of the Association by certified public
accountants and provide a copy of such audit to each Participant and to the Legislative Budget and
Audit Committee pursuant to statute.
(o) Annually provide for a review of its operations and general condition by a
recognized, independent, actuary who is a member in good standing of the American Academy of
Actuaries, including a determination that the actuarial assumptions used for establishing reserves in
any joint insurance fund are sound, and provide a copy of such review to the Legislative Budget and
Audit Committee.
(p) Provide for a detailed report of the operation and condition of each joint
insurance fund or funds, within sixty (60) days of the end of the fiscal year, to be filed with the
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Director of Insurance. in accordance with accounting principles established by AS 21.76. and be
available for public inspection, pursuant to AS 21.76.080.
(q) Terminate membership of any Participant which fails to abide by the
requirements of the Board concerning: payment of the annual deposit contribution and any other
contributions, installation of safety requirements, accounting and reporting, claims administration,
compliance with other risk management standards, cooperation with the claims agents or attorneys
representing the Association or any of the Participants; or terminate membership of any Participant
which, in the judgment of the Trustees, acts in a manner detrimental to the fiscal soundness or
effectiveness of the Association.
(r) Develop and prepare Cooperative Participation Agreements to be signed by
each Participant as it joins the Association and thereafter.
(s) Determine the amount of insurance, if any, that shall be purchased by the
Association insofar as catastrophic coverage, excess loss coverage, stop loss or other types of
coverage.
(t) Require the securing of a fidelity bond or similar insurance coverage upon
each and all of the employees of the Association and upon other persons charged with the duty of
handling any of the monies or investments of the Association.
(u) Pay claims by, to, or on the behalf of Participants, including claims made
against Participants.
(v) Borrow money to carry out purposes of these bylaws and of the Association.
(w) Lend money from one joint insurance fund it administers to another it
administers on such terms and conditions as it may determine.
Association.
(x) Review, modify, if necessary, and approve the annual operating budget of the
(y) Invest money held by a joint insurance fund as reserves and money not needed
for daily operations.
(z) Exercise all of the powers necessary or desirable to carry out the purposes of
the Association or the specific powers enumerated in this article. All material contracts, leases and
agreements or other legal documents shall be approved by resolution of the Trustees (including
omnibus resolution for routine matters) and shall be executed by the chief administrator, chairman
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or other authorized agent and may be attested by the secretary or assistant secretary if required by
such resolution.
ARTICLE 8 - CONTRIBUTION OF MEMBERS.
COVERAGE LIMITS. RETENTIONS AND EXCESS INSURANCE
The Trustees shall establish a method for determining contributions to joint insurance
funds using the following guidelines:
(a) Any Workers' compensation joint insurance fund shall be separate from any
other joint insurance fund.
(b) Each joint insurance fund shall maintain a reserve for contingencies. The
reserve for contingencies may be advanced to the fund and placed at risk by the Participants
contributing to the fund. The Trustees shall determine the exact amount of the reserve, subject to
any statutory or regulatory minimum. Advances to the reserve for contingencies shall be evidenced
by certificates, which shall bear interest at the rate to be determined by the Trustees from time to
time. The Association may pay interest to Participants on their respective reserve for contingency
certificates, at such times and in such amounts as the Trustees may determine.
(c) No joint insurance fund shall commence sharing of risks until the Association
shall have received contributions from Participants in the amount required by the Board of Directors.
(d) The Trustees may establish a retention for each Participant.
(e) The Trustees shall establish the amount of h-Dility with respect to claims
against its Participants which each fund shall assume.
(f) Each joint insurance fund may obtain excess insurance or reinsurance with
respect to claims against its Participants which each joint insurance fund shall assume.
(g) Each joint insurance fund may obtain excess insurance against aggregate fund
liability for all claims as determined by the Trustees.
(h) Each Participant or former Participant of a joint insurance fund shall be
responsible as determined by the Board of Trustees for additional contributions to the fund in the
event as to any coverage year, losses (including incurred but unreported or unpaid losses) and
expenses exceed the annual deposit contribution and income earned on such contributions. A former
Participant shall be responsible, under this section, for its proportionate share of additional contribu-
tions only for losses and expenses attributable to the time period of its participation in the program.
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Participants taking part only in a group purchase program. however, shall not be responsible for
additional contributions due to a deficit in the risk -sharing program. Such additional contributions
shall be determined by the Trustees based upon each Participant's proportionate annual deposit
contribution in comparison to the aggregate annual deposit contributions of all Participants - for
those Participants taking part in a program whereby risks from loss are shared on a group basis. For
Participants taking part only in a group purchase program, such additional contributions, if any, may
be based on their proportionate annual deposit contribution or other factors. The Trustees shall
establish the amount of additional contributions which may be required from any Participant. With
respect to the liability, automobile, and property fund, the amount shall not exceed a specified
percentage of the Participant's contribution for the coverage year for which the additional annual
deposit contribution is required.
(i) Annual deposit contributions of Participants shall be determined by the
Trustees on the basis of each joint insurance fund's insurance provided, reserve for contingencies,
reserve for losses, cost of excess insurance, cost of conventional insurance for each Participant,
claims experience, administrative costs, and other pertinent factors.
ARTICLE 9 -ADMINISTRATION
Section 1 - Administrator
The Trustees shall appoint an Administrator to serve as chief executive officer of the
Association. The Administrator shall have the general supervisory control over the day-to-day
decisions and administrative activities of the Association.
Section 2 - Employees/Contracts for Services
The Trustees may appoint such other officers or employees and employ or contract
with the AML or other persons or entities for such administrative, planning, research or other
services upon such terms as may be necessary or in the Trustees' judgment desirable to carry out the
purposes of these bylaws and of the cooperative participation agreements.
Section 3 - Hiring/"Borrowing" of Employ
The Administrator shall have the power to hire such persons as the Trustees authorize
for the administration of the Association, including the "borrowing" of management -level or clerical
employees from the AML and/or one or more of the Participants to assist in the development phase
or subsequent administration of the Joint Insurance Arrangement of the Association, subject to the
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approval of the Participant. Any Participant whose employee is so "borrowed" according to this
provision shall be reimbursed by the Association for that employee's time spent or services rendered
on behalf of the Association.
ARTICLE 10 - COMMITTEES
Section 1 - Executive Committee
The Board of Trustees may appoint an Executive Committee of the Board of Trustees
which shall consist of an odd number of not less than three nor more than five Trustees, as
determined by the Board of Trustees. Two of the members of the Executive Committee, if
established, shall be the Chairman of the Board of Trustees, and the nonvoting, ex-officio member
from the AML; the remainder of the members, after their original election, shall be elected by the
Trustees at the same time the officers of the Board of Trustees are elected at the annual Association
meeting each calendar year. The Chairman of the Association shall serve as the Chairman of the
Executive Committee. The Board of Trustees may delegate certain powers of the Trustees as
outlined in Article 7 to the Executive Committee, as it deems appropriate.
The Executive Committee may not take any action contrary to previous action of the
full Board of Trustees nor make any decisions that would require an amendment of, or be
inconsistent with, the Bylaws or Cooperative Participation Agreement. The Trustees may review
all acts of the Executive Committee, and shall have the power to modify and/or override any decision
or action of the Executive Committee upon a majority vote of the Board of Trustees.
ARTICLE 1 I - INDEMNIFICATION OF
TRUSTEES OFFICERS EMPLOYEES AND AML
The members of the Board of Trustees and officers and employees of the Association
shall use ordinary care and reasonable diligence in the exercise of their powers and in the
performance of their duties for the Association and shall not be liable for any mistakes of judgment
or other action, taken or omitted by them in good faith; nor for any action taken or omitted by an
agent, employee or independent contractor selected in good faith by them or any of them; nor for loss
incurred through investment of Association funds or failure to invest. No trustee, officer or
employee shall be liable for any action taken or omitted by any other officer, Trustee, or employee.
The Association shall defend, indemnify and hold harmless each Trustee, officer, and employee for
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expenses, including attorney's fees, and the amount of any judgment, money decree, fine, penalty
or settlement for which he may become liable by reason of his being, or having been, a Trustee,
officer or employee of the Association who exercises powers or performs duties for the Association,
except in relation to matters as to which said Trustee, officer of employee is finally adjudged in any
action, suit or proceeding to be liable for failure to act in good faith in the performance of his or her
duties as such Trustee, officer, or employee.
ARTICLE 12 - FISCAL YEAR
The fiscal year of the Association shall commence July 1 of each year and end June
30 of the succeeding year, or as determined by the Board.
ARTICLE 13 - ENROLLMENT
Any local public agency which is a member in good standing of the AML and is
otherwise qualified to participate in the Cooperative Participation Agreement may enroll as a Charter
Participant of the AML Joint Insurance Association. A Charter Participant shall be a Participant who
enters into the Cooperative Participation Agreement prior to its initial effective date. The Trustees
may provide such incentives to encourage charter participation as it deems appropriate, including
without limitation, the levying of additional administrative expenses and cost sharing adjustments
against Participants which elect to join at a later date.
ARTICLE 14 - WITHDRAWAL FROM PARTICIPATION
A Participant may withdraw from the Association, subject to the provisions of these
bylaws and of the Cooperative Participation Agreement. A Participant may not withdraw from
participation until after a three-year period, except that Participants enrolled only in a group purchase
program may withdraw in accordance with the applicable insurance policy and Cooperative
Participation Agreement. The required three-year period commences on July 1, 1988 for Participants
executing the Agreement prior to that date and on July 1 of the calendar year in which coverage
commences for Participants executing the Agreement on or after July 1, 1988, except that
Participants taking part only in a group purchase program may begin their participation when
coverage commences under the applicable insurance policy. Any withdrawal by a Participant shall
be effective only at the end of the fiscal year, and only after giving the Association not less than six
(6) months written notice of intent to withdraw. The first opportunity to provide such notice of
intent to withdraw shall be not less than six (6) months prior to the expiration of the initial three-year
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period. These limitations on the time and notice required for withdrawal shall not apply to
Participants taking part only in a group purchase program. Those Participants may withdraw
according to the applicable Cooperative Participation Agreement and insurance policy. Such
withdrawal shall not exonerate a withdrawing Participant from liability incurred during the term of
its participation, or pursuant to the Cooperative Participation Agreement.
ARTICLE 15 - DISSOLUTION
In the event of a dissolution of the Association, but only after the payment, or
provision for, all debts, claims and liabilities, any remaining assets shall be paid over to those local
public agencies who have been Participants at some time during the three-year period preceding the
dissolution date established by the Board, in proportion to their respective contributions to the
Association during the three-year period immediately preceding the dissolution date established by
the Board and as provided in the Cooperative Participation Agreement. Participants who have taken
part only in a group purchase program shall not share in the distribution of assets upon dissolution.
Section 1 - Interim Amendment Procedure (until May 1. 1988).
Until May 1, 1988, the interim Board of Trustees may amend the bylaws by motion
approved by two-thirds of the membership of the interim Board of Trustees; i.e., by six votes. Any
such amendment will become effective only after presentation to the Participants, provided that a
majority of the Participants do not submit their written disapproval within the time prescribed by this
section.
Upon the approval of the interim Board of Trustees, the amendment shall be sent by
certified mail, return receipt requested, to all Participants. Said amendment shall become effective
at the time specified in the amendment, unless the JIA receives the written disapproval of a majority
of the Participants within fifteen (15) days after the Participants' receipt of said amendment. In no
case, however, shall any amendment become effective until the time for receipt by the RA of such
written disapproval has expired.
IT4R
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After May 1, 1988, Amendments to the bylaws may be proposed by the Board of
Trustees, (in accordance with subparagraph (i), below), or by any designated JIA representative. (in
accordance with subparagraph (ii), below), for approval by the Participants as described in paragraph
(b), below.
(i) Presentation by the Board of Trustees. Upon motion duly passed by
the Board of Trustees. an amendment to the bylaws shall be submitted to the Participants in
accordance with paragraph (b), below.
(ii) Presentation by any Designated JIA Representative. Any proposed
amendment prepared by any designated JIA representative shall be presented to the Board
of Trustees not less than one hundred twenty (120) days before the annual or special meeting
at which the amendment will be presented, to allow the Board time to investigate the
amendment, determine its feasibility, prepare written statements concerning the pros and
cons of the amendment, and make its recommendation. Such information shall be mailed to
the Participants for their review not less than thirty (30) days before the annual or special
meeting. If the Trustees determine that the amendment is unacceptable in form as presented,
they may send the amendment back to the Participant who prepared it, with suggested
changes, and the Participant may revise the amendment and return it to the Board for further
consideration.
(b) Presentation to Participants.
(i) Amendment Presented by JIA Representative or by the Board of
Trustees. If an amendment is initially proposed by a designated JIA representative and is
deemed acceptable in form by the Trustees, or is initially proposed by the Board of Trustees,
a ballot will be prepared, and the Trustees will present any such amendment to the
Participants at the annual meeting or a special meeting, along with the written statements and
ballot. The designated local public agency representatives will take the proposals back to
their local public agency, to determine if they wish to accept the amendment, and the local
public agency will formally pass a resolution to accept or reject, and return it to the Trustees
as its official vote.
(ii) Amendment if Form Unacceptable to Trustees. Any Participant will
have the right to bring an amendment before the Participants at the annual meeting or a
AMLJIA Bvlaws Page 18
10129190
special meeting. even if the Trustees do not judge the amendment to be in acceptable firm.
if such Participant presents a petition approved by resolution of •0 percent of the current
Participants.
(c) Amendment Procedure. Am- amendment to the bylaws proposed under this
section must be approved by not less than two-thirds of the Participants. Such amendments shall
take effect at the time set out as the effective date in the amendment. or, if no such effective date is
provided, at the beginning of the following fiscal year. No amendment shall affect existing contract
rights, unless such rights are modified by mutual consent.
ARTICLE 17 - OFFICE
The principal office of the Association shall be in such location as the Trustees shall
decide within the State of Alaska. The Association may also maintain offices at such other places
within Alaska as the Trustees may from time to time determine.
ARTICLE 18 - OFFICIAL SEAL
The Trustees of the Association may adopt an official seal in such form as they may
determine, which seal may be affixed to official documents of the Association.
The undersigned certifies the foregoing bylaws have been adopted as the amended
bylaws of the Association.
DATED this 3rd day of 1V 0 v car+ A r r , 1990.
CHAIRMA
ATTEST: VVV V{
Secret
AMIJ.IIA BvIaws
I012Y/YO
MEMORANDUM
To: The Honorable Mayor John Williams & Kenai City Council
From: Last Frontier Insurance and Walters & Olson, Inc.
Date: June 1, 1994
Re: FY95 Insurance Quotes; City Administration's Recommendation to Adopt the
AML/JIA Three Year Insurance Proposal Including Passing the Required
Resolution for the AML/JIA Pool
BID PROCESS
Bid process is "flawed". Local Agencies were invited to bid only those lines of coverage
which they are currently writing i.e. Last Frontier Insurance: General Liability, Automobile,
Police & Public Officials Liability, Ambulance, Physician Sponsors. Walters & Olson, Inc.:
Workers' Compensation, Mobile Equipment and Airport Liability. Why were we not
allowed to bid all lines as was the AM JIA? Agencies were not told this was a three year
bid - premiums may have been lower had insurance companies known this. Is it the
City's practice to grant bid preference to Anchorage contractors?
PREMIUM COMPARISON
In evaluating the premiums quoted one would assume that the quotation for AML JIA
would include any possible assessment to the premium quoted. Excluding the Airport the
JIA premium is $277,403 plus a possible assessment of 10% for a total of $305,143.
The premiums for the two local Agencies less the Airport total $297,651 with no
assessments. In addition the City would owe Industrial Indemnity something in excess
of $8,000 for Workers' Compensation credits for the past two years. If the lowest figures
are to be used then the Workers' Compensation retro minimum premium of $95,539 vs
guaranteed cost of $125,889 should have been compared for an additional savings of
$30,350.
Memorandum
Thomas J. Manninen
May 19, 1994
Page Two
Next Year's Ouotes
Traditional AML
Insurance JIA
General Liability, Auto, Police;
occur. form; $4,000,000/occur.
& aggreg.; $25,000 ded.;
Mt. Airy $ 123,000 -
General Liability, Auto, Police,
Public Officials; occur. form;
____--; $3,225,000/occur., no aggreg;
$25,000 ded. - $ 112,910
Property; scheduled values;
$50,000 deductible;
AK National (Trad.) 23,600 22,028
Public Officials; claims made
form; $4,000,000/claim & aggreg.;
$5,000 ded.; Mt. Airy (Trad.) 15,000 Included
in G/L
Workers Comp.; statutory; $500,000
Employer's Liab. ($1,000,000 in
JIA);
Industrial Indemnity (Trad.) 125,889 142,465
Mobile Equipment; schedules values;
$25,000 deductible; Phoenix
Assur. (Trad.) 7,275 Incl. in -
Prop.
Airport; occur. form; $50,000,000
C.S.L. products; $25,000,000
C.S.L./occur. & aggreg. personal
injury; deductibles; $1,000/
occur., $5,000/property damage;
National Union Fire (either
program) 35,000 35,000
Ambulance; mid -year renewal, Jan.,
1994 quote; $500,000/occur.,
$1,000,000 aggreg.; $250
ded.; Northland (Trad.) 2,374 Incl. in
G/L
Memorandum
Thomas J. Manninen
May 19, 1994
Page Three
Physician Sponsors Medical
Malpractice $ 513
TOTALS $332,651
Less Airport Q5,000}
$297,651
ADDITIONAL CALCULATIONS
Incl in G/L
$312,403
Q5,000)
$277,403
Possible Assessment 0 27.740
$297,651 $305,143
Return to Industrial Indemnity 0 8.156
TOTAL _ $297,651 $313,299
Subtract for Ind. Indem.
Workers' Comp Retro Min. 30.350 0
GRAND TOTAL QUOTE MINIMUMS
LESS AIRPORT $267,301 $313,299
FINANCIAL STABILITY
The City of Kenai's memorandum states under its "Financial Capability" paragraph that
it is uncomfortable with Mt Airy Insurance. Mt Airy is an A-VIII company admitted in the
State of Alaska with $974,000,000 in assets and an $185,000,000 surplus. How can the
City be "uncomfortable" with a company that large and be "without reservations" with a
company that is not admitted, non -rated, and reinsured with a B+ + company from
London. See figures below and Best's ratings of companies which are attached.
MT AIRY
SURPLUS
$185,890,000
ASSETS
$974,180,000
BESTS RATING
A-VIII
LOCAL BROKER
JIA
SURPLUS
$2,000,000
ASSETS
BESTS RATING
NONE
SPHERE DRAKE
RPLUS
$73,425,000
ASSETS
$439,624,000
BESTS RATING
B+ +VIII
The combined local brokers have 32 families which vote, pay taxes, build houses, send
their children to school, buy cars, buy food and clothes, and support this community in
many other ways. We support little league, the Chamber of Commerce, the Boys and
Girls Club, school functions, and many other uncountable charities. Can the City of Kenai
ask its residents to "Buy Local" and support their community when they don't practice it
themselves?
In conclusion we have had very limited time to prepare a rebuttal to the proposed
Resolution No. 94-33, On May 31, we each received a brief memo dated May 27 (copy
attached). We were given no information on the proposal etc.
1/ I.i/
eorge . Walters
Walters & Olson, Inc.
Steve Gr or
Last Frontier Insurance Cache
RATING LEVELS AND CATEGORIES
Level Category Level Category
Level Category
A ++ , A + ....... Superior B, B .............. Good D .... Below Min. Standards
A, A . .......... Excellent C ++ , C + ........... Fair E .. Under State Supervision
B ++ , B + ..... Very Good C, C . .......... Marginal F ........... In Liquidation
RATING MODIFIERS
g - Group Rating r - Reinsured Rating x - Revised Rating
p - Pooled Rating q - Qualified Rating u - Under Review
RATING "NOT ASSIGNED" CATEGORIES
NA-1 Special Data Filing NA-6 Reinsured by Unrated Reinsurer
NA-2 Less than Minimum Size NA-8 Incomplete Financial Information
NA-3 Insufficient Operating Experience NA-9 Company Request
NA-4 Rating Procedure Inapplicable NA-11 Rating Suspended
NA-5 Significant Change
FINANCIAL PERFORMANCE INDEX (FPI)
The Financial Performance Index (FPI) is assigned
to companies with Rating "Not Assigned" Categories
of NA-2 and NA-3. The FPI measures the financial
strength of small or new companies and is based on
the following numerical scale.
FPI Description
8 & 9
Strong
6 & 7
Above Average
4 & 5
Average
2 & 3
Below Average
1
Not Assigned
FINANCIAL SIZE CATEGORIES
(In $000 of Reported Policyholders' Surplus Plus Conditional Reserve Funds)
Class I
Up to
1,000
Class IX
250,000 to
500,000
Class II
1,000 to
2,000
Class X
500,000 to
750,000
Class III
2,000 to
5,000
Class XI
750,000 to
1,000,000
Class IV
5,000 to
10,000
Class XII
1,000,000 to
1,250,000
Class V
10,000 to
25,000
Class XIII
1,250,000 to
1,500,000
Class VI
25,000 to
50,000
Class XIV
1,500,000 to
2,000,000
Class VII
50,000 to
100,000
Class XV
2,000,000 or
more
Class VIII
100,000 to
250,000
For the latest Best's Ratings call BestLine 900-555-BEST
Company Name
Rating
Balance Sheet
------
Oper
Profrtabi617 Tests
Leverage
Lie
(Group Affiliation)
Principal Officer
F
Cash
' over -
Mailing Address
Mod. P
&
Comb.
all
Began Bus.:Structure.Mkting.
Bests
ilia I
Short-
Stocks
Total
Loss
Policy
Direct
Net
Pm -Tax
Ratio
POI
Chg.
Chg.
NPW
Li -
Specialty
Rating
Term
and
Admitted
Re-
holders.Premiums
Premiums
Operating
Loss
Exp.
Atter
to
in
in
to
quid -
Effective
Phone #
&
Data
Invest
Bonds
Assets
serves
Surplus
Written
Written
Income
Ratio
Ratio
Div.
NPE
PHS
NPW
PHS
ity
FSC
Date
Year
M
(96)
($COO)
N
($000)
($000)
($000)
($000)
M
M
(96)
(9l)
(9e)
(96)
M
M
AMB # NAIC *
MOTORISTS MUTUAL INS CO
A
5
12191
2.5
823
515.729
61.1
158.197
270,555
274,831
1&270
72.7
30.4
103.2
6.7
17.8
4.8
1.7
149.E
(Motorists Mutual • Amer Hardware Grp)
A
$
6192
0.1
84.1
$26,352
63.2
167,429
133,830
135,254
14.053
706
29.7
100.4
LOA
5.9
-3.1.
1.6
1521
Robert E. H. Rabold, President
A
s
9192
0.3
85.2
538,849
63.9
171,152
198,827
201,734
16,759
72.1
30.7
103.0
8.3
&2
4.0
1.6
151.5
all East Broad Street
Columbus. OH 43215.3861
A
p
12192
1.7
840
547.227
64.2
186,368
259.432
264.519
27.857
69.7
31A
101.4
10.3
17.8
-3.8
1,
155.5
1928 : Mutual : Agency
A
p
6/93
0.2
83.2
601.503
59.8
183.049
126.330
167.732
-9,027
77.9
32.5
111.2
.6.4
-1.8
24.0
1.5
146.2
Commercial Lines, Personal Lines
A
9/93
1.2
81.6
582,683
63.7
187,318
189.925
234.808
4747
78.5
32.3
111.5
-4.1
0.5
16.4
1.6
149.8
614-225.8211
p
Vill
12/13/93
AMB *00652 NAIC #14621
MOTORS INSURANCE CORP (NY)
A+
g
12/91
0.9
$6.0
3,265263
51.9
901,620
170.454
1272.658
224.587
87.2
14.1
101.3
202
30.7
36.1
1.4
1392
(Motors Insurance Group)
A+
g
6/92
0.3
892
3278.066
50.9
891,664
95.026
505.050
98,274
80.1
19.8
999
19.1
-1.1
3.0
1.4
138.6
Joseph J. Pero, President
A+
g
9192
1.3
87.9
3,349,768
50.5
933.151
139.741
760.073
121,319
81.3
19.5
100.9
16.0
3.5
-24.6
1.1
139.7
3044 West Grand Boulevard -Annex 301
Detroit, MI 48202
A+
g
IZ/92
1.5
86.9
3235.637
51.1
854,720
194.367
1,076.850
172,489
827
17.6
1003
16.2
-52
-15.4
1.3
136
1939 : Stock : Direct
A+
g
6/93
0.9
88.2
1419.873
492
798.233
77.391
%6.684
24.563
9&7
L3.5
112.2
5.0
4.6
03
1.4
13L.
Auto Phys Damage, Auto Warranty
A+
9/93
0.6
89.5
3,429,424
$0.6
817,598
LO$264
770.164
11,125
9&0
15.6
L13.6
2.6
-4.3
1.3
1.3
131.
313.556.5000
6
XI
12/13/93
AMB #00654 NAIC #22012
MT- AIRY INSURANCE COMPANY (IN)
A-
It
12/91
23.3
73.4
14,617
63.2
10625
18.283
1,770
983
70.5
170
97.6
524
.41
-9.4
0.2
3742
(Talegen Holdings, Inc.)
A-
a
6/92
26.4
71.9
14,907
60.3
10,543
9.130
888
329
80.1
21.0
101.0
39.5
-0.3
42
0.2
349.1
Courtney C. Smith, Chairman & Pres.
A-
e a
9/92
32.4
540
15,871
51.7
10,720
13,129
1.273
-52
73.8
18.6
92.5
-4.3
0.9
-12.8
0.1
3178
PO. Box 1953
Mornstown, NJ 07962-1953
A-
1
12/92
25,6
72.6
15,613
63.8
11,376
16.148
1.563
658
B3,1
18.7
101.8
40.8
7A
-11.7
0.1
370.3
1939 : Stock : Agency
A-
6/93
28.1
69.9
16.110
59.2
11.932
9.362
900
494
42 5
17.9
60.4
607
49
1.3
0.1
387.5
Commercial Lines
A-
9193
25.9
58.9
974,30
68.6
185.890
17,701
3I9.064
24,605
723
16.3
883
13.3
999.9
999.9
1.7
125.2
201.490-6000
V81
12/13/93
AMB *0I890 NAIC =21318
MOUNT CARROLL MUTUAL FIRE INS
NA-2
6
12/91
20.3
64.4
2,351
18.5
1210
2.364
1.909
161
64.6
36.6
101.2
8.2
15.5
-&S
1.6
206.
(No Group Affiliation)
NA-2
6
6192
212
65.0
2.491
17.0
1,355
1.204
970
166
50.0
476
92.6
17.5
11.9
3.6
1.4
219.2
Lyle S. 'mow, President
NA-2
6
9192
14.9
69.8
2,457
192
1270
1.770
1.376
70
62.8
43.7
106.4
5.1
4.9
-0.1
1.5
206.9
P.O. Box 31
Mount Carroll. IL 61053
NA-2
6
12/92
18.4
69.3
2.569
17.6
1.363
2.356
1,929
232
600
35.4
96.4
12.0
12.6
1.0
14
213.0
1888 : Mutual Agency
NA-2
6
6/93
11.5
68.8
2.618
25.9
1,415
LIST
882
64
58.3
47.2
105.5
7.1
3.8
-4.0
1.3
217.5
Fire, Allied Limes
bUr2
6
9/93
18.5
64.7
2,564
25.T
1.372
1,725
r I,310
16
64.9
/6.5
I11.4
1.2
0.6
4.8
1.4
215.1
815.244.2485
1
12/13/93
AMB #03823 NAIC *26735
MT. HAWLEY INSURANCE CO (OE)
A
12!91
10.2
81.7
98.934
66.2
35.560
52: 5
33.299
59 3
32.4
9', 6
247
13 3
363
] 3
15i 2
(RU Group)
4.
6192
IL9
77.8
109.532
63.1
38.515
28.560
20.557
4.:
46.3
38.5
34.8
241
33
300
53.5
Gerald D.Steohens.?res�ee^.t
9M
9,9
842
113.603
65.5
33.109
42A92
30.773
Si:'
51.8
38.3
40.1
207
1.00
278
10Ji56S
9025NcrhLmdbergh0-e
Peoria, !L 61615
A
12192
6A
95.9
118.121
68.0
42,235
55,792
39337
8`3
5i2
383
912
22.9
i33
198
0.9
158.2
1979 Stock Broker
A
6/93
9.1
85.3
137,675
66.8
56.370
28360
!9'22
5.55
544
36.1
905
269
33.5
-41
07
1721
Excess&Surpius
A
9,93
5.7
85.8
147.845
62.5
$1,868
55.449
33.393
-3.'
560
35A
91.6
239
3 S
10 1
11
',6? 9
309-692.1000
v0
12!13193
AMB =02591 NAIC 237974
MT, MORRIS MUTUAL INS CO
1,14-1
1
12191
66.8
30,9
2.459
23.7
1.255
1.820
1,691
493
412
35.4
76.5
30.5
33.1
32.0
l3
204 3
(No Group Affiliation)
NA-2
1
6192
Data Not Available
Howard H. Fenske, Secretary/Treasurer
NA•2
1
9/92
Data Not Avalable
Route 1, Box 108A
a9
Coloma, WI S4930
NA-2
6
12/92
38.8
33.6
7.148
15.8
1,115
2.070
1.331
-143
78.7
34A
113.0
-8.3
-Ll.l
8.9
L6
208.3
1875 : Mutual :Agency
NA-2
6
6/93
Data Not Available
Farmowners, Homeowners
KA4
6
9193
Data Not Available
715.228.5541
1 05/24/93
AMB #10723
"
MOUNT RUSHMORE INS CO (5o)
(Net Group Affiliation)
6/92
...
268
...
268
Patricia R. Johnson, CEO
9/92
2.4
66.5
902
...
901
...
2!
9999
7500 Flying Cloud Or, Ste. 900
Eden Prairie. MN 55344.3758
N4-4
12192
1.8
67.3
892
..
889
3l
_
9999
1973 : Stock : Agency
NA 44
6/93
4.2
65.7
914
...
910
...
22
...
...
2.3
9999
Inactive
612.944.3260
I k
9193
5.0
65.8
912
...
907
20
-
2.0
9999
1
12/13/93
AMB # 11304 NAIC -27049
MOUNT VERNON FIRE INS CO
A+
s
12191
Ll
%.4
274.642
71.1
124,632
32,997
26,123
20917
55.5
39.0
94.5
74.1
26.1
-16.8
02
1933
(U.S. Investment Group)
A+
s
6192
4.1
93.8
293.667
63.9
126,932
13.775
11236
11.531
S3.8
4L6
95.4
98.4
1.3
-2!.8
0.2
!34.9
Robert B. Berry, President
A+
t
9/92
6.8
90.9
287.019
68.8
130,116
20,149
16227
14.776
652
33.4
98.6
83.7
44
-21.3
0.2
1977
1030 Continental Drive
King of Prussia, PA 19406
A++
g
12192
1.1
96.8
265,174
872
141,944
26.111
20,669
20.675
63.1
315
95.6
89.5
13.9
-20.9
0.1
219.0
1958 Stock : Agency
A++
g
6193
5.5
92.7
271714
84.6
148.798
13.836
10,086
7.549
56.4
383
94.7
75.1
4.8
-102
01
222
Excess&Surrius
A+F
9/93
1.1
97.2
273,711
810
146,084
21.619
15,795
10,023
59.6
39.4
57.0
65.5
2.9
-2.7
0.1
21&1
215.688-2535
9
Yet
12/13/93
AMB #02540 NAIC #26522
MT WASHINGTON ASSURANCE CORP
.4w
1
12191
3.3
82.1
2,597
4.8
2.246
281
252
-L03
154.9
208.0
662.9
-99.9
O.i
140.4
(Plymouth Rock Companies Group)
NA-3
l
6/92
9.9
59.2
3,795
12.0
1.914
1.683
1.534
-517
110.1
42.4
152.5
-99.9
-148
999.9
0.9
201.7
Peter R, Jones, President
1IA11
1
9192
11.0
58.8
4.330
18.9
1.647
3.055
2.776
-922
101.1
41.4
142.4
-86-9
-26.7
999.9
1.7
1614
8NStr
Concord,rd, NH 03302 03
NA-3
1
12192
13.3
57.2
4.973
224
LA80
4.535
4.126
-!.174
892
41A
1307
-597
-341
9999
2.3
1424
1991 : Stock : Agency
W3
1
6193
342
63.9
5,490
37.1
1.714
3.387
1.553
-530
82.7
71.4
154.1
-22.4
15.8
1.3
2.4
145.4
Personal Lines
NA-3
1
9193
14.8
83.0
5,859
35.1
1.669
5.204
2.412
400
79.0
619
140.9
-19.2
12.6
-13.1
2.3
139.3
603-224.6288
0
12/13/93
AMB * I1143 NAIC -43982
- Call 900-555-BEST for the latest Best's Ratings - Rejer to inside back cover for explanation of items 163
?13-384-1501
WORT�.DSti ' D5
MA121` : ;ERAL INSURANCE COMPANY LIMITED- 01rittnued
Z 002
UPI.] %TTONS
y is an irluUrc company widcrwriting marine,
It4 t���cpo1� and non-n�:trine business. Towards the end of
trot
c.1panued 1'. s son -marine underwriting activities
npN• accepting business on an engineering account. The
are distributed thrul.igh brokers and indcpcadent agents
WU_ Irlaintaincd in the territories mentioned below.
1999' the company took over responsibility far the direc-
op;cejs liahility account previously underwritten by it
Wry. ay the run-off
of tous ondon market company
tan
arlttcn irY itsUntP Y
WC0111rtluted variedS atcs fellowsubsidiaries. arees The o
ous quota share treaties. In tine nett -marine
r l, the company has taken out a limited stop loss to cuvcr
wadctetiorations on the discontinued excess loss and casualty
Mil; whcre advices continue to be received in respect of envi•
Oral pollution and asbestos ciainis,
Kips 199% the company took over responsibility for the re•
in, business previously underwritten by a subsidiary which is
oncenlrating on healthcare insurance. Midway through the
the company ceased underwriting non -marine non-propor-
i treaties, and subsequent to the year end, has stopped writing
�perty business in the London market, The company's UK
MCial operation continues unchanged.
C;Ornpany maintains a trust fund of USD 2,500.000 at. Chcrni-
anit, New York as security for insurance business emanating
dW United States.
ildpq/Associations: The company is a member of the lsistitutc
pdpn Underwriters (ILU).
Mn" Belgium, Canada, Denmark, France, Germany, Greece,
aid, Hong Kong, Norway, the United Arab Emirates and the
d Kingdom.
• 1.
REINSURANCE
Tk company, reinsures and is in turn reinsured by Lloyd's
syudi-
"Ir under proportional and non -proportional treaty arrangements.
Aps
*Underwriting Experience
� M! Wig
Nil
No UASO 6 ('mollssion
Under
,ct
47 h mivau
Premiums
Premiums Lust Adj & Uii&w
•�ihug
lu c,ue
} wrinni
written
larned 1:" Ine'd Exp ini d
Incodk
A.1
,:,y111
16,803
1003 19,704 1.759
-4,660
•1.162
44,439
1062
1U62 16,231 5,313
-2,982
•345
. N 460
19,759
14,759 16,120 5.19Z
•1,153
202
tm }2,31:
29,045
29,041 25,092 6,041
•2.011
661
0 S7,372
15,17.1
25,17.1 21,491 7,103
•9,421
.3.444
1ti (trice
)�
11.1
11.1 •11.6 202.0
38.2
3.5
S.9
S.4 Q7 1.5
39.2
...
JW 13.1
47.0
47.0 55.7 12.0
•19.1
...
11111 9.9
-13.1
-0 3 9.6 17.6
"1
%marr. UP thouunda
ODMPARATIVE FINANCIAL AND OPERATING EXHIBIT
- FINANCIAL DATA .-.. .•
Net
Nct
Tuul
Policy-
Adj Policy.
Inveonw.nl
Upenting
Admitted
holders'
holdtn'
Income
Inc (BIT)
Assets
5uiplut
StnplmtI
2,629
.1,799
56119!
7,639
7.659
2,721
•501
n,749
11,424
21; 29
21504
463
6a,470
15,303
15.303
3,371
1,08S
73,257
15,752
15,M
3,6gA
.5,994
79,066
11,916
11,9%
3.5
.61
44.1
44.2
B.0
144
.13.9
33.4
14 7
71.1
2.9
'9
4.6
....
b.'1
•'13.a
21.4
gyp: GBP lholwnds, (1) Includes safety margin (e g. cyaalindon rescrvc)
PrnlilnWily'pasts
No 111yro
Nn
NUI
Return
Combined
Income to
(rusting
(I11T) In
un
Rslln
NIT
61(421
NPW
Adj PH5
127.7
15.6
112.1
IU.b
43.4
1I5S
14.6
100.9
•1.7
-4,5
tag 9
121
%.2
1.1
1.8
107.2
11.6
95.6
1.7
4.3
137.4
14.1
122,7
-23.8
lti.a
to
GPw
•i2.a
42.9
55.6
43.9
ilE4ptge (silo - cominis K m pl+jj 4r*rvmtinj! rxrimm 1 NPW (2) Nrl wtiviinl folio - tonbine4 ratio
� n Lwn: rih0,
Leverage Tests Liyn.dily 'YQi5 -
InvnlrA
N a"4'
(hinge
Tech Ro
Twh Rcg
Asuu
TO
Id
To
To
Curren(
Owill
Cast to
1'cv
ATj PHi
NPW
Adj PH$
GPW
Liquidity
Liquidity
TCih Rcs
1986
2,2
4.3
60.6
115.8
90.3
1997
1.6
III
2.7
0.7
67.5
1;77
89.8
1988
1.3
5.9
1.2
0.7
79.0
133.9
105.3
1149
1.8
47,0
2.8
0A
66.9
1214
$6.7
1' 9"
2.1
I1.3
1.4
0.8
45.8
117.7
$7.2
SPHERE DRAKE INSURANCE PUBLIC
LIMITED COMPANY
52-54 Leadenhall Street
London FC3A 2BJ, England
Tel: 44 71 480.7340 Telefax: 44 71 481.3829
Telex: 935015 SPHERE G AMIi: 85611
1993 BEST'S RATING
Aliou
aalaIICCS
tv Mxb
Based on our current opinion of the company's financial condition
and operating performance, it Is assigned a Best's Rating of B++
(Very Good), The company's Financial Size Category is Class VII).
Refer to the Preface for It complete explanation of Best's Rating
sysftm and procedure, hating Effective: October 18, 1993.
OPERATING ( ONIMENTS
Improved underwriting results and a capital contribution of GBP
14.0 million increased the company's net assets to GBP 75.4 million
from GBP 51.2 million in 1991. The improvement in underwriLing
results was recorded despite adverse loss reserve development of
approximately GBP 20,0 million. Management attributes that ad-
verse development to lang-tail casualty business writtcn in prior
years, additional dcvciopmcnt on certain catastrophic claims (prin-
cipally arising from hurricane Hugo in late 1989 and the European
storms of 1990) and experience on non -marine business which
worsened in the early 1990s. The increase in net assets in 1992 also
reflects net realized gains of GBP 4.$ million from investments and
GBP 4.4 million from foreign exchange movt;tnents. Operating
losses in the two years prior to 1992 reflect major catastrophe losses
and competitive pricing, particularly in the company's non -marine
lines of business. Management reports that losses ariziing from Hur-
ricane Andrew (August 1992), the largest insured catastrophe loss
in history, had very little negative effect on 1992 results.
One of the company's main business objectives has been to estab
lish and maintain a presence in certain specialty lines of business in
which the company believes that it can operate with a competitive
advantage and achieve relatively consistent profits. Over the last
three years, the company has significantly expanded its net writings
in the marine line with premiums nct of reinsurance increasing to
GBP 66.0 million in 1992 from GBP 26,6 in 1989, Two other high
growth areas for the company have been aviation and captive rein-
surance programs, the latter being written through Sphere Drake
Underwriting Management (Bermuda) Limited. Premiums net of
reinsurance for aviation increased to G111' 9.1 million from GBP
803,000 in 1989 and captive reinsurance program earned premium
volume totaled GBP 13.9 million in 1992 from an initial GBP 1.1
million in 1990. [underwriting profits were reported for all of the
above mentioned programs in 1992.
Although the company's remaining business scgmcrits, non•ma-
rinc and motor (sec Recent Development), have not demonstrated
the same growth, they still accounted for a major percentage of total
net premium incottic in 1997, 25.9' o and 17.7%, respectively. Man-
agement reports that it expects results for the non -marine business
to improve in 1993 due to recent hardening of rates, particularly for
property excess of loss coverage. I rl addition, siticc 1991 the compa-
ny has supplemented its reinsurancc program for the non -marine
lines of business with a relatively new type of excess of loss rcinsur-
aoce known as "franchise" reinsurance. 1 t essentiafly provides cov-
eragc that complements other excess of loss rcinsurinvc and is
triggered only if the aggregate iusses by all insurers from any given
catastrophe exceed a defined trigger point. ']'he company bciicves
that the coverage was a major contributing factor in containing
claims arising from Hurricone Andrew within its reinsurance pro -
grain,
11mr's INStJRAr 0-.- RtX01t1-,--1N 1 VKNAr1oNAI.
1365
SPli 113 DRAKI NSUkA `'C:i I tJItLiC LIMITEu C'OMYA"ii'-d;ortirtird
Gross premium, + ritieri in-raased by 24.5% from 1991, but nci.
pl'C111W T Volume i by Only it rrodest 2.1eIo, Leverage ratio is
Ott a n(t bunk, theicforr., improved significantly, In addition, pro•
ceeds from the in, ciy) public uff.ring of stock by the company';
parent, as detailed 'below, will increase the company's ability to
underwrite additionti) risks,
In March 1993, a ficnuuda holding company, Sphere Drsko,
1Ioldinxa Limited, was formed far the purpose of raising additional
capital through a public offering of common shares. On Septenibrr
22, 1993, a prospectus was issued offering 7,25 million common
shares by the holding company (approximately 40% of total author-
ized shares) and 1.15 million carnt"on shares by selling invcstora.
711e offering raised 5132.4 million, net of cxpensw, for the holding
company, which will be contributed to the capital of the company
and the capital of the insurance company in Bermuda in proportions
yet to be detemiined, apart from $4.5 million used to redeem out-
standing preference shares.
Upon the closing of the offering, the holding company acquired
control of both the Sphere Drake Group of companies in the U.K.,
including the operations of Sphere Drake Insurance p,l.c., as well as
the Bermuda companies, which prior thereto had bccrl separately
owned by the investor group. The Bermuda companies include
Sphere Drake Insurance (Bermuda) Limited which accepts aherns-
tive risk transfer business written by Sphere Drake Underwriting
Management (Bermuda) Limited for Sphere Drake Insurance p.l.c,
in London through a quota share reinsurance from London,
Organisational Structure
AMa �OMPANv NAME DomIC1L0 %OWN
or/c Drake 1loldingr UmlitV Nrrmuda
Sb tkfig� (NermidA Limited Bermuda loo
Sy��phere p,ake Insurance (atrmuda) Limited nerowda 100
Sphere Drad'e Underwvtrag Mrwr (Nmiuds) Bermuda 100
*hhrur. Prate 1.ini&4 UK 100
Spherr Drake Noll AS (U.K.) ALC. UK 100
SpIrre Dnke Atpmsrtl w# R'.f L4,mired UN ion
Fhem De4ke lasursom riA14 pld, UK Ip1
21611 Wtir Drake Inmranpp p.Le. 1A lull
Sphere Drake 11nderwrihns M,tmr i.id t.iK 100
SOURCE ON INFORMATION: Company Annual Report and
Statutory Statement
Summarized Accouata as of Vecember 31, 1992
USS per Local Currency Unit 3.5145 =1 British Pound ((;BP)
ASS F,TS
12/31/92 12/31/92 12/31192
081)(Wa) % Uslaxlo)
Fixed i0tereat securities . , ..... 129,900 29.3 196,734
Government stocks , , .... , , , ... 81,374 18.5 123,24I
?Rocks .. . . .. . . ... . . .... 33,643 7.7 50,952
Rea] estate . . .... . . .... . . .... 4,700 1.1 71118
Cash & bank deposits.... , , , ... , 41,(r08 9.5 63,015
Accrued investment income .. , , .. 6,036 1.4 9,142
Total unaffiliated investmcnu .. , ~297,261 67.6 450,202
Insurance • receivables..... , .... 131,499 29.9 199,155
Receivables .... . ..... . ..... . . 2.541 0.6 3.949
Taxes recoverable ... , .... .... 1,539 0A 2.331
Referred policy acquisibun cost ... 6,7R4 1.3 10,274
Total exacts ............ . ... 4,i9,624 100.0 F65,81
investment$ are stated in the balance sheet at cost less ditttinu-
tions in value which, in the directors' opinion, are permanent,
LJABILiTIES, SURPLUS & OTHER FUNi),S
12/31192 12131192 12131i92
GBP(000) % 11S$(000)
Losses & ad)ustment expenses , , .. 302,679 6&A 451,401
Unearned prcmittms............ 26,456 6.0 40,061
Iawrance - poyablCs...... . , , ... 27.529 6.3 41,693
Payabks ....... . ..... . ..... . VP _ 1.7 11,412
Total liabilities & other funds.... 364,199 82.8 551,579
Capital .. . ..... . .... . . ...... 67,00t1 15.2 101,472
Retained income ..... , ..... , A,425 1.9 12.760
Policyholdem'surplm......... _ 73,425 17.2. _114,231
total .. . . ........... . ..... 439,624 100.0 665,811
STATEMENT Ole INCOME,
I1i31192.,
Oros; pemiums written .. . . .... .. . ..
GgP(00p),
381,17?
liciosurance m4cd... .................
Net prv;niwns writtC+l. . ... . . .. . .. . ...
175,411 •'
•2,426
Net premiums earned .. . .... . . .......
"-
_ 171,485
�172,415
Total underwriting income ... , ... , .. , .
Lotses & kws adj eKp incurred , ... , ......
147,831 ' a
Comuiisaiuns & expeaws . . .... . .... . ...
41,7$6
Taal underwriting expenses , , , .. , .. , , .
189,591
Net underwriting income ... . . ... . ... .
-t 17 py .
Invextment incume... . . .... . . ... . ... . .
19,644
Investment expenses . . .... . .... . . ... . .
336
Net Investment incrohe . ...... . ... . . ..
19,309
Other operating incumc I expenset .. , .....
_ -1,103
Net operating income berate tax , , ......
~1.096
Development of Net Income
,
Net operating income before tax. , , ... , ...
1,096
Realized capital gains . . ... . . .... . ......
4,569 �ra
C urrertcy exchange gains . . ...... . ... . ..
Itk:ume taxCa........................
4.429
113 ��__.
Net income lifter tax . . . ..... . ..... . ..
10,206 t(�
Marine, aviation and certain general non-tnarilk busi"U V,
are subject to delay in reporting or with long settlemontcherld
tics are accounted for on a three year basis. General nonttta
business not subject to delay and motor
insurance buainm
accounted for Ott it one year basis.
CAPITAL. A SURPi.US ACCOUNT
Changes
1213102 121311
Policyholders' surlrl begin of year .... , , ... 51,219 77,57
Net income after tax .... ...... . ..... . 10,206 15,457
Capital paid in ..... . . ...... . ........ 14.000 2IAJ i
Total change policyholders' surplus ...... 24,206 36,f60�;
Pnlicyhotders' surpi end of year, ........ 75,413 r 114,29t r
RECENT DEVELOPMENT
Upnn clositig or the initial public offering, in a previously an•
nouncod strategy ennditional upon the offering, the company traw.,'
fared its I1.1C, mover operation to a new subsidiary, Drake InsW- :
ante plc. Simultaneously, Drake Insurance plc was sold to Drake
holdings Limited, a U.k. company owned by certain of the iuves•
tots, for GDP 10.0 million in c.%&h and GDP 15.01 of floating rats
prererence shares. The company has applied to the U.K. regulatory
authority to statutorily transfer its existing U.K, motor insurance
portfolio to Drake Insurance plc; thereafter the company will not
carry any U,K. motor insurance risks.
HISTORY
Tile company was incorposvied as Sphere Insurance Company
Limited on February 27, 1953 in England as a private noudlfe
insurance company. The company went public in 1963 with Alex-
ander Howden (holdings) Ltd. acquiring a majority shareholding in
1966 and thebalance of the capital in 1967. )n January, 1982'Sphcre
became a subsidiary of Alexander & Alexander Services Inc, when
Alexander & Alexander acquired the renamed Alexander Bowden
Group Ltd. Effective July 1, 1982 two other wholly owned Howden
insurance companies, The Drake Ins. Co, Ltd. and Vie Sterling Ins,
Co, Ltd, were merged into Sphere which at that time changed its
name to Sphere Drake Insurance p.l.c„ its current name.
On December 30, 1987, Alexander & Alexander completed the
sale of the Sphere Drake group to a group of international investors
comprising Centre Capital Investors L,P,, The DAi-Tokyo WOW-
tional Company i,imited, Electra Inveatmcnt Trust P.L.C. and in-
terest.. ideutifled with John C Head Ill' and family as well as senior
members of managcnlenl,
1366 81.2r145 INSURANCE' RFP0R'lb--INTr•,RNAT10NAl,
k,.
General Fund
yaar End Unreserved Fund Balance
June 30,1116 1 2,311,113
June 30,1987 2,441,464
Junne 30,1988 2,921,943
June X 1119 2,954,188
June 30,1990 2534,969
June 30,1991 2,122,473
/ June 30,1992 1,711,156
Iune 30,1993 1,205,099
June 30,1994" 1,136,005
" Estimate
Although these resources have been expended for capital improvements
(rather than operating expenses), its clear that we can no longer justify dipping
into savings for new spending initiatives. The remainder of the
unappropriated balance in the General Fund should be designated for working
capital and uninsured liability exposures.
Working, -Capital, $250,000 of the balance should be designated for working
capital needed for meeting expenses incurred prior to receipt of revenues and
to alleviate unanticipated short-term budgetary problems, This amount would
be equivalent to about 6% of General Fund operating revenues, a generally
accepted local governmental budgeting standard.
Self Insurance. A designation of unreserved fund balance for self insurance is
necessary for losses which are not covered by insurance.
We expect to purchase insurance from the Alaska Municipal League Joint
Insurance Association (AML/fIA), a joint insurance arrangement of municipal
governments, which will have limits of $2.25 million per occurrence, except at
the airport where we will have limits of $10 million. Insurance will be
procured for the full replacement value of our buildings and for the
depreciated value of our equipment.
We do no_t intend to purchase insurance for liability exposures excess of these
limits, for pollution, earthquake, wrongful discharge, discrimination or
inverse condemnation exposures, for collision coverage for our vehicles, or for
boiler and machinery explosion exposures. There will be a $10,000 per
occurrence deductible on the property insurance.
The city is a defendant in several law suits which may affect the status of
savings accounts.
1995 Budget Policies 5 2/1/94 DPU4 7
The city has a material exposure for personal injury claims arising out of the
January, 1992 chlorine gas leak at the Soldotna Wastewater Treatment Plant,
Superior Court Case No. 3KN-92-696 Civil, Zollman vs City of Soldotna, may
go to trial this year if it is not delayed by another personal injury suit filed with
the court by MQrgan -Blirclick just before the term of the statute of limitations
ended. The city attorney is handling the defense because the ANIL/JIA has
declined coverage arguing that there was an absolute exclusion from coverage
for such pollution claims. The city's appeal of the coverage determination has
been indefinitely postponed by mutual agreement between the city and the
AML /JIA.
The city has another material exposure in Superior Court Case No. 3A.N- -94-
3316-Civil, Woods_ vi City of Soldotna. Michelle Woods, a former Soldotna
Police Officer, claims she was harassed, falsely accused and terminated from
employment with the Soldotna Police Department without due process and in
violation of her constitutional rights. She seeks damages from the city on two
denial of due process complaints and one discrimination compliant. The
AMI./JIA has agreed to provide a "limited defense" for this case until the due
process issues have been answered by the court subject to the city's agreement
to reimburse the AML/JIA for 50% of the cost.
The city may also be liable for future "assessments" payable to the A2viL/JIA., up
to 30% of the annual premium deposit. The AML/JIA has a substantial self
insured retention (stopped at $250,000 per occurrence on liability_ coverages and
$300,000 per occurrence on workers compensation coverages) which it may
allocate to its member municipalities if the cost of claims covered by the pool's
retention exceeds expectations.
I think the unappropriated balance remaining in. the General Fund should be
sufficient for potential retrospective AML/JIA assessments and losses which
are not covered by insurance, If we spend the fund down any lower, however,
we could be facing an order of the court to increase taxes to pay off judgments.
This money won't evaporate because expenditures from unappropriated fund
balance (including expenses to settle lawsuits or judgments) may only be
authorized by a supplemental appropriation ordinance approved by the City
Council after a public hearing.
3. Debt and Capital Expenditures
A. Assume that no new debt will be incurred over the next fiscal year.
B. Capital outlays for equipment and improvements in all funds shall be 'forward
financed" and limited by the amount of savings held in fund balance or retained
earnings at the beginning of the fiscal year (net of designated reserves) and
anticipated State and Federal grants for capital projects.
1995 Budget Policies 6 2/1/94 DRAFT
13
Z C
wa A fi
v�p�i�fe� �yp. r►
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es ; sy� r w o.
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ip ere _ 71' n C7 C;
M• A
j CA
P s
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�• p y !► M1 fr+f' e°
»fit rnt
�•��
M1q•� A •N A iri r
C
W N A Q•ey16
ir
tl �'p •Qy0 b_ f�i,
3a
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^ 1Ir• et N
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pQpp C ;1 O^ yhy � .`Q •fig R
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a
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ti
16 Peninsula Clarion, ApH17,1994
M..Chlorine
Continued from P994 1
may be a distinction without a dif-
ference. it's an insurance policy
for the Zollntans that if the
resources of CH2M Hill were
insufficient to meet any judgment,
then the city would have W stand
up fur it. That's the general pHnci-
plc, Havelock said.
While the piling states that the
city will be held tutally responsi-
ble for any negligence of its con-
tractors, Havelock said the plain-
tiffs still have to prove they wcrc
injured.
"'That is still the meat of the
ruse."
In die cases, the Zollmans and
llurdicks are claiming loss of
wage earning capacity, pain and
suffering, emotional harm, emo-
tionKl and physical distress as
well as ccunomic damage to their
pruperty.
The city has basically denied
most of tiie claims being made in
the law!+uils. Besides questioning
the liability issue, the city doubts
'It's sort of scary for a lot of reasons. l don't
know what that dollar amount could be. It
could put the city In financlal trouble. We're
basically taking most of our reserves this
year to operate on. It raises grave concerns.'
the extent of tho injuries and the
level of compensation being
sought by the plaintiffs. In each
case, each plaintiff is seeking at
least $30,000 in damago.
In his response to the Burdick
suit, Havelock touched on three
defenscs. The first states that
Morgan Burdick can be "niadr.
whole" by other compensation.
He did receive worker's compen-
sation after the incident and his
job has been modified ito he does-
n't have to be exposed to futnos
anymore.
The other defenses were that
the plaintiffs failed to take action
— Ken Lancaster,
Soldotna mayor
to mitigate their damages, if any,
and that if Morgan Burdick was
Injured. which has been specifi-
cally denied, it was the result of
negligence of a "follow servant or
of C112M Hill or of Peninsula
Plumbing and Heating or of the
State of Alaska."
The plaintiffs aren't being real.
little. Havelock said,
'"Cite crux of it is that the city
thinks that the claimants arc
claiming far, far, tuo much," he
said.
Sterling is optimistic his clients
will pttvall.
"I havo always totally believed
in my clients and their case. L
think it's pretty uppamiat that this
accident was due to the negli-
gence of Soldotna slid its contrac-
tors," he said,
The jury trial for tho cases has
been selieduled for Nov. 7 in
Kenai. However, Flanigan has
requested a delay until after the
first of the year because of other
obligations. That motion has not
yet been puled on,
Soldotta Mayor Ken Lancaster
said the court ruling could take
the city Into $nine tough fiumOul
thim.4, especially since tho Alaska
Municipal League Joint Insurance
Association has told the city it
will not be covered by its insur-
ance plait against claims from iei-
idents who have been harmed as a
insult of the leak,
"It's sort of scary for a lot of
reasons. I don't know what that
dollar amount could be. It could
put the city in financial trouble.
We're basically taking must of our
reserves this year to operate on, it
raises grave concerns;" he said,
The Clarion was unable to
reach the attorneys representing
C1I2M hill,
CITY OF KENAI
,► Gil 0a� yq�sl„
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014
January 25, 1994
Kurt Olson
Walters & Olson
130 S. Willow, Suite 8
Kenai, Alaska 99611
Dear Kurt:
I am requesting that your firm and Last Frontier Insurance
Cache each submit renewal quotes for your existing lines
only for FY95. Do not quote lines that you are not
currently writing.
Estimated payroll for FY95 is attached. For contractors
equipment, I've decided to drop coverage on all equipment
whose value is less than $100,000, and I've done some
rounding. The new total will be $2,039,000. A schedule is
attached.
Also, with regard to contractor's equipment, please give
alternate quotes -for $25,000 and $50,000 deductibles.
For airport insurance, please also give alternate quotes for
$25,000 and $50,000 deductibles.
As in the past, I prefer not to buy policies written by
Lloyds.
The deadline for submittal of quotes is noon on May 16,
1994. If you need me to complete applications, get them to
me early so that I have plenty of time to work on them.
Sincerely,
Charles A. Brown
Finance Director
CAB/kl
Attachment
CITY OF KENAI
„c9d �4,
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014
,III'
1992
May 27, 1994
Bud Walters
Walters & Olson
130 S. Willow, Suite 8
Kenai, Alaska 99611
Dear Bud:
The City Administration has completed its review of the FY95
insurance proposals. The matter will be before the City
Council at the June 1, 1994 Council meeting.
I want to make sure you are aware of the scheduled
discussion date. The meeting will start at 7:00 p.m. I
trust I will see you there. I appreciate your proposal.
Sincerely,
Charles A. Brown
Finance Director
CAB/kl
c-a
Suggested by: Airport Manager
City of Kenai
RESOLUTION NO. 94-34
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA
TRANSFERRING $4,601 IN THE AIRPORT LAND SYSTEM FOR PURCHASE
OF A FLAIL MOWER.
WHEREAS, the Airport Manager desires to purchase a flail
mower to cut grass at the Airport; and
WHEREAS, money is available to transfer from a contingency
account.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA, that the following budget transfers be made:
Airport Land System
From: M & O - Contingency $4,601
To: M & 0 - Machinery & Equipment $4,601
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st
day of June, 1994.
JOHN J. WILLIAMS, MAYOR
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance: �s
(5/25/94)
kl
Permit
Alaska Department of Revenue
Charitable Gaming Division
P.U. Box 110440
Juneau, AK 99811-0440
Games of Chance and Contests of Skill
PERMIT APPLICATION
AS . 0
Please read the instructions before cowleting Aii wliiatfiw-
n
FOR DEPARTMENT USE ONLY
Permit Number
Cate of Issue
AGENDA
COUNCIL ON AGING
May 16, 1994
Kenai Senior Center
Agenda Approval
Minutes from Prior Meeting
Old Business
1. Bylaws, Joanna Hollier
2. Senior of the Month, Joanna Hollier Report
New Business
COUNCIL ON AGING
May 16, 1994
***MEETING"**
9:30 a.m.
Senior Center
Joanna Hollier - Chairperson
1. CALL TO ORDER
Members present: Joanna Hollier, Al Pease, Pauline Gross, Sam Huddleston,
Gene Seay, Roger Meeks
Members absent: Georgetta Funk
Also present: Pat Porter, Loretta Harvey
2. APPROVAL OF AGENDA Approved as presented.
3. APPROVAL OF MINUTES
Pat Porter read the minutes from the March 14th meeting. Minutes APPROVED as
read.
4. OLD BUSINESS
a. Population Statistics for Senior Citizen Districts
Pat Porter reported that she had attended a meeting where Senior Population Counts
were discussed. She presented the Council with a sheet showing district totals
(attached). The major changes from previous statistics were an increase of 56 in the
Kenai service area and a decrease of 149 for Soldotna. The allocation represents
approximately $60 per person in funding based on the statistics. Porter invited
members of the Council to attend another meeting on this item on May 17 at the
Borough.
5. NEW BUSINESS
a. By -Law Revisions
Pat Porter asked if the Council wished to remain at 7 members or if they would like to
expand to 9. After a brief discussion the following action was taken:
Council on Aging
May 16, 1994
Page 1
MOTION AND VOTE:
Sam Huddleston MOVED that the Council on Aging be expanded to 9 members
as per the City of Kenai requirements. Roger Meeks SECONDED. PASSED
UNANIMOUSLY.
b. Senior Citizen of the Month
Joanna Hollier reported that Jim Spraker had presented the idea of having such an
award and also a Senior of the Year Award. People would be nominated and then the
seniors would select the award recipient. The only criteria would be that the
nominated seniors be members of the $5.00 a Month Club.
Sam Huddleston said he was not in favor of such a contest. Roger Meeks agreed
and felt some very good volunteers may be overlooked and it would become a
popularity contest.
MOTION AND VOTE:
Sam Huddleston MOVED that the Council on Aging be expanded to 9 members. -
Roger Meeks SECONDED. PASSED UNANIMOUSLY.
6. ADJOURNMENT
There being no further business Huddleston moved to adjourn, Pease seconded. The
meeting was adjourned at approximately 10:00 a.m.
Respectfully submitted,
-------- --
LorettH ; dministrative Assistant
Council on Aging
May 16, 1994
Page 2
Population Statistics for Senior Citizen Districts
Senior Districts t
Populattion ';
FY193;- , wh
{}, ` �Po' ulatio"
;.� o'FY 94-qS?}i'
'; Increase-
f .
"r,r � IUecreasej
Nikiski & Tyonek
(Nikiski only)
224
239
15
Kenai
753
809
56
Soldotna
584
435
[149]
Area #1 Undecided
(Soldotna/Sterling)
---
30
---
Sterling
202
274
72
Ninilchik
129
149
20
Area #2 Undecided
(Ninilchik/Anchor Point)
--
21
-
Anchor Point
165
147
[18]
Homer
553
550
[3]
Seldovia
73
73
Seward
453
437
[16]
TOTAL
3,136
3,164
---
NOTE: All statistics have been calculated from 1990 Federal census data, State of Alaska
Department of Labor, Research & Analysis
FY 93-94 figures are an overlay combination of 1992 Borough precinct lines and census (blocks)
precinct lines.
FY 94-95 figures encompass the entire census blocks.
The following senior population, 60 years and over, are not included in any senior district:
22 Port Graham and Nanwalek (formerly English Bay)
10 unspecified area of the Borough
D-7
TOWNSITE HISTORIC REVIEW BOARD
ORGANIZATIONAL MEETING
MAY 25, 1994
1. CALL TO ORDER
2. SWEARING IN OF TOWNSITE REVIEW BOARD MEMBERS
3. ELECTION OF OFFICERS
4. REPORT ON HISTORIC PRESERVATION SEMINAR
Kim Howard, Administrative Assistant
5. REQUEST FROM PEGGY MULLEN - KENAI RIVER FESTIVAL
6. ADJOURNMENT
TOWNSITE HISTORIC REVIEW BOARD
ORGANIZATIONAL MEETING
MAY 25, 1994
1. CALL TO ORDER
Members present: Will Jahrig, Roger Meeks, Diane Rathman,
Rose Ann Murphy, Karen Mahurin, Dorothy McCard
Members absent: Jim Arness, Alan Boraas, Ethel Clausen
Council present: Mayor Williams, Linda Swarner, Hal Smalley, Duane Bannock
PU present: Phil Bryson, Ron Goecke, Teresa Wemer-Quade, Carl Glick
Staff present: Kim Howard, Loretta Harvey, Jack La Shot
2. SWEARING IN OF TOWNSITE REVIEW BOARD MEMBERS
Mayor Williams, administered the oath of office to the members present.
3. ELECTION OF OFFICERS
Will Jahrig nominated Karen Mahurin to serve as Chair Pro -Temp until a meeting can
be held with a full Board to elect officers.
4. REPORT ON HISTORIC PRESERVATION SEMINAR
Kim Howard, Administrative Assistant
Howard reported that she and Jack La Shot had attended the seminar in Anchorage
and it was very informative. Dorothy McCard also attended. The City has applied for
Certified Local Government status. There are presently 10 CLGs in the State and
there is $40,000 available statewide for grants per year. Once certified the City can
apply for some of the grant money available.
Townsite Historic Board
June 26, 1994
Page 1
One of the criteria the City has to meet to become certified is to identify professionals
that will be consulted when a particular project requires expertise in the areas of
architecture, history and archaeology. Once the City identifies these professionals
their resumes are sent to Janet Clemens in Anchorage for approval. The City must
also establish a plan for the Historic District. Plans from Seward and the Fairbanks
North Star Borough are available for information.
Mayor Williams said there was an architect with Kluge and Associates that may be
willing to help the Board. Williams also reminded the Board all meetings would come
under the Open Meetings Act.
Dorothy McCard reported that she had also attended the Historic Preservation
Seminar. She said it was well attended and very informative. CI -Gs have a direct tie-
in with local tourism efforts as studies have shown people like to come to locations
where they can experience culture and history. McCard suggested that Board
members be familiar with the ordinance concerning development matters and when
votes are taken on items in the TSH District. Members should state the reason they
are voting a certain way.
5. REQUEST FROM PEGGY MULLEN - KENAI RIVER FESTIVAL
Mayor Williams read the letter from Peggy Mullen (attached). It was recommended
that members of the Board contact her directly if they are interested in participating.
6. ADJOURNMENT
Karen Mahurin said she would work on setting another meeting date to set Goals and
Objectives and elect officers.
There being no further business the meeting was adjourned at 6:55 p.m.
Respectfully submitted,
Loretta ary
Administrative Assistant
Townsite Historic Board
June 26, 1994
Page 2
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TOWNSITE HISTORIC REVIEW BOARD MEMBERS
Will Jahrig
P. O. Box 51
Kenai, AK 99611
Ethel Clausen
P. 0. Box 2815
Kenai, AK 99611
Roger Meeks
P. O. Box 424
Kenai, AK 99611
Diane Rathman
204 Forest Drive, #17
Kenai, AK 99611
Rose Ann Murphy
1604 Tanaga Avenue
Kenai, AK 99611
Karen Mahurin
P. O. Box 1073
Kenai, AK 99611
Alan Boraas
P. 0. Box 702
Kasilof, AK 99833
James A. Arness
P. 0. Box 1061
Kenai, AK 99611
Dorothy McCard
93 Trumpeter Avenue
Soldotna, AK 99669
D:\WP51\CLERK\CORRES\TSH.LST
UVAPPROV9D 141MV
AGENDA
KENAI CITY COUNCIL - REGULAR MEETING
MAY 18, 1994
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. 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. SCHEDULED PUBLIC COMMENT (10 Minutes)
C. PUBLIC HEARINGS
1. Ordinance No. 1589-94 - Increasing Estimated Revenues
and Appropriations by $2,200 in the General Fund for
Library Books.
2. Ordinance No. 1590-94 - Increasing Estimated Revenues
and Appropriations by $7,750 in the General Fund as a
Result of the Rural Community Fire Department Grant
Awarded to the Kenai Fire Department.
3. Ordinance No. 1591-94 - Amending KMC 23.50.010(d)
Adding a New Pay Classification Called "Engineering
Technician."
4. Ordinance No. 1592-94 - Replacing the Tables Referred
to In the Personnel Regulations (Title 23) to Establish
a New Salary Structure by Grade and New Hourly Rates
for Part -Time Employees.
5. Ordinance No. 1593-94 - Adopting the Annual Budget for
the Fiscal Year Commencing July 1, 1994, and Ending
June 30, 1995.
6. Ordinance No. 1594-94 - Increasing Estimated Revenues
and Appropriations by $7,000 in the Council on Aging
Title III Fund.
-1-
7. Resolution No. 94-30 - Fixing the Rate of Levy of
Property Tax for the Fiscal Year Commencing July 1,
1994 and Ending June 30, 1995.
8. Resolution No. 94-31 - Transferring $1,500 in the
Boating Facility Fund for Additional Expenses Related
to Boat Launch Ramp Improvements.
9. Resolution No. 94-32 - Transferring $2,000 in the Water
and Sewer Fund for a Gas Monitor.
D. COMMISSION/COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Library Commission
5. Parks & Recreation Commission
6. Planning & Zoning Commission
7. Miscellaneous Commissions and Committees
E. MINUTES
1. *Regular Meeting of May 4, 1994.
F.
G. OLD BUSINESS
H. NEW BUSINESS
1. Bills to be Paid, Bills to be Ratified
2. Purchase Orders Exceeding $1,000
3. Discussion - Assessment Petition/Basin View Subdivision
Paving.
4. Discussion - Old Playground Equipment
5. Discussion - Tent Camping Park Project Status.
6. Approval - Change Order No. 1/Airport Security Gates -
Jahrig Electric/<$1,564.00>
I. ADMINISTRATION REPORTS
1. Mayor
2. City Manager
-2-
3. Attorney
4. City Clerk
5. Finance Director
6. Public Works Director
7. Airport Manager
J. DISCUSSION
1. Citizens (five minutes)
2. Council
R. ADJOURNMENT
-3-
UNAPPEOVED MINUTES
KENAI CITY COUNCIL - REGULAR MEETING
MAY 18, 1994
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
MAYOR JOHN J. WILLIAMS, PRESIDING
ITEM A: CALL TO ORDER
Mayor Williams called the meeting to order at 7:00 p.m. in the
Council Chambers in the Kenai City Hall building.
A-1. PLEDGE OF ALLEGIANCE
Mayor Williams led those assembled in the Pledge of Allegiance.
A-2. ROLL CALL
Roll was taken by Acting City Clerk Paulsen. Present were:
Williams, Bookey, Swarner, Measles and Smalley. Monfor arrived
at approximately 7:05 p.m. Absent: Bannock.
A-3. AGENDA APPROVAL
Mayor Williams requested the following changes to the agenda:
ADD: As B-2, Persons Present Scheduled to be Heard:
Allan Norville - U.S. Senators' Summer Visit.
To D-71 Miscellaneous Commission/Committees:
Townsite Historic Board Report.
MOTION:
Councilman Smalley MOVED for approval of the agenda as amended
and requested UNANIMOUS CONSENT. There were no objections. SO
ORDERED.
A-4. CONSENT AGENDA
Councilman Smalley MOVED for approval of the consent agenda as
amended and requested UNANIMOUS CONSENT. There were no
objections. SO ORDERED.
ITEM B. SCHEDULED PUBLIC COMMENT
B-1 Allan Norville - U.S. Senators' Summer Visit.
Norville stated that the Kenai Classic will be held July 6
through July 10, 1994. It is being sponsored by HabPro, a non-
profit organization. The purpose to is raise funds for the
protection of habitat around the Kenai River. The co-chairmen of
the event this year are Senator Ted Stevens and Mayor Don Gilman.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 2
There are nine U.S. Senators currently scheduled to attend the
event. Additionally, 25 sponsors will attend from all over the
U.S. and Alaska.
Norville believes this event will be an excellent opportunity to
show Kenai to these visitors and to show them what we stand for.
It's also an op E
ortunity to raise money.
Norville said hen a look at Oregon and Washington and the
problems they having with their salmon runs, it's clear they
didn't pay attention to their rivers. Alaska has time to protect
the Kenai River and its habitat. Doing so is in the interest of
everyone --commercial fishermen (drifters and setnetters), sport
fishermen, dipnetters, and subsistence fishermen. If we don't
protect our habitat, everyone will be affected --tourism and the
fishing industry.
Norville stated that he was speaking to the Council to let them
know about the Classic and to answer any questions they might
have. If anyone cares to participate, he would like be glad to
talk to them.
Nine U.S. Senators in one place at one time (outside of
Washington) is an unusual event. If it goes well (raising
$50,000-$100,000), this will become an annual event.
Mayor Williams suggested a reception or something similar to
welcome the Senators to Kenai. Norville stated the Senators will
be here only three days: They arrive on Wednesday; they will be
fishing Thursday and Friday; there is a banquet at the Captain
Cook on Saturday; and dinners set for Wednesday night and Friday
night. So Thursday evening is open right now. Norville said
they would like to take the people who will not be fishing on a
tour of Kenai.
Mayor Williams suggested a community open house at the Visitors'
Center and the City sponsor refreshments. He estimated the cost
at under $1,000.
Swarner asked what day it would be. Norville said probably
Thursday, July 7.
Williams stated that with Council's concurrence he would ask
Norville to schedule the evening of July 7 with the Senators for
an open house. He asked the Clerk to be sure the date would work
for the Visitors' Center.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 3
Norville stated again that this is a wonderful opportunity,
especially in regards to the fishing industry. Senators from
Oklahoma, New Mexico, Arkansas, Wyoming, Missouri and other
states will be here. They are not familiar with what's happening
up here with the Pacific fleet and our fish being intercepted.
This is an opportunity to let them know what is happening.
That's important because if anything does happen it will happen
in the Senate, in Congress. We need some influence there.
Williams asked if we would get the names of the visiting Senators
ahead of time. Norville said that he will get them to us when
the names are confirmed for the trip.
Williams suggested we have small plaques made up for the Senators
with the All -America City emblem on them in recognition of their
visit to the City of Kenai. This would help them keep in mind
that they were in Kenai --it's public relations.
Swarner suggested posters instead of plaques. Williams said that
in Washington, D.C. the Senators have glass cases full of plaques
and other memorabilia. When people from all over the country go
to visit the Senators, they see these things.
Norville said that the Good Morning America show this week is
good because everyone is focusing on Alaska right now. The
timing is very good. When the Senators arrive, their first stop
will be the Kenai Airport. There will be a welcoming committee.
Williams stated that the eyes of America are being opened to what
Alaska is all about. The numbers of tourists on the cruise ships
are expected to be astounding this year. Some cruise ships are
even going to Homer. Anything that publicizes the Peninsula as a
great place is good, especially in the eyes of U.S. Senators.
Swarner asked Norville, regarding
being done about a barrier between
stated that it will be addressed.
ITEM C. PUBLIC HEARINGS
the Carr's property, what is
the properties. Norville
C-1. Ordinance No. 1589-94 - Increasing Estimated Revenues
and Appropriations by $2,200 in the General Fund for
Library Books.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 4
MOTION:
Councilperson Monfor MOVED for adoption of Ordinance No. 1589-94
and Councilperson Swarner SECONDED the motion.
There were no public or Council comments.
VOTE:
Williams: Yes Monfor: Yes Bannock: Absent
Bookey: Yes Measles: Yes Smalley: Yes
Swarner: Yes
MOTION PASSED UNANIMOUSLY.
C-2. Ordinance No. 1590-94 - Increasing Estimated Revenues
and Appropriations by $7,750 in the General Fund as a
Result of the Rural Community Fire Department Grant
Awarded to the Kenai Fire Department.
MOTION:
Councilperson Measles MOVED for adoption of Ordinance No. 1590-94
and Councilperson Monfor SECONDED the motion.
There were no public or Council comments.
VOTE:
Williams: Yes Monfor: Yes Bannock: Absent
Bookey: Yes Measles: Yes Smalley: Yes
Swarner: Yes
MOTION PASSED UNANIMOUSLY.
C-3. Ordinance No. 1591-94 - Amending KMC 23.50.010(d)
Adding a New Pay Classification Called "Engineering
Technician."
MOTION:
Councilperson Smalley MOVED for adoption of Ordinance No. 1591-94
and Councilperson Bookey SECONDED the motion.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 5
There were no public or Council comments.
VOTE:
Williams: Yes Monfor: Yes
Bookey: Yes Measles: Yes
Swarner: Yes
MOTION PASSED UNANIMOUSLY.
Bannock: Absent
Smalley: Yes
C-4. Ordinance No. 1592-94 - Replacing the Tables Referred
to In the Personnel Regulations (Title 23) to Establish
a New Salary Structure by Grade and New Hourly Rates
for Part -Time Employees.
lYCSJ4ce)`E
Councilperson Monfor MOVED for adoption of Ordinance No. 1592-94
and Councilperson Smalley SECONDED the motion.
There were no public or Council comments.
VOTE:
Williams: Yes Monfor: Yes Bannock: Absent
Bookey: Yes Measles: Yes Smalley: Yes
Swarner: Yes
MOTION PASSED UNANIMOUSLY.
C-5. Ordinance No. 1593-94 - Adopting the Annual Budget for
the Fiscal Year Commencing July 1, 1994, and Ending
June 30, 1995.
MOTION:
Councilperson Measles MOVED for adoption of Ordinance No. 1593-94
and Councilperson Monfor SECONDED the motion.
Mayor Williams asked for comments from audience. There were
none. Mayor Williams asked to go off record. Upon return to
record, Measles MOVED to amend the ordinance as follows:
1. Increase City Attorney's salary to $81,000;
2. Increase City Manager's salary to $87,000;
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 6
3. Increase City Clerk's salary to $48,200;
4. Make the necessary changes associated with increasing
these salaries;
5. Increase the Legislative account by $25,000; and
6. Increase the Communications account by $3,200 for
APSIN/NCIC line charges.
Councilperson Measles asked for unanimous consent. Councilperson
Swarner SECONDED the motion. No further discussion and no
objections.
MOTION PASSED UNANIMOUSLY.
Williams asked for any further discussion from the public with
regard to the overall budget.
Public Comment by Gus Rodes, 207 Birch Street, Kenai: I heard
that you are going to increase the borough attorney's wages --the
city attorneys. Excuse me. I would like to know what he does
to get the wages he gets now. Because last meeting, right here
in this building, you told him to explain what the charges were
against me, and I have yet to hear from him.
Williams: I don't recall, unless it was part of the official
record, that we gave any direction of that sort to the attorney.
Rodes: I asked you to point out on the photograph that you
handed me which one of my vehicles was bad and what they needed
done to them and you turned to the attorney and you said, "The
attorney will take care of that."
Williams: He has probably taken care of it.
Rodes: He hasn't done a thing.
Williams: Well, we will look into that matter. Let me say with
regard to what the City Attorney does for the City of Kenai, he
runs a legal department that costs us about half what some of our
sister cities' attorneys' costs are who contract out, for one
thing. He has been extremely valuable to the City over the last
couple of years in settling outstanding cases of litigation and
saved the City hundreds of thousands of dollars. In one specific
instance, the Administration, along with the City Attorney,
negotiated completion of a long-standing piece of litigation that
probably saved the City as much money as what we'll pay the
attorney in the next ten years. So, with that, I would say that
the City Attorney has more than earned his salary and we feel
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 7
that we are very lucky to have him for the salary we are paying
him.
Rodes: They always say you get what you pay for. I think you're
paying too much.
Williams: We're getting more than what we're paying for in this
instance, I can assure you.
Williams asked if there was any further discussion from the
Council regarding the budget.
Councilperson Monfor stated she thinks it is either a good mark
for the Council or its an apathy mark for the public that we are
voting on this $7 million budget tonight and, cce for �fi
Mr. Bodes, we have heard from none of our consti uents. We don't
eq
even have the honor of the press here tonight to say that it's
passed with very little comment. So I think that the Council
and, with hats off to the Administration and the department heads
and the workers of the City of Kenai, that we are doing a good
job for the residents.
Williams stated that this is a well-balanced budget. It requires
no increases in either property taxes or sales taxes, and does
not rely on any other forms of revenue other than those that are
already being received by the City. The residents of the City of
Kenai are benefiting from one of the lowest mil rates in the
State of Alaska at 3.5 mils. This means that if you have a
$100,000 home in the City of Kenai your property taxes are $350
per year.
There were no further public or Council comments.
VOTE ON MOTION TO ADOPT AMENDED ORDINANCE:
Williams: Yes
Bookey: Yes
Swarner: Yes
Monfor: Yes Bannock: Absent
Measles: Yes Smalley: Yes
MOTION PASSED UNANIMOUSLY.
C-6. Ordinance No. 1594-94 - Increasing Estimated Revenues
and Appropriations by $7,000 in the Council on Aging
Title III Fund.
RENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 8
MOTION:
Councilperson Swarner MOVED for adoption of Ordinance No. 1594-94
and Councilperson Smalley SECONDED the motion.
There were no public or Council comments.
VOTE:
Williams: Yes Monfor: Yes Bannock: Absent
Bookey: Yes Measles: Yes Smalley: Yes
Swarner: Yes
MOTION PASSED UNANIMOUSLY.
C-7. Resolution No. 94-30 - Fixing the Rate of Levy of
Property Tax for the Fiscal Year Commencing July 1,
1994 and Ending June 30, 1995.
MOTION:
Councilperson Smalley MOVED for approval of Resolution No. 94-30
and Councilperson Bookey SECONDED the motion and called for
unanimous consent.
There were no public or Council comments and no objections. SO
ORDERED.
C-8. Resolution No. 94-31 - Transferring $1,500 in the
Boating Facility Fund for Additional Expenses Related
to Boat Launch Ramp Improvements.
MOTION:
Councilperson Monfor MOVED for approval of Resolution No. 94-31
and asked for unanimous consent, and Councilperson Measles
SECONDED the motion.
There were no public or Council comments and no objections. SO
ORDERED.
C-9. Resolution No. 94-32 - Transferring $2,000 in the Water
and Sewer Fund for a Gas Monitor.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 9
MOTION:
Councilperson Measles MOVED for approval of Resolution No. 94-32
and asked for unanimous consent, and Councilperson Smalley
SECONDED the motion.
There were no public or Council comments and no objections. SO
ORDERED.
ITEM D. COMMISSION/COMMITTEE REPORTS
D-1. Council on Aging
Swarner reported there was a meeting on Monday, May 16, which she
had not been able to attend. It was decided that they wanted to
have two more individuals on the Council on Aging to make it a
nine -member board. There was a discussion concerning the new
census figures provided by the Borough. United Way is going to
change their funding procedure this year; the change should be a
positive one for our center.��r.
Williams stated that on Tuesday, May 31, the Governor of Sakalirf—�
Island and possibly a mayor from SakalintIsland will be having
lunch at the Senior Citizens' Center. He stated they will be
touring the City of Kenai that afternoon, introducing them to the
information highway, etc. Any Councilmembers who are available
that day for lunch are welcome to join them.
D-2. Airport Commission
Measles stated that the meeting of last week was canceled due to
lack of agenda items. The next scheduled meeting will be
August 11, 1994.
D-3. Harbor Commission
Bookey stated a meeting was held on May 9. The major concern was
enforcement of Ordinance 1310-60 which deals with the camping
situation "down over the hill." The Commission is concerned
about the amount of activity there already; there appears to be
no enforcement. They would like to know who will enforce it, and
how and when.
Public comment: Will Jahrig. The campers are now beginning to
chop trees off the private property. They have wigwams, or
windbreaks, walls of plywood sheeting, built for protection.
RENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 10
They have been in there since before the snow was gone. Dragnet
took a plane load of them to Dillingham, but they didn't remove
the structures. There are several stumps of trees that have been
chopped down, apparently for firewood.
Jahrig asked if the City police would be enforcing that ordinance
or what?
Williams answered that the City Manager would be addressing that
first thing tomorrow.
D-4. Library Commission
Monfor stated that yesterday was the day for SLED. Emily
DeForrest stated that the Mayor attended, as well as Charlie
Brown, the City Manager and the City Attorney, and about 25
people in all. Monfor stated that the book sale is coming up in
June and asked people to bring their extra books to the library.
Williams stated that the demonstration on the information highway
was very interesting. Anyone can get onto the highway by dialing
a local 262- number.
D-5. Parks & Recreation Commission
McGillivray stated the minutes are in the packet.
Monfor stated that she had done a tour of the restroom facilities
of the City parks last weekend: Municipal Park, the beach, and
Cunningham Park. The visitors and fishermen are here and more
are coming. She asked Council to direct Administration to put in
Port -A -Potties if the City facilities cannot be cleaned up. She
also asked for dumpsters at Cunningham Park and at the beach.
They need to be put in early. Subsistence starts on May 26.
No objection from Council. Monfor asked for a progress report at
the next Council meeting. She also stated her concern regarding
the parking situation at Municipal Park. Some vehicles are
parking in the park; and others are lining both sides of the
road. A small child running into the street could not be seen.
She stated that there are already plans for parking there.
Swarner stated she had received a phone call about the parking
situation at Municipal Park. She asked what Administration's
plan is for parking there.
Monfor stated there are no picnic tables or benches.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 11
Kornelis stated that No Parking signs have been ordered for
Forest Drive, and they should be here any day. He has talked
with the police department; they are going to tell us their
recommendation about which side of the road to place the signs
on. The crews have started the oiling and a few other things; we
are trying to get the dock ready. That has been at the top of
our list. The parks are muddy still. We are watching it closely
so when it dries we can get the equipment in there. We plan on
putting in some diagonal parking just inside where you first
drive in. we hope to save as many of the trees as possible.
Monfor stated those trees are ugly and she doesn't care about
them.
Smalley stated that last weekend he noticed that there were many
users of the Municipal Park facility; most of them are residents
in that area. He concurred with Monfor about the condition of
the restrooms. He suggested that the crews do some brushing and
)C91rough
mbin in that park. He thinks it would help to be able to see
the park, and clean it up. He stated that some cities
close off parking inside the park and make people walk in and
out, controlling access to the park.
Bookey stated that recently he was driving by Municipal Park late
at night and noticed a fire under one of the canopies. It was
small and was put out, but it could have been bad. He likes the
idea of closing off traffic in the park. He thinks the police
should drive through there a couple times a night.
Smalley stated, with regard to grants, maybe the City Manager
should draft a letter discussing the facility as day use.
Williams stated that the question of that park may soon come up
again with regard to ownership now that the legislature has
completed their work on the Lands -Trust Act. We have until
December 15, 1994 for the court to rule on the validity of their
legislation. If all goes well and the court approves it, that
situation could be behind us. We should hear some time next
year.
D-6. Planning & Zoning Commission
Smalley stated the agenda and some code enforcement items are in
the packet. Regarding the "re -review" of development in Townsite
Historic and Beluga Lookout RV Park, it passed. The owners came
in and amended their schedule. They paid the additional amount
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 12
on the building permit. The new permit includes the whale. It
was noted that the building footprint itself did not change
appreciably, but the enclosed areas were basically the major
changes. The roof changed. It passed unanimously.
Under discussion of the Black Gold Estates and the naming of
streets which we had postponed from our previous Council meeting,
in going through the records there were no street names on file
except for Alpine Street. The plat was filed in 1964 with no
names. P&Z went to the PTI engineering staff to find out what
they had pencilled in as names on their maps. The question came
up, does Council wish for P&Z to establish a procedure (maybe
even requesting through Rep. Navarre's office) to adopt a
procedure for the city to name streets. Right now we don't have
that authority.
There was a concern expressed during the meeting by Mrs. Vozar
about campers in parking lots around town. She stated that the
policy of parking in the FAA campgrounds was a policy that was
established by enactment of the City Manager during a time when
there were no camping facilities available in the City. It was
explained to her that the City Manager has the authority to do
that.
There was discussion and a request from P&Z to establish a
meeting between the Townsite Historic Board and P&Z; does the
City Council wish to be invited to this meeting? A decision
needs to be made because there is a lot of activity going on
already.
Smalley stated we added four additional code enforcement items
which brings the total to 18 that the City is working on,
primarily vehicles that are derelict. There may be many more;
contact Mr. La Shot if you know of any others.
Williams stated that the code addresses those vehicles as:
wrecked, discarded, non -operating or illegally parked vehicles.
That is a primary concern.
D-7. Miscellaneous Commissions and Committees
a. Beautification - Swarner stated they met on May 10. It
was a work session because there was not a quorum. At the last
meeting, Mrs. Goecke resigned. There is an application from
Susan Hett in the packet for appointment to the committee.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 13
Williams stated that with Council's concurrence Susan Hett would
be appointed; she should be sent any pertinent information and be
advised of the next meeting.
Russian Committee - Williams reported that the Governor
of Sa lin Island will be here the end of the month for three
days.
Plans are moving along for a return trip to Okha. Information
Item #8 is a breakdown of the budget for that project. This
project is funded by the U.S. Information Agency -- NOT the City
of Kenai or the taxpayers. The committee's budget does have a
little problem of about $5,000. The figures given to the
committee by the Anchorage directors were all low figures. The
hotel rates have gone up; the Russians are now charging departure
taxes; and they have increased the fee for individual visas to
$60 per person.
ITEM E. MINUTES
E-1. Regular Meeting of May 4, 1994.
Approved by consent agenda.
ITEM F. CORRESPONDENCE
None.
ITEM G. OLD BUSINESS
Old business.
ITEM H. NEW BUSINESS
H-1. Bills to be Paid, Bills to be Ratified
MOTION:
Councilperson Smalley MOVED to pay the bills and Councilperson
Swarner SECONDED the motion. There were no objections. s0
ORDERED.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 14
H-2. Purchase Orders Exceeding $1,000
MOTION:
Councilperson Smalley MOVED for approval of the purchase orders
over $1,000 and Councilperson Swarner SECONDED the motion. There
were no objections. SO ORDERED.
H-3. Discussion - Assessment Petition/Basin View Subdivision
Paving.
Williams noted the report from the Administration completed by
Charles Brown, Finance Director. Williams complimented Brown on
behalf of the Council for his astute assessment of the problem
with regard to paving over there. He asked Council and the
audience if there was discussion regarding this matter.
Williams asked Brown why this project appears to cost more than
others (eg, Evergreen -Haller)? Is it because of roadbed
preparation? Brown answered that is why.
Smalley stated that he considers this a very low priority item.
Taking into consideration the memo from Brown, he concurs with
his comments and encouraged the City not to pursue this project.
Measles stated he agrees.
Bookey also agreed due to declining revenues at this point.
Williams directed Administration to prepare a letter to
petitioners regarding the Council's decision.
H-4. Discussion - Old Playground Equipment
Bookey asked how much equipment is concerned here. McGillivray
answered that this is the old equipment that used to be in
Municipal Park. It is basically a jungle -gym with a tower on the
top, and a slide off of it. This equipment was donated a number
of years ago.
Bookey stated that one good deed deserves another; he wouldn't
have any problem donating the equipment to someone else.
Smalley stated he didn't have any problem with it either. He
asked the City Attorney, if we donate this equipment and someone
is injured on potentially faulty equipment, is the City liable?
If we put it up for auction for $1, would we still be liable?
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 15
Attorney Graves answered he didn't think the liability changes
very much either way. We need to donate it "as is," with a memo
stating so.
Smalley MOVED to donate this equipment to Twin Cities Raceway and
draft a document donating it "as is" with no liability attached.
He asked for unanimous consent. No objections.
SO ORDERED.
H-5. Discussion - Tent Camping Park Project Status.
McGillivray stated that behind the Dust Bowl area there is an
area that was used previously by someone else. There is a road
and some cleared areas. He stated this area may be more
satisfactory to tourist campers because it's back in the trees.
The problem with working these areas now is the late thaw; they
haven't been able to get equipment into the area. There may be
half a dozen spots prepared now; five tables have been donated by
Fish & Wildlife that could go there; we have some fire pits, too.
Manninen asked if it looked like this could be done by June 1.
McGillivray answered that he doesn't know, but he is hopeful. He
said the street department has been busy repairing streets.
Swarner stated that, if the ground is ready, the street crew
should be pulled off the streets and get the camp grounds ready.
Williams asked about the location. He remembered we were going
to sell some land back there in a competitive bid sale. Kim
Howard stated that McGillivray has avoided that area.
McGillivray agreed and said the camping would be closer to the
pond area or behind the ball field. He stated campers could park
at the ball field parking lot and campers could carry their tents
in. Williams suggested the possibility of a sign such as "No
Vehicles Beyond This Point" or "Camping Only."
McGillivray has talked to the Visitors' Center and has been told
they are willing to handle collecting the fees and directing
campers to the sites.
Swarner asked who is going to the policing of the campground.
McGillivray said that during the day his crew could check on it.
Swarner stated her concern is about cannery workers who might
RENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 16
camp and stay "forever." She suggested the possibility of
doubling the camping fee when campers are found camping who
haven't paid at all.
McGillivray stated there is a restroom. There may be some cost
involved in that the only water is out by the highway (the fire
hydrant). It would cost something to run a line back closer to
the camping area.
Measles asked if there is a faucet on the first -base side of the
ball field. McGillivray answered no; the crew waters off of the
fire hydrant.
Williams stated this would be another place the City could use
the restroom design once it gets designed.
McGillivray said that we would be using airport land either
behind the ball fields or on Marathon Road. It shouldn't be a
problem as long as we don't make any drastic changes.
Smalley stated he appreciates the effort that has been made in
getting tent camping facilities going. Monfor stated that it is
a very good location and thanked McGillivray.
H-6. Approval - Change Order No. 1/Airport Security Gates -
Jahrig Electric/<$1,564.00>
MOTION:
Councilperson Measles MOVED to approve the change order.
Councilperson Monfor SECONDED the motion. There were no
objections. SO ORDERED.
Monfor asked permission to ask Will Jahrig a question about the
gates. She asked if this gate is part of the project for the
float plane basin. Jahrig answered no; it's the automatic entry
gates to the airport properties. Monfor asked what happened to
the electronic security gate for the float plane basin.
Jahrig asked for permission to address the Council with some
points regarding the gates. He answered Monfor by saying that
these gates (in the change order) are for four entrances to the
main airport, two operated by push button and two man gates.
Jahrig continued by stating that this project is just about
finished. He said he had wondered why his final request for
payment had not been put in, but the City Manager had told him it
was an oversight.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 17
Jahrig said he also wanted to point out that the project had been
delayed considerably because the manufacturer of the gates (in
Montana) didn't ship them for 4 or 4-1/2 months. Because of
this, Jahrig's bonding company has told him he is "hands off"
until the project is completed. The gates were ready to be
installed last fall. He said he received them about a month ago
and installed them within a 2 to 2-1/2 week period. Since then
some problems have arisen, some of which had been addressed
before and some which had not.
Jahrig stated he had hoped Randy Ernst, the Airport Manager,
would be at the meeting tonight because he felt some of the
questions should be posed to Randy in front of the Council. One
of the questions has to do with the emergency entrance gate (for
emergency vehicles during an emergency) and the gate at the
tower, which are the two vehicular entrances. At these locations
the old, existing gates were to be removed according to the
specs. Jahrig stated that he discussed with Jack La Shot and
Keith Kornelis at the time of installing the new gates that it
didn't seem right to take out the manual gates, which could be
left there and locked in an open position, for use in case the
new gates were broken or disabled for any reason. Jahrig said he
thinks it would "intelligent" to leave the old gates there in the
open position and use them when needed.
Jahrig also stated that during the process of testing the new
gates, it was found that the equipment on the emergency entrance
gate is not working in the way the manufacturer said it would
work. There is a transmitter that goes over an in -ground
antenna. The owner's manual states that this antenna could be
mounted 12" to 18" away from the ground. Unfortunately, the
antenna is working from 10" down to the ground; it is not
operating at the right height. If the transmitter is put on the
crash trucks and mounted at 611, that won't work because it will
be torn off by the snow plows. Also, this wouldn't meet the
criteria that the fire department wants for operation of the
emergency gates.
Jahrig stated that this is where the problem begins. He said
that everything is installed per specs; unfortunately, everything
is not working the way everyone would like to see it working.
Jahrig stated that he and Randy Ernst disagree about this. He
stated that Ernst has told the City Manager that Jahrig Electric
has not followed the specs because of the removal of the gates.
Williams stated that this whole matter could probably be taken
care of through the Administration. He suggested that Jahrig sit
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 18
down with the City Manager and Randy Ernst and work these
problems out. Jahrig said he would like to do that.
Jahrig stated that he fought Cliff Dent last fall to keep the
gates because he believes it's in the City's best interest.
Williams suggested that maybe Nelson could address the subject
from an engineering standpoint since he is the consulting
engineer on the whole project. Jahrig said he has discussed it
with Kornelis and La Shot, and it is his understanding that they
feel it would be in the City's best interest to leave the old
gates up.
Manninen stated that the engineers that were hired by the City
wrote the letter at H-6 in the packet. That letter states, "The
Contractor has provided the City with a finished product which
meets the specifications." He said that to him that means we are
obligated to pay. If there is a problem, maybe it is with the
specs. He said there may some reasons that we can't pay --
outstanding obligations, lawsuits or lien waivers or other
technical, administrative -type things. But since we're not
talking about paying those at this meeting, any action should be
deferred until the next regular Council meeting.
Williams stated that by the June 1 meeting, Administration could
have all of the paperwork together and it can be taken care of.
Jahrig stated again that he does not think the gates should be
removed. Manninen said that if the specs are met on the gates
and on the sensors and you get paid based on what is speced, then
you get paid based on what is speced. But if in the middle you
negotiate something that is a side deal that never came to the
Council, then nobody had any authority to negotiate and the
mechanical gates are there. The client is really the airport,
and he thinks Randy is right in saying that you bid taking them
out so take them out. If that is going to be amended, then maybe
we ought to be doing a telephone poll to the Council in the next
two weeks. But he would propose that it be worked out and
brought to the next meeting. Jahrig said he was sure he could
get a letter from Nelson's office saying that we feel . ..
Williams said the Administration should take care of this whole
thing and bring it back to the next meeting. There appear to be
two problem points: 1) Whether or not to remove the gates, even
though they were bid to be removed. Measles stated that point
does not need to come back to the Council because the Council did
not vote on the wording of the contract. If Administration, the
contractor and the engineer all agree that it's in the best
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 19
interests of the City to leave the gates in, they can make that
decision and it has no reason to come back to Council.
2) Regarding the sensors specs, if they don't work, it is up to
the Administration, the engineering department, to find out why
and make the arrangements for them to work and take care of all
of that and then bring it back to Council and we will say ok.
Jahrig said he had an electrical engineer here on the day of the
testing. It was determined that the unit appears to be working
but not at the level the manufacturer said it would. Jahrig said
he sent the unit back to the manufacturer to have it checked.
They have said it is working, and it is being returned to the
City (it should be here Friday).
Kornelis stated that the City does not plan to assess any
liquidated damages. He said that maybe that would help Jahrig
with his bonding. Jahrig said that it won't until the job is
accepted by the owner and signed off. Williams asked if the
bonding company would accept a letter outlining the problems, and
Jahrig said no.
Williams said again that it should all be resolved one way or
another and brought back to Council at the June 1 meeting.
ITEM I. ADMINISTRATION REPORTS
I-1. Mayor
a. Mission Road Project: A scoping session was held last
night. It was well attended and went very well. The consensus
was that the entire plan be reviewed by the church group and the
people in the Townsite Historic area. There may be some minor
modifications to the project. There was discussion about putting
in some lighting and changing the lighting specs to include the
old fashioned -type lights and going underground with the wiring.
There is a limited amount of funding allocated for the project,
and it is becoming apparent that we may go beyond that amount.
Williams said that he would like to encourage the Council to give
strong consideration to putting some extra money into the
project. This issue will come back before Council later.
Smalley said that the Kasprisin report not only included the old-
fashioned street lights but street signage as well. He asked if
that topic had been discussed at the meeting. Williams said no,
but there was some discussion about tour bus parking and routing
through that area. The consensus was that there should be no
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 20
buses beyond the fort. Maybe the buses could park and let people
take a walking tour.
b. Townsite Historic Review Board: There has been a
request for a meeting with the Planning & Zoning Commission.
Williams asked that this meeting be set to include
Administration, as well. Smalley stated that members of the
Townsite Historic Board were present at the meeting; they are
ready to meet ASAP. Williams suggested the next Planning &
Zoning meeting. Smalley suggested maybe beginning this meeting
at 6:00 p.m. before the next P&Z meeting. Their next meeting is
Wednesday, May 25th. Williams said to set the meeting for that
date and time in Council Chambers, to include P&Z and Townsite
Historic Review Board, Council members, and Kim Howard and Jack
La Shot. Kim and Jack attended the meeting (workshop) in
Anchorage and developed the memorandum in tonight's packet.
C. Map of City -owned Old Town Properties: (map in packet)
Williams stated that the property at Overland and Upland streets
is one that the City has dealt with for years. I have asked the
attorney to check back through the records to find out what the
status of that property is at this time.
Monfor stated that some of the properties on the map have gone
over the bluff. The one that is on Peninsula Avenue where the
old library sits is kept up fairly well. She said that she was
looking for places the City could mow and fix up, but most of it
is either over the bluff or on the beach.
Kim Howard stated that she had a change to the map. The lots to
the far right on Peninsula Avenue are the lots that Central
Peninsula Counseling Services wanted. The former owner paid the
back taxes and the City gave them a deed of repurchase, so the
City no longer owns that property.
Swarner said she drove by the property shown at Upland, Cook and
Mission, but she couldn't find it. Kim Howard said there isn't
actually a street cutting through; it's just platted that way.
Sandra Vozar said that she is "sitting on it." She fronts on Lot
18 and Will Jahrig fronts on Lot 19. He has a little -piece of
it; and she has a larger piece of it. But there are utilities on
it, she said. Vozar stated they have discussed it with the City
several times, wanting to add it on to their properties so they
could take care of it. But they have been told no because of the
utilities on it.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 21
Swarner asked if Kenai Avenue is on the beach. Howard stated
yes. Williams asked about the black strip through the block
marked "TSH." Howard stated that Jack La Shot thinks its a
right-of-way on Consiel's property across from Kenai Joe's.
Swarner stated that in driving around Old Town she noticed a big
hole in Mission Avenue by the pipe near the whale watching point
near the igloos. She said this has been brought up before, and
it should be fixed because someone could drive into it. Kornelis
said he would look at it.
Smalley MOVED for the City Administration review the possibility
of road closure on Mission and Main near that observation point
where it is potentially dangerous and within 8 feet of the sewer
main that is in there. Any kind of groundwork done now for a
barricade or fence is just cause for more erosion.
Swarner SECONDED the motion. Williams stated that the old Miller
property appears to have access on Riverview Drive from the
opposite side. Jahrig stated a problem will arise if the road is
closed there because his circular drive will become very busy.
That would need to be controlled.
Jahrig stated that when the reds are running at the end of July
the foot traffic that goes up and down the bluff is
"unbelievable." That is causing more erosion than anything else.
That is a situation which should be addressed, too.
Bookey asked Kornelis if we had any fencing we could put up.
Kornelis said no. Williams stated there are on -going discussion
with the Corps of Engineers regarding the whole bluff area. One
of the things that will have to happen is that the 16 separate
federal and state agencies will have to permit something to be
done there. That is the biggest hurdle. Williams said he
doesn't know how far the City can be expected to go or how far we
should go. He said he asked the engineers when the bluff erosion
study was being done, "Where will the bluff stop eroding?" The
answer was, "About the middle of the old Carr's Mall parking
lot." There are ways to stop the erosion, but the cost we have
associated with bluff erosion control is $25 million -and that
study was done eight years ago.
Kornelis stated that it has to be on a one-to-one basis of public
property that is being saved; it can't be private property. We
don't have that situation. Bookey asked if we can't protect our
water and sewer lines that are ready to go. Kornelis said that's
possible, but they are water/sewer lines --not mains. They are
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 22
service lines basically to the residences on Mission Street.
Bookey said you've got a main that goes down Main Street and
turns and goes down Mission. Kornelis answered, "Not anymore."
We have an interceptor line that goes down by the church. The
lift station over by Will's place is a very small lift station.
Bookey said there are several places using that line. If we lose
those lines, those people will have to be rerouted. Kornelis
said he was referring to frontage.
Williams suggested we ask the Corps what we might be able to do.
Kornelis said we can request a study, even though we know the
answer to that study. He said that he could do a suggested
resolution for the next meeting to start a study. However, there
are some costs involved.
Monfor suggested we take the Senators to see the problem with the
bluff when they are here. Williams said that we are only one of
hundreds of thousands of communities around the country who are
suffering the same problems. For example, on the lower
Mississippi much money has been spent holding the river back.
That is an area that warranted that kind of cost because of the
tremendous commercial value of the lower delta area. We don't
have that commercial value.
(No action taken on the motion.)
d. Creating Healthy Communities: A flyer is in the
packet. Williams said he talked at the Chamber about this a few
weeks ago. Council had directed Administration to prepare a
review of what the City could do to enhance healthy employee
programs within the City. This program will take place on
Saturday, June 4. He said he has been told this program is
excellent. He would like to have someone from Administration
attend, focusing on how it could tie together with our potential
health and communities program.
e. open Meetings Act: Copy in packet as passed. The most
significant change in the Act is that three people can talk
together without going to jail.
C-2. City Manager
a. State Aid: We had budgeted for a 25% cut in
municipal assistance, but it's only going to be a 10-15% cut
according to the Municipal League people.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 23
b. Forest Drive Project: The $3 million appropriation
had been temporarily lost in the special session, but is now back
in.
C. Governor's Legislative Monies: Also during this
session we were threatened with losing capital budget monies that
we thought we had, but those were preserved also. We tried hard
for the animal control shelter, but there wasn't enough money.
d. Department of Public Works Building: I have
requested some information on a 801x 200' layout for the DPW
building. It is being forwarded to me.
C-3. Attorney
No report.
C-4. City Clerk
No report.
C-5. Finance Director
No report.
C-6. Public Works Director
a. Court House Soils Remediation Project: Kornelis stated
that he had just received word that as the clean-up project has
begun some further contamination has been found on Lot 14 (the
lot adjacent to Granite Point). There are some automobile engine
blocks and stained soil around them. DEC and Glacier
Environmental and the City are involved. Glacier has given the
city a proposal to move the stock pile and test it; the proposal
does not include remediation of the soil because they don't know
what's in it. Total cost is $4,200. There is about $58,000 left
in that project. This is not on the Grace Drilling lots; it's
next to it.
Kornelis suggested that we authorize Glacier Environmental, on a
separate purchase order, a not -to -exceed amount of $4,200.
Smalley MOVED to do that. Measles SECONDED the motion. Smalley
stated that engine blocks have serial numbers and can be traced
to the owners. It may be worthwhile to do that because we should
not tolerate this.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 24
Bookey asked how many engine blocks were found. Kornelis said he
is not sure. Bookey said it is important that our people (Rachel
and Jack) stay involved in this and stay on site on a continuous
basis so this doesn't escalate into another $100,000 project.
No objections to the motion. SO ORDERED.
b. Street Names: Information Item #4 is a memo which
answers some questions Council asked about street names in Black
Gold Subdivision.
Smalley stated that he has received comments from the public
about how pleased people are that the streets are being cleaned
so quickly.
C-7. Airport Manager
No report.
J. DISCUSSION
J-1. Citizens
a. Karen Mahurin: She stated that the City of Kenai owns
very little land within the Old Town area. She encouraged the
City to "do something" with the lot at Upland and Overland; "do
something" with the triangular piece at Mission and Upland and
Cook; "do something" with the lot at Broad and Peninsula; and
maybe plant flowers on the large parcel where there is a park and
city buildings.
She also stated that there is a lot for sale on Mission Street
that the City could purchase now and that could be used as a park
and that would insure public access. She stated, "Here's your
opportunity. Please take advantage of it."
b. Ed Garnett: He stated that he has a special interest
in Block 4 of Old Town because he has been there for 15 or 20
years. The lot on the southwest corner of Upland and Overland is
a Native allotment lot; there is nothing to be done about it. He
has tried to buy it several times; Fred Braun has tried to buy it
several times. Garnett said that he (Garnett) is now attempting
to go directly to the Secretary of the Interior to get them to
change their policy. He said that City has tried unsuccessfully
to do that before; he is going to try again. He will discuss
with the City about cleaning up the lot because it detracts from
his land.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 25
Williams said he would ask the Administration to review that
situation again. Garnett said it's difficult and complicated
because the four or five lots in that area have about 18 heirs to
it. If any one of them disagrees, nothing can be done.
C. Sandra Vozar: She stated she is concerned about the
parking of RV's and open fires that begin with the subsistence
fishing this time of year. She showed Council a photograph taken
the evening before of a Volkswagen bus on the sand dunes below
her property. There is a group of people and an open fire in the
photo. If fire gets out of control in the dry grass, nothing
will be left of Old Town.
Another picture she showed was of an RV of a party who stopped at
her park on Monday evening and did not stay because they didn't
want to pay the $5.00 for power and sewer. Instead they parked
on the "Swarner property" for three nights for free. Vozar
stated that she sees this behavior often --in the sand dunes, in
the K-Mart parking lot, in the Mega foods parking lot, behind the
Katmai, in the Carr's parking lot. She said that Carr-Gottstein
called her on Monday and asked her if she would be willing to
rent out RV spots in front of the old Kenai Mall. She told them
proper facilities must supplied per DEC. They also asked if she
would be willing to put up a sign directing people to her RV park
on the bluff. She told them that would be an off -premise sign,
and she didn't want any trouble with the City. But she told them
maybe all the parks on the bluff could put up a sign.
Vozar stated that there used to be no RV parks in the City. The
Council wanted RV parks. She said she personally paid about
$50,000 for electricity and about $40,000 for water and sewer.
She continues to pay the bills for those utilities, as do Garnett
and Bookey for their parks. Campers should be made to use the
parks and not park on the streets. She encouraged the Council to
direct a letter to the businesses in town telling them there is
an ordinance about parking RV's and specifying no overnight
parking of RV's anyplace except in RV parks, and then have the
police enforce it with a ticket.
Bookey stated that a ticket cannot be issued on private property
unless requested. Vozar said that Mr. Karp is working with the
RV Association of Alaska regarding people camping along the
highways instead of in the state parks. She suggested maybe a
letter could go out from the City and the RV park owners in town.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 26
Vozar said RV park owners built their parks in the proper manner
with safety in mind, and it isn't right that electric cords
should be hanging out the back door to RV's at the Katmai, or at
the Moose and Elks lodges. She also said she doesn't like the
City of Kenai being in direct competition with her by allowing
RV's to use the FAA field. There was a time when that was
needed, but now there are proper facilities for the caravans to
park in. She said the City Manager can allow it or disallow it.
Monfor said she agrees with Mrs. Vozar. She said nothing can be
done about the Airstreams because they schedule a year ahead, but
we should tell them this year that from now on they must use the
parks.
Bookey said he agrees with Vozar, but there are only two caravans
left that come to Kenai and don't pay.
Smalley stated he agrees, too. When the caravans come to town,
we should let them know that in the future they need to use other
facilities. As far the Elks Lodge and the Moose Lodge, etc.,
they should be contacted and informed about the available
facilities, as well.
Chief Morris stated that if a private property owner reports that
someone is parked on their property and they don't want them
there, the police can then act.
Williams stated that the way the code was drafted it allows for
self-contained motorhome-type vehicles to park anywhere they have
permission. So the question here is to where they are parking.
It is the private property owner's responsibility to contact the
police department and ask that campers be cited or removed from
the property. Even much of the area of the sand dunes is
privately owned.
Garnett suggested sending property owners a letter (e.g. Carrs,
K-Mart, Mega, etc.) stating they are in violation of the
ordinance if they allow people to park on their property without
providing them the proper facilities.
Williams read from the code: "A recreational vehicle, motor -home
or camper with adequate self-contained sanitary facilities shall
be considered to have adequate sanitary facilities for purposes
of this ordinance." So if a vehicle is self-contained, it is
within the provisions of the ordinance. The only thing to
prevent it is the property owner refusing to allow them to park
there.
KENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 27
Garnett said that means that he could buy a piece of property,
landscape it, and allow self-contained units to park there; he
would not have to provide them with anything. Vozar said DEC had
told her that was not correct. She tried to put RV's on her
property before the facilities were in, but she received a letter
from the City of Kenai telling her about the state law saying no
RV's could park on property without proper facilities. Garnett
said someone came over several years ago and asked the City if
they could park self-contained units on a lot they owned; and the
City said no. Williams said this ordinance was revised 7/16/93.
Vozar said maybe it needs to be revised again.
Attorney Graves stated that the reason this ordinance was written
this way was to allow people to have visiting relatives on their
property in RV's. Williams stated that when the public hearing
was held several people were very concerned that the ordinance
did not allow for that. People wanted to be able to let their
relatives visit and park RV's on their property. So Council
worded the ordinance to allow for that.
Garnet said the problem isn't visiting relatives; it's people
intentionally parking without permission of the owner. That is a
trespass.
Vozar said she is not asking the City to send a letter to home
owners. She said she is asking for a letter to go to K-Mart and
Carrs and Mego Foods. Measles stated a letter could go out
encouraging those places not to allow RV parking in their parking
lots. Vozar stated it looks tacky to have RV's parked around
town. Measles said that under the code the City can't forbid
such parking, but maybe it could try to discourage it.
Vozar suggested that the letter might not have to come from the
City; maybe it could come from the Visitors' Center and the Kenai
Peninsula Marketing Council suggesting that RV's be sent to the
proper facilities.
Smalley suggested that members of Rotary and/or Chamber could
address these issues at those meetings and ask business owners to
help clean up Kenai.
d. Don Bridges and Jim Murdock: Bridges stated they are
from a non-profit organization in Kenai called URS, s a_-e
club, located at 513 Peninsula. Murdock said they l� ooking for
help from the City with their $91.50 per month water/sewer bill.
He stated they help the community with addictions such as alcohol
and drugs, but they are having trouble staying open because they
RENAI CITY COUNCIL MEETING MINUTES
May 18, 1994
Page 28
can't meet expenses. In trying to cut their operating budget
down, they are hoping the City can decrease their water bill.
Swarner asked Charles Brown if the $91.50 is a commercial rate or
if they are on a meter. Why is it so high? Murdock said there
is no meter on it. Williams said we could investigate what rate
they are being charged and be sure it's only the one for a one -
unit office, or a meter could be put on, and the rate would go
down for sure. Williams said Murdock should come in to City Hall
and check on that water/sewer rate.
Mahurin stated in support of URS that they are one of the few
organizations that do not charge for their services. They are
free for a number of services.
Smalley asked if URS had contacted Reps. Salo or Navarre about
funding from the state since state entities are using it.
Bridges said they have applied for grants and all have been
turned down.
e. Gus Rodes: Mr. Rodes spoke briefly about the City's
pending litigation against him.
Mayor Williams asked if the Council had anything further to say.
R. ADJOURNMENT
Hearing nothing further from the Council, Mayor Williams
adjourned the meeting at approximately 10:10 p.m.
Minutes transcribed and submitted by:
UNAPWftJ%
PROVED FRINUTES
Sheryl A. Paulsen, Acting City Clerk
PAYMENTS OVER $1,000 WHICH NEED COUNCIL APPROVAL OR RATIFICATION
COUNCIL MEETING OF; `
JUNE 1. 1994
1M#########t########ttt##ttt###t#t##t#>«t#t#t######tttt#>t#t####t#t######t#####t####t###ttt################t####t#####t#####t####################################
VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT MISC.
FOR RATIFICATION;
HOMER ELEC. ASSOC. INC.
KENAI PENINSULA BOROUGH
ALASKAN FEDERAL CREDIT UNION
BLUE CROSS OF ALASKA
ENSTAR NATURAL GAS
LIFE INS, CO. OF N. AMERICA
FOR APPROVAL;
GASTON AND ASSOC.
JAHRIG ELECTRIC
ZUBECK, INC.
ELECTRICITY USAGE
VARIOUS
UTILITIES
3,604.12
APRII SALES TAX
VARIOUS
SALES TAX
6.242.00
MAY CREDIT UNION
VARIOUS
LIABILITY
17.207.00
JUNE MEDICAL INSURANCE
VARIOUS
HEALTH INSURANCE
31,889.34
NATURAL GAS USAGE
VARIOUS
UTILITIES
5.290.21
JUNE LIFE INSURANCE
VARIOUS
HEALTH INSURANCE
1,002.83
FINAL PY NT IN SETTLEMENT OF. ALL CLAIMS
CP-CONG.HSG. AND FAA ROAD
CONSTRUCTION
335.000.00
(CASE 13 KN-93-1251-CI)
FINAL PAYMENT
CP-A/P GATES I
CONSTRUCTION
33,065.21
CP-A/P GATES II
CONSTRUCTION
23,609.15
PAY ESTIMATE 9
CP-THOM.PARK SEWER INT.
CONSTRUCTION
64,992.68
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CITY OF KENAIa-
it Od CC41vM" 4 1q14a4)M
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014
wFAmmroir
1III'1
1992
Memorandum
To: Thomas J. Manninen, City Manager
From: Randy Ernst, Airport Manager
Date: May 24, 1994
Re: Drava Disposal Proposal by Northern Test Lab May 1994
Approximately five years ago an air cargo company by the name of
Stratolift, Inc. flew fish and fuel to and from the Kenai Airport
in a KC97 aircraft. In 1991 they filed for protection from their
creditors under Chapter 11 of the Federal bankruptcy laws. A
year later (1992) they went bankrupt under Chapter 7. To make a
long story short, they stored 24 drums containing waste oil (as
described in the attached NTL report) on property believed to be
leased by Blue Mountain Ventures. This property is currently
where FAA maintenance and Federal Express are located. Upon a
recent inspection of the site, it appears the drums were actually
on City property and not on the Blue Mountain Venture property.
It would be prudent to remediate this site immediately since some
of the barrels are beginning to leak. I have met with the City
Attorney to discuss the possibility of legal action against
either party.
We concluded it would not be cost effective to pursue legal
action since Stratolift is bankrupt and it would be difficult to
prove Blue Mountain Ventures gave them permission to store
material on their property.
DRUM DISPOSAL PROPOSAL MAY 1994
CITY OF KENAI AIRPORT
Kenai Alaska
Prepared For:
Randy Ernst
Kenai Airport
210 Fidalgo, Suite 200
Kenai Alaska 99611
Prepared by:
Peter Campbell
Mike Tauriainen P.E.
Northern Test Lab
35186 Spur Highway
Soldotna, Ak: 99669
May 1994
I r 7 ! ONEEK—W — I d I 's T :,.I id Wn
May 13, 1994
Randy Ernst
City of Kenai
210 Fidalgo, Suite 200
Kenai Alaska 99611
Subject: Kenai Airport Waste Characterization and Drum Disposal
Mr. Ernst:
Northern Test Lab is pleased to present our workplan for environmental consulting services
and sample collection in the characterization and disposal of 24 drums at the FAA facility
for the City of Kenai at the Kenai Airport.
Enclosed is our proposed work plan and associated costs for the project. Peter Campbell
will be the project manager for this work. He has extensive experience in site assessments
and tank removals, including a number of tank removal projects in the vicinity of the
airport.
If you have any questions regarding the information presented here please contact our
office.
Peter Campbell
Environmental Scientist
Kenailkenidnim.009
35186 SPUR HWY SOLDOTNA, AK 99669 (9071262-4624 FAX 262-5777
Analytical, Environmental, Geotechnical, Construction Materiels Testing
The City of Kenai has discovered, 24 fifty-five gallon steel drums at the FAA building at
the Kenai Airport. The drums have been on the site for approximately four years, and
contain oil and possibly other substances. The City of Kenai has requested that the
material and the drums be disposed of. Several of the drums are empty, some are full, and
many have only a few gallons of oil.
NTL proposes to collect samples from each of the drums and send the samples to a
laboratory for analysis and characterization. The samples will then be composited into
three samples at the laboratory for comparison with EPA Energy Recovery oil burning
specs. If water is mixed with the oils we may have to conduct a waste management
profile.
The drums will be removed from the site, and disposed of at a landfill in compliance with
ADEC regulations. If material from the drums has spilled onto the ground and impacted the
soils additional soil, sampling and disposal costs may be incurred. Based on our initial field
inspection, soils contamination did not appear to be a problem.
We will supervise the removal of the material from the site, and provide a letter report to
the City detailing actions taken at the site. The following costs are presented based on our
understanding of the scope of work.
Cost Proposal
1. Drum Sampling
6 hours @ $65/hr..................................... 390
OVM Rental 1 day @ $100/day........................... 100
Site Safety Equipment $50/day......................... 50
Expenses.............................................. 50
2. Laboratory analysis
3- EPA Energy Recovery @ $203......................... 609
1- Waste Management Profile @ $550.................... 550
Freight............................................... 40
1
3. Waste Disposal
Used Oil (unknown quantity) @ $1.=38/gal (estimated) ... 700
Contaminated Water (unknown quantity) @ $2.50/gal..... 125
Drum Disposal 28 drums @ $38.50/drum ................. 1078
4. Communication and Reporting
14 hours @$65/hr..................................... 910
1 hour @ $95/hr..................................... 95
Total Estimated Proposed Fee
$4697
K
KACHEMAK ELECTRIC, INC.
SUPERVISOR
TAKEOFF WORK SHEET
FLOATPLN TAKEOFF
NOTES
5-24-1994 ll:,ji run
PAGE #: 1
******************************************************************************
KENAI MUNICIPAL AIRPORT
210 FIDALGO ST.
KENAI, AK. 99611
DATE: 05/23/94
PHONE: 283-7951
SUBJECT: KENAI MUNICIPAL FLOAT PLANE FACILITY
RE: K2500 PETRO-VEND INSTALLATION
PRICE INCLUDES:
1. Trenching & backfill. ( Aprox. 20 feet
2. Mounting K2500 pedistal.
3. Airport phone line.
4. Programming K2500 perimiters and bank cards.
5. Installing conduit & wiring for K2500 at pump site.
6. Use existing service.
7. Installation of fuel site controller.
PRICE DOES NOT INCLUDE:
1. Concrete pad or wall.
2. Utility cost or phone line service.
3. Relocating existing service.
4. Pump, reel, tank, meter installation or plumbing.
5. Owner supply all Petro -Vend equipment
6. CRT and Journal Printer housing.
KACHEMAK ELECTRIC, INC.
SUPERVISOR
TAKEOFF WORK SHEET
FLOATPLN TAKEOFF
SHORT FORM
5-24-1994 11:52 AM
PAGE #: 1
PART# DESCRIPTION QUANTITY COST AMOUNT
1002
CONDUIT 3/4 IMC
200.000
0.942
188.40
1003
CONDUIT 1-IN IMC
50.000
1.394
69.70
11362
CRS-H ECGJH221 3/4X21 L/T FLEX
2.000
154.230
308.46
11471
CRS-H EYS2 3/4 FEM COND SEAL
10.000
9.990
99.90
11472
CRS-H EYS3 1-IN FEM COND SEAL
4.000
12.850
51.40
11720
CRS-H LBY25 3/4 90D COND ELL
4.000
10.470
41.88
11721
CRS-H LBY35 1-IN 90D COND ELL
2.000
11.510
23.02
11906
CRS-H UNY205 3/4 MALE UNION
6.000
8.690
52.14
11907
CRS-H UNY305 1-IN MALE UNION
4.000
14.810
59.24
11285
CRS-H CHICO-A4 1-LB SEALING CO
1.000
11.090
11.09
11287
CRS-H CHICO-X7 1-LB FIBER
1.000
54.860
54.86
11378
CRS-H EFS215 PB STATION
2.000
119.820
239.64
11605
CRS-H GUAC26 3/4 GUAC COND BDY
4.000
25.890
103.56
11606
CRS-H GUAC36 1-IN GUAC COND BD
2.000
27.030
54.06
11620
CRS-H GUAL24 3/4 GUAL COND BDY
4.000
21.220
84.88
11622
CRS-H GUAL36 1-IN GUAL COND BD
3.000
27.030
81.09
11642
CRS-H GUAT26 3/4 GUAT COND BDY
4.000
27.510
110.04
11644
CRS-H GUAT37 1-IN GUAT COND BD
2.000
45.680
91.36
16980
ITE Q220R 2P 20A 240V CB
2.000
49.500
99.00
16893
ITE QF120 SP 20A 120V GFI CB
3.000
47.600
142.80
5478
A-B P1 HEATER ELEMENT
3.000
5.625
16.87
5487
A-B 509-AJA 3P 240 STR 0 NMA12
1.000
179.883
179.88
1839
WIRE XHHW-I2-BLK-7STR-CU-500CL
2000.000
0.138
276.00
2
MISCELLANEOUS MATERIALS
1.000
1750.000
1750.00
5
ELECT JOURNEY 100
24.000
31.350
752.40
7
ELECT JOURNEY 100
40.000
31.350
1254.00
6
ELECT JOURNEY 100
24.000
31.350
752.40
30016
TRENCHING W/OPERATOR
250.000
1.470
367.50
PROGRAMMING K2500
1.000
400.000
400.00
KACHEMAK ELECTRIC, INC. 5-24-1994 11:51 AM
SUPERVISOR PAGE #: 1
FLOATPLN TAKEOFF TOTALS PAGE
MATERIALS LABOR EQUIPMENT CONTRACT OTHER TOTAL
ESTIMATE:
4189.28
2758.80
0.00
767.50
0.00
7715.58
OVERHEAD%:
5.00%
8.00%
0.00%
0.00%
0.00%
OVHD TOTAL:
209.46
220.70
0.00
0.00
0.00
430.17
SUBTOTAL:
4398.74
2979.50
0.00
767.50
0.00
8145.75
MARKUP
20.00%
20.00%
0.00%
0.00%
0.00%
GROSS PROFIT
879.75
595.90
0.00
0.00
0.00
1475.65
TOTAL:
5278.49
3575.40
0.00
767.50
0.00
9621.40
BONDING: 0.00% X 9621.40 = 0.00
INSURANCE: 0.00% X 9621.40 = 0.00
OTHER: 0.00% X 9621.40 = 0.00
BID TOTAL: 9621.40
MARGIN $: 15.34%
NET PROFIT:
1475.65
FROM TRi CITY'S CONST. 03.23.1994 09112
1=01mrs CONSTR C1
If it "Tri Us - We Tri Hair er"
calls for
=-1gnerete, brick, 282-7594
.ock, stone or
stucco call us. _ HOMER
Box 1833
SOLOOTNA
ALASKA
9"69
Proposal
May 23, 1994
To: City of Kenai
210 Fidalgo, Suite 200
Kenai, AK 99611
Phone 283-7535 Fax 283-3014
Alta: Rachel Clark
Re: Quote on Float Plane Basin Fuel Tank Containment
Installation of slab and curb, as per plan and specifications.
furnished and installed.
For the sum of : Three thousand three hundred sixty-six doll,
Thank you
Paul Butch Poissant
Tri City's Construction
The bif emmw of Poor Quaffty fingerer on fon9 &Nor the
wear oil
Residential
commen:ial
OWNMO
PAUL POISSANT
I All labor and materials,
$3,366.00
of the Cheap Price
***END***
'CERTIFICATE {.OF INSURANCE ISSUE DATE (MM,'DD^!Y!
9/30193
PRODUCER
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND
INSURANCE CONNECTION
CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE
DOES NOT AMEND EXTEND OR ALTER THE COVERAGE AFFORDED BY THE
"477 Kenai Spur Hwy #101
POLICIES BELOW.
_DOTNA AK 99669
— 1 2.3.1
COMPANIES AFFORDING COVERAGE
G
' `
COMPANY A
LETTER Great Divide Insurance Company
'
COMPANY B
INSURED d ;; "
LETTER Em to ers Insurance of Wausau, A Mutual. Company
Tri-City's Construction
COMPANY
P.O. Box 1833 c-4 Cv
C
LETTER
Soldotna AK 99669 �
COMPANYD
LETTER
COMPANY E
LETTER
COVEMOES
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE
AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,
EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
1LTR
TYPE OF INSURANCE
POLICY NUMBER
POLICY EFFECTIVE
DATE (MM/DO"
POLICY EXPIRATION
DATE (MWDDIYY)
LIMITS
A
GENERAL LIABILITY
GENERAL. AGGREGATE
$ 11000,000
X COMMERCIAL GENERAL LIABILITY
CLAIMS MADEF7X OCCUR.
PRODUCTS-OOMP/OP AGG.
S 1,000,000
PERSONAL 6 ADV. INJURY
s 11000,000
GS002235
9/18/83
9/18/94
OWNER'S & CONTRACTOR'S PROT.
EACH OCCURRENCE
S 1,000,000
FIRE DAMAGE (Any one fire)
$ 50,000
MED. EXPENSE (Anyoneperon)
S 5,0w
A
AUTOMOBILE
LIABILITY
COMIMBINED SINGLE
$
ANY AUTO
LI
500,C
j
ALL OWNED AUTOS
i
SCHEDULED AUTOS
CA003833
9/18/93
9/18/94
BODILY INJURY
(Per pwwn)
s
X
X
HIRED AUTOS
1�t
S
X
NON,OWNED AUTOS
(Per socILY
GARAGE LIABILITY
PROPERTY DAMAGE
S
EXCESS LIABILITY
EACH OCCURRENCE
s
UMBRELLA FORM
AGGREGATE
$
OTHER THAN UMBRELLA FORM
B
WORKER'S COMPENSATION
X 8TAMORY LIMITS
=_ _ . ___
__........•-u.,__...... -
AND
2314-00-053049
9/17/93
9/17/94
EACH ACCIDENT
! 100,000
DISEASE -POLICY LIMIT
S 500, 000
EMPLOYERS' LIABILITY
DISEASE -EACH EMPLOYEE
$ 100,000
OTHER
DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLE"PEC AL ITEMS
Masonry Contractor
CERTIFICATEHOLDER ..
CANCEL ATION - -- :.. .:. ..
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE
EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO
r4'v of Kenai -Public Works
MAIL 20 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED T( _
Fidalgo
LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR
Attn: Keith Kornelius
L ILITY OF ANY KIND UPON THE COMPANY, ITS AGENTS OR REPRESENTATIVES.
Kenai AK 99611 r
D REPRESENTATIV
ACORD 25•S t7!M
a ACORD CORPORATION 1990
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"300:SERIES HEAVY=DUTY`FLAIL MOWERS
FEATUREJBENEFIT PROFILE "
FULL WIDTH RUBBER DEFLECTOR
SHIELD (OpW")
Fastens to the rear of the mower
for protection against dirt, dust
and flying objects.
SIDE GUARD HEAVY-DUTY GEARBOX
Protects bearings when the mower Continuous 45 horsepower
is operated next to obstacles. rating to handle tough
F- cutting conditions.
ADJUSTABLE, FULL WIDTH GAUGE ROLLER
6-MInch diameter, full width roller
vides an even cut from 1/2 to 5-inches.
810D SHOES "
brunt of wear from
with the ground. Made
of !%,
asting, heat -treated,
8/8-thick, high -carbon
reel: Can be replaced if
needed.
�1 cs
.._ . *W" .
540 rpm FM shaft is fully
shielded for safe operation.
1850 RPM ROTOR SPEED
Produces cleaner cutting and
finer pulverizing of material.
CATEGORY 2/1 HITCH
Hitch on Models 360 and 370
are centrally mounted while
the Model 390 is available
with a centered or 12-inch
right offset hitch. Bushings
for Category 2/1 compatibility
are included.
HEAT -TREATED, SIDE -SLICER KNIVES
(good for all purposes but particularly
good for tough conditions. Smooth cut
knives are available through (Parts)
for grassy, weedy conditions.
w Am. 9 C LOw in U.S.A.
C35-650-5
width......
height range .
300 Series Heavy -Duty Flail Mowers
SPECIFICATIONS
l3peci cations and design subject to change without notice)
�60 V0 l �0
............ 59.5 in. (1.5 m) 71.5 in. (1.8 m) 90.5 in. (2.3 m)
............ 0.5 to 5 in. 0.5 to 5 in. 0.5 to 5 in.
(13 to 127 mm) (13 to 127 mm) (13 to 127 mm)
............ Sid&41u er knives, Side -slicer knives. Side -slicer knives,
mounted in pairs mounted in pairs mounted in pairs
i blades ................
54
- 66
84
dion...................
.Fonv:rd
FocWW
Forwatd
a>eter ..................
4.5 in. (114 mm)
4.5 in. (114 mm)
m
4.5 in. (114 m)
Inter at tla8 tips...........
17.25 in. (438 mm)
17.25 in. (438 mm)
17.25 in. (438 mm)
tt speed .................
1850 rpm
1850 rpm
1850 rpm
speed ..................
95 mph (153 km/h)
95 mph (153 km/h)
95 mph (153 km/h)
sing diameter .............
1.625 in. (41 mm)
1.625 in. (41 mm)
1.625 in. (41 mm)
d ......................
540 rpm
540 rpm
540 rpm
mdog ..................
45 hp (34 M
45 hp (34 M
45 by (34 M
Ott drive belt ..............
Section HC
Section HC
M 2 Section
single
single
pound
t regoired PTO bp..........
75 hp (56 W)
75 hp (56 IcVVO
75 hp (56 W)
i required PTO hp ..........
30 hp (22 W)
30 hp (22 M
40 hp (30 M
tegory ..................
_ 2/1
2/1
2/1
let....................
None
None
None
�. ..................
6lds plate thickness ...............
Skid elm thickness ...............
Geop roller diameter ..............
Geo
OWN" �width ...................
Oreeali _ length .................. .
Ovens height ...................
........................
0.188 in. (5 mm)
0.250 in. (6 mm)
0.312 in. (8 mm)
5.5 in. (140 mm)
1.125 in. (29 mm)
69.2 in. (1.8 m)
39 in. (931 mm)
35.5 in. (902 mm)
794 lb. (360 kg)
0.188 in. (5 mm)
0.250 in. (6 mm)
0.312 in. (8 mm)
5.5 in. (140 mm)
1.125 in. (29 mm)
81.4 in. (2.1 m)
39 in. (931 mm)
35.5 in. (902 mm)
904 lb. (410 kg)
0.198 in. (S mm)
0.250 in. (6 mm)
0.312 in. (8 mm)
5.5 in. (140 mm)
1.125 in. (29 mm)
99.7 in. (2.5 m)
39 in. (931 mm)
35.5 in. (902 mm)
1093 Ib. (496 kg)
EQUIPMENT FOR BASE MACHINE
ded, side -slicer knives
2J1 three-point hitch hookup
540 rpm PTO
ity gauge roller with anti -friction, self -aligning
Replaceable skid plates
Three bank rotor
Bearing guards
Bearing anti -wrap guards
45 PTO horsepower rated gearbox
90.5 in. (2.3 m)
0.5 to 5 in.
(13 to 127 mm)
Side -slicer knives
mounted in pairs
84
4.5 in. (114 mm)
17.25 in. (438 mm)
1850 rpm
95 mph (153 km/h)
1.625 in. (41 mm)
540 rpm
45 hp (34 M
5VX-2 Section
powerband
75 hp (56 tVir)
40 hp (30 M
211
12-in. (305 mm)
to the right
0.188 in. (5 mm)
0.250 in. (6 mm)
0.312 in. (8 mm)
5.5 in. (140 mm)
1.125 in. (29 mm)
99.7 in. (2.5 m)
39 in. (931 mm)
35.5 in. (902 mm)
1093 lb. (496 kg)
92-C L Ww In U.SA
Suggested by: Airport Manager
City of Kenai
ORDINANCE NO. 1596-94
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA
INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $44,375
IN A NEW CAPITAL PROJECT FUND ENTITLED "AIRPORT SIGNAGE
PROJECT".
WHEREAS, the City desires to purchase and install lighted
directional airport signs on the airport taxiways; and
WHEREAS, it is expected that the FAA will participate with
93.75% of the financing, and that the State of Alaska will
participate with 3.125% of the financing.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA that estimated revenues and appropriations be
increased as follows:
Airport Land System
Increase Estimates Revenues:
Appropriation of Fund Balance 1,387
Increase Appropriations:
M & O - Transfers 1,387.
Airport Signage Project
Increase Estimated Revenues:
Transfer from Airport Land System $ 1,387
FAA Grant 41,602
State Grant le386
44 375
Increase Appropriations:
Design (in-house) $ 1,000
Inspection (in-house) 2,000
Construction 41,375
44 375
Ordinance No. 1596-94
Page Two
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this
15th day of June, 1994.
JOHN J. WILLIAMS, MAYOR
ATTEST:
Carol L. Freas, City Clerk
Introduced: June 1, 1994
Adopted: June 15, 1994
Effective: June 15, 1994
Approved by Finance: C-'qdl
(5/27/94)
kl
C.O. 'cent to
C.G. approved by
on _
on
CHANGE ORDER NO.: 1
Project: Thompson Park Sewer Water & Sewer Date Council Approved:
Contractor: Foster Construction
Attested by:
City of Kenai
You are hereby requested to comply with the following changes from the contract plans and specifications:
Item
No.
Description of changes - quantities, units,
unit prices, change in completion schedule
Increase or
(Decrease)
1.
Furnish and install 4" schedule 80 PVC
pipe at designated intersections on the
project at $11.00/LF. Includes labor,
material, equipment, supplies, and anything
else to complete the work.
1,000 LF X $11/LF
$11,000.00
Payment will be at the unit price of $11/LF
FOR CUUNCIL lVir.: i 1N6 OF G I
--D City Mgr. -[] Attorney
'Public Works ---[� City Clerk
Cs
-Q--Q� Finance-[]
Original To r W Submitted By--In!!�
Council OK MNo MYes -
Net change in contract price due to this C.O.
$ 11,000.00
CHANGE IN CONTRACT TIME
Original time W&S=10/1/94
100%=6/30/95
Previous C.O.'s 0
This C.O. 0
Revised Contract time: orig
CHANGE IN CONTRACT AMOUNT
Original Contract Amount 1,553,777.00
Previous C.O.'s 0.00
This C.O. 11,000,00
Revised Contract Amount 1,564,777.00
(Attached) (Above) is full justification of each item on this C.O. This C.O. is not valid until signed by both the
Owner and Engineer. Kenai City Councit has to approve all C.O.s. Contractor's signature indicates his agreement
herewith, including any adjustment in the Contract sun or Contract time.
By By
Engineer Contractor
Date Date
By
Owner
Date
Ix
M A Y- 1 2- 9 4 T H U 1 3 : 2 3 F o s. t e r C o n s t r u c t i a n
P - 0 1
Post-itIm brand fax transmittal memo 7671
May 13, 1994
City of Kenai
Attu: Jack Lashot
210 Fidalgo Ave Suite
Kenai, AK 99611
Subject: Thompson Park Improvements -Phone Conduit Placement
Mr. Lashot:
It has been brought to our attention, Pacific Telephone Inc. (7M is expecting 4" SCH SO PVC
to be placed as required for each intersection located in the Thompson Park Subdivision. We are
offering an estimated quote of $11.00/LF to complete the necessary work. This number includes
materials and labor for 25 runs approximately 40 LF each.
If you have any questions you can contact me at 262-9139.
Sincerely, 2� X -�/,O L
�000Lf X to j/�00
Steve Fosie P'2lrfc ''
WALTER J. HICKEL,
ILl �
U�
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES %
l P.O. BOX 196900
/ ANCHORAGE, ALASKA 99519-6900
REGIONAL DIRECTOR, CENTRAL REGION 266-1,"0 (FAX 2a.1573)
RECEIVED
May 16, 1994
Representative Mike Navarre
Alaska State Legislature
State Capitol Room 521
Juneau, AK 99801-1182
Dear Representative Navarre:
CITY ADMIN. OF lCENAI
Thank you for your letter of April 22, requesting consideration of a pedestrian crossing at
the intersection of Tinker Lane and the Kenai Spur Highway for students attending the
Kenai Middle School and the Kenai Central High School.
We have briefly reviewed the pedestrian facilities suggested in your letter. From our
review, the most feasible solution is a school crosswalk with "20 mph when flashing" signs.
Our experience shows that school crosswalks combined with a crossing guard and
enforcement of the 20 mph speed limit by local officials provides a safe and effective
crossing for students.
The other suggestions: an overpass; an underpass or the pedestrian activated traffic signal
would require a stand alone project be developed or would delay the Kenai Spur Highway
project which is scheduled to advertise this summer. The cost for overpasses and
underpasses is in the $1.0 to 2.0 Million dollar price range and require extensive fencing
to ensure they are used. The cost for traffic signals is between $250,000 and $500,000
depending on the complexity of the intersection . Signals still require the presence of a
crossing guard to ensure safe crossing.
We will review the location for the school crosswalk with the Associate Superintendent of
Schools, John Dahlgren. If there are no complications that result from the engineers
review, I see no reason why the school crosswalk could not be included with the Kenai
Spur Highway Project. We would of course encourage the Kenai Peninsula School District
to provide a crossing guard and the appropriate enforcement.
Thank you for your continued interest in the Kenai Spur Highway project. We are looking
forward to the completion of the project.
Sincerely,
o n D. Horn, P.E.
Regional Director
MEH/kkk
cc: Ginger Johnson, Legislative Liaison, Office of the Commissioner
Rowe D. Redick, Director, Design and Construction
Emery Thibodeay, KPB School Board, P.O. Box 2026, Kenai, AK 99611
John K.Dahlgren, Associate Superintendent KPB, 148 N. Binkley St.,
Soldotna, AK 99669-7598
Thomas Manninen, City Manager, City of Kenai
Senator Judy Salo, Alaska State Legislature
Council Disc.
6/1 /94
MEMORANDUM
lffffffffffflf!!N!!flfflff/fffff!!llfff!llfffffffff�fllffff!!f ffffflfffffffN
DATE: May 26, 1994
TO: Tom Manninen, City Manager
FROM: Keith Kornelis, P
SUBJECT: BLUFF EBOSION
FOR: City, Council Meeting of June 1, 1994
f f!!!!f N!!f!!f ff!!!f!!lfffff!!lfflf!!f!!f!llfNN�f ff f fffffff lNf
Please find attached the information I received from the Corps of Engineers on
Section 103, Coastal Storm Damage Reduction Projects. Please note:
1) Project needs investigation and study showing feasibility and economic
justification. (Generally a 1:1; project cost: property saved)
2) Shoreline must be publicly owned.
3) Federal limit is $2 million with additional cost paid by City.
4) Phase I = Reconnaissance (Federal expense)
Phase II = Feasibility study (1/2 City expense)
5) City must agree to contribute in cash the local share of project planning and
construction costs.
The second page of the attachment gives a sample resolution requesting the corps to
conduct studies to determine the feasibility. After reading the attachment does the
City Council want me to prepare such a resolution?
Je
Q -� �'�
US Army Corps
of Engineers
Alaska District
SECTION 103
COASTAL STORM DAMAGE.
REDUCTION PROJECTS
WHAT CAN THE CORPS DO? Section 103 of the 1962 River and Harbor Act
establishes authority for the Corps to construct small beach and shore
protection projects. A project is adopted onl after detailed LrivesSization
and stud clearly show its engineering easi z ity and economic
justificat on,
To qualify for this program, the shoreline to be protected must be publicly
owned or used. Private land may quali y, owevetr, e pro act is
now&--
necessary to protect nearby public facilities. The object is to retain or
restore existing land, not to create new land. Each project must be complete
within itself. The storm damage must be the result of wind -driven waves
and/or ocean tidal action, not streamflow.
The total Federal expenditure for each Section 103 project is limited to
$2 n 11 on w c nc u es o aan ng 'na construction cosecs. Any
additional costs must be aid b t e ocal sponsor . Costs o acids ,
easements, and operation a-rld maintenance ot the project must be non -Federal.
The Corps studies potential projects in two phases: reconnaissance, at
Federal expense, and feasibility stud hal Which Me Iveal sponsor
must-
a , The reconnaissance determines whether more detailed study is ljkelyto
develop a feasible project. In this phase, which usually takes about 8
months, the problem is defined. Potential solutions are identified and their
feasibility assessed. The study includes a preliminary analysis of the
Federal interest, costs, benefits, and envirotusental impacts of the proposed
project, and estimates the cost of preparing a Detailed Projoct Reporc.
Before the feasibility phase of study can begin, a signed cost -sharing
agreement with the local sponsor is required. This study; which usually -
takes 9 Co 18 months, results in a Detailed Project Report:.
WHAT ARE THE LOCAL_ RESPONSIBIL_TTIEV Formal assurance of local cooperation
must be furnished by a State or local agency (for example, an incorporated
municipality) with the legal and financial authority under State law to act
as local sponsor. Typically, the sponsor must agree to the following:
1. Contribute in cash the local share of Broject planning and
construct on cost. The non -Federal share is 35 percent for. storm damage
rs uetion pro Bets to protect public facilities; protection of privately
owned property is 100 percent non -Federal, unless protecting the private
facilities is necessary for the structural integrity of the project.)
2. Provide without cost to the United States all necessary lands,
easements, rights -of -way, and relocations required for construction of the
project, including that required for periodic nourishment.
3. Hold and save the United States free from claims for damages which
may result from construction and subsequent maintenance of the project,
except damages due to the fault or negligence of the United States -or its
contractors.
4. Assure continued conditions of public ownership and use of the shore
upon which the amount of Federal participation is based during the economic,
life of the project.
5. Assure maintenance and re air, and local share of periodic beach --
nourishment where applicable, during the useful life of the works as required
to serve the' project's intended purpose.
6. Provide and maintain necessary access roads, parking areas, and other
public use facilities open and available to all on equal terms.
HOW CAN ,,STUDY BE REQUESTED? An investigation under Section 103 may be
begun after we receive a formal request from the prospective sponsoring -:-
agency. An example of an acceptable resolution is given below. This request
and any further inquiries concerning a small storm damage reduction project
should be made directly to:
U.S. Army Engineer District, Alaska
ATTN: Planning Branch, CENPA-EN-PL
Post Office Box 898
Anchorage, Alaska 99506-0898
SAMPLE RESOL_ _
Be it resolved that the (C_ L Count 1_ etc.) requests the U.S. Army -Corps
of Engineers to conduct studies to determine - the feasibility of developing ._a -
small storm damage reduction project at (location) under the authority
provided by Section 103 of the River and Harbor Act, as amended.
It is understood that, if it is found feasible and advisable to develop a�
small storm damage reduction project at (location), the (_ Council_ etc_)
would be required before construction commences to enter into a contractual
agreement that it will provide such local cooperation as may be prescribed -by
the Secretary of the Army.
The (Clerk. Secretary, etcJ of the (Ci&y Council. etc.) shall be, and --is
hereby, directed to transmit three copies of this resolution to the District
Engineer, Alaska District, U.S. Army Corps of Engineers.
Signed (Mav�gte.)
Corps of Engineers
Program for Emergency
Streambank and Shoreline
Protection Projects
Under Section 14 of
the 1946 Flood Control Act
Background
Section 14 of the 1946 Flood Control Act,
as amended by subsequent legislation,
provides authority to the Corps of
Engineers to develop and construct
emergency Streambank and shoreline
protection projects to protect endangered
highways, highway bridge approaches,
public works facilities such as water and
sewer lines, churches, public and private
nonprofit schools and hospitals, and other
nonprofit public facilities. Federal costs are
limited to not more than $500,000 in one
locality during any fiscal year.
Project Scope
A -project planned and funded under
Section 14 will provide construction, repair,
restoraton, or modification of emergency
streambank or shoreline protection works.
Each project must constitute a complete
solution to the problem involved and not
commit the Federal Government to
additional improvements to ensure effective
operation.
1
How to Obtain Assistance Under
Section 14
A written request for assistance must be
submitted to the District Engineer by a local
sponsor (see sample letter). Upon receipt
of a request, the District Engineer will take
the necessary steps to initiate a study.
• Determining Federal Interest and
Project Feasibility
A project is adopted for construction under
Section 14 authority only after investigation
clearly shows the engineering feasibility,
environmental acceptability, and economic
justification for the project. A feasibility
study Is conducted at 100 percent Federal
expense and consists of all work required
to determine whether there is Federal
terest in further participation in project
.,onstruction.
The feasibiity report will evaluate
alternatives, select one, and develop
project design data. The report will have
sufficient detail to assure the contemplated
project will meet functional requirements,
conform with sound principles of
engineering design, be _economically
justified, and be environmentally
acceptable. The impact of the project on
the environment will be documented in an
Environmental Assessment (EA).
Preparation of the feasibility report and the
EA generally requires 1 to 4 months. The
decision to approve and construct a
project under Section 14 is based on
information contained in the feasibility
report. During the study period the District
will prepare, with the local sponsor, a draft
Local Cooperation Agreement (LCA) which
defines the obligations of the Federal
Government and the local sponsor in the
construction, maintenance, and cost
sharing of the project.
Upon approval of the feasibility report, EA
and draft LCA by the Seattle District's
higher authority Division office, the
documents are forwarded to Headquarters,
U.S. Army Corps of Engineers (HQUSACE)
for approval. HQUSACE verifies the
analyses, reviews the draft LCA, considers
all comments received conceming the
proposed project, and, if acceptable on all
counts, approves funding for the District to
develop plans and specifications for the
project
When plans and specifications for the
project are sufficiently complete, the District
requests final project approval and -
construction funding from HQUSACE.- After
the Assistant Secretary of the Army for.Clvli
Works has agreed to include the project in
the Civil Works construction program, the
LCA Is signed by the local sponsor and the
District Engineer. Construction funding can
then be provided.
E3
Cost Sharing
Costs for emergency steambank and
shoreline protection projects are shared
between the Federal Government and a
non -Federal Government unit, the local
sponsor, in accordance with the Water
Resources Development Act of 1986
(Public Law 99-662). The local sponsor
(such as a city, county, or State) must be
empowered under State law to provide
local cooperation.
The local sponsor Is required to:
a- contribute a minimum of 5 percent of
the total project cost in cash;
b. provide all lands, easements,
rights -of -way, and relocations;
c. provide any additional cash
contributions needed to make the local
sponsor's share of the project costs 25
percent; and
d. assume the full responsibility for all
project costs above the Federal
Government cost limit of $500,000.
Local Cooperation
Formal assurance of local cooperation
must be furnished to the Corps of
Engineers by the local sponsor. The local
sponsor must be fully authorized under
State laws to give such assurances and
financially capable of fulfilling all items of
local cooperation. Examples of items of
local cooperation which local sponsors
must furnish include:
a. hold and save the United States free
from claims for damages which may
result from construction and
subsequent maintenance of the project,
except damages due to fault or
negligence of the United States or its
contractors;
b. provide all access routes and
relocations of utilities necessary for
project construction and subsequent
operation and maintenance;
c. assure maintenance and repair of the
works during the useful life of the
project; and
d. comply with the provisions of the
"Uniform Relocation Assistance and
Rea! Property Acquisition Policies Act of
1970," Public Law 91-646, as amended;
Section 601 of Title VI of the Civil Rights
Act of 1964," Public Law 88-352;
Department of Defense Directive
5500.11 issued pursuant to and
published in Part 300 of Title 32, Code
of Federal Regulations; as well as Army
Regulation 600-7, "Nondiscrimination on
the Basis of Handicap In Programs and
Activities Assisted or Conducted by the
Department of the Army," in carrying
out the specified non -Federal
responsibilities of the project.
4- 1 5
Sample Letter
District Engineer
U.S. Army Engineer District, Alaska
ATTN: Plan Formulation Section
Post Office Box 898
Anchorage, Alaska 99506-0898
Dear 5i r:
This letter is to seek the assistance of the
U.S. Army Corps of Engineers under
Section 14 of the 1946 Flood Control Act;
as amended, in reducing the threat of
damages along (name of river, creep or
body of water) in the vicinity of (city or
town, county, State).
(Briefly describe your perception of the
nature and severity of the problem.)
(Briefly describe the known issues which
would affect the 8cceptablfity of any
recommended solutions, from the
perspective of municipal and local
governments, and/or the public)
Your consideration of the request would be
appreciated. Please contact (name,
address, telephone) for further
coordination.
Sincerely,
hto4'
)2
1
CT
y
CQ
Q .
Varies I P��
75% or Less
100% 100% Federal
Fedeml Federal 25% ar More
leisZIA. Non Fedend
100%
Non -
Federal
05-26-1994 12:33PM FROM Int'1 Steel Erectors TO
2833014
i
CONSENT TO ASSIGNMENT
of Groundlease for Security Purposes
The City of Kenai, Lessor in an Agreement dated June 19. 1980, and recorded at
ok 158, Page 198, covering the following described property:
Lots Seven (7) and Eight (8) Block One (I), according to the Plat of FBO SUBDIVISION, filed
under Plat No. 78-225, in the Kenai Recording District, Third Judicial District, State of Alaska.
by and through its City Manager, hereby consents to the assignment of right, title, and
interest of the Lessee in the above referenced agreements, for security purposes, to
National Bank of Alaska.
This consent is given by the City of Kenai without waiving any right or action, or
releasing the Assignor from any liability or responsibility: under the aforementioned
Leases, and does not relieve the Assignee from the condition requiring City approval for
any subsequent sublease or assignment.
Date this _—__ day of _______________ _, 1994.
City of Kenai
X---------- - ----------------
By:
Its:
STATE OF ALASKA )
)ss:
THIRDJUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ________day of -- ----- 1994, before me, the
undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn as
such, personally appeared --------------- known to me and to me known to be
the of the -----------__, and he acknowledged to me that he
executed the foregoing instrument freely and voluntarily on behalf of the __ for the
uses and purposes therein set forth and that he Is authorized by said ----- ------- so to do.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, the date
and year first written above.
-------- --------------------------------
Notary Public in and For Alaska
My Commission Expires: ---- ____-
TOTAL P.02
05-27-1994 08:06AM FROM Int'l Steel Erectors TO
2833014 P.02
ob NCA skt,-�
THIS AG , made this day of May, 1994, between Blue Mountain
Ventures. Inc. ("Assignor") whose address is P.O. Box 92890, Anchorage. Alaska 99509,
and National Bank of Alaska. a National Banking Association whose address is P.O. Box
100600, Anchorage Alaska 99510-0600 ("Assignee")
WITNESSETH:
WHEREAS the Assignor as owner of the premises situated at 427 North Willow Street.
Kenai. Alaska 99611 and more particularly described as:
Lots Seven (7) and Eight (8) Block One (I), according to the Plat of FBO
SUBDIVISION, filed under PIat No. 78-225, in the Kenai Recording District,
Third Judicial District, State of Alaska.
and described in that certain Deed of Trust, hereinafter referred to as the mortgage, executed
by Blue Mountain Ventures. Inc. dated May , 1994 and recorded May , 1994 in
Book , at Page ; in the Records of the Kenai Recording District, Third
Judicial District, State of Alaska, in the amount of Two Hundred Thousand and No/100ths-
Dollars ($200,000.00) with interest, made by said Assignor to the Assignee, and secured by
said mortgage.
AND WHEREAS the said premises or portions thereof, as by reference to the lease or leases
hereinafter mentioned will appear, has been leased as follows:
Fie eral ExDEM Corporation, recorded as per memorandum of lease dated May
19941, recorded May , 1994 in Book and at Page in the Kenai Recording
District, Third Judicial District, State of Alaska.
2. Federal Aviation Admiinistration, recorded as per memorandum of lease dated May ,
1994, recorded May , 1994 in Book and at Page in the Kenai Recording
District, Third Judicial District, State of Alaska.
NOW THEREFORE, in order to induce the Assignee to make said loan and as additional
security for the payment of the principal and interest due on said note and for the performance
and observance of all the terms of said note and mortgage, the aforesaid Assignor does hereby
assign and transfer to the said Assignee said lease or leases together with all the right, title and
interest of the Assignor, as landlord, in said lease or leases and any renewals thereof, if any,
therein contained;
TO HAVE AND TO HOLD the same unto the Assignee as additional security for the payment
of the principal and interest provide to be paid in said note and for the performance and
observance of all the terms of said note and mortgage;
AND the Assignor hereby covenants and agrees as follows:
THAT the terms of the aforesaid lease or leases, that are for a term of more than five (5) years
or covers an area of 9,200 square feet or more individually will not be altered, modified or
changed, nor will said lease or leases be surrendered or canceled, nor will any proceedings for
the dispossession or eviction of any tenant under said lease or leases be instituted, without the
prior written consent of the Assignee;
THAT no request will be made of any tenant to pay any rent, and no rent will be accepted, in
advance of the dates upon which such rent becomes due and payable under the terms of said
lease or leases, it being agreed between the landlord and the tenant or tenants that rent shall be
paid as provided in said lease or leases, and not otherwise:;
05-27-1994 09:07AM FROM Int'l Steel Erectors TO 2933014 P.03
THIS Assignment is for security purposes only. All rents shall be paid to Assignor until notice
by Assignee is given to Tenant.
THAT, unless and until there is a default in the performance or observance of any of the terms
of said note or mortgage, which said default continues beyond the grace periods, if any,
provided in said note and mortgage, the Assignor is entitled to collect and retain the rents
under said lease or leases and shall have the right to enforce the collection thereof by any
appropriate action or proceeding brought in the name of the Assignor;
THAT upon default under the terms of said note or mortgage or of this agreement or at any
time after such default, the Assignee, its successors or assigns, at its or their option and
without further consent thereto by the Assignor or any subsequent owner of said premises,
may collect the rents and profits thereof, may enter in and upon said mortgaged premises, and
take possession thereof and may do every act and thing that such Assignor or any subsequent
owner of said premises might or could do; and that upon curing all such defaults, the
Assignor, its successors or assigns, shall again be entitled to collect and retain the rents under
said lease or leases;
THAT upon payment of said note in accordance with its terms and compliance with all of the
terms of said mortgage, this assignment shall be rendered null and void and the said lease or
leases shall be reassigned to the then owner in fee of said premises or to such person or
persons as said owner may direct by written notice;
THAT the Assignee shall not be responsible for the control, care or management of said
premises, or for carrying out any of the terms and conditions of said lease or leases, or for any
waste committed or permitted on the premises by any tenant, and the Assignee shall not be
liable by reason of any dangerous or defective condition of the premise resulting in loss or
injury to any tenant or other person.
IN WITNESS WHEREOF, this agreement is duly executed the day and year first above
written.
e Mountain Ven
X
By: Edward M. Brown
Its: President
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of May, 1994, before me the undersigned, a
Notary Public in and for the State of Alaska, duly commissioned and sworn as such,
persona ly appeared Edward M. Brown known to me to be the President of Blue Ventures.
jar.. described in the foregoing instrument, and they acknowledged to me that they executed
the same freely and voluntarily for the uses and purposes therein mentioned on behalf of said
entity.
Witness my hand and official seal the day and year last herein above written.
Notary Public in and for STATE OF ALASKA
My Commission Expires:
05-27-1994 09:09AM FROM Int'1 Steel Erectors TO 2933014 P.04
COLLATERAL ASSIGNMENT OF
PURCHASER'S INTEREST AS TENANT IN
GROUNDLEASE
Blue Mountain Ventures, Inc. of P.O. Box 92890, Anchorage, Alaska 99SO9 (Purchaser) is borrowing
the sum of TWO HUNDRED THOUSAND AND NO/TOOTH DOLLARS ($200,000.00) from the NATIONAL B 'K
OF AiASKA. a national banking association, with its principal offices in Anchorage, Alaska (Bank). Such, .n
is to be secured by a Deed of Trust, Security Agreement, Loan Agreement and related instruments relating
to a new building and related improvements situated upon a site in the general vicinity of 427 North Willow
Street, in Kenai, Alaska.
NOW, THEREFORE, in consideration of the making of such $200,000.00 loan by Bank to Purchaser, as
evidenced by a Note dated of even date herewith, and as an inducement to Bank to make such $200,000.00
loan, Purchaser hereby grants, assigns transfers and sets over unto Bank as assignee, its successors and
assigns, all of Purchaser's interest(s) or right(s) as Tenant in and to that certain Lease Agreement
(Groundlease) dated June 19, 1980, between City of Kenai as Lessor and Edward M. Brown, as Tenant. all
Tenants rights under described groundlease were assigned to Blue Mountain Ventures, Inc through
amendment date July 1, 1981 and recorded July 17, 1981, in Book 173 at Page 799, covering real property
more particularly described as follows:
Lots Seven (7) and Eight (8) Block One (1), according to the Plat of FRO SUBDIVISION, filed under Plat
No. 78-225, in the Kenai Recording District, Third Judicial District, State of Alaska.
and all renewals or extensions thereof, and all of Purchaser's rights as Tenant thereunder.
1. In accepting this assignment, the Bank assumes no liability for the performance of any of
the duties or obligations of the Purchaser as Tenant under said groundlease.
2. From time to time as the Bank may require. Purchaser will execute and deliver such
further assignments, or other instruments as Bank may request, for better confirming or securing to Bank
its rights under the above -described groundlease and any renewals or extensions thereof.
3. This transfer and assignment is made as collateral security for the payment of the Note
and the performance of all terms, covenants and conditions of the Deed of Trust, Security Agreement, Loan
Agreement and related instrument (Security Instruments).
PURCHASER AGREES:
1.. The Purchaser will not modify or in any way alter the terms of any such groundlease.
Z. At the Purchaser's sole cost and expense, the Purchaser will appear in and defend any
action growing out of or in any manner connected with the groundlease or the obligations or liabilities of
the Tenant thereunder.
3. Should the Purchaser fail to make any payment or to do any act as herein provided, then
the Bank. but without obligation so to do, and without notice to or demand on the Purchaser, and without
releasing the Purchaser from any obligation herein, may make or do the same, including specifically,
without limiting its general powers, appearing in and defending any action purporting to affect the security
hereof, or the rights or powers of the Bank. and performing any obligation of the Tenant contained in the
groundlease, and in exercising any such powers, paying necessary costs and expenses, employing counsel,
and incurring and paying reasonable attorney's fees; and the Borrower will pay immediately upon demand
all sums expended by the Bank under the authority hereof, together with interest thereon at the rate
specified in the Assumption Agreement of even date herewith, and the same shall be added to said
indebtedness and shall be secured hereby and by the Security Instruments.
4. After any default by the Purchaser, in the payment of said indebtedness, or in the
performance of any obligation of the Purchaser hereunder. or in the Deed of Trust or any other instrument
securing said ludebtedness, the Bank, at its option, without notice, and without regard to the adequacy of
security for the indebtedness hereby secured, either in person or by agent, with or without bringing any
action or proceeding. or by a receiver to be appointed by a court, may (but in no event shall be obligated to)
take possession of the leased premises, and do any acts which the Bank deems proper to protect the
security hereof until all indebtedness secured hereby is paid in full.
S� (a) The Purchaser has not, except as herein expressly mentioned, executed any prior
assignment of any of its rights as Tenant under the groundlease; (b) the Purchaser has not done anything
which might prevent the Bank from or limit the Bank in operating under any of the provisions hereof; and
(c) the subject groundlease is in full force and effect.
6. The Bank does not assume, and shall not be obligated to perform or discharge any
obligation under the groundlease, or under or by reason of this assignment, and the Purchaser hereby
agrees to indemnify the Bank against and hold it harmless from any and all liability, loss or damage which
it may or might incur under the groundlease, or under or by reason of this assignment, and of and fr i
any and all claims and demands whatsoever which may be asserted against it by reason of any alley, .4
obligation or undertakings on its part to perform or discharge such liability, loss or damage under the
groundlease, or under or by reason of this assignment, or in defense against any such claims or demands.
The amount thereof, including costs, expenses and reasonable attorney's fees, together with interest
thereon at the rate specified in the Assumption Agreement of even date herewith, shall be secured hereby
and by the Deed of Trust and the assignor shall reimburse the assignee therefor immediately upon
demand.
05-27-1994 08:09AM FROM Int'l Steel Erectors TO 2833014 P.05
7. This assignment shall inure to the benefit of the successors and assigns of the Bank and
be binding upon the legal representatives, heirs, devisees, successors and assigns of the Purchaser.
IN WITNESS WHEREOF, the Purchaser has duly executed the COLLATERAL ASSIGNMENT this e
day of May 1994.
oLue Mountain Ventures, Inc.
----------------------------
By: Edward M. Brown
Its: President
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this _____ day of _ 1994. before me, the undersigned, a
Notary Public in and for the State of Alaska, personally appeared Edward M. Brown to me known to be the
person described in and who executed the within and foregoing instrument, and acknowledged to me that
he signed and sealed the said instrument as President of Blue Mountain Ventures, Inc., as his free and
voluntary act and deed for the uses and purposes therein mentioned.
WITNESS my hand and Notarial Seal on the day and year in this certificate first above written.
Notary Public in and for Alaska
My Commission expires:_________
Upon Recordigg Please Return To:
National Bank of Alaska
Commercial Real Estate
301 West Northern Lights Blvd.
Anchorage, AlAska 99503
Attn: Melanie Smith
TOTAL P.05
MEMORANDUM
TO: Tom Manninen, City Manager
FROM: Keith Kornelis, Public Works Director
DATE: May 27, 1994
SUBJECT: Dock Lease of Station No 3
FOR: City Council Meet i nq of June 1, 1994
As you know, Public Works bid the lease of dock station no 3 on April 14, 1994
but did not receive any bids. After the council reviewed the attached letter I
sent it to the fish processors. So far I have received the following proposals:
May 9, 1994
May 16, 1994
May 19, 1994
May 27, 1994
Whitney Foods
F i shhaw k
R & J Seaf oods
Snug Harbor
May 27, 1994 F i shhaw k
May 27, 1994 R & J Seafoods
$ 4,000
6, 000
7, 500
Both Stations at $20,500
They presently lease No 2 for $15,000
8,300
8,500 (verbal over phone)
,4 -g
Since I have just received the last three proposals around noon today I will wait
to make a recommendation until the council meeting. I will talk it over with
Swede Freden our dock manager and give the council a recommendation at the
meeting. I also think the city should raise the product wharfage to $0.10 or
$0.12 per pound.
CITY OF KENAI
it Od eC41*.24;14Cdq Maj*46 it
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-77
TELEPHONE 907-283-7535
FAX 907-283-3014 bdbd
ww...aan
IIIf�I
1991
May 5, 1994
To: All Fish Processors
From: Keith Kornelis, Public Works Director
Subject: Kenai Dock Lease Station No. 3
The City of Kenai did not receive a bid for the lease Of Station No. 3 at the city dock.
am not sure why. Maybe the $12,000 minimum bid was too high for this season.
I think we have a great facility and it is getting better. We have made a major
improvement in rebuilding the floats between the launch ramps and will also be improving
the other floats. We have budgeted for anew ramp from the concrete dock to the floating
dock. We are also looking at other improvements.
If there are any problems that we can deal with, please let us know. We are always
looking for ways to improve and make the facility more desirable.
For your information, the city is considering closing Station No. 3 and/or the city's Station
No. 1 completely. We may not even have these cranes or the scales certified this year.
If we keep the city's station open, there may be a large increase in costs for poundage
taken over our station to help with the operating costs.
Any information or suggestions that might help the city's public boating facility would be
welcome. I would like to see this operation, which is a self supporting city enterprise
fund, continue to be a usable operation.
The city would be willing to consider any proposal you might have for leasing Station No.
3 at the dock. Please send any proposal to me at the above address.
Kei6 Korn elis, Public Works Director
KK/kw
CITY OF KENAI - DOCK RATE SCHEDULE
Tom Manninen, City Manager
MAY 18, 1994
KENAI HARBOR RATE SCHEDULE
The City Manager shall establish the fees, rates, and charges for the billing and
collections for the support of the harbor. The City Manager reserves the right to change
the rate schedule at any time. 0�
RATE SCHEDULE SUMMARY
tD
1) Product wharfage (w/crane; w/o fork lift) $ 0.06/Ib� Ne
Non -product wharfage (ice, nets, staples, etc.) ..................... 0.03/lb-417
Purchases Purchases
Under 500 500 Gal.
Gallons or more
2) Fuel -Gasoline ........................... Regular . 1.016 0.966
Federal Tax 0.184 0.184
State Marine Tax. .050 .050
Total $/Gal.. 1.250 1.200
-Diesel .. . . now . . . . . . . . . . . . *eases ease . . . . #2 . 0.916 0.876
Federal Tax 0.244 0.244
State Marine Tax . .050 .050
Total $/Gal.. 1.210 1.170
3) Septic tank dumping: A) 0-50 gal = ........................ 5.00
B) 51-100 gal= ....................... 10.00
C) 100 gal + = ..................... 0.10/gal.
4) Boat Launch Ramp ................................ 0-10 min. = $5.00
Each minute over 10 minutes = $1.00/min.
Seasonal pass per boat = $50.00/yr.
5) Tie Up Fee: A. Skiffs tied to land side of concrete dock .......... 1.00/day ieP
B. Boats tied to buoy in river .................... 5.00/day0o
6) Fork Lift w/Operator (1/2 hr. minimum) ........................ 50.00/Hr.
7) Equipment rental - Hot Pressure Washer ........................ 40.00/hr.
8) Equipment rental - Battery Charger/Starter ...................... 12.00/hr.
9) City Labor Charges (for call out, 2 hr. min) ...................... 30.00/h r.
10) Other items ........................... See Dock Manager Prior To Use
/10
WHITNEY FOODS
A DIVISION OF KYOKUYO U.S.A., INC.
5/6/94
City of Kenai
210 Fidalgo Ave
Kenai, AK 99611
Attn: Keith Kornelis
Dear- Keith,
0��°8� 8 9 707,
��� A
HAY 1994
01
thpukj: nt
nil
•r
91?
S�bZ��
In light of the weak projections for the 1994 commercial salmon harvest in Central
Cook Inlet, Whitney Foods would like to submit a bid for Station #3 on the Kenai
City Dock.
We would like to extend our appreciation for the fine job that Swede and Paul
have always done to make sure the dock is ship-shape. We hope that the city
continues to offer the facility to both the public and industry for many years to
come.
Sincerely,
?ad —
Joe Burt
Manager
Whitney Foods
P.O. Box 190429
Anchorage, AK 99519-0429
'? _.�( yo 0 0
(:$ yoo10
WHITNEY FOODS 100 WEST HARRISON PLAZA SOUTH TOWER, SEATTLE. WASHINGTON 98119 TELEPHONE (206) 281-1262 TELEFAX (206) 281-1255 TELEX 152043
P.O. BOX 19-0429, ANCHORAGE, ALASKA 99519-0429 TELEPHONE (907) 243-3311 TELEFAX (907) 248-0276
F.O. Box 715
Foot of 4th
Astoria, Oregon 97103
FISHHAWK FISHERIES
ASTORIA,OR N
�yo
CO
P1 �Y 1994
May 16, 1994
tS� �•�� � r;� Yr.r�gj
To: Keith Kornelis,
from: Steve Fick
Astoria 503-325-5252
Fax: 503-325-8786
KENAI, AK
c�N
L9
W
U
w
Works Director
Subject: Kenai Dock Lease Station No. 3
On May 12, 1994, we received a letter from you
asking for proposals to lease Station No. 3 at
the dock.
Fishhawk Fisheries of Alaska, Inc. would like to
continue leasing Station # 3 for the summer of
1994. Because of an expected poor sockeye return
our proposal is $ 6,000.00 and 1.50 per pound in
excess of 300,000 pounds delivered over -the dock.
Thank you for you consideration on this matter.
Sincer
Y;
Ste e-- Fick
President, Fishhawk Fisheries of Alaska, Inc.
SEF/cw
//V
Received
nor pu���c ��s oov� �ti
KENAI BOATING FACILITY
CITY OF KENAI PUBLIC WORKS DEPARTMENT
.. 210 FIDALGO AVENUE; SUITE 200,11
KENAI, ALASKA J 99611-7794
(907) 283-7535
PROPOSAL
LEASE OF STATION. NO. 3
Boat Dock, Parking Area, Office, and Crane
PLEASE PRINT THE FOLLOWING
Business Name of Bidder - /--
d/b/a (if applicable)
Submitted by
rv,UY M P l �
Title Iliee,
Business Mailing Address � � /�/ `✓�`l /4
P. Box 16 kle4 stLaF- A 0
Telephone No. 161D z �L0 7
Fax No. %�=-Z�✓�.5
%�r0/,-Iv,s ez,�
B -
Lease of Station No. 3 .......April 14, 1994
Ib-ml
41*0
-310 PROPOSAL
KENAI BOATING FACILITY
LEASE OF STATION NO. 3
BOAT DOCK, PARKING AREA, OFFICE, AND CRANE
Date:
City of Kenai
210 Fidalgo Avenue, Suite 200
Kenai, Alaska 99611-7794
Gentlemen:
The undersigned (person, partnership, joint venture, corporation), hereinafter called the
Bidder, hereby offers to enter into a Lease Agreement for Station No. 3 at the Kenai
Boating Facility, consisting of the right to use a dock area, parking area, office and crane,
covering certain non-exclusive rights and privileges at the Kenai Boating Facility. In
connection with this offer the bidder offers to pay the following rent for the period of time
from May 15, 1994 to October 1, 1994.
d
1. Dollars 00.
Minimum Basic Bid Writfen in Words Minimum Basic Bid
(This amount can not be less than $12,000) in numbers
2. Amount paid per pound for loading or unloading fish over the dock is:
$ /LB with the above minimum basic bid used as payment until that
amount is used up. $ _ + $ /Ib. = lbs.
(min. basic bid) (price per lb.) Total lbs. covered
by min. basic bid
3. Total estimated poundage bidder anticipates they will unload over the dock at this
station during this lease period:
pounds ,
D-2
9&1�qg
'Warbar V2728
City of Kenai
210 Fidalgo
Kenai, Ak. 99611
_MAY 19 � 94
N
c� Received w
City of Kenai
Public Works Dept �
To: Kenai City Mayor
£tZt����6
City Council Members
Re: Snug Harbor Seafoods dock lease
May 26, 1994
In February of 1994, Snug Harbor Seafoods asked for an extension of the
dock lease at $15,000 for the 1994 season. At this time we believed the city
would lease the other station for at least $12,000 as indicated in the
invitation to lease package sent to us and other processors. As the bid date
came and passed, it became apparent that the city was considering bids for
station #3 at less the $12,000, or possibly leasing it to a combination of
companies to make up a $12,000 total commitment. Either of these
situations would place SHS at a competitive disadvantage in a very tight and
uncertain salmon market.
At this point, SHS offers to lease buying station #2 at $15,000 minimum
payment and $.0375/lb. for wharfage in excess of 400,000#, but we would
ask that the lease dollar amount be relieved by whatever percentage buying
station #3 is leased under $121,000/year, and the reduction be based on 1 /2
the total lease amount if two companies participate, or 1 /3 if three
companies participate.
Alternatively, it may be in our best interests to lease both stations, therefore
we make a second and preferred offer to lease both stations for a combined
rate of $20,500/year and wharfage in excess of 800,000# at
g
Snug Harbor Seafoods, Inc. - P O Box 701 - Kenai, Alaska 99611 !O
Telephone (907) 776-5342 - Fax (907) 776-5471
gu
cWHarrbar
$.0375/lb. We think this combined offer yields more to the city of Kenai
than our individual offer and the current offers on station #3. If this is not the
case, we would be willing to negotiate an increase in the value of a
combined lease.
We hope you appreciate our circumstances, and consider these offers fair
and reasonable.
inert,
Paul Dale
q110
Snug Harbor Seafoods, Inc. • P O Box 701 • Kenai, Alaska 99611
Telephone (907) 776-5342 9 Fax (907) 776-5471
�L . . _. G I / �)-+ , , i11HWK h i �DHLK I ES, I H�-. 503 325 6766
i-HGE 01
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City of Kenai cn
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KENAI, AK
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KENAI PENINSULA BOROUGH
144 N. BINKLEY SOLDOTNA, ALASKA 99669-7599
BUSINESS (907) 262-4441 FAX (907) 262-1892
May 24, 1994
Kenai City Council
210 Fidalgo, Suite 200
Kenai, Alaska 99611
Dear City Council Members:
DON GILMAN
MAYOR
RE: Petition to vacate a portion of the thirty foot wide public right-of-way known as Riverview
Avenue, bounded on north by Lots 6, 7 and portion of Lot 8, Block 18; bounded on south
by Lots 3, 4 and a portion of Lot 5, Block 19, Original Townsite of Kenai (U. S. Survey 2970
A & B); within Section 5, Township 5 North, Range 11 West, Seward Meridian, Kenai
Recording District, Alaska; KPB File 94-046
In accordancewith AS 29.40.140, no vacation of a city right-of-way and/or easement may be made
without the consent of the city council. This vacation was approved by the Planning Commission at
their regularly scheduled May 23, 1994 meeting and is being sent to you for your consideration and
action.
The City Council has 30 days from May 23, 1994 in which to veto the decision of the Planning
Commission. If no veto is received by the Commission within the 30 day period, the decision of the
Commission will stand.
A roll call vote was taken with all commissioners present voting yes. Attached are draft minutes and
other related materials for your information.
Sincerely,
Richard P. Troeger
Planning Director
RPT:mes
Attachments
cc: Clarence Ladd
AGENDA ITEM E. PUBLIC HEARINGS
Petition to vacate a portion of the thirty foot wide public right-of-way known as Riverview
Avenue, bounded on north by Lots 6, 7 and portion of Lot 8, Block 18; bounded on south by
Lots 3, 4 and a portion of Lot 5, Block 19, Original Townsite of Kenai (U.S. Survey 2970 A &
B); within Section 5, Township 5 North, Range 11 West, Seward Meridian, Kenai Recording
District, Alaska.
KPB File 94-046
Staff report as read by Dick Troeger.
Petitioner(s): Clarence Ladd of Kenai, Alaska.
PC Meeting 5/23/94
Purpose as stated in petition: Due to bluff erosion, Riverview Drive does not exist past Lot 2 & 3, Block
19.
Public notice appeared in the May 12 and 19, 1994 issues of the Peninsula Clarion.
Nineteen certified mailings were sent to owners of property within a 300 foot radius and to other
interested parties. Seventeen of the receipts have been returned. One mailing was returned due to an
incorrect address. This notification was remailed.
A statement of nonobjection was received from Homer Electric Association.
No statements of objection were received.
Findings of Fact
1. Sufficient rights -of -way have been dedicated to surrounding properties.
2. No surrounding properties will be denied access or utilities.
3. Per petition the right-of-way has not been fully or partially constructed and is not in use for
access.
The preliminary plat showing the proposed vacation is scheduled for Commission review and action May
23, 1994.
STAFF RECOMMENDATIONS: Approve vacation of the portion of Riverview Avenue as petitioned,
subject to the following conditions:
1. Submittal of the final plat within one year of vacation approval.
2. The City Council of the City of Kenai has thirty days in which they may veto Planning
Commission approval of the vacation.
NOTE: If vacation is denied, the petitioner has eight calendar days in which to appeal the
Planning Commission denial. Written appeal must be submitted to the Kenai City Clerk.
Mr. Troeger pointed out the area petitioned for vacation on the posted map.
KPB PLANNING COMMISSION MAY 23, 1994 MEETING UNAPPROVED MINUTES PAGE 13
END OF STAFF REPORT
Vice Chairman Bryson opened the public hearing for comment.
Cliff Baker, surveyor, said he was representing the petitioner and would answer questions. No questions
were heard.
Seeing and hearing no one else wishing to speak, Vice Chairman Bryson closed the public comment and
opened discussion among the Commissioners.
MOTION: Commissioner Clutts moved, seconded by Commissioner Carpenter, to approve vacation of
the portion of Riverview Avenue as petitioned, subject to staff recommendations.
Commissioner Coleman asked if the Kenai Planning and Zoning Commission had ruled on the vacation.
Vice Chairman Bryson replied yes, and they concurred with the proposed vacation.
VOTE: The motion passed by unanimous consent.
HAMMELMAN
BRYSON
WHITMORE-PAINTER
CARPENTER
CLUTTS
COLEMAN
ABSENT
YES
YES
YES
YES
YES
GANNAWAY
HENSLEY
HORNE
KNOCK
MUMMA
EIGHT YES
ABSENT
YES
YES
YES
ABSENT
THREE ABSENT
KPB PLANNING COMMISSION MAY 23, 1994 MEETING PAGE 14
UNAPPROVED MINUTES
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Jack La Shot - reported that this plat will take three government lots and split
into smaller lots. The only problem he had was with some of the utilities and the
owner`s son had cleared that issue up.
VOTE:
Bryson
Goecke
Pierce
Werner-Quade
McComsey
Glick
Walker
YES
YES
GONE
YES
YES
GONE
YES
MOTION PASSED UNANIMOUSLY.
b. Vacation ROW: Riverview - TSH Zone
Chairman Walker introduced the item and asked if their was anyone in the public who
wished to comment. Clarence Ladd asked what TSH stood for? It was then
determined that the property was actually in the Central Commercial Zone not TSH.
Walker asked for a staff report.
Jack La Shot reported that the preliminary plat had been approved at the previous
meeting. This is an attempt to make four lots out of several smaller lots, on that
previously reviewed plat there was a note that said the ROW being vacated this plat,
this is the actual process for that vacation. La Shot had commented when the plat
was reviewed that the City should retain a utility easement, 15 feet of either side of
the southerly lot line, Lot 6 A. He believed that there may be utilities in there now and
if not there may be a future need to bring utilities through that easement.
MOTION:
RON GOECKE-MOVED APPROVAL OF THE VACATION OF ROW ON RIVERVIEW.
PHIL-BRYSON SECONDED:
AMENDED MOTION:
GOECKE ASKED TO MAKE AN AMENDMENT TO THE MOTION TO RETAIN THE--
30 FOOT UTILITY EASEMENT AS SUGGESTED BY STAFF. BRYSON
CONCURRED.
Chairman Walker asked if anyone in the audience wished to address the amended..
motion which included the staff recommendation to retain the 30 foot utility easement?
Kenai Planning and Zoning Commission
May 11, 1994
Page 2
Clarence Ladd, owner of the property, stated that the surveyor was taking care of this
ti item for him, but he had no problem with retaining a 30 ft utility easement.
Walker brought the item back for Commission action.
VOTE -AMENDED MOTION:
Bryson
Goecke
Pierce
Werner-Quade
McComsey
Glick
Walker
YES
YES
GONE
YES
YES
GONE
YES
MOTION PASSED UNANIMOUSLY.
Chairman Walker asked if there were any comments from the public on the main
motion? Hearing and seeing none, he brought it back to the Commission for
discussion.
Bryson said he just wanted to reconfirm statements that were discussed at the
previous meeting to include that all lots have ROW frontage.
VOTE -MAIN MOTION:
Bryson
Goecke
Pierce
Werner-Quade
McComsey
Glick
[Wtalke:r
YES
YES
GONE
YES
YES
GONE
S
5. PUBLIC HEARINGS
6. NEW BUSINESS
a. Re -review Development in TSH Zone: Beluga Lookout RV Park
Chairman Walker introduced the item and asked the pleasure of the Commission?
MOTION:
TERESA WERNER-QUADE MOVED FOR RE -REVIEW OF DEVELOPMENT IN TSH
ZONE FOR BELUGA LOOKOUT RV PARK. LORI MCCOMSEY SECONDED.
Chairman Walker asked for discussion on the motion which was just to re -review the
development not to approve the development as resubmitted.
Kenai Planning and Zoning Commission
May 11, 1994
Page 3
05-31-1994 10:56RM FROM KPH MAYOR'S OFFICE TO
6263301
KENAI PENINSULA BOROU
Mayor's Office
144 North Binkley, Soldotna, Alaska 99669-75w�
Y--
Facsimile Transmission
May 31, 1994
Attention:
Mayor John Williams
Company:
City of Kenai
Telephone #:
283-7539
Fax #:
283-3014
Subject:
Kenai River Classic
Sender: Bonnie Golden, Administrative Assistant to Mayor'
Sender Telephone #: (907) 262-5515 or 1-800-478-4441, ext. 203
Sender Fax #: (907) 262-8616
You should receive 3 pages, including this cover sheet. If you do not
receive all the pages, please call the number above.
COMMENTS:
The only agenda I have for the Senators is that shown on the Fact Sheet (copy
attached). The community reception (not dinner as stated on Fact Sheet) will be July
8th from 6 p.m. to about 8:30 at the Central Peninsula Sports Center. We tried to have
it at the Bicentennial Center and Kenai Senior Center, but neither one was available.
As you know, the Classic is a fundraiser for HabPro; therefore, we will be selling tickets
to attend the reception. The Senators and sponsors will be guests; everyone else will
be expected to buy a ticket. Proceeds will go to HabPro. HabPro's primary goal is the
protection and improvement of salmon habitat of the Kenai River.
At this time I do not have the exact costs for the reception. If all three municipalities
appropriate $2,000 (less than the cost of a trip to D.C.) for the reception, we should
have sufficient funding. Funds from the Borough and the Cities of Kenai and Soldotna
will be applied only to direct costs of the reception - food, service personnel,
entertainment, room rental, etc.
Please call me today if you have any questions. I will be out of town tomorrow,
otherwise I would attend the Council meeting to help answer questions. I will be in the
office on Thursday.
SCHEDULE
Wednesday, July 6th - Travel on 6th - Please arrive in Kenai before 3 pm. Major "Kick Off" salmon barbecue at
Penney's log home with cocktails at 5 p.m., dinner and program at 6 p.m. EARLY TO BED. Get up next morning at 4:30
for breakfast and in the boats at 5:45 a.m.
`-rhursday, ,July 7rh - Fish in tournament 6 a.m. to noon- Lunch will be served aboard. Weigh-in and pictures will be
till 1:30 p.m. or so . Seminars and/or sightseeing in the afternoon. There will be a cookout courtesy of Northstar Adven-
TOTAL P.01
05-31-1994 11:00AM FROM KPB MAYOR'S OFFICE TO 82833014 P.02
4-V E R ti . Kenai River Classic
U
W H AN EVVITA7TONAL F SHEVO TO URVAMENT
Fact Sheet
The Classic was created as a fundraiser for HabPro, a 501 (c) (3) division of Kenai River Sportfishing Inc KRSI is a
membership -based organization of sportfishermen and others whose primary goal is a dedication to protection and
improvement of the salmon habitat of the Kenai River. This year's special guests are 10 U.S. Senators plus a guest and 25
sponsors and their guests. Tournament dates are July 6 through the loth with the 6th & 10th as travel days. The Classic
is designed after a PGA golf tournament or similar charitable fund raising event. U.S. Senator Ted Stevens and Borough
Mayor Don Gilman are Honorary Co -Hosts for the Classic.
KENAI and SOLDOTNA
are two communities on the Kenai River, 8 miles apart and 25 minutes by air or 3 hours by road from Anchorage (which
is 3 hours by air from Seattle.) The areas population is approximately 20,000-30,000.
The KENAI RIVER
is a blue-green glacial river -100 yds wide - and averages 4 - 8 ft deep. It's current, of 7 - 10 knots and about 48 degrees,
winds through some of the most beautiful scenery on earth. Fishing season is: May, June, July for King Salmon; July and
August for Red Salmon and August and September for Silver Salmon. It is the largest Salmon sport fishery in the nation.
The Kenai holds more I.G.F-k world records for salmon than any other river in the World. There is also a trophy rainbow
trout season in September and October.
KENAI KINGS
is what the tournament is all about. They are the largest salmon known in U.S. July Kings average 41 pounds. The Classic
-esses catch and release. Anglers will receive a 10% bonus for releasing their catch. But it's also OK for those who want
take a king home or have it mounted. All fishing gear will be provided by professional guides. There will be 4 anglers
per boat. The guide does not fish. They will teach you the techniques of "back trollying," "drifting," or "back bouncing"
with plugs, spoons and/or with salmon roe. You will use level wind reels with 30 pound test line on 8' graphite rods. After
the hook-up it takes an average of 20-40 minutes to land a large King Salmon. Legal bag limit on a Kenai King is one a
day, two a season, but it is OK to catch and release during your entire trip.
When an angler keeps a King, he/she must stop fishing from the boat for the rest of the morning. Fishing will be from
approximately river Mile 3 upstream to River Mile 25. Most fish are caught early morning. Non-resident license required
S 15 plus a King Salmon stamp of $ 15 before fishing. There will be many Tournament prizes. Main prizes - longest fish .
caught and released; largest fish retained and the angler who accumulates the most points during the tournament.
There will be a S50,000 prize if a new large world record King is caught (half will go to the angler and half to HabPro.)
Present world record is from the Kenai, 97.4 pounds.
NOT A WILDERNESS
The Kenai River is on the state's major road system near the states population center. Expect many boats, but mostly
polite fellow fishermen. There is good shopping, nearby hospital, movie theaters, two challenging golf courses, tennis,
hiking, beautiful scenery. There is also rainbow trout or halibut fishing available (extra expense) in Cook Inlet.
WEATHER & CLOTHING
There is about 17 hours daylight (It's great!) Mornings usually are about 40 degrees F. to 65 degrees F. afternoon. There's
a 50/50 chance of cloudy and rainy weather. Bring light rain gear and fall northern U.S. clothing. No dress up except
Saturday night (July 9th) for the "Awards Banquet." We will provide fishing hats. You don't need hip boots etc. in the
boat. Good idea to bring short rubber boots (warm) or like footwear. Be able to "dress down" as the day warms up.
SCHEDULE
Wednesday, July 6th - Travel on 6th - Please arrive in Kenai before 3 pm. Major "Kick Off" salmon barbecue at
Penney's log home with cocktails at 5 p.m., dinner and program at 6 p.m. EARLY TO BED. Get up next morning at 4:30
rn. for breakfast and in the boats at 5:45 a.m.
-rh ursdsy, July 7rh - Fish in tournament 6 a.m. to noon- Lunch will be served aboard. Weigh-in and pictures will be
till 1:30 p.m. or so. Seminars and/or sightseeing in the afternoon. There will be a cookout courtesy of Northstar Adven-
05-31-1994 11:01AM FROM KPB MAYOR'S OFFICE TO 82833014 P.03
cures at the Soldotna B & B at 6 p.m. EARLY TO BED.
Friday, July 8th - Same fishing pattern as Thursday with afternoon seminar and/or sightseeing. At 6 p.m. Friday
welcome dinner by Kenai Peninsula Borough Major Don Gilman and by other entities.
Saturday 9th - Sleep in- Breakfast at 8:30- Pack up and say good-bye until next year to new friends and to "Fishing on
Kenai". Luxury tourcruisers will pick up participants. You'll wind through the beautiful lakes and mountains; stop-
,,..ig off at the Kenai Princess Lodge for lunch and leg stretch. Then on to Portage Glacier and Anchorage. That night
you'll be guests at the Captain Cook Hotel Kenai River Classic "Awards Banquet" (There will be nap/rest time before the
dinner). That night hold onto your hat because there's going to be a show that will knock
your socks off?
Sunday July I Oth - Travel Time back to "lower 48". See you next yearl
HOUSING
Summer housing is at a premium in the Kenai/Soldotna area. Mayor Don Gilman is chairing the "Senators Hospitality" in
Kenai/Soldotna. He is arranging that each Senator plus guest will be a very special guest of community leaders in
Soldotna or Kenai. Each such host will meet the senator at the airport, house them in their home and act as their
individual host. For the sponsors, we have reserved 25 very nice, clean rooms (one room per sponsor) in a B & B and a
Lodge on the Kenai River. (The Soldotna Bed and Breakfast, The Kenai River Lodge and the Riverside House.) These two
places are within 100 yds of tournament headquarters. Everyone can walk to and from fishing etc. Your room assign-
ments will be waiting when you arrive. We have also reserved rooms at the Anchorage WestCoast International Inn near
the Anchorage Airport (one room per sponsor and one room per Senator.) These quaint Alaskan accommodations sit on
the shore of Lake Hood, one of the largest float plane lakes in Alaska. The decor is Alaskan and you'll love the artifacts
throughout the hotel. (The WestCoast's staff we found to be the friendliest in town).
WILDLIFE & SCENERY
You will see American Bald Eagles, Arctic Terns, most likely some moose (maybe swimming the river,) beavers, swallows,
wild ducks, geese and maybe a caribou. Fabulous scenery if you go by roadcruiser from Soldotna to Anchorage on
Saturday.lncluding Kenai Wildlife Refuge, upper Kenai River, Kenai Mountains, Portage Glacier, Alyeska Ski Resort (New
$ 100 million lodge et. al) BRING YOUR CAMERA!
SPONSOR CATAGORIES
Our VIP guests this year will be as many as 10 U. S. Senators. Those of us who are sponsors will help make the Classic a
financial success.
�- A. TOURNAMENT SPONSOR - A donation of S5,000 allows a sponsor and his/her guest to participate in the
fishing tournament, have housing and participate in all events during the Classic. Sponsors and their guests will be
responsible for their own fishing licenses and any other "extra" activities they may wish to do that aren't part of the
planned tournament.
B. EVENT SPONSOR - Each event may have a sponsor to underwrite that functions. In turn, the event will be
recognized as being sponsored by that individual or corporation, such as of "APEX" sponsored the fees for the guides,
then the guides would be referred to all times as "Apex Guides" and all the. guides would wear "Apex Co." jackets etc.
From helping pay for the three piece music band, to providing the roadcruiser, there are lots of opportunities for
company and people to help participate.
C. PRIZE SPONSORS - We need companies etc. who will help by providing prizes to be given out at the dinners
for various categories. They will be recognized for this help at every occasion before, during and after the Classic.
D. BANQUET SPONSOR - We need a dinner sponsor plus many prizes, gifts, vacation stays, services etc. that
can be raffled off at the silent auction at the Banquet at the Captain Cook on July 9th.
The CLASSIC'S THEME
is to see that all our guests have a great time, have El and have the opportunity to catch a world renown Kenai King
Salmon. At the same time, all special guests will be a part of and contribute to a growing environmental effort to protect
the habitat of the world's greatest salmon river. Two of the seminars on Thursday and Friday will be "Alaskan Commer-
cial Fishing, The Magnuson Act, and how important Alaskan Fisheries are to our Nation," by Alaska Department of Fish
& Game Commissioner Carl Rosier and "Our Nation's Rivers Habitats and the Need to Protect Them." If everyone doesn't
say "We had a great time" then we won't have been successful. Our plan is, to have 100% of our guests say "We want to
come back."
CONTACT THE CLASSIC
' (907) 262-8588 or fax us at (907) 262-8582. We are one hour later than Pacific Daylight Savings Time. We will be
,,d to help you in anyway we can. We hope to have special fares to Kenai from the lower 48 for our sponsors. The
Tournament sponsors are on a "first come" basis. We believe they'll be filled quite soon. Please give us a call, come and
meet your own "Kenai King Salmon."
TOTAL P.03
05-24-1994 09:37AM FROM KPB MAYOR'S OFFICE TO
82833014
e NAI PENINSULA BOROUGH-
ML Mayor's Office
y 144 Nor[h Biakley, Soldotoa, Alaska 99669-7599
Facsimile Transmission
May 24, 1994-9:11 am
Attention:
Company:
Telephone #:
Fax #:
Subject:
Mayor John Williams
City of Kenai
283-7539
283-3014
Kenai River Classic
Sender: Bonnie Golden, Administrative Assistant to Mayor -
Sender Telephone #: (907) 262-5515
Sender Fax #: (907) 262-8616
You should receive 4 pages, including this cover sheet. If you do not receive all
the pages, please call the number above.
COMMENTS:
Here is the fact sheet on the Kenai River Classic. It covers the basics, but if you
have any questions after reviewing it and the May 6 Classic update, please call
me.
The nine U.S. Senators who have confirmed their attendance are:
Senator Ted Stevens - Alaska
Senator Kit Bond - Missouri
Senator Malcolm Wallop - Wyoming
Senator Trent Lott - Mississippi
Senator David Pryor - Arkansas
Senator John. Breaux - Louisiana
Senator Pete. Domenici - New Mexico
Senator Dan Nickles - Oklahoma
Senator John Warner - Virginia
05-24-1994 09:38AM FROM KPB MAYOR'S OFFICE TO 82833014 P.02
•`'� Kenai • River Classic
W N AN ATIONAL FISHING TQ L�RN��!VIENT
Fact Sheet
The Classic was created as a fundraiser for HabPro, a 501 (c) (3) division of Kenai River Sportfishing Inc. KRSI is a
membership -based organization of spordishermen and others whose primary goat is a dedication to protection and
improvement of the salmon habitat of the Kenai River. This year's special guests are 10 U.S. Senators plus a guest and 25
sponsors and their guests. Tournament dates are July 6 through the 10th with the 6th & 10th as travel days. The Classic
Is designed after a PGA golf tournament or similar charitable fund raising event. U.S. Senator Ted Stevens and Borough
Mayor Don Gilman are Honorary Co -Hosts for the Classic.
KENAI and SOLDOTNA
are two communities on the Kenai River, 8 miles apart and 25 minutes by air or 3 hours by road from Anchorage (which
is 3 hours by air from Seattle.) The areas population is approximately 20,000-30,000.
The KENAI RIVER
is a blue-green glacial river -100 yds wide - and averages 4 - 8 ft deep. It's current, of 7 - 10 knots and about 48 degrees,
winds through some of the most beautiful scenery on earth. Fishing season is: May, June, July for King Salmon; July and
August for Red Salmon and August and September for Silver Salmon. It is the largest Salmon sport fishery in the nation.
The Kenai holds more I.G.F.A. world records for salmon than any other river in the World. There is also a trophy rainbow
trout season in September and October.
KENAI KINGS
is what the tournament is all about. They are the largest salmon known in U.S. July Kings average 41 pounds. The Class
stresses catch and release. Anglers will receive a 10% bonus for releasing their catch. But it's also OK for those who want
to take a king home or have it mounted. All fishing gear will be provided by professional guides. There will be 4 anglers
per boat The guide does not fish. They will teach you the techniques of "back trollying," "drifting," or "back bouncing"
with plugs, spoons and/or with salmon roe. You will use level wind reels with 30 pound test line on 8' graphite rods. After
the hook-up it takes an average of 20-40 minutes to land a large King Salmon. Legal bag limit on a Kenai King is one a
day, two a season, but it is OK to catch and release during your entire trip.
When an angler keeps a King, he/she must stop fishing from the boat for the rest of the morning. Fishing will be from
approximately river Mile 3 upstream to River Mile 25. Most fish are caught early morning. Non-resident license required
S 15 plus a King Salmon stamp of S 15 before fishing. There will be many Tournament prizes. Main prizes - longest fish
caught and released; largest fish retained and the angler who accumulates the most points during the tournament.
There will be a $50,000 prize if a new large world record King is caught (half will go to the angler and half to HabPro.)
Present world record is from the Kenai, 97.4 pounds.
NOT A WILDERNESS
The Kenai River is on the state's major road system near the state's population center. Expect many boats, but mostly
polite fellow fishermen. There is good shopping, nearby hospital, movie theaters, two Challenging golf courses, tennis,
hiking, beautiful scenery. There is also rainbow trout or halibut fishing available (extra expense) in Cook Inlet.
WEATHER & CLOTHING
There is about 17 hours daylight (It's great!) Mornings usually are about 40 degrees F. to 65 degrees F. afternoon. There's
a 50/50 chance of cloudy and rainy weather. Bring light rain gear and fall northern U.S. clothing. No dress up except
Saturday night (July 9th) for the "Awards Banquet." We will provide fishing hats. You don't need hip boots etc. in the
boat. Good idea to bring short rubber boots (warm) or like footwear. Be able to "dress down" as the day warms up.
SCHEDULE
Wednesday, July 6th - Travel on 6th - Please arrive in Kenai before 3 pm. Major "Kick Off- salmon barbecue at
Penney's log home with cocktails at S p.m., dinner and program at 6 P.M. EARLY TO BID. Get up next morning at 4:3r
a.m. for breakfast and in the boats at 5:45 a.m.
Thursday, July 7th - Fish in tournament 6 a.m. to noon- Lunch will be served aboard. Weigh-in and pictures will be
till 130 p.m. or so . Seminars and/or sightseeing in the afternoon. There will be a cookout courtesy of Northstar Adven-
05-24-1994 09:39AM FROM KPB MAYOR'S OFFICE TO 82833014 P.03
u %V. L7 4LL V P.ALL. rolu%l.l 1 U isW.
Friday, ,July 8 th - Same fishing pattern as Thursday with afternoon seminar and/or sightseeing. At 6 p.m. Friday
welcome dinner by Kenai Peninsula Borough Major Don Gilman and by other entities.
Sa turday 9th - Sleep in- Breakfast at 8:30- Pack up and say good-bye untif•next year to new friends and to "Fishing on
the Kenai". Luxury tourcruisers will pick up participants. You'll wind through the beautiful lakes and mountains; stop-
g off at the Kenai Princess Lodge for lunch and leg stretch. Then on to Portage Glacier and Anchorage. That night
_XU be guests at the Captain Cook Hotel Kenai River Classic "Awards Banquet" (There will be nap/rest time before the
dinner). That night hold onto your hat because there's going to be a show that will knock
your socks off!
Sunday July 1 Oth - Travel Time back to "lower 48". See you next year!
HOUSING
Summer housing is at a premium in the Kenai/Soldotna area. Mayor Don Gilman is chairing the "Senators Hospitality" in
Kenai/Soldotna. He is arranging that each Senator plus -guest will be a very special guest of community leaders in
Soldotna or Kenai. Each such host will meet the senator at the airport, house them in their home and act as their
individual host. For the sponsors, we have reserved 25 very nice, clean rooms (one room per sponsor) in a B & B and a
Lodge on the Kenai River. (The Soldotna Bed and Breakfast, The Kenai River Lodge and the Riverside House.) These two
places are within 100 yds of tournament headquarters. Everyone can walk to and from fishing etc. Your room assign-
ments will be waiting when you arrive. We have also reserved rooms at the Anchorage WestCoast International Inn near
the Anchorage Airport (one room per sponsor and one room per Senator.) These quaint Alaskan accommodations sit on
the shore of Lake Hood, one of the largest float plane lakes in Alaska. The decor is Alaskan and you'll love the artifacts
throughout the hotel. (The WestCoast's staff we found to be the friendliest in town).
WILDLIFE & SCENERY
You will see American Bald Eagles, Arctic Terns, most likely some moose (maybe swimming the river,) beavers, swallows,
wild ducks, geese and maybe a caribou. Fabulous scenery if you go by roadcruiser from Soldotna to Anchorage on
Saturday. Including Kenai Wildlife Refuge, upper Kenai River, Kenai Mountains, Portage Glacier, Alyeska Ski Resort (New
S100 million lodge et. a1) BRING YOUR CAMERA!
e It
SPONSOR CATAGORIES
Our VIP guests this year will be as many as 10 U. S. Senators. Those of us who are sponsors will help make the Classic a
f r ancial success.
A. TOURNAMENT SPONSOR - A donation of $5,000 allows a sponsor and his/her guest to participate in the
fishing tournament, have housing and participate in all events during the Classic. Sponsors and their guests will be
responsible for their own fishing licenses and any other "extra" activities they may wish to do that aren't part of the
planned tournament.
B. EVENT SPONSOR - Each event may have a sponsor to underwrite that functions. In turn, the event will be
recognized as being sponsored by that individual or corporation, such as of "APEX" sponsored the fees for the guides,
then the guides would be referred to all times as "Apex Guides" and all the guides would wear "Apex Co." jackets etc
From helping pay for the three piece music band, to providing the roadcFuiser, there are lots of opportunities for
company and people to help participate.
C. PRIZE SPONSORS - We need companies etc who will help by providing prizes to be given out at the dinners
for various categories. They will be recognized for this help at every occasion before, during and after the Classic.
D. BANQUET SPONSOR - We need a dinner sponsor plus many prizes, gifts, vacation stays, services. etc. that
can be raffled off at the silent auction at the Banquet at the Captain Cook on July 9th.
The CLASSIC'S THEME
is to see that all our guests have a great time, have EMI and have the opportunity to catch a world renown Kenai King
Salmon. At the same time, all special guests will be a part of and contribute to a growing environmental effort to protect
the habitat of the world's greatest salmon river. Two of the seminars on Thursday and Friday will be "Alaskan Commer-
cial Fishing, The Magnuson Act, and how important Alaskan Fisheries are to our Nation," by Alaska Department of Fish
& Game Commissioner Carl Rosier and "Our Nation's Rivers Habitats and the Need to Protect Them." If everyone doesn't
say "We had a great time" then we won't have been successful. Our plan is, to have 10096 of our guests say "We want to
come back."
CONTACT THE CLASSIC
C4 '907) 262-8588 or fax us at (907) 262-8582. We are one hour later than Pacific Daylight Savings Time. We will be
gL co help you in anyway we can. We hope to have special fares to Kenai from the lower 48 for our sponsors. The
Tournament sponsors are on a "first come" basis. We believe they'll be filled quite soon. Please give us a call, come and
meet your own "Kenai King Salmon." _
05-24-1994 09:40AM FROM KPB MAYOR'S OFFICE TO 82833014 P.04
Kenai River Classic- Meeting May 6, 1994
Soldotna, Alaska
Present: Mayor Don Gilman, Bonnie Golden, Bob Penney, Jeannie Penney,
and Kris Ellis.
Update on Classic:
16 sponsorships have been sold
Only 9 sponsorships are left
Event sponsors:
1. Princess Tour- donated $3,000. bus to transport guests to Anchorage.
2. MacTel- donated 20 cellular phones.
3. Alascom- will sponsor the Awards dinner at the Captain Cook.
4. ERA- donated 3 Otter planes to fly guests from Anchorage to Kenai.
5. Unocal- wants to donate, it will be decided next week what they'll do.
6. Dave Thompson/Berkeley - will donate "Lots of stuff"
7. Hobo Jim- will play for free 4/6/94
8. Sweeney's- will donate 2-3 Aussie Hats
9. The Riverside House donated dinner for two.
10. Northstar-Bix Bonney donated 7 days of fishing in Mexico (no airfare)
There seems to be a tremendous amount of community support for the
Kenai River Classic- fundraiser
Kenai River Classic Committees:
Senator Ted Stevens, Honorary Co -Host , & Christine Ciccone
Mayor Don Gilman, Co -Host, & Bonnie Golden -Senator's Housing Hospitality
and Borough and Cities Dinner.
Bob Penney, Finance Co -Chairman, Executive Committee
Allan Norville, Finance Co -Chairman, Executive Committee
Kevin Branson, Transportation Committee (Air Transportation)
PJ (Jeannie) Penney, Hospitality Committee
Ben Ellis, Public Relations Committee
Bix Bonney, Tournament Committee
Bill Bass & Pat Carter, Prize Committee
TOTAL P.04
INFORMATION ITEMS
Kenai City Council Meeting of
June 1, 1994
1. Pay Estimate No. 9 from Zubeck, Inc./$64,992.68.
2. Pay Estimate No. 5 (final) from Jahrig Electric/$56,674.42.
3. 5/26/94 memo to TJM from KK re: DOT/PF Meetings.
4. 5/24/94 letter from Richard P. Troeger (KPB) to City Council
re: Petition to Vacate portion of land on Riverview Avenue.
5. 5/24/94 notice re: 1994 AML Local Government Conference
Week in Juneau November 13-18, 1994.
6.
May,
1994 Resource Review.
7.
May
24,
1994 Inside Oil & Gas.
8.
May
18,
1994 Legislative Bulletin.
9.
May
27,
1994 letter from KK to John Horn, DOT/PF.
10.
Article
regarding MIDREX from Alaska Journal of Commerce.
APPLICATION FOR
CONTRACT PAYMENT NO. 9
PAGE 1 OF 8
PROJECT: 1993 THOMPSON PARK SEWER INTERCEPTOR
TO (OWNER):
FROM (CONTRACTOR):
ENGINEER:
24 2525�, �
MAY
r
�94
P.'�KW
r�A cu
�o
�ttOt68
CITY OF KENAI
210 FIDALGO
KENAI, ALASKA 99611
ZUBECK, INC.
7983 KENAI SPURDHIGHWAKENAI , ALAS KA
WINCE —CORTHELL— BRYSON
P.O. BOX 1041
KENAI, ALASKA 99611
'0 y
FOR COUNCIL Nltt I iNG OF `o -I-9od
----[] City Mgr. Attorney
Works City Clerk
"&&-NPub1ic
Finance 0
Original To PH/ Submitted By 1w
Council OK []No Yes Ck
APPROVED BY COUNCIL
DATE
PERIOD FROM 04/27/94 TO 05/21 /94
CITY CLERK
ADJUSTED CONTRACT AMOUNT TO DATE PAY REOUEST FOR CITY USE
1. ORIGINAL CONTRACT AMOUNT
2. NET CHANGE BY CHANGE ORDERS
3. NEW CONTRACT AMOUNT TO DATE
$1,035,607.65
i
$6400.00
$1,042,007.65
WORK COMPLETED
4. TOTAL COMPLETED AND STORED
$9891083.03 ✓
2
5. LESS RETAINAINGE OF,1'frPERCENT
($52,100.38)
6. TOTAL EARNED LESS RETAINAGE
$9361982.65
i
I 9 L 9 3 o (, 3 ?
7. LESS AMOUNTS OF PREVIOUS PAYMENTS
$904,308.69
8. BALANCE DUE THIS PAYMENT
$32,673.96
y 9 % .z , 6
DISTRIBUTION OF EXECUTED PAY ESTIMATE
OWNER ENGINEER_ ,Z
CONTRACTOR,
CONTRACT PAYMENT NO 9 PAGE 2 OF 8
PROJECT: 1993 THOMPSON PARK SEWER INTERCEPTOR
CERTIFICATION BY CONTRACTOR
According to the best of my knowledge and belief, I certify that all items and amounts shown
on the face of this Application for Contract Payment are correct; that all work has been
performed and/or material supplied in full accordance with the requirements of the referenced
Contract Documents, and/or duly authorized deviations, substitutions, alterations, and/or
additions; that the foregoing is a true and correct statement of the contract account up to and
including the last day of the period covered by this Contract Payment, that no part of the
Balance Due This Payment has been received, and that the undersigned and his subcontractors
have complied with all the labor provisions of said contract.
BY �� o
(C-6'ntractor) (Signature of Authorize _presentative)
,19 Title,- �_
State;O�/v �
o
Subscribed and swoM to before me this o2r day of 194
Notary Public: D�1-
My Commission Expires:
CERTIFICATION BY ARCHITECT OR ENGINEER
I certify that I have checked and verified the above and foregoing Contract Payment; that to the
best of my knowledge and belief it is a true and correct statement of work performed and/or
material supplied by the Contractor; that all work and/or material included in this Payment has
been inspected by me and/or by my duly authorized representative and that it has been
performed and/or supplied in full accordance with requirements of the referenced Contract
Documents; and that payment claimed and requested by the Contractor is correctly computed
on the basis of work performed and/or material supplied to date.
AMOUNT C I I AS DUCE: 73.96
Signed W ate Z-S �, C.C�
( Arc . c or gin r
State of:
Subscribed and swo �bbeffqr,e this � day of
Notary Public:
My Commission Expires:
OTHER APPROVAL:
Signed:
OWNER APPROVAL
Date
Based on the above certification of the Contractor and Architect or Engineer, the City of Kenai,
with the Kenai City Council concurrance, authorize payment.
Signed: Date
APPLICATION FOR ✓
Page 1.Of 6 _
`1 CONTRACT PAYMENT NU. 5 -fi vA4
PROJECT: AIRPORTr SECURITY GATES
TO (OWNER): CITY OF KENAI
210 FIDLAGO
KENAI, AK 99611
9
FROM (CONTRACTOR): JAHRIG ELECTRIC FUR UAOM L iviLL i ING OF
PO BOX 51 [ City Mgr. El Attorney
All `'t �` works --p city Cierlc
KE?�IAI AK 996I 1 -� C��ubiic
Financel, / -0
r % Or;ginal To--'0Submitted BY =�
ARC=CTIENGRgEER: NELSON & ASSOCIATES Council OK E]No
[:]Yes Ck---
215 FIDALGO, SUITE 204
137476�e KENAI, AK 99611
It j1rToj-.2e
APPROVED BY COUNCEL
�
�( j 7
MAY1J.7'F
S 1, o
ReceWed DATE
�2 Works of Keo
CITY CLERK
o
PERIODFROM 4/26/94
TO 5/6/94
d
ADJUSTED CONTRACT AMOUNT TO DATE
PAY REQUEST
FOR CITY USE
1 Original contract amount
2099,600.16
e9o" 6 y
2 Net change by change orders
0.00
i
.5";:6 !�
3 New Contract amount to date
209, 600. 16
03 $ .16!
WORK COMPLETED
4 Total completed and stored
036.16
5 Less retains a of 2� ercent
g P
-
`T, 1�D • 7"2
6 Total earned less retainage
� &9 75, yIdl
7 Less amount of previous payments
147, 201.02
/ `i 7 Ao v
8 Balance due this payment
S�
�sQ
DIST"TBUTION OF EXECUTED PAY ESTIMATE
Q
�� Q U
OWNER ARCHITECT/ENGINEER CONTRACTOR
CONTRACT PA Nam. 5 Page -2- of
- -�ROJECT: AIRPORT SECURITY GATES
w
N. • I ft
• . •
According to the best of my knowledge and belief, I certify that all items and amounts shown on the face of this
Application for Contract Payment are correct; that all work has been performed and/or material supplied in full
accordance with the requirements of the referenced Contract documents, and/or duly authorized deviations,
substitutions, alterations, and/or additions; that the foregoing is a true and correct statement of the contract
account up to and including the last day of the period covered by this Contract Payment, that no part of the
"Balance Due This Payment" has been received, and that the undersigned and his suincontrac:ors have complied with
all the tabor provisions of said contract. „
JAHRIG ELECTRIC, INC. By
(Contractor) (Signature of Authorized Rep.)
May 6 , 19 94 Title Owner
State of: A[ V-/'►--- C :
Subscribed and to before me this Lj f day of 19`� �.
Notary Publi
My Commission xpires: ? - ► 3 `
CERTIFICATION BY ARCIHTI ECT OR ENGINEER
I certify that I have checked and verified the above and foregoing Contract Payment; that to the best of my
knowledge and belief it is a true and correct statement of work performed and/or material supplied by the
contractor; that all work and/or material included in this Payment has been inspected by me and/or by my duly
authorized representative and that it has been performed and/or supplied in full accordance with requirements
of the referenced contract documents; and that payment claimed and requested by the contractor is correctly
computed on the basis of work performed and/or material supplied to date. AMOUNT CERTIFIED AS DUE:
Signed n Date -zs- 3 4f
(Architect or Engineer)
State of: 6&cx.,2,kcc,
Subscribed and sworn to
Notary Public: 4-41_b,
My Commission Expires:
Signed:
OWNER APPROVAL
before me this 1.3�1-3 day of
ice.
Date
Based on the above certification of the contractor and Architect or Engineer, the City of Kenai,
with the Kenai City Council concurrance, authorize payment.
Signed Date
1
' Counci
( t
GRAN UM
DATE: May, 26, 1994 /
7/t,
TO: Tom Manninen, City Manager
FROM: Keith Kornelie, PWD
SUBJECT: DOTIPF MEETINGS
FOR: City Council Meeting of June 1, 1994
June 9. 1994 @ 11:00 a.m. @ Kenai Council Chambers
This is a meeting with DOT/PF and the Kenai City Officials that DOT/PF set up
to discuss the Transportation Needs and Priorities in Alaska.
June 9, 1994 @ 7:00 p.m. @ Soldotna Council Chambers
This is an area wide public meeting that DOT/PF is conducting on the overall
State of Alaska Transportation Needs and Priorities in Alaska. It is for the
public and everyone is invited.
June 28. 1994 @ 1:00 p.m. - 7:00 p.m. @ KPB
This is a Public Hearing by DOT/PF for the Sterling Highway Project MP37 to
MP60. I am attaching:
1) DOT/PF, John Horn, Regional Director's letter to Kornelis dated April 20,
1994.
2) Korne I is letter to DOT/P F.
3) Notice of Public Hearing on Sterling MP37 to 60.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
REGIONAL DIRECTOR, CENTRAL REGION
Gs4�
Keith Kornelis
Public Works Director
City of Kenai
210 Fidalgo Avenue, Suite 200
Kenai, AK 99611-7794
Dear Mr. Kornelis:
April 20, 1994
WALTER 1. NICKEL, GOVERNOR
P.O. 80% 196900
ANCHORAGE, ALASKA 99519-6900
(907) 266-1440 (FAX 248-1573)
RE: Transportation Priorities
Thank you for taking time to comment on the Transportation Needs
and Priorities in Alaska (Needs List). After considering your
comments, the department will prepare a revised Needs List for
public review. From the revised Needs List, the department will
develop a detailed FY195-97 State Transportation Improvement
Program.
We intend to focus not only on projects on high -volume highways,
but those that address public health and safety, as well as new
construction in support of tourism and recreation. There are
many projects awaiting funds and not all projects can be a
Priority One. It would be much more helpful to us if, instead of
assigning a Priority One to all of the Kenai projects you would
rank your projects in order of importance. That will give us the
information we need to make the difficult decisions that lie
ahead. We appreciate the position the City has taken on the
possible transfer of Forest Drive/Redoubt Avenue. It is
premature to make promises about the timing of possible road
improvements, but we will evaluate this project with that
information in mind.
Thank you again for your interest in the proposed project
priorities.
Sincerely,
Aon D-4e-L�
. Horn, P.E.
ional Director
PB/mc
CITY OF KENAI
Od 6C4fZd4rJ 4 414adJ6 11
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 !cftd
'III�1
1"2
April 8, 1994
John Horn, Regional Director,
State of Alaska, DOT/PF
PO Box 196900
Anchorage, AK 99519-6900
Dear Mr. Horn:
I am in receipt of your letter dated March 15, 1994 to John J. Williams, Mayor, concerning
the Transportation Needs and Priorities in Alaska.
The City of Kenai would like to reconfirm its support for all of the projects listed for the
Kenai Peninsula. We feel that the highest priority should be given to the following
projects:
Priority
Location
Project
Description
1
Kenai
Kenai - Forest
Drainage improvements, reconstruction
Peninsula
Drive &
and resurfacing.
Redoubt Ave.
1
Kenai
Kenai River
Improve the existing highway rest stop
Peninsula -
Flats
near Warren Ames Memorial Bridge,
Transportation
Interpretive
including viewing platforms, viewing
Enhancements
Site
scopes, walkways, paving and
landscaping.
1
Kenai
Kenai Spur -
Construct a pedestrian/bike path along
Peninsula -
Unity Trail
Kenai Spur Road from Kenai to
Transportation
Pedestrian
Soldotna.
Enhancements
Bike Path
Page 2
John Hom - Priority
4/7/94
Please note that Redoubt Avenue was added to the Forest Drive project request. These
two roads form a loop off of the Kenai Spur Highway (previously called Homesite Loop).
The city also reconfirms that it will take over the maintenance of this loop from the state
if it is properly upgraded with the excavation of FSM, improved drainage, curbs and
gutters, and replaced sidewalks and bike paths. The road presently has huge dips from
the frost heaves. It actually needs immediate attention.
Also note that Unity Trail is from Kenai to Soldotna (not Sterling as in previous
document).
I have not listed the Fort Kenay Mission Street Improvements, nor the Kenai Spur Road,
since these projects are presently approved and under way.
Thank you for asking for our input. We have other projects that are needed but the
above are the most important of the state related projects.
Sincerely,
Keith Komelis
Public Works Director
KK/kw
cc: Tom Manninen, City Manager
Council Information - 4/20/94
George Church, DOT/PF
Pat Beckley, DOT/PF
Job
9.49 �qo
State of Alaska
Department of Transportation and Public Facilities
Notice of Public Hearing
and
Draft Environmental Impact Statement Availability
Sterling Highway, Milepost 37 to Milepost 60
Project No. F-021-2 (15) /53014
The Alaska Department of Transportation and Public Facilities (ADOT&PF) will
conduct three location and design public hearings for the proposed Sterling
Highway MP 37 to MP 60 project. These hearings will follow an open house
format and participants may attend at any time during the hours below. The
ADOT&PF staff will be available to present the project to the public and to
take public testimony.
June 28, 1994
Kenai Peninsula
Borough
144 N. Binkley St.
Soldotna
1:00 pm - 7:00 pm
June 29, 1994
Cooper Landing
Community Building
Bean Creek Road
4:00 pm - 8:00 pm
June 30, 1994
ADOT&PF
4111 Aviation Drive
Anchorage
11:00 am - 4:00 pm
The proposed project would provide a modern highway meeting current design
standards between the Skilak Lake Loop Road and the Seward Highway
junction. There are two build alternatives being considered: the
Resurfacing, Restoration, Rehabilitation 3(R); and the Juneau Creek. The
ADOT&PF has not selected an alternative.
The 3R Alternative is essentially the minimnnn development alternative which
improves the road primarily on the existing alignment. Highway traffic would
continue to be routed through the community. The Juneau Creek Alternative
is a full reconstruction alternative. The Juneau Creek Alternative has a 11.2-
mile realignment that would follow along a bench on the north wall of the Kenai
River Valley. Through highway traffic would be rerouted away from the
community of Cooper Landing.
Copies of the draft Environmental Impact Statement / Section 4 (f) Evaluation
are available for public inspection at the public libraries in Anchorage, Cooper
Landing, Soldotna, or Kenai; the Cooper Landing Community Club; or may be
requested from Laurie Mulcahy, Environmental Analyst, at 266-1760.
Persons wishing to submit written statements for the record may deliver them
to the hearings or mail them to the following address. Comments received will
be utilized in the Department's final determination and selection of an
alternative. Agency comments must be received by 4:00 p.m. June 20, 1994.
General public comments must be received by 4 : 00 p.m. July 15, 1994.
Hank Wilson, P . E .
Alaska Dept. of Transportation & Public Facilities
Preliminary Design & Environmental
P.O. Box 196900
Anchorage, AK 99519-6900
y
Juneau Juneau, Alaska's Capital City (just two hours from
Seattle) is indeed an accessthle wilderness. Nestled
between two grand mountains, in the heart of the
world famous Inside passage, Juneau offers fine
hotels, restaurants and cultural activities. Greet
Wwhales, porpoises, eagles and bears in their natural
C,)"-"(um & setting. Truly a captivating mix of regal natural
Visitors Bureau
beauty and sophistication.
Frrluff"�'Owl
We couldn't "bear' to
have our conference
without yowl
1994 AML Local Government
Conference Week - Juneau
November 13-18, 1994
(14AY 2 4'9 4
o. s
John VAIllams, Director
Alaska Municipal League
City of Kenai
210 Fidalgo
Kenai, Alaska 99611
Compliments of the Juneau Convention 6t Visitors Bureau - phone (907) 586-1737 - Fax (907) 586-1449
Reality check
Low oil prices, declining
production will take heavy toll on
state economy, leaving serious
consequences for all Alaskans
Regional
11
Alaska is facing grim economic times
with low oil prices, declining North Slope
production and a struggling oil industry
that is scaling back Alaska operations to
cope with the realities of operating in a
low -price world oil market.
Perhaps no issue affecting Alaska's
economy and its social fabric looms larger
than declining oil production and world oil
prices, which are as low as any time since
1973. With North Slope oil production
accounting for 85 percent of all state rev-
enues and as much as 40 percent of the
jobs in Alaska, the state is facing grim
economic times. The deeper the cuts to
oil industry spending and employment in
Alaska, the greater the shock wave to an
economy largely dependent on oil.
(Continued to page 4)
20 years: A history of shaping the future
This year marks the beginning of
RDC's 20th year in business advocat-
ing and educating for sound resource
development in Alaska.
From its modest beginning as the
Organization for the Management of
Alaska's Resources (OMAR), which
was formed to work for an All -Alaska
gasline, RDC has grown more diverse
in its issues and more membership -
oriented as an organization.
RDC certainly takes a long-term
view toward development issues and it
is agood thing since, incredibly enough,
many of the issues are the same as in
OMAR days! For instance, Alaska still
The Resource Development Council (RDC) is
Alaska's largest privately funded nonprofit economic
development organization working to develop
Alaska's natural resources in an orderly manner and
to create a broad -based, diversified economy while
protecting and enhancing the environment.
Executive Committee Officers
President ................................. James L. Cloud
Sr. Vice President
.................... David J. Parish
Vice President ......................
Elizabeth Rensch
Secretary ...............................
Scott L. Thorson
Treasurer .................................. Allen Bingham
Past President ..................
Paul S. Glavinovich
Staff
Executive Director ...................... Becky L. Gay
Communications Director .......
Carl R. Portman
Special Assistant/Finance .......
Judie Schneiter
Projects Coordinator ...................Ken
Freeman
Staff Assistant ............................
Penny Booher
Resource Review is the official monthly publication
of the Resource Development Council. RDC is located
at 121 W. Fireweed, Suite 250, Anchorage, AK 99503,
(907) 276-0700. Fax: 276-3887
Material in the publication may be reprinted without
permission provided appropriate credit is given.
Writer & Editor
Carl Portman
9 <ZE3>
722C
doesn't have a major gas line, but RDC
hasn't quit working on that issue. In
fact, much of RDC's work is involved
directly educating policy makers and
individuals about basic resources and
the need for access, stable taxation,
power development, exploration lead-
times and the markets for Alaska's re-
sources.
Without the volunteer efforts of our
many statewide board members, RDC
could not afford to be involved in the
front lines of resource education and
advocacy. There are many people to
thank and recognize, but space does
not permit. You know who you are and
we Thank You for continuing to support
this vital effort.
I'd like to recognize the Past Presi-
dents of RDC who have helped lead
this organization to its present strength:
Co-founders Robert C. Penney and
Robert W. Fleming, 1975-76; Robert C.
Penney, 1976-77; Robert W. Fleming,
1977-78; Lee E. Fisher,1978-79; James
C. "Bud" Dye,1979-80; Tom Fink,1980-
81; Charles F. Herbert, 1981-82; Mano
Frey, 1982-83; Charles R. Webber,
1983-86; Boyd Brownfield, 1986-87;
Joseph R. Henri, 1987-88; J. Shelby
Stastny, 1988-89; Ethel H. "Pete"
Nelson,1989-90; William E. Schneider,
1990-91; John Rense, 1981-82; Paul
S. Glavinovich, 1992-93 and James L.
Cloud, 1993-94.
RDC's 20th Annual Meeting will be
held Thursday, June 2 at the Sheraton
Anchorage Hotel. All members and the
general public are invited to attend the
public luncheon forum of the Annual
Meeting featuring Senator Ted Stevens
and Congressman Don Young. New
directions in public land use policies
and their implications for Alaska's
economy will be discussed. Specific
issues include reauthorization of the
Endangered Species Act, the Clean
Water Act, Mining Law reform, the Na-
tional Biological Survey, new ecosys-
tem management of public and private
lands, the phase -out of logging on pub-
lic lands and a new outlook on ANWR.
As you can see, the issues in 1994
are just as complex and crucial to Alas-
kan interests as they were 20 years
ago. The challenges, however, are
greater today because a new breed of
federal policy -makers and their envi-
ronmental lobby have proclaimed re-
source development on public lands
"politically incorrect." With Alaska be-
ing a public land state heavily depen-
dent on resource development for its
economic base, this is an alarming trend.
RDC's work on your behalf is rr
important than ever, considering the
current political climate and the chal-
lenges our basic industries face. Our
members face the same threats and by
overcoming them together, we'll enjoy
the fruits of our work: a prosperous and
healthy Alaska.
The Resource Development Council
proudly presents its
20th Annual Meeting
Thursday, June 2, 1994
Howard Rock Ballroom
Sheraton Anchorage Hotel
12 Noon
A Strong Dose of Reality
New Directions in Public Land
Policies and Implications for
Alaska's Economy
Senator Ted Stevens
Congressman Don Young
$20 per person
RSVP at 276-0700
Page 2 / RESOURCE REVIEW / May 1994
"Not satisfied with the 91.5 million acres of land under its domain nationwide, the
U.S. Fish and Wildlife Service and the National Marine Fisheries Service are using
the Endangered Species Act to gain control over virtually all land use decisions on
federal land, regardless of land management jurisdiction. "
MOA would give Fish and Wildlife Service veto
power on wetland regulations and NPDES permits
In a growing movement, the U.S.
Department of the Interior (DOI) is en-
gineering perhaps the greatest land
management takeover since Gifford
Pinchot stole 86 million acres from In-
terior in 1905 to start the Forest Service
ender the auspices of the Department
\griculture.
Not satisfied with the 91.5 million
acres of land under its domain nation-
wide, the U..S. Fish and Wildlife Ser-
vice (USF&WS) and the National Ma-
rine Fisheries Service (NMFS) are us-
ing the Endangered Species Act (ESA)
to gain control over virtually all land use
decisions on federal land, regardless
of land management jurisdiction. The
move threatens to effectively create,
once again, the "General Land Office"
of the DOI.
Abusing the powers of the ESA,
the USF&WS has already usurped the
responsibility of the Forest Service to
manage its land for true multiple use of
forest resources in the Pacific North-
west. It's displacing the Federal En-
ergy Regulatory Commission (FERC)
on regulatory water flow in the Colum-
bia River system, a move likely to cost
over $140 million to residents and busi-
ness in the Northwest, according to
Marples Business Newsletter.
Now we have learned of yet an-
other Memorandum of Agreement
(MOA) being drafted to give USF&WS
and NMFS effective veto powers on
wetland regulations and National Pol-
lutant Discharge Elimination System
(NPDES) permits. While leaving the
Corps of Engineers out of the MOA, the
agreement with EPA will elevate
USF&WS and NMFS status on wetland
issues from the "consultant" role autho-
rized by Congress to that of decision -
maker.
If USF&WS believes a proposed
activity will "adversely" affect any one of
more than 1,200 endangered or threat-
ened species, the agency may instruct
the EPA to veto the approval of wetland
or NPDES permits. This veto also ap-
plies to state -issued permits. The "ad-
verse" effect finding is not as stringent
as the "jeopardy" finding presently re-
quired under Section 7 of the ESA.
The power plays in Washington
seemingly never cease. In the'80s, the
EPA usurped the regulatory powers of
the Corps in regulating wetlands with its
MOA and took over domestic health
issues such as smoking, radon, lead,
benzene and dust from the Department
of Health, the Center for Disease Con-
trol and the Food and Drug Administra-
tion. Now EPA's influence is under at-
tack.
Corporations consider takeovers of
other businesses when management
believes it can provide benefit to share-
holders through consolidation. I am at a
loss to determine the benefit to taxpay-
ers (shareholders) through opportuni-
ties of expansion or efficiencies of the
Washington takeover craze.
Although I have illustrated the ef-
fect of this latest power play on federal
land and resource management, it
reaches deep into the realm of state
and local government rights and re-
sponsibilities and those of private prop-
erty owners and consumers.
The cost of increased government
regulation and decreased access to
natural resources is borne in the end by
the poorest of Americans and those
least likely to be able to bear the cost.
The cost manifests itself in the loss of
good paying jobs in wealth -generating
industries, in the artificial scarcity of
resources in the face of a growing popu-
lation, and in decreased taxes to fund
the more rational aspects of our gov-
ernments.
Despite the seriousness of this take-
over trend, one cannot help but see the
irony that after 89 years the Secretary
of the Interior is taking back the DOI's
land from the grasps of Gifford Pinchot's
Forest Service.
Over the next several months Con-
gress will be addressing the reauthori-
zation of the Clean Water Act, the En-
dangered Species Act, as well as other
issues, including the Superfund. We
need your help to make federal legisla-
tion more reasonable.
Please respond to ourAction Alerts
and other requests. Each response
increases our effectiveness.
Your future and that of your chil-
dren are at stake.
May 1994 / RESOURCE REVIEW / Page 3
Tough times
in the
oil
industry
mean tough
times
for
Alaskans
-
"With capital
already short
because prices
are so low, higher
taxes would force
yet another re-
evaluation of
every Alaska
investment now
being considered
by our industry.
Half the oil that
could be pro-
duced in the year
2000 will only be
produced if hun-
dreds of invest-
ments which have
not yet been
made are made.
This is oil
the state is count-
ing on to fund
future budgets. "
H. L. "Skip" Bilhartz
President, ARCO Alaska
(Continued from page 1)
To cope with the realities of low oil
prices and declining production, North
Slope oil producers are streamlining their
operations and slashing spending:
• North Slope field owners have
scrapped plans for a fourth develop-
ment drilling rig at Prudhoe Bay and will
suspend development drilling at
Kuparuk and Point McIntyre later this
year. This is bad news for the state
treasury since development drilling is
necessary to assure that oil already
discovered on the North Slope is pro-
duced in the future. State revenue
forecasts include this new production,
which is now on hold.
- ARCO Alaska has reduced the
size and scope of its exploration pro-
gram here in response to low oil prices
and high operating costs in Alaska.
- For the first time since production
began at Prudhoe Bay in 1977, neither
BP (Alaska) Exploration or ARCO have
new capital investments in their plans
for North Slope projects. New con-
struction on the Slope will come to a
halt, and the effects will be especially
noticeable in Anchorage and Fairbanks
where two decades of industry spend-
ing associated with large North Slope
projects has benefited workers and lo-
cal retailers.
"It's going to have a dramatic effect
on the local economy," said Fairbanks
Mayor Jim Hayes. "People in Fairbanks
really look forward to those projects."
For the first time since oil became
Alaska's primary source of revenues,
the oil industry is putting the lid on ex-
pansion in the 49th state. It has no
choice; profits have dropped to mainte-
nance levels and capital dollars are be-
coming increasingly difficult to obtain.
The cutbacks, downsizing and con-
solidations are likely to be dramatic and
widespread. With 2,400 employees,
ARCO Alaska is likely to be a very
different and leaner company one year
from now. BP's 1,100 employees in
Alaska are also bracing for cuts.
The companies are now working
out the details of cost-cutting measures,
including the consolidation of opera-
tions and services at Prudhoe Bay.
Major decisions are expected to be
announced by mid -summer or fall.
While the companies at this point
aren't saying how deep the cuts will go,
any job loss in the oil patch is serious
since company workers are some of
Alaska's highest -paid employees. Oil
company employees earn an average
salary of $96,000 a year, supporting
many more businesses and jobs than
the average Alaskan.
"They live in big houses, so they
pay more property tax, and when they
buy a bike, they buy the best bike," said
Neal Fried, an economistwith the Alaska
Department of Labor. "They don't hesi-
tate to go to the dentist or the doctor."
Bad news in the oil sector is bad
news for the economy in gener Oil
revenues fund state government, uo well
as its welfare, education and health pro-
grams. New roads, libraries, schools,
power utility systems and public water
and sewers in the Bush are funded
largely by oil, as well as support infra-
structure for other industries like fishing.
But also at stake are community
school bonds, real estate values, church
building funds and scores of civic orga-
nizations like the Anchorage Symphony.
Low oil prices and declining production
will even take a toll on United Way and
Catholic Social Services and the many
programs those organizations support.
The economic ripple effect will be felt
from the top of state and local govern-
ment right down to the large and small
businesses across the state.
"We Alaskans don't want to face
reality — the reality that it is becoming
more and more uneconomic for oil com-
panies to operate in this state," said
Dennis Fradley, an editorial writer for
the Voice of the Times. "The F __ -!writ-
ing is on the wall, but nobody's , .;ading
the message. The industry that feeds
Alaska's gigantic spending habits is
starting to pull the plug."
"Times are tough, very tough," saic
Page 4 / RESOURCE REVIEW / May 1994
Alaska Production Margins 1
Crude Price Change Impacts
$/BBL $/BBL % Change
West Texas Benchmark
Quality/Transportation Difference
West Coast Marine Transportation
TAPS and Other Tariffs
ANS Wellhead
Average State Share
Producer's Gross Value Before
Operating Expenses or Investments
$20.00
$15.00 25%
($3.00)
($3.00)
($1.50)
($1.50)
3.50
($3.50)
$12.00
$7.00 42%
4.00 2.50
$8.00 $4.50
As shown above, when the benchmark (West Texas Intermediate) price of oil is $15 per
barrel, the Alaska North Slope wellhead price is $7, after deductions are taken for quality,
transportation and various tariffs. When the average state share is taken, the producer is
left with a gross value of $4.50 perbarrel. Operating expenses orinvestments are then taken
from the $4.50 margin. (Source of Quality/Transportation/Tariff Deductions: AK Dept. of Revenue. Revenue Source Book)
ARCO Alaska President H.L. "Skip"
Bilhartz. In the last several years, half
a dozen oil companies have pulled out
of Alaska and few new players are
investing in the state. Nearly 1,000
industry jobs have been eliminated.
ARCO has not been immune to
)stantial cuts in its workforce.
"Since 1991, through layoffs and
attrition, we have eliminated more than
400 positions," Bilhartz noted. "That
represents a 14% reduction in our work
force. At a continuing price level of $14
or $15, our operations will have to be
leaner still."
Budget gap, higher taxes
fuel anxieties
The low price of oil is not the only
force influencing industry decisions and
cutbacks in Alaska.
"Exploration in Alaska in a low -
price world, with the terms and condi-
tions set by the state and the distance to
market, is a very difficult proposition,"
said Bilhartz.
One of the major reasons for an
exodus of oil companies from Alaska,
Bilhartz said, is the state's budget gap.
"It is real and getting bigger, and if the
state's production forecasts don't come
tr it will be bigger still," he warned.
One of the biggest uncertainties
the industry faces is how investment
decisions yet to be made by the compa-
nies are affected by state decisions on
its fiscal problems.
"The gap has chilled industry inter-
est in Alaska because the state has
made a habit of increasing oil taxes
when money is tight," Bilhartz ex-
plained. He warned that higher taxes
would "deprive us of the cash we need
to continue development of existing
fields, even at the reduced pace now
proposed." Higher taxes would mean
more spending cuts, fewer wells, less
work and less production, the ARCO
chief warned.
"With capital already short because
prices are so low, higher taxes would
force yet another re-evaluation of ev-
ery Alaska investment now being con-
sidered by our industry," Bilhartz said.
"Half the oil that could be produced in
the year 2000 will only be produced if
hundreds of investments which have
not yet been made are made. This is oil
the state is counting on to fund future
budgets."
Bilhartz urged the state to close
the budget gap by enacting a plan
which "recognizes that because of
declining production and low oil prices,
the oil industry can no longer single-
handedly underwrite the cost of state
government."
Bilhartz's fears of higher industry
taxes when times are tough for the
state are well founded, considering the
latest moves by Governor Wally Hickel
to ram through legislation this session
to apply retroactive tax assessments
on the oil industry dating back nearly
20 years. The bill, SB 377, singled out
the industry by extending the statute of
limitations on assessments and col-
lections.
"By reaching into the past to settle
present budget problems, this retroac-
tive tax policy will short-change the
future of resource investment in Alaska,"
said RDC Executive Director Becky Gay
in recent testimony against the bill. "It
sends chills to those who are here to-
day, while sending a bad signal to those
interested in coming here in the future."
Hickel's bill, the most controversial
piece of legislation addressed in Ju-
neau this year, was voted down on the
House floor.
Downward spiral in oil prices
In real terms, the price of oil has
been on a downward trend for the last
15 years, interrupted only by the Gulf
War. Today's oil prices, even before the
free -fall that began in November, are as
low as at any time since 1973
North Slope oil prices this fiscal year
are expected to average their lowest
since 1978, and the outlook for the com-
ing year is not much better, the state
Revenue Department reported recently.
When the fiscal year ends June 30, the
average price is expected to be $13.70 a
barrel, the department said in its annual
spring revenue forecast. The legislature
last spring based this year's state budget on
oil selling for $18.38 a barrel. The difference
is a $668 million shortfall.
For each $1 drop in a barrel of oil
over a year, the state loses about $150
million. The department anticipates the
state will take in $1.64 billion this year,
the first time since 1987 that revenues
have fallen below $2 billion. Next year's
forecast is for slightly higher revenues
of $1.7 billion, based on an average of
$13.97 a barrel.
The large deficits caused in part by
low oil prices will not go away. Even
under optimistic revenue forecasts,
annual deficits of $600 million to $900
million are projected over the next sev-
eral years. This exceeds the annual
state spending for education and is
more than the combined annual bud-
gets of the Department of Commerce,
Natural Resources, Fish and Game,
Transportation, Public Safety, Correc-
tions and nine other departments, ac-
(Continued to page 7)
May 1994 / RESOURCE REVIEW / Page 5
Arctic Slope Regional Corporation's
mission statement charges our man-
agement to work to enhance the eco-
nomic freedoms of all shareholders.
But we are constantly frustrated in this
effort by our state government's lack of
fiscal responsibility. I would like to share
my views on this issue with you, in
hopes that together we could bring about
some solutions.
The State of Alaska is currently in a
fiscal crisis. Our economy is dominated
by the production of natural resources,
primarily oil, from the North Slope. But
with oil prices and production dropping,
Alaska simply does not have sufficient
current revenues to support all the
wishes of our politicians.
Though ASRC has its origins in
federal land claims legislation, we are a
private, for -profit corporation, whose
Inupiat shareholders live primarily in
the North Slope area. State govern-
ment actions, including the failure to
address this current fiscal crisis, have
enormous impact on our many busi-
ness enterprises around the state.
The declines in production from
Prudhoe Bay and adjacent fields has
been obvious for several years. And I
believe that crude oil prices, though
unpredictable, will remain low for some
time to come. OPEC has done nothing
to change this, and international mar-
kets seem to indicate prices will stabi-
lize below $15 per barrel.
But our leaders in Juneau are fail-
ing to face the hard fiscal truth: that
lower North Slope production and lower
crude oil prices mean there are real
limits to how much the state can spend.
The economic realities facing
Alaska for the rest of the decade de-
mand cuts in the cost of government.
We cannot continue to spend beyond
our means, then raid every possible
source of "reserve" revenue.
I would not welcome tapping the
Alaska Permanent Fund now, or as
long as Prudhoe Bay is still in produc-
tion. The pipeline still carries 1.5 million
Harsh economic
realities face Alaska
'Alaska's structural
disadvantage in the
competition for oil
industry exploration
and development
dollars is only made
worse by the Alaska
government's unstable
natural resource
development policies. "
barrels of oil a day. But we must start
adapting now to the changing fiscal
picture by trimming government op-
erations and cutting budgets to match
revenue projections.
As a local political officer, I learned
that making necessary decisions is
seldom easy or popular. But I also
learned that failing to do so will only
make the situation worse. Alaskans
cannot continue to bury their heads in
the sand. We need leadership and
responsible decision -making, and we
need it now.
know very well there are many
demands on the state budget. In rural
Alaska, home to many ASRC share-
holders and fellow Alaska Natives,
there are great needs for basic water
and sewer systems, fuel storage facili-
ties and more efficient social service
delivery. But we must make some
choices and do so responsibly.
Our leaders in Juneau need to face
up to reality, and adjust their spending
habits accordingly. Government should
learn from private enterprise, which
when faced with similar crises has used
modern management to restructure,
trim down and operate more efficiently.
All of Alaska, but especially our
representatives in Juneau, must see
that it is impossible to levy more taxes
on North Slope output without harming
the basic structure of oil productir -i
Alaska. Too many companies havb.,eft
our state already.
We should believe the state oil
industry's assurances that it is restruc-
turing by cutting costs, trimming staff
and finding efficiencies. But Alaska's
structural disadvantage in the competi-
tion for oil industry exploration and de-
velopment dollars is only made worse
by the Alaska government's unstable
natural resource development policies.
As a major oil industry contractor,
ASRC's success and the employment
of many of our shareholders is closely
tied to oil and gas development. In-
deed, the importance of the oil industry
to almost every element of Alaska's
economy cannot be overestimated. We
all have a big stake in our government's
response to this fiscal crisis.
Our elected representatives may
want to keep spending, force "big oil" to
pay the bill and ignore industry pleas for
fiscal sanity. But they cannot long ig-
nore the combined voices of pr' fe
citizens demanding a responsible �-
tion to our current fiscal crisis.
encourage you to contact your state
senator and representative, and make your
views clear on this critical issue.
Page 6 / RESOURCE REVIEW / May 1994
Despite tough times in oil patch, potential
still high in Alaska for major discoveries
(Continued from page 5)
„ording to Pat Pourchot, Executive Di-
rector of Commonwealth North.
"There is no 'silver bullet' which will
address that magnitude of shortfall,"
said Pourchot, a former legislator. "To
date, deficits have been met by spend-
ing one-time windfalls and by liquidat-
ing reserves. It is clear, however, to
most people who have studied the num-
bers that the reserves will soon be gone
and budget cuts alone will not realisti-
cally bridge the 'gap."'
Pourchot recommends holding
state expenditures below inflation and
population growth, phasing out non -
need -based programs, reducing Per-
manent Fund Dividend expenditures,
re -imposing a personal income tax,
establishing consolidated accounting
for existing reserves, continuing to pro-
mote marketing of North Slope gas, the
opening of ANWR and the lifting of the
oil export ban and providing a positive
economic and regulatory climate.
"Actions like reducing dividends and
re -imposing an income tax are politi-
cally unpopular and will be strongly
resisted," Pourchot said. "But if we don't
take tough, prudent steps now, all our
reserves will be gone and far more
Draconian remedies will be necessary
in the very near future."
Realizing Alaska's great potential
Alaska holds more promise and
faces a potentially brighter future than
many Alaskans imagine. New discov-
eries and ongoing development of North
Slope oil and gas resources can con-
tinue to support a healthy economy well
into the 21 st Century.
The potential prize for industry in Alaska
is enormous — literally billions of barrels of
oil yet to be discovered or converted into
reserves in addition to the billions of barrels
already booked as reserves. Alaskans
have an obvious interest in a healthy oil
industry as the state will share the same
wards as industry.
"If you want an idea of the kind of
potential we at BP see on the North
Slope when we look forward to the next
20 years, just think back 20 years and
remember how all of us assessed the
region in the early '70s," said John
Morgan, President of BP Exploration
(Alaska) Inc. "We counted on a total of
about 10 billion barrels of production
from a single field that would last for a
quarter of a century."
Morgan explained that industry has
already produced close to 10 billion
barrels, yet a like amount is still booked
in reserves awaiting production in a
number of other fields. The potential
has doubled over the past decade from
new discoveries in smaller, marginal
fields and from new technology that has
enhanced recovery in maturing fields.
Morgan sees a lot of potential for
the North Slope in the next two de-
cades, including heavy oil commercial-
ization, new production hubs to the east
and west of existing infrastructure and
natural gas production.
"Improved recovery, field exten-
sions, capacity enhancement, explora-
tion, technology and further cost reduc-
tions will yield billions of barrels of new
oil and gas equivalent on the North
Slope," Morgan said.
"One thing is clear; achieving the
potential will require not only hard work
and innovation, but ongoing invest-
ment," Morgan continued. "We should
remember that some 50 percent of the
production we project in Alaska for the
year 2000 comes from investments not
yet made. And particularly in the cur-
rent global environment, the only way
to secure the necessary investment
capital is to compete for it."
International Competition
The competition for exploration and
development dollars is fierce. The world
has been literally opening up. Five
years ago, 85 percent of the world's
undeveloped and yet -to -be -found oil
reserves were in areas inaccessible to
the industry. Like the Berlin Wall, the
barriers have come tumbling down.
New oil provinces are opening in
former Soviet republics, Algeria, Viet-
nam, Venezuela, Nigeria, Russia and
Angola. Each has its unique set of risks
and potential rewards.
"The lack of clarity
on the basis for
paying state taxes
and royalties -- after
more than 16 years
of production on the
North Slope -- con-
tinues to be a major
obstacle in Alaska.
The growing gap
between state gov-
ernment spending
and revenues fuels
our concern and
uncertainty."
- John C. Morgan
BP Exploration (Alaska) Inc.
With falling political barriers, indus-
try is expanding overseas and limiting
the scope of its activities elsewhere.
Companies are becoming increasingly
selective in choosing which projects to
pursue.
ARCO, for example, spent more
money exploring in Alaska last yearthan
on all its international drilling. This year,
however, the company will spend twice
as much overseas than it will in the 49th
state.
If Alaska is to realize its future potential,
industry and the state must heed the reali-
ties of low oil prices, declining production
and a fiercely competitive oil market and
work together to overcome the challenges
they pose.
And if Alaska is to compete for invest-
ment dollars necessary to develop future
potential, clarity and stability in the fiscal and
regulatory climate is imperative to give the
industry confidence to invest, oil executives
stress.
"The lack of clarity on the basis for
paying state taxes and royalties — after
more than 16 years of production on the
North Slope — continues to be a major
obstacle in Alaska," said BP's Morgan.
"The growing gap between state gov-
ernment spending and revenues fuels
our concern and uncertainty."
May 1994 / RESOURCE REVIEW / Page 7
WEAVE LEARNED TO
TAILOR OUR APPROACH
TO BUSINESS
BEING INNOVATIVE IS SIMPLY A f'..RT OF LIFE for the lnupiat family of companies has successfully expanded throughout the United
F.4anios of Alaska's North Slope, 1CV'u V lccunlecd duct success is r11ic11 Suaes and beyond. lircause tailoring our aplrrooch and strruilirug our
measured by how resourceful we are tchen facing a new problem. resources to meet unique challenges is part of our culture. And that's
Maybe that explains why Arctic Slope Regional Corporation's a lesson that continues to serve our clients today.
903
arctic Slope
regional corp.
P.O. Box 129 Barrow, Alaska, U.S.A. 99723
ASRC and its subsidiaries. In harmony with the new economic environment.
Resource Development Council
121 W. Fireweed, Suite 250
Anchorage, AK 99503
ADDRESS CORRECTION REQUESTED
Mayor John Williams
Manager
City of Kenai
210 Fidalgo Ave., Ste. 200
Kenai AK 99611
Bulk Rauc
U.S. Postage
PAID
Anchorage, AK
Permit No. 377
Page 8 / RESOURCE REVIEW / May 1994
Resource Development Council
for Alaska, Inc.
proudly presents its 20th Annual Meeting Luncheon
Thursday, June 2, 1994
12 Noon
Sheraton Anchorage Hotel
Economic Realities:
The Congressional Agenda and Alaska's Economy
• ANWR • Oil Export Ban • Mining Law Reform • Wetlands
• Endangered Species Act • Clean Water Act • Oil Pollution Act of 1990
• Marine Mammals Protection Act • Logging in National Forests
• National Biological Survey/Eco-system Management
featuring
Ted Stevens
Senator
and
Congressman Don Young
Plus:
• Introduction of new RDC officers and board members
• Presentation of student essay contest awards
• Introduction of top Junior Achievement Company
$20 per person RSVP by Tuesday, May 31 at 276-0700
Proud Sponsors of RDC's 20th Annual Meeting Luncheon
Alascom
ERA Aviation, Inc.
Alaska A.F.L. - C.I.O.
EXXON Company U.S.A.
Alaska Helicopters, Inc.
First National Bank of Anchorage
Alaska Power Systems
Hartig, Rhodes, Norman, Mahoney & Edwards
Alaska Visitors Association
Koncor Forest Products
Alyeska Pipeline Service Company
Microware, Inc.
Anchorage Daily News
Municipality of Anchorage
ARCO Alaska, Inc.
National Bank of Alaska
Arctic Slope Regional Corporation
NANA Regional Corporation
Associated General Contractors
Teamsters Local 959
BP Exploration (Alaska) Inc.
Usibeili Coal Mine, Inc.
Cook Inlet Region, Inc.
VECO, Inc.
Chugach Alaska Corporation
Yukon Pacific Corporation
Echo Bay Alaska, Inc.
Alaska legislators voted on
several measures affecting the
state's oil and gas industry in the
1994 session, which adjourned its
regular session May 10 and a special
session May 16. Here's the record of
Their votes. (Pages 4,5)
Division of Oil and Gas says its
oil and gas leasing schedule will
slow somewhat due to new proce-
dural requirements of SB 308, but
that the potential for court -ordered
delays should be lessened.
Also: DNR's Division of Oil and
Gas expects to have regulations
setting up its new Exploration
Licensing Program out soon, and
hopes to have the program up and
.inning next year. (Page 6)
Final compromise version of SB
215gives DEC three out of the five -
cent nickel -a -barrel surtax to
support spill programs, as well as
interest earnings of the 470 fund.
The total of all sources is estimated
to be $25 million in the next fiscal
year, in addition to $13.8 million in
General Fund appropriations to the
agency approved by the legislature
for next year. (Page 3)
The final report on the seven -
ionthAlaska Wetlands Initiative by
federal agencies recommends no
substantive changes to the 404
program. (Page 7)
Published By 7heAlaska Oil & Gas Association
Vol. 1, No. 7 • May 24, 1994
'94 Legislation will make
Alaska.more competitive
laska's state legislators took important steps to make the state more competi-
ve in attracting investments v estments in oil and gas exploration and development.
They passed two measures — a new Exploration Licensing program and an ex-
panded Exploration Incentive Credit program — aimed directly at stimulating
exploration. They passed an important bill making administrative preparations for oil
and gas lease sales more secure from litigation, which makes the state's leasing
program less likely to be disrupted by court -ordered delays. Although it affects oil
and gas producers indirectly, lawmakers approved a new settlement of long-standing
litigation affecting a million acres of state lands once in a mental health land trust.
Finally, they defeated a bill, strongly pushed by Gov. Walter Bickel, that would
end statutes of limits on back -tax assessments. Although this issue is still in the courts
over an administrative interpretation to the same effect, (Continued on Page 7)
Court's decision means much of contested
taxes goes to Constitutional Budget Reserve
he Dept. of Revenue now interprets the Alaska Supreme Court decision on
back oil and gas taxes to require deposit to the state's Constitutional Budget
Reserve after an assessment is made by the department.. What goes into the restricted
state budget fund is the assessment itself, plus any penalties and interest. What goes
to the state's General Fund is what the taxpayer initially claimed was owed, and is
required to be paid when a return is filed. The added amount the state usually claims
in additional assessments is about 5 to 10 percent of what the taxpayer claims,
according to revenue's audit staff. The interpretation covers revenues collected not
only under the state oil and gas production tax, but also the state corporate income
tax as it applies to oil and gas producers. Revenue staff also said the allocation to the
Constitutional Budget Reserve applies to additional revenues (Continued on Page3)
Page 2 - Inside Oil & Gas - May 24, 1994
"470 Fund" reform bill passes, awaits Governor's Signatur,.-'
An amended House Finance version of SB 215, revising the state's Oil and Hazardous Substance Release Response Fund
4 0 Fund passed the Legislature in its closing days. The bill repeals the nickel -per -barrel surcharge and. establishes
(7 )�P � g Y P P g
two new surcharges - a permanent three cents per barrel surtax to fund prevention programs and a two cents per barrel
surtax to fund a $50 million response account. The bill also corrects the accounting mechanism for calculating surcharge
proceeds and expenditures, which will allow the response account to reach $50 million, and directs $35 million of the
estimated $37 million spill reserve balance to the response account. $5 million of the spill reserve was allocated to the
prevention account.
State Affairs (Chaired by Rep. Vezey, R-North Pole) had proposed tighter controls over expenditures from the re-
sponse account; however, the Finance Committee version that passed allows the Dept. of Environmental Conservation (DEC)
free access to use funds from the response account for crude and non -crude spills of any size.
Legislation to reform the "470 Fund" and use of the nickel -per -barrel surcharge was originally introduced last session
by Rep. Joe Green (R-Anch), Oil & Gas Committee Chair. The bill (HB 238) was initially referred to House Resources, chaired
by Rep. Bill Williams (D-Saxman) and never cleared that committee. SB 215 was sponsored by Sen. Mike Miller, (R-North
Pole) Chair of Senate Resources. Throughout debate on the bill, DEC continually stated that it needed at least three cents per
barrel to adequately fund spill -related programs. Revenues on the three -cent -per -barrel surtax will provide DEC about $15.8
million per year. Interest on the 470 Fund related accounts and expected reimbursements to the mitigation account are
expected to give DEC another $9.2 million annually, bringing total funds available to nearly $25 million, compared with DEC's
FY '95 $13.8 million budget approved by the Legislature.
There was general agreement among most groups familiar with the Fund that reforms were clearly needed; however,
there was disagreement about what changes were necessary. Ultimately, compromise legislation was developed but was not
unanimously supported. Sen. Miller, the bill's sponsor, said, "a compromise is something that doesn't make everyone happy."
Industry contended that the Fund was broken and needed to be fixed. Accounting problems created by the statute estab-
lishing the surcharge prevented the Fund from reaching its $50 million cap. By 1993, the industry had paid $115 million in
nickel -per -barrel surtaxes, however the Dept. of Administration calculated the Fund balance at MINUS $13 million. The Fund
also was being drained by out -of -control expenditures. Surcharge revenues were being used to fund 30-40 percent of DEC's
budget. In 1993, after legislation was introduced and attention was focused on previous Legislatures' abuses of the Fund, the
current Legislature undertook efforts to make 470 Fund appropriations more consistent with the original intent of the sur-
charge and ultimately enacted necessary statutory changes.
Key issue in 470 Fund debate: How to use $37 million reserve balance
A key issue involved in the debate on 470 Fund legislation was allocation of the estimated $37 million spill reserve
balance. Industry supported language in SB 215 which allocated the reserve balance to provide initial funding for the $50
million response account. During Floor action on SB 215, amendments were offered in both the House and Senate to split the
spill reserve balance. (Continued on Page 3)
The Alaska Oil and Gas Association is a private, non-profit industry trade association. Its members are companies engaged in oil and gas
exploration, production, refining and marketing activities in Alaska. AOGA serves as a forum for its members to coordinate common public and
government affairs efforts.
TheAOGA newsletter, Inside Oil and Gas, is an informational publication published twice monthly, intended to update and advise its membe.
and interested individuals on issues of interest. She views and opinions expressed in the newsletter do not necessarily reflect the views or opinions of
individual AOGA member companies. Unless specifically stated as such, no opinions, views or positions in the newsletter are AOGA opinions, views or
positions. Alaska Oil and Gas Association, 121 West Fireweed, Suite 207, Anchorage, Alaska 99503. Phone: (907) 272-1481. Tim Bradner, Editor.
Page 3 • Inside Oil & Gas • May 24, 1994
Public participation works: Legislature cut DEC's draw on 470 Fund when criticisms were made
State "470" Fund; DEC Annual Expenditures
3.5
Point At Which DEC Criticized $33,204,500
For Draws On 470 Fund.
3
Ca e, ,•
O� ' x 'a 'i �Yar u ► i y $20,706,000
2 .snwY rr?!• �iA yi: e �" ✓d�/�:4 ifs:
940,000
■� .t: a .;';;,..k io:,. ,,g'. y;...'{'',,. ^, ..
1.5 ,Y „
,810,800 s .
$4,371,800
FY 90 FY 91 FY 92 FY 93 FY 94
SOURCE: Dept. of Environmental Conservation
How to split $37 million: How they voted
(Continued from previous page) In the Senate, Jay Kerttula (D-Palmer) proposed that half of the reserve balance be
Alocated to the prevention account to fund DEC programs and half go to the $50 million response account. Voting to
approve the amendment were Senators Adams, Donley, Duncan, Ellis, Kerttula, Lincoln, Little, Salo and
Zharoff. Opposing the amendment were Senators Frank, Halford, Jacko, Kelly, Leman, Miller, Pearce, Phillips, Rieger, Sharp
and Taylor.
Rep. Curt Menard (D-Wasilla) offered an amendment to split the reserve balance 60/40, with 60 percent going to the
prevention account for DEC programs and 40 percent to the $50 million response account. Representatives voting to
approve the amendment were: Brice, Brown, Carney, Davidson, Davies, B.Davis, Finkelstein, GrussendoK
Hoffman, Mackie, Menard, Moses, Nicholia, Nordlund, Sitton, Ulmer and Willis. Representatives opposing the
amendment were: Barnes, Bunde, G.Davis, Foster, Green, Hanley, Hudson, James, Kott, Larson, MacLean, Markin, Mulder,
Navarre, Olberg, Parnell, Porter, Sanders, Therriault, Toohey, Vezey and Williams. As passed by the Legislature, SB 215
provides that $35 million of the reserve balance be allocated to the $50 million response account and $5 million to the
prevention account for DEC programs.
Revenue says it is now getting its tax audits and assessments done more quickly
(Continued from Page 1) collected for past years after the constitutional reserve provision in the constitution became
effective in 1990. That covers the vast bulk of any collections or settlements for past tax years now pending. This money, if and
when it is received, will go to the Constitutional Budget Reserve. The department also said it is getting its audits and assess-
ments done more quickly, and now has some assessments issued for tax years 1990 and 1991.
It is taken for granted in Juneau that future withdrawals from the restricted constitutional budget fund will be necessary as
'he state struggles with continued revenue declines. Withdrawals need a 3/4 vote of lawmakers. This means the minority must
.,gn on with the majority to make the withdrawal. This year, the Democratic minority's agreement with the Republican -led
majority was tied to a committment of increases in spending for education. The legislature virtually emptied the Constitutional
Budget Reserve this year (see Pg. 8) but the reserve will increase if and when future settlements of back tax issues are made.
Page 4 • Inside Oil & Gas • May 24, 1994
Keeping Alaska Comt)c
HB 1999 OIL & GAS
EXPLORATION LICENSES
Creates New Type Of Exploration
Program On State Lands
Votes In House:
qYeas: 31
Barnes, Brice, Bunde, B. Davis, G. Davis,
Foster, Green, Grussendorf, Hanley, Hudson,
James, Kott, Larson, Mackie, MacLean, Martin,
Moses, Mulder, Navarre, Nordlund, 01berg,
Parnell, Phillips, Porter, Sanders, Sitton,
Therriault, Ulmer, Vezey, Williams, Willis.
9FNays: 5
Brown, Carney, Davies, Finkelstein,
Menard.
Excused: 1
Nicholia.
Absent: 3
Davidson, Hoffman, 'Toohey.
Votes In Senate:
10 Yeas: 15
Donley, Frank, Halford, Jacko, Kelly,
Leman, Lincoln, Little, Miller, Pearce, Phillips,
Rieger, Salo, Sharp, Taylor.
ofNays: 4
Adams, Duncan, Kerttula, Zharoff.
Excused:1
Ellis.
SB 151, EXPLORATION
INCENTIVE CREDITS
Expands Existing State Exploration
Incentive Credits
Votes In House:
0 Yeas:39
Barnes, Brice, Brown, Bunde, Carney,
Davidson, B. Davis, G. Davis, Finkelstein, Foster,
Green, Grussendorf, Hanley, Hoffman, Hudson,
James, Kott, Larson, Mackie, MacLean, Martin,
Menard, Moses, Mulder, Navarre, Nicholia,
Nordlund, 01berg, Parnell, Phillips, Porter,
Sanders, Sitton, Therriault, Toohey, Ulmer,
Vezey, Williams, Willis.
IDavies. Hays: 1
Votes In Senate:
q Yeas: 14
Donley, Frank, Halford, Jacko, Kelly,
Leman, Little, Miller, Pearce, Phillips, Rieger,
Salo, Sharp, Taylor.
If Nays: 6
Adams, Duncan, Ellis, Kerttula, Lincoln,
Zharoff.
SB 215 470 FUND REFORM
Reforms $50 Million Spill Emergent
Fund, Nickel -A -Barrel Tax
Votes In House:
-# Yeas: 24
Barnes, Bunde, G.Davis, Foster, Green,
Hanley, Hoffman, Hudson, James, Kott, Larsoi
Martin, Moses, Mulder, Nordlund, 01berg,
Parnell, Phillips, Porter, Sanders, Therriault,
Toohey, Vezey, Williams.
Nays: 12
Brice, Brown, Davidson, DavieF ")avis,
Finkelstein, Grussendorf, Mackie, Nicholia,
Sitton, Ulmer, Willis.
Excused: 2
MacLean, Navarre.
Absent: 2
Carney, Menard.
Votes In Senate:
pYeas: 11
Frank, Halford, Jacko, Kelly, Leman, Mil
Pearce, Phillips, Rieger, Sharp, Taylor.
Tj Nays: S
Donley, Duncan, Ellis, Kerttula, Lincoln
Little, Salo, Zharoff.
Excused: 1
Adams.
Page 5 • Inside Oil & Gas • May 24, 1994
tive...How TheyV(Oted,•
3 308, LEASE SALE PROCEDURE
'ghtens Administrative Procedures
n State Lease Sales, Land
ispositions
otes In House:
i Yeas: 24
Barnes, Brice, Bunde, B. Davis, G. Davis,
,ster, Green, Hanley, Hudson, James, Kott,
Lrson, Mackie, Martin, Mulder, 01berg,
Lmell, Phillips, Porter, Sanders, Therriault,
)ohey, Vezey, Williams.
Tj Nays: 16
Brower, Carney, Davidson, Davies,
nkelstein, Grussendorf, Hoffman, MacLean,
enard, Moses, Navarre, Nicholia, Nordlund,
[ton, Ulmer, Willis.
otes in Senate:
pYeas: 12
Frank, Halford, Jacko, Kelly, Leman, Miller,
Farce, Phillips, Rieger, Salo, Sharp, Taylor.
9F Nays: 7
Adams, Duncan, Ellis, Kerttula, Lincoln,
ttle, Zharoff.
SB 322, LEASE SALES
SCHEDULE & DELAY
Changes 5-Year Sale Schedule
When Sales Are Delayed
Votes In House:
p Yeas: 37
Barnes, Brice, Brown, Bunde, Carney,
Davies, B. Davis, G. Davis, Finkelstein, Foster,
Green, Grussendorf, Hanley, Hoffman, Hudson,
James, Kott, Larson, Mackie, Martin, Moses,
Mulder, Navarre, Nicholia, Nordlund, 01berg,
Parnell, Phillips, Porter, Sanders, Sitton,
Therriault, Toohey, Ulmer, Vezey, Williams,
Willis.
Excused: 2
Davidson, Menard.
Absent: 1
MacLean.
Votes In Senate:
Q Yeas: 18
Donley, Duncan, Ellis, Frank, Halford,
Jacko, Kelly, Kerttula, Leman, Little, Mille
Pearce, Phillips, Rieger, Salo, Sharp, Taylor,
Zharoff.
Excused:1
Lincoln.
xcused:1 Absent: 1
Donley. Adams.
SB 377, TAX STATUTE OF LIMITS
Would Eliminate Statute Of Limits On
Past Tax Assessments
Votes In House:
Yeas: 18
Brice, Brown, Carney, Davidson, Davies, B.
Davis, Finkelstein, Grussendorf, Hoffman,
Larson, Menard, Moses, Nicholia, Nordlund,
Sitton, Ulmer, Williams, Willis.
•'0
Barnes, Bunde, G. Davis, Foster, Green,
Hanley, Hudson, James, Kott, Mackie, Martin,
Mulder, Navarre, 01berg, Parnell, Phillips,
Porter, Sanders, Therriault, Toohey, Vezey.
Excused: 1
MacLean.
Votes in Senate:
Yeas: 16
Adarns, Donley, Duncan, Ellis, Frank,
Halford, Kerttula, Leman, Lincoln, Little, Mille;
Phillips, Rieger, Sharp, Taylor, Zharoff.
qNays:4
Jacko, Kelly, Pearce, Salo.
Page 6 • Inside Oil & Gas • May 24, 1994
SB 308 provisions may cause minor delays to Sales 79 and 80
Sfate Division of Oil and Gas officials say new provisions of Senate Bill 308, the bill clarifying and tightening oil and gas -
lease sale and land disposition procedures, may require State Sale to be delayed from its July sale date a
P P � Y q 79 Y J y , and may
also affect Sale 80, now scheduled for November. While SB 308 may have effects of slowing the state's leasing schedule due to
added requirements for public notice and analyses of issues, the good news is that the schedule, and leases subsequently
issued, should be less vulnerable to litigation and delays, said Jim Eason, division director.
Sale 79 involves state onshore and offshore lands near Yakutat, in the Gulf of Alaska. Sale 80 is east of Prudhoe Bay on the
North Slope, near the northwest corner of the Arctic National Wildlife Refuge. The division is now in the middle of prepara-
tions for Sale 79, but with the passage of SB 308, decisions must be made as to what aspects of the new legislation apply to the
sale. Originally, 818,000 acres were included in Sale 79. With acreage removed due to objections by fishermen, that is now
down to 522,000 acres. The Shaviovik sale involves some 500,000 acres, and is an area offered before but not leased. It is
near where BP is drilling its Yukon Gold prospect.
SB 308, intended to clarify lease sale procedures and hopefully end the repeated adverse court decisions and delays from
litigation, faced initial opposition within the state administration, concerns from the oil and gas industry and the environmen-
tal community and substantial opposition in the legislature. Much of the credit for its passage goes to DOG's Jim Eason, who
negotiated a compromise position with all parties to get the bill through.
Passage of HB 322 means Sale 78 can proceed — if the state wins!
he legislature's passage of HB 322 is good news for Sale 78, the Cook Inlet sale enjoined by a state Superior Court _
judge until the September trial on issues raised by environmental and fishing groups. Before the bill passed, the sale
would have slipped to the end of the state's five-year leasing schedule had it not been held within 90 days of the quarter in
which it was scheduled. That quarter was the first in 1994, which meant that Sale 78 had to be held by June 30, at the latest.
With the trial set for September, the sale seemed doomed. HB 322 eliminates that provision in law, which means the sale can
be held following the trial — if the state wins, of course. Meanwhile, by June 30 state officials must ask the five companies
who submitted bids and left their bids (and checks) for Sale 78 on file with the state if they wish to still leave the bids in.
When the sale was enjoined, June 30 was the drop -dead date (under the previous law) and the state's offer to hold the bids
expires on that day.
DOG hopes to have Exploration Licensing up and running next year
neanwhile, Division of Oil and Gas officials hope to have the new Exploration Licensing program up and running by
ext ear, and that the first area the state hopes to see the system used in is the North Slope foothills area. That's
Y � P � P
partly because a Best Interest Finding for oil and gas leasing has already been done in the area (for state Sale 57), explains
Ken Boyd, DOG's deputy director. In an entirely new area, preparation of Best Interest Findings, particularly under the new
provisions of SB 308 passed by the legislature this year, will take some time.
Meanwhile, Boyd said the division was well along in developing regulations for Exploration Licensing, and hopes to have
an initial draft ready soon for review. Regulations involve the details of how licensing will work, how it will fit into the state's
five-year leasing schedule, what actual procedures are used, who signs what paper, who is notified, whether single or multiple
applicants are allowed, whether the state as well as industry can nominate an area, and other issues. Boyd said the division
hopes to see the draft out for formal public review as quickly as possible, and then to the State Attorney General's office for
legal review.
Page 1 • Inside Oil & Gas • May 24, 1994
Wetlands `Initiative': After months of effort, no real changes
is out - and "disappointing" according to many of the Alaska Stakeholders who participated in the seven -month Alaska
IWetlands Intitiative. The summa
ry report, issued by the EPA, Corps, National Marine Fisheries Service and U. S. Fish and
Wildlife Service, is intended to detail "actions that are being taken to ensure regulatory flexibility in protecting Alaska's
wetlands." But Stakeholders reviewing the report found no substantive changes to the 404 program recommended.
Alaska Division of Governmental Coordination Director Paul Rusanowski said the state is disappointed with the Clinton
Administration's response to concerns raised during the Roundtable meetings and the lack of substantive changes to the 404
process. "We participated in good faith in this process and believe the federal agencies did not exercise the same good faith in
considering Stakeholder concerns and identifying solutions. The document purports to recognize the concerns expressed by
Stakeholders, when all it really does is maintain the status quo." Rusanowski said th State is preparing a response to the
Summary Report.
Along with the report, the EPA and Corps issued two policy statements regarding (1) implementation of flexibility in
mitigation requirements, and (2) application of the no -net -loss of wetlands goal in Alaska. A review of these statements
reveals that they merely elaborate on terms such as "practicability" and "flexibility" currently found in the Section 404 (b) (1)
guidelines. The position of the agencies appears to be that there now exists sufficient flexibility in the federal program to take
into account unique circumstances in Alaska. But if this is the case, several stakeholders have wondered aloud, why did
we just spend seven months identifying problems in these programs? Despite the overwhelming sentiments among
Stakeholders at the roundtable meetings (and consensus among participants in the January 11, 1994 Fairbanks meeting) that
the national goal of "no overall net loss of wetlands" will not work in Alaska, the policy statement on application of the goal
only recognizes that it will not always be achieved on a permit -by -permit basis. But no clarification is provided on how it will
be achieved. Becky Gay, Executive Director of the Resource Development Council, said "We still do not know how they will
implement it — we just know how they won't implement it."
In the report's conclusion, the agencies note: "Perhaps the greatest result of the Alaska Wetlands Initiative is the commit-
ment by the Federal agencies to work more effectively ...to improve the Section 404 program in a manner that makes this
program more fair, flexible, and effective." Time will tell whether this commitment carries through to permit decisions.
DEC may delay carcinogen reduction plan in water quality standards
ndications are that DEC is very close to adopting the amendments to the state's Water Quality Standards, bringing to a
I close the two-year effort
y e o on Phase I of the Triennial Review. Reports are that the commissioner requested an opinion
from the Department of Law on selected provisions contained in the final draft and that the attorneys have tentatively recom-
mended that the requirement for a Carcinogen Reduction Plan be deferred to Phase H which begins this summer. The com-
missioner is expected to advise members of the Water Quality Standard Advisory Group this week. Following adoption, the
regulations will be submitted for formal legal review, which DEC hopes will be completed quickly, given the Department of
Law's involvement during development of the regulations.
1994 legislature's record: Encouraging new exploration, investment
(Continued from Page 1) the bill was viewed as an unfriendly signal to the industry. The bill was passed by the State Senate,
but the State House refused to act on the measure before the legislature adjourned May 10. Gov. Rickel called a special
session following the regular session, and the bill was narrowly defeated in the House, 21-18 on final reconsideration May 16.
"he urgency of the governor's action was prompted by oral arguments scheduled May 18 before the Alaska Supreme Court on
a tax case filed by Exxon over the Dept. of Revenue's interpretation of the statute of limits provision. There are differing
opinions on what would have happened if the Legislature had passed the retroactive tax bill in the face of the pending Su-
preme Court decision.
What they spent, and what's left in the till
State legislators approved $2.4
15
SpendinWRevenue Deficits
Cash Reserves
billion in spending for Fiscal Year
1995, including a $2.3 billion
3
K
operating budget and a $99.9 million
capital budget. Revenues for FY 1994
M
w ..
C01ts1t41tl01tal
are estimated at $1.6 billion. The
�
—
deficit, combined with the current-
0
2
Flow v
year FY 1994 deficit caused lawmak-
$1.63
�1,69
.7
Willis
ers to draw down state cash reserves
C
1 S
BMW
4
N
by $1.6 billion. When the next
m
'
, :
Eang gWgd pmm
legislature convenes in Juneau next
Aft
sra
January, the state will have some $1.2
x
t.
in cash reserves left, $1.1�
` '
$138 Million Banned
For Mental Maltb 1nn10
billion of it in the Permanent Fund
.5
-
f' Litiptiensettlement
F
earnings reserve, an account holding
s100 Million
earnings of the Permanent Fund that
Q
have accumulated over the years.
SOURCE: Legislative
Finance Division
Spending Revenue
Spending Revenue
.,:.
o�
e,ga� a�,er ��4
ess
r-1
[J
217 Second Street, Suite 200 ■ Juneau, Alaska 99801 ■ Tel (907) 586-1325, Fax (907) 463-5480
Legislative. Bu'lle''fin..'.
... . ... .. ...
AMIL Efforts Rewarded
MA/SRS Cuts Held to 100% -- OMA Revision Passes
Sr. Citizen/Disabled vet. Exemption Partially Funded
Mental Health Controversy on Way to Settlement
The Special Session of the 18th Legislature adjourned
on Monday evening, May 16 — nearly a week after the
regular session drew to a close and with few
spectators or fanfare. Before they left, legislators
passed all the things included in the Governor's callto
a special session, except the bill (SB 377) that
included changes in the oil tax statute of limitations.
The bill did have two full days of hearings (invited
testimony only) and was voted on a total of 3 times
on the floor (3rd reading, reconsideration, vote to
rescind action). Whether the Governor will call
legislators back again to deal with this issue remains
to be seen -- the Supreme Court hearing on Exxon's
challenge of the state position began today.
Administration officials say $3 billion in overdue,
uncollected taxes is at stake.
As reported in the press and in AML's "Legislative
Update" of last week, the legislature had not dealt
with several key issues as midnight on May 11 drew
closer. Governor Walter Hickel then called a special
session scheduled to begin at 1030 p.m., before the
regular session was scheduled to end. The special
session proclamation included a limited number of
topics, including the operating and capital budgets,
reappropriation and supplement appropriation bills,
the Open Meetings Act revision, the Mental Health
Lands Trust settlement, required changes to statutes
governing child support enforcement, and the
extension of the statute of limitations on oil tax
collections. The statute of limitations issue had
caused much of the delay during the last couple of
weeks of the session as House Speaker Ramona
Barnes had tried to kill SB 377 by referring it to four
committees and then had gotten involved in, as she
said, "facilitating" discussions/negotiations between the
administration and the oil companies.
By the end of the regular session, Barnes had been
convinced that something might need to be done, but
preferred to have the legislature finish its regular
business and then return at a later date to deal with
the statute of limitations issue. The Governor's
declaration of an immediate special session put an end
to those plans and after extended discussions of the
constitutionality of the proclamation, the status of
legislation carrying over from the regular session, and
other issues, both houses continued in special session
Member of the National League of cities and the National Association of Counties
through Monday. The Senate, which had passed SB
377 earlier, as well as the other bills on the limited
special session agenda, held on to the
reappropriations and supplemental appropriations
bills until the House seemed to be almost done with
its work and then passed them quickly before
adjourning. This forced the House to accept the
Senate versions of the bills as well as to finally, after
much soul searching by minority members, pass a
version of the operating budget that called for using
a portion of the Constitutional Budget Reserve
(CBR).
At session end, both House and Senate minorities
wielded a lot of influence, as their votes were needed
for a 3/4 majority to approve expenditure of funds
from the CBR. This worked to AML's favor, as the
House minority put passage of the Open Meetings
Act revisions on its "short list" of "must -have" bills and
the Senate minority included funding for Municipal
Assistance and State Revenue Sharing at no lower
than a 10 percent cut on its list. Both of these AML
priorities ultimately passed, as will be discussed below.
The 1994 session saw some major shifts in policy
regarding resource development, the nature of the
public process in shaping development policy, and the
role of the state. Several provisions that would have
limited municipalities' authority were proposed and an
awareness of the impact of legislation on municipal
operations and cost was not common. A handful of
legislators, however, understood the issues from the
municipal point of view and were willing to go to bat
for local governments. Many thanks to those
indsviduals.
On balance, this was a successful legislative year for
AML and its members — not an easy one, but one
with hard battles and well -deserved wins.
AML President John Torgerson, from the Kenai
Peninsula Borough Assembly, spent several weeks in
Juneau and became a well -recognized presence in the
Capitol. The AML Board and Legislative Committee
worked hard when they met during the session in
Juneau and followed up with calls and faxes on
specific issues and in response to "alerts" from the
staff. Several of the contract lobbyists representing
municipalities worked closely with AML this year, and
it seemed that all of us benefitted from the
cooperation.
Page 2
Most important, however, were the activities of
AML's municipal members — the personal contacts,
responses to requests for information, participation in
teleconferences, faxes and letters, and reminders to
their legislators that their constituents at home
understood, and would remember, that what they did
in Juneau had a local impact. Many thanks to all —
The impact of this year's action to trim the operating
budget remain to be seen, but undoubtedly local
governments, and private citizens, will be affected by
the cuts in such departments as Corrections, Public
Safety, Fish and Game, and Health and Human
Services. Local officials have already noted the
cumulative impact of cutbacks during the last few
years, and it's likely that this year's cuts are far into
the "meat" of programs and services, there being no
"fat" left most places. Legislators made some hard
decisions, but did not take on the real issue — the
generation of additional revenues.
AML members need to focus some attention on the
future of government in our state — how will it be
financed, and what should it be doing? The League
plans to continue this summer with its examination of
the Municipal Assistance and State Revenue Sharing
programs — how municipal aid programs should be
structured and how they can and should be financed
What other issues does the League need to discuss
and take a stand on?
NWSRS CUTS HELD TO 1091c -- SENATE
MAJORITY STANDS FIRM ON FUNDING
Loral government won a major victory when the
legislature adopted FY 95 funding for the State
Revenue Sharing and Municipal Assistance programs
in two different bills — and held the cat to 10 percent
Instead of the Governor's proposal of a 50 percent
cut!!
The Operating Budget (HB 370) included funding for
MA/SRS at the 15 percent cut level. Representing
the Senate minority, Budget Conference Committee
member Senator Jay Kerttula took a strong stand on
behalf of local governments, however, and informed
the committee that the Senate minority would not
accept anything more than a 10 percent cut. Funding
for these essential programs of municipal aid was on
his caucus's "short list" of demands that determined
AA& L4gisladrs Bul din #E18.18
May 18, 1994
their willingness to vote to expend funds from the
Constitutional Budget Reserve (CBR). A 3/4 vote is
needed to appropriate money from the CBR, and
these funds were being depended on to balance the
FY 95 budget, so the minority caucuses in both
houses were in very strong negotiating positions.
In response to the ultimatum from the minority, the
Senate Finance Committee, under the leadership of
Senator Drue Pearce, included an additional $3.636
million for MA/SRS in the reappropriation budget
(HE 441). The source of the funds is unspent or
FY 94
Funding ..
Governor's
Proposed
FY 95
(50% Cut)
unobligated funds from old capital projects (from FY
77 - FY 89 and FY 90 if needed), plus $800,000 from
the Senate leadership and Finance Committee "roll-
over" accounts. The legislative roll-over moneys were
added in a floor amendment as the reappropriation
bill passed in the last minutes of the special session.
They were added as "insurance" against there not
being adequate funds available for reappropriation.
Whether it is enough insurance may be a question,
since several state agencies have expressed concerns
about the "raid" on unexpended capital appropriations
and may either 1) act to obligate the funds before the
effective date of the act or 2) encourage the Governor
to veto the reappropriation item.
Municipal Assistance/State Revenue
Sharing Funding..
Total FY '95'
Appropriation
by Legislature
Operating.
Budget - - FM 370
(15% Cut)
Reappropriations. .
Bits (HB -441)..
(adds 5%` funding)
Funding "Saved" by
Efforts of AML and
Municipalities
654499600'
619913,500
. $. - 3,636,100.::: .
$ `-::28,727,800
AA& LegiaJathw Bufte n #18-18
May 18, 1994 Page 3
CONFERENCE CS FOR HB 254
OPEN MEETINGS ACT CLARIFICATIONS
• Agency materials shall be made available at teleconferences if practicable. The votes shall be
conducted by roll call.
• Regarding executive sessions: adds "the motion to convene in executive session must clear)
and with specificity describe the subject of the proposed executive session without defeating
the purpose of addressing the sub1ect in private. Action may not be taken in executive session,
except to ,give direction to an attorney or labor negotiator regarding the handling of a specific
legal matter or pending labor negotiations.
• Adds new subject allowed to be discussed in executive session: (4) matters involving
consideration of government records that by law are not subject to public disclosure.
• Act does not apply to (additional items): (6) staff meetings ... including meetings of employee
groups established by the Board of Regents of the University of Alaska...
(7) ...attendance at national, state, or regional conferences as long as no action or business
of the governmental body takes place.
• Notice of meetings shall be given by print or broadcast media and shall be posted.
• Allows action taken in violation of the Act to be voidable by the court. A lawsuit must be filed
within 180 days after the date of the action. A member of the body may not be named
personally. A governmental body that violates the act may cure the violation by holding another
meeting in compliance with notice and other requirements. The section lists items for the courts
to consider in voiding an action.
• New definitions: governmental body, meeting, and public entity.
Governmental body - assembly, council, board, commission, committee, or other similar body
with authority to establish policies or make decisions for the public entity. Advisory bodies are
covered by the Act except for subsection (f) - which deals with voiding the action taken.
Meeting - (A) a gathering of more than three members or a majority of members (whichever
is less). (B) a prearranged gathering to consider a matter if the body is advisory.
Public entity - does not include the court system or legislative branch of government.
• The open meetings act shall be construed narrowly.
• Sets up a new committee made up of four legislators and two Ethics Committee members to
establish guidelines for the legislature. The Legislature shall vote on the the new guidelines
within 45 days of the next legislation session.
AML — and many of you individually — fought hard
for this victory. A 10 percent cut level is not great,
but it is significantly better than the 50 percent cut
the Governor had proposed in his initial budget.
THE LEGISLATURE APPROPRIATED NEARLY
$28 MILLION MORE FOR THESE ESE TWO
PROGRAMS THAN THE GOVERNOR HAD
RECOMMENDED. EACH OF YOU WHO HELPED
TO ACH E'VE THIS SUCCESS SHOULD BE
PROUD!!
Don't give up on this issue — contact Governor
Hickel and express your support for both parts of the
legislature's appropriations for Municipal Assistance
and State Revenue Sharing. Let's make sure our
"victory" is complete. Decisions on municipal
interests do not lie solely with the legislature — the
Governor could still veto part or all of the funding
appropriated for MA/SRS by the legislature! WRITE,
FAX, OR CALL GOVERNOR HICKEL ABOUT
THIS ISSUE NOW —
Special thanks are due to Senators Kerttula, Adams,
and Duncan, who took the lead in the minority's
support of local interests. Other senators also deserve
thanks for recognizing the importance of these funds
to local governments. Senator Pearce sponsored the
amendments to the reappropriation bill to add back
the 5 percent cut by the Conference Committee and
Senator Kelly was a strong advocate for local interests
when the Senate adopted its version of the budget
and on other issues. In the House, Representatives
Hoffman, Brown, and Grussendorf supported lower
cut levels in the Finance Committee.
OMA REVISIONS PASS -- LAST-MINUTE
NEGOTIATIONS BRING SUCCESS
In the last half hour of the regular session, both the
House and the Senate agreed to accept the work of
the Conference Committee on AML's top -priority
piece of legislation, revision of the Open Meetings
Act. Success was the result of the hard work of
many, including those of you who contacted your
legislators about this issue regularly during the
session. AML staff, President Torgerson, and
Legislative Committee Chair Tom Boedeker worked
closely with a group of concerned individuals and
organizations to develop an acceptable compromise
AML Lgitkdm Ba"a #t18-18
May 18, I M
that addressed municipal concerns. Participants in the
working group were representatives of the League of
Women Voters, University of Alaska, Alaska Press
Club, and Association of Alaska School Boards.
Senator Suzanne Little worked closely with the group
and was a valuable member of the conference
committee. Representative Jerry Mackie was also a
strong supporter of AML's position on the conference
committee.
An outline of the impacts of the new legislation is on
page 4.
Please let Governor Hickel know that you encourage
him to sign HB 254.
FUNDING FOR MANDATED TAX
EXEMPTION AT $1.16 MILLION --
ESTIMATED AT 7% OF NEED
As noted in an earlier Legislative Bulletin, in final
Senate Finance Committee consideration of the
Operating Budget, Senator Jay Kerttula added $2
million for the Senior Citizens/Disabled Veterans
renters' rebate and homeowners' property tax
exemption programs. The Conference Committee
reduced this amount to $1.5 million. Of this, $1.16
million will be distributed to municipalities to partially
offset the cost of the state -mandated property tax
exemption program. It will reimburse approximately
7 percent of the cost of the program to municipalities.
Governor Hickel had included no funding in his
budget for this program, but this year had been
unwilling to promote legislation that would have
removed the mandate. Please include support of the
funding for this program in your comments to
Governor Hickel and urge him not to veto it.
MENTAL HEALTH SETTLEMENT
LEGISLATION PASSES --
END OF DISPUTE MAY BE IN SIGHT
The State of Alaska will go into court this week to
ask for dismissal of the Mental Health Lands Trust
dispute, based on passage of HB 201 (and the
appropriation in HB 371) by the legislature this last
week.
Page 5
The legislation, supported by AML, includes a
settlement package, which includes reconstitution of
the Mental Health Lands Trust, portions of which
have been disposed of by the State since 1978. Land
that has already been disposed of will be replaced by
other parcels, and settlement will free up both private
landowners and municipalities that have been unable
to make use of their (former Trust) lands because of
a court order. HB 201 also includes an "incentive
package" that will give the mental health community
some things it has wanted, including a separate
Mental Health Trust Authority to advise on and
operate mental health programs and manage a cash -
based trust, if the plaintiffs agree to the settlement by
December 15, 1994. A cash trust of $200 million (to
be funded from the Constitutional Budget Reserve
and managed as part of the Permanent Fund) is also
part of the incentive package.
If the plaintiffs do not drop their complaints prior to
December 15, the land settlement will continue, but
the incentive package will be dropped. A one-time
45-day extension may be put into place at the option
of the Governor. Lands in the Trust holdings will be
managed by a separate group of resource managers
located in the Department of Natural Resources.
Plaintiffs' attorneys generally considered this legislative
solution as acceptable, not what they would have liked
to have, but better than previous process -based
approaches.
Three municipalities -- Anchorage, Kenai Peninsula
Borough, and Mat -Su Borough -- gave up land as
part of the reconstitution land package. They will be
allowed to reselect replacement lands within two
years, and DNR Commissioner Harry Noah, in
response to a question asked by Representative Kay
Brown at the request of AML, went on record that he
would direct the department to expedite those
reselections. Mayors of those boroughs should expect
a letter from the Commissioner to that effect.
Pair 6
EDUCATION FORMULA/DEBT
REIMBURSEMENT FULLY FUNDED
As reported earlier, the 1994 legislature agreed to tap
the Constitutional Budget Reserve on behalf of FY 94
and FY 95 education budgets. The foundation
formula was fully funded for FY 95 at the $61,000/
instructional unit level (Governor had proposed no
increase in total funding from FY 94), single -site
schools received their additional funds, and the school
construction debt reimbursement was also fully funded
by provisions of HB 505 (Chapter 14, SLA 94).
CAPITAL BILL INCLUDES
FUNDING FOR MATCHING GRANTS,
WATERISEWER PROJECTS
SB 363, the FY 95 Capital Budget, was the slimmest
in recent years, totalling less than $100 million in
general funds. The Community Capital Matching
Grants program, which provides grants to
communities for projects they identify and help to
fund. was funded at $20 million, the same as last year.
Water and sewer projects received a significant
portion of the funds, and federal funds are also
expected for rural Alaskan sanitation projects.
OTHER SUCCESSES
Assured wider investment options for AML
Investment Pool and, thus, better return on
investments for members of the Pool by passage
of HB 450.
Protected right of municipalities to control signs
within their limits by defeating an amendment to
HB 367 that would have limited municipalities
rights to do so for certain types of signs. Bill
passed -
Preserved municipalities' power to tax alcoholic
beverages by defeating amendments to SB 372
that would have prohibited municipal taxation of
liquor.
Protected municipalities' share of capital
matching grants funds by working against a bill
(HB 393) that would have expanded the number
AML Le Wadvv BuRaiw *18-18
May 18, 1994
of unincorporated communities eligible for grants
at the expense of incorporated local governments.
■ Preserved municipalities' access to Permanent
Fund dividend information by protesting limits
proposed in HB 392.
■ Supported successful expansion of municipal
authority to tax by working with sponsor of HB
397, which raises limit on ad valorem taxation by
second class cities from 5 to 20 mills.
NOT SO SUCCESSFUL
■ Failed to defeat, or convince Governor to veto,
HB 406, which prohibits municipal taxation of air
passenger tickets or air cargo. However, with the
help of some stalwart AML supporters, we did
make this enough of an issue that the Governor
did not sign the bill, but let it become law
without his signature. AML fought on the
grounds of it being at best an unnecessary
duplication of federal law and at worst an
unwarranted restriction on the ability of
municipalities to raise revenues locally.
■ Failed to gain passage of HB 398, which would
have made tidelands available to municipalities.
AML had a resolution in favor.
■ Failed to prevent passage of SCR 39, a resolution
calling for a statewide vote on a constitutional
amendment that would guarantee an individual's
right to keep and bear arms and prohibit the
state or any political subdivision from infringing
on that right. AML's Policy Statement includes
opposition to such a measure.
OTHER LEGISLATION PASSED
NOTE The Second Session of the 18th Legislature
passed 196 bills and resolutions, many of which may
have some impact on the operation of local
government. The ones noted here (and above) are
among them, but other bills may also affect local
governments in one way or another. If you need
more information on a specific bill or a list of all
bills that passed, contact your local Legislative
Information Office or call AML at 586-1325. Except
AA& L *iadw Ba"n #18-18
May 18, 1994
as noted, these bills are awaiting the Governor's
signature.
HB 2- Drug testing for school bus drivers.
HB 259 - Land grant for Lake & Peninsula Borough.
HB 221- Workers comp. for firefighters participating
in authorized training activities.
HB 263 - Optional municipal tax exemption for
certain personal property.
HB 306 - Optional municipal tax credit for Kenai
River habitat protection.
HB 319 - Alaska Police Standards Training Fund.
HB 347 - State long-term planning.
SB 33 - State and local emergency planning.
SB 44 - Civil liability for skiing accidents.
SB 164 - Municipal incorporation/reclassification/
dissolution; revisions of laws administered by Local
Boundary Commission.
SB 215 - Restructuring of "470 fund" and "nickel a
barrel" tax on oil for spill prevention and response.
SB 238 - Coastal zone management procedures.
SB 240 - Optional municipal tax exemption for
student housing.
SB 303 - Uniform voter registration system ("Motor
Voter" bill).
SB 308 - Administrative action re land/resources/
Property
SB 312 - School construction grant terms.
SB 330 - Water/sewer grants.
Page 7
NEWS NOTES
State Primary on August 23
Contrary to information included on the 1994
Municipal Calendar, the state primary election will be
held on Angnst 23, 1994.
Legislative Steering Committee, Board,
Conference of Mayors Schedule September
Meetings
In an effort to bring together a core group of local
government officials to help shape AML policy
development, particularly with regard to the future of
the State Revenue Sharing and Municipal Assistance
programs, AML President John Torgerson, Legislative
Committee Chair Tom Boedeker, and Alaska
Conference of Mayors (ACoM) President Donald
Long have scheduled a series of meetings in Homer in
early September.
The Legislative Steering Committee meeting will begin
on Wednesday, September 7, and go through
Thursday morning. A joint discussion of legislative
priorities and recommendations (to include all
interested persons) will be on Friday morning, and the
AML Board of Directors will begin its meeting on
Friday afternoon and continue through Saturday.
ACoM will meet on Thursday afternoon. All
meetings are open to interested local officials.
Additional information will be sent to Legislative
Committee and Board members and to ACoM
members by early June. Rooms have been blocked at
Lard's End Resort (235-2500) and reservations must
be made no later than August 1.
DOTPF to Update Transportation Needs
and Priorities List -- Input Sought
The Department of Transportation and Public
Facilities (DOTPF) has scheduled several meetings to
discuss the update to the Transportation Needs and
Priorities in Alaska (Needs List). Meetings will be
PW8
held throughout the state (see schedule of Central
Region Meetings on next page).
According to the department, the original Needs List
was prepared with extensive input from local
governments and the public. The list provided the
department with a variety of important projects on
which to begin work. However, the department
recognized that there may be "compelling reasons and
changed conditions which can affect the need for
reconsideration."
Copies of the Needs List and a Summary of
Recommended Changes will be available at the
meetings. Written comments should be sent to John
Tolley, Chief of Planning, P.O. Box 196900,
Anchorage, AK 99519-6900 by June 15, 1994. If you
have questions, you can call 266-1467.
Rights -of -Way Project Underway
The Alaska Department of Natural Resources,
Division of Land, is undertaking a project to identify,
research, and document up to 500 rights -of --way
established under RS 2477.
RS 2477 represents a powerful access tool for the
state — to help trail users and meet public access
needs around the state. Recent activity by Congress
and the Department of Interior has raised concern
about losing Alaska's access options. The RS 2477
Project was established in anticipation of new federal
restrictions.
RS 2477 rights -of -way were granted for over 100
years. In Alaska, extensive ownership of land by the
federal government and Native corporations makes
access to land difficult. To identify RS 2477 rights -of -
way, a route must be researched and mapped to show
that it crossed public land when it was unreserved
federal land and that public users or a public
authority accepted the route. Recent federal action
may curtail the state's ability to assert RS 2477 claims.
For more information on the activities of DNB's RS
2477 Project, call 451-2700 or stop by the DNR
offices in Juneau, Anchorage, or Fairbanks.
AML Legiasave Bulletin #18-18
May 18, 1 "4
CENTRAL REGION MEETING SCHEDULE
TRANSPORTATION NEEDS AND PRIORITIES IN ALASKA
Location
Date
Day
Time
5/16
Monday
4:00 P.M.
Lake & Peninsula Borough/Planning Commission
King Salmon -Borough Office
6:00 P.M.
Bristol Bay Borough Assembly Meeting-Naknek
5/16
Monday
5:00 P.M.
Anchorage/AMATS Public Meeting-Spenard
Recreation Center
5117
Tuesday
9:30 a.m.
Bristol Bay Borough 0 Naknek-Borough Office
3:30 p.m.
• City of Dillingham -Public Works Director
4:30 p.m.
City of Dillingham -Open House -City Council
Chambers (4:30-6:00 p.m.)
5/19
Thursday
2:00 P.M.
Kodiak Island Sorough/Mayor-Borough Office
7:30 p.m.
Kodiak Island Borough Assembly -Assembly Chambers
5/23
Monday
2:30 p.m.
Unalaska -City Officials (Tentative)
4:00 p.m.
Public Meeting -(Location to be Announced)
5/23
Monday
6:30 p.m.
Anchorage/AMATS Public Meeting-Loussac Library/
Wilda Marston Theater
5124
Tuesday
1:00 P.M.
Aleutians East Borough/Borough Assembly
Meeting-Akutan
5/25
Wednesday
1:00 P.M.
Wasilla City Offices/Mayor
3:00 p.m.
Mat -Su Borough/Officials-Planning Conference Room
7:00 p.m.
Public Meeting Mat -Su Borough Building
1st Floor Conference Room
611
Wednesday
2:30 p.m.
City of Bethel -City Officials (Tentative)
4:30 p.m.
Bethel Area -Open House -Log Cabin (4:30-6:00 p.m.)
6/2
Thursday
3:00 p.m.
City of Seward/Clty Manager -City Hall
7:00 p.m.
Public Meeting Seward City Assembly Room -City Hall
6/2
Thursday
1:00 a.m.
Aniak Community Planning Meeting - City Hall
6/6
Monday
1:00 p.m.
Agency Meeting-DOT&PF
Conference Room-4111 Aviation Drive/Anchorage
617
Tuesday
1:00 P.M.
Hooper Bay - City Council Mtg.
6/8
Wednesday
2:00 p.m.
City of Homer -City Manager
7:00 p.m.
Public Met ng-Horner City Council Chambers
6/9
Thursday
11:00 a.m.
Kenai City Officials
2:00 a.m.
Soldotna City Officials
7:00 p.m.
Public Meeting Kenai/Soldotna Joint Meeting
Soldotna City Council Chambers
6/13
Monday
10:00 a.m.
McGrath - Open House - City Hall (10:00 a.m. -
3:00 p.m.)
Please call Janet George, Regional Planning Manager, DOT&PF, at 266-1467 if you have questions, or
need to confirm a meeting date/time/location. Schedule may be subject to change. Other meetings may
be scheduled on request.
May 1s,1"4
POSITION YAC9NCY
Treasurer - Bristol Bay Borough. Bristol Bay
Borough (pop. 1,482), headquartered in Naknek,
Alaska, is seeking candidates to fill the position of
Treasurer. This is a working supervisor's position
responsible for all borough financial activity, including
general fund, enterprise funds, special revenue funds,
trust funds, and all other associated financial activity.
The Finance Department includes accounts receivable,
accounts payable, and payroll. Assessing, grant, tax,
insurance, fund accounting, and computer experience
required. Two years prior municipal finance
experience and a bachelor's degree in business
administration or accounting preferred. Annual salary
is $53,909 to S64,810, depending on experience.
Application deadline: May 31, 1994. Submit resume
and letter of application to the attention of Ed
Pefferman, Borough Manager, Bristol Bay Borough,
P.O. Box 189, Naknek, Alaska 99633. Bristol Bay
Borough is an equal opportunity employer.
ALASKA
MUNICIPAL
LEAGUE
Street,217 Second - 200
AJaska ••:0
Dated Material
CIPAL CALENDAR
August 1-4 NACO Annual Conference, Clark County
(Las Vegas, Nevada Call 202-393-6226
August 23 State Primary Election.
September 7-10 AML Legislative Committee, AML Board
of Directors, and Alaska Conference of
Mayors. Annual Summer Meeting,
Homer, Alaska. See article.
September 18-21 International City/'County Management
Association Annual Conference, Chicago.
For information, conw ICMA at 202-
%2-3627.
November 8 State General Election.
November 13-18 44th Annual AML Local Government
Conference Week, Juneau. Preconference
events, including Newly Elected Officials
Seminar, scheduled for November 13-15;
44th Annual Local Government
Conference begins on November 16.
First Class Mail
John Williams' Director
Alaska Municipal League
City of Kenai
iA
Kenai asks g9611
KenaaiI
Copy and Distribute Immediately
CITY OP KENAI q
it Od 0oC4f2ZWq414a4Ji= I I
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014
�r.Noa,
"2
May 27, 1994
John Horn, P.E.
DOT/P F, Central Region
P.O. Box 196900
Anchorage, Ak 995419-6900
Subject: Kenai Spur Highway, Urban Section
Dear Mr. Horn:
We have discussed the concerns that the City of Kenai and local businesses have
with property access and drainage on the Kenai Spur Urban Project. It appears that
there are still problems. The City requested that DOT/PF carefully look at the traffic
patterns and vehicle access in the Kenai Spur Urban section. It does not look like the
design engineers have made any changes to solve the problems.
How does the traveling public get to Arby's, DQ, McDonalds, 7/11 and other
businesses? DQ is on the northeast corner of the Bridge Access Road and the Spur.
It appears only north bound traffic on the Spur can access DQ. The raised medians
prevent access from the other three directions coming into the intersection. Access to
many of the other businesses are also restricted.
The City of Kenai once again asks DOT/PF to consider a better way to handle the
traffic and provide access to local businesses.
Sincerely,
Keith Kornelis
Public Works Director
ion Management
rojects
3 Anchorage, Alaska 99503
Fax: (907) 561-2793
Inds activities each year to restore
Exxon Valdez Oil Spill. Trustee Council
r submitting projects for use of the
(October 1994 through September
item -based, comprehensive approach to
Council develop the 1995 restoration
ration Projects, and
ie criteria described in the document.
cents and restoration project descriptions
developing a Draft 1995 Work Plan.
t Restoration Projects, contact the Eason
Street, Suite 401, Anchorage, AK
from within Alaska at 1-800478-7745.
PETROLEUM
SERVICE
kiaska Anchorage
nent in all phases of fire, health and
alopment and production.
aining Industrial Health & Safety
• Surface Asbestos Abatement
Blasting Hazardous Waste Oerations
ng Renewals • XS
Hazardous Painters
3duling lntormation to:
3tna
Juneau
'TS
MAPTS / IMT
'y, Suite 101
c/o Rill Ray Center
AK 99662
1108 F Street, Suite 110
i2-2788
Juneau, AK 99803
262-2812
(907) 463-4840
FAX: (907) 465-6864
ASCC Incorporated is.a. subsidiary of Arctia S1ope::Regional: Corp: ar -
also provides construction project management,- surveying services ar. �� {
environmental impact statements. The firm. ranked 177th last year
Engineering News Record's "Top 500 Design Firms." Longtime clien
include Alyeska Pipeline Service Co., Bureau of Indian Affairs, Alasl
Department of Transportation, the U.S. Army Corps of Engineers ai
the North Slope Borough.- Within the- last three years, ASCG h..
received a letter of recommendation and three design awards from the
U.S. Department of Defense.
Major Player. Robert Hilton, president and chief executive officer.
Hilton arrived at ASCG two months ago after serving as president of
Advanced Applied Research Co. in Houston. He has previously served as
deputy director far management services at NASA`s Georgq O. Marshall
Space Flight Center and worked for seven years as an associate profess
AIDEA studies alternate
sites for Midrex plant
Board OKs search for investment advisors
By Tim Bradner
Alaska Journal of Commerce
Ajaska Industrial Development and Export Authority is advertising for
investment advisory services for its $300 million plus in assets. The authority's
board approved the request for proposals at its May 13 meeting.
AIDEA wants an outside group to invest its money "in a more active role,"
according to executive director Riley Snell. Investments are now made in-
house by AIDEA staff, and are made following very conservative guidelines.
The board would still set conservative guidelines for an investment consult-
ant, but the move is being made because of concerns raised by recent declines
in interest rates on invested assets, and declines in earnings of AIDEA's
portfolio. Proposals are due by the end of June, Snell said.
In other actions, the board approved plans by the authority to gather
community profile data for three alternative sites for the proposed MIDREX
iron ore reduction plant: The Matanuska-Susitna Borough, Kenai and Seward.
AIDEA has retained Dames & Moore to develop information on permitting,
and Parker -Horn & Associates, managed by consultant Lisa Parker, has been
retained to gather community information.
MIDREX has an Oct. 1 deadline to make its decision to proceed with
detailed engineering and permitting studies. AIDEA has authorization to do
$50 million in infrastructure financing with MIDREX at the Port McKenzie
site in the Matanuska-Susitna Borough, but would have to go back to the
legislature for new authorization if authoring financing were to be used at one
of the other sites, Snell said.
In another action, the board approved a $2.2 million loan participation
through KeyBank for Seward Ship Drydock Inc., for construction of a facility
to do work on vessels protected from the weather. AIDEA's portion of the loan
is $1.74 million.
The Captain
Bartlett Inn
T� �� 198 Comfortable
Guest Rooms
jNN • Cable TV & HBO
Ca tain's Table
RpestaurantN.S
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