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HomeMy WebLinkAbout1997-03-05 Council PacketKenai City Council Meeting Packet March 5, 1997 AGENDA KENAC CITY COUNCIL - REGULAR MEETING MARCH 5, 1997 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.Kenai.not/city 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 PIIBLIC COMMENT (10 Minutes) 1. Paul Gray - Kenai River Video 2. Bill Coghill - City of Kenai Financial Report 3. Amy Williams - Kenai Cooperative Preschool C. PIIBLIC HEARINGS 1. Ordinance No. 1735-97 - Increasing Estimated Revenues and Appropriations by $250,000 in the Capital Project Fund Entitled "Kenai ARFF Project." 2. Resolution No. 97-9 - Awarding a Contract for Fuel Service to Mapco Express, Inc. at the Unit Prices Listed Below for Furnishing and Dispensing Fuel at Their Service Station Located at Bridge Access Road and the Kenai Spur Highway. a. Remove from table. b. Consideration of Resolution (Pass/Fail) C. Consideration of Substitute Resolution No. 97-9 - Awarding a Contract for Gasoline Fuel Service to Mapco Express, Inc. at the Unit Price of $.98/gal. for Furnishing and Dispensing Gasoline Fuel Only at Their Service Station Located at Bridge Access Road and the Kenai Spur Highway. -1- 3 . Resolution No. 97-10 - Transferring $5, 000 in the Airport Terminal FunC for the Purchase and Installation of an s Overhead Rolling Grille (Gate) at the Restaurant. 4. Reso "Ition No. 97-11 - Supporting Enactment of Kenai Peni r•:3ula Borough Ordinance No. 97-13 Which Increases the Cap on Taxable Sales from $500 to $1,000. 5. Resolution No. 97-12 - Awarding a Contract to Video Systems Plus for the Purchase of Seven Patrol Video Systems. 6. Resolution No. 97-13 - Awarding a Contract to Applied Concepts, Inc. for the Purchase of Seven Hand -Held Traffic Radars. 7. Resolution No. 97-14 - Amending Morrison Maierle, Inc. Is Contract for the Alaska Regional Fire Training Center Project to Include the Final Design Phase for the Not -to - Exceed Amount of $376,000. 8. Resolution No. 97-15 - Opposing Proposal D-AAC21.363 Upper Cook Inlet Salmon Management Plan to be Presented at the March Meeting of the Alaska Board of Fisheries. 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 a. Beautification Committee b. Historic District Board C. Challenger Board d. Kenai Visitors & Convention Bureau Board e. Alaska Municipal League Report E. MINUTES 1. *Regular Meeting of February 19, 1997. F. CORRESPONDENCE G. OLD BUSINESS 1. Chris Garcia - Building Encroachment/Cunningham Park -2- H. NEW BUSINESS 1. Bills to be Paid, Bills to be Rat:fied 2. Purchase Orders Exceedina $2,500 3. Discussion - Setting Budget k�L;c Session Date(s) EXECUTIVE SESSION - None Scheduled. 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 1. Citizens (five minutes) 2. Council R. ADJOURNMENT -3- MAYOR'S REPORT MARCH 5, 1997 COUNCIL MEETING REQUESTED CHANGES TO THE AGENDA BY: REMOVE: B-1, Paul Gray - Mr. Gray is ill and unable to attend the meeting. He has requested to be placed on the 3/19/97 agenda. CLERK ADD AS: B-1, Theo Matthews - Has requested to speak to C-8 at this time in order to attend a Kenai River Board meeting this evening as well. MAYOR ADD AS: B-4, Bill Kluge - Animal Shelter MAYOR ADD TO: C-8, Resolution No. 97-15 - Additional information/Kenaitze Indian Tribe Resolution No. 97-06, opposing D-AAC21.363 Cook Inlet Salmon Management Plan. CLERK ADD AS: H-4, Discussion - Business Trade Mission/Sakhalin Island MAYOR CONSENT AGENDA REMOVE: E-1, Minutes or 2/19/97 meeting and make the following amendment to Item C-2, Resolution No. 97-3 - Transferring $2,500 in the General Fund for a City-wide Computer Network Design Study: There were no public comments. Councilman Moore asked what administration anticipated to acquire from the document. City Manager Ross answered, the document was to address the needs with an approximate cost for installing a network system in City Hall and phasing in other city buildings over the next few years. The document would be a foundation for buildings both a computer network and records management system for the city and aid in making appropriate choices of systems, software and equipment. [ALSO INVESTIGATE A RECORDS MANAGEMENT SYSTEM FOR THE CITY AS WELL AND DISCUSS SYSTEM OPTIONS (OPTICAL DISK OR MICROGRAPHICS).] CITY CLERK MAYOR'S REPORT 1. Discussion with Ron Simpson, FAA - EIS Statement/Taxiway NO L!J O O M C Li OA L=J 90 L*J � H � 0 c t� O w O N H ��i 0 w 0 r� O O H O O r t� H bd Lit K H L-4 n c O O H O O r t2i H V 0 L=J W C W b0 m O O H t1i H 0 0 L*J t�J K W ',d � C O o O O H r R 1 r� bd H r O a� c b td INl O N i-1 February 14, 1997 Paul Gray Gray Publishing, Inc. 35555 Kenai Spur #232 Soldotna, Alaska 99669 Kenai City Council Kenai, Alaska 99611 Subject: Alaska's Kenai River Show Dear Council Members: My name is Paul Gray, owner of Gray Publishing, Inc. which has been in the publishing business for sixteen years, beginning with the Buyer's Corner, Buyer's Guide, Dispatch News and the Sight Seer magazine. Our next product will be a 30 minute weekly television show about the Kenai River to be broadcast on a major Anchorage TV station from May through September. The format of the show will be on habitat protection, fishing, nature, rafting, etc. The purpose of the show will be to create a desire to visit the KenailSoldotna area. It will also serve as a forum to present the river as open and friendly to the Anchorage market. Anchorage holds the largest reservoir of increased sales tax revenue. Resident Visitors Market The Fox Practical Marketing and Management Report developed for the Kenai Peninsula Tourism Marketing Council states; "We conservatively estimate that visitors from Anchorage spend an average of $97.52 per person, per trip to the peninsula. This represents an average expenditure of $49.26 per day, per person, per trip. Total expenditures on the Kenai Peninsula by Anchorage visitors are estimated to be approximately $76.42 million per year, ..." It's recommendation; "It is critical to promote the many and substantial assets of the Kenai Peninsula to the Anchorage market because: -- it is currently the borough's dominant market, generating substantial revenues; -- one of the peninsula's key competitors, the Mat -Su region, is engaged in an aggressive marketing campaign targeti. tg Anchorage residents; -- Anchorage residents play a key role in stimulating trips to the peninsula by visitors visiting friendand relatives and business travelers." Non -Resident Visitors Market Research done by the McDowell Group, Patterns, Opinions, and Planning, (Summer 1993) found Anchorage was host to more than a half million visitors. The survey also suggests that 31 % of this group planned day trips after they ar-ived in Anchorage (see Attachment A.) This is an opportunity for Soldotna and Kenai to consolidate their efforts and to promote the area as one destination so the viewers do not get the impression the river is in one town or the other. I am respectfully requesting funding of $30,000 from the budget of 1998 to produce and air this program. Half the amount, $15,000 would come from the City of Soldotna and the other half from the City of Kenai. Sincerely, Paul Gray KENAT PENINSULA TOURISM MARKETING COUNCIL, INC. A study by: Fox Practical Marketing & Management What Did You Do /n Alaska That You Had NOT Planned To Do? Many VP visitors added unplanned attractions to their trips. More than three of ten stated they saw additional attractions or added day excursions on their trip. Most Inde-Package (40%) and Package (35%) visitors were likely to add & i extra attraction to their itinerary. This was also true for visitors from the Eastern U.S. (43%) and Canadians (34%). Recreational activities were also added to trip itineraries. (one-third of European visitors scheduled additional recreational activities. -'among domestic visitors, visitors from the East (27%) and those from the Western U.S. (22%) were likely to add more activities to their schedules than they had originally planned. Flightseeing was also added to schedules by 16% of all summer VPs. Other VPs found they were able to visit areas they had not previously included on their original itinerary, made unplanned purchases or added a fishing trip to their schedules. Table III-E What Did You Do in Alaska That You Had NOT Planned To Do? Vacation/Pleasure Visitors - Summer 1993 Percent Did NOT Plan To Do While In Alaska, But Did Do: of Visitors 1. Additional Attractions/Day Trips 31% 2. Recreational Activities 18 3. Flightseeing 16 4. Include Additional TownslAreas 7 5. Make Specific Purchases/Shop in General 6 6. Fishing 4 7. See Wildlife 2 8. Night-frfelEntertainment 2 9. Changed Length of Stay/Budgeted Time Differently 1 10. Take Train 1 11. Take Ferry <1 12. Wilderness Camping <1 13. Other 12 Pattemc Opinions and Planning - Scanner 1993 AM N McDowell Group, Inc. - Page 129 La�\ Inxroduced Date: Action: Vote: KENAI PENINSULA BOROUGH RESOLUTION 97-011 Scaw, Brown DMthman, Home 03/04/97 A RESOLUTION IN OPPOSITION TO PROPOSAL D-AAC21.363 UPPER COOK INLET SALMON MANAGEMENT PLAN TO BE PRESENTED AT THE MARCH,1997, MEETING OF THE ALASKA BOARD OF FISHERIES `'WHEREAS, the Kenai Peninsula Borough Assembly recognizes an historic Cook inlet Drift Net Salmon fleet operating out of the Homer, N M-udchik, Kasilof and Kenai areas; and WHEREAS, the Kenai Peninsula Borough Assembly rewOzes the Cook Inlet Drill Net -Salmon fleet and its associated support industries as significant entities in the social and economic health of the Kenai Peninsula borough; and WPTEREA.S, the entire Cook Inlet Drift Net Salmon harvest is landed and processed in the Kenai Peninsula borough; and WHEREAS, passage ofproposal "D" would result in lost harvest opportunities and alter the flow of product into and out of the processing sector; and WHEREAS, passage of proposal "D" would result in major economic losses in the harvesting, processing and business sectors of the Kenai Peninsula Borough economy; and WHEREAS, ADF&G has informed local Advisory committees that passage of proposal ":D" would result in escapements over and above a sustained yield in years of above average returns; and WHEREAS, the Kenai Peninsula Borough objected to any escapement increase over and above a sustained yield in a March 22,1995 letter to the Board of fisheries; and WHEREAS, proposal "D" will be deliberated on without the benefit of the full and complete open public process requested in Borough Resolution 90-097. WAEREAS, if proposal D-A.A.C21.363 of the UPPER COOK INLET SALMON MANAGEMENT PLAN is passed and implemented by the Alaska Board of fisheries, it will create severe social and economical hardship for the historic Cook Inlet Drift Net Salmon fleet and its associated support industries in the Kenai Peninsula Borough. Kenai Peninsu Borough, Alaska Resolution 97-01I pme t of 2 34 NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH: SECTION 1. That the Kenai Borough Assembly opposes Proposal D-AAC21.363 of the UPPER COOK WLET SALMON PLAN to be presented at the March,1997, meeting of the Alaska Board of Fisheries; and SECTION 2. That this opposition be communicated directly to Governor Tony Knowles, the Alaska Board of Fisheries and that copies of this resolution be sent to the Alaska Department of Fish and Game Commissioner, Frank Rue; Speaker of the blouse Gail Phillips; Senators John Torgerson and Jerry Ward; Representatives Gars, Davis and Mark Hodgins. SECTION 3. That this ordinance taken effect immediately upon its fit. ADOPTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS DAY OF _ ,1996. Jack Brown, Assembly President ATTEST. - Gaye J. Vaughan, Borough Clerk Rrsolutim 97-011 Kenai Prainanla Boro%k Alaska Pap 2 of 2 ��a F,::B 2.. 'y'.'' 02 09r M 'E j.—,:�j:j.jT('�-INf:!Q7 ZS3 94H, 1 �is -- — — P.10 00 C� CXTT OF goon. AiJ►VA l c/ A R$BOLG"xXON or in eITY COMZL D °F ; Awim xv OPPOBZ' 69 of PFA wpNR tit TWM SALt= Kawwwa IPW To sS lax" I OF FISH 1 ' i�tea a� histosia Lec11l 11}�71MS, the Kenor City Council -recap Cook tn1st Drift Net Palson Fleet ops"ting but of tha Manor soap Barb", sad _ wHf pjUt the xovn�r City COUA411 Y*aagniess the .Local cook Inlet Drift Not Salmn rlaet and itpR associated gugwrt Snduwtvi«w as a ei,nif cant entity in the social and economical health of thi commUrjitiyr of xamert Almka and tM all rrounding risgioni and WMZA4, apprmdratslyr twenty five percent of the Cook Inlet Drift got galmon permit holders reside its the Romer area and •�$A�, �aseage of prepoaal `A" would orlt LA mAlOr or G s was seoneisd.c J,oasar in the procossing and business 4*ct econoteys and WAgN A9, pasasp of proposal "D'' world result in lost harvGeC Opport itiao and alter the flow of product into and out of the preceseing oeetort and Wtsj3LU j if proposal D-AACt3.• sda of the UPPIM COOK XNUT SALMON jrq►n=MW PLAN JS 1ia*!ed sad IgpIsmented by the Alaska Roard of gish&ti*S it will iA#"jl asvaxa soul end samamLeal hardship on the historic � Cook the Drift uni Y �n�G and it's associated suppe !►laeka and the surroundLng Region )ROW I THMMYORN o BE iM RUOLVBD. that the C'ty Cbunail of Rm*rt Alwsk& opposew PrOPOS&I D-A=:L.363 of the C"BR COOK 2WLW 2ALWW MANA41RO T FLAN to b& presented at the March Meeting of the Alaska sawed of Fish, 4nd 7Ad 0 F:13 21 'Sli' 02:09�Mll FEAF'l_E: lXt.fl INN:, !07 2EM 9496 rni, G,iM .14 ... • Ww r.G+r ••: --- spats Tiro RsaclutleM f7•12 efty of Rmer "- fs xs PLtA�lBR kfSOLm tmt this apposition be ae mulk0atsd dirwet�,y to CIOV03MCW 'lbay Xmwlar, t1A AU$ka Board Of f'l"Olss •nd Ol1at aMles of this Rosolntioa ba sent to tM Atsoks. n—U%VAkAt of risk and Cam • ComrAssionar Frank NO# SP08hOx ei' the Hogs• nail Millipv, s*nstdr Jots %raarmm, %spra/ontatsva Oar ► naviso Xeni 1, pensnaulu 110 .. .. a -av vre k AsseopkIY, tho city of Boldotna, the City of Kenai, *W%6-kik, Ad the MY Of WAWA, PA8921) M XWPTM by the �ty ftnnoil of Ro r, Auska, this 94th day of lrabsudry, 1997V lov CY� 8 jab , l► ' 30, CUSHING, PAYOR ;uy, L. b"- OVN, CNCl cm CORK pleeol note nee raquirad.. , N 37 w_ L. FEE E '"`' rr "'di•Z7Ptl ��3ip* 3 / 1& I Ll-D try<' KENAI PMNIN13LJLA 33ORCUMH 14A N, NtRRUXY • sOLBOTMA. AA"KA 0 90660-rist i La pp •ti'"`-•..•,�►OILMAN perch 22, 1995 -or' ^� rn VIa Fw`: I-907�4B-�S'7 �1 CA i C 04 Attn. Members Hoard of Fish AULSka DCpart =t of Fish and Gaze WeA=t Intonational NOW 3333 lntcrnationsl Airport Ad. Anchorage, AK 995M Dear Xaubors of the Hosxd of Puh: The Kenid peninwula Borough tx sibs and privaea property owns aromrMudy struggling to come up with an wdbmce to pratag the babUt of the Karel Rivet. The XVW Peaiusula Borough Asmubly M mbera with to to on record as dbjec g to toy escap=e0 !A="" over and above a sas3ained yield- Ter our OPWOn. WX lWwAd bate a treart WO" pooeatW negative impact on the Rives. The Auembly is further q"wd to my maacaft to the escapement plea flat would neccsaitate talang steps as drastic as a wait. 5incael , Betty 1. (Vi A g president Kenai peninsula Borough Assembly mt Governor Tony KnowleS, Alas1G Ftanlc Ituc, Ccrnnn scion& Fish and 0=0 Senator Judith B. Salo 5enaWr Jolm TorgWO Se mtor Gcorgianna Lincoln Representative Gail Philips Repro entative t'Jary L. D"45. Representative brit Navaae ' Representadve Iran Niahoiia 01 FE:Et 210';ill 03:2&T11 M ,I F. ,%r7 ��O1;�w���A t•�h.•r�'�'��. �.iA"s,s,,JL* is 4 �P.6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1S 16 17 18 19 20 21 22 23 24 25 there are r•a17.6fftn`&tiCn ConCerns that meant that Zero fish should be harvested, we would support euapanding that fishery, but the argument as it has been, in that these fish should be caught by sport fishermen as opposed to commercial fishermen, is not an argument that we agreed with. Proposal C talks about amending the Upper Cook Inlet Management Plan by changing references from Suaitna coho to Northern Dietriet coho. We discussed this at length., T'm not sure in the context that can give you an answer, but I can tali you the issues that we discussed. Z'm guessing that some of the concern about making this Northern District an opposed to Susitna is talking about small stock protection, and the Anchorage Comittee consistently supporta protecting small stocks, but there doesn't appear to be any need to include this language to protect those small stocks, so when the committee participated in writing proposal 208, which is essentially the proposal that the Board adopted, that was the Susitna Management Plan, wo-- I can tell you that we discussed it and that we ended up cboosing-Susitna over Northern District. (Beep),. All right? UNT.I)MI IIFYED : Yo= time' a up. No. MR.. EY MAN. - ropaeal n Which is the 20% allocation to Northern District setnetters, In one of the 2 main problems that the Advisory Committee had with the decision STERLING COURT RERORMS — 4"W-A SLawl" Awnu* • SowotAe, Atoka, "068 " 1s07t 262-9019 5 L '` F1::13 21 19F 03:28711 IJC:ZI>F1 !:437 2'F3-: 3;313Ei P. 7 1 that the Board took to reopen the agenda. Proposal L, on, 2 the surface, is an a=location to Northam District 3 aetnetters, but the closer it's examined, it becomes an 4 allocation issue among all of the user groups. For S example, the only way you're going to get fiah north in to 6 pass them through the Central Drift,. That's going to pass 7 sockeye, that's going to pass coho; not all of those 8 sockeye and coho are going to be going to the Northern 9 District, some of the those sockeye are going to be going 10 to the Kenai River. How many of those sockeye are going to 11 be going into the Kenai River? What kind of - consecruences 12 are we going to have in conducting that fishe ? Is it 13 going to be increased number of setnet openings, which may 14 result in increased number of king salmon that are 15 haxvested? Is it going to result.in increased bank 16 angling, which is going to result in increased habitat 17 pro lems? Proposal D effectively to k9 about.every single 18 allocation argument that we already talked about. ;h-p 19 , r Anchorage Committee's position was, we spent so much time, 20 so much energy, literally hundreds of hours, poring over 21 these things in our previous comments, we stand by our 22 initial-- This is, in the original book, Proposal 212, and 23 we did oppoee it . -we vppoae it in the context of an 24 overall plan, and to bring it back as an isolated part, 25 we can't discuiss . In the context of an overall plan, we STERUNG COURT REPORTERS - 4489C-A Sunrise Avsnus • Soldatna. Alaska, HOW - 19071262-9018 Y V' P.a i 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 .....ram..-_.__---_----- -•------ - clearly opposed it • in fact he vote was unanitpous. P oposal S, which is to amend the management plan b ging the trigger that cloae9 the Kasilof Rive Bet gill et fishery and the Kenai and Kasilof River' s dipnet. fieher'ee, I'm only going to speak to the dat a for the Kenai a xasi.lof dipnet £isheriee., mR fe$ Like these dates are very important. The Arguntesst a 'not having dates are, et abundance dictate when ople will go dipuetting. a argument against tha its, if it's opaa, people will thi there are fish. ey will plan their time, they will o down there t dipnet when there are no fish. We don't t that's f it for 2 reason: one... (End Tape 3A - Begin Tape 32 - g 0o1) ...mistake of assuming that ,therg,s a connect' between an open season and a presence of fish i9 o g to be misled. The other is that what happens a ry ti a when people go down during open season when here's no sh, is they scapegoat the commercial fis ry. They'll go wri and dipnet for red salmon on A st 28th, they went' get any, and they'll be sure it's ecause all the commerci 1 nets are in the water. a,t' a j uist the way the dyn ' c -goes . Proposal F- - I gu s, just to conclude, we feel I there needs to be an paning and closing date on those dip t fisherie$ that I ves people a realistic chance of catehin fish that's not-- coincide it reasonably with the bell c e of the STRUNG couRT AGPClt MS 44690-A Swinge Avenue • 8old=s, Ahnka, seeds • (907) 262-90 7 41 CXTY OF HOMER HOMER, ALASKA RESOLUTION 97-12 Parks A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA IN OPPOSITION OF PROPOSAL D-AAC21.363 UPPER COOK INLET SALMON MANAGEMENT PLAN TO BE PRESENT= AT THE MARCH MEETING OF THE ALASKA BOARD OF FISH. _ i WHEREAS, the Homer City Council recognizes a historic Local Cook Inlet Drift Net Salmon Fleet operating out of the Homer Boaz Harbor; and WHEREAS, the Homer City Council recognizes the Local Cook Inlet Drift Net Salmon Fleet and it's associated support industries as a significant entity in the social and economical health of the community of Homer, Alaska and the surrounding Region; and WHEREAS, approximately twenty five percent of the Cook Inlet Drift Net Salmon permit holders reside in the Homer area; and WHEREAS, passage of proposal "D" would result in major economic losses in the processing and business sectors of the Homer economy; and WHEREAS, passage of proposal "D" would result in lost harvest opportunities and alter the flow of product into and out of the processing sector; and WHEREAS, if proposal D-AAC21.363 of the UPPER COOK INLET SALMON MANAGEMENT PLAN is passed and implemented by the Alaska Board of Fisheries it will install severe social and economical hardship on the historic local Cook Inlet Drift Net Salmon Fleet and it's associated support industries, the community of Homer, Alaska and the surrounding Region. NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska opposes Proposal D-AAC21.363 of the UPPER COOK INLET SALMON MANAGEMENT PLAN to be presented at the March Meeting of the Alaska Board of Fish; and OAQ i Page Two Resolution 97-12 City of Homer - BE IT FURTHER RESOLVED that this opposition be communicated directly to Governor Tony Knowles, the Alaska Board of Fisheries and that copies of this Resolution be sent to the Alaska Department of Fish and dame - Commissioner Frank Rue, Speaker of the House Gail Phillips, Senator John Torgerson, Representative Gar Davis, Kenai Peninsula Borough Mayor Mike Navarre & Assemhy, the City of Soldotna, the City of Kenai, Ninilchik, and the City of Seldovia. s PASSED AND ADOPTED by the City Council. of Homer, Alaska this 24th day of February, 1997. y CITY OF HOMER ATTEST: JACK CUSHING, MAYOR MARY L. CALHOUN, CMC, CITY CLERK Fiscal note not required. :c �.1► RFSOLIMON NO.97-" A TRIBAL RESOLUTION IN STRONG OPPOSITION TO PROPOSAL D AAC2L363 UPPER COOK INLET &CLMON MANAGFd1CNT PLAN TO BE PRESENTED AT THE MARCH 1997 NI=MG OF THE ALASKA BOARD OF FISHERIES WHEREAS, the Kenaitze Indian Tribe, MA, a federally recognized Tribe, reorganized in August, 1971 pursuant to the Indian Reorganization Act (LR.A.) of 1934. as amended for Alaska in 1936 and is responsible (in accordance with the preamble to the Tribal Constitution) for the social and economic welfare of its 939 Tribal Members and for the welfare of the total 2,767 Alaska Native residents of Central and Upper southern Kenai Peninsula of Southcentral Alaska; and WEMIUAC the Kenaitze Indian Tribe, MA has established long range goals which relate to the collective and individual, social, economic, and governmental concerns of its people; and WHEREAS, the Cook Wet Basin and its tributaries has, since time immemorial, been the We's blood of the Kenaitze Dena'ina, and many for their entire lives have realized its bounty as a natural expression of their inherited cultural way of life; and, W1(EREAS, the Kenaitze Indian Tribe, IRA is very alarmed that the State Board of Fisheries plans a March 1997 meeting to consider Proposal D-AAC21.363 of the Upper Cook Inlet Salmon Management Plan, a board generated proposal submitted by Dan Coffey at the Board of Fisheries meeting in September 1"6 which, if passed, would result in major economic losses for all of the Cook Inlet Drift Net Salmon Fleet and associated snoport industries, the community of Kenai, Alaska, -and surrounding Region; and WEEREAS, the Kenaitze Indian Tribe, IRA is also very alarmed that proposal "D" will be deliberated on withont the benefit of the full and complete open public process requested in the Kenaitze Indian Tribe's Resolution NO.96-42, and that the opportunity for public testimony regarding the management of Alaska's natural, renewable resources is a basic right of the citizens of the State of Alaska; and Page 2 of 2 Keusitze Indian Tribe, IRA Resolution No. 97-06 WEIERFA-% if proposal D-AAC21.363 of the IIpper Cook Inlet Salmon Management Plan is passed and implemented by the Alaska Board of glsheries it Will create severe social and economic hardship for the historic Cook Inlet Drift Net Salmon fleet and it's associated support industries in the Kenai Peninsula Borough; and NOW TREREFORE BE IT RESOLVED by the Kena.itze Indian Tribe, IRA Executive CommitteelTribal Council on February 28,19979 that the Tribe strongly opl» Proposal D-AAC21,30 of the Upper Cook Inlet Salmon Management Plan and that the Kenaitze Indian Tribe opposes ANY Board of Fisheries meetings Which deny pubes comment, and demands that the Board of Fisheries and Governor Tony Knowles commit publicly to a full and complete open public process for all Board of Fisheries meetings, now and in the future; and BE IT FURTMM RESOLVED, that this opposition be communicated directly to Governor Tony Knowles, the Alaska Board of Fisheries, and that copies of this Resolution be sent to the Alaska Department of Fish and Game - Commissioner Frank Rue, Speaker of the House Gail Phillips, Senator John Torgerson, Representative Gary Davis, Kenai Peninsula Borough Mayor Mike Navarre and Assembly, the City of Soldotna, the City of Kenai, Ninilchik, Native Village of Tyouck, and the City of Seldovia. T'1FTCATION VOTING FOR: 5 VOTING AGAINST: o RONALD PETTIEAIB RSON, TRAL CHAIRPERSON ABSTAINING: 0 KEN IND / /TRIBE, IRA ABSENT: Z ►N, TRIBAL SECRETARY TRIBE, IRA DATE CITY OF HOMER HOMER, ALASKA RESOLUTIONt 97 -12 A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA IN OPPOSITION OF PROPOSAL D-AAC21.363 UPPER COOK INLET SALMON MANAGEMENT PLAN TO BE PRESENTED AT THE MARCH MEETING OF THE ALASKA BOARD OF FISHERIES. Parks WHEREAS, the Homer City Council recognizes a historic Local Cook Inlet Drift Net Salmon Fleet operating out of the Homer Boat Harbor; and WHEREAS, the Homer City Council recognizes the Local Cook Inlet Drift Net Salmon Fleet and its' associated support industries as a significant entity in the social and economical health of the community of Homer, Alaska and the surrounding Region; and WHEREAS, approximately twenty five percent of the Cook Inlet Drift Net Salmon permit holders reside in the Homer area; and WHEREAS, passage of proposal "D" would result in major economic losses in the processing and business sectors of the Homer economy; and WHEREAS, passage of proposal I'D" would result in lost harvest opportunities and alter the flow of product into and out of the processing sector; and WHEREAS, if proposal-;,D-AAC21.363 of the UPPER COOK INLET SALMON MANAGEMENT PLAN is passed and implemented by the Alaska Board of Fisheries it will install severe social and economical hardship on the historic local Cook Inlet Drift Net Salmon Fleet and it's associated support industries, the community of Homer, Alaska and the surrounding Region. NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska opposes Proposal D-AAC21.363 of the UPPER COOK INLET SALMON MANAGEMENT PLAN to be presented at the March Meeting of the Alaska Board of Fish; and Page Two Resolution 97-12 City of Homer BE IT FURTHER RESOLVED that this opposition be communicated directly to Governor Tony Knowles, the Alaska Board of Fisheries and that copies of this Resolution be sent to the Alaska Department of Fish and Game - Commissioner Frank Rue, Speaker of the House Gail Phillips, Senator John Torgerson, Representative Gary Davis, Kenai Peninsula Borough Mayor Mike Navarre & Assembly, the City of Soldotna, the City of Kenai, Ninilchik, and the City of Seldovia. PASSED AND ADOPTED by the City Council of Homer, Alaska this 24th day of February, 1997. CITY OF HOMLR ATTEST: JAC SHING, MAYOR YdALHOUN, CMC, CITY CLERK Fiscal note not required. 26 'Sr c�''P.Av .•�-_ SA-YO\ 907 293 42S7 CALMON' A Division of inlet fisheries Inc. . . Alaska Board of Fisheries c/o Boards Support Section Fax# (907) 465-6094 Corporate Headquarters P.O. Box 5W Kenal, AK 99611 (907) 283.9275 PAX (907) 2834097 February 24, 1997 Re: Cook Inlet Salmon Fishery, March 1997 Meeting Dear Board Member: P.2 Saps Office P.O. Box 2146 Bothell, WA 96041.9146 (206) 487.0495 PAX (205) 497-0527 sent via fax I am the plant manager at Inlet Salmon's Kenai Facility. Inlet Salmon has been operating in Cook inlet since 1987 and has invested millions of dollars in capital improvements and annual repairs to our facilities since that time, Each year we employ up to 400 individuals at our Kenai and Kasilof Plants. Some of these employees have worked for us every season since 1987 and others have used the work to advance their education and are only with us until they have found full-time employment in other industries. Our annual payroll for the Kenai and Kasilof facilities is about $2.25 million. I am writing to share my concerns about the upcoming March Board meeting and the proposals being considered. First of all, I have noticed a change in the way that the Board of Fish has dealt with the public since its meeting in February of 1996 and it concerns me. During that meeting, many people gave oral presentations to the Board.. Afterwards, the Board was able to ask questions about the presentation, sometimes the questioning lasted for an hour. New information and understandings seemed to develop because of this opportunity. The Board meeting that was held in November of 1996 did not allow any oral presentations to the Board by the public, even though there were proposals before the Board that were not included the packet for the February 1996 meeting, The public was told to work through the Advisory committees or submit testimony in writing. This eliminated any chance that the Board had to interact with the public on the record. As I understand it, this will be the case in the March Board meeting. I believe that this format destroys the public confidence in our unique board process. I hope that you will reconsider your decision and open the March 1997 meeting to oral presentations by the public Secondly, I am against Proposal D - 5 AAC21,363. If this proposal is adopted, the ADF&G managers will have to restrict the drift fleet to the "3 mile corridor". This will reduce the catch dramatically. Based on the catch statistics from this season, our fleet would miss about 30% of their total catch for the season which would cost them at last years' grounds price approximately $550,000 for the reds alone. This would translate to a $150,000 loss in gross wages to our employees of as well as lost profits to us frpm the sale of this fish. As you can see there is a substantial loss in revenue to the Kenai Peninsula economy if you choose to pass this proposal. Also, by restricting the fleet to the "3 mile corridor", we can expect that the overall reduced catch will be caught and delivered in a relatively short time period. This will effect the quality of our product because we will not be able to process it quickly enough. The resulting loss of quality will reduce the sales price for the product. During the Salmon Strategy Forum in Juneau last month, one of the recommendations was that any fishery management decisions should consider fish quality as well as social and biological issues. If this proposal is adopted, it will have a significant impact to the local Kenai community and therefore the State; and will negatively impact the markets perception of the quality of Cook Inlet salmon. In summary, I would ask that Proposal D be voted down and that you again open the process up to the public. Sincerely, 50S Scott Ea e Plant Manager Inlet Fisheries, Inc. cc: Govemor Tony Knowles Senator John Torgerson Senator Jerry Ward Representative Gary Davis Representative,Mark Hodgins Representative Gail Phillips A. A BRINDLE H. A. BRINDLE 'ROCUMA Or CHOICE ALASKA ar"oop BINCR 181: M40M (M W34M 88 E. HAMLIN STREET P.O. BOX Ca030 Day FIX 00 3091Qs MAME. WA 9810S4030 March 3, 1997 Alaska Board of Fisheries c/o Boards Support Section Via Fax: 907-465-6094 Dear Sirs, I wish to comment on Proposal D, to the Upper Cook Inlet Salmon Management Plan. This proposal would allocate twenty percent of the total Northern District Cook TWet sockeye return to setnetters in that district. As a policy, Wards Cove Packing does not normally enter into allocation disputes involving differing groups of fishers. This Proposal, however, is nothing more than a means to force an increased number of sockeye salmon to Northern District rivers, and to the sportfishing sector. If adopted as submitted, Proposal D will cause greater hardship to an already severely economically distressed commercial fishing industry, setnet and drift fishers alike. The Wards Cove Packing faefiity in this region has purchased salmon in Cook Inlet since 1922, This facility supports more than one hundred twenty, families who depend upon their income from commercial fishing. Mulling the mandate of Proposal D would likely require the closure of the Central District drift fleet during the period of July 7 through July 21. 1 have attached a graphic that illustrates that such a closure would eliminate approximately fifty-two percent of the total salmon processed at our facility. This represents a serious reduction in the economic viability of this facility, to the families I mentioned, and to the Kenai/Soidotna community. Such action would also force unprecedented escapements to area rivers. Over -escapement was the prevailing factor in the reduced sockeye salmon numbers to the Kenai River system in recent seasons. I urge the Board of Fisheries to consider the overall impact of this proposal, and the likelihood for certain user groups to pressure ADF&G biologists to meet this difficult partition of salmon harvests. imposing these requirements will impose undo burdens on fishery managers and result in needless fisheries closures. ALITAK • CHIGNIK • SEAFRESN . CRAIG • ALASKA BOAT . EGEGIK • EKUK • EXCURSION INLET • HAINES • MOONAH SEAFOOD$ • KPIN SEATne . PORT EWLEY • NAKNEK TRADING • RED SALMON • WARDS COVE • ICY CAPE INTERNATIONAL SALES SOUTH NAKNEK • SEWARO i Alaska Board of Fisheries Page No i , Alaskani salmon nms are;now at record levels thanks to a that 1s the produci of the Board of Fisheries process, WWI* under gUd� estabUW by the Board, I epartmeat of Fish and Gme biologists have maintained the fisheries they are entrusted to oversee. Using mechanisms such as Proposal D to effect chsnaw in fisheries management disregards this time -proven process and risks weakening the &uodadon of Alaska's successful program The mandate that Proposal D will impose cannot be satisfied without a very real potential for economic and biological tragedy, Sincerely, e�La.,O�x Alec W. sriame President Enclosure: Graphic cc: The Honorable Governor Tony Knowles The Honorable Senator John Torgenon The Honorable Senator Jerry Ward The Honorable Representative Gail Phillips The Honorable Representative Gary Davis The Honorable Representative Mark Hodgins United Cook Inlet Drift Association 15-Ju n 184u n 21-Ju rti 24-Ju n 27-Ju n 30-Jun 3-Jul 6-Jul 9-Jul 12-Jul 15-Jul 18-Jul 21 •Jui. 24-Jul 27-Jul: 30- Jul' 2-Aug S-Aug 8-Aug 11-Aug 14-Aug 17-Aug 20-Aug 23-Aug 26-Aug. 29 Aug, c N to A th ps y GoC d O O O C p p o m �Q �• a a� m o� c y 0 I C CD I 0 O O m a fn 0 O O r� �±± CD O n tQ O 'Q i V cp TOTAL P.04 C CD I 0 O O m a fn 0 O O r� �±± CD O n tQ O 'Q i V cp TOTAL P.04 03 1997 11:08PM P1 TONY KNOWLES, GOVERNOR CENTRAL PENINSULA FISH AND GAME ADVISORY COMIM IT&, R- Manin, Chair HC-2 Box 860 Clain Gulch, Alaska 99568 Ph: (907) 567-3306 February 27, 1997 Governor Tony Knowles PO Box 110015 Juneau, Alaska 99811 At our meeting of February 26, 1997 our Advisory Board unanimously voted to send a letter, once again, to inform you of our continued concerns and the seriousness of this issue of the Board of Fisheries continuance to neglect the Fish and Game Advisory Committees and the publics overwhelming request for the elimination of the Board generated allocation proposals from the March meeting. These proposals were submitted by some of the Board members because of a loophole in the system. These allocation proposals were not introduced in the normal three year cycle procedure. They were also introduced without an Agenda Change Request or even the Agenda Change Request criteria used. They were introduced solely by the whims of the Board members who proposed them. There has been no oral public testimony allowed nor will there be in March. The Department has data showing there are no conservation concerns. These unprecedented Board actions have created overwhelming opposition from Advisory Committees, Cities, Borough, organized groups and the public, not only from Cook Inlet but Statewide. The public process was put in place as a check value for the Department of Fish and Game and the legislature. When the Board goes off on its own agenda, for whatever reason, it circumvents the whole meaning of what the process is meant to be and violates a moral code of ethics. The public trust and involvement'in the Board process has eroded dramatically in the last year. Peoples livelihoods and jobs are in jeopardy because of this dictatorship approach of making decisions based on the Boards own politics_ We concur and remind Governor Knowles of your repeated commitment to have increasingly more Advisory Committee and public input and involvement into the Board process. Also your commitment to protect and promote Alaska jobs. Serving the Alaska Board of 1=ishcries and Alaska Board of (hone Hounkog Supxxt Sk:tion, P.O. Box 25526. Jut>rnti. Ahwku 99K112 5526 SV VE OF &L 9 f CENTRAL PENINSUI.A FISH AND GAME .r' ADVISORY COMMMEE 9 TONY M W✓LES,, GOVFRJYCW Board of Fisheries member Mr. Coffey called a teleconference of Feb. 14, 1997 of the ten Cook Inlet Advisory Committee Chairmen to get their input on his new revised edition of allocation Proposal 0 that he proposed at the specially held work session in Sept. 1996. Board members Engel and Miller were present. Enclosed is a copy of our letter to the Board summarizing the teleconference, staling their commitment to discuss the results of the teleconference before the full Board at the Ketchikan meeting, and our request of eliminating Proposals A, C, D, F, and G from the March meeting. Mr. Coffey did not pass the.information on to the full Board as he said he was going to do. His failure to do so, as he promised, has prompted our Advisory Committee to seek your support and help in the protection and expansion of the Advisory Committee and public process and the involvement and trust in the Boards of Fish and Game. This type of Board actions during this last year gives strong indications of biases and preconceived agendas. This will be detrimental to the resource and the public process. Thank you for time and consideration. S' cerely , 77- David R. Martin, Chair Serving the Alaska Board of Fisheries and Alasku Board of Cairn: HM* Support 869tion, P.O. Box 25526. Juneau, Almka 99W)2•,,ii2A :1-7PM P" �7 e' /2 .r 74 /Z Certral Peninsula Advisory Comminee David R. Martin, Chairman i IC-2 Box 860 Clam Gulch, Alaska 99568 Feb. 20, 1997 Board of Fisheries Boards Support Section P.O. Box 25526 Juneau, AK, 99802-5526 Dear Dr. John White, Chairman, At the teleconference on Friday, Feb. 14, 1997 the Area H Advisory Committees again (as they had done in November) voiced their objections to the Board generated allocation proposals being addressed and acted upon at the March 1997 meeting. 'There was not objection. to the proposals that went through the proper agenda change request and, or had conservation concerns such as Kenai River coho. Some of the objections voiced were; 1. The Board generated allocation proposals where not requested by an agenda change request from the public or from the Department nor was the agenda change request criteria used. 2. The public is not able to give oral testimony which they should be allowed to give. 3. The proposals were not received in a timely manner to the Adv. Committees or the public especially the new edition of Proposal 1). 4. The allocation proposals should not be generated by the Board but rather in the normal process and time frame of the Cal I for Proposals for the regular 3 year meeting cycle. At the end of the teleconference it was agreed by the Board members present to take the information and concerns discussed at this teleconference to the Board meeting in Ketchikan so the Board could use this information to determine how they wanted to proceed at the March meeting. At our Advisory committee's publicly scheduled meeting on Feb. 19,1997 we unanimously voted to send this letter to the Board at the Ketchikan meeting requesting That the Board eliminate Proposals A, L, D, E. and G from the March meeting. We are requesting this action now so as to maintain the public Trust and support for the Board of Fish and the Advisory Committee process which is being eroded by the unusual manner that these allocation proposals were generated and then presented to the public. Thank you for your time and consideration. Sincerely, David R. Martin, Chairman CITY OF KENAI, ALASKA Federal and State Single Audit Reports June 30, 1996 CITY OF KENAI Federal and State Single Audit Reports June 30, 1996 Independent Auditor's Report on Schedule of Federal Financial Assistance Schedule of Federal Financial Assistance 2 Independent Auditor's Report on the Internal Control Structure Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards 3-4 Independent Auditor's Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs 5-7 Independent Auditor's Report on Compliance Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing .Standards Independent Auditor's Report on Compliance with General Requirements Applicable to Federal Financial Assistance Programs 9 Independent Auditor's Report on Compliance with Specific Requirements Applicable to Major Federal Financial Assistance Programs 10-11 Independent Auditor's Report on Compliance with Specific Requirements Applicable to Nonmajor Federal Financial Assistance Program Transactions 12 Independent Auditor's Report on Schedule of State Financial Assistance 13 Schedule of State Financial Assistance 14 Independent Auditor's Report on the Internal Control Structure for a State Single Audit 15-16 Independent Auditor's Report on Compliance for a State Single Audit 17-18 NUKUNDA, COTTRELL & Co. A Professional Corporation Robert N. .14ikunda CERTIFIED PUBLIC ACCOUNTANTS David 1. Cottrell )ohnie F. Jones 215 Fidalgo, Suite 206 John M. Bost Kenai, Alaska 99611 William S. Coghill (907) 283-3484 O. Andrew Orien FAX (907) 283-5842 Independent Auditor's Report on Schedule of Federal Financial Assistance Honorable Mayor and City Council City of Kenai Kenai, Alaska Ladies and Gentlemen: Offices in: Anchorage Bethel Kenai We have audited the general purpose financial statements of City of Kenai, Alaska as of and for the year ended June 30, 1996, and have issued our report thereon dated December 18, 1996. These general purpose financial statements are the responsibility of the City of Kenai, Alaska's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, .Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements of the City of Kenai, Alaska taken as a whole. The accompanying Schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. December 18, 1996 iel,- 1 v -^10 N 'nII � OG 00 Vl 00 a 00 00 N G a - 1� 1� C' a 1� 1' M 10 M 7 O N m _ - N �- In00 R V � - N M L a U c ' v u o 00 W u.Ina — u v U CAN � V CG O O n U N -� NI O�I R v N al p D 00 M nll — u u a V U X r r O n 00 Ic [- V' Oc 7 'r C 'fl -R10 O N n n 00 7 0 7 C 7 M V^ N a .O N n M + Ln Q c M r1Y z O a`� O N •� 10 10 1 O O O O CD 7 t- r In O 1 u � o c o 0 0 0 v °Qz o a- r .p u o 0 o c o •n w f1. C1 d C1 E E E E \ M M f\1 M M oU J U U o o o 0 o c c o o `d o G aaaa, _ � N C �n �n O O O C O _ C N N O N r 10 O C O O O C O C O D N 00 CD E .• - N N O C V 'd• C Q Q 7 z 7 - ° ° c-, o N N N N N = u C C O O M M M In OO C _U 0A A V C C E 2 u F > F- V c m Q m R 00 0ll w Q Q Q O O L:.7 :L: OL v p V r+ U .V• V .2 'G C C R Q R L C G 7 7 C u R a 7- C:! N Robert N. ldikunda Da%id I. Cottrell lohnie P. )ones John %i. Bost William S. Coghill O. Andrew Orien MIKUNDA, COTTULL & Co. A Professional Corporation CERTIFIED PUBLIC ACCOUNTANTS 215 Fidalgo, Suite 206 Kenai, Alaska 99611 (907) 283-3484 FAX (907) 283-5842 Offices in: Anchorage Bethel Kenai Independent Auditor's Report on the Internal Control Structure Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards Honorable Mayor and City Council City of Kenai Kenai, Alaska Ladies and Gentlemen: We have audited the general purpose financial statements of City of Kenai, Alaska as of and for the year ended June 30, 1996, and have issued our report thereon dated December 18, 1996. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. The management of City of Kenai, Alaska, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute. assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 3 Honorable Mayor and City Council City of Kenai Kenai, Alaska In planning and performing our audit of the general purpose financial statements of City of Kenai, Alaska, for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors and irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of the City Council, the City's management, and appropriate federal and State agencies. However, this report is a matter of public record and its distribution is not limited. , 4 December 18, 1996 4 MIKUNDA, COTTRELL & Co. A Professional Corporation Robert N. Mikunda CERTIFIED PUBLIC ACCOUNTANTS Offices in: (livid 1 Cottrell Anchorage Johnie F. Jones 215 Fidalgo, Suite 206 Bethel John M. Bost Kenai, Alaska 99611 Kenai William S. Coghill (907) 283-3484 O. Andrew Orien FAX (907) 283-5842 Independent Auditor's Report on the Internal Control Structure used in Administering; Federal Financial Assistance Programs Honorable Mayor and City Council City of Kenai Kenai. Alaska We have audited the general purpose financial statements of City of Kenai, Alaska as of and for the year ended June 30, 1996, and have issued our report thereon dated December 18, 1996. We have also audited the compliance of City of Kenai, Alaska with requirements applicable to major federal financial assistance programs and have issued our report thereon dated December 18, 1996. We conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the Qeneral purpose financial statements are free of material misstatement and about whether City of Kenai, Alaska complied with laws and regulations, noncompliance with which would be material to a major federal financial assistance program. In planning and performing our audit for the year ended June 30, 1996, we considered the internal control structure of City of Kenai, Alaska, in order to determine our auditing procedures for the purpose of expressing our opinions on the general purpose financial statements of City of Kenai, Alaska and on the compliance of City of Kenai, Alaska with requirements applicable to major programs and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated December 18, 1996. 5 Honorable Mayor and City Council City of Kenai Kenai, Alaska The management of City of Kenai, Alaska, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs into the following categories: Accounting controls: cash receipts/revenues; purchases/disbursements, and payroll. Administrative controls: General requirements: political activity; Davis -Bacon Act; civil rights; cash management, relocation assistance and real property acquisition, federal financial reports; allowable costs/cost principles: Drug -Free Workplace Act; and administrative requirements. Specific requirements: types of services allowed or unallowed; eligibility; matching, level of effort or earmarking; reporting; special tests and provisions; financial reports and claims for advances and reimbursements; and amounts claimed or used for matching. For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. During the year ended June 30, 1996, City of Kenai, Alaska expended 67% of its total federal financial assistance under major federal financial assistance programs. We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we have considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements rel Honorable Mayor and City Council City of Kenai Kenai, Alaska governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to each of City of Kenai, Alaska's major federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. Our consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. This report is intended for the information of the City Council, City's management, and appropriate federal and State agencies. However, this report is a matter of public record and its distribution is not limited. y / %��GG�LsvHoQa-, December 18, 1996 i7 MIKUNDA, COTTRELL & Co. A Professional Corporation Robert N. Mikund,i CERTIFIED PUBLIC ACCOUNTANTS Offices in: livid I. Cottrell Anchorage Johnie F. lone, 215 Fidalgo, Suite 206 Bethel John M. 13ost Kenai, Alaska 99611 Kenai William S. Coghill (907) 283-3484 O. Andrew Orien FAX (907) 283-5842 Independent Auditor's Report on Compliance Based on and Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards Honorable Mayor and City Council City of Kenai Kenai. Alaska Ladies and Gentlemen: We have audited the general purpose financial statements of City of Kenai. Alaska as of and for the year ended June 30, 1996, and have issued our report thereon dated December 18, 1996. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to City of Kenai, Alaska. is the responsibility of the City of Kenai, Alaska's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of City of Kenai, Alaska's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. This report is intended for the information of the City Council, City's management and appropriate State and federal agencies. However. this report is a matter of public record and its distribution is not limited. D December 18, 1996 E'N MIKUNDA, COTTRELL & Co. A Professional Corporation Robert N. Mikunda CERTIFIED PUBLIC ACCOUNTANTS Offices in: David J. Cottrell Anchorage Johnie F. Jonws 215 Fidalgo, Suite 206 Bethel John M. Bost Kenai, Alaska 99611 Kenai William S. Coghill (907) 283-3484 0. Andrew Orion FAX (907) 283-5842 Independent Auditor's Report on Compliance with General Requirements Applicable to Federal Financial Assistance Programs Honorable Mayor and City Council City of Kenai Kenai, Alaska Ladies and Gentlemen: We have audited the general purpose financial statements of City of Kenai, Alaska as of and for the year ended June 30, 1996, and have issued our report thereon dated December 18, 1996. We have applied procedures to test City of Kenai, Alaska's compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1996: political activity, Davis -Bacon Act, civil rights, cash management, relocation assistance and real property acquisition, federal financial reports, Drug -Free Workplace Act, allowable costs/cost principles, and administrative requirements. Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on City of Kenai, Alaska's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that City of Kenai, Alaska, had not complied, in all material respects, with those requirements. This report is intended for the information of the City Council, the Citv's management, and appropriate State and federal agencies. However, this report is a matter of public record and its distribution is not limited. December 18, 1996 I NUKUNDA, CMTRELL & Co. A Professional Corporation Robert N..Mikunda CERTIFIED PUBLIC ACCOUNTANTS Offices in: David 1. Cottrell Anchorage fohnie F. !ones 215 Fidalgo, Suite 206 Bethel John 1%4. Host Kenai, Alaska 99611 Kenai William S. Coghill (907) 283-3484 O. Andrew Orien FAX (907) 283-5842 Independent Auditor's Report on Compliance with Specific Requirements Applicable to Maior Federal Financial Assistance Programs Honorable Mayor and City Council City of Kenai Kenai, Alaska Ladies and Gentlemen: We have audited the general purpose financial statements of City of Kenai. Alaska of and for the year ended June 30, 1996, and have issued our report thereon dated December 18, 1996. We have also audited City of Kenai, Alaska's compliance with the requirements governing types of services allowed or unallowed: eligibility; matching, level of effort or earmarking; reporting; special tests and provisions; and claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance, for the year ended June 30, 1996. The management of the City of Kenai, Alaska is responsible for the City of Kenai, Alaska's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. We conducted our audit of compliance with those requirements in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether. material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about City of Kenai, Alaska's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, City_ of Kenai, Alaska complied, in all material respects, with the requirements governing types of services allowed or unallowed; eligibility; matching, level of effort, or earmarking; reporting; special tests and provisions; claims for advances and reimbursements. and amounts claimed or used for matching that are applicable to each of its major federal financial assistance programs for the year ended June 30, 1996. 10 Honorable Mayor and City Council City of Kenai Kenai, Alaska This report is intended for the information of the City Council, the City's management, and appropriate federal and State agencies. However, this report is a matter of public record and its distribution is not limited. December 18, 1996 11 MIKUNDA, COTTRELL & Co. A Professional Corporation Robert N. Nlikond,i CERTIFIED PUBLIC ACCOUNTANTS Offices in: David J. Coltreil Anchorage Johnie F. Jones 215 Fidalgo, Suite 206 Bethel John M. Bost Kenai, Alaska 99611 Kenai William S. Coghill (907) 283-3484 O. Andrew Orien FAX (907) 283-5842 Independent Auditor's Report on Compliance with Specific Requirements Applicable to Nonmaior Federal Financial Assistance Program Transactions Honorable Mayor and City Council City of Kenai Kenai, Alaska Ladies and Gentlemen: We have audited the general purpose financial statements of City of Kenai, Alaska as of and for the year ended June 30, 1996, and have issued our report thereon dated December 18, 1996. In connection with our audit of the general purpose financial statements of City of Kenai, Alaska, and with our consideration of the City of Kenai, Alaska's control structure used to administer federal financial assistance programs, as required by Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments, we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the vear ended June 30, 1996. As required by OMB Circular A-128, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed; eligibility; and special tests and provisions that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on City of Kenai, Alaska's compliance with these requirements. Accordingly. we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that Citv of Kenai, Alaska, had not complied, in all material respects, with those requirements. Also, the results of our procedures did not disclose any immaterial instances of noncompliance with those requirements. This report is intended for the information of the City Council, the City's management, and appropriate federal and State agencies. However, this report is a matter of public record and its distribution is not limited. �. December 18, 1996 12 MIKUNDA, COTTRELL & Co. A Professional Corporation Rohert N. Mikunda CERTIFIED PUBLIC ACCOUNTANTS David 1. Cottrell Johnie F. Jones 215 Fidalgo, Suite 206 John M. Bost Kenai, Alaska 99611 William S. Coghill (907) 283-3484 O. Andrew Orien FAX (907) 283-5842 Independent Auditor's Report on Schedule of State Financial Assistance Honorable Mayor and City Council City of Kenai Kenai, Alaska Ladies and Gentlemen: Offices in: Anchorage Bethel Kenai We have audited the general purpose financial statements of the City of Kenai, Alaska as of and for the year ended June 30, 1996, and have issued our report thereon dated December 18, 1996. These general purpose financial statements are the responsibility of the City- of Kenai, Alaska's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about v,-hether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Our audit was made for the purpose of forming an opinion on the general purpose financial statements of the City of Kenai, Alaska, taken as a whole. The accompanying Schedule of State Financial Assistance is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a A-liole. December 18, 1996 13 y a 'nY, ooa o'Doll CD CD M' CD CG V H 1V N- C 'n t-..-. ... b � n `� 'n a N [� d• M �o 00 'n 'T O a O N O O r- b'o N 'n O 00 a0 y O C �C Vl N M 00 a s r' O N N 'n a C N 00 enxIn 0 l� -- a InM --� - a 0 00 a s W ✓] a N N N 7 r Ol N M t� N N r-) y M fz V C V N .`• O 7 10 N ' ' M ' O O M NO N O O o0 r O tl �C C O 'n .n .:; M 'n -t M O �C 00 a C a 7 N 'n 7 00 In .n V N a 'n a a M N m LID M V a R CD .. V d' C ' 00 ' 1� • ' Ci 00 • • ' ' ' i M N fV 10 r- r N ✓7 V U C N N -- - 0 0 N .n N x "r M 4 CD 00 00 n 00 x x � Z U M } N Ltl � y U- N a oo C m M �O O a O^ N .:^ �O .n F L C D - a n 00 a N oo M f� V 7 'n N -- O lC V 00 _ N �C 0000 In C J 10 OC 00 V1 00 l- - .- [� �: - �D M •- M X N -It N V O y t U .p .n Cl N Cl C .n O 'n .n O O 7 0 00 7 09ot- CD C IC O 10 1� oc�olpa O O In N^ o ^ `.. z t� N t� a O O -- C O •- �C ;0 ClN O C-1 - 'n .- .n n'n0"n a O ri ^ o r t� a Nn r 00 - a �C - o00 O M G 0 'n In - .n Q fV Cl, N M .•-� . 00 — — r- It)N r'! [- N 'C N Inrl a M M V 'n 00 n 1O x r M 7 j M r E O 'n N a N �' d' 'n M O 'Z ' • • O C �, O �, O N v' n M ' . ' . ' \.c 00 a l� M n n n I i i O+ C x O� 00 0O a In 7 C 7 J a a - Q y - cz •o _ R ` o J C7 a ;, :.0 00 - X y .G y aci J > 02j p c C pM - 7to C y R x = c> R V fx o c 3 R> c'n•- ai .� os o�✓� r E- F-• F n .� a 2 7 V y i > X C .•_T• y L 7 �' i0 7 .0 •> R d •O y L R C U U¢ H Q V V C U V ca V .- 0 0[ F y ... C R '- �.7 L �. _ C a� OD cd p z G C U R = G W ;/] - - ,n C V J na o�cy^�3i off_ �gy °�� OD E L .'-' C O ` C •_ - C Oaa O V C .@ C R =^ p 7 y to R ty V> E 4F... •R C 2 R n� n Jv U3 �¢¢ EL - per¢'¢ n E L �UF �rx ��_ Id _I 1U A¢ c c, c n .^.J. , 7- MIKUNDA, COTTRELL & Co. A Professional Corporation Kohert N. Mikunda CERTIFIED PUBLIC ACCOUNTANTS Day id J. Cottrell Johnie F. Jones 215 Fidalgo, Suite 206 John M. Bost Kenai, Alaska 99611 William S. Coghill (907) 283-3484 0.:\ndreiv Orion FAX (907) 283-5842 Independent Auditor's Report on the Internal Control Structure for a State Single Audit Honorable Mayor and City Council City of Kenai Kenai, Alaska Ladies and Gentlemen: Offices in: Anchorage Bethel Kenai We have audited the general purpose financial statements of the City of Kenai, Alaska as of and for the year ended June 30, 1996, and have issued our report thereon dated December 18, 1996. We have also audited the City of Kenai, Alaska's compliance with general requirements and specific requirements applicable to major State financial assistance programs and have issued our report thereon dated December 18, 1996. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the .Stare of Alaska Audit Guide and Compliance Supplement for State Single Audits. Those standards and the audit guide require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement and about whether the City of Kenai, Alaska, complied with laws and regulations, noncompliance with which would be material to a major State financial assistance program. The management of the City of Kenai, Alaska, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that State financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 15 Honorable Mayor and City Council City of Kenai Kenai, Alaska In planning and performing our audit of the financial statements of City of Kenai, Alaska for the year ended June 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and on compliance with general requirements and requirements applicable to major State financial assistance programs and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of the City Council, City's management, and appropriate federal and State agencies. This is not intended to limit the distribution of this report, which is a matter of public record. December 18, 1996 16 MIKUNDA, COTTRELL & Co. A Professional Corporation Robert N. Mikunda CERTIFIED PUBLIC ACCOUNTANTS David J. Cottrell Johnie F. Jones 215 Fidalgo, Suite 206 John M. Bost Kenai, Alaska 99611 William S. Coghill (907) 283-3484 O. Andrew Orie❑ FAX (907) 283-5842 Independent Auditor's Report on Compliance for a State Single Audit Honorable Mayor and City Council City of Kenai Kenai, Alaska Ladies and Gentlemen: Offices in: Anchorage Bethel Kenai We have audited the general purpose financial statements of the City of Kenai, Alaska as of and for the year ended June 30, 1996, and have issued our report thereon dated December 18, 1996. As part of obtaining reasonable assurance about whether the general purpose financial statements and the major state assistance programs are free of material misstatement, we have applied procedures to test the City of Kenai, Alaska's compliance with certain provisions of laws and regulations and with the general requirements applicable to its State financial assistance programs and the specific requirements that are applicable to each of its major State financial assistance programs, which are identified in the accompanying Schedule of State Financial Assistance, for the year ended June 30, 1996. The management of the City of Kenai, Alaska, is responsible for the City of Kenai, Alaska's compliance with those requirements. Our responsibility is to express an opinion on compliance with those provisions and requirements based on our audit. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. Those standards and the audit guide require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about City of Kenai, Alaska's compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. The results of our audit procedures disclosed no instances of noncompliance with the requirements referred to above. In our opinion, City of Kenai, Alaska complied, in all material respects, with provisions of laws and regulations and the applicable general requirements governing its State financial assistance programs and with the specific requirements that are applicable to each of its major State financial assistance programs for the year ended June 30, 1996. 17 Honorable Mayor and City Council City of Kenai Kenai, Alaska In connection with our audit of the general purpose financial statements of City of Kenai, Alaska and with our study and evaluation of the City of Kenai, Alaska's internal control structure used to administer State financial assistance programs, we selected certain transactions applicable to certain nonmajor State financial assistance programs for the year ended June 30, 1996. As required by the State of Alaska Audit Guide and Compliance Supplement for State Single Audits, we have performed auditing procedures to test compliance with the requirements governing types of services allowed or unallowed and eligibility that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on City of Kenai, Alaska's compliance with these requirements. Accordinglv, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that City of Kenai, Alaska, had not complied, in all material respects, with those requirements. This report is intended for the information of the City Council, City's management, and appropriate federal and State agencies. This is not intended to limit the distribution of this report, which is a matter of public record. December 18, 1996 18 i COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF KENAI, ALASKA Year ended June 30, 1996 John J. Williams Mayor Richard A. Ross City Manager Prepared by DEPARTMENT OF FINANCE Robin G. Feltman Acting Finance Director COMPREHENSIVE ANNUAL FINANCIAL REPORT CITY OF KENAI, ALASKA For the Fiscal Year Ended June 30, 1996 TABLE OF CONTENTS I. Introductory Section A. Table of Contents B. Organization and Principal City officials C. Letter of Transmittal II. Financial Section A. Auditor's Report B. General Purpose Financial Statements 1. Combined Balance Sheet - All Fund Types and Account Groups 2. Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types 3. Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General, Special Revenue, and Debt Service Funds 4. Combined Statement of Revenues, Expenses, and Changes in Retained Earnings/ Fund Balances - Proprietary Fund Type and Similar Trust Funds 5. Combined Statement of Cash Flows - Proprietary Fund Type and Similar Trust Funds 6. Notes to Financial Statements C. Combining and Individual Fund and Account Group Statements 1. General Fund a. Balance Sheet b. Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual 2. Special Revenue Funds a. Combining Balance Sheet b. Combining Statement of Revenues, Expenditures, and Changes in Fund Balances C. Water and Sewer - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Exhibit A-1 A-2 A-3 A-4 A-5 B-1 B-2 C-1 C-2 C-3 Beginning Page No. 1 4 5 11 13 15 17 19 20 22 41 42 48 50 52 3. .9 5. TABLE OF CONTENTS (Continued) Beginning Exhibit Page No. d. Airport Land System - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual C-4 54 e. Kenai Borough Senior Citizens - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual C-5 56 f. Senior Employment Program - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual C-6 57 g. Council on Aging - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual C-7 58 Debt Service Funds a. Combining Balance Sheet D-1 59 b. Combining Statement of Revenues, Expenditures, and Changes in Fund Balances D-2 60 C. 1967 Water, Sewer, and Streets - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual D-3 61 d. 1984/1986/1993 Special Assessment - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual D-4 62 Capital Projects Funds a. Combining Balance Sheet E-1 63 b. Combining Statement of Revenues, Expenditures, and Changes in Fund Balances E-2 65 Enterprise Funds a. Combining Balance Sheet F-1 69 b. Combining Statement of Revenues, Expenses, and Changes in Retained Earnings F-2 70 C. Statement of Revenues, Expenses, and Changes in Retained Earnings - Budget and Actual: (i) Airport Terminal F-3 71 (ii) Boating Facility F-4 72 (iii) Congregate Housing F-5 73 d. Combining Statement of Cash Flows F-6 74 TABLE OF CONTENTS (Continued) Beginning Exhibit Page No. 6. Trust and Agency Funds a. Combining Balance Sheet G-1 76 b. Nonexpendable Trust funds - Combining Statement of Revenues, Expenses, and Changes in Fund Balances G-2 77 C. Nonexpendable Trust Funds - Combining Statement of Cash Flows G-3 78 d. Deferred Compensation Agency Fund - Statement of Changes in Assets and Liabilities G-4 79 7. General Fixed Assets Group of Accounts a. Statement of General Fixed Assets H-1 80 b. Statement of Changes in General Fixed Assets by Functions and Activities H-2 81 8. General Long -Term Debt Group of Accounts - Statement of General Long -Term Debt I-1 82 Table III. Statistical Section A. General Governmental Expenditures by Function I 83 B. General Revenues by Source II 83 C. Tax Revenues by Source III 85 D. Property Tax Levies and Collections IV 86 E. Property Tax Rates and Tax Levies - All Overlapping Governments V 87 F. Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita VI 88 G. Computation of Direct and Overlapping General Obligation Debt VII 90 H. Computation of Legal Debt Margin VIII 91 I. Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures IX 92 J. Debt Service Requirements to Maturity - General Obligation Bonds X 93 K. Schedule of Ten Largest Taxpayers XI 95 L. Alaska Public Employees' Retirement System - Ten-year Historical Trend Information XII 96 M. Miscellaneous Statistical Data XIII 97 CITY OF KENAI, ALASKA ORGANIZATION AND PRINCIPAL CITY OFFICIALS The City of Kenai was founded in 1791. It is located south of Anchorage on Cook Inlet and the Central Kenai Peninsula. The City is 161 highway miles from Anchorage. By air, Kenai is three hours from Seattle and thirty minutes from Anchorage. Kenai was the site of the first major oil strike in 1957 and has served as a center for exploration and production since that time. Commercial fishing and processing contribute to the economy. Kenai adopted the Council Manager form of government in 1963 and has been operating under this form since that time. The City Council, together with appointed City officials, meets every first and third Wednesday of each month in the City Administration Building for regular Council sessions. In addition, numerous special meetings and work sessions are scheduled throughout the year. The Council, which consists of the Mayor and six Councilmembers, is selected at large and on a non -partisan basis. Annual elections are held in October. The terms of office are three years but are overlapping so that the City is provided with a continuity of knowledge in the City business and legislative matters. CITY COUNCIL Mayor John J. Williams Councilmembers Joseph Moore James C. Bookey III Linda Swarner Hal Smalley Raymond Measles Duane Bannock CITY ADMINISTRATION City Manager Thomas J. Manninen Acting Finance Director Robin G. Feltman City Clerk Carol L. Freas City Attorney Cary Graves Police Chief Daniel L. Morris Fire Chief David Burnett Public Works Director Keith Kornelis Librarian Emily DeForest Parks & Recreation Director Robert Frates Airport Manager Randolph Ernst Senior Center Project Director Patricia A. Porter 4 CITY OF KENAI ►► cd eat 4 4&dza11 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 _ FAX 907-283-3014 b3ftd 1992 December 18, 1996 The Honorable Mayor John J. Williams and City Council City of Kenai Kenai, Alaska 99611 Dear Mayor Williams and Council: The Comprehensive Annual Financial Report of the City of Kenai, Alaska for the fiscal year ended June 30, 1996 was prepared by the City's Finance Department. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation including all disclosures rests with the City. We believe the data as presented is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City's financial activity have been included. This report covers all funds and financial transactions of the City and is presented in three sections. The Introductory Section contains organizational data of the City, the table of contents, and the letter of transmittal. The Financial Section contains the auditor's report, the general purpose financial statements, which present aggregate data by fund type and account group, together with notes to the financial statements, and the combining and individual fund and account group statements. The Statistical Tables present social and economic data, financial trends, and the fiscal capacity of the government. Accounting System and Budgetary Control The City's accounting records for general governmental operations are maintained on a modified accrual basis. Accounting records for the City's Enterprise Funds and the Nonexpendable Trust Funds for land sales are maintained on a full accrual basis. Note l.b to the general purpose financial statements describes these accounting methods. In developing and altering the City's accounting system, consideration is given to the adequacy of internal accounting control. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding (1) the safeguarding of assets against loss from unauthorized use or disposition; and (2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. I The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of costs and benefits requires estimates and judgments by management. Budgetary control is maintained at the object class level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders which result in an overrun of object class balances are not released until additional appropriations are made available. Open encumbrances are reported as reservations of fund balance at year end. The Reporting Entity and Its Services The reporting entity that is included in our comprehensive annual financial report is determined by the criteria set forth by the Governmental Accounting Standards Board. These criteria deal with financial and operational relationships with other entities. Based on these criteria, no agencies, departments, or any operations of the City were excluded from the reporting entity. The City provides the full range of municipal services contemplated by statute or character. This includes police and fire, water and sanitation, social services, public improvements, planning and zoning, and general administrative services. General Governmental Functions Revenues from general governmental functions (which includes General, Special Revenue, Debt Service, and Capital Projects Funds) totaled $10,764,977 in fiscal year 1996, an increase of .4% from 1995. General property taxes produced $1,141,101 of revenues compared to $1,119,539 last year. Sales taxes produced $3,350,333 of revenues compared to $3,306,262 last year. The amount of revenues from various sources and the increases or decreases over last year are shown below: Increase Percent (decrease) Revenue Sources Amount of total from 1995 Taxes $ 4,625,398 42.9% $ 83,410 Licenses and Permits 57,638 .5 12,584 Intergovernmental Revenues 1,684,039 15.6 (986,966) Charges for Services 1,360,116 12.7 85,382 Fines and Forfeits 42,895 .4 6,837 Interest Revenue 1,686,663 15.7 266,995 Miscellaneous Revenues 1,308,228 12.2 578,333 S 10,764,977 100.0% S 46.575 T Misc. Rev. Interest Rev. 15.7% Fines/Forfeits 0.4% Service C 12.79 in"Ovt Rev. - 0.596 15.6% Taxes 42.9% The calendar year 1995 assessed valuation of 310.7 million represented an increase of .58% from the preceding year. The 1995 valuation is the basis for the fiscal year 1995-96 tax levy. Since calendar year 1986, with a record valuation of $328.8 million, assessed values declined sharply to a low of $252.9 in 1990, a 23% decrease. However, a review of Table VI in the statistical section shows that property values, after remaining stable for the three-year period ending with calendar year 1991, appear now to be trending upward. The mill rate for fiscal year 1995-96 (calendar year 1995) tax levy was 3.5 mills, the same as the prior year. Table III in the statistical section shows the historical trend of taxes. All taxes are allocated to the General Fund. In 1996 property taxes increased $21,562 and sales taxes increased $44,071. Sales tax revenues showed an increase in each calendar quarter for 1996. Intergovernmental revenues decreased over $986,966, or 37% from the prior year. Decreases in revenues from federal and state financed construction projects account for the reduction. Interest revenue increased over $266,995, or 18% from the prior year. Average yield on investments purchased increased from 4.9% in FY95 to 6.0% in FY96. Expenditures for general governmental purposes totaled $10,259,799, a decrease of 6.1% from 1995. Increases or decreases in levels of expenditures for major functions of the City over the preceding year are shown on the following page. 7 Increase Percent (decrease) Function Amount of total from 1995 General Government $ 1,024,714 10.0% $ (134,945) Public Safety 2,849,077 27.8 (198,642) Public Works 1,604,486 15.6 426,639 Parks, Recreation and Cultural 1,109,910 10.8 145,267 Water and Sewer 1,030,151 10.0 108,137 Airport Land System 858,131 8.4 284,110 Capital outlay 1,044,324 10.2 (1,332,908) Debt Service 377,874 3.7 (6,928) Social Welfare 361,132 3.5 39,209 $ 10,259,799 100.0% S (670,061) Capin V Airport Land 8.4% Water/Sem 10.0% Parks, Debt Service Social Welfare General GoV't I7qr, 3.5% 10.0% 10.5% Public Works 15.6% Public Safety 27.8% O The single largest decrease, nearly $1.3 million, was in capital projects. Most of these projects were financed substantially with grants, and relate to the reduction in intergovernmental revenues referred to earlier. The debt service reduction is not as significant as in past years because the City called and redeemed the entire 1980 City administration building bonds in FY94. Increased expenditures noted in public works was for the replacement of several pieces of heavy equipment. Fund balances in the major operating funds were maintained at adequate levels. A tabulation of unreserved-undesignated fund balances of General and Special Revenue Funds, compared to last year, follows: General Fund Water and Sewer Airport Land System All Senior Citizen Funds 6-30-96 $ 8,054,689 827,256 7,726,552 33,352 Debt Administration 6-30-95 $ 7,640,612 635,754 6,543,886 33,802 The ratio of net bonded debt to assessed valuation and the amount of bonded debt per capita are useful indicators of the City's debt position to municipal management, citizens and investors. This data is shown in the following summary: Net direct bonded debt $ 1,547,000 Ratio of debt to assessed value .50% Net bonded debt per capita $ 221 Total outstanding general obligation bonds at June 30, 1996 totaled $1,712,000. Fund balances in the Debt Service Funds have been accumulated to retire general obligation bonds. The City has no bond ratings. The Kenai Peninsula Borough and the Central Hospital Service Area have issued significant debt that results in overlapping debt to the City of Kenai. These calculations are based upon the City's assessed value as a percentage of the Borough's and Service Area's assessed values, and applying the percentages to the other agencies' net debt. Kenai's overlapping debt from these two agencies total $5,652,791. The City's net bonded debt per capita, which includes City, Borough, and Service Area debt, is $1,028. Cash Management Cash temporarily idle during the year was invested in U.S. Treasury bills and notes, federal agency securities, and the Alaska Municipal League investment pool. At June 30, 1996, virtually all of the City's cash was invested. 0 Total cash and investments at June 30, 1996 were $31,750,157. Note 2 to the Financial Statements provides more information on cash and investments. Capital Projects Funds Proceeds of general obligation bond issues are accounted for in Capital Projects Funds until improvement projects are completed. Completed projects and uncompleted construction in progress at year end are capitalized in the General Fixed Assets Account Group. During 1995-96, projects costing $2,094,761 were completed. Nonexvendable Trust Funds The City has established two Trust Funds to account for land sales, of which the principal proceeds cannot be spent. At June 30, 1996, the reserved fund balances of the General Government Land Sales Trust Fund and the Airport Land Sales Trust Fund were $1,848,460 and $10,087,546, respectively. General Fixed Assets The general fixed assets of the City are those assets used in general govern- mental functions and exclude the fixed assets of the enterprise funds. The balance of general fixed assets at June 30, 1996 amounted to $93,684,307. This is an increase from June 30, 1995 of $1,514,072. This increase is due primarily to additional construction activity. This amount represents the original cost of the assets and is considerably less than their present value. Depreciation of general fixed assets is not recognized in the City's accounting system. Independent Audit The City Charter requires an annual audit of the books of account, financial records, and transactions of all administrative departments of the City by independent certified public accountants selected by the City Council. This requirement has been complied with and the auditor's report has been included in this report. In addition, financial and compliance audits have been conducted on Federal and State grant programs. Those audit reports are delivered under separate cover. Respectfully submitted, Robin G. Feltman Acting Finance Director 10 MIKUNDA, COTTRELL & Co. A Professional Corporation Robert N. Mikunda CERTIFIED PUBLIC ACCOUNTANTS Offices in: David J. Cottrell Anchorage Johnie F. Jones 215 Fidalgo, Suite 206 Bethel John M. Bost Kenai, Alaska 99611 Kenai William S. Coghill (907) 283-3484 O. Andrew Orien FAX (907) 283-5842 Independent Auditor's Report Honorable Mayor and Members of the City Council City of Kenai, Alaska Ladies and Gentlemen: We have audited the accompanying general purpose financial statements of City of Kenai, Alaska, as of and for the year ended June 30, 1996, as listed in the table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of City of Kenai, Alaska, as of June 30, 1996, and the results of its operations and the cash flows of its proprietary fund types and nonexpendable trust funds for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated December 18, 1996 on our consideration of City of Kenai's internal control structure and a report dated December 18, 1996 on its compliance with laws and regulations. 11 Honorable Mayor and Members of the City Council City of Kenai, Alaska Our audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial. statements listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of City of Kenai, Alaska. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. The other data included under the captions "Introductory Section" and "Statistical Section" in the table of contents have not been audited by us and, accordingly, we express no opinion on such data. December 18, 1996 12 GENERAL PURPOSE FINANCIAL STATEMENTS These financial statements provide a summary overview of the financial position of all fund and account groups and of the operating results of all funds. CITY OF KENAI, ALASKA Combined Balance Sheet - All Fund Types and Account Groups June 30, 1996 ASSETS AND OTHER DEBITS Equity in central treasury (cash and cash equivalents) Receivables (net of allowances for uncollectibles) Due from other funds Other assets Property and rights held under deferred compensation plan Property and equipment in service Accumulated depreciation Construction in progress Amount available in debt service funds Resources to be provided Total assets and other debits LIABILITIES, EQUITY, AND OTHER CREDITS Liabilities: Accounts payable Contracts payable Compensated absences Due to other funds Serial bonds payable Deferred revenue Other liabilities Total liabilities Equity and other credits: Contributions (net of accumulated amortization) Investment in general fixed assets Retained earnings: Reserved Unreserved Fund balances: Reserved Designated Unreserved - undesignated (deficit) Total equity and other credits (deficit) Total liabilities, equity, and Governmental Fund Types Special Debt Capital General Revenue Service Proiects $ 9,891,488 $ 8,698,911 $ 189,861 $ 530,851 1,516,449 489,795 3,926,319 259,225 370,608 - - - $ 11,778,545 S 9,188,706 $ 4,116,180 S 790.076 $ 164,282 $ 29,707 $ - $ - - - - 1,075 406,411 45,159 - - - 3,282 260,856 106,470 141,387 387,490 3,926,319 113,528 7,512 50,181 - - 719,592 515,819 4,187,175 221,073 1,407,481 58,266 189,861 - 1,596,783 27,461 - - 8,054,689 8,587,160 (260,856) 569,003 11,058,953 8,672,887 (70,995) 569,003 other credits S 11,778,545 S 9,188,706 S 4,116,180 $ 790,076 The accompanying notes are an integral part of the financial statements. 13 Exhibit A-1 Proprietary Fund Type Enterprise $ 1,765,843 24,862 13,600 11,680,652 (2,793,464) Fiduciary Fund Types Trust and Agency $ 10,673,204 1,262,802 2,699,917 S 10,691,493 S 14,635,923 $ 13,093 4,571 27,913 45,577 2,699,917 2,699,917 Account Groups Total General General Long- (Memorandum Fixed Assets Term Debt Only) $ - $ - $ 31,750,158 - - 7,479,452 - - 370,608 - - 13,600 - - 2,699,917 93,167,362 - 104,848,014 - - (2,793,464) 516,945 - 516,945 - 165,000 165,000 - 2,947,000 2,947,000 $ 93,684,307 S 3,112,000 $147,997,230 S S - 1,712,000 1,400,000 3,112,000 $ 207,082 1,075 451,570 370,608 1,712,000 4,573,295 4.185.523 11,501,153 9,211,038 - - - 9,211,038 - - 93,684,307 - 93,684,307 272,075 - - - 272,075 1,162,803 - - - 1,162,803 - 11,936,006 - - 13,591,614 - - - 1,624,244 - - - 16,949,996 10,645,916 S 10,691,493 11,936,006 6 14,635,923 93,684,307 - S 9316841307 S 3,112,000 136,496,077 $147,997,230 14 CITY OF KENAI, ALASKA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types Year Ended June 30, 1996 Fund balances - July 1, as previously reported Revenues: Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Interest revenue Miscellaneous revenues Total revenues Other financing sources: Operating transfers in Total revenues and other sources Expenditures: Current: General government Public safety Public works Parks, recreation, and cultural Water and sewer services Airport Social welfare services Capital outlay Debt service Total expenditures Other financing uses: Operating transfers out Total expenditures and other uses Excess of revenues and other sources over (under) expenditures and other uses Residual equity transfers in (out) Fund balances (deficit) - June 30 General $ 11,208,163 4,625,398 57,638 854,117 177,028 42,895 762,663 207,513 6,727,252 113,700 6,840,952 1,024,714 2,849,077 1,604,486 1,109,910 6,588,187 401,975 6,990,162 (149,210) S 11,058,953 Special Revenue S 7,250,203 228,447 1,183,088 924,000 1,067,379 3,402,914 182,732 3,585,646 1,030,151 858,131 361,132 2,249,414 236,229 2,485,643 1,100,003 322,681 $ 8,672,887 The accompanying notes are an integral part of the financial statements 15 Total Debt Capital (Memorandum Service Proiects Only) S (12,716) S 1,046,119 S 19,491,769 - - 4,625,398 - - 57,638 - 601,475 1,684,039 - - 1,360,116 - - 42,895 - - 1,686,663 33,336 1,308,228 33,336 601,475 10,764,977 286,259 288,414 871,105 319,595 889,889 11,636,082 - 1,024,714 - - 2,849,077 - - 1,604,486 - - 1,109,910 - - 1,030,151 - - 858,131 - - 361,132 - 1,044,324 1,044,324 377,874 - 377,874 377,874 1,044,324 10,259,799 - - 638,204 377,874 (58,279) S (70,995) 1,044,324 (154,435) (322,681) S 569,003 10,898,003 738,079 S 20.229,848 Exhibit A-2 16 CITY OF KENAI, ALASKA Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General, Special Revenue, and Debt Service Funds Year Ended June 30, 1996 Fund balances - July 1 Revenues: Taxes Licenses and permits Intergovernmental revenues Charges for services Fines and forfeits Interest revenue Miscellaneous revenues Total revenues Other financing sources: Operating transfers in Total revenues and other sources Expenditures: Current: General government Public safety Public works Parks, recreation and cultural Water and sewer services Airport Social welfare services Debt service Total expenditures General Fund Variance - Favorable Budget Actual (Unfavorable) S 11,208,163 S 11,208,163 S 4,556,000 4,625,398 69,398 44,500 57,638 13,138 870,390 854,117 (16,273) 194,000 177,028 (16,972) 33,000 42,895 9,895 885,000 762,663 (122,337) 70,910 207,513 136,603 6,653,800 6,727,252 73,452 98,470 113,700 15,230 6,752.270 6,840,952 88,682 1,216,008 1,024,714 191,294 3,112,239 2,849,077 263,162 1,831,797 1,604,486 227,311 1,239,399 1,109,910 129,489 7,399,443 6,588,187 811,256 Other financing uses: Operating transfers out 410,287 401,975 8,312 Total expenditures and other uses 7,809,730 6,990,162 819,568 Excess of revenues and other sources over (under) expenditures and other uses (1,057,460) (149,210) 908,250 Residual equity transfers in Fund balances (deficit) - June 30 S 10,150,703 S 11,058,953 S 908,250 The accompanying notes are an integral part of the financial statements. 17 Exhibit A-3 Special Revenue Funds Debt Service Funds Variance- Variance - Favorable Favorable Budget Actual (Unfavorable) Budget Actual (Unfavorable) S 7,250,203 S 7,250,203 - S (12,716) (12,716) $ - 222,784 228,447 5,663 - - 1,194,000 1,183,088 (10,912) - - 873,500 924,000 50,500 - - - 528,312 1,067,379 539,067 - 33,336 33,336 2,818,596 3,402,914 584,318 - 33,336 33,336 230,492 182,732 (47,760) 286,260 286,259 (1) 3,049,088 3,585,646 536,558 286,260 319,595 33,335 1,197,544 1,411,452 390.452 1,030,151 858,131 361.132 2,999,448 2,249,414 167,393 - - 553,321 - - 29,320 - - - 377,910 377,874 36 750,034 377,910 377,874 36 230,229 236,229 (6,000) (180,589) 1,100,003 1,280,592 (91,650) (58,279) 33,371 - 322,681 322,681 - - - S 7,069,614 S 8,672,887 S 1,603.273 S (1�) $ (70,995) S 33.371 18 Exhibit A-4 CITY OF KENAI, ALASKA Combined Statement of Revenues, Expenses, and Changes in Retained Earnings/Fund Balances - Proprietary Fund Type and Similar Trust Funds Year Ended June 30, 1996 Retained earnings/fund balances -- July 1 Operating revenues: Rents and leases Commissions Vehicle parking fees Petroleum sales Wharfage Land sales Interest revenue Other revenue Total operating revenues operating expenses: Personal services Supplies Utilities Repair and maintenance Insurance Depreciation Miscellaneous Expenses chargeable from other funds Total operating expenses _ Operating income (loss) Nonoperating revenue - Interest revenue Net income (loss) before operating transfers Operating transfers out Proprietary Fiduciary Fund Type Fund Type Total Nonexpendable (Memorandum Enterprise Trust Only) S 1,353,132 S 11,942,514 S 13,295,646 324,753 160,009 72,062 37,943 9,736 20.143 624,646 67,088 68,287 109,597 112,727 9,628 320,557 42,660 730,544 74,500 805.044 (180,398) 93,092 (87,306) (44,372) Net income (loss) (131,b/0) Other change in retained earnings - Credit arising from transfer of depreciation to contributions accounts 213,424 Retained earnings/fund balances - June 30 S 1,434,878 The accompanying notes are an integral part of the financial statements. 36,750 150,621 187,371 187,371 187,371 (193,879) (6,508) S 11.936.006 324,753 160,009 72,062 37,943 9,736 36,750 150,621 20,143 812,017 67,088 68,287 109,597 112,727 9,628 320,557 42,660 730,544 74,500 805,044 6,973 93,092 100,065 (238,251) (138,186) 213,424 S 13,370,884 19 CITY OF KENAI, ALASKA Combined Statement of Cash Flows Proprietary Fund Type and Similar Trust Funds Year Ended June 30, 1996 Proprietary Fiduciary Fund Type Fund Type Nonexpendable Enterprise Trust INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Cash received from customers Collection of principal from real estate sales Collection of interest on real estate notes Cash payments to suppliers for goods and services Cash payments to employees for services Net cash provided by operating activities Cash flows from noncapital financing activities - Operating transfers to other funds Cash flows from capital and related financing activities: Acquisition and construction of capital assets Capital contributed by federal and state governments Net cash used for capital and related financing activities Cash flows from investing activities - Interest on investments Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year $ 612,636 $ - $ - 480,464 193,879 (437,552) - (67,087) - Exhibit A-5 Total (Memorandum Only) 612,636 480,464 193,879 (437,552) (67,087) 107,997 674,343 782,340 (44,372) (193,879) (238,251) (256,568) - (256,568) 155,661 - 155,661 (100,907) - (100,907) 93,092 - 93,092 55,810 480,464 536,274 1,710,033 10,192,741 11,902,774 S 1,765,843 S 10,673,205 S 12.439,048 20 Continued Exhibit A-5 (Cont'd) CITY OF KENAI, ALASKA Combined Statement of Cash Flows Proprietary Fund Type and Similar Trust Funds Year Ended June 30, 1996 Proprietary Fiduciary Fund Type Fund Type Nonexpendable Enterprise Trust RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation Changes in assets and liabilities: Decrease in accounts receivable Decrease in provision for uncollectible accounts Decrease in accounts payable Decrease in other liabilities and deferred revenues Net cash provided by operating activities $ (180,398) $ 187,372 $ Total (Memorandum Only) 6,974 320,557 - 320,557 (12,011) 486,971 474,960 (1,621) - (1,621) (18,530) - (18,530) S 107,997 S 674,343 S 782,340 The accompanying notes are an integral part of the financial statements. 21 CITY OF KENAI, ALASKA Notes to Financial Statements June 30, 1996 1. Summary of Significant Accounting Policies a) Reporting Entity: The City of Kenai (the City) is governed by a council of seven citizens elected by the voters of the City. The City Council appoints a City Attorney, City Clerk, and City Manager, who is the chief administrator of City government. The City Council uses an extensive network of advisory boards and commissions in order to ensure needed citizen participation in the City's decision -making process. The boards and commissions have no authority to make financial transactions on behalf of the City. In accordance with authoritative pronouncements issued by the Governmental Accounting Standards Boards, the City's financial statements include all funds, account groups, boards and commissions of the City. As a primary government, the City examined other organizations for financial accountability and other relationships for possible inclusion in this reporting entity as component units. It has been determined that no potential component units warrant such inclusions. b) Basis of Presentation, Measurement Focus, and Basis of Accounting: The accounts of the City of Kenai are organized and operated on a basis of funds and account groups. A fund is an independent fiscal and accounting entity with a self -balancing set of accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance -related legal and contractual provisions. The minimum number of funds are maintained consistent with legal and managerial requirements. Account groups are reporting devices to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. The City has the following fund types and account groups: Governmental funds are used to account for the City's general government activities. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after year end. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt, which is recognized when due, and 22 claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes, sales taxes, and interest on investments are susceptible to accrual. However, property taxes received after the availability period of 60 days, in excess of the estimated uncollectible portion, are deferred and reflected as such on the balance sheet. Most other receipts become measurable and available when cash is received by the City and are recognized as revenue at that time. Entitlements and shared revenues are recorded at the time of receipt, or earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met. Governmental funds include the following fund types: The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The special revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes (not including major capital projects). The debt service funds account for the servicing of general long-term debt not being financed by proprietary or nonexpendable trust funds. The capital projects funds account for the acquisition of fixed assets or construction of major capital projects not being financed by proprietary or nonexpendable trust funds. Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. All proprietary funds apply applicable standards of the Financial Accounting Standards Board issued on or before November 30, 1989 unless those standards conflict with or contradict Governmental Accounting Standards Board pronouncements. Proprietary funds include the following fund type: Enterprise funds are used to account for those operations that are financed and operated in a manner similar to private business or where the City Council has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. Fiduciary funds account for assets held by the City in a trustee capacity or as an agent on behalf of others. 23 Nonexpendable trust funds are accounted for in essentially the same manner as the proprietary funds, using the same measurement focus and basis of accounting. Nonexpendable trust funds account for assets in which the principal may not be spent. Agency funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are accounted for using the modified accrual basis of accounting. This fund is used to account for assets that the government holds for others in an agency capacity. The account groups include the general fixed assets group of accounts used to account for fixed assets not accounted for in proprietary or trust funds, and the general long-term debt group of accounts used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds. c) Appropriations: Budgets for the general fund, special revenue funds, debt service funds, and enterprise funds are annual budgets. Capital project fund budgets are project -length budgets. All budgets are adopted on a basis consistent with generally accepted accounting principles. Annual budgets must be submitted to the City Council by the City Manager during or prior to the sixth week preceding the first day of each fiscal year. The City Council must adopt an annual budget and set the tax rates not later than the tenth day of June for the following year. Budgetary control (the level at which expenditures may not exceed budget) is maintained at the object class level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders which would result in an overrun of object class balances are not released until additional appropriations are made available. Amendments to appropriations may be made by the city administration by transfers within a fund in amounts less than $1,000, except for personal services accounts. Other amendments, including supplemental appropriations, may be made by the City Council. d) Encumbrances at Year -End: Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the general fund and special revenue funds. 24 e) f) g) h) i) Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not represent expenditures or liabilities. Unencumbered, unexpended appropriations lapse at year-end, except for capital project fund appropriations, which are on a project basis rather than an annual basis. The following year's annual budgets are increased by the amount of encumbrances at year end. Therefore, the authority to liquidate year-end encumbrances is in the following year's budget. Cash and Cash Equivalents: For purposes of the Combined Statement of Cash Flows, the enterprise and nonexpendable trust funds consider all equities in the central treasury to be cash and cash equivalents. The central treasury, which holds cash and investments, is used essentially as a cash management pool by each fund. Investments: Investments purchased by the City are recorded at cost, which approximates market value. Investments in the Deferred Compensation Agency Fund are adjusted to market value by the plan trustee and are, therefore, recorded at market value. Inventories: Inventories are valued at cost, which approximates market, using the first-in/first-out method. The costs of inventories are recorded using the consumption method. Plant in Service: Assets comprising property and equipment in service in the airport terminal, boating facility, and congregate housing enterprise funds are stated at cost. Depreciation has been provided by the use of the straight-line method over the estimated economic lives of the assets. Estimated lives of major asset categories are as follows: Buildings - 20 and 40 years Equipment - 14 years Depreciation on enterprise fund assets obtained through capital grants is closed to the related contributions account. General Fixed Assets: Fixed assets acquired by other than enterprise funds for governmental purposes are recorded as expenditures in each fund and are capitalized in the general fixed assets group of accounts. Public domain, or infrastructure, fixed assets, such as roads, 25 J) k) 1) bridges, curbs and gutters, sidewalks, drainage systems, lighting systems, water and sewer systems, and similar assets that are immovable and of value only to the City are also capitalized in the general fixed assets group of accounts. Assets contributed or received as gifts are recorded in the general fixed assets group of accounts at the fair market value when received. Depreciation is not computed on general fixed assets. General fixed assets acquired prior to June 30, 1972 are stated at estimated historical cost determined by an appraisal as of that date with subsequent additions recorded at cost. Upon disposal of significant property items, the general fixed assets group of accounts is relieved of the related cost, or estimated cost, and any receipt is normally accounted for as revenue in the general fund. Receivables and Payables: Transactions between funds that represent lending or borrowing arrangements outstanding at the end of a fiscal year are referred to as "due from other funds" or "due to other funds". Long-term portions of receivables from other funds are offset by a fund balance reserve account to indicate that they are not available for appropriation and are not expendable available financial resources. Real property taxes become a lien on the property as of January 1. Taxes are levied the following July 1 and are due in equal installments on August 15 and November 15. Property taxes are recorded as receivable in the fiscal year in which they are due. All trade and property tax receivables are shown net of an allowance for doubtful accounts. All personal property taxes receivable are included in the allowance account. Compensated Absences: Annual leave (vacation and sick leave) is recorded as an expenditure in the period it is earned by the employees. The total liability, which includes salary -related benefit payments, is presented in the related fund balance sheet. The City makes annual appropriations for the full amount of leave accrued, which is available to employees at essentially their discretion. Each employee is allowed to accumulate up to 80 days of annual leave at the end of a calendar year, with any excess accumulation paid in cash in the following January. The City's experience is that most earned leave is used by employees in the subsequent year and is paid with expendable available resources. Accordingly, the City accrues all leave in the appropriate fund, and none in the general long-term debt group of accounts. Pension Plan: Substantially all permanent employees of the City participate in the Public Employees Retirement System (PERS) administered by the State of Alaska. Pension costs are funded on a current basis as 26 required by PERS. Pension costs are recorded in the accounts as funded. m) Long -Term Debt Obligations: The City records long-term debt of governmental funds at face value in the general long-term debt group of accounts. Other governmental fund obligations not expected to be financed with current available financial resources are also recorded in the general long-term debt account group. Long-term debt and other obligations financed by proprietary funds are recorded as liabilities in the appropriate funds. The various debt service funds are used to accumulate monies for the payment of principal and interest of general long-term debt. The 1967 water, sewer, and streets debt service fund is used to repay the 1967 water, sewer and streets general obligation debt. The 1984/1986/1993 special assessment debt service fund is used to repay 1984 special assessment debt with government commitment, the 1986 refunding special assessment debt with government commitment, and the 1993 refunding special assessment debt with government commitment. n) Fund Equity Reserves and Designations: The types of reserves and designations of the City's fund balances and retained earnings are as follows: Reserves for encumbrances represent outstanding purchase orders as of the fiscal year end that will be honored by the City in the next fiscal year. The general fund reserve for contributions to capital improvements represents legally segregated monies to be used, following legislative approval, for capital outlays or for construction of capital assets. A portion of interest revenue has been dedicated to this reserve. The general fund reserve for long-term receivable from debt service funds is equal to amounts advanced to two debt service funds, and are not expected to be repaid next fiscal year. Reserves for debt service represent portions of debt service fund balance restricted for payment of debt service. The congregate housing enterprise fund reserve for repair and replacement is established by ordinance to provide a source for significant repairs, renewals, or replacement of fixed assets. Fund balances of nonexpendable trust funds are reserved for investments, and represent the amount of cash, cash equivalents, and notes and interest receivable from land sales. In the case of the general government land sales trust fund, by charter, the monies cannot be spent. In the case of the airport land sales 27 trust fund, by ordinance, the monies cannot be spent, and the interest earned is restricted for support of the Kenai Municipal Airport. Designations for subsequent year's expenditures represent the portions of fund balances that were appropriated in the following year's operating budget. The general fund designation for self-insurance provides a source of financing should the City replace an asset as a result of an uninsured loss. The City does not normally maintain property insurance for vehicles and small equipment. The general fund designation for working capital segregates a portion of fund balance for the purpose of meeting cash flow requirements necessary for the normal daily operations of the City. This balance has been set by ordinance at $400,000. The general fund designation for equipment replacement provides a source of financing to replace equipment, such as street maintenance and firefighting equipment, as they become worn or obsolete. Amounts are appropriated at the discretion of the City Council to this account. The general fund designation for athletic expenditures is financed from revenues from oil, gas, and mineral rights of certain lands donated to the City. The donor of the lands requested that such revenues be set aside for athletic programs sponsored by the City. Proprietary funds' contributions represent equity acquired through grants and capital contributions from developers, customers, or other funds. o) Interest Earnings: In accordance with the Kenai Municipal Code, interest earned on City investments is recorded in the general fund, except that interest earned on cash held in the airport land system special revenue fund (including cash in the airport land sales trust fund) and the airport terminal and congregate housing enterprise funds is recorded in these funds. p) Memorandum Only Totals - Combined Statements: Total columns are presented in several of the combined financial statements in the General Purpose Financial Statements. Those total columns are captioned as memorandum only and are presented for overview informational purposes only. They do not fairly present financial position or results of operation for the governmental unit as a whole in conformity with generally accepted accounting principles. Interfund eliminations have not been made in the aggregation of this data. 28 2. Cash and Investments The City maintains a central treasury that is available for use by all funds. Each fund type's portion of the central treasury is displayed on the combined balance sheet as "Equity in Central Treasury". At year-end, all of the City's bank deposits were either insured or collateralized with securities held by the City's agent in the City's name. The City's investment policy authorizes the City to invest in: (a) obligations of the United States or an agency or instrumentality of the United States; (b) certificates of deposit with banks and savings and loan associations; (c) repurchase agreements; (d) money market mutual funds consisting primarily of obligations of the United States or an agency or instrumentality of the United States, or repurchase agreements collateralized with such obligations; and (e) the Alaska Municipal League (A.M.L.) Investment Pool. Generally, maturities cannot exceed two years from the date of purchase. Repurchase agreements must be collateralized with United States government obligations. Certificates of deposit must be collateralized with obligations of the United States or its agencies or instrumentalities. Collateral must be held by a third party trustee. The City complied with its investment policy throughout the year. The City's investments, exclusive of accrued interest, at year-end are shown below. Adjustments to cost are made by amortizing over the holding period of the investment significant premiums or discounts. All of the United States treasury bills, treasury notes, and United States agency securities were purchased for the City by National Bank of Alaska or U.S. Bancorp Securities, are held in a custodial account in the National Bank of Alaska's Trust Department, and are recorded in its internal records in the City's name in accordance with a safekeeping agreement. U.S. treasury notes U.S. agency securities A.M.L. investment pool Total investments Carrying Amount $ 15,761,017 9,924,187 6,162,871 �S 31,848,075 Market Value $ 15,769,315 9,907,964 6,162,871 $ 31.840.150 29 3. 4. Accounts Receivable and Valuation Allowances The City maintains accounts receivable balances of which a portion is reserved as an allowance for doubtful receivables. At June 30, 1996, the following funds have recorded receivables and recognized allowances for doubtful receivables as follows: Special Debt General Revenue Service Taxes $ 871,001 $ - $ - Federal government - 1,480 - State of Alaska 128,334 7,399 - Customers 60,834 114,593 - Special assessments 46,398 361,453 1,903,268 Accrued interest 472,824 - 1,454,010 Other 6,812 14,870 569,041 Total receivables 1,586,203 499,795 3,926,319 Less allowance for uncollectibles (69,754) (10,000) - Net receivables $ 1,516,449 489,795 $ 3,926,319 Trust Capital and Proiects Enterprise Agency Federal government $ 186,067 $ - $ - State of Alaska 73,158 - - Notes - - 1,250,859 Customers - 24,862 - Accrued interest - - 11,943 Total receivables S 259,225 $ 24,862 $ 1,262,802 Pension Plans and Deferred Compensation Plan a) Defined Benefit Pension Plan: The City's employees participate in the Alaska Public Employees Retirement System (PERS). For the year ended June 30, 1996, the City's payroll for employees covered under PERS was $4,355,747 and total payroll was $4,667,104. 1) Plan Description: The Plan is a joint -contributor agent multiple -employer PERS plan created by State of Alaska statutes effective January 1, 1961. Any municipality or other political subdivision of the State may request to become an employer in this system. Benefit and contribution provisions are established by State law and may be amended only by the State Legislature. All non -temporary employees working 15 hours or more per week are participants in PERS. 30 2) Pension Benefits: Employees hired prior to July 1, 1986, with five or more years of credited service are entitled to annual pension benefits beginning at normal retirement age 55 or early retirement age 50. For employees hired after June 30, 1986, the normal and early retirement ages are 60 and 55, respectively. The normal annual pension benefit is equal tc 2% of the member's highest three-year average monthly compensation for each of the first ten years of service, 2.25% for each of the second ten years of service and 2.50% for each of the third ten years of service. All service earned prior to July 1, 1986, will be calculated using the 2% multiplier. Employees with 30 or more years of credited service (20 years for policemen and firemen) may retire at any age and receive a normal benefit. The system also provides death and disability benefits. Major medical benefits are provided without cost to all employees hired before July 1, 1986. Employees hired after June 30, 1986, may elect major medical benefits. 3) Contributions: Employees who are required to contribute 6.75% of their annual salary to PERS, except Public Safety employees who contribute 7.5% of their annual salary. The Plan's funding policy provides for periodic employer contributions at actuarially determined rates that expressed as percentages of annual. covered payroll are sufficient to accumulate sufficient assets to pay benefits when due. Contributions to the City amounted to 1.03%. 4) Funding Status and Progress: The Pension Benefit Obligation is a standardized disclosure measure of the present value of pension benefit, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1995. Significant actuarial assumptions used in the valuation include: a. A rate of return on the investment of present and future assets of 8.0% per annum compounded annually; b. Projected salary increases of 5.5% for the first five years of employment and 4.5% per year thereafter; C. Health cost inflation of 8.5% in 1996, trending downward by 1.0% per year to 5.5% in 1999 and thereafter; 31 d. Total inflation, as measured by the Consumer Price Index for urban and clerical workers for Anchorage, is assumed to increase 4.0% annually; and e. Assets are valued at market value; effective June 30, 1994, the asset valuation method recognizes 20% of the investment gain or loss in each of the current and preceding four years. The significant actuarial assumptions used to compute contribution requirements are the same as those used to compute the standardized measure of the pension benefit obligation. Assets in excess of the pension benefit obligation at June 30, 1995,were as follows (in thousands): Pension benefit obligation: Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits $ 7,427 Current employees: Accumulated employee contributions including allocated investment income 2,597 Employer -financed vested 7,485 Employer -financed nonvested 308 Total pension benefit obligation 17,817 Net assets available for benefits 18,463 Assets in excess of pension benefit obligation $ 646 5) Actuarially Determined Contribution Requirements and Contributions Made: _ The system's funding policy provides for actuarially determined periodic contributions at rates that, for individual employees, increase gradually over time so that sufficient assets will be available to pay benefits when due. The rate for the City's employee group as a whole has tended to remain level as a percentage of annual covered payroll. The contribution rate for normal cost is determined using the projected unit credit actuarial funding method. The unfunded accrued benefit liability is amortized over 25 years. The contribution to PERS for 1996 of $352,174 was made in accordance with actuarially determined requirements computed through an actuarial valuation performed as of June 30, 1994. The City contributed $44,864 (1.03% of current covered payroll), and employees contributed $307,310 normal cost (7.068 of current covered payroll). The City's contribution consisted of (a) $491,764 normal cost (11.29% 32 3 of current covered payroll) less (b) $446,900 amortization of assets in excess of pension benefit obligation (10.26% of current covered payroll). 6) Trend Information: Ten-year trend information and annual financial reports of PERS are available from the individual system at Department of Administration - Retirement and Benefits Division, Box 110203, Juneau, Alaska 99811-0203. Ten-year trend information is also available in a table in the Statistical Section of this Comprehensive Annual Financial Report. Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Three-year trend information follows: Year Ended June 30 1993 1994 1995 Net assets available for benefits as a percentage of the pension benefit obligation 110.8% 102.4% 103.6% Assets in excess of the pension benefit obligation as a percentage of annual covered payroll 40.4% 10.2% 15.6% Employer contributions as a percentage of annual covered payroll 0.0% 3.91% 4.77% Defined Contribution Pension Plan: 1) Plan Description: All non -temporary employees working 15 hours or more per week, after a six-month service requirement, are participants in a supplemental retirement money purchase plan administered under Section 401 (a) of the Internal Revenue Code. This is a defined contribution plan authorized by City ordinance whereby the City contributes 4% of base wages, up to $1,500 per participant per calendar year. No employee contributions are required. Employees vest in the plan with no minimum service credit, following the six-month waiting period. 2) Investments: The plan does not own any notes, bonds, or instruments of the City. 33 3) Contributions: City (employer) contributions for the fiscal year ended June 30, 1996 were $122,200, based upon 4% of covered payroll of $3,055,000. Total current -year payroll was $4,667,104. The amount contributed was equal to the amount required under City ordinance. c) Deferred Compensation Plans: Employees may voluntarily contribute to two deferred compensation plans administered under Section 457 of the Internal Revenue Code. The City retains title to such contributions until they are paid or made available to the employees by the plan administrators. These amounts, including earnings, are reported at market value as assets and liabilities in the Deferred Compensation Agency Fund. Assets in the plan at June 30, 1996, which are designated for deferred compensation benefits, amounted to $2,699,917. The City's fiduciary responsibility under the Plan is limited to the transfer of the monies to the plan administrators in accordance with the employees' instructions, and the authorization of withdrawals to employees upon separation from City employment or other events set out in the IRS Code. S. Changes in Long -Term Debt The following is a summary of general long-term obligation transactions of the City for the year ended June 30, 1996: General long-term debt, Bonds retired General long-term debt, July 1, 1995 June 30, 1996 $ 3,391,000 (279,000) $ 3,112,000 General obligation bonds payable at June 30, 1996 are comprised of the following individual issues: $1,400,000 of 1967 water, sewer and streets serial bonds due in annual installments of $20,000 to $85,000 through September 1, 1997; interest at 5.3% to 6% $1,902,206 of 1986 advance refunding serial bonds that will be primarily repaid through special assessment collections, but have full government commitment, due in annual installments of $20,000 to $179,000 through October 1, 1996; interest at 4.5% to 7.4% $1,430,000 of 1993 advance refunding serial bonds that will be primarily repaid through special assessment collections, but have full government commitment, due in annual installments of $20,000 to $195,000 through October 1, 2004; interest at 2.75% to 5.35%, $ 165,000 177,000 1,370,000 S 1,712,000 34 Other long-term debt is a loss contingency of $1,400,000 for contaminated soils described in footnote #16. The annual requirements to pay all general obligation bonds outstanding as of June 30, 1996, including interest payments of $344,675 are as follows: Fiscal Years Ending 1997 $ 357,042 1998 344,409 1999 238,659 2000 220,294 2001 206,887 2002-2005 _689,384 $ 2.056,675 All general obligation bond payments are made from debt service funds. Financing of debt payments of the 1967 water, sewer and streets bonds is from fund balance in the related debt service fund. Financing of debt payments of the 1986 advance refunding bonds and the 1993 advance refunding bonds is from an annual transfer from the general fund and from special assessment collections. 6. Defeasance of General Obligation Debt In July, 1993 the City defeased certain general obligation bonds that had been issued in 1986 by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the City's financial statements. At June 30, 1996, $1,285,000 of those general obligation bonds outstanding are considered defeased. 7. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; environmental contamination; and natural disasters. Risk financing activities are accounted for in various operating funds, with unallocated or City-wide activities being accounted for in the general fund. The City purchases commercial insurance to transfer a substantial portion of the above risks of loss. Property insurance is purchased to provide coverage for buildings and heavy equipment, generally with deductibles of $25,000. Various liability insurance policies are purchased to provide protection against torts, injuries, and errors and omissions. Most liability policies are written with low or zero deductibles. In addition to the deductibles on insurance policies, the City retains risk of loss related to certain potential liabilities and property damages. These include environmental liabilities, employment discrimination, and vehicle property losses. Settled claims have not 35 exceeded commercial coverage in any of the past three fiscal years. The City analyzes potential losses on a case -by -case basis to determine amounts that should be accrued or disclosed in the financial statements. At June 30, 1996, the City has recorded a liability in the general long- term debt group of accounts in recognition of certain losses related to contaminated soil remediation. The City has retained the risk of loss for such exposures. There has been no change in the balance of claims liabilities during the past year. 8. Operating Lease Revenues The general fund and. the airport land system special revenue fund derive revenues from the lease of unimproved land. These leases are generally of a long-term nature and meet the criteria of operating leases. Investment in these properties has been capitalized, where appropriate, in the general fixed assets group of accounts. A schedule of minimum future rentals on noncancelable operating leases follows: Fiscal Years General Ending Fund 1997 $ 26,555 1998 31,555 1999 31,555 2000 31,555 2001 31,555 After 2001 7251765 S 8781,540 9. Interfund Receivables and Payables Airport Land System Fund $ 261,124 261,124 261,124 239,524 239,524 10.060,008 S 11,322,428 At June 30, 1996, the following amounts were owed to the general fund: Senior employment program special revenue fund $ 3,282 1974 advance refunding debt service fund 11,167 1984/1986/1993 special assessment debt service fund 249,689 $ 264,138 The amounts represent negative cash balances in the respective funds. In the case of the special revenue fund, a receivable from the State of Alaska received shortly after year-end eliminated the negative cash balance. In the case of the debt service funds, principal and interest collections on future installments of special assessments should eliminate the negative cash balances. 36 10. Fund Balances and Contributed Capital The following schedule details reserved and designated fund balances and contributions at June 30, 1996. Fund Tyne General: Reserve for encumbrances $ 200,413 Reserve for contributions to capital improvements 946,212 Reserve for long-term receivable from debt service funds 260,856 Total reserved fund balance 1,407,481 Designated for subsequent year's expenditures 703,162 Designated for self-insurance 103,475 Designated for working capital 400,000 Designated for equipment replacement 353,683 Designated for athletic expenditures 36,463 Total designated fund balance 1,596,783 Special revenue: Reserve for encumbrances 58,266 Designated for subsequent year's expenditures 27,461 Debt service: Reserve for debt service 189,861 Enterprise: Contributions from the City of Kenai 2,129,754 Contributions from federal and state governments 8,502,364 Contributions from others 97,000 Less accumulated amortization (1,518,080) Net contributions 9,211,038 Reserve for repair and replacement 272,075 Trust and agency: Reserve for investments 11,936,006 11. Changes in General Fixed Assets A summary of the changes in general fixed assets during the year ended June 30, 1996 follows: July 1, June 30, 1995 Additions Deletions 1996 Land $ 6,013,598 $ - $ - $ 6,013,598 Buildings 17,729,037 51,668 - 17,780,705 Land Improvements 42,242,587 83,364 - 42,325,951 Machinery and Equipment 5,680,872 853,157 15,726 6,518,303 Vehicles 999,980 167,653 49,658 1,117,975 Water and Sewer System 17,599,913 1,810,917 - 19,410,830 Construction in Progress 1,904,248 707,458 2,094,761 516,945 Total S 92.170,235 3,674,217 S 2,160,145 $ 93,684,307 37 A summary of construction in progress and significant commitments at June 30, 1996 follows: Parks and Recreation Water and Sewer Streets Miscellaneous Construction in Progress $ 97,743 368,759 22,258 28,185 SS 516,945 Significant Commitments $ 32,258 3,085,433 177,742 $ 3,295,433 Required Future Financing A summary of proprietary fund type property and equipment at June 30, 1996 follows: Airport Boating Congregate Terminal Facility Housing Total Land $ 6,043 $ - $ 274,500 $ 280,543 Buildings 3,394,157 - 4,909,341 8,303,498 Equipment 144,143 158,279 - 302,422 Improvements other than buildings 677,375 2,116,814 - 2,794,189 Total property and equipment in service 4,221,718 2,275,093 5,183,841 11,680,652 Accumulated depreciation (1,797,395) (521,556) (474,513) (2,793,464) Net property and equipment in service $ 2,424,323 S 1,753,537 S 4,709,328 $ 8,887,188 12. Fund Deficits The 1974 advance refunding debt service fund had a deficit fund balance at June 30, 1996 of $11,167. The deficit is caused by delinquent special assessments receivable. In time, the delinquencies will be brought current or the City will sell land at a foreclosure sale to eliminate the deficit. The 1984/1986/1993 special assessment debt service fund had a deficit fund balance at June 30, 1996 of $249,689. The deficit is caused by delinquencies on installments of special assessment districts. A substantial amount of the delinquencies referred to above are in a special assessment district known as Inlet Woods. At June 30, 1996, delinquent installments, including penalties, on Inlet Woods totaled $2,299,255. Because these delinquent special assessment receivables are not considered available under the modified accrual basis of accounting, they are included in deferred revenue rather than revenue. The collection of the delinquent assessments, as well as unbilled assessments of $1,407,763, in Inlet Woods is doubtful. As a result, the 38 City transferred $286,259 from the general fund to the 1984/1986/1993 debt service fund to help pay debt service on the related general obligation debt, and a $270,417 transfer is budgeted for next fiscal year. 13. Delinquent and Deferred Special Assessments The following amounts of special assessments principal receivable were delinquent and deferred at June 30, 1996: Delinquent Deferred General fund $ 8,770 $ 37,628 Water and sewer. fund - 361,453 Debt service funds: 1974 advance refunding 56,170 - 1984/1986/1993 special assessment 423,846 1,423,252 Total S 488.786 S 1.822.333 The City is involved in foreclosure proceedings or legal action with regard to the delinquent assessments. 14. Segment Information for Enterprise Funds The City maintains three enterprise funds. The airport terminal fund provides lease space for airport businesses that provide service to the traveling public. The boating facility leases space for commercial fish operations, and provides services such as fish unloading and launch ramp to the general public. The congregate housing fund provides apartment style housing for senior citizens. Airport Boating Congregate Terminal Facility Housing Operating revenues $ 308,985 $ 86,863 $ 228,798 Depreciation expense 131,193 64,226 125,138 Operating income (loss) (36,657) (112,975) (30,766) Operating transfers out - - 44,372 Net income (loss) 40,297 (112,975) (59,000) Current capital contributions - - 155,661 Property & equipment additions - 82,227 174,341 Net working capital 1,429,275 76,058 253,395 Total assets 3,866,398 1,837,661 4,987,434 Total equity 3,853,598 1,829,595 4,962,723 15. Alaska Courthouse Financing During fiscal year 1992-93, the City borrowed $4,275,000 from a bank to help provide financing for construction of a State of Alaska courthouse. The City also received $1,900,000 in grants from the State of Alaska to provide additional financing. The City donated land valued at $196,600 as the building site. The City entered into a lease with the Alaska Court System that requires the State of Alaska, subject to annual 39 appropriations, to make principal and interest payments to repay the loan over a ten-year period. The City has no obligation to repay the loan or to make rental payments. The debt is not shown in the City's financial statements. The sole security for the loan is an assignment to the bank by the City of its rights under the lease. The City's obligation is to manage construction of the courthouse, which was substantially completed in fiscal year 1993-94. The State of Alaska is responsible for operation, maintenance, and repairs of the building. At the end of the ten-year lease period, the State will own the building. The State is showing the loan as debt in its financial statements. The city recorded activity related to construction of the building in a capital project fund. 16. Contingencies The City is involved in numerous lawsuits arising in the ordinary course of operations, including actions commenced and claims asserted against it. Management of the City does not believe that the ultimate resolution of these lawsuits and claims will have any material effect upon its financial position or results of operations, and therefore, no provision has been made in the accompanying financial statements. The City is aware of the probability of losses related to contaminated soils remediation. Several City -owned locations appear to be contaminated, primarily from various types of petroleum products. The City administration has determined that it is probable that remediation of one location will cost between $1,400,000 and $2,400,000, of which $1,400,000 has been recorded as a liability in the general long-term debt group of accounts. Ultimately, the liability will probably result in an expenditure in the general fund. The City is unable to determine a reasonable estimate of the costs to remediate other sites. However, it is expected that such costs should not exceed $1,500,000. No amounts have been accrued in the financial statements to reflect those costs. It is anticipated that approximately one-half of any eventual expenditure which may result in the future from this expected loss will be charged to the general fund, with the other one-half charged to the airport land system special revenue fund. 40 COMBINING AND INDIVIDUAL FUND AND ACCOUNT GROUP STATEMENTS GENERAL FUND The General Fund is established to account for the revenues and expenditures necessary to carry out basic governmental activities of the City such as police protection, fire protection, recreation, planning, legal services, administrative services, etc. Appropriations are made from the fund annually. The fund will continue to exist indefinitely. Revenue, for this and other funds, is recorded by source, i.e., taxes, licenses, service charges, etc. Expenditures are recorded first by function, then by activity and object of the expenditure. General Fund expenditures are made primarily for current day-to-day operating expenses and operating equipment. Capital expenditures for large-scale public improvements, such as buildings, water and sewer projects or streets, are accounted for elsewhere in the Capital Projects Funds or Enterprise Funds. CITY OF KENAI, ALASKA General Fund Balance Sheet June 30, 1996 ASSETS Equity in central treasury Accounts and taxes receivable: Taxes Less allowance for uncollectibles Other Total accounts and taxes receivable Special assessments receivable: Delinquent principal Deferred principal Total special assessments receivable Other receivables: Delinquent assessment installment interest Assessment penalty and interest Interest Due from special revenue fund Due from debt service funds Due from capital project funds Total other receivables Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Deposits by others Compensated absences Deferred property tax revenue Deferred special assessments Other liabilities Total liabilities Fund balance: Reserve for encumbrances Reserve for contributions to capital improvements Reserve for long-term receivable from debt service funds Unreserved: Designated for subsequent year's expenditures Designated for self-insurance Designated for working capital Designated for equipment replacement Designated for athletic expenditures Undesignated Total fund balance Total liabilities and fund balance Exhibit B-1 $ 9,891,488 871,001 (69,754) 189,168 990,415 8,770 37,628 46,398 2,058 4,754 472,824 3,282 260,856 106.470 850,244 S 11,778,545 $ 164,282 7,512 406,411 84,771 53,210 3,406 719,592 200,413 946,212 260,856 703,162 103,475 400,000 353,683 36,463 8.054.689 11,058,953 S 11,778,545 41 CITY OF KENAI, ALASKA General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Fund balance - July 1 Revenues: Taxes: General property General sales Hotel/motel room Penalty and interest on taxes Total taxes Licenses and permits: Building permits Animal control licenses and fees Other Total licenses and permits Intergovernmental revenues: Kenai Peninsula Borough State of Alaska shared revenues: General revenue sharing Electric utility tax Fish tax Liquor licenses Other shared revenues Municipal assistance State of Alaska grants: Library grants Other Total intergovernmental revenues Charges for services: Ambulance fees Recreation center charges Other Total charges for services Fines and forfeits: Court fines Library fines Other forfeitures Total fines and forfeits Exhibit B-2 Variance - Favorable Budget Actual (Unfavorable) $ 11,208,163 S 11,208,163 $ - 1,098,000 3,350,000 95,000 13,000 4,556,000 35,000 5,000 4,500 44,500 44,000 205,000 36,000 175,000 40,000 1,500 355,000 13,890 870,390 112,000 78,500 3,500 194,000 22,000 11,000 33,000 1,141,101 3,350,333 107,914 26.050 4,625,398 47,871 5,787 3,980 57,638 48,000 229,805 27,534 98,736 30,500 1,513 394,049 13,890 10,090 854,117 94,493 76,666 5,869 177,028 27,940 14,315 640 42,895 43,101 333 12,914 13,050 69,398 12,871 787 (520) 13,138 4,000 24,805 (8,466) (76,264) (9,500) 13 39,049 10,090 (16,273) 17,507 (1,834) 2,369 (16,972) 5,940 3,315 640 9,895 42 Continued Exhibit B-2 (Cont'd) CITY OF KENAI, ALASKA General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Miscellaneous revenues: Interest revenue Rents and leases Library donations Oil and gas royalties Special assessments Other Total miscellaneous revenues Total revenues Other financing sources - Operating transfers from: Enterprise fund Trust fund Total other financing sources Total revenues and other sources Expenditures: General government: Legislative: Personal services Supplies Other services and charges Capital outlays Total legislative City clerk: Personal services Supplies Other services and charges Capital outlays Total city clerk City attorney: Budget $ 885,000 32,000 2,700 36,210 955,910 Actual $ 762,663 40,190 2,758 13,073 22,011 129,481 970,176 Variance - Favorable (Unfavorable) $ (122,337) 8,190 58 13,073 22,011 93,271 14,266 6,653,800 6,727,252 73,452 23,470 75,000 98,470 6,752,270 25,198 2,983 138,440 3,346 169,967 62,597 6,690 18,600 27,000 114,887 Personal services 144,268 Supplies 3,044 Other services and charges 208,121 355,433 Expenditures chargeable to other funds (267,500) Total city attorney 87,933 44,372 69,328 113,700 6,840,952 25,029 2,856 93,332 3,346 124,563 59,589 1,814 12,180 3,347 76,930 137,160 2,109 210,319 349,588 (267,500) 82,088 20,902 (5,672) 15,230 88,682 169 127 45,108 45,404 3,008 4,876 6,420 23,653 37,957 7,108 935 (2,198) 5,845 5,845 Continued 43 Exhibit B-2 (Cont'd) CITY OF KENAI, ALASKA General Fund Statement cf Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 City Manager: Personal services Supplies Other services and charges Total city manager Finance: Personal services Supplies Other services and charges Capital outlays Expenditures chargeable to other Total finance Non -departmental: Supplies Other services and charges Capital outlays Pass -through grants Total non -departmental Planning and zoning: Personal services Supplies Other services and charges Capital outlays Total planning and zoning Land administration: Supplies Other services and charges Total land administration Total general government Public safety: Police: Personal services Supplies Other services and charges Capital outlays Total police Budget $ 108,397 2,187 27,321 137,905 271,553 11,442 21,661 5,389 310,045 funds (50,000) 260,045 3,778 236,990 15,300 94,000 350,068 47,062 1,661 23,694 3.000 75,417 171 19,615 19,786 1,216,008 1,157,196 36,740 92,214 53,652 1,339,802 Actual $ 106,968 748 25,429 133,145 238,405 11,047 17,616 5,359 272,427 (50,000) 222,427 3,725 198,234 15,060 90,176 307,195 38,629 1,420 18,961 2,895 61,905 109 16,352 16,461 1,024,714 1,064,848 31,079 74,941 30,786 1,201,654 Variance - Favorable (Unfavorable) $ 1,429 1,439 1,892 4,760 33,148 395 4,045 30 37,618 37,618 53 38,756 240 3,824 42,873 8,433 241 4,733 105 13,512 62 3,263 3,325 191,294 92,348 5,661 17,273 22,866 138,148 44 Continued Exhibit B-2 (Cont'd) CITY OF KENAI, ALASKA General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Fire: Personal services Supplies Other services and charges Capital outlays Expenditures chargeable to Total fire Communications: Personal services Supplies Other services and charges Capital outlays Total communications Animal control: Personal services Supplies Other services and charges Total animal control Total public safety Public works: Public works administration: Personal services Supplies Other services and charges Capital outlays Total public works admini Shop: Personal services Supplies Other services and charges Capital outlays Budget $ 1,182,341 50,910 77,248 150,853 1,461,352 other funds (250,000) 1,211,352 399,207 4,207 35,145 2,500 441,059 105,608 7,703 6,715 120,026 3,112,239 Actual $ 1,114,580 48,393 75,920 147,627 1,386,520 (250,000) 1,136,520 354,223 3,559 33,615 2,438 393,835 103,541 7,384 6,143 117,068 2,849,077 270,833 254,383 8,695 6,586 29,953 17,443 22,900 22,900 stration 332,381 301,312 Expenditures chargeable to other funds Total shop Streets: Personal services Supplies Other services and charges Capital outlays Total streets 191,956 169,738 101,176 55,500 518,370 (141,500) 376,870 303,408 75,662 46,339 358.932 784,341 175,698 155,811 100,471 42,899 474,879 (141,500) 333,379 260,255 56,167 28,043 326.184 670,649 Vatiance- Favorable (Unfavorable) $ 67,761 2,517 1,328 3,226 74,832 74,832 44,984 648 1,530 62 47,224 2,067 319 572 2,958 263,162 16,450 2,109 12,510 31,069 16,258 13,927 705 12,601 43,491 43,491 43,153 19,495 18,296 32,748 113,692 45 Continued Exhibit B-2 (Cont'd) CITY OF KENAI, ALASKA General Fund Statement of Revenues, Expenditures, and Changes in Fund. Balance - Budget and Actual Year Ended June 30, 1996 Building inspection: Personal services Supplies Other services and charges Capital outlays Total building inspection Street lighting - other services and charges Total public works Parks, recreation, and cultural: Library: Personal services Supplies Other services and charges Capital outlays Total library Visitors center: Supplies Other services and charges Total visitors center Recreation: Personal services Supplies Other services and charges Capital outlays Total recreation Parks: Personal services Supplies Other services and charges Capital outlays Total parks Beautification: Personal services Supplies other services and charges Total beautification Total parks, recreation, and cultural Total expenditures Budget $ 109,645 25,427 104,833 6,300 246,205 Actual $ 98,420 22,352 99,112 6,300 226,184 Variance - Favorable (Unfavorable) $ 11,225 3,075 5,721 20,021 92,000 72,962 19,038 1,831,797 1,604,486 227,311 212,352 15,871 152,743 89,350 470,316 1,485 132,955 134,440 264,165 29,570 66,825 11,300 371,860 113,869 24,313 17,423 37,450 193,055 23,122 15,266 31,340 69,728 1,239,399 7,399,443 206,728 13,588 141,178 75,659 437,153 866 133,494 134,360 238,987 20,289 51,484 10,315 321,075 101,340 21,219 10,606 18,629 151,794 25,160 11,150 29,218 65,528 11109,910 6,588,187 5,624 2,283 11,565 13.691 33,163 619 (539) 80 25,178 9,281 15,341 985 50,785 12,529 3,094 6,817 18.821 41,261 (2,038) 4,116 2,122 4,200 129,489 811,256 46 Continued Exhibit B-2 (Cont'd) CITY OF KENAI, ALASKA General Fund Statement of Revenues, Expenditures, and Ck.anges in Fund Balance - Budget ara. Actual Year Ended T-, :e 30, 1996 Other financing uses - Operating transfers to: Enterprise fund Special revenue funds Debt service fund Capital projects funds Total other financing uses Total expenditures and other uses Excess of revenues and other sources over (under) expenditures and other uses Fund balance - June 30 Variance - Favorable Budget Actual (Unfavorable) $ 5,350 $ 5,350 $ - 60,492 52,181 8,311 286,260 286,259 1 58,185 58,185 - 410,287 401,975 8,312 7,809,730 6,990,162 819,568 (1,057,460) (149,210) 908,250 S 10,150,703 S 11.058,953 $ 908.250 47 SPECIAL REVENUE FUNDS A Special Revenue Fund is established to finance particular activities and is created out of receipts of specific taxes or other designated revenues. Such funds are authorized by statutory or charter provisions to pay for certain activities with some form of continuing revenues. 1. WATER AND SEWER FUND This special revenue fund accounts for operations of the water and sewer system and the sewer treatment plant. User charges are designed to recover cost of operation and maintenance of the system, exclusive of depreciation and major capital improvements. 2. AIRPORT LAND SYSTEM FUND This fund accounts for operations of the airport (exclusive of the Airport Terminal), and rental and lease of surrounding airport - owned lands. The intent of the City is to finance operations of this fund from rents and leases of land and airport landing fees. 3. KENAI BOROUGH SENIOR CITIZENS FUND This fund accounts for revenues and expenditures related to the Senior Citizens Program. The primary source of revenue is a grant from the Kenai Peninsula Borough. 4. SENIOR EMPLOYMENT PROGRAM FUND This fund provides on the job work experience for persons 55 years or older and encourages employment in the private sector. The primary revenue source is a State of Alaska grant. 5. COUNCIL ON AGING FUND This fund accounts for the activities of the Senior Citizen Program which is substantially financed by a grant from the State of Alaska (from federally financed sources). Activities include social services and a. nutrition program. CITY OF KENAI, ALASKA Special Revenue Funds Combining Balance Sheet June 30, 1996 ASSETS Equity in central treasury Accounts receivable Less allowance for uncollectibles Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Customer deposits Compensated absences Due to General Fund Sales tax Deferred revenue Total liabilities Fund balances: Reserve for encumbrances Unreserved: Designated for subsequent year's expenditures Undesignated Total fund balances Total liabilities and fund balances Water Airport and Land Sewer System $ 894,347 $ 7,762,052 468,140 21,376 (10,000) - $ 19,765 $ 8,963 37,430 4,200 29,979 5,870 4,129 731 364,595 22,895 455,898 42,659 41,872 14,217 27,461 - 827,256 7,726,552 896,589 7,740,769 S 1,352,487 $ 7,783,428 48 Exhibit C-1 Kenai Borough Senior Council Senior Employment on Citizens Program Aging Total $ 42,507 $ - $ 5 $ 8,698,911 1,400 3,282 5,597 499,795 - _ - (10,000) $ 43,907 S 3,282 $ 5,602 S 9,188,706 $ 979 $ - $ - $ 29,707 3,650 - - 45,280 3,708 - 5,602 45,159 - 3,282 - 3,282 41 - - 4,901 _ - - 387,490 8,378 3,282 5,602 515,819 2,177 - - 58,266 _ _ - 27,461 33,352 - - 8,587,160 35,529 - - 8,672,887 $ 43,907 $ 3,282 $ 5,602 $ 9,188,706 49 CITY OF KENAI, ALASKA Special Revenue Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 1996 Water Airport and Land Sewer System Fund balances - July 1 S 649,298 S 6,553,239 Revenues: Intergovernmental revenues - 33,920 Charges for services 1,183,088 - Special assessments 90,444 - Miscellaneous revenues 23,139 1,770,223 Total revenues 1,296,671 1,804,143 Other financing sources - Operating transfers in - 129,837 Total revenues and other sources 1,296,671 1,933,980 Expenditures: Water and sewer services 1,030,151 - Airport - 858,131 Social welfare services - - Total expenditures 1,030,151 858,131 Other financing uses - operating transfers out 160,229 70,000 Total expenditures and other uses 1,190,380 928,131 - Excess of revenues and other sources over (under) expenditures and other uses 106,291 1,005,849 Residual equity transfers in 141,000 181,681 Fund balances - June 30 S 896,589 S 7,740,769 50 Exhibit C-2 Kenai Borough Senior Council Senior Employment on Citizens Program Aging Total 5 47,666 $ - $ - 5 7,250,203 50,253 18,610 125,664 228,447 1,183,088 90,444 46,895 - 6,000 182,732 147,504 18,610 188,881 3,585,646 - - - 1,030,151 - - - 858,131 153,641 18,610 188,881 361,132 153,641 18,610 188,881 2,249,414 (12,137) - - 1,100,003 - - - 322,681 S 35,529 S - S - S 8,672,887 51 Exhibit C-3 CITY OF KENAI, ALASKA Water and Sewer Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Variance - Favorable Budget Actual (Unfavorable) Fund balance - July 1 S 649,298 S 649,298 S - Revenues: Intergovernmental revenues - Kenai Peninsula Borough grant 6,000 - (6,000) Charges for services: Residential water 206,000 214,670 8,670 Commercial water 100,000 98,248 (1,752) Residential sewer 575,000 593,406 18,406 Commercial sewer 290,000 265,324 (24,676) Hook-up fees 7,000 11,440 4,440 Special assessments - 90,444 90,444 Other 16,000 17,931 1,931 Total charges for services 1,194,000 1,291,463 97,463 Miscellaneous revenues - other 2,000 5,208 3,208 Total revenues 1,202,000 1,296,671 94,671 Expenditures - water and sewer services: Water: Personal services 64,199 62,673 1,526 Supplies 25,402 23,714 1,688 Other services and charges 148,018 117,925 30,093 Capital outlays 19,287 19,070 217 256,906 223,382 33,524 - Expenditures chargeable from other funds 57,667 57,667 - Total water 314,573 281,049 33,524 Sewer: Personal services 89,372 90,246 (874) Supplies 14,060 5,369 8,691 Other services and charges 67,390 29,059 38,331 Capital outlays 15,287 15,279 8 186,109 139,953 46,156 Expenditures chargeable from other funds 49,667 49,667 - Total sewer 235,776 189,620 46,156 Continued 52 Exhibit C-3 (Cont'd) CITY OF KENAI, ALASKA Water and Sewer Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Sewer treatment plant: Personal services Supplies Other services and charges Capital outlays Expenditures chargeable from other funds Total sewer treatment plant Total expenditures Other financing uses - Operating transfers to capital projects fund Total expenditures and other uses Excess of revenues over (under) expenditures and other uses Residual equity transfers from capital projects fund Fund balance - June 30 Variance - Favorable Budcret Actual (Unfavorable) $ 220,184 $ 201,557 $ 18,627 71,345 45,037 26,308 252,050 215,485 36,565 13,450 7,237 6,213 557,029 469,316 87,713 90,166 90,166 - 647,195 559,482 87,713 1,197,544 1,030,151 167,393 160,229 160,229 - 1,357,773 1,190,380 167,393 (155,773) 106,291 262,064 - 141,000 141,000 $ 493,525 $ 896,589 $ 403,064 53 Exhibit C-4 CITY OF KENAI, ALASKA Airport Land System Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Variance - Favorable Budget Actual (Unfavorable) Fund balance - July 1 S 6,553,239 S 6,553,239 $ Revenues: Intergovernmental revenue - State grant Miscellaneous revenues: Rents and leases, including penalty and interest Landing fees Fish hauling rents Interest revenue Other Total miscellaneous revenues Total revenues Other financing sources - Operating transfers from: General Fund Trust fund Total other financing sources Total revenues and other sources Expenditures - airport: Maintenance and operation: Personal services Supplies Other services and charges Capital outlays Expenditures chargeable from other funds Total maintenance and operation 7,000 33,920 26,920 253,000 271,222 18,222 70,000 65,754 (4,246) 10,000 7,800 (2,200) 873,500 924,000 50,500 87,000 501,447 414,447 1,293,500 1,770,223 476,723 1,300,500 1,804,143 503,643 1,600 5,286 3,686 170,000 124,551 (45,449) 171,600 129,837 (41,763) 1,472,100 1,933,980 461,880 101,648 84,308 17,340 25,975 20,587 5,388 484,458 108,232 376,226 34,716 32,716 2,000 646,797 245,843 400,954 413,500 413,500 - 1,060,297 659,343 400,954 54 Continued Exhibit C-4 (Cont'd) CITY OF KENAI, ALASKA Airport Land System Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Land administration: Personal services Supplies Other services and charges Expenditures chargeable from other funds Total land administration Land: Supplies Other services and charges Total land Total expenditures Other financing uses - operating transfers to capital projects funds Total expenditures and other uses Excess of revenues and other sources over (under) expenditures and other uses Residual equity transfers from capital projects funds Fund balance - June 30 Variance - Favorable Budget Actual (Unfavorable) $ 130,550 $ 109,027 $ 21,523 2,080 1,723 357 47,550 38,655 8,895 180,180 149,405 30,775 23,500 23,500 - 203,680 172,905 30,775 4,175 1,017 3,158 143,300 24,866 118,434 147,475 25,883 121,592 1,411,452 858,131 553,321 70,000 70,000 - 1,481,452 928,131 553,321 (9,352) 1,005,849 1,015,201 - 181,681 181,681 S 6,543,887 S 7,740,769 S 1,196,882 55 Exhibit C-5 CITY OF KENAI, ALASKA Kenai Borough Senior Citizens Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Variance - Favorable Budget Actual (Unfavorable) Fund balance - July 1 S 47,666 ,S 47,666 S - Revenues: Intergovernmental revenue - Kenai Peninsula Borough grants 50,253 50,253 - Miscellaneous revenues: United Way grants 19,859 14,352 (5,507) Rents and leases 14,500 18,385 3,885 Donations 12,355 16,570 4,215 Other 2,000 1,049 (951) Total miscellaneous revenues 48,714 50,356 1,642 Total revenues 98,967 100,609 1,642 Other financing sources - Operating transfer from General Fund 58,892 46,895 (11,997) Total revenues and other sources 157,859 147,504 (10,355) Expenditures - social welfare services: Personal services 50,497 47,391 3,106 Supplies 16,379 16,000 379 Other services and charges 106,447 90,250 16,197 Total expenditures 173,323 153,641 19,682 Other financing uses - Operating transfer to special revenue fund - 6,000 (6,000) Total expenditures and other uses 173,323 159,641 13,682 Excess of revenues and other sources over (under) expenditures and other uses (15,464) (12,137) 3,327 Fund balance - June 30 $ 32,202 S 35,529 SS 3.327 i Exhibit C-6 CITY OF KENAI, ALASKA Senior Employment Program Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Variance - Favorable Budget Actual (Unfavorable) Fund balance - July 1 $ - $ - $ - Revenues - Intergovernmental revenue - State grant 19,603 18,610 (993) Expenditures - social welfare services: Personal services 19,203 18,460 743 Other services and charges 400 150 250 Total expenditures 19,603 18,610 993 Excess of revenues over (under) expenditures Fund balance - June 30 57 Exhibit C-7 CITY OF KENAI, ALASKA Council on Aging Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Variance Favorable Budciet Actual (Unfavorable) Fund balance - July 1 $ - $ - $ - Revenues: Intergovernmental revenues: State grants 124,322 117,910 (6,412) Federal grants 15,606 7,754 (7,852) Total intergovernmental revenues 139,928 125,664 (14,264) Miscellaneous revenues: In -kind support 13,814 13,261 (553) Donations 43,784 43,956 172 Total miscellaneous revenues 57,598 57,217 (381) Total revenues 197,526 182,881 (14,645) Other financing sources - operating transfer from special revenue fund - 6,000 6,000 Total revenues and other sources 197,526 188,881 (8,645) Expenditures - social welfare services: Social services: Personal services 35,623 31,989 3,634 Other services and charges 6,907 6,631 276 Total social services 42,530 38,620 3,910 Congregate meals: Personal services 50,997 51,984 (987) Supplies 52,858 50,319 2,539 Other services and charges 6,907 6,630 277 Total congregate meals 110,762 108,933 1,829 Home delivered meals: Personal services 22,027 21,324 703 Supplies 15,764 13,794 1,970 Total home delivered meals 37,791 35,118 2,673 Preventive health - Personal services 2,500 2,400 100 Transportation: Personal services 3,093 2,976 117 Supplies 850 834 16 Total transportation 3,943 3,810 133 Total expenditures 197,526 188,881 8,645 Excess of revenues and other sources over (under) expenditures Fund balance - June 30 58 DEBT SERVICE FUNDS These funds are established to account for the accumulation and disbursement of money needed to comply with the interest and principal redemption requirements for the general obligation bonds issued. The 1967 Water, Sewer, and Streets Debt Service Fund has a fund balance large enough to service all future principal and interest maturities. Debt related to the 1974 Advance Refunding Debt Service Fund has been retired. The 1984/1986/1993 Special Assessment Debt Service Fund is intended to be financed by special assessments. Exhibit D-1 CITY OF KENAI, ALASKA Debt Service Funds Combining Balance Sheet June 30, 1996 1967 1974 1984/1986/1993 Water, Sewer Advance Special and Streets Refunding Assessment Total ASSETS Equity in central treasury $ 189,861 $ - $ - $ 189,861 Special assessments receivable: Delinquent principal - 56,170 423,846 480,016 Deferred principal - - 1,423,252 1,423,252 Delinquent installment interest receivable - 26,438 1,427,572 1,454,010 Penalty and interest receivable - 70,082 498,959 569,041 Total assets S 189,861 $ 152,690 $ 3,773,629 S 4,116,180 LIABILITIES AND FUND BALANCES Liabilities: Due to General Fund $ Deferred special assessment revenue _ Total liabilities _ Fund balances: - $ 11,167 $ 249,689 $ 260,856 152,690 3,773,629 3,926,319 163,857 4,023,318 4,187,175 Reserve for debt service 189,861 - - 189,861 Unreserved - undesignated (deficits) - (11,167) (249,689) (260,856) Total fund balances (deficits) 189,861 (11,167) (249,689) (70,995) Total liabilities and fund balances S 189,861 S 152,690 $ 3,773,629 S 4,116,180 59 Exhibit D-2 CITY OF KENAI, ALASKA Debt Service Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 1996 1967 1974 1984/1986/1993 Water, Sewer Advance Special and Streets Refunding Assessment Total Fund balances (deficits) - July 1 $ 281,476 $ (11,167) S (283,025) S (12,716) Revenues - miscellaneous - - 33,336 33,336 Other financing sources - operating transfers in Total revenues and other sources Expenditures - debt service Excess of revenues and other sources over (under) expenditures Fund balances (deficits) - June 30 286,259 - - 319,595 91,615 - 286,259 286,259 377,874 -- -- - - SS 1�89,861_ $ (�7) S(249,689) S(70,995) 60 Exhibit D-3 CITY OF KENAI, ALASKA 1967 Water, Sewer, and Streets Debt Service Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Variance - Favorable Budget Actual (Unfavorable) Fund balance - July 1 S 281,476 S 281,476 $ - Expenditures - debt service: Redemption of serial bonds 80,000 80,000 - Interest on bonds 10,865 10,865 - Fiscal agent fees 785 750 35 Total expenditures 91,650 91,615 35 Fund balance - June 30 SS 18� $ 18�61 $ 35 61 CITY OF KENAI, ALASKA 1984/1986/1993 Special Assessment Debt Service Fund Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Year Ended June 30, 1996 Fund balance (deficit) - July 1 Revenues - Miscellaneous: Special assessments Penalty and interest Total revenues Other financing sources - Operating transfer from General Fund Total revenues and other sources Expenditures - debt service: Redemption of serial bonds Interest on bonds Fiscal agent fees Total expenditures Excess of revenues and other sources over (under) expenditures Fund balance (deficit) - June 30 Exhibit D-4 Variance - Favorable Budget Actual (Unfavorable) S (283,025) S (283,025) $ - - 25,346 25,346 - 7,990 7,990 - 33,336 33,336 286,260 286,259 (1) 286,260 319,595 33,335 199,000 199,000 - 87,260 87,259 1 286,260 286,259 1 - 33,336 33,336 S (283,025) $ (249,689) S 33,336 i CAPITAL PROJECTS FUNDS Capital Projects Funds are established to account for the resources expended to acquire assets of a relatively permanent nature. These funds evolved from the need for special accounting for bond proceeds, grants and contributions for the acquisition of capital assets. Capital Projects Funds provide a formal mechanism which enables administrators to ensure that revenues dedicated to a certain purpose are used only for that purpose and further enables them to report to creditors, and other grantors of capital projects fund revenue, that their requirements regarding the use of the revenue were fully satisfied. CITY OF KENAI, ALASKA Capital Projects Funds Combining Balance Sheet June 30, 1996 Parks and Recreation Streets ASSETS Equity in central treasury $ 32,258 $ 177,742 Accounts receivable: Due from federal government - - Due from state government - - Total assets $ 32,258 S 177,742 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - Contracts payable - - Retainage payable - - Deferred revenue - - Due to General Fund - - Total liabilities - - Unreserved - undesignated fund balances 32,258 177,742 Total liabilities and fund balances S 32,258 S 177,742 63 Exhibit E-1 Water Airport and Improvements Sewer Miscellaneous Total $ - $ 320,851 $ - $ 530,851 186,067 - - 186,067 1,824 66,181 5,153 73,158 S 187,891 S 387,032 S 5,153 $ 790,076 $ - $ 1,075 $ - $ 1,075 - 113,528 - 113,528 101,317 - 5,153 106,470 101,317 114,603 5,153 221,073 S 187,891 S 387,032 $ 5,153 $ 790,076 64 CITY OF KENAI, ALASKA Capital Projects Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 1996 Authorizations: Grants: Federal State Contributions from other funds: General Fund Special revenue funds Total authorizations Prior years' activity: Projects in progress: Revenues: Federal grants State and local grants City and other sources Total revenues Expenditures Fund balances - June 30, 1995 Parks and Recreation S - 130,000 $ 130.000 100,000 100,000 40,379 $ 59,621 Streets 200,000 S 200,000 200,000 200,000 14,909 $ 185,091 65 Airport Improvements $ 1,979,870 66,161 254,128 $ 2,300,159 $ 1,487,704 49,770 184,127 1,721,601 1,664,212 $ 57,389 Water and Sewer 5,087,322 1,411,943 S 6,499,265 2,578,249 1,251,714 3,829,963 3,304,645 S 525,318 Miscellaneous 4,946,940 46,266 518,080 Exhibit E-2 Total $ 1,979,870 10,100,423 376,266 2,184,151 $ 5,511,286 S 14,640,710 $ - $ 1,487,704 4,791,279 7,419,298 536,162 2,272,003 5,327,441 11,179,005 5,108,741 10,132,886 S 218,700 �S 1,046.119 Continued 66 CITY OF KENAI, ALASKA Capital Projects Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Year Ended June 30, 1996 Parks and Recreation Streets Current year's activity: Fund balances - July 1 $ 59,621 S 185,091 Revenues - Intergovernmental revenues: Federal grants - - State grants - - Total revenues - - Other financing sources - Operating transfers from: General Fund 30,000 - Special revenue funds - Total other financing sources 30,000 - Total revenues and other sources 30,000 - Expenditures 57,363 7,349 Excess of revenues and other sources over (under) expenditures and other uses (27,363) (7,349) Residual equity transfers to - Special revenue funds - - Fund balances - June 30 S 32,258 $ 177,742 67 Exhibit E-2 (Cont'd) Water Airport and Improvements Sewer Miscellaneous Total S 57,389 S 525,318 S 218,700 S 1,046,119 328,800 - - 328,800 11,281 I 105,733 155,661 272,675 340,081 105,733 155,661 601,475 - - 28,185 58,185 70,000 160,229 - 230,229 70,000 160,229 28,185 288,414 410,081 265,962 183,846 889,889 380,203 377,851 221,558 1,044,324 29,878 (111,889) (37,712) (154,435) 693 141,000 180,988 322,681 $ 86,574 S 272,429 S - $ 569,003 68 ENTERPRISE FUNDS Enterprise funds are established to account for the financing of self-supporting activities of governmental units which render services to the general public on a user charge basis. Enterprise funds are maintained on the accrual basis of accounting. Expenditures are controlled through budgetary accounting procedures similar to the governmental fund types. 1. 2. AIRPORT TERMINAL FUND This fund provides lease space for airport businesses that provide services to the traveling public. Significant revenue sources include rents, car rental commissions, and vehicle parking fees. BOATING FACILITY FUND This fund consists of a dock, parking area, and other facilities on the Kenai River primarily of service to the commercial fishing industry. Significant revenue sources include rents, fuel sales, and wharfage fees. 3. CONGREGATE HOUSING FUND This fund consists of a 40-unit senior citizen housing complex located on a bluff overlooking the Kenai River. The significant revenue source is rents. CITY OF KENAI, ALASKA Enterprise Funds Combining Balance Sheet June 30, 1996 ASSETS Current assets: Equity in central treasury (cash and cash equivalents) Accounts receivable Inventories Total current assets Property and equipment in service, at cost: Land Buildings Equipment Improvements other than buildings Total property and equipment in service Less accumulated depreciation. Net property and equipment in service Total assets LIABILITIES, CONTRIBUTIONS AND RETAINED EARNINGS Current liabilities: Accounts payable Other liabilities Deferred revenues Total current liabilities Contributions: From the City of Kenai From federal and state governments From others Total contributions Less accumulated amortization Net contributions Exhibit F-1 Airport Boating Congregate Terminal Facility Housing Total $ 1,417,213 $ 70,524 $ 278,106 $ 1,765,843 24,862 - - 24,862 - 13,600 - 13,600 1,442,075 84,124 278,106 1,804,305 6,043 - 274,500 280,543 3,394,157 - 4,909,341 8,303,498 144,143 158,279 - 302,422 677,375 2,116,814 - 2,794,189 4,221,718 2,275,093 5,183,841 11,680,652 (1,797,395) (521,556) (474,513) (2,793,464) S 3,866,398 $ 1,837,661 S 4,9�434 510,691,493 $ 7,777 $ 1,150 $ 4,166 $ 13,093 452 6,916 20,545 27,913 4,571 - - 4,571 12,800 8,066 24,711 45,577 1,369,494 485,760 274,500 2,129,754 2,079,875 1,531,828 4,890,661 8,502,364 12,000 85,000 - 97,000 3,461,369 2,102,588 5,165,161 10,729,118 (698,906) (344,661) (474,513) (1,518,080) 2,762,463 1,757,927 4,690,648 9,211,038 Retained earnings: Reserve for repair and replacement - Unreserved - undesignated 1,091,135 Total retained earnings 1,091,135 Total liabilities, contributions, and retained earnings S 3,866,398 - 272,075 272,075 71,668 - 1,162,803 71,668 272,075 1,434,878 S 1,837,661 $ 4,987,434 510,691,493 Exhibit F-2 CITY OF KENAI, ALASKA Enterprise Funds Combining Statement of Revenues, Expenses, and Changes in Retained Earnings Year Ended June 30, 1996 Airport Boating Congregate Terminal Facility Housing Total Retained earnings - July 1 Operating revenues: Rents and leases Commissions Vehicle parking fees Petroleum sales Wharfage Other revenue Total operating revenues operating expenses: Personal services Supplies Utilities Repair and maintenance Insurance Depreciation Manager's fee Miscellaneous Expenses chargeable from other funds Total operating expenses Operating income (loss) Nonoperating revenue - Interest revenue Net income (loss) before operating transfer Operating transfer to General Fund Net income (loss) Other change in retained earnings - Credit arising from transfer of depreciation to contributions accounts Retained earnings - June 30 S 1,000,848 S 146,347 S 205,937 S 1,353,132 74,814 21,550 228,389 324,753 160,009 - - 160,009 72,062 - - 72,062 - 37,943 - 37,943 - 9,736 - 9,736 2,100 17,634 409 20,143 308,985 86,863 228,798 624,646 - 51,989 15,099 67,088 27,552 34,718 6,017 68,287 61,808 5,844 41,945 109,597 63,230 10,261 39,236 112,727 2,982 3,624 3,022 9,628 131,193 64,226 125,138 320,557 - - 14,775 14,775 22,877 3,176 1,832 27,885 309,642 173,838 247,064 730,544 36,000 26,000 12,500 74,500 345,642 199,838 259,564 805,044 (36,657) (112,975) (30,766) (180,398) 76,954 16,138 (112,975) (14,628) - (44,372) 93,092 (44,372) 49,990 38,296 125,138 213,424 S 1,091,135 S 71,668 $ 272,075 S 1,434,878 70 Exhibit F-3 CITY OF KENAI, ALASKA Airport Terminal Enterprise Fund Statement of Revenues, Expenses, and Changes in Retained Earnings - Budget and Actual Year Ended June 30, 1996 Variance - Favorable Budget Actual (Unfavorable) Retained earnings - July 1 $1,000,848 51,000,848 - Operating revenues: Rents and leases 100,000 74,814 (25,186) Commissions 140,000 160,009 20,009 Vehicle parking fees 70,000 72,062 2,062 Other revenue 2,000 2,100 100 Total operating revenues 312,000 308,985 (3,015) operating expenses: Supplies 30,569 27,552 3,017 Utilities 66,500 61,808 4,692 Repair and maintenance 89,934 63,230 26,704 Insurance 7,000 2,982 4,018 Depreciation 81,203 131,193 (49,990) Miscellaneous 88,432 22,877 65,555 363,638 309,642 53,996 Expenses chargeable from other funds 36,000 36,000 - Total operating expenses 399,638 345,642 53,996 Operating loss (87,638) (36,657) 50,981 Nonoperating revenue - Interest revenue 73,000 76,954 3,954 Net income (loss) _ Other change in retained earnings - Credit arising from transfer of depreciation to contributions account Retained earnings - June 30 $ 986,210 49,990 49,990 $1,091,135 $ 104,925 71 Exhibit F-4 CITY OF KENAI, ALASKA Boating Facility Enterprise Fund Statement of Revenues, Expenses, and Changes in Retained Earnings - Budget and Actual Year Ended June 30, 1996 Variance - Favorable Budget Actual (Unfavorable) Retained earnings - July 1 S 146,347 S 146,347 $ - Operating revenues: Rents and leases 25,000 21,550 (3,450) Petroleum sales 70,000 37,943 (32,057) Wharfage 15,000 9,736 (5,264) Other revenue 23,350 17,634 (5,716) Total operating revenues 133,350 86,863 (46,487) Operating expenses: Personal services 60,220 51,989 8,231 Supplies 80,946 34,718 46,228 Utilities 6,115 5,844 271 Repair and maintenance 12,780 10,261 2,519 Insurance 5,000 3,624 1,376 Depreciation 25,000 64,226 (39,226) Miscellaneous 15,503 3,176 12,327 205,564 173,838 31,726 Expenses chargeable from other funds 26,000 26,000 - Total operating expenses 231,564 199,838 31,726 Net income (loss) (98,214) (112,975) (14,761) Other change in retained earnings - Credit arising from transfer of depreciation to contributions - 38,296 38,296 account Retained earnings - June 30 S 48,133 S 71,668 $ 23,535 72 Exhibit F-5 CITY OF KENAI, ALASKA Congregate Housing Enterprise Fund Statement of Revenues, Expenses, and Changes in Retained Earnings - Budget and Actual Year Ended June 30, 1996 Variance - Favorable Budget Actual (Unfavorable) Retained earnings - July 1 $ 205,937 S 205,937 $ - Operating revenues: Rents 223,852 228,389 4,537 Other revenue - 409 409 Total operating revenues 223,852 228,798 4,946 operating expenses: Personal services 17,882 15,099 2,783 Supplies 8,576 6,017 2,559 Utilities 42,598 41,945 653 Repair and maintenance 44,114 39,236 4,878 Insurance 3,500 3,022 478 Depreciation - 125,138 (125,138) Manager's fee 14,700 14,775 (75) Miscellaneous 16,237 1,832 14,405 147,607 247,064 (99,457) Expenses chargeable from other funds 12,500 12,500 - Total operating expenses 160,107 259,564 (99,457) Operating income (loss) 63,745 (30,766) (94,511) Nonoperating revenue - Interest revenue 13,000 16,138 3,138 Net income (loss) before operating transfer 76,745 (14,628) (91,373) Operating transfer to General Fund (23,470) (44,372) (20,902) Net income (loss) 53,275 (59,000) 1112,275) Other change in retained earnings - Credit arising from transfer of depreciation to contributions account - 125,138 125,138 Retained earnings - June 30 $ 259,212 $ 272,075 $ 73 CITY OF KENAI, ALASKA Enterprise Funds Combining Statement of Cash Flows Year Ended June 30, 1996 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Cash received from customers Cash payments to suppliers for goods and services Cash payments to employees for services Net cash provided by operating activities Cash flows from noncapital financing activities - Operating transfer to General Fund Cash flows from capital and related financing activities: Acquisition and construction of capital assets Capital contributed by federal and state governments Net cash used for capital and related financing activities Cash flows from investing activities - Interest on investments Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Airport Boating Congregate Terminal Facility Housing Exhibit F-6 Total $ 296,975 $ 86,863 $ 228,798 $ 612,636 (227,354) (94,153) (116,045) (437,552) - (51,989) (15,098) (67,087) 69,621 (59,279) 97,655 107,997 (44,372) (44,372) (82,227) (174,341) (256,568) 155,661 155,661 76,954 - 16,138 93,092 146,575 (141,506) 50,741 55,810 1,270,638 212,030 227,365 1,710,033 S 1,417,213 S 70,524 S 278,106 S 1,765,843 Continued 74 CITY OF KENAI, ALASKA Enterprise Funds Combining Statement of Cash Flows Year Ended June 30, 1996 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Changes in assets and liabilities: Decrease in accounts receivable Decrease in provision for uncollectible accounts Increase (decrease) in accounts payable Increase (decrease) in other liabilities and deferred revenues Net cash provided by operating Antivities S Exhibit F-6 (Cont'd) Airport Boating Congregate Terminal Facility Housing Total (36,657) $ (112,975) $ (30,766) $ (180,398) 131,193 64,226 125,138 320,557 (12,011) - - (12,011) (1,369) (4,418) 4,166 (1,621) (11,535) (6,112) (883) (18,530) 75 FIDUCIARY FUNDS NONEXPENDABLE TRUST FUNDS General Government Land Sales - to account for the proceeds of general government land sales, including principal and interest on long-term notes. By City Charter, the principal cannot be spent. Interest revenue is transferred to the General Fund. Airport Land Sales - to account for the proceeds of airport land sales, including principal and interest on long-term notes. By ordinance, the principal cannot be spent. Interest revenue is transferred to the Airport Land System Special Revenue Fund. DEFERRED COMPENSATION AGENCY FUND This fund accounts for a portion of employees' salaries which they have elected to defer under Section 457 of the Internal Revenue Code. The City retains title to such monies until they are paid or made available to the employee by its agents. Exhibit G-1 CITY OF KENAI, ALASKA Trust and Agency Funds Combining Balance Sheet June 30, 1996 Nonexpendable Agency Trust Funds Fund General Government Airport Deferred Land Sales Land Sales Compensation Total ASSETS Equity in central treasury (cash and cash equivalents) $ 1,391,911 $ 9,281,293 $ - $10,673,204 Property and rights held under deferred compensation plans - - 2,699,917 2,699,917 Receivables: Interest 8,741 3,202 - 11,943 Notes 447,808 803,051 - 1,250,859 Total assets S 1,848,460 $10,087,546 $ 2,699,917 $14,635,923 LIABILITY AND FUND BALANCES Liability - obligations to employees under deferred compensation plans $ - $ - $ 2,699,917 $ 2,699,917 Fund balances reserved for investments 1,848,460 10,087,546 - 11,936,006 Total liability and fund balances $ 1,848,460 $10,087,546 $ 2,699,917 $14,635,923 76 Exhibit G-2 CITY OF KENAI, ALASKA Nonexpendable Trust Funds Combining Statement of Revenues, Expenses, and Changes in Fund Balance Year Ended June 30, 1996 General Government Airport Land Sales Land Sales Total Fund balances - July 1 S 1,860,720 $10,081,794 $11,942,514 Operating revenues: Interest revenue Land sales Total operating revenues Operating transfers out: General Fund Airport Land System Special Revenue Fund Total operating transfers out Net income (loss) Fund balances - June 30 57,068 93,553 150,621 - 36,750 36,750 57,068 130,303 187,371 69,328 69,328 - 124,551 124,551 69,328 124,551 193,879 (12,260) 5,752 (6,508) $ 1,848,460 $10,087,546 $11,936,006 77 CITY OF KENAI, ALASKA Nonexpendable Trust Funds Combining Statement of Cash Flows Year Ended June 30, 1996 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash flows from operating activities: Collection of principal from real estate sales Collection of interest on real estate notes Net cash provided by operating activities Cash flows from noncapital financing activities - operating transfers to other funds Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES _Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Decrease (increase) in interest receivable Decrease in notes receivable Net cash provided by operating activities General Government Land Sales $ 194,517 69,328 (69,328) 194,517 1,197,395 Airport Land Sales $ 285,947 124,551 410,498 (124,551) 285,947 8,995,346 Exhibit G-3 Total $ 480,464 193,879 674,343 (193,879) 480,464 10,192,741 $ 57,069 $ 130,303 $ 187,372 12,259 30,998 43,257 194,517 249,197 443,714 78 Exhibit G-4 CITY OF KENAI, ALASKA Deferred Compensation Agency Fund Statement of Changes in Assets and Liabilities Year Ended June 30, 1996 Balance Balance July 1, 1995 Additions Deductions June 30, 1996 ASSET Property and rights held under deferred compensation plans S 2,251,820 S 626.372 1 178,275 S 2,699,917 LIABILITY Obligations to employees under deferred compensation plans S 2.251.820 $ 626,372 $ 178,275 $ 2,699,917 79 GENERAL FIXED ASSETS GROUP OF ACCOUNTS The General Fixed Assets Group of Accounts is established for controlling the City's sizeable investment in fixed assets which are tangible assets of significant value having a life which extends beyond a year. No depreciation is provided on such assets. This control also allows establishing custodial responsibility for the assets. The investments in fixed assets of the Enterprise Funds are accounted for in those proprietary funds. CITY OF KENAI, ALASKA Statement of General Fixed Assets June 30, 1996 and 1995 General fixed assets: Land Buildings Land improvements Machinery and equipment Vehicles Water and sewer system Construction in progress Total general fixed assets Investment in general fixed assets: Various sources General obligation bonds Federal and state grants City and miscellaneous Total investment in general fixed assets 1996 $ 6,013,598 17,780,705 42,325,951 6,518,303 1,117,975 19,410,830 516,945 S 93,684,307 $ 5,600,448 8,208,556 64,464,221 15,411,082 S 93,684,307 Exhibit H-1 1995 $ 6,013,598 17,729,037 42,242,587 5,680,872 999,980 17,599,913 1,904,248 S 92,170.235 $ 5,642,448 8,208,556 64,147,776 14,171,455 S 92,170,235 Exhibit H-2 CITY OF KENAI, ALASKA Statement of Changes in General Fixed Assets by Functions and Activities Year Ended June 30, 1996 General Fixed Assets July 1, 1995 Additions General Fixed Assets Deductions June 30, 1996 City clerk $ 9,333 $ 3,347 $ - $ 12,680 Legislative - 3,346 - 3,346 City manager 440 - - 440 Legal 5,553 - - 5,553 Finance 24,859 2,741 - 27,600 Non -departmental 12,637,253 15,060 - 12,652,313 Planning & zoning - 2,908 - 2,908 Police 390,805 30,785 - 421,590 Communications 28,082 2,438 - 30,520 Fire 1,486,002 147,627 - 1,633,629 Public safety 2,312,109 - - 2,312,109 Public works 63,358 22,900 - 86,258 Streets and maintenance 28,411,126 343,041 - 28,754,167 Municipal shop and central equipment pool 169,033 41,958 42,550 168,441 Animal control 90,155 - - 90,155 Library 1,638,709 75,658 - 1,714,367 Council on aging 1,487,082 52,529 8,243 1,531,368 Harbor 354,861 - - 354,861 Municipal parks and recreation 4,266,730 51,440 - 4,318,170 Water and sewer 18,405,630 1,851,926 14,591 20,242,965 Airport 18,484,867 319,055 - 18,803,922 Construction in progress 1,904,248 707,458 2,094,761 516,945 Totals $ 92,170,235 S 3,674,217 $ 2,160,145 S 93,684,307 81 GENERAL LONG-TERM DEBT GROUP OF ACCOUNTS This group of accounts records the unmatured principal of long-term general obligation indebtedness of the City that is not recorded in the Enterprise Funds. Exhibit I-1 CITY OF KENAI, ALASKA Statement of General- Long -Term Debt June 30, 1996 Amount Available and Resources to be Provided in Future Years for the Payment of General Long -Term Debt Amount available in debt service fund - 1967 Water, Sewer and Streets $ 165,000 Resources to be provided in future years: 1984/1986/1993 Special Assessment 1,547,000 Other 1,400,000 Total resources to be provided in future years 2,947,000 Total amount available and resources to be provided in future years $ 3,112,000 General Long -Term Debt Payable Serial bonds payable: 1967 Water, Sewer and Streets $ 165,000 1986 Refunding Special Assessment debt with government commitment 177,000 1993 Refunding Special Assessment debt with government commitment 1,370,000 Total serial bonds payable 1,712,000 Other long-term liability - Loss contingency for contaminated soils remediation Total general long-term debt payable 1,400,000 $ 3,112,000 82 STATISTICAL TABLES Statistical tables give report users a better historical perspective and assist in assessing current financial status and trends. Statistical data is included for ten fiscal years. TABLE I CITY OF KENAI, ALASKA General Government Expenditures by Function Last Ten Fiscal Years Fiscal Year Parks Ended General Public Public and June 30 Government Safety Works Recreation 1987 $ 1,188,455 $ 2,136,631 $ 6,852,031 $ 596,208 1988 1,252,644 2,180,362 2,775,429 727,915 1989 1,477,543 2,313,043 3,241,579 667,008 1990 1,345,166 2,205,512 2,621,344 672,305 1991 1,797,669 2,444,417 3,654,440 865,092 1992 2,100,750 2,629,781 9,664,173 808,607 1993 1,106,895 2,654,667 8,147,751 872,659 1994 1,502,860 3,167,186 5,932,804 904,261 1995 1,159,659 3,047,719 3,881,608 1,008,351 1996 1,024,714 2,849,077 1,611,835 1,167,273 Fiscal Year Ended June 30 Taxes TABLE II CITY OF KENAI, ALASKA General Revenues by Source Last Ten Fiscal Years Licenses and Permits Fines and Forfeits 1987 $ 2,916,698 $ 35,618 $ 28,184 1988 3,025,762 16,364 35,899 1989 3,064,276 15,309 32,824 1990 3,189,278 16,521 40,758 1991 3,481,585 20,395 34,179 1992 3,579,162 35,455 31,005 1993 3,960,771.3 40,084 29,900 1994 4,693,712 49,337 39,884 1995 4,541,988 45,054 36,058 1996 4,625,398 57,638 42,895 Note: General Expenditures and General Revenues are comprised of revenues, expenditures/expenses from all City funds. 83 Debt Airport Other Service Total $ 1,855,774 $ 339,643 $ 844,455 $ 13,813,197 1,660,543 1,140,122 1,301,383 11,038,398 1,944,308 768,199 1,082,506 11,494,186 2,350,694 495,445 799,823 10,490,289 1,108,245 374,555 767,888 11,012,306 1,468,965 314,769 733,871 17,720,916 1,989,303 488,569 585,913 15,845,757 1,982,255 525,163 626,942 14,641,471 1,263,930 913,684 384,802 11,659,753 1,308,334 2,558,896 377,874 10,898,003 Inter- Charges Miscellaneous governmental for (including Revenues Services Interest) Total $ 6,069,372 $ 789,286 $ 3,460,006 $ 13,299,164 3,532,353 768,835 3,487,896 10,867,109 3,758,465 757,497 4,244,375 11,872,746 3,652,315 768,412 4,043,909 11,711,193 2,708,285 1,000,114 4,484,885 11,729,443 8,144,069 987,722 5,066,046 17,843,459 8,701,242 990,379 3,041,238 16,763,622 5,215,351 1,278,467 2,901,775 14,178,526 2,671,005 1,274,734 3,027,486 11,596,325 1,797,567 1,378,048 3,848,064 11,749,610 84 TABLE III CITY OF KENAI, ALASKA Tax Revenues by Source Last Ten Fiscal Years Fiscal Year Ended Total Property June 30 Taxes Taxes 1987 $ 2,916,698 $ 911,534 1988 3,025,762 867,629 1989 3,064,276 748,874 1990 3,189,278 718,039 1991 3,481,585 731,457 1992 3,579,162 723,126 1993 3,960,779 1,006,553 1994 4,693,712 1,045,782 1995 4,541,988 1,119,539 1996 4,625,398 1,141,101 Penalty Sales Franchise and Interest Tax* Taxes on Taxes $ 1,978,328 $ 26,836 $ - 2,065,680 30,795 61,658 2,213,641 38,518 63,243 2,396,537 44,187 30,515 2,688,287 46,620 15,221 2,798,475 51,298 6,263 2,888,688 52,356 13,182 3,589,225 48,163 10,542 3,389,101 - 33,348 3,458,247 - 26,050 Note: Prior to 1988, penalty and interest are included in property taxes. * Beginning with 1993, sales tax includes a 5% hotel/motel room tax. The hotel/motel room tax was suspended June 15, 1996. 85 TABLE IV CITY OF KENAI, ALASKA Property Tax Levies and Collections Last Ten Fiscal Years Percent Fiscal Year Total Current Percent of Total of Total Ended Tax Tax Levy Tax Tax Collections June 30 (Levy) Collections Collected Collections to Tax Levy 1987 $ 887,775 $ 835,907 94.2% $ 860,069 96.9% 1988 876,861 830,418 94.7% 860,273 98.1% 1989 716,962 700,578 97.7% 743,262 103.7% 1990 686,045 630,514 91.9% 648,100 94.5% 1991 682,929 629,458 92.2% 659,713 96.6% 1992 689,418 640,056 92.8% 663,200 96.2% 1993 964,152 931,758 96.6% 952,432 98.8% 1994 1,021,551 964,661 94.4% 981,184 96.0% 1995 1,082,292 1,039,973 96.1% 1,072,485 99.1% 1996 1,087,466 1,055,294 97.1% 1,078,706 99.2% TABLE V CITY OF KENAI, ALASKA Property Tax Rates and Tax Levies -All Overlapping Governments Last Ten Fiscal Years Central Fiscal Year City Kenai Hospital Ended of Peninsula Service June 30 Kenai Borough Area TAX RATES (MILLS) 1987 2.70 4.00 .92 1988 2.,70 5.75 .70 1989 2.70 5.75 .70 1990 2.70 5.75 .80 1991 2.70 5.75 .70 1992 2.,70 7.55 .80 1993 3..50 8.55 .56 1994 3.50 8.55 .56 1995 3..50 8.59 .70 1996 3.50 8.59 .50 TAX LEVIES 1987 $ 887,775 $14,050,620 $ 2,467,130 1988 876,861 20,410,674 1,880,136 1989 716,962 17,728,817 1,606,370 1990 686,045 16,924,289 1,749,060 1991 682,929 17,437,984 1,602,230 1992 689,418 231,976,294 1,857,746 1993 964,152 26,551,485 1,279,592 1994 1,021,551 25,862,268 1,231,910 1995 1,082,292 26,843,835 1,583,190 1996 1,087,466 27,288,423 1,154,012 The municipal tax rate is limited by statute to three percent of the assessed _ value of property assessed excepting that the municipalities may without limitation as to the rate or amount, levy taxes annually in an amount sufficient to pay the principal and interest on bonds as they shall become due. Taxes become due in two installments (August 15th and November 15th). The entire tax becomes delinquent if the first installment is not paid by August 15th. A penalty of eight percent is applied to all delinquent accounts after the first installment is due. After the second installment due date, all delinquent accounts incur a penalty of ten percent. Real property tax lien foreclosure is initiated in January of the year following the calendar year in which the tax is levied. Tax levies of the City of Kenai are collected by the Kenai Peninsula Borough. Current collections are distributed to the City of Kenai based upon the proportion of its levy to total City and Borough levies, adjusted by Borough and City exemptions. 87 TABLE VI CITY OF KENAI, ALASRA Ratio of Net General Bonded Debt To Assessed Value and Net Bonded Debt Per Capita Last Ten Fiscal Years Gross Fiscal Year Assessed Bonded Ended June 30 Population* Value Debt 1987 6546 $ 328,805,556 $ 5,404,000 1988 6546 324,763,333 4,949,000 1989 6546 265,541,481 4,473,000 1990 6543 254,090,741 3,985,000 1991 6543 252,936,667 3,491,000 1992 6535 255,340,000 2,995,000 1993 6613 275,472,000 2,612,000 1994 6813 292,927,000 2,258,000 1995 6813 308,891,000 1,991,000 1996 7006 310,704,620 1,712,000 * Note: From State of Alaska, Department of Community and Regional Affairs. (State Revenue Sharing). Actual values of taxable property are an approximation of Assessed Value, as shown above. F.P. Less Debt Net Ratio of Net Net Bonded Service Bonded Bonded Debt to Debt per Funds Debt Assessed Value Capita $ 2,275,885 $ 3,128,115 0.95% $ 478 1,455,021 3,493,979 1.08% 534 1,096,152 3,376,848 1.27% 516 683,357 3,301,643 1.30% 505 373,526 3,117,474 1.23% 476 571,729 2,423,271 0.95% 371 390,000 2,222,000 0.81% 336 320,000 1,938,000 0.66% 284 245,000 1,746,000 0.57% 256 165,000 1,547,000 0.50% 221 TABLE VII CITY OF KENAI, ALASKA Computation of Direct and Overlapping General Obligation Debt June 30, 1996 Name of Governmental Unit City of Kenai, Alaska Kenai Peninsula Borough Central Hospital Service Area Total Direct and Overlapping Net Debt Outstanding $ 1,547,000 57,650,000 108,629 Percentage Applicable to this Governmental Unit 100.00% 9.78% 13.46% City of Kenai's Share of Debt $ 1,547,000 5,638,170 14,621 S 7,199,791 Le TABLE VIII CITY OF KENAI, ALASKA Computation of Legal Debt Margin June 30, 1996 Assessed value S 310,704,620 Debt limit, 20% of assessed value 62,140,924 Amount of debt applicable to debt limit: Total bonded debt (principal only) $ 1,712,000 Less fund balances in Debt Service Funds (165,000) Total amount of debt applicable to debt limit 1,547,000 Legal debt margin S 60.593,924 Note: The Charter of the City of Kenai, Alaska states, in part: "Such outstanding general -obligation indebtedness of the city incurred for all purposes shall not at any time exceed twenty percent of the assessed value of all real and personal property in the city. In determining such debt limit of the city, any amounts on hand or on deposit for debt retirement, and any general -obligation indebtedness assumed by the State of Alaska, Kenai Peninsula Borough, or other municipality and any portion of reserve funds or accounts pledged to the payment of the principal amount of any outstanding general -obligation indebtedness shall be deducted from the amount of the outstanding indebtedness." 91 TABLE IX CITY OF KENAI, ALASKA Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures Last Ten Fiscal Years Fiscal Year Ended June 30 Principal 1987 $ 478,206 1988 455,000 1989 476,000 1990 488,000 1991 494,000 1992 496,000 1993 383,000 1994 499,000 1995 267,000 1996 279,000 Interest and Agent Fees $ 366,249 384,666 348,871 31.1, 823 27.3, 888 23.7, 871 20:2 , 913 12.7,942 11.7, 802 98,874 Total Debt Service $ 844,455 839,666 824,871 799,823 767,888 733,871 585,913 626,942 384,802 377,874 Total Expenditures - Governmental Fund Tvpes $ 13,555,461 9,918,592 10,698,812 9,980,416 10,408,126 17,256,181 15,126,154 13,922,414 10,929,860 10,259,799 Ratio of Debt Service to General Expenditures 6.23% 8.47% 7.71% 8.01% 7.38% 4.25% 3.87% 4.50% 3.52% 3.68% 92 Due FYE June 30 1997 1998 1999 2000 2001 2002 2003 2004 2005 Total TABLE X CITY OF KENAI, ALASKA Debt Service Requirements to Maturity General Obligation Bonds June 30, 1996 1967 Issue Principal Interest Sept. 1 Sept. 1 March 1 $ 80,000 $ 6,625 85,000 2,252 SS 1� Si 1986 Refunding Principal Interest Oct. 1 Oct. 1 Apr. 1 $ 177,000 $ 6,549 S 177,000 S 6,549 93 1993 Refunding Principal Interest Oct. 1 Oct. 1 Apr. 1 Total $ 20,000 $ 66,868 $ 357,042 195,000 62,157 344,409 185,000 53,659 238,659 175,000 45,294 220,294 170,000 36,887 206,887 165,000 28,389 193,389 160,000 20,020 180,020 150,000 11,963 161,963 150,000 4,012 154,012 S 1,370,000 $ 329,249 S 2.056,675 94 TABLE XI CITY OF KENAI, ALASKA Schedule of Ten Largest Taxpayers June 30, 1996 Taxpayer Kmart Kenai Plaza/ Allan Norville T.U. of the Northland Louis Schilling/Uptown Motel Backdoor Lounge/ Wash N Dry Columbia Wards/Wards Cove Packing Marathon Oil Company Salamatof Seafoods, Inc. Carr Gottstein, Inc. Cherrier & Cherrier/Bay Arms Apt./Inlet Dock & Storage Donald & Kimiko Aase/Mr. 5% Inc./Kenai Kings Inn Type of Business Retail Shopping Retail Shopping Communications Motel Fish Cannery Oil Fish Cannery Real Estate Real Estate Motel Percent of Total Assessed Assessed Value Value $11,186,846 3.6% 7,882,800 2.5% 7,676,384 2.4% 5,123,775 1.6% 4,333,265 1.4% 3,274,750 1.1% 2,970,067 .9% 2,828,409 .9% 2,644,424 .8% 2,627,356 .8% 95 TABLE XII CITY OF KENAI, ALASKA Alaska Public Employees' Retirement System Ten-year Historical Trend Information (Required Supplementary Information) Assets Assets Surplus Fiscal as a in excess of as a Year Net Assets Pension Percentage Pension Benefit Annual percentage Ended Available Benefit of Obligation Covered of Covered June 30 for Benefits Obligation Obligation (surplus) Payroll Payroll 1985 $ 4,255,285 $ 3,288,718 129.4% $ 966,567 $ 2,967,823 32.6% 1986 5,239,945 4,589,899 114.2% 650,046 3,094,054 21.0% 1987 7,798,000 5,871,000 132.8% 1,927,000 3,189,833 60.4% 1988 7,953,000 7,029,000 113.1% 924,000 3,202,528 28.9% 1989 9,661,000 8,551,000 113.0% 1,110,000 3,398,406 32.7% 1990 10,884,000 9,202,000 118.3% 1,682,000 3,489,025 48.2% 1991 11,858,000 10,957,000 108.2% 901,000 3,548,784 25.4% 1992 13,961,000 13,006,000 107.3% 955,000 3,814,279 25.0% 1993 15,928,000 14,377,000 110.8% 1,551,000 3,838,801 40.4% 1994 16,731,000 16,338,000 102.4% 393,000 3,865,498 10.2% TABLE XIII CITY OF KENAI, ALASKA Miscellaneous Statistical Data June 30, 1996 Date of Incorporation: 1960 Date Charter Adopted: May 20, 1963 Form of Government: Home Rule City Area in Square Miles: 45 Miles of Streets: 61 Miles of Sewer: Storm: 9 Sanitary: 65 Building Permits Issued: Calendar Year Number of Permits Value 1979 91 $ 3,796,930 1980 81 4,735,000 1981 100 5,003,630 1982 163 10,949,500 1983 234 28,626,800 1984 189 20,021,200 1985 157 14,565,012 1986 88 18,880,543 1987 69 2,397,726 1988 46 1,822,450 1989 59 1,854,800 1990 52 2,646,380 1991 84 17,807,600 1992 62 10,030,993 1993 86 12,949,525 1994 99 8,085,346 1995 102 7,877,902 Fire Protection: Number of Stations: 1 Number of Employees: 17 Police Protection: Number of Stations: 1 Number of Employees: 16 Recreation: Number of Facilities: Parks: 7 Ball Fields: 11 Recreation Center: 1 City Employees as of June 30, 1996: 130 (approximately) Elections: Number of Registered Voters: 4,390 Percentage of Registered Voters Voting in last General Election: 35% Population: 7,006 97 February 28th 1997 To: Mayor John Williams And Kenai City Council Subject: Fencing around the Pre School Building; Good Evening. My name is Amy Williams and I am the president of the Kenai Co-operative Pre School located in the Kenai Historical Society Building. As you know the building belongs to the City of Kenai and is leased to the Kenai Historical Society for $1.00 per year. They in turn lease it to our non profit group for $400.00 per month. We maintain the inside of the building for the benefit of those children enrolled and also take care of snow removal and sanding of the parking area and walk. Last year after lengthy discussions with the Historical Society director, Mr. Meeks, we came to a successful decision to r. ecarpet the building. The pre-school purchased and installed the carpet at our expense and pay for it's cleaning on a regular basis. Recently we discussed with Mr. Meeks the possibility of installing a permanent fence around a small portion of the play yard to protect the children from not only the possibility of running into the street but to keep the moose away from the children as well. During the fall and spring we take the kids to the small play area furnished by the city next to the Fine Arts Building. It has been our experience in the past that we seem to be responsible for the cleanup and care of the park as well. During the Winter because of the snow in the park, we cannot use the park as it is not maintained so we must: stay near our building. At the present we have a temporary safety fence that is both unsightly and we feel inappropriate as well. This prompts the need as indicated for installation of the fence for safety and security of the children. We are willing to accept the responsibility of not only acquiring the fencing material bilt of having it installed as well. My presence here this evening is to ask permission from you as owners of the facility to allow us to acquire and install the fence. Since it is on city property, we would be more than willing to have your city engineer observe the installation to insure that it is done correctly. Thank you for your support in this matter; I eil =4 La��OC�0Q4F�RD ARCHITECTURE • INTERIORS • GRAPHICS March 4, 1997 Kenai City Council Members City of Kenai 210 Fidalgo, Suite 200 Kenai, AK 99611 RE: KENAI ANIMAL CONTROL SHELTER Dear Council Members: �s a �14 dell � � Q fit,?Ip� f eF � Jack LaShot and Bob Springer have been in contact with our office showing renewed interest in construction of the referenced project. It was pointed out that the city is considering a new site for the building further up Willow Street. The new site would provide cost savings by reducing the access drive length and sewer extras related to the original site. The amount of this savings could be $10,000 to $15,000, but cannot be ascertained until revised site drawings are prepared. We have recently completed bidding phase services for the Ninilchik School wing replacement. In my sixteen years of professional practice here, I have never seen better prices on this quality of construction. Nine general contractors submitted bids with the low bid at $2,704,000 coming in $115,000 under the next low. This equates to $126/sq.ft. for construction starting under cold weather conditions! The Ninilchik facility has similar building materials to the Animal Control facility. In addition, it has an elevator, extensive computer wiring, large windows, and abundant casework. We urge the council to take ad(er e of t e bid ready documents in their position and proceed with construction. Using $145 quare f of the Animal Control Shelter as presently detailed, would come in at approximatel4,000. Considering the School bid results, this project's bid could come in considerably lowave ontacted Bill Nelson and we are in a position to make necessary site/bid package mo in a two week time period. We offer these services, as well as bid phase services, for a not to exceed amount of $8,000. If the council allows us to proceed with the bid package now, this approach will allow bid opening to occur on or about April 16, 1997. City personnel and our firm have expended a great amount of effort to design a facility that meets the City's animal control needs with a durable solution. Rather than discussing deletion of elements or substituting lesser quality construction, the City now has an opportunity to use existing bid ready documents in completing this much needed facility within the budget limits requested. Sincerely, KLUGE & ASSOCIATES AKIIX - Bill Kluge, Pri cipal Architect BK/tw ;1 i< -nt •.. Suggested b : Airport Mana; � — / gg Y � CITY OF KENAI ORDINANCE NO. 1735-97 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $250,000 IN THE CAPITAL PROJECT FUND ENTITLED "KENAI ARFF PROJECT". WHEREAS, the City has been instrumental in developing plans for the construction of the Alaska Regional A,rcraft Rescue and Firefighting Training Center in Kenai; and WHEREAS, money is required to conduct final engineering and design before final assignment of grants; and WHEREAS, the FAA has shown support of the project by offering a grant. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: Kenai ARFF Capital Project Increase Estimated Revenues: Transfer from Airport 0 000 Increase Appropriations: Engineering 0 0 0 Airport Land System Increase Estimated Revenues: Appropriation of Fund Balance 0 000 Increase Appropriations: Airport Land - Transfers S25. 000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5`h day of March, 1997. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: February 19, 1997 Adopted: March 5, 1997 Effective: March 5, 1997 Approved by Finance: (2/13/97) kl Suggested by: Administration CITY OF KENAI RESOLUTION NO. 97-9 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT FOR FUEL SERVICE TO MAPCO EXPRESS, INC. AT THE UNIT PRICES LISTED BELOW FOR FURNISHING AND DISPENSING FUEL AT THEIR SERVICE STATION LOCATED AT BRIDGE ACCESS ROAD AND THE KENAI SPUR HIGHWAY. WHEREAS, the following bids were received on February 13, 1997, for the above referenced fuel and service: Furnish and Dispense Fuel at their service station Bidder: Mapco Express, Inc. Estimated Bid Analysis Unit Price x Quantity = Total Diesel #1 $1.000 x 25,000 gal. = $25,000.00 Diesel #2 .950 x 25,000 gal. = 23,750.00 Gasoline .980 x 40,000 gal. = 39,200.00 Grand Total for Bid Analysis ................................................. $87,950.00 Bidder: Kenai Airport Fuel Service Estimated Bid Analysis Unit Price x Quantity = Total Diesel #1 $1.07 x 25,000 gal. = $26 750.00 Diesel #2 1.01 x 25,000 gal. = 25,250.00 Gasoline 1.05 x 40,000 gal. = 42,000.00 Grand Total for Bid Analysis ................................................. $94,000.00 WHEREAS, the following prices are the posted rack prices at Mapco/North Pole, AK on February 13, 1997: Unleaded Diesel #1 Diesel #2 Gasoline Posted Rack Price $ .8550 $ .8000 $ .8500 (Mapco) WHEREAS, the unit price for fuel will fluctuate both as an increase or decrease at the same rate as the posted rack price at Mapco/North Pole, AK, and WHEREAS, the recommendation from the Public Works Department is to award the contract to Mapco Express, Inc. for the prices quoted in their bid, and WHEREAS, the Council of the City of Kenai has determined that Mapco Express, Inc.'s bid is the lowest responsible bid and award to this; bidder would be in the best interest of the City, and WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the contract for fuel service be awarded to Mapco Express, Inc. for the amount of $1.00/gal. for diesel #1, $.95/gal. for diesel #2, and $.98/gal. for unleaded gasoline for Furnishing and Dispensing Fuel at their service station located at Bridge Access Road and the Kenai Spur Highway. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5" day of March, 1997. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk Written by Public Works: Approved by Finance: 2/97/kw MEMORANDUM ro: Rick Ross, City Manager e - FROM: Keith Kornelis, Public Works Director(�R DATE: February 13, 1997 SUBJECT: Fuel Bids I opened the bids for furnishing the City of Kenai fuel for the next year. Furnishing and Dispensing Fuel at the Vendors Service Station Resolution No. 97-9 awards this bid to Mapco - Express, Inc. who is the apparent low bidder. Mapco's unit price is lower for each type of fuel. Furnish and Deliver Fuel to Dock and Generator Tanks Analyzing the fuel bids for furnishing and delivering fuel to the Dock and generator tanks was a little more difficult. Kenai Airport Fuel had a lower unit price for #1 diesel and gasoline, but a higher price for #2 diesel than Mapco Express. The Kenai Finance Department gave me the following quantities that the city used from February, 1996 to January, 1997: #1 Diesel = 1,409 gallons #2 Diesel = 43,714 gallons Gasoline = 6,200 gallons When you multiply it all out, Doyle's Fuel Service -has the lowest grand total for bid analysis. Resolution No. 97-8 awards Doyle's Fuel Service the bid for Furnishing and Delivering fuel to the Dock and city generators. KK/kw C ;e' SUBSTITUTE Suggested by: Administration CITY OF KENAI RESOLUTION NO. 97-9 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT FOR GASOLINE FUEL SERVICE TO MAPCO EXPRESS, INC. AT THE UNIT PRICE OF $.98/GAL. FOR FURNISHING AND DISPENSING GASOLINE FUEL ONLY AT THEIR SERVICE STATION LOCATED AT BRIDGE ACCESS ROAD AND THE KENAI SPUR HIGHWAY. WHEREAS, the following bids were received on February 13, 1997, for the above referenced fuel and service: Furnish and Dispense Fuel at their service station Bidder: MAPCO Express, Inc. Estimated Bid Analysis Unit Price x Quantity = Total Diesel #1 $1.000 x 25,000 gal. = $25,000.00 Diesel #2 .950 x 25,000 gal. = 23,750.00 Gasoline .980 x 40,000 gal. = 39,200.00 Grand Total for Bid Analysis ................................................ $87,950.00 Bidder: Kenai Airport Fuel Service Estimated Bid Analysis Unit Price x Quantity = Total Diesel #1 $1.07 x 25,000 gal. = $26 750.00 Diesel #2 1.01 x 25,000 gal. = 25,250.00 Gasoline 1.05 x 40,000 gal. = 42,000.00 Grand Total for Bid Analysis ................................................. $94,000.00 WHEREAS, the following prices are the posted rack prices at MAPCO/North Pole, AK on February 13, 1997: Diesel #1 Posted Rack Price $ .8550 (MAPCO) Unleaded Diesel #2 Gasoline $ .8000 $ .8500 WHEREAS, the unit price for fuel will fluctuate both as an increase or decrease at the same rate as the posted rack price at MAPCO/North Pole, AK, and 1 WHEREAS, the Administration recommends that the city re-establish the dispensing of diesel fuel from its cwn facilities and that cnly the gasoline part of the contract be awarded to MAPCO Express, Inc. for the price quoted in their bid, and WHEREAS, the Council of the City of Kenai has determined that MAPCO Express, Inc.'s bid for gasoline is the lowest responsible bid and award to this bidder for gasoline only would be in the best interest of the City, and WHEREAS, MAPCO Express, Inc. has agreed to furnish the city gasoline only at their unit bid price, and WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the contract for gasoline fuel service be awarded to MAPCO Express, Inc. for the amount of $.98/gal. for Furnishing and Dispensing Unleaded Gasoline Fuel only at their service station located at Bridge Access Road and the Kenai Spur Highway. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5" day of March, 1997. ATTEST: Carol L. Freas, City Clerk Written by Public Works: Approved by Finance: 2/97/kw JOHN J. WILLIAMS, MAYOR 2 CITY OF KENAI Gd 4 4" ►► 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 an 1III'1 Memorandum Date: February 28, 1997 To: Kenai City Council From: Richard A. Ross, City Manager RE: Resolution 97-9 Substitute The Administration recommends that you approve the Substitute Resolution 97-9. This would result in the following course of action: 1. MAPCO would be awarded the furnish and deliver contract for supply of gasoline. They have agreed to do this at the bid price. 2. The Administration would implement a plan to pump diesel from its own pumps. Once the fuel system is in place, a contract for furnishing diesel to the tank at the City yard would be bid. In the interim, the present supplier has agreed to extend the terms of last year's contract. The MAPCO station is not acceptable for supplying diesel to the City's heavy equipment and Fire Department vehicles. Pump access for major equipment is poor and competitive with retail traffic entering from two directions. In order to park parallel to the pump block, some equipment would have to enter through the bowling alley parking lot. Equipment with poor visibility would require two employees for safety purposes. Moving Airport equipment to and from the MAPCO station results in significant time loss over the period of a year. Time loss waiting for the pump block to clear would also be significant over time. February 26, 1997 Memorandum 2 The City can reactivate its diesel tank in the following manner: a. Abandon the present pump island. This would alleviate the geed for redoing the underground piping and construction of a large apron area. b. All plumbing would be placed above ground inside the containment area. A secured pump control and the dispensing hose would also be located within the diked containment area. This could be accomplished with the necessary' new underground wiring, and lighted for $5,000 or less. At a future date, a small concrete apron could be added and the tanks covered if needed. ... MEMORANDUM TO: Richard Ross, City Manager FROM: Jack La Shot, City Engineerq�— DATE: February 27, 1997 SUBJECT: Fuel system You requested an estimate to rework the maintenance yard fuel system to utilize the diesel tank only, and eliminate the existing dispensers. We think this can be done for $5,000 or less. The following items would need to be done: • Retrench and install new electrical wiring from the crew building to the tanks. • Use the existing pump in the diesel tank. • Install a back flow solenoid valve in the line to the nozzle. • Install a pump control and enclosure (secured). • Install a flow meter, if necessary. • Install a new yard light. This work would allow us to use the existing diesel system only. We could make other improvements, such as a concrete apron and roof, later if we choose. We can also convert the gasoline tanks to diesel, or use the same pumping method for gas. �3 Suggested by: Airport Manage City of Kenai RESOLUTION NO. 97-10 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA TRANSFERRING $5,000 IN THE AIRPORT TERMINAL FUND FOR THE PURCHASE AND INSTALLATION OF AN OVERHEAD ROLLING GRILLE (GATE) AT THE RESTAURANT. WHEREAS, the new airport restaurant concessionaires have requested an overhead rolling grille to be installed in the north wall of the restaurant; and WHEREAS, the Airport Manager recommends this building improvement because it will increase the visibility of the restaurant to the public; and WHEREAS, a quote was solicited from Doors and Windows for time and materials; and WHEREAS, funds in the amount of $5,000 are available in the Airport Terminal Contingency Account. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following budget transfers be made: Airport Terminal Fund From: Contingency $5,000 To: Buildings $5,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of March, 1997. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: 0 (2/26/97) kl Suggested by: Administration City of Kenai RESOLUTION NO.97-11 A RESOLUTION SUPPORTING ENACTMENT OF KENAI PENINSULA BOROUGH ORDINANCE 97-13 WHICH INCREASES THE CAP ON TAXABLE SALES FROM $500 TO $1,000. WHEREAS, the Kenai Peninsula Borough Assembly is scheduled to act on Ordinance 97- 13 on March 18, 1997; and WHEREAS, this Ordinance would increase the cap on transactions subject to sales tax from $500 to $1,000; and WHEREAS, the current cap has not been adjusted for inflation since the inception of the sales tax ordinance over thirty years ago; and WHEREAS, costs of goods and services have more than doubled in this time period. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that: Section 1: The City Council of the City of Kenai, Alaska supports the enactment of Ordinance 97-13. Section 2: A copy of this Resolution is to be sent to the Kenai Peninsula Borough Assembly President for consideration at their March 18 meeting. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5t' day of March, 1997. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: (2/26/97) kl 6 - � Introduced by: Wiley Date: 2/ 18/97 Hearing: 3/18/97 Action: Vote: KENAI PENINSULA BOROUGH ORDINANCE 97-13 AN ORDINANCE AMENDING KPB 5.18.430, SALES TAX, BY INCREASING MAXIMUM TAX TO SALES ON $1,000 WHEREAS, taxes are an unpopular necessity of government; and WHEREAS, the Kenai Peninsula Borough sales tax code written in the 1960's has never been adjusted for inflation; and WHEREAS, funds received from sales tax help support Kenai Peninsula schools; and WHEREAS, education is a primary responsibility of borough government; NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH: SECTION 1. That Kenai Peninsula Borough Code of Ordinances Section 5.18.430 shall be amended to read.: 5.18.430 Computation —Maximum tax. The tax shall be applied only to the first $1,000.00 [500.00] of each separate sale, rent or service transaction, except as otherwise: provided in this section. A. Except as provided below for long-term vehicle leases, the payment of rent, whether for real or personal property, in excess of $ 1 000.00 [500.00] and for more than one month, shall be treated as several separate transactions covering the rental/lease for one month each. B. A transaction involving payment for services or personal property to be rendered or delivered over a period of more than one month for a consideration in excess of $ 1 000.00 [500.00] shall be treated as several separate transactions occurring one each month over the period of time that the service or property is rendered or delivered. C. Services provided on account and billed to the customer on a monthly basis are subject to application of the tax on a maximum of $ 1 000.00 [500.00] of each monthly billing, per account. D. Each night's rental of each individual room shall be considered a separate transaction and therefore the maximum tax computation shall be calculated on a per room per night basis. E. Long-term vehicle leases shall be treated as one transaction per year, and per fractional year, of the lease term. The tax paid for any fraction of a year shall equal the tax paid for Kenai Peninsula Borough, Alaska Ordinance 97-13 Pagel of 2 a whole year. The sales tax for the entire long-term vehicle lease shall be due and collected at the time of the first payment. There shall be no refund of su-h taxes should the lease terminate earlier than on its terms. Any extension of the initial lease term hall be treated as a new long-term vehicle lease. SECTION 1. That this ordinance shall become ciiCctive upon enactment. ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS DAY OF , 1997. Jack E. Brown, Assembly President ATTEST: Gaye J. Vaughan, Borough Clerk Ordinance 96-13 Kenai Peninsula Borough Page 2 of 2 C-� Suggested by: Police (thief City of Kenai RESOLUTION NO. 97-12 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT TO VIDEO SYSTEMS PLUS FOR THE PURCHASE OF SEVEN PATROL VIDEO SYSTEMS. WHEREAS, on February 10, 1997, Video Systems Plus was the only bid received; and WHEREAS, the Video Systems Plus bid meets or exceeds the bid specifications; and WHEREAS, the Police Chief recommends award to Video Systems Plus; and WHEREAS, sufficient funds are available. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that a contract be awarded to Video Systems Plus for the purchase of seven Police patrol video systems in the amount of $14,000. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of March, 1997. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: (2-26-97) Suggested by: Police Chief City of Kenai RESOLUTION NO. 97-13 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT TO APPLIED CONCEPTS, INC. FOR THE PURCHASE OF SEVEN HAND-HELD POLICE TRAFFIC RADARS. WHEREAS, on February 10, 1997, the following bids were opened for seven hand-held Police traffic radars: Kustom Signals, Inc. $12,705 Applied Concepts, Inc. $12,915 Decatur Electronics, Inc. No Bid Enclosed WHEREAS, the bid from Applied Concepts, Inc. is the lowest responsible bid which meets or exceeds the bid specifications and the Kustom Signals bid does not meet the specifications; and WHEREAS, the Police Chief recommends award to Applied Concepts, Inc.; and WHEREAS, sufficient funds are available. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that a contract be awarded to Applied Concepts, Inc. for the purchase of seven hand-held Police traffic radars in the amount of $12,915. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 5th day of March, 1997. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: (2-26-97) KENAI POLICE DEPT. 107 SOUTH WILLOW ST., KENAI, ALASKA 99611 TELEPHONE: (907) 283-7879 - FAX (907) 283-2267 TO: LARRY SEMMENS FINANCE DIRECTOR FROM:,, DANIEL MORRIS , j#'-CHIEF OF POLICE DATE: FEBRUARY 24, 1997 RE: RADAR BIDS On February 10, 1997, bids were opened at City Hall in response to an invitation to bid on seven hand-held traffic radars. Applied Concepts, Inc. - $12,915 Decatur Electronics, Inc. - No bid enclosed Kuston Signals, Inc. - $12,705 The bid from Kustom Signals, Inc. did not meet all bid specifications. I recommend awarding the bid to Applied Concepts, Inc., which meets or exceeds the specifications. I am requesting a resolution awarding the bid to Applied Concepts, Inc. in the amount of $12,915. DLM/lr Suggested by: C 61 �1 CITY OF KENAI 'RESOLUTION 97-14 A RESOLUTION OF 1 1E COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING MORRISON MAIERLE, INC.'s CONTRACT FOR THE ALASKA REGIONAL FIRE TRAINING CENTER PROJECT, TO INCLUDE THE FINAL DESIGN PHASE FOR THE NOT -TO -EXCEED AMOUNT OF $376,000. WHEREAS, Morrison Maierle, Inc.'s estimates dated February 13, and February 26, 1997 have been reviewed by the city; and WHEREAS, this contract amendment will provide final design of the project to include a fully designed training building with finished second floor (referred to as Option #4) and alternates to enable construction bids to be received and evaluated for an unfinished second floor (Option #3) and for no additional second floor space (Option #2); and WHEREAS, the final design phase also includes the access road, utilities to the site, site development and infrastructure; and WHEREAS, sufficient funds have been appropriated to award this project; and WHEREAS, the recommendation of the City Administration is to award this amendment to Morrison Maierle, Inc.'s contract; and WHEREAS, the award of this amendment is contingent upon FAA approval; and NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the contract with Morrison Maierle, Inc. for the Alaska Regional Fire Training Center Project be amended to include the final design phase for the not - to -exceed amount of $376,000. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 51h day of March, 1997. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: Written by Public Works: /kw/2/97 Alaska Regional Fig a Training Center Expenditures, Enc°.:mbrances, Appropriations As of February 28, 1997 Original Appropriation: Administration $ 10,000 Engineering $ 480,000 Total: $ 490,000 Expenditures & Encumbrances from Engineering: Environmental - Aries $ 50,000 Preliminary Engineering $ 169,000 Morrison-Maierle and Sub -consultants Design Assistance - Symtron $ 130,000 Total Encumbrance to Date: $ 349,000 Total Unencumbered Engineering: $ 131,000 Final Design Engineering Contract Amount: Option #2 $ 353,300 Option #3 $ 363,275 Option #4 $ 376,000 Appropriation Needed to Finish Design Plus $5,000 Contingency: Option #2 $227, 300 Option #3 $237,275 Option #4 $250,000 CURRENT FUNDING BREAKDOWN ALASKA REGIONAL FIRE TRAINING CENTER KENAI, ALASKA BUILDING OPTION #2 (AS SUBMITTED TO FAA) MORRISON-MAIERLE, INC. 2/5/97 lPropane CURRENT ESTIMATED AMOUNT FEDERAL ESTIMATED AMOUNT LOCALSHARE ESTIMATED AMOUNT Equipment $3,190,000 $2,990,625 $199,375 Site Development $1,720,000 $1,612,500 $107,500 Access Road, Utilities $420,000 $393,750 $26,250 Propane Delivery System $350,000 $328,125 $21,875 TraiWn :Bra€lch-g'860000 - - $620,000 Crash Trucks and Equipment $835,000 $782,813 $52,18g Engineering & Architecture $911,000 $806,463 $152,138 TOTAL AMOUNT $9,906,000 1 $8,774,275 $1,179,325 BUILDING OPTION # 3 (UNFINISHED SECOND FLOOR - SHELL ONLY) CURRENT ESTIMATED AMOUNT FEDERAL ESTIMATED AMOUNT LOCALSHARE ESTIMATED AMOUNT Propane Equipment $3,190,000 $2,990,625 $199,375 Site Development $1,720,000 $1,612,500 $107,500 Access Road, Utilities $420,000 $393,750 $26,250 Propane Delivery System $350,000 $328,125 $21,875 TrainingBuilding: - $$60000 $1,020,000 Crash Trucks and Equipment $835,000 $782,813 $52,188 Engineering & Architecture $947,000 $806,463 $188,138 TOTAL AMOUNT $10,342,000 $8,774,275 $1,615,325 BUILDING OPTION # 4 (FINISHED SECOND FLOOR) CURRENT ESTIMATED AMOUNT FEDERAL ESTIMATED AMOUNT LOCALSHARE ESTIMATED AMOUNT Propane Equipment $3,190,000 $2,990,625 $199,375 Site Development $1,720,000 $1,612,500 $107,500 Access Road, Utilities $420,000 $393,750 $26,250 Propane Delive System $350,000 $328,125 $21,875 Training .8Uld-md- - _ `3 'r4 Q00<. J. °. :$ 6Q 00 :$1320;000 Crash Trucks and Equipment $835,000 $782,813 $52,188 Engineering & Architecture $964,000 $806,463 $205,138 TOTAL AMOUNT $10,659,000 $8,774,275 $1,932,325 Z J CL 0 LL ct uj a 0 0 LL O w � J m �0 J Z 0 0 Z w 2 0 G z 0 P W W Q Q C> y � 0 i000� Q O O O N' Oto c co 4444WW y ,y U)cts m �•2 � yaama *a W W W W ad s 1 U U _N � N E C (D s E y E w E 1 as cr�- Zww 200 S F' U) zw w p0°�-1 3= o to I d '� Z 1 20 w W� W `o N C 3 og aoo w �Ir l6 otfY� � 7 N �Q0 �� cm w O a,� ►� • `N' ���N, c-� Suggested by: Councilman Moore CIW OF KENAI RESOLUTION NO. 97-15 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, OPPOSING PROPOSAL D-AAC21.363 UPPER COOK INLET SALMON MANAGEMENT PLAN TO BE PRESENTED AT THE MARCH, 1997 MEETING OF THE ALASKA BOARD OF FISHERIES. WHEREAS, The City of Kenai recognizes a historic Cook Inlet Drift Net Salmon Fleet operating out of the Kenai River; and, WHEREAS, the City of Kenai recognizes the Cook Inlet Drift Net Salmon Fleet and its associated support industries as significant entities in the social and economic health of the City of Kenai; and, WHEREAS, the entire Cook. Inlet Drift Net Salmon harvest is landed and processed in the Kenai Peninsula Borough; and, WHEREAS, passage of Proposal D would result in lost harvest opportunities and alter the flow of product into and out of the processing sector; and, WHEREAS, passage of Proposal D would result in major economic losses in the harvesting, processing and business sectors of the City of Kenai economy; and, WHEREAS, Alaska Department of Fish & Game has informed local advisory committees that passage of Proposal D would result in escapements over and above a sustained yield in years of above -average returns; and, WHEREAS, if Proposal D-AAC21.363 of the Upper Cook Inlet Salmon Management Plan is passed and implemented by the Alaska Board of Fisheries, it will create severe social and economical hardship for the historic Cook Inlet Drift Net Salmon Fleet and its associated support industries in the City of Kenai. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, Section 1: That the City of Kenai opposes Proposal D-AAC21.363 of the Upper Cook Inlet Salmon Plan to be presented at the March, 1997 meeting of the Alaska Board of Fisheries; and, Resolution No. 97-15 Page 1 of 2 Section 2: That this opposition be communicated directly to Governor Tony Knowles, the Alaska Board of Fisheries aL d copies of this resolution be sent to Commissioner Frank Rue, Alaska Department of Fish and Game; Speaker of the House Gail Phillips; Senator John Torgerson; Senator Jerry Ward, Representative Gary Davis; and, Representative Mark Hoogins. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of March, 1997. ATTEST: Carol L. Freas, City Clerk Resolution No. 97-15 Page 2 of 2 John J. Williams, Mayor FEB-28-97 FRI 8:22 OT&L FAX NO. 19072623855 FES 27 ' 97 03:10PM UCIDR 907 28c3� 3 mud o! 1r Wlerltli PROPOSAL D . s AAC zL-Va. UPPER COOK iN= SALMON MANAGEMENT PI A,N. This proposal would amend the regulations by Wing a new subsection (d) and re - lettering fire existing subsection (d) as a new subsection (e). Tbe-proposed regulation, if adopted. would read as follm- 5AAC21-W 0 /" onsistem with (a) of diiA section, the deflsatment in. • n rd•M ,_• •-�� 1! •'r 1. ! w� :. I. .,«. �': . r .:•L�-fir r1� ' . • _}.- • r. .11irl.rlob I ki 141� P.2 PROBLEM: There is no specific and directed managemeat plan for Northam District sockeye Asher= and hocks The Northern District seutetters are a long-term historical fthety in Upper Cook Inlet. However, based on the tremendous growth in the Ream River sockeye ftery, the focus of ADF&O staff has bean on the Central District harvest. Over time, the Northern District has caught proportionally lase and leu nordm bound sockeye. Over time. the mumptnent of Upper Cook Inlet has resulted in a re -allocation of sotthem bound sockeye to the Central District st the expense of the Northam District. At present. ADF&O ia-eeasoa sockeye objections for the entire Northers Dbuxt focus only on ttte two sockeye escapement goals of too= to L%000 for the Yentna Rivet and the Big Lake goal of 50.000. If these goals tee met (sad they have not consistently been ma over the past decade). the dep ttmant assumes that adequate numbers of sockeye escaped into other Northern District drainages. Any "surplus" sockeye beyond these two escapement requirements are managed to be caught in the Central District. The department has nor direction from the Board to p uvide any sockeye forNortbem District matters. As matters now :land, t:early ninety percent of Northern District sockeye which era m ght in Upper Cook Inlet ere caught by Central District fishers, while only ten percent are caught by those setnetters tlshing in the t=lnal fiab*y. This is one of the clearest cores of an hroeroept fishery taking the vast majority offish bound for another diskdct from the tubers of that distrid The Imbalance needs to be todtessed. ' wgAT Wu.L HAPPEN IF NOZ H. O IS DONE? Northern District tetruttsrs will continue to suffer economically. Northern District seme azz will continua tq harvest a decreasing proportion of Northam District soekr ye. Native fishers Monk and point Possession) will continue to be sevasly compromised in trek already marginalized cominetcial fishery. WHO IS UM LY'TO BE BIsNEFr W: Northern District commercial setnet ushem northern bound sockeye and coho stocks which are mixed stocks and which am caught in great abundance by the highly eiiletent Central District drift flee4 the Village of Tyotmk, subsistence and sports fishers in the Notthem District. wH0 M LBCELY TO SUFFM Central Distract drift gillnet fisher who wilL of necessity, be managed is such a mamma so as to be more focused on Central District stocks and less on Northern District stocks. OTkM SOL'EMONS CONSWERED: Taking specific periods away from the Central District drift gilita ileac. If the fleet were to lose two additional periods between July 10 and July 20, there would undoubtedly be more fish in the Northam Distrim and Northern District $Matters would catch one In five of the fish bound for Northern District Livers. Howem. specific closures on specific dates tray wodc snail in some yew; and sot work welt in other. Tbercforv, it was thought that better and more flexible management would be an allocation of twenty percent of the projected size of the Northern District sockeye return would be a better solution. Pr 03 0 /,=EfEI 27 'S�7 03:11PPI IICIDA W P-83 33M P.3 r' • .. 'YLls aoes�• it .d to ••ems tb. aus�es w�.b .c of laeriwlmd c ooam io bo wd=da mlbt#mw Cookbld bnoL TMbomd ttyfineo& m ghe ptf or MIoe Io Me DONOM of Fs* and G=K m fbe AftW r Wmft t odd m membm of tlrepubllaasiv wodila awns db=ddad CORN o. 72ra AopKUDM 9= dpbn on i bhnu iom sut m wbm ep mft weett odd wmd modem mui do m the crosegaawtaa dat any ode at move ofdwo matteetwag hao taft iiodoipoed by to 1) Pftponl'E' . Creas i sodn a allocatka fbr*o gogboin r. h4 F I fillmy. -10% of the pcojecaed nod= di Wa socloeye rn of ' • �0'Ni oftbc projoded aoctbawa eooiorye t� a� a pavaodap ofentire = if *at�moeb � A)1t.dt = dal $shim otm+o • Cmo ' Dbuia DeiB� • r+eduee ancre�nlerpmod . • oon&ed to coaidot • Va dsHM a>Le 4d mov& ma • s >adrrce two:edutirpciods • • comfud to couidoc I no A*bv allaaed agyahm • • sbo�tm are ortwo eeddarpaiodt a coaflat+d to cot:iQor 8) Haduce eoomma del lishin gear • t,edtrae 3etlea� Laeds� Been mmbe of sbwmw am we or d= . • tzd=as depthfor drift • wttmrbQ ofamb" ofawaam" d C) Rcdm ft arcs ova to the wuncaiat May • e]a• eeeorin mb4 in the *otlmd d vd4 Kati eras • 6mi a of clwm edyid ewt ease 0 0 IM WOO IIU LB-1Q-M 0. RECEIVED P EB 2 7 1997 KENAI CITY CLERK CITY OF HOMER HOMER, ALASKA RESOLUTION 97-12 A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA IN OPPOSITION OF PROPOSAL D-AAC21.363 UPPER COOK INLET SALMON MANAGEMENT PLAN TO BE PRESENTED AT THE MARCH MEETING OF THE ALASKA BOARD OF FISHERIES. Parks WHEREAS, the Homer City Council recognizes a historic Local Cook Inlet Drift Net Salmon Fleet operating out of the Homer Boat Harbor; and WHEREAS, the Homer City Council recognizes the Local Cook Inlet Drift Net Salmon Fleet and its' associated support industries as a significant entity in the social and economical health of the community of Homer, Alaska and the surrounding Region; and WHEREAS, approximately twenty five percent of the Cook Inlet Drift Net Salmon permit holders reside in the Homer area; and WHEREAS, passage of proposal "D" would result in major economic losses in the processing and business sectors of the Homer economy; and WHEREAS, passage of proposal "D" would result in lost harvest opportunities and alter the flow of product into and out of the processing sector; and WHEREAS, if proposal D-AAC21.363 of the UPPER COOK INLET SALMON MANAGEMENT PLAN is passed and implemented by the Alaska Board of Fisheries it will install severe social and economical hardship on the historic local Cook Inlet Drift Net Salmon Fleet and it's associated support industries, the community of Homer, Alaska and the surrounding Region. NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska opposes Proposal D-AAC21.363 of the UPPER COOK INLET SALMON MANAGEMENT PLAN to be presented at the March Meeting of the Alaska Board of Fish; and Page Two Resolution 97-12 City of Homer BE IT FURTHER RESOLVED that this, Opposition be communicated directly to Governor Tony Knowles, the Alaska Board of Fisheries and that copies of this Resolution be sent to the Alaska Department of Fish and Game - Commissioner Frank Rue, Speaker of the House Gail Phillips, Senator John Torgerson, Representative Gary Davis, Kenai Peninsula Borough Mayor Mike Navarre & Assembly, the'City of Soldotna, the City of Kenai, Ninilchik, and the City of Seldovia. PASSED AND ADOPTED by the City Council of Homer, Alaska this 24th day of February, 1997. ATTEST: Y . CALHOUN, CMC, CITY CLERK Fiscal note not required. CITY OF HOMER -/1'j L JAC USHING, MAYOR s MMA P.O. BOX go KFNAL ALASKA 99611 M.! ("7)2 i-3M FAX: (907)233_W2 P"LUTION NO.9746 A TRuL4L RESOLUTION IN STRONG OPPOSITION TO PROPOSAL D-AAC21363 UPPER COOK INLET SALMON MANACROdE1VT PLAN TO BE PRESENTED AT THE MARCH 1997 MEETING OF THE ALASKA BOARD OF FISHERIES WHEREAS, the Kenaitze Indian Tribe, IBA, a federally recognized Tribe, reorganbw in August,1971 pursuant to the Indian Reorganization Act (LR.A.) of 1934, as amended for Alaska in 1936 and is responsible (in accordance with the preamble to the TnjW Constitution) for the social and economic welfare of its 939 Tribal Members and for the welfare of the total 2,767 Alaska Native residents of Central and Upper southern Kenai Peninsula of Sonthcentral Alaska; and WHEREAS, the Kena=e Indian Tribe, IRA has established long range goals Which relate to the collective and individual, social, economic, and governmental concerns of its people; and WHEREAS, the Cook Inlet Basin and its tributaries has, since time immemorial, been the life's blood of the Kenaitze Dena'ina, and many for their entire lives have realized its bounty as a natural expression of their inherited cultural way of life; and, WHEREAS, the Kenaitze Indian Tribe, IRA is very alarmed that the State Board of Fisheries plans a March 1997 meeting to consider Proposal D AAC21.363 of the Upper Cook inlet Salmon Management Plan, a board generated proposal submitted by Dan Coffcy at the Board of Fisheries meeting in September 1996 which, if passed, would result in major economic losses for all of the Cook Inlet Drift Net Salmon Fleet and associated suliport industries, the community of Kenai, Alaska, -and surrounding Region; and V'VMMAS, the Kenaitze Indian Tribe, IRA is also very alarmed that proposal "D" will be deliberated on without the benefit of the full and complete open public process requcstcd in the Kenaitze Indian Tribe's Resolution NO.96-42, and that the opportunity for public testimony regarding the management of Alaska's natural, renewable resources is a basic right of the citizens of the State of Alaska; and ���� :.� �' ?:�'iA:7 INDIAN TRIBE FAX NO, 907 283 3052 Page 2 of 2 Kenaitze Indian Tribe, IRA Resolution No. 97-06 WHEREAS, if proposal D-AAC21363 of the Upper Cook Inlet Salmon Management Plan is passed and implemented by the Alaska Board of Fisheries it will create severe social and economic hardship for the historic Cook Inlet Drift Net Salmon fleet and it's associated support industries in the Kenai Peninsula Borough; and NOW THEREFORE BE IT RESOLVED by the Kenaitze Indian Tribe, IRA Executive Committee Tribal Council on February 28, 1"7, that the Tribe strongly opposes Proposal D-AAC21.363 of the Upper Cook Inlet Salmon Management Plan and that the Kenaitze Indian Tribe opposes ANY Board of Fisheries meetings which deny public comment, and demands that the Board of Fisheries and Governor Tony Knowles commit publicly to a full and complete open public process for all Board of Fisheries meetings, now and in the future; and BE IT FURTHER RESOLVED, that this opposition be communicated directly to Governor Tony Knowles, the Alaska Board of Fisheries, and that copies of this Resolution be seat to the Alaska Department of Fish and Game - Commissioner Frank Rue, Speaker of the House Gail Phillips, Senator John Torgerson, Representative Gary Davis, Kenai Peninsula Borough Mayor Mike Navarre and Assembly, the City of Soldotna, the City of Kenai, Nindchik, Native Village of Tyonek, and the City of Seldovia. VOTING FOR 5, VOTING AGAINST: 0 ABSTAINING: n ABSENT: i DATE PETTERSON, TRIBAL CHAIRPERSON E INDIJIMMEK, IRA ON, TRIBAL SECRETARY E LNWAN TRIBE, IRA P. 03 KENAI AIRPORT CO.'AMISSION Kenai City Council Chambers Chairman Tom Thibodeau February 13, ; 397 at 7 p.m. ***AGENDA*** 1. Roll Call 2. Elections 3. Approval of Agenda 4. Approval of Minutes January 9, 1997 5. Persons Present Scheduled to be Heard a. Lori Davey, Director of Marketing, ACCI * b. Jonathan Koll * *Regarding placing calling card vending machine in the terminal. 5. Old Business a. Car Rental Proposal 6. New Business 7. Airport Manager's Report 8. Commission Comments and Questions 9. Persons Present Not Scheduled To Be Heard 10. Information Items a. City Council Agenda (1 /8/97 and 1 /15/97) b. Airport Commission Roster c. Seminar Information d. Update —Fire Training Center 11. Adjournment Agenda Feb. 13.doc KENAI AIRPORT COMMISSION February 13, 1997 ***MINUTES*** 1. Roll Call Members present: Bonnie Koerber, Tom Thibodeau, Henry Knackstedt, Sandra Hudson Members absent: Ron Holloway, Barbara Edwards, James Bielefeld Others present: Airport Manager Randy Ernst, Administrative Assistant Marilyn Kebschull 2. Elections KNACKSTEDT MOVED TO RETAIN THIBODEAU AS CHAIRMAN. KOERBER SECONDED THE MOTION. HUDSON MOVED TO NOMINATE KNACKSTEDT AS VICE -CHAIR. MOTION SECONDED BY KOERBER. ELECTIONS APPROVED BY UNANIMOUS CONSENT. 3. Approval of Agenda KNACKSTEDT MOVED FOR APPROVAL OF AGENDA. HUDSON SECONDED THE MOTION. APPROVED BY UNANIMOUS CONSENT. 4. Approval of Minutes January 9, 1997 KNACKSTEDT MOVED TO APPROVE THE MINUTES OF JANUARY 9, 1997. KOERBER SECONDED THE MOTION. APPROVED BY UNANIMOUS CONSENT. 5. Persons Present Scheduled to be Heard a. Lori Davey, Director of Marketing, ACCI Ms. Davey provided packets of information to Commission members. Lori Davey stated she works with Alaska Call Connection. Davey explained they are a prepaid calling card company based in Anchorage. Davey stated they are asking the Commission to consider putting a prepaid calling card machine at the Kenai airport. Davey stated the first letter in the packet provides information about the machine noting there are pictures of machines included. Davey stated they offer $10 and $20 cards. Davey stated these cards are 40 cents a minute but added that by February 27' they will be offering new cards which will be 33 cents a minute. Airport Commission Page 2 Minutes February 13, 1997 Davey continued noting they offer good international rates and gave examples of Mexico as $.96 per minute and Japan is $35 per minute. Davey commented that there are a lot of travelers in Alaska in the summer who use the cards. Davey noted they have a machine at the Anchorage Convention and Visitor's Bureau and they have a lot of international travelers who use the cards. Davey stated they are easy to use, economical, and easy to budget. Davey noted some people use them in place of long distant calling cards. Davey explained that a $10 card could be used for 30-1 minute calls. Davey stated that when you dial a number, you are told how many minutes are left on the card and added that cards are debited in one minute increments. Davey stated the important things for the Commission to consider is that they are state certified with the APUC. Davey stated this is important because there are fly by night businesses, who have purchased minutes, sold them, never paid the long distance carrier, and then left with consumers holding worthless cards. Davey stated the cards are only worth the value of the card so if lost or stolen you only lose the value of the card. Davey explained that the APUC regulates all telecommunications in Alaska. Davey stated the other factor is the EKKA (?) charges which they do not currently pay. EKKA charges, Davey explained, are used to subsidize communities who cannot support communications. Davey explained that if companies aren't certified that a lot of money leaves Alaska that should be a part of that source. Davey noted they are bonded as a requirement through the APUC. Davey stated she had included a copy of the company's certification and a copy of the contract. Davey noted they pay 15 percent commissions on revenue. Davey noted the only other airport machine their company has is in the Juneau airport. Davey stated she put a copy of Juneau's revenue sheet from last year in the packet. Davey stated ACCI maintains the machines. Davey stated Juneau makes about $200 a month. Davey stated the airport will only provide space and a plug in. Davey stated she included a copy of ACCI's insurance policy and noted they can add the Kenai Airport to their policy. Hudson, noting she understood revenue would be different than at the airport, asked how well the Three Bears and mall machines did. Davey stated that the Three Bears didn't do too well noting they had gone out of business which probably indicated that traffic hadn't been too well there. Davey stated she expects Kenai Airport to be seasonal adding she felt revenue would come from fisherman, tourists, and business people. Davey noted this is the same market as the Juneau airport. Davey stated that fisherman seem to be cash people who like using the calling cards. Davey stated it is hard to say how well it will do, but if it doesn't do well, they will remove it. Davey explained the contract is for a 90 day trial basis and is a 2 year contract but can be removed with 30 day notice from either party. Knackstedt asked about Anchorage and Fairbanks airports and why they don't have the machines in those locations. Davey stated Fairbanks had been difficult to deal Airport Commission Page 3 Minutes February 13, 1997 with but they are working on it. Davey noted they are a DBE noting she had out a copy of that in the packet al o. Knackstedt asked why Fairbanks would be so strict? Davey stated she wasn't sure noting that last time thev just said they didn't want it. Anchorage has stated they put it under their concession and unless they can deal with the concessionaire (W.H. Smith), they don't want to deal with it. Davey commented it is a good public service. Davey noted that travelers from outside find out that their cards don't work here so their phone cards provide a service for them. Thibodeau stated he was wondering who would actually use the cards in Kenai, noting most are sport fisherman, oil businessmen, reiterating he was not sure who would use the card. Thibodeau stated he wondered about people who would want to use the calls as a non -traceable method and not sure he wants to encourage that. Davey stated they are traceable somewhat. Davey noted she has not seen a problem with that. Davey added that they are speculating who is buying the cards based upon the area wherein they are bought. Davey noted they have one machine in the Tok grocery store that does really well, especially in the summer, and holds it's own in the winter. Koerber asked Ernst if he could see any detriments. Ernst stated he thought they would have to go out to bid. Ernst noted they would need to discuss it with the attorney and put it out for bid. Ernst noted he used one of the cards that Ms. Davey had given him to try noting he found it quite convenient. Davey stated the Commission is welcome to call the Juneau Airport noting they did it through the DBE without going out to bid. Ernst stated he felt the only way they got around the bid process was by not limiting it to one agency. Ernst stated there is an advantage to having a DBE. Thibodeau stated he would like to take a further look at this before they make a recommendation on the matter. Knackstedt asked Ernst to see what the attorney had to say about the proposal. b. Jonathan Koll Not present. 6. Old Business a. Car Rental Proposal Thibodeau noted that the Council had decided it would be okay if the area was divided into three areas and to see how the agencies wanted to do that and come Airport Commission Minutes Page 4 February 13, 1997 up with a plan. Thibodeau noted there were car rental representatives in the audience and stated if there is a plan the Commission would like to see it. Dan Van Zee of Hertz represented the agencies. Van Zee stated he spent a couple hours with Ernst's assistant, Holland, looking at what would be the most economical way to divide the space. Van Zee noted they looked at several scenarios. Van Zee stated the most feasible way, noting all agencies are in agreement, was to remove three partitions. Van Zee explained, the partition between Budget and what used to be National would be removed to 12 to 18 inches from the back wall. Van Zee noted there is plumbing that feeds the hot water heat, that would be left: with a stub wall. Van Zee stated they would fill in the space that is in the existing front counter and make it match the rest of the counter. Van Zee noted that space would become Budget and would essentially double that space. Van Zee stated they then move down one partition. Van Zee noted there is a partition between Avis and Hertz. Van Zee explained they would be doing basically the same thing there, remove that one partition and fill in the counter as stated above. That would become the Avis space, doubling that space. Van Zee explained moving down to the last partition, drawing attention to the small counter section at the end that was a booking agency last summer, they would remove the partition between the old Payless space and the small counter and that would become the Hertz space. Van Zee noted the spaces wouldn't be divided equally, Hertz would be about 15 feet long and the others about 20 feet. Van Zee noted he would gain more counter space because it is "L" shaped. Van Zee explained this proposal would involve moving only three partitions and noted it wouldn't involve any electrical or plumbing. Van Zee did note there was one electrical conduit which was surface mounted on the Hertz partition between Budget and National that can be removed very easily. Van Zee stated this proposal is suitable to all the agencies and would suit their needs. Van Zee stated they feel that this wouldn't be cost prohibitive and they would be willing to absorb the cost. Ernst stated the next step would be to get something on paper showing what it will look like when complete so the council and commission would have something to look at. Ernst stated he doesn't have a problem with the concept noting everything could be put back if they chose to in the future. Ernst noted that since the agencies have expressed an interest in doing the work at their expense that he didn't know how that will work. Ernst explained that if the city decided to go back to the four spaces he didn't know if they would lose their investment. Van Zee stated they would like to see the leases be renewed for five years. Thibodeau noted that if at the end of the five years the council determined that Airport Commission Page 5 Minutes February 13, 1997 they wanted it back to four spaces, that could be done. Thibodeau stated he understood that they would be leasing three spaces, i of the five for the five years. Van Zee stated that was his understanding adding tt ey understood they may lose their investment in the future. Ernst ooteu' They would be responsible for the additional space in their lease. Ernst noted they ^ceded to get something on paper showing how it would look adding the council is concerned about ascetics. Thibodeau stated he agreed they need some kind of drawings to go forward with and some cost estimates. Ernst stated they still have Payless in limbo adding probably until June when their lease expires. Van Zee noted they have looked at how the modifications could be made without much interruption of business. Van Zee stated that Holland had stated there were some drawings of the airport and asked if they could possibly get copies of those. Ernst stated they have drawings which they could get copies of. Ernst stated that he would suggest that they be prepared for the next Airport Commission meeting. Thibodeau asked what the date was for the Payless lease, the end or beginning of June. Ernst stated he would have to check. Knackstedt asked if modifications could be done before the end of June. Ernst stated he didn't feel they could make any changes until the lease expires. Van Zee asked if the city's position was to let the lease expire. Ernst stated the city doesn't have a choice because they cannot find him to serve notice which is required by law. Van Zee noted that if that were to take place, it could be vacated earlier. Ernst stated all they need is a signature. Van Zee stated they understand it is contingent on the space being available. Thibodeau stated he felt they were on the right track. Thibodeau asked about how they will combine the counters and if they will have two openings. Van Zee stated they will add counter top to make it look like a continuous counter. Ernst stated the plans would have to be approved. Thibodeau asked for drawings and an explanation of how they propose to complete the work so they will have something to pass onto council. Gary Zimmerman of AVIS asked if they should as a group of concessionaires put together a proposal for council. Ernst stated proposals should go to the Airport Commission who would make the recommendation to council. Knackstedt asked about the city having requirements for contractors. Ernst stated there are guidelines they must follow. Knackstedt asked if they can contract with someone to do the work or if the city will have to do that. Ernst stated that they could have someone do the work as long as they had the necessary insurance. Zimmerman asked if there was a dollar figure that they get into trouble with the RFP. Ernst stated that since they will be doing it, it shouldn't involve the city. Airport Commission Page 6 Minutes February 13, 1997 Ernst stated the city will need to see the plans and approve them. Ernst noted he will check and clarify this with the city attorney. 7. New Business 8. Airport Manager's Report Ernst drew attention to the information he included in the packet and explained that the pie chart in the packet was corrected from the information provided last month. Ernst stated he has a rendering of the fire training center proposed for Marathon Road and the layout for the floor plan. Ernst added he has the engineer's drawing for the proposed taxiway extension and the grass, i.e. gravel strip. Ernst stated they may be interested in reviewing these after the meeting. Ernst noted they have rough figures at $2.3 million at this time. Knackstedt asked if this includes an extension on the float pond and asked about the fill. Ernst stated they opted not to take fill from the float plane basin to extend it. Ernst stated they ran into some problems with the environmental. Ernst they found it wasn't feasible to use the fill noting it simplified the project by not having to include that area in the environmental. Ernst stated the environmental for the fire training center is complete. Ernst advised the budget will be turned in tomorrow to finance. Ernst stated one of the projects that may interest the Commission is crack sealing noting the last time it was done was in 1992. Ernst noted this will include the three main taxiways and the main ramp. Ernst stated city employees will seal the secondary taxiways. Ernst stated they are estimating that project at $135,000. Ernst stated they had the Part 139 Airport Certification Inspection the last three days and came through with flying colors with the exception of the ACM which needs updated. Ernst stated that with all manuals, there are pages that need updated. Ernst stated they plan to get with FAA and they may change the format of the ACM. Ernst gave credit for this to Holland noting he was busy with the budget. Hudson asked when they would do the crack sealing. Ernst stated he assumed toward the end of July after fish haul season. Ernst stated there is a whole diagram of how the airport is closed at different sections to facilitate the work. Ernst noted that last time it was a seven day project. Ernst stated that at the next meeting, after the regular meeting, they will go into an information meeting for the master plan. 9. Commission Comments and Questions Airport Commission Minutes 10. Persons Prese-it Not Scheduled To Be Heard 11. Information Items a. City Council Agenda (1 /8/97 and 1 /15/97) b�,- Airport Commission Roster c. Seminar Information d. Update —Fire Training Center Page 7 February 13, 1997 Thibodeau stated for the next meeting under Old Business they would discuss the car rental proposal and the phone card proposal. Thibodeau drew attention to the Seminar information in the packet. Koerber stated she had visited with the fire chief when he had the Russians with him. Koerber noted how excited he was and that she was impressed with the project. Ernst stated the project is at about $10.6 million. Thibodeau asked if there is an estimate of how many people it will bring in for training. Ernst stated there are 37 certified airports in the state which are mandated by FAA to have live fire training every year. Ernst stated they initially started with between 200 and 300 per year but anticipate it growing. 12. Adjournment Meeting adjourned at approximately 7:50 p.m. Respectfully submitted: ari yn Kebschull Administrative Assistant MARCH 5, 1997 CITY COUNCIL MEETING ITEM J=3 HARBOR COMMISSION REPORT. _Harbor Commission met on March 3. _Bill Nelson gave a report on the Alaska Science and Technology Foundation, ASTF, application that he is working on for the city. The Project is entitled "Kenai Bluff Erosion Control". It involves using culverts to protect against wave and current induced erosion. Harbor Commission requested that I forward the application to council with their recommendation to send the application in. The project cost estimate is $500,000. I plan on requesting the application be placed in the next council packet for March 19. Steve Attleson was added to the agenda at the meeting. He presented his idea of an oil spill response company to handle spills in the Kenai River. He proposed a consortium of the 8 companies that sell fuel on the Kenai River as the funding source including the city. He said he was not prepared with a written plan as yet but wanted to know if we were at all interested. When pressed for cost estimate he said $25-30,000 per each of the 8 companies the first year and $5,000 per year thereafter. Harbor Commission was non committal and asked for more information. They also asked commissioner Barry Eldridge to check on what CICPRI has to offer. _KENAI PUBLIC JOCK LEASES OF STATION 2 & 3 Harbor Commission went through the changes that the city attorney requested in the bidding document. The commission approved of the bidding documents. City Council had a memo in their last packet that listed some of the items in the bid but did not discuss the items. (1.) Sealed bids (2.) Bid one station for 4 years and the other for 2 years. When the 2 year lease is up, bid it for 4 years. Therefore, every 2 years a 4 year lease would be available to bid on. (3.) Minimum bid of $8,000 for each lease. (4.) City set a price of 3 % cents per pound for fish after reaching the total poundage figure from the basic bid price. Unless there is an obiection I Plan on having the opened on April 9 1997. CITY OF KENAI PLANNING AND ZONING COMMISSION **AGENDA** KENAI CITY COUNCIL CHAMBERS February 26, 1997, 7:00 p.m. hftp://w,oAN.Kenai.net/city 1. ROLL CALL: 2. ELECTIONS: 3. APPROVAL OF AGENDA: 4. APPROVAL OF MINUTES: February 12, 1997 5. PERSONS PRESENT SCHEDULED TO BE HEARD: 6. CONSIDERATION OF PLATS: a. PZ97-5—Baron Park Subdivision, Fire Addition 7. PUBLIC HEARINGS: a. PZ97-3—Encroachment Permit —Steve P. & Lucie B. Stanton-2545 Seine Court (Lot 10, Block 1, VIP Country Estates, Part 3), Kenai, Alaska 8. NEW BUSINESS: a. PZ97-4—Home Occupation Permit—Terria Gill-2780 VIP Drive (Lot 10, Block 4, VIP Ranch Estates), Kenai, Alaska b. Kennels in Suburban Residential Subdivisions —Discussion c. Proposed Amendments to KPB Chapter 5.14 and Chapter 21.18—Discussion 9. OLD BUSINESS: a. Review of Title 14--Cabin Definitions 10. CODE ENFORCEMENT ITEMS: 11. REPORTS: a. City Council b. Borough Planning c. Administration 12. PERSONS PRESENT NOT SCHEDULED: 13. INFORMATION ITEMS: a. Kenai River Special Management Advisory Board Minutes of 1/16/97 b. Airport Master Plan Public Information Meeting 3/13/97 at 7 p.m. 14. COMMISSION COMMENTS & QUESTIONS: 15. ADJOURNMENT: CITY OF KENAI PLANNING AND ZONING COMMISSION February 26, 1997 'Minutes*'' 1. ROLL CALL: Members present: Carl Glick, Phil Bryson, Teresa Werner-Quade, Ron Goecke, Barb Nord, Karen Mahurin, Michael Christian Members absent: None Others present: Councilman Hal Smalley, City Engineer Jack La Shot, Administrative Assistant Marilyn Kebschull 2. ELECTIONS: BRYSON NOMINATED GLICK FOR CHAIR. MOTION SECONDED BY MAHURIN. GOECKE MOVED TO CLOSE NOMINATIONS. BRYSON SECONDED THE MOTION. MAHURIN MOVED FOR UNANIMOUS CONSENT. GLICK ASKED IF ANYONE OBJECTED TO UNANIMOUS CONSENT. NO OBJECTIONS NOTED. GLICK ELECTED BY UNANIMOUS CONSENT. NORD NOMINATED BRYSON FOR VICE -CHAIR. MOTION SECONDED BY MAHURIN. GOECKE MOVED TO CLOSE NOMINATIONS AND ASKED FOR UNANIMOUS CONSENT. GLICK ASKED IF ANYONE OBJECTED TO UNANIMOUS CONSENT. NO OBJECTIONS NOTED. BRYSON ELECTED BY UNANIMOUS CONSENT. 3. APPROVAL OF AGENDA: BRYSON MOVED TO APPROVE AGENDA AS SUBMITTED AND ASKED FOR UNANIMOUS CONSENT. SECONDED BY GOECKE. APPROVED BY UNANIMOUS CONSENT. 4. APPROVAL OF MINUTES: February 12, 1997 CHRISTIAN MOVED TO APPROVE MINUTES OF FEBRUARY 12, 1997. SECONDED BY BRYSON. GLICK ASKED FOR ANY CORRECTIONS TO MINUTES. NONE NOTED. BRYSON ASKED FOR UNANIMOUS CONSENT. GLICK ASKED IF THERE WERE ANY OBJECTIONS UNANIMOUS CONSENT. NONE NOTED. APPROVED BY UNANIMOUS CONSENT. S. PERSONS PRESENT SCHEDULED TO BE HEARD: 7. CONSIDERATION OF PLATS: a. PZ97-5—Baron Park Subdivision, Fire Addition GOECKE RECOMMENDED APPROVAL PZ97-5 BARON PARK SUBDIVISION. MOTION SECONDED BY BRYSON. Glick asked if staff had additions to comments. La Shot noted that the size of Tract A-1-A should read 30.559 instead of 43.559 as listed. Goecke asked if this is for the fire training facility that is on the drawing board and asked if it is still on the drawing board or if it has gone beyond that phase. La Shot stated it is on the drawing board and noted it will be located on the ten acre plot being subdivided out by this plat. La Shot stated that at the next council meeting administration will be directions as to whether to complete the design work. Bryson asked if this project will require extension of water and sewer further out Marathon Road. La Shot stated it will not be extended down Marathon but down Magic. Christian asked if this is the area intended for the Challenger project. La Shot stated the ten acres will be for the fire training center and the Challenger will share Tract A-1-A with facility there now. Goecke asked what happens if the Commission turns the plat down. La Shot commented he didn't know what would happen but that it would probably go onto the borough. Smalley stated he would encourage the Commission to have good justification for turning it down and have it noted in the minutes. Goecke asked why. Smalley stated to record the justification for turning it down. VOTE: BRYSON YES WERNER-QUADE YES GOECKE YES NORD YES MAHURIN YES CHRISTIAN YES GLICK YES PASSED —UNANIMOUS. 8. PUBLIC HEARINGS: a. PZ97-3—Encroachment Permit —Steve P. & Lucie B. Stanton-2545 Seine Court (Lot 10, Block 1, VIP Country Estates, Part 3), Kenai, Alaska Planning & Zoning Commission Page 2 Minutes February 26, 1997 CHRISTIAN MOVED TO ACCEPT THE APPLICATION, PZ97-3. NORD SECONDED THE MOTION. PUBLII: HEARING OPENED., Steve Stanton —applicant. Mr. Stanton offered an explanation to the requested permit. Stanton stated they wanted to put an addition on to their residence. Stanton stated they hired an architect. When the city inspector checked it, he stated they would have to move the addition because it was over the boundary lines for the lot. Stanton stated they went back to the architect and paid for new plans. They then moved the residence six feet in the direction toward Lot 9 and built the addition. Stanton stated that when the surveyor came out for the final survey he noted they were 16.4 instead of 20 feet. Stanton stated he wanted the commission to know this was not intentional and reiterated the steps they had taken to try to alleviate the problem when they were first notified. Christian asked Stanton which way they had moved the plans. Stanton stated on the north side where it shows 24.6, they had originally planned to have it flush with that end. Stanton stated that would have put it over. Stanton stated the inspector said they needed 20 feet there. Stanton stated they told the architect what they needed and he redid the plans. Christian asked which way they moved the addition. Stanton stated the addition moved south. Glick clarified that the house was already there. Stanton stated that is correct. Stanton stated he had a letter from a neighbor, Brian Gabriel, who owns Lot 6, the house behind them. Glick asked for the letter to be entered into the record. Glick informed the Commission the letter is of non -objection. PUBLIC HEARING CLOSED. Bryson stated it appears that the encroachment meets the criteria for granting the permit. Bryson noted it was a situation he didn't create and it happened anyway. Bryson noted that what is the closest adjacent lot is in non -objection. Bryson stated he will be supporting the motion. Christian asked La Shot after they were told they needed to make the change and they made the change, Christian asked if it comes back to the building inspector. La Shot noted that was prior to the building permit being issued. La Shot noted that after the process starts they only have the plot plan until after the structure is built. La Shot noted staff cannot verify property lines. Christian asked if they didn't have to resubmit the plans. La Shot stated he felt the did that and noted the plot plan does not verify setbacks. Planning & Zoning Commission Page 3 Minutes February 26, 1997 VOTE: WERNER-QUADE YES GOECKE YES NORD YES MAHURIN YES CHRISTIAN YES BRYSON YEAS GLICK YES PASSED UNANIMOUS. 9. NEW BUSINESS: a. PZ97-4—Home Occupation Permit—Terria Gill-2780 VIP Drive (Lot 10, Block 4, VIP Ranch Estates), Kenai, Alaska WERNER-QUADE MOVED TO APPROVE PZ97-4. MOTION SECONDED BY MAHURIN. Bryson asked La Shot if it is his intent to clarify the square footage being used before sending the permit. La Shot noted it could be done before sending the permit. LYS411 1 GOECKE YES NORD YES MAHURIN YES CHRISTIAN YES BRYSON YES WERNER-QUADE YES GLICK YES PASSED UNANIMOUS. b. Kennels in Suburban Residential Subdivisions —Discussion Christian noted this had been brought up at the last meeting. Christian noted he had received complaints in his area about people having more than three dogs and kennel permits. Christian stated he has noticed that the codes and zones don't address kennels other than the three dog limit which anything over that requires a kennel license. Christian stated he thought the Commission should look at this to see if they should do something to restrict kennels in small subdivision. Christian asked the Commission if they should address the issue or not. Christian noted in the RR zone it addresses animal boarding but not in RS zones. Christian noted that area was left blank in the Land Use Table. Bryson stated in times past when there was a blank in the zoning code it meant that it wasn't an allowed use. The present interpretation of the code is that when there is a blank a conditional use application is an option. Bryson stated it goes through the same exercise when individuals have requested modifying a district. Bryson stated that may be an appropriate way to approach it and t clarify the zoning code as to where blanks for use exist. Planning & Zoning Commission Page 4 Minutes February 26, 1997 Christian stated that the animal control officer is not viewing it in that way and he is issuing permits on his own interpretation rather than going through a conditional use process. Christian noted that one person is making that decision. Christian stated he thought this would be a good place to address this. Mahurin asked Chris:;cin to define kennel and how many there are that they hw,,e concern about. Christian stated he knows of three in his subdivision which is supposes to have a limited number of animals in the covenants which they cannot enforce. Christian stated according to the city any number more than three requires a kennel permit. Christian stated he didn't see any different between a commercial and private kennel in the code but noted that Mr. Godek does differentiate between the two. Christian stated if it is for commercial uses, it is not allowed in subdivisions. Christian stated that one was just issued and one was just turned down in Woodland Subdivision. Werner-Quade stated that after the last meeting she talked to Brett Reid at the shelter and Mr. Godek, the animal control officer. Werner-Quade stated that one thing that came up is that there aren't really any dog lots in the city. Werner-Quade noted there are two different types of kennels, commercial, and anything other than three dogs. Werner-Quade stated is that people have to obtain a permit which is renewed annually. Werner-Quade reported in 1994 there were 2 issued, 1995 six issued, in 1996 six, in 1997 2 were issued. Werner- Quade noted it is a $25 fee and given according to the space that Mr. Godek feels is appropriate for the number of animals being asked for by the owners. Werner-Quade stated she reviewed the memo as to views for the next step. Werner-Quade stated she feels people in Alaska need to have animals. Werner-Quade stated she feels Mr. Godek has done a good job of screening owners who wish to have more than three pets. Werner- Quade stated the only problem she could see is any kind of health hazard noting Mr. Godek is not in favor of unsanitary conditions. Werner-Quade, regarding the memo, stated she felt that if they address kennels in the zones specified by subdivision, felt it should be changed to dwelling. Werner-Quade stated she felt if they zone kennels it should be by the dwelling. Werner-Quade stated that as for the whole thing, she doesn't feel there should be any change at this time except to review the blank spaces. Goecke stated he reviewed the information and noted he feels a little different. Goecke agreed that some people want to have an animal. Goecke stated he doesn't feel anyone needs to have more than three dogs in a residential neighborhood noting he doesn't care where they live. Goecke stated they have neighbors and they will be outside part of the time. Goecke stated he feels within the city limits that anyone who has more than three dogs should be in violation of a city code. Goecke stated he is in favor of going beyond working with a particular zone but in favor of an ordinance in the city that no one dwelling can have more than three dogs. Glick asked if the exception would be a commercial kennel in commercial zone. Goecke stated there should be no exceptions. Planning & Zoning Commission Page 5 Minutes February 26, 1997 Bryson noted he has taken a middle ground on the subject. Bryson stated looking at the present code, the RR is appropriate for (UP application. Bryson added he feels that small lot situations, whether RS 1 or RS, they should be limited to three dogs. Bryson stated preference would be that small lots be the classification rarely utilized, in RS 1 or RS 2. Bryson stated his intent would be for situations like Woodland and Redoubt subdivisions to be limited to three dogs. Mahurin stating she agrees with Werner-Quade noting she doesn't feel there is a major problem that needs to be changed. Mahurin added that without her dog, she would be lost. Mahurin stated she keeps her dogs in a small kennel and on a run and the neighbors let their cats run and torment the dogs. Mahurin stated if they talk about dogs, then they will have to talk about cats. Mahurin stated she doesn't feel it necessary at this point in the development of the city. Mahurin stated she has had wonderful luck with the animal control officer in the city. Mahurin stated she is not comfortable at this point without a big demand from the public to jump in and change the current code. Nord stated she lives in Woodland and sympathizes with the people there and the situation they are encountering. Nord stated she feels this is depriving other home owners of their quiet, peaceful enjoyment of their property. Nord stated she is inclined to go with a three dog restriction in the RS and RS 1 zones. Christian stated they already have on the books a three dog limit. Christian stated he felt they were discussing if they should allow more than three dogs or cats. Christian stated he would feel justified in adding any animal type. Christian stated in certain areas with large concentrations of people and animals problems develop. Christian added he felt it would make it easier for the animal control people to control the problem. Christian stated he is not against people having animals in any way. CHRISTIAN MOVED TO PROCEED WITH DEVELOPING SOME KIND OF RESTRICTIONS IN THE RS ZONES CONSISTENT WITH THE RR ZONES AND POLL MEMBERS TO SEE WHERE THEY CAN COME TO AN AGREEMENT. MOTION SECONDED BY NORD. Mahurin stated she is uncomfortable with the RS zone adding she understands a problem in a small area of the city and doesn't feel it proper to make an ordinance to cover all areas. Mahurin stated that perhaps they need to try to address the small area rather than the entire city. Goecke, noting he understands Mahurin's statement, but thinks there are a lot of people who are complaining that we don't hear about because of their neighbors having more than one animal, or having them running loose. Goecke noted that most people don't know that they can control that by calling the animal control officer. Goecke noted one instance wherein he told the people to call the animal control officer. Goecke stated he thinks there r Planning & Zoning Commission Page 6 Minutes February 26, 1997 are a lot of people who don't know they have an avenue. Goecke noted he still feels strong about putting it into the code about anyone having more than three dogs in the city. Bryson stated his interpretation of the code is that the RR 1- me is more restrictive than the IRS zone as regards animals. Bryson added he feels that s inappropriate. Bryson noted he has already stated his other opinions. Glick stated that perhaps if the animal control officer isn't interpreting it correct, he should be informed. Bryson stated he feels he is interpreting it correct. Christian stated that he is not necessarily recommending that all IRS zones be restricted to three dogs but would like to look further with the small subdivisions being more restricted. Christian stated that larger lots could be allowed a variance. Christian stated he would like to continue the discussion and perhaps take another step before turning it down. Mahurin stated in theory she agrees. Mahurin added that she knows many residents who have dogs who have puppies. Mahurin stated if there is a problem the neighbors should feel free to contact animal control. Mahurin stated that she would be willing to vote yes if they were talking about a concept but added she is not comfortable with the entire IRS zone. Mahurin stated if the intent is to bring up something before it is presented to the public she is agreeable. Christian noted that is his intent. Glick asked for motion to be read. Kebschull read the motion. Mahurin stated in hearing the motion she would have to vote no and asked Christian to come up a broader motion. Mahurin stated she is hearing that they want to bring IRS in line with RR adding she is not sure what they have discussed in intention. Goecke stated, looking at the Land Use Table under animal boarding, the RR now in both cases is conditional use. Goecke noted that as Bryson noted that before if the square was left blank, that was not permitted. Goecke stated that now the interpretation is that it could be permitted. Bryson stated that is basically it. Goecke asked what would be wrong with making IRS zones also a conditional use but they do have to come before P&Z rather than the animal control officer. Goecke commented on the neighbors having puppies which takes it over the limit is understandable. Goecke stated everyone knows that on any given day you can go to Carrs or K Mart and get puppies. Goecke stated that putting IRS zones, under animal boarding, as conditional use should not be a problem. Nord stated that perhaps they need a definition of animal boarding before proceeding. Glick asked La Shot if he had a definition. Christian noted that the issue of puppies is addressed in the code and at three or four months considered an adult dog and covered under the animal control ordinance. La Shot stated there is no definition for animal boarding in the zoning code. Nord stated they would need to create a definition for animal boarding that would say if it would include kennels. Planning & Zoning Commission Page 7 Minutes February 26, 1997 Werner-Quade stated when she talked to animal control officer there were two gray areas, one is the definition of hobbyist as opposed to the commercial venture and what constitutes a private kennel and what is actually a kennel. Werner-Quade noted she feels they should review this. Werner-Quade stated another area that was gray was Zhen how many can they have. This seemed to be up to Mr. Godek and what he seemed reasonable number for the size of the lot and the facilities available for the dogs. kNerner-Quade noted that Mr. Godek does a really good job but asked what happens if he isn't here and someone else would be put in his position. Christian asked to withdraw the motion. Glick asked if any objections to Christian withdrawing the motion. No objection noted. CHRISTIAN MOVED TO CONTINUE THE DEVELOPMENT OF A MORE CLARIFIED ANIMAL BOARDING/KENNEL LAND USE. MOTION SECONDED BY MAHURIN. Glick asked for the motion to be read. Kebschull read the motion and asked for clarification if Mr. Christian meant the Land Use Table. Christian stated that was his intent. Bryson stated he felt that this was something staff would work out. Glick stated if passed, the Commission would be asking staff to bring back information to the Commission. Christian stated he felt the Commission would continue to develop this idea adding he assumed they would all be involved in it. Mahurin stated she felt that they needed a point with and that was something that staff should develop with their expertise. Mahurin added they then would have the option to mold, change, etc. Christian stated he felt that they should decide where to put them. 1lQn-14 NORD YES MAHURIN YES CHRISTIAN YES BRYSON YES WERNER-QUADE YES GOECKE YES GLICK YES PASSED UNANIMOUS. Glick asked La Shot, based on the Commission discussion, to bring something back to the Commission. c. Proposed Amendments to KPB Chapter 5.14 and Chapter 21.18—Discussion Glick asked Bryson to speak to the amendments. Bryson noted the borough staff has proposed modifications to these two laws. Bryson stated they are basically addressing definitions, applicability under certain circumstances for the type of facilities that they deem appropriate for the habitat along the river. Bryson noted the other item is definitions for tax Planning & Zoning Commission Page 8 Minutes February 26, 1997 credit aspects of habitat protection along the river. Bryson noted that La Shot is on a committee that works with this. La Shot stated he is on the River Board and noted this is a housekeeping ordinance to take care of the loose ends since adoption. La Shot no d they aye fairly new ordinances. La Shot noted a couple items are good for the city, one i a definition of where the mouth of the river begins. Bryson stated typical would bet fish cleaning stand which by itself is deemed by most people to be innocuous. Bryson s ated presumably someone who has proposed to put up sides around this facility and F L 3 roof on it, they want to clarify what can and cannot be done for certain type facilities. son stated they want to come up with boardwalks that assist in vegetation regrowth rat ler than inhibit growth. Glick asked if the borough wanted the commission to vote and accept or just to pe 6,se the document. Bryson stated the borough's intent was to give the city time to revie comment. Bryson stated if in concurrence, a letter would be graciously accepte lick asked if they would act on it next on March 10'. Bryson stated the planning co i sion would act on it at that meeting. GOECKE MOVED TO WRITE A LETTER OF APPROVAL, NOTING THERE BE ANOTHER MEETING TO LOOK FURTHER INTO THIS ITEM. MOTION BY CHRISTIAN. Glick noted that reading through it there are several areas but only a couple items that had changes and those appeared to be for the better. Christian stated he noted that there is a segment wherein the city planning and zgning that can approve conditional uses in the city's borders adding the Commission will need to understand the intent of this. Glick noted the city would have to adopt the standards before that. Mahurin stated she agrees adding she felt for some time the City of Kenai had been remiss in protecting the river. Mahurin stated she feels they need to take a proactive stance in protecting the river adding her support. VOTE: MAHURIN YES BRYSON YES GOECKE YES GLICK YES MOTION PASSED UNANIMOUS. 9. OLD BUSINESS: a. Review of Title 14--Cabin Definitions CHRISTIAN YES WERNER-QUADE YES NORD YES Planning & Zoning Commission Minutes Page 9 February 26, 1997 Glick stated he hoped everyone had read the packet material. Glick stated the definition of cabin would stop the problem they had last year with three buildings on one lot. Werner- Quade asked Glick to clarify his statement. Glick stated on James Street wherein he was going to rent them by the day or week instead the month. Werner-Quade stated she had! been told that there would be a roof to connect the buildings. Werner-Quade noted this had .been at a P&Z meeting by Councilman Smalley. Werner-Quade asked about status. Smaliey stated he was unaware of the status. Kebschull explained the plat had been redone and there still was not enough space for four cabins. Kebschull stated he has been issued a temporary occupancy permit for three of the buildings. Kebschull noted the fourth building was being used for storage. Kebschull added he has been given 120 days to come into compliance or the temporary occupancy permits will be revoked. Kebschull noted the letter was mailed on Monday. Werner-Quade asked what he had on the property. Kebschull stated he has three rental buildings. La Shot noted they are three principle dwellings. Werner-Quade stated that according to the UBC they are too small to be dwellings. La Shot stated a habitable dwelling had to be 120 square feet. Werner-Quade stated the dimensions were 14 X 16, taking the interior figure it is 196. Discussion about whether you would measure the interior or exterior of dwelling. Glick noted the use was different than the original proposal which was to rent by the night or week. Werner-Quade stated originally it was as a four plex. Glick stated if he rents on a monthly basis that changes the definition. Werner-Quade responded that it is not an allowable use without a conditional use permit. Werner-Quade stated she was just wondering because the last she had heard there was going to be a roof to connect them adding she will continue to follow this case. Werner-Quade stated she agrees with number one except the definition for cabin rentals as presented. Goecke asked if they had eliminated a lot line on James Street. La Shot stated that was how they ended up with enough square feet to get the area for three principle dwellings. Glick clarified he has single family dwellings, three of them, that are rented by the month. Werner-Quade clarified if they were single family dwellings and not cabins. La Shot stated they are principle structures rented by the month. Werner-Quade asked if they were called cabins if they would require a CUP? Glick stated that was because they would be rented for less than a month. Werner-Quade stated she agrees with item 2 and that they should redetermine which zones would require CUP's for cabin rentals. Christian asked if they are going to take each item as individual motions or all five under one motion. Glick stated if everyone agreed with all five that would be okay; however, if there are some they disagree, perhaps they should do them one at a time. Planning & Zoning Commission Page 10 Minutes February 26, 1997 CHRISTIAN MOVED TO ACCEPT THE STAFF DEFINITION FOR CABIN RENTAL. MOTION SECONDED BY MAHURIN. CHRISTIAN YES BRYSON YES WERNER-QUADE YES GOECKE YES NORD YES MAHURIN YES GLICK YES PASSED UNANIMOUS. Goecke questioned information from Mr. Springer. Goecke stated he felt they should put some credence to what Springer is saying and in so doing number five could be eliminated. Goecke noted that reading Mr. Springer's letter brings to attention to some items in the attorney's letter that could create havoc. Goecke added that since Springer has to enforce this kind of thing, it looks like the city will have to hire someone to enforce this kind of stuff. Goecke commented he is not sure that is what the Commission wants. Goecke drew attention to the last paragraph in Mr. Springer's memo adding he felt the Commission needed to look carefully at it before they accept the information from the attorney. Mahurin stated she agrees that they not put anything about guest house which could cause problems. Mahurin stated she is comfortable with Mr. Graves' recommendations through number three. Mahurin stated she agrees that Mr. Springer's points on guest house are very important to consider. Glick drew attention to item 2. GOECKE MOVED TO ACCEPT ITEM 2 ASKING IF THE COMMISSION WANTS TO DETERMINE WHICH ZONES SHOULD BE INVOLVED. Discussion on the Land Use Table and the fact that blanks mean you can apply for CUP. Commission agreement that they need clarification on what the blanks in the table mean. Bryson stated he was rudely awakened when the former chairman told him the current interpretation and assumed it was from a council perspective. Smalley noted there are many, many court cases that Mr. Graves could reference which state if it is not spoken to it is okay. Christian stated that if when discussing the prime zone, they wanted to put a code "N" and fill in all the blanks with N's meaning not permitted. Christian stated then if they received a complaint, they could consider it. Clarification of motion on floor. Kebschull noted there was never a second. Goecke withdrew motion. Planning & Zoning Commission Page 11 Minutes February 26, 1997 CHRISTIAN MOVED THAT THE COMMISSION CREATE A NOTATION UNDER THE KEY FOR THE LAND USE TABLE, N FOR NOT PERMITTED AND THAT THEY PUT THIS N IN ALL BLANKS ON THE LAND US!: TABLE. MAHURIN SECONDED THE MOTION. Bryson stated this is a very broad subject and the sort of thing they should deal with in a work session. Bryson nosed there are a tremendous amount of areas that should be considered for CUPs and others that should not be. Bryson stated he felt they should look at them individually. Goecke stated he agrees with Bryson. Bryson stated the other aspect is that this would be interpreted as a major rezoning because it is so wide reaching. Bryson stated this is something that should be broadly opened to the public for comment. Christian asked if it would be appropriate to eliminate the second half of the motion about filling in all of the blanks but to have the "N" notation to use in the future. Mahurin noted her confusion adding that when she came on the Commission it was interpreted as being not permitted. Mahurin stated that if they have been operating for all these years that a blank means that it is not possible, that adding the N would not be a rezoning but a clarification of what they have been doing all along. Glick stated he would tend to agree with Mahurin but added he doesn't know how it would be interpreted legally. CHRISTIAN AMENDED PORTION OF MOTION THAT ELIMATES ADDING THE N TO ALL BLANKS UNTIL FURTHER DISCUSSION BUT TO STILL CREATE THE N NOTATION SO THAT INDIVIDUAL ITEMS CAN BE ADDRESSED IN THE FUTURE. Mahurin stated that in her experience with the law, past practice is something that weighs heavily. Mahurin stated that if this has been the past practice of how the board has operated, perhaps they need a legal opinion. Mahurin added that perhaps they should table it to the next meeting until they have a legal opinion. Smalley stated it has been dealt with that if it is blank, an individual then applies for CUP and it is generally approved. Smalley stated that Bryson's suggestion for a work session and having La Shot and the city attorney present would be beneficial. Smalley added that Christian's suggestion to create the N category is something for the Commission to look at. Mahurin asked why there are C's on the table if everything is open to a conditional use permit. Mahurin reiterated she would like the current interpretation clarified before doing anything else. Planning & Zoning Commission Page 12 Minutes February 26, 1997 MAHURIN MOVED TO TABLE THIS DISCUSSION UNTIL THE COMMISSION HAS AN OPINION FROM THE ATTORNEY AS TO HIS INTERPRETATION OF THE BLANKS ON THE LAND USE TABLE. GOECKE SECONDED THE MOTION. Glick noted there is no discussion on a tabling motic,n' adding this will be tabled until an opinion is received from the attorney. VOTE: BRYSON YES WERNER-QUADE YES GOECKE YES NORD YES MAHURIN YES CHRISTIAN YES GLICK YES PASSED UNANIMOUS. Glick noted the motion had passed so they would wait for the opinion and then decide if they should have a work session or where to continue from here. Goecke stated looking in the Land Use Table and gong back a few years, the city built a fire training center on property in the IL zone. Goecke noted there is no place that permits this use adding all the squares are blank. Goecke noted they had given permission for that adding this has been a flip-flop thing with interpretation of the table. Glick asked if the Commission wanted to go onto Item 3. NORD MOVED TO DELETE THE PHRASE FOR MORE THAN TWO PEOPLE FROM THE DEFINITION OF ROOM. MOTION SECONDED BY CHRISTIAN. VOTE: WERNER-QUADE YES GOECKE YES NORD YES MAHURIN YES CHRISTIAN YES BRYSON YES GLICK YES PASSED UNANIMOUS. Glick asked if the Commission wanted to do anything with Items 4 or 5. Agreement to not proceed with these items. 10. CODE ENFORCEMENT ITEMS: 11. REPORTS: a. City Council Planning & Zoning Commission Page 13 Minutes February 26, 1997 Smalley noted there is a copy of agenda in the packet. Smalley noted he was out of town when this meeting was held. Smalley stated there were ordinances that were introduced, Item H3 was setting up revenue appropriations for the AARF project. Smalley noted this has about a $10.7 million price tag. HS stated $8.9 would cane from the federal guvarnment and only about $1.8 would come from; airport revenues. Smalley noted J.:s is one of the few projects that the city can use airport funds for. Smalley noted he has copy of the packet if anyone would like to see it. Mahurin asked if there is a public hearing scheduled on a two tier salary proposal for city employees. Smalley stated he didn't know but that it had been brought up at a work session with the mayor. Smalley stated it will probably be discussed at budget time. Glick asked about them tabling the award of the contract to Mapco. La Shot stated the major concern is the inconvenience and safety problem by large equipment and fire trucks fueling there. Glick commented that the public doesn't have any problem nor the fuel trucks who deliver fuel at Mapco. Christian asked the city's intention. La Shot stated the city manager asked to table it to reconsider the matter. La Shot stated the city manager may at the next council meeting make a suggestion to retain the present fueling facility for diesel and go to Mapco for the gas. La Shot stated that with the larger equipment there is some concern if they can be fueled safely during summer busy times. b. Borough Planning Bryson noted packet information is in the packet. Bryson drew attention to the agenda. The items in A, B, and C were approved as part of the consent agenda, with exception of Item 5A2 which has to do with timber harvest. Item E, Ordinance 97-04, adding a new classification for borough owned lands to recognize historical sites was postponed due to written requests addressing concerns. Item F3, an ordinance to create a trails commission, was recommended for approval with the planning commission brought into the bureaucratic loop. Ordinance 97-15 would allow neighboring property owners and others with prior interest to purchase borough lands by matching the highest bid. Bryson noted there was a significant amount of concern and this was postponed. Bryson stated the concern was that it was undercutting the bidding process. Under special considerations H-1, was denied. Item 2 was approved. Item 2-13 was pulled from the agenda. Under the coastal management program considerations, Item 1-6, was approved. Item L-1 was postponed. The Planning Directors considerations, concerning prior use considers on borrow sites, were approved. Under director's comments, Item N-1, the Planning Director reported that a person who owns a number of lots in a subdivision had taken issue with the Planning Commission's recommendation to grant a vacation of a portion of an easement. Bryson noted it was a well in a portion of an easement. The commission vacated an area of a 2 foot radius around the well and other owners objected. Bryson stated it looked like it will result in a court case based on the ten page brief they were given from an attorney. Planning & Zoning Commission Page 14 Minutes February 26, 1997 c. Administration La shot noted the River Board meeting minutes of January 16' in the packet. Pt the February meeting the board voted to release the final new comp plan public draft for a 60 day period. La Shot noted he hasn't received the copy from the state and whyn he does he plans to provide copies to the Commission. La Shot noted the invit::+twn to the March 13" Airport Commission meeting for an informational meeting on the Airport Mast Plan. La Shot noted the plan is about 80 percent done. 12. PERSONS PRESENT NOT SCHEDULED: 13. INFORMATION ITEMS: a. Kenai River Special Management Advisory Board Minutes of 1/16/97 b. Airport Master Plan Public Information Meeting 3/13/97 at 7 p.m. 14. COMMISSION COMMENTS & QUESTIONS: Mahurin shared her experience in Washington, D.C. when it snowed while sho was there. Mahurin stated that on the t.v. they noted emergency conditions with an inch 6f snow. Mahurin stated it drew attention to the fact that it truly is relative. j Goecke noted a conversation before his last meeting with Kathy Scott on the Challenger Project. Goecke stated he was told that there had been a number of informat on items put here at city hall that were being distributed to commissions in the city. Goecke noted he doesn't know who they were given to noting he would have liked to have seer them. Goecke noted this is not a favorite project of his. Goecke noted Scott provided information on the project that swayed his thinking somewhat. Goecke asked if Kebschullcould obtain copies of the information for the Commission. Nord stated there is a Planning Commissioner's Journal if anyone would like the address. Nord noted it is $45 for a year. Nord stated this information was provided by 4iz Benson who did the training session in December. Christian thanked commission for getting involved in the kennel discussion. Werner-Quade stated she hopes that they get the Land Use Table cleared upl noting she had been confused with this process. Werner-Quade commented that this reminds her of the KPD officer who had been attempting to get his job back. Werner-Quade Stated he was given his job back since he had never been reprimanded. Werner-Quade stated she didn't want any similar surprises with the Land Use Table. Planning & Zoning Commission Page 15 Minutes February 26, 1997 15. ADJOURNMENT: Mee ing adjourned at approximately 8:35 p.m. S Respectfully submitted: .41 , Ma ilyn Kebschull Administrative Assistant Planning & Zoning Commission Page 16 Minutes February 26, 1997 HISTORIC DISTRICT BOARD February 24, 1997- 5:30 p.m. ***AGENDA*** Kenai Council Chambers Chair Dorothy Gray 1. ROLL ^ALL: 2. APPROVAL OF AGENDA: 3. APPROVAL OF MINUTES: January 20, 1997 4. PERSONS PRESENT SCHEDULED TO BE HEARD: 5. HISTORIC BOARD REVIEW: 6. NEW BUSINESS: 7. OLD BUSINESS: a. Sign Grant • Sign Text • Townsite Historic District Signs • Shk'ituk't Village sign quotes • Rotary Club 8. REPORTS: 9. INFORMATION: a. City Council Agenda —January 15, 1997 and February 5, 1997 b. Letter from OHA dated 1 /31 /97 c. Letter to Kim Booth dated 2/6/97 d. Letter to James C. Bookey, III dated January 22, 1997 e. Historic District Board Roster f. Price seminar information g. "The Alaska Association for Historic Preservation" h. "The Alliance Review" 10. BOARD QUESTIONS AND COMMENTS: 11. ADJOURNMENT: HISTORIC DISTRICT BOARD February 24, 1997- 5.30 p.ri. ***MINUTES*,L * 1. ROLL CALL: Members present: Dorothy Gray, Ethel Clausen, Michael Huhndorf, Bill Kluge, Gloria Wik, Rebecca Godek (arrived at 5:40 p.m.) Members absent: Alan Boraas Others present: City Engineer Jack La Shot, Administrative Assistant Marilyn Kebschull 2. APPROVAL OF AGENDA: Chairperson Gray asked for changes or additions to agenda. None noted. AGENDA APPROVED BY UNANIMOUS CONSENT. 3. APPROVAL OF MINUTES: January 20, 1997 Chairperson Gray asked for changes or additions to the minutes. None noted. MINUTES APPROVED BY UNANIMOUS CONSENT. 4. PERSONS PRESENT SCHEDULED TO BE HEARD: 5. HISTORIC BOARD REVIEW: 6. NEW BUSINESS: 7. OLD BUSINESS: a. Sign Grant • Sign Text • Townsite Historic District Signs WIK MOVED TO GO INTO WORK SESSION TO DISCUSS SIGN TEXT. HUHNDORF SECONDED THE MOTION. APPROVED BY UNANIMOUS CONSENT. Gray noted the work session is to discuss sign text for the TSH signs. Group discussion on the sign texts. Final text for each of the signs as follows: SHOWALTER HOUSE c. 1935 Constructed by John Berg. Mrs. Berg operated the local post office from their home. Ward Showalter bought the home in 1947. The house is still owned by the Showalter family. HERMANSEN/MILLER HOUSE c. 1916 The oldest frame building in Kenai. The Hermansens lived here until 1939. Sold in 1951 to the Millers. It housed a grocery, diner, ice cream parlor, post office, Catholic Church mass, and Kenai's first hospital/clinic. OSKOLKOF/DOLCHOK HOUSE 1918 Built from hand-hewn logs by farmer John Oskolkof. In 1945 became the Dolchok home. One of the few remaining buildings that illustrates both the early community building era and Kenaitze subsistence. Note: Mr. Carpenter, current owner of the Oskolkof/Dolchok House was in attendance at the meeting and participated in selecting the text for this sign. WILSON HOUSE c. 1912 This squared log home of the Wilson family was originally a post office and restaurant. Paul Wilson, Sr„ operated the first regular mail service from Kenai to Seward by dog sled. CIVIC LEAGUE BUILDING 1954 This frame building served as community center, city hall, public library, courthouse, school, and church during Kenai's growth after W.W.II. Townsite Historic District Board Page 2 Minutes February 24, 1997 KENAI FIREHALWAIL c. 1955 The firehall was built using mostly volunteer labor. In 1957 a jail was added. Leased in 1973 to the Kenai Arts Council and renovated in 1980 into a gallery/workshop. KENAI COMMERCIAL BUILDING Believed to be an Alaska Packers Cannery building barged from Kasilof and located on this site in 1948 to establish the Kenai Commercial Company Store, the only store selling groceries and dry goods for many years. KENAI BIBLE CHAPEL 1940 Site of Kenai's first Protestant Church. Construction of the present building began in 1952. The cross, in memorial to Jimmy Petersen, is a fishermen's beacon. Note: Members of Kenai Bible Chapel attended the meeting and participated in selecting the text for this sign. PHARMACY/JAHRIG ELECTRIC BUILDING Originally a Northwest Cannery property, winched up the bluff in the late 40's. pharmacy and first theater. this building was barged up the inlet and In the early 50's, it housed Kenai's first DOLCHOK/JULIUSSEN CABIN c. 1922 Constructed by Mike Dolchok, Sr. of hand-hewn logs. Three generations of the Dolchok family were born and raised in the cabin. In the 1950's, it was moved to this site by the Juliussen family. Townsite Historic District Board Page 3 Minutes February 24, 1997 STEVE KING HOUSE c. 1950 Originally constructed by Steve King, a local carpenter, on his homestead located in North Kenai and later moved to this site in early 1960's. KENAI NATIONAL MOOSE RANGE HEADQUARTERS PRIMARY QUARTERS c. 1935 This residence house all managers of the Moose Range and is associated with early federal wildlife conservation programs. KENAI NATIONAL MOOSE RANGE HEADQUARTERS QUARTERS c. 1949 This building housed employees of the Headquarters and is associated with important federal wildlife conservation programs in Alaska. KENAI NATIONAL MOOSE RANGE HEADQUARTERS OFFICE c. 1949 Initially this quonset but served as the power plant for the complex until Kenai Power Company was formed. It later served as the office for the Headquarters. KENAI NATIONAL MOOSE RANGE HEADQUARTERS SHOP/GARAGE c. 1957 This building is covered with shiplap siding and cornerboards. It has ten bays each with 9 foot wide overhead doors. Townsite Historic District Board Page 4 Minutes February 24, 1997 KENAI NATIONAL MOOSE RANGE HEADQUARTERS BOAT SHED c. 1950 This structure housed U.S. Fish & Wildlife boats and marine gear. FORT KENAY c. 1967 Built to celebrate the Alaska Centennial on the site of the original Russian school house. This property is a representation of the historic Fort Kenay (1869). MILLER CABIN c. 1910 Originally built by Emil Ness in Kasilof, the logs were numbered, dismantled, and barged to Kenai in 1930. Kenaitze Chief George Miller occupied this house in the 1940's. ARNESS CABIN 1925 Built on the bluff, Peggy Arness operated Kenai's first kindergarten from this cabin. THREE SCANDINAVIAN'S CABIN One of the few remaining log cabins constructed on the Kenai Peninsula during the 20" century. CABIN #3 Origin unknown, however representative of early building era. GENERAL DISCUSSION: Kebschull asked the Board if after she prepared the text from tonight's meeting if board members could be assigned to proof the final text. Kebschull advised this could be a last check before the information is submitted to OHA. Kebschull noted Townsite Historic District Board Page 5 Minutes February 24, 1997 that the text must be sent to Anchorage by the end of the week. Gray and Godek agreed to perform the final check. Kebschull brought the group up-to-date on the Shk'ituk't Village sign quote and the spreadsheet information that was provided in the packet. Kebschull explained that she had contacted the Kenai National Moose Range and had received information on ^they sign companies they had used in the past for fiberglass signage. Kebschtll noted that the individual she spoke with thought the two quotes the Board had received were very reasonable based on past signs they had purchased. Kebschull reported that she had contacted several other companies most of whom do not construct fiberglass signs. Two companies that she did talk to noted that they bid the signs but the signs are actually constructed by Pannier Graphics who developed the fiberglass sign process. Kebschull stated that for example the one company quoted $3,000 per panel for a 34" X 96" panel which would be $9,000 in comparison to the two quotes they had received that were about one-third that amount. Kebschull offered her opinion that the Board may want to wait until next month to make a final decision noting that at one time they had talked about possibly reducing the panel size. Kebschull added that they will not be receiving additional quotes but if they decide to make the sign smaller that would affect the price. As for a recommendation for the quote, Kebschull noted they may want to consider Pannier since it appears they are the leader in this type of sign construction. Kebschull added that Kluge could probably make a recommendation for this noting he had used the company in the past. Kluge suggested that the Board attempt to get extra copies of the artwork when they have the signs made. This would be less expensive than to do so in the future. Kebschull noted that the Pannier quote did not include extra copies but she could contact them and get prices for additional copies before next month's meeting. In addition, Kebschull stated she could contact Bunny Swan and ask about possibly reducing the size of the panels and how that would affect the artwork. Godek offered to contact Swan before next month's meeting. It was agreed to postpone a decision on the Shk'ituk't sign until next month's meeting. HUHNDORF MOVED TO RECONVENE. GODEK SECONDED THE MOTION. UNANIMOUS. WORK SESSION ENDED AT APPROXIMATELY 7:40 P.M. Gray noted they had completed of the text for the Rotary Club signs and asked if someone would like to make a motion to accept the text. GODEK MOVED TO ACCEPT TEXT AS DECIDED IN THE WORK SESSION. HUHNDORF SECONDED THE MOTION. Townsite Historic District Board Page 6 Minutes February 24, 1997 Gray asked for discussion on the motion. Huhndorf noted he would like to see more information Fort Kenay but noted given the vagueness of information they had access to, he would agree with the information provided. Gray noted they would need to clarify the information on the location of t.ie original Fort Kenay. UNANIMOUS. • Shk'ituk't Village sign quote:; Gray asked for wishes of commission. Huhndorf stated he would like to wait until the next meeting. Kebschull agreed to check the price for additional panels. Godek will contact Bunny Swan about reducing the sign size. • Rotary Club Kluge noted he had attempted to get someone to perform the router work for them and the individual he contacted could not do the large scale the signs require. Kluge stated he feels Rotary will be ready to roll as soon as the Board receives the blessings from OHA. Gray stated she felt the Board should contact the Clarion to take pictures of Rotary constructing the signs. Kebschull asked if anyone had checked into obtaining the City of Kenai emblems. Kebschull noted if they aren't able to obtain them that they may need to go back to OHA and have them removed from the designs. Huhndorf asked if there was any chance of putting tribal seals put on houses of some of the people who would like to identify with the tribe? Huhndorf noted this was strictly his idea adding if there was a tribal affiliation, they could have the seals. Kluge commented he felt that as long as they could get the seals to them in a timely manner and stick to a consistent size. Kebschull stated she needed to clarify if Huhndorf was talking about putting the seals on the signs or the houses? Huhndorf stated on the signs. Kebschull noted that if they change the design, they will have to go back to OHA for approval adding she didn't think they should redesign the signs. Kebschull noted that once the grant is complete that they may have the option to add to the signs. 8. REPORTS: Gray reported to the Board the some additional money had been awarded to the city on the survey grant, adding it was to Kebschull's credit, for submitting all the Townsite Historic District Board Page 7 Minutes February 24, 1997 necessary reports in on time. Gray stated the state reimbursed the city an additional amount of money because of the completeness of the survey information. Gray commented that she wondered if they needed to order some extra signs if they could ask council tr, use some of that money to order the signs. Kebschull advised the Board that the reimbursement amounted to approximately $1,700. This additional reimbursement was awarded the city because some recipients did not complete- their grants so they looked at the grants that were completed in a timely manner and following the grant requirements. Based on this, Kenai was offered the additional reimbursement. Kebschull advised this was accomplished just by agreeing to accept the funds and they sent a revised scope to the city to sign. KLUGE MOVED TO DRAFT A LETTER TO COUNCIL INFORMING THEM OF THE ADDITIONAL FUNDS AND ASK THAT THE MONEYS BE EARMARKED FOR BOARD USE IN THESE PROJECTS. MOTION DIED FOR LACK OF SECOND. Gray suggested writing a letter to Council complementing Kebschull's efforts and making a note that these moneys were received. Kebschull explained to the Board that the money is not extra money but instead is reimbursing the city for moneys already spent. Kebschull added that if they chose to write a letter, not necessarily for her benefit, but to bring it to the Council's attention that they had received the additional funds this may be helpful for further funding requests. Kluge stated he felt they should ask that those funds be earmarked for their work. Kluge stated the city had budgeted the money and it should be available. Kebschull explained that the money was already spent and that it was last year's budget. In addition, she explained how grants are funded by council and that they are not necessarily budgeted items. 9. INFORMATION: a. City Council Agenda --January 15, 1997 and February 5, 1997 b. Letter from OHA dated 1 /31 /97 c. Letter to Kim Booth dated 2/6/97 d. Letter to James C. Bookey, III dated January 22, 1997 e. Historic District Board Roster f. Price seminar information g. "The Alaska Association for Historic Preservation" h. "The Alliance Review" Townsite Historic District Board Page 8 Minutes February 24, 1997 10. BOARD QUESTIONS AND COMMENTS: Huhndorf reported there is a seminar by the American Association of State and Local History in San Jose, March 19 to the 22"d. Huhndorf noted the hotel is $100 a nigh and airfare is $295 round trip. Huhndorf noted he has details if anyone interested. Huhndorf noted he will be attending the seminar. Gray stated the next meeting will be on March 171h. Kebschull advised she will be on vacation. Godek noted she has another meeting the same 1 sight but wiil be at the Townsite meeting for a time. Gray stated that at the next meeting they could finalize the Shk'ituk't sign. Then, possibly go into a work session and split up into teams to finalize the Preservation Plan. Gray stated she felt they had three -fourths done and that it needed to be put together in final form. Godek asked if it would be okay if she was not at that portion of the meeting. Gray stated as long as they had a quorum. Gray that in the next packet there will be a copy of KPB Ordinance 97-04 which adds a classification for historical land use. Gray reported at the next meeting she will be bringing the site plan for the rectory restoration project for the board's approval. Godek stated she will be present at the next meeting on March 17" but will then need to leave during work session. ADJOURNMENT: Meeting adjourned at approximately 8 p.m. Respectfully submitted: Mdrilyn Kebschull Administrative Assistant Townsite Historic District Board Page 9 Minutes February 24, 1997 P �� Alaska Challenger Center for Space Science & Technology Date: February 24, 1997 To: Alaska Challenger Board Fr: Kathy Scott Subj: Project Briefing Many of you saw the Peninsula Clarion newspaper article about Challenger based on the interview with Pam Peterson and Ginger Steffy . It was positive and upbeat. The great news is that Editor Lori Evans will join us in "Experience Challenger" March 15. We are looking for firm commitments and confirmations for the "Comet Rendezvous" mission. It is time to secure your seat on the mission if you have not already done so. Lt. Governor Fran Ulmer has confirmed space along with eleven teachers from all over Alaska and Kenai City council members Hal Smalley, Duane Bannock & John Williams (also board members). Others have expressed interest. Pam Peterson spoke so highly of the project to all she encountered in Kenai, Soldotna and Seward. Pam said she uses our feasibility work as an example to other locations interested in building a Challenger Center. At the board meeting next month we will discuss issues related to changes from our original plan about the "smart classroom" and size of the capital campaign. Decisions on interim management of the project are also slated. Please plan to attend on Tuesday, March 11 @ 4 pm. Duane Bannock & Rene Azzara made a presentation to the Soldotna Rotary last Thursday. The team will be at Kenai Rotary today. Ginger, John, Pam & Don Gilman all spoke at the Board of Governors luncheon. Everyone was receptive to the project. FAA Regional Director Andy BlIlick, Don Gilman, Alaska Village Initiatives Ann Campbell and Robert Gottstein have agreed to participate on the Board. Also interested are AT&T Wireless, PTI, National Bank of Alaska and the Commissioner of Education Shirley Holloway . John Williams & Pat Ladner serve as board liaisons to the Governors. The first Board of Governor's meeting has been slated for Anchorage on Wednesday, March 19 @ 10 am Committee meetings this week: Communications, Thursday, February 27 @ 7 pra, K. Scott's Office, Salamatof Building. Agenda will include: Internet site home page, logo, stationary & brochure design, public presentations. As always, all board members are welcome to attend any committee meeting. AGENDA RENAI CITY COUNCIL - REGULAR MZETING FEBRUARY 19, 1997 7:00 P.!:. RENAI CITY COUNCIL CHAMBERS http://www.Kenai.not/city 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 PIIBLIC COMMENT (10 Minutes) C. PIIBLIC HEARINGS 1. Ordinance No. 1734-97 - Increasing Estimated Revenues and Appropriations by $1,445 in the General Fund for the Women's Basketball League. 2. Resolution No. 97-3 - Transferring $2,500 in the General Fund for a City-wide Computer Network Design Study. 3. Resolution No. 97-6 - Transferring $1,143.14 in the General Fund for Purchase and Installation of a Water Heater in the City Greenhouse. 4. Resolution No. 97-7 - Supporting Public Ownership and the Present Management Structure of the Alaska Railroad. 5. Resolution No. 97-8 - Awarding a Contract for Fuel Service to Doyle's Fuel Service, Inc. at the Unit Prices Listed Below for Furnishing and Delivering Fuel to the City Dock and City Generator Tanks. Page 1 of 1 6. Resolution No. 97-9 - Awarding a Contract for Fuel Service to Mapco Express, Inc. at the Unit Prices Listed Below for Furnishing and Dispensing Fuel at Their Service Station Located Bridge Access Rod and the Kenai Spur Highway. 7. *1996/97 Liquor License Continuance Pi:otest/WITHDRAWAL - The Upper Deck (delinquencies noted hAve been resolved). 8. *1997/98 Liquor License Renewal - Peninsula Moose Lodge - Beverage Dispensary. 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 a. Beautification Committee b. Historic District Board C. Challenger Board d. Kenai Visitors & Convention Bureau Board e. Alaska Municipal League Report E. MINUTES 1. *Regular Meeting of February 5, 1997. F. CORRESPONDENCE G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance No. 1735-97 - Increasing Estimated Revenues and Appropriations by $250,000 in the Capital Project Fund Entitled "Kenai ARFF Project." 4. Approval - Renewal of Department of Health & Social Services Agreement. Page 2 of 3 5. Approval - Agreement for Services/Vintage Pointe Manor. 6. Discussion - Confession of Judgment/Katmai Motel, Restaurant & Lounge. 7. Discussion - Sublease/Lot 3, Block 1, GAA, from James A. Munson to Public Radio Station KBBI/KDLL. 8. Discussion - ADEC Low Interest Loans (Drinking Water and Alaska Clean Water Funds). EXECUTIVE SESSION - Inlet Woods Litigation. 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 1. Citizens (five minutes) 2. Council R. ADJOURNMENT Page 3 of 3 KENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 19, 1997 ?:00 P.M. RENAL CITY COUNCIL CHAMBERS http://www.Kenai.not/city VICE :aAYOR RAYMOND MEASLES, PRESIDING ITEM A: CALL TO ORDER Vice Mayor Measles called the meeting to order at approximately 7:03 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDGE OF ALLEGIANCE Vice Mayor Measles led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Measles, Bannock, Bookey, Swarner and Moore. Absent was: Williams and Smalley. A-5. AGENDA APPROVAL Vice Mayor Measles requested the following change to the agenda: ADD TO: C-4, Additional Information in regard to Resolution No. 97-7 - Supporting Public Ownership and the Present Management Structure of the Alaska Railroad. There were no other changes. Measles declared the agenda to be approved as amended. A-6. CONSENT AGENDA Vice Mayor Measles noted there were no changes to the consent agenda and declared it approved as submitted. ITEM B: SCHEDULED PUBLIC COMMENT None. ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1734-97 - Increasing Estimated Revenues and Appropriations by $1,445 in the General Fund for the Women's Basketball League. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 2 MOTION: Councilwoman Swarner MOVED for adoption of Ordinance No. 1734-97 and Councilman Bannock SECONDED the motion. There were no public or council comments. VOTE: Measles: Yes Bannock: Yes Smalley: Absent Williams: Absent Bookey: Yes Swarner: Yes Moore: Yes MOTION PASSED UNANIMOUSLY. C-2. Resolution No. 97-3 - Transferring $2,500 in the General Fund for a City-wide Computer Network Design Study. MOTION: Councilman Bookey MOVED for adoption of Resolution No. 97-3 and Councilman Moore SECONDED the motion. There were no public comments. Councilman Moore asked what administration anticipated to acquire from the document. City Manager Ross answered, the document was to address the needs with an approximate cost for installing a network system in City Hall and phasing in other city buildings over the next few years. The document would also investigate a records management system for the city as well and discuss system options (optical disk or micrographics). VOTE: There were no objections. 80 ORDERED. C-3. Resolution No. 97-6 - Transferring $1,143.14 in the General Fund for Purchase and Installation of a Water Heater in the City Greenhouse. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 97-6 and requested UNANIMOUS CONSENT. Councilman Bookey SECONDED the motion. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE There were no public commt:trts. It was clarified the fund: were being transferred from one account to the appropriate account for the purchase. VOTE: There were no objections. SO ORDERED. C-4. Resolution No. 97-7 - Supporting Public Ownership and the Present Management Structure of the Alaska Railroad. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 97-7 and Councilman Moore SECONDED the motion. Vice Mayor Measles introduced Governor Sheffield and welcomed him to the meeting. Governor Sheffield gave a brief summary of the history of the Alaska Railroad, stating it was built in 1923 and the State bought it in 1984 and assumed operation in 1985. The purchase agreement included paying $34 million for the track, rolling stock and 38,000 acres of land. Since then, the Railroad has neither requested nor received any additional state money outside of the 1984 agreement. Sheffield added, the Railroad, in 12 years of state ownership, earned a profit nine times; is self-sustaining; is accountable to the public through the Legislature/Governor; and, is run by railroad managers. Their employees are not state employees, do not receive state benefits, or are a part of the state retirement system. Sheffield explained the Legislature was now wanting to give away half of the Railroad's .land which would cripple their operation, their ability to fund their own capital projects, and lose the flexibility to meet their customer's changing needs. Sheffield requested council's support. Councilman Bannock noted it appeared there were two matters: One, the State was taking a more active interest in the Railroad; and, two selling it and privatizing the operation. Sheffield responded, it was the Legislature's intent to prepare the Railroad for privatization by undermining its financial stability and forcing the Railroad to request funds from the Legislature. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 4 He added, there would be concern that by privatizing the Railroad, problems with the Federal government would arise because the deep -water ports may no longer be served. VOTE: There were no objections. 80 ORDERED. Measles requested a copy of the resolution be forwarded to the members of the State Legislature and Railroad. C-5. Resolution No. 97-8 - Awarding a Contract for Fuel Service to Doyle's Fuel Service, Inc. at the Unit Prices Listed Below for Furnishing and Delivering Fuel to the City Dock and City Generator Tanks. MOTION: Councilman Bookey MOVED for approval of Resolution No. 97-8 and Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections. 80 ORDERED. C-6. Resolution No. 97-9 - Awarding a Contract for Fuel Service to Mapco Express, Inc. at the Unit Prices Listed Below for Furnishing and Dispensing Fuel at Their Service Station Located Bridge Access Road and the Kenai Spur Highway. MOTION: Councilwoman Swarner MOVED for approval of Resolution No. 97-9 and Councilman Moore SECONDED the motion. There were no public or council comments. City Manager Ross requested council to table action on the resolution as there were serious concerns about ingress and egress to the station for large pieces of equipment. He added, he wanted to have discussions with Mapco personnel prior to action and to compile possible alternatives for council consideration. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 5 MOTION TO TABLE: Councilwoman Swarner MOVED to table action on Resolution No. 97-9 until the March 5, 1997 council meeting. Councilman Bookey SECONDED the motion. VOTE ON MOTION TO TABLE: Measles: Yes Bannock: No Smalley: Absent Williams: Absent Bookey: Yes Swarner: Yes Moore: Yes irC614te I, 4X44:4-117 C-7. 1996/97 Liquor License Continuance Protest/WITHDRAWAL - The Upper Deck (delinquencies noted have been resolved). Approved by consent agenda. C-6. 1997/98 Liquor License Renewal - Peninsula Moose Lodge - Beverage Dispensary. Approved by consent agenda. ITEM D: COMMISSION/COMMITTEE REPORTS D-1. Council on Aging Councilwoman Swarner reported the minutes of the last meeting were included in the packet. She also announced those interested could get a copy of the survey report from Director Porter. She noted the report included both negative and positive comments. D-2. Airport Commission Airport Manager Ernst reported the Commission met on Thursday, February 13. The minutes of that meeting would be included in the next packet. Ernst stated most of the Commission's discussions were about the car rental agency space remodeling. The car rental agencies will be making recommendations to the Commission (with dollar amounts for the remodeling of the area) and the Commission will be reporting back to council with their recommendations. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 6 Councilman Measles noted the memorandum included in the packet which invited council to attend the 3/13 meeting to hear a report in regard to the Master Plan. D-3. Harbor Commission Councilman Bookey reported the minutes of the meeting were included in the packet. The majority of discussion was about the boating facility budget, i.e. dock and crane leases and possibility of leasing ground area for staging boats. Bookey added, he invited the Commission members to attend budget hearings. Bookey noted the Commission's request to change their next meeting date from March 10 to March 3. There were no objections by Council. D-4. Library Commission Councilman Moore reported the next meeting was scheduled for March 4. D-5. Parks & Recreation Commission Parks & Recreation Director Frates reported the meeting was held at the Teen Center due to discussions held in regard to the possibility of developing a skateboard park. Frates added, there were a number of students and parents in attendance. He added, the development of the park would be over the next three to five years. Frates also reported the Commission approved the use of the Center for the KCHS After -Graduation party and waiver of the use fee. D-6. Planning & Zoning Commission Vice Mayor Measles noted the minutes of the last meeting were included in the packet. City Engineer La Shot also reported there were no agenda items and the meeting was short. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee Councilwoman Swarner reported the minutes of the meeting were included in the packet. She added, the Committee chose the theme KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 7 "Beautifying Our Highways and Byways" for their summer efforts. She also reported the banners were almost finished and because there had been several contributions, cost to the city wouldn't be as much as anticipated. D-7b. Historic District Board Councilman Moore reported the next meeting was scheduled for February 24. D-7c. Challenger Board Councilman Bannock reported Pam Peterson from the National Challenger Board visited Kenai and was asked how she thought Kenai was progressing. She stated she was pleased with the accomplishments and that she would be taking its business plan back to Virginia to use as an example. Bannock also reported K. Scott and J. Williams were in Anchorage last week talking with people interested in becoming a member of the Board of Governors. They are looking for eight to ten professional people who would be involved in fund raising efforts. Bannock added he and Councilman Smalley would be attending the "Challenger Experience" in March. Lt. Governor Ulmer would also be attending. D-7d. Kenai Visitors & Convention Bureau Board Councilman Bookey reported the next meeting was scheduled for Monday, February 24 at 8:30 a.m. D-7e. Alaska Municipal League Report Councilwoman Swarner requested council and administration to contact her with any concerns about bills relating to economic development and land use. Her next teleconference with the Legislative Committee would be held on February 25. ITEM E: XNIITES E-1. Regular Meeting of February S. 1997. Approved by consent agenda. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 8 ITEM F: CORRESPONDENCE None. ITEM G: OLD BIISINESS None. ITEM H: NEW BIISINESS Bills to be Paid, Bills to be Ratified MOTION: Councilman Bookey MOVED to pay the bills and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. H-2. Purchase Orders Exceeding $2,500 Vice Mayor Measles noted there were no purchase orders for approval. He added, he believed it was the first time this had happened in his tenure on the council. H-3. Ordinance No. 1735-97 - Increasing Estimated Revenues and Appropriations by $250,000 in the Capital Project Fund Entitled "Kenai ARFF Project." Introduced by consent agenda. H-4. Approval - Renewal of Department of Health & Social Services Agreement. MOTION: Councilwoman Swarner MOVED to approve the City's entering into a new agreement with the Department of Health & Social Services for the period 2/l/97 through January 31, 1998 at the current rental rate. Councilman Bookey SECONDED the motion. Attorney Graves noted this was the same agreement as in the past. The Health Center was looking for new space but wanted to renew this agreement while looking. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 9 VOTE: There were no objections. 80 ORDERED. H-5. Approval - Agreement for Services/Vintage Pointe Manor. MOTION: Councilwoman Swarner MOVED to accept the change in the Agreement for Services with the Lees. Councilman Bannock SECONDED the motion and Councilwoman Swarner requested UNANIMOUS CONSENT. Attorney Graves reported the Lees had requested to change the agreement to reflect their partnership name, however the individuals would remain jointly liable. Graves added, administration had no objections. VOTE: Council had no objections. 80 ORDERED. H-6. Discussion - Confession of Judgment/Katmai Motel, Restaurant & Lounge. Attorney Graves explained Mr. Singree had requested to enter into a Confession of Judgment similar to one approved by council last year. Swarner asked what was owed in last year. Singree answered approximately $4,000, close to the same amount the new judgment would be for. Bookey stated he agreed to the judgment last year however, he didn't believe it was the place of the council to be in a lending business. He stated he would not support a similar request next year if it comes before them. Singree explained the term of payment in the last judgment was a six-month progressive pro -rated plan. As he paid the city the current payment, he also made a back payment. He added, he would like the payment plan the same this year, prorated if possible, but if it was necessary to start in April with full payment in arrears and a current payment, he believed they would be solvent and able to do a double payment. He added, it was necessary for him to have the liquor license to be operational. The last judgment was based on a six-month program and they had KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 10 paid it by the end of the summer. Graves added, they made progressive payments the last time, as it was easier to pay it off in the summer. MOTION: Councilman Bannock MOVED to approve the request for Confession of Judgment and with it, the protest against the liquor license be withdrawn subject to Singree entering into the judgment. Councilman Bookey SECONDED the motion. Councilman Moore requested Mr. Singree be invited to the economic assembly in April. VOTE: There were no objections. SO ORDERED. H-7. Discussion - Sublease/Lot 3, Block 1, GAA, from James A. Munson to Public Radio Station KBBI/KDLL. Graves reported the sublease from Munson to the Public Radio Station was subject to approval by FAA. Mr. Munson was offering the space free of charge to the radio station. Administrative Assistant Howard had contacted the FAA but had not yet received a response. Swarner questioned whether the radio station would be considered airport related. Graves stated he didn't know if it could be said it was airport related. Airport Manager Ernst reported he had a conversation with Patty Sullivan of the FAA and she had some reservations about the request. He mentioned to her that FAA had allowed temporary use of facilities up to five years in the past. She was not aware of that. She would be checking that and if the radio frequency would be a problem for the airport. Swarner asked if this would be a long-term lease. Dave Hammock from KDLL answered Munson had offered the use of the building. They would be doing a modest amount of leasehold modifications. They don't believe it would be a long-term home base for the station. Hammock added, he had also talked with Sullivan. Their transmitter would allow a studio link and would require FAA approval. HEA has offered a free telephone poll to put their antenna on to carry the radio link. The lease would allow both Munson and KDLL to give a notice without cause if there is a higher demand for the building. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 11 MOTION: Councilman Bannock MOVED to approve the sublease of Lot 3, Block 1, GAA from James A. Munson to Public Radio Station KBBI/KDLL pending FAA approval. Councilman Bookey SECONDED the motion. Councilwoman Swarner requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. H-8. Discussion - ADEC Low Interest Loans (Drinking Water and Alaska Clean Water Funds). City Manager Ross noted the loans were brought to his attention by Public Works Director Kornelis. If the City applies for the loans, it would not obligate the council but to enter into the loan, would require a vote of the people. Through applying for the loans, the city might acquire ADEC funding points. Council could later decide whether to go to a vote. Ross advised, the due date for the loans was February 28. Kornelis added, the projects to be listed for the loans would be identical to those applied for for ADEC funds. The city could request 100% or 50% matches. Loan interest rates were now at 4.1% and have been as low as 3.74%. The interest rate would be fixed at the time the loan is approved. He added, the city had never received a loan like this before. He advised, the Drinking Water Fund loan was brand new. Also these are federal loans administered by ADEC. Vice Mayor Measles asked if the match would come out of what would be the grant funds. Kornelis answered, it was his understanding the loan funds would be matched by the Governor and Legislature and separate from the ADEC regular funding. Moore asked if applying for the loans would hurt the city's chance to receive grant funds. Kornelis stated, through his discussions with DEC, he didn't think so. Also, the letter stated the city would not incur any obligation by responding. Bookey stated he thought the city should apply and then leave it to administration as to whether to follow through in the future. Measles asked if council wanted to direct administration to go ahead with the application at 100%? Council concurred. EXECUTIVE SESSION - Inlet Woods Litigation. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 12 MOTION: Councilman Bookey MOVED to convene in an executive session of the council of the City of Kenai concerning matters recognized as attorney/client confidentiality, communication privileges and for the reason of strategy discussions for the Inlet Woods litigation. Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. Vice Mayor Measles requested Attorney Graves, City Manager Ross and Finance Director Larry Semmens attend the session. EXECUTIVE SESSION BEGAN: 7:51 P.M. RETURN TO ORDER: 6:36 P.M. Councilwoman Swarner reported during the executive session, council discussed the Inlet Woods litigation with the Finance Director, City Attorney, and City Manager. They instructed the administration to proceed as directed. ITEM I: ADMINISTRATION REPORTS I-1. Mayor Vice Mayor referred to the letters included under I-1 in the packet. One discussed proposed DEC plan to transfer some of their functions to local governments. The second letter discussed the proposed taxation on tourism. I-2. City Manager a. Kenai Visitors & Cultural Center - Ross reported he had received a letter from the KVCC requesting to meet with council about budget matters. Ross stated he would advise them of the budget date at which the KVCC budget would be discussed. b. Peninsula Coalition Meeting - Ross reported he attended the Coalition meeting held today, along with Finance Director Semmens. Of several issues discussed, he was very concerned with the proposed property tax revisions. The matter would be before the Assembly in the near future. They are hoping to pass the ordinance by April 1 in order to meet the deadline for vehicle taxation through DMV. There were eight different scenarios presented at the meeting. Ross added, the scenarios all designed a way to redistribute tax load on motor vehicles from addressing inequities they see in commercial boats and airplanes. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 13 C. Sales Tau Cap - Ross reported he would include for discussion on the next council agenda the Borough's ordinance (which has been introduced) to change the sales tax cap from $500 to $1,000. Both the Assembly's ordinance and a proposed resolution for conncil's consideration would be included in the March 5 packet. Councilman Bannock stated he spoke with an Assemblymember in regard to the proposed personal property tax revisions. Bannock stated, it was his opinion there were two separate issues: automobile registration tax and the personal property tax on boats and airplanes. He added, he believed the Borough was dead wrong and it was nothing more than a cost shifting from one group of a few to another group of many. Ross agreed and added, he thought everyone was acknowledging that and in attempting to address what they saw as inequities (pleasure items), it was expanded and now the burden was being shifted onto the automobile owner. Ross added, the plans that had been presented to them, he did not believe could be put into a final draft for the time frame in which they want to do it. Additionally, the whole property tax issue is at the State Supreme Court for a decision and he felt the Borough was very premature in changing the personal property tax ordinance until the decision is made by the court. Ross reported the next Coalition meeting would be held on March 19. I-3. Attorney No report. I-4. City Clerk Reminded council of the work session set for March 6 at 7:00 p.m. in regard to the city manager search. I-5. Finance Director No report. I-6. Public Works Director No report. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE, 14 I-7. Airport Manager Ernst reported he had received a call from FAA regarding the taxiway extension. They had estimated the 1997 allocation of funds at $500,000. The entitlements came to $714,000 and FAA wanted to change the application to that amount because of th@ ticket tax delays for discretionary money. Ernst added, any discretionary fund projects could also be delayed. They had estimated $377,000 for discretionary funds. They feel it will be a doable project. Ernst reported he told FAA to go ahead with the change as the entitlement funds were not earmarked for any other use. Councilman Moore asked what the status was on the $3.00 landing tax in Anchorage. Ernst answered, he had not heard anything new, but would investigate the matter. ITEM J: DISCUSSION J-1. Citizens None. J-2. Council Bookey - No report. Srarner - Reported she had attended a dinner with area physicians in regard to the hospital. She stated, she thought the council should take more interest in the medical community. She also reported she planned to attend the meeting in regard to the Community Health Center (information included in the packet). Moore - Referred to the letter from Fish & Game which was included as Information No. 2. Kornelis stated it looked like there wouldn't be any change for now. He added, the city sent letters to the property owners, but received no responses. Moore suggested, for lack of any response from private property owners, they should consider it a go ahead. Ross stated, once the grant was closed the situation could be revisited. Kornelis noted, the grant had to be closed in May, however, he believed it would be completed in March. Bannock - Referred to paragraph 3 of the Fish & Game letter wherein the writer, Kuwada, stated he had visited the area and saw only two vehicles using the turnaround. Kuwada also stated, he believed the design (of the turnaround) did accommodate small KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 19, 1997 PAGE 15 vehicles and an expansion into the wetlands would not be justified. Bannock suggested a response be written to Kuwada with which photographs of the area during peak fishing be sent along. Bannock requested council permission to travel to Seattle in March to attend the "Experience Challenger" program. Council had no objections. Measles - No report. ITEM K: ADJOURNMENT The meeting adjourned at approximately 8:52 p.m. Minutes transcribed and submitted by: Carol L. Freas, City Clerk RECEIVE FEB 2 1 ig - KENAI CITY UtHK; Re Kenai City Council Members, February 21. 1997 The enclosed map shows my building encroachment and a possible solution. After being discused with Robert C. Springer, the building inspector for Kenai, it was determined that this will meet the fire coders. The land swap which I propose is an equal square footage swap of property. I have been advised by Jim Lawyer at the Borough, that the river front property is worth from 2 to 3 times as much as road front property, but I feel an equal square footage swap should satisfy all concerns with park property deed restrictions. Sincerely, _/"Chris Garcia Z O If Y O w A W U p cQ a d U ao Q J ► (0L'M M„00SO.00N) to ^\\ X O ir O < N O Q. p <� 00 Z l w � 1 A:. �2' I O rn =- L •tpz w �a C:) L� U w Z W O J n` �--� C C� ~R � d W C..7... az ► o CA > W U it N O O zr W �woeo ir!Z2uoea o y�.0 LAzmUA 3 = ^ (N00'03'00"W 313.90 — ORIG. LOT LINE) S02'02'32' E 189.61 74.34-H / X 7 5 �\ u'i Q 188.47to ui z z n Z to cli I� Z Q U W Z Z W W L O � CITY OF KENAI rr &I lgrzp4" 4 41424/aa 11 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 14110 1 i»z MEMORANDUM To: Mayor John Williams and Kenai City Council Members From;C:a Cary R. Graves, City Attorney cc: Richard A. Ross, City Manager Date: February 28., 1997 RE: Proposed Land Swap with Chris Garcia On February 21, 1997 Mr. Garcia submitted a proposal to resolve his garage's encroachment on Cunningham Park. As you know, one of the outstanding issues in this matter has been the restriction of our deed that the property be used as a park. A copy of the deed is attached to this memorandum. The deed states in part, "... a reversion to Martha Cunningham or her heirs in the event the property is no longer used as a park." In legal terms, a deed with an express reversionary clause creates a fee simple subject to a condition subsequent. Seltenrich v. Town of Fairbanks, 100 F. Supp. 296, 298-300 P. Alaska 4`h Dist. Fairbanks, 1951); The Law of Property 12.7 (Cunningham, et al. West Publ. 1984). In lay terms, a "fee simple subsequent to a condition subsequent" means that if the donee (the City) stops using the property for a park the donor (Martha Cunningham) or her heirs get the property back. Where the reversionary language is not clear, the courts will construe the clause to be a covenant rather than a condition subsequent. For our purposes, the importance of the distinction between the two is that violation of a covenant would not risk forfeiture of the property, whereas violation of a condition subsequent can create a forfeiture. Seltenrich at 299-300. In my opinion, the language is sufficiently clear that the courts would hold the language in the Cunningham deed to a condition subsequent rather than a covenant. Another issue is whether conveyance of part of the property for non -park use would trigger forfeiture of the property. In City of Dallas v. Etheridge, 253 SW2d 640 (Tex 1952), the City of Dallas used a portion of a similarly dedicated park for a non -park - related public road. The deed in question also had an express reversionary clause. The Texas Supreme Court held that the non -park -related use by the City violated the dedication and held the Cit:y's right to the park land was forfeited. Memo to: City Council Members February 28,1997 Page 2 of 2 More recently, courts have been reluctant to order forfeiture of property, especially wneii the overall purpose of the donation is being substantially carried out. Johnson v. City of fiackensack, 200 N. J. Super 185, 491 A.2d 14 (App Div 1985) (Minor deviation from dedicated use will not cause forfeiture). Kinney v. State, 283 Kan 325, 710 P.2d 1290 (1985) (Deed requires only good faith effort to maintain property for dedicated use). What distinguishes the current proposal from the Johnson and Kinney cases cited above is that the current proposal calls for the City to convey a portion of the dedicated property in the form of a land swap. In Johnson and Kinney the government simply didn't use all the property for the dedicated purpose. Conveying a portion of the property increases the chances that a court would order forfeiture. The Alaska Supreme Court has not ruled in a similar case so it is difficult to predict with certainty what its ruling would be. In my opinion, the court would hold the proposed conveyance does violate the deed restriction. What is less clear is the remedy the court would enforce. While I cannot state with certainty that a forfeiture would result if the trade is approved, forfeiture is a distinct possibility as shown by the Etheridge case cited previously. On January 6, 1997 I sent a letter to Mr. Garcia's attorney Goe Kashi) stating my concerns and inviting him to submit any authority or case law which would alleviate the problems I saw. He has not responded to my letter as of the date of this memorandum. In summary, it is my opinion that: 1. The language in the Cunningham deed is clear; 2. Conveyance of part of the property by virtue of the proposed trade would violate the terms of the deed; and 3. The proposed land trade, if approved, puts the City at risk of forfeiting the property at Cunningham Park. If you have any questions or would like to discuss this, feel free to call or stop by City Hall. CRG/sp Attachment Memorandum Date: 02/25/97 To: Cary Graves, City Attorney From: Robert Springer, Building Official RE: LETTER TO KENAI CITY COUNCIL FROM CHRIS GARCIA I reviewed the above -mentioned letter and drawing. The setbacks shown on the proposed plan will meet building and fire code requirements. However, they will not meet planning and zoning requirements for setbacks in RR zoning. The minimum setback would be 15 feet. RS/mk J Q O w IL a Q J V z m G w W r I z =ri V � g 0 oLL n O N wz W >175 OW d U � v tD U� U?M r- 00 N 00 V: O O eM q O O O O Vi N N 00 00 C%j � M M N4 fA N 64 N H Co � ffi N_ EA vj O_ fJi = W_ W_ ~ J F- F- J _ :D D J > > D O O O O O z z W O O < _ _ F- w 0 2 U) U O 2 aU` U w O w U- v7 a U L O U) O w U W D w J W Q 0] 0 m W z m LLi 0 it D: CL g D } ~ ¢ w w }}I F- J Vi J 0 J D D 0 O O O O O co z O_ F- F- U Lli U 0 d U W 0: Z of w 0 LU O D U 0 W LL z O W Q 0U Z �LLI U U Z 0 z W W Z c r W o 0 o $roi8 Uri Lo cd 0) n T CD M N co ti N Y z a CO 0 J wz 00 3 z W W F- Z Z z W W >- Q Q � Q W 00E- 0 o o U) U) U) m m m z z z 0 o 0 z \ $ 0 C14 IT CL & k K w w z < < < < « � � � § « � � k ƒ E k 0 CL m CO «� < w k� cn zco O� U- w �& c ul z \ z 0 \ w u 0 o m (L � 2 ■ ul d �0CD CL Ir� \ 2 ow z w w■ \ \ 2 S U) k 0 w i a a U > < > r TONY KNOWLES GOVERNOR C,TATE OF ALASKA OFFICE OF THE GOVERNOR JUNEAU February 27, 1997 The Honorable John Williams City of Kenai 210 Fidalgo Ave., Suite 200 Kenai, AK 99611 Dear John, P.O. Bc Juneau. Alaf (907) 4 Fax (907, RECEIVED MAR - 4 I�97 KENAI CITY CLERK I will be leading a high-level government and business trade mission to Sakhalin Island, Russia, in mid -April. As my second formal international trade mission as Governor, I consider this trip vitally important both substantively and symbolically, and I invite you to join me. We plan to depart Anchorage April 12 and spend two full days in Yuzhno-Sakhalinsk April 14-15, departing Russia for Anchorage April 16. Our agenda will focus on solidifying our relations with top Sakhalin government and business leaders, including Governor Farkhutdinov, raising the profile and work of the Alaska - Sakhalin Working Group, learning more about the oil and gas development opportunities for our industry, and exploring ways to strengthen our trade ties. I hope you can accompany me to offer your expertise during trade talks and various presentations. The state's international trade experts in the Department of Commerce and Economic Development are working closely with my office now on scheduling meetings and appointments. Please contact Becky Beck in Commerce's Division of Trade and Development (269-8102) to indicate your participation and to obtain additional information. I am excited about this initiative and believe it will result in direct economic benefits for Alaskans and Alaska businesses. I hope you will be able to join me. Sincerely, Tony Zwles Gove or TONY KNOWLES, GOVERNOR DEPARTMENT OF COMMERCE AND 1 CONOMIC DEVELOPMENT OFFICE OF THE COMMISSIONER February 28, 1997 ie Honorable John Williams ty of Kenai 0 Fidalgo Ave., Suite 200 -nai. AK 99611 John, P.O. BOX 110800 JUNEAU, ALASKA 99811-0800 PHONE: (907) 465-2500 FAX. (907) 465-5442 TDD: (907) 465-5437 s you know, Governor Knowles recently announced a mission to Sakhalin Island and has asked y Division of Trade and Development to work with you in coordinating the program. We are eased to provide you with the following preliminary information in preparation for your trip to ussia April 12-16, 1997: nary mission itinerary is still in draft form, as meetings and seminars are being arranged by the .rican Business Center in Yuzhno-Sakhalinsk and Governor Knowles' staff. Specific itinerary rmation will follow as events are confirmed. In the meantime, arrival, departure and in -country cing days are outlined and included in this packet. Costs The cost of the mission is $2500 and includes, air and ground transportation, in -country briefings and coordination of the Alaska -Sakhalin Working Group meetings and related events. Discounts for additional expenses such as hotel costs have been negotiated and will be paid individually. Please make checks payable to the "District Export Council." Travel Information Air transportation will be provided by a chartered, Boeing 727 operated by Reeve Aleutian Airways. A seat has been automatically reserved for you until March 10. After March 10, additional invitations will be issued to interested industry representatives and the remaining seats will be filled. Although there are no required immunizations for travel to Russia, the Anchorage Department of Health and Human Services highly recommends that you are current in your tetanus/diphtheria (Td) and measles/mumps/rubella (MMR). Please see the information sheet attached regarding immunizations and where to obtain them, if necessary prior to your trip. Hotel Hotel arrangements will automatically be made for you and secured with the credit card number provided on your Information Request Form. Full room payment will be your responsibility upon your arrival on Sakhalin. Mission participants will receive a special group rate of $90 (plus taxes) negotiated by the American Business Center at the Hotel Santa for our three night stay in Sakhalin. 08-H2LH Visas You are responsible for obtaining your own visa. The required letter of invitation will be placed o i file with the Russian Consulate's office in Seattle. Due to the number of delegates joining us, we encourage you to process your visa as quickly as possible. The cost of a single �:7try visa is dependent on the advance processing, i.e., $40 (two weeks or more), $50 (one wtek) or ($80 three days). Additional visa information and forms are attached for your convenience. Business Cards Translation of business cards for Russia is encouraged. Local (Anchorage) costs range from $60- 100 for translation, plus the cost of printing and generally require a two -week turn -around. Local Anchorage firms offering translation and printing services include: • Clarity Communications - Tel: 272-6652 • Clays Printing - Tel: 561-6270 • Velero Linguistics - Tel: 277-1434 • Whisper Communications - Tel: 277-2406 Material Request The Information Request form attached is necessary to obtain information required for making your mission arrangements. All information will be kept confidential. Please return a packet with the following materials by March 10: 1) completed Information Request Form 2) copy of your passport 3) 2-3 paragraph company profile (including your companies experience in Russia) 4) brief personal biography 5) check for S2500 (made out to the "District Export Council") The packet should be mailed or delivered to: The Department of Commerce and Economic Development, 3601 C Street, Suite 700, Anchorage, AK 99503, Attn: Becky Beck We look forward to working with you in preparation of the mission. Becky Beck will be coordinating mission activities For the private sector. Please do not hesitate calling her at 269-8102 if you need additional information or assistance. Sincerely, William L. Hensley Commissioner Attachments: Information Request Form Russia VISA instructions Immunization information GOVERNOR KNOWLES' MISSION TO SAKHALIN ISLAND APRIL 12-16, 1997 PROPOSED ITINERARY Saturday, April 12• 12:00 pm Depart Anchorage • Two refueling stops, cross international dateline Sunday, April 13• 4:15 pm Arrive Yuzhno-Sakhalinsk Monday, April 14: Morning Meeting with Governor Farkhutdinov and other key Sakhalin Government officials Briefings by: • American Business Center-Yuzhno-Sakhalinsk • oil production companies (i.e., Sakhalin Energy, and Exxon) • Other key organizations in Yuzhno-Sakhalinsk (i.e., American Russian Center, Troika Alaska Commercial Center) Lunch Hosted by Alaska Afternoon Plenary Session of the AK -Sakhalin Working Group Evening Reception/Dinner Tuesday, April 15 Morning Subcommittee meetings of the Alaska -Sakhalin Working Group Lunch Afternoon Plenary Session of the AK -Sakhalin Working Group • Subcommittee reports Industrial Tours/Additional meetings to be arranged Evening Reception/Dinner Wednesday, April 16 9:00 am Depart Yuzhno-Sakhalinsk • one refueling stop, cross international dateline Tuesday, April 15 8:30 pm Arrive Anchorage S-/ K. Scott & Associates. Inc. Faciliation a Mediation • Training February 27, 1997 Mayor John J. Williams & Kenai City Council members 210 Fidalgo Street, Suite 200 Kenai, AK 99611 Dear Mayor Williams & Council members: Thank you for an invitation to discuss development of a community forum or symposia for the City of Kenai this spring. Following brief talks with Mayor Williams, City Manager Ross & City Councilman Bookey, I am confident that the facilitation skills my associate, Colleen Ward and I possess, will serve you well. We understand the forum is to create an informed community dialogue about the present and anticipated future of Kenai's economy focused particularly on concerns about a lagging retail sector. Colleen Ward, owner of XCEI , is highly skilled in facilitation of group discussions and processes. She works across Alaska training in team building, collaborative planning and organizational development. Her human resource background in business, education and government compliment the community and economic development credentials exhibited by K. Scott and Associates. As for K. Scott & Associates, we have enjoyed a productive and mutually beneficial working relationship through the development of the Challenger Project and the status report for the Kenai Public Health Center. Both projects required solid research and fact fording skills coupled with a comprehensive knowledge of the City of Kenai and residents. Colleen and Kathleen both live within the city limits of Kenai, and combined, provide an even broader and deeper knowledge of the local area Before engaging in discussions about the scope of work and costs, it is essential that we become very clear about the council's needs and expectation for the outcome of this meeting. A high profile forum could provide an opportunity to understand perceptions about commerce, trade and industry. It can also be designed to launch an assessment and development effort resulting in a strategic plan for the community. The approach for designing the content and structure of the forum differs dependent on its purpose and the anticipated outcomes. Once the city council has an opportunity to more thoroughly discuss and agree on the desired outcomes we can provide a more specific response. Colleen and I will be available at the council meeting to discuss and explore options. Again, thank you for considering our services. Our enclosed resumes further demonstrate the skills, experience and abilities we bring to facilitation of your proposed process. Sincerely, Kathleen F. Scott Telephone (907) 283-5130 Fax (901) 283-5918 e-mail: kocott@alaska.net 150 N. Willow, Suite 103 p. O. Box 2488, Kenai, Alaska 99811 KATHLFEN F. SCOTT Facilitator - Mediator -Trainer Y. Scott & Associates. Inc. 150 N. Willow 5t. • Kenai, Ak 99611 • (907) 283-5130 President K. Scott & Associates, Inc., an independent consultant for government, business, institutions and individuals seeking assistance with project and process development, conflict resolution and team training. Related Experience • municipal administrator, public information officer & human resource manager • economic & community development • seafood processing accountant • non-profit organization executive • small business owner Skill -Designer and facilitator of stakeholder consensus process - habitat policy -Designer and founder of regional tourism marketing cooperative •Developer of $150,000 healthcare transition grant -Facilitator for national space science technology education project •Developer of regional health care initiative Partial Client List •Kenai Peninsula Economic Development District -Kenai Peninsula Borough •Kenai Visitor and Convention Bureau -Lutheran Health Services -Kenai Peninsula Tourism Marketing Council Education -Alaska Hospital and Nursing Home Assn. •Seward General Hospital -City of Whittier •South Peninsula Womens Services -City of Kenai -Bachelor of Arts, University of Norwich, Vermont College •Continuing professional certifications - mediation and human resource management Professional Associations -Alaska Dispute Settlement Association (ADSA) •Society of Professionals In Dispute Resolution (SPIDR) -Society of Human Resource Management (SHRM) Involvement *Alaska Tourism Marketing Council, Public Relations Chair •Alaska Association of Municipal Clerks, Past President -Planning Commission, City of Kenai •Kenai Peninsula United Way Campaign Chair & Board President WARD Trainer • Facilitator • Developer r X CEL 708 Magi;. Ave. • Kenai AK 99611 • Phone (907)283-6007 BELATED AREAS OF EXPERIENCE Independent Trainer/Consultant University Consultant Adjunct College Instructor Oil Refinery Office Manager Business Owner/Manager Project Facilitator Board Director/Officer of Various Community Groups FACILITATOR Design, coordinate and guide individuals and groups through business functions and processes resulting in definable outcomes using various facilitation tools. TRAINE Interactively deliver relevant information to learners through constructively designed hands-on, visual and verbal channels; assess learning outcomes. CONSULTANT Analyze, advise and support decision makers in their management, human resource and technical functions. RESEARCHER Investigate, survey, study, analyze, write and report information pertinent to project or commissioned by client. GRANT WRITER Research, plan and write applications based on clients desired outcomes. BUSINESS Develop and control all aspects of business including: creating strategic MANAGER business plans; scheduling and organizing work; hiring, training and evaluating technical skills and work performance of employees; all accounting functions of payroll, receivables and payables, taxes and financial analysis; and evaluating and refining overall business processes. EDUCATION Bachelor of Science - Portland State University Master of Business Administration - City University with Presidential Honors Continuing Professional Certifications in Various Management and Human Resource Areas PARTIAL CLIENT LISTING University of Alaska: 5 campuses Phillips Petroleum Company Alaskan School Districts: 5 districts Northwest Regional Laboratory Alaska State Department Of Education Vocational Industrial Clubs of America Alaska School Nurses Association Learning Experience Institute MARCH 5, 1997 CITY COUNCIL MEETING PUBLIC WORKS DIRECTOR REPORT Mission Street Project. DOT is still reviewing the plans for this project. It looks like the first of April for the public hearing. DUNES PROJECT The boardwalks off the beach road and the stairs at the end of N. Forest Drive and have been installed. The contractor still needs to install the signs for this project. Enlarging the parking lot at the bottom of S. Spruce Street is not part of this project. We have received the Corps permit to enlarge this parking but we do not have a source of funding. The present parking lot is way to small for what is needed during the dip net season. WASTE WATER TREATMENT PLANT DISINFECTION PROJECT The city crew has completed the installation of the equipment and materials. This project is now complete. -' Ai o Wager's Report March Ss 1997 City Council Meeting [—I Kenai Municipal Airport Enplanements 8CA 1,352 1997 Monthly Enplanements V0 RRA 64" Month ERA SCA Monthly Totals Jan 6,585 1,352 7,937 Feb 0 0 0 Mar 0 0 0 Apr 0 0 0 May 0 0 0 Jun 0 0 0 Jul 0 0 0 Aug 0 0 0 Sep 0 0 0 Oct 0 0 0 Nov 0 0 0 Dec 0 0 0 Totals 6,585 1,352 7,937 J111m" 1997 7,937 Year to Date Kenai Municipal Airport 1996 - i997 Loa$-teram Pay Parking Receiipts Total Receipts - July 1, 1996 to February 23, Ig9'1 i I Pay Parking $399032A3 30 Permit Parking $79ftO•69 Total $46,M.52 Total Daily Average Parking Receipts for 241 days INFORMATION LIST Kenai City Council Meeting of March 5, 1997 1. 2/19/97 Kenai City Council Mcating "To Do" List. 2. 2/97 Resource Development Council, Inc., Resource Review. 3. 2/26/97 Chief Morris invitation regarding Community Police Teams Training. 4. 2/27/97 Kenai Alternative School note thanking council for graduation donation. KENAI CITY COUNCIL MEETING FEBRUARY 19, 1997 "TO DO" LIST CLF - Distribute resolution supporting Alaska Railroad to all state legislators as well as Governors Knowles and Sheffield. Return Resolution No. 97-9 to 3/5/97 agenda for consideration. KK/KW - Note change of Harbor Commission meeting -- 3/3/97 instead of 3/10/97. RR/LS - Include J. Singree (Katmai) on the invitation list for the economic development assembly in April. KK - Go forward with the Alaska drinking Water Fund and Alaska Clean Water Fund loan applications at 100%. RAE - Investigate status of proposed Anchorage $3.00 landing tax and report back to council. ADMIN - Send picture of congestion along Kenai Avenue during fishing season to Mr. Mark Kuwada of Fish & Game in response to his 1/27/97 letter. This editi(Dn Petroleum February 1997 A periodic publication of the Resource Development Council, Inc. "Echo Bays experience with the A-J Mine is a case study of a project that became so bogged down in regulatory quagmire that rising costs eventually killed its economics." - Tim Bradner Regulatory and political problems played big part in demise of A-J project After spending S110 million over the past eleven years to reopen the Alaska - Juneau (A-J) gold mine. Echo Bay Mines is closing the doors on its Alaska protect. !nsteac directrna its investment capital to deveioc smaiier mines in Canaea arc Mexico. While the estimated go,d reserves at A-J are consid- erable. a recent feasibility study ana the results of a two-year drilling program in- dicated a smaller resource at only a marginally higher grade. A new mining plan incorporating the new infor- mation showea a reducec scale of operations and higher -cost mining methods. The lower eserves and higher operating costs. pied with excessive reau- uLory delays and revisions in permitting recuirements. renaered the project uneco- nomic as currently desionea. 'Echo Bay s experience with *he A-J Mine is a case Juneau was founded on mining, named after miner and t,,3:f'he downtowndist,ctrsbuiltontailingsfromrheundergroundA-J.'.`,ne. (Photo by Carl Por.Tan) study of a project that be- came so bogged down in reguiatory quagmire that ris- ing costs eventually killed its economics. I. wrote Tim Bracher in his February 2 Anchorage Ca<v News ous;- ness column. ;f that was the strategy cf mine oppo- nents. .t ,vorKea." Sradner said. "The fact ;s that reguia- tory and cci�ticai croc!errs ciayec a pig par? in the ce- mise of the c-ciect.' For example, Braaner noted the company's ceci- sion to pull cut of the c-c ect was based on incor- z,ete data on gold reserves :De- causethe EPA never a: .%ed the companv to comp its exploration drilling prcc-am. Had the company be - al - owed to complete c--. ng, the economics might - ave peen better as cart of = ore boov not testea .vas tr _ _:iht to be of higher grades. A bum steer by the EPA early in the project didn't help either. costing the company $20 million and years of ad- ditional work. The company had suggested building a pipeline to carry mine tailings to a deep underwater cisposal site. The original dea for underwater tailings cisposal came from early discussions between EPA. local officials and the company at the outset of the project's permitting process. That option was seen as a solution to potential dust and water quality issues and was considered the least costly and most environmentally- sensibie option for tailings cisposai. Thecompanv hired by experts to design an improved plan that would provide added safeguards and become an intezral part of the mine design. Five years later. EPA said it would not consider the option because its regu- lations did not allow for un- derwater disposal. The fed- eral agency then directed Echo Bay to look at onshore tailings disposal. But after several more years and an additional S20 million to com- plete a new plan.:he EPA claimea the onshore tailings disposai design ouldn't meet strict water-ccilution requirements. desc,:e what the company saia v,as over- whelming evidence :o the contrary. Sudden!,:,. Echo (Continued to once 2) Vt is a sad day for Alaska -J see 'he Transportation ,veil -established workings f the ,mine remain inhabited. by only rumors and ghosts." corridor policy Becky L. Gay draws fire Echo Bad nulls out of A=J project (Contrr_ eno from pace ? ) Bay found itself sack to ground zero. The comp_-y once again revised its mining plan ar.d agreed to eliminate the use of cyanide from the mining process. EPA '-en switcnea course again and sale : ;,ouid consider sje- marine aisocsa after all. Senator =-.K MurkolvsKi saic the A-J decision secs a "dangerous mes- sage to buslreH %yarning that :he public review process and the layers of regulatory ovens gnt can be misuse_ by special interests :o create delays which can ultimately �:rce costs uo and kill resource deve!ccment. "It shows 'hat environmental groups. or Durea.:cratic wrangling. can still inflate the cost of projects suffi- Resource Review ; :-e official monthly publication ofthe Resource De'. e cement Councii (RDC1. Alaska's largest onvateiy to -cam nonprofit economic develop- ment organizaton -K!ng to deveioo Alaska's natu- ral resources i7 as :-oedy manner and to create a broad -based, divers, eH economy while protecting and enhancinc ire environment. Executive Committee Officers President ............................. Scott L. Thorson Sr. Vice Presioen* .................. Allen Bingham Vice President ......................... John Sturgeon Secretary .............................. Gerald G. Booth Treasurer ............................. Michael E. Stone Past President .................... Elizabeth Rensch Staff Executive Director _......... ........... Becky L. Gay Communications D -ector ....... Carl R. Portman Admin. Assistant='-ance ........ Judie Schneiter Special Assistant .......................... Craig Lyon RDC is located at 12' ,'; Freweed. Suite 250, Anchor- age, AK 99503, 197, _76-0700. Fax: 276-3887. Material in the ouc a :^ may be repnntea withoui permission proviaec a-oropriate credit is given. RDC': a -mad address: rdci aonline.corn Writer 3 Editor r­ °o tman cientiv Make crce seemingly sound projects-otenraily uneconomic. %lurKO'.'.S-C saia. Alas- s for _,-neau. a greuc oo- posea tc :~e oroiec:. called the decision a *victcr. �:r the c'ocess.- sayinc :hat mining -..s no dace In Juneau. RDC 7,tecu. ,. e Director BecKv Gay -ebut-.ec' a, none, - vehemently_ ^otmg the city .%as founded on mining. named after a —:rer an.- ,hat half the down- town dis:nc: is bu;ii on tailings from the undergrc..rd A-J mine. ,A-i sanes `or the Alaska -Juneau Mine. so the ricn legacy of gold mining is deep;;; mbecded in Juneau. said Gay. s a sac cav for Alaska io see the vdell-estanihs-.ea .vorkings cf the mine remain inhabited by only rumors and ghosts. To :-ave ,. .,.:ght the A-J into producncr, woule have requirea an additiora: nvestm.ent exceeding S300 million c : er the next four years. The compan :vlll write off its entire remaining investment in the croject. S57 minion, and will establish a reserve of $20 million to cover estimated reclamation and closure -esoonsibiiities. Echo Bay .,.as planning to begin construc:.on at the mine in 1998. Once in full prceuction.:ne A-J would have empioyea about 400 people. producing 300,000 canoes cf cold each year. Pres- ently A _Mplovs Many graduates from the UnIVerS;iV Of Alaska School of %lines. A-J -as proven reserves of 3.4 million _.:noes :` cold and ether minerai�za:cn of ' 5 miilion ounces. Des- :e Ecrnc Bays decision.:he A-J coulc someca,f re-ooen. "The mine does^ t awa: pointed ou: uies 7ilester �.rectcr c the State Division --e r- �-erals are st1�i ; ana Ina sr .arply worded letter to Interior Secretary Bruce Saccltt. Governor Tony Knowles crotestec a revised policy by :he Interior Depa-Ment regarding RS 2477 riarts of wav determinations in AiasKa. a memorandum issued late ast mcnt-.. Babc.::-epealed an earlier agreement with AiasKa and other states ,eclardinc:re aam:n!stration of historic ' ehts cf .%av across federal land. This initiative excressly revokes the cebartmen; s 1988 coiicythat was nego- - ated over severa Months with Alaska ana ether esterr s:ates. 'Know 1 es saia. is also trc.ubiinc cecause itvioiates the s-irit of" Congressional prohibition on rher !r:er!or ceve cpment of RS 2477 cclicy ccrtained it ast year's approprla- :cons bill. The ;nterlor --ecartment failed to consult„!th AlasKa or other Western states -efore arnouncing the ne colicy. A new. restrictive definition o, :ne word '-ighway jsed in the Interior 'remorarcum cou:c Ieoparclize parterns of traditicral use !- Alaska. Babbia s new definition of "high- .•.ays." %nich Congress has carrea ~rougr, :s moraic-..:m on the enrorce- ment cf yew reau arsons without con- ,resslor apprc. a . s aefinea n the policy memo as trcroughfares used by :oe pubic `or the cassage of vehicles carryine -eopie c- -ooas from place to dace." -'asKa has s:rongiy objected to is defir:.t.,on because many potentiai RS 2477 :;aims the 49th state are mere foot paths. cog sled and snow —achine :rails usea over the decades -v villagers in the E.;sh. where no mod- .�m thorouchfares exist. Rev!S;_=d Sta:--e f RS) 2477 is a � ceral a.v adoc:ea in 1866 wnich ::rantea t'ansDorta_cn corridors through �ederal'ands that ;.ere not otherwise --serves pubic -se. Though it was -ecealec 197E. pending highwr corridor ::aims ';.ere not terminates.. -::=ess -�- those -!aims. however. :ame tc a nait a-:er Clinton s 1992 cosier en Ba--:: crocosea reau!a- Pace 2 REST.,=�E REVIEW February 1997 -,:nnnuec --- jape 5) M; - Thoughts from the president by Scott Thorson Death in the family Recent events in Ketch:<an crease real doubt for meaningful ecc,:om;c a versity. While on the surface— ciosira of the Ketchikan Pulp Compa-- ; s KPC pulp mill does not seem like a --ic cea to some. the damage to the egicra. economy is significant anc se icrc lasting. KPC represents a ma cr sour: -- of economic fuel and infras-- ::,:re *1:- tnis Alexander Archipeiacc c_mmunr,. and the quality of life wni aec-ease : many residents. Ketchikan is the state S ^n Jar::- 1 city and the closing of KP iii nave reaching effects througrout the Ketchikan Gateway Boroucr- rome tc 15,000 Alaskans. Accorclnc -o Alas :a Department of Labor stua.es. -c to 55: direct jobs will be lost by c'cs..re of tie pulp mill and hundreds mcre if the company's two sawmills c cse -=x re,.• enues to the borough cou:c s� � r K by a- east 18 oercent. There cc:_c ce recuc- ,ions in revenue to Ketc-:�a- P- b;ic Utilities of up to S1 million annually. According to a recer- '.'cDc%ve Group study. the largest scurces c' Ketchikan's job losses vmi be .v!th ioc- ging firms, support services. :cnstruc- tionand transportation comcar. es. These are not low -paying jobs. Trey are some of the highest paying in Ketcr ran. It is difficult to estimate .:-hat w happen to the locally -owner era other service businesses �,vnicr c_cena a those high -paving jobs tha- c -ce mace up 18percent ofKetchikan S r,aaebase. One should ask what serrc=z :vill rc 'anger be available localiv. iI have to close or cut Dac : cn ser- vices and staff? Will resiee^-= ce abte to take their vehic:es into re ac e snocs for maintenance? Where ene nave *o go to buv that sceciai s:a r _ss stee boltformsboat?Astheecc�c-. s-rnrK_ arc Service c.us-.nesses are fcrcee -: closeit gets -o gner arc more excer- s;ve live Ii r Ketcn;Kan.., nicn :viii on aaa *o the number ^eocie leavinc. Closure cf p is mail %%iii cause seal camace iv:,-e tlmeer InaustrJ state - vice 'With mucn of Alaska s -imber rase old ana decaying. many trees are lot surabie for manutacturng into value- added proaucts. The euio mill assure: a consistent marKet for the iiow-erc acs -rat came ;;ff the forest. 7-e m!;, :reatea lots in Ketcr Kan ::sine_'rose DV.-ene resources. Nith the cicsure cf'r-e miii..AlaSKa mcer operators ,,viil be at the mercy of aver,_., volatile anc soft .vond marKet fcr puic logs. unless a medium aensity berooard plant s built'o process the ow -end logs. Sucn a facility could be sustained on a smaller volume of tim- ber than what was required to feed the puic mill. Moreover. the crocessing Cf 'he esource ntc meeium censity fiber- coara would not be as costly pulp. But with the closure of the pulp mill. anc -o new 'acuity cn *re 'horizon -recess the ,o,w-ene resource. a num- cer cf ecoriomicaiiv-marainal umber coe-a-ions acress tie state coma be leoeardy, including the harvesting cf ceet:e-infester sauce in Southcentrai How aid it happen and wno made 'he recision that cost KPC is economic ✓iaeiiiry? The cecisions that forced the mill tc close ;;ere made by bureaucrats 5 000 miles away in Washington. D.C. Most of these people have never been tc Alaska. and many of them would not be able to point cut Ketchikan on a map. -��e; con t .are accut the oeocie s�,,no ive and ,vorK n Southeast Alaska. These Tara-worxing Alaskans are lust Dawns in the came of coiitics. The nu- -ea-crats nave acparently aecidea DE;nefas them more to throw preserva- -ionists a bone Dy hammering one more -�aii r:o the timcer iraustn✓ s coffin than -o ai.c:v a aiverse economy to continue aasaSKa. --ese :-e same Deoc.e ,,;nc _e :Bed g :brae. tree --xancer - :n peiacC ^✓or _:--c the .crtnern a zriawK even -rc.,:gn r� ccculation -,aivsis `or either _Decies as teen c. icljctec ;cr the-_ngass. --ese are tre .:ame ceocie wr aeciaec at cutting e-c..:han ..ne quar.= cf one --cent of the commercially aoie tim- . e' case per . saris ust too mucr. reve, -,a that mcre trees are lost ;vine. -sects anc c a ace. _rese are re same e Dole wno accept false and irccmpiete- 'ormation -om the envirormentai -cmmunity a: face value while gnorinc sz:entificaily-Defensible data succortinc .--Der harvest17e — all in air effort tc strfy their cc ticai agencas. Alaskans deserve better from asnincton. Minerals Commission submits report The Alaska Minerals Commission --as submit:;-:-- its 1997 recort to Governor Knowles. recommendinc cr,^.tinued state investment it aerial acc. ing of asKa's mineral res:,;rces. -e primacy verthe fecerai .:`,ationa: a utant Discrarae E;!minatior �: ,ster^ EDES) anc support for AMEzr_ . a ^eralsanaerergyeaucationc-scram. The cc,,t:nuec fundin- _- the a:rcorne geoc7vsicai surveys s just e of the ieeis-ative anc admir.,s-rative a=ons that have contr!cutea Significantly to continued strong growth of the mining industry." Alaska Minerals Commission chairwoman Irene Arcierson ana RDC Board memberfrom ^lone told Governor Knowles in a Ming on the ' 997 recommencatons. Tre Commission would like to see the maoping program institutionaiizea :rer than Based on annual -c2,opriation. The report highlighted a third c-secutive year of strong grc, ~h for . laska m:- ... incustry. it cc -tarns �commenc�tions to the G,erncr a _ _eeis, -_re. accor- _ -a rwoman .*naerscn. Ft. Knox pours first gold bars Operation is Alaska's largest gold mine It was a golden Christ- mas at the Fort Knox mine deep it Alaska s intenorwah the you ring of three gold bars weighing 2,128 troy ounces worth S800.000. The largest gold bar weighed 85 pounds. S460.000atthe current price of S369 Per ounce. About 50 Aiasxans. r- cluding RDC staff. .,.,ere or hand for the gold pouring. which Was held December 20 as the temperature out- side hovered at -30 degrees. After nearly two years of construction and an invest- ment of nearly S500 million to buy, permit and build the mine, Fairbanks Gold Min- ing, Inc., a subsidiary of AMAX Gold. has begun pro- duction at Fort Knox. located in the Fish CreeK drainage about 20 miies north of Fairbanks. Ft. Knox contains about 4.1 million ounces of proven reserves worth about S1.5 billion at today's gold prices. but it will take at least 12 ;sears — rvitr annual operat- ing expenses ct' at least S76 million — to recover those reserves. T"e mine is ex- pected to process between 36.000 to 50.000 tons of ore daily —that's how much rock must be crusned to achieve the mines daily gold ercduc- `ion of 1.000 ounces. Since the mine wrli coer- ate year-round. ro seasonal ayoffs are expected among an Alaskanv, orkforceof243. With production under- way, Ft. Knox is a gold star for Interior Alaska's economy. Annual operating expenses include a weekly payroll of S300.000. monthly million dollar e:ectric bills and yearly property taxes to the Fairbanks North Star Bor- ough of S2.3-niilion. While F,:. Knox pales in comparison tc the economic boom Faircanks experi- enced with the construction of the trans-A:aska pipeline. the mine will bring healthier, long-term growth and stabil- The Ft. Knox mill is the largest ^ the world. using Huge mecnanicai auicment to QrTr~'`'B rr 7e,3,-- :,n ore and rer11C'.. 1 e rr,crosCODlc goid flecKs from ,7e nosr rccK. - :sKa gold orccucc'= .Viil see a _-inner year in 1991 ••,:th total _- d proeucticn o-c'e::eJ at 55- ,;00 ounces. , r-: -ec to 1- ::00 ounces )n , 9-c3 ^d 141. ) in 1995. Tne ora. as peax -- s dec .,me in sta:a.•, de prop-:::,^n was �n ' ° --en 243.�:0 ounces of oeic re proc_ _eo. accordinq re t.�_ :ate Divis.=n cf Mining. At rc�-:. Ft. Knox _ -urs its first bars - f-c,d. ?hotos by Carl P=—an) ity tc the region. Sala. -es paid Ft. Knox workers .viii put extra S15.4 M :,ion into 7e local econcm . In ado:-:n. the mine --re- ater=_:vjobs inexistirc c-si- nesses that provide se:-. ces to tre mine. Compar . ffi- ciajs estimate 850 seccnd- aryjots will be genera:ed in Fairbanks and across -he state cecause of the r^ ne. Beyond the prover re - series of 4.1 million ou^aces. the Ft. Knox deposit ccuid contain an additional 2.7 million ounces of gc:--. if those Potential reserves can be proved up, the ad&'o-nal goid on ore could give Min- ers lore than the prc;ec:ed 12 vears of work at Ft. -:rox. gooc news for Amax - es - tors as capital costs arc con- struc',on expenses a big crank out of the 7!ne's pote-r.alprofits. Eacr, c..nce of F,. Knox gold %vi,i cost Amax about $215 per c.:nce to mine. mill and mea 'nto bars. And that does-., in- clude the $350 to S4CC mil- lion construction ccs's. %leanwhile. a nur-car of other mining companies -ave taker a serious interest - the spruce -dotted hills sL ~c_-nd- ino ---a Ft. Knox c =sit. Placer Dome and Ne,%r=t Golc are exploring --arby prescects that may a.s : sold larc_e debosits. -. ,e modern dav --nor Alaska gold rush has re- sulted in a major increase in exploration dollars targeted to Alaska. The increaser' spending for mineral explc ration and development boosted the industry's total value to nearly S1 billion in 1996, an all-time record. Construction at Ft. Knox was a major factor in the industry s record -setting Alaska -vestment. but it's not the only hard rock mine makinc readlines. Nev, discoveries at Red Dog in Northwest Alaska will make t^at mine the world's largest croducerof zinc. The Greens C reek Mine, recently reopened near Juneau. will soon become the largest sil- ver producer in North America. and the Illinois Creek P.l re near Galena will begin production this spring. The nigh level of explo- ration a-d develooment ac- tivity is a strong indication of the increased confident industr; as for doing busi- ness in L aska. Over the past six vears 'he Legislature has made M c re than a cozen Page 4 RESCUP--E=EVIEV, February 1997 changes that have clarified laws. reduced unnecessary risk and improved the busi- 3s climate for mining. In the case of Ft. Knox. the company successfully passed through a complex permitting process in two years. a factor which caught the attention of major international mining companies which have ions been discouraged by Alaska s economic and regulatory barriers. More -over. the State continues to fund airborne geophysical mapping of potential mineral -rich areas. The information from this program. �s vital to companies considering investments in AlasKan crospects. But mining companies investing nundreds of mil- lions of dollars in Alaska warn that descite promising geol- ogy anc cotentially giant min- eral deposits. mines like Ft. Knox. Fed Dod and Greens CreeK -ave extremely tight econc7:c mare,ns cecause of enormous infrastructure and cacitai costs. ThanKs to the size of the deposi:S and the strength of the companies involved. those c,ojects have moved forward. Heavv eouipment working year-round dics .-e ore from an Coen pit -,no rrarseorrs ;t to a crusner. oonvevc" oeit ,'hen cr.lsneo : . 7e rr_i . RS 24"17 policy draws heat from Westerners Connnueo from pace =! Lions that would maKe !t narder fcr states like AlasKa to get rights of way. The fight has centered around •,vhat constitutes a valid claim. Western states maintain that a valid c.aim exists over any trail or oath that was traditionally -sed by peopie to get from re Place to another. Deborah ',Villiams. Babbitt's top AlasKa aiae.:cid -To the extent that these actions are successful in confusing and intimidating right- of-way holders, Interior will be successful in its ongoing attempts to defeat RS 241 s across the West. - Met Johnson the Anchorage Daily !`,'e,,vs the policy has no practical effect because of the ccn- gressional moratorium. "The whole point of this was to make it unambicucus as to wnat the deoartm rt s Policy has been. 'Nilliams said. `This has always teen our position and we re ,,jst 'nakine eminently _ ear. This aces not n any :.ay cnange the administrat,cn s cclicv or cractice. Met'lonnson. cxec;.t:ve Director 3f the Mates that :Jniie Babbitt's office claims the memo is not a rulemaIKing, in practical effect. it constitutes a new effort to find a way tc undercut established law. "The Babbitt memo sets form an illegal policy. which will be carried by Interior em- plovees to state and local governments across the Nes: as the only way to deal wltn `iS 247/ rights of way. Johnson said. "To the extent that :nese actions are suc- ::essfu! in confusing and in- timidating right-of-way hoid- ers. 'nterior will be success- ful in its ongoing attempts to defeat RS 2477s in the West. Alaska's congressional delegation also believes the memo represents a new ef- fort Cy the administration to revoKe the RS 2477 rights of wav, contrary to more than 100 ;ears of Interior pciic; anc court rulings. "t seems that the Sec- retati nas tried to embody in decartment policvwhat the pue;ic and Congress rejected by stopping his proposes recuiations. ' said Senator FranK MurkowsKl. Sen. Ted Stevens said Babcitt's action shows the Clinton administration has not moderated its views on public access to federal lands. State Senator RICK Haiforci noted that an RS 477 s a prior existing right. -�cl SUbiect to reoeal at a ecerai .vnim. 'The State snould ag- gressiveiv assert ana defers ali c' :he RS 2477s that nave See-. "esearcrea and are tea:: ..Inc. - aifc,olsaic. Goihr�::^. 'OG" UGC^; IQr'� ❑C1/IC', r11 D-, ., ". _ U.S. Senate to consider Alaska w�#lands measure A measure to eliminate burdensome permitting re- quirements for the develop- ment of wetlands in Alaska was introduced in the Sen- ate by Senator Ted Stevens. "We have developed less than one -tenth of one percent of our wetlands in Alaska." Stevens said. "The national wetlands policy un- dertheClean WaterActdoes not worK in Alaska — it was designea for the Lower 48 where 53 percent of the wet- lands nave been developed.' According to the U.S. Fish and Wildlife Service. there were 170.2 million acres of wetlands in Alaska in the 1780s and there are still 170 million acres in Alaska today. In contrast. only 104 million acres re- main of the 221 million acres of wetlands in the Lower 48. The bill would prevent Alaskans from havina to ob- tain v✓eTIancs fill permits un- der Section 404 of the Clean Water ,act to continue exist- ing activities related to airport safety. !ogging. mining, ice pads. roads and snow re- moval. The bill would require Alaskans who must apply for wetlands fill permits to mini- mize adverse impacts, but eliminatethe existing reauire- ments to mitigate unavoid- able impacts or prove no alternative sites are available. Stevens' bill would re- quire the Corps of Engineers to come up with a new, cus- tomized permitting process for lands conveyed to the State under the Statehood Act and to Alaska Native corporaucrs under the Alaska Native 'lair- :-ettlerrent Ai--,* that does - _::rcluce burdensome mitica: avoidance and othe- -_:uirerrents applying natioi­_ v. _e legislation :✓ould allov:»nerai cermits ;o be estac s-ed fcr the develop- ment -urai Alaska ,nfra- struc,_ e such as water and sewe- systems. airports. ,oacs �_-c scriools +snout *he c.. s. -a recu.rementthat :he : . av be ceterrrmed not agd -o the "cumula- tive _-ss of weuands nation- ally.:.%ouid also require the Corps -: approve general perrr - at the request of the State � categories of activi- ties s_:n as small mining opera- :7s. erosion control prev;----::n ana foresrr�. A scecial measure grant : Alaska relief from :he ^ _.:na -o net ,:ss' :✓ena­ standard mace it :hreu:- : e '-1c, se last ...,ear as pa- the controversial Clear .%ater Act revision bill :✓hic- -- aen:he Senate. The _nateEnvironment and = _:,,c 'NorKs C3MMIt- tee. _ . cy Chairman John Chat=_ R-RI). has contin- ued t: mpeee a ccmpre- hens.. clean .eater bill. The rational "no net loss ' _-_ndard requires de- eioc_-s :c acnere to :nree guide � _s n,hen building in .vet a --as. avoidance. mini- miza- :- end compensatory mitica-. =n Consequently. :he c:..mrri can reeuire anvc-_ -: cav fcrthe orctec- on -asuDra::on of .vet - ands = -.whereto comcen- -atewenands :cst to :heir ct. Alaskans -•ave Wetlands permit to get stricter Ina move that will significantly t=ten wEi­.,­lds regulations. the U.S. Army Corps cf Engineers :riil begin to phase out a permitting procedure for small tracts of a nd over the next two years. Under process known as Nationwide Permit 26 (NWP 26), developers can fill wetlands from one to ten acres without dainine individual permit approval from federal officials. but as of January 1997, the Corps will begin to lower that threshold to between one- third of an acre and three acres. In about 18 to 24 months. the Corps will eliminate the provision altogether. Wetlands regulation reform advocates fear its elimination could have a devastating impact on builders and small landown- ers. Republicans in Congress claim the current permitting system already nfringes on property rights and inhibits development. The National Wildlife Federation :s challenging NWP 26 and NWP 29, which allows landowners ana homeowners surroundea by wetlands to make imorovements -o property of one acre or less. Environmentalists nave long ccposed the use of these permits and applauded 'he decision to curtail their use. Environ- mental c-oups. however. oppose a ^.vo-year phase out oerioc and are suing the agency over the proaosed timeline. Reform advocates may seek legislative action to block the Corpscease out of NWP 26, pointing out that such action will dramatically increase regulatory burcens on small landowners. "Potentially thousands of individual permit applications wil have to be filed by homeowners, business, and communities, requiring scarce time and money.- said Rhod Shaw of the National Wetlands Coalition. "In addc'on. even those applicants that can use the transitory NWP 26 wu. face a heightened level of scrutiny by the Corps :✓high will require on -site avoidance. minimization and mitigation for impacts of less than one acre." Shaw said the C;,ros proposa. _✓ phase out the term t demons,ratestheinconsistencyand;: redictabilityofthefedera wetlands program. "The National We':ands Coaiit= believes the orcoosec changes to the NWPs are yet another example of the constantly shiftina nature of our feceral wetlancs ::oiicies and an illustrative examc,e of the problem :nth the curve -it program.' Shaw added. "This situation is neither an appropna;e approach to protect our wetlancs. nor is it anyway to treat per- t applicants and commu- nities rnat seeK consistency and clar;-; from the program. On behalf of AlasKa communities. Native landowners ana resource sectors. the AIaSKa Wetlands Coalition is monitoring the complex and evolving regulatory issues and is continuing its efforts -o bring understanding of A!aska's unique wetlands inventory to the national debate. I argued :hat the stancard makes ii:`le sense in A aska where cry land is rare and ,vet lane is so comm---. In addition. Alaskans pc -- out their state has an exce;ient wetlancs conser% =-ion recorc. .,mike other s-ates n✓here - :st vaivab!e .,:et - ands -a.e deer eeve :bee. In Aaska. rural : ages are generally surrounded b. wetlands and have ro othe• option but to build schools. airs -rips and basic ccmmt.- nr.y infrastructure ove marshy areas. In som cases. wetlands are the onr. f la: ands available for builc rc n manv cases. - s 1 C ce :ent .wetlands. Page 6 RESOURCE REVIEW Feorua-. ­_97 brief review Bill focuses cn Water standards HB 51 a cill pertaining to AlasKa :vatercuaiity standards. has cassea the House Oii and Gas C.:mmlttee. The blii contains a reaulre- ment - autcmaticaliv aaiust state stanaards :,vnen federal chances result n less s-.rct stan- aaraS. -r 'wnen 'eaera! ran- :iatesa-eceieteafrcm:a,, _ `he bill red.ares state reeu!ators to set stareares arc crltena,vnicn are scentlf ca':r✓ suoocrta'ole. consistent ,,nth exlstlne federal stancards anc-eaiisnc for alasKa. HB 51 provides an ailow- -1ce `or discharge waters to match the quaiity of the receiv- ing waters. it also provides a statu,cry mandate tr 'nixing zones !n regulation. RDC board to meet m Juneau tempers :-f RDC ccara of directors w1il meet In Juneau Fem,ar✓ 19-20 to advance the orgarization s eglslative ana adm ^;strative cnorities for 1997. -:'-:e Ccuncii viii aoaress a wide ranee of issues affecting the on and gas. mining, timber. tourism anc fisrino noustrles. Priorities ranae from a,vice ar- ray of reculatory Issues to trans- portation infrastructure. access and permltt:rc—easures_ RDC supports traditional access Alaska must retain the wld- cst cosslble range of multiple uses *s arcs anc preserve as mar, options as cossicle for access. _scec a!iv :-a.-iucral _.-ce- _. �_. _�. _ : _:,,er uses -a- :c�c ecisia7ors ,c ,- :.rlct a, _..,ces_ for eat.or ..uses, the rr.: c bills wcaan ra'Ke ;he process of n,creas,rc :_ccess estnct:crs ana z!ticrS mc,e .,per the eecc e r r - asKa. Tracltio-a: -crms C' access. nclualnc - ,Drat:. sr- o✓:mooiies arc boatS. are an essernai e:e- ment In � a_Ka s cnlaue access eauaror =DC --ctea. Proposed action for Red Dog Creek in a etter :. *ne AiasKa Deoanme-t : Envlrcrmen*ai Corse^.c,!oniCE': astmcnm. RDC _:_cccr,ec ,. , oposea action *c amerc :vaier .ualizv stancares :c estapiisn s to-sce- IC „.:,e Cr :tal Dlssolyea Songs _ Rec Sec arc iKaIUKrcw Creel<.s. - DEC's crocosec action to remove :re ore third aoove backarc.ra Ilmr, for —'IS in the Cwo creeKs is a ccsltive action In eflnirc .%ate, Duality standards ,c refleC* "ea! sLlC Alaska ccroi- ncns RDC rctee. Deal saves sawmills : ..,rat.., : s ou'.. "F snlr^ t,.ucres an ""nee!—=-:.:'tn _culs!- ana Pac c Corccraticn that .veil <eec = y s "', sa,v -1111S 17 IneaS7 r- aSKa:'Der- atina :least three years. The -zreement ,.iil preserve -100 ;.mDer oIus at KetcniKa- D Ccmcarr✓ s Ward Cc': e arc MetlaKatia saw- mills. Urcer t-e deal. KPC ,vlll receive acout 310 million board feet of::mcer over three vears. The u,: �_� e_a teen releasec :, cg ;,nc racer :re comear. s -_:,rent era *erm timber s-co:v cc--ract. T'^e two sawm:!pis z c remar ccen af- ter the --year sL:p :S ex- naustec. z criv f enough t:m- ber is -rage a;a,ial -nrouan aaemer-' :....n or -re Forest Seni-ce _ excec ec :: ,!ease .ramat ESA Doti -ion The u.S. = s anc re Service recelvec a zent:c- ~em an environmen,a zrouD :e nst the Northern GOSr aWK arc the Alexander Arch�caiaac :';'cr as a threatened c. endanzerec soecles. Sucn a sting _. uic ce yet anomer z c;v to ccclnc the Toncass Fc Est. Forest Service revising Chugach :Ian Anew 10-year management plan for the Chucacn National -crest should emcraslze sce- clfic actions to restore -crest health. reduce tre ,isK cf cata- strophic :viiclfire arg ma;n,a:n a multiple use marcate r :,nlcn rational'crest cc.icv has --c been centeree. =DC :c .e U.S. Forest Sent ce recer-,✓. The Fares; S n ice s oe- ginning the revision crocess for its land management plan. The original Dian, comc:etee;r, t 984. ,vill be revlsea :z reflect anv changes to the en,;iron mental. social or legal ccnditicns that have come aboL: S roe tre :::an was approved. In a report :c the Forest Service. RDC salc the new Dian should not be basea cr Duollc omnlon cclis. zrourzea goon science. Maracers s-----ic reslstdecslon-;ne caSec cr aesthetics. mIs-::_:jec z-:)iic opinion and oerce1veci ir^cacts to the forest RDC The colectr.e cf the ne:v plan snould be :: mana•ge :he forest tcwara a .aried speCies composition and c:fferer: age classes to reduce the r sK of significant future ceetle rrc, tal- Ity and help restore long-term forest health. P-DC --com- mended. The plan snou c a so meet the ^,vlr eec - r- creased access. -c;um7:: -e11- copterflightseelnc ana la:7- nos. Feds to look at east side of NPR-, The Deear _--!c- -._-;or nitiated an 18 rrc ,r, c a nci crocess .- :ne as, -er of Reserve - �.:aSKa a2*Er :ne anas _� _ :able for C11 a n a ,,,aS easing. _.s weli as orotecticn `or ,viic Um ANWR Coastal Plain. 23 r Iilion acre NPR-1. toes rz: —oulreConaresslonai action '_ easing to occur. umoer ;ease saies have ceen -='ea there In the past ana dcze-s of exploration,vells rave zaer grilled. I tore than 16.000 M les of seismic lines cross ,"e -eserve. The Department of Interior .vas give- discretion to lease in the reser. 9 in 1981. and four ease saes were held between ' 983-8-5. `Jo sales ,were ever actively zeveloped. Inter cr Secretary Bruce Babbirt sa ,soil leasing is "abso- utely -`e ,oat of the new studv. Pro-certy Rights bill Sera:crOrrtr Hatch I R-UT; plans :z rtroduce a new 'tak- ings' bJ: early in the 105th Con- gress a`ar the Omnibus Prop- erty Ric-:s Act failed to come to a vote Ir :ne Senate last year. Proccnents assert that pri- vate orccertv rights legislation is needec zecausethe federal gov- ernmen, -as failed to comply With recer: Supreme Court deci- sions ..z-..oidina the rights of cnvate z _Derry c'.veers. hey also ncte-_e feaeral eovernment CanKn C"e: nalVlcuaiscv:aKing grocer snout compensator through .•.etlanas regulations. enaance.ec species iisnnas and a host e- ^er regulations. Sen. DirkKerrc:Horne (R-ID)isworK- ng on c-a" lealslat,on for ESA reauthorzanon. Easley appointed to regulatory board -he Sail BusinessAamin- straticr -as appointed RDC board rre—oer Paula Easlev to :he Sma . 3usiness Regulatory Fairness =zara. She was one of 50 A.me- _ ans appointee to ' 0 regional --cards that wlil provide small bcs -esses greateroopor- -;:nlnes nfluence federa: -aencv -a::ciatory enforcement crac,:ce= =aslev :viii recreser* asKa coarc 7eecnc Vasnlnct_-. D.C.. this month. -;;�u7wrr- .'�^!hTJ.,�r//rrYa /vr�tria-.C';nu� /'7,-'..:_- -.,KsefK� .� _:'-.. ��lak�-K�rr.� _ :>�(ir� �Lr.•,i.,,� ;���rr!-�J n��..-� ��, �-_.., ,.f:r�-i',,.var;ardurm;'�F�trra � Y�Y 3 C N a I p\ T \ D 3 Since Tesc-o Alaska began production at our Kenai refine-. n 1969, Alas -:a s petrcieum industry has created a world of re opportunites. And overcome tremendous challenges. a 4 r Today, Alaska s future is brighter - and the potential for rea cstability is --eater - than ever before. We need to listen arc understar'. e neec -c cooperate and : pork together. ti We neea _y :9velcc ;r potentiai and preserve our cuaiit. life. It's ac-- :: to take ::cod energy from everyone. , Tesoro A'a=_ :a is prc. c to share Cur very best. $� ww i f61MiiARWii Ar `/Y// I it I!I A ArMwFAW r�Ar WMWAW r /A�� — THE 1V4Y TO CO. >y z �-zlbaN,j 4.%�t .iJ�JJ-✓J12�T�i"!-XhiiJ Zf;./Y �—,Y a�'W UJ'j -z,J/'UU%9J�il��'N-Nj{/H✓ ..:✓Ln� iJAfI/���%'�2 l%�✓,�-.�'1/U4/JUj Resource Development Council 121 %1 = ,eweeo. Suite 250 AIa�� r John \William, Bulk Rate Ancr,,crce. AK 99503 C:t" " Kellar U.S. Pestaoe a PAID Permit No.., Paae 8 :ESOUIRCE REVIEW Februar✓ - % ReSource Development Council � HURSDA Y Petroleum Club ofAnchoraae v NEW LOCATION: 3301 licit STREET March 199 7 00000 104141414l Reservations are —Cured. Please .,ail 276-07-0 by noon Wegnesday. Doors open at 7 a.m., presentations -e•�in at 7:30 a.m. Merncers: Breakfast: S10.50. Coffee & Pastry: $5.50 Non -Members: Breakfast: S12.00, Coffee & Pastry: $6.00 February 20: No Meeting, RDC Board meets in Juneau February 27: Department of Interior: New Challenges and Opportunities Deborah Williams. Soecial Assis-ant to the Secretary for Alaska. U.S. Depar-mer- ;,t interior Marcn 6: How Alaska Fits into the Kennecatt Mining Strategy Patnck Smith, Regional Manager. Kennetc: Exploration Company Marcn i 3: New Directions in Fisheries Management Dave Cobb, Mayor, City of Vadez and Busi7ess Manager, Valdez Fisheries Development Association Marcn 20: Montana Rail Link: Ready and Able To Do Business in Alaska Gill Cam ti ae . `:"ce C"airman �` Btarc. Mcr-.a^a Rail Core- Missouia. i,r17 Marc,7 27. 1997 Capital Programs & Construction in Alaska Henri S rncer. Manager -`ssoGate✓- '.�enera1 C:,rtr cis of Alas WHAT DO RESOURCES GIVE liS? QUALITYOF LIFE_ The nc-• :.:_ _- 'u rt rt) nladk2 ....., ,; ."_ _ ..)e Itlh till .!le _. F,res� WHICH -,ESOLRCE DO )OL RM 0\ THE MOST.' TIMBER. time %,".: rt,!J . Paper l`' D-00' `.,ill rt'',,1111t111_ the timber 1nCiu ire lust 100k a)707 _: THE FUTU nd .t' Ir ;,ur.,,. an ad\'er<,c E%en . u:,.. r :n related .....- _. -,1::1 ,. FISHING. nnmeral yam" �Y ^.aD lr Je DOES TEE ECONO%IN REL) ON RESCL CE DE% ELOPME\T. nrru_i- - .mc, rest r r Kd ',;l meet thl` ;t _., .. _>u %%e"ll L Our na -:. re�,ourc,s .,rcl Ide the e eniC'% :c,,iaN, and 47 Resource Development Councii 121 W. fireweed La., Suite 250 lic ,r-:le::iL n Anchorage, Alaska 99503 Al, =ax F Auk' r� NATUR.-%L RESOURCES IS A GROWING CONCERN. KENAI POLICE DEPT. 107 SOUTH WILLOW ST., KENAI, ALASKA 99611 TELEPHONE: (907) 283-7879 - FAX (907) 283-2267 To: Mayor Williams and Kenai City Council Through: Richard A. Ross., City Manager'' From:. Daniel Morris, Chief of Police Date: February 26, 1997 The Kenai Police Department will be hosting Community Police Teams training at the Kenai Visitor and Cultural Center on April 3, 4, 5, 1997 (See course announcement). I would like to invite one or more of you to participate in this training. This course will explain what community policing is and offer methods to identify and implement strategies to address crime issues from a community perspective. Most of the participants are expected to be non -law enforcement representatives from the community. Please contact me if you have any questions. Thank you for your consideration. DLM: cc COURSE ANNOUNCEMENT The Kenai Police Department in conjunction with Western Regional Community Policing Resource and Training Center Board on Public Safety Standards and Training Hosting DEVELOPING COMMUNITY -POLICE TEAMS (Building a Foundation for Community Policing) The Western Regional Community Policing Resource and Training Center (WRCPR&TC) is funded by a one-year, federal grant awarded to the Board on Public Safety Standards and Training (BPSST) from the COPS Office, US Department of Justice. The purpose of the WRCPR&TC is to initiate partnerships and provide resources, information, coordination, and training to law enforcement agencies and community teams in Alaska, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, and Utah - increasing their ability to reduce crime and fear of crime in the western region of the United States. To: All chiefs of police, community leaders, youth, retirees, minorities, business, church, law enforcement, code enforcement, school, government, media, etc. (Please help distribute this announcement.) Time and Date: April 3, 4, 5, 1997. Thursday - Saturday; 8:00 a.m. to 5:00 p.m. Location: Kenai, Alaska Kenai Visitor and Cultural Center 11471 Kenai Spur Highway Cost: No cost for training This training is supported by award 496-CK-WX-009, awarded by the office of Community Oriented Policing Services, Office of Justice Programs. Participants with more than a 50 mile one-way commute, who opt to stay overnight in Kenai, are eligible for lodging and meal reimbursement, for up to three days and nights, at per diem rates. (Lodging - $76.00; Breakfast - $17.75; Lunch $17.75; Dinner $35.50) Participants are responsible for their own travel expenses. Registration: Pre -application is required. Completed application forms must arrive at Kenai Police Department by March 14, 1997. Space is limited. Confirmation calls will be made prior to March 21, 1997. Target Audience: This training was developed for police -community teams of thr':.a to ten people. In addition to police officers, team members should be individuals with leadership abilities who represent a good cross-section of your community, e.g. youth, minorities, retirees, business, church, school, government, code enforcement, media, etc. Summary: This three day course is a strong foundation training block for community teams. It includes all of the basic components of community policing: building partnerships, solving problems, managing change, planning for implementation, and implementation strategies. Objectives: • Increase understanding of community policing • Obtain community policing tactics to apply in your own community • Get more comfortable working as a team to improve livability in your community • Ident:ify and begin working on specific issues in your community Instructors: Instructors are a mix of police officers and citizen practitioners, who are considered community policing experts in the western United States. All have personal experience in implementing one or more of the community policing components addressed in the curriculum. Maximum number of attendees: 60 Application deadline: March 14, 1997 14 DEVELOPING COMMUNITY -POLICE TEAMS April 3-5, 1997 Mail or fax to: Lt. Jeff Kohler Kenai Police Department Phone (907) 283-7879 107 S. Willow Street Kenai, AK 99611 Fax: (907) 283-2267 Participants must register as community -police teams. Please send registration forms for your entire team -together, Team Name: Total participants on your team: ❑ COMMUNITY LEADER ❑ LAW ENFORCEMENT If law enforcement, has your agency received arty of the following federal COPS grants? COPS -More COPS -Fast Other. - Name: Representing: Address: City, State, Zip: Title: Phone: Fax: If available, areyou interested in hotel to convention center transportation Yes a No ❑ ❑ COMMUNITY LEADER ❑ LAW ENFORCEMENT If law enforcement, has your agency received any of the following federal COPS grants? COPS More COPS -Fast Other. - Name: Representing: Address: City, State, Zip: Title: Phone: Fax: If available, areyou interested in hotel to convention center transportation Yes O No ❑ Application forms must arrive at Kenai Police Department no later than March 14, 1997 a� a-PPU TU -5, RECEI EV D FEB 2 7 1997 KENAI CITY LER Special People make Special Schools! 1791- Ml CITY OF KENAI . "Oil Capdal o� 74hzk '. i� TO FROM l 1;;�aS 210 Fidaigo, Suite 200 Kenai..Alaska 99611-7794 Phone 907-20-7535 " y FIX 907-283-3014 Date a Ion Number of Page ae_1�01_hrn0 � AGENDA KENAI CITY COUNCIL - REGULAR MEETING MARCH 5, 1997 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.Kenai.net/city B. SCHEDULED PUBLIC COMMENT (10 Minutes) 1. Paul Gray - Kenai River Video 2. Bill Coghill - City of Kenai Financial Report 3. Amy Williams - Kenai Cooperative Preschool C. PUBLIC HEARINGS 1. Ordinance No. 1735-97 - Increasing Estimated Revenues and Appropriations by $250,000 in the Capital Project Fund Entitled "Kenai ARFF Project." 2. Resolution No. 97-9 - Awarding a Contract for Fuel Service to Mapco Express, Inc. at the Unit Prices Listed Below for Furnishing and Dispensing Fuel at Their Service Station Located at Bridge Access Road and the Kenai Spur Highway. a. Remove from table. b. Consideration of Resolution (Pass/Fail) C. Consideration of Substitute Resolution No. 97-9 - Awarding a Contract for Gasoline Fuel Service to Mapco Express, Inc. at the Unit Price of $.98/gal. for Furnishing and Dispensing Gasoline Fuel Only at Their Service Station Located at Bridge Access Road and the Kenai Spur Highway. 3. Resolution No. 97-10 - Transferring $5,000 in the Airport Terminal Fund for the Purchase and Installation of an Overhead Rolling Grille (Gate) at the Restaurant. 4. Resolution No. 97-11 - Supporting Enactment of Kenai Peninsula Borough Ordinance No. 97-13 Which Increases the Cap on Taxable Sales from $500 to $1,000. 5. Resolution No. 97-12 - Awarding a Contract to Video Systems Plus for the Purchase of Seven Patrol Video Systems. 6. Resolution No, 97-13 - Awarding a Contract to Applied Concepts, Inc. for the Purchase of Seven Hand -Held Traffic Radars. 7. Resolution No. 97-14 - Amending Morrison Maierle, Inc.'s Contract for the Alaska Regional Fire Training Center Project to Include the Final Design Phase for the Not -to -Exceed Amount of $376,000. 8. Resolution No., 97-15 - Opposing Proposal D-AAC21.363 Upper Cook Inlet Salmon Management Plan to be Presented at the March Meeting of the Alaska Board of Fisheries. Additional information can be found at http://www.Kenai.net/city. The public is invited to attend and participate. Carol L. Freas City Clerk INFORMATION LIST Kenai city council Meeting of March 5, 1997 1. 2/19/97 Kenai City Council Meeting "To Do" List. 2. 2/97 Resource Development Council, Inc., Resource Review. 3. 2/26/97 Chief Morris invitation regarding Community Police Teams Training. 4. 2/27/97 Kenai Alternative School note thanking council for graduation donation. 1791-1991 CITY OF KENAI . "T Capda( ob 74larAd FAX--a TO FROM D / 210 Fidalgo, Suite 200 KeuaL.Alaska 99611-7794 Phone 907-283-7535 Fax 907-283-3014 r Date -2 / -,, !9 Number of Pages �at 3 753�, COUNCIL wl ITEMS DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS MUNICIPAL & REGIONAL ASSISTANCE DIVISION 0 333 W. 4TH AVENUE, SUITE 220 ANCHORAGE,ALASKA 99501-2341 PHONE. (907) 269-4500 FAX. • (907) 269-4539 P.O. BOX 112100 JUNEAU,ALASKA 99811-2100 PHONE: (907) 465-4750 FAX (907) 465-2948 0 P.O. BOX 348 BETHEL, ALASKA 99559-0348 PHONE: (907) 543-3475 FAX: (907) 543-4152 0 209 FORTY MILE AVENUE FAIRBANKS,ALASKA 99701-3110 PHONE: (907) 452-7126 FAX (907)451-7251 0 P.O. BOX 350 KOTZEBUE, ALASKA 99752-0350 PHONE: (907) 442-3696 FAX (907) 442-2402 0 P.O. BOX 790 DILLINGHAM, ALASKA 99576-0790 PHONE., (907) 842-5135 FAX (907) 842-5140 TONY KNOWLES, GOVERNOR Certified/Return Receipt Requested February 21, 1997 0 P.O. BOX 1068 NOME, ALASKA 99762-1068 PHONE: (907) 443-5457 FAX: (907) 443-2409 The Honorable John Williams Mayor City of Kenai RECEIVED 210 Fidalgo, Suite 200 Kenai, AK 99611-7794 1 E3 2 4 Dear Mayor Williams: " C� TY CLE, RE: FY 98 STATE REVENUE SHARING - DATA ELEMENTS The Municipal and Regional Assistance Division has received your municipality's FY 98 state revenue sharing application. We have determined that the City of Kenai is eligible for funding. Enclosed is a report showing the data elements which will be used to calculate your FY 98 payment. Please note that the Locally Generated Revenue element may change after our review of your municipality's audit or certified financial statement. Please carefully examine the accuracy of these data elements. You may appeal to the Commissioner, in writing, any of these data elements, except for population and full and true property value determinations. The deadline for appealing those data elements has passed (if necessa y, we ill make corrections to borough service area populations or full and true property values). An appeal must include supporting evidence and be postmarked within 30 days of receipt of this letter. Your municipality's payment under the FY 98 State Revenue Sharing Program will be issued July 31, 1997, provided all program requirements have been met. If you have any questions, please call Bill Rolfzen, Program Administrator, at 465-4733. Sincerely, I--,"V>74, Patrick Pol Director Enclosure 21-P4LH COUNCIL PACKET DISTRIBUTION COUNCIL MEETING DATE: Mayor and Council_ Attorney 000, Fire DepartmentCity Manager Police Department /� _ Finance /f Senior Center / Public Works Library _ Airport Parks & Rec. / _ Engineer AGENDA DISTRIBUTION Borough Clerk Chamber Assembly (3) _ HEA Public Wks. Sec. _ _ Animal Control_ Public Wks. Shop _ Dock (Season) Bldg. Maintenance STP Bldg. Official _ Legal Sec. Streets _ HEA Anchorage News _ KSRM Dan Conetta, KPB Cen.Labor Planning Dept. _ KVCC Bulletin Board ARCO EDD Kizzia KDLL DELIVER Council Packets to Police Department Dispatch desk. Clerk Woodford Clark Springer KebsdRM goO Kin 00-11, C9arion__,,e Commissions Airport(MK) Aging(MK) Library(MK) Harbor(KW) Pks & Rec. (MK) P&Z(MK) The Clarion picks their packet usually on Mondays. The portion ;,; the agenda published by the Clarion is faxed before 5:00 p.m. Home Page documents (agenda, resolutions and ordinances for public hearing) are faxed to Ed Sipple (n Friday afternoon.