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HomeMy WebLinkAbout1997-02-19 Council PacketKenai City Council Meeting Packet February 19, 1997 AGENDA KENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 19, 1997 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://vww.Kenai.net/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 Road and the Kenai Spur Highway. 7. *1996/97 Liquor License Continuance Protest/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 R. 1. Citizens (five minutes) 2. Council Page 3 of 3 MAYOR'S REPORT FEBRUARY 19, 1997 COUNCIL MEETING CHANGES 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. CONSENT AGENDA MAYOR'S REPORT REQUESTED BY: VICE MAYOR COUNCIL MEETING OF PAGE OF S V MEASLES BANNOCK BMALLEY WILLIAMS BOOKEY SWARNER MOORE Fi-l S V MEASLES BANNOCK SMALLEY WILLIAMS BOOKEY SWARNER MOORE S V MEASLES BANNOCK G SMALLEY WILLIAMS BOOKEY SWARNER G MOORE M S V MEASLES BANNOCK SMALLEY WILLIAMS BOOKEY SWARNER MOORE M S V MEASLES BANNOCK SMALLEY WILLIAMS BOOKEY SWARNER MOORE M S V MEASLES BANNOCK SMALLEY WILLIAMS BOOKEY SWARNER MOORE Suggested by: Parks & Rec. Directu- City of Kenai ORDINANCE NO. 1734-97 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $1,445 IN THE GENERAL FUND FOR THE WOMEN'S BASKETBALL LEAGUE. WHEREAS, the Rec. Department formed a women's basketball league; and WHEREAS, $1,445 was collected as team fees; and WHEREAS, money is needed for officials and league expenses. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Basketball Program Fees $1,445 Increase Appropriations: Recreation - Professional Services $1,445 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of February, 1997. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: Adopted: Effective: Approved by Finance: (1/24/97) kl February 5, 1997 February 19, 1997 February 19, 1997 C "/ Suggested by: Administratior City of Kenai RESOLUTION NO. 97-3 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA TRANSFERRING $2,500 IN THE GENERAL FUND FOR A CITY-WIDE COMPUTER NETWORK DESIGN STUDY. WHEREAS, it is the desire of the Administration to explore the possibilities of a City-wide computer network; and WHEREAS, a study conducted by a professional networking company resulting in a plan document would be most beneficial; and WHEREAS, money is available in the City Manager transportation account due to less travel. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following budget transfers be made: General Fund From: City Manager - Transportation $2,500 To: Non -Departmental - Professional Services $2,500 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of February, 1997. H. RAYMOND MEASLES, VICE MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance:,— (1/29/97) kl C-"'? Suggested by: Parks & Rec Directoi City of Kenai RESOLUTION NO. 97-6 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA TRANSFERRING $1,143.14 IN THE GENERAL FUND FOR PURCHASE AND INSTALLATION OF A WATER HEATER IN THE CITY GREENHOUSE. WHEREAS, Council approved water being added to the City greenhouse; and WHEREAS, money was never budgeted in the Beautification Buildings Account; and WHEREAS, money was budgeted for water installation in the Beautification Operating & Repair Supplies Account. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following budget transfers be made: General Fund From: Beautification - operating & Repair Supplies $1,143.14 To: Beautification - Buildings $1,143.14 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of February, 1997. H. RAYMOND MEASLES, VICE MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance:_ (2/5/97) kl Suggested by: Vice Mayor Measles CITY OF KENAI RESOLUTION NO. 97-7 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, SUPPORTING PUBLIC OWNERSHIP AND THE PRESENT MANAGEMENT STRUCTURE OF THE ALASKA RAILROAD. WHEREAS, the Alaska Railroad was constructed by the Federal Government from 1915 to 1923 as a public transportation system to open Alaska's Interior and foster development; and, WHEREAS, the State of Alaska purchased the Alaska Railroad in 1985 to bring this critical transportation link under control of Alaskans for the first time; and, WHEREAS, the Alaska Railroad accomplishes a dual mission of supporting economic development and providing vital public transportation services; and, WHEREAS, the Alaska Railroad Corporation Act of 1984, the Alaska State Legislature created a management structure that is accountable to the Legislature and Governor through the appointment and confirmation of board members; and, WHEREAS, the Alaska Railroad is successfully managed and operated by professional railroad managers and workers; and, WHEREAS, the Alaska Railroad Corporation Act enables the Alaska Railroad to be self-sustaining through retention of profits for reinvestment in capital improvements and maintenance; and, WHEREAS, the Alaska Railroad is meeting its mission to be professionally managed and self-sustaining, earning record profits in 1995 and 1996; and, WHEREAS, the Alaska Railroad has not received state general fund subsidies for operation or maintenance since coming under state ownership; and, WHEREAS, Alaska Railroad employees are not state employees, receive no state benefits, and are not part of the state retirement system; and, WHEREAS, the Alaska Railroad's success is due largely to its non -political management, its ability to respond to customer needs and its integration of freight, passenger, and real estate operations; and, WHEREAS, the Alaska Railroad, as a public institution, is an integral part of Alaska's history and future development; and, Resolution No. 97-7 Page 2 of 2 WHEREAS, the Alaska Railroad has one of the vital transportation corridors of 578 main line miles of track from tidewater at Seward to Alaska's interior City of Fairbanks; and, WHEREAS, the City of Kenai recognizes that even successful organizations must continue striving for improvement and that the Alaska Railroad is no exception. NOW, THEREFORE, BE IT RESOLVED THAT THE COUNCIL OF THE CITY OF KENAI, ALASKA, supports continued State ownership of the Alaska Railroad under the terms of the Alaska Railroad Corporation Act of 1984. BE IT FURTHER RESOLVED that the City of Kenai opposes any legislative or administrative proposals that would diminish the Alaska Railroad's ability to: • Manage its budget and finances according to accepted business practices; • Meet the needs of its customers in a timely manner; 0 Limit the Corporation's ability to generate sufficient revenue to be self- sustaining, especially by transferring Railroad lands to another entity. BE IT FURTHER RESOLVED that the City of Kenai encourages the Alaska Railroad's Board of Directors to actively solicit and incorporate recommendations from representatives of rail users, impacted communities, tenants, legislators, and other interested parties, and to develop long-range plans for improving and expanding railroad services. BE IT FURTHER RESOLVED that copies of this resolution shall be sent to the Honorable Tony Knowles, Governor, State of Alaska; Governor Bill Sheffield, Chairman of the Board, Alaska Railroad Corporation; and all members of the Alaska State Legislature. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of February, 1997. H. Raymond Measles, Vice Mayor ATTEST: Carol L. Freas, City Clerk ALASKA RAILROAD coicronnTiov corporate Address: P.O. Box 107500, Anchorage, Alaska 99510 327 W. Ship Creek Avenue, Anchorage, Alaska 99501 February 11, 1997 - RECEIVED 1 Executive Office (907) 265-2414 Fax (907) 258-1456 The Honorable John Williams FEB 1 2 1997 Mayor City of Kenai 210 Fidalgo Avenue, Suite 200 LKEN=AICITY CLERK Kenai, Al ska 99611-7794 Dear M iams: You mig t have heard reports in the media about legislation involving the Alaska Railroad. Some legislators want to sell the Railroad. Why sell a profitable asset of the state, the oniy transportation corridor between tidewater and Interior Alaska? The Legislature could use the Alaska Railroad as a successful model on how a publicly -owned asset ought to be run. Others want to transfer our lands to DNR and bring the Railroad under the Executive Budget Act. Giving half our lands away would cripple the railroad and its ability to fund its capital projects. Under the Executive Budget Act, we would lose the flexibility to meet our customers changing needs. Here are some of the facts. The Alaska Railroad is self-sustaining, accountable to the public through the Legislature and the Governor, and professionally run by railroad managers. Railroad employees are not state employees, do not receive state benefits and are not part of the state retirement system. We've made record profits for the past two years and we've made money nine out of 12 years of operation. Profits go back into the property —more than $100 million to date. A private company answering to outside stockholders might not provide some of the services we provide to individual Alaskans; service like the Whittier Shuttle and flag stop service to Hurricane. The Alaska Railroad is an integral pan of Alaska's economy. The Railroad is critical to the success of the MAPCO refinery in North Pole and to the Usibelli Coal Mine in Healy. Our interline service brings freight from across the country into Seattle where it's shipped on our barge service to the port facilities at Whittier. More than half a million passengers rode our trains between Seward. Whittier, Anchorage, Denali and Fairbanks. The Alaska Railroad has served Alaskans since 1923. In 1985 the State of Alaska purchased the Railroad for $22 million and put $10.9 million in to replace cash on hand that the federal government took as part of the deal. We've never come back to the Legislature for another dime. If someone tells you different, they are wrong. Several communities are adopting resolutions in support of the railroad and its present operation. I've attached a copy for your review. I'll be calling you in a few days to answer any questions you might have. Sincerely, r Bill Sheffield ((�� Chairman, ARRC Board of Directors The MOOR Railroad BACKGROUND BRIEFING JANUARY 30, 1907 EXECUTIVE SUMMARY The Alaska Railroad is a professionally -run, self-sustaining railroad serving ports and communities from the Gulf of Alaska to Fairbanks. Owned by the State of Alaska since 1985, the Railroad is overseen by a seven - member board of directors appointed by the Governor and confirmed by the Legislature. e 0 Under this management and ownership arrangement created and `0 0 approved by the Legislature in 1984, the Alaskans maintain control of a Southcentral Alaska's principal transportation corridor, retain 38,000 acres of land transferred from the federal government, and have the revenues V 0 needed to operate, maintain, and expand the line. ° w The Railroad is operated by professional railroad managers, requires no ° subsidies from the state treasury, and has no state employees. Y a HISTORICAL OVERVIEW PIPpM The Alaska Railroad was built by the United States government between 1914-23 as a way to open up and develop Alaska's westward Interior. It served as the focal point for the development of Anchorage and the Matanuska Valley, the Interior's mining districts' link to ocean transportation, a vital carrier of World War II troops and supplies, and principal freight line from tidewater during the Cold War construction boom and construction of the Trans -Alaska Pipeline. It remains one of the state's oldest and most important pieces of infrastructure for transportation and economic development. Aftb CmbIn the early 1980s the United States no longer considered the Alaska Railroad an important federal asset and sought to sell it. The State of Alaska saw an opportunity to gain Alaska control of the line. The Legislature approved acquisition of the line in 1984 specifically because: • The Railroad "is an essential part of the state's transportation network that may, unless preserved by state action, cease to be a transportation option in Alaska." (AS 42.40) The intent was to bring the line under Alaska ownership and direction, keep the profits in -state, assure that the line had the resources to operate safely and efficiently, and make sure the Railroad continued to serve Alaska businesses and communities as an engine of community development and economic growth. The transfer took place January 5, 1985. a `I Pu chm agroement The State paid the United States $22.271 million cash for the Railroad's track, rolling stock, and 38,000 acres of land. The United States also retained $10.978 million in the Railroad's cash -on -hand, in exchange for also accepting significant past liabilities. As pan of the purchase agreement, the Legislature replaced the nearly $11 million in operating capital, bringing the total cost to just under $34 million. Note: The Railroad has neither requested nor received any additional state money outside of the agreement and legislation approved by the Legislature in 1984. Pl► k owaNpP1Ysd 111MRA1111 r In bringing the Railroad under state control, the Legislature specifically created a structure that would avoid the liabilities and limitations of traditional public management, while maintaining the accountability of public ownership. The Alaska Railroad Corporation Act of 1984 created a state corporation c that is: o a • Accountable to the Governor and Legislature through appointment o a and confirmation of board members; o • Professionally operated by railroad managers who have the flexibility to a e negotiate their own labor contracts with professional railroad workers; a • Self-sustaining through retention of all profits generated by the a Y enterprise. a This 12-vear-old arrangement is one of the few examples of a situation in which government is, indeed. run like a business. The Alaska Railroad Corporation has the flexibility to meet the needs of its customers (such as refiners, tour companies, and construction operations) and earn a profit, which helps support vital public transportation services that do not pay their way. and would otherwise be dropped by an exclusively private, profit -centered operation. Note: Since 1984, the line has earned and reinvested nearly $100 million in maintenance and expansion of Railroad facilities. The structure also provides that major and minor expansion of Railroad operations — from line extensions to leasing of Railroad land — are viewed not just by how much money they may make for the corporation, but whether the action is consistent with community and state development goals and opportunities. This, in turn, is consistent with the findings of the Legislature expressed in the Alaska Railroad Corporation Act of 1984. MANAGEMENT The management structure of the Railroad is designed so that it may respond quickly to service and customer needs, changes in the economy, or business opportunities, while being accountable to the state's elected leadership and the public. B rid of Aecla ! As noted above, the Railroad is managed by a seven - member board of directors appointed by the Governor and confirmed by the Legislature. The board is configured. by law, so that: c 0 0 a 0 W a 0 a a Y a a �i • At least one member has substantial railroad management experience: • One member represents the railroad's employee unions. • Each judicial district of the state is represented on the board; • At -large appointees have substantial business management experience in Alaska. The intent is to have business, railroad business, and public policy interests all on the board. With this mix, it is possible for the board to make wise railroad business decisions, but with the leavening provided by broad Alaska public policy perspectives. gp&,vd rRr The board has the authority to hire a professional, chief executive officer outside the ranks of the state personnel system and political supporters, or even outside of Alaska itself. Pay and other contract terms are negotiated according to professional standards in the industry. The CEO serves at the pleasure of the board. All other members of the management team are hired according to the judgment and the needs of the CEO and the board. Performance is c measured on merit, not longevity or classification. Railroad managers are o paid at industry standards, out of the Railroad's own revenues. W 0 a The Railroad has had two CEOs under state ownership: Frank Turpin, o 0 who came to the Railroad after extensive upper -level management V experience in the oil industry, and Robert Hatfield, a professional railroad a 0 executive. — a Mr. Hatfield recently accepted a similar position with a railroad Outside. a The board is conducting a national search for a replacement. a 5 LADW The labor force at the Alaska Railroad consists of 470 full-time workers (seasonal employees bring the total to around 600 in the summer). Most are represented by one of five labor unions. In 1996 the Railroad completed negotiations with all five unions and long- term contracts are in place. Over time, the unions have demonstrated a willingness and ability to work cooperatively with management on contract measures that ensure the Railroad's safety, service objectives, and profitability. The Legislature and the state treasury make no contributions to Railroad payroll, benefit packages, or retirement and pension programs. Railroaders are not part of the public employee personnel system or the state public employee bargaining units. Railroaders are not part of the state retirement and benefits system c 0 w BUSINESS 0 a Pmfit The Alaska Railroad earned more than $8 million in 1996, the line's 0 second straight year of record profit. Current projections estimate a 1997 0 V profit of $7.3 million. o 0 In 12 years under state ownership, the Railroad has earned a profit nine 0 times. The only years in which it lost money were 1986 (primarily due to 0 Y .0 a weak economy in the state overall, plus costs incurred after serious Southcentral floods that wiped out bridges and washed out or weakened the roadbed), and 1993-4, during a scheduled management restructuring. The restructuring, which resulted in the elimination of a number of middle management positions, also resulted in one-time costs related to severance pay and other related matters. fAwasly heaOy In addition to the profits posted the last two years, other indicators further buttress the Railroad's financial good standing: • Increase in cash balances for the last three years; • Decrease in current liabilities due to improved cash flow; • No short-term borrowing in 1996; • Significant reductions in long-term debt in 1996, with more than half of the long-term debt scheduled to be paid off in 1997; • Improved equity position through improved earnings; • Significant increases in fixed assets. The Railroad's accounting is done in accordance with accepted accounting principles and railroad industry practices. KPMG Peat o Marwick audits the Railroad's financial records. 0 a $-fief By law, the Railroad's profits are retained by the line and o reinvested in capital improvements, maintenance, and other business 0 needs. o 0 Because the Railroad — like other rail lines — is a capital -intensive w Y business (locomotives, roadbed maintenance and repair, and other asset 0 1 maintenance), the Legislature specifically allocated operating profits to the Railroad so that it could be maintained without state subsidy. The profits generated by money -making aspects of the business (real estate, freight, and contract passenger car pulls) allow the Railroad to pay for operations that are important to Alaskans, but that lose money. Under current law, the Railroad may request an appropriation from the Legislature to subsidize services that do not pay for themselves. The Railroad has never asked for or received subsidies, relying instead on its profits to sustain services that don't support themselves. AGcdss to CWW The Railroad is a public/private hybrid, which gives the corporation a variety of options for both operating and capital loans. In addition to work with lending institutions directly on traditional business financing, the Railroad has options to issue bonds (with Legislative approval) and seek direct appropriations (which it has not chosen to do). As a public entity, it also has the benefit of access to tax-exempt financial c instruments. o ao Ag"t The health of the Railroad mirrors the health of the Alaska o a economy. Fully 75 percent of the Railroad's business is in hauling freight 0 such as gravel, oilfield supplies and chemicals, groceries and consumer s goods (linked to the Railroad's barge connections to Seattle). 0 • A third of the Railroad's freight revenue comes from hauling MAPCO Alaska petroleum products from North Pole to Anchorage under a 20- 1° year contract that expires in 2013; w • The Railroad hauls Usibelli coal from Healy to Fairbanks for heat and 0 a r) J� U power generation, as well as coal exported from Seward to Korea under a contract that expires in 1998. P s %*# About 15 percent of the Railroad's income comes from passenger services, primarily tourism -related pull contracts and seasonal service. In addition to the contract pulls for Holland America and Princess Tours, the Railroad operates seasonal general passenger service to Fairbanks and Seward. The Railroad is adding Anchorage -Whittier service this summer, working in tandem with the day cruise tour boat businesses that operate out of Whittier. The Railroad also provides year-round service for Whittier, using the shuttle system from Portage, and for roadless areas north of Talkeetna. The Hurricane Turn and Anchorage -Fairbanks Local (winter) are the only flag -stop services in the country, providing access and freight hauling for individuals and families along the line to the Interior. Rql er= While accounting for only 7 percent of total Railroad annual revenues, on a percentage basis, real estate contributes more to net income — literally, the bottom Mine — than rail operations do. The simple explanation is that real estate leases do not carry the same capital - intensive maintenance and repair costs as rail operations do. Because of its contribution to the bottom line, real estate revenue from the 36,000 acres of land owned by the Railroad is a critical piece of the corporation's overall health. It is difficult to envision any owner — public or private — able to earn a profit and provide the full range of services now provided by the Railroad without real estate revenues. a Fair -market -value leases on Railroad land along the line provide the bulk of the real estate revenue, along with revenue generated by the Whittier and Seward docks, and various permits. SAFETY, MAINTENANCE, ENVIRONMENT The Railroad's programs in these areas are a mix of solid, standard industrial practice, and initiatives generated by specific public or community concern. ftf* Safety for employees, customers, and neighbors of the Railroad is the line's principal operating priority. The Railroad's health and safety manager is the only company employee, other than the vice presidents, who reports directly to the Chief Executive Officer. The Railroad has a wide variety of on -going, high -priority safety, training and education programs for employees. The Railroad conducts a variety of programs — some of them supported c by employees on their own time — to educate people about safety G hazards such as walking or snowmachining on the tracks, failing to pay attention at crossings, and other potential hazards. o a 0 NMI �Otiiiw We believe the Railroad's assets and roadbed are in better V shape than they were at transfer, largely due to almost $100 million in 0 maintenance work and capital improvement under state ownership. 0 The Railroad spends $11 million a year on maintenance of 660 miles of a Y track, 192 bridges, 75 crossing signals, the roadbed, and other assets. An w additional 59 million is invested in maintenance of the cars and locomotives. Almost half of the Railroad's full-time workforce is primarily involved in maintenance and repair. This $100 million investment has come at no cost to the general fund and has required no state appropriations from the Legislature. This money has come from the line's operating revenues. The Railroad is maintained above and beyond Federal Railroad Administration requirements. And because the Railroad carries passengers as well as freight, the entire line is maintained to the higher. passenger -grade safety and operations standards. Safety and maintenance are directly linked. Yearly improvements include: • Installation of 40,000 ties; • Replacement of 20,000 linear feet of mainline rail; • Place 60,000 cubic yards of ballast (gravel) • Surface 150-200 miles of mainline track • Conduct 51.2 million in repairs and upgrades to bridges. 0 du' Under state ownership, the Railroad is seeking out and meeting higher standards of environmental protection, compliance, and efficiency. o a 0 The Railroad has removed tanks and soil at 60 former underground storage sites, voluntarily limits and controls air emissions in Anchorage, a 0 and does not use herbicides to control vegetation — a rarity in the industry. This is in direct response to public concerns. 0 Y Much of the post-1989 federal and state oil spill response regulation does a a not apply to railroads. Nonetheless. the Alaska Railroad has upgraded its spill response capabilities with response vans in Anchorage and Fairbanks, and with 12 caches of equipment and material along the line. Twenty-five key employees are trained in spill response organization and techniques — not just for oil and refined products, but in hazardous materials as well. The Railroad also has an aggressive set of waste management and reduction policies intended to eliminate certain additions to the waste stream, and to reuse materials whenever possible. For example, used ties are chipped and shipped to utility systems in Fairbanks to generate power. 9v9v cb sad itralvMMt While the Railroad has consistently maintained community partnerships and sponsorships through donations of cash and tickets, Railroad Week activities, and other outreach efforts, we believe that communication and outreach is an area in which the Alaska Railroad can use improvement. c Particularly, the line's managers and board need to make a stronger and o more consistent effort to keep the Legislature informed, as well as work with community leaders and local governments. o a a FIVE-YEAR STRATEGIC OUTLOOK Awdw Pig t 1W IOU Current projections suggest that 1997 net income will 0 be $7.3 million. This is a conservative figure that assumes freight revenue and expenses to be similar to 1996, but that passenger service will increase with the addition of new service to Whittier. Increases in leasing a Y and permitting activities will increase real estate revenues by a 12 approximately $500,000. Anew SWIWO to Whittler Slid GkTUVW In response to the growth of the day cruise tour business in Prince William Sound, the Railroad is adding daily roundtrip service to Whittier from Anchorage. While the current Whittier Shuttle is safe and dependable, the new service is targeted more for visitor industry needs and demands, and will complement the existing service. Passenger depots in Fairbanks. Denali Park, Talkeetna, Anchorage, Girdwood and Seward will be upgraded, replaced, or added. Abw bCM009 flMt The Railroad will phase out its older locomotives over the next few years, resulting in cleaner, more cost-effective, and more efficient service. Newer, more advanced, more powerful engines will allow us to use less fuel, have fewer locomotives, and reduce locomotive maintenance expenses. The Railroad will use conventional business financing — not e legislative appropriations — to acquire this new technology. o Systematic reduction of the Railroad's long-term debt over the last few years (including 1997), set the stage for the Railroad's ability to make this o a new investment. 0 TPfift j I AW Gommo*2*ff glpWt A series of technology -based 0 upgrades to the traffic control and separation system will improve safety, _ reduce operating costs, and more effectively manage train movement. 1° w Y This year, the Railroad will also begin working with the State of Alaska to w w 13 upgrade the Parks Highway microwave link from analog to digital. Afew &Wp =%to The Railroad's current contract for rail -barge service between Alaska and Seattle expires next year. After extensive review of proposals, the Railroad has selected a company that will build new barges, use new technology, move more freight in the same time, with fewer sets of equipment. Prom &W dOt,'rlf facE ies Both Whittier and Seward are targeted for significant improvements in the dock and port facilities to meet community needs and growth of the visitor industry. hba#-MwtW#jp&7siM Three opportunities for expansion of the Alaska Railroad are developing: • Extending a line from downtown to the Anchorage International Airport would eliminate bus transfers of visitors, providing better service for passengers and for major contractors; c • Adding a spur into Girdwood and the Alyeska Prince resort would o serve the expanding tourist destination opportunities there; 0 a • Development of coal deposits at Sutton would be enhanced by ` 0 extension of the line from Palmer to Wishbone Hill. 0 LW Mir Psi sir Three long-term opportunities for expansion are developing: • Access to Kantishna via rail would cost more up -front than a road, but a Y would likely be a better alternative from the standpoint of the w 14 environment and park management goals; • Partnerships with raining interests could lead to expansion from Nenana to the Northwest Arctic: • A rail link from Fairbanks to the pipeline corridor during construction and operation of a North Slope natural gas pipeline is an attractive expansion option from the Railroad's standpoint. In all cases, expansion will occur when market conditions will support it, when communities and other public interests have their concerns met, and when revenue from operations will support the expanded line. The Alaska Railroad's status positions the line to play a key role in the development agreements with both business and public agencies, gain access to public and private financing, and be responsive to public and legislative concerns. a 15 Alaska Railroad Corporation M 6F} 8 O c 6 0 -� 2 .c o co -2 Annual Profit Un-audited 4-10 nnQ QnQ Rail Operations vs Real Estate Revenue rcan wFalauvna Source of Contribution to Net Income Real Estate — - Rail Operations 9072591456 ALASKA RR EXEC AFC 9e9 P01 ALASKA RAILROAD COPPOUTIbm P.O. Box 107500, Anchorage, Alaska, 99510 1/ z TO: Ms. Carol Freas City of Kenai FROM: Governor Bill Sheffield Chairman, ARRC Board of Directors Executive Offices DATE: February 18, 1997 No. of Pages (including cover sheet) _Q_ If you have any questions or problems with transmittal, please call (907)265-2414. Our FAX number is (907) 258-1456 MESSAGE: Attached please find a copy of my editorial, an article written by Brian O'Donoghue from the Fairbanks Daily News Miner, and the Resolution that the Seward City Council approved on February 10, 1997. If you have any questions please call me. CQnfidentiallty Notice This transmission is intended only for the use of the person to whom it Is addressed and may contain information that is privileged and confidential. if you are not the intended recipient, you are herby notified that any disclosure, distribution, or copying of this transmission or the information in it is strictly prohibited. If you have received this transmission in error, please notify us immediately by telephone, return the original, and retain no copies. Thank you. Our phone number is (907) 266-2403. Our fax number is (907) 268-1456. Quake)• Semm (907) 274-IW Datr FEB 121997 Anchorage Daily News Client No. Z V� _ Proposal to ait y1e e496 44" sell Alaska Railroad is an idea that's completely off-track By BILL SHEFFIELD For the second straight year, in 1996 the Alaska Railroad earned a record profit — more than $8 mil- lion. People are surprised when they find out that something owned by the govern- ment actually works right and makes money, but It's hard to argue with the bottom line. Yet for the sec- Sheffield and straight year, some legislators are talking about selling off one of the state's most historic and criti- cal transportation assets in the name of "privatization." In this case, they're off-track. I agree that the' Legislature should find ways to put private sector management strategies into administration of the state's busi- ness. But they ought to use the rail- road as a successful model, not as a target. There are three things that are important to remember about the Alaska Railroad: • The Alaska Railroad is not a state agency. • The Alaska Railroad does not take a subsidy from the state trea- sury. e The Alaska Railroad makes money. This is the way a publicly owned asset ought to be run. It is self-sus- taining, accountable to the public through the Legislature and the governor and professionally run by railroad managers, not state employees. The railroad has 525 miles of track, 470 of it the main line from Seward to Fairbanks. It was built by the United States from 1915 to 1923 as a way to open tip and help develop Alaska. The federal gov- ernment ran the line until 1985, when Congress decided it was time to unload what was then an aging, government -run freight and pas- senger line. The Reagan adminis- tration at the time thought that pri- vate business could do a better job of running the line. A lot of Alaskans — including me, and I was governor at the time — agreed, But we were concerned that this important transportation link, not to mention 39,000 acres of federal land, would be sold to an- other absentee landowner unac- countable to the Alaska public. Instead, we suggested, why not have the state buy the line, keep it Alaskan but make sure that the railroad was run by private sector rules with professional managers Instead of politicians at the wheel? We negotiated just that sort of deal and the Legislature autho- rized purchase of the tine for $223 million, plus start-up capital of $10.9 million (to replace the cash on hand that the feds took with them as part of the deal). We haven't taken — or asked for — one extra nickel of state gener- ated funds to operate or maintain the railroad since then. If someone tells you different, they're flat wrong, The $100 million spent on maintenance and improvements for the Alaska Railroad since 1985 has come entirely from the rail- road itself. The wages paid to state employees and managers come from railroad revenues, not from the state treasury. Meanwhile the line has become critical to the success of the MAP - CO refinery in North Pole (hauling fuel to Anchorage distribution points), the Usibeili coal mine (hauling export coal to Korea and coal to Interior power plants) and the growing tourism business in Alaska (hauling passenger cars for the major tour lines). In addition, under public owner- ship, the railroad still provides freight and passenger service to Individual Alaskans, whether that service makes money or not. A pri- vate company, answering to Out- side stockbrokers instead of Alaskans, can't provide that same guarantee. We're here to provide service, aid expansions and make a profit, which we've done and will contin- ue to do given the chance. The money we make stays in Alaska. The choices we make about expan- sion, partnerships, real estate de- velopment and other business mat- ters are geared to helping other Alaska businesses and commum- ties succeed. This seems to be the kind of arrangement Alaskans want. In a public opinion survey we conduct- ed to help us find ways to commu- nicate better with Alaskans, people said they wanted the railroad to earn a profit, to be run without state subsidies and to stay in Alas- ka control. . That's exactly what we're doing, Selling the railroad to Outside in- vestors will only break what we fixed when we brought home the Alaska Railroad from Washington, D.C., bureaucrats 12 years ago. O 54 ShaNfield served as eave►wr of Atas- ka from 196ZG& He is currently the chair- man of the Alaska Ra6road Corp. board at directors. D r I) C) N D rn X m n 0 Tl W OD W m N rn m Co W -J m U1 9072581456 ALf '" recommendations to the ooaru mnwg �:bsist��c� �� �► trapping and �Sl�ing i�auea on f� bli l rice Regional derm pu c a council members are resmepte of their respective regions and are knowledgeable of local and regi- onal subsistence issues and needs. For an application Packet or for more information, contact the Office of Subsistence Ma- nagement toll -free at 1 (800) 478- 1456 or in Anchorage at (907) 786-3888. Hearing -impaired indi- viduals may call (907) 786-3309 (TTY available). Meeting to discuss disabilities Families experiencing disabili- ties are invited to a meeting on Tuesday, Feb. 18, 2:30 m. at 751 Old Richardson highway. Suite 203. There has been some interest in support groups for ce- rebral palsy, DOwn's Syndrome - deaf and hearingg impaired, ECMO, uthma and ADD adults. Call 456-6770 for more informa- tion. Chamber music nn rvcr` nC(` qGq pp7 FFP 1R '97 17:05 Leave railroad alone, borough teHslawmEkers concert canceled The Family Chamber Music Concert scheduled for 3 p-m. Sunday at Noel Wien Library has been canceled. Lathrop drama to be 'signed' Lathrop High School's Sa- turday performance of "The Crucible" by Arthur Miller will be American Sign Language school's In- terpreted. The hool's drama de- partment production also plays tonight Show time is at ?:30 both mats. Admission is $3. Poker Fiat rocket studies aurora A 73-foot-tall rocket was launched from Poker Flat Re- search Range at 11:36 p.m - Monday to study the aurora. The four -stage rocket flew nearly 300 miles high through brilliant au- roral arcs and then splashed down as scheduled at 11:59 p m. in the Arctic Ocean, where scientists do not plan to recover it. About a dozen instruments in the rocket payload. including three that had never before been flown, successfully measured electrical currents in the aurora and radio emissions surrounding the aurora. ey BRIAN o'DONOOHUE Staff Writer A resolution urging lawmakers to keep their hands off the throttle of the Alaska Railroad passed the Borough Assembly in a unanimous vote Thursday. The vote matched the recom- mendations of several local busi- nessmen, who testified about the railroad's importance to the Fair- banks North Star borough. "I'm a former trucker," Frank Chapados told members of the as- sembly- "I know what happens. If there's no competition, watch out.,. Last year the Legislature passed a bill directing the state to conduct an appraisal of the Alaska Railroad's assets as part of a study weighing the merits of a possible sale. Gov. Tony Knowles, D-Anchorage, vetoed the measure, which opponents compared to placing the railroad on the auc.ior- blocks. This year legislation is being considered that would transfer lands controlled by the state- owned railroad to the Alaska De- partment of Natural. Resources. Lawmakers are also considering stripping control of the railroad's budget from the quasi -indepen- dent corporation's appointed board. Chapados, a former member of the railroad board, compared the land t-an.sfe_. which would re- duce railroad revenues by half, to "decapitating" the currently pro- fitable state rail line. Johne Binkley, a former law- maker and current member the railroad board, described tha legislation as a shortsightedsubsidies, likely to require state and endangering a Precious public lead asset. I in today's political climate you could never assemble that corridor, said Binkley, referring to the railroad -owned parcels linking the interior to tidewater in Seward. "To sell something like that is tantamount to selling the Yukon River." Jeff Cook. spokesman for MAPC`O, said the railroad's cur- rent management has come a long way in overcoming problems that once had operators of the North Pole refinery exploring costly alternatives for delivering its products to Anchorage. "It's, run well. They know how to partner with their customers - Let's keep it," Cook said - Assemblyman Guy Sattley asked what happened to the re- finery's pipeline proposal• As recently as three years ago, according to Coots, MAPCO was so upset with the railroad that his company was in the process of collecting necessary pereui Nto build its own pipeline ow MAFCO has nothing but praise for the railroad's tracking and handling of daily cargo averaging 70 tanker care of fuel, he said. "We aren't even talking about a pipeline now," said Cools, ad- ding that rail cars actually pro- vide more fln�ribility for the refinery, which produces several of types of fuel. ;Z—«--9--�- �rrt�S^.Ov s- �w gs- M�l.1 ESL Sno A snow -cc reflects the 9072581456 ALASKA RR EXEC OFC 989 PO4 FEB 18 '97 17:06 CITY OF SEWARD P.O. Box 167 5fYY4 RDI MAN 9W v0 February 13, 1997 The Honorable William Sheffield, Governor Chairman, ARRC Board of Directors LO. Box 107500 Anchorage, AK 99510 • Main Office (907) 224-3331 • Police (907) 224-3338 • Harbor (907) 224-3138 • Fire (907) 224-3445 • fax (907) 224-3248 u��� YgG4Cn`.i pf �6i ^fr. c> FEB 1 �:)"ECUTNV- 81997 c"„q5 ter_ e� ian Ir!#o j piled -- OPPOSITION TO CHANGES IN THE STATUS OF THE ALASKA RAILROAD At its meeting held February 10, 1997, the Seward City Council approved Resolution No_ 97-023 which opposes certain changes in the status of the Alaska Railroad. Seward is directly affected by the Alaska Railroad and any changes could have significant impact to the community. The Railroad is used throughout much of the state for shipment of freight, petroleum products, coal, and for transportation in the tourism industry. A copy of the resolution is enclosed_ Thank you for your consideration. Sincerely, The City of Seward Betty C stian City Clerk Office Assistant Enclosure 9072581456 ALASKA RR EXEC OFC 989 P05 FEB 18 197 17:07 r- A 09, 4.9 - CITY OF SEWARD, ALASKA RESOLUTION NO.97-023 A RESOLUTION OF THE CITY COUNCIL OF THE..CfrV OF SEWARD, ALASKA, OPPOSING CERTAIN CHANGES IN THE . STATiJS OF THE ALASKA RAILROAD WHEREAS, the Alaska Railroad was purchased by the State of Alaska to encourage its operation for the benefit of the citizens of Alaska; and WHEREAS, currently, a. Board of Directors, appointed by the Governor,. conducts the Railroad's operations independent of other state activities as . a . for -profit .business : employing professional.private.sector railroad managers and well -trained, .highly..quaiifed workers who negotiate their contracts outside of state payroll and retirement systems; and WHEREAS, under an independent Board of Directors, the Alaska Railroad has turned a profit for nine of the last eleven years and, in 1996 achieved an annual profit of'over eight million dollars, all without state or other subsidies, and it has demonstrated during this short period that the State of Alaska made good management policy and operational decisions when it initially set up the Alaska Railroad; and WHEREAS, notwithstanding the benefits and success of the Alaska Railroad outlined above, certain efforts are being made within the State Legislature to change the current status of the Alaska Railroad; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that. Section 1. At this time, the City of Seward opposes any legislative or administrative effort to: 1 _ sell the Alaska Railroad to a private operator; 2. force the railroad to operate under the Executive Budget Act, thus exposing it to the political process; or 3. take or control Alaska Railroad land for the following reasons: 1. If the Alaska Railroad were sold to a private operator: a) the State could lose up to S 147 million in payments for fiber-optic cable right-of-way; b) the private operator may not operate the Railroad in as benevolent a manner as its is currently operating, with "flag" stops, special agreements with large corporations and the University of Alaska, land use provided for recreational and scenic purposes, and care for the desires of the State's residents; and c) the private operator/company may not be willing to spend appropriate funds for maintenance, repair and expansion. 9072581456 ALASKA RR EXEC OFC 989 P06 FEB 18 197 17:07 CITY OF SEWARD, ALASKA RESOLU DON NO, •0� 2. Should the Alaska Railroad be operated under the Executive Budget Act, it would be subject to political pressures and its operational flexibility would be severely limited. The Railroad could no longer operate at a profit as it has over the past eleven years since its history of profitability is tied directly to its ability to run like a successful business. Swift reaction to changes or events are not possible under the Executive Budget Act Many people feel that private operators control public services better than government. If that is true, we currently have the best of both worlds - The Alaska Railroad is being operated like the private sector while retaining its public responsibility. 3. Removing the control of railroad land from the Alaska Railroad Corporation would be the beginning of the end for the Railroad. The federal goverment realized that it takes railroad land holdings to successfully operate a railroad, not only for the actual operation, but also to provide income from leaseholders. When the State purchased the Railroad, both the Governor and the Legislature not only wanted the Railroad to run like a private business, they insisted that the land be transferred to the State along with the actual track, equipment and moving stock. The Railroad continues to responsibly develop its land holdings, creating vital income. Section 2. BE IT FURTHER RESOLVED that copies of this resolution shall be sent to the Honorable Tony Knowles, Govern or Alaska; Governor Bill Sheffield, Chairman of the Board of the Alaska Railroad Corporation; and all members of the Alaska State Legislature. 5ection 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 1 Oth day of February, 1997. AYES: Anderson, Bencardino; NOES: None ABSENT. None ABSTAIN: None ATTEST: THE CITY OF SEWARD, ALASKA Clark, Crane, Keil, King Mayor �-5 Suggested by: Administration CITY OF KENAI RESOLUTION NO. 97-8 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, 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. WHEREAS, the following bids were received on February 13, 1997, for the above referenced fuel and service: Furnish and Deliver Fuel (Dock & Generator Tanks) Bidder: Doyle's Fuel Last Years Bid Analysis Unit Price x Quantity = Total Diesel #1 $1.000 x 1,409 gal. = $ 1,409.00 Diesel #2 .945 x 43,714 gal. = 41,309.73 Gasoline .990 x 6,200 gal. = 6,138.00 Grand Total for Bid Analysis ................................................. $48,856.73 Bidder: Kenai Airport Fuel Service Last Years Bid Analysis Unit Price x Quantity = Total Diesel #1 $ .995 x 1,409 gal. = $ 1,401 .96 Diesel #2 .960 x 43,714 gal. = 41,965.44 Gasoline .985 x 6,200 gal. = 6,107.00 Grand Total for Bid Analysis...................................I.............. $49,474.40 WHEREAS, the following prices are the posted rack prices at Tesoro on February 13, 1997: Diesel #1 Posted Rack Price $ .905 (Tesoro) Unleaded Diesel #2 Gasoline $ .845 $ .890 WHEREAS, the unit price for fuel will fluctuate both as an increase or decrease at the same rate as the posted rack price at Kenai Tesoro, and WHEREAS, the recommendation from the Public Works Department is to award the contract to Doyle's Fuel Service, Inc. for the prices quoted in their bid, and WHEREAS, the Council of the City of Kenai has determined that Doyle's Fuel Service, 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 Doyle's Fuel Service, Inc. for the amount of $1.00/gal. for diesel #1, $.945/gal. for diesel #2, and $.99/gal. for unleaded gasoline for Furnishing and Delivering Fuel to the City Dock and City Generator Tanks. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 19th day of February, 1997. H. RAYMOND MEASLES, VICE MAYOR ATTEST: Carol L. Freas, City Clerk Written by Public Works: Approved by Finance: 2/97/kw MEMORANDUM TO: Rick Ross, City Manager , ., FROM: Keith Kornelis, Public Works Director 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 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: 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 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, 5.95/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 19th day of February, 1997. H. RAYMOND MEASLES, VICE MAYOR ATTEST: Carol L. Freas, City Clerk Written by Public Works: Approved by Finance: 2/97/kw MEMORANDUM TO: Rick Ross, City Manager , �_ FROM: Keith Kornelis, Public Works Director(�� 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 KENAI PENINSULA SOROUGI 144 N. BINKLEY SOLDOTNA, ALASKA • 99669-7599 y Y BUSINESS (907) 262-4441 FAX (907)262-1892 MIKE NAVARR` MAYOR February 7, 1997 Alcoholic Beverage Control Board Attn: Donna Johnson 550 W. 7th Ave. Anchorage, AK 99501 RE: 1997 Liquor License Continuance Protest. - THE DUCK INN --�r THE UPPER DECK Dear Ms. Johnson: Please be advised that on February 7, 1997, the tax delinquencies noted in the Borough's letter of protest dated January 31, 1997 have all been resolved. At this time, we wish to withdraw the protest against the continuance of this license for the 1997 license year. Please note that remittance of past due taxes does not remove any other grounds for protest the Borough might assert in addition to tax delinquency. Sincerely, Gina Derleth Delinquent Accounts cc: Applicant Carol Freas, City of Kenai Clerk Gaye Vaughan, Kenai Peninsula Borough Clerk CITY OF KENAI it Od CCIt.2," 4 414aalza 11 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 by9hri ��.eioar IIIIII iv9z January 31, 1997 Ms. Donna Johnson, Records & Licensing Alcoholic Beverage Control Board State of Alaska Department of Revenue 550 West Seventh Avenue, Suite 350 Anchorage, AK 99501 Re: 1996197 LIQUOR LICENSE CONTINUANCE PROTEST The Upper Deck Lounge The City of Kenai hereby notifies the Alcoholic Beverage Control Board of its protest to the 1997 liquor license continuance for The Upper Deck Lounge. This protest is based on the following obligations arising wholly out of the operation of the licensed business: The Upper Deck Lounge: Business has not registered for Personal Property Tax for year ending 1996. This protest is made pursuant to KMC 2.40.010 and 2.40.020 which require the Kenai City Council to protest license applications if the applicant is not current in obligations to the City of Kenai and pursuant to AS 4.11.330(b) and 4.11.480(a), which allow protests for unpaid taxes and/or obligations arising out of the operation of the licensed premises. The applicant is being advised of this protest by copy of this letter sent certified, return receipt requested. The City of Kenai will withdraw its protest upon payment of the above -noted obligations. Please note that remittance of the above -listed past due taxes and/or obligations do not remove any other grounds for protest the City might assert in addition to the above -listed obligations. CITY OF KENAI Caro . Freas City Clerk elf cc: Gina Derleth, Kenai Peninsula Borough The Upper Deck Lounge FEB-12-1997 11:17 FROM KPB FINANCE TO KENAI PENINSULA BOROL 144 N. BINKLEY � SOLOOTNA, ALASKA • 99669.7599 • BUSINESS (907) 262-4441 FAX (907)262-1892 February 11, 1997 I i �IIIKE NAVARRE MAYOR I� City of Kenai COAP V Attn' Carol L. Freas, City Clerk 210 Fidalgo Ave., Suite 200 Kenai, AK 99611-7794 RE: Liquor License Renewal i Peninsula Moose Lodge - Beverage Dispensary ' BPOE Elks Lodge #2425 - Club I' Dear Carol: Please be advised that the Borough will have no objection of the above noted liquor license renewal(s) based upon unpaid taxes. �I The sales tax account registered for the business is filed through the required filing Oe�ods and the business personal tax accounts and/or applicable individual tax accounts) are in compliance at this time. Please send us a copy of your City Council approvallobjection letter for our records. IT,kank you for your cooperation in these matters. Jrely, Der eth jf Delinquent Accounts I' ,f I iI �l TOTAL P.01 STATE OF ALASKA DEPARTMENT OF REVENUE ALCOHOLIC BEVERAGE CONTROL BOARD Carol Freas, Clerk City of Kenai 210 Fidalgo Suite 200 Kenai Ak 99611-7794 Dear Ms. Freas: RECEi v i.:v �997 ,.t KENAI CITY CLERK TONY KNOWLES. GOVERNOR 550 W. 7TH AVENUE, STE. 350 Anchorage, Alaska 99501-6698 Phone: 907-277-8638 Fax: 907-272-9412 January 23, 1997 We are in receipt of the following application(s) for renewal of liquor license(s) within the City of Kenai. You are being notified as required by AS O4.11.520. Additional information concerning filing a "protest" by a local governing body under AS O4.11.480 is included on page two. CLUB Peninsula Lodge #1942 CC: KENAI PENINSULA BOROUGH Al"o'"'"ka LIQUOR LICENSE APPLICATION PAGE OF AAlcoholichAlcoholic Beverage cono-a Bow 650 W. orage.ge, Alaska 99501 Avenue, Suite350 Anchor(Please read separate Instructions) Bend Prb t and 4 b the ABC fiord. s07) 277.8638 -- ' "l C,,' Keep Pan a for your ales. . t i The application In fpr: Ieherk one) [i Two Year ❑Seasonal -Dates of operation not to exceed 12 moss. , SFr'TION A. LICENSE INFORMATION. Must b-co-cerealoraktyoes of sppikalbns. T WlcaOon: ❑ New License I".-- / C_Q, / &ahRe Reference j For License Years1 Federal EIN Seo.M.11. - . + cy 4s� I i?USuh�� Lleen" Fee, •.^ Filling Fee: $ u C. ❑ Withinyl tirwcpMty (spsafy) ► ❑ Outside unicipanty, ❑ Renv" i _ Current Liquor License lumber it renewsfs the license been exerciso-ef active at least 30 eight -hour days during a ing calendar years? (AS 04.11.330(3)) Penalty (it applicable) $ ❑ Transfer of License Holder ❑ R°Relocation❑ 9 _` y %, _ 4 9 4 If no, application YAN be denied unleas written r*Ww for C1 YES www ofdver.eon a approved by the Alrohok Bwsties NO control Boom. Total Submitted 5 �� tl Entr applkanys or trarreferw's name and meting address as It should appear on the seethes: � Community CouncY Name and Melling Address (Sss Instructions) J is833 STnir niwa,• 12 :' r _ 2 :0 Fides City PO Eo__ 190_ Kerc- iL°, 996'.: BUeanees PIIOM NVrtb«(s). ❑ THIS IS A NEW MAILING ADDRESS 9C 9 i i . SECTION B. PREMISES TO BE LICENSED. fwacbecompleted for New and R•ioean«r e. Name to be used on pudic sign or in edvemring to identsy premiew Is location of premises greeter than or leas then 50 miles from the boundaries of a I municipality Ihrcorporated city, borough or untilad munkipaNty)? Closest School Grounds: Olebence measured under: Closest Church: ❑ AS O4.11.410 OR ❑ Greater than 50 miles ❑ Leas than 50 miles ❑ Not Appliosde ❑ Local Ordlnence No. Premaes to be licensed is: ❑ Plans submitted to Fire Marshall ❑ Existing FsOfty ❑ New Budd (Required for new end proposed bultlings) ❑ Proposed Buadnd ❑ Disgnam d Pr«rssss Attended Required for all New and fieloei adn ne) 1ECTION C. RENEWAL INFORMATION. Must be comoieied nor Renewal applications. Has licensed premises where atcoholic beverages are Has the statement of financial interest changed from the PACKAGE STORE. Is this a renewal of the annual sold, served, consumed, possessed and/or stored men last statement submitted9 notice rewired under 16AAC 104.645 to stile akohok changed from the last diagram submitted? bevrapes in rasponss to wren ordw ? ] YES © NO ❑ YES ❑ NO ❑ YES ❑ NO S' 'ON D. TRANSFER INFORMATION. Mue+ be comoeered for Tr. is of License Hollow and Relocation applloadore only. L nteryTransfr.AOadrdoanleirai it evfoencevotaurundrASo4.11.57o. ❑ Rege4ar Transfer. Any Instrument executed nnrder AS O4.11.670 for purposes of applying AS O4.11.360(4)(B) In a ts[r Involuntary trine+«. must tie tied wth this eppNcallon (15 AAC 104.107). Rest or personal prorxerty conveyed elm this transfer it: (AOech extra sheets if necessary) - - Nernew and MSNIng Address of Current Lkenese(s) I BEFORE TRANSFER, Doing Business As: (Business Name) BEFORE TRANSFER. Street Address or Location SECTION E. CORPORATION INFORMATION. +erg be oonoteted s epp iewt or co oWicant is a corporation. (AS O4.11.390) Corporate Name Dokg Business As (Business Nam) Date of Incorporation in Alaska ✓eIlli:7;-- -c,1?,e _�- .!)('i:_ _ _ r Y'" _ _tee ;10" iCl; 1C�i' Melt" Address Street Address or Location of Businsee ., y .,— City, State. Z)p Code Gay and Stec Corporate Oft* Plane No. Is the shove named corporation in good standing wan me Stale of Registered Agent (Name and Ailing Address) Age ars Alaska RealOerx.T AlaDepartment Mts, Deparent of CommEconomic Commerce old Econoc Development? C . - . ..,. S : C L e Years: Msmnths: Agernta Pherne No. YES ❑ NO S t -_ ° G _ - _ 5'_ _ -% CORPORATION DIRECTORS AND 1TTOCKHOLDEIta 111ee additional elitists a netessery) or 8harae of Full Name (Do not uss InI1Ws) Hone Address Date of Birth Ownership oienn r.vdee:. :iCG _ 3,-: 3 , ,. _.-_ . AK 49611 G' has _ _ _ 99611. f:(..1tic! J. - - !LL'. 9961_ .99, , Tire ,REA OFFICE USE ONLY License Number Dete Approved DkedlWa Bq,n.e,re omn urwl rags , tnev ono) ALASKA LIQUOR LICENSE APPLICATION PAGE 2OF2 SECTION F. INDIVIDUAL/CORPORATE OFFICER INFORMATION. The folw" Inromueon mtwt be provided for each applicant or Corporate officer. it the appecant a co-apperantt r • nsroorstlon. the officers listed must ahctude the President, Vbe-0rwYdent. 9ecreeary and Tnwur•r. Uw addltlonal papw r necwwry. Full Nam• IDo not use kM1W) Full Name (Do not w Infidels) I,AaNka Address tiy�yg Address;1 at•. Zip Code CRy, State. ZIP code _ A!- Qc^__ Kea=: 9963. Home Address (M different from mating adesss) — NorAddress (s dRarenf from mating address) _. - . ! t 'file 15.5 SDcr Hiwa-• "i1e .5 Sour iiiwa-: seer 1.an.e Date d BIM Horn• Phone work Data of Bkfn Fla, Phone work Phone 07/21/33 283-2695 283—i09° 04/10%3< 203-4031 Length of Alaska Roadway napprcrtt inacorporstbn. IdWit"y itr• Corporate office you Length of Alaake F--j If appYcant is acorporation, kt•ntlly the corporate office you Years Months hol hai veers Matti 43 Governer 4 Past Governor Full Nam• (Do not use kiRlals) - _-_ __--.__ . (Do not U" InsWs) Jack Koller Lana bas%ei e'WNVAddress Malling Adtrew _ _. 1137 lnu_ Avenu- --- —------- P. -. n--: --- City, state. ZIP Code City. state. Zip Cade Kenai' AK 9901: Kenai K 99611 Nome Address (it erterent trhxn ntallkg eddr•ss) Rana Address (s efferent from m.kkg address) 407 hlc inlr, -,enai 99611 Doe of Bkv+ Ffonte Phone work Phone Date of Birth Home Phan• work Pthorw aJ! 35 f 34... —`' vtLi 'S ;3-94c L•tgthotAleake R•Ndwtcy kaookentleacorporation,klemllylh.corponaeomdyou Length of Atka Residency ffeppNwrtt is scorporatbn. Identify Meconporet•offloa you Years ten Monts Years Mo hold. hold. �!. 7 r L'._srra'.C— - JumiOS i3OVernor StUilluN fa. INUIVIUUAL/CUHPUHATE OFFICER BACKGROUND. MbeCecompleedroreltypwaappicetbru. Dow any IrdNidual or ooroorre once named athov now he" "direct or Indirect Interest in any other akbholk: b•ver age business licensed In Alaska of any oMw state? Q NO ❑ YES If you, give state, name of business, and address. 'qr having filed or since filing of the last application• has any individual or corporate officer listed aoove been convicted of a felony a violation of AS 04. or been convicted' ensee or manager of licensed premises in another state of the liquor laws of that state? tv NO ❑ YES If yea. Plaawn on separate Meat of paper. SECTION H. DECLARATION. Must t» reed end C• Ill"d oy own applicant I declare under penalty of perjury that I have examined this application, including the accompanying schedules and statements, and to the best of my knowledge and belief it is true, correct and complete, and this application is not in violation of any security interest or other contracted obligations. I further certify that I have read and am familiar with Title 4 of the Alaska statutes and its regulations, and that in accordance with AS 04.11.450, no person other than the applicant(s) or licensee(s) has any direct or indirect financial interest in the licensed business. I agree to provide all information required by the Alcoholic Beverage Control Board in support of this application. If application Is for a Beverage Dispensary or Package Store license, I certify that each applicant named on this application has resided in the state of Alaska for at least one year prior to the date of this application; and/or the applicant Is a corporation registered and qualified to do business In the state of Alaska for one year prior to the date of this application, or all of the shareholders have resided In the state of Alaska for at least one year prior to the date of this application. SIGNATURES OF CURRENT tICENSEE S) (APPLICANTi SIGNATURES OF TRANSFEREE(S) ,Strbar.Ybed rid •tom b tisfore m• tli �ir� �s+. Subscribed and esom to before free, this deya�/�i��/isi_�L� .i- 19 yam_ _. ' ..(.� 7 / ; '1_ , -- d.Ya . 19 firs.. . .. _ NOTARY PUBLIC IN ANDfOR ALASKA '//� -adnbn eipkes Y — "�' ! NOTARY PUBLIC ea AND FOR ALASKA c My ^=n —a C ] :c. ddrr.rtt..lor, _ Forth 04-901 Page 2 (Rev GM) COUNCIL ON AGING January 31st 10:30 AM Agenda Approval Minutes from Prior Meeting Old Business 1. Senior Center Town Meeting 2. Survey Report 3. Update on Assisted Living Housing q. F,elF"b 01,17 New Business 1. Introduction of New Board Members 2. Hospital Presentation/Resolution/11am 3. 4. Person Wanting to be Heard COUNCIL ON AGING JANUARY 31, 1997 ***MINUTES*** Members present: Sam Huddleston, Roger Meeks, Betty Nelson, Joyce Billings, Georgetta Funk, Al Pease Members absent: Joanna Hollier, Arlene Enfield, Peggy Arness Others present: Councilwoman Swarner, Senior Center Director Pat Porter, Administrative Assistant Marilyn Kebschull Roger Meeks introduced Sharon Anderson of Columbia Health Care. Anderson gave the board a background of her personal life and how she moved to Alaska. Anderson advised she works for Columbia advising they own Alaska Regional Health Center in Anchorage and the V.A. Clinic in Anchorage. Anderson stated she is past president of Columbia and now works in a corporate position with Columbia. Anderson noted that on Wednesday there is a work session at the borough where Columbia will present options for the hospital. Anderson shared information from a handout she had provided to the members. Anderson explained how hospitals are accredited advising the Alaska Regional Hospital was accredited with the highest possible accreditation. Anderson stated they are committed to quality nationwide. Anderson added that Alaska Regional has received the high accreditation twice in the past two years and the only hospital in the state to do so. Anderson stated that quality and patient satisfaction are number one on their list. Anderson continued stating they have been working with other hospitals nationwide who are going through similar processes as the borough is currently going through with the local hospital. Anderson stated they have done leases with other facilities and that is one option the borough is considering. Anderson stated they have also owned part of the facility as another option. Anderson stated they have provided management to facilities but prefer to have equity. Anderson stated they have reinvested in each community they have been involved in and gave examples such as purchasing equipment, staff development, etc. Council on Aging January 31, 1997 Page 2 Minutes Anderson stated that when they have done a 50/50 partnership in communities, the local communities establish a board to decide how their money should be spent. Anderson provided examples such as mobile clinics. Anderson stated they provide a significant amount of charity care in each of their facilities. In Anchorage they are at 5 percent. Anderson compared this with Central Peninsula Hospital who state they provide 1 percent. Anderson stated that medicaid and medicare is a large portion of the population they serve at Columbia. Anderson shared information on their national association called "Senior Friends" adding they have a national conference, local associations, exercise clubs, etc. Anderson added these are to supplement senior center activities with the physician aspect added. Anderson noted they get a monthly newsletter and shared a current newsletter. Anderson stated she would like them to remember Columbia's goal is to provide quality care in a caring environment and that they have the highest rating in Alaska. Anderson added that they are interested in what the local community wants and thinks that is the best way to proceed is with local input. Anderson commented that they had probably heard about the meetings involving the hospital through the local news. Roger Meeks thanked Ms. Anderson for sharing the information with the group. Porter noted she had no idea that Columbia was a five star hospital. Porter stated she was curious about the V.A. portion asking if Columbia became connected to the local hospital if local veterans will still have to go to Anchorage for treatment. Pease noted he could answer that noting the first visit would still have to be done in Anchorage. Then, if the service could be provided locally, they could do so for a period, such as 6 months. Anderson noted that the clinic in Anchorage is owned by Columbia which is leased to the V.A. Anderson added that they bid for inpatient care and they have won that bid for the last several years. Anderson stated they would hope to provide service locally. Pease noted that there is a facility in Homer but Homer residents are still required to go to Anchorage for the initial visit. Porter asked those present how many were aware that the borough was looking into the changes at the hospital. Those present noted they were aware. Council on Aging January 31, 1997 Page 3 Minutes Group discussion about the Friends organization. Meeks noted that most of the seniors were with the old Friends who used to come down and provide cholesterol screening. Huddleston commented that most seniors were unhappy with the changes in the V.A. health services. Billings asked Anderson what improvements would this change mean to the hospital with specialist? Anderson stated that she could speak from past experience, that they have found by improving the diagnostic capabilities and providing current training that this helps to recruit specialists. Anderson noted they are currently working with the cancer treatment center at the University of Washington which has allowed them to bring experimental drugs to Alaska that were not available before. Anderson noted that doctors want to practice in a quality environment. Anderson noted that the number of patients from the Kenai peninsula who went to Anchorage for inpatient care increased 14 percent over the last year. Anderson stated they would be interested in knowing why the change. Anderson stated it may be the up-to- date technology or it may be the cost savings they can provide because they have national purchasing power. Billings asked if there would be a possibility to receive treatment here that is not now locally provided. Anderson stated that would be the goal. Meeks asked if Columbia was set up to provide radiation cancer treatment. Anderson stated they are set up to provide that service with two physicians who are there at all times. Meeks thanked Anderson for the presentation. At this point, the board proceeded with the regular meeting as per the agenda. AGENDA APPROVAL: Agenda approved by unanimous consent. MINUTES FROM PRIOR MEETING: Minutes approved by unanimous consent. Council on Aging January 31, 1997 Page 4 Minutes OLD BUSINESS: 1. Senior Center Town Meeting & 2. Survey Report Porter stated she felt that the meeting went well and thanked the board members who were present. Porter stated they combined all the results into the survey, whether good or bad. Porter noted she has already taken action on some items. Porter asked the board to read through the survey which they had been provided. Porter read some of the comments aloud. Porter explained that the survey also included comments from the mail -in survey. Porter stated that she felt because these were anonymous that people could be honest in their comments. Porter read the results and some of the comments from the mail -in survey. Porter commented that she felt one problem here as well as at other centers is that people have a tendency to sit in the same place at all times. Porter noted that this could make newcomers most uncomfortable. Swarner noted this was not only senior centers but everywhere. Porter stated that they need to try to overcome that somehow and added that she and her assistant try to greet newcomers and help them find a seat. Porter stated that she has gone through the survey with the cook. Porter stated she explained to the cook that these comments were from their customers and they must take note or they won't stay in business. Porter stated she had spoken with the custodians and forbid them to go into the dining room until 1 p.m. to begin cleaning. Several board members commented that the custodians do come in and visit before they clean. Group discussion about the food being too spicy or not spicy enough. Porter advised that there is so much that is personal taste. Porter noted she had advised the cook to cut back on spices adding that individuals can spice to taste. Porter noted that she will not be enforcing the comment to use plastic gloves for serving noting it is not a health requirement. Porter stated she suggested the kitchen close the window so that guests cannot see what the kitchen staff is doing. Porter asked the board to read the comments thoroughly as there are a lot of good comments. Porter stated she felt it was a good exercise and that she would be micromanaging to see that some changes were made. Nelson commented she felt that the comment she heard most is "too much" food. Porter stated that it is a problem because they are required to serve one cup of vegetables to each person. Nelson asked about a buffet? Porter stated Council on Aging January 31, 1997 Page 5 Minutes she had considered trying a buffet every Wednesday and asked what the board thought. Huddleston noted there are a lot of people who cannot get up and hold a plate. Porter noted that others would have to help those who needed assistance. Porter stated that on any daily basis there are probably only three or four individuals who require assistance. Meeks stated they could try it and then they would know if it would work. Porter suggested they could try it for a couple months. Porter, commenting on the suggestion that they have a two colored ticket system, one for salad and one for the entire meal, stated she didn't think they should do that. Porter added that she felt the meal was cheap enough. Board members concurred. Nelson commented that she felt the salad bar was really nice. Porter suggested trying the buffet. Swarner asked if other facilities offer a buffet. Porter stated she and Meeks had just gone to Sterling and they didn't have a buffet. Group agreement to try the buffet on Wednesdays starting in March on a trial basis. Porter asked the board to bring anything from the survey which they felt was important to her attention. Porter advised she has ordered a dart board. Swarner noted that one thing missing from the survey is different levels of card games. Porter noted it is in the newsletter and it will be starting. 2. UPDATE ON ASSISTED LIVING HOUSING: Porter noted they are having trouble getting funding for facility. Porter noted that they have asked the city to assist with bonding. Porter stated that Mr. _ - Grasso will be at the next council meeting with an expert to make a presentation on the bonds. Porter noted they are trying to make the loan interest as small as possible so it will be an affordable facility. Porter noted they have been leasing the land for a long time at $2,000 per month. Porter stated that the federal government has not been in support of this facility noting that the facility in Homer is not being fully utilized. Porter noted that last month out of 40 beds, the Homer facility had only 12 beds being used. Porter stated she thought the government felt anyone from this area should go to Homer. Nelson asked how much it costs for a month. Porter stated about $2,000 in comparison with Heritage House at $9,000 a month. Porter commented that the Continuum Corporation has put a lot of their money into this effort. Porter stated she didn't know if it was proper for the city to help the organization with the bonds. Swarner stated there is a portion of the code that deals with this and they will be reporting to the city on February 5"' Council on Aging January 31, 1997 Page 6 Minutes to see if they can meet those requirements. Meeks asked what kind of bonds they were talking about. Swarner stated she wasn't sure. Porter suggested they go to the meeting on February 5". Swarner stated she doesn't feel there is anyone on the council who doesn't believe the facility is needed. FRIEND DAY: Porter asked for comment on the friend day. Nelson stated the food was wonderful. Funk stated her guest liked it and came back the next day. Meeks stated it may get new customers but was it worth it. Porter commented that you can never have enough P.R. Porter commented she felt it was positive. Porter asked if they should do it every six months. Huddleston suggested once a month. Porter suggested once a quarter. Porter noted that if you say you must not have been here in a month to qualify for the free lunch, once a month would be too much. Group consensus to hold the bring your friend to lunch day once a quarter. Chairman Meeks asked if any further comments. Swarner stated that in regard to the hospital presentation, they will be meeting at 10 a.m. next week with the borough. Swarner stated that if anyone had any comments, they may want to attend the meeting. Swarner noted she had attended both the Columbia and Providence presentations. Swarner asked if Ms. Anderson had asked for a resolution. Porter noted that Jim Carter had asked for a resolution so she had checked with the city manager. Porter stated that the city manager suggested that no commission or committee should prepare any resolution without going through council. Swarner agreed. Nelson stated that she felt the cook should know that the comment, "Fire the cook" is not felt by all. Porter stated she felt all comments should be listed. Porter stated she has thought about having a waffle bar in the early morning. Porter explained that people could come in and make their own waffles. Porter stated she would like to try it. Billings asked if there would be a charge. Porter suggested using a donation can with a suggestion of a $1.00. Porter stated she felt it would be used not as a money maker but a way to bring those in who may not want to come for lunch. Huddleston commented Council on Aging January 31, 1997 Page 7 Minutes that his wife has trouble getting the waffles out and asked if it would be too much of a mess. Porter stated she felt she could get volunteers to watch it. Group census to try the waffle bar. Pease questioned how many people would get up and drive in for the waffle. NEW BUSINESS: 1. Introduction of New Board Members All new board members were absent. 2. Hospital Presentation/Resolution/11 a.m. Presented prior to the regular meeting. Person Wantina to be Heard IUDWO111fiN& t1W Meeting adjourned at approximately 1 1:40 a.m. Respectfully submitted: M rilyn Kebschull Administrative Assistant D-',2 Memorandum Date: 02/13/97 r, I To: Rick Ross, City Manager �� From: Marilyn Kebschull, Administrative Assistant RE: AIRPORT MASTER PLAN PUBLIC INFORMATION MEETING MARCH 13, 1997 @ 7 P.M. A public information meeting regarding the Airport Master Plan will be held during the regularly scheduled Airport Commission meeting on March 13, 1997 at 7 p.m. Aries will provide information on the progress of the Master Plan and report on changes. The Airport Manager and Airport Commission would like to invite you and city council to this meeting. /mk KENAI HARBOR COMMISSION AGENDA February 10, 1997 Kenai City Hall 7:00 p.m. Chairman Will Jahrig 1. ROLL CALL 2. ELECTION OF OFFICERS 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES - January 13, 1997 5. PERSONS SCHEDULED TO BE HEARD None 6. OLD BUSINESS a. Boat Ramp - Surrounding Property (request by Commission) 7. NEW BUSINESS a. Boating Facility Budget Information b. Dock Leases 8. INFORMATION a. Seminars Information 9. COMMISSION COMMENTS & QUESTIONS a. City Council Agendas 10. ADJOURNMENT Harbor Commission ***Minutes*** February 10, 1997 - 7:00 p.m. City Council Chambers Chairman Will Jahrig 1. CALL TO ORDER AND ROLL CALL Members Present: Will Jahrig, Barry Eldridge, Mike McCune, Jeannie Munn, Tom Thompson, Ray McCubbins, George Spracher Members Absent: None Also Present: Keith Kornelis, Paul Dale, Wayne Freeden, Debby Fahnholz 2. ELECTION OF OFFICERS Commissioner Eldridge MOVED to retain the current officers for another year. Commissioner Munn SECONDED the motion. The motion was passed with a unanimous vote. 3. APPROVAL OF AGENDA Commissioner Thompson MOVED to approve the agenda as presented. Commissioner McCune SECONDED the motion. The agenda was approved as presented. 4. APPROVAL OF MINUTES Commissioner Munn MOVED to approve the minutes as written. Commissioner McCubbins SECONDED the motion. The minutes were approved as written. 5. PERSONS SCHEDULED TO BE HEARD None. Harbor Commission February 10, 1997 Page 1 6. OLD BUSINESS A. Boat Ramp - Commissioner Jahrig asked how much of the dock area is covered with gravel. Kornelis responded that there is approximately 5-6 acres of gravel. Commissioner Eldridge asked Paul Dale what area they currently occupy. Paul Dale responded that they occupy a portion of the five acres near Carlyle. He stated that the 30 acres he was occupying is tied up in an estate and may not be settled for another year or two. Commissioner Jahrig asked if the Corps have been contacted to designate some of that area as wetlands. Kornelis stated that they had gotten a permit from the Corps to fill for parking at the end of Spruce Street. He stated that the Council still has to decide if they are going to designate the funds to do the fill. He felt that this is an equally important area for dipnetting. He stated that if there were two more ramps they could get the boats in and out faster, but then they would need more parking. Commissioner Eldridge suggested going in and out near the pilings. Commissioner Jahrig stated that was a pretty dead area. Wayne Freeden stated that last year was the first year there was a shift in that direction. Kornelis suggested another ramp between the current ramp and the docks could be possible, but it would be tight. Paul Dale suggested a loader or a tractor that could alleviate everyone from having to back down and load and unload their boats would smooth things out a lot, something similar to what they do at Deep Creek. Wayne Freeden felt it would help alot if they could just keep people off the floats. Commissioner McCune stated another approach could be to approach the Cherriers about their property. Commissioner Jahrig suggested putting a limit on how many were allowed to launch, and when it was full to turn people away until someone leaves and space becomes available. 7. NEW BUSINESS A. Boating Facility Budget - Kornelis passed out a history from 1994-1996 of the budget. He added a building item on the budget. Commissioner Jahrig asked what R&M Services were. Kornelis responded that it was for contract services which can fluctuate a lot from year to year. Harbor Commission February 10, 1997 Page 2 Commissioner McCune asked if scales are provided. Mornelis responded only for our operations. Kornelis asked for a response on the building expansion request from the Commission. Commissioner Jahrig stated he was aware of the crowded conditions. Wayne Freeden was concerned because of the money being in the open and there being no room to move around. Councilman Bookey asked how much money is usually there. Wayne Freeden responded that the largest day brings in about $1500 in ramp fees, plus fuel money. Councilman Bookey was concerned that 150 square feet was really going to push the budget. Wayne Freeden stated that anything would help. Commissioner Jahrig stated that there isn't even a place to hang wet clothes. Commissioner McCune felt the increased space is warranted but felt they should look at other building materials. Wayne Freeden stated that he just asked for an estimate of the same material that is already there. Commissioner Eldridge asked if 2x4 construction would suffice. Wayne Freeden stated yes, it would, it just wouldn't look as nice and would require more upkeep. Commissioner McCune MOVED to recommend to Council the expansion as presented. Commissioner Eldridge SECONDED the motion. The motion was passed with a unanimous vote. B. Dock Leases - Kornelis suggested having an outcry auction on the leases.. He suggested having one lease go on a 2-year lease for one term, the other on a 4-year lease, then when the 2-year lease comes up to make it also into a 4-year lease. This would have one lease renewing every 2 years. Paul Dale stated that since 1990 they have paid consistently more on the 4-year lease than on the single year lease, but he felt that the 4-year lease offers the lessor more stability. Councilman Bookey asked why they changed from a 4-year lease to a 1-year lease. Kornelis stated that it was by direction from Council. Commissioner Jahrig wanted to continue the poundage fee. Kornelis stated that the fee schedule would stay the same. Commissioner Jahrig asked if they should both be on a 4-year schedule. Kornelis again stated that he would like to make one a 2-year lease for one term, then make them both 4-year leases to have them on a 2-year cycle. Harbor Commission February 10, 1997 Page 3 Kornelis suggested they could also do an outcry auction. He stated that they had to do it once before with a minimum bid and it worked OK. Commissioner Spracher felt an outcry auction might be the best. Commissioner Jahrig didn't feel that an outcry auction would be the best way to go. Councilman Bookey felt it needs to be checked out to be sure its legal to go that route. Kornelis didn't care either way, he just felt there would need to be a minimum bid. Councilman Bookey asked how the poundage would work on an outcry auction. Kornelis stated that they would have a minimum for that also. Commissioner Jahrig asked if the minimum bid should be raised. He suggested that everyone think about it and make a decision at the next meeting. Councilman Bookey stated that he was comfortable at an $8,000 minimum bid. He felt supply and demand would set itself. He felt on an outcry auction the poundage would have to be set. Paul Dale felt that it was a good idea to set the poundage and felt six cents a pound was fair. Commissioner McCune stated that he felt that fee was light. Kornelis felt that at eight cents there wouldn't be as much fish. Councilman Bookey didn't feel the city should subsidize a service that can be done by private enterprise. Commissioner McCune asked if we are covering our costs. Kornelis stated that someone would be there anyway and felt it was fair. Commissioner Jahrig asked if there should be a minimum bid, a fixed poundage or a floating poundage. Commissioner McCune asked how many boats were in the storage area and how many fish of the boats fish for them. Paul Dale responded that 20-25 boats are in there. Kornelis stated that on page B2 they look at the basic bid and give it to the highest basic bid with an estimate on the poundage. He stated that there was a lease clause that said if they were 10 % under their estimate the city could throw out the contract. Commissioner Thompson suggesed a fixed poundage rate and then let the competition bid on the minimum bid. Commissioner Eldridge suggested 3-3/4 cents a pound and a minimum bid of $8,000. Commissioner Jahrig felt there wasn't much room for a grey area. Paul Dale felt that since the bid is for four years, there is still room for bidding. Harbor Commission February 10, 1997 Page 4 Commissioner McCune felt the best way to go is to establish a base poundage. Commissioner Eldridge stated that since it has been established at 3-3/4 cents per pound to leave it at that. He agreed with going with the 2 and 4 year lease and felt the staging area should be drawn up as part of the lease. Wayne Freeden suggested that the staging areas could be cut in half. Commissioner Eldridge MOVED that 3-3/4 cents a pound and an $8,000 minimum bid be established with one lease for 4 years and the other initially at 2 years to become a 4-year lease, thus having one lease come due every 2 years, staging areas to be designated and handled through a sealed bid. Commissioner Munn SECONDED the motion. The motion passed with a unanimous vote. C. Boatyard Facility - Commissioner Jahrig stated that the storage area is going to have to be looked at again. Commissioner Eldridge didn't feel it was in the best interest of the facility to look at a long term lease. Councilman Bookey asked what time frame they were looking at. Paul Dale responded that they would like a longer lease, but the would like like additional space. Commissioner McCune suggested a 2-year lease with a minimum bid. Kornelis stated he would have to talk to some real estate people to establish a value, since it is considered raw land. Councilman Bookey suggested just letting it go for bid and let the bid establish itself. Kornelis suggested bidding it after bidding the dock facilities. He stated he would research it further and bring it up for discussion again at the next meeting. 8. INFORMATION Seminars - Commissioner Jahrig brought to everyone's attention the flyer in the packet on the seminars offered in Anchorage. 9. COMMISSIONER COMMENTS AND QUESTIONS Commissioner Jahrig mentioned that the Harbormasters Meeting is scheduled to be held in Wrangell this year in November. 10. ADJOURNMENT The next meeting was scheduled for March 3 due to the possibility of not having a quorum. Councilman Bookey stated he would get approval from Council for the meeting date change. Harbor Commission February 10, 1997 Page 5 Commissioner Munn MOVED to adjourn. Commissioner Eldridge SECONDED the motion. The meeting was adjourned at 9:20 p.m. Respectfully submitted, Debby J. Fahhholz Harbor Commission February 10, 1997 Page 6 MEMORANDUM TO: Rick Ross, City Manager FROM: Keith Kornelis, Public Works Director DATE: February 11, 1997 SUBJECT: Harbor Commission meeting of 2/10/97 The Harbor Commission requests a change in their next meeting date from March 10 to March 3, 1997. The Harbor Commission also made a Motion in support of the Boating Facility budget as submitted, including the dock office expansion. The following items concerning the dock lease were also agreed upon: 1. Use sealed bid method of bidding. 2. Bid one station for a 4 year lease 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. 3. Include an appropriate staging area on shore for each lease station. 4. The City will set a minimum bid of $8,000 for each dock lease space. 5. The City will set a price of $0.0375 per pound for fish unloaded at the lease station, after reaching the total poundage figure from the basic bid price. Examples: a. $0.0375/# x 213,333# = $8,000 (basic bid). This would mean that if the Lessee had submitted a basic bid of $8,000, they would start paying an additional amount of $0.0375/# after unloading 213,333#. b. $0.0375/# x 266,667# = $10,000 (basic bid). If they bid $10,000, they would start paying an additional amount of $0.0375/# after unloading 266,667#. The Harbor Commission would also like to bid a boat storage area at our facility. KK/kw cc: Cary Graves, City Attorney Jack La Shot, City Engineer Harbor Commission Swede Freden, Dock Manager KENAI ADVISORY LIBRARY COMMISSION KENAI COMMUNITY LIBRARY ACTIVITY ROOM February 4, 1997 @ 7:30 P.M. AGENDA 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES: January 7, 1997 5. DIRECTOR'S REPORT 6. FRIENDS OF THE LIBRARY REPORT 7. PERSONS SCHEDULED TO BE HEARD A. Mayor and City Council of Kenai 8. OLD BUSINESS A. Discussion - Library Expansion 9. NEW BUSINESS 10. COMMISSIONER'S COMMENTS/QUESTIONS 11. INFORMATION A. Questions for Consideration B. Library Expansion Report C. Council Agenda of January 8 and 15, 1997 12. ADJOURNMENT Library Commission ***Minutes*** February 4, 1997 - 7:30 p.m. Kenai Library Activity Room Chairman Bob Peters 1. CALL TO ORDER AND ROLL CALL Members Present: Bob Peters, Janet Brown, Kathy Heus, Carol Brenckle, Vince O'Reilly, Janice Rodes, Lorrene Forbes Members Absent: Elissa Fahnholz Also Present: Emily DeForest, Richard Ray, Nora Satathub, Cary Graves, Councilman Raymond Measles, Councilman Jim Bookey, Virginia Walters, Betsy Arbelovsky, Mayor John Williams, Debby Fahnholz 2. APPROVAL OF AGENDA Commissioner O'Reilly suggested switching items 7 and 8 on the agenda. Commissioner Peters felt it might help for the Council members to understand the Commission's feelings if items 7 and 8 were just combined into one item under Old Business. Commissioner O'Reilly MOVED to approve the agenda as amended covering Items 7 and 8 into Old Business. Commissioner Forbes SECONDED the motion. Commissioner Heus asked if this would affect the Friends report. Commissioner Peters suggested that the Friends report come under the new item 7. The motion was approved and the agenda was accepted as amended. 3. APPROVAL OF MINUTES Commissioner Forbes MOVED to approve the minutes as written. Commissioner Brown SECONDED the motion. The minutes were approved as presented. 4. PERSONS SCHEDULED TO BE HEARD Moved to Old Business. Library Commission February 4, 1997 Page 1 5. DIRECTOR'S REPORT Library Director DeForest reported that 11.444 items were checked last month. She reported that the Friends of the Library will have a booth at the Village Fair. 6. FRIENDS REPORT Commissioner Heus stated that the Friends the met yesterday. She reported that they will have a booth at the Village Fair. The Friends Tea is scheduled for Feb. 16 from 1-4 and invited everyone to join in. She reported there will also be door prizes at the Tea. She stated that officers were elected at the last meeting. 7. OLD BUSINESS Commissioner O'Reilly thanked everyone for attending and passed out a handout addressing the library's needs and Commissioners' concerns. He stated that the Commission has already identified their present and future needs of the library. He then related to the present and future space needs. Commissioner O'Reilly gave an overview of the Library's committee work in using the Holt Methodology to determine the spacing needs. He stated that the stacks and privacy, as well as the rest rooms are not in compliance with federal law. He stated that they looked at expenses and felt that the volunteer staff is very important in considering their ability to keep personnel costs down. He reminded everyone that the Friends are a separate link to the library and that they are an important part in supporting the library financially. He felt that some of the Commissioner's were disappointed in some of the Council member's lack of total and complete support on the library expansion bond issue. He felt that a property tax increase was of major concern to many people and suggested other sources of financial support might be necessary. He felt these other sources would be hard to get without the City's support and backing. He stated that the library has to fit in with the other city projects, but also felt it needs to be addressed that the library has expansion needs. He stated that looking at the City's reserves and budget deficit, they should look at the purpose of those reserves. He felt the library attracts people to the city and asked for open discussion on what the library's future might be. Commissioner Peters stated that the first concern was the issue of need. Mayor Williams recognized everyone's dedication on the library commission and the dedication of the Friends. he felt that there were reasons why Council dedicates funds to different capital projects. He stated that it has been three years since the Council addressed their Goals and Objectives. He stated that he will introduce to Council to bring together the Library Commission February 4, 1997 Page 2 community to find out the necessary direction the city needs to go. He stated that on the surface Kenai seems to be a forward thinking community, but the underlying issue is that businesses are not growing well. He hoped that during the Goals and Objectives sessions they will identify items that will be necessary for future growth of the city. He stated that the City has other priorities facing them right now, some of them being the animal shelter, and an inadequate maintenance facility. He felt that education is an extremely important issue, especially literacy and math. He felt that support of the library was not an issue. but that funding an addition was another question. He felt that by addressing the City's Goals and Objectives they would be able to get an idea of what the next 3-5 years will bring. He felt their main issue was to sustain what they have now since the tax base is dwindling. He felt the whole answer is in planning, and planning what is realistic and attainable. Councilman Bookey agreed with the Mayor. He felt that as a Council, they would support the library, but not a $3 million addition. He felt that the animal control facility was a major issue this year. He felt the Council would support the library somewhere on a 3-5 year goal plan. He also felt the education system needs to be in support of the library, but felt the City's obligations were to other concerns at this time. Councilman Measles agreed with the Mayor and Councilman Bookey. He also felt that the best the library could do would be to get their needs addressed in a 3-5 year plan. Commissioner Rodes asked if the Council passed a resolution favoring the library expansion, would that override the other issues. Commissioner Peters stated that if the Friends were to attempt other funding sources, Council support would help a lot in obtaining other funding. Commissioner Forbes agreed that in a fund-raising campaign they would need the City and community's support. Commissioner Peters felt that the defeat of the bond issue was not a defeat of the library expansion, but a defeat of the property tax idea. Mayor Williams felt the City could possibly identify funds to target to the library each year, and felt the federal government may be coming up with grants to back education. He felt there may be a lot of avenues for grants. Commissioner Heus felt the City recognizes the need for the library expansion, and asked if the 3-5 year plan would include expanding in stages or was bonding the only option. Mayor Williams stated that finances depend on the reserves and revenue. he felt the city may have to go to taxes for revenue at some point. He did not feel bonding was always appropriate. Library Commission February 4, 1997 Page 3 Commissioner Heus felt that bonding, taxes, service areas and grants were all possibilities. Mayor Williams stated that the city has to identify why they raise taxes, and identify where the tax money is to go. Commissioner Rodes asked if Council felt the amount of the bond issue was too high and would they have supported it if the figure was lower. She felt if someone could come up with a good plan for less, she would be happy. Councilman Bookey felt that $2.5-$3 million was not realistic. He felt that there should be something that could be done to address the library's needs for a million. Commissioner Peters stated that the cost of things will only go up, not down. Commissioner Brenckle stated that money is no longer available as it has been in the past. She stated that knowing that money is just not there to cover everything, that we need to get creative in obtaining funding. She stated she would like to see approaches to creating funding and felt to be successful they would need the Council's support. Mayor Williams stated that the Visitor's Center was not an issue everyone really was sure they wanted. He stated that the Council agreed to fund it 50150 if their organization got half the funding. He stated that they obtained the funding and called the Council on its offer. He stated that the Senior Housing and the water and sewer were really worked hard to get to completion. Richard Ray stated that we are in a transition where things no longer appear just because you raise your hand. He felt the community needs to become aware that the city is living on reserves and their future needs are going to have to be paid for by taxes. He felt the City needs to protect their reserves until the economy balances out. Commissioner Forbes asked what would happen if the Friends began a fund raising program. She also felt they need hard plans and asked if the City could fund money for the plans. Mayor Williams felt there needs to be a plan to present plans to the City. He felt if there were some compromising done there might be a possibility of working something. Commissioner Brenckle asked how the Council felt about the Friends raising funds on their own. Mayor Williams responded that whatever they get will also go to the city to support and maintain. He felt that step 1 was to figure out how big and how much it will cost. Commissioner Peters asked if the Council feels a professional study needs to be done. Mayor Williams did not feel that was necessary. Library Commission February 4, 1997 Page 4 Commissioner Peters asked if we were locked into bonds or were matching funds an option. Mayor Williams responded that the days of 50150 matching funds are gone. He felt it may be more of a 1/3 or 1/4 matching terms instead. He didn't feel it would work to look at combining the library on a borough -wide basis. Commissioner Heus asked how to go about finding where to agree. She stated that if a professional needs survey doesn't need to be done and an assessment has been done, what is the next step? Mayor Williams suggested joining into the Goals and Objectives process. He felt this would make it clear with everyone and that Council will then agree on the size and cost, but it will take negotiations. He suggested possibly a user fee would go a long way in raising some of the needed funds. He felt that somewhere down the line there will have to be some type of user fees. Mayor Williams stated that ADA requirements are a major concern and felt that they need to first lay out their needs, then determine the space requirements. Commissioner Forbes asked if a user fee could be designated to a specific fund. Mayor Williams responded that if that was done, the money would have to be reappropriated each year. Councilman Measles stated it could be at the discretion of each new council to continue the appropriation. Councilman Bookey stated that if the library has serious concerns, they should be addressed this year. Richard Ray stated that only the minimum reasonable measures need to be done. Commissioner Heus felt that the ADA requirements were not the basis for the library expansion plans. Commissioner Rodes agreed that she was under the impression the ADA requirements did not come into account until after the addition was planned. Richard Ray stated that the ADA requirements must be addressed in any planned improvements. Commissioner Forbes asked if the library needs can be addressed on the next community needs survey. Library Commission February 4, 1997 Page 5 Commissioner O'Reilly stated that some funding sources require that it be a free library. He suggested that the commission go over their needs and functions again and will present their findings to Council. He suggested he could work with the city manager to look at innovative ways to designate funds for the library. Commissioner Heus asked if each person were assessed a library tax could that be directed to a library fund. Mayor Williams stated that you can't tax the entire population and not call it a tax. Mayor Williams asked Library Director DeForest what the reaction would be if the patrons were asked for a local address and those outside the city limits would have to pay a user fee. DeForest responded that there would be many library cards returned. Commissioner Peters stated that he felt if we compromise and cut the size and cost of an addition, they will still be behind in their needs. Commissioner Forbes asked if the commission needs to massage cost and size before going to the goals and objectives sessions. Mayor Williams responded no, and suggested working with Councilman Moore as a liaison to the Council. Mayor Williams suggested everyone think about what has been discussed and possibly they might be able to work something into this budget session. Commissioner Peters stated that if the main priorities were to fix the ADA requirements then the library's space would only become smaller. 8. NEW BUSINESS None. 9 COMMISSIONER COMMENTSQUESTIONS Commissioner Rodes stated that she appreciated everyone's attendance and comments. Commissioner O'Reilly felt it had been a very informative meeting. Commissioner's Heus and Brown thanked everyone. Commissioner Brenckle felt it was a lesson in politics. Commissioner Forbes stated she was not really sure what direction to go next. Library Commission February 4, 1997 Page 6 Commissioner Peters thanked Ms. Arbelovsky for attending on behalf of the Friends. 10. ADJOURNMENT Commissioner Heus MOVED to adjourn. Commissioner Brenckle SECONDED the motion. The meeting was adjourned at 9:55 p.m. Respectfully submitted, Debby J. F olz Library Commission February 4, 1997 Page 7 MONTHLY MANAGE r REPORT t+_ Monthly Manage, t ReoortVI of ��•t¢ �)j p , • °' BRANCH - - Kenai Community Library ( 'tom Ya Ni F 01 JAN 1997 **Patron Statistical Classes**Use Counts ,•. 1i=. 01 JAN 01 DEC % Change 01 JAN % Change FYTD41996 Last FYTD Change 19971996 1996 -.to 31 JAN to 31 JAN CL COOPER LANCING 8 2 300.0% NK: NiNILCHIK: 14 20-3v�,Q�% 28 132 91 45.1% A ADULT (11+-64) 6761 54aO 23.7'% 6642 2.1'% 41328 ''-c.' <r.41768 -1.1% AP ANCHOR F'OlNf RESIDE 8 3 166.7% E BU5IIJESS 1 3 -66.7% C CLAM GULCH RESIDENT 21 15 40.0% 24 -12.5% 171 -•-150 14.0% E CHILD (--TO 8) aE,g 614 57.7% 927 4.4% 6172 Y.6551 -5.8% H HOMER RESIDENT 2-1Oki .0% 3-100.0% 68 , e:'`. 27 151 .9% ILL INTER -LIBRARY LOAN c32 Z35 -8.6% 34 -5.9'/ r,,.s:,,,. 235.,;x.�;��7, 307 -23.5% J JUVENILE (8-13) 616 300 E2.1% 593 3.9% 3520 4342 -18.9% K:ENA I CITY RES I DEN r 4702 3 /E ib 25 . 1 % 4",83 2 . 30189 -4.1 KA KASILOF RESIDENT 511- 47.4% 374 38.0% _..'.:r2417.' c:,t,..d:�2092 15.5% N NIK:ISK:I RESIDENT 1712 13E'S 25.1% 2052-16.6'/. �11621 '''`'+'':'' 11582 0.3% NR TEMPORARY OR NON -RE 25 55 -54.5% 37 -32.4% 468 485 -3.5% U OFF THE PENIIJSULA R 16-100.0'% 13 100.0•G +.. tt 204 rsrtitae,. 339 -39.8% ORG ORGANIZATION 24 12 100.0% 9 166.7% 192 94 104.3% 5 SOLDOTNA RESIDENT 11073 3It, .4% 11,L44 17.2% 7902 8528 -7.37 SE SEWAkD 15 100.0% SR SEIJIOR CITIZEN i5` 104 106 -1.9% 164 -36.6% 1050Y 11196 -12.2% ST STEELING 16'j 63 168.3% 141 19.9% 796 �''. ,. Be- -10.2% U KENA I COLLEGE STUDE 3-100.0'/ 4 W WILD'WOOD CORRECTION 17 -41.2% 42 -76.2% ' 126 _. ;;t.,146 -13.7% YA YOUNG ADULT (14-18) 233 207 12.6% 325 „ -28.3% 1633,1767, -7.6% MONTHLY MANAGEMENT REPORT, Monthly Management Reoort '- BRANCH - -Kenai Community Library 01 JAN 1997 i .. i • . :; w. **Overview** 01 JAN 1997 01 DEC 1,?% Y. Change 01 JAN 1996 Y, Change FYTD 1996 } Last,FYTD 'i; % Change �_to 31 JAN ._s-Lto 91 JAN First Time Checkout 7715 5767 33.3% 7635 1.0% 47132 `48622 + -3.1% Phone Renewals 892 Bel 1 .2% 779 14.5% - w.5. ,• 3786 cv � •� 4973 -Ar_ + -1 16.3% Renewals 242 260 -6.9% 369 -34.4% 1832 '`''''K 27,36 -34.5% Checkout Sessions 2595 1393 37.1% 2569 1.0% 15624 ;16433 -4.9% CHECKOUTS 11444 8^001 30.0% 11352 0.9% 70374 '+,L728$4 -3.4% Reaular Checkins 58400 5050 14.�'% 5602 3.5% r' 38547 38920 -1.0% Late Check:ins IP-32 1452-11.7'% 1241 3.3% 9775 � 3126 20.3% CHECK:INS 7082 6562 8.9% 6843 3.5% 48322 47046 2.7% Patrons Registered 165 101 63.4% 173 .-4.6% .. -.972 ::`: .,+�.-� 1166 -16.6% Patrons Deleted -5 -1-66.7% -12 -58.3% -228 ;'r-231 -1.3% MONTHLY MANAGEMENT REPORT Monthly Management Reoort•� BRANCH - - Kenai Community Library 01 JAN 1997 **Item Statistical Classes**Use Counts 01 JAN N1 DEC % Chanue 01 JAN % Chanoe ' FYTD 1996 Last FYTD % Chanae 19y7 1996 1996 --to 31 JAN --to 31 JAN ANF NON-FICTION (ADULT) 2373 1591�1 40.0% 2582 -7.9'% 14144 15261 -7.3% 8 BIOGRAPHY 37 27.6% 38 -2.6%. 225 215 4.7% BB C BIG BOOk' AUDIO CASSETTES I(A.. 07 2 �.7% 4`i 114.3% 754 524 43.9% CAM CP CAMERAS FERIOUICALS 04 02 2.4% 117 -29.2% 561 -•." E•64 -12.5% ROCS DOCUMENTS 07 1'+ 42.1% 19 1374 42.1% -6.6% 108 109 9OS6 tells -0.91% -10.2% rF EASY FICTION 1283 467 a3'=+ 309 29.7% 51 417 12.0% • -'•, .-2900 3.1% ENF EASY NUN -FICTION .1'/• 2 100.0% EPBK EASY PAPERBACK 1 D.3% 141 67.4'% 1096 839 30.6% EO F EOUIPMENT FICI ION (ADULT) 2FE. 1889 FIE 1731 3.0% 1833 2.0'/..- - ,--:- 12157 12064 0.3% FLM FIL11S/FILMSTRIP'S (A 24 26 -7.7% 62 -61.3'/ 207 :•"':' 294 -29.6% ILL INTERLIBRARY LOAN - 23 ,: •u:K: rd'e; r . 100.0% I NT I N TERNET 23 100.0% 100.0'/. JC JUV. AUDIOCASSETTES F•7 42 59.5% 27 148.1'% 403 48.7% JF JUV. FICTION 641 433 ,32.7'% 549 16.8% 951 3899 3951 -1.3% 7FLM JUV. FILMS/FILM5TRI " ' r:x ` .. ' Z6 2388 2.2% JNF- JUV. NON-FICTION 460 2'+7 54.9'/• 371 24.0% 2441 2 100.0'% JP JUV. PHONODISCS 2 100.0% 100.0%4 tr JPBK JUVENILE PAPERBACK 54 36 50.0% 82 -34.1'% 434-tkasas+;tact' 761 -43.0% F:I'f KI T lid 6 66.7% 10 0.0% 55 i •, ' 86 -36.0% MAF MAPS 1 -100.0% 1 1 MF MICROFILM/FICHE 5 7 -28.6% 9 _._ -44.4% __.... .� 31 83 -62.7% 111ISC PUZZLES/GAMES 2 3 -33.3% MRDF MACHINE READABLE DA NFPW NON-FICTION PAPERBA 7 0.0% 26 115 -77.4% P PHONODISCS 7 8 -12.5% n 3 PAM PAMPHLETS 1 -100.0% 1 -100.0% PBK PAPL-RBACKS 338 300 12.7% 278 21.6% .. 1972 fix;:»1796 9.7% VC VIDEO CASSETTES 732 540 35.6% 811 -9.7'% 4193 i 4311 �; -2.7% VF VERTICAL FILE 2 -100.0% 3 ". 10 -70.0% XXX DATA LOAD PROBLEMS 2 -100.0% 4**=4- 7 -100.0% .i R �'n - KENAI PARKS & RECREATION COMMISSION AGENDA FEBRUARY 6,1997 - 7:00 P.M. KENAI TEEN CENTER CHAIRMAN RICHARD HULTBERG 1. ROLL CALL: 2. APPROVAL OF AGENDA: 3. APPROVAL OF MINUTES: January 9, 1997 4. PERSONS SCHEDULED TO BE HEARD: a. Community Skateboard Meeting —Tony Lewis, Scott Slavik (Teen Center Supervisor) and Teleconference with Ken Wormhoudt 4. OLD BUSINESS: a. Cemetery b. Cunningham Cabin c. Teen Center Pool Tables 6. NEW BUSINESS: a. KCHS After Graduation Committee —Request to waive recreation facility fees 7. DIRECTOR'S REPORT: a. Teen Ski Trip b. Women's Basketball Tourney c. Middle School Dance d. Valentine Wallyball Blast e. '98 Parks & Rec. Budget 8. CORRESPONDENCE: 9. PERSONS PRESENT NOT SCHEDULED TO BE HEARD: 10. INFORMATION: a. Council Agenda (January 8 and January 15, 1997) b. Valentine Wallyball Blast Flyer c. Women's Basketball Tourney Schedule d. January 1997 Teen Center Calendar of Events e. Thank you note from Rick and Tracy Allen f. Beautification Committee minutes of January 14, 1997 11. ADJOURNMENT: Parks & Recreation Commission ***Minutes*** February 6 - 7:00 p.m. Kenai Teen Center Chairman Richard Hultberg 1. CALL TO ORDER AND ROLL CALL Members Present: Jack Castimore, Kelly Gifford, Richard Hultberg, Tim Wisniewski, Christel Fields, Ron Yamamoto Members Absent: Dale Sandahl Also Present: Bob Frates, Hal Smalley, Tony Lewis, Debby Fahnholz 2. APPROVAL OF AGENDA Bob Frates asked that the basketball schedule be added to the agenda. The agenda was approved as amended. 3. APPROVAL OF MINUTES Commissioner Castimore MOVED to approve the minutes as written. Commissioner Wisniewski SECONDED the motion. The minutes were approved as written. 4. PERSONS SCHEDULED TO BE HEARD _ Bob Frates stated that he felt it was a good idea to have everyone meet at the Teen Center to allow everyone a chance to see it. He reported that several meetings had been held there regarding a possible skateboard park. He introduced Tony Lewis to the commission. Tony Lewis explained the basis behind the skateboard club. He gave an overview of the interest and needs of skateboarders. He stated he would like to attempt to design a skateboard park for the peninsula area and suggested it could be a joint effort to cover the Kenai/Soldotna area. Ken Wormhoudt, a skateboard architect, was contacted by telephone. Since there was a bad Parks & Rec Commission February 6, 1997 Page 1 telephone connection, questions had to be relayed. Councilman Smalley asked when he (Ken Wormhoudt) would be coming to Wasilla to work on their skateboard park and if he could possibly meet with them. Ken responded that he will be drawing up plans for Wasilla and won't be coming to Alaska until they actually begin construction. He stated that if he is contracted to build here he would come in and give a slide show on different designs he has done. He then has the skateboarders help design the park with clay models, then goes back and designs the plans from the models. Commissioner Hultberg asked about the cost of a skateboard park. Ken Wormhoudt responded that the cost is about $100,000. A parent asked about liability issues. Ken Wormhoudt responded that there has only been one lawsuit he knows about, which was not successful. He stated that if signs are posted that using the facilities is at your own risk, then there is no liability to the city. Another parent asked about winter maintenance. Ken responded that since the park is basically designed with a lot of rebar and concrete, maintenance has not been a problem so far. Commissioner Yamamoto assured that kids in attendance that this is not an overnight process. He stated it will take a lot of work from everyone concerned. Bob Frates stated that a community needs survey will be going out in the spring and suggested everyone fill one out. Commissioner Yamamoto stated that in Girdwood they put wooden structures up in the summer time in the tennis courts for the skateboarders and rollerbladers to use. 5. OLD BUSINESS A. Cemetery - Bob Frates felt that a cemetery committee might be hard to pass through the Council. Councilman Smalley stated that there has been a lot of difficulty in getting and maintaining committees in the past. Commissioner Hultberg suggested that it could be good question to be put on the survey. Commissioner Wisniewski stated that at the current time everything is in place, but nothing is being done to enforce the cemetery policy. He felt that maintenance is the biggest issue. Bob Frates suggested a sign at the cemetery stating that as of a given date the cemetery policy will be enforced. He suggested bringing a plan to the next meeting for the commission to discuss. B. Cunningham Cabin - Bob Frates stated that the cost estimates came in at $20,000- Parks & Rec Commission February 6, 1997 Page 2 $40,000 with hookups to move the cabin. He stated that possible locations could be the golf course, the historic area of Kenai, or the softball green strip. C. Teen Center Pool Tables - Bob Frates stated he would like to see the money put into the budget for next year. There is currently money to purchase one in the budget. 6. NEW BUSINESS KCHS After Grad Party - Bob Frates received a letter asking to waive the facility fee for the After Grad Party this year. Commissioner Castimore MOVED to waive the facility fee. Commissioner Wisniewski SECONDED the motion. The motion passed with a unanimous vote. 7. DIRECTOR'S REPORT Ski Trip - Bob Frates reported that 10 kids went to Alyeska last weekend. They felt that there was enough interest to do more trips on a larger scale. Women's Basketball - Bob Frates reported that they had a team finish 2nd and in 4th with five women's teams total. Middle School Dance - Bob Frates reported that there was a dance held a couple weeks ago with 105 kids attending. Wallyball Blast - Bob Frates reported that the wallyball blast will be held on February 15th. He stated there are so far five teams, with more likely to sign up. He felt they might be able to go to a wallyball league next year. 1998 Budget - Bob Frates stated that nothing has changed except maybe the treadmill. He stated that the Beaver Creek Park restrooms need to be replaced this year. Commissioner Castimore asked about a warm-up structure for the golf course and suggested a structure through the high school shop. Commissioner Hultberg asked about the banners. Bob Frates stated that Tuesday they will be on the radio to discuss the banners. 8. CORRESPONDENCE None. Parks & Rec Commission February 6, 1997 Page 3 9. COMMISSIONER COMNiENTS AND QUESTIONS Councilman Smalley stated that Council is looking at a very conservative approach to the budget this year. Commissioner Wisniewski thanked the Recreation department for the ski trails and was impressed with the trail system. Bob Frates stated that there will be panels put up on the scoreboard with the ski trail system on it. Commissioner Hultberg asked everyone to check out the pool tables on their way out. He also suggested that the commissioners come visit the teen center once in a while to let the kids know they are interested and care. 10. ADJOURNMENT Commissioner Gifford MOVED to adjourn the meeting. Commissioner Castimore SECONDED the motion. The meeting was adjourned at 9:00 p.m. Respectfully submitted, Debby J. F olz � Parks & Rec Commission February 6, 1997 Page 4 -D-& CITY OF KENAI PLANNING AND ZONING COMMISSION **AGENDA** KENAI CITY COUNCIL CHAMBERS February 12, 1997, 7:00 p.m. hftp://www.Kenai.net/city 1. ROLL CALL: 2. ELECTIONS: 3. APPROVAL OF AGENDA: 4. APPROVAL OF MINUTES: January22, 1997 5. PERSONS PRESENT SCHEDULED TO BE HEARD: 6. CONSIDERATION OF PLATS: 7. PUBLIC HEARINGS: 8. NEW BUSINESS: 9. OLD BUSINESS: 10. CODE ENFORCEMENT ITEMS: 11. REPORTS: a. City Council b. Borough Planning c. Administration 12. PERSONS PRESENT NOT SCHEDULED: 13. INFORMATION ITEMS: a. Borough Planning Commission Information b. Comprehensive Plan Funding Request Letter c. Letters received regarding kennel permits. d. Margery A. Price seminar information 13. COMMISSION COMMENTS & QUESTIONS: 14. ADJOURNMENT: 1. ROLL CALL: Members present: Members absent: Others present: 2. ELECTIONS: CITY OF KENAI PLANNING AND ZONING COMMISSION February 12, 1997 '""Minutes*** Carl Glick, Michael Christian, Phil Bryson, Teresa Werner-Quade Karen Mahurin, Ron Goecke, Barb Nord City Engineer Jack La Shot, Administrative Assistant Marilyn Kebschull BRYSON MOVED TO POSTPONE ELECTIONS TO NEXT MEETING. CHRISTIAN SECONDED THE MOTION. MOTION PASSED BY UNANIMOUS CONSENT. 3. APPROVAL OF AGENDA: CHRISTIAN MOVED TO APPROVE AGENDA. BRYSON SECONDED THE MOTION. AGENDA APPROVED BY UNANIMOUS CONSENT. 4. APPROVAL OF MINUTES: January 22, 1997 CHRISTIAN MOVED TO APPROVE MINUTES OF JANUARY 22, 1997. BRYSON SECONDED THE MOTION. Glick asked for any changes or corrections. None noted. MOTION APPROVED BY UNANIMOUS CONSENT. 5. PERSONS PRESENT SCHEDULED TO BE HEARD: 6. CONSIDERATION OF PLATS: 7. PUBLIC HEARINGS: 8. NEW BUSINESS: Planning & Zoning Commission Minutes 9. OLD BUSINESS: 10. CODE ENFORCEMENT ITEMS: 11. REPORTS: a. City Council b. Borough Planning Page 2 February 12, 1997 Bryson reported there was a meeting last Monday. Bryson noted there were 60 public hearing items. Bryson noted that luckily no one appeared for any of the road name changes commenting that hearings can go on for a lengthy period of time if people don't agree with suggested changes. Bryson noted the bulk were approved as suggested, several were modified and several postponed. Bryson noted there were two items on the agenda that affect the city. Bryson stated one is a proposed amendment to Chapter 21.18, The Kenai River Habitat Protection Ordinance. The other is proposed amendments to Chapter 5.14, Kenai River Habitat Protection Tax Credit. Bryson noted the tax credit ordinance addresses interpretation of what constitutes a facility they would approve. Bryson stated the Kenai River Habitat Protection area attempts to clean up definitions also. c. Administration La Shot stated that Councilman Smalley asked him to bring the Commission up to date on the ARFF (Alaska Regional Fire Fighting) facility. La Shot noted there was a large presentation at the last council meeting about the facility. La Shot stated they are reaching a point wherein the city must make a decision regarding the size and how much the city is willing to commit from the airport fund given the amount of federal funds available. At the next council meeting an ordinance will be introduced to appropriate funds to complete the design work. La Shot stated that hopefully, two meetings away will be an award to complete the design work. La Shot stated that will complete design work in early summer and will hopefully put it out to bid then. La Shot commented that the article in the paper today was accurate as to how the funding is done noting there are no local tax dollars used unless you consider the federal tax dollars. La Shot added that there will be no local tax dollars used to operate or maintain the facility. La Shot stated the plan is for the facility to be self-sustaining but if not, the airport fund would be used to supplement the facility. Glick asked about the size of the airport fund. La Shot stated there are two different funds, one with all land sales and lease moneys. La Shot stated the principle of that fund has reached $10 million noting only the earnings of that fund is put into the other fund which is Planning & Zoning Commission Minutes Page 3 February 12, 1997 the fund that can be used. The interest is about $8 million. La Shot noted there are not many ways the community can use the money and this project appears to be one that will qualify. 12. PERSONS PRESENT NOT SCHEDULED: 13. INFORMATION ITEMS: a. Borough Planning Commission Information b. Comprehensive Plan Funding Request Letter c. Letters received regarding kennel permits. d. Margery A. Price seminar information 14. COMMISSION COMMENTS & QUESTIONS: Glick asked about the Price seminar information provided in the packet. Kebschull advised it was provided from the City Clerk adding that they may be interested in the seminar on effective meeting techniques. Glick asked how soon the city would need to know if someone was interested in attending. Kebschull advised she did not feel there were funds available to pay for the seminar unless the City Clerk had legislative funds available. Christian commented on the letters in the packet regarding kennel permits noting he has received numerous calls on the kennel issue. Christian added he has spoken to Bill Godek stating that Godek thinks it would make his job easier if the Planning Commission would make a stand in terms of the code or a law that addressed the issuance of kennel licenses in subdivisions such as Redoubt. Christian stated he would like to poll the group to see if this would be a worthwhile venture on his part. Christian stated that in his subdivision they have three people that have enough dogs to apply for a kennel noting they are located in some of the more crowded lot areas of the subdivision, 9000 square feet. Christian noted it is becoming a problem. Christian stated that some people are afraid of their neighbors and hesitant to file complaints. Christian stated that if there was something in the code to prohibit kennels in certain areas, people wouldn't have to be faced with that and prevent some problems in neighborhoods. Christian reiterated he would like to throw this out and questioned if it would be worthwhile to formally introduce something. Glick asked how Christian would propose limiting areas. Christian stated probably from two angles, one from suburban residential which he felt may not get support. Christian stated another avenue may be in suburban residential subdivisions that have limited lot sizes. Christian stated they could identify lot sizes by 12,000 square feet or less. Christian stated they could say that ownership of more than three dogs would require a kennel permit and would not be allowed on these tracts of land. Christian stated he would like to see how the Commission felt about this before he got more specific. Planning & Zoning Commission Minutes Page 4 February 12, 1997 Werner-Quade stated she agrees that this issue should come back when there is a full Commission present. Werner-Quade commented that working in the Kasiiof wherein they are allowed to have as many pets as they want. Werner-Quade stated she has heard many complaints from people stating they wish they had known they were going to be living next to a dog lot. Werner-Quade noted it is offensive to some people. Werner-Quade stated she felt it important to review the issue. 16. ADJOURNMENT: Meeting adjourned at approximately 7:17 p.m. Respectfully Submitted: Marilyn Kebschull Administrative Assistant KENAI BEAUTIFICATION COMMITTEE February 11, 1997' * * 5:00 p.m. Council Chambers Chairperson Susan Hett ***AGENDA*** 1. ROLL CALL 2. APPROVAL OF AGENDA 3. APPROVAL OF MINUTES: January 14, 1997 4. PERSONS SCHEDULED TO BE HEARD 5. OLD BUSINESS a. 1997 Theme b. Approval of Goals & Objectives 6. NEW BUSINESS a. Litter Bag Program b. Garden Bed Design 7. REPORTS a. Chairperson b. Parks & Rec c. Council 8. QUESTIONS AND COMMENTS 9. INFORMATION a. Seminar Information b. Parks & Rec. Commission Minutes of January 9, 1997 10. ADJOURNMENT ***NOTE MEETING TIME*** -D-/�- KENAI BEAUTIFICATION COMMITTEE February 11, 1997 * * * 5:00 p.m. ***Minutes*** 1. ROLL CALL Members present: Marilyn Dimmick, Karolee Hansen, Susan Hett, Nina Selby, Wilma Jean Rogers Non -Voting Members Present: Linda Overturf, Jeneane Benedict Members absent: Barb Nord, Sylvia Johnson Others present: Councilwoman Linda Swarner, Parks & Rec Director Bob Frates, Administrative Assistant Marilyn Kebschull 1. APPROVAL OF AGENDA APPROVED BY UNANIMOUS CONSENT. 2. APPROVAL OF MINUTES: January 14, 1997 Hett asked for changes or additions to the minutes. Selby noted that on page 3 in the last line that "objections" should be "objectives." SELBY MOVED TO ACCEPT MINUTES WITH THE NOTED CHANGE. APPROVED BY UNANIMOUS CONSENT. 3. PERSONS SCHEDULED TO BE HEARD 1. OLD BUSINESS a. 1997 Theme Hett asked for suggestions for theme. Hett noted they were hoping to incorporate the banners into the theme. Selby suggested, "City of banners and flowers." Discussion about suggestions. "Beautiful highways and byways" suggested by Hansen. Hett asked if they should keep the "Citizens for a beautiful Kenai, beautiful highways and byways." Agreement that this suggestion was a little too long. Dimmick commented that if you leave it at "Beautifying highways and byways" that includes everything without specifying. Beautification Committee February 11, 1997 Page 2 Minutes SELBY MOVED TO ACCEPT "BEAUTIFYING OUR HIGHWAYS AND BYWAYS". MOTION SECONDED BY ROGERS. UNANIMOUS. b. Approval of Goals & Objectives Hett drew attention to the list of goals and objectives that were included in the packet from the discussion last month. Hett asked if anyone had any corrections or additions. Selby asked which cabin they were talking about. Frates noted it was the Cunningham cabin off Beaver Loop. Hett stated the nursery beds should be at the extension plot. Hett asked to combine number 3 and 4. Overturf clarified that Hett was suggesting to expand the nursery bed. Dimmick stated that number 2, as a practical matter, should be changed to marketing chickweed. Dimmick noted it is good for you. Swarner asked for an explanation of number 11. Frates noted his thought was to contact Mapco and to see if they were planning some landscaping and if not if the Beautification could do something and ask for a small donation. Swarner suggested asking for a large donation noting she had talked with them at the dedication and they stated they were not planning on doing a lot of landscaping because in Anchorage it had gotten torn up. Discussion about upkeep difficulties on the corner with traffic and difficulty with watering. Frates stated he could see a problem possibly developing wherein if they maintain flower beds, they may come back and expect them to mow for them. Swarner commented that if they do it for the Mapco corner and don't do it for the Dairy Queen, Katmai, or Arbys that could pose problems. Frates stated they maintain the Katmai. Overturf stated she thought at the last meeting they had discussed seeing if the state was going to maintain it and perhaps just put boxes there. Frates stated they probably wouldn't want boxes there because of the high traffic flow. Frates stated they only corner with boxes is the Katmai because it is accessible. Swarner noted that if Mapco would allow the committee to use their hoses for watering it may not be a problem. Hett stated they could look into more as they get further into spring. Swarner stated that because they are a big corporation they may need to plan ahead. Frates stated he would call and see if they had plans for the corner. Selby asked about what was across on the opposite corner. Frates noted there wasn't anything there last year. Swarner commented that at one time Arbys had stated they would maintain something. Frates stated an alternative would be to Beautification Committee Page 3 February 11, 1997 Minutes place flower boxes on the corner and to ask them to maintain them. Selby asked if there will be anything at Arbys this year. Frates stated he hadn't planned on it because it is too difficult to water. Swarner suggested writing a letter to ask if they will water. Hansen commented that last summer and spring she noted there were not many flowers in front of city hall. Hansen noted she felt it would be nice to have more flowers in front of city hall. Frates stated he will have bulbs, they have the whisky barrels our front and he plans on two hanging baskets. Frates stated that he had felt after the renovation that flowers didn't fit into the scheme. Hansen commented that when she travels she notes how beautiful the flowers are at other city halls. Frates agreed to look into some perennial flowers that would fit into the scheme. Dimmick suggested lilies. Frates questioned number 7, and wondered if this was groups or individuals planning beds. Dimmick commented that she has a list of flowers for planting on both sides of the steps at the Visitor's Center. Dimmick noted that has seeds and is thinking about planting all edible things. Dimmick noted she has wondered about the beds is who is eating them, is it the moose or people. Dimmick noted it was the cabbages. Hett stated she thought it was the moose. Selby asked if Merle Dean would be doing anything this year. Frates stated that he has not been in contact with her. Hett noted that when they went to Anchorage this is something they do adding that Dimmick had a special interest. Dimmick noted it was just the one bed. Overturf stated she thought someone was going to take the small triangle of chickweed by the police department. Discussion about who had been interested in that bed. Frates added number 15, "To plant and maintain the bed at the police department." Add number 16, "To add more flowers to city hall." Frates stated they could look toward next winter to add white lights at Leif Hansen Memorial Park. Frates was questioned if he meant on the trees and stated yes. Agreement to add as number 17. SELBY MOVED TO ACCEPT THE GOALS AND OBJECTIVES FOR 1997. HANSEN SECONDED THE MOTION. UNANIMOUS. Beautification Committee February 11, 1997 6. NEW BUSINESS a. Litter Bag Program Page 4 Minutes Hett reviewed that last fall Shirley Levias had talked to the committee about the litter bag program and that they had discussed starting it this spring. Frates stated he is attempting to find good prices for fanny packs adding that the prices he has found is about $7.50 each. Swarner suggested contacting Mapco or perhaps Tesoro noting it would be good P.R. Frates stated the idea was to pass them out free. Each bag would contact trash bags and rubber gloves. Frates noted the concept was that when they were out walking, they could pick up trash. Hett added the concept for individuals to adopt a neighborhood. Frates noted that was how the program originally began in Anchorage. Frates noted that if they can get two or three of these industries in the area to sponsor the program they would get the advertising by placing their logo on the fanny pack. Frates stated he knew they could beat $7.50 price for each fanny pack. Discussion about possible sources for less expensive fanny packs. Swarner noted K-Mart could be another source. Dimmick noted perhaps they could supply them and donate a portion of the cost. Frates noted he felt the program needed more definition. Dimmick asked if the people who had spoke to the group regarding the program had a lot of P.R. leading up to the program. Selby asked if they would be having the yearly clean up. Dimmick asked if they had Green Star and Hett advised yes and that they were hiring a new director. Frates stated if they could tie it into that program it would be easier. Selby asked if they would be handed out to anyone. Frates noted yes and that was part of the problem. Frates stated that if it was a part of the annual clean up that hopefully they would continue to use them. Hett suggested forming a committee to talk to community members about the program. Hansen stated if they published the names of those who picked up packs, that could encourage them to pick up trash. Dimmick asked if they were including kids and if so to what age. Benedict stated that perhaps they could get with some of the kids groups (4-H, Scouts, Boys and Girls Club) adding that may conflict with the Chamber program. Benedict commented that it takes adults to go with kids. Hett asked if they wanted to pursue it. Hansen commented she felt it was worth trying. Dimmick asked when the cleanup was and Hett advised the weekend after Mother's Day. Frates stated he would firm up prices and send letters to Tesoro, Beautification Committee Page 5 February 11, 1997 Minutes some banks, Mapco, Homer Electric. Dimmick suggested they stick to the private sector noting that HEA is not private. Frates suggested they could add the 1997 theme, "Beautifying highways and byways," to the fanny pack as a logo. b. Garden Bed Design Hett asked if anyone was interested in planning a garden bed design. Dimmick noted she is only interested in the one bed which is located on the sides of the entrance to the Visitor's Center. Dimmick noted they are small. Dimmick commented this will be an experiment to see how she does adding she is not a good planner. Dimmick stated she wanted to make sure that this didn't reflect on Merle Dean adding she loves working with her. Selby stated they should contact Merle Dean and see if she is going to do any plans this year. Hett suggested they may want to wait until they know what they have in the greenhouse to make plans. Frates stated he will be starting the greenhouse the end of the month. Frates stated he hasn't ordered seeds adding he has a couple more weeks to get his orders in. Frates suggested to streamline the process that if every member was appointed to a bed then those members would be responsible for those beds and a number of volunteers. Frates stated that would take the pressure off Frates and Merle Dean to monitor all the beds. Frates noted there are volunteers who want to do it all commenting that that is fine. Discussion that they felt this may be a good idea. Benedict noted that in the past she had called volunteers and asked them to let them know if they couldn't work on a bed and then they would take care of it. Frates stated that way if a bed isn't weeded, he could contact one person. Dimmick asked how many volunteers there were and how many were left at the end of the year. Hett stated there are 25 who are fairly active. Benedict asked if there were applications that people could fill out like they had in the past. Hett stated she has some of the old applications. Hett suggested they put volunteers on next month's agenda and to decide how to organize them, etc. Dimmick stated you would be looking at 3 to 4 volunteers per bed. Benedict reminded the group how it had been when Merle Dean had first started and they all went to her house. The volunteers then helped to plant seeds and Beautification Committee Page 6 February 11, 1997 Minutes follow them through planting in the beds. Benedict questioned Frates if volunteers could be asked if they wanted to help plant the seeds. Frates stated he would appreciate the help. 7. REPORTS a. Chairperson Hett advised February 27`h is the Master Gardening Conference at the Sports Center. Hett noted there is a $35 fee. Hett stated she had been given nomination forms for First Lady Volunteer Awards. Hett noted she was thinking of Helen Brown or Merle Dean adding she would be willing to write the essay. Dimmick asked if it had to be limited to one and Hett stated no. Hett stated it was due March 31 St. Rogers noted that Swarner has volunteered since the beginning and suggested nominating her also. Hett asked if they should nominate all three. Frates asked if anyone could fill out these nominations. Hett stated she believed so. Overturf stated she didn't know how Merle Dean would feel about something like this adding she is very reticent about it. Benedict noted she feels it has to do with her job. Hett stated they could call and ask her how she felt. Frates asked if they wanted to do it as a group or if they wanted to do them individually. Hett stated she would work on essays and bring copies to the next meeting. Hansen clarified that this was the first time this had been done by the board. Hett noted that Merle Dean is retiring adding she doesn't know what she will be doing. b. Parks & Rec Frates stated he had contacted Ken Brown, superintendent at Wildwood, concerning the flower boxes. Frates stated initially he was reluctant but felt that it depended upon who he had in the facility who could take the project on. Frates stated that the conversation ended with Brown agreeing to see if he had inmates who would be willing to take the project on. Frates stated they are not doing off site projects anyone. Hett asked if they could make new boxes and Frates stated probably if they materials were supplied. Frates stated they had a teen center ski trip taking ten kids and it was a good trip. Frates reported that two weekends ago they held a women's basketball tournament Beautification Committee February 11, 1997 Page 7 Minutes and last weekend a men's basketball tournament. Frates stated these were successful adding that the economic impact was good with the out of town teens. Frates noted they had a middle school dance three weeks ago with 105 kids attending. This weekend there is a Valentine Wally Ball blast. c. Council 8. QUESTIONS AND COMMENTS 9. INFORMATION a. Seminar Information b. Parks & Rec. Commission Minutes of January 9, 1997 10. ADJOURNMENT Meeting adjourned at approximately 5:55 p.m. Respectfully submitted: Marilyn Kebschull Administrative Assistant �.I AGENDA RENAI CITY COUNCIL - REGULAR MEETING February 5, 1997 7:00 P.M. 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) 1. Becky Gay - Resource Development Council Update 2. Sara Pearson/Charles Cranston - Youth Court Presentation 3. Alaska Regional Fire Fighting Facility - a. Fire Chief Burnett/Tim Orthmeyer (Symtron) b. Mayor Williams/Finance Director Larry Semmens C. Ron Simpson, FAA d. Dennis Steffy, MAPTS e. EDD Representative f. Bob Reynolds, British Petroleum g. Jack La Shot, City Engineer h. Billie Harris, Nikiski Fire Department i. Will Jahrig, Contractor j. Lou Schilling, Contractor k. Bill Sharrow, Representative Young's Office 1. Peggy Arness, Senator Stevens' Office C. PIIBLIC HEARINGS 1. Ordinance No. 1733-97 - Appropriating $15,000 of Grants Received for Development of the Alaska Challenger Learning Center and Authorizing the Transmittal of this Grant Money to the Alaska Challenger Center for Space, Science and Technology, a Not -for -profit Corporation. -1- 2. Resolution No. 97-4 - Awarding a Contract to Kluge & Associates to Perform an Evaluation of Certain Municipal Buildings for Compliance with the Americans With Disabilities Act (ADA) for the Total Amount of $4,060.00. 3. Resolution No. 97-5 - Transferring $4,000 in the General Fund for Street Department Overtime. 4. Ratification of Protests: Continuance of 1996/97 Liquor Licenses - a. The Katmai Hotel, Restaurant & Lounge/Eaglechief, Inc. b. The Upper Deck Lounge c. New Peking Restaurant d. Casino, Inc. e. Alaskalanes, Inc. f. American Legion Post #20 5. *1997/98 Liquor License Renewal - Pizza Paradisos/ 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 January 15, 1997. 2. *Kenai City Council Work Session of January 13, 1997. 3. *Kenai City Council Work Session of January 27, 1997. F. G. OLD BUSINESS H. NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 -2- 3. *Ordinance No. 1734-97 - Increasing Estimated Revenues and Appropriations by $1,445 in the General Fund for the Women's Basketball League. 4. Approval - Assignment of lease for Security Purposes, Lot 3, Block 4, GAA - Adolf to Bob's Pawn, Inc. and W.W. Wilson, III. 5. Discussion - Assisted Living Center. 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- KENAI CITY COUNCIL - REGULAR MEETING February 5, 1997 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://vvw.Kenai.net/city ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:01 p.m. in the Council Chambers in the Kenai City Hall Building. A-1. PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Bookey, Swarner, Moore, Measles, Smalley and Williams. Absent was Bannock. A-5. AGENDA APPROVAL Mayor Williams reported he had no changes to the agenda. MOTION: Councilman Smalley MOVED to approve the agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. A-6. CONSENT AGENDA Mayor Williams reported he had no changes to the consent agenda. MOTION: Councilman Smalley MOVED for approval of the consent agenda as presented and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENT Becky Gay - Resource Development Council Update Ms. Gay presented an overview of what the Resource Development Council's involvement is within the state. Gay stated RDC is a broad -based membership organization interested in resource development in Alaska. The organization has been operating for 21 years. Their goals are to promote and support sound resource development in Alaska; continue their leadership position on land, resource and private property rights issues affecting KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 2 multiple sectors of the Alaska economy; provide factual information on land, environmental and resource issues to RDC members, the general public, the media and government entities; have a broad -based membership who are interested in resource development; and, advance the resource education of Alaska's youth. At this time, RDC has been working on issues such as wetlands; ANWR; Lease Sale 149; salvage timber sales; water and air quality issues (low sulfur air, mixing zones, discharge water quality issues) . Gay urged council to reconsider their membership to RDC as they would like to have Kenai back as a member. She added, Kenai and Valdez were the first communities who were members to RDC. Gay referred to House Bill 51, which is similar to the water quality bill passed last year and vetoed by the Governor. The bill would affect anything in regard to MPDES permits (mixing zones). Swarner requested administration to follow that bill. Gay mentioned municipalities/communities now members as Seward, Mat -Su Borough, Anchorage, Valdez, Palmer, Bethel, Juneau Bristol Bay Borough, etc. She will forward a complete listing of the membership for the city's review. B-2. Sara Pearson/Charles Cranston - Youth Court Presentation Sara Pearson and Law Clerk Ken Lord spoke, giving an overview of what Youth Court offers for first-time offenders youth offenders. They explained Youth Court provides the opportunity for young people who are accused of breaking the law to be judged by their peers. The program is available for students in grades 7-12 or ages 12 through 18. Court roles (judges, attorneys, bailiffs, jurors, etc.) are filled by young people. It is a real court of law and real sentences are imposed. Parents of first-time offenders choose whether to have their children tried by their peers or through regular court. Using Youth Court allows them to resolve their legal problems without a criminal record. Pearson explained their are approximately 100 youth on the Peninsula who are involved with Youth Court. The youth involved with Youth Court want to make an impact and feel it is a way for them to help their peers. The youth go through an intensive study and have to sit for a bar exam. Lord added, benefits in having a Youth Court include the decrease of costs on the court system. If the sentence is completed, nothing is listed on the KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 3 youth's criminal record. A Youth Court coordinator follows up with whoever the youth has been assigned to perform community service time. Those involved in Youth Court also receive school credit. Pearson announced there would be a mock trial held on February 20 at 5:00 p.m. at the court house at which people can attend and see how the system works. Williams asked what the source of funding is for the program. Pearson answered it was volunteer at this time, however they have received cash donations from private businesses and they have talked with the Borough Assembly for funding as well as they are investigating the possibility of applying for a state grant. She estimated the amount needed to be $50,000 excluding that which has already been donated. B-3. Alaska Regional Fire Fighting Facility - a. Fire Chief Burnett/Tim Orthmeyer (Morrison, Maierle, Inc.) b. Mayor Williams/Finance Director Larry Semmens C. Ron Simpson, FAA d. Dennis Steffy, MAPTS e. EDD Representative f. Bob Reynolds, British Petroleum g. Jack La Shot, City Engineer h. Billie Harris, Nikiski Fire Department i. Will Jahrig, Contractor j. Lou Schilling, Contractor k. Bill Sharrow, Representative Young's Office 1. Peggy Arness, Senator Stevens' Office Fire Chief Dave Burnett began the lengthy presentation by providing a packet of letters of support from FAA, DOT Commissioner Perkins, EDD and Borough Mayor Navarre. Also, he distributed copies of floor plans for four different design options for the design of the building. He explained what FAA found to be eligible for federal funding and gave information in regard to the four options. The four options were: Option I - A two-story building with items not funded by FAA in gray. Basic design, most of second floor unfinished. Option II - Like option I, city's participation $620,000; total project cost $9,906,000. Option III - Same building design as Option II, but with framed, unfinished area for lease (possibly for Borough Emergency Operation Center). Estimated city participation at $1,020,000 and total project cost of $10,342,000. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 4 Option IV - Same building design with second floor completed for use as lease space for Emergency Operation Center (management training, earthquake drills, and emergency plan operations). Estimated city participation at $1,320,000 and total project cost of $10,659,000. Burnett explained, the center would be used for more than ARFF training. It would be used primarily for unified training and long-range planning, including moving the Alaska Fire Academy into the building. They expect to market the center to the Pacific Rim and in the future call the facility PRISM (Pacific Rim Institute of Safety and Management). Ground breaking is planned for June. Areas of training would include cold water recovery, Emergency Management Services, confined rescue, etc. Also, those in the fishing industry, persons requiring CDL's, etc. could also receive their required training at the facility, turning it into a Alaska Fire Academy campus. Tim Orthmeyer of the engineering firm of Morrison, Maierle reported they had finished the preliminary design phase and reviewed their letter (included in the packet) which reported what had been completed thus far with the project. Orthmeyer explained the original design included two separate buildings. They since consolidated them into one building to reduce the cost of the site. He added, he and a representative from Symtron, as well as city staff met with FAA yesterday and discussed Airport Trust Funds and found there is a possibility of a congressional delay in receiving the funds. Bill Kluge, architect for the project, reported the building design was well -functioning and efficient. Through their visits to the Helena, MT and Modesto, CA sites, they were able to note deficiencies in those buildings, as well as their effective details to make a better design. Councilman Smalley asked if there were concerns with the flat - roof design. Kluge explained what material would be used and additional information in regard to the structure and covering on the roof. He also discussed snow capacity the roof would be designed to hold. Councilwoman Swarner asked if the building size was decreased, would FAA still not fund 20% of the building. Orthmeyer answered, Option I was a floor plan FAA would participate in KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 5 completely, however, no cost estimate had been prepared for that design. He added, if the building was fully funded, there were possibilities of leasing part of the building for EOC use. There was also a question about the use of concrete block in the building. Engineer Bill Nelson stated it would be masonry which is reinforced for seismic loads. Chief Burnett completed the presentation by urging council to consider Option IV and added, education is the role of Kenai's future. Mayor Williams presented an overview of Airport Fund income, investments and fund balances. He reviewed the building options and explained Option I had been dismissed as the design was developed prior to their visits to Helena and Modesto and before they knew as much as now known in regard to the fire training business. Williams explained Option IV was what they were hoping to build at a total cost of $10,659,000. He explained the federal government would pay $8,774,000 which would include Kenai's $700,000 entitlement monies. The remainder would be $1,932,000 for the city to pay. Williams explained the General Fund and the Airport Fund operated separately. He added, FAA has said the City could use the Airport Fund monies for the ARFF and there was money in the Land System Special Revenue Fund, not earmarked for any project. He proposed using $2 million of that money for the city's share of the ARFF cost. That $2 million, he said, would be recovered within approximately two years through lease payments, etc. There would also be a return to the city through clients of the training facility using hotel/motel rooms, restaurants, etc. as well as sales tax into the city. Airport Manager Randy Ernst noted, revenue received from trainees would go back into the Airport Fund, plus those revenues would take care of operating costs of the facility. Dennis Steffy of MAPTS announced they had been recently named the Sakhalin government's official training authority for Sakhalin Island projects. Letters of Intent had been signed by Marathon, Shell, Mobil, Texaco and Exxon to institute a Kenai Community College of Sakhalin Island. They hope to utilize the skills and talents of people in the community and in every technological area, i.e. engineering, well and gas development, fisheries, etc. The project should be fully underway in June, 1997. This will open the Russian/Far East, every airport wanting scheduled KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 6 airliner service to develop resources and they will be providing airline firefighter and rescue training as Kenai will be the closest facility for the training. Ernst added, the base income for the project was somewhat built in because all of the state's firefighters are required one drill a year and that fixes a base because they have already received a commitment from the State of Alaska to bring their people to train in Kenai. That requirement could change to four times a year. It was asked how much of the work will be or has been awarded to local contractors. Engineer Bill Nelson answered, because of the size of the project, there may be bidders from Anchorage and possibly Seattle. He believed most of the contractors would subcontract work to local subcontractors. He added, the majority of the work would be done by local subcontractors. Kluge added, there are three contractors on the Peninsula who can bond for this size of a job and the development of the facility should be good for local economy. Williams stated they were asking for council's strong consideration to build Option IV. He added, an ordinance for the engineering work (approximately $300,000) would be introduced at the February 15 meeting and the public hearing would be held on March 5. Mr. Reynolds of British Petroleum stated his job responsibilities had to do with Alaska hire and purchases. He was not directly involved in the ARFF, however, Kenai would, after the building of ARFF, have the infrastructure for building other educational facilities. He added, he was looking forward to giving BP's support. Will Jahrig stated he thought, at first, General Fund monies for the development funds would come from the Airport Fund. he thought General Fund monies would be the facility would be positive business he felt it would be even more positive. BREAK TAKEN: 8:44 P.M. BACK TO ORDER: 8:55 P.M. the city would be using of ARFF and now knew He believed, even when used the development of for the community. Now KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 7 ITEM C: PUBLIC HEARINGS C-1. Ordinance No. 1733-97 - Appropriating $15,000 of Grants Received for Development of the Alaska Challenger Learning Center and Authorizing the Transmittal of this Grant Money to the Alaska Challenger Center for Space, Science and Technology, a Not -for -profit Corporation. MOTION: Councilman Measles MOVED for the adoption of Ordinance No. 1733- 97 and Councilman Bookey SECONDED the motion. Ginger Steffy - Identified herself as the President of the Challenger Board of Directors and explained the ordinance would allow for pass -through monies. Their intentions were to acquire matching monies to keep the operation moving forward. VOTE: Moore: Yes Measles: Yes Smalley: Yes Williams: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. Bannock: Absent Bookey: Yes C-2. Resolution No. 97-4 - Awarding a Contract to Kluge & Associates to Perform an Evaluation of Certain Municipal Buildings for Compliance with the Americans With Disabilities Act (ADA) for the Total Amount of $4,060.00. MOTION: Councilman Smalley MOVED for adoption of Resolution No. 97-4 and Councilwoman Swarner SECONDED the motion. There were no public comments. Councilman Moore asked which buildings would be evaluated. City Engineer La Shot answered nine buildings would be evaluated; City Hall, Airport Terminal, Visitor Center, Library, Congregate Housing; Public Safety and Recreation Center -- buildings most used by the public. Smalley asked if the evaluation would continue to keep the City in compliance with the mandate. La Shot answered, yes and that it would give a better picture of budget costs. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 8 VOTE: Councilman Smalley requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. C-3. Resolution No. 97-5 - Transferring $4,000 in the General Fund for Street Department Overtime. MOTION: Councilman Bookey MOVED for adoption of Resolution No. 97-5 and Councilman Smalley SECONDED the motion. There were no public comments. Councilwoman Swarner stated she thought council had directed that funds should not come from contingency and should come from other areas of the department budget. Ross explained monies were budgeted for overages on budget items. Swarner asked if there were no other areas of the Public Works budget from where the funds could be transferred and Kornelis answered no. VOTE: There were no objections. 80 ORDERED. C-4. Ratification of Protests: Continuance of 1996/97 Liquor Licenses - a. The Katmai Hotel, Restaurant & Lounge/Eaglechief, Inc. b. The Upper Deck Lounge c. New Peking Restaurant d. Casino, Inc. e. Alaskalanes, Inc. f. American Legion Post #20 Clerk Freas explained the ABC regulations allow for a local governing body to protest the continued operation of a license during the second year of the biennial license period by sending a protest to the board by January 31 of the second year of the license period. Those businesses listed were owing obligations to either the Borough, the City, or both. She requested a motion to ratify the protests. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 9 MOTION: Councilman Smalley MOVED to ratify the protests for continuance of 1996-97 liquor licenses as presented and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. C-5. 1997/98 Liquor License Renewal - Pizza Paradisos/ Beverage Dispensary. Approved by consent agenda. ITEM D: COMMISSION/COMMITTEE REPORTS Council on Aging Councilwoman Swarner reported the Council on Aging met on Friday, January 31. They reviewed information received through their Town Meeting. They intend on implementing new ideas and functions through the year, i.e. buffets on Wednesdays and Friends Day. Swarner added survey results were available for review. D-2. Airport Commission Councilman Measles reported the next meeting was scheduled for February 13. D-3. Harbor Commission Councilman Bookey reported the January 13 meeting minutes were included in the packet. The next scheduled meeting would be held on February 10. D-4. Library Commission Councilman Moore reported the Commission met February 4 during which there was a work session with councilmembers in regard to the future of the library. He added, they discussed the Commission's early process of identifying future needs and functions of the library and legal deficiencies of the building. They also debated methods to expand the library and discussed possible funding. Moore also reported the Friends of the Library would be holding their annual tea on February 16. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 10 D-5. Parks & Recreation Commission Parks & Recreation Director Frates reported the minutes of the last meeting were included in the packet. At the meeting, the Commission continued their discussion in regard to the Community Needs Survey which should be published by Spring. The Commission also discussed the forming of a Cemetery Committee which would be brought to council in the near future. The next meeting would be held February 6 at the Teen Center. During the meeting, they will be discussing designs of skateboard parks. D-6. Planning & Zoning Commission Councilman Smalley reported the Commission held a short meeting, the minutes of which were included in the packet. The next meeting will be held February 12. D-7. Miscellaneous Commissions and Committees D-7a. Beautification Committee Swarner reported the minutes of the January 14 meeting were included in the packet. The next meeting was scheduled for 5:00 p.m. on February 11. D-7b. Historic District Board Moore reported the minutes of the last meeting were included in the packet. At their next meeting, the Board will discuss the Lindgren/Jones and Cunningham houses. The Board is also working on sign quotes. He also noted Kim Booth handed in her resignation and the Board requested to change their next meeting date from February 17 to February 24. Council had no objections in changing the meeting date. D-7c. Challenger Board Kathy Scott reported an "Experience Challenger" seminar would be held in Seattle on March 15. Room was still available if councilmembers would like to attend. Also, Challenger would have a display at the Health Fair and would be giving a presentation at 2:00 P.M. on Saturday, February 8. D-7d. Kenai Visitors & Convention Bureau Board Bookey reported the next meeting would be held on February 10. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 11 D-7e. Alaska Municipal League Report Swarner reported she would be included in a teleconference on February 6 in regard to economic development. During the teleconference, she added, she would bring up HB 51 and request AML to investigate the bill. Swarner requested administration to follow the progress of HB 51. ITEM E: MINUTES E-1. Regular Meeting of January 15, 1997. Approved by consent agenda. E-2. Kenai City Council Work Session of January 13, 1997. Approved by consent agenda. E-3. Kenai City Council Work Session of January 27, 1997. Approved by consent agenda. ITEM F: None. ITEM G: None. ITEM H: H-1. MOTION: CORRESPONDENCE OLD BIISINESS NEW BIISINESS Bills to be Paid, Bills to be Ratified Councilman Smalley MOVED to pay the bills and there were no objections. SO ORDERED. H-2. Purchase orders Exceeding $2,500 KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 12 MOTION: Councilman Smalley MOVED to pay the purchase orders over $2,500 and Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-3. Ordinance No. 1734-97 - Increasing Estimated Revenues and Appropriations by $1,445 in the General Fund for the Women's Basketball League. Introduction approved by consent agenda. H-4. Approval - Assignment of lease for Security Purposes, Lot 3, Block 4, GAA - Adolf to Bob's Pawn, Inc. and W.W. Wilson, III. Attorney Graves noted this was a routine security assignment. He added, there was some confusion due to the lessee going forward with the assignment with an option to buy back first before bringing it to the city for approval. This was brought to their attention and they resubmitted an assignment. MOTION: Councilman Smalley MOVED for approval of the assignment of lease for security purposes, Lot 3, Block 4, GAA, Adolf to Bob's Pawn, Inc. and W.W. Wilson, III. Councilman Bookey SECONDED the motion. There were no objections. SO ORDERED. H-5. Discussion - Assisted Living Center. City Manager Ross referred to his and Attorney Graves' memorandum to council which was included in the packet. The memorandum discussed theirs and Bond Counsel Klinkner's recommended procedures for the use of revenue bonds. Leo Grasso, Continuum Corporation introduced Mark Thomas of Progressive Capital to speak in regard to their proposed use of the city's bonding authority. City Manager Ross - Referred to the memorandum included in the packet. He added, after reviewing the issue with the Finance Director and City Attorney, and conversations with Mr. Grasso, the memorandum was produced with copies of the Charter and Code in regard to use of bonds attached. Also included in the memorandum was a recommended procedure for council to follow if they wanted to entertain the proposed use of government bonds. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 13 Mark Thomas - Thomas explained, Progressive Capital specialized in industrial revenue bonds and housing bonds. He personally had been working as trustee and investment banker on various bond issues since 1981 in Washington and Utah. Thomas explained, he believed if there is a good project, there's a bond counsel that is trusted and the financing team is experienced, the dangers of a bond issue and liabilities can be mitigated. He added, it was a matter of trust. In regard to conduit financing, the city's name would be on the bond. In this type of financing, the proceeds are lent to the developer and the financial liability remains with the developer. Also, in case of a default the city would not have financial responsibility. The real danger of the issues was if there was something illegal going on. There has to be comfort that things are being done correctly. Thomas referred to Klinkner's concerns from his letter, i.e., the city would incur liability for false or misleading information if the city disseminated the information with knowledge it was false or misleading or in reckless disregard of facts. He felt that would be fairly easy for the city to avoid. The second grounds for difficulty would lie if, in the opinion of bond counsel, if in fact the opinion of the city's bond counsel was improperly given. He added, he believed it lies in trust of the legal people protecting the city. He stated, he believed the city's ordinance was excellent and if council follows it, based on the recommendations (of the memorandum and Klinkner letter), the city should be able to avoid the liabilities that are possible with these bonds. Thomas stated he has been involved with lots of bond issues and with that, lots of successful financing. He has never been involved in putting together a bond package that failed. He added, he never has seen a city run into trouble with industrial revenue bond unless there was illegal activity involved, i.e. confiscation of funds, misrepresentation, or purposeful illegal activity. He explained, an industrial revenue bond is an economic development tool for the city. In referring to what the city would get out of it, Thomas stated there would be about 30 jobs and community growth. He added, he thought it would be a legitimate way for the development of the facility if the city was comfortable with the financing team and bond counsel. He believed it was the equivalent liability of putting in sewer lines, or a new sidewalk. However, he did not recommend council to go forward with the bonds without a lot of thought. He did KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 14 recommend council to go forward with the industrial revenue bond as an economic tool, with discretion, following the outline of the city's rules and if they are followed, the city should be protected. Williams requested Thomas to discuss situations involving financial liability of the City of Kenai with regard to the structuring of the bonds, financing of the project and possibility of a worst -case scenario, i.e. total default of the bond by the developer. Thomas explained: (1) The city wouldn't incur financial responsibilities up front. If an accountant is required to review financial statements, a bond counsel to review documents, etc., it is understood up front those costs are to be paid by the developer. He added, some cities charge a fee for their own staff to review and prepare documents. He believed that would be appropriate for the city to consider doing. (2) Once the bonds are issued, they are held by a trustee bank. Requisitions are made from the funds and as the money is expended for the project, the project starts generating funds and pays back the bondholders through the trustee bank. If the project does not succeed, and doesn't generate revenues for whatever reason, in these kinds of projects, there is credit enhancement (an insurance company, a bank, some kind of large financial institution) guaranteeing the payment of the bond to the bondholders. In case of this project, it would be a commercial bank which should have a national rating of A or better. Thomas added, Continuum is investigating two AA -rated banks the strongest financial institutions they can arrange which should give the city some comfort. If the development fails, the banks are irrevocably obligated to pay the debt service to the bondholders in a timely manner; both principal and interest. Williams clarified, if the project goes into default, the bank who is guaranteeing the bonds would be financially responsible for the payments and the financial responsibility would not fall to the city. Thomas stated, yes. Williams suggested there would be a written guarantee included in the documents to that effect. Thomas answered, absolutely and added, the bank's name would be on the deed of trust. He added, if there is a default, the bank would take the property and sell it to a developer or company they believe can run it successfully. City Manager Ross asked Thomas if he agreed with his and Graves' recommendation that an irrevocable letter of credit is received KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 15 before any further procedures are taken by council. Thomas stated he thought it appropriate. Thomas added, he believed it would not be a serious project until a letter of credit was in line. Ross asked Thomas if he agreed that they (Thomas and Continuum) had reviewed the ordinances and agreed on the process. Thomas answered yes. Ross added, Council now needed to agree philosophically that they agreed with funding a program using the city's bonding authority and these were the processes to be followed. Ross added, that was where council was at now, determining whether to use the revenue bonding authority in the City of Kenai in this manner. Also, that Continuum and Thomas have the ordinances, Charter and recommended procedures which he (Thomas) has stated the other party has agreed to follow. Ross asked if Thomas agreed. Thomas stated yes. Attorney Graves added, the city was not making any commitment at this time. Councilman Bookey asked if using industrial revenue bonding for this project would impact the city's government obligation bonding capacity? Finance Director Semmens answered, no and added, the State had a cap of $150 million for these types of revenue bonds. The State bond boards would have to approve the use of the industrial bonds. He added, through his discussions with them, he has their assurances the bond board would approve the use. Williams referred to the Klinkner letter and concerns included in it and stated he thought the biggest things the council should be concerned about is the city does not involve itself in anything false or misleading and the counsel assures council there are no false or misleading statements in the package. Also, the city should disclaim any issues that may cause the city concern with regard to false statements and misinformation. Williams added, he didn't think the concern would be false statements and misleading information, because that would be reviewed thoroughly by the AA bank putting up the cash guarantee. He said, he thought the city's concern should be that there is an absolute, undeniable understanding of responsibility by the bank that they are responsible for the payments and the city is not. After council comes to that conclusion, he felt it would as safe an investment as any other the city could make. Thomas stated, there are bond issues where the city would have liability, but this was not one of them. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 16 Williams stated he would support the continuation of the examination of the potential for the city's involvement and would agree to administration's recommendation not to waive any requirements of the city code. Ross stated, whether or not council decided to use revenue bond authority in this manner was council's decision. He added, Continuum had agreed on the processes in accordance with the ordinances and administration had taken a conservative approach. If council decides to proceed forward, the ball was in Continuum's court. Ross added, Thomas had agreed council should not proceed any further until a letter of credit is produced by a commercial bank and a proposal is presented. Thomas agreed and added, he thought this was the wise direction to take. MOTION: Councilman Smalley MOVED for the city to continue to investigate this process with the Continuum Corporation and that all aspects of the memorandum as spelled out, requirements in the city code, are met at 100% compliance. Councilwoman Swarner SECONDED the motion. VOTE: Moore: Yes Measles: Yes Bannock: Absent Smalley: Yes Williams: Yes Bookey: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. EXECUTIVE SESSION - None Scheduled. ITEM I: ADMINISTRATION REPORTS I-1. Mayor a. Economic Development Assembly - Williams requested a date be scheduled to sponsor a discussion with the top 40 property taxpayers, top 20 sales taxpayers, and ten top personal property taxpayers, as well as other citizens/business owners of the community in regard to the promotion of economic development in the city. Williams added, he had already heard from one organization of the community has offered to co -host the assembly by sponsoring a breakfast. Council agreed it would be a good idea and chose April 26 at 9:00 a.m. as the date. The place KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 16 Williams stated he would support the continuation of the examination of the potential for the city's involvement and would agree to administration's recommendation not to waive any requirements of the city code. Ross stated, whether or not council decided to use revenue bond authority in this manner was council's decision. He added, Continuum had agreed on the processes in accordance with the ordinances and administration had taken a conservative approach. If council decides to proceed forward, the ball was in Continuum's court. Ross added, Thomas had agreed council should not proceed any further until a letter of credit is produced by a commercial bank and a proposal is presented. Thomas agreed and added, he thought this was the wise direction to take. MOTION: Councilman Smalley MOVED for the city to continue to investigate this process with the Continuum Corporation and that all aspects of the memorandum as spelled out, requirements in the city code, are met at 100% compliance. Councilwoman Swarner SECONDED the motion. VOTE: Moore: Yes Measles: Yes Smalley: Yes Williams: Yes Swarner: Yes MOTION PASSED UNANIMOUSLY. EXECUTIVE SESSION - None Scheduled. ITEM I: ADMINISTRATION REPORTS I-1. Mayor Bannock: Absent Bookey: Yes a. Economic Development Assembly - Williams requested a date be scheduled to sponsor a discussion with the top 40 property taxpayers, top 20 sales taxpayers, and ten top personal property taxpayers, as well as other citizens/business owners of the community in regard to the promotion of economic development in the city. Williams added, he had already heard from one organization of the community has offered to co -host the assembly by sponsoring a breakfast. Council agreed it would be a good idea and chose April 26 at 9:00 a.m. as the date. The place KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 17 would be identified later. Williams requested council's permission to go forward with the assembly and for administration to work on the invitation list and mailing the invitations. There were no objections from council. Councilman Bookey requested the Kenai Chamber of Commerce Board Members be included on the invitation list. There were no objections. b. Goals & Objectives Work session - Williams requested council to schedule a work session to review the goals and objectives list and council agreed with Williams' suggested date of May 14. Williams noted, May 14 would be after the economic development assembly on April 26 and what is garnered from that assembly may be included with the goals and objectives of council. I-2. City Manager No report. I-3. Attorney a. BOR Lands - Graves noted Councilwoman Swarner had asked for an update (during last work session) in regard to the potential trade of BOR lands, along the golf course, for other recreational property. The trade of the lands would allow the golf course lots to be sold as residential lots. Graves suggested he investigate the possibility of their releasing those lots in order for the city to sell them, placing the money received from the sale into a trust account. The sale monies would then be used to purchase property for recreational use. Graves added, during the last discussions in regard to a land swap, the subordinates were sympathetic to a swap, but those in charge were not. Swarner requested Graves to proceed and council agreed. I-4. City Clerk a. Conflict of Interest Forms - Clerk Freas noted she had distributed the 1997 Conflict of Interest Forms for council to prepare and return to her on or before April 15. b. Budget Draft - Freas requested council to review the draft of the Legislative budget she prepared and return any additions or changes to her by Wednesday, February 12. KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 18 C. Kenai Alternative School Graduation - Freas noted a letter from the Kenai Alternative School which was included in the packet. The letter requested a donation toward their graduation activities. Freas reminded council they had included $100 in the 1996/97 budget for this purpose. d. Kenai Central High School Graduation - Freas noted a letter from the KCHS After -Graduation Committee in which they requested a donation toward their activities as well as a waiver of the Recreation Center use fee. Freas reminded council they had included $300 in the 1996/97 budget for this purpose. However, the request for waiving of the Recreation Center use fee woud be brought to the Parks & Recreation Commission at their meeting on February 6. She suggested, if council approved of the fee waiver, they could include it in a motion, but contingent on the Commission's decision. MOTION: Councilman Smalley MOVED to donate $100 to the Kenai Alternative School and $300 to the KCHS After -Graduation Committee. Councilwoman Swarner SECONDED the motion. Smalley requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. MOTION: Councilman Smalley MOVED based on the discussion of the Parks & Recreation Commission meeting tomorrow night that an arrangement be made pending that decision between the City of Kenai Recreation Center and Kenai High School for after -graduation activities. Councilman Measles SECONDED the motion. There were no objections. SO ORDERED. I-5. Finance Director Finance Director Semmens reported he would attend the February 19 Coalition meeting at which personal property and sales taxes would be discussed. He requested council forward any thoughts they had on the subjects to him or attend the meeting. I-6. Public Works Director Public Works Director Kornelis reported the following: a. Mission Street Project - DOT received word from Federal Highways the environmental document on the Mission Street project had been approved. Federal Highways did give their go-ahead with KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 19 the underground conduit and junction boxes for the lighting system. He added, DOT thought the city would have to bid the light poles and fixtures at a later date. He was still trying to get an answer on the light bases. Kornelis added, DOT had been hanging onto the plans because of a federal requirement that says they are not to start the plan review, right-of-way or utilities until the environmental document is approved. DOT is now starting the review and want an additional three weeks to complete the review. They believe the public hearing would be held the first part of March. They did assure him the project was on DOT's bidding list for April. b. Wellhouse No. 3 - Kornelis reported Wellhouse No. 2 had a broken gasket which caused the wellhouse to flood. It was down for three days, but was now repaired and back up and running. They did have the back up of the tanks, so there was no real danger. Wellhouse No. 3 was running and doing real well. There have been a lot of compliments in regard to the water. The contractor was finalizing punch list items. I-7. Airport Manager No report. Mayor Williams recognized Pat Porter and Bob Frates for receiving the Kenai Chamber of Commerce's Community Service Awards for their's and their department's work with the Senior Center and Parks & Recreation Department. - ITEM J: J-1. None. J-2. DISCUSSION Citizens Council Bookey - Thanked the team who made the ARFF presentation at the beginning of the meeting. He felt it was an excellent presentation that would make the council's decision very easy. Swarner - Stated her concern that were vehicles being parked on the City Hall lawn. She added, the Parks & Recreation Department works hard to have the lawn look nice during the summer and vehicles should not be parked on it as it is not KENAI CITY COUNCIL MEETING MINUTES FEBRUARY 5, 1997 PAGE 20 healthy for the lawns. Some of the vehicles parking on the lawn are city vehicles. She didn't feel there was a lack of parking spaces in the lot and street parking could also be used. She suggested city and Health Center employees not park in the front lot when they can park in other areas. She added, she felt the city departments should look at what they do that affects other city departments. Moore - Also complimented Chief Burnett on the presentation and added, it was very well done. Measles - Agreed with the compliments of the ARFF presentation. Smalley - Stated he also appreciated the presentation and added, it would help make his decision very easy. Smalley also agreed that education was the future for everyone. Smalley also reported a meeting would be held at the Lake Clark office in regard to its planned closing. Representatives who will make the decision will be there. Ross informed council he would be attending the meeting and felt the decision had already been made. Smalley stated there was a possibility the office would stay open to some degree. Ross stated from his last discussion on the matter, he felt they would have a summer presence in the office only. Smalley asked if council would object to purchasing an airline ticket for a councilmember to attend the "Experience Challenger" in Seattle as he would like to attend. He added, he believed the city would have something to gain from it and the city will be very much involved in the Challenger Center. Smalley noted there was sufficient funds in the Legislative travel budget. There were no objections to Smalley's request. ITEM K: ADJOURNMENT The council meeting adjourned at approximately 10:03 p.m. Minutes transcribed and submitted by: Carol L. Freas, City Clerk PAYMENTS OVER $2,500.00 WHICH NEED COUNCIL APPROVAL COU MEETING OF: February 19, 1997 VEN[,.,.< DESCRIPTION DEPARTML... ACCOUNT AMOUNT FOR RATIFICATION HOMER ELEC ASSN ELECTRICAL USAGE VARIOUS AK CHALLENGER CENTER MISC. GRANTS NON-DEPT. PACIFIC TELECOM INC. PHONE USAGE VARIOUS UTILITIES $37,056.48 GRANTS $15,000.00 COMMUNICATIONS $3,889.93 FOR APPROVAL: PACIFIC TELECOM INC. WELLHOUSE #3/RAISE CASE WATER SYS IMPROV 96 CONSTRUCTION $6096.59 - $540.00 LINE TO GET CLEARANCE FOR OVERAGE DUE TO DRIVEWAY TO WELL SITE. LABOR AND MATERIALS COMING IN HIGHER THAN THE ESTIMATE - PO #90155 INVESTMENTS: VENDOR DESCRIPTION AMOUNT MATURITY DATE Effect. Int DAIN BOSWORTH FHLB/US GOVT AGENCY SECURITY U S BONDS FREDDIE MAC - US GOVT AGENCY 2, 253, 555.00 12/9/97 5.43 1,000,000.00 2/19/99 6.05 PURCHASE ORDERS OVER $2,500.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: February 19, 1997 VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT NO P.O.'S SUBMITTED Suggested by: Airport Manager 4 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 Aircraft 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 250 000 Increase Appropriations: Engineering 2 0 000 Airport Land System Increase Estimated Revenues: Appropriation of Fund Balance 250 000 Increase Appropriations: Airport Land - Transfers 250 000 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 Introduced: February 19, 1997 Adopted: March 5, 1997 Effective: March 5, 1997 Approved by Finance: (2/13/97) kl CITY OF KENAI It cd eapiW 4 4"- 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 kyftyy &kMrbCrM I I Is 1 1992 Memorandum Date: February 11, 1997 To: Richard A. Ross, City Manager From: Kim Howard, Administrative Assistant r RE: Dept. of Health & Social Services Agreement - City Hall The agreement for the office space occupied by the Kenai Health Center expired January 31, 1997. It is the intention of the Department of Health and Social Service to continue to occupy this space for the foreseeable future. They wish to continue to pay the city $776.70 per month for utilities and janitorial costs. Does the City Council wish to enter into a new agreement for the period February 1, 1997 through January 31, 1998, at the current rate? Attachment BM Cary R. Graves City Anomey CITY OF KEN 210 Fidalgo Ave suite 200 I Kenai, Alaska 99611-7794 283-3441 FAX 283-3014 AGREEMENT This indenture, entered into on the day of 1996 between the CITY OF KENAI 210 Fidalgo Avenue, Suite 200 Kenai, AK 99611-7794 hereinafter called the City, and the STATE OF ALASKA for the Department of Health and Social Services Division of Public Health P.O. Box 110611 Juneau, AK 99811-0611 hereinafter called the State: WITNESSETH: That the City does hereby demise and let unto the State the following described premises, to wit: Approximately 1147 square feet of office space located on the first floor of the Kenai City Hall Building, at Lot 11, Block 1, Fidalgo Commercial Center Subdivision, Kenai, Alaska, to have and to hold the same, with all appurtenances unto the State for the term of approximately twelve (12) months beginning on the lst day of February, 1996 and ending on the 31st day of January, 1997 at and for the utilities fee of $776.70 per month, payable on the first day of each and every month of said term at the office of the city whose address is shown above, or in advance at the option of the State. Payment for any partial months occupancy shall be prorated, based on a thirty (30) day month. 1. Covenants of State: 1 of 3 a. Pay the utility fee at the time and places provided in this Agreement. b. Use the premises properly. C. Make alterations with the written consent of the Owner. d. Leave the premises in as good condition as when received, except for reasonable wear and tear and/or loss or damage caused by fire, explosions, earthquakes, acts of God, or other casualty. Graves Anomey i CITY OF KEN 210 FidalWgo Ave Suite 200 Kenai, Alaska 99611-7794 1 1 283-3441 III FAX 283-3014 e. Maintain the premises in good condition during the continuance of this Agreement. f. Provide and maintain telephone service. 2. Covenants of City: a. Save the State harmless against any loss, damage and liability resulting from any tortious or negligent act of the Owner, his agent or employees or from any failure of the Owner to comply with the terms of this Agreement. b. Furnish heat, electricity, water, toilet facilities, parking and janitorial services without additional costs to the State. C. Maintain in good and safe condition any common entrance, stairs and hallway. 3. The parties mutually agree: 2 of 3 a. All terms and conditions of the preceding covenants of both State and City are agreeable and accepted in their entirety, except as herein noted. b. Fixtures installed in the premises by the State remain the property of the State and may be removed by the State provided it repairs at the State's expense any injury to the premises. C. If the State shall at any time be in default in the payment of utility fee herein reserved, or in the performance of any of the covenants, terms, conditions or provisions of this Agreement, and the State shall fail to remedy such default within sixty (60) days of written notice thereof from the City, it shall be lawful for City to enter upon said premises and again have, repossess, the same as if the Agreement had not been made, and hereupon this Agreement and all the covenants, provisions and conditions herein contained will accrue to the benefit of and be binding upon the successors and assigns of the parties hereto. d. The State may terminate this Agreement by giving the owner not less than thirty (30) days notice in writing. e. Terms and conditions of this Agreement are subject to availability to the State of appropriated funds. If such funds are not available, the State may terminate this Agreement by giving the City not less than thirty (30) days prior notice in writing. Cary R. Graves City Attorney CITY OF KENAI 210 Fdalgo Avenue Suite 200 Kenai, Alaska 99611-7794 2e3-3" 1 FAX 283-3014 Page f. All conditions and covenants of this Agreement shall remain in full force and effect during any extension hereof. Any holding over after the expiration date of this Agreement or any extension or renewal thereof, shall be construed to be a tenancy from month -to -month, at the same monthly fee for utilities and on the terms and conditions herein specified, so far as applicable. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year written below. CITY OF KENAI BY: �u—� Thonas J. zanninen City Manager STATE OF ALASK�I By: STATE OF ALASKA ) ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this -;-� day of , 1996, THOMAS J. MANNINEN, City Manager of the City of 19enai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA )ss THIRD JUDICIAL DISTRICT ) rj� THIS IS TO CERTIFY that,on this !�? day of 1996 , SrG '�J��.c�4� , being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: / f C:\WPDOCS\LEASES\H&SS of 3 CI TY OF KENO ,6 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 byAhri ,III'1 1992 MEMORANDUM TO: Richard A. Ross, City Manag* FROM: * Sheryl Paulsen, Legal Secretary (283-3441) DATE: February 12, 1997 RE: Agreement for Services —Vintage Pointe Manor The City of Kenai is currently under contract with Bob and Imelda Lee for building management services at Vintage Pointe Manor. Bob Lee recently notified me that he has obtained a business license and formed a partnership with his wife under the name of "REL Management." The Lees are requesting that the City pay them as "REL Management" rather than as Robert E. and Imelda C. Lee. I discussed this request with the City Attorney who said that, in order for the Finance Department to write the checks to REL Management, the original Agreement for Services would need to be changed to reflect that the City's agreement is with REL Management. He said there is no problem with that, but the change needs to be approved by Council. Attached is a draft Agreement for Services with the changes as requested by the Lees (this draft has been approved by the City Attorney). Does Council approve of this change? /sp Attachment Cary R. Graves City Attomey CITY OF KENAI 210 Fidalgo Avenue Suite 200 Kenai, Alaska 99611-7794 283-3. FAX 283-3014 I)D�AFp AGREEMENT FOR SERVICES THIS AGREEMENT made this day of February, 1997, by and between the City of Kenai, hereinafter called "Owner," 210 Fidalgo Avenue, Suite 200, Kenai, Alaska 99611-7794, and REL Management (Robert E. Lee and Imelda C. Lee, partners) hereinafter called "Contractor," whose address is P. O. Box 2743, Kenai, Alaska 99611-7794. WITNESSETH: WHEREAS, Owner desires to contract for building management services for the VINTAGE POINTE MANOR CONGREGATE HOUSING FACILITY and has requested proposals to furnish said services; NOW, THEREFORE, the parties hereto agree as follows: 1. Beginning on July 1, 1996 and ending on June 30, 1997, unless terminated earlier pursuant to this Agreement, Contractor shall provide and perform for the Owner the services described in the "Specifications for Building Manager Services" for the VINTAGE POINTE MANOR (hereinafter called "Specifications"), a copy of which is attached hereto and by this reference incorporated herein, in the areas of the building set forth therein to be serviced. 2. Any personnel furnished by Contractor shall be employees of Contractor, and Contractor shall pay all salaries and expenses of, and all federal social AGREEMENT FOR SERVICES - Page I of 5 Coturactor City (, . Graves City Attomey CITY OF KENAI 210 Fidalgo Avenue Suite 200 Kenai, Alaska 99611-7794 2B3-3441 FAX 283-3014 security taxes, federal and state unemployment taxes, and any similar payroll taxes relating to such employees. Contractor shall provide Owner with evidence of both workman's compensation insurance and general liability insurance on the volunteers and/or sub -contractors. Contractor shall be considered for purposes hereunder as an independent contractor, and it will not at any time directly or indirectly act as an agent, servant, or employee of the Owner, or make any commitments or incur any liabilities on behalf of the Owner without its express written consent. 3. Contractor shall provide all proper safeguards and assume all risks incurred in performing its services hereunder. 4. Contractor shall provide the insurance coverage set forth in the Specifications and deliver to Owner certificates of insurance in accordance therewith on or before the beginning date shown in paragraph #1 herein. 5. Without limiting the responsibility of Contractor for the proper conduct of its personnel, the conduct of the building management is to be guided by rules and regulations as agreed upon from time to time between the Owner and Contractor in writing, and such additional special written instructions as may be issued by Owner to Contractor from time to time through its designated agent, the Administrator. 6. Contractor is responsible for the direct supervision of its personnel through its designated representative, and such representative shall, in turn, be available at all reasonable times to report and confer with the designated agents of the Owner with respect to services rendered. AGREEMENT FOR SERVICES - Page 2 of 5 Contractor City Cary R. Graves City Attomey CITY OF KENAI 210 Fidalgo Avenue Suite 200 Kenai, Alaska 99611-7794 7. Contractor agrees that the building management services to be provided hereunder shall be performed by qualified, careful, and efficient employees in strict conformity with the best practices and highest applicable standards. 8. In exchange for performance of services hereunder the Owner shall make payment, upon proper invoicing, to Contractor for services rendered hereunder at the rate of $1,225.00 per month. The Owner shall also provide the Contractor with an unfurnished apartment at no expense, except that the contractor shall be responsible for electricity and telephone for the apartment. 9. Contractor shall perform all services required hereunder, except when prevented by strike, lockout, act of God, accident, or other circumstances beyond its control. 10. This Agreement may be terminated with cause by giving fifteen (15) days written notice by certified mail addressed to the other party. The parties may by mutual consent terminate this Agreement upon thirty (30) days written notice. 11. The Building Manager agrees to keep office hours from 10:00 a.m. to 2:00 p.m., Monday through Friday. The Building Manager shall not accept any other employment that substantially interferes with the duties and responsibilities of this Agreement. 12. No person under the age of eighteen (18) years may reside in the Building Manager's apartment. 13. The Building Manager is required to abide by all rules and regulations governing the Tenants of the building, except for the senior citizen age eligibility AGREEMENT FOR SERVICES - Page 3 of 5 Contractor City 283-3441 FAX 283-3014 C Graves �_ Attomey CITY OF KENAI 210 Fidalgo Avenue Suite 200 Kenai, Alaska 99611-7794 283-3441 FAX 283-3014 requirements. 14. No pets of any kind will be allowed on the premises. 15. The Owner and Contractor, by mutual agreement within thirty (30) days prior to expiration of this Agreement, may extend this Agreement by a period no greater than one year. This Agreement, together with the attached Specifications, contains all of the covenants and agreements between said parties with respect to the subject matter of this Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first above written. OWNER: CITY OF KENAI DRAFT By: Richard A. Ross City Manager CONTRACTOR: AGREEMENT FOR SERVICES - Page 4 of 5 REL Management By: Robert E. r er By: 1;) Imelda C. Lee, Partner Contractor city Cary R. Graves City Anomey CITY OF KENAI 210 Fidalgo Avenue Suite 200 Kenai, Alaska 99611-7794 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of February, 1997, Richard A. Ross, City Manager of the City of Kenai, being personally known to me, appeared before me and acknowledged the voluntary and authorized execution of the foregoing AGREEMENT FOR SERVICES. DRAFT NOTARY PUBLIC for State of Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of February, 1997, REL Management partner Imelda C. Lee, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing AGREEMENT FOR SERVICES. NOTARY PUBLIC for State of Alaska My Commission Expires: STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that on this day of February, 1997, Robert E. Lee, REL Management partner, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing AGREEMENT FOR SERVICES. DRAFT AGREEMENT FOR SERVICES - Page 5 of 5 NOTARY PUBLIC for State of Alaska My Commission Expires: Contractor City 283-3441 FAX 283-3014 �.�CH lep 3f /i KATMAI • u Motel • Restaurant • Lounge N Y 10800 Kenai Spur Hwy. • Kenai, Alaska 99611 • 907-283-6101 February 14, 1997 To: City of Kenai/Council Re: Liquor License Continuance Katmai Hotel/Kenai Ladies and Gentlemen, RECEIVED FEB 14 1931 KENAI CITY CLERK �-6 Once again, we at the Katmai find ourselves in financial stress and ask for your help in allowing us to remain open during these final winter months. We hereby ask the City Council to grant a request for 'Confession of Judgment' with Katmai/Eaglechief Inc. and withdraw the protest against our liquor license. Like several other businesses in Kenai, we've had to down -size our staff in order to stay open. It seems the summer tourism dollars reserved for hotels have dwindled or shifted to owner/operated guide serviced B & B's. Without those dollars, we cannot develop the stash needed to survive the winter months. We need some kind of new draw to Kenai, maybe a deep -water port so we could keep the tourist dollars here in Kenai instead of going on to Homer and Seward. We would gladly offer our input if the City of Kenai would host a tourism workshop. Thank you for your understand' patience on this very important consideration. Jim & Erika Singree Owner/Mgrs Katmai Hotel Kenaites 23yrs. CITY OF KENAI C9 Z I C;C4,f 2itai 4 41,a41= 11 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 *Vlanrl tII�II January 31, 1997 Ms. Donna Johnson. Records & Licensing Alcoholic Beverage Control Board State of Alaska Department of Revenue 550 West Seventh Avenue, Suite 350 Anchorage, AK 99501 Re: 1996197 LIQUOR LICENSE CONTINUANCE PROTEST The Katmai Hotel, Restaurant & Lounge/Eaglechief, Inc. The City of Kenai hereby notifies the Alcoholic Beverage Control Board of its protest to the 1997 liquor license continuance for The Katmai Hotel, Restaurant & Lounge/Eaglechief, Inc.. This protest is based on the following obligations arising wholly out of the operation of the licensed business: The Katmai Hotel, Restaurant & LounQe/EaElechier, Inc.: Lease Payments (November & December, 1996) Balance Due: $4,208.07 This protest is made pursuant to KMC 2.40.010 and 2.40.020 which require the Kenai City Council to protest license applications if the applicant is not current in obligations to the City of Kenai and pursuant to AS 4.11.330(b) and 4.11.480(a), which allow protests for unpaid taxes and/or obligations arising out of the operation of the licensed premises. The applicant is being advised of this protest by copy of this letter sent certified, return receipt requested. The City of Kenai will withdraw its protest upon payment of the above -noted obligations. Please note that remittance of the above -listed past due taxes and/or obligations do not remove any other grounds for protest the City might assert in addition to the above -listed obligations. CITY OF KENAI qzf � CargVL. Freas City Clerk clf cc: Gina Derleth, Kenai Peninsula Borough The Katmai Hotel, Restaurant & Lounge/Eaglechief, Inc. CITY OF KENAI r 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 *21AMA wF�aan 'IIIfI 1992 MEMORANDUM TO: Richard A. Ross, City Manager's FROM: Kim Howard, Administrative Assistant DATE: February 12, 1997 RE: Lot 3, Block 1, General Aviation Apron SubLease - James A. Munson to Public Radio Station KBBI/KDLL The lease between the City and James A. Munson, states "Lessee with City's written consent, which will not be unreasonably denied, may assign for other than collateral purposes, in whole or in part, its rights as lessee hereunder." Mr. Munson wishes to sublease an unused office building on City leased land to Public Radio Station KBBI/KDLL. The property is shown on the attached map. City Engineer La Shot said this type of business meets the zoning code. The lessee is current in lease payments and taxes on the property. Pickle Hill Public Broadcasting has submitted a Notice of Proposed Construction or Alteration for an antenna structure to the Federal Aviation Administration (FAA). The applicant is aware if the FAA has an objection to the proposed radio studio facility, the City will not approve a sublease. The City Attorney has reviewed the information submitted and has no objections. If Council approves a sublease, subject to FAA approval, a Consent to Sublease can be prepared for your signature. Attachment /kh cc: James A. Munson d/b/a SouthCentral Air David A. Hammock, Kenai Peninsula Public Radio MEMORANDUM TO: Rick Ross, City Managerw___ FROM: Keith Kornelis, Public Works Director DATE: February 13, 1997 SUBJECT: Low Interest Loans ADEC - Alaska Drinking Water Fund ADEC - Alaska Clean Water Fund I have received the attached loan questionnaire for two ADEC administered programs. The Alaska Drinking Water Fund is for low interest loans to help finance drinking water projects. The Alaska Clean Water Fund is for low interest loans to help finance sewerage, solid waste, non -point source pollution and estuary enhancement projects. Projects that we may want to consider: Alaska Drinking Water Fund Total Cost 1. Well House No. 1 & 2 Modernization and upgrade $600,000 2. Water Main Line Loops 680,000 Alaska Clean Water Fund 1. Kenai Wastewater Treatment Plant Expansion $5,000,000 2. Phase I - Planning & Design of Kenai Wastewater Treatment Plant Expansion 302,000 Applying for these low interest loans may help us in receiving points for the ADEC 50% Matching Grants Program for each project. We can apply for a loan for up to 100% of the cost of the project. We can apply for a 50% loan in anticipation of receiving the 50% ADEC matching grant. The present low interest is at 4.1 % but it has been as low as 3.74%. The loan rate is 3/4 of the municipal bond index rate as published in the Wall Street Journal. Getting on ADEC's "Intended Use Plan" for a low interest loan does not obligate the city at this point. It does show the legislature that we do have a serious need (s) . Does the Mayor and City Council want to submit any applications for these low interest loan projects? KK/kw cc: Jack La Shot, City Engineer Larry Semmens, Finance Director TONY KNOWLES, GOVERNOR Telephone: DEPT. OF ENVIRONMENTAL CONSERVATION (907) 465-5136 FACILITY CONSTRUCTION AND OPERATION 410 WILLOUGHBY AVENUE. JUNEAU. ALASKA 99801 Fax: (907) 465-5177 FEB 1997 January 31, 1997 Dear Municipality: If low-cost loan financing for vour drinking water, sewerage, solid waste or other non -point source pollution projects is an attractive option for your municipality, this package is important to vou. Enclosed are forms to fill out if you are interested in low -interest loans for sanitation infrastructure projects. These forms must be filled out and mailed to us by February 28, 1997. It is very important to note that there are two programs, one is for drinking water projects only and the other is for sewerage, solid waste and other non -point source pollution projects. The forms for drinking water projects are labeled, "Alaska Drinking Water Fund" and the forms for the other projects are labeled the "Alaska Clean Water Fund." We are asking that you submit these forms now because we are trying to acquire a federal grant in time to offer this assistance to you next summer. In addition to the questionnaire forms, you will also find proposed scoring criteria for prioritizing these projects. The Alaska Drinking Water Fund is a new federal program being offered for the first time. This year Alaska has been offered S27 million by the Environmental Protection Agency for drinking water assistance but it must be matched by S5.3 million in State dollars before we can use this money. This proposed State match is being considered by the Governor and the Legislature at this time. If this match is provided. then we will proceed this year with offering low -interest loans to help finance your drinking water projects. To acquire one of these loans, you must fill out one of the enclosed questionnaires for each project you wish assistance for. If you do not submit a form, under federal rules vou cannot receive assistance. So please. if there is any possibility that your community may need low -interest loan financing in the next two years. submit a questionnaire. You do not incur any obligation by responding. We intend to operate the Alaska Drinking Water Fund in the same way that we operate the Alaska Clean Water Fund. There are some federal rules that require minor operational differences but overall the programs will be almost identical. We expect the loan terms, interest rates and financial requirements to be exactly the same. Drinking water projects have different operational requirements than sewerage and other project types, of course. This will require some procedural differences but this should be the only noticeable variance between the two programs. In the past few years one aspect of the sewerage and solid waste loan program has become quite popular and that is the portion allotted for design loans. We intend to offer a similar provision for the drinking water program. This will give those communities that have done very little facility planning or design a chance to acquire low-cost financing for this work in anticipation of receiving construction financing at a later date. Once again. if you think you may need design assistance, please submit a questionnaire. Page 2 January 31. 1997 We are conducting the annual Alaska Clean Water Fund process a couple of months early this vear. We believe that by sending out forms for both programs at the same time and allowing you to compare them side -by -side, we will reduce the chances of someone mistaking one for the other. As a reminder. the Alaska Clean Water Fund provides assistance for sewerage. solid waste, non - point source pollution and estuary enhancement projects. Please make copies and submit a separate questionnaire for each project you desire assistance for. The questionnaire and scoring criteria are the same as provided last year. Some formatting changes to the forms have been made. We are in the eighth year of operating the Alaska Clean Water Fund. Over the years we have diligently worked to modify the program to meet your needs. If you have suggestions for program changes, please let us know. If you have questions about anything in this package or just need to have more information, please call either Mike Lewis in our Anchorage office at (907)269-7616 or me. Once again, we need you to submit your forms to the address listed on the first page by February 28, 1997. Sincerely, j Mike Burns, Chief Municipal Grants and Loans Enclosure One: Alaska Drinking Water Fund Questionnaire Enclosure Two: Alaska Drinking Water Fund Scoring Criteria Enclosure Three: Alaska Clean Water Fund Questionnaire Enclosure Four: Alaska Clean Water Fund Scoring Criteria cc: Lee Daneker/EPA-Region X, Seattle Jerry Opatz/EPA-Region X. Seattle Bill GisseUEPA-AOO. Juneau Mike Lewis/Municipal Grants and Loans. Anchorage ,,:NT BY:TESORO ALASKA ; 2-12-97 ; 4:45PM ;WATERBORNE MARKETING-4 DEFT. OF ENVIRONMENTAL CONSERVATION OFFICE OF THE COMMISSIONER January 31, 1997 The Honorable Drue Pearce The Honorable Bert Sharp Co -Chairs, Senate Finance Juneau, AK 99801-1182 Dear Senators Pearce and Sharp: 907 Ij- 1 TOlNY /(F 410 W111c ,� -� •.-_•' vw JW Juaaau, AK 99801.1795 PHONE: (907) 465-5065 FAX: (907) 465-5070 htJ/wwW-5=u.ak-us/decJb0me. Please extend my thanks to the fuzance committee for the o Environmental Conservation last Friday. ppo�t' to discuss the Deterns were partment of Senators where additional detail or follow up wag needed. Thee following on, several i ho noted by the offered to clarify those points. B information' is The committee expressed interest in local communities adopting health authorities. ,4nchorage and Fairbanks have both adopted health powers. Ancho Fairbanks contracts with the de rage does their own food service 'inspections and partment to conduct their food service inspections. The domestic wastewater program is also a candidate for local ass request, funding was eliminated by the Legislature for subdivision p view. The state get stopped providing those services. The level of assumption of these functions and other domestic wastewater functions by community varies: Mat-su Assumed responsibility for subdivision plan reviews. Ketchikan Expressed initial interest in subdivision plan reviews. Kenai Working towards assumption of subdivision plan reviews. Other local governments provided these services at some level prior to the FY 97 budget reductions: Anchorage Continues to perform subdivision plan reviews, and completes system plan reviews except those requiring waivers or systems which are designed by the munici Valdez Continues to Pity perform subdivision plan reviews, and is working to expand their delegation to all aspects of domestic wastewater. Wasilla Has limited plan review delegation for connections to existing non conventional system. — SENT BY:TESORO ALASKA ; 2-12-97 ; 4:46PM WATERBORNE MARKETIN3- 907 263 3014;# 2 Senate Finance January 31, 1997 The department has no plans or ability to "force" municipa ensuring lities to take over these duties. We are that the programs function well and working to make them cost -neutral . This is essential to encourage local government takeover. Low 1! zr l7i0eReguirem-= I support a pernmanent exemption from the low sulfur diesel requirement re q u�etaent for motor vehicles and I will to be careful to ensure that newly Promulgated regulations do not impact continuation of this necessary exemption. It is important to understand that non -road engines are not covered, nor can they be covered, in the motor vehicle exemption, Non -road eng ines are currently subject to permitting under exudng' regulations. 'Those permits may limit sulphur fuel content when circumstances to avoid exceeding ambient air quality standards. our new regulations are intended to sim�plineedth Process by eliminating the need for source -by -source permitting, but they do not etirninm the need to comply with air quality standards. They retain the substantive requirements of the existing regulations, but eliminate the paperwork. The rule does not apply to permanent, stationary sources like power plants. The non -road engine rule applies only to engines that: - are mobile or capable of being moved; - move at least ouce a year; - are at a Iocation that rises more' than 1500 gallons per day; and are not located on marine vessels. The primary sources affected by the rule are drilling rigs. Power plants and other permanent stationary sources are not subject to the rule. Inter Agency Perso ne A r ents with tbe Feder l Qg $ant Currently, the department has five inter agency personnel agreements. Mr. Al Ewing serves as the Deputy Commissioner and reports directly to the Commissioner. In this capacity, W. Ewing ensures that the department's mission, goals and objectives are met in a fiscally responsible manner, 'Ile state pays the cost of a step A position from federal indirect and general fund and the Environmental Protection Agency pays the balance of the costs including benefits. Ms. Cindi Godley serves as an Environmental Engineer Associate and project leader within the Water Quality component. Ms. Gods reportsto Brad Friquirstoe, a British Petroleum's Badami project State fundingfor this �' is working on permits required for designated program Position is received as general fund p gram receipts from British Petroleum. The state reimburses the Environmental Protection Agency for 100% of the position costs. SENT BY:TESORO ALASKA 2-12-97 ; 4:48PM WATERBORNE MARKETING-* 907 293 3014;9 3 Senate Finance 4 January 31, 1997 Participate in the aboveground storage tank policy cabinet. Participate in the development of elements of the aboveground storage tank master Plan including the stakeholder workgroups, priority ranking and selection process, and submission of capital budget requests for repairs and upgrades of priority ranked aboveground storage tank facilities. Departments of Education and Transportation Participate in the aboveground storage tank policy cabinet. Participate in the development of elements of the aboveground storage tank master Plan including the stakeholder workgroupa, Priority ranking and selection process, and submission of capital budget requests for repairs and upgrades of priority ranked aboveground storage tank facilities. I look forward to the opportunity to work with you and members of the committee throughout this session. Should any of the committee members have additional question,, please feel free to contact me directly or Barbara Frank of my staff at 465-5256. Sincerely, � C� �,C' 4.--- Michele Brown Commissioner Attachment cc: Honorable Dave Donley Honorable Sean Parnell Honorable John Torgerson Honorable Randy Phillips Honorable Al Adams Visitors & Convention Bureau, Inc. RECEIVED FEE 1 2 1997 KENAI C i Y CLERK Teo: KVCB Members Fm: Kim Booth, Executive Director Date: February 11, 1997 Re: Taxation on Tourism Proposed by Senate Bills 5 and 23 The Kenai Visitor and Convention Bureau has received this information from the Anchorage Convention and Visitor Bureau. We, in turn, are forwarding this information on to our membership and asking that you sign the attached Public Opinion Message to the legislators and fax it back to the Anchorage Convention & Visitors Bureau at (907) 278-5559 for distribution. 1 1471 Kenai Spur Highway • Kenai, Alaska 99611 - (907) 283-1991 • Fax: (907) 283-2230 • E-mail: kvcb@alaska.net MEMBER ALERT!!! TO: ACVB Members FROM: Bill Elander, President & CEO SUBJ: Taxation on Tourism Proposed by Senate Bills 5 and 23 DATE: January 23, 1997 Senator Bert Sharp from Fairbanks has introduced two bills in the current legislature which, if passed, will have a serious negative effect on the tourism industry in Alaska. The Anchorage Convention & Visitors Bureau and its Board of Directors representing nine categories of business and government oppose these bills and enlist your support in their early defeat during this legislative session. Senate Bill 23 would impose a 2 o hotel room tax that would be additive to Anchorage's current 8% tax, which would place us in a less competitive position marketing both the convention and travel trade. This tax would further extend to all bed and breakfasts, lodges, motels, and even apartments renting on a short-term basis. The revenue raised from this tax would go into the State's general fund. Senate Bill 5 would impose a $25 per-person/per-port head tax on all commercial vessels /boats carrying passengers in Alaska waters, with the only exemption being the State ferry system. This bill is so broadly worded that it incorporates day cruise vessels and could even extend to water taxis and other vessels small in nature. Again, the revenue raised from this tax would go into the State's general fund. The language in these bills portrays that the revenue raised could be appropriated for tourism marketing or to improve ports, docks, and emergency response funding for vessels involved in accidents. This so-called dedication could not and would not materialize, based upon our State Constitution that denies dedicating tax revenues. In addition, Senator Sharp has totally ignored the existing contribution to government that is generated through the tourism industry. A recent study conducted by the McDowell Group conservatively computed more than $120 million in annual fees and taxes flow to local and state governments through the tourism industry. This is an increase of more than $40 million from a -study conducted three years prior. Throughout this three-year period, state government has continuously reduced the Alaska Tourism Marketing Council's cooperative marketing budget by more than 50 percent while raising the industry's matching dollars by more than 60 percent. ANCHORAGE Convention & Visitors Bureau BoARD OF DIREC0RS Officers Chair Max Lowe, CHI, Regal Alaskan Hotel Vice Chair John Kretlkamp .4askaSightseemgiCrtuse Wcst seaerarv,Tressurer Bonnie Bernholz Bernholz & Graham Immediate Put Chair Tom Brennan Brennan Communications, lnc. President & CEO Bill Elander Anchorage Convention & Visitors Bureau Directors Par Abnev .Anchorage Municipal Asscmbiy Chris Anderson Glacier BrmHouse Duke Bcnke Chelatna Lake Lodge, Inc. Bruce Busraman[e Alaska Airlines Larry Cnwiord Municipality of Anchorage Bill Dugdaie Westmark Hotels Laurie Fagnans Markering Solutions Perry Green David Green Master Furrier Linda McLaughlin. CTC DeltaAar Lines, Inc. Bob Neumann Grizzly s. Inc Brad Phillips Phillips Cruises & Tours Morton V. Plumb, Jr. Anchorage international Airport Virginia Samson .Alaska Conference & Event Services Mary Sawn Railway Brewing Company Bob Southall. CHA Anchorage Hilton Hotel John C. i Chnsl Swalling John C. Swalling CPA. APC Fry Von Gcmmingen Anchorage Municipal Assembly Chris on Imhof Alyeska Resort 524 W. Fourth revenue anchorage, A.aaka 9 9 5 0 1- 2 2 1 907-276-4113 F.x907-278-55�,9 t.m.i1: cvb@..lay ,,.net Page 2 ACVB Members January 23, 1997 The members of the Anchorage Convention & Visitors Bureau need to stand together to defeat these two tax bills that, in my opinion, represent only the tip of the iceberg. Your business today may not incorporate lodging or water transportation, but we are asking you to oppose this taxation that guarantees reduced travel to Alaska. We must as an industry join together and not allow the elected representatives to divide us by selecting components of our industry for taxation. If we don't band together to oppose these bills, you can be assured that your business is also on a targeted list for future taxation schemes as well. When a head tax is proposed on airports, motorcoach operations, rental cars, motor home rentals, charter fishing passengers and, finally, a seasonal sales tax, we will want the lodging and cruise industry to also stand tall in opposition. Senator Sharp and most of the state legislators know that representatives of the tourism industry are willing to work towards a broadbased taxation policy that will be acceptable when a form of guarantee is developed that will assure the revenues remain committed to the marketing and development of tourism. I will try to keep you informed of the status of this legislation throughout the session, but will be unable to serve effectively without your support and backing. I am asking all of you to sign the attached Public Opinion Message to the legislators and fax it back to the Anchorage Convention & Visitors Bureau at 278-5559 for distribution. Call your elected officials, particularly from the Senate at this point, to dismiss these bills immediately from further consideration. Public Opinion Messages are distributed by the Legislative Affairs Agency, and cannot be longer than 50 words. Talk to your staff, employees, friends and neighbors, and request they support your business by opposing these bills. I intend to send copies of this letter to every convention & visitors bureau in the state, as well as the Alaska Visitors Association, who also has gone on record to oppose this legislation. Again, let's stand together, get mad, and say "No!" Page 2 ACVB Members January 23, 1997 The members of the Anchorage Convention & Visitors Bureau need to stand together to defeat these two tax bills that, in my opinion, represent only the tip of the iceberg. Your business today may not incorporate lodging or water transportation, but we are asking you to oppose this taxation that guarantees reduced travel to Alaska. We must as an industry join together and not allow the elected representatives to divide us by selecting components of our industry for taxation. If we don't band together to oppose these bills, you can be assured that your business is also on a targeted list for future taxation schemes as well. When a head tax is proposed on airports, motorcoach operations, rental cars, motor home rentals, charter fishing passengers and, finally, a seasonal sales tax, we will want the lodging and cruise industry to also stand tall in opposition. Senator Sharp and most of the state legislators know that representatives of the tourism industry are willing to work towards a broadbased taxation policy that will be acceptable when a form of guarantee is developed that will assure the revenues remain committed to the marketing and development of tourism. I will try to keep you informed of the status of this legislation throughout the session, but ,,,rill be unable to serve effectively without your support and backing. I am asking all of you to sign the attached Public Opinion Message to the legislators and fax it back to the Anchorage Convention & Visitors Bureau at 278-5559 for distribution. Call your elected officials, particularly from the Senate at this point, to dismiss these bills immediately from further consideration. Public Opinion Messages are distributed by the Legislative Affairs Agency, and cannot be longer than 50 words. Talk to your staff, employees, friends and neighbors, and request they support your business by opposing these bills. I intend to send copies of this letter to every convention & visitors bureau in the state, as well as the Alaska Visitors Association, who also has gone on record to oppose this legislation. Again, let's stand together, get mad, and say "No!" PLEASE SEND THE FOLLOWING AS A PliBLIC OPINION MESSAGE TO ALL ALASKA LEGISLATORS I oppose Senate Bills Number 23 and 5 by Senator Bert Sharp. These bill will have a negative impact on my tourism business and the tourism industry in general. These are two tax bills that will do nothing to promote tourism in Alaska. Increased taxes Neill not help our industry. Name Address Phone Fax Please fax back to ACVB at 907-278-5559, or mail to 524 W Fourth Avenue, Anchorage, AK 99501. Thank you. INFORMATION LIST Kenai City council Meeting of February 19, 1997 1. 2/5/97 Kenai City Council Meeting "To Do" list. 2. 1/27/97 Habitat and Restoration Division letter regarding Dunes Project/Design of Vehicle Turnaround on Kenai Avenue. 3. Youth Court Invitation. 4. 1997 Games of Chance and Contests of Skill Permit Application - Mt. View PTA. 5. 1/16/97 Kenai River Special Management Area Advisory Board Meeting Minutes. 6. 2/12/97 City of Kenai Project Status Report. KENAI CITY COUNCIL MEETING FEBRUARY 5, 1997 "TO DO" LIST ADMIN - Follow progress of HB 51. ADMIN - Include Kenai Chamber Board of Directors in those persons invited to the April 26 work session with business representatives from the community. CLF - Advertise and prepare for goals and objectives work session scheduled for May 14. Make travel arrangements for Councilman Smalley to attend "Experience Challenger" program in Seattle. CRG - Investigate possibility to sell golf course lots (BOR land), placing sale income in trust account in order to purchase recreation lots in future in exchange for the BOR lands. TONY KNO I DEPARTMETNT OF FISH AND GAME 333 RASPBERRY ROAD ANCHORAGE, ALASKA 99518-1599 PHONE: (907) 344-0541 HABITAT AND RESTORATION DIVISION January 27, 1997 — - - - A. ✓h! J - JAN Mr. Keith Kornelis Public Works Director P, City of Kenai 210 Fidalgo Ave., Suite 2C0 Kenai, Alaska 9961 1-7794 Dear Mr. Kornelis: At your request I conducted an inspection of the Dunes Project on January 23, 1997. The purpose of the inspection was to evaluate the design of the vehicle turnaround at the head of Kenai Avenue. You indicated in your letter of January 15, 1997 that the Mayor and City Council felt the present design was unacceptable and the turnaround needed to be expanded. As you are aware, the turnaround is constrained by contiguous wetlands and adjacent private lands. Expansion would require filling a portion of the wetlands and/or obtaining approval from a private landowner for the use of their property. During the inspection I observed a car and truck using the turnaround. The vehicles were able to turn, back up and exit without any noticeable problem. Consequently, I believe the present design does accommodate small vehicles -- although probably not more than one or two at a tima. These observations and my inspection of the site have led me to conclude that an expansion into adjacent wetlands would not be justified. It is the Alaska Department of Fish and Game's policy to avoid wetland fills when other alternatives exist. In this case, I believe there are several: 1. Contact the private landowner(s) adjacent to the turnaround to determine if they will allow vehicular access across their property or are interested in selling all or a portion of their property rights to the City. 11-K107LH Mr. Keith Kornelis -2- January 27, 1997 2. Place a sign near the head of the turnaround indicating that only one vehicle may load or unload at a time. Another sign prohibiting motorhomes could be placed at the entrance to Kenai Avenue. 3. Consider a concessionaire that would transport people from the parking lot to the turnaround site. The City of Kenai is to be commended for its progress on this project. If I can provide further direction, please let me know. Sincerely, Mark N. K wada Habitat Biologist Habitat and Restoration Division Department of Fish and Game cc: Lance Trasky Don McKay Ken Tarbox Bruce King Doug Vincent Lang Gay Muhlberg Gary Liepitz Art Weiner ` 5 Kenai Peninsula Youth Court, Inc. A non-profit Organization You are cordially invited to attend the first annual swearing -in ceremony for the Kenai Peninsula Youth Court Saturday, February 22, 1997 Kenai Central High School The Little Theatre 10:00 AM Homer Court House Homer, Alaska 3:00 PM Permit Alaska Department of Revenue Charitable Gaming Division P.U. Box 110440 Juneau, AK 99811-0440 Games of Chance and Contests of Skill PERMIT APPLICATION AS . 0 Please read the instructions before cowleting Aii wliiatfiw- n FOR DEPARTMENT USE ONLY Permit Number Cate of Issue KENAI RIVER SPECIAL MANAGEMENT AREA ADVISORY BOARD Thursday, January 16, 1996 Central Peninsula Sports Center K-Beach Rd., Soldotna I. 3:30 PM TO 5:30PM: Working Group Session - Review of Draft Kenai River Management Plan by Bruce Phelps. Discussion of main topics, how to review, etc. II. CALL TO ORDER A. Roll Call Members Present: Ken Lancaster, Jack LaShot, Robin Nyce, Ben Ellis, Deidre St. Louis for Duane Harp, Jim A. Richardson, Robin West, Len Verrelli, Pat Bower, Gary Leipitz for Lance Trasky, Jim H. Richardson, Tom Knock, Peggy Mullen, Ted Wellman, Chris Degernes, Jeffrey King B. Approval of December 12 minutes. The minutes were approved as written. C. Agenda Changes and Approval. No agenda changes. III. NEW BUSINESS A. Marilyn Heiman, Special Assistant to the Governor and John Shively, DNR Commissioner: Presentation on the Proposed Outreach Program - Kenai River Portion of Lease Sale 85A. Jim A. provided an introduction of the process for the evening. The presentation will address how the Governor will meet his commitment to using a public outreach program to resolve concerns regarding Lease Sale SSA. Marilyn Heiman was then introduced. Marilyn began by stating that the Governor is very concerned about the issues raised by the public, the KRSMA Board, sportfishing representatives, and property owners along the Kenai River. Knowles had concerns about the process which led to the lease sale and felt that there needed to be a better public input process. The Governor decided to go ahead with the lease sale, but committed to a moratorium on issuance of permits until the public process is completed. Marilyn said tonight what they want to do is get ideas of what the public involvement process should look like. The Governor has asked that a facilitator be hired. There will be no limitation set on what will or will not be accomplished by the process. Marilyn said the Governor places a high priority -on the Kenai River, therefore when concerns were raised he took them very seriously. During the Governor's first two years in administration there has been a great deal of energy expended on protecting habitat along the river with boardwalks, as well as restoring damaged habitat along the river. -2- Marilyn also announced to the board that Brannon Ames has been appointed to serve on this board, filling the vacancy created by the resignation of Iry Carlisle. He is a long time advocate for the Kenai River and lives in Sterling. DNR Commissioner John Shively then addressed the board and the public. Commissioner Shively said he was here for 2 reasons. First of all, to apologize to the board, since clearly it was an oversight that this board was not directly informed about Lease Sale 85A. He said that should have been part of the process of the lease sale. The Kenai River continues to be a high priority for the Governor and also for the Commissioner. The second reason he stated he was here for is to ask for the board's help on what the outline for the stakeholder process should be. He said he would look to the board for their advice on this process. He then briefly reviewed the process they did follow, which unfortunately did not work. The process took 18 months. There were three opportunities for public comments on the lease sale. Additionally there was a public comment period on what is called the preliminary best interest finding. There were 5 public hearings. There was one Commissioner's round table held in Homer. There was a total of 15 ads in 6 different papers including 3 on the Kenai Peninsula. Of the 15 ads, 7 of them were display ads. That did result in some response. 600 people commented either in writing or in public hearings. However, it was clear at the end of process that there were alot of people that should have known what was being done that did not know. The Commissioner said that drilling in the Kenai River basin is not new. There has been drilling for 40 years with a variety of mitigation measures. He noted that this administration is committed to maintaining the river's health. The Commissioner said he is personally concerned that the 1/4 mile setback in Lease Sale 85A is not enough and a possible mitigation change would be to expand to a 1/2 mile setback. There will be a facilitator hired to help with the process. There is an RFP going out for a facilitator in the next day. The Commissioner asked for any ideas about how the process can work. He offered a couple of ideas: 1) Start with a broad community workshop on a Saturday where the Commissioner would outline what the situation is, what mitigation measures exist and where questions can be raised. Out of that process a series of recommendations can occur, or from that process form a smaller group that would make the recommendations. The KRSMA board would be involved in this process and the Commissioner invited any and all members to be part of the process. 2) Another approach would be to pick a stakeholders group. Again if that was done, the KRSMA board would be the core of that group. There are certainly a variety of other choices and this is why the Commissioner was here asking for the board's input as well as the public. KENAI RIVER SPECIAL MANAGEMENT -3- AREA ADVISORY BOARD - 1/16/97 minutes Commissioner Shively and Marilyn Heiman then joined the board to field public comments. Jim A. said he is looking for positive results from this process. Because of being involved in the update of the KRCMP, he has noticed that alot of people are concerned about industrial development on the river. Besides oil and gas industry along the river, we should also be addressing other industrial uses too. Betty Farrally: Doesn't understand how anything can be changed since the sale has been done. She is very concerned about the 1/4 mile setback and said we need at least a 1/2 mile setback. She asked how this could be done since the sales are already in place. She said her father's business is dependent on tourism and sees the Kenai River as a very important resource - we can't have oil near our river and expect to maintain the river's renewable resources. She was also surprised that State Parks would allow for oil and gas exploration in the KRSMA as stated in the Comprehensive Management Plan. Commissioner Shively responded that when the oil companies get a lease they do not get an automatic right to drill. They have to go through additional permitting processes to do exploration drilling or to do development drilling. The permitting processes are public and part of them do come under ACMP. The Boro can put additional mitigation measures in as can the State. The other risk the oil industry takes is that State and Environmental laws can change, which would also affect. Brenda Stoops: Representing the Kenai Watershed Forum, said that her group would like to see clearly defined what will happen and what the intent of this outreach program is. Will it be just informative or will we have an equal opportunity for input? Commissioner Shively answered that out of the stakeholder process the Governor expects to get recommendations that will go to him. The Governor has left it open as to what those recommendations could be. As the Chief Executive of the State, he will ultimately decide about those recommendations. There are no limitations as to what could be brought up. Edward Sutherby, Recent Kenai River Property Owner: Please take into consideration the proximity of the subdivisions, rather than considering just a half mile setback. He said his property is right at a half mile from the river. His main concern is that there will be gas wells in everybody's yard. -He said he comes from Michigan where this has occurred and that's why he moved from there. Marilyn Heiman said there will be follow up meetings. She then asked those persons who are interested in being involved to place KENAI RIVER SPECIAL MANAGEMENT -4- AREA ADVISORY BOARD - 1/16/97 minutes their name on the list that will circulate this evening. Lori Landstrom asked if permit stips apply to all surface ownerships, i.e. state lands, mental health lands, or private. Commissioner Shively explained there are three groups of lands. There are State lands where mitigation measures on the surface clearly apply, Mental Health lands who agreed to take our mitigation measures as part of the lease sale, and lastly, there is some uncertainty regarding what our authority is on private lands. However, even if we do not have authority under our mitigation measures, the Boro has the ability under their ACMP process to set mitigation measures on private lands. Dale Bondurant, Kenai River Property Owner: He said he goes back a long ways on what has been done here on the Kenai. He said he remembers when they were ready to develop the Swanson River Oil fields. The oil companies at that time said that if they had to follow all the environmental protection requirements on that area that they would not do it. So now since they have done it, they use this as an example of a good job. Dale said he thinks the oil companies have a very poor record as far as environmental protection. One of their biggest excuses is that the cost of meeting the mitigation for environmental protection cannot be afforded. When they get done with this state they will not have any vested interest in the future of this state and they will move right out and we will be left with things that have been done that will harm our renewable resources. Dale says we need to stand up and argue and fight to make sure we protect our renewable resources. Dale complained about a recent appointment by the Governor of an oil lobbyist to help with oil development issues. Commissioner Shively responded that what the Governor tries to do is to balance people in his administration. Marilyn Heiman is proudly one of the leading environmental advocates in the state. She came straight out of the environmental community and on the other side of the issue, the Governor gets criticized for her position in the Governor's office. Therefore the Governor's office is not one sided. Brenda Stoops asked about the 90 day moratorium established by the Governor. Is the clock running? The Commissioner answered that the 90 day is not a rock solid timeframe. It takes about 6-7 months for anyone who applies to get a drilling permit and currently there have been no applications for drilling permits on any of these leases. Betty Farrally: One more comment about Cook Inlet and the disposal of drilling waste that has been going on for a long time. They could be using deep well injection but they have decided to save KENAI RIVER SPECIAL MANAGEMENT AREA ADVISORY BOARD - 1/16/97 minutes -5- money and dump the waste into the Inlet. We would like to depend on our Boro to protect us under the RCMP permits but it is best not to depend on them. She urges that we all need to start thinking differently to protect what we have. Karl Kircher, Commercial Fisherman: Will this process make changes in permitting? Commissioner Shively replied that the recommendations would be inserted into the permitting process so that the oil companies understand up front when they apply for those permits, these are things that have been agreed to. Marilyn Heiman then asked for comments from the invited groups and she went through the list. Alaska Sportfishing Association, no one present. Kenai River King Salmon Fund, no one present. Kenai Peninsula Fisherman's Association, no one present. Kenai Watershed Forum, Brenda Stoops present. UCIDA, no one present. Kenai River Guides Association, no one present. Kenai River Sportfishing, Inc., Ben Ellis (also a board member). Kenai Property Owner's Association, Walt Arthur. Trout Unlimited, Dennis Randa sent comments via fax. Friends of Cooper Landing, Jim H. Richardson. Alaska Center for the Environment or Trustees for Alaska, no one present. Jim H. Richardson, Friends of Cooper Landing: The group expressed interest and would like to get copies of what this meeting was all about. Dale Bondurant said he was dismayed about the level of pressure the Board received from the Commissioner's office when they took a stand in opposition to LS85A. He said this board should have been the most important group that would be concerned about this. Jim A. responded to Dale's remarks since he was in contact with the administration. The information that he received is that clearly this administration is sincere and they want to hear what this board has to say. What happened, happened. The board's job is to deal with this particular problem on these drilling sites. Jim said he is looking on the positive side and appreciates Dale's point. Marilyn added that the Commissioner already apologized to this board for not including them in the lease sale. It was an oversight that the most important group was not informed of the sale. This sale was a very difficult one for the Governor. The pressures that were brought to bear were very great. Alot of information was brought out near the end of the lease sale but it was a little late in the process to do something. The Governor thought of every option such as delay, cancelling, deleting tracts, and then he talked to as many people as he could, as did Marilyn herself, and the Commissioner. There are stipulations that can be KENAI RIVER SPECIAL MANAGEMENT AREA ADVISORY BOARD - 1/16/97 minutes M-V made that can change how drilling is done, where it is done and what kind of protection will be-rovided. Those will be listened to by the Governor. Ben Ellis (as a spokesperson for KRSI) said to follow up on that, it was exactly one of their concerns. There is alot of hope from some that this will be a very productive process and alot of skepticism from others. One of the key points was the time limit - if the clock is not running toward it's 90 days, that will help. Otherwise, people were concerned if there was a date that was set in stone it would be counterproductive to the facilitation process. He is feeling very positive that is the case. However Ben said he is a little perplexed because of the number of people that signed on in opposing LS 85A that are not here. We all have a responsibility to protect this river, and it is not only pointing fingers at the administration. Ben would recommend the community forum process rather than limiting it to a group of stakeholders. Walt Arthur, Kenai River Property Owner's Association: Said one of the things he heard was that alot of people felt hoodwinked by the ads. He would suggest it be better to list it in clear text and not just legal text as township and range do not mean too much to most people. Mayor Navarre: Asked how much did budget reductions by the Legislature affect the amount of resources to do public process beyond what was bare legal. Could they have done more with adequate budget? A map that would show tracts that overlay the Kenai River, etc. in the ad would be most useful. Commissioner Shively said there were some reductions in 0&G. His recollection was that some of the display ads had maps. He said one of the things about the public process that concerned him is that there is a legal process . He said DNR did well with the legal process. However what he called the moral process, which is how you increase involvement, was an area they failed in. We need to try to find a better way to do community based meetings. DNR is looking to change how we do public process. Dan Chay asked how would you balance the pros and cons of having a process in which the agencies were involved in some sort of consensus agreement is. a process that is essentially advisory back to the Department, where the Department makes the decision? Commissioner Shively said other agencies do comment all through the process, F&G, DEC, and we negotiate and discuss with them. If they are not happy at the staff level there is the ability to elevate that first to the Director level and then to the Commissioner level and ultimately, if we cannot resolve it there, to the Governor. There were not issues in this lease sale that were elevated. KENAI RIVER SPECIAL MANAGEMENT -7- AREA ADVISORY BOARD - 1/16/97 minutes Dan: suggested creating a process that would be the difference between an advisement process and a collaborative problem solving consensus process. Having a process that has teeth and people will feel some sort of ownership in the decision. Commissioner Shively said he would like to persuade everybody that DNR intends to take this process very seriously. He said ultimately, though, the responsibility of the management of the States resources does rest with the executive branch of the government. He said the intent is to listen to the people of good will and he will be there to help resolve this process. Brenda Stoops: Would like to see all the groups have a say in who the facilitator will be. She also asked if the names of the facilitators being considered will be shared with everyone? Maril-7n Heiman: There will be a decision on the facilitator soon but names for facilitators will be accepted. There is not a list as yet but Marilyn said a good way to be informed would be to sign the list going around tonight. Steve Porter, ARCO representative: He wished to confirm some things that the Commissioner has talked about. ARCO believes the State has the authority to change the rules on these leases. If the State wants to change the setbacks or any other rules, they have the authority to do that. That is the risk ARCO takes when they buy the leases. DNR cannot cover every issue at the lease sale stage, so as we proceed ahead after the sale there is a whole other process to go through. With a specific exploration proposal you will know what the exact area is and then comment on what cannot be done, or what the mitigation would be, etc. Jim A. then told the board they have a "homework assignment". They need to get their ideas to Marilyn Heiman, or to the Commissioner - or to the Board Chair, Jim A., about what kind of process they would like to see. Brenda Stoops then read a list of recommendations from the Kenai Watershed Forum for the process. She will send this to Marilyn. B. Update Discussion: Previously Authorized Seismic Work in the Kenai River Area - DNR Staff. Commissioner Shively told the board Northern Geophysical has applied for a seismic testing permit on state lands. They actually had a previous permit that was intended to include the Kenai and unfortunately they left it out. There is a public process being reviewed by the Coastal Zone Management program. There is a 30 day comment period which starts today. You may call the DGC staff person handling this permit, Molly Birnbaum, at 271-4317. The Commissioner said the closest that any seismic work will come to the river is 3/4 of a mile away. KENAI RIVER SPECIAL MANAGEMENT AREA ADVISORY BOARD - 1/16/97 minutes Peggy said she felt a little bad about the 30 day process since we meet only once a month. Jeff Hastings is here tonight from Northern Geophysical. He said he would be glad to answer any questions at any time. His number is 344-0079. Their office is at 2361 Cinnabar Loop in Anchorage, 99507. Jim A. said there will be a board teleconference on January 30. The task at that meeting is to quiz Bruce Phelps on questions on the revision of the KRCMP. Jim suggested to Peggy that she take the lead in drafting recommendations for the board to discuss that day. Marilyn Heiman offered that DGC could be available to take the comments from the board. Ben told the Commissioner as he was leaving the meeting that the loan of Bruce Phelps to help with the revision of the Kenai River Comprehensive Management Plan has been extremely beneficial. Hopefully we will be able to borrow him not only to finish the plan but help further on the plan implementation, even if on a part time basis. Ben said he wanted to pass along appreciation for a job well done and the appreciation of this board for Bruce's work. Commissioner Shively said we have some outstanding people in state government and Bruce is certainly one of them. He was specifically picked for this task because of his talent and we are pleased he was able to provide the board with the help. The Commissioner said he would keep him involved. C. Mental Health Trust Authority - Steve Planchon. Steve introduced himself as the Executive Director of the Mental Health Trust Land office. He works for DNR and he said his office was set up to manage Alaska Mental Health Trust Lands. The trust lands are owned by the Alaska Mental Health Trust Authority. The mission of the trust is to benefit mental health beneficiaries. By maximizing revenues from these lands we are doing wonderful things for the State of Alaska and the people who live here. We work for the Alaska Mental Health Trust Authority by managing the land under contract. Jeff Jesse is the Executive Director of the AMHTA. Steve used a map to describe the lands that are being managed under the Trust. He said a copy of these maps would be available for the board for future reference. This is a result of a settlement that took years of litigation. The State of Alaska transferred about a million acres of land throughout Alaska to the- Alaska Mental Health Trust Authority. There own subsurface and surface lands. Steve said they will be participating in the stakeholders process, as the Mental Health Trust wants to make sure they are a good neighbor. He said that as far as the Kenai River goes, they understand the KENAI RIVER SPECIAL MANAGEMENT -9_ AREA ADVISORY BOARD - 1/16/97 minutes concerns of conservation. Steve said there are about 40 leases on the Kenai River since 1977. Steve talked about a trip last summer when Parks took them in a boat to look at every single lease, to see how a trust land is being cared for. The purpose was to see if the lessees were protecting the lands. Mental Health Trust is very interested in protecting the riverbank. He said for any lease, if its` highest and best use is conservation, then it will probably not be developed. He said they are very innovative and very considerate of what they do in the watershed. Steve then fielded questions. A question was asked about how much was sold during lease sale 85A. Steve said there was 70,000 acres throughout the Cook Inlet Basin of which 7 tracts were sold. They received a half million dollars for that. That money goes directly into the Mental Health Trust. This money is used for people whose kids are threatening suicide and they need intervention, for people who need buses or transportation, and many kinds of different programs. Another question asked was what statute does Mental Health fall under. Jeff answered that it is in Alaska Statute 47.30. Steve said DNR manages under AS 38.05.01. Jeff explained that there are 4 beneficiary groups: mental illness, developmental disabilities, elderly with Alzheimers or related demential, and people with chronic alcoholism. Not only does Mental Health serve these people but they are into comprehensive programs that includes things like prevention and education. D. EVOS Small Parcels Acquisition Process for the Kenai River - Update and Strategy Development for prioritization. Chris presented this item on the agenda. She provided each board member with a map which shows the proposed and purchased EVOS parcels. Chris went over the purchased parcels: a 100 acre parcel that was owned by Chester Cone in the Beaver Loop area, a 20 acre parcel owned by Dr. Kolylarz near Big Eddy, a 110 acre parcel owned by Irene Girves in the City of Soldotna, an extensive section of river frontage owned by Salamatof in the Moose Range meadows area, a 146 acre parcel called the "Kenai River Ranch", near the proposed Funny River bridge crossing, and the Kenai Native Association parcel downstream from Skilak Lake, otherwise known as the Stephanka tract. Lands that are currently under negotiations are 3 parcels owned by Leo Oberts, (Peterkin parcel, Honeymoon parcel, and the Big Eddy parcel), the Schilling property located just downstream from the Soldotna bridge, a parcel upstream from the Soldotna airport known as the Patson parcel, and a couple of other miscellaneous Salamatof parcels. There are 30 other nominations for parcels that received low rankings. There is a working group that is currently considering whether any of those parcels should be brought back up and considered as parcels meriting special KENAI RIVER SPECIAL MANAGEMENT AREA ADVISORY BOARD - 1/16/97 minutes attention. -10- The small parcel program is one that is addressing parcels that are under 1000 acres. The purpose of the program is to identify and purchase lands from :willing landowners at appraised fair market value, those lands that serve in some way to restore habitat that was lost or diminished during the oil spill or to restore values for species that were affected by the oil spill. It can also provide for restoring recreation services that were diminished or lost by the oil spill. E. Kenai River Property Owner's Association Survey Results. Walt Arthur supplied the board with a copy of the KRPOA "Survey of Kenai River Property Owners". Walt went over many of the questions in the report, and offered the survey as another tool the Board could use in considering public input for the Management Plan revision. Robin Nyce asked if the KRPOA includes people with guiding businesses, or other commercial businesses. Walt said it is mostly single family owners, plus a couple of guides. Walt will leave a copy of this report with the Kenai River Center. IV. PUBLIC COMMENT. No public comment. V . ADJOURNMENT A. Board Comments. Peggy: Invited all to an Open House at the new office space of the Kachemak Heritage Land Trust located in The Nature Conservancy's office at the Blazy Mall. This is on Friday night (1/17) at 5 pm. She also reminded board members if they would be interested in helping her with Northern Geophysical's permit application review to please contact her. Gary: Offered thanks to Walt Arthur for the KRPOA survey. Pat: Also thanked KRPOA for the survey. Len: Encouraged everybody to participate Commissioner Shively's offer to participate in the working group for Lease Sale 85A. This will demonstrate to the State that people really care and want to be part of the solution. Robin: He told the board about some of the things that will be happening this year on the Refuge. They have a new budget that looks pretty good. There is funding for an additional enforcement officer; funding for 4 new toilet facilities. For Peggy's interest or anyone interested, he volunteered staff members such as Jim KENAI RIVER SPECIAL MANAGEMENT AREA ADVISORY BOARD - 1/16/97 minutes -11- Frates to help in understanding seismic operations. Jim A: Jim said he has had a couple of discussions with Mayor Navarre as follow up to the letter that was in the packet. Navarre is interested in meeting with the board. Lisa Parker will coordinate the discussions to talk about the land use issues to be included in the Management Plan. All board members will be invited to participate. Ben: The City of Soldotna and KRSI will be getting together in the next few weeks to talk about Phase 3 of the fish walk. The concept is that a trail will meander away from the river and back to the river for a board walk on the next 400ft. He hopes to have the design done by February, then seek the permits, followed by bid work in March, in order to get on line with the next segment. So far the fish walk that is in place includes a 72 feet and a 250 feet section that has cost $137,000 raised from the Kenai River Classic. Ben also said that Dennis Randa has been working on a water quality study. It is still in an ongoing developmental stage and funding is not completely secured. Ben stated that Dennis plans to find a graduate student to run the project. Robin: It was great having the public presence at this meeting. Chris: 4 board members seats expired on January 2. (Pat, Jim A., Ben, and Peggy) The Governor's Boards and Commissions office has asked us to go ahead with recruitment to follow the process in our By -Laws for submitting names. Chris said she was informed that the Commissioner has requested that Pat, Jim, Peggy and Ben were all requested by the Commissioner to re -apply. Brannon: Asked if this whole board is to be part of the LS85A group or will it be a subcommittee of this group. Jim A. said he understood that the invitation was for all members to participate. Ken: The City of Soldotna is planning bank restoration and habitat work at Centennial Campground with EVOS money. Thanked Walt Arthur for the survey. Jack: The City of Kenai is half way through the Kenai Beach Dunes Project, (north side of the mouth of the Kenai River) and hopefully by summer it will be completed. Also in the past, there have been some preliminary talks of the possibility of swapping or selling 2,000 acres of wetlands at the mouth of the Kenai River. He's interested in continuing this discussion. B. Date/Agenda of Next Meeting. Feb 13, 1997 at the Cook Inlet Aquaculture Association Building. 1/30 teleconference meeting at the Kenai River Center, 7:00pm. Project Status Report A/NC/F CRy Contact Name A JL Alaska Regional Fire Training Facility, ARFF A RC Bluff Clean-up A RC Contaminated Soils - Airport A RC Contaminated Soils - Shop A MK/JL. Historic District Signs A=Active NC=Non-Construction F=Future A JL K.M.A. Taxiway "C" Extension North A KK Kenai Beach Dunes - North Side A KK Mission Street Status KK - Keith Kornelis JL - Jack La Shot RS - Robert Springer MK - Marilyn Kebschull RC - Rachel Clark KW - Kathy Woodford Equipment and design assistant bid - Awarded contract to Symtron, Morrison Maiede handling contract... Rec'd Corp Permit App. to be sent to Corps... Rec'd invoice and Prelim. Design Report... Draft E.A. received from Aries. Ppreliminary plan to DEC... Coir logs... Requested waiver of solid waste regs. $10,000 appropriated for environmental work... Drafting RFP in April/May. $10,000 appropriated for environmental work... Drafting RFP in April/May. Shk'itukl art work complete... Sign locations chosen... Getting bids for the Shk'itukt sign... Sign design accepted by OHA... Have rec'd 13 signed contracts for 21 signs. Engineering contract awarded to Wince-Corthell- Bryson... Starting field & soils 11/25/96... Plan to start construction in June, 1997... Corps Permit sent by WCB to Corps... Corps wanted city to justify design, moved grass strip, maintenance road... Revised cost estimate, working w/FAA on funding. Stair piles driven... Piles for boardwalk are driven... Concrete pads and concrete piles have been placed (12 plus or minus left over, 9 broke) ... ADF&G on -site while moving... Contractor working on stairs and boardwalk fabrication... Meet w/Kuwada 1/23, piles are where he wants them. Final plat for new road ROW has been approved by KPB... Working on funding for Alaska Ave. paving, water & sewer, and street lighting... Will hold public hearing soon... DOT reviewing plans. Wednesday, February 12, 1997 Page 1 of 3 AM/F City Contact Project Name Status A JURS Municipal Park Restroom Concrete work complete... Contractor and subs to complete for summer 97 use. A KK STP Disinfection Change Mailed mylars to engineer... Waiting for as -built. A KK/KW Street Lights Complete. A JUKK Well House No. 3 Completion soon ... ADEC inspected 12/10/96... Requested accelerated review of water rights ... Wellhouse is on-line. F KK/JL Animal Control Shelter Funding being formulated... Plans are complete with cost estimate... Chief Animal Control Officer looking at other building types... Requested proposal from Klauder... Looking at other sites. F KK ASTF Grant Nelson working on grant for proposed bluff erosion... Have proposal from PN&D for different alternatives and costs... Nelson to report at the March 3, Harbor Commission meeting. F Challenger Learning Center Preliminary business plan... Incorporation papers filed... Funding being organized. F City Road Projects CIP list for funding from Legislature. F JURS FAA Flight Service Building Had meeting with FAA... they will explore extent of project and funding... Suggested FAA hire architect for consultation as to scope of work. F KK Forest Drive DOT project... Received letter from DOT in response to KK request... Preliminary work to begin soon... Public hearing by DOT in future. F KK Kenai River Mouth -South Side Grant submitted for $779,000, have not heard anything further about grant. F KK Logging City Lands Didn't receive bids in 96... Not sure if market has improved. Wednesday, February 12, 1997 Page 2 of 3 A/NC/F City Contact Pr ut Dame status F Park Developments Cunningham - historic house (City Manager proposes to discuss moving in new budget), steam engine, sidewalks, pavilion, big toy center, restroom F Public Health Center Have Scott's needs assessment... Searching for and supporting funding efforts. F JUKK S.Spruce Beach Parking Corps permit process complete... No funding appropriated as yet. F KK Water Quality/Quantity Next step wellhouse modification and/or SCADA Development Program for water system control... Water main loop lines... Additional funding requested from DEC and Legislature... Start engineering design work on well house modifications and SCADA. NC JL ADA City Building Study Received RFP's 1/30/97... awarded to Kluge... Evaluation is underway. NC JL Airport Master Plan Approximately 80% complete... Completing environmental for ARFF and airport proper... Public hearing March 13. NC KK STP Mixing Zone Analysis Study complete... Billed KPB for 1/2 of study... Copper is the main problem with the effluent. ineway, veoruary 12, 1997 Page 3 of 3 COUNCIL FYI ITEMS CITY OF KENAI ►► Od 4 Aar it 210 RDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907.283-7535 FAX 907-283-3014 January 30, 1997 Peter M. Nakamura, MD, MPH Director, Division of Public Health Department of Health & Social Services P.O. Box 110610 Juneau, AK 99811-0610 Dear Mr. Nakamura, Your letter of January 16, 1997 was good news, and we appreciate your efforts and support for relocation of the Public Health Center Facility in Kenai. Please keep us informed of the status of your request for planning funds for FY98. We will lend any assistance possible to see that these funds are secured. Once the planning funds are obtained, we look forward to working with our site identification and other issues of mutual concern. Sincerely, dcard�os� City Manager DEPT. OF HEALTH AND SOCIAL SERVICES DIVISION OF PUBLIC HEALTH January 16, 1996 The Honorable John J. Williams Mayor City of Kenai 210 Fidalgo Ave., Suite 200 Kenai, AK 99611-7794 Dear Mayor Williams: TONY KNOWLES, GOVERNOR P.O. BOX 110610 JUNEA U. ALASKA 99811-061) PHONE: (907) 465-3090 FAX: (907) 586-1877 RECEIVED JAEi- KENAI CITY LERK Thank you for sharing the very professional study on "Relocating the Kenai Public Health Center". K. Scott and Associates were very thorough in their study and presentation. The Department is appreciative of the interest the city has shown in trying to resolve the problems related to the very inadequate Public Health Center facility in Kenai. This issue has been one of mutual concern to the City, State, and the Public Health Nursing program. I have shared the study with the office of the commissioner and our facilities planning staff and we have recently met to address this issue. The state is presently consolidating and moving towards the reduction of the use of leased space for state programs. Recognizing the importance of this issue the Department of Health and Social Services has included the Kenai Health Center in the recommendations for the Governor's six year capitol budget. We have requested planning funds for FY98 with the understanding that we would request construction funds for a State Public Health Center in the subsequent year if these planning funds are approved and appropriated. We are hoping that our FY98 request for planning moneys is funded in the upcoming legislative session to allow us to continue to move forward with you on this important project. We will work closely with the Kenai Community on any planning for facility construction for a State Public Health Center. It will be necessary to identify a community site which will allow easy access for collaborative health and social services. The study conducted by Scott and associates will be of great assistance in this effort. nc C701 u Mayor Williams -2- January 16, 1996 Thank you for your patience and continued interest. Sincerely, Peter M. Nakamura, MD, MPH Director cc: Commissioner Karen Perdue, DHSS Deputy Commissioner Russ Webb, DHSS Janet Clarke, Director, Administrative Services, DHSS Elfrida Nord, Chief of Nursing, Public Health KENAI PENINSULA BOROUGH QUARTERLY REPORT of Key Economic Indicators (for the Quarter Ending 12-31-96) MIKE NAVARRE BOROUGH MAYOR Prepared by: Kenai Peninsula Borough Economic Development District, Inc. P.O. Box 3029, Kenai, Alaska 99611-3029 (907) 283-3335; Fax (907) 283-3913 January, 1997 February 10, 1997 Mayor John Williams City of Kenai 210 Fidalgo Ave., Suite 200 Kenai, Alaska 99611 RECEIVED FEB 0 3 1997 KENAI CITY CLERK RE: Quarterly Report of Key Economic Indicators Dear Mayor Williams: KENAI PENINSULA BOROUGH ECONOMIC DEVELOPMENT DISTRICT, INC. The Kenai Peninsula Borough Economic Development District, Inc. (EDD) is in the process of creating a Quarterly Report of Key Economic Indicators. The intent of this report is to provide policy and decision makers throughout the Kenai Peninsula Borough a quarterly summary of economic activity. Areas of focus include: taxable sales, employment, home sales, utility hookups, vacancy factors, assessed value trends, city building permits issued, information on construction not requiring permits, development that has occurred recently, information that indicates which geographic areas of the borough are growing, and what types of businesses are increasing/decreasing. This enclosure is the first report produced for the quarter ending December 31, 1996. Due to time constraints, not all of the information requested for inclusion in the report was received prior to its publication. We would appreciate your attention in reviewing the information and formatting of the report and provide feed back on content and/or format. This report is a work in progress. We will continue to expand our data sources and our contacts within each industry. If you are aware of any potential data sources or have anyone in mind that we may contact as a resource, please let us know. Thank you for your time. Please give me or Becky Hultberg a call at (907) 283-3335 with your comments. Sincerely, Aleja J. DeVito Economist enclosure fpT. 'rl'S air s' !kd7- .,...„*:' �r. s nuc u . .. e. E.conoIndicators Volume 1, Issue 1 Executive Summary The economy of the Kenai Peninsula Borough appears to have emerged from the difficult times of the late 1980's and early 1990's healthy and stable. With an increasingly diverse economy, residents enjoy a wider variety of economic oppor- tunities than in past years. The size of these individual industries in relation to the overall economy, however, is changing. These changes impact not only employment, but sales tax, real estate, and construction activity as well. The real estate industry demonstrates the increas- ing stability of the Borough economy. After slow years in the early 1990's, the industry has re- bounded and is growing consistently, but at a stable rate. An increase in the total number of jobs available in the region, positive consumer expectations, and other factors have led to a sub- stantial increase in the industry in 1996 over 1995. Building permit information highlights the trends in residential and commercial construction. Big developments have characterized commercial con- struction since 1990, with notable events such as the construction of Fred Meyer and K-mart im- pacting commercial construction valuation within the cities. Building permit information also shows that the residential construction industry is healthy and growing. Notable in these indicators are the trends toward affordable housing in the City of Soldotna, with the number of new homes constructed under $100,000 increasing dramatically. January 15, 1997 Sales tax information shows that both the number of registered sales tax accounts and total taxable sales are growing. Increases in the number of registered sales tax accounts were most notable in the sectors of Retail Trade; Services; and Finance, Insurance and Real Estate. Increases in total tax- able sales for the Borough overall were notable, with large increases in several areas. Taxable sales for individual communities were varied. Employment in the Borough continues to grow, with increases in the total labor force and total earnings. Average monthly salaries have de- creased, however, probably due to the increase in the Retail Trade and Service sectors. The economic outlook for the Borough appears optimistic. While the economy is growing, more in-depth analysis needs to be completed on the industries that are growing most rapidly to predict the impact of these growth patterns. Table of Contents Real Estate 2 Building Permits 3 Sales Tax 5 Employment 9 1 Kenai Peninsula Borough Economic Development District, Inc. Real Estate The Industry in 1996 Overview: In an emerging economy such as the Kenai Peninsula Borough's, real estate has been a risky occupation. Throughout the 1970's and the 1980's, a fluctuating and volatile economy determined whether the year would be feast or famine. With the development of a more stable array of economic opportunities, however, the Kenai Peninsula Borough has demonstrated that it is emerging as a growing, diversified economy. This bodes well for an industry that relies heavily on a stable job base and optimistic consumer expectations. Historical Perspective: After oil was discovered in Cook Inlet in the 1960's, a period of economic boom hit the real estate industry. The 1970's saw good years for realtors and property owners, as the market for real estate continued to increase, reaching a peak in 1977-78. After such rapid growth, the market underwent a correction in 1979 and 1980. In 1981, the market turned, and came back strong. 1981- 1986 again saw economic prosperity and a demand for real estate. From 1986 through 1990, the market again went through a period of depression as the area economy soured. When residents needed to sell their homes and leave the area. they often could not recover their investment. Multi -family dwellings became bargains as the vacancy rate increased. 1989-1990 alone saw over 100 repossessed homes. 1990-1991 saw the beginning of a long, slow turnaround. By 1993, the values of homes again began to appreciate. 1993-1994 saw positive gains in appreciation. Since 1994, appreciation gains have been stable. Consumer expectations play a large role in the health of the real estate industry. Even in the face of a growing economy, negative economic perceptions will prevent people from investing money in real estate holdings. With a more diversified economy in the 1990's than in the preceding decades, with the arrest in oil production declines, low interest rates, and with a larger number of economic opportunities available today than five years ago, consumer expectations should be stronger than they have been for a decade. Both the increase in the stability of the economy and the number of positive factors affecting consumer expectations, the real estate industry should enjoy more years of stable growth. 1996 INFoRmATioN • Residential sales approached $38 million dol- lars, an increase of 13-14% over 1995. The average sales price for residential property was $100,905, with an average number of days on the market of 165. There were 374 total resi- dential sales in 1996, up 41 sales over 1995. • Land sales brought in over $7 million in 1996, a jump of 11-12% over 1995. The average sales price was just over $25,000, and the average number of days on the market was 290. There were 302 sales of land in 1996, compared to 291 in 1995. • Commercial properties saw the largest in- crease over 1995. The total value of commer- cial property sold was over $5 million, an in- crease of 49% from 1995. There were 23 sales, compared to 14 in 1995. The 1996 properties were on the market an average of 200 days and had an average price of $219,455. • Multiple family properties decreased in the number of sales and value of sales from 1995. 1996 saw five fewer sales than 1995. The value of sales was slightly over $2 million, a decrease of 22-23% from last'year. The decrease is prob- ably a correction in the market resulting from undervalued properties in the past. This representation is baud on wbole or m pat on dau supplied by the Kenai Peninsula Board of Realtors and the Kenai Peninsula Multiple Lia ng Servic­MLSI. Neither the Board r to MLS guaranttts w is in anv way responsible fur its accuracy. Dau mauusned by the Board or iu M1S may not reflect all rul state activny in the marks. 2 Kenai Peninsula Borough Economic Development District, Inc. Building Permits A Picture of a City A Soldotm The City of Soldotna has seen numerous changes in its residential and commercial activity over the past seven years. Emerging from a period of economic uncertainty in the early 1990's, the City shows promising growth in residential construction and a healthy commercial construction industry as well. Profound changes are occumng, however, in the economic sectors comprising the Soldotna economy. Building permit information shows that the majority of new commercial construction within the last five years has occurred in the service and retail sectors of the economv. Growth in these sectors seems to have impacted the residential construction industry within the city as well. SiGmFicaNT NFw CoNsTRuc-noN AmVrri' 1990: City of Soldotna - Sewage Treatment Plant Upgrade 1993: Fred Meyer 1994: Taco Bell, Catholic Church, Soldotna Police Station, CPGH Addition, KPC Addition, Tesoro 1995: Safeway Renovation, River & Sea Marine, 7-11, Large Commercial Building 1996: Mapco, Midas Auto, TransAlaska Title, Eureka Mall - M[Ii.Ti-FAmmy DwELLINCS 1991: Northwood Retirement Center (23 Residential Units); Tri-plex (three units); Cabins (four units) 1994: Four-plex (four units) 1995: Duplex (two units) 1996: Trumpeter Apartment Reconstruction (12 units) Commercial Building Permits: The City of Soldotna has seen some growth in the number of new commercial building permits issued, reaching a seven year high of seven new commercial permits issued in 1996. Including commercial alterations and new commercial buildings, however, the number of permits issued peaked in 1991 at 23, and has remained steady with between 10 and 15 permits issued annually, indicating stable commercial construction activity. Value of Commercial Permits Issued- New Construction $12,000.000 S 10,000.000 $8,000,000 S6,000,000 S4,000,000 S2,000.000 S- 1990 1991 1992 1993 1994 1995 1996 Valuation of new permits issued has fluctuated dramatically as shown by the graph above. Fred Meyer had the single largest impact of any new construction on total valuation, driving values of new construction from zero in 1992 to over $10 million in 1993. 1994 also saw significant new construction activity. 30 25 v 0 20 0 15 E 10 7 z 1990 New Residential Construction Permits by Value of Home 1991 1992 1993 1994 1995 1996 Year Residential Building Permits: The increase in the service, trade, and retail sectors of the economy has had a noticeable effect on the housing construction market in Soldotna. While new residential construction has been on the upswing since 1990, the largest increases have occurred in homes under S100,000. Trade, service, and retail occupations, although they provide stable jobs, do not provide the high wages of other sectors of the economy. The increase in 3 Kenai Peninsula Borough Economic Development District, Inc. Building Permits, Continued LL] employment in these sectors has created a niche market for the construction of new homes under $100,000. This is reflected in the increase of affordable single family dwellings within the City of Soldotna. Overall, the number of residential building permits for new construction in the City increased dramatically, from three in 1990, to 46 in 1996. The City of Kenai has seen positive growth in both commercial and residential developments. While some inconsistencies in historical data makes long term analysis difficult, recent data shows stability. Commercial Permits: Values of new commercial construction soared in the period from 1991-1993 due to several major construction projects. These included: the Bicentennial Visitors & Cultural Center, the Fire Training Center, the new court house, K-mart, Kenai Value of New Commercial Construction Permits Airport Improvements, renovations of Wildwood Pre-trial facility, and the new Carr Gottstein grocery store. The number of commercial construction permits, however, did not follow this pattern, with more Commercial Construction Permits Issued permits issued in 1995 and 1996 than in any of the six previous years. Residential Permits: There is a lack of consistent historical information on residential activity in the City of Kenai. Since 1993, the activity appears strong, with between S3 million and $5 million in new construction activity. Likewise, the City has seen a large number of permits issued for residential construction. Home Occupation Permits: The City of Kenai maintains information on home occupation permits. A home occupation permit is needed for any home based business in an area not zoned for that business activity. The business must operate so that the average neighbor would not know of its existence. Home occupation permits increased from three to nine in 1996. Conditional Use Permits: Conditional use permits are necessary for any business activity occurring in an area not zoned for that specific activity. Bed and breakfast operations require a conditional use permit in any zoned area. Conditional use permits have increased in the past seven years, reaching 17 for 1996. Of the 47 conditional use permits issued since 1990, 28 were for tourism related activities. This points to the increasing impact of the visitor industry. 4 Kenai Peninsula Borough Economic Development District, Inc. Sales Tax Kenai Peninsula Borough Number of Accounts The number of registered sales tax accounts can indicate changes in business activity in the Borough. This information, however, is only available for the Borough as a whole, not specific communities. The 1996 information contained in this report is from a sales tax report generated in August and does not include the most recent 1996 information. Sales tax dollar amounts are updated continuously and information from the third and fourth quarters of 1996 may affect the percentages analyzed in this report. Second Quarter Comparisons: Analyzing percentage increases in the number of registered sales tax accounts from 1990-91 through 1995-96 for the second quarter of each year, shows Percent Increase in the Number of Sales Tax Accounts 1990-91 1991-92 1992-97 1993.9. 1999.95 1995-96 that the number of accounts increased dramatically from 1990-1991, 1992-1993 and again from 1994- 1995. The large increase from 1990-1991 resulted from an increase in Retail Trade and Services; the increase in 1992-1993 from an increase in Retail Trade, Services, and FIRE (Finance, Insurance, and Real Estate); and the increase in 1994-95 from Construction, FIRE, Retail Trade, and Services. Comparing the second quarters of 1990 with 1996 shows an overall increase of 1,326 in the total number of registered sales tax accounts, a 31 % increase. The largest increase in a specific economic sector occurred in the Services category, which jumped 41%. Specific Standard Industrial Classification Codes (SIC Codes) within the Service industry seeing large increases were Rooming & Boarding Houses and Amusement & Recreation Services Not Elsewhere Classified (a catch-all code). The increase in these service sectors are a testament to the increase in the number of businesses engaged in tourism related services. Retail Trade saw the second largest increase in the number of registered sales tax accounts, jumping 34%. SIC Codes showing an increase included Miscellaneous Food Stores, Eating Places, Miscellaneous Retail, Gift/Novelty/Souvenir Shops, Direct Selling Organizations, and Miscellaneous Retail Not Elsewhere Classified. These increases merit two observations. First, the strength of Gift/ Novelty/Souvenir Shops, and Eating Places, may point to increases in visitor services. Second, overall increases in retail sales point to the emergence of the Borough (specifically the Central Peninsula) as a service and retail center. As the consumer's retail options increase on the Peninsula, more dollars will be captured by local merchants instead of going outside of the Borough. The third notable area of increase occurred in the Finance, Insurance, and Real Estate industry (FIRE). The primary SIC Code affected was Dwelling Operators excluding apartments. This increase may be attributed to the increased number of residents operating summer lodging businesses. The only significant decrease in registered sales tax accounts occurred in the Mining sector. Overall, the sector showed a 22% decline, IS accounts, with the majority of the decline in Oil and Gas Field Services. Declines in the Mining sector point to the trimming of operations in the oil industry, where many operations once contracted out are being conducted in house. 5 Kenai Peninsula Borough Economic Development District, Inc. Taxable Sales Kenai Peninsula Borough (Note: Taxable sales figures are for the first half of 1996, compared to the first half of 1990. Changes are noted in the total dollar amount of taxable sales between those two periods. The 1990 figures have not been adjusted for inflation. In addition, changes are noted if there is a significant difference in the percentage of taxable sales that an industry_ contributes to the total taxable sales. Comparing total taxable sales for the first half of 1990 and 1996, shows several notable areas of change. In the Agriculture, Forestry, and Fish category, taxable sales declined 19%, due to a decrease in taxable sales for the SIC Code Fish Buyers. Mining saw a 49% decrease in taxable sales, with the primary decrease in the SIC Code Oil & Gas Field Services. Construction also saw a decrease in total taxable sales, with the SIC Code Special Trade Contractors accounting for much of the 10% decline. Manufacturing, however, saw an increase in the seven year period of 25%. Increases came in the SIC Codes of Fresh & Frozen Packaged Fish, Roasted Coffee, and Newspaper Publishing. Transportation, Communication, & Public Utilities also increased, 22%, with the majority of the increase coming in the Telephone Communications and Electronic Services SIC Code. Wholesale saw the largest jump in taxable sales, with a 62% increase attributed to the SIC Codes of Industrial Machine, Equipment & Supplies, and Petroleum and Petroleum Products. Retail Trade increased 28%, with increases in the SIC Codes Lumber/Other Building Material Dealers, Variety Stores, Miscellaneous General Merchandise Stores, Miscellaneous Food Stores, Family Clothing, Eating Places, Drug & Propriety Stores, and Gift/Novelty/ Souvenir Shops. FIRE increased 40% with increased taxable sales in the SIC Codes of Apartment Buildings Operators and Dwelling Operators (excluding apartments). Services saw a Breakdown of Total Taxable Sales First Half of 1990 Ah F-1 FY\ MI c.-.::,- RM LM urr! 31% increase with the majority of the increase in taxable sales in the SIC Codes Hotels/Motels/ Tourist Courts and Amusement/Recreational Services Not Elsewhere Classified. When analyzing the percent of total taxable sales captured by each industry, most notable is the decline in mining from 1.9% of the total in 1990 to 0.6% of the total in 1996. Also notable is an increase in retail of 0.8% and an increase in services of 0.3%. Breakdown of Total Taxable Sales First Half of 1996 NYIN RM Y�wlul�rlN A{. Fe Fi - Ap.c.Ir . Fwa.eY. FnYnr+ T., — A P.0 - T­ C— A P.Ais L "R - Firm, —, A P E 6 Kenai Peninsula Borough Economic Development District, Inc. Taxable Sales By Ci LL Homer The City of Homer saw a 15% increase in total taxable sales from 1990-1996. The most notable increase occurred in the area of Wholesale Trade, which increased 371%. Specific SIC Codes contributing to this increase were Industrial Machines, Equipment, and Supplies; and Petroleum and Petroleum Products. FIRE increased by 34%, with the increase in Dwelling Operators (except apartments); while Manufacturing increased 99% with increases in the SIC Codes of Fresh and Frozen Packaged Fish, Glass Products of Purchased Glass, and Fabricated Metal Products. Other areas of increase were Services; Retail Trade; and Transportation, Communication and Utilities. Major areas of decline included Construction (down 30%), and Agriculture, Forestry & Fish (down 50%). As percentages of total taxable sales, the most notable shifts were in Wholesale Trade, moving from 2.2% of the total to 8.8% and Retail Trade declined, from 58% to 53%. Services also experienced a slight decline as a percentage of total taxable sales. as did Transportation, Communication, and Utilities; and Construction. Kenai The City of Kenai saw a total increase in taxable sales of 30% from 1990-1996. Retail Trade experienced a notable jump, climbing from S23 million to $34 million, an increase of 50%. SIC Codes within the Retail Trade sector that increased significantly included: Miscellaneous General Merchandise (opening of K-Mart), Grocery Stores (Carrs), and Miscellaneous Food Stores. Also increasing dramatically was FIRE, which increased 43%. Services; Transportation, Communication & Utilities; Manufacturing; and Construction all increased between 5% and 32%. Areas that decreased included Mining, which showed a drop of 65%; Agriculture, Fishing and Forestry, down 38%; and Wholesale Trade, which dropped 821,o due to a decrease in the SIC Code Groceries and Related Products. As a percentage of total taxable sales, retail increased from 57% to 66%. Services and Wholesale Trade realized declines, moving from 18.3% to 14.8% and 6.2% to 1% respectively. All other sectors industries decreased less than 1.5%. 1oVi2 Total taxable sales in Seldovia for the first halves of 1990-1996 increased by 5%, a small increase compared to other communities. Areas of increase included FIRE; Retail Trade; Wholesale Trade: Transportation, Communication & Utilities; Manufacturing; and Construction. Agriculture and Services both saw drops in total taxable sales. As a percentage of total taxable sales, Services dropped from 19% to 17%. FIRE increased from 1 % to 4%; and Transportation, Communication. & Utilities increased from 12% to 15%. R1 ISiiihi '&0 ROMI NU TRANSPORTATION, CO.ti01LINI ONt:. D' TILITtlEs..'..: ka fir+' WjiOLESAI D FINAki;!L 5URAN AND` ,,jh� SER ICES , se:c L ESTATE. Kenai Peninsula Borough Economic Development District, Inc. Taxable S es By City Seward saw a 24% increase in taxable sales from 1990 to 1996. A major area of increase came in the Service sector, which increased by 67% from S5 million to almost $9 million. Other significant increases included Wholesale Trade; Retail Trade; Transportation, Communication, and Utilities; and Manufacturing. Areas that declined included Construction; :Mining; and Agriculture, Forestry, and Fishing. As a percent of the total taxable sales, Services increased from 27% to 37%. Retail Tradesuffered the largest decline, falling from 55% to 49%. No other significant changes occurred. Soldotna generally saw increases in the same economic sectors as Kenai. Total increases for the City from 1990-1996 amounted to 36%. Retail Trade shot up by 40%, while FIRE increased by 38%. Other increases included Services (14%), Manufacturing (53%); Transportation, Communication & Utilities (33%) and Wholesale Trade (37%). Overall, the percentage of total taxable sales maintained by each industry remained fairly constant. Retail Trade showed the most notable change, jumping from 74.6% of the total to 76.7% of the total taxable sales. Services saw the biggest decline in its percentage of total taxable sales, moving from 12.2% of the total to 10.3% of the total, even though total taxable sales increased in the service industry. The outlying areas of the Borough (outside city limits) saw total sales increase by 24%. Major areas of increase were Services (48%); FIRE (38%); Retail Trade (18%); Wholesale Trade (114%); Transportation, Communication & Utilities (32%); and Agriculture, Forestry, and Fishing (57%). As a percent of the total taxable sales, notable changes included: Services, which increased by 3% to 18.3%; Retail Trade, which declined by 2.4% to 42.2%; and Wholesale Trade, which increased by 1.5% to 5.9%. 8 Kenai Peninsula Borough Economic Development District, Inc. Employment by industry Kenai Peninsula B oroud Overview: Overall employment in the Kenai Peninsula Bor- ough continues to grow. Comparing the first three quarters of 1990 with the first three quarters of 1996 shows an increase in the labor force of 25%. The 1996 average labor force is at an all-time high of 23,425. Average unemployment figures also look positive, down to 9.8% in 1996 compared to 11.5% in 1990. Employment by Industry: Statistics on employment by industry also show growth. Overall employment by industry increased b-v 34% from 1990 to 1995. The most significant increases occurred in Construction (18%); Retail Trade (39%); FIRE (30%); Services (21 %); and Total Government (23%) industries. Manufactur- ing decreased by 3%. Yearly Earnings by Industry: Yearly earnings by industry also increased from 1990-1995. by I S%. Significant increases occurred in the Wholesale Trade (35%), Retail Trade (52%), FIRE (45%), and Government (35%). There were no decreases in yearly earnings. Average Monthly Salary by Industry: Although total industry earnings increased, total industry average monthly salaries declined, leading to the conclusion that more people are employed but at lower wages. Notable decreases in average monthly salary occurred in Construction (12%), Services (16%), and State Government (9%). All other industries saw increases in average monthly salaries of at least 6%. Interesting to note is that Mining, while accounting for only 6.9% of total industry employment, gener- ates 13.1 % of total industry earnings within the Borough. In addition, average monthly salaries for Mining are 190% of the average industry monthly salary. Retail Trade, on the other hand, comprises 18.7% of total industry employment, but only rep - resents 9.8% of total industry earnings. Average monthly salaries for Retail Trade, however, only represent 50% of the average monthly industry wage. The Service industry also represents a large percentage of total industry employment, with 10.2%, but a comparatively small percentage of total industry earnings, with 11 %. The average monthly wage for the Service industry is also only 50% of the average monthly industry wage. Mining; Construction; Manufacturing; Transporta- tion, Communication, and Utilities; Wholesale Trade; and Government all have salaries above the average industry wage. Retail Trade, Service, and FIRE all have salaries below the average industry wage. Industry Total Percent- Percent of Total Percent of Aver- age of Industry Industry Earn- age Industry Employment ings Wage Mining 6.9% 13.1% 190% Construction 5.3% 6.5% 120% Manufacturing 11.3% 14.6% 130% Trans., Comm., 6.6% 8.1% 120% & Utilities Wholesale 2.8% 3.6% 130% Trade Retail Trade 18.7% 9.8% 50% FIRE 2.9% 1.6% 700/6 Service 20.2% 11.0% 50% Government 26.1 % 31.4% 120% 9 Kenai Peninsula Borough Economic Development District, Inc. MAYOR'S REPORT FEBRUARY 19, 1997 COUNCIL MEETING REQUESTED CHANGES TO THE AGENDA BY: 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. VICE MAYOR CONSENT AGENDA MAYOR'S REPORT CITY OF KENAI . "(X Capdat q 4(a., d . FAX TO /. FROM 210 Fidalgo, Suite 200 Kenai. Alaska 99611-7794 Phone 907-283-7535 J Fax 907-283-3014 Date// Number of Pages 1791 - 1991 CITY OF KENAI A 210 Fidalgo, Suite 200 K-kau-Alaska 99611-7794 T Capdat o� 74(a� Phone 907-283-7535 Fax 907-283-3014 FAX TO FROM Date _-,,2 / / Number of Pages FA-0 / 5 AGENDA RENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 19, 1997 7:00 P.M. RENAI CITY COUNCIL CHAMBERS http://www.Kenai.net/city B. SCHEDULED PUBLIC COMMENT (10 Minutes) C. PUBLIC 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. 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. 7. *1996/97 Liquor License Continuance Protest/WITHDRAWAL - The Upper Deck (delinquencies noted have been resolved). 8. *1997/98 Liquor License Renewal - Peninsula Moose Lodge - Beverage Dispensary. 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 February 19, 1997 1. 2/5/97 Kenai City Council Meeting "To Do" list. 2. 1/27/97 Habitat and Restoration Division letter regarding Dunes Project/Design of Vehicle Turnaround on Kenai Avenue. 3. Youth Court Invitation. 4. 1997 Games of Chance and Contests of Skill Permit Application - Mt. View PTA. 5. 1/16/97 Kenai River Special Management Area Advisory Board Meeting Minutes. 6. 2/12/97 City of Kenai Project Status Report. KENAI CITY COUNCIL MEETING FEBRUARY 5, 1997 "TO DO" LIST ADMIN - Follow progress of HB 51. ADMIN - Include Kenai Chamber Board of Directors in those persons invited to the April 26 work session with business representatives from the community. CLF - Advertise and prepare for goals and objectives work session scheduled for May 14. Make travel arrangements for Councilman Smalley to attend "Experience Challenger" program in Seattle. CRG - Investigate possibility to sell golf course lots (BOR land), placing sale income in trust account in order to purchase recreation lots in future in exchange for the BOR lands. COUNCIL PACKET DISTRIBUTION COUNCIL MEETING DATE: Mayor and Council Attorney Fire Department City Manager vl� Police Department Finance Senior Center Public Works Library Airport V Parks & Rec. Safety 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 /('Pz L DELIVER Council Packets to Police Department Dispatch desk. Clerk Woodford La Shot Springer K&sdi it Kim Clarion 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 of the agenda published by the Clarion is faxed before 5:00 p.m. Home Page documents (agenda, resolutions and ordinances for public hearing) are picked up by Ed Sipple on Friday afternoon.