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HomeMy WebLinkAbout2003-07-02 Council PacketKenai City Council Meeting Packet July 2, 2003 AGENDA KENAI CITY COUNCIL- REGULAR MEETING JULY 2, 2003 7:00 P.M. KENAI CITY COUNCIL cHAMBERS htt~. / / www. ci.kenai.ak.us _ ITEM 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. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) , Ann Evans, Central Peninsula Health Centers, Inc. -- Update on Aspen Dental Center. ITEM C: REPORTS OF KPB ASSEMBLY~ LEGISLATORS AND COUNCILS ITEM D: PUBLIC HEARINGS o Ordinance No. 2008-2003 -- Amending KMC 1.80.010 to Adjust the Salaries of the Mayor and Council Members. a. Motion for Introduction b. Motion for Second Reading (Requires a Unanimous Vote) c. Motion for Adoption . Resolution No. 2003-37 -- Awarding the Bid to Alaska Roadbuilders, Inc. for Kenai Skateboard Park Paving - 2003 for the Total Amount of $23,220 Which Includes the Basic Bid and Additive Alternate No. 1. ITEM E: COMMISSION/COMMITTEE REPORTS , 2. 3. 4. 5. 6. 7. Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee bo Kenai Convention & Visitors Bureau Board Alaska Municipal League Report Kenai Chamber of Commerce ITEM F: MINUTES o *Regular Meeting of jUne 18', 2003. ITEM G: CORRESPONDENCE ITEM H: OLD BUSINESS ITEM I: NEW BUSINESS ,, o Bills to be Paid, Bills to be Ratified . Purchase Orders Exceeding $2,500 , *Ordinance No. 2007-2003 -- Amending KMC 14.20.280(c) to Allow Notification of Public Hearings to be Sent by Regular Mail. , Approval-- Consent to Sublease -- Pingo Properties, Inc. and Geoffrey M. Graves, Individually, to Ashley Bulot, Lot 6A, BlOck 1, Gusty Subdivision No. 4. ITEM J: REPORT OF THE MAYOR ITEM K: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION- None Scheduled ITEM M: ADJOURNMENT Zm ~~~mz~> m Zm ~ 0 Z m z 0 Suggested by: Council CITY OF KENAI ORDINANCE NO. 2008-2003 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 1.80.010 TO ADJUST THE SALARIES OF THE MAYOR AND COUNCIL MEMBERS. WHEREAS, salaries for the Mayor and Council Members are set by KMC 1.80.010; and, WHEREAS, due to budget constraints, the Kenai City Council, at the budget work session of April 14, 2003, discussed and reached a consensus their salaries should be decreased by $100 per month due to budget constraints; and, WHEREAS, the decrease in these salaries is effective July 1, 2003. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 1.80.010 be amended as follows: 1.80.010 Setting. The Mayor shall receive a salary of [$1,000] $900 per month. The other members of the Council shall receive salaries of [$500] $400 per month. These salaries shall be in addition to the reimbursement for expenses as provided for by Charter. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of July, 2003. ATTEST: John J. Williams, Mayor Carol L. Freas, City Clerk Approved by Finance' ~ Introduced: July 2, 2003 Adopted: July 2, 2003 Effective: August 2, 2003 Suggested by: Administr CITY OF KENAI RESOLUTION NO. 2003-37 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING THE BID TO ALASKA ROADBUILDERS, INC. FOR KENAI SKATEBOARD PARK PAVING - 2003 FOR THE TOTAL AMOUNT OF $23,220 WHICH INCLUDES THE BASIC BID AND ADDITIVE ALTERNATE NO. 1. WHEREAS, the following bid was received on June 25, 2003: BIDDER Alaska Roadbuilders, Inc. Basic Bid Add. Altern. No. 1 (59'X 120') (31'x 120') $15,222 $7,998 WHEREAS, Alaska Roadbuflders, Inc.'s bid meets the bid specifications; and, WHEREAS, the recommendation from the City Administration is to award the bid to Alaska Roadbuilders, Inc.; and, WHEREAS, the Council of the City of Kenai has determined that Alaska Roadbuilders, Inc.'s bid is a 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 bid for Kenai Skateboard Park Paving - 2003 be awarded to Alaska Roadbuilders, Inc. for the total amount of $23,220. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of July 2003. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: KENAI AIRPORT COMMISSION JUNE 12, 2003 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. AGENDA ITEM 1: CALL TO ORDER AND ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MINUTES -- May 8, 2003 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS Discussion-- Future Meeting Schedule Discussion -- Airport Noise Discussion-- Air Fair Wrap-Up ITEM 6: NEW BUSINESS ITEM 7: REPORT Commission Chair Airport Manager City Council Liaison ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD ITEM 10: INFORMATION ITEMS de Kenai City Council Meeting Action Agendas for May 21 and June 4, 2003. Updated Membership List May, 2003 Kenai Municipal Airport Enplanement Report and Float Plane Basin Activity 6/2003 Alaska Business Monthly advertisement for Kenai Municipal Airport. ITEM 11: ADJOURNMENT KENAI AIRPORT COMMISSION JUNE 12, 2003 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIRMAN HENRY KNACKSTEDT, PRESIDING MINUTES ITEM 1' CALL TO ORDER AND ROLL CALL Chairman Knackstedt called the meeting to order at 7'00 p.m. Commissioners Present: Commissioners Absent: Others Present: Bielefeld, Knackstedt, Versaw, Watkins, Haralson Councilwoman Jackman, Holloway, Van Zee Airport Manager Cronkhite, Department Assistant Harris ITEM 2' AGENDA APPROVAL Airport Manager Cronkhite requested the addition of the following items: * 6-a. Discussion' Proposed additional Commission meetings * 11-a. Information item: Comprehensive Plan The amended agenda was approved without objection. ITEM 3: APPROVAL OF MINUTES -- May 8, 2003 MOTION: Commissioner Ha_raison MOVED to approve the minutes and Commissioner Watkins SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None ITEM 5: OLD BUSINESS Discussion -- Future Meeting Schedule The Commission discussed the upcoming meeting schedule which allows the Airport Commission to meet every other month. Cronkhite explained additional meetings could be requested to be approved by Council. The Commission, in general, expressed displeasure with the new schedule, but stated trying this for several months would give a better idea of its feasibility. Christine Schmidt (Kenai)' Schmidt addressed the Commission and stated she is very opposed to cutting the meetings as it results in a significant loss of public access. Schmidt also stated that since a commission secretary is no longer employed and minutes are to be done by Airport staff, funds can't be the issue. Schmidt stated she is strongly in favor of maintaining monthly meetings. Bob Molloy: Molloy echoed Schmidt's sentiments and stated he is strongly in favor of maintaining monthly meetings. Cronkhite explained, because the Clerk's Office department assistant was laid-off, the paperwork would be completed solely by the City Clerk, With the position being cut, the workload had to be cut. Haralson inquired if the airport could pay the wages for keeping a minutes secretary to attend the meetings. Haralson stated the Kenai Airport is a business and, as such, requires continuous attention to meetings including public discussions. Cronkhite answered, the airport is also facing economic problems. a-bo Discussion -- Airport Noise The Commission reviewed the memo from City Attorney Graves regarding noise abatement and regulations requiring a noise survey prior to noise control. Cronkhite stated '150 studies' are normally conducted in areas with heavier traffic and the Comprehensive Plan does have updated noise contours as well as an overlay zone. Since Kenai doesn't qualify for a 150 study, the cost would be approximately $250,000. Cronkhite also stated many noise complaints are actually low-flying aircraft complaints, which the FAA looks into. Versaw suggested providing signage in the Float Plane take-off area suggesting pilots mind the airspace over neighborhoods so as not to create excessive noise. Christine Schmidt (Kenai)' Schmidt requested the Airport Commission and City staff continue to pursue this issue and obtain information from other airports and areas with similar noise problems. Schmidt stated her home in Woodland has very loud aircraft passing overhead, and at times at very low altitudes. Schmidt stated she has been very proactive in trying to identify noise violators and has continuously tried to make complaints to the FAA and airport, but little to nothing has been done. $chmidt reiterated her desire for the city to obtain more information. Knackstedt stated aircraft are required by the tower to follow a prescribed flight pattern as they are in a controlled airspace. Often times, a pilot has no choice but to fly over neighborhoods. Bob Molloy (Kenai)' Molloy stated he thought the idea of providing signage requesting pilots to be mindful of the noise their aircraft produces is a good one. Additionally, he would simply like to request more information on noise abatements be obtained. AIRPORT COMMISSION MEETING JUNE 12, 2003 PAGE 2 The Commission concluded this issue will be dealt with by educating and reminding pilots to try to keep aircraft noise to a minimum. S-c. DiscUssion -- Air Fair Wrap-Up Cronkhite reported the Air Fair was a great success with 48 participants and 25-30 aircraft. As advertising funds were focused on the aviator community, the event is gaining recognition. The Commission and Cronkhite stated Mary Bondurant did an great job on organizing the event. The follow-up meeting is scheduled for July 17, 2003; Commissioners will be kept informed of any new developments and information. Discussion -- Request for Additional Meetings Cronkhite presented the Commission with information on a public hearing regarding the environmental assessment on July 8 at 6 p.m. MOTION: Commissioner Watkins MOVED to request Council approve the addition of the July 8 meeting and Commissioner Haralson SECONDED the motion. There were no objections. SO ORDERED. ITEM 6: NEW BUSINESS-- None ITEM 7: REPORT 7-a. Commission Chair-- No report 7-b. Airport Manager -- Cronkhite reported the following: · A new espresso bar has opened in the terminal. The espresso bar opens at 4:30 a.m. The ADA compliant handicap lift has been installed and is working well. City Council Liaison -- No report. ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS Bielefeld: Bielefeld questioned the status of the runway pavement project and was informed the repairs have been made. Some additional assessments are being done for any other recommended repairs. Haralson: Haralson inquired about follow-up regarding aircraft vandalism. Cronkhite informed the Commission of grant-funded security cameras which will be installed in the near future. AIRPORT COMMISSION MEETING JUNE 12, 2003 PAGE 3 ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD -- None ITEM 10' INFORMATION ITEMS 10-a. 10-b. 10-c. 10-d. Kenai City Council MeetinE Action AEendas for May 21 and June 4, 2003. Updated Membership List May, 2003 Kenai Municipal Airport Enplanement Report and Float Plane Basin Activity _. 6/2003 Alaska Business Monthly advertisement for Kenai Municipal Airport. ITEM 11' ADJOURNMENT The meeting adjourned at 8'55 p.m. Minutes prepared and transcribed by: Sharon M. Harris, Department Assistant AIRPORT COMMISSION MEETING JUNE 12, 2003 PAGE 4 PROPOSED Clt~N'GES TO SECURITY GATES AND PARIO~G LOTS TUESDAY JULY 8, 2003 KENAI CITY COUNCIl, CHAMBERS 210 FIDALGO STREET The City of Kenai, and the Kenai Airport Commission are holding an Environmental Assessment Public Infomation meeting on Tuesday July 8, 2003 at 6:00 P.M. Items proposed to be included in the Environmental ~ssessment document include portions of Phase I, II, and III of the current Airport Master Plan on file at Kenai City Hall. Introduction of Team Members Presentation on Proposed Projects and Environmental Assessment Public Comments Following the Public Information Meeting, the Airport Commission will hold a special meeting to discuss proposed modifications to gates, fencing, property lines, and public parking in the General Aviation area at Kenai Municipal Airport. This meeting will begin at 7:00 P.M. in Council Chambers, Tuesday July 8, 2003. Public input is respectfully requested fi'om concession interests, lessees, users, and the general public. If you have questions please contact' Jack LaShot, Project Manager City of Kenai, Alaska 210 Fidalgo Street Kenai, Alaska 99611 Phone: (907) 283-7535 ext. 236 Email' jlashot~ci, kenai.ak, us This location is accessible to persons having disabilities. Any persons having special needs, or requiring special aid are requested to contact the Project Manager. I~NAI MUNICIPAL AIRPORT PROPOSED PROJECTS 1. Acquisition of 40 to 80 acres of land for runway extension and protection to the north. (S1/2 of S1/2 of SW1/4 of Section 21, Township 6 North, Range 11 West, Seward Meridian, Alaska). If the full 80 acres is not acquired, then acquire at least an avigation easement. 2. Extension of Runway 1-19 and parallel Taxiway P by at least 600 feet to the north of runway (may need slightly more for localizer to be outside runway safety area at south end). Also extend parallel Taxiway P to south end of Runway 1-19. 3. Extension of Runway 1-19 drainage system to north. 4. Relocation and stabilization of new runway safety area to north of runway extension. 5. Construction of maintenance and emergency access road around north end of Airport property (about 9,000 linear feet). Road may be either along, or inside, property line to avoid high-value wetlands. 6. Extension and widening of water runway by 500 feet north. 7. Disposal of frost susceptible soils resulting from grade preparation of runway extension, runway safety area and water runway. 8. Construction of about 14,100 linear feet of fencing in Section 21 (3,500 linear feet), Section 28 (1,500 linear feet) and Section 29 (9,100 linear feet), all in Township 6 North, Range 11 West. Fencing to be either along or inside property line to avoid high-value wetlands. 9. Modifications/extension to MALSR system and access road to north. 10. Upgrade and/or extension of runway and taxiway lighting systems to north. 11. Relocation of Runway 1 approach threshold by at least 200 feet to north (may need slightly more for localizer to be outside runway safety area at south end). Runway restriping and modification of airfield signs as appropriate. 12. Construction of widened, paved blast protection shoulder areas outside of runway lighting along both sides of the runway. 13. Development of lease lot area alongside gravel runway. 14. Extension of Willow Street north to Marathon Road. 15. Expansion of apron north of Taxiway J. 16. Relocation of ILS glide slope facility, VASI-4s and REILs. _-.iooo o ~zzzz KENAI BEAUTIFICATION COMMITTEE JUNE 10, 2003 7:00 P.M. KENAI COUNCIL CHAMBERS AGENDA ITEM 1: CALL TO ORDER/h ROLL CALL ITEM 2: · AGENDA APPROVAL ITEM 3: APPROVAL OF MINUTES -- May 13, 2003 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS ITEM 6: NEW BUSINESS Discussion -- Flowerbed Assessment/Updates Discussion -- Cemetery Regulations ITEM 7: REPORTS a. ITEM 8: Committee Chair Parks & Recreation Director Kenai City Council Liaison OUESTIONS AND COMMENTS ITEM 9: INFORMATION Parks & Recreation Commission Meeting Minutes of May 1 and 15, 2003. City Council Action Agenda of May 7 and 21, 2003. Updated Membership List Approved Kenai City Council Policy for Commission, Committee, Board and Council on Aging Meetings and Work Sessions. ITEM 10: ADJOURNMENT KENAI BEAUTIFICATION COMMITTEE JUNE 10~ 2003 7:00 P.M. KENAI COUNCIL CHAMBERS CHAIRPERSON MARILYN DIMMICK~ PRESIDING MINUTES ITEM 1: CALL TO ORDER/h ROLL CALL Chairperson Dimmick called the meeting to order at 7'03 p.m. and the roll was confirmed as follows: Members Present: Members Absent: Others Present: Rogers, Brown, Seymour, Dimmick Nelson Director Frates, Department Assistant Harris ITEM 2: AGENDA APPROVAL Member Brown requested the addition of 6-c as Old Banners. The revised agenda was approved without objection. ITEM 3: APPROVAL OF MINUTES -- May 13, 2003 The following corrections were requested: * 5-a: "hamburgers and beverages provided by the Kenai Firefighters Association". · 7-a: "Susan Hatch attended the meeting..." ITEM 4: PERSONS SCHEDULED TO BE HEARD-- None ITEM 5: OLD BUSINESS Dimmick requested the Commission discuss the Planting Day activities and changes in the eating schedule for next year. Dimmick stated she felt the lunchtime 'shifts' began too early, thus taking away planting time. MOTION: Member Brown MOVED to request a change in the lunchtime schedule during the planting days in upcoming years to be anytime after 1 p.m. Additionally, Beautification planting days should be a two-day event. Member Rogers SECONDED the motion. There were no objections. SO ORDERED. ITEM 6: NEW BUSINESS Discussion -- Flowerbed Assessment/Updates The Committee commented on the following: · Additional flowers are needed in approximately eight circle planters as the vegetation appears too sparse. · Friday (June 13, 2003) several members of the Committee will be weeding and planting at Leif Hansen Memorial. · The summer weeding schedule is Tuesdays at 4'00 p.m. and Thursdays at 6:00 p.m. Discussion -- Cemetery Regulations Frates informed the Committee that due to recent vandalism of the cemetery, the Kenai Police Department would be patrolling the area on a more frequent basis. The KPD might also take responsibility of opening and closing the vehicular traffic gates each day. Additionally, signage stating the cemetery is under electronic surveillance would be posted in the near future. Frates stated extra pruning and tree removal would improve overall visibility and could reduce the likelihood of vandalism. Regarding Appendix 2-c of the KMC, Frates stated he thinks an official 'cemetery clean- up day' should be added to ensure plot maintenance and the timely removal of old trinkets and other items. 6-c. Discussion -- Old Banners Member Brown reminded Frates and the Commission of a prior arrangement regarding banners which stated, when out of use, the banners were to be given back to the Art Council to be auctioned off for fundraising. Brown was informed the old banners would not be used any longer and are being stored at the Kenai Recreation Center. Brown stated she would make arrangements to pick up the banners at her earliest convenience. ITEM 7: REPORTS 7-a. Committee Chair -- Dimmick reported the following: · She would like to see the Beautification Committee have a regularly scheduled meeting in the month of September. MOTION: Member Seymour MOVED to request to Council a regularly scheduled meeting for the Beautification Committee be added to for the month of September. Member Rogers SECONDED the motion. There were no objections. $O ORDERED. Frates stated he would make this request to Council. · Dimmick suggested having a "dandelion party" to pick and remove the unsightly and prolific dandelions which are blooming around the area. She stated, at BEAUTIFICATION COMMITTEE MEETING JUNE 10, 2003 PAGE 2 the minimum, to provide more public education on how to rid the area of dandelions and other noxious weeds. 7-b. Parks/k Recreation Director-- No report. 7-c. Kenai City Council Liaison -- No report. ITEM 8: OUESTIONS AND COMMENTS -- None ITEM 9' INFORMATION Parks/k Recreation Commission MeetinE Minutes of May I and 15, 2003. City Council Action AEenda of May 7 and 21, 2003. Updated Membership List Approved Kenai City Council Policy for Commission, Committee, Board and Council on Aging Meetings and Work Sessions. ITEM 10: ADJOURNMENT The meeting adjourned at 8:05 p.m. Minutes prepared and transcribed by: Sharon M. Harris, Department Assistant BEAUTIFICATION COMMITTEE MEETING JUNE 10, 2003 PAGE 3 AGENDA KENAI CITY COUNCIL- REGULAR MEETING JUNE 18, 2003 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www, ci.kenai, ak.u s 5:00 p.m. WORK SESSION: Kenai City Council. Kenai Convention & Visitor's Bureau Board and ITEM 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. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM C: REPORTS OF KPB ASSEMBLY~ LEGISLATORS AND COUNCIL~_ ITEM D: PUBLIC HEARINGS . Resolution No. 2003-34 -- Awarding Janitorial Contracts for the City Administration Building and the Kenai Visitors and Cultural Center to Commercial Janitorial Services for the Period July 1, 2003 Through June 30, 2004. , Resolution No. 2003-35 -- A Resolution of the Council of the City of Kenai, Alaska Relating to the USA Patriot Act, the Bill of Rights, the Constitution of the State of Alaska, and the Civil Liberties, Peace, and Security of the Citizens of Our Count~. . Resolution No. 2003-36 -- Awarding a Janitorial Contract for the Kenai Municipal Airport to Parnell Operation & Maintenance for the Period of July 1, 2003 to June 30, 2004. ITEM E: COMMISSION/COMMITTEE REPORTS , Council on Aging Airport Commission Harbor Commission . 5. 6. 7. Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention & Visitors Bureau Board c. Alaska Municipal League Report d. Kenai Chamber of Commerce ITEM F: MINUT~ . *Regular Meeting of June 4, 2003. ITEM G: CORRESPONDENCE ITEM H: OLD BUSINESS , Discussion-- Dust Control Comparison ITEM I: NEW BUSINESS . Bills to be Paid, Bills to be Ratified e Purchase Orders Exceeding $2,500 . Discussion -- Schedule City Clerk, Attorney and Manager Evaluations ITEM J: REPORT OF THE MAYOR . . . Memo from AML regarding Revenue Sharing and Safe Communities programs and FY04 Mumcipal Capital Matching Grants program. Memo from Govemor Murkowski regarding FY04 Operating and Capital budgets. Memo from Dena'ina Health Clinic regarding their support of Ordinance No. 1998-2003 regulating smoking in eating establishments. ITEM K: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION-- None Scheduled ITEM M: ADJOURNMENT KENAI CITY COUNCIL- REGULAR MEETING JUNE 18, 2003 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www, ci.kenai.ak.us MAYOR JOHN J. WILLIAMS, PRESIDING MINUTES ITEM A: CALL TO ORDER Mayor John Williams called the meeting to order at 7:45 p.m. A-1. Pledge of Allegiance- Mayor Williams led the Pledge of Allegiance. A-2. Roll Call Members Present: Bookey, Swarner, Moore, Porter, Jackman, Williams, Osborne A-3. Agenda Approval MOTION: Councilman Bookey MOVED to approve the agenda and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. A-4. Consent Agenda MOTION: Councilman Bookey MOVED to approve the consent agenda and Councilman Moore SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) Mayor Williams invited anyone from the audience who had something to talk about that was not on the agenda to speak. B-I. Gary Cadd, P. O. Box 1995, Kenai Cadd told Council that Kenai had a "gold mine" in the Kenai Spur Highway through town. He was fired, he said, of the speeders and the City should crack down on them. Mayor Williams stated the City recently doubled the cost of speeding tickets per mile. ITEM C: REPORTS OF KPB ASSEMBLY~ LEGISLATORS AND COUNCIL_~ Mayor Williams reported Betty Glick was in another meeting and would be arriving late so her report would be given at the end of the meeting. KENAI CITY COUNCIL MEETING JUNE 18, 2003 PAGE 2 ITEM D' PUBLIC HEARINGS D-1. Resolution No. 2003-34 -- Awarding Janitorial Contracts for the City Administration Building and the Kenai Visitors and Cultural Center to Commercial Janitorial Services for the Period July 1, 2003 Through June 30, 2004. MOTION: Councilwoman Porter MOVED to adopt Resolution 2003-34 and Councilman Moore SECONDED the motion. There were no public comments. Moore asked the City Manager to comment on her memorandum (It-1) regarding janitorial services. City Manager Linda Snow explained administration had been looking into the cost benefits of hiring janitorial employees versus contracting for services. The research was not complete, but she would report to council with the results. VOTE: There were no objections to UNANIMOUS CONSENT. SO ORDERED. D-2. Resolution No. 2003-35 -- A Resolution of the Council of the City of Kenai, Alaska Relating to the USA Patriot Act, the Bill of Rights, the Constitution of the State of Alaska, and the Civil Liberties, Peace, and Security of the Citizens of Our Country. MOTION: Councilman Bookey MOVED to adopt Resolution 2003-35 and Councilwoman Porter SECONDED the motion. Gary Cadd, P. O. Box 1995, Kenai, spoke from the audience. He stated he would like to see the resolution "tightened up" and to have the Chief of Police and the Mayor be the "final authority" if questions came up about what was legal under the Patriot Act.. Williams explained those kind of questions fall to the City Attorney. VOTE: Jackman Swarner Yes Williams Yes Booke¥ Porter Yes Yes Moore Yes Yes Osborne Yes MOTION PASSED UNANIMOUSLY. KENAI CITY COUNCIL MEETING JUNE 18, 2003 PAGE 3 D-3. Resolution No. 2003-36 -- Awarding a Janitorial Contract for the Kenai Municipal Airport to Parnell Operation & Maintenance for the Period of July 1, 2003 to June 30, 2004. MOTION: Councilwoman Porter MOVED for approval of Resolution 2003-36 and Councilman Bookey SECONDED the motion. There were no public comments. Porter asked why so few bids have been received lately. Four prospective bidders attended the pre-bid conference at the Airport, Cronkhite replied; however, two of them dropped out. She also reported snow removal was taken off this bid because many current contractors have'said that was why the bids were doubling every year on the janitorial contract. Snow removal would be a separate bid later, she said. Council asked Fred Parnell to speak. Parnell introduced himself. Porter asked him why he bid on the airport building and not others. Parnell told Council he was familiar with the building and, some years ago, had the contract for a while. He said he was more interested in the airport building than the others. No further discussion. VOTE: There were no objections to UNANIMOUS CONSENT. SO ORDERED. ITEM E: COMMISSION/COMMITTEE REPORTS Council on Aging-- Councilwoman Swamer reported the following: Minutes of last meeting were in the packet. There would be a pie booth at the 4th of duly celebration. E-2. Airport Commission -- Councilwoman Jackman reported the following: · The Commission requested two special meetings to be held on Tuesday, July 8' one at 6:00 and the other at 7'00 p.m. One would be for discussion of the environmental assessment of Phase I, II and III of the current Master Plan. The second meeting would be about security at the airport: fencing, gates, public parking. Cronkhite explained the two meetings had been set up by the consultant. Bookey asked why there were two separate meetings, instead of one meeting covering two topics. Attorney Graves answered it probably had to do with the public process required for the environmental assessment and the consultant's desire to separate the KENAI CITY COUNCIL MEETING JUNE 18, 2003 PAGE 4 two topics to meet those requirements. that way. Graves stated it didn't hurt anything to do it Cronkhite reported a large aerial photo valued at about $600 had been stolen from the wall of the terminal. She said she was working with the police department and Crime Stoppers to recover it. E-3. Harbor Commission -- Councilwoman Porter reported there was no quorum for the June 9 meeting. E-4. Librar~ Commission-- Councilman Moore reported the following: · Minutes from the last meeting were included in the packet. Goals and objectives were revised. · No meeting will be held in July and the next meeting was scheduled meeting would be held the first Tuesday in August. The book sale went well. E-5. following: Parks/h Recreation Commission -- Councilwoman Porter reported the Minutes from the June 5 meeting were included in the packet. The Commission requested a change in hours at the cemetery. The Commission discussed increasing cost of plots. Williams explained Administration is looking at the cemetery now in terms of land boundaries, ownerships, fencing and security issues. He said he believed the issue of pricing the plots should be decided after the other issues have been resolved. · Commission was interested in setting up a separate "cemetery fund" so donations could be made and used for the cemetery. The Commission was quite interested in the idea of a cemetery fund, Porter said, so the public could donate directly to that fund. The money would be used for maintenance and improvement of the cemetery. Graves responded the City has authority to dedicate funds. Council directed Administration to look into setting up the fund. Williams presented the idea of asking the citizens to approve a bond for the cemetery, if a large amount of money was needed to update it. Payment of the bond would come from sales of plots, he said. With interest rates as low as they are now, the City could borrow the money almost for flee, Williams said. Porter pointed out the application of Teresa Wemer-Quade for the Commission in the packet. Williams recommended her for the position and asked if there were any objections. There were no objections. KENAI CITY COUNCIL MEETING JUNE 18, 2003 PAGE 5 Next meeting is on July 3, 2003. E-6. Planning/k Zoning Commission -- Councilman Osborne reported there was no quorum at the June 1 1 meeting. E-7. E-7a. following: Miscellaneous Commissions and Committees Beautification Committee -- Councilwoman Swarner reported the Minutes of the June 10 meeting were in the packet. Requested Council to hold off on appointing a new member to the Committee, as it appeared there might be another opening coming up. After some discussion, Council accepted the application of Kathy Moore for the current opening and directed that Susan Hatch be appointed as soon as the next seat was vacated. There were no objections. · The Committee requested a special meeting in September as a "wrap-up" of the activities during the summer. No objection from Council. Kenai Convention/h Visitors Bureau Board-- No report. E-7c. Alaska Municipal League Report -- Williams reported there would be a Mayors' meeting in July to "determine and define the direction" of a platform for the next legislative session. Williams said he received a report from one of the representatives that the $350,000 once appropriated for a boat ramp at Cunningham Park had made it through the re- appropriation and Komelis was prepared to use it in a manner to improve the boat ramp and the ingress and egress at the park. Williams asked City Manager Snow if the City could obtain fight-of-way and build a new exit from the boat yard area. Komelis answered the City was told at one time it would not be allowed to put an exit across the properties now owned by the Nature Conservancy. Since then, there has been discussion about possibly going through Dragnet properties where there is an existing road. Another possibility is to put it on City property. Council directed administration to begin investigating as soon as possible the "best and most opportune" way to acquire/develop a second exit from that area. Bookey agreed and asked if there was a time flame for spending the money and if the money was to be spent for a boat ramp only. Williams remembered the request written for the money outlined both the exit and the boat ramp. KENAI CITY COUNCIL MEETING JUNE 18, 2003 PAGE 6 E-7d. Kenai Chamber of Commerce -- Williams reported the Commissioner of Social Health Services spoke at the day's Chamber luncheon. Colleen Canady, Interim Executive Director, Kenai Ch~ber of Commerce reported the following: · Two new members joined the Chamber during the week. · Plans for the 4th of July celebration were going well. After the parade, an all-day celebration would be held on the Green Strip with bands, games, and vendors; all activities will be free. · She volunteered to be on a task force for bringing business into Kenai. · She also thanked Becky Cronkhite for helping the Chamber move their kiosk at the Airport. ITEM F: MINUTES F-Xo Agenda. Minutes from June 4, 2003 Council Meeting -- Approved by Consent ITEM G: CORRF_~PONDENCE-- None ITEM H: OLD BUSINESS i-Xo Discussion- Dust Control Comparison Porter asked the audience ff anyone had comments on the issue of dust control. There were no public comments. It was noted, council members had received no comments from their constituents. Williams pointed out there were gravel roads around the area that seem to do frae without dust control. The dry season was nearly half over, Bookey noted. Jackman stated some of the issues brought before Council earlier were health issues, and she felt some dust control was in order. No further comments from Council; Administration was directed to do no dust control. ITEM I: NEW BUSINESS I-1o Bills to be Paid, Bills to be Ratified MOTION: Councilwoman Porter MOVED to pay the bills and Councilman Moore SECONDED the motion. VOTE: KENAI CITY COUNCIL MEETING JUNE 18, 2003 PAGE 7 There were no objections. SO ORDERED. I-2o Purchase Orders Exceeding $2,500 MOTION: Councilman Bookey MOVED to pay the purchase orders over $2,500 and Councilwoman Swarner SECONDED the motion. Porter asked Bob Frates if any consideration was given to Sears or Ron's Rental when pricing the tiding lawn mower. Frates responded they had always used John Deere, commercial-grade mowers, and have had good luck with them. Professional physician consulting fees were discussed. Fire Chief Walden reported two physicians are needed to cover times when one or the other is not available and the rate for these physicians was less than the city used to pay for one. Williams asked when the ambulance fees were last evaluated and Walden answered a survey was done in the state not long ago and the City of Kenai was on the "high- medium end." Finance Director Semmens reported, since the Finance Department had taken over all collection of ambulance bills, collections were up 50% from prior years. VOTE: There were no objections. SO ORDERED. I-4(sic) Discussion -- Schedule City Clerk, Attorney and Manager Evaluation Council decided to start the evaluations with the City Manager at the July 16 meeting with the others following at the August 6 meeting. ITEM J- ,.REPORT OF THE MAYOR Mayor Williams reported the following: · Revenue sharing was cut by the Governor and the McCollum paving project would be cancelled because of the cut. Komehs said the information gathered for the project could still be used in the future. Porter requested letters be sent to the property owners in the area to let them know the situation. Bookey asked about bonding for the paving and Graves said he would check with bond counsel and report at the next meeting. · Operating and capital budgets were cut by the Governor. KENAI CITY COUNCIL MEETING JUNE 18, 2003 PAGE 8 · Referring to a letter received, the Dena'ina Health Clinic supported Kenai's smoking ordinance. ITEM K: ADMINISTRATION REPORTS K-Xo painting. City Manager-- City Manager Snow reported the following: The Teen Center would be closed July 1 through July 10 for repairs and Public Works Administration is now working 4-10's. A buffed fuel tank was found near the new skateboard park. The contents were being tested and appropriate steps would be taken. · She would be attending a Museum Association meeting on June 19 about a facility to be created at Kenai Peninsula College for preservation, research and storage of cultural and natural history artifacts. A purchase order for painting a storage building at the wastewater treatment plant and a pump house has been submitted. Snow said she intended to approve the purchase order, but she requested some feedback from Council because of the budget cuts. Council agreed if the painting was for maintenance and not for beautification, it should be done. Another purchase order was for OSHA .training for certification and Council agreed the training was necessary. · The department reports were in the packet. K-2. City Attorney -- Attorney Graves reported the following: · A memo would be in the next packet about municipal regulation of airport noise. · Thanked Sheryl Padilla for her extra work. K-3. City Clerk -- Ho report. Council requested the revenue and expenditure reports not to be forwarded to them anymore. ITEM L: DISCUSSION L-Xo Citizens -- No comments. L-2. Council Swarner-- Swarner noted the following: · She attended Prince William Sound Regional Citizens Advisory Council reception. KENAI CITY COUNCIL MEETING JUNE 18, 2003 PAGE 9 · She was contacted about the wetlands off Cannery Road, near Inlet Salmon. There were 4-wheeler tracks and signs, were needed to keep vehicles off the wetlands. Williams said the signs cost too much.' ~--. · Asked why the draft comprehensive plan was mailed to Council instead of being handed out at the Council meeting. No one knew. · Asked Frates if the City was revolved in planning of the softball tournaments or hockey tournament and Frates answered no. Swarner said someone had suggested to her the City plan more of those events to help with revenue. She would be meeting with Senator Stevens or his staff on June 25 in Washington D.C. Moore -- Councilman Moore noted the following: · Encouraged KVCB to talk to their members about retail sales at the Visitors Center. · Thanked Sheryl Padilla for filling in for Clerk Freas. Porter -- Councilwoman Porter thanked Administration for cutting brush at the multipurpose facility. Osborne -- Councilman Osborne noted the following: · When the City stopped allowing tent camping on the green strip, the softball tournaments decreased. · Glad to see Home Depot coming to Kenai, but there was still no place to buy bedding or clothing. Williams reported he wOuld be talking to Wal-Mart again. · Attended the Economic Development District board meeting in Homer on May 22 with the Mayor. They took a tour through the Islands and Oceans Visitor Center which w/Il open in the fall. Osborne encouraged people to visit then. Jackman -- Councilwoman Jackman noted the following: · There was a new store in Kenai next to DScor Furniture that sells women's undergarments. EXECUTIVE SESSION-- None Scheduled ITEM M: ADJOURNMENT The meeting adjourned at 9:42 p.m. Minutes prepared and submitted by' Sheryl A. Padilla, Acting City Clerk Z Z 0 o o 0 ~ e~ ~ Z LU 0 0 0 0 Z .- i=., Z Z z z :3 0 (:3 ~r) n,' UJ ~'- ~ (.) [3. 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W cr~ ~ z --J w -r 0 < z o Z 0 Q.- LLI LLI < 0 (/) Q-. z rO ~ < uJ uJ Z I-- C.~ UJ ._j -- 0 w Z w Z ~ Z z 0 -- w 0 w ~ Z w < Z 0 u_ ~ u.. ~ ~ ~ Z ~ ~_ ~ LLI Z LLI rY Z >' Z ,..J "J Z I--- ~0 W uJ LLI '~ ~ UJ 0 -- Z "~ 'i- ~ ~D w C~ w < 0 > w 0 ..J ,,< ..,J .,::( Q::: rO < Ct::: 'J I-- < Z m Z CD (Y) ~ W n,' -- Q_ :D '~ '~ ~ Z~ uJ uJ Z uJ Z :~ 0 :~ Ct::: 00 >" ~: _ ~ 0 ',::C Z ,< Q.- ~ Q- ~ (-) Q::: Z w u_ u_ u_ _J rO r../) rO u_ w u_ Q (..9 n,' 0 n,,' w ~ LU I-- I-- Z ~ o~ I-- Z LIJ -- w LU 0 Q::: r./) Z 0 n,' ~ Z 0 ~ 0 n,,' I.- < 0 F---. ..j Z C.,',9 '< ~ 0 o ~ oc > ~ o < 0 <( I-- Z 0 Z F--- :~ w -- 0 0 ~: -- ~- w ~ 0 ~ z ~ >' × 0 n,' ~ 0 rO 0 ~ o ~ ~ LU 0 ~ Z W n- -- -- Z ~ Z r~ Z 0 CD ~ n 0 w 0 F- w w 0 k- 0 n,' .j 0 Suggested by: Administratio. CITY OF KENAI ORDINANCE NO. 2007-2003 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 14.20.280(c) TO ALLOW NOTIFICATION OF PUBLIC HEARINGS TO BE SENT BY REGULAR MAIL. WHEREAS, certified mailings are nOt required by state law; and, WHEREAS, other cities on the Kenai Peninsula no longer use certified mailings for public hearing notifications; and, WHEREAS, certified mailings require extra expense; and, WHEREAS, planning Department personnel can certify that they mailed the notices as required; and,, WHEREAS, recipients of certified mailings are often inconvenienced by having to go to the post office to pick up the mailings and sign for them; and, WHEREAS, sending public hearing notices via regular U.S. mail will reduce costs to the taxpayers and make it easier for affected persons to pick up their notices. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that KMC 14.20.280(c) if hereby amended to read: 14.20.280 Public hearings and notifications. (c) Property Owner Notification' Notification shall be mailed [SENT BY CERTIFIED MAIL] to real property owners on record on the borough assessor's records within a three hundred-foot {300') periphery of the parcel affected by the proposed action. This notice shall be mailed not less than ten (10) days prior to the date of hearing. When a public hearing is to be held about a proposed zoning ordinance amendment involving a change in the text or major district boundary changes, no notification of neighboring property owners shall be required, but notices shall be displayed in at least three {3) public places. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of July, 2003. ATTEST: JOHN J. WILLIAMS, MAYOR Carol L. Freas, City Clerk Introduced: Adopted: Effective: July 2, 2003 July 16, 2003 August 16, 2003 CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ 199-2 Memorandum Date: To' From.' RE June 24, 2003 Linda L. Snow, City Manager Kim Howard, Assistant to the City Manager Consent to Sublease- Pingo Properties, Inc. and Geoffrey M. Graves, Individually, to Ashley Bulot- Lot 6A, Block 1, Gusty Sub. No. 4 Pingo Properties, Inc. and Geoffrey M. Graves currently lease the above referenced property. A request is being made for approval of the attached sublease. The sublease is to Ashley Bulot who-intends to open a child development center. Buster's Restaurant was formerly located in the building. The lease states the lessee may assign the lease, in whole or in part, with the City's written consent, which will not be unreasonably denied. The parties are in compliance in payments to the City and taxes to the Borough. If Council approves the sublease, a Consent to Sublease can be prepared for your signature. Attachments Cc' Geoffrey and Theresa Graves /kh PINGO PROPERTIES INC. P.O. BOX 2538 SOLDOTNA, AK 99669 RECEIVED JUN ..... CITY oF KENAI ADMINISTRATION 6/22/03 To Whom it may concern, Pingo Properties Inc. request approval of a sublease between Pingo Properties Inc. and Ashley Bulot for building B (back building) Lot 6A Block 1 Gusty Subdivision Kenai Alaska. She intends to open a Child Development Center. Copy of lease enclosed. Tl~..e~sa Graves -President Pingo Properties Inc LEASE AGREEMENT thc LESSOR, whose name and bom agree to a LE~E of the ~ more particu~rty clesc~bed as: Lo'r 6,a Iq Ioc. r.. ' ~'~ ~~'~ ~bc~,~,~;, o .,o too c~,~ ,~ a~ to ~ follo~g t~ w~ch ~ ~ ~ ~d ~y u~~ ~ foUo~: 1) DURATION. Thc term of this agreement shall last"j-'~c~]:?4 ] __~,~ _ -~-~r' . ,,~ ~------ [ ]momhe, or _[ ] years, ~ that either party may t'~cnx~mte the agreement upon suhmntial breach of this a~t and prior written notice to the other at the above addresses. The notice shall contain a clause granting the other party ten (10) days to cure the defect to avoid the termmaUon. 2)AMOUNT. The monthly lease amount shall be ~ Hc~_d ,,d,,J'; Ik~doUars(S'7~ ~ which must be tendered on the first day of each month, in advance. A late~largc of ~D, '~ t ~.~,.. dollars ($ ZI_~ ~ _), will be charged if the payment does not arrive by the fifth day of the mo~th. If the lease payment does not arrive t:~ the tenth day of the monttL a late charge of ~ ~), will be ¢~ and in addition, thc ~£ may give noUce of breach as above stated and Lessee agrees to vacate. 3) SECURITY DEPOSIT. Thc panics agr~ that a secumy and cl~xing deposit of J~./~ ~ _dollars (S_~-~ ) will be given by the Lessee to the Lessor which may be used to ensure that the promises will be lett in good order, normal wear excepted, which said deposit may not be used as a portion of the last month*s rem. Thc remaining portion of this deposit will be retume~ to thc Lessee within_ -~.,/A --[ ]daysalt~rvacalingthcpremises. 4) UTILITIES. The Lessee shall pay the following items that are checked:~v ] water, [~ sewer,~ ] r~-use, ~/ ] electricity, ~] heating fuel,~ ) cable television, and ~/1 telephone. Thc Lcssor shall pay those not checked. ~) GENERAL CONDITIONS. Iai The total number of occupants shall be ~1 / A [ ] and, cxcelx for bir~, am/i,,cr~ase slnll be by coment of the Lessor, lb] TI~ premises ma~ not be sublc~ withom wnuen consent ofthe Lessor, [c] Ail ofthe premises will be kept clean, safe, andin good repair by the Le.ssce, normal wear and tear exc~ provided that thc Lessee will notify the Lessor m~y of any other type of repair needed to keep the premises safe and decent; Id] Lcssor is responsible for the maintenance and repair of any breakage to structure or cclmpment belonging to the prenuscs so long as such breakage was not duc to negligem or intentional damage to the premises by the Lessee, in which case, the ~ shall bear such rcspon~bili~; [c] No alterations or remodel may be done without written approval of lhe Lessor, and any such improvement becomes a part of the prenuscs; [fi All Alaskan law not s~cally Precmpted herein is made a part of this agreement to the extent that such law would have a reasonable effect upon the agreement. WI'IER.~ORE, the panics bind themselves hereto by their signatures below and agree to all terms herein above written. 1670 uatc LESSEE c Carol Freas From: Office of the Governor [office_of_the_governor@gov.state.ak. us] Sent: Wednesday, June 11,2003 3:57 PM To' govsupportersall@gov.state.ak.us Subject' State Aid to Municipalities must end, Governor tells Mayors Greetings - Gov. Frank Murkowski Monday advised community leaders across the state that current budget constraints make it necessary to end the practice of sharing millions of dollars in state revenues every year with municipal governments. In its place he said he intended to distribute to local governments a portion of a federal grant the state is receiving. In a letter mailed June 9 to the mayors of 82 cities, towns and villages, the Governor announced that he would veto $37 million from the budget earmarked for municipalities in the form of revenue sharing and safe cities capital grants, and would not request funds for the program in next year's budget. To ease the impact of this loss of revenue and provide a financial bridge so that local communities can adjust their budgets, the Governor told the mayors he would use the revenue sharing formula to distribute $15 million in one-time federal funds. While the smallest communities have received a minimum of $25,000 per year under the formula, this special distribution will provide $40,000 to these communities. Under this plan, Alaska's largest communities will also receive funding from the state. Anchorage will receive $3.9 million, Fairbanks and the Fairbanks North Star Borough will receive $1.27 million, Kenai and the Kenai Peninsula Borough will receive $730,000, the Mantanuska-Susitna Borough will receive $640,985, and Juneau will receive $563,163. The state is continuing to provide other resources to local communities for priority services, including fully funding the foundation formula that provides state funding for local schools. On Friday, Gov. Murkowski announced he would provide an additional $32 million for K-12 education, one of the state's most important responsibilities. The Governor also noted the state has issued $170 million in general obligation bonds to build new schools, with $155.6 million of that going to rural communities. "Based on the availability of these funds to communities and the current status of the state's finances, Revenue Sharing and Municipal Capital Matching Grant programs can no longer be justified," the Governor wrote. Local communities seeing to continue services that are a local priority have a variety of tools to accomplish that, including the local authority to levy taxes, increase millage rates, or raise revenue caps, said the Governor's chief of staff, Jim Clark, at a press conference in Juneau. "We feel municipalities are in much the same position as the state and, like we are doing at the state level, are also going to be needing to tighten their belt," Clark said. "Obviously the municipalities have taxing power, and can fund their main priorities using that taxing power." 6/25/2003 Page 2 of 2 In making the announcement on behalf of the Governor, Clark said the Governor was seeking to close out the program in a way that was sensitive to the needs of local communities. By prioritizing state resources to meet the need for essential services, the Governor is fulfilling his commitment to reduce the rate at which state government is depleting the state savings account, the Constitutional Budget Reserve, to no more than $400 million per year. The reduction should provide the state up to five years, during which time the Governor's efforts to encourage resource development are expected to generate new revenue. The Governor is expected to sign the FY04 budget Thursday. More information is available on the governor's Office of Management and Budget web page, at http://w~v~v.gov.state.ak.us/omb/akomb.htm 6/25/2003 CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 1992 Memorandum Date: To.' From: June 25, 2003 Linda L. Snow, City Manager /,L/ Kim Howard, Assistant to the City Manager Borough Tax Foreclosure Sale Attached is a list and maps of 30 foreclosed parcels that can be included in the Borough Tax Foreclosure Outcry Auction scheduled for this fall. The Borough needs the list by mid-July in order for the parcels to be included in the sale. These properties were foreclosed on (either by tax foreclosure, city special assessment, or both) tbr more than 10 years and have been declared by ordinance not needed for a public purpose and can be sold. Some of the parcels have been listed in prior sales. Regarding the lot in Inlet Woods Subdivision, we were never able to contact the former owner and can't offer a xvarranty deed like we can for the other lots we have for sale in the subdivision. The Public Works Department is in the process of cleaning up debris that is on some of the parcels. Attachments /kh 0 x "0 0 (J c- o 0 0 o o o ~ ~ c- o CD 0 0 0 0 LLI MAP A- MOMMSEN'S FORECLOSURE LOT'S POR. TR. 4 O39 1 03910112 03910110 0391011 03910109 VE  39 4 37 6 35 ~ 2 ~_3~ 9-,~_ ~OR!bA AVE ,.SPUR DR RED OU BT AVE /' TR. B Mommsen $1D MAP B- IN'LET WOODS FORECLOSURE LOT' FUTURE PHASE BACKWOOD AVE WINDHAVEN ESTATES PHASE 1 FUTURE PHASE 04101 WINDHAVEN ESTATES PHASE 2 REDOUBT AVE TR. 1 TR. 2 RUTHE-~ORD NA TR. 3 PARSON'S HMSTD. NO. 2 TR. 2 WOO[~$IDE AVE TR. 16A KILLENIBS1FATES ADDITION NO. 1 TR. 18 TR. 31 TR. 32 TR. 33 TR. 34 LU Z LU 4 6A EL/~ Y LAP, CH ~ ~,~1 InletWoods SID MAP C- RUSSEL FORECLOSURE LOTS' 0430302 26 5F ~ 1 BRCIWN ~b2 66 L S M ARS NA NTARY SCHOOL 67 H]:RD AVE ~ 6 1 -~ 5 D]2 - _ Ii 4 - 3 1 6 - L_ 2 ~5 3 .<'"' 4 - F FOURTH AVE ~RSFN PE 'ER] 4 - 3 -- 2 1 2 68 SEAMAN D 11 N° ~NE '~' i '~, C- 1 :E HAYES AVE 4,6 J 1 ~, ORTH 1/2 -4~1 i ~OV't. LOT 31 ONE~, 7 ~1 ( ~o.~?o,,~,ooo3 2 i 1 FOREST TER ~E 3 THIRD AVE '..~CAS TILL~ 3 ~_ ~.~ ~~~p 4A Russel S/D FORECLOSURE ON GOVT, LOT 12,8 T ;E STAR Of THE NORTH SUBD. 1 111 72 IKAIKA~SUBD. ~ '1 KN .-7 2 112 FitlY5 T AVE GOV'T. LOT 162 73 74 92 91 113 114 132 GOV'T. LOT 131 GOV'T. LOT 43 GOVT. LOT 60 gov"r. LOT 66 Gov"r. LOT 83 GOV'T. LOT 90 GOV'T. LOT ~ 42 GOVq'. LOT ~ 41 GOV'T. LOT 61'~ GOVT. LOT GOVT. LOT GOV"F. LOT 63GOV'T. LOT 6; 65 64 GOV'T. LOT 84 GOV"T. LOT 85 GOVT. LOT GOVT. LOT Gov"r. LOT 87 GO~"T. LOT 86 89 88 GOV"T. LOT 105 GOV'T. LOT 106 GOV"r. LOT 107 50B2 ;6 IO THIRD AVE bO~£ NDA 8O 85 90 89 8 · 1~5 -| 04317003 - SECOND 126 125 Govt. Lot 128 MAP E-REDOUBT TERRACE FORECLOSURE LOT 45 F~ ~'HO~ bP, 29 DO 1 ADD NO. 5 11A 18 16 16 O 1501 9 5) 10o~ 118 13 Gl G( GC Redoubt Terrace SlD MAP F- SPRUCEWOOD GLEN FORECLOSURE LOTS 3B A3 B2 B1A ~/ c~S~: U W 3A %.,,%O%O%..,~ C-lA-1 L TR. D-2 ' TR. C TR. D-1 ~ F1A GLEN .7 04705205 TR. D-3 ..../..~~ 0470521 .~ TR. D SPRUCEWOOD GLEN TR. E 11 12 1 1E 23 ~ Sprucewood Glen SlD CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ 1992 MEMORANDUM TO' FROMC~~ DATE: e Mayor Williams and the Kenai City Council Cary R. Graves, City Attorney June 25, 2003 Cemetery Donations During the last Council meeting, I was requested to research whether and how the City could account for/segregate donations to be used for the cemetery. The City could have a dedicated fund for contributions similar to the Daubenspeck fund. As you know, that is a fund dedicated to recreation that is funded by a contribution from the Daubenspeck family. I spoke with Larry Semmens, Finance Director, and he suggested the best way to do it was to create a revenue account for "cemetery donations" in the general fund. He could set the account up administratively without an ordinance. He did request that Council authorize him to establish the account by a motion. Please let me know if you have any questions. /sp CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ 1992 MEMORANDUM TO'~/ Rebecca Cronkhite, Airport Manager FROM: C [(d. Cary R. Graves, City Attorney DATE' June 4, 2003 RE- Municipal Regulation of Airport Noise You requested an opinion describing the extent, if at all, the City of Kenai could regulate airport noise. As will be described below, Kenai could enact some noise controls, but only at~er an approved aircraft noise study and with the concurrence of the Federal Aviation Administration (FAA). The penalty for not doing it fight includes loss of federal funds for the airport. Using the Supremacy and Commerce Clauses of the United States Constitution, the federal government has enacted preemptory regulatory powers over aviation.~ The Federal Aviation Act2 grants the federal government "complete and exclusive" authority over the nation's airspace. As one treatise on municipal law notes' The federal govemment has control of the national airspace to a degree sufficient to prevent local governments and agencies from using their police powers to control airport noise by regulating the flight of planes. The Federal Aviation Administration, in conjunction with the Environmental Protection Agency, has control over aircraft noise, preempting municipal control of aircraft noise by flight prohibition. The Federal Aviation Act preempts a city from using its police power to regulate the configuration of runways and taxiways on a private airport. However, a municipality, as proprietor of an airport, may establish permissible noise levels by regulations, since federal preemption of state and local regulative powers under the Supremacy Clause applies only to the exercise of police powers. McQuillen Mun Corp. § 11.03.10 (footnotes ' omitted) As noted above, the avenue available for the City to consider local noise controls is called the "proprietor exception." The basis for that doctrine is 49 U.S.C. §41713(b)(3), which states that a Rebecca Cronkhite June 4, 2003 Page 2 of 3 political subdivision of a state that owns or operates an airport is not prohibited from exercising its proprietary fights. Under that doctrine, a municipality that is the owner of an airport may enact some noise control if it is done in accordance with federal procedure.3' The. courts' rationale is that a municipality as owner of the airport may act to reduce is liability for inverse condemnation ("takings") claims as a result of aircraft noise.4 The cornerstone of that procedure is an FAA-approved noise study. The Airport Noise and Capacity Act of 1990s; the Airport and Airport Improvement Act of 19826; and the Aviation Safety and Noise Abatement Act of 19797 all require FAA-approved noise studies be done prior to a municipal attempt to regulate noise. The regulations setting the standards for noise studies are contained in 14-C.F.R. § 150 and § 161. The regulations set out a detailed and complex process for such studies. The rationale for strict FAA control of noise studies is set out in 49 U.S.C. {}472521(2). That states, "Commumty noise concerns have led to uncoordinated and inconsistent restrictions on aviation that could impede the national transportation system." This reflects the idea held by the FAA and Congress that air transportation is a national rather than local issue. The penalties for non-compliance are severe. Under federal law, the airport could be ineligible for federal grant money8. As you know the Kenai Municipal Airport relies heavily on federal grant money. A loss of such funding would be severe. The FAA could also seek judicial action to void improper, local noise controls. Some cities have used the "proprietor exception" to partially regulate airport noise. They include New York9, Santa Monica~°, and Long Beach.~ As you can tell from the court citations, the aviation industry has a history of fighting these types of noise restrictions. The courts have not been shy about striking down part or all noise restrictions which go outside the narrow limits allowed.~- Santa Monica Airport and National Helicopter Corp. illustrate that most courts will look closely at whether the restrictions are based on noise or type of aircraft. In those cases, while upholding general noise restrictions, they struck down restrictions on particular types of aircraft. They view prohibitions on particular types of aircraft, such as jets (Santa Monica AirporO or large helicopters (National Helicopter Corp.), as unreasonable. Thus, the municipality must focus on the level of noise, not the particular type of aircraft making the noise, as the issue. Put another way, the courts don't see a difference between noise coming from a jet and noise coming from a floatplane. Summary While it is possible to regulate noise at a municipally owned airport, it's not as simple as just passing an ordinance. It's a long and complicated process that starts with getting an approved noise study done. Any noise controls must reflect the findings of the study. The City must work also closely with the FAA during the entire process. Failure to follow the correct procedure could result in the loss of federal funding for the airport. Rebecca Cronkhite June 4, 2003 Page 3 of 3 Let me know if you or a member of the Airport Commission has any questions. CRG/sp CC' Linda L. Snow, City Manager ~ City of Burbank v. Lockheed Air Terminal Inc., 411 U.S. 624, 627, 93 S. Ct. 1854, 1856, 36 L. Ed 2d. 547 (1973)(Overturning 11 p.m. - 7 a.m. jet aircraft curfew), Allegheny Airlines, Inc. v. Village of Cedarhurst, 238 F.2d 812 (2na Cir. 1956))(Voiding local ordinance prohibiting flights over municipality at less than 1,000 ft.) 2 49 U.S.C. 1508(a) ~ Alaska Airlines, Inc. v. City of Long Beach, 951 F.2d 977 (9~ Cir. 1991) 4 Santa Monica Airport v. City of Santa Monica, 659 F.2d 100 (9th Cir. 1981) s 49 U.S.C. §47521 6 49 U.S.C. {}47101 7 49 U.S.C. {}47501 8 49 U.S.C. §47526 and 14 CFR § 161.501 ~ SeaAir NY, Inc. v. City of New York, 250 F.3~d 183 (2na Cir. 2001)(Restrictions on city-owned seaplane base upheld under the "proprietor exceptions" as a reasonable attempt to reduce noise impact on the community) & National Helicopter Corp. of America v. City of New York, 137 F.3d 81 (2aa Cir. 1998)(Upholding most of regulations reducing noise by limiting traffic at heliport, but overturning ban on a particular type of helicopters as discriminatory) ~o Santa Monica Airport v. City of Santa Monica, 659 F.2d 100 (9m Cir. 1981)(Evening curfew weekend limitations upheld but striking down limits on all jet aircraft) ~ Alaska Airlines, Inc. v. City of Long Beach, 951 F2d 977 (9~ Cir. 1991)(Upholding separate noise limits for daytime and nighttime flight operations) ~ National Helicopter Corp of America v. City of New York, supra; Santa Monica Airport, Inc. v. City of Santa Monica, supra; and City of Burbank v. Lockheed Air Terminal, Inc., supra. CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ 1992 MEMORANDUM TO:' FROM.C DATE' RE- Mayor Williams and Council Members Cary R. Graves, City Attorney June 24, 2003 Bond Issues For Roads During the last Council meeting the question came up regarding whether a bond proposition for roads would need to mention the specific road project or whether it could just state that the bonds would be used for roads. I indicated ! needed to check with bond counsel to get the answer to that question. I spoke with Thomas F. Klinkner of Birch, Horton, Bittner and Cherot who has done the City's bond work in the past. He said that generally the particular road project did not have to be named on the ballot, although some councils/assemblies opt to do so. He suggested that, if the City wanted to list a project(s) on the ballot, we include the language of "including but not limited to XXXXX project". He also mentioned that in order to be tax-free bonds, tax law requires the money raised be used within a reasonable period of time (2 to 3 years). He further stated, in order to get a bond issue on the October ballot, Council needs to approve the idea by mid-August. Please let me know if you have any other questions. /sp May 8, 2003 Mayor John Williams and Kenai City Council Members 210 Fidalgo, Suite 200 Kenai, Alaska 99611-7794 Dear Mayor Williams and Council Members' BOYS ~ GIRL~ CLUBS of the Kenai Peninsula, Kenai Unit 705 Frontage Road, Suite B Kenai, Alaska 99611 e-mail: info @ positiveplaceforkids.com Website: positiveplaceforkids.com (907) 283-2682 (907) 283-8190 fax We are pleased to inform you that the Boys and Girls Clubs of the Kenai Peninsula has been awarded a 2003 ALPAR Youth Litter Patrol grant. During a special dinner held in Anchorage on May 1, 2003, our 2002 ALPAR crew received an award as "The Outstandin~z ALPAR Youth Litter Patrol for 2002." Several members of last year's crew, as well as our Operations Director, accepted this award in our honor. Enclosed is a photograph taken at the event. The Boys & Girls Club is proud of the youth who have worked on our Litter Patrol crews every year since 1996. Thanks to these energetic young men and women, thousands of pounds of trash have been removed from our peninsula roadways and hundreds of cans have been recycled. With the generous support of ALPAR, the City of Kenai and the Kenai Peninsula Borough, these young people have had the opportunity to experience the employment process from start to finish. Each submitted a resume and letter of interest, participated in a formal interview, was expected to be at work on time and to work as directed. Working on the ALPAR crew is hard, dirty work that builds character and teaches youth the meaning of commitment and responsibility. We respectfully request that the City of Kenai support our 2003 program with a grant of $1,000. Your contribution to the program will enable the Boys & Girls Club to operate the program for a longer period. Please contact me if you have anv questions at 283-2682. Sincerely, Tina Marie Herford Executive Director TMH: kwl Enclosure The Positive Place For Kids MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Williams and Council Members Linda L. Snow, City Manager June 27, 2003 Telephone Poll Administration is requesting Council to approve a purchase order to Grace Painting, Inc. for the purpose of painting the Kenai Teen Center as per their amended proposal of dune 27, 2003. The purchase order is in the amount of $8,767.20. (The amount has changed because the vendor is a new one for the city and was not aware of Davis- Bacon Wage state requirements which was not factored into their previous proposal.) Authorized By: ~__~. - _~--_~_ L~nd~ L. Snow, Ci~ Manager Fin~ce Dep~tment Attest: C~ol L. Freas, Ci~ Clerk Yes Mayor John Williams ~/ Pat Porter v/ James C. Bookey, III v~ Amy Jackman --~ Linda Swarner John Osborne ~ Joe Moore No Comments Poll taken by: INFORMATION ITEMS KENAI CITY COUNCIL MEETING JULY 2, 2003 . 6 / 20 / 03 Public Works Department, Project Status Report. . 6 / 18 / 03 J. Hollier thank-you note regarding city newsletter. , 6/03 Resource Development Council for Alaska, Inc., Resource Review. . 7/03 Soldotna Chamber of Commerce, Chamber Connection. Project status Report A=Active NC=Non-Construction F=Future STIP=State Trans. Imp KK - Keith Kornelis JL- Jack La Shot RS - Robert Springer MK - Marilyn Kebschuil Jet- Jan Taylor /// A/NC/F/ City Contact Prejeet Name S~ A JL Airport Security Fencing Status Profess~bnal services contract started. Discussion at 7/8/03 meeting of Airport Commission. A KK Basin View LID Project awarded to North Star Paving. Construction started. Paving scheduled end of July. Having some utility problems. A KK Bridge Access W & S Feasibility Study Wince-CorthelI-Bryson has just about completed this project. We increased the scope to include preliminary design work. The project cost (including the increase)is split DEC/EDA. A JL/RS City Hall HVAC A MK Comprehensive Plan Documents complete. Public hearing scheduled for June 25. A JL Contaminated Soils- Shop Met with ADEC. Must start project soon. Sent in loan fund questionnaire for ranking. Work plan to be submitted. A JL Daubenspeck Environmental Site Assessment Final report has been received. UST removal report received and submitted to ADEC. A JL FAA Site Site has been determined to be clean. After environmental is complete, we can begin transfer process to City. A JL Kenai AP ARFF/SRE Facility Working on project closeout. Warranty inspections complete. A KK Kenai Coastal Trail Corps has received funding for planning and answering permitting questions on this project. ADF&G Working in river. Friday, June 20, 2003 Page I of 3 A/NC/F/ A JL City Contact Project Name Library Improvements Status Schematics complete - awaiting further direction. A JL Maintenance Shop Preliminary plans and specifications complete. Grant funds to lapse in '04. Will see if grant can be amended to do environmental. A KK McCollum & Aliak LID This LID project has been approved by Council. State Muni-Matching Grants Program has been deleted. Project on hold until changes made or funding found. A JL Multi-Purpose Facility Refrigeration Venting estimated at approximately $30,000. A KK Pillars LID - Chinook Drive and Sockeye Circle Topsoil and seeding is being done. A JL Runway Extension Environmental Assessment Public meeting scheduled for July 8. A KK Schooner Circle LID Project awarded to Alaska Roadbuilders. Construction started. Having some utility problems. A KK Title 17 Review and W & S Regulations Working with Larry...Completed revisions to W & S regulations. Adding a grease prevention regulation. 'A KK Toyon Way LID Project awarded to Alaska Roadbuiiders. Construction started. A JL Underground Storage Tank- Airport Extra soils removed and stockpiled. Report to ADEC finished and submitted. May spread soils on airport. A KK Wastewater Facility Master Plan Awarded project to CH2M Hill. At about 90% completion. A KK WH4 Looking at new sites for well. Looking west of Beaver Loop Road at a site near sewer interceptor line. Wrote to CIRI (Subsurface rights) asking for a letter of non-objection that is needed for DNR. Friday, June 20, 2003 Page 2 of 3 A/NC/F/ City CoiltBG't Sll~ STIP KK Prejeet Name DOT- Bridge Access Pathway Status Pathway along Bridge Access Road from K-Beach to Spur 3.3 miles...Design FFY 02 & 03, ROW 04, Utilities 06, & Construction 06 with total cost $4 million. STIP KK DOT- Kenai River Flats Interpretive Site This is the rest stop and Birch Island Faciitiy near the Warren Ames Bridge. Design 04, Utilities 06, ConstruCtion 06. Total $1.9 million. STIP KK DOT- Kenai Spur Unity Trail Pathway Pedestrian/bike pathway along Kenai Spur from MP 2.8 to 8.2. A status report has been requested from DOT. We have not received a reply back from DOT. Friday, June 20, 2003 Page 3 of 3 PERCEPTION IS REALITY: Alaska's I ma: e is Sl ippin: in The World Minin Industry By Curt Freeman ~v daughter's fourth-grade class at Pearl Creek Elementarv School in Fairbanks recentlv noticed that the current edition of Harcourt Brace Social Studies' Intermediate Student Atlas was missing the world's -) largest zinc deposit, the Red Dog · Mine, from the Alaska land use and resource map. Her teacher encour- aged the class to notify the company about' its error. This oversight underscores a signifi- cant fact regarding Alaska in general and its mineral resources in particular: perception is reality. To virtuallv every other primary school student in the country, the information in the Intermediate Student Atlas is realitv. To Alaskans, it is not. Perception departs from reality not onlv in the classroom, but also in the board room where corporate execu- tives often take a different view of Alaska and its minerals industrv. On the plus side of our mineral in- dustry ledger, Alaska is elephant coun- try, endowed with some of the most impressive mineral deposits on earth. The Red Dog zinc-lead deposit is the xvorld's largest. Greens Creek is one of the world's most prolific silver mines. Fort Knox is Alaska's largest gold mine. The coal deposits near Healv and in the Colville and Matanuska basins are some of the largest in North America. And the Donlin Creek gold deposit hosts at least 27 million ounces of c~old, making it the 16th largest discoverv in the world. The fact that all of these deposits, except the coal fields, were discovered in the last 30 years indi- . cares the state is highly underprospected. Alaska's vastness is well known, but few outside the state realize that lands open to mineral entrv here exceed what is available throughout the rest of the United States combined. In fact, more than 190 million acres in Alaska are open to min- eral entry, an area as large as Chile and twice the size of Nevada, two of The Fled Do~ Mine, operated by Teck Cominco and owned by NANA Regqonai Corporation, is the largest zinc producer in the world. (Continued to pa~e '~) The Greens Creek Mine in Southeast Alaska near Juneau is primarily under~round with miles of tunnels extending~ more than 1,000 feet below the surface. It produces silver, zinc, gold and lead. It is owned by Kennecott Minerals and is a maior contributor to the Juneau economy. Minin~ Perception l, Legislative Review 3 Session Perspectives 6-7 N PRA Amendments a ANWR Production 9 Wetlands Rulemakin~ 9 Wilderness Studies 10 Po~o Gold Proiect ~1 INDUSTRIAL FLUIDS REPRCli-:.ESSING ENERGY, ENVIRONMENTAL AND LOGISTICS S ERVlC:ES FEDERAL PROOUREMENT OEINSULTING er, ic s ;or ] Olliniex ' vorid. KON IAQ IN C 0 F~ P 0 F~ A t E D PUBLICATION AND DEIP-UMENTATIEIN 8(A) CONTRACTING, MINORITY-OWNED TELEOOMMUNIOATIONS CONSULTING ' :,..v w w. ,~L 0 1',,,1 I A ['q. 0 cO N1 Resource Development Council 121 W. Fireweed, Suite 250 Anchora~Je, AK 99503 Phone: (907) 2'76-0700 Fax: (90'/) 2'76-3887 E-mail: resources@akrd¢.or~ Website: www. akrd¢.or~ Material in this publication may be reprinted without permission provided appropriate credit is ~.'~ven. Wriler 8, Editor Carl Portman Executive Committee Officers President Sr. Vice President Vice President Secretary Treasurer Past President Charles W. Johnson Mark Hanley John Shively Uwe Gross Stephanie Madsen Robert B. Stiles Staff Executive Director Deputy Director Projects/AMEREF Coordinator Finance/Membership Tadd Owens Carl R. Portman Jason l]rune t3illie Rae Gillas Resource Review is the official ~eriodic publication of the Resource Development Council (RDC), Alaska's largest privately funaed nonprofit economic development organization working to develop Alaska's natural resources ~n a responsible manner and to create a broad-based, diversified economy while protecting and ennanc~n,~ the environment. Pag~e 2. June 2.003 Resource Review www.akrdc.orS' HEADWAY MADE IN PERMIT REGIME, LITTLE PROGRESS ON FISCAL FRONT The ,good news is Governor Murkowski and tine Lc,,islature,~ made a great deal of headway in restnap- ing Alaska's permit regime during the recent legislative session. Unfortunately, very little progress xvas made to balance tlne state's books over tine long run. Executive Orders 106 and 107, and Senate Bill 142 completely restructure tlne State's permitting organiza- tion. Now both tine 'Division of Governmental Coordination and tine Habitat Division reside in the Department of Natural RDC's top legislative priorities remained the same tlnis year -- streamline tiae State's permitting processes and institute a long-term fiscal plan. Specifically, RDC advocated for reform of Alaska's permit- ting processes while maintaining tine state's high environmen- tal standards, and for a long-term fiscal plan based on budget discipline, new uses of Permanent [:und earnings and, if necessarx; tine institution of a broad-based tax. differentiates between major and minor source permits and standardizes the requirements for minor permits: and it restructures the program's schedule of fees. Senate Bill 74 makes a simple change to the renewal period for oil. disc, barge and contingency plans from three to five >'ears. increasing tine time between renewals makes Alaska's program consistent with tine federal program and allows the state to focus its resources ... on site inspections rather tlnan the office work associ- ated with plan reviews. I-louse Bill 145 does away wittn public interest liti,,'ant ~ '-' status except for claims that "establish, protect, ,,r enforce" a right under the Alaska Constitution or the U.S. Constitution. The bill 'x also prevents cc)urts from xvaiving tine bond require- ments when a group seeks an injunction to stop a develop- ment project. This legisla- tion levels the playing field ~vhen it comes to litigating over a development project. Time and time again lead- ers throughout tine business community, l~ave warned that Alaska's fiscal imbalance and rcgulat°ry morass were becoming barriers to private sector capital investment. \Vhile Alaska businesses face a host of challen~es and uncertainties in their efforts to remain competitive, rc,,ulatorv,,, and fiscal poiicv are the two areas where .government can'make meaningful 'contributions. The 'Governor and the Legislatur'e demonstrated courage and leaciersh~p in reorganizing and reforming much of the State's regulatory system for development projects. They · slnould apply tine same qualities next session in solving Alaska's budget crisis. A contingent of the RDCBoard of Directors met in Juneau this past session with legislators and members of Governor Frank Murkowski's administration on a wide range of issues. The RDCBoard focused on legislation important to Alaska business and industry, as well as state fiscal issues. Above, Board members meet with Ernesta Ballard, Commissioner of the Alaska Department of Environmental Conservation. Resources. These changes not only allow for a more efficient allocation of State resources, but also provide tine regulated community xvith one point of contact wtnen permitting a development project. Most importantl.xq these changes do not alter ~t' compromise Alaska's rigorous environmental standards. In addition to organizational clnanges, tlne Legislature passed several bills xvith positive impacts on Alaska's permit- ting system. House Bill 160 reforms the State's air permit pro- gram. The bill accomplishes tlnree major goals - it makes DEC's program consistent with tine federal program: it 100 TEACHERS $'IG'N UP. FO.R AM ER::EF TR~AINING' Nearly 100 Anchora~'e teachers enrolled in an AMEREF trainin~ session held this April. Teachers earned professional education credits, which are necessary to maintain their certification, while learnin~ about Alaska's mineral, energy, and for- est resources. Each participatin~ teacher left with a resource kit full of Alaskan specific education modules, books, videos, and the very popular mineral identification set. Trainin~ sessions are held regularly through- out Alaska and are free to anyone interested. If you know a teacher that would like to receive a kit or participate in these trainin~ sessions, please contact us at (907) 276-0700. AMFRFF is a partnership between the State of Alaska Department of £ducation and private industry whose mission is to provide Alaska students with the required resource back~round necessary to make in- formect and objective decisions concernin~ the management and deveiooment of Alaska's natural resources. The curriculum is structured to assist students in meetin~ current state education standards. RDC administers the AM£R£F program with the support of private donations. (907) 276-0700 June 2003 Resource Review Paffe 3 The Usibeili Coal Mine, a family-owned mine located outside Healy, ii'the only operating coal mine in Alaska. The mine produces coal for Interior Alaska communities and has been a Ion,-time exporter to South Korea. ALASKA'S MINING INDUSTRY AS (Continued from Page 1) the mining industrv's favorite haunts. Another plus for Alaska is its talented and experienced labor pool. And unlike many other parts of the world, Alaska's Native corporations have been in business for more than 30 vears and have a long history of partnering and working with the mining industry,. Todav they repre- sent one of the industry's strongest business partners. Alaska's exploration track record is another plus for the state. The mining industrv has been extraordinarily successful at finding new re- sources here. For example, gold resources within the state's borders have grown VI EWED FROM OUTSi DE TH E STATE from just a few million ounces in 1980 to over 77 million ounces in 2002, an enviable discovery rate of 5.5 million ounces annually since 1994. Perhaps more impor- tant is the fact that gold discovered during that same period has been found at a cost of less than $5 per ounce or about 25% of the world- wide average discovery cost. On the minus side of the ledger are things Alaskans would rather not discuss. For example, over the last ten years, about 75% of the annual exploration dollars spent in Alaska come from the corporate coffers of Canadian companies. For these companies, putting money in Alaska is a hard sell, given the significant tax incentives available to Canadian companies that in- vest in Canada and the US- Canadian dollar exchange rate. Alaska's "elephant coun- trv" status belies the fact that there are virtuallv no mid- tier mines and, with the exception of a small and dwindling number of placer gold operations, there are no small mines in the state. It has been pointed out by detractors of Alaska that ele- phants are extremelv difficult to find. Since no other size deposits appear to be eco- nomic, there is little reason to explore in Alaska. The fa.' that Alaska is und, prospected can be attributeu in large part to its lack of roads and power facilities. If you can't get there, you can't find it! Another negative is that Alaska's land status is viewed bv many as being of Bvzantine complexitv and many remember the devas- tating and lasting effect that the Alaska National Interest ow-~}a'~l-lnvestmeni-AttraCtiveness Index' Chile Quebec Australia Nevada Peru Ontario Brazil Mexico NW Ter. Bolivia Nunavut S. Africa China Russia Alaska (12th) Yukon (15th) B. C. (17th) 20 40 60 80 Percent Score lOO Nevada Alberta Chile Manitoba New Brunswick Australia Quebec Ontario New Mexico Saskatchewan Arizona Mexico Alaska (21st) Yukon (23rd) B. C. (37th) 0 20 40 60 80 1 oo ~.~ercent Sco~® Page ,t June 2003 Resource Review www. akrdc.org Located 25 miles north of Fairbanks, Kinross Gold Corporation's Fort Knox Mine has been the larg'est ~old producer in Alaska since its inception in 1997. The company also operates the True North ~old prospect nearby. Both mines are important components of the Interior Alaska economy. Lands Conservation Act (ANILCA) land withdrawals had on the mineral industry. In short, Alaska lands are thought by some to be com- Plicated and subject to gov- ernment confiscation. As if all that is not enough, many view Alaska's labor pool as expensive and of limited value to the mining industry. The fact that only one in seven employed in Alaska works in the private sector does not help the cause (the national average is one in three). Since most industry inter- est in Alaska comes from firms domiciled outside the state, it is critical that we un- derstand what those firms think about the Alaska mineral industry. The most useful tool for addressing this subject is a yearly summary by Canada's Fraser Institute. Each vear the Fraser Institute publishes the results of its annual survey of mineral investment attrac- tiveness for various political jurisdictions around the globe. The survey scores come directly from mining companies and their execu- Chile Quebec Australia Brazil Peru Russia Ontario Nevada Nunavut NW Ter. China Mexico B. C. (10th) South Africa Alaska(11th) Yukon (13th) 0 20 40 60 80 100 Percent Scum (907) 276-0700 tives. This year's survey was filled out by 27 major and 131 junior mining companies with combined exploration expenditures of about $480 million. They were asked to rate 47 political jurisdictions that in- cluded Alaska, several west- ern U.S. states, the Canadian provinces and a number of mineral-rich foreign coun- tries. The questionnaire is lengthy and results in three rankings' mineral potential, policy potential and an aver- age of these two which forms an overall mineral investment attractiveness index. Alaska has faired reasonably well in past surveys - until this year. In last year's survey, AlaSka ranked seventh worldwide in overall mineral investment attractiveness. This year it ranked twelfth. The conclusion that must be drawn is that Alaska's mineral investment climate has degraded significantly in the last year. Alaska's ranking in the policy potential index was likewise gloomy. The sur- June 2003 Resource Review vcv's policy potentiai index ranks whether infrastructure. labor, land use. environmen- tal and regulatory issues are- significant deterrents or in- ducements to mineral invest- ment. In this year's survey, Alaska would have ranked an impressive third out of 47 jurisdictions if these issues were ignored. Unfortunately, Alaska ranked 2!st when they were included in the survev. Again, the conclusion is inescapable, infrastructure and land use concerns, as well as regulatory policies are a significant deterrent to min- eral investment in Alaska. With txvo strikes against Alaska, surelv mineral poten- tial will save the day, won't it? The answer is a surprising and emphatic "no." Last year Alaska ranked fourth for mineral potential, but this year the state suffered a dramatic fall to 11 th place. The perception that Alaska's mineral potential has somehow fallen in the space of a single year should send red flags flying and alarm bells ringing for anyone familiar with the state's impressive mineral endow- ment. The survev results sent · me back to the data to find out whv Alaska's mineral potentiai changed so drasti- cally and suddenly. Keep in mind this drop came during the same time frame in which Alaska's first 20-plus million ounce gold deposit was announced at Donlin Creek. Obviouslv Alaska's mineral potential did not in fact degrade, but what did take a big hit was the "perception" of that mineral potential. If perception has dealt Alaska's mineral potential an unwarranted blow, how did perception affect Alaska's ranking in the policy poten- tial portion of the Fraser Survey? The same negative (Continued to pa~e 10) Pa~e 5 LEGISLATIVE SESSION S A "FISCAL F ASCO" By Representative Ethan Berkowitz, Minority Leaaer The story ,,f this legislative session is more t'emarkable for v,'hat did n~)t i~appen, then for wt~at did. G~vernor :xlurkowski and the Republican ~aiorities rode to victory on the twin platforms of resource development and no new taxes - and the assurance that with ti~e stars aligned, the fiscal zap would be solved. Major resource development remains elusive, the fiscal gap yaws, ready to send the economy into a tailspin, and efforts to close out the budget without I)emocratic participation led to a series of contortions and gamesmanships that put v:~rtisan politics before Alaskan needs. That's why political astronomers admit tl~at they may need new telescopes. Certainly. the myth that a ,~ne-part)' state is good for Alaska has now been dispelled. I)emocrats i~ave said repeatedly that we would entertain a fiscal plan that was fain that added up, and tt~at protected the Alaskan economy. XX% began this session respect- lng the mandate of the last election and allowed . ~ that we w{~uld g~ve the Governor every chance to ' succeed. We watched and waited for Governor Murkowski to propose a comprehensive fiscal plan, but he never did. As far as the fiscal gap goes, Governor Murkowski never really engaged the legislature, never demonstrated commitment to his ideas for the fiscal gap, and never provided the leadership needed to solve the problem. His ideas lacked coherence, being a grab bag of random taxes and user fees and budget cuts targeted more at the bottom line in the budget than in delivering rite level and qual- itv of service necessary for government to best serve the state's needs. The Administration's style further complicated the issue- alternating between complete lack of involvement, threats to recalcitrant legislators, and untimely intervention that upset precarious legislative balance. A desperate last minute bid to impose a sales tax foundered because the Senate never embraced the idea, the Governor remained lukewarm until the waning moments of sessiom and most crucially, because the plan itself was flawed, both politically and economically. The primary political faiiure came because the plan largely neglected to take into account the revenue needs of the 97 Alaskan communities that alreadv have a sales tax and because legislative leaders rejected discussion of any other proposals. Economicall>; the sales tax offered had not been subjected to rigorous analysis as to its impact on the economy. In addition, the tax should have been the product of expert consultation and advice- and was not. The trajectory of this failure was obvious since its launch, which is whv Democrats have insisted that we need "a plan for a plan", leading to a compre- hensive fiscal plan for the state, one that integrates state and local revenue raising measures. Rather titan put in the i~ard work needed to arrive at a tis, plan, the Administration i~as ci~osen to inflict deep cuts on ti~ state budget. Legislative acquiescence to cuts or' this scale amounts to an abdication of responsibility and docs iniurv the notion of checks and balances central to our system ,governance. Importantly, the economic consequences of with , ' drawln,, several hundred million dollars from the state's economy are dire- and the costs to maintaining critical services an~[ the quality of life are irresponsible. For example, in a state severely lacking in venture capital, it is folly to eliminate ti~e Alaska Science and Technolo,,v · ~...~. Foundation. Breaking ti~e t~romise of the Longevity Bonus · raises questions of the state's credibility that will take a gener- ation to repair- as does incomplete funding of ti~e state's ligation regarding bond debt reimbursement. It constitutes a ~noral and ethical failure to sacrifice credibility f,,r bud.<et'~,',' expedience. Democrats offered approximately S700 million of revenue raising measures. Unfortunately, these proposals have largely been ignored. Carbon ~cquestration, an emerging global market that xvould alloxv Alaska to sell pollution credits while simultaneously encouraging forestry a~d heavv oil recovery, could raise upwards of 5400 million. Sale of state assets, amounting to a consolidation of the state's bonding entities, also could assist to the tune of $150-200 million. Better use of the railroad's bonding auti~oritv could ease pressure on the capital budget. Efforts to reduce pipeline tariff costs similarly could decrease state costs winile stimulating oil production. We are only marginally closer today to resolving the fiscal gap than we were at the beginning of session. This is an Alaskan problem that defies partisan solution. I look forward to the time when Republican leaders offer all Alaskans a meaningful place at the table and show an open mind to inno- vative approaches and solutions to the fiscal gap. Until then, the instability, of government budgeting ripples into the resource development communitv, addin,- risk and , ,~ uncertainty to businesses ti~at already operate on thin margins Already, xve skate too close to a dangerous tipping point. Pa~e 6 June 2003 Resource Review www.akrdc.or~ GOVERNOR, LEGISLATURE WORK TOWARD BETTER BUSINESS CLIMATE IN ALASKA By Senate President Gene Therriault The challenges facing Alaska in the 21st Century are not new. It is no longer enougi~ to hold our- selves out as 'open and ready for business'- it's time we change the way we do business in our state. The elections of 2002 put into place a new governor, state senate, and state house that can work cooperatively and constructively toward addressing the obstacles blocking our way. Alaska's permitting system has needed a complete review and overhaul for some time. Developed piecemeal over the 43 years since statehood, our state's process for approving development projects became an increasingly lengthy and disiointed one that confused the public~ agencies~ and applicants alike. Industries from across the state stepped forward and asked for clarity, consistencx~ and timeliness. Action was taken in four specific pieces of legislation: · House Bill 191 reforms the Alaska Coastal Management Program. Local coastal plans will now have to be clear, con- else, and contain objective, measurable standards. · Senate Bill 142 designates the Department of Natural Resources as the lead state agency in permitting projects. · Senate Bill 74 extends the period of time between renewals for oil discharge and contingency plans (C-plans). This will allow agencies more time to enforce the terms of such plans. · House Bill 160 implements the findings of the Air Permits Work Group and a benchmark study that will bring Alaska up to date with the national permit regime. It is important to note that for far too many projects, permit approval has not been the signal to proceed, but the opening gun in lengthy, costly litigation. The threat of litigation has had a chilling effect on investment in Alaska. For these reasons, the Legislature passed two pieces of legislation that will make it more difficult for sound projects to be held up' · House Bill 145 abrogates the judicially-created public interest litigant doctrine that shields those who wish to stop projects through litigation. The bill shifts that legal protection to claims that preserve, enforce, or establish a right under the United States Constitution or the Alaska Constitution. Only that portion of a claim devoted to such rights will be afforded the protections given under the former doctrine. · House Bill 86, introduced by Representative Fate, creates a civil liability for malicious claims against state permitted projects. It also limits standing to bring claims under the Alaska Coastal Management Program to applicants, affected coastal resource districts, and those who bring constitutional claims. While many steps were taken to improve the regulatory climate in Alaska, it is also important to recognize the need for capital investment in resource-based industries. If we want industry to invest scarce capital, we must be willing to reward such actions so long as they present a reasonable chance of in- creasing the value or production of our resources. This past session, two measures passed the Legislature that will advance this goal' · House Bill 92~ introduced by Senator Gary Stevens, provides a salmon product development tax credit for the purpose of developing value-added salmon products. · Senate Bill 155, introduced by Senator Waggoner~ offers an oil and gas production tax credit to companies that per- form exploration work from July 1, 2003 through July 1, 2007. The credit will bring the cost of exploration in Alaska in line with other piaces around the world. With all of these changes to the way we do business in Alaska, there remains one more impediment to investment in Alaska-fiscal ~ncertainty within the State's budget. Industries are wary of investing additional capital in projects that might be macac uneconomic i~ taxes have to be raised to make up our shortfall. The Alaskan ~ublic has demanded that we · ,~ ,. government costs and growth under control before they will be ~villing to accept broad-based taxes. The Legislature passed numerous pieces of legislation to do just that, thereby reducing the pres- sure for additional state revenue. In addition, the Trustees of the Alaska Permanent Fund have again brought forward a percent of market value (POMV) proposal for consideration on the 2004 election ballot. The Senate Judiciary Committee xvill continue discussion of that concept throughout the state during the interim. Much was accomplished this legislative session. Alaska's governor and Legislature truly are changing the way we do business in Alaska. Removing obstacles to the development of our natural resources is a high priority for all of us. Reflecting on the conclusion of the first session of the 23rd Alaska State Legislature, I am proud of the work that was done this year and look forward to renewing our efforts next January. (907) 276-0700 June 2003 Resource Review Pa~e 7 ~ NORTHWTST ~-' PLAllllme ¢ o l vill, ~r NATIONAL PETROLEUM ',RESERVE Map courtesy of the Alaska Oil and Gas Reporler The BLM is revisiting development restrictions imposed by the Clinton administration on the Teshekpuk Lake area of NPRA. Geologists believe as much as 2. billion barrels of economically-recoverable oil might be in the area. BLM REV-IS. .ITS DRILLING The Bureau of Land Management (BLM) is mov- ing forward with plans to amend its 1998 land use plan for 4.6 million acres in the northeast corner of the National Petroleum Reserve- Alaska (NPRA). The agency is considering leasing previously closed areas as geologists believe as much as 2 billion barrels of oil might exist in areas currently off- limits to development. "We've learned a lot during the past four years," said B LM Alaska State Director Henri Bisson. "We know that we can safely explore this area without significant impact to sensitive wildlife and subsistence resources. We also believe that we can develop critical hydrocarbon resources in a manner that protects these same values." Bisson believes this is the ideal time to re-evaluate the current plan for the northeast corner of NPRA. The fresh evaluation would study new exploration and development opportunities that could provide access to significant new oil discoveries and to consider changing the current prescriptive stipulations into a mixture of prescriptive and performance-based stipula- tions similar to those being developed for the northwest portion of NPRA. of the lake. Geologists believe the Northeast portion of the reserve may contain 3.2 billion barreis of oil, with 2 billion barrels in the lake area. Bisson said prescriptive ConocoPhillips' Puviaq prospect in NPRA is west of Teshekpuk Lake. The 1998 plan drafted under the Clinton adminis- tration prohibited leasing on about 600,000 acres in and around Teshekpuk Lake, an area considered to have high prospects for a major discov- ery of oil and gas. The plan also barred any surface drilling activity on another 240,000 acres south and west stipulations are very specific and in some cases inappropri- ate or needlessly restrictive. He said performance-based stipulations often can accom- plish the same goal, but are more flexible. "For example, if oil and gas exploration is planned in the same area that has sensitive wildlife habitat, it is possible Pa~e 8 June 2003 Resource Review to allow exploration in the winter when animals are not present," Bisson said. Geologists believe billions of barrels of oil can be ex- tracted safely from the north- east portion of the reserve as advances in technology have greatly reduced indust' footprint. After three dec~ of oil and gas development in the Arctic, industry has demonstrated it is capable of producing oil while main- taining the highest regard for safety and environmental sensitivity. B LM is now preparing a suppiemental environmental impact statement and expects the entire process to be com- pleted by the end of 2004. Since the original plan was completed in 1998, the agency has awarded leases on about 1.4 million acres in the northeast corner of the reserve and industry has drilled 14 exploratory wells. Two other environmental impact statements for NPRA are underway. One covers a land use plan for 8.8 million acres in the Northwest portion and a second evaluating a proposal frt.__. ConocoPhillips for expand- ~ng production from Alpine. www.akrdc.org 1,400,000 1,200,000 1,000,000 800,000 600,000 40O,0O0 200,000 Average Daily Oil Production (bpd) ANWR TX AK" CA LA NM OK WY CO AR WV PA MA * Office of OII lnd Gu, Energy Inform~ion Admlnlsaltlon. U.S. Deplrtme~ of Energy, "Potirti~J OII Production from the Coast~J Plain of the Arctic Natlomd Wildlife Refuge: Upd~tecl Assessment" p. 6 (M~y 2000). The Coastal Plain of the Arctic National Wildlife Refuge (ANWR) is this nation's single greatest onshore prospect for future oil discovery. It contains an estimated 5.7 billion to !6 billion barrels of recoverable oil, with a mean estimate of 10.4 billion barrels. The estimated daily produc- tion from ANWR would exceed what is now being produced in any individual state. Energy conservation measures - including improvements in fuel standards for vehicles - combined with ANWR production, could off- set what this nation currently imports £rom the Persian Gulf region, sharply cutting dependence on foreign oil. The 19 million acre ANWR is roughly the' size of South Carolina. The Coastal Plain is 1.5 million acres. Development would directly impact less than 1/100 of one percent of the refuge. RDC Supports Rulemakin; On Wetlands RDC is supporting a pro- posed rulemaking by the Corps of Engineers and the Environmental Protection Agency to clarify what types of wetlands fall under the jurisdiction of Clean Water Act regulation. Earlier this year, the Corps and EPA issued an Advanced Notice of Proposed Rulemaking to obtain public comment on wetlands eligi- ble for federal protection after a U.S. Supreme Court decision in 2001 left federal regulatory jurisdiction over some wetlands in question. The goal of regulators is to develop proposed regulations that will clarify which wetlands and waters are subject to Clean Water Act jurisdiction. The proposed rulemaking is a direct result of the Court's decision elimi- nating the act's oversight over isolated wetlands that are intrastate and non-navigable. The impact of the decision and subsequent regulatory revisions resulting from it could be far-reaching in Alaska, given the 49th state has more acreage in wetlands subject to Corps jurisdiction than the entire Lower 48 states combined. "It is imperative that clear regulations consistent with the intent and spirit of the Court's ruling be developed and implemented," RDC said in comments flied with the federal agencies this spring. "The Rulemaking is neces- Some 60 percent of Alaska is considered "jurisdictional" wetlands under an overly broad definition of "Waters of the United Slates." Most Alaska communities are built in and around wellands. sary to restore regulatory certainty, especially in Alaska where nearly 60 percent of the state is considered 'juris- dictional' wetlands under an overly broad definition of Waters~of the United States," RDC added. "Lack of a clear definition for jurisdictional wetlands and Waters of the United States has resulted in (Continued to pa~e 11) (907) 276-0700 June 2003 Resource Review Parle 9 NORTO"N MAKES RIG'HT:'CALL Secretary ~f the i Interior Gale Norton l~as i exempted Bureau of Land ' X Ianagement lands in Alaska from further Wilderness studies. in her ruling, Secretary Norton recognized that Alaska al- readv accounts for 56 percent of the nation's designated Wilc~erness and has tens of millions ~)f additional acreage in land management prescriptions that preclude or restrict development. The Secretarv's action is consistent with the Alaska National Interest Lands Conservation Act (ANILCA) which estab- lished a balance between preserving Alaska's special places and the need for economic development and multiple use oppor- tunities on other lands. New Wilderness reviews and designa- tions would violate the spirit of ANILCA, destrov the balance it established and further restrict access and economic ~pportunities. The prohibition on \Vilderness reviews is a welcome recog- ~ition that Alaska already has preserved vast areas for future generations and that new Wilderness designations are not necessary. Beginning in 1971, Alaska's federal lands were studied for their Wilderness values under Wilderness Act criteria. In 1980, ANILCA preserved approximately 150 million acres in specially protected conservation units. This acreage represents more than 40 percent of Alaska and 60 percent of the federal land in the state. The act preserved 58 million acres as designated Wilderness. In recognition of the sensitive and protracted negotiations 0 N W I L D E.R N ESS S T U D I ES ultimately led to the passage of ANILCA, Cong precluded further .~tudv _ B LM lands in the State of Alaska for the establishme'nt of single purpose "conservation system units, national recreation ,\teas, national conservation areas or for related or similar purposes.." This "~o more" Wilderness clause compelled the Secretary of the Interior, shortly after the passage of ANILCA, to adopt a policy ~ot to conduct further Wilderness studies as part of tlT~e B LM planning process in Alaska. This policy was in effect for 20 years until Secretary . Bruce Babbitt rescinded it in 2001 - two days before leavin~ ,~fficc. ~- Secretary Norton's reinstatement of the longstanding policy . has been welcomed by Alaskans who believe the original compromises and balance struck in ANILCA should be hon- ,~red. ,'\ Wilderness designation is not the only option for identi- · . fy'lng and protecting environmental values. The land use plan- ~ing process provides manv opportunities ~utside Wilderness alternative to recognize a broad ran,,e of interests and to restrict land use activities. The new policy accommodates the need for Alaskans access B LM lands for multiple use activities and new eco- nomic opportunities in a responsible manner that protects the environment. In an effort to balance preservation and multiple use, ANILCA left Alaska with more land in protected sta' than any other state. The Secretarv's action xvill preserve t balance. Mining: Perception is Reality (Continued from pag~e S) perception pushed Alaska down the list compared to previous vears. In fact, the survev indicated Alaska's mineral- related policies are perceived to be worse than places like Peru, Argentina, Bolivia and Mexico. Forty percent of those surveyed said Alaska's environmental policies are a strong deterrent to mineral investment. Nearly 40 percent indicated that uncer- tainties surrounding protected areas are a strong deterrent. Over 35 percent noted Alaska's lack of infrastructure as a big concern. Perhaps even more telling is where Alaska ranked in the overall investment attractiveness index. The Fraser Institute Survey suggested Alaska is per- ceived to be a worse place to invest in ~nineral exploration and development than Russia, China, South Africa, Bolivia, Peru and Brazil. Most Alaskans Page 10 do .~ot believe this is true. Unfortunately, the perception of the mining industry at large is that its in- vestment is less at risk abroad than in Alaska. If that perception is in fact reality, Alaska's mining industry has a big prob- lem to solve. If that perception is in error, which I believe it is, Alaska's min- eral industry faces the equally daunting challenge of changing worldwide per- ception. So how can Alaska change this per- ception? There are a number of wavs to approach the problem and a multitude of things that need fixing. Alaska can start by streamlining its permitting process to make it more timely and cost effective. The state can eliminate "zero-liability" legal challenges that have plagued permitted projects in the past. It can design and June 2003 Resource Review build regional infrastructure hubs for roads and power lines. Alaska can con- tinue to invest in state-of-the-art air- borne geophysical survevs. \'(/e can continue to require science-based air and water quality regulations. The state can regain control of its rivers and coast- lines. And perhaps most important of all, Alaska can aggressively market its mineral potential across the' globe. Easy.to sa?; not so easy to accomplish, but we can chan,~e tl'~e future. Bob Keller, \/ice-President and Editor-in- Chief for Social Studies at Harcourt School Publishers, wrote back to my daughter's 4th grade class and admitte~l that they had indeed left Red Dog off the map. He thanked the class for point- lng it out and promised to rectifv the error in future editions. Think of: it as one small step in a long journey that has to start somewhere. Curt Freeman is geologist and Presid of Avalon Development, a mineral consult- lng firm based in Fairbanks. He can be reached at avalon~t2alaska.net. www.akrdc.org PoGo GOLD MINING PROJECT GETS OVERWHELMING PUBLIC SUPPORT Surveyors work at the portal site of the Pogo Gold prospect near jobs," testified Bill Brophy at the Alternative Management Option, Fairbanks hearing. Brophy, speaking would not open the first half of the on behalf of RDC, noted that Teck- road until Teck-Pogo is finished rain- Della. A final decision on whether to move for- ward with the project is expected this fall. Construction could begin as early as December once final permits are obtained. The proposed Pogo Gold Mine project in Interior Alaska received overwhelming support in public hearings held in Fairbanks and Delta last month. RDC joined other business and trade associations, corporations and dozens of local residents in urging the Environmental Protection Agency and the State of Alaska to permit the project. "The Pogo project is good for Alaska, especially for the Interior where it will boost economic activity and generate hundreds of new con- struction and permanent year-round Pogo - pending receipt of necessary. permits - is prepared to invest a quarter billion dollars to construct. the underground mine' and. ils related infrastructure. He said. the project will bring new opportunities for Alaska businesses and residents and will help sustain a healthy and grow- ing mining industry in the state. The Teck-Pogo operation has been designed in such a way as to minimize operational impacts on the environ- ment. The project is designed to meet Alaska water quality standards and it will not degrade the water quality of the Goodpaster River. One issue vet to be resolved is a long-term management plan for a 50- mile access road to the mine. The Department of Natural Resources is considering two options for allowing public use of the road. One is opening the first half of the road to the public after construction is completed. The second option, the so-called ing.:the prospect. RDC, as well as most testifying at the hearings, supported the latter option. RDC believes it would be better to keep the road classified for industrial use only while mining is occurring. RDC cited safety issues and reduced short-term impacts to subsistence and trapping, as well as wetlands from ORV use. If final permits are obtained, con- struction could begin in December on the $250 million mine. The boards of Teck Cominco and Sumitomo Metal Mining Company, which own Pogo, are expected to make a final decision on whether to go ahead with the proj- ect in September. If' it proceeds, Pogo will employ up to 500 workers during a two-year construction period and about 300 during production. Pogo has a gold resource of about 5.5 million ounces. it could produce about 400,000 ounces of gold per year by late 2005. WETLANDS R'ULEMAKING AIMS FOR CLARITY IN CLEAN WATER ACT JURISDICTION (Continued from pa~e 9) ) a continual process of "~e~7,~ulatorv. creep,' allowing the Corps to extend its reach and control over vast areas of the state and neartv all of the North Slope." Alaskans expected the Court's decision to bring more clarity to the CWA definition of Waters of the United States and jurisdic- tional wetlands. Instead, local communities, industry and residents are faced with having to comply with a pro- gram that is in a greater state of flux and uncertaintv. Since · the Supreme Court ruling, various courts have applied the original decision in different ways, resulting in conflicting judicial interpre- tations that have added to the uncertaintv and confusion. And although the higher Court's ruling calls into ques- tion more than two decades of water and wetlands regula- tion, the agencies have done little to revise existing regula- tions, guidance documents ,'~nd policy statements. Despite clear direction in . _~01 trom the Supreme Court, little has changed with respect to how jurisdictional determinations are made due to continued reliance bv the . Corps and EPA staff on old policy statements and guid- ance documents. Given the high level of reg- ulatorv uncertainty, RDC stron,,lv urged the EPA and the Corps to develop clear and concise regulations to help fill the void. "We believe it can no longer be argued that the CWA confers jurisdiction over any xvater, swamp, muskeg, tundra, or wet piece of land on the basis that it has ~x mere hydrological connec- tion with navigable ~vaters," RDC said. RDC requested that tl~e definition of Waters of the United States be revised to be consistent with the Supreme Court's findings that the Clean \Vater Act grants juris- diction only over traditional "navigable waters" and re- jects jurisdiction over anv waters on the basis of having a "substantial effect" on com- lllercc. RDC also argued that the Corps should bring its policies and guidance docu- ments in line with the new jurisdictional boundaries drawn by the Supreme Court's decision. It said the current regulations are unfair to the regulated public, ineffi- cient for the regulatorv agen- cies ,'~nd provide little environmental benefit. (907) 276-0700 June 2003 Resource Review Page We put you face to face with global opportunity Since 1987, World Trade Center Alaska has helped Alaskans compete successfully for trade and investment in the global market place. Become a member and put these valuable resources to work for your company. Trade Capacity. Become export ready through information, seminars, conferences and other technical assistance. Trade Development. Receive market research that helps identify new trade opportunities. Trade Service. Develop valuable connections with overseas buyers. Trade Facility. Have local office and conference room settings available to facilitate business meetings and events. Trade Network, Gain access to facilities and support in more than 300 cities around the world. Where in the world do you want to go? Call Greg Wolf, Executive Director, at 278-7233. WORLD TRADE CENTER ALASKA 1007 VV. 3rd Ave. Anchorage, AK 9950 I www. wtcal~org ADDRESS SERVICE REQUESTED Growing Alaska Through Responsible Resource Development 121 W. Fireweed, Suite 250, Anchorage, AK 99503 ***************************** 99611 MAYOR JOHN WILLIAMS Q C QFTHE ujF~ ~ KF_NA, MAYOR PRSRT STD U.S. Postage PAID lAnchorage, AK Permit No. 377 ,Tuly 200 Vo lum¢ ;.6 ............. Issue 7 Visit us at: www.5oldotnaChamb¢~.com Email us at: info~5oldotnaChambe~.com MARKYOUR, CALENDAR Ker~i River Clo~sic ..... JIIll~ 3~-Jll~ 2 4th of ,]'uly C~lebmtion in i~nai ....................................... JIIl~ II bog Show .............................. lely 11-13.: 5oidotna Progress ~s ¢¢iebr=tion .......... JBIII 2~-JBIII 2~ 7th Annual 5oldotm Creek Celebration ..................... JBIll ~ Alaska Sportfishing Adventures Beautify Soldotna Contest Prime Kenai Riverfront Lots Progress Days Parade Form The Clean Monkey The Milepost Soldotna Inn and Mykel's oidotna Senior Center ~] Justine Poizin working for 29 Board Members and 650 members that I accepted the position of Executive Director for the Soidotna Chamber of Commerce. Through this, I've really come to appreciate the effort that goes into run- ning a Chamber and Visitor Information Center and how very fortunate I've been to be able to work with an amazing office team and a sup- portive, active board of directors. It has been through the Chamber that I've met ,.,~t's been just seven so many fantastic people and have experienced Pie Auctions, Award some pretty incredible activities. Saying an ad- Banquets, Progress equate goodbye after so many wonderful years Days and St. Patrick's is difficult, i've had the opportunity to work with Days, editing, proofing some of the most committed, dedicated and and printing of seven selfless people, and I'm taking away with me Recreation Guides and incredible memories., .exP..erience~s.,.....st?ri.e.s.a..n...d '84 newsletters, attendL insights. ing 18 trade shows, 144 My husband and I wiii be moving to Arizona Board-Meetings, 345 for a few years, as he needs to retrain after hav- Chamber lunches and ing back surgery. Although we look forward to our new experience, we know that we'll greatly miss this area...the place that we've come to call home. i look forward to eventually returning to Soldotna. I wish every one of you a safe and successful future and to all of you...THANK YOU...for the many great memories! ~'day, J~me 2~ 2003 at t~e S~ior C~tt~ jkom 6:00-8:0~m llelp IlS say g~i bye to Jusfinc Po~in, the SoidomaCh~~r'sou~~ ' Look inside for your guide to Progress Days! Board of Directors President ~ari~ara -ison .'.,'ells Fargo ~.32-4a35 President Elect Tim Pope ,Natron Air 262-8440 Vice President Dena Cunningham McDonaids 262-2221 Secretary/Treasurer Mike Frost 1st National Bank Alaska 260-6023 Dan Mortenson Four D Carpet One 262-9181 Paul Gray Exploring Alaska w/Paul Gray 262-9008 Norm Blakeley Alaska Trading and Loan 262-6100 Sammie Cole Southcentral Title Agency 262-4494 Theresa Colton ACS Wireless 260-8657 ,Jim Golden Alaska Sports Den 262-7491 Kurt Olson Individual 2604822 Jim Stogsdiil City Council Seat 262-5622 Ken Lancaster Lancaster Enterprises 262-4591 Executive Director Justine Polzin Visitor Center Coordinator Shanon Hamrick Member Service Manager Erica Williamson Bookkeeper Nita Fend Soldotna Chamber of Commerce Phone 262-9814 Fax 262-3566 River City Pull Tabs 260-6100 ~Alaska's~ SOLDoTNA a r ver cjiv $OLDOTNA PRO611ES8 DAY PROGRESS DAYS PARADE: FAMILY FUN RODEO: Chief Shirley Warner-Grand Marshal Ed and Lila Krohn-King & Queen Saturday, July 26 at 11:00 A.M. Line-up for the parade will start at 9:00 a.m. on Aspen Street. Parade applications are available at the Chamber office or on the web site at The Soidotna Equestrian Association will hold their Annual Fun Days on Saturday July 26 from 1-6p.m. and on Sunday, July 27 from 1-4p.m. at the Soldotna Rodeo Ground. Come kick up your heels! For more information, call Rhonda, Eques- trian Association at 262-7006 or Vicki at 260-6982. YeeHaw! wvvw.soldotnachamber.com. The paradewill start WE ~AVE FUN! on Marydale and head down the full length of Binkley Street. There will be fire engines, horses,. and even music, so come and join in our celebra- tion by participating or spectating...if you would like more information on how to join in the fun, please call the Chamber office at 262-9814. AFTER THE PARADE: We're having a party! Hot dogs, cotton candy, Kettle Corn, a car show, children's games, enter- tainment and a whole lot more on West Park Av- enue (by the Soidotna Senior Center). ENTERTAINMENT: "Top Cover" from Elmendorf Air Force Base CHILDREN'S ACTIVITIES: Lots of gmat stuff forthe kids! Bring the whole family to enjoy a wide range of activities for the young and the young at heart. All on West Park Ave. after the parade! And you can too... See Soldotna from the air - NATRON AIR! On Friday, July 25 and Sunday, July 27 only - Go on a 15 minute flightseeing trip over beautiful Soldotna for just $50. Call Tim at Natron Air for trip information 262-8440. oua an, svo so.s:/! U_N 0 /I Federal Credit Union* HE'RE ARE"':. O:'U'R NEW' ME:MBERS FOR JUNE New Bear Den, The,., Cindy Houser, 52573 Sec'om Ave,. KaSiiOf: (907) 262-79371:' Accommodations- Cabins Kenai. Kings inn:, Hotel. · 'i.: -'. GlendaDuniphin 10352Spur Hwy.., Kenai (907) 283~060.~. Accommodations'- Hotels/Motels Cottonwood Country ClUb, Tom Hall, Rachel:Cox/ PO Box 7097, Nikiski. (907) T76-7653: .:~:.. Golf. COurses & Driving:Ranges: .. DG: smith Builders~.,. LLc'i Susan Seville:;:' PO Box 4529, Palmer:;:.:'.' (907) 746-1493:i?i: Contractors - General: Kasilof Riverview. Hideaway Daniel & Monica Brown... PO Box 65, Kasiiof!:i (907) 398-7400:::: .. Accommodations - Bed. & Breakfasts Kenai. River Salmon Taxi Eric Loomis 397 W. Corral Ave~, Soldotna (907)260,7595:. :' :.Fishing.i. Charters: : . · Klondike.-l~abins: Andy Lovett' PO Box:.1929;. Soldotna ..... .(907) 262~6035: ACcommodaU°ns- Cabins .: :. . : Lancaster. Enterprises Ken .. Lancaster . POBox 104, Soldotna ' (907)1260.6727 Real~ Estate' Agencies' 650 Peninsula Small BuSiness Development Center.. Mark Gregory .... 43335 K Beach. Rd:. Ste. 16, Soldotna (907)262-7497 Non-Profit Organizations: Justine Polzin Individual PROCLEAN DiXieSUmmedin & Lind;rSUllivan POi Box 1684, Soldotna. (907) 262.4236 .... Janitorial'.: Services::' Term. vista . --Klm Hamilton PO. Box..907,~ Soldotna (907): 260,3723. Accommodations- Condos/Homes -2' 16th Annual Kenai Peninsula i Run 'for Women The 16th Annual Kenai Pen- Laurie Dewhurst, two year em- assistant and all around great girl, ployee of River City Puli-Tabs, will will be leaving near the end of July be leaving us and flying south, and reiocating to Minnesota to con- Laurie is trading long summer tinue her college education. days and snowy Alaskan winters We would like to thank them for for the bdght lights and sunshine their dedicated service and wish of LasVegas. them the best of luck in all their Nichole Polzin, Visitor Center future endeavors! Yearlg Membership Dues go out soon... WHY liON,W? Place your business in the Chamber Exclusive Visitor Guide- 50,000 printed, distributed and mailed all over the World. ) lign your company with Soldotna's most involved and success- ful business people-Chamber Members. [~ eceive the Chamber Connection monthly newsletter, full of great news and information. Tackle the problems businesses face using the Chamber as your business advocate. nvolve yourself with chamber activities-creates oppommities for you to market your company to other members. g ommumcate with other members at the many Chamber functions held throughout the year. n form yourself and others about the Soldotna area through our publications and reference materials. Place your business cards or rack cards in the 2nd largest visitor center, (based on membership) in the State of Alaska. Acknowledge your participation in the business community by displaying your Chamber membership plaque. ake part in building a stronger Chamber, which in mm makes a stronger commumty. g ducate your employees on the purpose of the Soldotna Chamber of Commerce and the ways it serves the area and its businesses. f '" *3* Annual Bills and Update forrns will be mailed out on Jul~v 1. Membership ~,y must be current in order for your business to receive Chamber ben- ~. Please remit yourpayment with a completed update form. Even da, v the Chamber staff answers numerous calls regarding contacting busi- nesses in our area. We need to make sure that we have received the most current contact information for your business. This information will also be placed in the Directo~ of our 2004 Recreation Guide. insula Run for Women will be held August 9, 2003 be~nning at 10 a.m. The run is spon- sored by the Women's Re- source & Crisis Center as a means of informing the community, about WRCC's services and to promote awareness of the issues sur- rounding domestic violence and sexual assault. Participants may run, walk, participate in a wheel- chair, or push a stroller in- WRCC's 5K or 10K certified race course. Rezistration forms will be available at the Women's Resource & Cri- sis Center, and various lo- cations in the community. Volunteers are needed to help set up, keep time, staff the water tables and assist in other areas. If you would like to help out on race day or prior to the race day, contact 283- 9479. Look for the flyer in this newsletter on our eauti ication onteat/ WE NEED YOUR INPUT. DAVID DOUTHIT/Vi:: ! ERANS MEMORIAL BRIDGE 2004 During the Presidency of Dwight Eisenhower, the U.S. Congress passed the Interstate Highway System act. The law provided for taxation to build north/south, east/west inter- state highways, which could be used to move large numbers of troops and equipment during times of national emergency. Alaska assigned the Sterling Highway for use of the interstate Highways funds and accord- ingly, the new Soldotna Bridge will be built with federal funds and federal guidelines for a five- lane highway. The new bridge will be a rib-- bon of traffic lanes with ten-foot pedestrian waikways on each side. Because of the concrete barrier between the road and the waikways, the actual walkways will be approximately 8.5 feet wide. By July 9th, the City of Soldotna must submit commu- nity input regarding appearance aspects of the design of the new Douthit/Veterans Bridge so that construction can begin in 2004 with completion in 2005. We have been asked to comment on 5 aspects of the bridge; 1/) South-side entrance to Soldotna, 2.) North-side exit from Soldotna, 3.) Pocket parks in the middle-sides of the bridge, 4.) Protective side ma- terial (mesh) of the bridge, and 5.) Aesthetics (banners, light- ing, monuments) on the bridge. The goal is to make the appear- ance fit with community desires to the extent possible given the location and engineering re- quirements for a sound bridge. Three sample drawings have been prepared by the State as a basis for discussion, each with a different theme. Copies are available at City Hall and the Soldotna Chamber of Com- merce, and should be avail- able on the City web site, www.ci.soldotna.ak.us/bridge/ by June 20, 2003. The City of Soldotna needs public input to be provided to the bridge designers. There will be a chamber presentation at Noon on July 1st. Please pro- vide input by attending the lun- cheon, by writing on a survey or by responding on the City's website. Thanks! $oldotna Chamber of Commerce 44790 Sterling Hwy. $oldotna, Al( 99669 City of Kenai Mayor John Williams 210 Fidalgo Ave. Kenai, AK 99611 AS "To provide enhanced success of our membership and serve as a driver in developing $oldotna's future." The 5oidotna Chamber Connection is a monthly publication of the Soldotna Cham-- bet of Commerce. This publication is sent to members and associated organizations. Call Us! Mail Us! Fax Us( Email Us( There are many ways to submff story ideas (or stories themselves): 262-9814 44790 Sterling Hwy. Soldotna, AK 99669 262-3566 info@soldotnachamber, com REACH AN AUDIENCE.'. RI6HT ZN YOUR OWN BACKYARD BATES' Business Card Size. ....................................... ......... $ 20' Full Page Insert-One a year is FREE .................. All rates are.. for one~ camera-ready advertisement for one:. issue of the Cha,,, Connection. All ads must be recieved no later than the 15th of the month, preced- ing publication~ Send your artwork' to the Chamber office or' call us at 262-9814 tbr more information! · · · -. < ? MAKE 2:4 PACKETS COUNCIL PACKET DISTRIBUTJ:ON I¢OUN¢]:L MEE~NG DATE: Mayor/Council Attorney ~/ ~Tc~¥1or/Sprin~er/Kebschull Clerk ~ City M~na~er / Public Works Police Deportment ~ Finance ~ Engineer Senior Center ~ ~irport ~ Kim Library ~ Porks & Recreation ~ Clarion Fire DeCartment t Blaine Gilmen ~ ~ellish AGENDA DISTRTBUT~ON Sewer Treatment Plant Streets Shop Dock Building/Maintenance Animal Control Water/Sewer Counter bELtVER Council Packets to Police Department Dispatch desk. The Clarion & Gilman's Office will pick their packet up at City Hall. The portion of the agenda published by the Clarion should be emailed as soon as possible after Noon on packet day. The camera-ready agenda (c:/myfiles/documents/minutes/agende form for paper) is emailed to the Pen/nsu/a ~/a~/on (at email Contacts). Home Page documents (agenda, resolutions and ordinances for public hearing) are placed in the Clerk's HTML file or emailed to the Clerk. Place them onto the city's website with Front Page from there as soon as possible before leaving the office for the weekend.