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HomeMy WebLinkAbout2004-01-07 Council PacketKenai City Council Meeting Packet January 7, 2004 AGENDA KENAI CITY COUNCIL - REGULAR MEETING JANUARY 7, 2004 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: //www.ci.kenai.ak.us 6:00 P.M. COUNCIL/STAFF MEETING 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: ITEM C: ITEM D: SCgl~-DULRD PUBLIC COMMENTS (10 minutes) REPORTS OF KPB AS*~*M~*I'-Y~ LEf~'~RL&TORS AND COUNCILS PUBLIC HEARINGS Resolution No. 2004-01 -- Supporting the Inclusion of the Kenai Peninsula Borough in the Regional Transportation Planning Organization for the Purpose of Creating an Alternative Transportation System to Serve the Cook Inlet Through the Development of a Dual-Use Vessel. Resolution No. 2004-02 -- Adopting the City of Kena/, Alaska 2004- 2005 Capital Improvement Project {CIP} Priority List for Request of State Grants. *Liquor License Renewal -- KenaJ Golf Course Card #3146 -- Restaurant/Eating Place Seasonal ITEM E: CO~M!R~ION/COMMITTEE REPORTS 2. 3. 4. 5. 6. Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission ITEM F: 1. ITEM G: ITEM H: ITEM I: ITEM J: Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention & Visitors Bureau Board c. Alaska Municipal League Report d. Kenai Chamber of Commerce e. Arctic Winter Games MINUTES *Regular Meeting of December 17, 2003. CORRESPONDENCE OLD BUSINESS NEW BUSINESS Bills to be Paid, Bills to be Ratified Purchase Orders Exceedin§ $2,500 *Ordinance No. 2032-2004 -- Increasin§ Estimated Revenues and Appropriations by $51,491 in the General Fund for a Juvenile Justice Grant From the State of Alaska to be Passed Through to the Boys and Girls Club of the Kenai Peninsula. Discussion -- Kenai Peninsula Borough Proposed Aircraft Flat Tax 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 MAYOR'S REPORT JANUARY 7, 2004 REGULAR COUNCIL MEETING SUBSTITUTE: CHANGES TO THE AGENDA Item D-2, Resolution No. 2004-02 -- Chan§e under Item 3 of the priority list. REQUESTED BY: CLERK CONSENT AGENDA MAYOR'S REPORT F- iii UJ > 3~ - Suggested by: City CITY OF KENAI RESOLUTION NO. 2004-01 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, SUPPORTING THE INCLUSION OF THE KENAI PENINSULA BOROUGH IN THE REGIONAL TRANSPORTATION PLANNING ORGANIZATION FOR THE PURPOSE OF CREATING AN ALTERNATIVE TRANSPORTATION SYSTEM TO SERVE THE COOK INLET THROUGH THE DEVELOPMENT OF A DUAL-USE VESSEL. WHEREAS, the development of a dual-use vessel is in progress to provide transportation between the Matanuska-Susitna Borough and the Municipality of Anchorage; and, WHEREAS, the dual-use vessel will also be capable of providing emergency response service in the event of an air transport accident in Cook Inlet; and, WHEREAS, the dual-use vessel will also support the construction of the Knik Arm Bridge; and, WHEREAS, the dual-use vessel could also be used as alternative transportation to serve the Cook Inlet, including Anchorage, Port MacKenzie, Goose Bay, Knik, Kenal and Homer; and, WHEREAS, project goals for this alternative transportation system include providing reliable year-round transportation service to the Cook Inlet; providing crash and rescue service to the Ted Stevens International Airport; supporting construction of the Knik Arm Bridge; and, increasing the economic diversity of the regional economy including the Kenal Peninsula Borough; and, WHEREAS, as part of the Knik Arm Crossing project, the Kenai Spur Highway will need to be lengthened from Captain Cook State Recreation Area to Point Possession at the northern tip of the Peninsula (roughly 30 miles); and, WHEREAS, it would be advantageous for the Kenai Peninsula Borough to be included in the Regional Transportation Planning Organization already developed between the Matanuska- Susitna Borough and the Municipality of Anchorage to present a united front in acquiring essential federal funding for the proposed dual-use vessel transportation system. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that it supports the inclusion of the Kenai Peninsula Borough in the Regional Transportation Planning Organization for the purpose of creating an alternative transportation system to serve the Cook Inlet through the development of a dual-use vessel. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of January, 2004. ATTEST: JOHN J. WILLIAMS, MAYOR Carol L. Freas, City Clerk clf Suggested by: Council CITY OF KENAI RESOLUTION NO. 2004-02 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADOPTING THE CITY OF KENAI, ALASKA 2004-2005 CAPITAL IMPROVEMENT PROJECT (CIP} PRIORITY LIST FOR REQUEST OF STATE GRANTS. WHEREAS, input for the 2004-2005 CIP list from the Kenai City Council, City Administration, and citizens of the City of Kenai has resulted in the attached prioritized list of CIP projects; and, WHEREAS, the Council of the City of Kenal, after receiving and analyzing the input from all sources and after discussion and deliberation, has decided to adopt the attached 2004-2005 CIP list; and, WHEREAS, the Council of the City of Kenai will utilize the attached prioritized 2004- 2005 CIP list to request funding from numerous sources, including, but not limited to, the Federal and State governments; and, WHEREAS, the Mayor and the Council of the City of Kenai pledge their affirmative vote for the maintenance and operational costs of all the City projects listed. NOW, THEREFORE, BE IT RESOLVED THAT THE COUNCIL OF THE CITY OF KENAI, ALASKA adopt the attached list entitled "City of Kenal, Request for State Grants, 2004- 2005 Capital Improvement Projects." PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of January, 2004. JOHN J. WILLIAMS, MAYOR ATTEST: Carol L. Freas, City Clerk CITY OF KENAI REQUEST FOR STATE GRANTS 2004-2005 CAPITAL IMPROVEMENT PROJECTS 1. Kenai Coastal Trail - Construction $10,000,000 2. Roads 3,000,000 3. State of Alaska Dip Net Fishery Projects 1,000,000 a. Dock Area Paving b. New Launch Ramps c. New Dock Access Road 4. Public Safety Building Improvements 35,000 5. Park Improvements a. Municipal Park Improvement 250,000 b. Leif Hansen Park Improvement 40,000 c. Cunningham Park Improvement 25,000 d. Skateboard Park Improvements 82,800 6. Fire Protection, VIP Subdivision 20,000 7. Water Supply Expansion Study 20,000 8. Public Facilities Wiring Upgrades 50,000 9. Environmental Clean-Up 300,000 TOTAL $14,822,800 Resolution No. 2003-10 Attachment SUBSTITUTE Suggested by: Council CITY OF KENAI RESOLUTION NO. 2004-02 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADOPTING THE CITY OF KENAI, ALASKA 2004-2005 CAPITAL IMPROVEMENT PROJECT (CIP) PRIORITY LIST FOR REQUEST OF STATE GRANTS. WHEREAS, input for the 2004-2005 CIP list from the Kenal City Council, City Administration, and citizens of the City of Kenal has resulted in the attached prioritized list of CIP projects; and, WHEREAS, the Council of the City of Kenai, after receiving and analyzing the input from all sources and after discussion and deliberation, has decided to adopt the attached 2004-2005 CIP list; and, WHEREAS, the Council of the City of Kenal will utilize the attached prioritized 2004- 2005 CIP list to request funding from numerous sources, including, but not limited to, the Federal and State governments; and, WHEREAS, the Mayor and the Council of the City of Kenal pledge their affirmative vote for the maintenance and operational costs of all the City projects listed. NOW, THEREFORE, BE IT RESOLVED THAT THE COUNCIL OF THE CITY OF KENAI, ALASKA adopt the attached list entitled "City of Kenal, Request for State Grants, 2004- 2005 Capital Improvement Projects." PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this seventh day of January, 2004. ATTEST: JOHN J. WILLIAMS, MAYOR Carol L. Freas, City Clerk CITY OF KENAI RE(~UEST FOR STATE GRANTS 2004-2005 CAPITAL IMPROVEMENT PROJECTS 1. Kenai Coastal Trail - Construction $10,000,000 2. Roads 3,000,000 3. State of Alaska Dip Net Fishery Projects 650,000 a. Dock Area Paving b. New Dock Access Road 4. Public Safety Building Improvements 35,000 5. Park Improvements a. Municipal Park Improvement 250,000 b. Leif Hansen Park Improvement 40,000 c. Cunningham Park Improvement 25,000 d. Skateboard Park Improvements 82,800 6. Fire Protection, VIP Subdivision 20,000 7. Water Supply Expansion Study 20,000 8. Public Facilities Wiring Upgrades 50,000 9. Environmental Clean-Up 300,000 TOTAL $14,472,800 Resolution No. 2004-02 Attachment Project 1: CITY OF KENAI REQUEST FOR STATE GRANT 2004-2005 CAPITAL IMPROVEMENT PROJECT PROJECT NAME: KENAI COASTAL TRAIL CONSTRUCTION TOTAL PROJECT COST: $10,000,000 STATE ASSISTANCE REQUESTED: 100% PROJECT DESCRIPTION & JUSTIFICATION: The Kenai Coastal Trail is a proposed multi-purpose trail that will run for approximately one mile along the base of the Kenai bluffs. The trail will begin at the Kenai Dunes Park, at the mouth of the Kenai River, and progress up the riverbank to a new trailhead and parking area located just off Bddge Access Road. The trail will provide a scenic walkway within the City of Kenai with easy, safe beach access down the bluff at several locations. A scenic estuary area will be crossed with a bridge, and periodic ramps and rest areas along the trail will provide handicapped accessibility and opportunities for wildlife viewing. In addition to its recreational benefits, the trail will provide needed relief to the City from ongoing erosion of the bluff and associated property losses. Through the years, the City of Kenai has commissioned many studies and reports for the area of the lower Kenai River. These studies include Kenai River sedimentation, dredging, bluff erosion, boat harbor, and others. In 1998, the City hired Peratrovich, Nottingham, & Drage, Inc. (PN&D) to perform a Reconnaissance Level Study for a Kenai Coastal Trail. In 1999, PN&D completed the next phase for the City and produced the "Kenai Coastal Trail aha Erosion Control Project Design Concept Report." This report included a schematic design, right-of-way property impacts, preliminary environmental considerations, and a rough project cost estimate. PN&D just completed their third contract with the City, which consisted of working on the environmental and permitting requirements of this project. Approximately $120,000 of City funds has been spent on PN&D recent work. The US Corps of Engineers was allocated $500,000 to complete the planning, engineering, and environmental studies needed to obtain the necessary permits to start construction of this project. The Corps study is schedule to be completed in July 2004 This State Grant Capital Improvement Request is for the next phase, which is the actual construction. Project 2: CITY OF KENAI REQUEST FOR STATE GRANT 2004-2005 CAPITAL IMPROVEMENT PROJECT PROJECT NAME: ROADS PROJECT COST: $3,000,000 STATE ASSISTANCE REQUESTED: 100% PROJECT DESCRIPTION: About 50 percent of the City of Kenai 65 miles of roads are not paved. Some of the paved roads were paved 20 or 30 years ago and are in bad shape. This project is for pavinq and upgrading many gravel roads such as Barabara Ddve, Ames Road, Angler Orive, and others that intersect with Beaver Loop Road and the Kenai Spur Highway. This project would also include reconstructinq and repavinq existing badly damaged paved roads such as Wildwood Drive, the roads in Mommsen Subdivision, Silver Salmon Ddve, King Salmon Ddve, and others. It would also include chip and seal reconditioning of roads such as in Woodland Subdivision, Redoubt Subdivision, Inlet View Subdivision, Central Heights Subdivision, VIP Subdivision, Old Town, and other subdivisions. Project 3: CITY OF KENAI REQUEST FOR STATE GRANT 2004-2005 CAPITAL IMPROVEMENT PROJECT NAME: STATE OF ALASKA DIP NET FISHERY PROJECTS TOTAL PROJECT COST: $650,000 STATE ASSISTANCE REQUESTED: 100% PROJECT DESCRIPTION: (See Drawing) a. DockArea Paving $350,000 This part of the project is to rebuild the Boat Launch Road and a portion of the Boating Facility parking lot, which is presently gravel. The project includes asphalt paving, parking striping, and signage. c. New or Upgrade of Dock Access Road $300,000 This part of the project is to add a new road as an exit access to the boating facility or to widen and upgrade the existing road. PROJECT JUSTIFICATION: Personal dip net fishermen from all over the state use the Boat Launch Road, Parking Lot, and Launch Ramps. Over 15,000 dip net permits for households are issued each year, and over 100,000 fish are caught in this Kenai River fishery. The City Boat Facility handles most of this fishery. This project will improve the Boating Facility operation and make it a lot cleaner. This project will greatly enhance the health and quality of life of its users. At the present time, users of the Boating Facility use staging areas that are gravel surfaced and often dirty and unsanitary. Dust in the area is a problem since dust retardants cannot be used due to the closeness to the water. Users spend time in staging areas getting their boats ready to load and unload onto their trailers and in parking. This project would definitely enhance recreational opportunities for dip net fishermen. Informational signs would also enhance the understanding of the area. At times, the line of vehicles with boats or trailers extends down Boat Launch Road almost to Bddge Access Road. This presents many problems of access on this narrow road. Users often have to exit the facility and ddve down Bridge Access Road to find a place to turn around and then back to Boat Launch Road to get in line to retrieve their boats. A new one-way exit from the facility would allow users with Di~ Net Fishery Projects Page 2 their boats to exit directly or allow vehicles with a trailer to make a loop to the line on Boat Launct~ Road to retrieve their boats. Another alternative would be to widen the ex~sting road and reroute a return. Both parts of this project are very badly needed, and they are a direct result of the heavy use of dip net fishermen. Since the dip net fishery is governed or regulated in this area by the State of Alaska, the City of Kenai is requesting funds to help relieve some of the costs caused by the impact of this fishery. That is also why this project is entitled "State of Alaska Dip Net Fishery projects." Project 4: Project 5: Project 6: Project 7: Project 8: EXPLANATION OF ADDED SMALL CAPITAL PROJECTR Public Safety Building Improvements $35,00N The majority of these funds ($25,000) would be used to improve the performance of communications equipment to reduce or eliminate the ongoing interference issues experienced by dispatchers. It has been determined by ProComm that a lack of separation between radio frequencies and aging combiner equipment, antennas, and coaxial cable (all having exceeded their useful life) necessitates an engineering solution to resolve. The remaining funds would be used to purchase 18 replacement public safety gear lockers ($5,000) and construct a safe walkway, including steps, from the back parking lot of the Public Safety Building to City Hall ($5,000). Park Improvements (a) $250,000: (b) $40,000; (c) $25,000: (d) $82,80N The Municipal Park improvement plan ($250,000) includes one large pavilion, kiosk/signs; 6 handicap accessible picnic tables, 14 standard picnic tables; benches and trash receptacles; 6 accessible BBQ pits and 14 standard pits; 3,600 linear feet of trail upgrade; 31,350 sq. ft. picnic areas; 20 car parking lot; gates; landscaping; engineering. (b) The Leif Hansen Park improvement plan ($40,000) includes the engineering, design, and installation of an underground sprinkler system. (c) The Cunningham Park plan ($25,000) includes both new and replacement benches and trash receptacles. (d) Skateboard park improvements ($82,800) includes ramp equipment and park signage. Fire Protection, VIP Subdivision $20,00~) This project would provide a dependable water supply for fire protection in the VIP Subdivision, which is located across the Kenai River estuary over the Bridge Access road. The VIP subdivision is not connected to city water and, therefore, fire protection is now provided by shuttling water from hydrants located on the opposite side of the Bddge. Providing a reliable non-potable water supply would include a well and possibly a fire pump and a hydrant. Water Suo=lv Expansion Study $20,000 This study would research and analyze the cost and feasibility of obtaining and utilizing the existing water system at the vacant Wards Cove cannery. There are three wells at the Wards Cove site, producing in excess of 750 gpm, and a 60,000 gallon cistern. The study would examine water potability, the value of the water system, the creation of a hydrant system for the VIP subdivision, and how the City might establish a metering system for domestic and cannery use. Public Facilities Wiring Upgrades $50~00il The quality of communications cabling in several public facilities is very poor and does not meet computer networking and data transfer requirements and standards; the current standard is Cat 5e and older public buildings were not constructed at that standard. Project 9: Environmental Clean-Up $300,000 9Environmental investigation of the City public works area has revealed the need to perform environmental clean-up on the prooerty which was contaminated due to its use many years ago as a road oil storage pit: there are buried drums on the property. The project will require the removal of soil and other items with associated treatment and/or disposal. A sewer main extension into the yard area will also be needed, with connections to floor drains and restrooms, as well as the proper abandonment of old leach pits. Further soil and groundwater testing and monitored will also be required. This project could easily be completed into three separate phases at approximately $100,00 for each phase. (' ~,~. ^ 144 N. BINKLEY , SOLDOTNA, ALASKA . 99669-7599 · ~"%"'¥ ~;~'~'-.. BUSINESS (907) 262-8608 FAX f907) 262-8615 ' ',...~., ,,~ .~'~ '~ EMAIL: assemblyclerk @ boroug h.kenai.ak.us December 29, 2003 LINDA MURPHY, MMC BOROUGH CLERK Ms. Dawn Holland-Williams Records & Licensing Supervisor Alcoholic Beverage Control Board 550 W. 7th Avenue Anchorage, AK 99501-6698 Re: Application for Renewal of Liquor License Dear Ms. Holland-Williams: Please be advised that the Kenai Peninsula Borough has no objection to the approval of the application(s) for renewal of the liquor license(s) for the following establishment(s), located in the City of Kenai, Alaska: Restaurant / Eating Place Seasonal Kenai Golf Course Cafe - #3146 The Kenai Peninsula Borough Finance Department has reviewed its files and has raised no objection based on unpaid or delinquent taxes. Sincerely, Linda S. Murphy, MMC Borough Clerk cc; applicant City of Kenai KPB Finance Department File Carol Freas Page 1 of 3 From: Reeda Jaramillo [reeda_iaramillo@dps.state.ak.us] Sent: Thursday, December 18, 2003 11:00 AM To: Carol Freas Cc: Sue Ellen Essert Subject: Renewal Notification - Kenai Dear Local Governing Body: We have received the following application(s) for renewal of liquor license(s) within your jurisdiction. You are being notified as required by AS 04.11.520. Additional information concerning filing a "protest" by a local governing body under AS 04.11.480 is included below. 2004-2005 Type: License: Location: Owner: Agent: Phone: Restaurant/Eating Place Seasonal Kenai Gold Course Cafe #3146 1420 Lawton Dr. Kenai Golf Course Inc. C.R. Baldwin 907-283-7500 Mailing Address: P O Box 1101 Kenai AK 99611 We have received application (see attached notice) for a liquor license(s) within your jurisdiction. This is the notice as required under AS 04.11.520. Additional information concerning filing a "protest" by a local governing body under AS 04.11.480 is included in this letter. A local governing body as defined under AS 04.21.080(11) may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the board and the applicant with a clear and concise written statement of reasons in support of a protest within 60 days of receipt of this notice. Ifa protest is filed, the board will not approve the application unless it finds that the protest is "arbitrary, capricious and unreasonable". Instead, in accordance with AS 04.11.510(b), the board will notify the applicant that the application is denied for reasons stated in the 12/18/2003 KENAI AIRPORT COMMISSION DECEMBER 11, 2003 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. AGENDA ITEM 1: ITEM 2: ITEM 3: ITEM 4: ITEM 5: ITEM 6: ITEM 7: a. b. C. ITEM 8: ITEM 9: ITEM 10: ITEM 11: CALL TO ORDER AND ROLL CALL AGENDA APPROVAL APPROVAL OF MEETING SUMMARY a. October 9, 2003 meeting of Airport Commission b. 11/13/03 Airport Commission/City Council Work Session Notes PERSONS SCHEDULED TO BE HEA]~n OLD BUSINESS a. Discussion--KPB Fiat Tax of Aircraft NEW BUSINESS a. Discussion--Proposed Airport Improvements REPORT Commission Chair Airport Manager City Council Liaison COMMISSIONER COMMENTS AND/~,UESTION,~ PERSONS NOT SCHEDULED TO BE HEA~r~ INFORMATION ITEMS Kenai City Council Meetin§ Action A§endas for November 5 and 19, 2003 and December 3, 2003. Monthly Passen§er Enplanement Activity Report Ordinance 2028-2003 passed by City Council 12/3/03. Request to Council for Approval of Design Build--Approved by Council 12/3/03. ADJOURNMENT KENAI AIRPORT COMMISSION DECEMBER 11, 2003 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING MEETING SUM___~MARY ITEM 1: CALL TO ORDER AND ROLL CALL The meeting was called to order at approximately 7:03 p.m. by Chair Henry Knackstedt. The roi1 was confirmed as follows: Commissioners Present: Commissioners Absent: Others Present: ITEM 2: J. Zirul (arriving at 7:05 p.m.), H. Knackstedt, C. Versaw, D. Haralson, and J. Watkins J. Bielefeld Council Member Joe Moore and Airport Manager Cronkhite AGENDA___APPROVAL MOTION: Commissioner Watkins MOVED to approve the agenda as presented and Commissioner Versaw SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: MOTION: APPROVAL OF MEETING SUMMARY October 9, 2003 meeting of Airport Commission 11/13/03 Airport Commission/City Council Work Session Notes Commissioner Haralson MOVED to approve the November 13, 2003 Work Session Notes and October 9, 2003 meeting summary with an amendment to the summary removing the last sentence in Item 5-b ("Additional traffic pattern information was requested."}. Commissioner Zirul SECONDED the motion. There were no objections. SO ORDERED. I_TEM 4: pERSONS SCHEDULED TO BE HEA~ -- None. BREAK TAKEN: 7:10 P.M. BACK TO ORDER: 7:30 P.M. ITEM 5: OLD BUSINESS 5-a. Discussion -- KPB Flat Tax of Aircraft Knacksted reviewed the information included in the packet relating to the Kenai Peninsula Borough's proposed ordinance for a fiat tax. He noted he had discussed the issue with several Borough personnel. Commissioner Versaw suggested the Borough fiat tax should be a pass-through to the City. Commissioner Haralson made two points: 1) This would add tax to aircraft in Kenai and would not level the playing field, i.e. $75.00 would go to the Borough on top of the mill rate ad valour tax that goes to the City. 2) The financial impact statement (included in the packet) appeared to include commercial aircraft and he did not think the numbers indicated were correct. Knackstedt reported the Borough Assembly would hold a public hearing on the issue at their December 16 meeting and again for final consideration in danuary. If passed, the ordinance would become effective as of January 2004. MOTION: Commissioner Haralson MOVED to recommend the City of Kenai support a flat tax that is passed through to the cities that adopt a similar fiat tax and the ordinance effective date be changed to January 1, 2005 and that the City work with the Borough to ensure that the Borough would not be doubling the fiat tax. Commissioner Versaw SECONDED the motion. There were no objections. SO ORDERED. BREAK TAKEN: 8:20 P.M. BACK TO ORDER: 8:32 P.M. ITEM 6: NEW BUSINESS Discussion -- Proposed Airport Improvements Airport Manager Cronk.hite reviewed the information included in the packet related to the proposed airport improvements. MOTION: Commissioner Haralson MOVED to recommend the city provide access to Lots 6 and 7 and have the design done for Lots 8 and 9 as an additive alternate. Commissioner Zirul SECONDED the motion. There were no objections. SO ORDERED. ITEM 7: REPORT 7-a. Commission Chair -- Commissioner Knackstedt reported an aviation safety group has expressed interest in placing a $125,000/light simulator at the Kenai Airport. Local pilots could use it for free and it would attract pilots from all over to the airport. More information will be gathered. AIRPORT COMMISSION MEETING DECEMBER 11, 2003 PAGE 2 7-b. Airport Manager -- Airport Manager Cronk. hite reviewed the information included in the packet relating to the security camera project and explained the design/build concept. discussions. Shearer. government Commerce. session. City Council Liaison -- Council Member Moore reported the following: Additional information relating to the design/build project and council's Council has been requested to name the softball field complex for Steve Re-appropriation of funds for use at the city dock. The Council received an audit report from Mikunda Cottrell. An off-airport rental car ordinance was passed by council. The economic strategy group to be made up of local business and representatives will be developed through the Kenai Chamber of Reviewed discussions held with area legislators at their December 3 work ITEM 8: COMMISSIONER COMMENTS AND QUESTION,~ Haralson -- Commented on the following: · Vandalism and the need for security cameras at the airport. · The federai government will do a study relating to privatization of jobs. · By 2004 a contract will be announced on the use of private contractors to do the work of flight service stations in the lower 48, not Alaska. There could be impacts to the Kenai flight Service Station. ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD ITEM 10: INFORMATION ITEMS 10-a. 10-b. 10-c. 10-d. Kenai City Council Meeting Action Agendas for November 5 and 19, 2003 and December 3, 2003. Monthly Passenger Enplanement Activity Report Ordinance 2028~2003 passed by City Council 12/3/03. Request to Council for Approval of Design Build--Approved by Council 12/3/03. ITEM 11: ADJOURNMENT MOTION: Commissioner Haralson MOVED to adjourn and Commissioner Zirul SECONDED the motion. There were no objections. SO ORDERED. AIRPORT COMMISSION MEETING DECEMBER 11, 2003 PAGE 3 The meeting adjourned at approximately 9:40 p.m. Meeting Summary prepared by: Carol L. Freas, City Clerk AIRPORT COMMISSION MEETING DECEMBER 11, 2003 PAGE 4 CITY OF KENAI PLANNING & ZONING COMMISSION AGENDA CITY COUNCIL CHAMBERS December 10, 2003 - 7:00 p.m. 1. CALL TO ORDER: a. Roll Call b. Agenda Approval c. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion o£ these items unless a Commission 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 o£the General Orders. 2. *APPROVAL OF MINUTES: a. *November 12, 2003 3. SCHEDULED PUBLIC COMMENT: 4. CONSIDERATION OF PLATS: PUBLIC HEARINGS: a. PZ03-49--An application for a Conditional Use Permit for a daycare for the property known as Lot 12, Block 3, VIP Ranch Estates Subdivision Part 1(2730 VIP Drive), Kenai, Alaska. Application submitted by Linda L. Campanella dba Lil'Britches Daycare, 2730 VIP Drive, Kenai, Alaska. b. PZ03-50~A resolution of the Planning and Zoning Commission o f the City of Kenai, Alaska, recommending to the Council of the City of Kenai, Alaska that Title 14 of the Kenai Zoning Code be amended by adopting KMC 14.20.175 for the regulation of adult- oriented businesses. 6. OLD BUSINESS: 7. NEW BUSINESS: 8. PENDING ITEMS: 9. CODE ENFORCEMENT: 10. REPORTS: a. City Council b. Borough Planning c. Administration 11. PERSONS PRESENT NOT SCHEDULED: Agenda December 10, 2003 12. INFORMATION ITEMS: a. Zoning Bulletin (10/25, 11/10 & 11/25/03) b. Planning & Zoning 2004 Meeting Schedule 13. COMMISSION COMMENTS & QUESTIONS: 14. ADJOURNMENT: Page 2 CITY OF KENAI PLANNING & ZONING COMMISSION CITY COUNCIL CHAMBERS DECEMBER 10, 2003 - 7:00 P.M. CHAIR RON GOECKE, PRESIDING MINUTES ITEM 1: CALL TO ORDER Chairman Goecke called the meeting to order at 7:00 p.m. 1-a. Roll Call Roll was confirmed as follows: Commissioners Present: Commissioners Absent: Others Present: N. Amen, C. Glick, R. Goecke, P. Bryson, J. Barrett, and J. Hammelman B. Eldridge Council Member Ross, City Clerk Freas, City Planner Kebschull and Public Works Assistant Carver MOTION: Agenda Approval Commissioner Bryson MOVED to approve the agenda, incorporating the information added as Item 12c (Kenai Landing Boat Launch Application/Kenai River Center and additional information to Item 5a regarding Carnpanella Conditional Use Permit Application) and requested UNANIMOUS CONSENT. Commissioner Amen SECONDED the motion. There were no objections. SO ORDERED. Consent Agenda MOTION: Commissioner Amen MOVED for approval of the consent agenda and requested UNANIMOUS CONSENT. Commissioner Hammelman SECONDED the motion. There were no objections. SO ORDERED. ITEM 2: APPROVAL OF MINUTES -~ November 12, 2003 Approved by consent agenda. ITEM 3: ITEM 4: ITEM 5: SCHEDULED PUBLIC COMMENT -- None. CONSIDERATION OF PLATS -- None. PUBLIC HEARINGS PZ03-49--An application for a Conditional Use Permit for a davcare for the property known as Lot 12, Block 3, VIP Ranch Estates Sub'division Part 1(2730 VIP Drive), Kenai, Alaska. Application submitted by Linda L. Campanella dba Lil' Britches Daycare, 2730 VIP Drive, Kenai, Alaska. MOTION: Commissioner Bryson MOVED for approval of PZ03-49 and Commissioner Glick SECONDED the motion. The public hearing was opened. Linda Campanella, 2730 VIP Drive, Kenai -~ Campanella explained she had been in business since 2000; is open Monday through Friday usually from 6:45 a.m. to 6:15 p.m.; she has never received any complaints from neighbors; she is in compliance w/th the State requirements; the State allows her 12 children and the city eight and she has no more than eight children in the facility at one time, though there could be 12 different children during the day. Campanella also noted there were adequate park/ng spaces available. The public hearing was closed. City Planner Kebschull referred to the information added at the beginning of the meeting which noted only one complaint was received from one neighbor and there were some concerns regarding junk vehicles and the required public hearing sign which had not been visible. Commissioner Bryson stated he voted against an application for a Conditional Use Permit in Woodland Subdivision because he considered parking to be an issue and there was a concern voiced by a neighbor. In this case, however, he stated he would support the resolution because he did not think parking was an issue and there will be insignificant effects to the neighbors. Bryson asked Kebschull if administration felt the issue should be postponed due to the lack of visibility of the sign. Kebschull answered she did not think that would be necessary. She noted, the Carver memorandum (added to the agenda) indicated the applicant had placed the sign in a visible place but it then it snowed and it was no longer visible; the sign was moved to another site and the wind blew it away, etc. Kebschull added, the sign had been posted for a longer time than required and notices were mailed to the adjoining property owners. Commissioner Amen asked if Kebschull felt there were any reasons not to support the applicant and she answered, there were no complaints relating to the day care, however the neighbor asked that a fence be required to be built between the properties. She added, there had not been any complaints prior to the notice in the PLANNING & ZONING COMMISSION MEETING DECEMBER 10, 2003 PAGE 2 mall. The neighbor was unaware there was a day care in the residence since 2002. Kebschull also noted the City Attorney was made aware of the posting problems and advised the Commission had the option to defer or deny the application. VOTE: Eldridge Absent Goecke Yes Hammelman Yes Anlen Bryson No Glick Yes Yes Barrett Yes MOTION PASSED. Goecke advised an appeal could be filed within 15 days with the City Clerk. PZO3-50--A resolution of the Planning and Zoning Commission of the City of Kenai, Alaska, recommending to the Council of the City of Kenal, Alaska that Title 14 of the Kenal Zoning Code be amended by adopting KMC 14.20.175 for the regulation of adult-oriented businesses. MOTION: Commissioner Glick MOVED for approval of PZ03-50 and Commissioner Amen SECONDED the motion. There were no public comments. Kebschull reported the ordinance had been developed for the city to be proactive as there was currently nothing in the code to place regulations on adult-oriented businesses. Commissioner Barrett stated he felt these types of businesses should be zoned properly, however he believed some of the requirements were overly onerous and presuming guilt before the fact, i.e. fmgerprinting, etc. He added his concerns with the first, fourth and fifth whereas paragraphs and said he didn't feel the government should be legislating morality. Commissioner Amen agreed the document is harsh, however he was in support of it as it would deter development of these types of businesses in town. He also noted concern with Page 1 of 6, #5 and questioned whether this definition could be used to restrict the current theatres in town. Amen added, he was supportive of keeping the integrity of the residential areas and felt it was appropriate to protect the residences of the citizens. Kebschull stated she agreed with Amen's comments regarding theatres and felt it should be amended. Barrett noted, the ordinance could also deter touring or visiting PLANNING & ZONING COMMISSION MEETING DECEMBER 10, 2003 PAGE 3 adult entertainment that are legitimate businesses. Kebschull noted Barrett had discussed his concerns with her during a telephone conversation and she passed on the concerns with the city attorney who suggested the Commission review the ordinance and then table it with a recommendation of the areas of concern. He would then review and revise the ordinance and return it to the Commission. Commissioner Glick stated he had only concerns with #5 on Page 1 of 6 and added, the Commission needed to have rules in place for guidelines if an application comes before them. He added, he had no objections to the ordinance being strict. Bryson suggested a work session would be appropriate with the city attorney present in order for them to discuss the ordinance further. Consensus of the Commission was to hold a work session on the ordinance. Kebschull was requested to discuss the matter with the city attorney and schedule a work session to fit the Commission's and attorney's schedule. Amen suggested immediately following their January 14 meeting as he would be absent for the January 28 meeting. MOTION: Commissioner Bryson MOVED to continue the item until it is brought back by staff and Commissioner Amen SECONDED the motion. There were no objections. SO ORDERED. Goecke noted the four government students in the audience and present for the meeting. ITEM 6: ITEM 7: ITEM 8: ITEM 9: OLD BUSINESS -- None. NEW BUSINESS -- None. PENDING ITEMS -- None. CODE ENFORCEMENT -- None. ITEM 10: REPORTS 10-a. City Council -- Council Member Ross reviewed the December 3 action agenda included in the packet, noting an off-airport car rental ordinance was passed; an ordinance setting an economic strategy commission failed and will be handled through the Kenal Chamber; and a transfer was approved to purchase a replacement computer system for the library. PLANNING & ZONING COMMISSION MEETING DECEMBER 10, 2003 PAGE 4 Amen asked if there had yet been an indication of the fiscal impact from the Kmart closing and Ross noted the loss of sales tax revenue had not been as significant as anticipated. 10-b. Borough Planning -- Commissioner Bryson reviewed the Borough Planning Commission agendas for the November 24 and December 8 meetings and discussed actions taken. 10-c. Administration -- Kebschull noted the following: · Information Item 12c, added to the agenda, was a copy of Kenai Landing's Kenai River Center application for a boat launch. She noted, she would be attending a site visit on December 15. Kebschull also reported the Commission would be able to provide comments to the River Center and the Borough Planning Commission in January. · The Forestry Service recently requested a ten-year extension to their lease, however after receiving an engineer's estimate and learning the cost would be more, they requested the lease extension to be changed from ten to 18 years. She noted, the cost and value meet the state standards and the Airport Commission and Council will be notified. If there are no objections, the lease will be modified. ITEM 11: ITEM 12: 12-a. 12-b. ITEM 13: PERSONS PRESENT NOT SCHEDULED --None. INFORMATION ITEMS Zoning Bulletin (10/25, 11/10 & 11/25/03) Planning & Zoning 2004 Meeting Schedule COMMISSION COMMENTS a, QUESTIONS The commissioners wished one another happy holidays. ITEM 14: ADJOURNMENT MOTION: Commissioner Barrett MOVED to adjourn and Commissioner Bryson SECONDED the motion. There were no objections. SO ORDERED. The meeting adjourned at approximately 7:45 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk PLANNING & ZONING COMMISSION MEETING DECEMBER 10, 2003 PAGE 5 Kenai Peninsula Arctic Winter Games 2006 Host Society Annual Board Meeting December 11, 2003 - 5:30 p.m. Arctic Winter Games Office, Kenai, Alaska A. CALL TO ORDER B. ROLL CALL C. APPROVAL OF AGENDA D. APPROVAL OF MINUTES Regular Meeting Agenda Board of Directors - November 13, 2003 Board of Directors - Special meeting November 20, 2003 PUBLIC COMMENTS/PRESENTATIONS Peninsula Winter Games GENERAL MANAGER REPORT Executive Committee Report - Two Handouts November 25th meeting - Approve AWG Travel list December 9th meeting - Committee Chairs and Co Chair assignments G. ELECTION OF OFFICIERS TREASURER'S REPORT Balance Sheet- Handout Profit & Loss - Handout COMMITTEE REPORTS 1. Administration 2. Care & Comfort 3. Ceremonies & Culture 4. Information Technology 5. Marketing 6. Revenue Development 7. Sports 8. Sports Facilities 9. Volunteer Protocol J. OLD BUSINESS NEW BUSINESS 1. Resolution for Peninsula Winter Games 2. Approval of Connie Wirz as Salamatoff representative to the board 3. By- Law Change - Handout (Committee Change) 4. Review revised 2003 budget - Handout 5. Review 2004 draft budget - Handout 6. Committee and Sub Committee Chair Recommendation - Handout 7. Logo-Handout 8. Games Wear proposal - Mark Gregory 9. Approve Mr. Gease resignation from the AWG board of directors 10. Approve Ms. Cunningham resignation from the AWG board of directors 11. Approve General Manager's contract 12. Approve Dale Bagley's resignation as acting General Manager 13. Motion to make total number of board members 22 instead of 24 PENDING BUSINESS (Informational only) Agenda Proposal - Mark Gregory BOARD MEMBERS COMMENTS N. PUBLIC COMMENTS NOTICE OF NEXT MEETING and ADJOURNMENT Next meeting January 8, 2004 Kenai Peninsula Arctic Winter Games 2006 Host Society Minutes November 13, 2003 - 5:30 p.m. Arctic Winter Games Office, Kenai, Alaska Regular Meeting CALL TO ORDER Meeting called to order at 5:38 p.m. ROLL CALL Dale Bagley Donna Peterson Bill Popp Joe Moore Jennifer Beckman Jack Brown Colette Thompson Bob Jones Ricky Gease Dena Cunningham Becky Foster Kathy Gensel Andrew Carmichael Pam Howard Mark Gregory Deb Holle Gary Hale Allan Miller Tim Navarre ABSENT - Jack Cushing, Dave Carey, Rosalie Tepp, Pete Sprague APPROVAL OF AGENDA Mr. Popp moved to approve the agenda. Mr. Brown seconded it. President Bagley made one change to the agenda moving Mr. Gregory to the first of old business. Passed unanimously. APPROVAL OF MINUTES Mr. Brown moved to accept the minutes of the October 9, 2003 meeting. Ms. Thompson seconded it. Passed unanimously. GENERAL MANAGER REPORT President Bagley informed the board that two of our three candidates for the general manager position are in attendance. They are Kevin DuCharme and Loren Smith. Executive Committee Report - Terri Nettles distributed three Executive Committee reports to the Board. Board of Directors insurance has been secured and we have a company that has committed to providing insurance for our board. AWG 2004 - The four people who went to Wood Buffalo discussed what they learned during their visit. They met with the Arctic Winter Games International Committee, the Wood Buffalo Host Society and the Chef de Missions. They have a better understanding of the role our representatives will have when they go to Wood Buffalo for the 2004 games. Mr. Carmichael felt that we are way ahead in our facilities. His only concern was in the area of curling facilities. Ms. Peterson agreed with what Mr. Carmichael had to say. She also brought back all the job descriptions that Wood Buffalo is using for their volunteer staffpositions. Ms. Peterson mentioned that the International Committee cautioned the Wood Buffalo Host Society about not going too big that it xvould be hard for the next Host Society to match or top. She feels it is important that we do not downsize things to make it easier for the next group. Mr. Brown shared that he felt they had chosen the fight committee representatives to go to this meeting. The major focus of the meetings were in the areas of administration, care and comfort, sports and volunteers. He also shared that the presentations at this meeting were done by the volunteer chairs, not by the paid staff. President Bagley said that the caution referred to by Ms. Peterson was mainly referring to the Opening ceremonies that Wood Buffalo would like to do. PUBLIC COMMENTS/PRESENTATIONS TREASURER'S REPORT Balance Sheet- Handout Profit & Loss - Handout COMMITTEE REPORTS 1. Administration - 501 (C) 3 Status - Ms. Thompson informed the board that we are close to receiving our 501(c) 3 status. We flied the application and requested expedited service. The IRS notified us that there was a thirty-day hold on the account until our check had cleared. The check has cleared and Ms. Thompson is working with the IRS to remove the hold from our account. Ms. Thompson has been told that we should have our status no later than Dec. 6th. 2. Care & Comfort- Ms. Peterson feels she now understand the structure of her committee. She also feels that every committee needs to have two people not .just one to oversee it. Her committee will begin meeting in January on a monthly basis. She also feels it is very important that everyone check their egos and keep in mind what the Games are about. The representatives from her committee will be going to Wood Buffalo before the games begin. 3. Ceremonies & Culture - Mr. Gease shared that they have organized their subcommittees. Also, Mr. Gease will be stepping down as the chair of the culture and ceremonies committee. Information Technology- Mr. Jones reported that they are in the process of installing the connection between Kenai Central High and the AWG office. Mr. Jones is estimating that it will be two weeks before we can get the connection to the AWG office completed. Marketing- Mr. Gregory reported that his committee had been looking into video production with Paul Gray, but had put it on hold till we have more staff. He feels that they need more information on what has already been produced and to slow down and make sure that the Marketing Committee is heading in the right direction. He would really like to see the Marketing Manager come on sooner than originally planned. Revenue Development- Mr. Popp handed out a fundraising activities tracking chart. He will be updating this on a monthly basis and handing out the update chart at each board meeting. Mr. Popp urged the board to make a donation to the Arctic Winter Games organization. He feels it is very important that we are all invested in the Arctic Winter Games. Mr. Popp made the motion to accept a $100,000 donation from the Aspen hotel. Mr. Brown seconded it. Passed unanimously. See handout for details concerning this donation. (handout) Mr. Popp reported that he expects money from Wells Fargo by the next board meeting. He also reported to the board that a mutual agreement with Tsalteshi Trails Association would be used for temporary 501 (c) 3 if needed. 7. Sports - Mr. Miller has been out looking at the trails and biathlon. The biathlon facility needs development. 8. Sports Facilities - Mr. Carmichael is waiting to hear where we are with the Federal funding to determine what changes will be made to the facilities. Volunteer Protocol- Mr. Brown reported that his next committee meeting would be Nov. 19th at his office at 5:00pm. If anyone is interested in volunteering with the Peninsula Winter games please contact Mr. Brown. OLD BUSINESS Mr. Gregory talked about the agenda proposal - he feels that the proposed agenda would help the board to use their time more efficiently. He believes that by eliminating the committee reports from the agenda the board would save a lot of time. He would like to see the committee reports prepared prior to the meeting and distributed to the board of directors to be read before the meeting. If they require board action then they would be placed on the agenda to be discussed by the board. President Bagley said he would like to discuss this further with Mr. Gregory and would also like to get input from the General Manager before taking any action. Executive meeting -Mr. Popp made the motion to move the executive board meeting from the third Thursday of every month to the fourth Thursday. Ms. Thompson seconded it. Passed unanimously Logo update - President Bagley informed the board that the International Committee has not completed the changes they are making to the logo. Mr.. Brown will contact Jerry Thick to check on the status of the logo. 4. Lease Agreement for Arctic Winter Games office space - Handout NEW BUSINESS 1. Hiring committee report a. Hiring committee meeting Saturday, November 15th at 12:30 at Prism 1st interview 1:00 P.M., 2:30 P.M., 4:00 P.M. b. Motion for special meeting on November 20th c. Hiring committee to stay to after meeting to approve interview questions. Mr. Brown made the motion for a special meeting on November 20th to approve the General Manager recommendation from the hiring committee. Ms. Beckman seconded it. Passed unanimously. Review revised 2003 budget put on hold until next meeting. Review 2004 draft budget - according to bylaws the 2204 budget must be submitted to the board by the November meeting. Mr. Popp moved to introduce the budget and Ms. Holle seconded it. Passed unanimously. President Bagley informed the board that discussion could take place between now and the December meeting. Passed unanimously. Mr. Brown moved to table acceptance of the budget until the December I 1 th meeting. Ms. Beckman seconded it. Passed unanimously. Approve the process for hiring Sports Director - Mr. Popp made the motion to approve the process for hiring the Sports Manager. Mr. Brown seconded it. It was passed unanimously. Approve Wood Buffalo Travel Recommendation - handout Mr. Brown made the motion to approve the Executive Board's recommendation including all the positions on the list down to the media section and granting the authority to the Executive Board to make any necessary changes. Mr. Popp seconded it. Amended by Mr. Popp to include the number tickets paid for by AWG to 36 tickets. Mr. Carmichael seconded it. Mr. Brown's motion was passed unanimously as amended. Arctic Winter Games office copier - Mr. Popp made the motion that the AWG purchase a copier from the KPB available for $1.00. This copier is from the CEDD office and it is at the end of its lease agreement and available to purchase. Ms. Beckman seconded it. Passed unanimously. Mr. Miller donated a dollar for the purchase of the copier. Amendment to purchasing code (email or phone) no discussion Employee holiday schedule President Bagley distributed a proposed employee holiday and vacation schedule to the Board. Ms. Beckman made the motion to approve the employee holiday and vacation schedule. Ms. Cunningham seconded it. Passed unanimously K. PENDING BUSINESS (Informational only) BOARD MEMBERS COMMENTS Ms. Peterson made the motion to make Sam Stewart her alternate on the board of directors. Mr. Popp seconded it. Passed unanimously. Mr. Popp reminded the board of the mission statement, and looks forward to seeing everyone on the contributors list at the next meeting. Mr. Popp talked about the Peninsula Winter Games and financially supporting them. Mr. Brown discussed Mr. Gregory's proposal to change the agenda for the board meetings. He felt that this is not really the time for Mr. Gregory's change. He would like to continue to hear the committee reports. Also he reported that there were numerous items for sale in the Arctic Winter Games Store he was in at Wood Buffalo. He discussed the possibility of contracting with local stores to sell AWG 2006 merchandise. Ms. Gensel appreciated the feedback from the four people who went to Wood Buffalo and agrees with them that we shouldn't hold back on our efforts for the AWG2006. Ms. Holle had some questions concerning the financial reports. Mr. Navarre discussed Ms. Peterson's suggestion about having two people involved in chairing the committees and subcommittees PUBLIC COMMENTS Mr. Smith commented that there is a lot to do and you are doing a good job Mr. DuCharme said he could relate and felt that he was familiar with things. NOTICE OF NEXT MEETING and ADJOURNMENT Special meeting November 20th, 5:30 p.m. at PRISM (General Manager) Meeting dismissed at 7:40 AGENDA KENAI CITY COUNCIL - REGULAR MEETING DECEMBER 17, 2003 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: / / www.ci.kenai.ak.u s 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 ~vill be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: ITEM C: ITEM D: SCHEDULED PUBLIC COMMENTS (10 minutes) REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNClI~ PUBLIC HEARINGS Resolution No. 2003-55 -- Requesting the Remaining Funds of State of Alaska, Department of Community and Economic Development Grant #8/00-001 be Reappropriated to the City of Kenai Maintenance Shop Site Remediation Project. Resolution No. 2003-56 -- Setting the Time and Place for a Public Hearing on the Basin View Subdivision Special Assessment District (Dolchok Lane, Kim-N-Ang Court, and Cub Court). Resolution No. 2003-57 -- Setting the Time and Place for a Public Hearing on the Schooner Circle Special Assessment District. Resolution No. 2003-58 -- Setting the Time and Place for a Public Hearing on the Pillars Special Assessment District {Chinook Drive and Sockeye Circle). Resolution No. 2003-59 -- Setting the Time and Place for a Public Hear/ng on the Toyon Way Special Assessment District. Resolution No. 2003-60 -- Transferring $4,000 in the Comprehensive Plan Capital Project Fund for Plan Document Printing. ITEM 5. 6. 7. ITEM F: 1. 2. ITEM G: ITEM H: i. ITEM I: 1. 2. 3. ITEM J: Resolution No. 2003-61 -- Transferring $5,000 in the Multipurpose Facility Capital Project Fund for Construction and Installation of Utilities in the Storage Room. *Liquor License Renewal -- George's Casino Bar -- Beverage Dispensary. COMMISSION/COMMITTEE REPORT~ Council on Aging Airport Commission Harbor Commission 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. Kenal Chamber of Commerce e. Arctic Winter Games MINUTES *Regular Meeting of December 3, 2003. *December 3, 2003 Work Session Notes. CORRESPONDENCE OLD BUSINESS Approval -- Request and Si~n Naming Softball Complex in Honor of Steve Shearer. NEW BUSINESS Bills to be Paid, Bills to be Ratified Purchase Orders Exceeding $2,500 Approval -- a. Airport Taxiway Improvements/Access to Lots 6 & 7, Block 5, General Aviation Apron (Ron's Rent-It Service) b. Consent to Sublease/From Ron Swanson to Federal Express Corporation/Lots 6 & 7, Block 5, General Aviation Apron Discussion -- Potential Conceptual Drawings for Improvements to the Multipurpose Facility for the Arctic Winter Games. REPORT OF THE MAYOR ITEM K: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk DISCUSSION ITEM L: 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION - None Scheduled ITEM M: ADJOURNMENT KENAI CITY COUNCIL - REGULAR MEETING DECEMBER 17, 2003 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: / / www.ci.kenai.ak.u s MAYOR JOHN J. WILLIAMS, PRESIDING MINUTES ITEM A: CALL TO ORDER Mayor Williams called the meeting to order at approximately 7:01 p.m. in the Council Chambers in the Kenai City Hall Building. PLEDGE OF ALLEGIANCE Mayor Williams led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Pat Porter John J. Williams, Mayor Joe Moore Blame Gilman Jim Bookey, Vice Mayor Rick Ross Linda Swarner AGENDA APPROVAL Mayor Williams requested the following changes to the agenda: SUBSTITUTE: Item D-l, Resolution No. 2003-55 -- Change in last "whereas" removing 'ADEC.' MOTION: Council Member Bookey MOVED to approve the agenda as amended and Councilwoman Swarner SECONDED the motion. There were no objections. SO ORDERED. A-4o CONSENT AGENDA MOTION: Council Member Bookey MOVED to approve the consent agenda as presented and Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMM~.NTS -- None. KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 2 ITEM C: -- None. ITEM D: D-1. REPORTS OF KPB ASSEMBLY~ LEGISLATORS AND COUNCILS PUBLIC HEARINGS Resolution No. 2003-55 -- Requesting the Remaining Funds of State of Alaska, Department of Community and Economic Development Grant #8/00-001 be Reappropriated to the City of Kenai Maintenance Shop Site Remediation Project. MOTION: Council Member Porter MOVED for approval of Resolution No. 2003-55 (the substitute) and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no public or council comments. VOTE: There were no objections. SO ORDERED. 9-2, Resolution No. 2003-56 -- Setting the Time and Place for a Public Hearing on the Basin View Subdivision Special Assessment District (Dolchok Lane, Kim-N-Ang Court, and Cub Court). MOTION: Council Member Porter MOVED for approval of Resolution No. 2003-56 and Council Member Moore SECONDED the motion. There were no pubhc comments. Clerk Freas reported notices and advertising in the newspaper would take place prior to the meeting of January 21, 2004 as directed by code for all the new assessment districts. The most recent property ownership will be used as well. VOTE: There were no objections. SO ORDERED. D-3o Resolution No. 2003-57 -- Setting the Time and Place for a Public Hearing on the Schooner Circle Special Assessment District. MOTION: KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 3 Council Member Bookey MOVED for approval of Resolution No. 2003-57 and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no public or council comments. Public Works Manager Komehs noted this was the assessment district in which the property owners discussed and agreed on a method of assessing the properties and dividing the cost for the comer lot. VOTE: There were no objections. SO ORDERED. D-lo Resolution No. 2003-58 -- Setting the Time and Place for a Public Hearing on the Pillars Special Assessment District (Chinook Drive and Sockeye Circle). MOTION: Council Member Porter MOVED for approval of Resolution No. 2003-58 and Council Member Bookey SECONDED the motion. Council Member Moore requested UNANIMOUS CONSENT. There were no public or council comments. VOTE: There were no objections. 80 ORDERED. 9-5. MOTION: Resolution No. 2003-59 -- Setting the Time and Place for a Public Hearing on the Toyon Way Special Assessment District. Council Member Bookey MOVED for approval of Resolution No. 2003-59 and Council Member Swarner SECONDED the motion. There were no public or council comments. VOTE: There were no objections. 80 ORDERED. 9-6, Resolution No. 2003-60 -- Transferring $4,000 in the Comprehensive Plan Capital Project Fund for Plan Document Printing. KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 4 MOTION: Council Member Bookey MOVED for approval of Resolution No. 2003-60 and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. VOTE: There were no objections. SO ORDERED. D-7o Resolution No. 2003-61 -- Transferring $5,000 in the Multipurpose Facihty Capital Project Fund for Construction and Installation of Utilities in the Storage Room. MOTION: Council Member Moore MOVED for approval of Resolution No. 2003-61 and Council Member Swarner SECONDED the motion. There were no public comments. Parks & Recreation Director Frates reported a party is interested in renting space at the facility for his skate-sharpening business. The construction work would include building a wall and adding some electrical outlets and plumbing. Frates explained he believed the addition of these amenities would be a good marketing tool; the lease would be for six months; he compared rental costs for space and has suggested $1.00 per square foot ($240/month), which is comparable to other space rent costs; the renovation work would become property of the city; the adding of the wall and electrical outlets would be done in-house and the plumbing would be contracted out; and he hoped the work to be completed before the second week in January. Council Member Porter asked if the matter had been taken to the Parks & Recreation Commission and Frates answered no because the Commission would not meet again until January 8 and it was hoped the work would be completed around that time. Council Member Gilman suggested the rental price be raised in order to pay for the cost of the improvements over a three-year period. Council Member Ross stated his support of the resolution as he felt the improvements would enhance the facility and would be of use for any vendor in that area. Council Member Moore asked the hours of operation for the vendor and Frates noted, the vendor had not yet submitted a proposal. VOTE: Porter No Gilman Yes Ross Yes Williams yes Bookey Yes Swarner Yes KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 5 Moore I Yes MOTION PASSED. 9-8, Liquor License Renewal -- George's Casino Bar -- Beverage Dispensary. Approved by consent agenda. ITEM E: COMMISSION/COMMITTEE REPORTS E-1. Council on Aging -- The next meeting will be held on January 8, 2004 {moved to this date due to the normal date being a holiday). E-2. Airport Commission -- Council Member Moore reported a meeting was held on Thursday, December 11 and the main discussion was the Borough's ordinance to charge a flat tax on personal aircraft of $75.00/engme. He noted, the Commission consensus was the city should be on the same playing field as the Borough and council should discuss the matter to determine whether they will support the Borough's ordinance. Doug Haralson, P.O. Box 2881, Kenai. Haralson reported he discussed the issue with the city attorney and passed on the recommendations of the Commission, i.e. for the fiat tax to benefit the City of Kenal as well as other Borough municipalities and would like the fiat tax collected through the borough and passed through to the cities. Haralson noted he attended the December 16 Borough Assembly meeting at which the first reading of the ordinance was held. Haralson reported he testified relating to the ordinance as did one other person, who spoke against the ordinance. Haralson stated he reported the discussion of the Commission. Attorney Graves reported, in order for a tax to be collected by the Borough it would have to be spent non-areawide. To collect the tax for the city, the Borough would have to do a non-areawide tax and the cities a $75 flat tax and the Borough could then collect and distribute the funds to the cities. In his discussions, Graves stated the Borough Attorney felt it would be hard to amend the ordinance to make it work in the period of time left until the final hearing. A lengthy discussion followed in which Porter stated she felt it was an issue needing addressed. Ross stated he hoped the City of Kenal would work with the borough representatives to encourage Graves' suggestion. Airport Manager Cronkhite noted, it was the Commission's understanding the Borough has suggested this tax in order to compete with Anchorage and the Mat-Su Borough as they have a flat tax, however the Commission felt the ordinance did not do that. Bookey stated his concern there will be other citizens asking for changes in personal property taxes for other types of KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 6 equipment as has been done for the boats and now aircraft -- these changes will diminish tax revenue to the city. Gilman suggested council discuss in depth tax situations in the city prior to the next budget preparation work sessions. It was consensus of council to have Council Members Ross and Moore, along with City Manager Snow and Airport Manager Cronkhite discuss the matter with Assembly Members Chay, Glick and Superman. It was also suggested Haralson be included in the discussions if available. Haralson noted an amendment was made to the timeline and a second pubhc hearing will be held on the ordinance in January by the Assembly. He also noted the ordinance was amended to change the date to begin the flat tax from January, 2004 to January, 2005. Williams noted applications for appointment to the Airport Commission were included in the packet. It was noted, the seat available is for a lessee. It was also noted, due to a change in the property wanting to be leased by John Parker for development of hangars, he was technically not a lessee of the airport. Williams stated he would delay the appointment. E-3o Harbor Commission -- No report. E-lo Library Commission -- No report. E-5. Parks ~ Recreation Commission -- The next meeting will be held on January 8 (changed from regular schedule due to holiday). E-6. Planning/~ Zoning Commission -- Council Member Ross reviewed actions taken by the Commission at their December 10 meeting, i.e. a conditional use permit was approved for a day care and the Commission rev/ewed the proposed adult entertainment ord/nance and requested a work session with the city attorney. E-7. E-7a. Miscellaneous Commissions and Committees Beautification Committee -- No report. E-'Fo. Kenai Convention/~ Visitors Bureau Board -- Fred Braun, KCVB President reported Michelle Glass, from the Haines Visitors Bureau was selected to fill the KCVB Executive Director position. She will begin work in February and until then, Diana McKierney will be the Interim Director. E-7¢. Alaska Municipal League Report -- Williams reported he spoke with representatives from AML while in Juneau on December 4. He suggested the KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 7 Legislative Committee and Alaska Conference of Mayors hold their August meeting in Kenal. A written proposal is required and he asked'if council had any objections to his submitting a written proposal. Council had no objections. E-Td. Kenal Chamber of Commerce -- No report. E-Te. Arctic Winter Games -- Moore reported the annual meeting was held December 11 and at the meeting an election of officers was held (the same officers were elected) and they approved the list of those persons who will travel to Wood Buffalo (including Council Member Bookey). Moore also reported a presentation was made at the day's noon Chamber luncheon by ERA Aviation, Inc. who donated $100,000 in airfare and in-kind donations for the Games. BREAK TAKEN: 8:10 P.M. BACK TO ORDER: 8:20 P.M. ITEM F: F-1. F-2. ITEM G: ITEM H: H-1. MINUTES Regular Meeting of December 3, 2003 -- Approved by consent agenda. December 3, 2003 Work Session Notes -- Approved by consent agenda. CORRESPONDENCE -- None. OLD BUSINESS Approval -- Request and Sign Naming Softball Complex in Honor of Steve Shearer. MOTION: Council Member Bookey MOVED to approve the request and sign naming the softball complex in honor of Steve Shearer. Council Member Moore SECONDED the motion. Bookey stated he still supported the request; noted the issue was held over to receive public comments; he received no comments and felt they needed to move ahead. Moore and Swamer also reported they received no comments. VOTE: Council Member Gilman requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. ITEM I: NEW BUSINESS KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 8 Bills to be Paid, Bills to be Ratified MOTION: Council Member Bookey MOVED to pay the bills and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. Purchase Orders Exceeding $2,500 MOTION: Council Member Bookey MOVED to approve the purchase orders exceeding $2,500 and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. Porter questioned the purchase order for survey work and City Manager Snow explained they had received a letter of interest from Aspirations, Inc. to purchase property from the city for a site on which they want to build a residential treatment center. Because a down payment was received the code requires a survey be completed. Swarner questioned the purchase order to Wade's Plumbing and Public Works Manager La Shot explained three proposals were sought of which one company was too busy and the other's proposal was much higher than the one for which the purchase order was prepared. VOTE: There were There were no objections. SO ORDERED. 1-3. Approval -- I-3a. Airport Taxiway Improvements/Access to Lots 6 Ih 7, Block 5, General Aviation Apron {Ron's Rent-It Service] City Manager Snow explained a request to sublease Lots 6 and 7, Block 5, General Aviation Apron to Federal Express Corporation had been received and referred to a memorandum included in the packet from Airport Manager Cronkhite. The memo indicated the success of the sublease was dependent on aircraft access to the subject lots and when Taxiway H was constructed, the lots facing Willow Street, with the exception of Kenai Aviation, did not have an aviation use and the taxiway was constructed with a ditch separating it and the lots facing Willow Street. KENAI CIT~ COUNCIL MEETING DECEMBER 17, 2003 PAGE 9 It was also noted, Federal Express was requiring paving access from the taXlway to the building in order for them to sublease the property and an appropriation will be needed from the Airport Fund to do the paving in Spring, 2004. Moore reported the Airport Commission discussed the issue and recommended the matter be brought forward to council for consideration and approval. MOTION: Council Member Moore MOVED to make the improvements as proposed in the information included in the packet marked I-3a and Council Member Swarner SECONDED the motion. Williams noted there are non-aviation oriented business leases for properties adjacent to the runway and asked if this will be able to continue when lease terms come up for renewal. Airport Manager Cronkhite reported administration has discussed the matter with FAA and when the leases come up for renewal they will be reviewing them. Additionally, administration has discussed the matter with the lessees and indicated FAA is reviewing the issue closely. She also noted other properties by this property are being considered for lease by two groups. Cronkhite added, Wince-Corthell- Bryson was previously approved by council and the FAA to do the design, consultation, and prepare bid documents for airport projects. Exploration of whether grant funds are available for the paving will take place. VOTE: Council Member Moore requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. I-3b. Consent to Sublease/From Ron Swanson to Federal Express Corporation/Lots 6 & 7, Block 5, General Aviation Apron MOTION: Council Member Ross MOVED for approval of the Consent to Sublease/From Ron Swanson to Federal Express Corporation/Lots 6 & 7, Block 5, General Aviation Apron. Council Member Porter SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERRD. Discussion -- Potential Conceptual Drawings for Improvements to the Multipurpose Facility for the Arctic Winter Games. Moore reported a discussion took place at the last council meeting relating to plans for the multipurpose facility for adding dressing rooms, showers, etc. for the 2006 Arctic KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 10 Winter Games (AWG). He added, he spoke with Mayor Bagley and he told him the AWG had no plans to do anything to the rink the city doesn't want. Gilman stated he had discussed the matter with Bagley as well and learned the architect was not requested to do any design work and that he volunteered to do it on his own time and the committee was not trying to interfere with the city's plans. A discussion followed in which the following comments/suggestions were made: · Council/administration will need to endeavor to acquire federal funds for adding amenities to the facility. · Because there are constituents in the community who oppose the idea of closing in the facility and it not being available for public use, there is a need to meet with those constituents and discuss the issue (members of the LLC, the hockey association, and other interested parties). It is not known whether the proposed bleacher area would be heated. · Because March, 2006 is not far off, it is important for council to decide what changes, if any, they want to make to the facility. * Any discussions should stress fiscal consideration and the need to acquire grants or federal funds. · Prioritize the desires/plans for the rink; request the Parks & Recreation Commission to discuss the issue and make recommendations of prioritizations. · Discuss plans for use of the rink with the Games committee and their new executive director, as well as the architect. ITEM J: REPORT OF THE MAYOR -- Mayor Williams reported the following: · A presentation was made at the Chamber luncheon by Mat-Su Manager John Duffy relating to the proposed high-speed ferry system. During the presentation, it was noted the ferry could be ready within 18 months and the ferry will be built in Ketchikan. Williams noted he discussed the ferry system with Mayor Bagley and he agreed to expand the environmental impact statement to Pt. Possession. Williams requested council's approval to draft a resolution for the January 7 meeting relating to the ferry system to support the concept of the Tri-Borough Transportation Authority (Mat-Su, Anchorage and the Kenai Peninsula Borough); support the concept of the ferry transportation system to be used on the Cook Inlet; and, support of constructing a road from Captain Cook to Point Possession. The resolution would then be forwarded to John Duffy, the Kenai Peninsula Borough, Senators Stevens and a meeting set up with Senator Stevens and Representative Young to discuss the issue further. Council consensus was for the resolution to be written and submitted for consideration at the January 7 council meeting. · Reported on the progress of the Omnibus bill through Congress. KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE I 1 ITEM K: ADMINISTRATION REPORTS K-1. City Manager -- City Manager Snow reported the following: · The reports of department heads were included in the packet. · Recently council approved a ten-year lease with the Division of Forestry. Since then Forestry had received an engineer's estimate for the costs and engineering for the improvements they plan to make to the property and found them to be higher than initially expected. Because of the higher costs, it would change the proposed term of the lease from ten years to 18 years. · The City has been awaiting a letter from the FAA saying no further environmental remediation on the former FAA antenna farm will be needed and noting Public Works Manager La Shot's report, letters have been released and will be included in the final environmental audit for the property. The next step will be a land transfer and that is expected in February. Porter referred to Frates' report and his contacts with the Kenaitze Indian Tribe relating to Municipal Park. Frates stated he wanted to fred out the Tribe's willingness, due to the history of the park property, to be involved in the upgrade of the park. He reported the Tribe was receptive but have made no commitments. Snow added, the Tribe had previously indicated there axe grants available to them that could be used for the upgrade of the park. Frates also reported on the progress of developing a partnership with the Borough to enhance the current trails in the city and/or add to those trails for use by the schools for track competitions, etc. He noted he had discussed the issue with a Borough representative who stated it is relatively easy to get a trail easement which could link up with the East End wails. Work is continuing on the issue. Bookey referred to Finance Director Semmens' report relating to his discussions with Alaska Communication Systems (ACS). Bookey stated administration should remember ACS is the city's highest property taxpayer and is a corporate sponsor of many activities. Swarner stated she would like administration to contact the vendors and request price information for three-five years for budget discussions. She also noted a "To Do List" had been provided in the packets at one time and stated she would like to have that information included again as a reminder for council and administration. MOTION: Council Member Swarner MOVED to direct Administration to do the list and Council Member Moore SECONDED the motion. KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 12 City Clerk Freas reported the list was something she used to include in the packet because it was done prior to her appointment. However, she had discontinued providing the list several years prior because all the departments are represented at council meetings, as well as the meetings being attended by the city manager. Ross stated he felt the instruction to department heads should come from the city manager through consensus of council relating to directives. Snow noted, that many times council makes comments at the end of the meeting, and often times requests require a lot of further investigation, etc. She added, she has no objection in following through with issues when council gives actual direction through motions or noted consensus. It was decided the issue could be discussed further at the council/staff meeting scheduled for January 21, 2004. ACTION: Council Member Swarner with the approval of Council Member Moore, removed her motion from the floor. K-2. Attorney -- Attorney Graves reported there had been some problems with the website in which the software cannot update the information. It has been acknowledged by Alaska Communication System that it is their problem and they are working on finding a solution to the problem. K-3o City Clerk -- No report ITEM L: DISCUSSION Citizens -- None. L-2. Council Bookey -- Noted the city crews were plowing the Spur Highway sidewalks and asked if the city and state had come to some agreement with the issue. Pubhc Works Manager Kornclis stated thc city had done the work on its own. Swarner -- Noted the Foraker Group was offering a grant workshop in January in Kenai; asked council to consider development of a policy relating to naming parks or facihties in remembrance of people; and invited those attending to a holiday open house at her home. Snow reminded council they had already requested administration to develop a policy for naming parks, etc. and reported a policy had been drafted and would come before council in the near future. KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 13 Moore -- · Thanked administration for having the Inlet Woods street lights repaired. · Noted he was aware there will be a meeting between HEA and administration and requested a report back to council. · Noted he was aware of several property owners on Redoubt and Forest Drive who had built fences to block snow machines from travehng in their area and Kornelis reported he had written letters to the property owners to this regard. Police Chief Kopp also reported the department was pursuing those snow machine drivers who were riding in illegal areas. · Noted a letter to the editor regarding snow removal from sidewalks and asked if administration calls the citizens who comment in this way to explain reasons for the city's actions, etc. Kornelis reported calls are returned if a person calls the city and asks for explanations, etc. Gilman -- Noted the following: · He attended the Borough Assembly meeting and was very disappointed the resolution encouraging the buy-back of gas leases in Homer was passed. He added, he felt the Assembly's action sends a mixed message to industry and felt the city should take a stand on the issue. He suggested council, through the mayor, write a letter to the Assembly stating the City of Kenai does not favor the buy-back of the leases. · Suggested the council be cognizant of the borough ordinance to hold a special election relating to co-curricular activity funding for Peninsula schools. Council briefly discussed the buy-back issue and the consensus was to hold off on any comments until more information was received. Ross -- Stated he would not be attending the January 21, 2003 council meeting. Williams -- · Noted a public notice he received for the "Happy Valley Extension to the Kenal Kachemak Pipeline Right-of-way Lease" and asked if council wanted him to write a letter of support. Council requested a letter of support be written. · Reported he had been informed the KCHS graduation is planned to be held at the Soldotna Sports Arena. · Asked council and administration to estimate the cost to complete Swires Road to Lawton Drive, including paving, and added, the road would be an alternate route to the city if an accident blocked the Spur Highway, would be an alternate route to the golf course, and would give access to developing subdivisions. He asked for the estimate to be available for budget discussions. Ross noted, he spoke with the Borough when the well was being dug in that area. Because the road would greatly improve and enhance the properties there, he suggested administration discuss the issue with the Borough prior to budget work sessions. KENAI CITY COUNCIL MEETING DECEMBER 17, 2003 PAGE 14 · Noted the amount of new hotels being built in Anchorage and stated he believed the intention is to turn Anchorage into a convention city. He added, those attending conventions will want to visit other areas of the state as welt. EXECUTIVE SESSION - None Scheduled ITEM M: ADJOURNMENT The meeting adjourned at approXimately 10:04 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk 0 Z '~ 0 tlJ w ~ o uJ ~ 0 0 z < z 0 ~ z ~ z (2) Holding a Foreign Air Carrier Permit or a Certificate of Public Convenience and Necessity, issued by the Department of Transportation pursuant to 14 CFR Parts 201 and 213. E. An aimraft owner may appeal the determination of the borough assessor under this section using the procedures set out in KPB 5.12.050 - .060. SECTION 3. This ordinance be retroactively effective as of January 1, 2004. ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS * DAY OF * 2004. ATTEST: Pete Sprague, Assembly President Linda S. Murphy, Borough Clerk Kenai Peninsula Borough, Alask~ New Text Underlined; [DEIZTED TEXT BRACI~irJ.~] Ordinanc~ 2003-45 Page 3 of 3 A. For purposes of taxation, aircraft that have been issued an N number by the Federal Aviation Admirfistration ("F,~k") by January I of the tax year shall be totally exempted from ad valorem taxes and shall be taxed at the rate of $75 per year per aircraft per manufacturer's number of aircraft engines designed for that aircraft. B. Aircraft that have been dismantled, destroyed or crashed and the FAA N number has been retained by the aircraft's owner of record may submit to the assessor on an approved form "Aircraft Statement of Condition" that would allow for ad valorem taxation of that aircraft if approved. Aircraft for which such registration or licensing has lapsed or that has not passed the annual inspection required by the FAA shall not qualify on this basis alone for ad valorem taxation unless it has been dismantled, destroyed or crashed. C. Commercial aircraft operated by a scheduled airline shall be exempt from the flat tax and shall be taxed on an ad valorem basis in accordance with the KPB landing schedule formula. The KPB landing schedule formula provides for the prorated calculation of scheduled aircraft by dividing the total hours per year into the total time aircraft operated by a scheduled carrier are in the KPB, and multiplying the result by the assessed value of each aircraft. D. Definitions. For purposes of this section: "Aircraft" means any engine powered contrivance invented, used, or designed to navigate, or fty in, the air and that is capable of being manned and is required by the FAA to be registered and certified in order to be manned. "Aircraft engine" means an engine used, or intended to be used, to propel an aircraft, except the tail rotor of a helicopter. "Commercial aircraft" means any aircraft transporting passengers and/or cargo for some pa~vrnent or other consideration, including money or services rendered. "Crashed" means aircraft for which only parts remain that, due to their condition, can no longer be assembled to create any contrivable aircraft. TNs shall be evidenced by a FAA accident report and/or copy of an insurance claim that determines the aircraft to be a total loss. "Destroyed" means aircraft that have been damaged by age, weather, neglect and/or external influences outside the owner's control, and only unusable parts remain that, due to their condition can no longer be assembled to create any contrivable aircraft. This shall be evidenced by photographs and a physical inspection by the K.PB Assessing staff appraiser if deemed necessary by the borough assessor. "Dismantled" means aircraft that have been voluntarily disassembled and only parts remain that can no longer be assembled to create any contrivable aircraft. Evidence such as photographs and a physical inspection by the KPB Assessing staff appraiser shall be provided or allowed if deemed necessary by the borough assessor. "Scheduled airline. A "scheduled airline" is any individual, partnership, corporation or association: (I) Engaged in air transportation under regular schedules to, over, away from, or within the U.S.; and Ordinance 2003-45 Page 2 of 3 New Text Underlined; [DELe t e-u TF. XT BRACKIiTED] 34 Ken./Peninsula Borough, Alaska Financial Impacts 2003 Certified Numbers & Values Assessor Estimated 2003 Numbers if Flat Tax Count Value Main & Supp Roll 227 $33,656,971 X 6.5 Mills $218,770 Estimate 500 Aircraft Total Est 480 Single Engine X $ 75 = Est 20 Twin Engine X $150 = $36,000 $3,000 $39,000 37 ~.. '-~.~ \~ 144 N. BINKLEY SOLDOTNA, ALASKA 99669-7599 ~..~,~ BUSINESS (907) 262-4441 FAX (907)262-1892 MEMORANDI~WI DALE BAGLEY MAYOR TO: FROM: DATE: SUBJECT: Pete Sprague, Assembly President Members, Kenai Pen/nsula Borough Assembly Chris Moss, Assembly Member November 6, 2003 Ordinance 2003-~amending KPB Chapter 5.12 to provide for flat taxation of aircraft The existing property tax scheme for the borough provides that all personal property excepting watercraft and motor vehicles is subject to an ad valorem tax. The £zrst $100,000 in assessed value of personal property subject to an ad valorem tax is exempt from taxation. Watercraft and motor vehicles are both subject to a flat tax. This has no value-based exemption as the tax is not related to the value. Aircraft are similarly motor powered vehicles used for transportation, and it seems equitable to impose a flat tax upon aircraft rather than an ad valorem tax. Anchorage currently imposes a similar "registration tax" on aircraft situated in the Municipality of.anchorage. If enacted, this ordinance would impose a flat tax on each aircraft in the borough of $75 per aircraft engine on each aircraft. It applies to all aircraft that have been issued a Federal Aviation Administration N number. Aircraft owned by scheduled carriers are excluded from this ordinance as they are taxed on an ad valorem basis, but only for the percentage of time spent in the borough. Imposing a fiat tax would potentially result in either double taxation or a complete loss of tax revenue as fiat taxes are not, by their nature, generally apportioned between jurisdictions. Attached is a table prepared by the assessor showing a reduction of approximately $179,770 in tax revenues that would result from this change. 36 estimated price that it would brine in an open market and under the then-prevailin~ market conditions in a sale between a willin~ seller and a willing buyer both conversant with the property and with prevallin~ teneral price levels, or on the basis of actual income derived from the property without adiustment based on the amount of any federal income tax credit given for the property. Once the manner of assessment of the property has been determined under this subparam-aph, the assembly may not change the manner of assessment of that parcel of property if debt relating to the proper'tv incurred in coniunction with the properties oualifvin~ for the low-income housing tax credit remain~ outstanding. C~ To secure an assessment [UNDER] based moon the actual income derived from the property under this section, an owner.of_. ,i property that qualifies for the low-income housing credit shall apply to the assessor before May 15 of each year in which the assessment is desired. The property owner shall submit an application on forms prescribed by the assessor and shall include information that may reasonably be required by the assessor to determine the entitlement of the applicant. All such applications shall be forwarded to the assembly by resolution for a determination of the assessment manner." MOTION TO AMEND PASSED: Without objection. MOTION TO ENACT AS AMENDED PASSED: Unanim6uS. Ordinance 2003-45: Amending KPB Chapter 5.12 to Provide for a Flat Tax of Aircraft (Moss) (First of TWo Hearings) (Referred to Finance Committee) MOTION: Moss moved to enact Ordinance 2003-45. (11:20:39) Assembly Member Moss said an additional public hearing date would be added. President Sprague called for public comment. Assembly Meeting Minules Vol. 43, Page 250 Kenai Peninsula Borough December 16, 2003 Aircraft Flat Tax Financial Impacts by Tax Jurisdiction Area (TJA) TJA 50 Borough 51 Central Hospital 52 South Hospital 53 Nikiski Fire 54 North Pen Rec 55 Nikiski Senior 57 Bear Creek Fire 58 CES 64 Central Pen EMS 67 KPB Roads 68 Anchor Point Fire/EMS 69 KPC 81 Kachemak Fire/EMS Assessed Values Tax If Flat Tax Loss/Gain $23,320,608 $151,584 $10,000 -$141,584 $15,489,124 $6,196 $393 -$5,803 $6,887,184 $12,053 $404 -$11,649 $5,808,300 $13,359 $117 -$13,242 $5,808,300 $5,808 $51 -$5,757 $0 $23 $2 -$21 $0 $0 $0 $0 $2,809,755 $7,305 $708 -$6,597 $70,000 $70 $8 -$62 $7,447,900 $11,172 $301 -$10,871 $32,500 $65 $13 -$52 $23,320,608 $2,332 $153 -$2,179 $o $0 $o $o $209,967 $12,150 -$197,817 38 iort Star 2530 DeBarr Road · Anchorage,~ (90") 258--575 ° i-&x (9, .l'-I December 16, 2003 Mayor John Williams 210 Fidalgo Ave. Suite 200 Kenai, Alaska 99611 Dear Mayor Williams, CItY CLErk4 This letter is formal notification of North Star's interest in building a residential treatment center (RTC) in Kenai. Having recently completed North Star's strategic planning process, Kenai was discussed and approved as a site for a 46-60 bed RTC expansion, including the capital necessary to fund land acquisition. As a former resident of the Kenai Peninsula and one of the people ultimately responsible for psychiatric care on the Peninsula, I intimately understand the need for local residential treatment. North Star's treatment of children is based on proven, academic, treatment philosophies used in the finest treatment facilities nationwide. This spring, North Star will celebrate 20 years of treating Alaskan children, and I am excited that that North Star can extend our treatment expertise to the Kenai, while at the same time, providing economic benefits through health care industry jobs. North Star is specifically interested in acquiring property for the building site. I understand the City of Kenai may be able to assist in site selection and acquisition of property near the airport. Can you please advise me on what property is available and the appropriate process for its acquisition as a potential site for a RTC? As land options may be limited, should other providers have an interest in the Kenai, will there be a competitive process for selecting the provider who will be able to purchase the land? Thank you for your support of our expansion, Sincerely, James W. Shill CEO CC: Senator Tom Wagoner 4040 Primrose Lane Kenai. AK 99611 The tbllowing person spoke in opposition to Ordinance 2003-45: Terry Moxey, PO Box 621, Sterling, AK MOTION: Merkes moved to extend the legislative deadline by one half hour to Midnight. Assembly Member Superman gave notice of reconsideration for Resolution 2003-129. MOTION TO EXTEND DEADLINE PASSED: Unanimous. The following person spoke in opposition to Ordinance 2003-45: Doug Haralson, PO Box 2881, Kenai, AK There being no one else who wished to speak, President Sprague closed the public conument period. MOTION: Moss moved to add an additional public heating date of January 20, 2004 and postpone Ordinance 2003-45 until the next scheduled public hearing date of January 6, 2004. MOTION TO POSTPONE PASSED: MOTION: Unanimous. (I1:$$:0l) Fischer moved to address Resolution 2003- 130 and Resolution 2003-130 (Substitute) as the first order of business tomorrow. MOTION PASSED: Without objection. Resolution 2003-130: Providing for the Submission to the Voters of a Proposition Authorizing Areawide Authority of the Kenai Peninsula Borough to Directly Fund School District Co-Curricular Activities and Stating an Intent to Consider Including a Direct Appropriation of SL4 Million for Co-Curricular Activities in the Fiscal Year 2005 School District Budget (Long) (Referred to Policies and Procedures Committee) (11:37:10) ~ution 201vI-130 (Spramaeand Glick] Substitute; l)r _tv_ iding.f.o, r Submission to the Voters in a Special Election a Proposition Authorizing the Borough to Directly Fund School District Co-Curricular Activities in Addition to Operating Funds Currently Authorized by Law (Sprague, Glick) (Referred to Policies and Procedures Committee) MOTION: Glick moved to adopt Resolution 2003-130. Assembly Member Glick said Joe Amess had made a presentation to the Policies and Procedures Committee. Mr. Amess reported the Co-Curricular Task Force recommended that the school district request $1.4 Million from the borough for FY 2005. The task force also recommended that the K~nai P~ninsula Borough Assembly M~ting Deeemb~16,2003 Vol. 43, Page 251 EADS NORTH AMERICA Ralph D. Crosby, Jr. Chairman and Chief Executive Officer EADS North America Meml~er of the Executive Committee EADS, The Honorable John J. Williams Mayor, City of Kenai 210 Fidalgo Avenue, Suite 200 Kenai, Alaska 99611-7794 December 17, 2003 Dear Mayor Williams, As Chairman and Chief Executive Officer of EADS North America, I am writing to request your support and assistance to locate a final assembly facility in Kenai, Alaska. EADS North America is the North American holding company of EADS, N.V., a Dutch-registered, publicly traded defense and aerospace company with revenues ~n excess of 530 billion annually. Contingent on the successful execution of a contract with the U.S. Special Operations Command for a helicopter laser obstacle warning system, it is our intent and desire to assemble the product in the Kenai area. While the current Special Operations Command schedule for contract execution on this system remains some period of time in the future, prudence and planning requires an early engagement with you and the City of Kenai. Accordingly, it is our desire to initiate a discussion with you on this subject, as well as other local officials as you deem appropriate. For our part, we would request your support and assistance to begin these discussions early in the first quarter of 2004. With your concurrence, I would propose sending a small business team to Kenai for detailed review of our facility requirements, as well as other associated issues. As a baseline consideration, our interest is to lease a facility either from the City or an appropriate entity for this enterprise. Further, we have no formal requirement for a new construction effort to support our facility needs. If an existing facility is available in the City, with or without modification, we are willing to evaluate its suitability for this enterprise. In the event that a new facility would be required, it is our desire that the City of Kenai identify a process and mechanism sufficient to support design, construction and leasing of a facility to EADS North America for this enterprise. 815 Connecticut Avenue, N.W., Suite 7(30 · Washinston, D.C. 20006 Telephone(202)776-O988 · Facsimile (202) 776-9080 50F HELLAS Production Facility Requirements Summary Offices & Support Service Rooms · 13 office and support serwces rooms of varying sizes located around the perimeter of the building on two sides. Most individual offices 10 ft.xl 2 ft. · A 340 sq. ft. model shop containing several machine tools and other small equipment (see layout). · Industrial grade carpet throughout, acoustic ceiling tile with recessed fluorescent lighting, 9 ft. minimum ceiling height. Manufacturing/Test Areas · Approximately 3565 sq ft. - 10 ft. m~nimum ceiling height. · Manufacturing/Test areas shall be class 100,000 semi-clean environment with air lock entrances to maintain positive pressure - prohibiting dust to travel within the processing areas. · A test range will be located through custom-sized windows and must have an unobstructed view for a distance of 600 meters in all directions from the range windows. Approximately 8000 sq. ft. of flexible manufacturing/test, warehouse and office space on one floor layout with growth potential up to 10,000 sq. ft. · Cap-off facility utility lines so that knocking out wall could add up to 2000 additional office, warehouse and processing square footage. · Generous amount of outside and interior windows for maximum outside light and visibility throughout. · Entire facility must be temperature-controlled to 75 degrees, plus or minus .5 degrees and humidity controlled between 40% and 7.5% RH. · Normal 60 cycle/110/220 voit power will be required throughout, except to the ESS facility, which will require 3-phase 380-500 volt power and 3 KW chiller. · Conceptlayout attached. Receiving/Receiving Inspection; Pack/Ship and Stockrooms · Approximately 1500 sq. ft. total warehousing space located adjacent to loading dock but walled outside controlled manufacturing/test processing areas. Minimum 12 ft. ceiling height. · Ample fluorescent lighting required. · Ample driveway for truck egress and access to loading dock with mechanical dock leveler and elevator lift outside. · An air curtain, plastic strip doors and loading dock pads to seal around the truck should be furnished. · A 12 ft. insulated roll up door shall be installed in the mfg. area for equipment access. The Honorable John J. Williams December 17, 2003 Page 2 For your initial consideration, attached is a facility requirements document to provide you a better understanding of our facility needs. Thank you for your consideration of this request. I look forward to the opportunity to work with you and the City of Kenai regarding our interest in your community. Sincerely. INFORMATION ITEMS KENAI CITY COUNCIL MEETING JANUARY 7, 2004 2. 3. 4. 5. 6. 7. 12/29/03 Public Works Department, Project Status Report. Comment post cards relating to library services. 2004 Gaming Permit Application/Friends of the Kenai Community Library, Inc. 12/03 Challenger Learning Center of Alaska, The Mission Link. 1/2004 Resource Development Council for Alaska, Inc., Resource Review. Soldotna Chamber of Commerce, Chamber Connection. Kenai LIO/List of 2004 Pre-Filed Senate and House Bills Outside/ Parkin g/Si~;nac;e · Depending on Jot location a reasonable expectation would be appropriate landscaping with sprinkler system for entrance, street and rear side of the building and a paved truck entrance on the receiving/shipping side. · Lighted flagpoles and company sign should be provided on the front of the building. · Lighted parking for 30 cars should be provided. · Sidewalks must be provided for appropriate personnel travel. Systems · A PC-based package should be sufficient to handle financial and material transactions as necessary. Security · Cardkey access throughout. Example Layout Employee Parking HELLAS 54' Ddvewa' Truck Ac 2 Project Status Report A/NC/F/ A City Centaet Project Name JL Airport Security Fencing A=Active NC=Non-Construction F=Future STIP=State Trans. ~rnD KK - Keith Kornelis JL - Jack La Shot RS - Robert Springer MK - Marilyn Kebschull Jet - Jan Taylor Stal]Js Engineering work progressing. A JL Airport Security System Preparing project manual. A MK Airport Supplemental Planning Assessment RFP being drafted by Airport Manager and Planner. A KK Basin View LID This project has been completed and the City has received the State DOL releases. Public Hearing on final assessment roll is set for Council meeting of 1/21/04. A KK Bridge Access W & S Feasibility Study Received final report evaluating different routes from Wince-CorthelI-Bryson. Report sent to DEC & EDA. A JL/RS City Hall HVAC Documents complete. A MK Comprehensive Plan Approved. Final plan being prepared. When it is received, the plan will be forwarded to KPB for approval. A JL Contaminated Soils - Shop Work plan to be submitted. Received ranking for loan fund - could be funded if City chooses to. Asking to reappropriate $151,314. A JL Daubenspeck Environmental Site Assessment Final report has been received. UST removal report received and submitted to ADEC. A JL FAA Site ADEC has determined "No Further Action," Response will be included in Final Environmental audit, Land transfer is then possible, Monday, December 29, 2003 Page 1 of 3 City Co taet Project Name A JL Senior Kitchen Status Received grant to prepare schematics for Rassmussen Grant. P.O. in packet 1/7/04 for Kluge. 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 This project has been completed, and the City has received the State DOL releases. Public hearing on final assessment roll has been set for January 21, 2004.. 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 City completed the review of CH2M Hill's draft report. Purchase order to GeoNorth to update GIS as part of this project is going for Council approval January 7, 2004. A KK WH 4 Drilled exploratory well and waiting for test results, Microscopic particulate analysis being done, Working with DNR on land purchase or lease issues, STIP KK DOT - Bridge Access Pathway Pathway along Bridge Access Road from K-Beach to Spur 3.3 miles...Project in environmental assessment. Design scheduled FFY08. Construction after FFY09. STIP KK DOT - Kenai River Flats Interpretive Site This is the rest stop and Birch Island Facittiy near the Warren Ames Bridge, This project has been moved out of the STIP. Monday, Decemt~er 29, 2003 Page 3 of 3 A/NC/F/ SIi~ A City Coatact JL Project Name Kenai AP ARFF/SRE Facility Status Closing out. A KK Kenai Boat Launch Improvements Received $350,000 grant. Nelson's P.O. for design and construction inspection is going to council January 7, 2004. A KK Kenai Coastal Trail Corps has received funding for planning and answering permitting questions on this project. Rec'd status report 11/20/03 from Corps with schedule. A JL Library Improvements Schematics complete - awaiting further direction. A JL Maintenance Shop Preliminary plans and specifications complete. Grant funds to lapse in '04. Passed reolution to amend grant to do environmental. A KK McCollum & Aliak, Set Net Dr., S. Ames Rd. LID's These LID projects are on a list for consideration by Council at a later date. Projects on hold until changes made or funding found. A JL Multi-Purpose Facility Refrigeration Venting estimated at approximately $30,000. Waiting to see extent of Arctic Winter Games work. Removed siding panels to experiment with condensation. May replace panels. A KK Pillars LID - Chinook Drive and Sockeye Circle This project has been completed, and the City has received the State DOL releases. Public hearing on final assessment roll set for Council meeting of January 21,2004. A JL Runway Extension Environmental Assessment Project on hold until AP Supplemental Planning Assessment complete. A KK Schooner Circle LID This project has been completed, and the City has received the State DOL releases. Public headng final assessment roll set for Council meeting of January 21, 2004. Mon(~ay, December 29, 2003 Page 2 of 3 Mayor John Williams & Members of the City Council 210 Fjdm]go Ave. Kenai, AK 99611 a~ ,~ ,!,,II,M,M,M Department of Re~nue Tax Division PO Box 11 Juneau, AK ~;~11-0420 Telephone 907.~5.23~3 State of Alaska 2004 Gaming Permit Application AS 05.15.020 Tllis ~rm is also available on the [nternet at www.tax.state, ak. us/progran~/gaming/ ~)2-O133770 33-1833 FRIENDS OF THE KENAI COMMUNITY LIBRARY, INC. ~07-283-4378 163 MAIN STREET LOOP ~07-283-2266 KENAI, A~S~ 9~11 ejanko~ci, kenai.a k. us ] xxC~rperation [~ Part~emhi~ ~ Assoc~afi~ I NEDRA T. NORA C. SI~Am.~.I T H~'"ml T~rELa~ Name 39! 4 ~/3300 Day, me Tetephone Numbe~ 907-776-5433 482-12-9761 P O BOX 7308 P O BOX 324 C~ty KENAI oty ALASKA 99635 'dlKISKI N.m. 907-776-8080 Pti ~_~ary Member Sigrmaze . . ;¥inted Name Date ~ ~me Td~ 1315 CHINOOK DRIVE, KENAI, AK ~11 ~7-28~2869 Miggion Link December 2003 - January 2004 Edition Welcome to "The Mission Link", the monthly newsletter of the Challenger Learning Center of Alaska (CLCA). Christmas Parties at the Challenqer Learninq Center Christmas parties are in full swing at the Challenger Center this month! We're welcoming groups from ConocoPhillips, Spenard Bu#ding Supply, Alaska Pipe & Supply and the Challenger Center's Board of Directors, as well as a number of community and youth groups, to fly "Christmas missions". Teacher Traininq for School Missions by Tamra Wear, Lead Flight Director Teachers who wish to take a class through a mission must first guide their students through a 4-6 week curriculum. Teachers are introduced to this curriculum at a one-day teacher training. The training begins with a teamwork/communication activity. Next we dive into the manual and cover the Alaska State Content Standards, classroom prep activities, and mission specifics. After lunch we head back to hands-on mission specific activities. After this, if we are training at CL CA, we run a mini-mission (1 hour). If we are off-site then stations similar to mission stations are set up and the teachers rotate through them. E-Mission training is similar, with activities aimed specifically at earth science and the e-Mission jobs. Comet/Mars teacher training dates are set for January 24, 2004 at CLCA, and February 7, 2004 at APU. e-Mission training will be February 14, 2004, site to be announced.. VISTA Volunteer Assists CLCA with Funds Development by Dawn Bailey, VISTA Hello, all. My name is Dawn Bailey and I am the AmeriCorps VISTA (Volunteers In Sen/ice To America) volunteer at the Challenger Learning Center of Alaska. I come to CLCA with a background in communications/journalism, having graduated from both Comell University in Ithaca, NY and Northwestern University in Evanston, IL. In my past life I worked as a journalist for various publications, but wanted to venture out into grantwriting; and CLCA, through AmeriCorps, is offedng me the opportunity to do that. I'm also getting to see first-hand what goes into project development on both a small (e.g. creating distribution lists) and large scale (e.g. going after governmental funding with other non-profit organizations). 2004 Gaming Permit Application FRIENDS OFTHE KENAI COMMUNITY UBRARY, INC. 92-0133770 03-1833 $pecial Draw Retie KENAI EAGLES AERIE 3525 SPUR HWY, KENAI, AK 99611 RAFFLE XX LEASED ~1 Leased ~1 ~ted [~ Leased ~1 Donate~ [~ Leased ~1 Donated ~] L~sed ~] Donat~ ACTMTIES CONDUCTED BY MULTIPLE-BENEFICIARY PERMITTEE I DEDICATION OF N ET PROCEEDS. 3~e organiza~n mu~t plan to use Ne ne~ proceeds from ganl~g acth4tles for potrdcal, educational, civic, pul311c, PROCEEDS ARE DONATED TO KENAI COMMUNITY LIBRARY. Form ~ (Rev 09/03) Page 2 On behalf of thc Resource Developtnent Council, the Alaska Support Industry Alliance, and the Associated General Contractors of ,klaska, three of the 19 organizations that recently signed a [otter to the Governor and members ot the Alaska Legislature encouraging them to develop a long term fiscal plan, we would llke to encourage all Alaskans to become engaged in this important issue. Tile complete list of participating business, civic and trade associations are listed at the end ot tbe letter which is reprinted on page three of this publication. The cooperative ~vork of /is diverse group of Alaskans is sxmboiic of the work that noxv needs to take [. ~ place in Juneau. Each organ- ization that signed the letter took a risk bF' accepting a less titan ()primal proposal from its indMduaI perspective in order to participate in a larger consensus. In other words, or~,aniza- tions representing Alaskan businesses, communities, trade associations and educa- tional interests compromised on details in order to achieve a greater goal. We need our elected officials from both parties in both the executive and legislative branches to follow suit. The tools available to solve the problem are well defined. What xve need now is the fortitude to put them into action. Our group plans to work constructively with both the Murkowski admlnistration and the legislature as they strive to solve our state's ongoing fiscal imbalance. \Ve have asked them for leadership, we bare encouraged them to work together, and we have promised them our participation and support. One thing is clear: This is no time for politics. If every inter- ~ted participant in this debate pursues the most self centered, politically advantageous course ot action, the problem x~ ill not be solved and all Alaskans will suffer. Rhetoric must be cast aside in ~avor of sctinn. Poll-watching ~nust be supplanted by leadership. Political calculation must be replaced with states- manshlp. Resolving the state's ongoing fiscal imbalance is a challenge greater than one political party or one branch of government. Thc responsibilitv of leadership in this instance falls on a broad cross-section o~ Alaskans. Republicans and Democrats in thc legislature must begin to build a level ot trust that will allow them to work cooperatively. The administration must also cuitlvate an improved rela tionship with members of both parties m the legislature. p~o~c~ Business and civic organi- zations must educate their membcrs and work coopera- : : : : : : dvetv with our elected offi- i r j the temptation to pick at t xvounds from the most recent ~1 ] ~ campaign season, and instead concentrate on tbe actions of today. Rather than look hack. wc must all begin to focus on thc tuture. As we stated in our letter, "With leadership and courage..., a long-term fiscal plan for Alaska can become a realitv. The challenge ot ad- dressing om' state's fiscal imbalance is daunting, but the suc- In eleven of the past thirteen fiscal years, the State of Alaska has drawn from ds chief savings account, the Constitutional Budget Reserve {CBR), to balance its budget. Based on Governor Murkowski's FY '05 proposed budget, the CBR is projected to run dry between 2007 and 2008. RDC and other organizations will be working with the Murkowski administration and the legislature to develop a [on¢-ranCe fiscal plan for the state. cesstul creation of a sound management plan wilt pro- vide long-term economic benefits to Alaska." We have good rea- son to believe the legislature and the Governor are lis- tening, and intend to ~vork with us and other Alaskans to meet this challenge. Fiscal Policy Letter 3 Evergreen's Coalbed Methane Development PL£ Issues Update 6 RDC News Di~est 7 RDC Conference 8 -g Ramona Barnes t0 Conference Sponsors ].1 Thank you! You may mail your donation with the above information to the address below, or call (907) 283-2000 to make a one-time or monthly donation via VISA or MasterCard. 9711 Kenai Spur Highway, Kenai, AK 99611 (907) 283-2000 phone (907) 283-2279 fax www. akchallenqer, org Please send subscription changes, additions, or cancellations to dawn.baile~/~.akchallenqer, orq Box 1035, Kenai AK 99611-I035 Tel: 907-283-2000 Fax: 907-283-2279 www.akchallenger.ore; ~ospace!cb, akchallenger.org To Governor Frank Murkowski and the Alaska Legislature The undersigned business, civic and trade associations, representing hundreds of Alaskan companies and organiza- tions, and tens of thousands ot Alaskan workers, urge the legislature to work with the Murkowski administration during the upcoming session to develop a comprehensive, long-range fiscal plan for the state. While the ultimate decisions regarding Alaska's revenues and expenditures rest with the administration and the legisla- ture, the undersigned associations commit to fully participate in the debate, and pledge to help resolve this issue in a man- net that will do the most good for the greatest number of Alaskans over the long term. Details of any prospective plan will no doubt be both practically and politically difficult to develop. Nonetheless, we believe the following genera] steps ~nust be taken: Budget Discipline Alaska must adjust to the reality of lower revenues just as a tamilv or business would - by controlling spending. Reasonable spending controls should be incorporated i~tto an7,' long-term fiscal plan. However, nur organizations do not believe it possible or wise to correct the entire fiscal 'mbalance through budget cuts alone. New Uses of Permanent Fund Earnings We believe appropriating a portion of the earnings from the Permanent Fund to }telp support state services is a legitimate use of those funds. Furthermore, we strongly support the creation of a "percent of market va~ue" structure for the Permanent Fund. Using some of the Permanent Fund earnings for state government should not preclude the Alaska Permanent Fund Dividend program from continuing and growing. Institution of a Broad-Based Tax Spending controls and new uses of Permanent Fund earn- ings may not be enough to close the state's fiscal gap over time. In light of this fact, we believe it is appropriate for the legislature to consider the implementation of a broad-based, statewide tax. Any discussion of statewide taxes should include a thorough, public analysis of an income tax, a sales tax and any other broad-based taxes. The fiscal challenges facing Alaska are not new and the tools available to address the problem have been well defined. However, without a sound fiscal management plan there is a growing risk to the state's economic health with every pass- ing year. In fact, uncertainty regarding Alaska's fiscal regime as been mentioned as a primary disincentive to private Lnvestment in the state. Fortunately, at this time, Alaska has a wide array of potential options to address this challenge. Each of the steps outlined above encompasses a multitude of variations. In creating a fiscal package, we encourage the legislature to incorporate elements from all three general recommendations beginning with spending controls, moving to new uses of the Permanent Fund earnings and finishing ~vith a new broad-based tax, if necessary. We are eager to support a responsible, committed effort to address this issue during the next legislative session. With leadership and courage from both the administration and the legislature, a long-term fiscal plan for Alaska can become a reality. The challenge of addressing our state's fiscal imbalance is daunting, but the successful creation of a sound management plan will provide long-term economic benefits to Alaska. Failing to address this challenge now risks irreparable harm to future generations of Alaskans. Sincerel~ Karen Casanovas, Executive Director Alaska Air Carriers Association R.B. Stiles, President Alaska Coal Association Mayor Kathie Wasserman, President Alaska Conference of Mayors Mary Francis, Executive Director Alaska Council of School Administrators Dave %'ler, President Alaska Fire Chiefs Association Dean Baugh, President Alaska Government Finance Officers Association Mike Ta~ ella, Chairman Alaska Hi-Tech Business Council Steve Borelt, Executive Director Alaska Miners Association Fay Von Gemmingen, President Alaska Municipal League James A. Sampson, President Alaska State AFL-CIO Kelly Stephens, President Alaska State Home Building Association Larry Houle, General Manager Alaska Support Industry Alliance Stacy Schubert, President Anchorage Chamber of Commerce Richard Cattanach. Executive Director Associated General Contractors of Alaska Carl Rose. President Association of Alaska School Boards Rich Heig, President Council of Alaska Producers George Lochner, President Eagle River and Chugiak Chamber of Commerce Lance Miller, Executive Director Juneau Economic Development Corporation John Shkely, President Resource Development Council for Alaska, Inc. On the web: Governor Murkowski's proposed FY 2005 budget www.~ov.state.a k.us/omb/OS_omb/buds~et/ (907) 276-0700 January 200~' Resource Review Pa~e 3 The future is now. Tesoro Alaska's Iow sulfur gasoline is an idea that's ahead of its time. But that shouldn't surpnse you, because at Tesoro Alaska we're always thinking ahead. Pushing the envelope. Our refinery on the Kenai Peninsula is con- stantly producing quality products that are naturally clean. Low sulfur gasoline is a prime example. Tesoro Alaska's Iow sulfur gasotine already exceeds all federally mandated environmental standards for the year 2006. So you can breathe easier knowing that we're doing our pad to keep the air cleaner in Alaska--today and tomorrow. GASOLINE SULFUR CONTENT (measured in parts per million) Federal Current Re~Julrements National For 2006 Average TESORO Resource Development Council 121 W. Fireweed, Suite 250 President Anchorage, AK 99503 Sr. Vice President Phone: (907) 276-0700 Vice President Fax: (907) 276-3887 Secretary Treasurer E-mail: resources@akrdc.or~ Past President Website: www.akrdc.or~ Material in this publication may be reprinted without permission provided appropriate credit is ¢iven. Writer & Editor Carl Portman Executive Committee Officers John Shivety Mark Hanley Jack Williams Chuck Greene Stephanie Madsen Chuck Johnson Staff Executive Director Deputy Director Proiects/AMEREF Coordinator Finance/Membership Tadd Owens Carl R. Portman Jason Brune Resource Review is the official periodic publication of the Resource Development Council (RDC), Alaska's larcest privately funded nonprofit economic development organization workin~ to develop Alaska's natural resources m a responsible manne, and to create a broad-based, diversified economy while protectin~ and enhancin¢ the environment. Pa~e 2 January 200u, Resource Review www.akrdc.or~ arc addressed. ,ponsible re~uiatorv environ- ment. and we support the state and borough processes now underway ~or develop- ing shallow gas guidelines, t~ot just rot Evergreen, hut for ail future operators. [n fact, we are prohabty tine best source }or technical formation relating to such regulations as xve have deep and broad experience in one of the most succcssml coal l~cd mctiqane developments in thc U.S.. thc Raton Basin southern ( ~olorado. ~'ock mechanics and indus- trial arciacoiogy ol tine I{aton Basin is remarkablx similar to J~e Mat-Su Valley, and the dexeh~pmcnr of this hasin die best analogue lot prospcctixc shallow zas de- velopment ~4 tiqe Mat 5u Valley. t>ur record in this area speaks tot itself: * We haxe drilled more than 1.CC5 ~haltow ,natural gas wells in southern Colorado, none of which has adversely hnpactcd residents' drinking water. NONE ot our Alaska wells xxill x crselv hnDact klaskans' drinking water either. Period. Our husiness ethics and Alaska's regulations will guarantee NO impacts. . We haxe not drilled under NEVER will ~ We rcspcct surface owner rights. More than 99% of all the wells we have drilled ,ere done with a signed sur- ace use agreement wlrh the surtacc ox~ner, regardless ot mineral rights ownership. No one has ever had to seek reclamation under a surface · \\e haxe h/red experts to provide constant input re- garding potential impacts of our operations in tine Valley, including the concerns Valley residents, split tstate issues atfcctlng sm'face own- ers, m~tigauon oi impacts of our operations h3 use of ex- isting h~trasn-ucture, and iln- proxm~ the Vallcx's economy and iob base. while /caving rJw smallest possihle foot- print. Our focus <ulng forxvard is benefits of shallow gas devel- opment to Alaska as xve did to southern Colorado hundreds of high quality, ]on< /{~ed higher paying iobs. prusperity and growth for Vi[lev contractors and revenues that ,rill ~und needed inwastructurc and Valley services, and a long- term ~ecure supply of the cleanest-burning ,4 fossil tueJs. A base of operations in the Valley will allow us assist Alaska in solvln~ its challenges of supplying power to rural vi}lages. We pJan to cuntinue pro- ~ idin~ tours of our operations in Alaska and Colorado. Just last month. Reps. McGuire and Joule ]oincd the long list of those Colorado operations. Among others that includes Lt. Gov. Leman, Sen. Dyson, regulators from the Division of Natural Resources, the Alaska Oil ~ Gas Conscrvatiun Commission and a number of press The illustrations above outline the drilling process for an Evergreen coalbed methane well and the measures taken to protect fresh water. ~cpresentatives and pnxate citizens. In Alaska, numerous local and state elected officials and private citizens have toured our pilot operations in rite Mat-Sm We are proud otour operations and uur operating record with rcguiatorx a~en clcs, as well as rixe minimal impact of our cnvlrunmen tally responsible opcratiug methods. Coloradoans aad Alaskans do not ha~e to choose between d~e positive quality of their outdoor- oriented lives and coexistence with environmentally sponsible energy supply. We can and must ha~e both. Evergreen is zratefui for the support of RDC and the \laska Oil ~ Gas \ssociat~on. Alaska is ~ortu- ~atc to ha~c tine best group ut ,ql and nas operators o~ :woducing state, as cxidcnccd ~} tine positive coexistence ot qdustrx with the wilderness in world-class scenic areas. We iota with these highly capable organizations, lur dncr joiniug with regulators and elected representatives, noving toward a sustainable, tnt ironmcntallv- friendlx model for shalloxv natural gas development that will make Al ot us proud. You have our conlmitment that we will do it right and ?hold thc high staudard that industry has set in Alaska. (907) 276-0700 January 200't Resource Review Page5 Mark Sexton, President of Evergreen Resources Alaska Corporation, stands m front of one of his company's d~'illin~ rigs. At left, an Evergreen production location in the Mat-Su Val[ey is dwarfed by fail folia~e. (Photos by Judy Patrick) Evergreen determined re- ccntiv that our initial slnallow gas pilot wells in the Mat 5u \alley are not economicailv viable at tbis time. Technically tbe proiect is cn couraging, since tbe wells are capable of sustained natural gas production. Since then, man~ bave asked us what our plans are tor Alaska. Some have even asked if E~ergreen plans to leave Alaska. I'he [verSreen's Strornber~ production facility in the Mal-Su Valley includes a qOO-barrel production tank and meter shed. The facility has contain- mere berms with impermeable lin EVERGREEN LOOKS To THE FUTURE IN ALASKA By Mark S. Sexton, President and CEO Ever~[reen Resources Alaska Corporation ansxver to that is "Evergreen expects to be here for a long time." Here's xvhv. \taska has a tremendous resource and opportunity in shallo~v natural gas. Witb an estimated 1,800-plus trillion cubic feet of coalbed methane resource across the state, \laska is prime for this kind of environmentally-friendly development. Tbe more re ntote regions of the state particularly need this type of long-lived, reliable, clean- burning energy supply. SouthccntraI Alaska faces a potential sbortfall in natural gas supply later in tbls decade. Toward the end of 2003 we began the drilling ot rive "core boles" (geologic tests) across the Valley to gain more information on the depth and quality oi the coals and coal bed natural gas we might de velop. \Ve expect that coal deposits to the north and west of the existing Pioneer Unit will i~a*c higher com- mercial potential than those to thc cast and south. need to complete tbese tests and analyze the results, then review tbc results with the regulatory agencies, before we move ahead with any firm plans tot additional pilot pro grams or extended development. As ht our previous drilling activity at our pilot sites, Evergreen remains commit- ted to low impact operations with care for the environ- ntcnt and nearby rcsldents. These are the principles we llve by: · Always be lnonest and straightforward. · Never promise what vou cannot deliver and alwavs de- liver what you promise. · Alwavs consider the environment xvhile finding, developing and producing the clean-burning natural gas that consumers need. Environmentally-respons. deveiopment is not just a desire, it is our personal and corporate philosopi~>, as demonstrated by our actions and our nlisslon statement. · Ensure that limiting sur- Mce disturbance is a priority. · Be consistent m deter- mining when and how to compensate a landowner re garding use of bis surface. · Provide direct access to Evergreen personnel respon sible tor operations on a landowners propert5; Our presence will enrich tile communities ~vhere we conduct business. While these principles guide our operations, we un- derstand that a formal regula- tory regime is required to provide certainty to all stakeholders - surface own- ers, mineral owners, reg~ tots and elected oftici, Safeguards must be in place >o that iegirimate concerns Parle q January 200~ Resource Review www.akrdc.or~[ Marshall Honored For Land Selection J: [n the histor* of Alaska, there have been many declslons made bv coura- geous people who havre helped shape Alaska ,ts it now exists. Frequently ! these decisions have been made in the absence ot complete information and , often the benefits flowing from such i decisions have only come to be fully [ appreciated man?' ?,'ears later. , In Noxember, at the RDC annual conference, geologist Tom Marshall was publically recognized for bis , courage and foresight more than 40 ! years ago in selecting North Slope ! lands as a portion of the state's land selection entitlement. Marshall's selec- ! tion was considered a wasted part of the I state's land entitlement by some who at the time called it Marshall s Ice Box. [ In I964 the state issued oll and gas !leases covering the newly selected I lands; and 13 successive dry holes were subsequently drilled on those lands Norman presents Marshall with a plaque contain- in~ oil from the first barrel of crude to flow through the Trans-Alaska Pipeline. Marshall was the state's [and selection officer in the t960s. before one more well was drilled at Prudhoe, resulting in the discovery on state lands of the largest oil fiel'd in North America. "Had it not been for his foresight, Alaska might today be a quite different place," said RDC Board member John Norman, who honored Marshall on be- half of RDC. "Tom Marshall's foresight and courage should serve as an inspira- tion and example to those who are called upon today to make important decisions about the development of alaska's natural resources under cir- cumstances, where the benefits may not be fully appreciated until some distant date by Alaskans yet unborn." Madsen Leads North Pacific Fishery Management Council Juneau resident and RDC Treasurer Stephanie Madsen was elected to lead the North Pacific Fishery Management Council by a unanimous vote ot her Council peers. She took up the reins ot the 15 person Council in October. The NPFMC manages Alaska fisheries, the biggest in the nation with 900,000 square miles of territory in the North Pacific that provides about half the ocean pro- tein caught in the U.S. The first woman to lead the Council, Madsen has been a Council member since 2001. She started serving on the Advisory Panel of the Council in 1993, and was Vice Chair of that panel from 1995 until 2001. Madsen is currently Vice President of the Padfic Seafood Processors Association and formerly worked for the Aleutian Seafood Processors Association. Call For Technologies The Prince William Sound Regional Citizens Advisory Council is inviting manufacturers and vendors to submit technical information on crude oil spill prevention and response equipment in order to develop a database of best available technology equipment for the State of Alaska. Information may be considered by the state during BAT determinations. Please go to www. pwsrcac.org/BAT4all.html. fiDC Supports Timely Issuance Of Po,jo Permits [n comments submitted to the Corps of Engineers, RDC strongly supported immediate issuance ol the Clean \Vater .\ct Section 404 Permit for the Pogo Gold Mine Proiect in Interior Alaska. Timely issuance ot the permit would allow the company to move forward with construction operations this win- ter. RDC also supported the use of site- specific criteria at Pogo in water quality regulations. RDC noted that such an approach at Pogo makes sense as it would allow tot existing water quality regulations to be applied to the proiect. Tbe proposed action would allow natu- ral conditions to be used xvhen estab- lishing the applicable water quality criterion. Group Gives Alaska Economy Poor Marks In its annual economic report card, the Corporation for Enterprise Development savs Alaska's economv lags behind most ot the nation. The Washington, D.C.-based nonprofit gave Alaska "Ds" in three broad cate- gories: what the state offers its resi- dents, its business vitality and its capacity to grow. On the plus side, Alaska businesses have been investing in more equipment, and technology employment has grown. However, low marks also came in economic diversity and public fund- ing sources for new business. The state was rock bottom in unemployment. Merten Bangemann-Johnson with the Anchorage Economic Development Corporation noted that natural re- source development was not weighed as heavily as it could have been, something that would have boosted Alaska's scores. "They're saying it's a bad thing to be overly dependent on one thing, ~vhich is true," Bangemann-Johnson told the Anchorage Daily News. "But that is a tough task for small states with economies that began in natural re- sources." To see the report cards for all 50 states, go to www. drc.cfed.org. (907) 276-0700 January 200~1 Resource Review Pa~e 7 JUDICIAL FIESPONSIBILITY AND ENVIRONMENTAL DECISION MAKING An unprecedented debate raged in the Senate recendv over President Bush's nominations ro the federal appellate courts. Advocacy groups have come out in force to support or oppose a substan- tial number of nominations. Even the lower level trial courts are not immune to intense scrutiny. In December, a former PLF attorney was invested as a iudge on the Court of Federal Claims-but only after he was subiected ro blistering-and unfounded-criticism from the environmental left. The politicization of the nomination process is a natural consequence of the politicization of the judiciary. No longer content to sit on the sidelines of legisla rive debate, many courts have become de Facto legislators, crafting and modifying laws at a dizzying pace. Congress has not helped. Rather than passing clear and unambiguous statutes, the work product of that body is often marked by vague and contradictory mandates, with the details left to be filled in by adminis- trative agencies and the courts. Nowhere is this more evident than in environmental legislation on wetlands and endangered species. The Clean Water Act says that it is unlawful to "discharge dredge or fill materials into navigable waters" which are defined to include "the waters of the United States, including the territorial seas." After a series of lawsuits in the 1970s and 1980s, that was eventually interpreted by the Corps and the courts to include wetlands, or at least wetlands that were "inseparably bound up with the 'waters' of the United States." In time, the Corps saw its duty to regulate not only wetlands adjacent to navigable waters, but also to isolated and remote wetlands, with no connection whatso- ever to navigable waters. Since Congress has jurisdiction over interstate commerce, and because some birds are hunted, and because there is commerce in hunting, the Corps ulti- mately decided that it could regulate any isolated wetlands in the United States so long as a bird might someday decide to stop at a wetland for a drink. This "glancing goose" theory of wetlands ju- Pa~(e 6 risdiction was at first accepted as gospel b~ a number of lower tederal courts. Fbnallv, in 200I, the Supreme Court lnad itad enough. [na case out of Illinois ir ruled that the Corps could not regulate a wetland at the bottom of an abandoned rock quarry merelv because it was visited bv birds. The notion that drink- ing ducl~s gave the Corps jurisdiction over the quarry was, the Court held, for the birds. But that is not the end of the story. Since its defeat in the Supreme Court, the Corps has been arguing all across the nation that any physical connection, no matter how attenuated, to a navigable waterway, is enough for it to claim iunsdiction over an isolated wetlands. Thus, if a wetland is next to a drainage ditch, which flows into a intermittent tributary of a tributary to a navigable stream many miles awa,~; the Corps claims jurisdiction. In Alaska, the Corps has even been asserting iurlsdictlon based on groundwater connection to a distant stream. While some courts have rejected the Corps' creativity, others have embraced it. As a result, PLF is engaged in a number of lawsuits challenging the Corps refusal to adhere to precedent. Another showdown in the Supreme Court is inevitable. The Endangered Species Act has the same story of agency expansionism abetted by judicial activism. Most legis- Iators rightly lauded the goal of the act in 1973 as a means to protect rare and Iarge animals. But the courts, at the be- hest of the environmental community, have transmogrified the law into an all- encompassing statute that freezes land use wherever any one of even the most obscure plants or insects is found. Congress, paralyzed at the thought of offending an environmental con- stituency, has withered in the face of any meaningful proposals for reform. Into the breach stepped a plethora of environmental bounty hunters, led by the Center for Biological Diversity, which file suit after suit to force compli- ance with requirements for listings and critical habitat designations. When the Fish and Wildlife Service January 200~ Resource Review began to make wildly generous critical habitat designations, a number of landowners, some represented bv PLF, stepped in to sue because of the Servic failure to conduct meaningful econoL analyses of the critical habitat designa- tions. Likewise, on the illegitimate des- ignation of species ranging from salmon to snakes, PLF has stepped in to ask the courts to correct agency error. Once again, the courts are in the center of the thicket to the point that the Fish and Wildlife Service claims its entire regula- tory agenda is now established entirely by court injunctions-meaning it is criti- cal that landowners have a place at the judicial docket. Courts are not the ideal forum to make critical policy decisions on the en- vironment. Yet, so long as Congress passes broad mandates full of force but deficient in clarity, and so long as federal agencies shirk their duty to properly in- terpret the law, the courts will have a tremendous role to play. In Alaska, issues ranging from critical habitat to wetlands to access across fed- eral lands will be played out in the courts. It is no wonder that the process of judicial nominations has become politicized. James Burlin~[ is an attorney with lhe Pacific Le~a( Foundation, See www, pacJfide~aLorg' www.akrd¢.or~ 'rowing \laska Through R 'The Denaii Commtsslon IS a big part of making a difference m Alaska," said Lt. Governor Loren Leman 'We knowcommunltieswlll not be able~o coun~on state or federalgovernment funding alone for sustenance. That's why ihe Commissions work to maximize the efficiency of government serwces and to assist with needs like heaJth care ciinics and bulk storage facilities is so important." Leman added lhal/he Commission plans to move beyond just buiidinginfrastructure to ultimateiy assisting rural communities in becoming self-sufficient, Jacob Adams, President of Arctic Slope Regional Corporation, noled that lhe new ASRC/BP Strategic Alliance ho[ds promise far ASRCto become an off and gas operator in ils backyard -- the North Slope. Development Corporation, spoke of [he vital importance of the Red Dog Mine the Northwest Alaska economy. Matthew Nicoiai, President of Calista Native Corporation, spoke of new frontiers and expanding opportunities in Sou[hwest Alaska, along with Hialmar Olson. Presiden[ of Bristol Bay Native Corporation. (907) 276-0700 january 200~ Resource Review Page 9 "We've still got billions of barrels of known oil and gas resources in our Alaskan portfolio -- more than anywhere else in Ihe world," Steve MarshaiL President of BP Exploration (Alaska),lnc., told several hundred bus~ness executives attendin~ [RDC's annual conierence in November. "It's enough to sustain production at current levels for the next 20 years," MarshaJl said. But deveioping those reserves will require billions of dollars in new investments. Marshall warned that uncertain~ over present, future and even past fiscaJ and regulatory issues could discourage investment. lure with regulatory reform and stream- exploration in Alaska, Coal Donation, Matchin Grants Help Out AMEREF Bob Stiles, president of the Alaska Coal Associalion, presents a check for $15,000 from the Coal Classic Golf Tournament to AMEREF president Stan Foo. AMEREF had several successful fundraisers at the end of 2003, in- cludin~ a raffle which netted nearly $8,000. In addition, over $25,000 was raised through pri- rate and corporale donations to the Wells Fargo and Rasmuso Foundation matchin~ gram drives. Page 8 January 200ur Resource Review www.akrdc.or~ RDC's 24th Annual Conference Thank You Sponsors! (907) 276-0700 ~anuary 200'~ Resource Review Pa~e ll A GREAT LADY AND A GREAT ALASKAN Courage, compassion and competence almost aiwaxs icad to cbaracter. In November; 3.1aska lost someone xvlth outstanding character when nnx friend Ramona Barnes succumbed to her long battle with a variety of illnesses· Those of us in thc resource community lost a ~igorous and outspoken advocate for responsible dex elopment of our state's natural assets· Courage - Ramona xvould ncvcr back awax from something in which she believed strongi5. Political affiliation, friendship, and popularity all took a back seat to Ramona's passion for setting the world right. To have Ramona on your side was akin to bringing an armv into your battle· Compassion - As fierce as Ramona could be at times, anvone who knew her felt a scnse of corn mitment to and understanding ot people and their needs that mav Inave been born of Inet Bible-belt upbringing, but was nurtured to lofty heights in her political and per- sonal life. To have Ramona call you a friend was to bask in an unrestrained and powerful outpouring of emotion, with hugs that were almost as bone- crushing as they were affectionate· Cumpetence - She did not arrive here with a degree from Harvard, but sine never stopped learning. She had an in hate intelligence that country folk like to use to surprise (and often confuse) the more urbanized and formally educated among us. She understood tlmt to succeed she needed a full understanding of the issues before her, and she never slnicd away from tine hard work and dedication it took to learn what she needed to know· [t was no accident that Ramona became the first female Speaker of the Alaska House of Representatives· Ramona and [ got to know each other when 1 was Chief of Staff to Governor Sheffield and she was Majority Leader in the House. Coming from different political parties, it is not surprising that we had some differences on issues of the dav. However, we found we had one thing in common - we both believed that giving your word meant keeping your word. On that simple foundation xvas built 20 years of friendship and affection· When I was nominated by Governor Knowles to be Commissioner of Natural Resources, there was a certain amount of controversv over the appointment. During mv confirmation hearing before the House Resources Committee i was being questioned somewhat aggressively when Ramona walked in and took her assianed seat at the committee table, bhe listened tot a bit and, when given her chance to speak, sbe said some- thing to the effect of: "Mr. Chairman, i would just like to say that I know ,John 5hively and I know that he ~vill make a damn good commissloncr...And, if he doesn't~ I will break both of his legs." That pretty much ended tine debate, and, when tine House voted on mv confirmation later that session, all 40 members voted to support my nom- ination. [ know that some of those xotes xvere tlnere only because Ramona gave mc }ncr unquaii tied support, the kind of support she gave all of her friends, no matter what their calling in life· Whether I made a "danm good commissioner" or nor, I will leave for others to decide· Mowcvcr, [ am pleased to report that [ did not spend any of my time as commissioner on crutches· During iqqv tenure as commissioner, Ramona and i had inany opportunities to work issues of mutual interest· (~ some, like subsistence, xve just agr~ to disagree. On others we forged tit,_ kind of bipartisan xvorking relationship that this state could use more of. But one issue stands nut in mv mind as a prime example of Ramona at her finest. That issue was the renegotlation ot the Northstar oll leases with BP. The Department of Natural Resources had renegotiated thc royalty regime for these oil leases aud had submitted the new regime to the legislature for their approval. The issue im- mediately became a political football. Opposition sprang up from some who just dldn't llke the oil industry and from others who, for largely partisan reasons, didn't like to see the Kuowles administra tlon help develop a new oil field. After viewing this acrimonv for a bit, Ramona decided that she needed to fix the problem. She got the bill authorizing the changes referred to her International Trade Committee (not a committee which would ordinarily claim jurisdiction), where she made major improvements to the work DNR had done. Ramona didn't care whose idea the bill was or which party might get credit. What she wanted was development of our resources and jobs for Alaskans, and that is what she got. Some say Ramona was one of a kind. Perha she was, but, if we are really luck>r, there are a few more llke her headed our way. Page 10 January 200'4 Resource Review www.akrdc.or~ · Check out the fol~wing Jlyer inserts in this newsletter! · Exploring Alaska TV Show · Hotel Edgewater · Kenai Peninsula College · Seward Charnber ',1 IEW BOARD! (~"he Soldotna Chamber of Commeme held its Dan Mortenson, board member since January o annual election of board membam last month. We 1998; Dona Cunningham, board member since had a gnat tatum of ballots this year, thank you to everyone who took the time to vote. We love to see our membem taking an active mil in choosing the leademhip of our chamber. We have several changes on the board this year. Newly elected are Evy Gebhardt with the Penin- sula Cladon and Kelly Keafing-Gdebal with Free- dom Realty. Ken Lancaster of Lancaster Enter- pdses was also elected. Ken is a past president of the Soldctna Chamber and has been serving on the board this past year after being appointed to fullfill Lisa Wimmers term after she moved to Bethel. Evy, Kelly and Ken will all serve three year terms. In addition to our elected membem, we have throe new appointed members: Mamie Nelson with Alaska Legends Lodge, Bob Bambaca with Gnat Bear Ford, and Chuck Wintem with United Rent- als. Mamie, Bob and Chuck will each serve a one year term. We are pleased to welcome them aboard. January of 2001; Kurt OIson, Jim Golden anc Theresa Colton who just finished one-year ap- pointed terms. We would like to say a heartfelt thank you to each of our outgoing board members. All of the time they spent with the chamber was on a volunteer basis. We appreciate their dedication and we'll miss them greatly. Our remaining board membam are as follows: Tim Pope wi~t Natron Air, President; Barbara Elson with Wells Fargo Bank, Past President; Mike Frost with First National Bank Alaska; Paul Gray with Expodng Alaska TV Shew; Norm Blakely of Alaska Trading and Loan; Sammie Cole with Southcantrst Title Agency; and Jim Stogsdill will remain as our Soldotna City Council Seat. Nominations for new officam will be made at the January board meeting. The Soldotna Chamber staff would like to thank our past and present board membem for their com- mitment to making Soldotna a wonderful place to We have five outgoing board membem this year:, live, visit and do business. Please join us Saturday, February~year: Person of the Year, Business Per- 7, 2004 at the Soldoma Sports Cen- ~on of the Year, Volunteer of the Year, ter for an fun evening of great food,~ Devoted Service to Young People friends, and help us recognize our and Youth Activities, Pioneer communities outstanding businesses and in- Award, and Looai High School Scholar- dividuals, ships. We will also be awarding an honorary Appetizers and no-host bar start at 6:30p.m. lifetime membership. Dinner will be served at 7:00p.m., and the awards Tickets are $25 each. Please R.S.V.P. by January ceremony will begin at 7:30p.m. 26. To ~serve your tickets or for more information The following Awards will be presented this call the Soldoma Chamber office at 262-9814. A~il~ll~ Energy Services J a suPsidiary of Arctic Slope Regional CorporBtion Most Complete Energy Service Company ADDRESS SERVICE REQUESTED 121 W. Fireweed, Suite 250, Anchorage, AK 99503 ;3'2 ...................5-DiGiT JOHN WILLIAMS OFFICE OF THE MAYOR $;T',' OF KE..NAi (ENAI AK ~9611-7794 !;i.iJ,,,~ ..... i U.S. Postage i PAID !Anchorage, AK J ! Permit NO 377 J 1'1~h, kids with Santa. Parker Park in Soldotna was a picturesque site that warmed your heart and spidt. The evening of holiday song, Santa and sleigh ddes all hosted by the Soldotna Chamber of Commerce. On behalf of the Soldotna Chamber of Commerce Board of Directors, staff and the hundreds of happy children that participated in the heartwarming event, we would like to thank the following: City of Soldotna maintenance crews- The maintenance crews did an exceptional job of plowing pathways for everyone to sur- round the tree as well as path- ways to the Senior Center. They took special care to make sure the roads were safe for the horse drawn sleighs. Agrium for sponsoring Issabella's Catedng in supplying the delicious cookies, punch, cof- fee and refreshments. HEA- Mike Anderson and Jen7 saty of the HEA crew came to '--~he tree with a bucket truck to test the lights, replace bulbs and hang additional lights. Their sup- port and attitudes were great. Peninsula Grace Brethren, Keith Randall, for taking photos of the Skyview Jazz Band and Skwiew swing choir for entertaining the crowds both at the tree and in- side. Your talents are overwhelm- ing. CES transported Santa, Mrs. Clause from the firehouse to the Senior Center. The kids were de- lighted at the sites and sounds, Thank you to Dan and Donna Mortenson for making sure Santa and Mrs. Clause could make the trip and listen to the children's holi- day wishes. The Senior Center is always there to support this special event; we thank them for the do- nation of the center for this com- munity event. Last, but definitely not least, Mayor Carey. Mayor Carey coor- dinated the kid's decoration of the park: he coordinated the Skyview Jazz Band and choir. He was the emcee for the evening; his patri- otic and holiday spirit is un- matched. Mayor Carey is always the person raising his hand to help. Thank you. Th.~ ev~-Yds ~:~w i~j' each 5~%= and we coutin't do i~atpne. Thank you a]lf~rm ak~ a spe- ~lm e~n orr f~r~e c~nmur~. G STIVIA$ DEGOR^TION8 We would like to thank everyone who participated in our Chrislmas Decorating Contest this year. The following win- ners received an energy credit from HEA for their supurb efforts to spread holiday cheer through their decorations. RESIDENTIAL: lstPlace: JC & Karen Smith, 48939 Jones Stab Rd., off GaswelL 2ndPlace: Gary and Sharon Hale, 140 Hemich, off Redoubt in Soldoma. 3rdPlace: Mike and Servica Dalkoviski, 304 West Sunrise, comer of Sum/se & Kobuk in Soldotaa. COMMERCIAL: lstPlace: Fwso's, 35433 Kenal Spur Hwy., Soldotaa. 2ndPlace: Soldotna Professional Pharmacy,299 N. Binldey St., Soldotna. 3rd Place: Fastat Natural Gas, 36225 Kenai Spur Hwy., Soldoma. State ot Alaska Chamber ot Commel'ce 2004 Cesislative Priorities Supedor Education System F~sca[ Plan Alaska Permanent Fund Distribution Determination Build the Alaskan Gas Pipeline to the Continenta{ US Action on the Juneau Access Project 2004 Lesislative Positions Education Amend No Child Left Behind Act Alaska Madtime Workforce Development/Abta Seaman to Mate Training Program Continuation of the Alaska Boating Safety program Fiscal issues Cruise Ship Head Tax Opposition Inflation Proofing the Alaska Permanent Fund Compensation for Regulator/Takings Fish and Game Management Boards of Fish and Game Subsistence Active Wildlife Management for Maximum Sustained Yield Funding and Utilization of Research for Resource Management Stellar Sea Lions Research Kodiak's Fisheries Research Center Resident Biologist Miscellaneous Mental Health Insurance Continued Support of Alaskan Armed Forces Funding for Alaska Wing of Civil Air Patyoi Support Alaska National Guard and Reserve Integrated State'~nde Fiber Optic System Develop Affordabta Health Insurance Resource and Economic Development Effective Economic Development Planning Develop Natural Gas Resources in the Nenana Basin Open ANWR Development of Alaska's NaturaJ Resources Royalty Oil Contracts for in-State Refining Alaskans as Leaders in Technolegy and Service increase Tourism Marketing Fund from the State of Alaska Restoring the Viability of Alaska's Forest Products Industry National Missile Defense Program in Alaska Pdvatizing State Owned Lands to Individual Alaskans State Conduct of Its Business Streamline Regulatiens and permitting Elimination of Union-Only State Mandated Project Labor Agree- Simpta Majodty Vote to Access the Consttitutional Budget Reserve Amend the Tort Laws and Regulations Amendment to Tort Refonm Law - Exclusivity Doctrine Protection Borough Incorporation: Unorganized Areas Remove Unfunded Mandate for Property Tax Exemptions Stmnghtening the Work Incentive in the Unemployment Insurance Program TranaportatlonlAccess Sustain the CMn'ant Alaska Railroad Model of Operation Gamer US Chamber Support Opposing Rcedless Policy Trails and Access on Federal and State Lands Statewide Transportation Development and Maintenance Madame Development Support Knik Arm Crossing Airport Runway Safety Areas Anchorage Airport Family Public Safety Improvements For additional information on any of the Alaska State Chamber of Commerce's Policlea or Positions, ptease contact the Anchorage Regional Office at (907) 278-2727. Board of Directors President Tim Pope Matron Air 262-8,140 Past President Bamara EIson Wells Fargo 262-4435 Bob Bambace Great Bear Ford 262-5491 Norm Blakeley Alaska Trading and Loan 262-6100 SammieCole Southcentral Title Agency 262-4494 Evy Gebhart Peninsula Clarion 283-7551 Paul Gray Exploring Alaska w/Paul Gray 262-9008 Kel[y Keating-Greibel Freedom Realty 262-1770 Mike Frost 1st National Bank Alaska 260-6023 Ken Lancaster Lancaster Enterprises 260-6727 Mamie Nelson Alaska Legends Adventure Resort 260-9328 Jim Stogsclill City Council Seat 262-5622 Chuck Wintem United Rentals 262-8700 Staff Soldotna Chamber of Commerce Phone 262-9814 Fax 262-3566 Executive Director Michells Glavee Visitor Center Coordinator Shanon Hamrick Member Service Manager Efica Williamson Bookkeeper NRa Fena River City Pull Tabs 260-6100 Rebecca Hanson Sarah Shearer 5OI. DOTI'4A a c/t 28th Annual Peninsula Winter Gamds gomething For Everyone in Hours! From January 23. to February let. 2004. hundreds of athletes, coaches and thmilies from throughout the State of Alaska will be visiting the Kenai Peninsula to participate in the Peninsula Winter Games. The Peninsula Winter Games were started back in 1973 by the late Mr. Al York. a member of the Soldotna Lions Club. Mr. York recognized the need to create an event where the local children would have an opportunity to enjoy sports, games & kid oriented events during the winter season. With the passing of Mr. York, Mr. John Torgerson picked up the torch and, with the help of the Soidoma Lions and numerous volunteers. carried on the tradition. While the spotlight of the PWG is on our kids, our communities benefit from the visitors this premier winter carnival brings to the Kenai Peninsula during our winter season. The Kenai Peninsula Tourism Marketing Council is the facilitator of the 2004 PWG. The driving mechanism of the PWG is the Booster CommitXen, which consists of numerous leaders from our participating communities. They invite you to join them in building a strong foundation to serve as a springboard for the 2006 Arctic Winter Games, which wili leave the Kenai Peninsula a cop"'ming legacy t~)r mmre Peninsula Winter · Staging an event of this m ,de requires a network of support. They offer you this opportunity to support and participate in a true Kenai Peninsula tradition- the 28th Annual Peninsula Winter Games. One of the ways you can help is by running Peninsula Winter Games specials at your place of business during the two weeks leading up to the games. They are also looking for items to include in the Peninsula Winter Games Bags that are sold to the children. Items can range from coupons for your store to fun little freebies promoting your business. For more information on how you can become involved in this community tradition call the Kenai Peninsula Tom Marketing Council at 283-3850. Katina Lagoutaris, a Senior at Skyview High School Ryan Walton, a Senior at Soldotna High School Alena Bobaon, a 7th Grader at Soldotna Middle School The Soldotna Chamber of Commerce presented our December Students of the Month with a certificate and meal at the December 16 Chamber luncheon. We would like to thank Bob Sizemore for sponsoring the Soldotna Chamber of Commerce Student of the Mon~ program. THANKYP" ACS Wireleoo ACSWireless the keeps chamPer staff connected with their donation of cell phones with free air time for the office. We just wanted to say 'Thanks!" Here are our New Members for the month of DECEMBER: Alaska's Greatland Outfitter Shawn Stone PO Box 2333, Soldotna (907) 260-4054 Fishing Charters Hotel Edgewater & Conference Center Debra Carter PO Box 1570, Seward (907) 224-2700 Accommodations - Hotels/Motels Special Welcome to ~.our NEW Members!~ 1" Annual '12 Shops of Christmas' was a success! The Soldoma Chamber of Com- merce, in an effort to promote shop- ping locally, started a new program this year. This exciting new pro- grmn was a great success and is sure to get better each year. We would like to. recognize the 12 Shop participants: Great Bear Ford. Peninsula Beauty Supply, Kenai Harley Davidson. Tammy's Flowers & Gifts. Donna's Country Victorian Gifts, Frames & Things, Alaska Gift & Gallery, Inner Peace Outer Beanty, 4D Interiors, Arby's, Beemuns Va- riety and Gourmet Gardens. We also had 4 weekly WUmers ors100 each for the shoppers. The win- ners were: Betty Hams, Julie Jones, Lisa Franzmann We woL to thank all that partici- pated by patromzing lo- cal shops and promoted shopping local. .= · · .E · r~ o $oldotna Chamber of ~?.790 5telling Hwy. $oldotna, AK 99669 Commerce JPRSRT 5TD U.5. POSTA6E PAZD ~OLDOTNA, AK PERM.' NO. 5 City of Kenai Mayor John Williams 210 Fidalr~o Ave, Kenai. AK 99611 "To pray~de enhanced success of our membersh/p and serve as a driver in develepin9 ~oldo~a's £ufure." The $oldotna Chamber Connection is a monthly publication of the $oldotna Cham- ber of Commerce. This publication is sent to members and associated o~anizations. Call Us! Mail Us( Fax Us! Email There are many ways to submit story ideas (or stories themselves): 262-9814 ~ 44790 Sterling Hwy. Soldotna, AK 99669 ~ 262-3566 ~-~J info~soldol~achamber.com OI/~O 'd ~LO~ ~8~ LO6 'ON ~V~ Oil I~ ~ 6~:80 I~ ~O0~-~O-N~ 0~/90 '~ ~LO~ ~8~ LOG 'ON X¥~ 013 I~N~ ~ 6~:60 I~ ~O0~-~O-N~£ LOB 'ON X~ Oil I~N~ ~ 0~:60 ~ ~O0~-~O-N~ MAI(E 26 PA¢I(ET$ COUN_~n PACKET blSTI:~BUTI'ON J COUNCIL MEETING bATE: J Mayor/Council Attorney Clerk / City Mana~ler Police Department / Finance / Klm Senior Center Airport Library , Parks & Recreation Fire Department ~ Schmidt VISTA ~ Kenoi Chamber AGENDA blSTI:~BU'I-rON ~ Sewer Treatment Plant Streets Shop bock BuiJdin~l Maintenance Animal Control Water/Sewer Counter DEL.1:VER Council Packets to Police Department Dispatch desk. The Chamber, Clarion, Mellish & 5chmidt's Office will pick their packet up in my office. 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/agenda form for paper) is emailed to Denise at Pcn/nsula C/ar/on (at email folder Work Session/Special Meetings, or Composition in Contacts or Ibell~acsalaska.net). Home Page documents (agenda, resolutions, ordinances for public hearing, and ordinances for introduction) are usually emailed to me and I hold them in my HTML file. Place them onto the city's website with Front Page from there as soon as possible before leaving the office for the weekend. 0~/0[ 'd ~LO~ ~ LO~ 'ON ~J OI~ I~13~ ~V 0~:80 I~J ~O0~-~O-N~£ MAI(F_ Z6 PA¢I(ET$ COUNCIL PACKET DTSTI:~BUT~ON COUNCTL MEET'J:N~ bATE: Mayor/Council Attorney ~' TayIor/Sprin~er/Kebschull Clerk ~' City Manager ,, Public Works Police Department ~, Finance ~ Engineer Senior Center / Airport ,- Klm Libra~, ~ Parks & Recreation ~ Clarion Fire Department ~ 5chmidt ~ Mellish VISTA / Kenai Chamber ~ AGENDA DI'$TP3:BUTZON 5ewer Treatment Plant Streets Shop Dock Building Maintenance Animal Control Water/Sewer Counter DELIVER Council Packets to Police bepartment Dispatch desk. The Chamber, Clarion, Mellish & 5chmidt's Office will pick their packet up in my office. 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/agenda form for paper) is emailed to Denise at £eninsu/a Clarion (at email folder Work Session~Special Meetings, or Composition in Contacts or Ibell~acsalaska.net). Home Page documents (agenda, resolutions, ordinances for public hearing, and ordinances for introduction) are usually emailed to me and ]; hold them in my HTML file. Place them onto the city's website with Front Page from there as soon as possible before leaving the office for the weekend.