HomeMy WebLinkAbout2004-11-17 Council PacketKenai City Council
Meet ing Packet
November 17,
2004
AGENDA
KENAI CITY COUNCIL- REGULAR MEETING
NOVEMBER 17, 2004
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http://www.ci.kenai.ak, us
6:00 P.M. BOARD OF ADJUSTMENT HEARING -- Appeal of Planning & Zoning
Commission Denial of PZ04-43(a) -- An Application for an Encroachment Permit
for Side Yard Setback for the Property Known as Lot 1, Block 6, Redoubt Terrace
Subdivision, Addition No. 3 (406 South Forest Drive), Kenai, Alaska. Application
Submitted by F. DeWayne and Diane E. Craig, 406 S. Forest Drive, Kenai, Alaska.
Appeal Submitted by F. DeWayne Craig.
ITEM A:
CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda
*Ail items listed with an asterisk (*) are considered to be routine and non-controversial
by the council and will be approved by one motion. There will be no separate discussion of
these items unless a council member so requests, in which case the item will be removed from
the consent agenda and considered in its normal sequence on the agenda as part of the
General Orders.
ITEM B:
SCHEDULED PUBLIC COMMENTS (10 minutes)
,
Bill Coghill/Mikunda Cottrell tk Co. -- Comprehensive Annual Financial
Report
ITEM C:
UNSCHEDULED PUBLIC COMMENTS (3 minutes)
ITEM D:
REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS
ITEM E:
REPORTS OF KENAI CONVENTION/h VISITORS BUREAU BOARD
AND KENAI CHAMBER OF COMMERCE
ITEM F:
PUBLIC HEARINGS
o
Resolution No. 2004-59 -- Transferring $3,500 in the General Fund to Obtain
Cost Estimates for Phase I of the Soccer Park.
ITEM G: MINUTE8
,
*Regular Meeting of November 3, 2004.
*Notes of November 3, 2004 Council Work Session.
ITEM H:
OLD BUSINESS
.
Presentation/Discussion-- Kenai Economic Development Strategy Plan
ITEM I: NEW BUSINESS
1. Bills to be Paid, Bills to be Ratified
.
Purchase Orders Exceeding $2,500
.
Approval-- Hangar Purchase and Lease Application/Lot 2, Block 3, General
Aviation Apron (Former Fish & Wildlife Hangar Property) to Richard Page, d/b/a
SOAR International Ministries, Inc.
.
Approval -- Consents to Sublease From SOAR International Ministries, Inc. to:
a. Lot iA, Block 2, General Aviation Apron
(1) Arctic Barnabas Ministries
(2) Peninsula Aero Technology
b. Lot 3, Block 1, General Aviation Apron
(1) Kenai Express
.
Discussion -- Boating Facility Exit Road
ITEM J:
COMMISSION/COMMITTEE REPORTS
o
2.
3.
4.
5.
6.
7.
Council on Aging
Airport Commission
Harbor Commission
Library Commission
Parks & Recreation Commission
Planning & Zoning Commission
Miscellaneous Commissions and Committees
a. Beautification Committee
b. Alaska Municipal League Report
c. Arctic Winter Games
d. Stranded Gas Committee
ITEM K:
REPORT OF THE MAYOR
ITEM L:
ADMINISTRATION REPORTS
1. City Manager
2. Attorney
3. City Clerk
ITEM M: DISCUSSION
1. Citizens (five minutes)
2. Council
EXECUTIVE SESSION- None Scheduled
ITEM N:
ADJOURNMENT
MAYOR'S REPORT
NOVEMBER 3~ 2004
REGULAR COUNCIL MEETING
CHANGES TO THE AGENDA
REOUESTED
BY:
SUBSTITUTE:
I-2, Purchase Orders ExceedintI $2,500-- Revised list
With 11 / 15 / 04 memorandum regarding 1993 Oshkosh
Blower repair issues.
CITY MANAGER
CONSENT AGENDA
REPLACE:
ITEM G:
Patie 5, November 3, 2004 MeetinE Minutes
CITY CLERK
MAYOR'S REPORT
,
SCHEDULE DECEMBER 15~ 2004 COUNCIL WORK SESSION WITH
LEGISLATORS TO DISCUSS UPCOMING LEGISLATIVE SESSION. WHAT TIME?
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Suggested by'
Administrat
City of Kenai
RESOLUTION NO. 2004-59
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA
TRANSFERI~NG $3,500 IN THE GENERAL FUND TO OBTAIN COST
ESTIMATES FOR PHASE I OF THE SOCCER PARK.
WHEREAS, the City of Kenai is interested in developing Section 36 Lands
starting with a soccer park; and,
WHEREAS, the City administration needs cost estimates in order to apply for
grants to fund the project; and,
WHEREAS, the City received a quote of $3,500 to provide cost estimates from
Wince-Corthell-Bryson Consulting Engineers; and,
WHEREAS, funds are available in the General Fund Contingency account.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA, that the following budget transfers be made:
General Fund
From' Non-Departmental - Contingency
$3,500
To' Recreation - Professional Service
$3,500
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of
November, 2004.
PAT PORTER, MAYOR
ATTEST:
Carol L. Freas, City Clerk
Approved by Finance'
(11/12/2004) hl
WINCE-CORTHELL-BRYSON
CONSULTING ENGINEERS
P.O. BOX 1041, KENAI, ALASKA 99611
(907) 283-4672 Fax (907) 283-4676
Emaii- mblanning@wcbalaska.com
City of Kenai
210 Fidalgo Street, Suite 200
Kenai. Alaska 99611
Attention: Jack LaShot, City Project Manager
Subject: Kenai Phase One Soccer Park
November 11, 2004
Jack,
Wince-Corthell-Bryson is pleased to provide you with this proposal for engineering services
requested on the subject project. It is our understanding that various recreational fields are
planned to be constructed on City property within Section 36, lying east of the Kenai Spur
Highway. The first phase of the project proposes the construction of four soccer fields, a
concession stand, restrooms, equipment storage building, and parking and access roads. In
addition, the concession stand and restrooms would be tied into the City water and sewer mains
running along the highway and a well would be installed on-site for irrigation purposes. The
total area of the phase one improvements is approximately 20 acres.
In order to proceed with the project, it is our understanding that the City requires a preliminary
cost estimate of the phase one improvements. Wince-Corthell-Bryson proposes to provide the
City with a preliminary engineers estimate of costs to construct the phase one soccer park for a
not-to-exceed cost of $3,500.00. We propose to use existing topographic mapping and will
auger one to two test-holes on site to verify depth of overburden. No new drawings are proposed
and the cost estimate will be based on the concept layout proposed by Klauder & Company
Architects dated 8-31-04.
If you have any questions concerning this proposal, please do not hesitate to contact our office at
your earliest convenience.
Sincerely,
/
Mark Blanning~-P.E.
Wince-Corth¢ll- Bryson
AGENDA
KENAI CITY COUNCIL- REGULAR MEETING
NOVEMBER 3, 2004
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http://www.ci.kenm.ak.us
5:00 P.M. -- COUNCIL WORK SESSION/INTERVIEW OF COUNCIL
APPOINTMENT CANDIDATES
CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda
*All items listed with an asterisk (*) are considered to be routine and non-
controversial by the council and will be approved by one motion. There will be no
separate discussion of these items unless a council member so requests, in which case
the item will be removed from the consent agenda and considered in its normal
sequence on the agenda as part of the General Orders.
ITEM B:
SCHEDULED PUBLIC COMMENTS (10 minutes)
.
Proclamation -- Kenai Central High School Football Team.
Robert J. Molloy-- KPB Ordinance No. 2004-36, Amending KPB
5.18.430, Sales Tax Computation -- Maximum Tax, by Increasin§ it From
$500 to $1,000.
,
Cheri Smith, Executive Director, The LeeShore Center--
donation.
Request for
ITEM C:
UNSCHEDULED PUBLIC COMMENTS (3 minutes)
ITEM D:
,,
I~'.PORTS OF KPB ASSEMIILY, LEGISLATORS AND. COUNCILS
ITEM E:
I~_PORT_R OF KENAI CONVENTION &, VISITORS BUREAU
BOARD AND KENAI CHAMBER OF COMMERCE
ITEM F:
COUNCIL APPOINTMENT
,,
Selection of Appointee
Appointee/Oath of Office
ITEM G:
ELECTION OF VICE MAYOR
ITEM H: PUBLIC HEARINGS
o
Ordinance No. 2072-2004 -- Amending KMC 14.20.245 by Adding
Section d(4) to Prohibit Parking of Recreational Vehicles on Private
Property That Has No Principle Permitted Structure Except as Otherwise
Allowed Under KMC 14.20.245(e).
.
Ordinance No. 2073-2004 -- Increasing Estimated Revenues and
Appropriations by $151,314.05 for Shop Site Remediation.
.
Resolution No. 2004-57 -- Supporting Resolutions 2004-1 Through
2004-6 Adopted by the Municipal Advisory Group in Their Advisory Role
to the State of Alaska Under the Stranded Gas Act.
~esolu~ion N'o. 2064-5a -- Awaraing me Bid ~o Z~ecor indusmes, inc.
for Kenai Recreation Center Flooring Replacement - 2004 for the Total
Amount of $17,500.
ITEM I:,
MINUTES
.
*Regular Meeting of October 20, 2004.
ITEM J:
OLD BUSINESS
ITEM K:
NEW BUSINGS
,
Bills to be Paid, Bills to be Ratified
e
Purchase Orders Exceeding $2,500
.
Approval-- Vacation of the West 132 Feet of the 33-Foot Ri~t-of-Way
Access Easement Within the North 33' of Government Lot 33 Recorded in
Book 12, Page 40, Kenai Recording District, All Within Section 34,
Township 6 North, Range 11 West, Seward Meridian, Alaska, the City of
Kenai and the Kenai Peninsula Borough; KPB File No. 2004-251;
Petitioner: Gene L. Crandell of Kenai, Alaska; Location: City of Kenai.
.
Discussion-- Council /Commission Liaison Assignments
Se
Discussion-- Schedule Board of Adjustment Hearing/Appeal of Planning
& Zoning Commission Denial of PZ04-43 (a)- An application for an
Encroachment Permit for side yard setback for the property known as
Lot 1, Block 6, Redoubt Terrace Subdivision, Addition No. 3 (406 South
Forest Drive), Kenai, Alaska. Application submitted by F. DeWayne and
Diane E. Craig, 406 S. Forest Drive, Kenai, Alaska.
ITEM L:
COMMISSION/COMMI~EE REPORTS
.
Council on Aging
Airport Commission
Harbor Commission
,
5.
6.
7.
Library Co_m__mission
Parks & Recreation Commission
Planning & Zoning Commission
Miscellaneous Commissions and Committees
a. Beautification Committee
b. Alaska Municipal League Report
c. Arctic Winter Games
d. Stranded Gas Committee
ITEM M:
REPORT OF THE MAYOR
ITEM N:
ADMINISTRATION REPORTS
,
City Manager
Attorney
City Clerk
ITEM O:
DISCUSSION
1. Citizens (five minutes)
2. Council
EXECUTIVE SESSION- None Scheduled
ITEM P:
,
ADJOURNMENT
KENAI CITY COUNCIL- REGULAR MEETING
NOVEMBER 3, 2004
7:00 P.M.
KENAI CITY COUNCIL CHAMBERS
http' / / www.ci.kenai.ak.us
MAYOR PAT PORTER~ PRESIDING
MINUTES
5:00 P.M. -- COUNCIL WORK SESSION/INTERVIEW OF COUNCIL
APPOINTMENT CANDIDATES
CALL TO O~ER
Mayor Porter called the meeting to order at approximately 7:00 p.m. in the Council
Chambers in the Kenai City Hall Building.
A-X.
PLEDGE OF ALLEGIANCE
Mayor Porter led thos,e assembled in the Pledge of Allegiance.
A-2. ROLL CALL
Roll was taken by the City Clerk. Present were:
Linda Swarner
Blaine Gilman
Cliff Massie
Pat Porter, Mayor
Rick Ross
Joe Moore
A quorum was present.
A-3.
AGENDA APPROVAL
Mayor Porter requested the following changes to the agenda:
ADD AT:
Item M, Report of Mayor -- 10 / 22 / 04 Proposed Capital
Improvements/2006, Arctic Winter Games/Kenai Ice
Multi-Use Facility.
MOTION:
Council Member Moore MOVED to approve the agenda as amended and Council
Member Swarner SECONDED the motion. There were no objections. SO ORDERED.
A-4.
CONSENT AGENDA
MOTION:
~NAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 2
Council Member Moore MOVED to approve the consent agenda as presented and
Council Member Massie SECONDED the motion. There were no objections. SO
ORDERED.
ITEM B:
SCHEDULED PUBLIC COMMENTS
Proclamation -- Kenai Central High School Feotbail Team.
Mayor Porter read into the record a proclamation applauding the success of the 2004
Kenai Central High School Football Team and Coaching Staff for their efforts in being
a three-time winner of the Alaska State Small Schools Football Championship.
B-2o
Robert J. Molloy-- KPB Ordinance No. 2004-36, Amending KPB
5.18.430, Sales Tax Computation -- Maximum Tax, by Increasing it From
$500 to $1,000.
Molloy explained, he spoke against Borough Ordinance No. 2004-36 at the last
Assembly meeting and will again at its final public hearing scheduled for November
16. He requested the City of Kenai to take a position against the ordinance as he
believed the maximum tax should not be raised until after the Borough cuts expenses,
etc. Molloy also noted, the tax cap had not been raised since 1965, but there have
been many exemptions, including personal property tax, a flat tax on airplanes, real
property tax exemptions, etc. -- all a loss of revenue to the borough and a tax inequity
to those groups who will be paying the tax.
B-3.
Cheri Smith, Executive Director, The LeeShore Center-- Request for
Donation.
Smith explained, beginning in 2002, agencies and organizations within the Kenai
Peninsula Borough were involved in a Continuum of Care to discuss homeless needs
in the communities on the Peninsula. Holding quarterly meetings was also suggested
to discuss data collection, inventory process, etc. to assist in the preparation of a
formal gaps analysis to identify homeless services within the Borough. She noted, a
conference call had been scheduled and requested the City contribute $90.00 to assist
in covering teleconference costs.
Mayor Porter noted, there were no funds included in the legislative budget for this
purpose.
MOTION:
Council Member Gilman MOVED for the council to fund the $90.00 and to take the
funds from the legislative account. Council Member Ross SECONDED the motion.
KEN~ CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 3
A brief discussion took place in which comments included:
Though a worthy cause, funds had not been budgeted and there had
been other organizations whose donation requests had not been funded;
· The data collection specific to the City of Kenai will be public information
and available for use by the police department, etc.
The purpose of the funds should be explained more as participating in a
vve]ect to collect data relating to homelessness and public safety...
VOTE:
Swarner No Massie Yes
Gilman Yes
Moore No
Ross
Yes
Porter Yes
MOTION PASSED.
ITEM C:
UNSCHED~ED PUBLIC COMMENTS
,
Paul Shadura -- Kenai Peninsula Fisherman's Association and Aquaculture
Association.
Shadura distributed a copy of a resolution requesting the support of Alaska's
congressional delegation for the continuation of all existing fishery enhancement
programs within designated wilderness areas of Alaska. He explained, his
organizations would be requesting consideration of the resolution by the Alaska
Municipal League (AML). He explained, in order for the AML body to consider a
resolution, five signors/supporters were required and he requested the council's
assistance as a signor.
During a brief discussion, it was explained the Aquaculture Association will want to
come before the council and explain the whole project in the near future; a similar
resolution was being introduced to the City of Homer and the Kodiak Borough.
Because Council Member Swamer would be attending the AML Conference in
Fairbanks, she would be able to be a signor of the resolution in order for the AML to
consider it. Council Member Ross stated he would prefer AML's review of the
resolution and possible action prior to the council considering a formal resolution.
MOTION:
Council Member Swarner MOVED the City of Kenai support the resolution before
them requesting the support of Alaska's congressional delegation for the continuation
of all existing fishery enhancement programs within designated wilderness areas of
Alaska at the AML Conference. Council Member Ross SECO~ED the motion.
KENAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 4
Ross noted for clarification, the council was directing the city's representative
attending the AML Conference to assist in forwarding the resolution to the body and
the council was not necessarily taking a position on the resolution at this time.
VOTE:
Swarner Yes Massie Yes Ross
Gilman Yes Porter
Moore Yes
Yes
Yes
MOTION PASSED UNANIMOUSLY.
ITEM D:
-- None.
REPORTS OF Ir. PB ASSEMBLY~ LEGISLATORS AND .COUNCILS.
ITEM E:
I~EPORTS OF KENAI CONVENTION/h VISITORS BUREAU
BOARD AND KENAI CHAMBER OF COMMERCE
Maya Renken, KVCB Director -- Gave a brief report of recent activities of the Visitors
Center.
Tim Navarre, Kenai Chamber President -- Reminded council of the "Village of Lights"
li§htin§ scheduled for November 5 and the upcomin§ "Christmas Comes to Kenai"
celebration on November 26.
Sue Carter, Kenai Chamber Former Director-- Carter referred to the agreement
recently made between the city and the Chamber to develop a brochure booklet to be
sent to new and relocating businesses, etc., alon§ with the production of a website
showcasin§ the city and a PowerPoint presentation. She presented council with the
final working copy of the brochure which would be §oin§ to press in the near future.
She invited council members to have a closer look at the draft at the Chamber office.
She also reported the website request for proposals was expected to be advertised
with~ the week.
Carter thanked administration for their involvement and talents offered and urged the
development of a portfolio of picture~ from around the city be built for future needs.
ITEM F:
COUNCIL APPOINT~NT
F-1. Selection of Appointee -- Porter thanked the candidates for
participating in the interviews held prior to the meeting and their obvious interest in
the safeguarding of the city. Porter also noted the voting procedures, i.e. first vote for
their choice of two candidates, the second vote, each would vote for their choice of two
KEN~ CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 5
of the four remaining candidates; third vote, vote for two of the remaining candidates,
etc. Votes would be tabulated by the City Clerk and checked by the City Manager.
First Vote:
Eldridge
,.lenckes
0 I Boyle
2 . Navarre
DuPerron
Buffer
Second Vote:
Boyle 3 Jenckes 1
Navarre 3 Buffer 5
Third Vote (due to tie in second vote, top three receiving votes)'
Boyle 2 Navarre 3
Buffer 5
Fourth Vote:
I Navarre 13 I Butler I3 I
Fifth Vote (due to tie):
{Navarre 13 ! Butler [3
Due to the tie, Council Member Swarner suggested a special election be held instead of
delaying the meeting. Ross suggested one more vote be taken and ff a tie, a break be
taken and then, ff another tie discuss a special election.
Sixth Vote:
[Navarre 19. I Butler 13 I
James N. Buffer, III was elected by council.
BREAK TAKEN: 9:14 P.M.
BACK TO ORDER: 9:23 P.M.
F-2. Appointee/Oath of Office -- Mayor Porter administered the oath of
office to James N. Buffer, III and Buffer took his seat on the dais.
ITEM G:
ELECTION OF VICE MAYOR
KENAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 5
of the four remaining candidates; third vote, vote for two of the remaining candidates,
etc. Votes would be tabulated by the City Clerk and checked by the City Manager.
First Vote'
IEldridge ! Floyle
Jenckes I0 -
2 Navarre
DuPerron
Buffer ~4
I
Second Vote'
,,,
Boyle 3 Jenckes 1
Navarre 3 Buffer 5
Third Vote (due to tie in second vote, top three receiving votes)'.
Boyle 2 Navarre 3
Buffer 5
Fourth Vote:
I Navarre [3 [Buffer
Fifth Vote {due to riel;
! Navarre 13 IButler [3 i
Due to the tie, Council Member Swarner suggested a special election be held instead of
delaying the meeting. Ross suggested one more vote be taken and if a tie, a break be
taken and then, ff another tie discuss a special election.
Sixth Vote:
l Navarre 12 IButler I4
James N. Buffer, III was elected by council.
BREAK TAKEN: 9:14 P.M.
BACK TO ORDER: 9:23 P.M.
F-2. Appointee/Oath of Office -- Mayor Porter administered the oath of
office to James N. Buffer, III and Buffer took his seat on the dais.
ITEM G:
ELECTION OF VICE MAYOR,.,
KENAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 6
MOTION:
Council Member Gilman MOVED to nominate Joe Moore for Vice Mayor and Council
Member Ross SECONDED the mot/on.
VOTE:
Swamer
Yes
Massie
Yes
Gilman Yes Buffer Yes
Moore Yes
Ross
Porter
Yes
Yes
MOTION PASSED UN~~OUSLY.
ITEM H:
,.
PUBLIC HEARINGS
H-.X.
Ordinance No. 2072-2004 -- Amending KMC 14.20.245 by Adding
Section d(4) to Prohibit Parking of Recreational Vehicles on Private
Property That Has No Principle Permitted Structure Except as Otherwise
Allowed Under KMC 14.20.245(e).
MOTION:
Council Member Moore MOVED to adopt Ordinance No. 2072-2004 and Council
Member Massie SECONDED the motion.
There were no public comments. City Planner Kebschull explained the amendment
was a proactive effort due to a loophole in the current code. She noted, the current
code allows for temporary use, a maximum of 30 days, for a recreational vehicle to be
used for occupancy and living on a residential lot with a principal structure. The
amendment was prepared because they experienced individuals setting up vehicles as
permanent living structures on lots without a principal structure. She noted, the
intent of the ordinance was not to limit the use of individuals who have homes on lots
to allow visitors to hook up for temporary use and the code has exceptions included
for individuals with building permits.
Moore asked if the ordinance could be enforced and would it be complaint driven when
used. Kebschull answered, the ordinances are always complaint driven. She also
noted, there are many who take advantage of the current ordinance by saying they
unhooked the vehicle and took it to get fueled and then returned and hooked up
again.
Ross asked, without the ordinance, he could conceivably purchase several lots in a
residential area, place pads on them, and mm them into recreational vehicle rental
KEN~ CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 7
sites. Kebschull answered yes, and people could come and go and there would be no
way to prove they were being rented. Kebschull answered, that is the concern and it is
believed that is happening.
VOTE:
[ Swamer I Yes ! Massie !Yes !Ross I Yes
I Moore Yes
MOTION PASSED UNANIMOUSLY.
H-2o
Ordinance No. 2073-2004-- Increasing Estimated Revenues and
Appropriations by $151,314.05 for Shop Site Remediation.
MOTION:
Council Member Moore MOVED to adopt Ordinance No. 2073-2004 and Council
Member Ross SECONDED the motion.
John Williams, 306 Candlelight Drive, Kenai -- Williams reported he had a
conversation w/th a long-time resident of the area who remembered the site was used
as a fuel dump by the military. Williams asked if the city is investigating the
possibility of going back to the government for help in remediation of the property.
Attorney Graves reported, in prior years, an investigation was done on this and other
areas and whether there could be assistance in remediation of the sites. He noted, the
funds referred to in this ordinance are grant funds to start the process. Williams
asked if the congressional delegation could be contacted for help in acquiring funding
for the remediation. Graves answered yes, the delegation could be contacted and it
was his understanding from other communities dealing with similar problems, it has
been found it is easier for the Corps of Engineers to furnish in-kind contributions with
technical help and support than money because of their budgetary process.
City Manager Snow reported, on December 17, 2003, the council requested these
funds be reappropriated from an airport project to this project. She added, she
recently received information on EPA reparation of Brown Fields where there could be
federal funds available for the remediation.
Moore noted, the city already has a large project under the Corps' scrutiny and asked
if the city would want them to be involved in this project as well when a significant
amount of funds may be requested from the Corps for the coastal project. Graves
noted, that would be a political question_and should be considered by council. Moore
stated he believed they should be very careful not to affect the success of one project
by requesting funds for another.
KENAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 8
Ross asked if the reappropriation was requested with a specific plan for the use of it.
Public Works Manager La Shot stated, wording in the grant notes the funds will be
used for environmental work and site remediation. Ross asked if council would have
an opportunity to review the plan and ff there would be any commitments coming from
that plan after the initial project starts. La Shot reported a purchase order was
included on the list that would start the process with requestin~ sam~!ing and the
preparation of a work plan. Snow notea the language in the reappropriation request
as, "The funds would fund site remediation, treatment and/or disposal of softs of the
city maintenance yard property, the eventual site of the proposed maintenance facility
as well as to extend the sewer main, proper abandonment of all leach pits and further
soil and groundwater testing and monitoring. The Alaska Department of
Environmental Conservation has requested the city proceed with the remediation."
Ross asked if any agreement had been signed by the city other than the broad
language in the reappropriation request as far as the funds being used for general
exploration and/or remediation, and was the city is not getting involved in a project
that it would have to appropriate local funds to finish. La Shot answered, not at this
time but as the project progresses, there will be decisions to be made. Council
Member Buffer asked if the project noted in the Project Status List was the same
project and La Shot confirmed it was. Buffer asked the range of contaminants and La
Shot noted, it was believed to be in the diesel/gas range. He added, there is a dirt pile
stored from an airport project too.
La Shot also noted, he did not know if the Corps would be a problem with the two
projects as the Corps had been given the responsibility to take care of cleanup of past
military operations, etc.
VOTE:
Swerner lYes
Gilman Yes
Moore Yes
Massie Yes Ross Yes
Buffer Yes Porter Yes
MOTION PASSED UNANIMOUSLY.
H-~o
Resolution No. 2004-57 -- Supporting Resolutions 2004-1 Through
2004-6 Adopted by the Municipal Advisory Group in Their Advisory Role
to the State of Alaska Under the Stranded Gas Act.
MOTION:
KENAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 9
Council Member Ross MOVED for adoption of Resolution No. 2004-17 and Council
Member Gilman SECONDED the motion. Council Member Moore requested
UNANIMOUS CONSENT.
There were no public comments. Ross explained the Municipal Advisory
Group Resolutions No. 1-6 referred to Resolution No. 2004-57 had been reviewed
previously by council and Resolutions No. 7 and 8 had been adopted by other cities.
,~ were attached ro Resolution No. 2004-57. ~oss rcco~.e~.~,~,~' R~,~,~; .... : ..... ~';o.
2004-57 be adopted and added, a similar resolution would be taken to the AML body
for consideration.
VOTE:
There were no objections. SO ORDERED.
i-4.
Resolution No. 2004-58 -- Awarding the Bid to Dicor Industries, Inc.
for Kenai Recreation Center Flooring Replacement - 2004 for the Total
Amount of $17,500.
MOTION:
Council Member Massie MOVED for adoption of Resolution No. 2004-58 and Council
Member Swarner SECONDED the motion.
There were no public or council comments.
VOTE:
Swarner Yes
Gilman Yes
Moore Yes
Massie
Buffer
Yes
Yes
Ross
Porter
Yes
Yes
MOTION PASSED UNANIMOUSLY.
ITEM I: MINUTES
I-1.
Regular Meeting of October 20, 2004 -- Approved by consent agenda.
ITEM J:
OLD BUSINESS-- None.
ITEM K:
NEW BUSINESS
K-I.
Bills to be Paid, Bills to be Ratified
KEN~ CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 10
MOTION:
Council Member Moore MOVED to pay the bills and Council Member Ross
SECONDED the motion. Council Member Swarner requested UNANIMOUS
CONSENT. There were no objections. SO ORDERED.
Purchase Orders ~'xceeding $2,500
MOTION:
Council Member Ross MOVED for approval of the purchase orders exceeding $2,500
and Council Member Moore SECONDED the motion.
La Shot explained the payment to American Environmental would include another
round of water table sampling and preparation of work, moving into the next step of
cleanup. He added, approximately $17,000 would be for in-place sampling of wells
and field work. He also noted, there were three wells across Airport Way and a well on
the formerly leased Haliburton lot which will be useful to the city.
VOTE:
Council Member Moore requested UNANIMOUS CONSENT. There were no objections.
SO ORDERED.
K-3o
Approval-- Vacation of the West 132 Feet of the 33-Foot Right-of-Way
Access Easement Within the North 33' of Government Lot 33 Recorded in
Book 12, Page 40, Kenai Recording District, All Within Section 34,
Township 6 North, Range 11 West, Seward Meridian, Alaska, the City of
Kenai and the Kenai Peninsula Borough; KPB File No. 2004-251;
Petitioner: Gene L. Crandell of Kenai, Alaska; Location: City of Kenai.
La Shot explained the property was in the process of being sold and the realtor
suggested the easement be vacated which is typically used for right-of-way purposea.
The process went through to the Borough Planning Commission and they referred it
back to the city, which is the normal process. It was also explained, council had thirty
days in which to veto the vacation or no action would consider it approved by council.
Clerk Freas was requested to forward a letter of no objection to the Borough.
Discussion -- Council /Commission Liaison Assignments
Council reviewed the list of commissions and committees included in the packet and
made the following liaison appointments:
KENAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 11
Library Commission
Parks & Recreation Commission
Airport Commission
Harbor Commission
Plannm§ & Zonm§ Commission
Beautification Committee
C~'.:nci! on A~na
Council Member Gilman
Council Member Moore
Council Member Swarner
Council Member Massie
Council Members Ross and Moore
Council Member Swarner
Council Member Gilman
Kenai Convention & Visitors Board
Arctic Winter Games
Economic Development District Board
Challenger Board
Mayor Porter ana Council Memk)er Bur. ier
Parks & Recreation Director Frates and
Council Member Massie as Alternate
VISTA Representative
Freas is to con_tim whether a council
representative is required.
K-5.
Discussion-- Schedule Board of Adjustment Hearing/Appeal of Planning
& Zoning Commission Demal of PZ04-43{a)- An application for an
Encroachment Permit for side yard setback for the property known as
Lot 1, Block 6, Redoubt Terrace Subdivision, Addition No. 3 {406 South
Forest Drive), Kenai, Alaska. Application submitted by F. DeWayne and
Diane E. Craig, 406 S. Forest Drive, Kenai, Alaska.
It was noted a packet of information will be prepared for the Board of Adjustment
review. Ross noted, he would be not be present at the hearing but would participate
in the decision which is allowed upon review of the hearing minutes/verbatim.
The Board of Adjustment Hearing on the matter was scheduled for 6'00 p.m.,
November 17, 2004 in the Kenai City Council Chambers.
ITEM L:
COMMISSION/COMMITTEE REPORTS
L-1. Council on Aging -- Swarner reported the next meeting was scheduled
for 10'00 a.m., November 4.
L-2. Airport Commission -- Moore reported the regularly scheduled meeting
of November 11 was cancelled because of the holiday. However, a special meeting
would be held at 6:00 p.m. on November 10 to review and make a recommendation to
the Planning & Zoning Commission regarding the former Fish & Wildlife hangar and
lease lot.
L-3. Harbor Commission -- It was reported the next meeting was scheduled
for Monday, November 8.
_
KENAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 12
L-4o
cancelled.
Library Commission -- Gilman reported the November meeting was
L-5. Parks ~ Recreation Commission -- Ross reported the next meeting was
scheduled for Thursday, November 4.
L-6. Planning ~ Zoning Commission -- Ross reForted the Commission
recommended approval of the vacation of easement reviewed earlier in the meeting by
council and denied an encroachment permit which is the topic of the Board of
Adjustment hearing scheduled earlier in the meeting.
L-7o
L-7a.
Miscellaneous Commissions and Committees
Beautification Committee -- No report.
L-To. Alaska Municipal League Report -- Swarner reported the AML
Conference would be held in Fairbanks during the next week. Porter noted she would
be attending the Newly Elected Officials portion of the program.
L-7c. Arctic Winter Games -- It was reported the next meeting was scheduled
for Thursday, November 4. Freas was requested to forward a letter noting the
appointment of Frates as the city's representative and Massie as the alternate.
L-7d. Stranded Gas Committee -- Ross reported he would be participating in
a teleconference on November 8 at which time the Committee would be hearing a
presentation with Enbridge.
ITEM M: REPORT OF THE MAYOR -- Mayor Porter noted the following:
She attended a meeting with Senator Stevens and Congressman Young
and information from the meeting with Senator Stevens was included in the packet as
an information item.
· Letters requested by council to be written regarding stranded gas and
mixing zones were prepared and mailed.
· She requested Clerk Freas to write a letter to HUD regarding the North
Gate Apartment Complex closure.
· She discussed the progress of the ferry system project with KPB
Assembly President Superman and urged him to continue the participation by the
Borough as the project was noted in the Senator Stevens information.
· She met with Rita Smagge, Executive Director of the Kenaitze Indian
Tribe regarding the development of a facility in the city. They also discussed the
Tribe's placement of a display in the chamber showcase.
· She will travel to Anchorage to attend a reception for the Northern
Dynasty Pebble Mine project.
~NAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 13
· Suggested the welcome letter to be developed by the Chamber and City
include wording to express appreciation the entity is considering moving/developing
their business in Kenai.
· She and members of administration met with representatives from Arctic
Winter Games (AWG) relating to the lack of federal funding offered for improvements to
the multipurpose facility. Porter noted, because of the lack of funds earmarked for the
ice rink. the Games Host Societv offered $200.000 for issues needing to be addressed
ac me rmic 1hr ~2e Games. Porter suggested council actdress what they wan~ ~o ao in
relation to those issues, i.e., whether they want to invest more city money into the
rink, whether to accept the $200,000 and not add any city funds, or search for
additional funds to make the temporary amenities suggested by the AWG to be
permanent, etc.
Porter suggested a work session be held between council and representatives of the
AWG. Ross requested a packet of information to review in advance, with tentative
proposals already rev/ewed by the Fire Department, Planning & Zoning, etc. Ross
noted, he believed there were some funds remaining in the capital projects fund which
may be used for repairing a condensation problem at the rink. La Shot noted, the
purchase order for repairing the condensation problem would be taken from the
building maintenance account. Ross stated he would like the remainder of the capital
projects fund on the table as part of the overall discussion at the work session. Moore
requested Architect Klauder and Fire Chief Walden to attend as well.
Snow reported she had some specific information which was reviewed by council
previously relating to heating, etc. She added, the only item not required under the
AWG agreement is lighting and all the other items suggested by the AWG are items
they believe the $200,000 would cover. Council requested alternatives be provided to
them from which to choose. Council was requested to address any concerns they have
to administration in order for answers to be available at the work session.
A work session was set for Monday, December 6, 2004 in the Council Chambers. The
Harbor Commission meeting, normally scheduled for use of the Chambers will be
moved to the Clerk's Conference Room in City Hall.
ITEM N:
,,
ADMINISTRATION REPORTS
N-1. City Manager-- Snow noted the following:
· The Finance Director's investment report was included in the packet.
· A memorandum from Public Works Manager Komelis was included in
the packet relating to Lawton Drive. She noted, the only item left in the installation
agreement in terms of upgrades required to be completed, was completed, i.e. the
paving. Komelis' memorandum indicates the final punch list of items needed to fully
complete the installation agreement. Snow reported, a copy of the memorandum was
KENAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 14
sent to the developer (Anderson) and the McLane Consulting Group. If the information
is not received, they will meet with them again as a follow up. Swarner suggested any
correspondence with Anderson should include end dates for his response.
* The preliminary draft of the Kenai Economic Development Strategy plan
has been completed and the group would like to present it to council for their
comments at the November 17 meeting. Council requested the presentation be made
during the meet/ng due to the Board of Adiustment hearing scheduled prior to the
meeung.
N-2. Attorney -- Attorney Graves reported he would be attending the Alaska
Association of Municipal Attorneys meeting in Fairbanks on November 8 and 9.
N-3. City Cl~k -- Clerk Freas reported she would be attending the Alaska
Association of Municipal Clerks seminar in Fairbanks on November 9. She also urged
council, administration and public make an effort to thank those people working on
election boards during the election season.
ITEM O:
DISCUSSION
0-1. Citizens
Bob Peters -- Noted news information stating the state would have extra funds due to
the price of oil and suggested the city have a plan to actively pursue funds to come to
the city.
0-2. Council
Moore -- Noted the following:
· Suggested congratulatory letters be sent to senators and
representatives.
· Referring to the Shadura request, he noted it would be worthy of a
follow up of the council as the council has always been supportive of the fishery. He
added, the issue is both sport and commercial fishery and he would like it to come
back to council.
· Noted lights needing replaced at the ice rink.
· Suggested a response be sent to the resident whose letter was
included in the packet regarding his boat tax. It was suggested the issue be brought
to council during the budget work session. Freas was requested to advise the resident
council would review the issue during budget time.
Swarner-- Noted the following:
· Welcomed Jim Buffer as council member.
KENAI CITY COUNCIL MEETING
NOVEMBER 3, 2004
PAGE 15
Reported she and Council Member Moore attended the Kenai Watershed
Forum work session and discussed the importance of the Kenai River Festival being
held in Kenai. The Forum assured them they would not move from Kenai but also
discussed other sites in the city where the festival could be held.
· She attended a Foraker grant seminar on accidental technology and
suggested council consider a strategy plan for all technology in City Hall as well as
ether depa~ments.
· ~qoteci the decorauons/hr Mayor W~ams' recepuon aha me r~oad
tickets presented to Williams were donated by the Alaska Railroad.
Massie -- Congratulated Buffer on his appointment.
Ross -- Welcomed Buffer as council member.
Gilman-- No comments.
Butler-- Noted the following:
· Thanked council for the opportunity to serve and the confidence they
Placed on him.
· Suggested the social security numbers included on the Games of Chance
applications be blocked out before placement in the packet.
Porter-- Reported she would not be present for the November 17 meeting and
Council Member Moore will be chairing the council meeting as well as the Board of
Adjustment Hearing.
EXECUTIVE SESSION- None Scheduled
ITEM P:
,,
ADJOURlgMENT
The meeting adjourned at approximately 9'44 p.m.
Minutes transcribed and prepared by:
Carol L. Freas, City Clerk
KENAI CITY COUNCIL WORK SESSION
NOVEMBER 3, 2004
5:00 P.M.
KENAI CITY COUNCIL CHAMBERS
MAYOR PAT PORTER, PRESIDING
WORK SESSION NOTES
Council Present'
Staff Present:
L. Swarner, R. Ross, C. Massie, B. Gilman, P. Porter, J. Moore
(arrived at 5:40 p.m.)
City Attorney Graves, City Clerk Freas, City Manager Snow
Mayor Porter opened the work session at 5:00 p.m. and welcomed those persons
submitting letters of intent and resumes to be considered for appointment to the
council seat vacated by Porter when she was elected Mayor. Those candidates were:
Neal DuPerron, Barry Eldridge, Tim Navarre, Jim Jenckes, Mike Boyle, and Jim
Buffer.
The interview process began with each candidate giving a two-minute amount of time
in which to introduce themselves and give a statement of their interest. Then, each
council person asked a question and each candidate was given time to answer the
question. For each question, the order in which the candidates answered was rotated.
After the question/answer period, each candidate was given two minutes for a wrap-
up statement.
After the interview session was completed, Porter explained the council would hold an
election for the appointment during the council meeting which would begin at 7'00
p.m. in the Council Chambers.
The work session ended at approximately 6:25 p.m.
Notes prepared by:
Carol L. Freas, City Clerk
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MEMORANDUM
.
CITY OF KENAI
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 ~
TO'
Through'
FROM'
DATE'
SUBJECT:
Linda L. Snow, City Manager
Jack La Shot, Public Works Managel~~'~
Mike Wichman, Shop Foreman
November 15, 2004
1993 Oshkosh Blower
PROBLEM
Unit AP-41, the 1993 Oshkosh Blower, has four bad cylinders on the right bank and a
cracked right head plus the remainder of the engine is in question.
HISTORY
1. AP-41 has a total of 1,987 hours on the engine.
2. The crankshaft has been stressed due to the instant stress induced from the three
broken harmonic balancers.
3. The unit has overheated many times due to snow pack on cooling and air intake
systems. Note: The overheating and snow packing was taken care of in 1995 by
Oshkosh, and the engine warranty was extended one (1) year at the time of repairs.
DIRECTION OF REPAIRS
1. City Shop will pull engine and take it to Alaska Pacific Detroit Diesel so they can
disassemble the engine and give us an exact quote. An estimate would be between
$17,000 and $20,000. If a major core failure such as crankshaft, camshafts, cylinder
heads, oil pump, blower housings and rotors would occur, the price of a rebuild
could be as high as $30,000. The cost of a new, never re-manufactured engine from
the factory would be approximately $40,000 plus freight from Detroit, Michigan.
2. Rebuild the engine including a full dynamometer test. This process includes a one-
year parts and labor warranty F.O.B. City of Kenai Shop.
Memo to Linda L. Snow, City Manager
Page 2
November 15, 2004
My recommendation is to obtain a sole-source bid from Alaska Pacific Detroit Diesel
in Anchorage since no other diesel shop can or will offer a one-year parts and labor
warranty or a dynamometer test. Also, the time required to bid the work would add
significantly to the blower down time.
4. According to the Airport Manager, there is no plan for replacing this unit within the
next three years. This reinforces my recommendation to have Alaska Pacific Detroit
Diesel rebuild the engine and extend the life of this unit a minimum of ten more
years.
5. It will take Alaska Pacific Detroit Diesel two weeks to remanufacture the engine from
the time they receive the engine. Delivery time on a new engine is one month.
MW/jet
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210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 ~
M emoranClum
Date'
To'.
For:
From:
November 12, 2004 ~;.L~
Linda L. Snow, City Manager
November 17th Council Meeting
Kim Howard, Assistant to the City Manager
Hangar Purchase ~ Lease of Lot 2, Block 3, General Aviation
Apron (Former Fish ~ Wildlife Hangar Property)
The following one-time premium bids were received for the former Fish & Wildlife Hangar:
Richard Page d/b/a SOAR International Ministries, Inc.
$60,075
Aaron Schneider
$55,225
The Instructions to Bidders state that the bidder offering the highest one-time premium, after
approval by the City Council, would be awarded ownership of the hangar and a lease at a term
set by the dollar amount of improvements shown on the schedule in the bid packet.
SOAR International Ministries, Inc. submitted the highest one-time premium and the attached
lease application for the property. They propose to utilize and improve the existing facility and
estimate the additional improvements to be $25,000 - $50,000. (No additional improvements are
listed in Schneider's application.) Based on their $60,075 premium, SOAR International
Ministries, Inc. is entitled to a 13-year lease. Once the additional improvements have been
completed, the lease term can be amended to extend the tenn.
The Airport Commission reviewed the application at a special meeting on November 10th and
determined the intended use complies with the Airport Masterplan. On the same date, the
Planning and Zoning Commission determined the intended use complies with the
Comprehensive Plan.
If Council approves the award, a lease will be prepared for signatures.
Cc' Richard Page, dgo/a SOAR International Ministries, Inc.
_
Attachments
,,
F OR C~TY USE ONLY
CITY OF KENAI
210 Fidalgo Avenue, Suite 200
Kcnai, Alaska 99611-7794
(907) 283-7535 Ext. 223
LEASE APPLICATION
Name of Applicant
Address
Business Name and Address
Kenai Peninsula Borough Sales Tax No. (if applicable)
State of Alaska Business License No. (if applicable)
Legal Description L. oT ~.. ,Bcoclr-. B G'~2'N~ ~VIA'T'¢O~ Ot:~.,~lq
Purpose of Proposed Lease
Tern', of Proposed Lease
Description of Proposed Development (type, ccnstruction materials, size, etc.)
Time Schedule for Proposed Development · Beginning Date ,,30C¥
,,
· Completion Date (maximum oftwo years) ....
Estimated Value of Improvements $ ~ ~'~ ~'O~ ~
APPLICANT'S SIGNATURE-
_
APPLICANT'S SIGNATURE:
Date' /~0~. ,:~.~ zooy
Date:
CITY OF K~NAI
LEASE APPLICATION CHECKLIST
(All items must be completed before application can be accepted.)
Attach a development plan drawn to scale. Drawings do not need to be prepared by an
architect or engineer. Show the layout of the lot and the location of all proposed
improvements. The drawings also need to show the following.
1. Existing buildings
2. Proposed buildings
"FI mE
3. Parking facilities (how many spaces and location)
Site improvemeh,ts
· Areas to be cleared and method of disposal
· Proposed gravel orpaved areas
N o q- ~q- 'r't4 t ~
Landscaping plan
(retention of natural vegetation and/or proposed planting areas)
5. Building set backs
6. Drainage plan and method of snow removal
7. Circulation plan (all entrances, exits and on-site access)
15'77 rU ~--
8. Location of sign(s) - sign permit required
9. Fencing- permit required if height is over 6'
&-X/:5
10.Curb cuts (where applicable)
~x rSTr~ O-
11. Building height
12. FAA Form 7460 Notice of Proposed Construction
(For construction of buildings on airport land. This form is to be submitted
to the FAA by the applicant. It can be downloaded from the FAA website
http'//www.alaska.faa.gov/aimort_s. The site has a menu for forms.
Note' #12 is applicable only to successful lessee.
3 g. TTAC.~MENT D
CITY OF KENAI
LEASE APPLICATION- CONDITIONS OF ACCEPTANCE
(To be completed by the City)
Kenai Peninsula Borough Parcel No.
Zoning /Z- --
Permits Required:
Conditional Use Permit
· Landscape Review
· Building Permit
· Sign Permit
Assessments
Insurance Limits Required
Construction must begin by
Completion date for major
Plannint Commission Approval
By:
Date of Approval:
Ci~, Council Apnrovai
By:
City Clerk
Date of Approval:
THIS APPLICATION WILL BE MADE A PART OF THE LEASE
CITY OF KEN
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 ~
1992
Memoranclum
Date:
To:
From:
November 12, 2004
Linda L. Snow, City Manager
/
Kim Howard, Assistant to the City Manager ~ ~'
Consents to Subleases from SOAR International Ministries, Inc. to
a. Lot lA, Block 2, General Aviation Apron
(1) Arctic Barnabas Ministries
(2) Peninsula Aero Technology
b. Lot 3, Block 1, General Aviation Apron
(1) Kenai Express
SOAR International Ministries, Inc. currently leases the above referenced properties and
subleases to Arctic Barnabas Ministries, Peninsula Aero Technology and Kenai Express.
Their leases state the lessee may not assign the lease or sublease the whole part of the
premises or any part without the written consent of the City.
The parties are in compliance in payments to the City and taxes to the Borough. The City
Attorney has reviewed the documents and has no objections to the subleases.
If Council approves the subleases, Consents to Subleases can be prepared for your signature.
Attachments
Cc:
SOAR International Ministries, Inc.
T o,'.~ ~-.. , j ·
International Mimstries
Lease ~reement
This lease is made between SOAR lmemational Ministries, Inc..... herein called Lessor, and Arctic B, ,'nabas..
_Mi~stries, herein called Lessee.
Lessee hereby offers to lease from Lessor the premises situated at 135 Granite Point Court described as North
End first and second floor office space' along with 1 space in the hanger, upon the following TERMS and
CONDITIONS'
1. Term and Rent. Lessor leases the above premises for a term of one year, commencing August 1, 2004 and
terminating on August 31, 2005, or sooner as provided herein at the momhly rental of_$ payable in
advance on the first day of each month, during the term of this lease.
2. Use. Lessee shall use and occupy the premises for ministry purposes only. The premises shall be used for no
other purpose without consent of the Lessor. The Lessor represents that the premises may lawihlly be used for
such purpose.
3. Care and Maintenance of Premises. Lessee acknowledges that the premises are in good order and repair,
unless otherwise indicated herein. Lessee shall, at his own expense and at all times, maintain the premises in
good and safe condition and shall surrender the same, at termination hereof, in as good condition as received,
normal wear and tear excepted. Smoking is prohibited. Lessee shall also maintain in good condition the
adjacent parking lot.
4. Alteration. Lessee shall not, without first obtaining consem of Lessor, make any alterations, additions, or
improvements, in, to or about the premises.
5. Ordinances, Statutes and General Safety. Lessee shall comply with all statutes, ordinances and
requirements of all municipal, state and federal authorities now in force or which may hereafter be in force,
pertaining to the premises, occasioned by or affecting the use thereof by Lessee. Lessee shall conduct all
operations in a safe manner using all appropriate safety features and protection.
6. Security. Lessee shall ensure the physical security of the above premises and notify the Lessor of any
discrepancies.
7. Assignment and Subletting. Lessee shall not assign this lease or sublet any portion of the premises without
prior consent of the Lessor, which shall not be unreasonably withheld. Any such assignmem or subletting
without consent shall be void and, at the option of the Lessor, may terminate this lease.
8. Utilities. Lessee shall be solely liable for telephone services.
9. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to emer upon the premises at
reasonable times and upon reasonable notice, for the purpose of inspecting the same, and will permit Lessor at
any time within sixty days prior to the expiration of this lease, to place upon the premises any usual "For Lease"
signs, and permit persons desiring to lease the same to inspect the premises thereafter.
10. Indemnification of Lessor. Lessor shall not be liable for any damage or injury to Lessee, or any other
person, or to any property, occurring on the premises or any part thereof, and Lessee agrees to hold Lessor
harmless from any claims for damages, no matter how mused.
11. lnsurm~e~.' The Lessee shall maintain insurance.
12. Entire Agreement. The foregoing constitutes the entire agreement between the parties and may be
modified only by a writing signed by both parties.
Signed this/(~ dayof ~~.~ d~'.~~2004
By: - Lessor By: .... ssee
a~g~l ofl
SOAR International Ministries
Lease Agreement
This lease is made between SOAR Intema_tional Ministries, Inc_. herein called Landlord,
and Kenai Exoress, herein called Tenam.
_
Tenant hereby offers to lea~e from Landlord the premises situated at 125 FBO street
described as aircraft tie-down spaces and front portion of small office building,' upon the
following TERMS and commons: -.
- .. : ;.~.;. ~.
1. Term and Rent. Landlord leases the above premises for a term of six months,
commencing September 1, 2004 and terminating on February 28, 2004. The monthly
rental of $____ for the front half of the small office building consisting of approximately
360 sq. f~.and tie downs located in the south lot in front of the leased office building.
Rem is payable in advance on the first day of each momh, during the term of this lease.
Lease may be prOrated Odor to September 1, 2004 based on a 30 day month.
2. Use. Tenant shall use and occupy the premises for commercial aviation operations.
The premises shall be used for no other purpose without consent of the Landlord. The
Landlord represents that the premises may lawfully be used for such purpose. Hangar
space can be leased upon prior approval at the daily rate of~.__. Payment for additional
daily rated hangar space is due at the end of each momh. Daily rates are predicated on
any part of a 24 hour day, and includes weekends.
3. Care and Maintenance of Premises. Tenant acknowledges that the premises are in
good order and repair, unless otherwise indicated herein. Tenant shall, at his own
expense and at all times, maintain the premises in good and safe condition and shall
return such in as good condition as received, normal wear and tear excepted, at the
termination of the lease. Tenant shall be responsible for all janitorial duties for the leased
premises, including trash disposal and shall be responsible for any dammage caused to
the premises by its employees or customers. Smoking is authorized only in authorized
designated areas. Landlord shall maintain pavement and building structures including
foundations and roofs. Tenant shall also maintain in good condition the approved parking
area. Landlord will provide snow removal in front of the leased tie downs and any
unoccupied tie down spaces. Tenant is responsible for all movement of Tenant owned
aircraR. Also Tenant shall provide access at all times to the hangar adjacent to leased
office and ramp area.
4. Alteration. Tenant shall not, without first obtaining consent of Landlord,' make any
alterations, additions, or improvements, in, to or about the premises. Tenant may, with
Landlord approval, post the necessary signs and company Iogos on the premises in
connection with the conduct of its business in accordance with City, Borough and State
requirements..
5. Ordinances, Stntutes and General Safety. Tenant shall comply with all statutes,
ordinances and requirements of all municipal, state and £eder~ authorities now~in force or
which may hereafter be in £orce, pertaining to the premises, oCCaSioned bY or.affecting
the use thereof bY Tenant. Tenant=shall conduct all operations in a safe.manner using all
appropriate safety features and protection. Tenant employees and contractors workin~ on
the premises shall comply with all environmental laws, regulations, and policies of'
Federal, State, and Local Governments. Tenant shall take all actions nece~ to prevent
Page I of 3
SOAR International Ministries
Lease' Agreement
the release or spills of aircraf~ fluids or fuel on the premises and insure proper use,
storage, treatmem, or transportation of hazardous substances.
6. Security. Tenam shall ensure the physical security of the above premises and notify
the Landlord of any discrepancies...
7. Assignment and Subletting. Tenant shall not assign this lease or sublet any. portion
of the premises without prior consent of the Landlord, which shall not be unreasonably
withheld. Any such assignmem or subletting without consem shall be void and, at the
option of the Landlord, may terminate this lease.
8. Utilities. Tenant shall be responsible for electrical and telephone services, including
maimenance and repair of telephone systems. Landlord shall provide for gas and water
services.
9. Entry and Inspection. Tenant shall permit Landlord or Landlord's agents to enter
upon the premises at reasonable times and upon reasonable notice, for the purpose of
inspecting the same, and will permit Landlord at any time within sixty days prior to the
expiration of this lease, to place upon the premises any usual "For Lease" signs, and
permit persons desiring to lease the same to inspect the premises thereat~er.
10. Indemnification of Landlord. Landlord shall not be liable for any damage or injury
to Tenant, or any other person, or to any property, occurring on the premises or any part
thereof, and Tenant agrees to hold Landlord harmless from any claims for damages, no
matter how caused. ..
11. Insurance. The Tenant shall maintain all applicable insurance.
12. Default of Less~ Default by Tenant under this Lease shall include, but shall not be
limited to, the following;
a. Tenant shall fail to pay any installment of rent due, and such failure shall continue for a
period of fifteen (l 5) days following written notice from Landlord.
b. Tenant shall fail to perform any of its other obligations under this L~ease, and such
failure shall continue for a period of fifteen (15) days following written notice from
Landlord specifying the nature of the default, unless such default cannot be fully cured
within said period and Landlord promptly commences such cure and continues with due
diligence.
c. Tenant shall abandon the Premises and cease paying rent.
d. Tenant shall become insolvent, or shall make a transfer in fraud of creditors, or shall
make an assignment for the benefit of creditors.
e. Tenant shall file or there shall be filed against Landlord a petition in bankruptcy or
reorganization or for an arrangement for the benefit of creditors under any section or
chapter of the United States bankruptcy laws or under any similar law or statue of any
State and such petition is not withdrawn or denied within one hundred twenty (120) days
from the date of filing.
13. Landlord Remedies. In the event of a default by Tenant under this Lease, Landlord
may in addition to any Other fight or remedy which Landlord may have at law or equity
continue this Lease in effect by not terminating the Tenant's fight to possession of the
Premises, in which event the Landlord shall be entitled to enforce ail of. its rights and
remedies under this ~e including the right to recover the rent specified in this Lease-as
it becomes due notwithstanding any contrary law, role, statute or regulation. Landlord
shall be under the duty to mitigate its losses, including using its best efforts to relet the
Page 2 of 3
SOAR International-Ministries
Lease Agreement
Premises, or part of it, and [amdlord expressly waives any such contrary law, role, statute
or regulation.
14. Surrender of Premises. Upon termination Of this Lease, Tenam shall vacate the
Premises and remm it in as good condition as received, the elemems, casualty, acts of
God, and ordinary wear and tear excepted. Tenant shall have the fight to remove all
articles of personal property in the Premises and any trade fixtures, the removal of which
will not cause substantial damage to the Premises, and Tenant shall make any repairs
necessitated by such removal.
15. Attorney Fees. In the event either party commences any action or proceeding under
this Lease to enforce any fight or remedy hereunder, the prevailing Party shall be entitled
to recover its reasonable costs and attorney's fees.
16. Notices and Bills. All written notices required or permitted hereunder shall be
delivered in person to the other party, scm by facsimile or mailed First Class, postage
fully prepaid, to the palsies at the addresses set forth hereinafter or to such other address
as either party may hereafter designate in writing and deliver as provided in this
Paragraph.
Landlord:
SOAR International Ministries
135 Granite Pt. Ct.
Kenai, AK 99669
Fax: 907-283-7761
Lesse~e:
Kenai Express
16. Entire Agreement. The foregoing constitutes the entire agreement between the
parties and may be modified only by a writing signed by both parties.
Signed this .2.~~day of ~Tz~'-., 2004
By:
Landlord B '
Page 3 of 3
SOAR InternationaI Ministries
Lease A~reement
This lease is made between OAR Intemation~ Mini 'es Inc. herein called Lessor, .md
Pepinsula Aero. Technolo~ herein call~ Lessee.
Lessee hereby offers to lease from LessOr the premises situated at 135 c~atiite Point
Court described'as center first floor reception area, second floor shop and l~ithroom,
hangar space for one air~rait and one aircraft tie-down space, upon the following TERMS
and CONDITIONS:
1. Term and Rent. Lessor leases thc above premises for a term of one year,
commencing January_ 1.20~_ and terminating on 13_ ecember 31, 2004_. or sooner as
provided herein at the monthly rental of $ ____ payable in advance on the first day of
each month, during the term of this lease.
~. Use. Lessee shall ~se and occupy the premises for avionics sales, installation and
repair. The premises shall be used for no other purpose without consent of the Lessor.
The Lessor represents that the premises may lawfillly be used for such purpose.
Additional hangar space can be leased upon prior approval at the daily/monthly rate of
$ . . . A two day grace period for an additional tie-down, will be granted, if
available, for transitio~ aircraft. Additional tie-do~ space can be leased upon prior
approval at the daily/monthly rate of ~c _. Payment for additional daily rated spaces is
due at the end of each month. Daily rates are predicated on any part of a 24 hour period,
'and includes weekends. Payment for additional monthy spaces are due before rental
period begins and are predicated on a 30 day period.
$. Care and Ma~~~~ of Premises. Lessee acknowledges that the premises are in
8ood order and repair, unless otherwise indicated herein. Lessee shall, at his own
expense and at all times, maintain the premises in good and safe condition and shall
surrender the same, at termination hereof, in as good condition as received, normal wear
and tear excited. Smoking is prohibited. Lessee shall also maintain in good condition
the adjac~ent parking lot.
~1. Alleralioa. Lessee shall not, without first obtaining consent of Lessor, make any
alterations, additions, or improvements, in, to or about the premises.
5. Ordinaaees, Statutes and General Safety. Lessee shall comply with all statutes,
ordinances and requirements of all municipal, state and federal authorities now in force or
which may hereafter be in force, pertaining to the premises, occasioned by or affecting
the uso thereof by Lessee. Lessee shall conduct all operations in a safe manner using all
appropriate safety features and protection.
6. Seearily. Lessee shall ensure the physical security of the above premises and notify
the Lessor of any discrepancies.
?. Assi~ameat sad Subletting. Lessee shall not assign this lease or sublet any portion of
tho premises without prior consent of the Lessor, which shall not be unreasonably
withheld. Any such assisnment or subletting without consent shall be void and, at the
option of the Lessor, may terminate this lease. "
$. Utilities. Lessee shall be solely liable for telephone servi~s.
9. Entry and Inspection. Lessee shall permit Lessor or Lessor's agents to enter upon the
premises at reasonable times and upon reasonable notice, for the purpose of inspecting
the same, and will permit Lessor at any time within sixty days prior to the expira~on of
Page 1 of 2
SOAR International Ministries
Lease Agreement
this lease, to place upon the premises any usual "For Lease" signs, and permit person.
desiring to lease the same to inspect the premiss therea~er.
10. Indemnification of Lessor. Lessor shall not be liable for any damage or injury to
Les~, or any other person, or to any property, occurring on the premises or any part
thereof~ and Lessee agrees to hold Lessor harmless from any claims for damages, no
· ~
matter how caused."
11. Insurance. The Lessee shall maintain insurance.
12. Entire Agreement. The foregoing constitutes the entire agreement between the
pmi~ ~md m~y be modified only by a writing sign~ by both parties.
Signed this t~'~' day of~k~r.~~,.N _2004
By: .~~ff_~/~~,~~.~,,]~ssoX")r By;~
_~Lessee
Page 2. of 2
MEMORANDUM
TO'
Linda L. Snow, City Manager
Kornelis, Public Works Manager
FROM'
Keith
October 27, 2004
DATE:
CITY OF KENAI
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014
SUBJECT' Kenai Boating Facility Exit Road
I have been working with The Conservation Fund on a possible land trade. They own the land
that would be useful as an exit from our Boating Facility. The total area that The Conservation
Fund owns is 31~ acres. They do not want to give the City any wetland portion of this acreage.
About 6.42 acres of the northern portion of this property is uplands that they would be willing to
trade to the City.
The Conservation Fund has submitted the attached appraisal report for the 6.42 acres
the City is interested in. The value for this is $80,000.
In .1999, the City had an appraisal done of many City-owned wetland parcels, (attached)
which will help us to determine which parcel(s) the City may be interested in trading for
the 6.42 acres. The Conservation Fund requires an equal value for the land trades.
The City now needs to have a new appraisal done of our wetlands area we think is close
in value to the land we want to own ($80,000). The City will pay for the appraisal of our
wetland area. The Conservation Fund stated that the 93-acre parcel that appraised at
$75,000 (Parcel 8)is the closest in value. I think we should have all 8 parcels re-
appraised. We may want to trade a combination of different parcels.
Once we both agree on the parcels, The Conservation Fund and the City of Kenai will
then make the land trade.
The next step would be to find the capital funds to construct this exit road.
Attachment
cc: Harbor Commission
THE CONSER~"ATION Fi;ND
December 12. 2003
Mr. Keith Komelis
Public Works Manager
City of Kenai
210 Fidalgo Avenue. Suite 200
;
OCT ?. Z
kenai, Alaska 99611~,t" ..........' ": ................. '"': _. 't.~
RE' Property Adjacent to Kenai City Boat Ram~-' '
Dear Keith.
Enclosed please find a copy of an appraisal report recently completed on thc tract of
interest to the City of Kenai. The appraiser estimated the land area at 6.42 acres based on
the drawing you provided to me and concluded a value of $80,000 for that tract.
If you concur with this value thc next step will be to identify and appraise the parcel to be
exchanged. In reviewing the report prepared by the Derry's in 1999 the tract that is
closest in value is the 93-acre parcel for which they concluded a value of $75,000.
I look forward to continued progress to meet our collective interests.
Sincerely,
Alaska Representative
Enclosure
MACSWAIN ASSOCIATES
4401 Business Park Boulevard, Suite 22
Anchorage, Alaska 99503
Ph 907.561.1965 Fax 907.561.1955
Market Value Estimate of 6.42-Acre Land Parcel
Appraised Parcel
Aerial view of 6.42-Acre Kenai Boat Launch Property
Kenai Boat Launch
Bridge Access Road
Kenai, Alaska
Valuation Date
September 10, 2004
File No.
04-1095
Submitted To:
Brad Meiklejohn
The Conservation Fund
9850 Hiland Drive
Eagle River, Alaska 99577
MacSwain Associates i
;,~i ~ I I
4401 Business Park Blvd., Suite 22
Anchorage, Alaska 99503
Telephone: 907-561-1965
Facsimile: 907-561-1955
E-mail: d. shantz@macswain, com
October 5, 2004
The Conservation Fund
9850 Hiland Road
Eagle River, Alaska 99577
Attn' Brad Meikiejohn
Re: 6.42-Acre Land Parcel
Bridge Access Road
Kenai Boat Launch
Kenai, Alaska
Dear Brad'
As requested, we have prepared a Restricted Use Appraisal that analyzes the above-referenced
vacant parcel located within Kenai city boundaries fronting the west side of Bridge Access Road
and contiguous to the Kenai Boat Launch. The purpose of the report is the estimate the market
value of the 6.42-acre parcel. Importantly, the valuation assumes the appraised parcel is a legal
partition from a larger 31.5-acre parcel. Platting the parcel, which is a hypothetical condition of
this report, may produce a small variation in land area but have no significant affect on the value
indicator. We understand you intend to use the appraisal to evaluate a potential land exchange
involving the City of Kenai. As mutually agreed, we perform a complete appraisal process but
present limited descriptive and analytical discussions in the report. Moreover, we prepare this
report to comply with Standard Rule 2-2(c) of the Uniform Standards of Professional Appraisal
Practice (USPAP) that pertains to a Restricted Use Appraisal.
Based on the data, reasoning, and analysis relied upon in the appraisal process, we 'esiimate the
market value of the appraised parcel, as of September 10, 2004, is $80,000.
!
Market Value of 6.42-Acre
Appraised Parcel $80,000
i i
We appreciate the opportunity to prepare this appraisal report. If you have questions regarding
our analyses or conclusion, we will be glad to discuss them with you.
Sincerely~4 .
Dan Shantz
Alaska State Certificate No. 47
Steve MacSwain, MAI
Alaska State Certificate No. 42
041095: Kenai Boat l,aunch
MacSwain Associates
Chapter 2: Property Description and Analysis
Overview: We prepare a brief description and analysis of the 6.42-acre appraised parcel located
just west of the Bridge Access Road/Beaver Loop Road intersection. Importantly, we calculated
the subject land area from an aerial photograph provided The Conservation Fund and mapping
with dimensional boundaries obtained from the KPB. Facing exhibits help illustrate the physical,
legal, and economic character of the appraised parcel.
Property Type: Vacant industrial-zoned land
Location: The appraised parcel fronts the west side of Bridge Access Road 1.5_+ miles southeast
of the Kenai commercial district. Contiguous to the west parcel boundary is the Kenai Boat
Launch.
Neighborhood: The subject is located in the City of Kenai industrial area that fronts the Kenai
River near its mouth. Fish processing and related facilities are the principal land use of
developed land, although attrition in the fishing industry has caused re-development to some
facilities. We also obse. rved land developed with freight distribution, mini-storage, log cabin
manufacturing, and yard storage. The City of Kenai owns about one-third of the industrial-
designated land with the remainder in private ownership. A city dock and boat ramp is also
located in the neighborhood. Development of non-riverfront land is sparse and demand is
limited. The closure of several fish processing facilities as well as a decline in the commercial
fishing industry compounds the scarcity of neighborhood demand for industrial-zoned land. We
anticipate future demand will be from light industrial or commercial use rather than heavy
industrial.
Land Description: The appraised parcel sets below access grade with Bridge Access Road and
extends westerly to the north end of Boat Launch Road. Importantly, the appraised parcel is
north of the low-lying wetlands that affect the development potential of contiguous land. We
determined from aerial photographs and mapping that the parcel width is 320_+ feet while its
depth ranges from 786__. foot on the north boundary to 998_+ feet on the south. Listed below are
important physical characteristics pertaining to the appraised parcel.
I.and Area: 6.42_+ acres or 279,594_+ square feet
Shape: Irregular
Road Fro,tage: 355_+
Road Access: Bridge Access Road, asphalt-paved two-lane roadbed; Boat Launch Road, gravel-
surfaced two-lane roadbed
2003 Average Daily Traffic ('ou,t: 9,500 vehicles per day on Bridge Access Road
I'ubli¢ Utilities: Electricity, natural gas
Topography: Relatively level to undulating
041095: Ke.ai Boat Launch
i
MacSwain Associates
t
PTN. N//2 SEC. 9, T. 5 At.,
!
! 6.42.Acre · . ,,
IiAppraised Parcel ~1) [ Beaver Loo
! .X ,, .',~. / ...... 1
.,,,,., ................... _,\ \
- i · '~.tx "--.,
/z · ,, ! !"o"'' !I
, /? ° I
'- - ' ""'"-~ - -- """.---~7:'" ......... ' --
t.;' ~ "" ":1 7- ,, '"~ - "
/.'.' ;',,,,~. il _ ""'"'
~'" '""' ! ,,o. tt....,,,, ~ I
' ""- .::0,. - I
' e ~ I
, __.~ " '- "-'· ..... i
041095: Kenai Boat Launch
I
I
,':". -'..... F. rcet 1 6+_. ~cre$) $.~2,.00
,
ii ,' Parcel 2 (345~ acres)' $210,000
~ , Parcel 3 (12. acres): $55,000
r .... ,~L ........ --
, Parcel 4 (622_+ acres)' $376,000
(~ ' ,
i Parcel 5 (15+ acres): $7,500
= --
: Parcel 6 (61+ acres)' $21 500
: .... Parcel 7- No longer visible -O-
Parcel 8 (93_+ acres)' $75,000
i ! ,. e.. i ,'
: : ! ]"r'~,~-.,,-.
,....., ;:: .,..~,~:~.*.:'::
' "."' :
!
Parcel 2
~/7-y, /.,dMb
TI~. A
KENAI CITY COUNCIL MEETING
SEPTEMBER 15, 2004
PAGE 12
Chief Kopp noted, the dip net committee was prepared to address the designation of
fire pits, etc., and added, if the campers are displaced from the beach, they could move
to other areas of trespass.
Keith Kornelis, Toyon Way Resident -- Reported he received many complaints from
people alon§ his street mcludin§, fire dan§er, smoke, use of the grasses as a restroom,
etc. As a member of the dip net committee, Komelis noted they had discussed not
allowin§ campm§ §om§ north alon§ the Spruce Street beach.
panmelis also reported the dock expansion/improvements were proceeding with the
sign; the floats had been removed; they hope to do some repair work on the existing
ramps and building new ramps for placement in the spring; and the Conservation
nd is preparing an appraisal of land, where placement of the new exit road is
ned, to swap for wetlands.
ITEM J: COMMISSION [ COMMITTEE REPORTS
J,-1. Council on Aging -- Council Member SWarner referred to the meeting
summary included in the packet and noted changes to the rate schedule, suggested by
the Council on Aging and administration to become effective October 1.
J-2. Airport Commission -- Council Member Bookey reported, though there
was no quorum for the September 9 meeting, a brief discussion took place relating to
the need for an additional member to the Commission. It was noted, currently Chip
Versaw is an "at-large" member and a lessee of the airport. The seat available is for a
"lessee" and it was suggested Versaw be assigned the lessee seat as it may be less
problematic to find a person to fill the "at-large" seat.
Airport Manager Cronkhite reported the environmental assessment work was
continuing for the extension of the runway. She noted, the work would not be done in
time to get the bid documents on the street by spring, however. In discussing the
issue with FAA, she asked ff a parallel tax/way project could be approved and
developed while the assessment work for the runway extension was being completed.
She explained, the taxiway would open up access to lease properties on airport lands.
Cronkhite also reported FAA was very excited about the project and encouraged the
city to proceed with it. She also noted, the bid documents for a parallel taxiway could
be ready for distribution by February or March and there were funds available from
FAA for the project. The parallel taxiway project could begin construction by spring.
The runway extension project would then be ready for construction the next spring.
Cronkhite stated, the parallel taxiway project would not affect the overall grant
process and would score high for discretionary money. Cronkhite requested council
approval to proceed with discussions with FAA for acquisition of funding for the
taxiway project.
MEMORANDUM
CITY OF KENAI
210 FIDALGO AVE., SUITE 200 KENAI. ALASKA 99611.7794
TELEPHONE 907-283-7535
FAX 907-2~1-3014 ~
TO'
FROM-
Linda L. Snow, City Manager
Keith Korneiis, Public Works Manager
DATE: June 9, 2004
SUBJECT:
Kenai Boating Facility Exit Road
I have been working with The Conservation Fund on a possible lancl trade. They
own the land that would be useful as an exit from our Boating Facility. The total
area that The Conservation Fund owns is 31~ acres-. About one third or ten
acres of the northern portion of this property is uplands that they would be willing
to trade to the City. The total 31% acres was appraised at $200,000 in 2000. I
discussed proceeding as follows (if the City Council approves):
1. The Conservation Fund will have their appraiser place a value on the ten
acres of upland area that the City is interested in. They will pay for this
appraisal.
2. The City will look at the appraised value for the ten acres of Conservation
Fund land we want to own. We will use this value to help determine what
wetlands we may want to trade, in 1999, the City had an appraisal done
of many City-owned wetland pamels, (attached) which will help us. The
Conservation Fund requires an equal value for the land trades.
3. The City will have a new appraisal done of our wetlands area we think is
close in value to the land we want to own. The City will pay for the
appraisal of our wetland ama.
4. The Conservation Fund and the City of Kenai will then make the land
trade. They do not want to give us area that is wetlands.
5. The Harbor Commission recommended the City proceed with this land
exchange. ~. ,.
Should I proceed as outlined above?
KENAI CITY COUNCIL MEETING
JUNE 16, 2004
PAGE 12
Swamer
Gilman
Bookey
Yes
Absent
Yes
Moore
Ross
MOTION PASSED UNANIMOUSLY.
Yes
Porter
Yes Williams
Yes
Yes
1-10.
Discussion -- Kenai Boating Facility Exit Re. ad.
City Manager Snow referred to the memorandum included in the packet from Public
Works Manager Komelis which updated the efforts in researching a possible land
trade with The Conservation Fund. Snow reported, at their last meeting, council
requested the issue be taken before the Harbor Commission for their recommendation.
She confn-med the issue was taken to the Commission who recommended the city
proceed with the land exchange.
confirmed the issue was discussed with the Harbor Commission. He noted his
~rsonal concerns as the city receiving fair market value in the appraisals.
consensus was to "move ahead" with the discussions with The Conservation
nd as explained in the memorandum.
ITEM J:
COMMISSION/COMMITTEE REPORTS
J-1. Council on Aging -- Swarner reported the next meeting is to be held on
July 1 at 10:00 a.m. and an assisted living discussion following.
J-2. Airport Commission -- Moore reported the Commission met on
Thursday and recommended approval of the Everts lease application which was sent
to the Planning & Zoning Corn_mission for their review. He noted, the Commission also
discussed results of the Air Fair and recommended the approve of the conservation
land footnote change. Moore reported he would be absent from the July 8 meeting
and Porter stated she would attend the meeting.
J-3. Harbor Commission -- Bookey reported a meeting was held on Monday,
June 7 at which the boating facility road was discussed.
J-4. Library Commission -- It was noted, the next meeting is scheduled for
July 6 and the meeting summary of the June 1 meeting was included in the packet for
review.
J-5. Parks/h Recreation Commission -- Ross reported a meeting was held
on June 3 at which the Commission discussed the flea market issue and reviewed the
updated proposal document; heard a presentation on disk golf and it was requested
KENAI CITY COUNCIL MEETING
MAY 19, 2004
PAGE 21
noted, the Code allows the city manager to sell items when competitive bidding is not
required with notice to and approval of the council (KMC 7.15.070). In checking with
other city departments, she learned the city has no use for the piling. If council had
no objections, she would set a nominal fee and sell it.
Bookey stated he had no objections to making the sale, but had experience in
removin~ other 9ilings that had been on the property, and was aware the oiling was
set deep into thc ground and it would require excavaUon to remove it. He suagested
whoever removes it be licensed, bonded, insured, etc. and the hole left be filled in as
well. Council voiced no objections to the sale.
· Referred to Semmens report and relating to insurance pools. Semmens
cliscussed quotes expected from two insurance pools for property and general liability
~nsurance. Because AML/JIA has historically quoted higher, the city has used APEI.
Both provide similar insurance, but AML/JIA functions more like a sharing
arrangements than the other. He asked if council would have any objections to
switching to AML/JIA if the price is less. Semmens explained the differences between
the two pools and past experiences. No objections were stated to consider switching
insurance pools if the price is amenable.
Referred to the memorandum included in the packet from Public Works
Manager Komelis relating to the boating facility exit road. Snow reported the
requested reappropriation of funds had been approved by the Legislature, but had not
been signed by the Governor. She noted, one of the components of the boating facility
project is a possible land trade with the Conservation Fund. Snow requested council's
direction whether to proceed as listed in the memorandum. It was suggested the issue
be discussed at a future meeting after the Harbor Commission reviews the issue.
Swarner referred to the Airport Manager's report regarding Federal Express and stated
concerns with the issue. Cronkhite explained, she had learned Federal Express has
some concerns with the Ron's Rent-All property and she was continuing discussions
both parties' representatives. She added, she had contacted the engineer doing the
design work on the access to the property and indicated it was not a high priority at
this time; she contacted the FAA with the information; and, awaiting notification the
Federal Express issue has been resolved will not impact the access to the other two
lots included in the access issue because the development on those lots is not planned
until next year.
K-2. Attorney-- Attorney Graves reported the Alaska curfew law had been
resolved by the Alaska Supreme Court and he and Chief Kopp were reviewing the city's
curfew ordinance to bring it to closer compliance with the Alaska law. The
amendment ordinance will be brought forward in the near future.
K-3. City Clerk -- City Clerk Freas noted:
· A Special Parks & Recreation Commission meeting had been scheduled
for Thursday, June 3 at 7 p.m. in the Council Chambers.
ITEM 1'
ITEM 2'
ITEM 3:
ITEM 4:
ITEM 5'
ao
ITEM 6-
ITEM 7:
ITEM 8:
ITEM 9:
ITEM 10'
,,
a,
ITEM 11:
COUNCIL ON AGING
NOVEMBER 4, 2004
KENAI SENIOR CENTER
10:00 A.M.
AGENDA
CALL TO ORDER/h ROLL CALL
AGENDA APPROVAL
APPROVAL OF MEETING SUMMARY -- September 2, 2004
PERSONS SCHEDULED TO BE HEARD
OLD BUSINESS
Discussion-- Kitchen Remodel Project
Discussion -- Assisted Livin§ Update
Discussion-- NTS Meal Requirements
1. Food Pyramid
2. Salad Bar Cost
3. Meal Portions
NEW BUSINESS
Discussion -- Fred Meyer Service Project
Discussion -- Mystery Theater Fundraiser
Discussion -- Holiday Activities
REPORTS
Council on Aging Chair
Director
Council Liaison
QUESTIONS ~ COMMENTS
PERSONS NOT SCHEDULED TO BE HEARD
INFORMATION
Council Action Agendas of October 6 and 20, 2004.
ADJOURNMENT
COUNCIL ON AGING
NOVEMBER 4, 2004
KENAI SE1TIOR CENTER
10:00 A.M.
VICE CHAIR JOE HARRIS, PRESIDING
MEETING SUMMARY
ITEM 1.
CALL TO ORDER/k ROLL CALL
The meeting was called to order at approximately 10'00 a.m. by Vice Chair Harris.
The roll was confirmed as follows'
Members present:
Members absent:
Others Present:
E. Jones, R. Jurgensen, G. Kuntzman, J. Harris, L. Flowers, and
F. Wilson.
J. Hollier, D. English and b. Osbom.
Director Rachel Craig
ITEM 2'
AGENDA APPROVAL
MOTION:
Member Jones MOVED to approve the agenda as presented and Member Kuntzman
SECONDED the motion. There were no objections. SO ORDERED.
ITEM 3:
APPROVAL OF MEETING SUMMARY -- September 2, 2004
MOTION:
Member Jones MOVED to approve the meeting summary as presented and Member
Jurgensen SECONDED the motion. There were no objections. 80 ORDERED.
ITEM 4:
PERSONS SCHEDULED TO BE HEARD -- None.
ITEM 5'
OLD BUSINGS
Discussion -- Kitchen Remodel Project
Director Craig reported a site visit was made by a representative from the Rasmussen
Foundation, along with herself, Finance director Semmens, Public Works Manager La
Shot, Anna Wheeler, Gini Poore and Joanna Hollier. The project will be presented to
the Foundation's Board in November. The Rasmussen representative suggested other
entities to contact for matching funds.
5-bo
Discussion -- Assisted Living Update
Craig reported a mail-in survey was being prepared and finding a building site is being
pursued.
Discussion-- NTS Meal Requirements
5-c(1). Food Pyramid -- Craig explained the concept and showed examples of
what the RDA requirements look like. It was noted, one way to keep costs down is
through portion control.
5-c{2). Salad Bar Cost -- Craig noted, there is no portion control with the salad
bar. It was noted, the salad bar would be provided on Wednesdays and holidays
through the winter months and in March or April, the issue will be brought back for
further discussion.
Meal Portions -- Noted above.
Craig also reported, there is a food program~through the Food Bank through which
some seniors could qualify for groceries.
ITEM 6'
NEW BUSINESS
Discussion-- Fred Meyer Service Project
Craig explained the Senior Connection would be participating in a Fred Meyer Service
Project which would include promoting and signing up individuals for their rewards
program. The seniors volunteering to help with the project would be involved with it
for two weeks.
Discussion -- Mystery Theater Fundraiser
Craig reported the mystery dinner would be held on November 19, 20, and 21.
Discussion -- Holiday Activities
Craig noted holiday activities would include preparation of a float for the Chamber's
"Christmas Comes to Kenai"; a cookie exchange and tea; the local Nutcracker
production; pictures with Santa; and the Agrium Thanksgiving dinner scheduled for
November 23.
ITEM 7: REPORTS
Council on Aging Chair -- No report.
Director-- No report.
Council Liaison -- No report.
ITEM 8:
OUESTIONS/h COMMENTS,
Gins Kuntzman --. Suggested checking the liability insurance as she
believes it should be raised from $50,000 to $100,000 or perhaps higher for the liquor
vendors used during rentals.
· Suggested they have education workshops for seniors concerning weight
control, diabetes, exercise and nutrition.
COUNCIL ON AGING MEETING
NOVEMBER 4, 2004
PAGE 2
ITEM 9:
PERSONS NOT SCHEDULED TO BE HEARD-- ;':one,
ITEM 10'
10-a.
INFORMATION
Council Action AEendas of October 6 and 20, 2004.
ITEM 11-
ADJOURNMENT
The meeting adjourned at approximately 11'11 a.m.
Meeting Summary prepared by:
Carol L. Freas, City Clerk
COUNCIL ON AGING MEETING
NOVEMBER 4, 2004
PAGE 3
KENAI AIRPORT COMMISSION
SPECIAL MEETING
NOVEMBER 10, 2004
KENAI CITY COUNCIL CHAMBERS
6:00 P.M.
AGENDA
ITEM 1:
ITEM 2:
ITEM 3:
a,
ITEM 4:
CALL TO ORDER AND ROLL CALL
AGENDA APPROVAL
NEW BUSINESS
Discussion/Recommendation -- Hangar Purchase and Lease / Lot 2,
Block 3, General Aviation Apron.
ADJOURNMENT
KENAI AIRPORT COMMISSION
SPECIAL MEETING
NOVEMBER 10, 2004
KENAI CITY COUNCIL CHAMBERS
6:00 P.M.
VICE CHAIR JIM BIELEFELD, PRESIDING
MEETING SUMMARY
,,
ITEM 1'
CALL TO ORDER AND ROLL CALL
Vice Chair Bielefeld called the meeting to order at approximately 6-05 p.m.
confwrned as follows:
Roll was
Commissioners Present:
Commissioners Absent:
Others Present'
J. Bielefeld, C. Versaw, D. Haralson, J. Watkins.
J. Zirul and H. Knackstedt
Airport Administrative Assistant Mary Bondurant and
Council Member Moore
ITEM 2'
AGENDA APPROVAL
Bielefeld requested the following addition to the agenda:
ADD TO:
Item 3-A, Lease application from SOAR International Ministries, Inc.
MOTION:
Commissioner Haralson MOVED to approve the agenda with the addition of the lease
application from SOAR International Ministries, Inc. and Commissioner Watkins
SECONDED the motion. There were no objections. SO ORDERED.
ITEM 3:
NEW BUSINESS
-ao
Discussion/Recommendation -- Hangar Purchase and Lease/Lot 2,
Block 3, General Aviation Apron.
Airport Administrative Assistant Bondurant explained the Commission was being
asked to determine if the lease application complied with the Airport Master Plan. A
brief discussion took place regarding the bids received.
Eric Mayer/SOAR International Ministries, Inc.
their bid and application for lease.
Answered questions relating to
MOTION:
Commissioner Watkins MOVED to recommend the lease, which complied with the
Airport Master Plan, be approved and Commissioner Watkins SECONDED the motion.
There were no objections. SO ORDERED.
ITEM 4:
ADJOURNMENT
MOTION:
Commissioner Watkins MOVED to adjourn and Commissioner Versaw SECONDED the
motion. There were no objections. SO ORDERED.
The meeting adjourned at approximately 6:12 p.m.
Meeting Summary prepared by:
Carol L. Freas, City Clerk
SPECIAL AIRPORT COMMISSION MEETING
NOVEMBER 10, 2004
PAGE 2
KENAI HARBOR COMMISSION MEETING
NOVEMBER 8, 2004
KENAI COUNCIL CHAMBERS
7:00 P.M.
AGENDA
ITEM 1'
CALL TO ORDER/k ROLL CALL
ITEM 2:
AGENDA APPROVAL
ITEM 3:
APPROVAL OF MEETING SUMMARY --
ao
August 9, 2004
October 11, 2004 Meeting Summary/Work Session Notes
ITEM 4:
PERSONS SCHEDULED TO BE HEARD
ITEM 5:
OLD BUSINESS
a.
ITEM 6.
Discussion -- Dip Net Fishery Update
Discussion -- Kenai Boating Facility Exit Road Update
NEW BUSINESS
ITEM 7:
REPORTS
Director
Dock Foreman
City Council Liaison
ITEM 8:
COMMISSIONER COMMENTS/OUESTIONS
ITEM 9:
PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10:
INFORMATION
Kenai City Council Action Agendas of October 6 and 20, 2004.
ITEM 11:
ADJOURNMENT
KENAI HARBOR COMMISSION MEETING
NOVEMBER 8, 2004
KENAI COUNCIL CHAMBERS
7:00 P.M.
CHAIR TOM THOMPSON, PRESIDING
MEETING SUMMARY
ITEM 1:
CALL TO ORDER/l~ ROLL CALL
Chair Thompson called the meeting to order at approximately 7'00 p.m.
confirmed as follows:
The roll was
Commissioners Present:
Commissioners Absent:
Others Present:
B. Eldridge, J. Barrett, S. Romain, and T. Thompson.
P. Barrett, G. Foster, J. Spracher.
Council Member Massie, Lt. Klm Wannamaker, Chief Chuck
Kopp and Public Works Manager Kornelis
ITEM 2:
AGENDA APPROVAL
MOTION:
Commissioner Barrett.MOVED to approve the agenda as presented and Commissioner
Eldridge SECONDED the motion. There were no objections. SO ORDERED.
ITEM 3:
APPROVAL OF MEETING SUMMARY--
August 9, 2004
October 11, 2004 Meeting Summary/Work Session Notes
MOTION:
Commissioner Barrett MOVED to approve both the August 9, 2004 meeting summary
and October 11, 2004 work session notes. Commissioner Eldridge SECONDED the
motion. There were no objections. SO ORDERED.
ITEM 4:
PERSONS SCHEDULED TO BE HEARD -- None.
ITEM 5:
OLD BUSINESS
Discussion -- Dip Net Fishery Update
A lengthy discussion took place related to the dip net fishery update with a number of
suggestions made regarding fire pits, porta-potties, signage, parking, trash collection,
etc.
MOTION:
Commissioner Eldridge MOVED for the Harbor Commission to recommend the city
provide three concrete outhouses for the next dipnet season: One at South Spruce &
Kenai Avenue and two at the Kenai Avenue turnaround. Commissioner Barrett
SECONDED the motion. There were no objections. SO ORDERED.
MOTION:
Commissioner Eldridge MOVED for the Harbor Commission to support investigating
punch cards with five punches for $45 that are transferable, but not season passes.
Commissioner Barrett SECONDED the motion. There were no objections. SO
ORDERED.
MOTION:
Commissioner Barrett MOVED for the Harbor Commission to recommend all fires be
banned from a line from South Spruce Street extending north and that fires be kept 25
feet from any vegetation south of South Spruce Street. Commissioner Eldridge
SECONDED the motion. There were no objections. SO ORDERED.
a-bo
Discussion -- Kenai Boating Facility Exit Road Update
A brief discussion took place related to the boating facility exit road, including
appraisals of properties to be used.
MOTION:
Commissioner Romain MOVED for the Harbor Commission to recommend to Council
Parcels 1-8 be reappraised with the appraiser making note what is wetlands, what is
uplands, and what the appraise value is for each. Commissioner Barrett SECONDED
the motion. There were no objections. SO ORDERED.
ITEM 6:
NEW BUSINESS-- None.
ITEM 7: REPORTS
Director-- Komelis reported the following:
Two boat launches were being designed by Wm. Nelson & Associates.
The city has not yet received the Corps report on the coastal trail project.
Dock Foreman -- No report.
7-c. City Council Liaison -- Council Member Massie noted the following:
· The dip net fishery was dumped on the city and the city is going to have
to bite the bullet and get some things done.
· The city needs to get the exit road in as soon as possible.
HARBOR COMMISSION MEETING
NOVEMBER 8, 2004
PAGE 2
The dip net fishery will still be here for our grandchildren.
ITEM 8:
COMMISSIONER COMMENTS! (~UESTIONS
Chief Kopp -- suggested a "dip net days" celebration with flags for cars, etc. and
the Chamber and KCVB should promote it.
Jay Barrett-- Suggested commercial space be available for dip net areas. A
brief discussion took place regarding a boardwalk along Kenai Avenue. Komelis
discussed pay stations on Dunes Road and the DNR permit for closing Old Cannery
Road. He noted, the city is going to reapply for permits but should be prepared and
make plans for different alternatives if the permits are not granted.
ITEM 9:
PERSONS NOT SCHEDULED TO BE HEARD-- None.
ITEM 10:
INFORMATION
10-a.
Kenai City Council Action Agendas of October 6 and 20, 2004.
ITEM 11'
ADJOURNMENT
MOTION:
Commissioner Eldridge MOVED to adjourn and Commissioner Barrett SECONDED the
motion. There were no objections. SO ORDERED.
The meeting adjourned at approximately 9:15 p.m.
Meeting Summary prepared by:
Carol L. Freas, City Clerk
HA~OR COMMISSION MEETING
NOVEMBER 8, 2004
PAGE 3
KENAI PARKS & RECREATION COMMISSION
NOVEMBER 4, 2004
CITY HALL COUNCIL CHAMBERS
7:00 P.M.
AGENDA
ITEM 1'
CALL TO ORDER/h ROLL CALL
ITEM 2'
AGENDA APPROVAL
ITEM 3'
APPROVAL OF MEETING SUMMARY -- October 7, 2004
ITEM 4:
PERSONS SCHEDULED TO BE HEARD
ITEM 5'
OLD BUSINESS
ao
Discussion-- Section 36/Soccer Fields Update
ITEM 6:
NEW BUSINESS
ITEM 7:
REPORTS
Commission Chair
Director
City Council Liaison
ITEM 8:
COMMISSION ~UESTIONS/h COMMENTS
ITEM 9:
PERSONS PRESENT NOT SCHEDULED TO BE HEARD
ITEM 10:
INFORMATION
Council Action Agendas of October 6 and 20, 2004.
Beautification Committee Meeting Summary of October 12, 2004.
10 / 25 / 04 B. Lowe, P.E. letter regarding Kenai Multipurpose Building
Winter Time Condensation Problems Study.
ITEM 11:
ADJOURNMENT
KENAI PARKS/h RECREATION COMMISSION
NOVEMBER 4, 2004
CITY HALL COUNCIL CHAMBERS
7:00 P.M.
CHAIRMAN DICK HULTBERG, PRESIDING
MEETING SUMMARY
ITEM 1:
CALL TO ORDER/ia ROLL CALL
The meeting was called to order at approximately 7:05 p.m. The roll was confirmed as
follows:
Commissioners Present:
Commissioners Absent:
Others Present:
D. Hultberg, D. Sandahl, M. Baxter, R. Mills, and J.
Castimore
T. Wemer-Quade and K. Steiner
Parks & Recreation Director Frates and Council Member
Ross
ITEM 2:
AGENDA APPROVAL
There were no changes to the agenda and it was approved as presented.
ITEM 3:
APPROVAL OF MEETING SUMMARY-- October 7, 2004
There were no changes to the meeting summary and it was approved as presented.
ITEM 4:
PERSONS SCHEDULED TO BE HEARD -- None.
ITEM 5:
OLD BUSINESS
Discussion-- Section 36/Soccer Fields Update
Director Frates briefly updated the Commission with respect to the Section 36 property
and noted, the Land and Water Conservation Fund grant applications were released
and a handout provided by the local soccer association would assist in the grant
process.
The Commission reviewed the proposed site plan and suggested some minor changes
primarily dealing with labeling and the size of restrooms. When asked if there could be
other funding sources available, Council Member Ross noted administration would be
compiling their capital improvement list and the project could be included.
Kristine Schmidt -- Voiced her concern whether or not other user groups have been
considered besides soccer and requested additional information about the process.
Ross noted various public hearings and commissioners shared justifications for the
immediate focus on soccer and that other user groups will be pursued for input.
The Commission stated their desire for the Section 36 development to be included on
the City's Capital Improvement List as the Parks & Recreation Commission's top
priority in the event Land and Water Conservation funds are not available. Ross
advised the Commission administration would forward a priority list to council for
review and council produces the priority list to be discussed with the legislators. Ross
noted, the Commission's concerns should be addressed to administration to begin the
process of including this project on the improvement list.
MOTION:
Commissioner Sandahl MOVl/ID to recommend Section 36 development be included on
the city's Capital Improvement List as the Parks & Recreation Commission's top
priority.
VOTE:
There were no objections. SO ORDERED.
ITEM 6:
NEW BUSINESS -- None.
ITEM 7: REPORTS
7-a. Commission Chair -- Hultber§ thanked administration for the pavin§ at
Municipal Park picnic area and inquired about the status of the Frisbee §olf course.
Frates noted, the Frisbee §olf course baskets were installed and Ross Baxter is
plannin§ a grand openin§ for May.
7-b. Director -- Frates noted the following:
· A change was made to the flea market proposE.
· Council scheduled a work session for December 6 to discuss future plans
for the multipurpose facility.
· The carpet will be replaced at the Recreation Center.
7-c. City Council Liaison -- Council Member Ross noted the following:
· Council scheduled a work session for December 6 to discuss future plans
for the multipurpose facility.
· Updated the Commission on Council liaison appointments and the recent
council member appointment. A brief discussion followed regarding the role of the
liaison. Ross explained, the liaison relates commission/committee concerns to council,
but were not there as program advocates.
ITEM 8:
COMMISSION OUESTIONS Ih COMMENTS
PARKS & REC~ATION COMMISSION MEETING
NOVEMBER 4, 2004
PAGE 2
Commissioner Mills -- Updated the Commission on recent cemetery projects including
the winter gate closure, new section, and geophysical survey work.
Commissioner Baxter -- Thanked Ross for his service to the Commission.
ITEM 9:
PRRSONS PI~RSENT NOT SCHEDULED TO BE HEARD -- None.
ITEM 10'
INFORMATION
10-a.
10-b.
10-c.
Council Action Agendas of October 6 and 20, 2004.
Beautification Committee Meeting Summary of October 12, 2004.
10 / 25 / 04 B. Lowe, P.E. letter regarding Kenai Multipurpose Building
Winter Time Condensation Problems Study.
ITEM 11'
ADJOURNMENT
The meeting adjourned at approximately 8'07 p.m.
Meeting Summary prepared by:
Carol L. Freas, City clerk
PARKS & RECREATION COMMISSION MEETING
NOVEMBER 4, 2004
PAGE 3
KENAI BEAUTIFICATION COMMITTEE MEETING
NOVEMBER 9, 2004
7:00 P.M.
KENAI COUNCIL CHAMBERS
AGENDA
ITEM 1:
CALL TO ORDER/h ROLL CALL
ITEM 2:
AGENDA APPROVAL
ITEM 3:
APPROVAL OF MEETING SUMMARY -- October 12, 2004
ITEM 4:
PERSONS SCHEDULED TO BE HEARD
ITEM 5:
OLD BUSINESS
Discussion-- Flowerbed Review/Planning
Discussion -- 2005 Tentative Planting Schedule
ITEM 6:
NEW BUSINESS
ITEM 7:
REPORTS
Committee Chair
Parks & Recreation Director
Kenai City Council Liaison
ITEM 8:
OUESTIONS AND COMMENTS
ITEM 9:
PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10:
INFORMATION
Parks & Recreation Commission Meeting Summary of October 7, 2004.
City Council Action Agenda of October 6 and 20, 2004.
ITEM 11:
ADJOURNMENT
KENAI BEAUTIFICATION COMMITTEE MEETING
NOVEMBER 9, 2004
7:00 P.M.
KENAI COUNCIL CHAMBERS
CHAIR MARILYN DIMMICK~ PRESIDING
MEETING SUMMARY
ITEM 1'
CALL TO ORDER/k ROLL CALL
The meeting was called to order at approximately 7'05 p.m. The roll was confn-med as
follows'
Members Present:
Members Absent:
Others Present:
M. Dimmick, L. Seymour, M. LeFebvre, S. Hatch
H. Brown, J. Rogers, L. Nelson
Parks & Recreation Director Frates, Kenai Chamber Executive
Director Odgers, Kenai Convention & Visitors Bureau Executive
Director Maya Renken and Erin Renken
Chair Dimmick declared the meeting was closed due to a lack of quorum. A brief work
session was held in which the revamping of the flower beds at the Chamber and
Visitors Center were discussed. Odgers and Renken noted what they would like to
have done with the beds.
ITEM 2:
AGENDA APPROVAL
ITEM 3:
APPROVAL OF MEETING SUMMARY -- October 12, 2004
ITEM 4:
PERSONS SCHEDULED TO BE HEARD
ITEM 5:
OLD BUSINESS
Discussion -- Flowerbed Review/Planning
Discussion -- 2005 Tentative Planting Schedule
ITEM 6:
NEW BUSINESS
ITEM 7: REPORTS
, ,
Committee Chair
Parks & Recreation Director
Kenai City Council Liaison
ITEM 8:
OUESTIONS AND COMMENTS
ITEM 9:
PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10: INFORMATION -
Parks & Recreation Commission Meeting Summary of October 7, 2004.
City Council Action Agenda of October 6 and 20, 2004.
ITEM 11:
ADJOURNMENT
The meeting adjourned at approximately 8:00 p.m.
Meeting Summary, prepared by:
Carol L. Freas, City Clerk
BEAUTIFICATION COMMITTEE MEETING
NOVEMBER 9, 2004
PAGE 2
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Monthly Report Fo_r
November 17~ 2004
Keith Komelis~ Public Works Manager
[__--I
Kenai Coastal Trail: We have not received the Corps report that was scheduled for completion in August.
The city is on the study team to review this report. I have once again askod the Corps for a status report.
New Well House 4: The process to purchase state land through DNR is unbelievable. DNR is still
~eviewing the survey, and then we will have the appraisal process before we can purchase the land. The
city is continuing with the design of the water main. Filtronics returned and redid their pilot test for arsenic,
iron, and manganese removal. West Coast Filtem submitted a proposal, but we am waiting on Fiitroni~.
Misc. Paving: Alaska Roadbuilders completed paving the parking lots at Municipal and East End Parks.
They also completed the paving at the Wastewater Treatment Plant and next to the dip n~t parking lot.
ADEC Grants.;. I have submitted a grant request for "A Water Treatment System at Well Houses No. 1, 2,
3, & 4," "Vacuum Su~on Sewer Cleaning Tmc, k," and 'Upgrade to 3 Million Gallon Storage Tank." I also
submitted an ADEC loan questionnaire (not binding) for treatment plants at each well house.
Streetli~hts: North Coast Electric is setting up our vendor-managed inventory.
Wastewater Facility Plan: GeoNorth is working on our GIS for our sewer system as part of this project.
Wetlands Protection - S. Spruce Project: We hav® completed most of the work on this project which is
funded with a $12,000 U.S. Fish & Wildl~ matching grant. The project is to protect the wetlands next to $.
Spruce and to encourage people to use the trail and stay off the wetlands. We have asked USFWS to give
. us additional money to purchase signs for this project.
Boating Facility Launch Ramp and Road Exit Project: The Conservation Fund completed the appraisal
on their uplands where we want to build an exit road from-this facility to Bridge Access Road. We now n~d
to decide what city-owned wetland areas we may want to trade for this land. The Harbor Commission
roviewc~:l this at their November 8 meeting. We have received the $350,000 grant from the state for adding
two new launch romps. Nelson is working on the design.
Dip Net Fishery: The dip net committee has submitted a detailed report on the season. Each year we
ga~er information and input from everyone for a report on the current year and recommendations for the
next year. The Harbor Commission reviewed the report and has some recommendations.
Safety Audit: CBR Consulting is working on the city facilities' safety audit.
Streets 8, Dock: We built a parking lot for the disc golf course, stockpiled winter sand, hauled gravel,
graded roads, sealed cracks on the Airport and Streets, cleaned and repaired culverts and storm drains,
filled potholes, organized and cleaned the yard, winterized the dock, and built an oil storage add-on building
to the shop. We also changed grader cutting edges and installed wings and gates, made pole holders and
installed flags for the Arctic Winter Games at the airport "Y' and PRISM, and plowed snow on city roads,
airport, and parking lots. We removed and stored shelving from the courthouse, completed work for the
miscellaneous paving project, built tire chains, helped put up Christmas lighting, and placed warning slips
for vehicles illegally parked on city streets.
Water 8, Sewer: We repaired and replaced fire hydrants, worked with Filtronics on their second pilot test
~tudy, cleaned and greased equipment, poured a concrete bottom in a drop manhole, back flushed Well
Number 1, winterized the vactor and steam truck, worked on lift stations and unplugged a sewer line.
Wastewater Treatment Plant: The plant operators and I met with EPA on our NPES permit. We repaired
the controls for the #1 wasting pump and the #2 activated sludge return pump, pumped out and cleaned the
#3 & ~4 aeration basins and inlet manhole, pumped out the fire hydrant next to the clarifiers, and checked
out all of the heaters for winter operation.
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Linda Snow, City Manager
Larry Semmens, Finance Director
November 12, 2004
Monthly Report
The Comprehensive Annual Financial Report is finished and will be reported on
by our auditor Bill Coghiil of Mikunda Cottrell at the meeting 11/17. Mr. Coghill
will primarily be talking about the audit, but will answer questions regarding the
financial statements.
Council can obtain overview information from the Letter of Transmittal on page 1
and the Management's Discussion and Analysis on page11. Pages 21 and 22 of
the statement provide summarized information on a fund basis, which is similar
to the budgetary basis the City uses. It shows that the General Fund fund
balance grew by $1,137,754 to $9,340,388. This is a substantial improvement
over the projection made in the FY 2004 budget. Detailed information on the
General Fund is found on pages 24- 30. Revenues came in $939,359 greater
than budget, with the bulk of this ($730,644) coming from sales tax.
Expenditures were $792,647 less than projected. Transfers also had a positive
variance of $63,626 with the budget. It was a very good year for the General
Fund.
Other major fUnds, including the Airport Land System Special Revenue Fund and
Water and Sewer Special Revenue Fund, are also found on pages 21 and 22.
The Water and Sewer Fund fund balance increased by $356,693 to $686,574.
The Airport Fund fund balance decreased $849,906 to $5,572,905.
The Borough will hold its final public hearing on raising the maximum taxable
sale from $500 to $1,000 on November 16. Seward is the only city that has
provided formal input to the Borough Assembly. Seward is in favor of the
change.
The finance department will be shifting its focus to budget preparation.
Department heads will receive budget packets in late December or early
January.
"Vii/aye with a ast, itf wit$ a ?.t. re"
210 Fidalgo Avenue, Kenai. Alaska 99611-7794
Telephone: 907-283-3692 / FAX: 907-283-3693
KENAI. ALASKA
MEMORANDUM
To: Linda Snow, City Manager
From' Robert J. Frates, Parks & Recreation Directo
Date: 11/09/04
RE: Monthly Admln. Report- Oct. '04
Oct. 1 st was the start of the ice season at the Multi-Purpose Facility. The installation of ice at the
end of September and the start up of the refrigeration equipment were flawless. Ice maintenance
personnel are doing an awesome job with no problems reported. Two KCHS High School
students painted one of the warming shacks and Vince Redford (Red Line Sports) started setting
up his business in the storage room. Johnny Bea (ConoccoPhillips) is currently building brackets
for flags and banners, which will be hung above the zam room. Ice sales for October were very
good and November looks solid as well. Public Works will be having a beam sprayed with
urethane in order to see if it helps prevent some of the dripping onto ice.
Micah (Groundskeeper) missed a couple weeks due to a family emergency. One of our seasonal
hires was able to stay on until late October to assist with murine tasks. Upon Micah's return, tree
wrapping, hanging pole decorations and white lights were initiated.
Section 36 site plans were solidified through the work of the Parks & Recreation Commission,
Administration, and the soccer groups. Grant preparation is ongoing. A new Flea Market
Proposal was drafted and reviewed and is currently available at City Hall.
Early November snow looked promising for an early start at the Kenai Nordic Trails (golf
course). However, recent warming and rain has diminished any prospects of grooming for the
time being.
CITY OF KENAI
210 FIDALGO AVE., SUITE 200 KEHAh ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-~14 ~
MEMORANDUM
TO:
FROM'
DATE:
SUBJECT:
Linda Snow, City Manager
Jack La Shot, Public Works Manager/~._
November 10, 2004
Department Report for Council meeting of November 17, 2004
A current Public Works bid information sheet is included as an
information item.
There will be a purchase order increase in the packet for several items
constituting Change Order #3 for the Kenai Municipal Airport Terminal
Modifications Project.
Also, a purchase order increase to Wince-CorthelI-Bryson will be in the
packet for increased inspection services for the same project. The
increased services are necessary due to three sizeable added value
change orders.
The airport will have a PO to replace the boiler sections in one Weil-
McLain boiler at the Fire Training Center. As the sections have been
failing, we are replacing four that need to be replaced at this time, and
five that we have reason to believe will fail soon. The PO amount is
$6,898.00.
MEMORANDUM
To:
Linda Snow, City Manager
From:
Rachael S. Craig, Senior Center Director
Date:
November 8, 2004
Subject: October Monthly Report
Total number of days rented in October 2004' 4
Total Congregate Meals Served: 1313
Total Home Meals Served: 1059
Total Non-Senior Meals: 18
October 2003 Meals Served:
Total Congregate Meals Served: 1400
Total Home Meals Served: 1235
Total Non-Senior Meals: 19
October 2004 Transportation:
Total Transportation Assisted: 249
Total Unassisted Transportation: 239
We had 776.75 volunteer hours. The volunteers assist in many ways such as, serving in
the dining room, as drivers, community service workers, teach crafts and painting classes,
help in the kitchen, pick up donated bread at Safeway four times a week, office
assistance, answer phones, entertainers that perform at lunchtime, line dancers, bell
fingers entertain in the community, Council on Aging, and Senior Connection, Inc.
Director presented two presentations for United Way at local businesses.
United Way Campaign ended on the 31 of October.
The annual
Representatives of the Kenai Peninsula Food Bank did a presentation to seniors
concerning what the Food Bank has to offer our low-income sen/ors. Seniors may receive
USDA Commodities (canned and dry goods) once a month based upon your annual
income. A person's income is based on 185% of the current federal poverty guidelines.
An example of this would be a household of 2 would need to have a monthly income of
$2,407 or $28,879 per year. Income is the money received by any member of the
household before deductions as taxes and social security. Within our senior database
15% are within poverty guidelines.
On October 19, George Hieronymus, Program Officer of Rasmuson Foundation was here
for a site visit. We have submitted a grant to the Foundation for a kitchen renovation
project. He will present our project to their board in November.
Flu shots were given on the 19th of October to seniors and people at risk. Seniors were
encouraged to get flu shots at the public health office earlier. 200 shots were given.
Our annual Halloween Party was held on the 29th with 83 seniors in attendance wearing
an array of various costumes. Our line dancers entertained and boogied to Halloween
music. A fun time was had by all!
The director attended a legislative hearing supported by Rep. Cissna, entitled, "Aging
adults' Is there room for us in Alaska?" A summary will be provided at a latter date.
163 Main Street Loop
Kenai, Alaska 99611
REPORT FOR OCTOBER, 2004
As every year, the biggest Library event in the month of October, is the Friends' dinner and raffle. All
300 tickets were sold and this year's winner of the grand prize of $7,500 was Deb Nyquist. Other ticket
holders, who were not so lucky, enjoyed a delicious meal and entertainment provided by the Kenai Spur
Highway Spankers & Friends.
The Friends of the Library also received a very generous gift from the Alaska Court System of almost
brand new shelves (worth at least 15,000 dollars) that were to be discarded during the remodeling of the
court library in Kenai. The shelving will augment Friends' gitl of $50,000 for furnishing of the future
Library addition.
The Library received a grant from the Rasmuson Foundation for the construction of a museum quality
case to house a collection of Native Alaskan dolls donated by the estate of Jean Anderson Graves. We
contacted a well-known designer of museum exhibits from Juneau, Bob Banhart who agreed to work
with us.
Another interesting new development at the Library is the Russian story time for children. A group of
mothers from the former Soviet Union come to the Library every Tuesday for a story time in Russian.
All children are welcome although no translation is provided.
On Sunday, October 31, Corey Hall organized "The Monster Factory" family story time that included
costumes, scary stories, "moster crafts" and a big cake. This Halloween special was attended by 68
children and their parents.
Julie Niederhauser taught another Intemet health resources class on October 27th.
October 2004 statistics:
CIRCULATION
Adult Juvenile Easy Books
Fiction 1895
Non-Fiction 1540
Periodicals 81
422 1250
209 285
Intemet Access Music Misc. Puzzles Videos
1219 137 1 - 1049
DVD Audiobooks
267 267
Total Printed Materials ............... 5682
Total Circulation ............................ 8622
PAC Searches ......................... 6490
_
ADDITIONS Docs Adult Juvenile
Easy Books AV
Gifts 101 61 35 23
Purchases 139 25 49 4
Tntal Additions ................................. 437
INTERLIBRARY LOANS
Ordered R ec e i v ed R e mm ed
Books 25 12 16
INTERLIBRARY LOANS BY OUR LIBRARY ............ 31
INTERNET USE ......... 1219
VOLUNTEERS
Number .....16
Total Hours .....205
INCOME
Fines and Rental Books
Xerox
Lost or Damaged Books
984.04
278.75
268.69
Total Income for October, 2004 ...... $1,531.48
Library Cards Issued October, 2004
Kenai 72
Kasilof 7
Nikiski 6
Ninilchik 7
Soldoma 34
Sterling 3
Other 5
Total 134
Library Patronage .......7,344 Persons
Adult Programs ..........37 Persons
Childrens' Programs .....415 Persons
CITY OF KENAI
.... FIRE DEPARTMENT
105 SOUTH WILLOW STREET
KENAI, ALASKA 99611
(907) 285-7666 · (907) 28.$-8171 fax
e-mail' kfdept@,ci.kenai.ak.us
November 9, 2004
TO'
From:
Subject:
Linda Snow, City Manager
Scott Walden, Fire Chief
October 12 - November 9, 2004 Department Report
Type of This This 2004 2003 Difference Percent
Response Period Period to date to date '03 - '04 increase
last vr for Year
Fire 20 12 147 144 +3
EMS 56 37 696 592 + 104
Other i 6 15 170 153 + 17
TOTAI~ 92 64 1013 889 + 124 + 11%
"Other" includes investigations, public assists, mutual aid, search/rescue, hazmat, alarms, ARFF.
Completed required revision of ARFF section of the Airport Emergency Plan and forwarded it to
the airport for action and approval by FAA. This update is required by FAA, under new FAR
Part 139 Regulations. to be completed before December 9, 2004.
The Home Fire safety Improvement Program continues, with very high interest, with a large
quantity of applications receiVed. Smoke detectors, carbon monoxide detectors, fire
extinguishers, emergency escape ladders and other safety devices will be provided for 100 target
audience homes in the City to be chosen from those applications.
Began drafting suggestions for altemative levels of completion of the Multi Purpose Facility, and
began evaluation of related life safety codes. A drawing and a single page reference will be
provided for the December 6th work session as requested by Administration.
Mobile repeater system installation is 95% complete. Completion is pending amval of a few
parts and the FCC license. Projected completion date is November 24. The City will then be
reimbursed through a federal grant that is paying for this project. Once operable, the repeaters
will boost hand held radio transmissions through any City emergency vehicle and will provide
clear, reliable communications for emergency response and officer safety.
Our department participated in the retirement event for Mayor Williams and in the Boys and Girls
Club "Trunk or Treat" street event befOre Halloween (we displayed a fire engine and an
ambulance, handed out candy to trick or treaters and watched kids and their families for
hypothermia). The event was attended by hundreds of kids.
Fire prevention programs continue to be presented in local schools (preschool through 5t~ grade)
and tours of the fire station are occurring almost daily. This program has been ongoing for over
25 years. We also provided a few furnishings for the incoming VISTA volunteer's apartment.
TO'
KENAI POLICE DEPARTMENT
107 SOUTH WILLOW STREET ;~_.NAI, AK 99611
Telephone (907) 283-7879
Fax (907) 283-2267
Linda L. Snow, City Manager
FROM.
Charles M. Kopp, Chief of Police
DATE'
SUBJECT:
November 9, 2004
October 2004 Report
The Police Department responded to 571 calls for service in October. The patrol division made
334 traffic contacts resulting in 89 citations and 68 arrests. The department scheduled 12 hours
of overtime for Halloween. No criminal mischief, accidents or vandalism were reported. The
department investigated 21 motor vehicle accidents, 5 involving injuries. None were alcohol or
drag related.
October 1, 2004 Sgt. Komfield and Sgt. Sandahl attended a supervisor-training seminar in
Anchorage.
October 14- 15, 2004 Officer Langseth and Officer George attended DARE Officer Training in
Anchorage. They received curriculum updates for DARE instructors, and will be teaching the
DARE program at Mountain View Elementary and Kenai Middle School.
October 18 - 29, 2004 the Kenai Police Department & Alaska Police Standards Council
sponsored a law enforcement Pistol/Shotgun/Rifle Instructor Certification course attended by 22
officers from throughout Alaska. Kenai Police Department gained three firearms instructors:
Officers Langseth, Miller, and Sjogren.
The department has concluded background investigations for all police officer applicants. Four
candidates were selected for oral interview and further testing. Two candidates advanced past
the oral board and are scheduled for polygraph examinations by Sgt. Gus Sandahl the week of
November 8 - 12. Following a psychological screening evaluation, a recommendation of hire is
anticipated by the end of November.
The department congratulates our new Mayor and Council Members. We look forward to a good
and safe year serving alongside you in our community.
nal
Municipal Airport
Kenai Express: Kenai Express has closed their Kenai Office. Dottie Fischer has
expressed a desire to work with alternate carriers and hopefully bring another service to
Kenai in the near future. The Administration will continue to work with Dottie and others
to solicit additional service for the Kenai Airport.
Terminal Access Project' Paving is complete and electrical and mechanical is on
schedule for completion at the end of the month. The heated sidewalks are scheduled
to be operational by this weekend. The elimination of ice from the sidewalks will be a
great benefit to the traveling public. The remaining work on canopies, hand rails and
pavement marking will have little impact on the traveling public.
TSA: The Transportation Security Administration recently reported they have
completed the hiring process for Kenai and now employ eight local residents in both full
time and part time capacities.
Security Camera Project: The Security Camera Project is substantially complete and
the Kenai Police Department dispatchers report that the camera controls are mom
entertaining than the video games. Please contact Chuck Kopp for a demonstration of
our new capabilities.
Medallion Foundation: Construction is underway on the new space for the Medallion
Foundation Flight Simulator. Contractor estimates completion prior to November 15.
Administration will then work with the Medallion Foundation on room security and
equipment installation.
Winter Weather: Crews are working around the clock to keep up with the winter
storms. The intensity of our winter events has delayed installation of the holiday lights
and decorations; however, our normal displays are planned and you should see activity
in that area soon.
INFORMATION ITEMS
KENAI CITY COUNCIL MEETING
NOVEMBER 17, 2004
o
10/04 Kenai Float Plane Basin Activity and Kenai Municipal Airport
Enplanement Reports.
11/04 Denali Commission Update.
,
11/04 Resource Development Council for Alaska, Inc., Resource Review.
.
11/18/04 Kenai River Special Management Area Advisory board meeting
agenda and minutes of the 10 / 14 / 04 meeting.
o
11 / 5 / 04 DEC Division of Water draft amended Alaska Drinking Water Fund
priority and planning lists for loan eligible projects in FY05.
~ FLOAT PLANE BASIN ACTIVITY
200t .2004
Municipal Airpor~
Month 2004 2003 2002 2001
MaY
JUNE
JUlY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
Total
99
161
428
342
134
40
Closed
1204
86
158
259
287
215
63
Closed
1068
94
223
345
233
153
37
10
1085
n/r
n/r
313
243
127
24
Closed
707
*not reported
............... FLT L" £ETS- ............
Month
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
Total
2004
$452
$2,2O9
$2,095
$2,041
$792
$26
$7,615
2003
$835
$1,391
$1,773
$2,513
$2,219
$263
$8,993
2002
$98
$1,986
$2,757
$2,419
$983
$65
$8,308
2001
$386
$1,~89
$3,221
$1,564
$~ ,565
$395
$8,320
m m mmm m mm mm mm m m mm mm m m m mmmm mm mm m m mm m' m mm mm mm m mm mm mm mm mm mm mm mm mm m
m mm m mm m m mm mm mmm mm m mmm mm m m mm mm m mm mm m mm mm mm mm mmm m mm m mm mm m m mm mm m
Slips Rented
Private
Commedcal
Alaska Adventure Air
Rev 8/2003
OCTOBER 2004 I
BELLAIR - 308
4.75%
95.25%
·
ERA'6,181
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Totals
2004 Monthly Enplanements
ERA
6,326
5,922
5,993
5,618
5,700
6,312
9,539
8,015
6,175
6,181
BELLAIR
0
0
0
0
0
557
1,115
930
663
308
65,781 3,573
Month Total
6,326
5,922
5,993
5,618
5,700
6,869
10,654
8,945
6,838
6,489
0
0
69,354
2000-2004
5 Year Average
7,354
6,704
6,903
6,272
6,820
7,545
10,969
9,424
7,057
6,993
KENAI EXPRESS, Inc. started service June 1,2004 &
ended October 10, 2004
MONTHLY PASSENGER ENPLANEMENT ACTIVITY
14,500
13,500
12,500
11,500
10,500
9,500
8,500
7,500
6,500
5,500
4,500
3,500
2,500
1,500
500
lEI2000
12001
~2002
2003 I
Jan
Feb
7,859 7,815 7,657
8,216
8,300 7,137
7,829 7,046 7,371
6,454 5,602 5,280
5,922
Mar Apr May Jun Jul Aug Sept
6,409 7,531 9,086 12,736 11,049 8,994
7,058 8,143
6,902 6,880
5,375 5,848
6,326
5,993 5,618
5,700
9,044 12,093
6,740 9,979
5,988 9,445
6,869 10,654
Oct
8,464
Nov Dec
7,612 7,968
10,807 6,334 7,582 7,345 7,494
8,644 6,684 6,309 6,023 6,249
7,674 6,435 6,120 5,820 6,688
8,945 6,838 6,489
5 yr.
Change Average Change
from 2000- from 5 yr.
Month 2004 2003 2003 2004 Average
,
Jan 6,326 6,454 -128 7,354 -1,028
Feb 5,922 5,6.02 320 6,704 -782
Mar 5,993 5,280 713 6,903 -910
Apr 5,618 5,375 243 6,272 -654
May 5,700 5,848 -148 6,820 -1,120
Jun 6,869 5,988 881 7,545 -676
.Jul 10,654 9,445 1,209 10,969 -315 ..
Aucj 8,945 7,674 1,271 9,424 -479
Sep 6,838 6,435 403 7,057 -219 ·
Oct 6,489 6,120 369 6,993 -504
Nov 5,820 0
r~ec 6;688 0
~tals 69,354 76,729 5,133 ~ -6,687
ne/
Municipal Airport
Denali Commission Update
November 2004
Regulatory Commission of Alaska Seeks Comment
The Regulatory Commission of Alaska (RCA) has taken a significant step to enhance sustainability of
rural utilities by addressing a petition initiated by the Dcnali Commission to allow amortization of
grant funded capital assets. Docket # R-04-004 is open for public comment until December 3, 2004.
For more information or to comment please see www.state.ak.us/rca or call (907) 276-6222 or 1-800-
390-2782.
Health Facilities Program
Primary Care Applications
At the October 22, 2004 Health Steering Committee meeting, Chair Mansager recognized Mr. Joel
Neimeyer's excellence as Program Manager to the Commission's Health Facilities Program since its
inception. Denali Commission Chief of Staff, A1 Ewing presented Mr. Neimeyer with a certificate
signed by the Federal and State Co-chairs, Jeff Staser and Loren Leman recognizing his extraordinary
dedication to building the team and charting the course for dramatically improved health care in
Alaska.
Mr. Neimeyer will officially leave the Commission and retum to the Alaska Native Tribal Health
Consortium (ANTHC) after January 31, 2004. Ms. Tessa Rinner, Joel's deputy for the past year, will
fill his position, and Ms. Denali Daniels will expand her role to also include primary care.
The Commission has, for the first time with the Primary Care Program, reached the point where there
are more sustainable projects than available FY04 funds. As a result, applicants who anticipate project
development and funding in FY05 should aggressively submit application materials and complete
necessary conceptual planning components. Interested applicants should apply for funding using our
Prima~ Care RFP. In general, for projects greater then $100,000 a Site Plan Checklist and a Business
Plan must be approved prior to commitment of Commission funding.
Health Program Contact Information:
Organization
Denali Commission
Alaska Primary Care Association
Contact
Joel Neimeyer (907) 271-1414 main
Tessa Rinner
Denali Daniels
Marilyn Kasmar (907) 929-2722
Alaska Native Health Board Trudy Anderson (90 7) 562-6006
Department of Health and Social Services,
Office of the Commissioner
Alaska Native Tribal Health Consortium
Alaska State Hospital and Nursing Home
Association
Department of Health and Social Services,
Division of Behavioral Health
Alaska Mental Health Trust Authority
(AMHTA)
Dr. Richard Mansager (Chair, Health
Steering Committee))
Patricia Carr (907)465-8618
Don Kashevaroff (907) 729-1915
Rod Betit (907) 586-1790
Bill Hogan (907)465-3370
Jeff Jessee (907) 269-7963
Energy Program
Progress continues on energy projects in more than 50 communities around Alaska. Most of these
projects involve either design and construction of new bulk fuel tank farms or upgrades to community
power generation or distribution systems, but the Commission is also supporting a few energy cost
reduction projects. For the FFY 04, allocations for bulk fuel projects totaled $19.4 million, and $20.7
million were allocated for rural power system upgrades. An additional $8.9 million were allocated for
other projects designated by the appropriation. Of course, infrastructure improvement efforts such as
these could never succeed without careful planning and collaboration among the many program
partners. This month, we highlight a few communities which exemplify this spirit of cooperation.
In Nelson Lagoon, construction is nearly complete on a tank farm project that began with conceptual
planning over three years ago. Bryan Carey, the Alaska Energy Authority's Project Manager who has
been working with the community on this project, says, "This was a great community effort! Our local
workers were a dedicated team, committed to the job all summer. And the Native Village was very
involved with helping to address the land issues that took time to work through."
Another element that was unique to this project was the concern for Stellar's Eiders. More than 90%
of the world's population of this highly endangered duck spends the winter on the ocean near Nelson
Lagoon. "As the planning for this tank farm project progressed," Bryan explains, "the lights were
designed to be more shielded so they would be less likely to impact the eiders. Special attention was
focused on designing a very comprehensive fuel spill cleanup plan, too."
Bryan is also the project manger for a new tank farm in Akutan, which is nearly complete. This
Aleutian community is squeezed between the mountains and the sea, and residents move about the
village on narrow boardwalks. There was no room to site a new tank farm, so construction had to take
place on the existing fuel location. The old tanks needed to be removed at the same time as the new
ones were going in--without interrupting the fuel supply. "The geographic challenges in Akutan were
compounded by particularly severe weather this fall," Bryan says. "This project could never have
succeeded without the consistent support of the mayor, Joe Bereskin, who really makes things happen
there. We were also grateful for the cooperation of Trident Seafoods, who helped us out with heavy
equipment and with delivering the new tanks to t_he project site."
Another AEA project manager, Fintan Lyons, has been working with Port Heiden and Chefornak to
design power system upgrades in these communities. "Scott Anderson, the mayor of Port Heiden, and
Robert Panouk, manager of Chefomak's village corporation, have both helped organize excellent
public meetings with a lot of participation in these two communities. This input and participation is
enormously helpful in moving these projects forward and making sure that the final design is just what
each community needs," Fintan says.
Energy Program
Contact Information:
Organization
DenaH Commission
Contact
Kathy Prentla', (907) 271-1414
Rayna Swanson (907) 271-4990
AIDEA/AEA Mike Harper, (907) 269-3000
A VEC Meera Kohler, (907) 561-1818
Energy Policy Advisory
Committee
Eric Yould, (907) 563-2550
Training
The Denali Commission's FY 04 Training Program approved by the Denali Commission in April 2004
received its congressional appropriation from the U.S. Department of Labor for $4.9MM in July 2004.
The State of Alaska Department of Labor (AK DOL) is managing the projects and programs approved
by the Commission in April 2004.
The Denali Training Fund was established by the Denali Commission to ensure that rural residents
have the skills necessary to become employed on the construction, operation, and maintenance of
Denali Commission and other State and Federal funded public infrastructure projects. The
Commission places priority on funding for training related to Denali Commission infrastructure
projects, therefore, the Denali Training Fund will only be accepting applications from Denali
Commission related training projects until March 2005 to ensure that available funds meet the demand
for training on Commission projects. In March 2005 the Commission will assess whether funds are
available to accept applications for training on projects not related to Denali Commission
infrastructure.
Applications are received on an on-going basis with quarterly deadlines for review. The next deadline
for applications is December 15, 2004.
For more information or to apply: Download an application from www. denali, ggv under Training
Program or contact: Gerry McDonagh, Grants Administrator
State of Alaska Department of Labor and Workforce Development, Division of Business Partnerships
(907) 269-4551, gerry_mcdonaghC_b, labor, state.ak.us
Any questions about the Denali Commission's FY 04 Training Program please contact:
Krag Johnsen, Deputy Chief of Staff, Denali Commission
(907) 271-1413, kj ohnse'n@denali.g0v.
Multi-Use Facility Program
Funding for the Multi Use Program in FFY 05 is unknown at this time. If the Commission receives
communication from Congress that the Multi Use Program will be funded in FFY 05 the process to
select projects will begin. Eligibility and general program requirements can be found in FFY 04's RFP
at 'http://www.denali.gov/Section.cfm?Section=Multiuse%20Facilities. NOTE: some eligibility and
program requirements may change in FFY 05. Link to FFY 04 material is for reference only.
Please contact Rachael Petro, Multi Use Facilities Program Manager, at rpetro~b,.denali.gov or 907-
271-1414 with questions.
Economic Development
Mini-Grant Program
The Alaska Department of Commerce, Community and Economic Development awarded $534,036 to
21 Mini-Grant Program applicants in mid-September. The Denali Commission and the USDA Forest
Service committed $250,000 and $340,000 respectively to the program. Forty applicants applied to the
program this year, and 36 applications passed the threshold review process. These 36 applications
requested a total of approximately $964,000. Twenty one of these were offered a total of $534,036.
See http://www.dced.state.ak.us/dca/grt/pub/FFY 05 MINI Awards.pdf for list of recommended
awards.
Background' The Mini-Grant Program is co-funded by the Denali Commission and the USDA Forest
Service, and managed by the Alaska Department of Commerce, Community and Economic
Development. For program information, see the following:
h ttp://wxvw, d c ed. stat e. ak. us/c'b d/grt/m in i ~an.t. h tm.
Program contact: Jo E. Grove, (907) 451-2716, jo_g. rove~2dced.state.ak, us
Alaska Growth Capital Program
The Denali Commission allocated $500,000 to the Alaska Growth Capital (AGC) Program at its April
23rd meeting. AGC loan officers are currently working on a variety of financings throughout the state.
AGC staff held a technical assistance session in conjunction with the Alaska Federation of Natives
conference in October. The workshop was called Redefining Leadership: A New Age in Economic
Development, An Interactive Workshop for Alaskans Interested in Leadership, Change and Growth.
Background' Through capitalization by the Denali Commission, US Treasury, Arctic Slope Regional
Corporation and others, Alaska Growth Capital has provided financing and just-in-time business
assistance to entrepreneurs throughout Alaska. The Commission requires that AGC focus on
economically distressed rural communities. For more information, see:
http://www, a 1 aska growth, c o.m/mai n. htm 1.
Program Contact: David Hoffman, (907) 339-6760; dh.offman.~(!.alaskagrowth.com
Initiative for Accelerated Infrastructure Development
There are currently six IAID projects funded with IAID grant funds. The six projects will result in the
preparation of community maps for 73 communities. Total grant and local contribution funding
provided to produce the maps for the 73 communities is $2,076,150. The following summarizes the
status of the six projects.
· Aleutians East Borough- This project is complete and produced community maps for 6
communities.
· Lake and Peninsula Borough- This project covers 17 communities. Ten of the seventeen
communities are complete and the remaining 7 are approaching completion.
· Bristol Bay- This project covers 10 communities. One community is ready for final maps,
second drafts have been prepared for 5 communities, and first drafts have been completed for 4
communities.
· Bering Strait- This project covers 15 communities. Aerial photographs have been obtained for
13 of the communities. Weather prevented the contractor from obtaining photos of Gambell and
Savoonga. Photos will be obtained in the spring. Ground control fieldwork is also complete for
the 13 communities.
· Southeast - This project covers 11 communities. Both the ground control field work and the
aerial photo phases of this project have been completed.
· · Lower Kuskokwim River- This project covers 14 communities. Forest fire smoke and weather
prevented the contractor from obtaining aerial photos of all the communities. Additional photos
will be taken next spring. Ground control fieldwork is proceeding.
Two bills passed by
Congress last month contain-
ing a package of federal incen-
tives for an Alaska gas pipeline
gave a big boost up to what
could be the largest private
sector project ever under-
In addition, Governor
Frank Murkowski advised the
Alaska Legislature that ongo-
ing negotiations with North
Slope producers and Canadian
pipeline companies on fiscal
terms needed to advance the
project may need to include
the State taking an equity po-
sition in the pipeline, a role as
a shipper of gas, and be willing
to accept some level of the
project's risk.
Dr. Pedro Van Meurs, an
Jdvisor to the State on the on-
going negotiations with po-
tential builders of the gas
pipeline, called passage of the
federal provisions a "gigantic
step forward." Van Meurs said
the provisions demonstrate
that in order for the huge proj-
ect to move forward, financial
risks for those investing in it
must be reduced.
The bills contain federal
loan guarantees for up to 80
percent of the cost of the proj-
ect, seven-year accelerated de-
preciation for the pipeline and
an enhanced oil recovery tax
credit. The bill also provides
for expedited legal and regula-
tory reviews of the project.
The accelerated depreciation
provision allows pipeline
owners to write down their
construction costs over seven
years instead of 15 years on
the Alaska portion of the
pipeline. A proposed North
Slope gas conditioning plant is
eligible for a 15% Enhanced
Oil Recovery tax credit.
The provisions expediting
legal and regulatory reviews
were of paramount concern to
industry since they create an
efficient permitting process
and also lay out a framework
for dispute resolution, dimin-
ishing costly delays which
could negatively impact the
economics of a project of such
magnitude.
The regulatory provisions
included in the federal legisla-
tion also clarify the status of
the existing Alaska Natural
Gas Transportation Act au-
thorities and provisions
for updating previous
approvals.
North Slope produc-
ers BP Exploration
(Alaska), ExxonMobil
and ConocoPhillips
called the federal provi-
sions "a positive develop-
ment'' and applauded the
state's congressional delega-
tion for its hard work and
leadership in securing passage
of the incentive package.
The producers are negotiat-
ing together with the State as
one "sponsor group" over
taxes and royalties the compa-
nies would pay over the life of
the project. The State is in
similar negotiations with
TransCanada and is in discus-
sions with Enbridge. In addi-
tion, the Alaska Natural Gas
Development Authority and
the Alaska Gasline Port
Authority continue to work
on their own plans for an All-
Alaska gasline.
The State's Stranded Gas
team is aiming to develop a
final proposal to submit to the
Legislature early in the com-
(Continued to pa~e ~)
Gas Pipeline 1, ~t-5
Doyon Land Trade 3
~RDC Conference 6-7
Fairbanks Outreach 8-9
President's Message 10
RDC News Di~est 11
Resource Development Council
].::'! W. FJreweed, Suite 250
Anchorage, AK 99503
Phone: (90'7) 2?6-0700
Fax: (g0'7} 2?6-388'7
E-mail: resources@akrdc.or~
Website: www. akrdc.or~
Material in this publication may be
reprinted without permission provided
appropriate credit is ~Jiven.
Writer & Editor Carl Portman
Executive Committee Officers
President
Sr. Vice President
Vice President
Secretary
Trea s u re r
Past President
John Shively
Mark Hanley
Rick Ro~ers
Tom Maloney
Stephanie Madsen
Chuck Johnson
Staff
Executive Director
Deputy Director
Projects/AMEREF Coordinator
Finance/Membership
Tadd Owens
Carl Portman
Jason Brune
Billie Rae Gillas
Resource Review is the official periodic publication
of the Resource Development Council (RDC),
Alaska's largest privately funded nonprofit economic
development organization workinff to develop
Alaska's natural resources in a responsible manner
and to create a broad-based, diversified econom.
while protectinff and enhancinff the environment.
Paffe 2 November 2004 Resource Review www. akrdc.or~
LAND EXCHANGE WILL CREATE
ECONOMIC OPPORTUNITY
On October 21, 2004, Dovon Limited, the Alaska Native
regional corporation for Interior Alaska, and the U.S. Fish &
Wildlife Service announced an agreement in principle regard-
ing a land exchange within the boundaries of the Yukon Flats
National Wildlife Refuge.
When finalized, the land exchange will create significant
economic opportunities for Doyon and others in the region
without compromising the Fish & Wildlife Service's mission
of fish and wildlife habitat protection. More importantly, it
demonstrates that flexibility from federal departments when
working within the Alaska National Interest Lands
Conservation Act (ANILCA) can lead to both improved eco-
nomic opportunities and important environmental protec-
tions.
Dovon owns 1.25 million acres within the 11 million acre
Yukon Flats Refuge. The Fish & Wildlife Service calculates the
net effect of the trade to be an increase
to the Yukon Flats Refuge of 98,000
acres of quality fish and wildlife habi-
tat. Meanwhile, Doyon will gain ac-
cess to' lands that may hold
~evelopable oil and gas resources.
Only 80 miles separates this block of
land from the Trans Alaska Pipeline
System.
The draft agreement has four com-
ponents; 1) Doyon will receive
110,000 acres of surface/subsurface
land with oil and gas potential that
surrounds some of the company's ex-
isting acreage within the refuge; 2) The
Fish & Wildlife Service will obtain
150,000 acres of Doyon land else-
where in the refuge; 3) Doyon will
give up 58,000 acres of land within the
refuge to which the company is enti-
tled but has yet to select; and
4) Doyon will take title to 96,000 acres
of subsurface estate within the refuge.
This land will be in a "halo" sur-
rounding the company's core lands
and will be accessible only through di-
rectional drilling. No permanent
structures will be allowed on the
surface.
ANILCA created a patchwork of land ownership and man-
~gement regimes in Alaska. Overall 148 million acres in
Jlaska have been designated federal parks, wildlife refuges or
~fionuments. Of this total, 58 million acres are federally-
designated wilderness areas. Beyond these federal designa-
tions, Alaska has created the largest state park system in the
Union.
With so much of Alaska permanently protected from
development, resource development opportunities are limited.
The state's lack of infrastructure and high cost environment
also pose significant obstacles to economic growth.
Fortunately, Alaska's Native regional corporations, created by
the Alaska Native Claims Settlement Act (ANCSA) and en-
dowed with 44 million acres of land within the state, continue
to overcome these challenges.
The proposed trade between Doyon and the Fish & Wildlife
Service represents a win-win situation. Doyon is able to con-
solidate its holdings within the refuge and focus on the poten-
tial development of energy resources. Meanwhile, the Fish &
Wildlife Service is able to reduce the total amount of privately
held land in the refuge and limit possible development activi-
ties to a single core area.
Senator Ted Stevens deserves credit
for helping facilitate the proposed
deal. Negotiations have been ongoing
for two years between Doyon and the
Fish & Wildlife Service. They are
likely to be finalized within the next
few months, thanks in part to a
$750,000 dollar appropriation Senator
Stevens engineered to help pay for
land appraisals and some other costs.
As the state's principal private-land
owners, Alaska's Native corporations
will continue to identify and pursue
significant economic development op-
portunities. However, without coop-
eration from federal management
agencies, such as the Fish & Wildlife
Service, many of these prospective de-
velopments will be impossible to ad-
vance due to the complexity of land
ownership in Alaska. Our congres-
sional delegation will play a key role
in future projects by providing both
financial support and policy guidance
to the federal agencies charged with
managing much of Alaska.
Congratulations to Doyon and the
Fish & Wildlife Service for their work
to bring the proposed Yukon Flats
land exchange to fruition. Let's hope it sets a precedent for
similar exchanges in the future. RDC and its members stand
ready to support the proposed trade during the upcoming
public comment period. Given the chance, Alaskans will con-
tinue to prove that economic development and environmental
protection is not a zero-sum game.
(907) 276-0700 November 200~ Resource Review Pa~e 3
Upstream
- Prudhoe Bay
- Point Thomson
- Other North Slope gas
NGL Extraction Facility
-Pro cess gas to delivery spec
Gas Treatment Plant
- ~4.5 billion cubic feet per day
- Remove COz, other impurities
- Initial compression
Alaska to Alberta Pipeline Svstem
- Buried, high-pressure, chilled pipeline
- 52 inch, 2500 psi
- ]:ntermediat~ compression
- Refrigeration (Northern stations)
Alberta to Market Pipeline Svstem
- ~4 billion cubic feet per day
- 52 inch, buried pipe
- 1450 miles to Chicago
and / or
Existi nq Pipe line Svste ms
- Capacity through decline in existing
Canadian gas sources
- Expansions
Graphic courtesy
BP Exploration (Alaska), Inc.
(Continued from page 1)
ing session. Should the
Legislature adopt the fiscal
contract, it would set the
stage for engineering, plan-
ning and permitting.
Van Meurs told the
Legislative Budget and Audit
Committee last month that
the federal incentives were
necessary to encourage con-
struction and diminish over-
all financial risks. He noted
Alaska's competitors, coun-
tries with stranded gas re-
sources, are getting their gas
deposits developed and to
markets by reducing a pro-
ject's risks. He said Alaska's
competitors are moving for-
ward and doing quite well
while the State is not yet out
of the starting gate.~
The key state advisor out-
lined several risks unique to
the Alaska gas project.
First, the project is mam-
moth. At $15 to $20 billion,
Alaska's project is three times
the size of the next largest in
the world. The project's
gigantic size is a risk by itself.
Uncertainty surrounding
the future direction of natural
gas prices presents yet an-
other risk and potential cost
overruns add to the down-
side. North America's corn-
plex regulatory environment
is another challenge. Van
Meurs said competitors don't
have such regulatory risk.
"To get this project going
requires unique solutions,"
Van Muers said. "It won't go
by itself."
With passage of the federal
provisions, Van Muers told
legislators that the onus is
now on Alaska. "Now we are
the only ones standing in the
way of this project," he said.
Prior to introducing Van
Meurs' to the legislative com-
mittee, Governor Murkowski
asked legislators to discuss
with their constituents the
concept of State equity par-
ticipation and risk sharing in
the gas pipeline. An equity
position could include both
ownership of the pipeline, as
well as a role as a shipper of
gas. While both could lead to
significantly higher govern-
ment revenues, the State
would take on some of the
project's risk.
"We may have missed the
boat with the trans-Alaska oil
pipeline," Murkowski said.
"We have stood on the side-
lines for nearly 30 ye
watching a lot of reve
flow to those who were w~,--
ing to take the risk."
Page '~ November 2004 Resource Review www. akrdc.or:~
By going to the Legislature
now, Murkowski said he did-
n't want the administration's
team to spend months negoti-
ating a contract with equity
and shippers' risk incorpo-
rated into the document only
to have the Legislature tell
him that the concepts are not
acceptable.
The Alaska Stranded Gas
Development Act requires
the administration to bring
the Legislature a proposed
contact. Following legislative
and public input, the
Legislature will either ap-
prove or disapprove that'
proposal.
The governor warned delay
would seriously erode
Alaska's chances at getting
the line built. He explained
that imported liquefied natu-
ral gas is the State's chief
competitor and America
would be better off with a
stable, domestic supply of
...... natural gas, instead of relying
'tn overseas supplies.
"I believe any position ne-
gotiated by the State must re-
ward early construction and
penalize delay," Murkowski
said. "Our goal is an in-
ConocoPhillips, BP, ExxonMobil and others are actively expiorin~ several options for commercializin~ North Slope ~'as.
Above is the 800-mile trans-Alaska oil pipeline which begins at Pump Station I on the southern ed~'e of the Prudhoe Bay
field and stretches to the ice-free port of Vaidez. The Prudhoe Bay field itself contains 2q trillion cubic feet of natural ~as.
offsets in respect to taxes,
royalties or other obliga-
tions.''
The governor said the State
should be willing to risk
downside potential in return
for the upside potential and
the certainty that construc-
tion on the project will begin
soon.
se~ice date of 2012."
"It has become clear to me
that the most likely path for
starting construction soon
will require the State to take
an ownership position in the
project and bear a certain
amount of shippers' risk,"
Murkowski said. "This eq-
uity interest could involve
----'~Vith nearly 35 trillion cubic feet of natural ~as already discovered, Alaska's North Slope could supply North American
markets for decades. North Slope producers believe there is sufficient ~as to support ~as sales of two to four billion cubic
feet per day for more than 30 years. Above is the Central Gas Facility at Prudhoe Bay, the largest ~'as-handlin~ plant in the
world. The facility processes 8 billion cubic feet per day before the Sas is reinjected back into the reservoir.
(907) 276-0700
"I personally think the po-
tential risk is worth the re-
ward," Murkowski said.
The governor explained
that gas markets in the Lower
48 are likely to remain strong
for decades as gas is the fa-
vored fuel for heating and
electrical generation. The
governor also noted that
through the State's participa-
tion and assumption of risk,
"we make the project both
safer and more competitive
for the other participants. We
may get a gas line project
started this way and no other
way. And that is important if
our gas is going to compete
with increased LNG
imports."
He said sharing investment
cost lowers risk for other par-
ticipants and provides for a
high rate of return that is nec-
essary in view of other
worldwide opportunities for
investment in energy
projects.
The producers, Trans-
Canada and Enbridge will
participate in an Alaska gas
pipeline update at RDC's
conference November 18.
November 2004 Resource Review Pa~e 5
COMPETING GLOBALLY FOR INDUSTRY INVESTMENT
the L°Wer 48:and canada]i'
" for
Pa~e 6 November 200'~ Resource Review www. akrdc.or~
(907) 276-0700 November 200'-[ Resource Review Pa~e 7
RDC 2OO~ COMMUNITY OUTREACH TOUR
FAIRBANKS
The RDC Board of Directors conducted its annual community out-
reach trip September 30 throuffh October 3. This year's trip focused
on the Fairbanks area and included visits to the Fort Knox Gold Mine,
the Flint Hills Refinery in North Pole, Doyon Limited corporate of-
fices, the University of Alaska and Usibelli Coal Mine in Healy. More
than 20 RDC representatives enjoyed the :~enerosity and hospitality
of the Fairbanks business community. The trip opened with a special
dinner at the new Westmark Hotel. The seventy :~uests included local
members of RDC, as well as the board members of the Fairbanks
Chamber of Commerce and the Fairbanks Industrial Development
Corporation. While in Fairbanks, RDC also received a proffress report
on the Po~o Gold Mine from Karl Hanneman of Teck-Poffo.
RDC Board members pose on a new pedestrian bridffe over the Chena River in
downtown Fairbanks. New resource development projects and commercial
construction are benefitinff the local economy.
At upper left, the Usibelli Coal Mine's dra~line,"Ace-ln-The-Hole," is primarily
used to remove overburden. Above, Chief En:~ineer Alan Renshaw, from inside
the bucket of the dra~line, describes operations. Below, the RDC board and
:~uests pose inside the 33-cubic yard bucket.
Usibelli Chief Engineer Alan Renshaw points out exposed coal seams to John
Rinffstad. The mine will produce 1.3 million tons of coal this year with 800,000
tons used in Interior Alaska markets. The remainder is shipped to South Korea.
Paffe 8 November 200q Resource Review www. akrdc.orff
Located 25 miles northeast of Fairbanks, Kinross Gold Corporation's Fort Knox Mine has
been the largest ~old producer in Alaska since its inception in 1997. Above, a Kinross ~uide
discusses the open pit minin~ process with RDC board members.
RDC President John Shively is dwarfed by a hu~e tire on a haul truck at
Ft. Knox.
RDC board member Scott Thorson, left, is briefed on mill operations. After the
ore is removed from the open pit, it is taken to the "crusher" where large
boulders are crushed in seconds. A half-mile conveyor than moves it to the mill
for processing.
University of Alaska Fairbanks Chancellor Steve Jones shows RDC board
members a hi~'h resolution ima~'e of Alaska wildfires taken from space. The
image was so clear that the runways at the Anchorage airport could be seen
in the large photo.
)DC board members, wearing' 3-D ~o~'~les, receive a virtual representation ~f a
-.--~'~;unami in the Discovery Lab at the Fairbanks campus' Arctic Re,'ion
Supercomputin~ Center. The center provides computational resources to re-
searchers tacklin~ some of the arctic's ~reatest challenges, includin~ ~lobal cli-
mate chan~e, permafrost, ocean circulation, sea ice and tsunami research.
Jim Mery, center, shows Jeff Foley and
Rick Ro~ers the Doyon atrium in
Fairbanks.
(907) 276-0700
RDC Board member Sharon Anderson
at the Usibelli Coal Mine.
November 200'~ Resource Review Pa~e 9
Pa~e 10
In my last column I discussed risk and pre-
dictability and ended with the thought that no
matter how hard we try we cannot totally
eliminate risk, nor can we predict future events
with anything approaching~ 100% certainty.
What I want to discuss in this column is the re-
lationship between risk and change.
There are some that think the way to avoid
risk is to do nothing. Their philosophy is that
change, particularly change brought about by
resource development projects, is too risky. I
sometimes wonder if the Midwest would have
any agriculture industry to speak of if that in-
dustry had to attempt to develop under the
regulatory systems in place today.
If doing nothing is the order of the day, can
we predict that there is no risk? I don't believe
we can. By choosing to do nothing, we may
limit some environmental risks, but we most
surel? have increased economic risk for our-
selves and, perhaps, for future generations.
That is not to say that we should not attempt
to limit risk. It is in the interest of everyone to
reduce, financial, environmental, health, and
safety risks, just to name a few. Using good
data, good science and, occasionally, even a lit-
tle common sense can help us improve the
stewardship of natural, financial and social re-
sources.
There are some places where no change is
the order of the day. Areas designated by
Congress as National Wilderness would fall
into this category.
Other places, such as national and state
parks, should certainly have high standards
when it comes to allowing or encouraging
change, but even here some change is neces-
sary and that change will involve some risk.
Should we be telling people they can't be
visiting parks the size of some states because
there are only one or two dirt roads into them ?
Or can we work to find reasonable ways to
share these parks with more of the people they
were supposedly set aside for? Some would
say "No!" They fear for the wildlife.
And yet, if the moose and bear in the
Anchorage bowl and the caribou on the North
Slope are reliable indicators, wildlife would
seem to be more adaptable to the risk of
human activity than "intuitive science" would
lead us to believe.
To me, timber is the most frustrating of our
resources when it comes to people fighting
November 200'~ Resource Review
change. Can we find awav to harvest timber
in Alaska on any kind of long-term basis? It
doesn't seem so. Many Alaskans oppose tim-
ber harvest, particularly if it is anywhere near
where they live. Some of these same people
promote the need for sustainable develop-
ment.
Managed properly, timber would seem to be
rivaled only by fish in its ability to be sustain-
able. It might even be more sustainable if we
could introduce news species of trees that
might grow faster and even provide better
wildlife habitat. For instance, pine is a much
better food for moose than the indigestible
spruce we find throughout $outhcentral
Alaska.
Of course, the spruce is indigestible only to
the moose, but not the beetles. Since we lost
the opportunity to harvest many of these trees
while they were alive, are we now missing an-
other opportunity by not replacing them with
something else ?
As the spruce bark beetle has proven, eve-
when we choose to do nothing, change f
take place, and that change can have risks
such as the fire danger now faced by many
homeowners who live in and around dead and
dying spruce forests.
There is no question that the rate of change
we face in our daily lives has increased dra-
maticallv. Technology changes before we buy
it. How :~any of us use even half of the op-
tions available to us on our cell phones or our
computers? How many are like me, and can't
even figure out what half the options are?
Is this kind of change one of the driving
forces behind many people being less willing
to accept change when it comes to natural re-
source development? Certainly, a person liv-
ing in one of the pulsating metropolitan areas
in our country might find it pretty easy to
wish for time to stand still in Alaska. What
many of these people do not understand is that
their lifestyle is dependent on the consump-
tion of massive amounts of natural resources.
We in Alaska can and should be producing
some of those resources. But to do so will re-
quire some change and some risk. We can be
smarter about change, but we should not k
afraid of it. We can limit risk, but we can
eliminate it. My new bumper sticker- "R~__
change - for a brighter future."
www. akrdc.or~
Environmentalists Challenge
Bristol Bay Exploration License
RDC, Groups Host Knowles, Murkowski Debate
In a sold-out mid-October debate in Anchorage sponsored by the Alaska Forest
Association, RDC, the Alliance and the Alaska Miners Association, Senator Lisa
Murkowski and former Governor Tony Knowles fielded questions from modera-
tor John Sturgeon concernin~ oil, ~as, mining, timber, tourism and fishin~ issues.
Murkowski and Knowles diver~ed on the best strategy to open ANWR to oil
driilin~ and on the significance of the natural ~as pipeline incentives recently
~assed by Congress. The candidates also outlined how they would work with the
~pposite~ party controllin~ a polarized Congress and White House.
Arctic Economic Summit Set For Barrow
The 2005 Arctic Economic Development Summit will be
held January 31st to February 2nd in Barrow.
Hosted by the North Slope Borough and the Northwest
Arctic Borough, the theme of the 2005 Summit is
"Strengthening our relationships to strengthening our
economies."
The Summit's objective is to strengthen relationships be-
tween the two arctic regions while exploring new opportuni-
ties to foster sustainable economic development. The 2005
Summit will emphasize:
· Continued exploration of large-scale economic opportu-
nities;
· Improving upon and providing opportunities for public
and private business partnerships; · Small business development;
· Promoting the growth of cottage industries;
· Coordinating political efforts on a state and federal level;
· Creating accountability at the local level for the economic
success of each community within the region; and,
· Providing the resources and tools necessary to initiate
community discussions and action leading to strengthening
~,cal economies.
The two boroughs anticipate over 200 participants from
local communities, regional, state and federal organizations
and government entities.
The Environmental law firm, Trustees for Alaska, has filed
a protest with the State of Alaska to stop the clock on a Bristol
Bay basin exploration license to be issued to a company
owned by Native elders from the region.
The challenge to the exploration license due Bristol Bay
Shores LLC, the company formed by the Native elders to
eradicate poverty brought on by the decline of fisheries in the
Bristol Bay region, has already resulted in the loss of one in-
vestor.
The filing against the license has caused frustration and
anger among Bristol Bay residents, according to George
Shade, President of Bristol Shores.
"We're not taking it sitting down," Shade told Petroleum
News last month. "The impact on these remote areas is more
severe than these guys realize ... this is flat discrimination ...
this is probably one of the biggest paintball attacks I've ever
seen.
Both Shade and Jere Allan, President of the Bay Group,
view the filing as harassment. The Bay Group has been seek-
ing private investors to fund gas exploration in the license
area. Allan said one investor has pulled out as a result of the
Trustees' filing.
Shade said that the indigenous people around Bristol Bay
understand the environmental issues of the region and that
they pay much attention to protecting the environment. He
said all of the owners of Bristol Shores have been or are fish-
ermen.
"They are very concerned about the environmental aspects
of the the operation and protecting migration routes of the
animals, as well as the migration of the salmon, "Shade said.
The final finding for the exploration license is now on hold
pending reconsideration by the State.
Trustees said that its clients concerns center on the depth of
the state's analysis of the potential impacts of proposed devel-
opment. Trustees listed its clients as the Alaska Coalition,
Cascadia Wildlands Project, Pamela A. Miller, and the
Northern Alaska Environmental Center.
WWW.AKRDC.ORG
· RDC Silver Anniversary Conference, Nov. 18-19th
www. akrdc.or~/membership/events/conference/2OOq/
· Recent RDC Action Alert On New Roadless Rule Proposal-
Comment Deadline Extended To November ].5th
www. a krdc.or~/a lerts/
· AMEREF Announces New State Coordinator
www. a meref, or~/coord i nator, htmi
· RDC Fall Breakfast Meetin~ Schedule & Links To Presentations
www. a krd c.o r~/rn e rn be rs hip/eve nts/b rea kfa st/
(907) 276-0700 November 200'-[ Resource Review Pa:~e 11
Of all the benefits the NANA-Teck
partnership brings to our communities, the
obvious one is also' the easiest to overlook.,:..
.And Red Dog Mine is the .largest. producer:.~Of
concentrate in the world.
7inc touches our lives in countless ways,.
imPortant nutrient', zinc is essential to good hea
As a rust-proofing agent, zinc is used extensively...-,.
in the manufacture of ATV's, trucks, snowmachines'
.. .
metal roofing, paint and many more application~
too numerous to mention.
The mining of zinc at Red Dog also galvanizes and
protects our communities with good jobs, technical
training and community support.
_.
Corporation,
lED DOG OPBIATIONS
teckcominco
ADDRESS SERVICE REQUESTED
Growing Alaska Through Responsible Resource Development
121 W. Fireweed, Suite 250, Anchorage, AK 99503
PRSRT STD
U.S. Postage
PAID
Anchorage, AK
Permit No. 377
12'1 ~~'~;*~"*"~~ Digit 9961
MAYOR JOHN WILLI~S
CITY OF KENAI
OFFICE OF THi=. MAY
210 Fi DALGO AVE STE 200
KENAI AK 99611-7794
ll,l,,l,l,,,ll,,,,,ll,,,lll:,,ll,,,ll,l,,,l,,l,,,]lll
KENAI RIVER
tSpecial Management Area
"Working together_for the river"
NOTE' New Time
Kenai River Special Management Area Advisory Board
*** Meeting Agenda***
Thursday, November 18, 2004
5:30 p.m.
Kenai River Center
CALL TO ORDER
A. Roll Call
B. Approval of 9/23/04 and 10/14,'04 minutes
C. Agenda Changes and Approval
II. PUBLIC COMbIENT
III. NEW BUSINESS
A. KWF Sunm~er Water Testing Program, Robert Ruffner
B. Board Vacancies
C. Board Reorganization- bylaw approval
D. Goal Setting for Board in 2004-05
· Potential topics:
o additional lands addition in the upper Kenai River
o Hydrocarbon/outboard motor issues
IV. OLD BUSINESS
A. Kenai River Center Update, Suzanne Fisler
- Cooper Lake Hydro- FERC Relicensing Update
- Soldotna Bridge Project Update
B. Kenai River Working Group Update- Suzanne Fisler
C. DEC Site Monitoring Update-Jim Frechione
V. PUBLIC COMMENT
VI. ADJOURNMENT
A. Board Comments
B. Date/Agenda of Next Meeting
The Commercial Operators Committee will meet at 3:30p on November 18, at the Kenai River Center.
The meeting will be in the small conference room
Kenai Area Office, Box 1247, Soldotna, AK 9o~:~9, Soldotna 262-5581
Kenai Peninsula Borough, Box 850, Soldotna, AK 99669, Soldotna 262-4441
Alaska Division of Parks and Outdoor Recreation, Department of Natural Resources, in cooperation with the Kenai Peninsula Borough.
lo
Kenai River Special Management
Area Advisory Board
Meeting Minutes
Thursday, October 14, 2004
5:30 p.m.
Kenai River Center
CALL TO ORDER
II.
A. Roll Call "
Members Present: Jonne Slemons, Dave Westerman, Chris Degemes, Bill
Shuster, Ted Wellman, Linda Snow, Tom Vania
Members Absent: Dick Hahn, Jeff King, Pete Sprague, Robin West, Jim
Golden (resigned after September meeting), Roland Maw, Rick Wood, Joe
Connors, Paul Shadura, Ken Lancaster.
B. Approval of 9/23/04 minutes
No quorum.
C. Agenda Changes and Approval- There was no quorum, therefore the
agenda was not fulfilled. However since Nancy Sonafrank came from
Fairbanks she did give the presentation on the ADEC Proposed Mixing Zone
Regulations. No business could be conducted this evening.
PUBLIC COMMENT
III.
NEW BUSINESS
A. Interim Elections - board officers
B. Proposed Mixing Zone Regulations - Discussion; Nancy Sonafrank,
ADEC
Ted Wellman stood in for Board President Ken Lancaster. He advised the
board members and the public to be respectful to Nancy. Ted informed
everyone present that this would not be an occasion for comments on the
regulations. In order for comments to be considered they would need to be
submitted in written format either by mail, fax or email. The deadline for such
comments is November 1, 2004. Ted also informed the members of the public
they will be invited to speak after the presentation but would be limited to 3
minutes each.
Nancy thanked the board and the members of the public for inviting her to the
meeting. The presentation given is the same that was presented to the public
in meetings on August 24 and 26th. Nancy explained there are three basic
changes to the proposed regulation changes'
· Mixing zones in spawning areas may be permitted when they do not
adversely affect the capability of the area to support fish spawning,
incubation and rearing in rivers and streams. The reason cited for
this particular change was there are some mixing zones where it is
unnecessary to protect spawning success or fish populations. Nancy said
there were 21 other states surveyed and only 1 other state has a ban
similar to that of Alaska. Another reason cited was that it is expensive
with no environmental benefit. Nancy talked about the City of Valdez
Wastewater Lagoon as an example of an unnecessary ban. They
constructed their lagoons in 1984 with a ditch to take their treated
wastewater to the ocean. Salmon started spawning in the ditch and it
became a listed stream for anadromous fish. When the city went to
renew its permit Fish and Game pointed out that it was an anadromous
stream and it should not be allowed as a mixing zone. The only
alternative left to them under the'current regulations would be to
construct a pipe that is estimated to cost 2 million dollars to take the
wastewater directly from the lagoons to the ocean. That would also take
most of the xvater out of the ditch and probably stop the spawning.
Another situation is the Golden Heart Utilities Drinking Water
Treatment Plant used to discharge lime drinking water treatment sludge
into the Chena River. They had been doing this for quite awhile. Their
permit came up for review and change. Fish and Game studied the area
and found there was no adverse affect to the grayling spawning in the
river from the past or continuing discharge. But the permit was denied
because of the regulations on mixing zones. GHUDW will have to
redesign their plant at a cost of over 1 million dollars to take the lime
sludge to the landfill where it will use up space there. In both these
examples Nancy stated there is no environmental benefit. How would
these changes protect fish? Nancy said it would fall on the applicant to
demonstrate there would be no adverse affect to the spawning area. The
applicant would work with DNR, Office of Habitat Management and
Permitting and the Department ofFish and Game Sportfish Division.
Nancy said each and every permit with a mixing zone would go out to
public notice.
Kenai River Special Management Area Advisory Board
October 14, 2004
Page 2 of 6
· Mixing Zone regulations are being reorganized to make them easier to
use. Nancy explained this change would consolidate all mixing zones
into one section, eliminate duplication and clarify language.
· Technical specifications are being moved into technical guidance for
permit writers. This would allow DEC staff to exercise their best
professional .judgment in making complex technical decisions. The
computer models and technology used to define these mixing zones
changes over time and regulations take a long time to catch up with
technology. This is done in consultation with EPA and use acceptable
standard computer model. The specifications in the current regulations
will still be implemented in permits. So the net effect of this move will
be very small because xve would still be ' ~.~ *' o
~mp,cmen~m, the same kinds of
designs and decisions based on most current science and technology.
At this point Ted Wellman invited the public to speak.
Bob Shavelson, Executive Director of Cook Inlet Keeper. Mr. Shavelson
stated the regulation changes are a bad idea. He talked about the Clean Water
Act of 1972 passed by COn~ess with the goal of eliminating pollution by
1985 which has not been accomplished. The Clean Water Act never mentions
the word "mixing zone". The rationale that DEC is putting forth here is that
this is part of housekeeping, streamlining and that xve need this for more
efficient permitting. He said the "scare stories" such as Golden Heart are not
appropriate. Under the proposed role it will be the applicant that carries the
burden to show that there will be no adverse affects to the resource. He said
he disagrees with that because the applicant will have their best interest in
seeing that mixing zone approved. Every state that has a mixing zone also
has issued fish consumption advisories. He said it is bad for fish, for
fishermen, for salmon marketing. He encouraged the board to take a position
against the proposed regulation.
Mark Powell of 46655 Kenai Spur Hwy. Pres. Kenai Wild branding program.
The idea that we can continue to pollute through dilution is unacceptable.
Alaska has generated this branded salmon that creates world wide attention
based on the pristine quality of Alaska's waters. He referred to an issue in the
Sunday Peninsula Clarion called "Fish On" on the front page. It lists all the
states that have fish advisory warnings issued within their states. Commercial
fishing industries have worked along with the oil companies and continues to
support them but not at the potential destruction of the commercial fishing
industry. But he does not suppQrt the mixing zone changes that are being
proposed in the salmon spawning areas.
Kenai River Special Management Area Advisory Board
October 14, 2004
Page 3 of 6
Carl Wagoner 46705A Kenai Spur Hwy., a commercial fisherman. Owns a
mile of beach just south of where a mixing zone is proposed. That water
would go through all his nets. He does not think this is a very good idea.
Merrill McGahan said he has a fish site that is fight below Chevron. He has
had numerous problems with them in the past. For 10 years they have been
fighting over access to the beach which by state law there is supposed to be an
access. Chevron has denied him that access. Last year during the fishing
season there were 4 days when he could not fish because Chevron built their
wall. In the process all the dirt has eroded which cuts the beach over 20 feet.
When there is a minus tide he can't get off the beach. He is also a member of
Kenai Wild. He does not believe in a mixing zone. This will ruin the Kenai
Wild products. The fish that were deemed clean were 2 states and Alaska was
one; Wyoming being the other.
At this point public comment was closed and the board members made
comments.
Jonne said DEC would like to remind all to have comments in a written
format. It will be helpful to have the different perspectives heard from the
public tonight. Encouraged all to send written comments by the November 1
deadline.
Bill S asked who determines that there will be no adverse affect on a permit?
Nancy said a consultant would do any studies they would need. The
consultant would have them reviewed by F&G to prove there are no adverse
affects.
Linda asked with the proposed regulations does this lower or raise the "proof'
standard for existing permits as they come due. Nancy said they would have
to now prove there were no adverse affects to a salmon stream. So that is
adding a little more work to a permit.
Dave asked how often are the mixing zones be monitored? Nancy said it
depends on the permit. It is permit specific. They go through reasonable
potential analysis. Depends on the site. It is site specific.
Ted asked when public hearings were held there were none on the Kenai
Peninsula? Nancy said there were teleconference set up in Homer Legislative
Information Office and Kodiak LIO. Nancy said the public heatings were in
Anchorage, Fairbanks, and Juneau.
Kenai River Special Management Area Advisory Board
October 14, 2004
Page 4 of 6
Ted asked that when DEC consults with DNR Habitat and F&G Sportfish
Division, would those entities have veto power or is it only a consultation only
over granting of a permit? Nancy said it is just a consultation. DEC would
still have the attthority to go ahead. However it would be a pretty tough hurdle
to overcome.
Ted asked if there are any applications "waiting in the wings" for this
proposed regulation? Nancy said the City of Valdez.
Tom said it seems like the focus is on spawning. Incubation and rearing
should be looked at also.
Dave sees a need to come back a few years later and have a look see. Who
will monitor the conditions of the permits?
Ted said it is outrageous. He does not see any justification for this. Concerns
him is the exception in the way to mitigate this could under the right
circumstances be politically manipulated to the point that you ~vould have
virtually no restrictions on what is going on. There are no standards to legally
challenge. No standards about the size of a mixing zone. The fact that other
states do this does not have any persuasive impact for him. When you have
situation with a large industrial polluter who would come in and filing an
application. The ability to install a mixing zone is largely left to the discretion
of DEC without adequate standards is simply unacceptable. Ted strongly
advocates joining the Borough in opposing the regulation changes.
Encourage all to submit written comments before the deadline.
C. Board Reorganization- bylaw approval
D. Goal Setting for Board in 2004-05
· Potential topics:
o additional lands for addition in the upper Kenai River
o Hydrocarbon/outboard motor issues
E. Board Vacancies
IV. OLD BUSINESS
ge
A. Kenai River Center Update, Suzanne Fisler
- Cooper Lake Hydro - FERC Relicensing Update
- SoldotnaBridge Project Update
B. Kenai River Working Group Update, Chris Degemes
PUBLIC COMMENT
Kenai River Special Management Area Advisory Board
October 14, 2004
Page 5 of 6
VI.
ADJOURNMENT
A. Board Comments
B. Date/Agenda of Next Meeting
Next meeting will be 11/18 since 11/11 is holiday.
Kenai River Special Management Area Advisory Board
October 14, 2004
Page 6 of 6
r
DEPT. OF ENVIRO~E~....TA ..L-.CONSERVA~ION
DIVISION OF WATER ~.."i. :'-: .'"-....i ...' ....
i Nqv 8 ~0rl/l November 5, 2004
OATE: ?/- .
PROJECT: ,~
iii __
FRANK N_ Mttt~ttt~w_etct
4" 0 Willoughby Ave., Ste 303
Jt ~au, AK -~33 ;-; 795 ....
P~ ~ONE: (907) 465-5180
F~ ,X: (~b7) 465-5177
h~o://~.state.ak.u~d~
Dear Alaskan'
Enclosed you will find the draft amended'Alaska Drinking Water Fund (ADWF) priority and
planning lists for loan eligiblepE0j_e_ctsjn State Fiscal Year 2005 (SFY05). The amended
SFY05 Intended Use Pi~i~-[~-tlS~'re~-t~lt of new projects submitted, changes to existing projects
and providing funding to the capacity development program.
Project changes are listed as follows:
New Proiects Submitted
...-- · City of Kenai: Water Treatment System at Well Houses ($1,600,000) .
· Settlers Bay: Water Tank Improvements ($1,105,000)
· Anchorage: Pressure Zone 411 Water Intertie ($2,000,000)
· Anchorage: Girdwood Water Improvements ($500,000)
Changes to Existing Prelects · Anchorage- Loop Phase. IV, funding increase ($4,000,000) '
· Dillingham: Water System Improvements, funding decrease ($2,823,718)
· Palmer: Steel Water Main Replacement, funding decrease ($1,700,000)
· Homer: SDWA Compliance, funding decrease ($1,910,000)
· Unalaska: Jack London Drive Water Main, proiect removed
· Unalaska: Nirvana Hill Water Main Extension, project removed
Set-Aside
The Division of Environmental Health has requested $179,500 of the federal capitalization
grant for the capacity development program. This program will help communities address their
water systems' financial, managerial, and technical needs. For capacity development
information, please contact James Weise at (907) 269-7647.
To obtain full copies of the amended ADWF Intended Use plan on our website, please connect
to- http://www, state.ak, us/dec/water/muniloan/index, htm. We also would be happy to mail
you a copy upon request.
The lists and subsequent changes are provided for your review and comment during the public
comment period ending December 6, 2004.
If you have questions or concerns, please do not hesitate to contact me directly in Anchorage
at (907) 269-7616.
Sincerely,
Michael P. Lewis, P.E.
Program Manager
Enclosure' Alaska Drinking Water Fund Funding Priority and Planning Lists
Z
0
l=
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00000
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0 ~ >, 0
o o~ o
m 0._5 m ~,o
~., '- ~ .--
~ ~ ~ ~ ~ o ~ = O~
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Z
0 ii:
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0
E
KENAI MULTI-PURPOSE FACILITY
ACTIVITY REPORT
Month: October 2004
ACTIVITY
Customer Type' (hrs.)
KPHA
KCHS
Homer H.S.
North Pen. Rec.
Adult League
Nikiski H.S.
Homer Hockey Assoc.
Total Hrs:
Revenue:
Ice Rental
Public Skate
Dasher Ads
Expenses:
Ice Maint.
Electric
Gas
Water and Sewer
Sanitation
Total Revenue:
Total Expenses:
THIS
MONTH
73.25
22
8
6
7.25
15.5
141.25
$14,843.05
161.00
0
$9,900.00
6,496.71
262.87
315.72
64.00
$15,004.05
$17,039.30
THIS
MONTH
LAST YEAR
73
18
8
0
3
16
16.5
134.50
$14,138.25
104.38
1,175.37
$9,946.56
5,756.57
266.23
381.81
7332
$15,418.00
$16,424.49
0
~ 0
E
8
0
0
CITY OF KENAI, ALASKA
Federal and State Single Audit Reports
June 30, 2004
CITY OF KENAI, ALASKA
Federal and State Single Audit Reports
June 30, 2004
Independent Auditor's Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Perforated in Accordance with Government Auditing Standards
Independent Auditor's Report on Compliance with Requirements
Applicable to each Major Program and Internal Control over
Compliance in Accordance with OMB Circular A-133
Schedule of Expenditures of Federal Awards
Report on Internal Control over Financial Reporting and on Compliance
And Other Matters Based on a Audit Financial Statements Performed in
Accordance with Government Auditing Standards
Report on Compliance with Requirements Applicable to Each Major
Program and Internal Control over Compliance in Accordance with
the State of Alaska Audit Guide and Compliance Supplement for State
Single Audits
Schedule of State Financial Assistance
3-4
5-6
8-9
10-11
12
Schedule of Findings and Questioned Costs
Corrective Action Plan
13
14
Summary Schedule of Prior Year Findings
15
M IKUNDA, COTTRELL & CO.
A Professional Corporation
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
215 Fidalgo, Suite 206 · Kenai, Alaska 99611
(907) 283-3484, Fax (907) 283-5842
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Staternents Performed in Accordance with
Government Auditing Standards
Honorable Mayor and City Council
City of Kenai
Kenai, Alaska
Ladies and Gentlemen:
We have audited the basic financial statements of City of Kenai, Alaska as of and for the year
ended June 30, 2004, and have issued our report thereon dated October 15, 2004. We conducted
our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in the Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Kenai, Alaska's internal control
over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the basic financial statements and not to provide assurance on the
internal control over financial reporting. Our consideration of the internal control over financial
reporting would not necessarily disclose all matters in the internal control over financial
reporting that might be material weaknesses. A material weakness is a condition in which the
design or operation of one or more of the internal control components does not reduce to a
relatively low level the risk that misstatements caused by error fraud in amounts that would be
material in relation to the financial statements being audited may occur and not be detected
within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control over financial reporting and its operation that
we consider to be material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Kenai, Alaska's basic financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of.laws, regulations, contracts and grant agreements, noncompliance with which
could have a direct and material effect on the detemfination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of our
audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
RSM Mc61adre¥ Network
An Independently Owned Member
Offices: Anchorage, Kenai & Seward
Honorable Mayor and City Council
City of Kenai
Kenai, Alaska
This report is intended solely for the information and use of the City Council, City's,
managelnent, federal awarding agencies, and pass-through entities and is not intended to be and
should not be used by anyone other than those specified parties.
October 15, 2004
MIKUNDA, COTTRELL & CO.
A Professional Corporation
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
215 Fidalgo, Suite 206 · Kenai, Alaska 99611
(907) 283-3484, Fax (907) 283-5842
Independent Auditor's Report on Compliance with Requirements Applicable to each Maior
Progral-n and Internal Control over Compliance in Accordance with OMB Circular A-133
Honorable Mayor and City Council
City of Kenai
Kenai, Alaska
Ladies and Gentlemen:
Compliance
We have audited the compliance of the City of Kenai, Alaska with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-J33
Compliance Supplement that are applicable to each of its major federal programs for the year
ended June 30, 2004. The City of Kenai, Alaska's major federal programs are identified in the
summary of auditor's results section of the accompanying schedule of findings and questioned
costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to
each of its major federal programs is the responsibility of the City of Kenai, Alaska's
management. Our responsibility is to express an opinion on the City of Kenai, Alaska's
compliance based on our audit. ·
We conducted oui' audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about City of Kenai, Alaska's
compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our
opinion. Our audit does not provide a legal determination on the City of Kenai, Alaska's
compliance with those requirements.
In our opinion, the City of Kenai complied, in all material respects, with the requirements
refen'ed to above that are applicable to each of its rnajor federal programs for the year ended
June 30, 2004.
RSM McGladrey Network
An Independently Owned Member
OftTces: Anchorage, Kenai & Seward
Honorable Mayor and City Council
City of Kenai
Kenai, Alaska
Internal Control Over Compliance
The managelnent of City of Kenai, Alaska is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations, contracts and
grants applicable to federal programs. In planning and performing our audit, we considered the
City of Kenai, Alaska's internal control over compliance with requirements that could have a
direct and material effect on a major federal program in order to detemaine our auditing
procedures for the purpose of expressing our opinion on compliance and to test and report on the
internal control over compliance in accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components
does not reduce to a relatively low level the risk that noncomlSliance with applicable
requirements of laws, regulations, contracts and grants caused by error or fraud that would be
material in relation to a major federal program being audited may occur and not be detected
within a timely period by employees in the normal course of performing their assigned functions.
We noted no matters involving the internal control over compliance and its operation that we
consider to be material weaknesses.
Schedule of Expenditures of Federal Awards
We have audited the basic financial statements of the City of Kenai, Alaska as of and for the year
ended June 30, 2004, and have issued our report thereon dated October 15, 2004. Our audit was
performed for the purpose of forming an opinion on the basic financial statements taken as a
whole. The accompanying schedule of expenditures of federal av~ards is presented for purposes
of additional analysis as required by OMB Circular A-133 and is not a required part of the basic
financial statements of the City of Kenai, Alaska. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, is
fairly stated, in all material respects, in relation to the basic financial statements taken as a
whole.
This report is intended solely for the information and use of the City Council, City's
management, and federal and state awarding agencies, and pass-through entities and is not
intended to be and should not be used by anyone other than those specified parties.
October 15, 2004
CITY OF KENAI, ALASKA
Schedule of Expenditures of Federal' Awards
Year Ended June 30, 2004 '
Federal Grant Award
U.S. Department of Agriculture:
NSIP Cash
Catalog of Federal
Domestic Assistance Expenditures
Grant Number Number June 30, 2004
607-04-162 10.570 $ 11,663
U.S. Department of Transportation
ARFF/SRE Building*
Airport Security Improvements*
Airport Environmental Assessment*
Airport 2002 SRE*
Airport Terminal Modifications*
U.S. Department of Commerce
Economic Development Administration:
Bridge Access WS Study
03-02-0142-2701 20.106 97,113
03-02-0142-2902 20.106 36,546
03-02-0142-3002 20.106 23,178
03-02-0142-2802 20.106 75,803
03-02-0142-3103 20.106 68,220
300,86O
07-79-04943 11.307 10,205
U.S. Department of Military Affairs:
Homeland Security Grant
SHSGP1103-12 16.007 64,032
U.S. Department of Health & Human Services:
Council on Aging TITLE
U.S. Department of Transportation:
Passed through State of Alaska
Department of Public Safety:
AK Highway Safety Grant
AK Highway Safety Grant
AK Highway Safety Grant
AK Highway Safety Grant
AK Highway Safety Grant
AK Highway Safety Grant
U.S. Department of Natural Resources:
Section 106 Training
607-04-113
93.045/93.044 97,969
03-02-16AL 20.600 2,320
03-06-03TR 20.600 1,709
03-03-09OP 20.600 7,599
04-02-03AL 20.600 6,957
04-03-03OP 20.600 4,344
03-06-13TR 20.600 3,883
26,812
30408 15.904 1,342
U.S. Department of Health and Social Services:
Boys and Girls Club-Juvenile Justice
06-09-04049 16.546 51,491
Federal Major Program
$ 564,374
M IKUNDA, COTTRELL & CO.
A Professional Corporation
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
215 Fidalgo, Suite 206 · Kenai, Alaska 99611
(907) 283-3484, Fax (907) 283-5842
Report on Internal Control over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in Accordance with Government Auditing
Standards
Honorable Mayor and City Council
City of Kenai
Kenai, Alaska
Ladies and Gentlemen:
We have audited the basic financial statements of City of Kenai, Alaska as of and for the year
ended June 30, 2004, and have issued our report thereon dated October 15, 2004. We conducted
our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in the Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Kenai, Alaska's internal control
over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the basic financial statements and not to provide, assurance on the
internal control over financial reporting. Our consideration of the internal control over financial
reporting would not necessarily disclose all matters in the internal control over financial
reporting that might be material weaknesses. A material weakness is a condition in which the
design or operation of one or more of the internal control components does not reduce to a
relatively low level the risk that misstatements caused by error fraud in amounts that would be
material in relation to the financial statements being audited may occur and not be detected
within a 'timely period by employees in the normal course of perforating their assigned functions.
We noted no matters involving the internal control over financial reporting and its operation that
we consider to be material weaknesses..
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Kenai, Alaska's basic
financial statements are free of lnaterial misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements,, noncompliance with
which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
RSM. McGladrey Network
An Independently Owned Member
Offices: Anchorage, Kenai & Seward
Honorable Mayor and City Council
City of Kenai
Kenai, Alaska
This report is intended solely for the information and use of the City Council, City's management
and the State of Alaska and is not intended to be and should not be used by anyone other than
those specified parties.
October 15, 2004
:
MIKUNDA, COTTRELL & CO.
A Professional Corporation
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
215 Fidalgo, Suite 206 · Kenai, Alaska 99611
(907) 283-3484, Fax (907) 283-5842
Report on Compliance with. Requirements Applicable to each Major Program and Internal
Control over Compliance in Accordance with the State of Alaska Audit Guide and Compliance
Supplement for State Single Audits
Honorable Mayor and City Council
City of Kenai
Kenai, Alaska
Ladies and Gentlemen'
Compliance
We have audited the compliance of the City of Kenai, Alaska with the types of compliance
requirements described in the State of Alaska Audit Guide and Compliance Supplement for State
Single Audits that are applicable to each of its major federal programs for the year ended June'
30, 2004. The City of Kenai, Alaska's major state programs are identified in the accompanying
Schedule of State Financial Assistance. Compliance with the requirements of laws, regulations,
contracts, grants, general requirements, and the specific requirements applicable to each of its
state programs is the responsibility of the City of Kenai, Alaska's management. OUr
responsibility is to express an opinion on the City of Kenai, Alaska's compliance based on our
audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the COmptroller General of the United States and the
State of Alaska Audit Guide and Compliance Supplement for State Single Audits. Those
standards and the State of Alaska Audit Guide and Compliance Supplement for State Single Audit
require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to aboVe that could have a
direct and lnaterial effect on a major state program occurred. An audit includes examining, on a
test basis, evidence about the City of Kenai, Alaska's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances. We believe
that our audit provides a reasonable baSis for our opinion. Our audit does not provide a legal
determination on the City of Kenai, Alaska's compliance with'those requirements.
In our opinion, the City of Kenai complied, in all material respects, with the requirements
referred to above .that are applicable to each of its major state programs for the year ended June
30, 2004.
RSM McGladrey Network
An Independently Owned Member
10
Offices: Anchorage, Kenai & Sewara ~
Honorable Mayor and City Council
City of Kenai
Kenai, Alaska
Internal Control Over Compliance
The managelnent of City of Kenai, Alaska is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations, contracts and
grants applicable to state programs. In planning and perforating our audit, we considered the
City of Kenai, Alaska's internal control over compliance with requirements that could have a
direct and material effect on a major state program in order to determine our auditing procedures
for the purpose of expressing our opinion on compliance and to test and report on the internal
control over compliance in accordance with the State of Alaska Audit Guide and Compliance
Supplement for State Single Audits.
Our consideration of the internal control over compliance would not necessarily disclose all
matters in the internal control that might be material weaknesses. A material weakness is a
condition in which the design or operation of one or more of the internal control components
does not reduce to a relatively low level the risk that noncompliance with applicable
requirements of laws, regulations, contracts and grants caused by error or fraud that would be
material in relation to a major state program being audited may occur and not be detected within
a timely period by employees in the normal course of performing their assigned functions. We
noted no matters involving the internal control over compliance and its operation that we
consider to be material weaknesses.
Schedule of State Financial Assistance
We have audited the basic financial statements of the City of Kenai, Alaska as of and for the year
ended June 30, 2004, and have issued our report thereon dated October 15, 2004. Our audit was
performed for the purpose of forming an opinion on the basic financial statements taken as a
whole. The accompanying Schedule of State Financial Assistance is presented for purposes of
additional analysis as required by the State of Alaska Audit Guide and Compliance Supplement
for State Single Audits and is not a required part of the basic financial statements of the City of
Kenai, Alaska. Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects,
in relation to the basic financial statements taken as a whole.
This report is intended solely for the information and use of the City Council, City's management
and the State of Alaska and is not intended to be and should not be used by anyone other than
those specified parties.
October 15, 2004
11
CITY OF KENAI, ALASKA
Schedule of State Financial Assistance
Year Ended June 30, 2004
State Grantor
Department of Community and
Economic Development:
State Revenue Sharing-Temp. Fiscal Relief'*
Senior Center Improvements 03-DC-067
Restoring the Riverbanks of the Kenai River 04-RR-013
Total Department of Community and Economic Development
Program Number
Department of Revenue:
Shared Business Fishery Tax*
Liquor Licenses
Electric Utilities
Aviation Fuel
Department of Education:
Public Library Assistance
Interlibrary Cooperation Grant
Interlibrary Netlender
Total Department of Education
PLA-04-747-41
I1C-04-747-112
ILC-04-745-127
Department of Health and Social Services:
Southern Region EMS Equipment
601-01-083
Department of Admi~xstration:
Capital Project Matching Grant*
Capital Project Matching Grant*
Capital Project Matching Grant*
Capital Project Matching Grant
Kenai Water and Sewer Improvements*
Total Department of Adminstration
93.04500/587-8-001
01MG0781
02MG075
03MG026
4/96-003
Department of Environmental Conservation:
Waste Water Treatment Plant Planning
Water System Grant*
Bridge Access Road Water and Sewer Study
Total Department of Environmental Conservation
47546
47547
47549
Department of Transportation:
Airport 2002 SRE
Airport Security Improvements
Airport Environmental Assessment
Airport Temninal Modifications
Total Department of Transportation
56842
56842
56842
57160
Total State Financial Assistance
* State Major Program
Program or
Award Amount
151,893
40,000
350,000
541,893
80,571
6,000
28,468
11,244
126,883
6,300
1,500
672
8,472
30,000
149,911
144,390
143,379
142,569
355,976
936,225
151,000
1,697,000
25,000
1,873,000
7,188
10,938
11,719
33,006
62,851
3,579,324
Amount
Expended During
the Year Ended
June 30, 2004
151,893
10,000
4,540
166,433
80,571
6,600
28,468
11,244
126,883
6,300
1,500
672
8,472
30,000
85,005
144,390
143,379
1,474
50,214
424,462
17,144
50,215
10,205
77,564
2,527
1,218
773
1,250
5,768
839,582
12
CITY OF KENAI, ALASKA
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2004
Federal:
Summary of audit results:
Type of report issued on financial statements
Reportable conditions in internal controls
Material noncompliance
Reportable conditions in internal control over major programs
Type of report issued on major program compliance
Audit findings as required to be reported by OMB Circular A-133
Major programs:
CFDA # Program
20.106 Airport Improvement Program
Unqualified
None noted
None noted
None noted
Unqualified
None noted
Dollar threshold used to distinguish between Type A and
Type B programs
Low-risk auditee
$300,000
Yes
II. Findings relating to the financial statements which are required
to be reported in accordance with Generally Accepted Auditing
Standards
None noted
III. Federal awards findings and questioned costs
None noted
State of Alaska:
Program Finding/Noncompliance
There are no current year state single audit findings.
Questioned Costs
13
CITY OF KENAI, ALASKA
Corrective Action Plan
For the Year Ended June 30, 2004
Federal:
There are no current year federal single audit findings and no corrective action plan.
State of Alaska'
There are no current year state single audit findings and no corrective action plan.
14
CITY OF KENAI, ALASKA
Summary Schedule of Prior Audit Findings
For the Year Ended June 30, 2004
Federal:
There were no prior year audit findings.
State of Alaska:
There were no prior year audit findings.
15
Comprehens ve An nual
Financial Report
For Fiscal Year Ended
June 30, 2004
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
CITY OF KENAI, ALASKA
Year Ended June 30, 2004
John
J. Williams
Mayor
Linda L. Snow
City Manager
Prepared by
Finance Department
Lawrence A. Semmens, CPA
'Finance Director
INTRODUCTION SECTION
CITY OF KENAI, ALASKA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2004
Pa_~e
Table of Contents
Letter of Transmittal
GFOA Certificate of Achievement
Organizational Chart
List of Principal Officials
FINANCIAL SECTION
..
..
Auditor Report
Report of Independent Accountants
Management's Discussion and Analysis
11
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Assets
19
Statement of Activities
20
Fund Financial Statements
Balance Sheet, Governmental Funds
21
Statement of Revenues, Expenditures, and Changes in Fund Balance, Governmental Funds
22
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities
23
General Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual
24
Water and Sewer Special Revenue Fund - Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
31
Airport Land System Special Revenue Fund - Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual
33
Statement of Net Assets - Proprietary Funds
35
Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds
36
Statement of Cash Flows- Proprietary Funds
37
Footnotes 39
Other Governmental Funds
Airport Land Sales Permanent Fund- Statement of Revenues, Expenditures, and Changes in
Fund Balance- Budget and Actual
Combining Balance Sheet- Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Chanoes in Fund Balance-
Nonmajor Governmental Funds
Kenai Borouoh Senior Citizens - Statement of Revenues, Expenditures, and Changes in Fund
Balance- Budget and Actual
Council on Agin~ - Statement of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual
1984/1986/1993 Special Assessment Debt Service Fund - Statement of Revenues,
Expenditures, and Changes in Fund Balance- Budget and Actual
General Government Land sales - Statement of Revenues, Expenditures, and Changes in
Fund Balance- Budget and Actual
Statistical Section
Table No.
General Government Expenditures by Function
General Revenues by Source
Tax Revenues by Source
Property Tax Levies and Collections
IV
Property Tax Rates and Tax Levies - All Direct and Overlapping Governments
V
Computation of Direct and Overlapping General Obligation Debt
VI
Computation of Legal Debt Margin
VII
Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per
Capita
VIII
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General
Expenditures
IX
Debt Service Requirements to Maturity - General Obligation Bonds
X
Schedule of Ten Largest Taxpayers
XI
Schedule of Assessed Value and Construction Activity
XII
Miscellaneous Statistical Data
Xlll
51
53
54
57
6O
61
62
63
65
66
68
70
71
72
73
73
74
76
77
78
79
80
ii
October 15, 2004
CITY OF KENAI
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283-7535
FAX 907-283-3014 ~
1992
Honorable Mayor John J. Williams,
City Council Members and Citizens of
the City of Kenai, Alaska
In accordance with Section 29.35.120 of Alaska Statutes and the City Charter, we are pleased to submit the
Comprehensive Annual Financial Report for the year ended June 30, 2004. The financial statements were
prepared in conformance with generally accepted accounting principles (GAAP) and audited in accordance
with generally accepted auditing standards by a firm of licensed certified public accountants.
This report consists of management's representations concerning the finances of the City of Kenai.
Consequently, management assumes full responsibility for the completeness and reliability of the information
presented in this report. To provide a reasonable basis for making these representations, management of
the City has established a comprehensive internal control framework that is designed both to protect the
government's assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls
shoUld not outweigh their benefits, the City's comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be free from
material misstatements. As management, we assert that, to the best of our knowledge and belief, this
financial report is complete and reliable in all material respects.
The City's financial statements have been audited by Mikunda, Cottrell & Co., a firm of independent certified
public accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the City for the fiscal year ended June 30, 2004, are free of material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statement; assessing the accounting principles used and significant estimates made by
management; and eValuating the overall financial statement presentation. The independent auditor
concluded, based upon the audit, that them was a reasonable basis for rendering an unqualified opinion that
the City's financial statements for the fiscal year ended June 30, 2004, are fairly presented in conformity with
GAAP. The independent auditor's report is presented as the first component of the financial section of this
report.
The independent audit of the financial statements of the City was part of a broader, federally mandated
"Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair presentation of the
financial statements, but also on the audited government's internal controls and compliance with certain legal
requirements, with special emphasis on internal controls and legal requirements involving the administration
of federal awards. These reports are available in the City's separately issued Single Audit Report.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompanying
the basic financial statements in the form of Managemenrs Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A
can be found immediately following the report of the independent auditors.
Profile of the City of Kenai
The City was incorporated in 1960 as a home rule city and its charter was adopted May 20, 1963. The City
occupies a geographic area of approximately 45 square miles located in the south central part of the state of
Alaska. Major city services include police, fire, ambulance, airport, street maintenance, recreation, parks,
building inspection, water and sewer, dock, cemetery and library. Funding for the City General Fund, by order
of financial significance, is provided from sales tax, property tax, state revenue, interest earnings, federal
revenue, and other sources. Other funds rely on service charges, interest, grants and other sources.
The City operates under a council- manager form of government. Policy-making and legislative authority are
vested in a governing council cOnsisting of six members and the mayor. The city manager, attorney and clerk
are appointed by the council. The council and mayor are elected on a non-partisan basis. Council members
serve three-year staggered terms, with 2 members elected each year and are elected at large. The mayor is
elected at large and serves a three-year term. The city manager is the City's chief executive officer and is
responsible for carrying out the policies and ordinances of the City, for overseeing the day-to-day operations
of the government and for hiring the heads of the various departments.
Budgetary Control
The annual budget serves as the foundation for the City's financial planning and control. All departments
submit budgets to the city manager on or about the last Monday in February. The city manager uses these
requests for developing a proposed budget. The city manager submits her proposed budget to the council at
the first regular council meeting in April. The council is required to hold public hearings on the proposed
budget and generally adopts the budget by ordinance at the first meeting in June. The city manager is
authorized to make budget transfers within a fund for amounts less than $2,500. Council action is required for
transfers between funds, for transfers exceeding $2,500 and for new appropriations. Budget-to-actual
comparisons are provided in this report for each individual governmental fund for which an annual budget has
been adopted.
Factors Affecting Financial Condition
Economy
In the last five years the City experienced fluctuations in taxable sales in a range of -5.8% to +6%. The year
ended at June 30, 2004 saw a decline of 5.8% from the prior year due to the closure of a large retail store in
April 2003. This store represented 25% of taxable sales in Kenai. Fortunately, a new large retailer opened in
December 2003. Taxable sales for the final quarter of FY 2004 were up 22% from the prior year to the
highest level ever recorded in Kenai. Projections for FY 2005 are near the historic high point of $4.2 million in
sales tax revenue. This increase in retail sales is very encouraging and could continue to generate business
expansion in this area.
The primary private sector portions of Kenai's economy are oil and gas, commercial fishing, tourism and retail
sales. The future holds challenges for oil and gas and commercial fishing in the Cook Inlet region. Gas
supplies, critical to liquefied natural gas (LNG) and fertilizer production, am projected to run out in this decade
if new supplies are not made available through discovery or pipelines from other production areas. A gas
pipeline from the North Slope to Cook Inlet would greatly enhance the viability of the industrial complex. The
feasibility of such a pipeline is currently being studied. Commercial fishing has been in decline for several
years due primarily to market forces which have driven prices down to historic lows. However, the catch and
overall value of fish were up in the 2004 season. Wild fish from Alaska are developing a reputation for quality
which could generate better prices. Tourism faltered following the terrorist attacks in 2001, but this industry
continues to expand in Alaska and has a positive outlook. Overall, the projection for the economy of Kenai is
optimistic. Kenai is situated in a beautiful area with abundant land and natural resources, an accommodative
business climate and a stable population base.
Long term financial planning
Unfortunately, the City should not depend on financial support from the State of Alaska for large capital
projects due to challenges that the State faces. Fortunately, the City accumulated sufficient resources to
make its final debt payment in October 2004 and therefore has capacity to issue new debt if approved by the
voters. Fund balance increased in FY 2004. The General Fund fund balance is over $9 million which
represents more than one year of expenditures. This healthy fund balance provides options for the City and
generates interest income that can be used for operations.
Effective in FY 2004 the State eliminated the revenue sharing, municipal assistance and municipal matching
grant programs. Combined, these programs represented nearly $450,000 or the equivalent of 1.15 mills of
property.' tax. Fortunately a new large retailer has located in the City and other retail stores are expanding, so
sales tax revenue is expected to increase substantially. These new developments have produced optimism
that we will see sales tax revenues return to previous levels or higher. The property tax rate was decreased
for FY 2005 by .5 mills to 4.5. One of the larger financial challenges facing the City is our contribution to the
· Public Employees Retirement System (PERS). Our rate is expected to increase at 5% per year or over
$200,000 annually for the next several years. The rate increase is driven by the large liability incurred by the
PERS when actuarial assumptions were changed along with poor investment returns and health insurance
cost increases.
The City is actively pursuing economic development opportunities and is preparing an economic development
strategic plan. The long-term financial outlook is positive.
Cash management policies and practices
The City utilizes a central treasury to aggregate cash from all funds for cash management and investment
purposes. Interest income on investments is allocated to participating funds based on average equity
balances.
The City Code of Ordinances authorizes investment in obligations of the U. S. Treasury, its agencies and
instrumentalities, repurchase agreements, fully collateralized certificates of deposit, money market mutual
funds and the Alaska Municipal League Investment Pool, Inc. The City Code of Ordinances also places
limitations on maturity of investments.
Risk Management
The City's risk management program is designed to protect against accidental losses that would significantly
affect personnel, property, or City finances. The City purchases commercial general liability and property
insurance through the Alaska Public Entities Insurance Pool. The City risk management plan includes
employee training to reduce employee injuries and claims.
Pensio~ and Other Postemployment Benefits
The City provides pension benefits for all eligible employees through the State of Alaska Public Employees
Retirement System (PERS). The City has no obligations in connection with employee benefits offered though
this plan beyond its annual required payment to the pension plan.
Award
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Kenai for its comprehensive
annual financial report for the fiscal year ended June 30, 2003. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized comprehensive annual
financial report. This report must satisfy both generally accepted accounting principles and applicable legal
requirements. A Certificate of Achievement is valid for a period of one year only.
Acknowledgment
The preparation of this Comprehensive Annual Financial Report in a timely manner was accomplished with
the efficient and dedicated service of the entire staff of the Finance Department. We would like to especially
thank Robin Feltman, Accountant, for her contribution. This report was again challenging to prepare due to
the requirements of GASB Statement 34. Due credit should also be given to the City Council for their efforts
in planning and conducting the financial operations of the City in a responsible manner.
Respectfully submitted,
~l~l;nag~er
Lawrence A. Se~r~en~s, CPA
Finance Director
Certificate of
Achievement
for Excellence
~n F~nanc~al
Reporting
Presented to
City of Kenai,
Alaska
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2003
A Certificate of Achievement for Excellence in'Financial
Reporting is presented by the Government Fir~.nce Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
Executive Director
City of Kenai
Organization Chart
CITIZENS
COMMISSIONS
Airport
Harbor
Parks and Recreation
Library
Planning and Zoning
CITY CLERK
CITY COUNCIL
BOARDS, COUNCILS
AND COMMITTEES
Council on Aging
Beautification Comm.
Personnel Arbitration
Board
CITY ATTORNEY
FINANCE
PARKS & REC.
PUBLIC WORKS
CITY MANAGER
FIRE
POLICE
I
LIBRARY
SENIOR CENTER ....
AIRPORT
CITY OF KENAI, ALASKA
ORGANIZATION AND PRINCIPAL CITY OFFICIALS
The City of Kenai was founded in 1791. It is located south of Anchorage on
Cook Inlet in the Central Kenai Peninsula. The City is 161 highway miles from
Anchorage. By air, Kenai is three hours from Seattle and thirty minutes from
Anchorage.
Kenai was the site of the first major oil strike in 1957 and has served as a center
for exploration and production since that time. Commercial fishing and
processing contribute to the economy.
Kenai adopted the Council Manager form of government in 1963 and has been
operating under this form since that time.
The City Council, together with appointed City officials, meets the first and third
Wednesday of each month in the City Administration Building for regular Council
sessions. In addition, numerous special meetings and work sessions are
scheduled throughout the year. The Council, which consists of the Mayor and
six council members, is selected at large and on a non-partisan basis. Annual
elections are held in October. The terms of offiCe are three years but are
overlapping so that the City is provided with a continuity of knowledge in City
business and legislative matters.
City Council
Term Ends
Mayor John J. Williams 2004
Council Members
Joe Moore 2004
James C. Bookey III 2004
Blaine Gilman 2005
Linda Swarner 2005
Rick Ross 2006
Pat Porter 2006
Ci.ty Administration
City Manager
Finance Director
City Clerk
City Attorney
Police Chief
Fire Chief
Public Works Manager
Public Works Manager
Librarian
Parks & Recreation Director
Airport Manager
Senior Center Project Director
Linda L. Snow
Lawrence A. Semmens
Carol L. Freas
Cary R. Graves
Charles Kopp
Scott Walden ·
Keith Kornelis
Jack La Shot
Ewa Jankowska
Robert Frates
Rebecca Cronkhite
Rachael Craig
AUDITOR REPORT
MIKUNDA, COTTRELL & CO.
A Professional Corporation
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
215 Fidalgo, Suite 206 · Kenai, Alaska 99611
(907) 283-3484, Fax (907) 283-5842
Independent! Auditor's Report
ltonorablc Mayor and
Members ol'lhe (;'it)' Council
('itx' of Kcnai. Alaska
\Ve hax'e audited the accompanyin,g financial statements of the gox'ernmental actix'itics, the business-ty'pe
actix'ities, each major fund and the agkare~ate remainin,, fund information of the City of Kcnai Alaska.
as of and tbr the 3'ear ended June 30. 2004. which collcctix'cly comprise the City's basic 'financial
statements as listed in the table of contents. These financial statements arc thc responsibility of thc City'
of Kenai's management. Our responsibility is to express opinions on these financial statements based on
our audit.
We conducted our audit in accordance with auditin,,= standards ._aencrally accepted in the [~.lnited States of
America and the standards applicable to financial audits contained in Go~'ern,~e~t .4tlditin,a Standards.
issued by the Comptroller General of the United States. Those standards require that u.e plan and
perlbrm thc audit to obtain reasonable assurance about whether the financial statements arc flee of
material misstatement. An audit includes examining, on a test basis, evidence supportin{, the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and si,,nificant~ estimates made by. ma~agement, as well as ex'aluating the ox'erall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present lhirly, in all material respects, thc
respectix'e financial position of the governmental activities, the business-type activities, each major fund.
and the a=~.~e=ate'~,,,, '-,,' · remaining fund intbrmation of the City of Kenai. Alaska. as ol'June 30. -"004. and the
respective changes in financial position and cash flows, xYherc applicable, thereof and the respective
budgetary.' comparison tbr the General Fund. Water and Scv,'cr Special Rcx'enue Fund and Airport l.and
System Special Revenue Fund lbr the y,ear then ended in conforn~ity x¥ith accounting principles
generally accepted in thc United States of America..
In accordance ~'ith (_h~'ernn~en! Auditing Strmd~.,'d,¥ xvc have also issued our report dated Otto)bet 15.
2004 on ot~r consideratio~ of the ('ity's internal control ox'ct financial reporting, and our tests of its
compliance x¥ith certain provisions of laxvs, regulations, colllracts and grants. 'l'hat report is an integral
part of an audit pertbrmed in accordance with (;o~'e;';?ment .4ztdiling ,q'l~t;~tfit;'d.¥ and should be read in
conjunction with this report in considering the results of our audit.
[RSM McGladrey Network
/in Inflelxc~ently Owned Member
Offices: Anchoraae. Kenai & Seward
Honorable Mayor and
Members of ~hc City Council
City of Kenai. Alaska
The managenlent's discussion and analysis, as identified in lhe table of contents, is not a required part of
the basic financial statemenls but is supplementary info"marion required b)' accounting principles
generally accepted in the United States of America. We hax'e applied certain limited procedures, x~'hich
consisted principally of inquiries of naanagement regardin,, the methods oi' measurement and
presentation of the required supplementary information, ltou,'ever, v~.'e did not audit the inlbrmation and
express no opinion on it.
Our audit was conducted lbr the purpose of lbrming opinions on the financial statements that
collectively comprise the City of Kenai's basic financial statements. The introductory section, tl~e
Airport Land Sales Permancn! Fund statement of revenues, expenditures and chances in fi~nd balance-
budget and actual, combining and individual nonma, ior fund statements and statistical section as listed in
the table o~'contcnts, are presented lbr purposes of additional analysis and are not a required part of thc
basic financial statements. Thc Airport Land Sales Permanent Fund statement of revenues, expenditures
and changes in fund balance - budget and actual, the combining and individual nonmajor fund
statements have been subjected to the auditing procedures applied in thc audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial
statements taken as a whole. The introductory section and thc statistical section, as identified in the table
of contents, have not been subiected, to the auditino, procedures applied in the audit of the basic financial
statements and. accordingly, x.~'e express no opinion on them.
October 15. '~004
10
MANAGEMENT'S DISCUSSION AND ANALYSIS
Management's Discussion and Analysis
As management of the City of Kenai, we offer readers of our financial statements this narrative
overview and analysis of the financial activities of the City of Kenai for the fiscal year ended
June 30, 2004. We encourage readers to consider the information presented here in conjunction
with additional information that we have furnished in our letter of transmittal.
Financial Highlights
The assets of the City of Kenai exceeded its liabilities at June 30, 2004 by $140,342,104.
Of this amount, unrestricted net assets of $19,644,564 may be used to meet the
government's ongoing obligations to citizens and creditors. A significant portion of this
legally ~unrestricted amount has been designated for specific purposes.
The City's total net assets decreased by $1,007,705. Governmental Funds decreased by
$756,044 and business type activities decreased by $251,661.
As of the close of the current fiscal year, the City's governmental funds reported
combined ending fund balances of $30,900,386 an increase of $560,912 from the prior
year. The fund balances of the two permanent funds, which cannot be spent, account for
$13.6 million of total fund balance. About $5.3 million of fund balance is reserved or
designated. The remaining $12 million is available for spending.
At the end of the current fiscal year, fund balance for the General Fund was $9,340,388.
Of this amount $6,492,953 was unreserved, undesignated and available for spending.
The City's total outstanding debt decreased $150,000 to a year-end balance of $150,000.
The City also has a long-term liability for contaminated soils remediation of $1.4 million.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Kenai's basic
financial statements. The City of Kenai's basic financial statements are compriSed of three
components' 1) government-wide financial statements, 2) fund financial statements, and 3) notes
to the financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves. The basic financial statements include two kinds of
statements that present different views of the City's activities:
Government-wide financial statements provide both short-term and long-term
information about the City's overall financial condition in a summary format.
Fund financial statements focus on individual parts of the City, reporting the
City's operations in more detail than the government-wide statements. The form
of fund financial statements presented herein is only slightly changed from the
reporting model that we have used for many years.
Government-wide financial statements.
The government-wide financial statements are designed to provide readers with a broad
overview of the City of Kenai's finances in a manner similar to a business enterprise. The
statement of net assets presents information on all of the City's assets and liabilities. Net assets-
the difference between assets and liabilities - is one way to measure the City's financial position.
Over time, increases or decreases in net assets may serve as a useful indicator of whether the
financial position of the City is improving or deteriorating. There are other non-financial factors,
such as the condition of facilities, roads and other infrastructure that should be considered in
evaluation of overall financial condition.
'The statement of activities presents information showing how government's net assets changed
during the most recent fiscal year. All changes in net assets are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods.
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (businesstype activities). The governmental activities of the City of Kenai
include general government, public safety, public works, parks and recreation and culture, dock,
airport, water and sewer and social services. The business-type activities of the City include the
airport terminal and the congregate housing facility.
Fund financial statements.
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The city, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. All of the funds of the City of Kenai can be divided into two categories:
governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statemems focus on near term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government's near term financing requirements. Because the focus of
governmemal funds is narrower than that of the government-wide financial statements, it is
useful to compare the information presented for governmental funds with similar information
presented for governmental activities in the government-wide financial statements. By doing so,
readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between the two. Four of the City's governmental funds are considered major funds.
12
Information is presented separately in the governmental fund balance sheet and in the
governmemal fund statement of revenues, expenditures, and changes in fund balances for the
major funds including: the General Fund; two special revenue funds: the Water and Sewer Fund
and the Airport Land System Fund; and the Airport Land Trust Fund, which is a permanent fund.
Individual fund data for each of the non-major governmental funds is provided in the form of
combining statements elsewhere in this report.
A budgetary comparison statement has been provided for the general fund to demonstrate
compliance with the Fiscal Year (FY) 2004 budget.
ProPrietary funds.
The .City of Kenai maintains two different types of proprietary funds: enterprise and internal
service. Enterprise fimds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to account
for the Airport Terminal and the Congregate Housing Facility. Information for these two funds
is presented in the proprietary statement of net assets and the proprietary statement of revenues,
expense and changes in fund net assets. Intemal service funds are used to accumulate and
allocate costs internally among the City's various functions. The City of Kenai used an imemal
service fund to account for the purchase of heavy equipment that is primarily used by the
General Fund. Because these services predominantly benefit governmental rather than business
type functions, they have been included within governmental activities in the government-wide
financial statements but are presented separately in the proprietary fund financial statements.
Notes to the financial statements.
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements.
Other information.
In addition to the basic financial statements and accompanying notes, this report also presents
certain other supplementary information. The combining statements referred to earlier in
connection with non-major funds are presented immediately after the basic financial statements.
Also included are budget comparisons for governmental funds other than the General Fund.
Government-wide Financial Analysis.
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. At June 30, 2004, the City's assets exceeded liabilities by $140,342,104. By far the
largest portion of the City's net assets reflects its investment in capital assets, less any related
debt used to acquire those assets that is still outstanding. Capital assets are used to provide
services to citizens and they are not available for future spending. Although the investment in
capital assets is reported net of related debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used
to liquidate these liabilities.
The following table provides a summary of the City's net assets'
Net Assets
(in thousands)
Governmental Activities
' 2004 2003
Currentand otherassets "$' 33,277 $ 32,895
Capital Assets 101,564 102,748
Total Assets 134,841 135,643
Long-term liabilities outstanding
Other liabilities
Total liabilities
1,4O0 1,700
1 ,O80 826
2,480 2,526
Business-Type Activities
2004 2003
$ 2,632 $ 2,718
,, 5,396 , 5,587
8,028 8,305
47 72
47 72
Net assets
Invested in capital assets
net of related debt 101,414 102,448 5,396 5,587
Restricted 13,887 13,812 - -
Unrestricted 17,060 16,857 2,585 2,646
Total netassets $132,361 $ 133,117 $ 7,981 $ 8,233
Governmental activities.
Total
2004 2003
35,909 $ 35,613
106,960 108,335
142,869 143,948
1,4oo 1,7oo
1,127 898
2,527 2,598
106,810 108,035
13,887 13,812
19,645 19,503
$140,34~2 $141,350
Governmental activities decreased the City's net assets by $756,044. Key elements of this
decrease are:
Both revenue and expenses were down from the prior year. Property tax was up due to a
mill'rate increase, but sales tax was down due to effects of a large retail store closing.
Expenses were down due to budget cuts across the board in response to anticipated
revenue declines. Overall, the decrease in net assets was half of the prior year decrease.
The City does not budget to cover all expenses including depreciation. In order to
replace capital assets in the future the City will rely on external financing sources, such as
debt or grants.
Business-type activities.
Business-type activities reduced the net assets of the City by $251,661. Key elements of this
decrease are'
Both of the enterprise funds had negative net income again this year. The Congregate
Housing Facility rates are not set high enough to cover the cost of depreciation on the
facility which was built primarily with grant funds. Interest revenue for both funds is
down significantly. The airport terminal revenues are up and expenses are down about
10% each from last year, but the facility still does not generate sufficient income to cover
depreciation expense.
Changes in Net Assets.
The City's total revenues and expenses for governmental and business-type activities are
reflected in the following chart'
Changes in Net Assets
(in thousands)
Governmental Activities Business-Type Activities
2004 2003 ' 2004 2003 ..... 2004
Revenues:
Program revenues:
Charges forservices $ 2,803 $ 3,073 $
Operating grants and
contributions 802 793
Capital grants and
contributions 1,011 794
General revenues:
Property taxes 2,027 1,425
Sales taxes 3,791 3,954
Other 409 988
Total revenues 10,843 11,027
528
,.
31
.,
,.
25
584
$ 526 $
85
611
Total
3,331 $
802
1,042
2,027
3,791
434
,
11,427
2003
3,599
793
794
1,425
3,954
1,073
11,638
Expenses:
General government 963 1,114
Public safety 3,116 3,193
Public works 1,929 2,088
Parks, recreation, and cultural 1,248 1,447
Water and sewer services 1,774 1,945
Airport 2,195 2,085
Interest on long-term debt 12 20
Dock - 190
Social welfare services 417 453
.Airport Terminal - -
Senior Housing - -
Total expenses 11,654 12,535
453
328
781
- 963 1,114
- 3,116 3,193
- 1,929 2,088
- 1,248 1,447
- 1,774 1,945
- 2,195 2,O85
12 20
- - 190
- 417 453
5O3 453 5O3
298 328 298
801 12,435 13,336
Decreases in net assets before
transfers (811 ) (1,508)
(197)
(190) (1,008) (1,698)
Transfers 55 70
(55)
(70)
Decrease in net assets
(756) (1,438)
(252)
(260) (1,008) (1,698)
Net Assets beginning
133,117 134,555
8,233
8,493
141,350 143,048
Net Assets ending
$~1.3. r2,.36...,!.. $ 133,117
7,981 $
8,233
$ 140,342 $14!,350
15
Financial Analysis of the City's Funds
The City of Kenai uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
Governmental Funds.
The purpose of the City's governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. Such information is useful in assessing the city's
financing requirements. In particular, unreserved fund balance may serve as a useful measure of
a government's net resources available for spending at the end of the fiscal year. The primary
sources of revenue for the governmental funds are:
Property tax $ 2,012,922
Sales tax $ 3,790,644
Water/Sewer charges $1,429,375
Interest $ 323,090
Tax revenues support general fund operations exclusively and represent 48% of governmental
funds revenue. The mil rate for property tax was increased from 3.5 to 5.0 for FY 2004. Other
funds rely heavily on charges for services and interest revenue. Interest revenue in the
governmental funds is down significantly from the prior year due mostly to low interest rates for
part of the year followed by higher rates near year-end. As rates increase, the value of the
portfolio declines, requiring a market value adjustment that reduced interest revenue by
$293,000. Capital projects funds and the senior services related funds are largely financed by
grants from the federal, state and borough govemments.
Proprietary funds.
The City of Kenai maintains two different types of proprietary funds. Enterprise funds are used
to report the same functions presented as business-type activities in the government-wide
financial statements. The Airport Terminal and Congregate Housing funds are enterprise funds
which are combined in a single aggregated presentation in the proprietary fund financial
statements. Internal service funds are used to accumulate and allocate costs among the City's
various functions. The City of Kenai has one internal service fund the purpose of which is to
account for the purchase of equipment costing more that $50,000. The Equipment Replacemem
Fund charges the primary user department in the General Fund such that the General Fund
reimburses the Equipment Replacement Fund over the useful life of the asset. Because these
services predominantly benefit governmental rather than business type functions, they have been
included within governmental activities in the government-wide financial statements but are
presented in a single column in the proprietary fund financial statements.
General Fund Budgetary Highlights
The General Fund appropriations budget was amended by the City Council during the year by
$124,933. The budget increases were due to grants received during the year including a $51,000
pass through grant to the Boy's and Girl's Club.
Actual revenues were $931,452 higher than the final budget. About $780,000 is from taxes, due
mostly to sales taxes exceeding revenue projections. A new large store began operation in
December, greatly improving sales tax revenue. Ambulance fees are up about $80,000 over
budget due to improved collection and rate increases. The balance of the revenue increase
compared to budget was spread out in small amounts across several categories of revenue.
The actual expenditures were $794,813 less than budgeted. It should be noted that
encumbrances at year-end totaled $215,446 The City made a concerted effort to manage
expenditures during the year and typically does not spend the entire authorized appropriation.
Capital Assets and Debt Administration
Capital assets.
At June 30, 2004 the City's capital assets had a total net book value of $106,960,389.
Governmental activities totaled $101,564,024 and business-type activities totaled $5,396,365.
Additional information on the City's capital assets can be found in the notes to the financial
statements at 'Section III. Detailed Notes on All Funds' B. Capital Assets.
Debt administration.
The City had outstanding debt of $150,000 at year-end, there are sufficient funds accumulated in
the debt service fund to pay off this debt. Additionally there is a long-term liability for
contaminated soils remediation of $1,400,000. Additional information on the City's long-term
debt can be found in the notes to the financial statements at 'Section III. Detailed Notes on All
Funds' E. Changes in Long-Term Debt.
Requests for information.
This financial report is designed to provide a general overview of the City of Kenai's finances
for all those with an interest in the govemment's finances. Questions concerning any of the
information provided in this report or requests for additional information should be addressed to
the Finance Director, City of Kenai, 210 Fidalgo Avenue, Kenai, Alaska 99611.
17
BASIC FINANCIAL STATEMENTS
CITY OF KENAI, ALASKA
STATEMENT OF NET ASSETS
June 30, 2004
Governmental
Activities
Business-type
Activities
Total
ASSETS
Equity in central treasury (cash and cash equivalents)
Receivables (net of allowances for
uncollectibles)
Other assets
Property and equipment in service
Accumulated depreciation
Construction in progress
Total assets
LIABILITIES
Accounts payable
Compensated absences
Deferred revenue
Other liabilities
Long-term liabilities:
Due within one year
Due in more than one year
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for:
Airport Land Sale Permanent Fund
General Government Land Sale Permanent Fund
Unrestricted
Total net assets
30,684,823 $
2,576,911
14,996
130,844,909
(39,369,375)
10,088,490
134,840,754 $
i rln'rr
186,137
491,993
148,110
103,263
150,000
1,400,000
2,479,503
101,414,024
11,624,362
2,262,789
17,060,076
132,,361,251, $
2,610,992
21,156
.
9,520,236
(4,123,871)
.
8,028,513
12,724
30,335
4,601
.
47,660
5,396,365
2,584,488
7,980,853
33,295,815
2,598,067
14,996
140,365,145
(43,493,246)
10,088,490
142,869,267
198,861
522,328
152,711
103,263
150,000
1,400,00O
2,527,163
106,810,389
11,624,362
2,262,789
19,644,564
140,342,104
See Accompanying Notes to Financial Statements
3.9
o o
$ .c: .~_ $
t/) .-
2O
·
o
o
.-,.,
o
o
o
ASSETS AND OTHER DEBITS
Equity in central treasury (cash and cash equivalents)
Receivables (net of allowances for
uncollectibles)
Due from other funds
Other assets
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
_Accounts payable
Due to other funds
Deferred revenue
Other liabilities
Total liabilities
Fund balances:
Reserved for:
Encumbrances
Capital improvements
Land sale permanent funds
Inventory
Unreserved:
Designated:
General fund
Special revenue funds
Debt service fund
Capital projects funds
Undesignated:
General fund
Special revenue funds
Total fund balances
Total liabilities and fund balances
CITY OF KENAI, ALASKA
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2004
Total
Water and Airport Land Airport Other Governmental
General Sewer System Land Sales Governmental Funds
$ 8,066,881 $ 628,914 $ 5,619,695
$ 11,439,122
1,693,926 210,536 48,785 185,240
82,635 - - -
14,996 - - -
$ 9,858,438 $ 839,450, $ 5,668,480
$ 11,624,3.62
77,103 $ 24,868 $ 58,357
. . .
406,048 79,763 23,712
34,899 48,245 13,506
_
185,240
.
3,822,894
438,424
.
$ 4,261,318
$ 25,809
82,635
284,864
6,613
29,577,506
2,576,911
82,635
14,996
$ 32,252,048
186,137
82,635
979,627
103,263
518,050 152,876 95,575 185,240 399,921 1,351,662
2,149,562
_
10,647
160,944
1,404,840
135,404
215,446 26,082 33,606
950,746 - -
. . -
14,996 - -
11,439,122
.
1,666,247 - -
- 20,385 893,280
. .
. .
6,492,953 - -
- 640,107 4,646,019
275,134
950,746
13,588,684
14,996
1,666,247
924,312
160,944
1,404,840
6,492,953
5,421,530
9,340,388 686,574 5,572,905 11,439,122 3,861,397 30,900,386
$ 4,261,,3,18
$ 9,858,43,8, $ 839,450, $, 5,668,480 $ 11,624,362
Amounts reported for governmental activities in the
statement of net assets are different because:
Capital assets used in governmental activities are not
financial resources and are not reported in the funds.
Other long-term assets are not available to pay for current
period expenditures and, therefore, are deferred in the funds.
Some liabilities, including bonds payable and
compensated absences are not payable in the current period
so they are not reported in the funds.
Internal service funds are used by management to charge
the cost of certain activities to individual funds. The assets
and liabilities of the internal service fund are included in
governmental activities in the statement of net assets
Net assets of governmental activities
100,713,331
831,517
(2,041,993)
1,958,010
$ 132,361,251
See Accompanying Notes to Financial Statements
CITY OF KENAI, ALASKA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2004
Revenues:
Taxes
Intergovernmental revenues
Charges for services
Interest revenue
Miscellaneous revenues
General
Water and Airport Land Airpo~
Sewer System Land Sales
,,
Total revenues
Expenditures:
Current:
General government
Public safety
Public works
Parks, recreation, and cultural
Water and sewer services
Airport
Social welfare services
Capital Outlay
Debt service
5,838,820 $ - $ . $ .
555,645 - 11,870 -
1,546,524 1,429,375 93,599 -
113,986 5,195 169,100 23,009
357,330 34,134 325,328 271,840
Other
Governmental
Total expenditures
1,071,663
52,887
11,800
174,549
Excess (Deficiency) of Revenues
Over Expenditures
Total
Governmental
Funds
,
Other financing sources and (uses):
Transfers in
Transfers out
5,838,82O
1,639,178
3,122,385
323,090
1,163,181
Total other financing sources and (uses)
8,412,305 1,468,704 599,897 294 849 1,310,899 12,086,654
Net changes in fund balance
Fund balances- July 1
Fund balances - June 30
1,378,300
3,419,295
1,471,479
1,112,203
.
.
.
.
.
1,124,781 -
- 1,471,865
-
-
- .
See Accompanying Notes to Financial Statements
7,381,277 1,124,781 1,471,865
386,031
1,054,627
161,962
1,602,620
1,378,300
3,419,295
1,471,479
1,112,203
1,124,781
1,471,865
386,031
1,054,627
161,962
11,580,543
1,031,028 343,923 (871,968) 294,849 (291,721) 506,111
136,660
(29,934)
12,770 55,O69
- (33,007)
..... (23,569)
65,323
(128,511)
106,726 12 770 22,062 (23,569) (63,188)
269,822
(215,021)
54,801
1,137,754 356,693 (849,906) 271,280 (354,909) 560,912
329,881 ,, 6,422,811
686,574 $ 5,572,905
4,216,306
3,861,397 $
8,202,634
9,340,388 $
11,167,842
11,439,122 $
,,,
30,339,474
30,900,386
22
CITY OF KENAI, ALASKA
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balance of Governmental Funds
To the Statement of Activities
For the Year Ended June 30, 2004
Amounts reported for governmental activities in the statement of activities are different
because:
Net changes in fund balances - total governmental funds
$ 560,912
Governmental funds reported $109,774 of capital outlays as
expenditures, and construction work in progress increased by
$1,022,881. However, in the statement of activities the cost of those
assets is allocated over their estimated lives and reported as
depreciation expenses. Total depreciation expense was $2,380,957.
This is the amount by which depreciation expense exceeded capital
outlays in the current period.
(1,248,302)
Repayment of bond principal is an expenditure in the governmental
funds, but the repayment reduces long-term liabilities in the statement of
net assets.
150,000
Special assessment revenues reported in the governmental funds are
not revenues of the current period using the flow of financial resources
basis.
(33,278)
Land sales reported as revenue in the governmental funds are not
revenues of the current period on a flow of financial resources basis.
Compensated absences reported in the statement of activities do not
require the use of current financial resources and, therefore, are not
reported as expenditures in governmental funds.
(279,824)
53,372
Internal service funds are used by management to charge the cost of
certain activities to individual funds. The net revenue of certain activities
of the internal service fund is reported with governmental activities.
41,076
Change in net assets of governmental activities
See Accompanying Notes to Financial Statements
$ (756,044)
23
CITY OF KENAI, ALASKA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
Revenues:
Taxes:
General property
General sales
Penalty and interest on taxes
Total taxes
Licenses and permits:
Building permits
Animal control licenses and fees
Other
Total licenses and permits
Intergovemmental revenues:
Federal Grants
Kenai Peninsula Borough
State of Alaska shared revenues:
General revenue sharing
Electric utility tax
Fish tax
Liquor licenses
Municipal assistance
State of Alaska grants:
Library grants
Other
Total intergovernmental revenues
Charges for services:
Ambulance fees
Recreation center charges
Multipurpose facility charges
Administrative and service fees
Other
Total charges for services
Fines and forfeits:
Court fines
Library fines
Other forfeitures
Total fines and forfeits
Original Final
Bud.qet Budget
$ 1,970,000$ 1,970,000$
3,060,000 3,060,000
30,000 30,000
5,060,000 5,060,000
Actual
2,012,922
3,790,644
35,254
5,838,820
Variance With
Final Budget
Positive
(Negative)
42,922
730,644
5,254
778,820
50,000 50,000 78,024 28,024
4,800 4,800 7,532 2,732
3,100 3,100 5,625 2,525
57,900 57,900 91,181 33,281
- 45,000 2,320 (42,680)
48,000 48,000 48,000 -
73,500 73,500 151,893 78,393
26,000 26,000 28,468 2,468
75,000 75,000 58,132 (16,868)
23,000 23,000 21,000 (2,000)
153,750 153,750 - (153,750)
- 8,472
- 61,959
399,250 514,681
8,472
237,36O
555,645
175,401
40,964
135,000 135,000 208,686 73,686
- - (2,427) (2,427)
65,000 65,000 81,702 16,702
971,600 971,600 971,600 -
95,200 95,200 104,741 9,541
1,266,800 1,266,800 1,364,302
97,502
80,000 80,000 74,662 (5,338)
15,000 15,000 15,011 11
1,000 1,000 1,368 368
96,00.0.... 96,000 91,041 (4,959)
See Accompanying Notes to Financial Statements
24
CITY OF KENAI, ALASKA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
continued
Miscellaneous revenues:
Interest revenue
Rents and leases
Library donations
Oil and gas royalties
Special assessments
Other
Total miscellaneous revenues
Total revenues
Expenditures:
General government:
Legislative:
Personal services
Supplies
Other services and charges
Total legislative
City clerk:
Personal services
Supplies
Other services and charges
Total city clerk
City attorney:
Personal services
Supplies
Other services and charges
Total city attorney
Original Final
Budaet Budaet
$ 210,000 $ 210,000 $
46,800 46,800
1,500 1,500
10,300 10,300
4,000 4,000
197,965 204,965
470,565 477,565
Actual
Variance With
Final Budget
Positive
{Negative)
113,986 $
36,497
1,791
18,536
107,908
192,598
471,316
,
(96,014)
(10,303)
291
8,236
103,908
(12,367)
(6,249)
7,350,515 7,472,946 8,412,305 939,359
42,113 42,113 42,721 (608)
600 730 534 196
49,692 54,062 43,312 10,750
92,405 96,905 86,567 10,338
73,279 73,279 70,185 3,094
3,619 3,294 2,617 677
18,266 18,591 14,489 4,102
95,164 95,164 87,291 7,873
169,602 169,602 162,523 7,079
1,470 2,396 1,927 469
9,038 10,163 8,986 1,177
180,110 182,161 173,436 8,725
See Accompanying Notes to Financial Statements
25
City manager:
Personal services
Supplies
Other services and charges
Total city manager
Finance:
Personal services
Supplies
Other services and charges
Capital outlays
Total finance
Non-departmental:
Supplies
Other services and charges
Capital outlays
Pass-through grants
Total non-departmental
Planning and zoning:
Personal services
Supplies
Other services and charges
Total planning and zoning
Safety:
Supplies
Other services and charges
Total Safety
Land administration:
Supplies
Other services and charges
Total land administration
Total general government
CITY OF KENAI, ALASKA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
continued
Original Final
Budget Budaet
,,A,,ctual
$ 145,234 $ 145,234 $
800 2,373
6,600 6,327
140,353
2,113
5,913
Variance With
Final Budget
Positive
(Neaative)
4,881
260
414
152,634 153,934 148,379 5,555
326,986 326,986 310,335
11,636 12,216 11,927
20,714 18,134 15,267
54,000 56,000 55,989
16,651
289
2,867
11
413,336 413,336 393,518 19,818
5,212 9,822 7,510 2,312
411,536 366,499 298,549 67,950
2,499 2,499 2,499 -
18,000 69,491 51,491 18,000
437,247 448,311 360,049 88,262
111,700 111,700 101,503 10,197
3,160 4,760 4,093 667
15,946 15,931 12,783 3,148
130,806 132,391 118,379 14,012
43
8,431
1,100 1,100
17,658 17,658
1,057
9,227
18,758 18,758 8,474 10,284
100 100 13 87
5, t00 5,100 2,194 2,906
5,200 5,200 2,207 2,993
1,525,660 1,546,160 1,378,300 167,860
See Accompanying Notes to Financial Statements
Public safety:
Police:
Personal services
..
Supplies
Other services and charges
Capital outlays
Total police
Fire:
Personal services
Supplies
Other services and charges
Capital outlays
Total fire
Communications:
Personal services
Supplies
Other services and charges
Capital outlays
Total communications
Animal control:
Personal services
Supplies
Other services and charges
Total animal control
Total public safety
CITY OF KENAI, ALASKA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
continued
Original Final
Budaet Budaet
$ 1,315,998 $ 1,315,998 $
44,250 52,933
105,493 108,188
- 5,000
Actual
, ,
1,284,862
50,513
93,073
..
1,465,741 1,482,119 1,428,448
Variance With
Final Budget
Positive
(Neqative)
31,136
2,420
15,115
5,000
53,671
1,252,583 1,252,583 1,212,517 40,066
25,580 75,885 21,187 54,698
109,306 109,001 97,051 11,950
- 5,000 - 5,000
1,387,469 1,442,469 1,330,755 111,714
462,973 462,973 421,780 41,193
15,003 19,203 16,503 2,700
36,197 31,997 28,847 3,150
- 5,000 - 5,000
514,173 519,173 467,130 52,043
131,921 131,921 123,147 8,774
8,400 8,295 7,448 847
64,733 64,838 62,367 2,471
205,054 205,054 192,962 12,092
3,572,437 3,648,815 3,419,295 229,520
See Accompanying Notes to Financial Statements
2?
CITY OF KENAI, ALASKA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
continued
Public works:
Public works administration:
Personal services
Supplies
Other services and charges
Total public works administration
Shop:
Personal services
Supplies
Other services and charges
Total shop
Streets:
Personal services
Supplies
Other services and charges
Total streets
Dock:
Personal services
Supplies
Other services and charges
Total dock
Buildings:
Personal services
Supplies
Other services and charges
Capital outlays
Total buildings
Street lighting:
Supplies
Other services and charges
Total street lighting
Original Final
Budget Budget
Actual
$ 253,483 $ 253,483 $ 250,298
6,124 6,156 3,697
11,115 11,083 6,796
Variance With
Final Budget
Positive
(Negative)
3,185
2,459
4,287
270,722 270,722 260,791 9,931
213,089 213,089 198,130 14,959
198,519 203,519 167,588 35,931
87,110 82,110 61,622 20,488
498,718 498,718 427,340 71,378
402,817 402,817 373,944 28,873
78,622 78,452 21,712 56,740
55,078 55,248 42,359 12,889
536,517 536,517 438,015 98,502
48,836 48,836 43,125 5,711
30,331 30,331 20,099 10,232
28,550 28,550 19,431 9,119
107,717 107,717 82,655 25,062
141,440 141,440 127,490 13,950
28,600 28,820 18,569 10,251
70,178 72,358 42,486 29,872
15,000 12,600 1,712 10,888
255,218 255,218 190,257 64,961
7,000 7,000 -
75,252 80,652 72,421
7,000
8,231
82,252 87,652 72,421 15,231
Total public works
1,751,144 1,756,544 1,471,479 285,065
See Accompanying Notes to Financial Statements
2.8
CITY OF KENAI, ALASKA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
continued
Parks, recreation, and cultural:
Library:
Personal services
Supplies
Other services and charges
Capital outlays
Total library
Visitors center: Supplies
Other services and charges
Total visitors center
Recreation:
Personal services
Supplies
Other services and charges
Total recreation
Parks:
Personal services
Supplies
Other services and charges
Total parks
Beautification:
Personal services
Supplies
Other services and charges
Total beautification
Total parks, recreation, and cultural
Total expenditures
Original Final
Budget Budqet
$ 295,755 $ .295,755 $
8,705 9,770
107,864 115,271
- 54,000
Actual
285,576
8,014
99,920
53,770
Variance With
Final Budget
Positive
CNeqative)
10,179
1,756
15,351
230
412,324 474,796 447,280 27,516
2,000 2,000 640 1,360
101,300 112,134 107,116 5,018
103,300 114,134 107,756 6,378
59,057 59,057 74,824 (15,767)
2,200 6,230 6,203 27
274,952 271,602 227,821 43,781
336,209 336,889 308,848 28,041
112,324 112,324 96,604 15,720
23,586 27,586 24,946 2,640
62,739 62,448 54,872 7,576
198,649 202,358 176,422 25,936
34,079 34,079 29,003 5,076
32,264 32,264 31,273 991
28,925 27,885 11,621 16,264
95,268 94,228 71,897 22,331
1,145,750 1,222,405 1,112,203 110,202
7,994,991 8,173,924 7,381,277 792,647
See Accompanying Notes to Financial Statements
29
CITY OF KENAI, ALASKA
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
continued
Original Final
Bud.qet Bud;et
A, ctual
Variance With
Final Budget
Positive
(Neaative)
Excess of revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
Fund balance - July I
Fund balance- June 30
$ (644,476) $ (700,978) $
75,200 75,200
(86,100) (32,100)
(10,900) 43,100
$ (655,376) $ (657,878)
1,031,028 $ 1,732,006
136,660 61,460
(29,934) $,, 2,166
106,726 63,626
,,
1,137,754 $ 1,795,632
8,202,634
9,340,388
See Accompanying Notes to Financial Statements
3O
CITY OF KENAI, ALASKA
WATER AND SEWER SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
Revenues:
Charges for services:
Residential water
Commercial water
Residential sewer
Commercial sewer
Hook-up fees
Other
Total charges for services
Miscellaneous revenues:
Interest
Special assessments
Other
Total miscellaneous revenues
Total revenues
Expenditures - water and sewer services:
Water:
Personal services
Supplies
Other services and charges
Capital outlays
Original Final
Budget Budget
$ 258,500 $ 258,500 $
121,000 121,000
722,400 722,400
308,000 308,000
3,500 3,500
18,000 18,000
Actual
257,915
115,428
726,007
304,739
2,300
22,986
Variance With
Final Budget
Positive
CNe~ative)
(585)
(5,572)
3,607
(3,261)
(1,200)
4,986
1,431,400 1,431,400 1,429,375 (2,025)
28,000 28,000 5,195 (22,805)
30,000 30,000 29,828 (172)
2,500 2,500 4,306 1,806
60,500 60,500 39,329 (21,171)
1,491,900 1,491,900 ~ 1,468,704 (23,196)
115,669 115,669 108,499 7,170
56,800 65,694 37,474 28,220
175,000 166,616 122,747 43,869
61,000 61,000 - 61,000
408,469 408,979 268,720 140,259
Expenditures chargeable from
other funds 74,100 74,100 74,100 -
Total water 482,569 483,079 342,820 140,259
Sewer:
Personal services 116,593 116,593 109,673 6,920
Supplies 20,050 26,850 22,041 4,809
Other services and charges 84,030 69,880 22,834 47,046
220,673 213,323 154,548 58,775
Expenditures chargeable from
other funds 53,800 53,800 53,800
Total sewer 274,473 267,123 208,348
58,775
See Accompanying Notes to Financial Statements
WATER AND SEWER SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
continued
Sewer treatment plant:
Personal services
Supplies
Other services and charges
Capital outlays
Expenditures charageable from
other funds
Total sewer treatment plant
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Net changes in fund balance
Fund balance, July I
Fund balance, June 30
Original Final
Budget Bud_~et
$ 221,325 $ 221,325 $
75,500 78,405
252,820 245,270
- 30,000
Actual
227,771
69,539
181,433
7O
Variance With
Final Budget
Positive
(Neqative)
(6,446)
8,866
63,837
29,930
549,645 575,000 478,813 96,187
94,800 94,800 94,800
644,445 669,800 573,613 96,187
1,401,487 1,420,002 1,124,781 295,221
90,413 71,898 343,923 272,025
12,770
356,693
329,881
$ 90.413 $ 71.898
$ 686.574
12,770
$ 284.795
See Accompanying Notes to Financial Statements
32
CITY OF KENAI, ALASKA
AIRPORT LAND SYSTEM SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
Revenues:
Intergovernmental revenue-
State grant
Miscellaneous revenues:
Rents and leases, including
penalty and interest
Landing fees
Fish hauling rents
Interest revenue
Other
'Total. miscellaneous revenues
Total revenues
Expenditures - airport:
Maintenance and Operation:
Personal services
Supplies
Other services and charges
Expenditures chargeable from
other funds
Total maintenance and operation
Original Final
Bud_aet Budqet
$ 5,000 $ 5,000$
Actual
11,870
Variance With
Final Budget
Positive
(Neqative)
$ 6,870
392,000 392,000 302,976 (89,024)
86,000 86,000 93,599 7,599
- - 2,000 2,000
371,000 371,000 169,100 (201,900)
17,500 17,500 20,352 2,852
866,500 866,500 588,027 (278,473)
871,500 871,500 599,897 (27 !,603)
185,100 185,100 181,129 3,971
143,300 148,569 120,772 27,797
303,,10,0, 308,,852 229,513 79,339
631,500 642,521 531,414 111,107
632,800 632,800 632,800
1,264,300 1,275,321 1,164,214
,,
111,107
See Accompanying Notes to Financial Statements
33
CITY OF KENAI, ALASKA
AIRPORT LAND SYSTEM SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
continued
Administration'
Personal services
Supplies
Other services and charges
Expenditures chargeable from
other funds
Total land administration
Land:
Personal services
Supplies
Other services and charges
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
Fund balance- July 1
Fund balance- June 30
Original Final
Budget Budget
$ 121,068 $ 121,068 $
4,790 5,094
41,245 42,251
Actual
111,967
3,413
27,492
Variance With
Final Budget
Positive
(Ne;ative)
9,101
1,681
14,759
167,103 168,413 142,872 25,541
50,400 50,400 50,400
217,503 218,813 193,272
25,541
32,898 32,898 30,140 2,758
3,500 3,350 771 2,579
95,200 113,186 83,468 29,718
131,598 149,434 114,379 35,055
1,613,401 1,643,568 1,471,865 171,703
(741,901) (772,068) (871,968) (99,900)
25,967
.,
25,967
55,069
(33,007)
22,062
(849,906)
6,422,811
5,572,905
(715,934/
25,967
(33,007)
, , (7,040)
$ (779,108)
29,102
..
29,102
$. , (70,798)
See Accompanying Notes to Financial Statements
34
CITY OF KENAI, ALASKA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2004
ASSETS
Current assets:
Equity in central treasury
Accounts receivable
Total current assets
Property and equipment in service, at cost:
Land
Buildings
Equipment
Improvements other than buildings
Total property and equipment in service
Less accumulated depreciation
Net property and equipment in service
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Other liabilities
Deferred revenues
Total current liabilities
NET ASSETS
Invested in capital assets
Unrestricted
Total Net Assets
Business-type activities - Enterprise Funds,
Airport. Congregate
Terminal Housinq Total
2,086,562 $ 524,430 $
21,156 -
2,610,992
21,156
Governmental
Activities -
Internal Service
Fund
,,
Equipment
Replacement
$ 1,107,317
.
2,107,718 524,430 2,632,148 1,107,317
6,043 274,500 280,543 -
3,425,007 4,915,806 8,340,813 -
221,504 - 221,504 1,008,631
677,3.7.6. - 677,376 -
4,329,930 5,190,306 9,520,236 1,008,631
(2,646,963) (1,476,90..8) (4,123,871) (157,938)
1,682,967 3,713,398 5,396,365 850,693
$ 3,790,685 $ 4,237,828
$ 8,028,513
10,265 $ 2,459
8,364 21,971
4,601 -
12,724
30,335
4,601
23,230 24,430 47,660
$ 1,958,010
1,682,967 3,713,398 5,396,365 850,693
2,084,488 500,000 2,584,488 1,107,317
$ 7,980,853
3,767,455 $ 4,2!3,398
1,958,010
See Accompanying Notes to Financial Statements
35
CITY OF KENAI, ALASKA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2004
Operating revenues:
Rents and leases
Commissions
Vehicle parking fees
Other revenue
Total operating revenues
Operating expenses:
Personal services
Supplies
Utilities
Repair and maintenance
Insurance
Depreciation
Manager's fee
Miscellaneous
Expenses chargeable from other funds
Total operating expenses
Operating income (loss)
Nonoperating Revenues:
Intergovernmental Grants
Interest revenue
Total nonoperating revenues
Net income (loss) before transfer
Transfer from (to) General Fund
Change in Net Assets
Net Assets, beginning
Net Assets, ending
Business-type activities- Enterprise Funds
Airport Congregate
Terminal Housinq Total
70,284 $ 251,881 $ 322,165
137,432 - 137,432
67,568 - 67,568
629 - 629
275,913 251,881 527,794
52,163 17,053 69,216
12,543 7,184 19,727
60,630 44,423 105,053
153,277 86,047 239,324
9,700 11,300 21,000
102,194 125,299 227,493
- 18,000 18,000
14,003 1,757 15,760
48,900 16,800 65,700
453,410 327,863 781,273
(177,497) (75,982) (253,4 79)
30,720 - 30,720
20,416 5,483 25,899
51,136 5,483 56,619
Governmental
Activities -
Internal Service
Fund
Equipment
Replacement
40,104
40,104
40,104
.
.
40,104
30,000
11,076
41,076
(126,361 ) (70,499) (196,860) 41,076
(54,801) (54,801)
(126,361) (125,300) (251,661) 41,076
3,893,816 4,338,698 8,232,514 1,916,934
$ 3,767,455 $ 4,213,398 $ 7,980,853
$ 1,958,0,10
See Accompanying Notes to Financial Statements
Cash flows from operating activities:
Receipts from Customers
Payment~ to Suppliers
Payments to Employees
Payments for Interfund Services
Net cash provided (used) by operating
activities
Cash flows from investing activities:
Interest on Investments
Cash flows from noncapital financing
activities:
Transfers to General Fund
Cash flows from capital and related
financing activities:
Proceeds of capital contributions
Acquisition of capital assets
Net cash providecl (used) by capital and
related financing activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents, beginning
Cash and cash equivalents, ending
Reconciliation of operating income to net
cash provided (used) by operating
activities:
Operating income $
Adjustments To Reconcile Operating Income
(Loss) To Net Cash Provide by (used in)
Operating Activities:
Depreciation
Accounts receivable
Accounts payable
Other liabilities and deferred revenues
Net Cash Provided by (used in)
Operating Activities: $
CITY OF KENAI, ALASKA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2004
Business-type activities- Enterprise Funds
Airport Congregate
Terminal Housin~ Total
283,238 $ 251,881 $ 535,119
(269,223) (176,909) (446,132)
(49,916) (17,237) (67,153)
(48,900) . (16,800) (65.,7.0..0.)
Governmental
Activities -Internal
Service Fund
, ,
Equipment
.Replacement
40,104
(84,801) 40,935 (43,866) 40,104
20,416 5,484 25,900 11,076
(54,801) (54,801)
30,720 - 30,720
(36,850) - (36,850)
(6,130) - (6,130)
30,000
(130,690)
(100,690)
(70,515) (8,382) (78,897) (49,510)
2,157,077 532,812 2,689,889 1,156,827
$ 2,086,562 $ 524,430 $ 2,61,0,99,2,,
(177,497) $ (75,982) $ (253,479)
102,194 125,299 227,493
7,109 - 7,109
(19,184) (8,960) (28,144)
2,577 578 3,155
(84,8011 $ 40,935 $ (43,866/
1,107,317
40,104
-
-
.
40,104
See Accompanying Notes to Financial Statements
37
FOOTNOTES, TO FINANCIAL STATEMENT
CITY OF KENAI
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2004
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Kenai (City) was formed by a Home Rule Charter on May 20, 1963 under the provisions of
Alaska Statute, Title 29, as amended. The City operates under a council-manager form of government and
provides the following services: public safety (police and fire), public improvements, airport, dock facility,
water and sewer, library, senior citizen, recreation, parks, planning and general administrative services.
The financial statements of the City have been prepared in conformity with accounting principles generally
accepted in the United States of America (GAAP) as applied to government units. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. The more significant accounting principles of the
government are described below.
B. City-Wide and Fund Financial Statements
The City-wide f'mancial statements (i.e., the statement of net assets and the statement of activities) report
information on all activities of the City. Governmental activities, which normally are supported by taxes
and intergovernmental revenues along with user fees, are reported separately from the business-type
activities, which rely to a significant extent on fees and charges for support. The effect of any interfund
activity, for the most part, has been removed from these statements. The statement of activities
demonstrates the degree to which the direct expenses of a given function or segment are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include charges to customers or applicants who use, purchase, or directly benefit from
the goods, services or privileges provided by a given segment or function and includes restricted grants and
contributions that are restricted to meeting the operations or capital requirements of a particular function or
segment. Taxes and other items not properly included in program revenues are reported as general
revenues. Major individual governmental and proprietary funds are reported as separate columns in the
fund financial statements.
C. Measurement focus and basis of accounting and financial statement presentation
The City-wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting as are the proprietary fund statements. Revenues are recorded when earned
and expenses are recorded when a liability is incurred, regardless of the timing of cash flows. Grants and
similar programs are recognized as revenue as soon as all eligibility requirements imposed by the provider
have been met. Net assets are reported as restricted when constraints placed on the net asset use are either
externally imposed by creditors, grantors, contributors, or laws or regulations of other governments are
imposed by law through constitutional provisions or enabling legislations.
Governmental fund type financial statements are reported using the current financial resources
measurements focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are collectible
in the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
City considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to claims and judgments, are recorded
only when payment is due.
39
Franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessment receivables due within the current fiscal period is considered to be susceptible
to accrual as revenue of the current period. All other revenue items are considered to be measured and
available only when cash is received by the government.
The City reports the following major governmental funds'
The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The Water and Sewer Special Revenue Fund accounts for the activities of providing water and
sewer to city residents. It relies on user fees to finance its operations.
The Airport Land System Special Revenue Fund accounts for activities of the airport except for
terminal activities and land sales. It relies on user fees and investment interest to finance
operations.
The Airport Land Sales Permanent Fund accounts for sales of airport land. All principal proceeds
of any land sold are held in this fund and may not be spent. Interest earned on land sale contracts
is transferred to the Airport Land System Special Revenue Fund. Investment interest generated by
the cash balance of this fund is recorded in the Airport Land System Special Revenue Fund.
Additionally the City repons the following fund types:
Proprietary Funds - the City uses two enterprise funds to account for activities that are intended to be
supported by user fees. The Terminal Enterprise Fund accounts for the activities of the airport terminal.
The Congregate Housing Enterprise Fund accounts for the activities of the senior housing project.
Internal Service Fund- the Equipment Replacement Fund is an internal service fund. It accounts for the
purchase of equipment costing more than $50,000 that will be used by General Fund departments on a cost-
reimbursement basis.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in both the City-wide and proprietary fund financial statements to the extent that those
standards do not conflict with or contradict guidance of the Govemmental Accounting standards Board.
The City has the option of following subsequent private-sector guidance for their business-type activities
and enterprise funds, subject to this same limitation. The city has elected not to follow subsequent private-
sector guidance.
As a general role the effect of interfund activity has been eliminated from the City-wide financial
statements. Exceptions to this general rule are charges between the City's enterprise functions and various
other functions of the City. Elimination of these charges would distort the direct costs and program
revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
enterprise fund and of the City's internal service fund are charges to customers for sales and services.
Operating expenses for enterprise funds and internal service fund include the cost of sales and services,
4O
administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
def'mition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
Use of accounting estimates: The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported revenues and expenses during the
reporting period. Actual results could differ from those estimates.
D. Assets, liabilities and net assets or equity
1. Cash and cash equivalents
The City maintains a central treasury for most of its cash and cash equivalents, which is utilized by all
funds. For the purposes of these financial statements, the City of Kenai considers highly liquid investments
that are readily convertible to cash, with an original maturity of three months or less, to be cash equivalents.
Investment income is recorded in the general fund, except that interest earned on cash held in the water and
sewer special revenue fund, the airport land system special revenue fund (including cash in the airport land
sales trust fund and airport related capital project funds), the airport terminal and congregate housing
enterprise funds and the internal service fund is recorded in these funds.
2. Inventories
Inventories are valued at cost, which approximates market, using the first-in/first-out method. The costs of
inventories are recorded using the consumption method.
~3. Receivables and payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of
the fiscal year are referred to as either "due to other funds" or "due from other funds" (i.e., the current
portion of interfund loans).
4. Restricted assets
Monies or other resources, the use of which is restricted by legal or contractual requirements are recorded
as restricted assets.
5. Capital assets'
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business type activities
columns in the City-wide financial statements. Capital assets are defined by the City as assets with an
initial, individual cost of more than $5,000. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the
date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant, and equipment of the City, is depreciated using the straight line method over the following
estimated useful lives:
Assets Years
Buildings costing more than $50,000 50
Buildings costing less than $50,000 25
Building improvements 25
Water and sewer infrastructure 50
Street infrastructure 30
Heavy equipment 20
Other equipment 10
Office equipment 5
6. Compensated absences
It is the City's policy to permit employees to accumulate earned but unused vacation benefits. The City
makes annual appropriations for the full amount of leave accrued, which is available to employees at
essentially their discretion. Each employee is allowed to accumulate up to 80 days of annual leave at the
end of a calendar year, with any excess accumulation paid in cash in the following January. All vacation
pay is accrued when incurred in the City-wide and proprietary fund f'mancial statements. A liability for
these amounts is reported in governmental funds only if leave has been used but not yet paid.
7. Long-term obligations
In the City-wide financial statements, and proprietary fund types in the fund financial statemems, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental activities,
business-type activities, or proprietary fund type statement of net assets. In the fund financial statements,
governmental fund types recognize long-term debt obligations only when due.
8. Fund equity
In the fund financial statements, governmental fund types report reservations of fund balance for amounts
that are not available for appropriation or are legally restricted by outside parties for use for a specific
purpose. Designations of fund balance represent tentative management plans that are subject to change.
STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary information
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the
United States of America for all governmental fund types, except the Capital Project Funds which adopt
project-length budgets. All annual appropriations lapse at a fiscal year end.
Budgets for the general fund, special revenue funds, debt service funds, permanent funds and enterprise
funds are annual budgets. Capital project fund budgets are project-length budgets. All budgets are adopted
on a basis consistent with generally accepted accounting principles. The Equipment Replacement Fund,
which is an internal service fund, is not required to have a budget. The council approves all asset
acquisitions from this fund by resolution. The Dock Facility Special Revenue Fund was closed at the
beginning of the year with a residual equity transfer to the General Fund. No budget was adopted for the
Dock Facility Fund.
Annual budgets must be submitted to the City Council by the City Manager during or prior to the sixth
week preceding the first day of each fiscal year. The City Council must adopt an annual budget and set the
tax rates not later than the tenth day of June for the following year.
Budgetary control (the level at which expenditures may not exceed budget) is maintained at the object class
level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors.
Purchase orders which would result in an overrun of object class balances are not released until additional
aPpropriations are made available.
Amendments to appropriations may be made by the city administration by transfers within a fund in
amounts less than $2,500. Other amendments, including supplemental appropriations, may be made by the
City Council. The City Council authorized supplemental appropriations during the year in capital projects
funds and the general fund. General fund supplemental appropriations were $124,931. The majority
($122,431) of this was to appropriate state and federal grants received during the year.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders,
contracts) outstanding at year end are reported as reservations of fund balances and do not constitute
expenditures or liabilities. These commitments will be reappropriated and honored during the subsequent
year.
IlL DETAILED NOTES ON ALL FUNDS
A. Deposits and investments
The City maintains a central treasury that is available for use by all funds. Each fund type's portion of the
central treasury is displayed on the combined balance sheet as "Equity in Central Treasury".
At year-end, all of the City's bank deposits were either insured or collateralized with securities held by the
City's agent in the City's name.
The City's investment policy authorizes the City to invest in: (a) obligations of the United States or an
agency or instrumentality of the United States; (b) certificates of deposit with banks and savings and loan
associations; (c) repurchase agreements; (d) money market mutual funds consisting primarily of
obligations of the United States or an agency or instrumentality of the United States, or repurchase
agreements collateralized with such obligations; and (e) the Alaska Municipal League Investment
PooI(AMLIP). Generally, investment maturities cannot exceed five years from the date of purchase.
Repurchase agreements' must be collateralized with United States government obligations. Certificates of
deposit must be insured or collateralized with obligations of the United States or its agencies or
instrumentalities. Collateral must be held by a third party trustee. The City complied with its investment
policy throughout the year.
The AMLIP is an external investment pool which is not SEC registered. Alaska Statute 37.23 establishes
regulatory oversight of the pool. The law sets forth numerous requirements regarding authorized
investments and reporting. On a monthly basis the investments in the pool are reviewed for fair value by
an independent pricing service. At June 30, 2004 the value of investments in the 'AML pool are
approximately equal to fair value.
The fair value of the City's investments at year-end are shown below. GASB Statement 3 establishes
categories as an indication of the level of custodial risk involved in the investments. The A.M.L. Pool is
uncategorized. All of the City's remaining investments are in the category of least risk and include
investments that are insured or registered in the City's name, or securities that are held by the City or its
agent in the City's name. All of the United States treasury bills, treasury notes, and United States agency
securities are held in a custodial account in the Well's Fargo Trust Department, and are recorded in its
internal records in the City's name in accordance with a safekeeping agreement. Well's Fargo is not a
counter party to security transactions.
43
Fair Value
U.S. agency securities
A.M.L. investment pool
Total investments
$ 31,820,569
847~385
$ 32.667.954
In compliance with current banking contracts, the City maintains a $450,000 compensating balance in the
form of a non-interest bearing certificate of deposit, as well as a $20,000 interest-bearing certificate of
deposit. The City also maintains an interest bearing checking account, which had a bank balance of
$345,752 and a carrying value of $154,369 at year-end. These deposits are insured for the first $100,000
and the balance is collateralized by securities held by a third party custodian in the City's name.
B. Receivables
Receivables at June 30, 2004, for the City's individual major funds, the nonmajor and other governmental
funds in the aggregate, and the proprietary funds are as follows:
Water & Airport Land
General Sewer System
Taxes
Intergovernmental
Customers and other
Special assessments
Land contracts
Accrued interest
Total receivables
Less allowance for uncollectibles
Net receivables
$1,041,972 $ -
151,565 -
72,582 140,430
234,595 79,763
41,187 -
195,390 -
1,737,291 220,193
(43,365) (9,657)
$1:693,926 $ 210:53___~6
11,244
3 7,541
48,785
$ 48:785
Intergovernmental
Notes
Customers
Special assessments
Interest receivable
Total receivables
Airport Land Nonmajor and
Sales Other Funds
$ - $ 229,057
185,240 113,226
- 90,924
- 5,217
$ 185.240 $ 438.424
Proprietary
21,156
$ 21.156
C. Capital Assets
Capital asset activity for the year ended June 30, 2004 was as follows:
Governmental Activities:
Capital assets, not being depreciated:
Land $
Construction in progress
Total capital assets, not
being deprecreciated
Beginning
Balance Increases
Decreases
6,256,703
9,435,3O7.
15,692,010
- $ (26,396) $
,022,881 (369,697)
Ending
Balance.
6,230,307
10,088,491
1,022,881 (396,093) 16,318,798
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Machinery and Equipment
Infrastructure
Total capital assets being
deprecreciated
34,389,742
22,066,397
12,095,411
55,479,018
18,612 -
30,3O2 -
240,449 (26,112)
320,7,8,3, ,,-
124,030,568. 610,146 (26,112)
34,408,354
22,096,699
12,309,748
55,799,801
124,614,602
Less accumulaed depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being
depreciated, net
(7,717,737) (518,968)
(8,314,356) (510,394)
(4,780,039) (526,886)
(16,162,310) (864,798)
(36,974,442) (2,421,046)
87,056,126 (1,810,900)
- (8,236,705)
- (8,824,750)
26,112 (5,280,813)
- (17,027,108)
26,112 (39,369,376)
85,245,226
Governmental activities, capital
assets, net
$102=748;136 $ (788=019) $(396=093) $101=564;024
Internal service funds serve the governmental funds; therefore, their capital assets are included as part of the above
totals for governmental activities.
45
Business-type Activities'
Capital assets, not being
depreciated' Land
Capital assets, being depreciated:
Buildings
Equipment
Improvements other than buildings
Total capital assets being
deprecreciated
Less accumulaed depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Total accumulated depreciation
Total capital assets, being
depreciated, net
Business-type activities, capital
assets, net
Beginning Ending
Balance Increases Decreases Balance
280,543 $ - $ - $ 280,543
8,309,963 30,850 - 8,340,813
215,504 6,000 - 221,504
677,376 - - 677,376
9,202,843 36,850 - 9,239,693
(3,075,945) (210,829) (3,286,774)
(677,376) - - (677,376)
(143,056) (16,665) - (159,721)
(3,896,377) (227,494) - (4,123,871)
5,306,466 (190,644) - 5.115,822
$ 5..587..009.. $ (190~644) $ - $,5.396..___36~5
D. Defined Benefit Pension Plan
Description of Plan
The City participates in the Public Employees' Retirement System (PERS), an agent multiple employer plan
which covers eligible State and local government employees. The plan was established and is administered
by the State of Alaska to provide pension, post employment healthcare, death, and disability benefits.
Benefit and contribution provisions are established by State law and may be amended only by the State
Legislature.
The plan is included in a comprehensive annual financial report that includes financial statements and other
required supplemental information. The report is available at the following address:
Department of Administration
Division of Retirement and Benefits
P.O. Box 110203
Juneau, Alaska 99811-0203
Funding Policy
For PERS, employees are required to contribute 6.75% (7.5% for peace officers and firefighters) of their
annual covered salary. Under the plan, the funding policy provides for periodic employer contributions at
actuarially determined rates that, expressed as a percentage of annual covered payroll, are sufficient to
accumulate sufficient assets to pay both pension and post employment healthcare benefits when due.
46
The City's current contribution rate for PERS follows:
Pension 2.20%
Post Employment Healthcare 1.47%
Total contribution rate 3.67%
Under the plan, employer contribution rates are level percentages of payroll and are determined using the
projected unit credit actuarial funding method. The plan uses the level dollar method to amortize the
unfunded liability over an open, rolling twenty-five year period. Funding surpluses are amortized over five
years.
Annual Pension Cost
For the year ended June 30, 2004, the City's annual pension cost of $174,180 for PERS was equal to its
required and actual contributions.
· The required contribution was determined as part of the June 30, 2001 actuarial valuation. The significant
actuarial assumptions used in the valuation of the plan follow:
o
o
.
,
Investment return of 8.25% per annum, compounded annually, net of expenses;
Projected salary increases of 5.5% for the first ten years of employment (first five for
police and fire fighters) and 4% per year thereafter;
Health cost inflation of 7.5% in 2001, trending downward 1% per year through 2003; 5%
from 2004 through 2008; 4.5% from 2009 through 2013; and 4% thereat~er;
Total inflation, as measured by the Consumer Price Index for urban and clerical workers
for Anchorage, is assumed to increase 3.5% annually; and
Asset valuation - assumes investment return of 8.25% compared to a 5% corridor around
the market value of assets. Any differences are amortized and applied to the employer
contribution rate. Valuation assets cannot be outside the range of 80% to 120% of market
value of assets.
Three-year trend information for PERS follows:
F isca I Ann ual P ercen tag e N et
Year Pension of APC Pension
Ending Cost (APC) Contributed Obligation
June 30, 2002 126,541 100% -
June 30, 2003 127,805 100% -
June 30, 2004 174,180 100% -
47
A schedule of funding progress for PERS for the three most recent actuarial valuations follows (in
thousands):
Unfunded
Actuarial Actuarial Actuarial (Assets in
Valuation Value of Accrued Excess of) Funded
Date Assets Liabili _ty Liability Ratio
Unfunded
(Assets in Excess of)
Covered Liability as Percentage
Payroll Of Covered Payroll
June 30, 2001
Pension $ 22,213 $ 20,868 $ (1,345) 106% $ 4,392 (31%)
Post Employment
Healthcare 9,405 8,835 (570) 106% 4,392 (13%)
June 30, 2002
Pension 18,255 22,882 4,627 80% 4,926 94%
Post Employment
Healthcare 11,092 13,903 2,811 80% 4,926 57%
June 30, 2003
Pension 17,336 23,182 5,846 75% 4,730 124%
Post Employment
Healthcare 11,587 15,494 3,907 75% 4,730 83%
gJ
Changes in Long-Term Debt
The following is a summary of general long-term obligation transactions of the City for the year ended June
30, 2004
General long-term debt, July 1, 2003
Bonds retired
General long-term debt, June 30, 2004
$ 1,700,000
(~50,000)
$ 1.550.000
_ _
General obligation bonds payable at JUne 30, 2004 are comprised of the following individual issue:
$1,430,000 of 1993 advance refunding serial bonds
that will be primarily repaid through special
assessment collections, but have full government
commitment, due in annual installments of $20,000
to $195,000 through October 1, 2004; interest at
2.75% to 5.35%
$ 150,000
Other long-term debt is a loss contingency of $1,400,000 for contaminated soils.
The annual requirements to pay all general obligation bonds outstanding as of June 30, 2004, including
interest payments of $4,013 are as follows:
Fiscal Year Ending
2005 $154:013
48
Fe
Interfund receivables, payables and transfers
The General Fund made short-term loans to the Miscellaneous Capital Projects Fund of $72,602 and the
Council on Aging fund of $10,033 to cover cash needs of these funds while awaiting payments on grants.
Transfers between funds were as follows:
Major Funds
General Fund $
Airport Land System
Airport Land Sales
NonmajOr Governmental Funds
Proprietary Funds
Total $
Transfers Out: Tranfers in:
Major Nonmajor
Governmental Governmental
General Fund Funds Funds Total
29,934 $ - $ 7,467 $ 22,467 $ 29,934
33,007. - - 33,007 33,007
23,569 - 23,569 - 23,569
128,511 81,859 36,803 9,849 128,511
54,801 54,80! - - 54,801
269~822 $ 136=660 $ 67;839 $ 65:323 $ 269:822
G. Risk management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; environmental contamination; and natural disasters. Risk
financing activities are accounted for in various operating funds, with unallocated or Citywide activities
being accounted for in the general fund. The City purchases commercial insurance to transfer a substantial
portion of the above risks of loss. Property insurance is purchased to provide coverage for buildings and
heavy equipment, generally with deductibles of $25,000. Various liability insurance policies are purchased
to provide protection against torts, injuries, and errors and omissions. Most liability policies are written
with low or zero deductibles. In addition to the deductibles on insurance policies, the City retains risk of
loss related to certain potential liabilities and property damages. These include environmental liabilities,
employment discrimination, and vehicle property losses. Settled claims have not exceeded commercial
coverage in any of the past three fiscal years. The City analyzes potential losses on a case-by-case basis to
determine amounts that should be accrued or disclosed in the financial statements. At June 30, 2004, the
City has recorded a liability in recognition of certain losses related to contaminated soil remediation. The
City has retained the risk of loss for such exposures. There has been no change in the balance of claims
liabilities during the past year as indicated by the following table.
Beginning of End of
The Fiscal Year Current Year Claim Fiscal Year
Liability Claims Payments Liability.
FY2002 $1,400,000 - - $1,400,000
FY2003 $1,400,000 - - $1,400,000
FY2004 $1,400,000 - - $1,400,000
H. Contingencies
The City is involved in several lawsuits arising in the ordinary course of operations, including actions
commenced and claims asserted against it. Management of the City does not believe that the ultimate
resolution of these lawsuits and claims will have any material effect upon its f'mancial position or results of
operations, and therefore, no provision has been made in the accompanying financial statements.
49
OTHER GOVERNMENTAL FUNDS
Other Government Funds
This section includes the Statement of Revenues, Expenditures, and Changes in Fund Balance,
Budget and Actual, for the Airport Land Sales Permanent Fund, which is a major fund, as well as
the Nonmajor Governmental Funds Combining Balance Sheet and Combining Statement of
Revenues, Expenditures, and Changes .in Fund Balance. It also includes a Statement of
Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual for each nonmajor
governmental fund that adopted an annual budget.
Special Revenue Funds
Special Revenue funds are used for specific revenues that are legally restricted to expenditures
fora specific purpose.
Dock Facility Fund - This fund was closed at the beginning of the year with a transfer to the
General Fund. All dock operations are included in the General Fund.
Kenai Borough Senior Citizens Fund - This fund accounts for revenues and expenditures
related to the Senior Citizens Program. The primary source of revenue is a grant from the Kenai
Peninsula Borough.
Council On Aging Fund - This fund accounts for the activities of the Senior Citizen Program
which is substantially financed by a grant from the State of Alaska (from federally financed
sources). Activities include social services and a nutrition program.
Debt Service Funds
Debt Service Funds are established to account for the accumulation and disbursement of money
needed to comply with the interest and principal redemption requirements for the general
obligation bonds issued. The 1984/1986/1993 Special Assessment Debt Service Fund is
intended to be financed by special assessments; however, due to delinquencies the General
Fund has had to cover the debt service.
1984186193 Special Assessment Debt Service- to accumulate funds for payment of an
advance refunding bond issued in 1993 to defease prior special assessment bonds.
Date of Interest Maturity Annual Outstanding
Issue Issued Rate Dates Installments June 30, 2004
10/1/93 $1,430,000 2.75% to 5.35% 1994-2004 $20,000 to $195,000 $150,000
Capital Project Funds
Capital Projects Funds are established to account for the resources expended to acquire assets
of a relatively permanent nature. These funds evolved from the need for special accounting for
bond proceeds, grants and contributions for the acquisition of capital assetS.
Capital Projects Funds provide a formal mechanism which enables administrators to ensure that
revenues dedicated to a certain purpose are used only for that purpose and further enables them
to report to creditors and other grantors of capital projects fund revenue, that their requirements
regarding the use of the revenue were fully satisfied.
Parks And Recreation- to account for capital improvements to City parks and recreation
facilities. Financing is primarily from general fund transfers and State grants.
Streets - to account for capital improvements to City streets. Financing is primarily from general
fund transfers, grants from State and Federal sources and bonds.
Airport Improvements - to account for capital improvements to City owned airport facilities.
Financing is primarily from transfer from the Airport Land System Special Revenue Fund and
State and Federal grants.
Water And Sewer- to account for capital improvements to City water and sewer infrastructure
and the sewer treatment facilities. Financing is from user fees via transfers from the Water and
Sewer Special Revenue Fund, State and Federal grants and bonds.
Miscellaneous - to account for capital projects which do not fit in one of the foregoing categories.
These projects are generally smaller projects which may be funded through transfers from other
funds or by State or Federal grants.
Permanent Funds
Permanent Funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used.
General Government Land Sales - to account for the proceeds of general government land
sales, including principal and interest on long-term notes. By City Charter, the principal cannot be
spent. Interest revenue is transferred to the General Fund.
Airport Land Sales - to account for the proceeds of airport land sales, including principal and
interest on long-term notes. By ordinance, the principal cannot be spent. Interest revenue is
recorded in the Airport Land System Special Revenue Fund. Note that this is a major fund and is
therefore not included in the NonMajor Governmental Funds Combining Statements.
52
CITY OF KENAI, ALASKA
AIRPORT LAND SALES PERMANENT FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
Original Final
Budqet Budqet Actual
Variance With
Final Budget
Positive
(Neaative)
Revenues: -.:.
Interest revenue
Land sales
Total Revenues
Excess of revenues
over expenditures
Other financing sources (Uses):
Transfers out
Net change in fund balance
Fund balances, July 1
Fund balances, June 30
25,000
-
25,000 $ 23,009
- 271,840
$ (1,991)
271,840
25,000 25,000 294,849 269,849
25,000 25,000 294,849 269,849
(25,000) (25,000) (23,569)
271,280
11,167,842
$ 11,439,122
- $ -
1,431
$ 271,280
City of Kenai, Alaska
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2004
ASSETS
Equity in central treasury
Intergovernmental Receivable
Notes receivable
Special assessments receivable
Other accounts receivable: net
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Customer deposits
Due to General Fund
Sales tax
Deferred revenue
Total liabilities
Fund balances:
Reserve for investment
UnreServed:
Designated for subsequent
year's expenditures
Designated for compensated
absences
Undesignated
Total fund balances
Total liabilities and fund balances
Dock
Facility
Special Revenue
Borough
Senior
Citizens
, ,
$ 153,933
..
$ ,,153,933
$ 1,269
6,505
108
-
7,882
.
.
10,647
135,404
146,051
$ 153,933
Council
on
Agin9
10,033
$ 10,033
10,033
.,
10,033
10,033
54
ASSETS
Equity in central treasury
Intergovernmental Receivable
Notes receivable
Special assessments receivable
Other accounts receivable: net
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Customer depOsits
Due to General Fund
Sales tax
Deferred revenue
Total liabilities
Fund balances:
Reserve for investment
Unreserved:
Designated for subsequent
year's expenditures
Designated for compensated
absences
Undesignated
Total fund balances
Total liabilities and fund balances
City of Kenai, Alaska
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2004
continued
Capital Project
Parks and
Recreation
Streets
Airport
Improvemen,ts
95,608
.
.
59,757
32
.
152,056
128,480
.
95,608
59,789
3,898
$ 284,434
65,460
65,460
.
30,148
.
.
30,148
95,608
$ 23,322
-
15,253
38,575
59,789
245,859
59,789
59,789
245,859
$ 284,434
Water
and
Sewer
$1,056,251
12,581
.
$1,068,832
1,068,832
1,068,832
$ 1,068,832
Miscellaneous
74,032
.
$ , 74,032
1,218
.
72,602
.
73,820
212
212
$ 74,032
55
City of Kenai, Alaska
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2004
continued
Debt Service
Permanent
ASSETS
19841198611993
Special
Assessment
General
Government
Land Sales
Equity in central treasury
Intergovernmental Receivable
Notes receivable
Special assessments receivable
Other accounts receivable: net
Total assets
160,944
..
9O,924
251,868
2,144,345
,..
113,227
..
5,217
$ 2,262,789
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Customer deposits
Due to General Fund
Sales tax
Deferred revenue
Total liabilities
Fund balances:
Reserve for investment
Unreserved:
Designated for subsequent
year's expenditures
Designated for compensated
absences
Undesignated
Total fund balances
Total liabilities and fund balances
9O,924
9O,924
,.
160,944
.
.
160,944
251,868
113,227
113,227
2,149,562
2,149,562
$ 2,262,789
Total
Nonmajor
Governmental
Funds
3,822,894
215,125
113,227
90,924
19,148
4,261,318
25,809
6,505
82,635
108
284,864
399,921
2,149,5.62
1,565,784
10,647
135,404
3,861,397
4,261,318
City of Kenai, Alaska
Combining Statement of Revenues, Expenditures
And Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended June 30, 2004
Special Revenue
Revenues:
Intergovernmental Revenues
Charges for Services
Special Assessments
Interest
Land Sales
Miscellaneous Revenues
Total Revenues
Borough
Dock Senior
Facility Citizens
95,320
52,887
148,207
Expenditures:
Water and Sewer Services
Airport
Social Welfare Services
Debt Service
Parks and Recreation
Streets
General Government
Total Expenditures
Excess of Revenues Over (Under) Expenditures
141,672
,..
-
..
141,672
6,535
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
(45,867)
(45,867)
32,316
..
32,316
Net changes in fund balance
(45,867)
38,851
Council
on
Aging
109,632
-
134,727
244,359
244,359
..
-
-
244,359
(9,849)
(9,849)
(9,849)
Fund Balances - July 1
Fund Balances- June 30
45,867
107,200
$ !46,051
9,849
57
Revenues:
Intergovernmental Revenues
Charges for Services
Special Assessments
Interest
Land Sales
Miscellaneous Revenues
Total Revenues
City of Kenai, Alaska
Combining Statement of Revenues, Expenditures
And Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended June 30, 2004 - continued
Capital Project
Parks and Airport
Recreation Streets Improvements
, ,,
$ 4,540 $ 374,248
. -
.
. .-
.
.
4,540 374,248
$ 275,908
.
236
276,144
Water
and
Sewer
Miscellaneous
$ 137,983 $ 74,032
.
137,983
74,032
Expenditures:
Water and Sewer Services
Airport
Social Welfare Services
Debt Service
Parks and Recreation
Streets
General Government
Total Expenditures
Excess of Revenues Over (Under) Expendi
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Fund Balances- July 1
Fund Balances- June 30
44,221 -
- 535,323
..
44,221 535,323
(39,681) (161,075)
...
(1,698)
(! ,698.)
(41,379) (161,075)
71,527 220,864
$ 30,148,, _$.. 59,789~
234,035
.
234,035
42,109
33,007
.
33,007
75,116
170,743
$ 245,859
155,680
.
.
155,680
(17,697)
(57,2!..8.)
(57,218)
(74,915)
1,143,747
$ 1,068,832
85,368
85,368
(11,336)
(~,388)
(1,388)
(12,724)
12,936
58
Revenues'
Intergovernmental Revenues
Charges for Services
Special Assessments
Interest
Land Sales
Miscellaneous Revenues
Total Revenues
City of Kenai, Alaska
Combining Statement of Revenues, Expenditures
And Changes in Fund Balance
Nonmajor Governmental Funds
For the Year Ended June 30, 2004 -continued
Debt Service
Permanent
19841198611993
Special
Assessment
General
Government
Land Sales
5,418
.
5,418
11,800
34,168
45,968
Total
Nonmajor
Governmental
Funds
1,071,663
52,887
5,418
11,800
34,168
134,963
1,310,899
Expenditures:
Water and Sewer Services
Airport
Social Welfare Services
Debt Service
Parks and Recreation
Streets
General Government
Total Expenditures
Excess of Revenues Over (Under) Expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
161,962
.
-
.
161,962
(156,544)
(156,544)
45,968
(12,49!)
(12,491)
33,477
155,680
234,035
386,031
161,962
44,221
535,323
85,368
1,602,620
(291,721)
65,323
(128,511)
(63,188)
(354,909)
Fund Balances- July 1
Fund Balances - June 30
317,488
160,944
2,116,08~
$ 2,149,562,'
4,216,306
$ 3,861,397
,.
59
CITY OF KENAI, ALASKA
KENAI BOROUGH SENIOR CITIZENS SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
Final June 30, 2004
Budget Actual
Revenues:
Intergovernmental revenue-
Kenai Peninsula Borough grants
Miscellaneous revenues:
United Way grants
Rents and leases
Donations
Other
Total miscellaneous revenues
Total revenues
Expenditures - social welfare services:
Personal services
Supplies
Other services and charges
Total expenditures
$ 95,320 $ 95,320
Variance With
Final Budget
Positive
(Ne_clative)
18,840 18,840 -
19,000 21,598 2,598
6,000 11,313 5,313
3,500 1,136 (2,364)
47,340 52,887 5,547
142,660 148,207 5,547
96,057 89,408
13,641 13,610
41,614 38,654
6,649
31
2,960
151,312 141,672 9,640
Excess of revenues over (under)
expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net changes in fund balance
Fund balance, July 1
Fund balance, June 30
(8,652) 6,535 15,187
24,000 32,316 8,316
(19,602) - 19,602
4,398 32,316 27,918
$ 14,254) 38,851
107,200
$ 146,051
43,105
6O
CITY OF KENAI, ALASKA
COUNCIL ON AGING SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
Revenues:
Intergovernmental revenues:
State grants
Federal grants
Total Jntergovernmental revenues
Miscellaneous revenues:
In-kind support
Donations
Total miscellaneous revenues
Total revenues
Final
Budqet Actual
$ 97,969 $ 97,969
12,000 11,663
109,969 109,632
10,850 10,850
104,000 123,877
Variance With
Final Budget
Positive
(Neqative)
(337)
(337)
19,877
114,850 134,727 19,877
224,819 244,359 19,540
Expenditures - social welfare services:
Social services:
Personal services 41,571 41,537
Other services and charges 5,425 5,425
Total social services 46,996 46,962
Congregate meals:
Personal services 46,989 48,483
Supplies 42,686 41,177
Other services and charges 5,425 5,425
Total congregate meals 95,100 95,085
Home delivered meals:
Personal services 46,156 47,380
Supplies 40,662 39,434
Total home delivered meals 86,818 86,814
Transportation -
Personal services 10,211 11,525
Supplies 5,296 3,973
Total Transportation 15,507 15,498
Total expenditures
Excess of revenues over (under)
expenditures
Other financing sources (uses)'
Transfers in
Transfers out
Total other financing sources (uses)
244,421 244,359
(19,602)
19,602 -
- (9,849)
19,602 (9,.849)
$ - (9,849)
9,849
Net changes in fund balance
Fund balance, July 1
Fund balance, June 30
34
(1,494)
1,509
.
15
(1,224)
1,228
4
(1,314)
1,323
9
62
19,602
(19,602)
(9,849)
(29,451)
$ .. (9,849)
61
CITY OF KENAI, ALASKA
19841198611993 SPECIAL ASSESSMENT DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2004
Revenues -
Miscellaneous:
Special assessments
Total revenues
Expenditures - debt service:
Redemption of serial bonds
Interest on bonds
Total expenditures
Final
Budget Actual
$ - $ 5,418 $
5,418
Variance With
Final Budget
Positive
(Neqative)
5,418
5,418
160,000 150,000 10,000
20,020 11,962 8,058
180,020 161,962
18,058
Excess of revenues over
(under) expenditures
Other financing sources (Uses):
Tranfers in
(180,020) (156,544)
180,020
23,476
(180,020)
Net change in fund balance
Fund balance (deficit) - July 1
Fund balance - June 30
(156,544)
317,488
$ 160.944
(156.544)
62
CITY OF KENAI, ALASKA
GENERAL GOVERNMENT LANDSALE PERMANENT FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
YEAR ENDED JUNE 30, 2004
Final
Budqet Actual
Variance With
Final Budget
Positive
(Neqative)
Revenues:
Interest revenue
Land sales
Total Revenues
25,0OO $
.
25,000
11,800
34,168
45,968
$ (13,200)
34,168
20,968
Excess of revenues
over expenditures
25,000
45,968
20,968
Other financing sources (Uses):
Tranfers out
Net change in fund balance
Fund balances, July 1
Fund balances, June 30
(25,000)
(12,491)
33,477
2,116,085
$, 2,1,49,562,
12,509
$ 33,477
STATISTICAL SECTION
STATISTICAL TABLES
Table I
Table II
General Government Expenditures by Function
General Revenues by Source
Table III
Tax Revenues by Source
Table IV
Property Tax Levies and Collections
Table V
Table VI
Property Tax Rates and Tax Levies - All Direct and
Overlapping Governments
Computation of Direct and Overlapping General Obligation
Debt
Table VII
Table Vlll
Computation of Legal Debt Margin
Ratio of Net General Bonded Debt to Assessed Value and
Net Bonded Debt Per Capita
Table IX
Ratio of Annual Debt Service Expenditures for General
Bonded Debt to Total General Expenditures
Table X
Debt Service Requirements to Maturity- General Obligation
Bonds
Table XI
Schedule of Ten Largest Taxpayers
Table XII
Schedule of Assessed Value and Construction Activity
Table XIII
Miscellaneous Statistical Data
TABLE I
CITY OF KENAI, ALASKA
General Government Expenditures by Function
Last Ten Fiscal Years
Fiscal Year
Ended
June 30
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
General Public Public Parks and
Government * Safety * Works * Recreation
$ 1,246,659 $ 3,099,719 $ 2,258,861 $
1,342,214 3,099,077 2,776,137
1,223,562 3,260,762 2,558,395
1,184,879 3,130,532 2,707,249
1,410,924 3,084,265 2,711,477
1,412,683 3,187,427 2,648,180
1,201,936 3,240,920 2,776,406
1,986,693 3,377,233 2,897,521
1,330,143 3,437,169 2,887,407
1,378,300 3,419,295 2,596,260
964,643
1,109,910
1,057,857
1,014,567
1,124,410
1,109,028
1,210,019
1,277,375
1,363,247
1,112,203
Note:
General Government Expenditures and Revenues (Table I & II) are comprised of
General, Special Revenue, and Debt Service Funds
* Years prior to 1999 have been restated to include charges to other funds to be
consistent with 1999 presentation
** The Boating Facility was changed to a special revenue fund FY 2001. In 2004
was moved to General Fund - Public Works.
Airport
574,021
858,131
844,703
1,172,953
1,211,230
1,180,910
1,260,804
1,303,979
1,358,227
1,471,865
Boating
Facility**
117,296
116,288
127,725
Social
Welfare
321,923
361,132
346,994
342,623
33O,8O4
372,52O
351,939
403,726
451,317
386,031
Debt
Service
384,8O2
377,874
357,542
344,661
238,659
22O,294
2O6,888
193,389
180,020
161,962
Total
8,850,628
9,924,475
9,649,815
9,897,464
10,111,769
10,131,042
10,366,208
11,556,204
11,135,255
10,525,916
Fiscal Year
Ended
.J,,.une 30
1995
1996
1997
1998
1999
2000
2001
2002
2003
20O4
TABLE II
CITY Of KENAI, ALASKA
General Revenues by Source
Last Ten Fiscal Years
Taxes
Licenses
and
Permits
Fines
and
Forfeits
$ 4,541,988 $ 45,054 $ 36,058
4,625,398 57,638 42,895
4,523,546 38,550 38,485
4,644,725 48,872 48,961
4,765,818 33,666 49,575
4,988,755 43,830 33,262
5,128,318 75,633 42,001
5,502,232 89,285 65,053
5,363,764 70,053 56,490
5,838,820 91,181 91,041
Note:
General Government Expenditures and Revenues (Table I & II) are
comprised of General, Special Revenue, and Debt Service Funds
Inter-
governmental
Revenues
$ 1,190,466
1,082,564
1,122,516
1,138,614
966,151
776,617
712,829
834,098
785,780
772,467
Charges
for
Services
$1,274,734
1,360,116
1,508,517
1,546,456
2,392,373
2,448,015
2,570,026
2,689,582
2,757,934
2,939,927
Miscellaneous
(including
Interest)
2,149,563
2,994,891
2,432,485
2,518,513
2,241,173
2,248,143
3,279,333
2,180,115
2,376,193
1,145,454
Total
$ 9,237,863
10,163,502
9,664,099
9,946,141
10,448,756
10,538,622
11,808,140
11,360,365
11,410,214
10,878,890
Fiscal Year
Ended
June 30
TABLE III
CITY OF KENAI, ALASKA
Tax Revenues by Source
Last Ten Fiscal Years
Total Property Sales Franchise
Taxes Taxes Tax* Taxes
1995 $ 4,541,988 $1
1996 4,625,398 1
1997 4,523,546 1
1998 4,644,725 1
1999 4,765,818 1
2000 4,988,755 1
2001 5,128,318 1
2002 5,502,232 1
2003 5,363,764 1
2004 5,838,820 2
,119,539 $ 3,389,101
,141,101 3,458,247
,142,802 3,360,714
,163,255 3,459,676
,212,033 3,533,070
,263,280 3,700,743
,288,013 3,809,239
,302,484 4,180,190
,383,565 3,953,561
,012,922 3,790,644
Penalty
and Interest
on Taxes
$ 33,348
26,050
20,030
21,794
20,715
24,732
31,066
19,558
26,638
35,254
* Beginning with 1993, sales tax includes a 5%
hotel/motel room tax. The hotel/motel room
tax was suspended June 15, 1996.
7O
Fiscal Year
Ended
June 30
TABLE IV
CITY OF KENAI, ALASKA
Property Tax Levies and Collections
Last Ten FiScal Years
Total Current Percent of Total
Tax Tax Levy Tax
(Levy) Collections Collected Collections
Percent
of Total
Tax Collections
to Tax Levy
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
1,082,292
1,087,466
1,113,126
1,143,986
1,194,290
1,219,295
1,227,127
1,247,375
1,326,864
1,931,200
1,039,973 96.09%
1,055,294 97.04%
1,091,810 98.09%
1,108,289 96.88%
1,141,018 95.54%
1,179,162 96.71%
1,197,700 97.60%
1,215,353 97.43%
1,277,940 96.31%
1,905,232 98.66%
1,072,485
1,078,706
1,105,992
1,131,182
1,163,716
1,200,689
1,228,166
1,232,518
1,312,675
1,913,672
99.09%
99.19%
99.36%
98.88%
97.44%
98.47%
100.08%
98.81%
98.93%
99.09%
71
TABLE V
CITY OF KENAI, ALASKA
Property Tax Rates and Tax Levies-All Direct and Overlapping Governments
Last Ten Fiscal Years
Central
Fiscal Year City Kenai Hospital
Ended of Peninsula Service
June 30 Kenai Borou.qh Area
TAX RATE (MILLS)
1995 3.5 8.59 0.70
1996 3.5 8.59 0.50
1997 3.5 8.30 0.50
1998 3.5 8.38 0.40
1999 3.5 8.10 0.40
2000 3.5 8.10 0.40
2001 3.5 7.60 0.40
2002 3.5 7.10 0.40
2003 3.5 6.60 0.40
2004 5.0 6.50 0.50
TAX LEVIES
1995 $1,082,292 $ 26,843,835 $ 1,583,190
1996 1,087,466 27,288,423 1,154,012
1997 1,113,126 26,624,250 1,170,090
1998 1,143,986 27,273,096 977,078
1999 1,194,290 26,790,296 944,319
2000 1,219,295 27,183,168 941,278
2001 1,227,127 26,973,912 972,611
2002 1,247,375 26,169,024 1,030,924
2003 1,326,864 26,117,348 1,133,210
2004 1,931,200 29,950,844 1,490,013
The municipal tax rate is limited by statute to throe percent of the assessed value of
property assessed excepting that the municipalities may without limitation as to the
rate or amount, levy taxes annually in an amount sufficient to pay the principal and
interest on bonds as they shall become due.
Taxes become due in two installments (September 15 and November 15), or in full
by October 15. A penaly of 10% is due on all delinquent installments. Real property
tax lien foreclosure is initiated in January of the year following the calendar year in
which the tax is levied.
Tax levies of the City of Kenai are collected by the Kenai Peninsula Borough. Current
collections are distributed to the City of Kenai based upon the proportion of its levy to
total City and Borough levies, adjusted by Borough and City exemptions.
72
TABLE VI
CITY OF KENAI, ALASKA
Computation of Direct and Overlapping General Obligation Debt
June 30, 2004
Name of Governmental Unit
City of Kenai, Alaska
Kenai Peninsula Borough
Central Peninsula Hospital
Total Direct and Overlapping
Net Debt
O. utstandin~
28,734,O00
48,496,562
$ 77,230,562
Percentage
Applicable
to this
Governmental
Unit
100.00%
9.16%
12.96%
City of
Kenai's
Share
of Debt
,,,
2,631,376
6,286,7.81
$ 8.918.157
TABLE VII
CITY OF KENAI, ALASKA
Computation of Legal Debt Margin
June 30, 2004
Assessed value
Debt limit, 20% of assessed value
Amount of debt applicable to debt limit:
Total bonded debt (principal only)
150,000
$386,311,390
$ 77,262,278
Total amount of debt applicable to debt limit
Legal debt margin
150,000
$ 77.112.278
TABLE VIII
CITY OF KENAI, ALASKA
Ratio of Net General Bonded Debt
To Assessed Value and Net Bonded Debt Per Capita
Last Ten Fiscal Years
Fiscal Year Assessed
Ended June 3q Population* Value
1995 6813 $ 308,891,000
1996 7006 310,704,620
1997 6950 317,636,360
1998 6950 326,853,278
1999 7058 341,225,614
2000 7005 347,342,306
2001 7039 350,584,054
2002 6942 356,392,843
2003 7166 379,172,682
2004 7125 386,311,390
Gross
Bonded
Debt
1,991,000
1,712,000
1,435,000
1,155,000
970,000
795,000
625,000
460,000
300,000
150,000
From State of Alaska, Department of Community and Economic Development.
(State Revenue Sharing).
Note: Actual values of taxable property are an approximation of Assessed
Value, as shown above.
74
Less Debt
Service
Funds
245,000
165,000
85,000
300,000
150,000
Net
Bonded
Debt
$1,746,000
1,547,000
1,350,000
1,155,000
970,000
795,000
625,000
460,000
Ratio of Net
Bonded Debt to
Assessed Value
0.57%
0.50%
0.43%
0.35%
0.28%
0.23%
0.18%
0.13%
0.00%
0.00%
Net Bonded
Debt per
Capita
$ 256
221
194
166
137
113
89
66
..
..
75
Fiscal Year
Ended
June 30
Principal
1994 $ 499,000
1995 267,000
1996 279,000
1997 277,000
1998 28O,0OO
1999 185,000
200O 175,000
2001 170,000
2002 165,000
2003 160,000
2004 150,000
TABLE IX
CITY OF KENAI, ALASKA
Ratio of Annual Debt Service Expenditures for
General Bonded Debt to Total General Expenditures
Last Ten Fiscal Years
Total
Interest Total Expenditures-
and Debt Governmental
Agent Fees Service Fund Tv~)es*
$127,942 $ 626,942 $ 9,696,551
117,802 384,802 8,850,628
98,874 377,874 9,924,475
80,542 357,542 9,649,815
64,410 344,410 9,062,464
53,659 238,659 10,111,769
45,294 220,294 10,131,042
36,888 206,888 10,366,208
28,389 193,389 11,556,204
20,020 180,020 11,135,255
11,962 161,962 10,525,916
Ratio of Debt
Service to
General
Expenditures
6.47%
4.35%
3.81%
3.71%
3.80%
2.36%
2.17%
2.00%
1.67%
1.62%
1.54%
* excludes capital project fund expenditures
76
TABLE X
CITY OF KENAI, ALASKA
Debt Service Requirements to Maturity
General Obligation Bonds
June 30, 2004
Due FYE
2005
1993 Refundin~l
Principal
Interest
Oct. 1
Oct. 1
150,000
4,012
Total
,
154,012
7'7
TABLE Xl
CITY OF KENAI, ALASKA
Schedule of Ten Largest Taxpayers
June 30, 2004
Taxpayer
Type of Assessed
Business Value
Percent
of Total
Assessed
Value
Home Depot
ACS Wireless
Kenai Plaza/Carr's Safeway L.L.C.
Marathon Oil Company
Schilling, Clam T. and Schilling
Era Aviation Inc.
Carr-Gottstein Properties
Salamatoff Seafoods
Enstar Natural Gas
Alaska Industrial Hardware
Total
Retail Shopping $ 10,908,606 2.8%
Commu n icaitons 10,013, 771 2.6 %
Retail Shopping 7,384,400 1.9%
Oil Properties 5,552,850 1.4%
Motel and Other 4,713,300 1.2%
Aviation 4,402,453 1.1%
Real Estate 2,819,110 0.8%
Fish Processor 2,483,104 0.7%
Natural Gas 2,156,218 0.6%
Retail Shopping 1,714,965 0.4%
$ 52,148,777 13.5%
Source' Kenai Peninsula Borough assessing records. Note that many of the above asSessed values are
aggregations of several tax aCcounts that may have slight variation in names. The compilation is a 'best
effort' attempt to identify the ten largest taxpayers; however, it is possible that the above have interests in
other accounts that were not identifiable as being owned by the same entity.
78
Calendar
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
TABLE Xll
CITY OF KENAI, ALASKA
Schedule of Assessed Value and Construction Activity
Total Real
Taxable Property
Value Value
,,
Building Permits Issued
Numbe~ Value
$ 292,927,000 $ 255,072,400
308,891,000 263,553,300
310,704,620 267,603,000
317,636,360 277,496,900
341,225,614 283,637,014
347,342,306 293,681,329
350,584,054 298,028,571
356,392,843 301,801,029
379,172,682 329,745,791
386,311,390 341,170,130
99 $ 8,O85,346
102 7,877,902
78 5,999,500
89 14,053,550
97 7,642,200
102 9,441,750
90 9,337,100
95 13,578,900
121 16,699,400
108 10,331,800
79
TABLE Xlll
CITY OF KENAI, ALASKA
Miscellaneous Statistical Data
June 30, 2004
Date of Incorporation:
1960
Date Charter Adopted' May 20, 1963
Form of Government:
Home Rule City
Area in Square Miles: 45
Miles of Streets: 62
Miles of Sewer:
Storm: 10
Sanitary: 68
Fire Protection:
Number of Stations:
Number of Employees:
2
16
Police Protection:
Number of Stations:
Number of Employees:
1
17
Recreation:
Number of Facilities:
Parks: 9
Ball Fields: 11
Recreation Center: 1
Fitness Trails: 2
Cross Country Ski Trails: 1
Multi-Purpose Facility 1
City employees as of June 30, 2004:
124
Elections:
Number of Registered Voters:
Percentage of Registered Voters Voting
in last General Election:
Population:
7,125
4,943
31%
8O
~, AGENDA
'~, '~ KENAI CITY COUNCIL- REGULAR MEETING
~..~,,,~,~.~. _,,,~~,~,,.X,~-" NOVEMBER 17, 2004
~---~_.~ 7:00 P.M.
~----"~~-// KENAI CITY COUNCIL CHAMBERS
~mu.~uts~ http ://www. ci.kenai.ak, us
6:00 P.M. BOARD OF ADJUSTMENT HEARING -- Appeal of
Planning & Zoning Commission Denial of PZ04-43(a) -- An
Application for an Encroachment Permit for Side Yard Setback
for the Property Known as Lot 1, Block 6, Redoubt Terrace
Subdivision, Addition No. 3 (406 South Forest Drive), Kenai,
Alaska. Application Submitted by F. DeWayne and Diane E.
Craig, 406 S. Forest Drive, Kenai, Alaska. Appeal Submitted by
F. DeWayne Craig.
ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes)
1. Bill CoghilllMikunda Cottrell & Co. -- Comprehensive Annual
Financial Report
ITEM F: PUBLIC HEARINGS
1. Resolution No. 2004-59-- Transferring $3,500 in the General Fund t°
Obtain Cost Estimates for Phase I of the Soccer Park.
ITEM H: OLD BUSINESS
1. Presentation/Discussion -- Kenai Economic Development Strategy
Plan
ITEM I: NEW BUSINESS
1. Bills to be Paid, Bills to be Ratified
2. Purchase Orders Exceeding $2,500
3. Approval -- Hangar Purchase and Lease Application/Lot 2, Block 3,
General Aviation Apron (Former Fish & Wildlife Hangar Property) to
Richard Page, d/b/a SOAR International Ministries, Inc.
4. Approval -- Consents to Sublease From SOAR International
Ministries, Inc. to:
a. Lot lA, Block 2, General Aviation Apron
(1) Arctic Barnabas Ministries
(2) Peninsula Aero Technology
b. Lot 3, Block 1, General Aviation Apron
(1) Kenai Express
5. Discussion -- Boating Facility Exit Road
EXECUTIVE SESSION -- None Scheduled.
ITEM P: ADJOURNMENT
The public is invited to attend and participate. Additional information is
available through the City Clerk's office at 210 Fidalgo Avenue, or visit our
website at http://www.ci.kenai.ak.us.
Carol L. Freas, City Clerk D901/211
MAKE PACKETS
COUNCIL PACKET DISTRIBUTION
COUNCT. L MEET'~NG bATE:
/I 'LI,
Ma¥o~/Council Attorney ~, Ta¥1o~/$p~in~e~/Kebschull
Clerk ~ City Mono~er ~' Public Works
Police Department * Finance ~ Engineer
.Senior Center w, Airport ~ Kim
Library ~, Parks & Recreation ~- Clarion
Fire Department ~' $chmidt ~ Mellish
AGENDA D]~$TRI~BUT~ON
.Sewer Treatment Plant .Streets
.Shop bock
Buildin~ Maintenance Animal Control
War er/.Sewer Count er
DELIVER
Council Packets to Police Department Dispatch desk.
The Clarion, Ol$on, Mellish & $chmidt'$ 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/document$/minutes/agenda form for paper) is emailed to Denise at
P¢ninsu/a c~/a~ion (at email folder Work Session/Special Meetings, or Composition in
Contacts or Ibell~acsalaska.net). Home Page documents (agenda, resolutions,
ordinances for public hearing, and ordinances for introduction) are usually emailed
to me and ~ hold them in my HTML file. Place them onto the city's web$ite with
Front Page from there as soon as possible before leaving the office for the
weekend.