The URL can be used to link to this page

Home My WebLink About2005-02-02 Council PacketKenai City Counci I Meeting Packet February 2, 2005 AGENDA KENAI CITY COUNCIL- REGULAR MEETING FEBRUARY 2, 200S 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www, ci.kenai, ak.u s ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY~ LEGISLATORS AND COUNCILS ITEM E: REPORTS OF KEN~ CONVENTION/l~ VISITORS BUREAU BOARD AND KENAI CHAMBER OF COMMERCE ITEM F: PUBLIC HEARINGS , Ordinance No. 2079-2005 -- Increasing Estimated Revenues and Appropriations by $10,000 in the General Fund for a Grant for Police Exercise Related Training Equipment. . Resolution No. 2005-03 -- Opposing Kenai Peninsula Borough Ordinance 2004-36, an Ordinance Amending KPB 5.18.430, Sales Tax Computation -- Maximum Tax, by Increasing it from $500 to $1000. . , ITEM G: Resolution No. 2005-04 -- Transferring $4,000 in the Airport Land System Special Revenue Fund for Maintenance and Repairs. Resolution No. 2005-05 -- Transferring $4,000 in the Water and Sewer Specie Revenue Fund to Purchase Appraisal Services. MINUTES o *Regular Meeting of January 19, 2005. ITEM H: OLD BUSINESS ITEM I: o NEW BUSINESS Bills to be Paid, Bills to be Ratified . Purchase Orders Exceeding $2,500 , *Ordinance 2080-2005 -- Adopting KMC 23.40.010(b) to Create an Employee Classification for Employees Hired Under the "Mature Alaskans Seeking Skills Training" (MASST) Program. . Approval -- City Attorney Job Description . Approval-- Lease Application -- Charles E. & Helen L. Tulin d/b/a Aviation Support Services, LLC/Portion of Tract A, General Aviation Apron No. 2. . Discussion -- Scheduling Work Sessions a. Title 17, Public Utility & Enterprises and Public Utility Regulation & Rates. b. Budget Work Session 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 FEBRUARY 2, 2005 REGULAR COUNCIL MEETING CHANGES TO THE AGENDA REOUESTED BY: No changes. CONSENT AGENDA No changes. MAYOR'S REPORT , Mat-Su Mayor Tim Anderson and Manager John Duffy will be in Kenai on February 28 to meet with Mayor, Council, Assembly Members, staff and offer a Knik Arm Ferry update. The meeting will held in the Kenai City Council Chambers and begin at 11:00 a.m. TESTIMONY SIGN-IN SHEET > wZw z~~ 0<~~ > w wZW Z~w Z 0 ~ wZW z~n'' LIJ Ww Z~~w Suggested by: Administra City of Kenai ORDINANCE NO. 2079-2005 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $10,000 IN THE GENERAL FUND FOR A GRANT FOR POLICE EXERCISE RELATED TRAINING EQUIPMENT. WHEREAS, the Kenai Police Department requires all officers to obtain a physical examination annually, and meet Alaska Police Standards Council health standards; and, WHEREAS, the Kenai Police Department employees must maintain themselves in good physical condition, amply sufficient to discharge their responsibilities at all times; and, WHEREAS, the City has received $10,000 from the Alaska Police Standards Council for police exercise related training equipment, specifically, a treadmill and a conventional cable with chin up bar; and, WHEREAS, it is in the best interest of the City to officers. have physically fit police NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: State Grants- Police $10,000 Increase Appropriations: Police- Machinery and Equipment $10,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of February 2005. ATTEST: PAT PORTER, MAYOR Carol L. Freas, City Clerk Approved by Finance' ( 1 / 13 / 2005) hl Introduced: Adopted: Effective' January 19, 2005 February 2, 2005 February 2, 2005 Suggested by: Adminis~ City of Kenai RESOLUTION NO. 2005-03 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA OPPOSING KENAI PENINSULA BOROUGH ORDINANCE 2004-36, AN ORDINANCE AMENDING KPB 5.18.430, SALES TAX COMPUTATION- MAXIMUM TAX, BY INCREASING IT FROM $500 TO $1000. WHEREAS, the Kenai Municipal Code 7.10.050 adopts the Borough Sales Tax Code by reference; and, WHEREAS, the primary reason a maximum taxable sale provision is in the sales tax code is to prevent the sales tax from being a competitive disadvantage to Borough businesses compared to their non-taxable competition from outside the Borough; and, WHEREAS, increasing the maximum taxable sale from $500 to $1,000 would increase the total tax on a $1,000 sale made inside the City from $25 to $50; and, WHEREAS, the sales tax on a $1,000 sale made outside the City but within the Borough would increase from $10 to $20, which would be $30 less than the same sale made in Kenai; and, WHEREAS, the difference in the sales tax on a $1,000 sale made in Anchorage or via the Internet, compared to the same sale made within the City would increase to $50; and, WHEREAS, these changes in the amount of sales tax on individual sales of $1,000 or more could put businesses located in the City at a significant competitive disadvantage to their competition outside the City; and, WHEREAS, raising the maximum taxable sale from $500 to $1000 may have unintended impacts on sales tax revenues of the City of Kenai. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OFTHE CITY OF KENAI, ALASKA, that: Section 1' The City Council of the City of Kenai opposes Kenai Peninsula Borough Ordinance 2004-36, an Ordinance amending KPB 5.18.430, Sales Tax Computation- Maximum Tax, by increasing it from $500 to $1000. Section 2' That this resolution be sent to Gary Superman, the President of the Kenai Peninsula Borough Assembly through the Borough Clerk for consideration by the Assembly when Ordinance 2004-36 is heard. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of February, 2005. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk (9 / 21 / 2004) hl Suggested by: City of Kenai RE, SOLUTION NO. :2005-04 Administr. A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA TRANSFERRING $4,000 IN THE AIRPORT LAND SYSTEM SPECIAL REVENUE FUND FOR REPAIRS AND MAINTENANCE. WHEREAS, the Airport Land Department repair and maintenance account budget is completely sPent due to unexpected boiler repairs; and, WHEREAS, the City administration estimates that $4,000 will be needed for repairs and maintenance for the remainder of the fiscal year; and, WHEREAS, funds are available in the Land Department Contingency account. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following budget transfers be made' Airport Land System Special Revenue Fund From: Land - Contingency $4,000 To: Land - Repair and Maintenance $4,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this Second day of February 2005. PAT PO RTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance' (~ / ~7 / ~.005) m Suggested by: Administ .... City of Kenai RESOLUTION NO. 2005-05 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA TRANSFERRING $4,000 IN THE WATER AND SEWER SPECIAL REVENUE 'FUND TO PURCHASE APPRAISAL SERVICES. WHEREAS, the City is in the process of purchasing land from the State of Alaska for the Wellhouse 4 site; and, WHEREAS, an appraisal is required; and, WHEREAS, funds are available in the Water Department Contingency account. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following budget transfer be made: Water _and Sewer Special Revenue Fund From: Water- Contingency To' Water- Professional Services $4,000 $4,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this Second day of February, 2005. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: (01 / 28 / 2005) hl AGENDA KENAI CITY COUNCIL- REGULAR MEETING JANUARY 19, 2005 7:00 P.M. KENAI CITY COUNC~ CHAMBEI~ http' //www.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) , Donna Peterson, KPB School Superintendent-- Transitions Occurring in the Local Schools and General Briefing. ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: ITEM E: I~RPORTS OF KPB ASSEMBLY~ LEGISLATORS AND COUNCILS RRPORTS OF KENAI CONVENTION/h VISITORS BUREAU BOARD AND KENAI CHAMBER OF COMMERCE ITEM F: PUBLIC HEARINGS , Ordinance No. 2076-2005 -- Increasing Estimated Revenues and Appropriations by $150,892 in the Senior Center Kitchen Capital Project Fund. , Ordinance No. 2077-2005 -- Increasing Estimated Revenues and Appropriations by $36,000 in the General Fund to Replace Radio Communication Equipment. a, Substitute Ordinance No. 2077-2005 -- Increasing Estimated Revenues and Appropriations by $26,000 in the General Fund Communications Department to Replace Radio Communication Equipment. . ~Liquor License Renewals -- · L/hi Enterprises, Inc., d/b / a Three Bears · Oaken Keg Spirit Shops, Inc., d/b/a Oaken Keg Spirit Shop # 1808 Peninsula Oilers Baseball Club, Inc., d/b/a Peninsula Oilers #846 · George & Ekaterini Pitsilionis, d/b/a Pizza Paradisos · KMart Corporation, d/b/a KMart Liquor #3623 . ITEM G: , ITEM H: , ITEM I: , , , , , ITEM J: ,, , 2. 3. 4. 5. 6. Liquor Licenses -- Objection to Continued Operation · Alaskalanes, Inc., d/b / a Alaska_lanes Bowling Center · Paul M. & Sandra J. Vozar, d/b/a Old Town village Restaurant · Kings Inn property Management LLC, d/b/a Kings Inn Hotel, Restaurant & Lounge, LLC · Amy & George Bowen, d/b/a One Stop MINUTES *Regular Meeting of January 5, 2005. OLD BUSINGS Approval-- Kenai City Council Student Representative Policy NEW BUSINESS Bills to be Paid, Bills to be Ratified Purchase Orders Exceeding $2,500 *Ordinance No. 2078-2005 -- Amending KMC Title 17 Entitled, "Public Utilities and Enterprises" and "Public Utility Regulations and Rates." *Ordinance No. 2079-2005 -- Increasing Estimated Revenues and Appropriations by $10,000 in the General Fund for a Grant for Police Exercise Related Training Equipment. Discussion-- Town Clock COMMISSION/COMMITTEE REPORTS Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission o 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 o City Manager Attorney City Clerk ITEM M: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION- None Scheduled ITEM N: ADJOURNMENT KENAI CITY COUNCIL- REGULAR MEETING JANUARY !9, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http'//www.ci.kenai.ak.us MAYOR PAT PORTER, PRESIDING MINUTF~ ITEM A: CALL TO ORDER Mayor Porter called the meeting to order at apprommately 7'00 p.m. in the Council Chambers in the Kenai City Hall Building. A-X. PLEDGE OF ALLEG~CE Mayor Porter led those assembled in the Pledge of Allegiance. A-2. ROLL CALL Roll was taken by the City Clerk. Present were: Pat Porter, Mayor Joe Moore, Vice Mayor Linda Swarner Cliff Massie Rick Ross Blaine Gilman James N. Buffer, III A quorum was present. A-3o AGENDA APPROVAL MOTION: Council Member Moore MOVED for approval of the agenda as presented and Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA MOTION: Council Member Moore MOVED to approve the consent agenda as presented and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. Council Member Ross requested Ordinance No. 2078-2005 be removed from the consent agenda and placed on the regular agenda. There were no objections. MOTION TO AMEND: KENAI CITY COUNCIL MEETING JANUARY 19, 2005 PAGE 2 Council Member Moore MOVED to approve the consent agenda as amended and Council Member Swarner SECONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS B-I. Donna Peterson, KPB School Superintendent -- Transitions Occurring in the Local Schools and General Briefing. Dr. Peterson reviewed information included in the packet regarding general operations of the School District in Kenai; administrator changes effective at the end of this school year; planning for the future with the economic changes to taking place in the area; as well as, funding concerns and home schooling issues. ITEM C: UNSCHEDULED PUBLIC COMMENTS-- None. ITEM D: , I~.PORTS OF I~P_~ ASSRM__RLY, LEGISLATORS AND COUNCH, S Dan Chay, Kenai Peninsula Borough Assembly Member -- Chay reported on actions taken by the Assembly at their January 18 meetin§, includin§ the passa§e of the ordinance to appropriate funds for a multipurpose response center in Soldoma. He stated the Assembly appreciated the presentation offered by the City and the assistance it §ave in deflnin§ what the fire trainin§ facility has to offer and the City's future plans for the buildin§. When asked about school funding, Chay noted the Assembly's challenge in facing a deficit, is to determine what cuts can be made without cutting services, how to raise revenue, etc. ITEM E: I~.PORTS OF KRNA~ CONVENTION/h VISITORS BUREAU _~OA~r) ~ND KENAI CHAMBER OF COMMERCE Mya Renken, Executive Director, Kenai Convention/~ Visitors Bureau -- Renken gave an overview of activities at the Center, including: · They are aware of a bed tax ordinance being drafted and will reserve comments until after it is reviewed. Assembly Member Glick has been requested to attend their next board meeting to discuss the issue. · They are working with the Kenai Chamber to identify special needs children to participate in the dog sled race during the Peninsula Winter Games. · The KEDS public forum will be held at the Visitors Center on February 5. They will begin limited Saturday hours. · They are formulating their budget. · KCVB th-fold rack cards are being printed and will be available in April. KEN~ CITY COUNCIL MEETING JANUARY 19, 2005 PAGE 3 Mayor Porter gave an overview of the Kenai Chamber of Commerce awards presentations held on January 8. ITEM F: PUBLIC HEARINGS F-Xo Ordinance No. 2076-2005 -- Increasing Estimated Revenues and Appropriations by $150,892 in the Senior Center Kitchen Capital Project Fund. MOTION: Council Member Swarner MOVED for approval of Ordinance No. 2076-2005 and Council Member Massie SECONDED the motion. There were no public comments. Senior Director Craig stated the estimated total cost of the project to be $281,704 and reviewed grant funds expected to cover the cost of the project. VOTE: Porter Yes Moore Yes Swarner Yes Massie Yes Ross Yes Gilman Yes Buffer Yes MOTION PASSED UNANIMOUSLY. F-2o Ordinance No. 2077-2005 -- Increasing Estimated Revenues and Appropriations by $36,000 in the General Fund to Replace Radio Communication Equipment. F-2a. Substitute Ordinance No. 2077-2005 -- Increasing Estimated Revenues and Appropriations' by $26,000 in the General Fund Communications Department to Replace Rad/o Communication Equipment. MOTION: Council Member Gilman MOVED for approval of Substitute Ordinance No. 2077-2005 and Council Member Moore SECONDED the motion. There were no public comments. Kenai Police Chief Kopp reported the funds would replace radio communications equipment; the replacement was not related to 911 services; and, the difference in the original ordinance and the substitute was the cost for the combiner. Kopp explained, the price of the combiner in the original ordinance KENM CITY COUNCIL MEETING JANUARY 19, 2005 PAGE 4 was in error. He also noted, the radio equipment would allow police, fire and public safety to be on the same frequencies and they will also be able to select other frequencies. VOTE: Porter Massie Buffer Ycs Ycs Ycs Moore Ross Ycs Ycs Gilman Yes Yes MOTION PASSED UNANIMOUSLY. F-3. Liquor License Renewals -- · I2~ Enterprises, Inc., d/b / a Three Bears Oaken Keg Spirit Shops, Inc., d/b/a Oaken Keg Spirit Shop # 1808 · Peninsula Oilers Baseball Club, Inc., d/b/a Peninsula Oilers #846 · George & Ekaterini Pitsilionis, d/b / a Pizza Paradisos · KMart Corporation, d/b/a KMart Liquor #3623 Approved by consent agenda. F-4. Liquor Licenses -- Objection to Continued Operation · Alaska_lanes, Inc., d/b / a Alaskalanes Bowling Center · Paul M. & Sandra J. Vozar, d/b/a Old Town village Restaurant · Kings Inn property Management LLC, d/b/a Kings Inn Hotel, Restaurant & Lounge, LLC · Amy & George Bowen, d/b/a One Stop City Clerk Freas reviewed a memorandum included in the packet explaining code direction related to liquor licenses. MOTION: Council Member Swamer MOVED to direct the City Clerk to forward a letter protesting the continued operation of the Alaskalanes, Inc., d/b/a Alaskalanes Bowling Center; Paul M. &, Sandra d. Vozar, d/b/a Old Town Village Restaurant; Kings Inn Property Management LLC, d/b/a Kings Inn Hotel, Restaurant &, Lounge LLC; and, Amy &, George Bowen, d/b/a One Stop liquor licenses ff accounts are not current by ,January 31, 2005. Council Member Massie 8~I2Ol~ED the motion. KENAI CITY COUNCIL MEETING JANUARY 19, 2005 PAGE 5 Council Member Gilman declared a conflict with the action. City Attorney Graves explained, though Kmart had declared bankruptcy and was no longer in business in Kenai, their license remained an asset of the bankruptcy court and was being kept current. Additionally, revocation of the license cannot be sought due to tax obligations as it would be in violation of the stay order. VOTE: Porter Yes Moore Yes Swamer Yes Massie Yes Ross Yes Gilman Yes .. Buffer Yes MOTION PASSED UNANIMOUSLY. ITEM G: MINUTES Regular Meeting of January 5, 2005 -- Approved by consent agenda. ITEM H: OLD BUSINESS , ,, H-lo Approval-- Kenai City Council Student Representative Policy · No. 5, · No. 6, · No. 7, youn~ people." Council reviewed the document and noted corrections and amendments' "...absence o__f the student representative." "... [AN] a lona-term interest..." "...to council members about policies impacting [STUDENTS] No. 9, "...affecting [STUDENTS] young people and copies of all written reports regarding their service be provided to the Kenai Ci_ty Council through the City Clerk's Office. Porter also reported the document had not yet been forwarded to the high school for review. A brief discussion took place and it was suggested the changes be incorporated into the document and then the document be forwarded to the high school for review. The document will return to council for final consideration upon the school's review. ITEM I: NEW BUSINESS I-1. Bills to be Paid, Bills to be Ratified MOTION: KENAI CITY COUNCIL MEETING JANUARY 19, 2005 PAGE 6 Council Member Moore MOVED to pay the bills and Council Member Swarner SECONDED the motion and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. I-2o Purchase Orders Exceeding $2,500 MOTION: Council Member Moore MOVED to approve the purchase orders exceeding $2,500 and Council Member Massie SECONDED the motion. VOTE: Porter Yes Moore Yes Swarner Yes Massie Yes Ross Yes Gilman Yes Buffer Yes MOTION PASSED UNAN~OUSLY. I-3o Ordinance No. 2078-2005 -- Amending KMC Title 17 Entitled, "Public Utilities and Enterprises" and "Public Utility Regulations and Rates." Removed from the consent agenda for introduction. MOTION: Council Member Ross MOVED for introduction of Ordinance No. 2078-2005 and Council Member Swarner SECONDED the motion. There were no public comments. Council Member Ross stated his desire to table or defeat the introduction of the ordinance because many of the elements of the ordinance would make changes to the fee structures and deposits. He added, he would prefer discussing the issue during budget work sessions or an individual work session. Ross also requested the ordinance indicate the changes being made when it comes before council during the work session. It was indicated, the review of the water/sewer ordinance had been a long-time project, was recently completed, and brought forward. The suggested amendments were not time sensitive. Whether to complete the introduction of the ordinance or to table it and .bring it back for consideration after the budget work sessions was discussed. City Attorney Graves advised, an option for council would be to unanimously suspend the rules and then KENAI CITY COUNCIL MEETING JANUARY 19, 2005 PAGE 7 remove the introduction of the ordinance. The ordinance could then be brought back for council's consideration in the spring during the budget process. MOTION: Council Member Ross MOVED to follow the suggestion of the city attorney and Council Member Swarner SECONDED the motion. MOTION: Council Member Buffer MOVED to suspend the rules, remove Ordinance No. 2078- 2005 from the agenda and the introduction revoked. It was noted, two motions were on the table. Council Member Ross requested his motion be withdrawn with the concurrence of the second. Council Member Swarner had no objections to the withdrawal of the motion. VOTE: Council Member Gilman SECONDED the motion. There were no objections. SO ORDERED. Ordinance No. 2079-2005 -- Increasing Estimated Revenues and Appropriations by $10,000 in the General Fund for a Grant for Police Exercise Related Training Equipment. Introduced by consent agenda. Discussion -- Town Clock Mayor Porter referred to the memorandum included in the packet. She noted, $5,000 was included in the last budget to purchase a town clock. From information received from several clock manufacturers, it was acknowledged a clock would cost more than $5,000. Porter noted, the memorandum suggested the issue be forwarded to the Parks & Recreation Commission for review and a recommendation. There were no objections from council. ITEM J: COMMISSION/COMMITTEE REPORTS J-1. Council on Aging -- Council Member Swarner reported she attended the meeting and reviewed the meeting summary which was included in the packet. She noted, Bill Osbom and ,Joe Harris were re-elected as Chair and Vice Chair. KENAI CITY COUNCIL MEETING JANUARY 19, 2005 PAGE 8 J-2. Airport Commission -- Swarner reported, the regular January meeting was cancelled. The next regular meeting is scheduled for February 15. Clerk Freas also reported a specie meeting will be held at 6'00 p.m., January 26, 2005 to review and make recommendation on a lease application. J-3. Harbor Commission -- Council Member Massie reported a short meeting was held on Janum-y 10 and reviewed the meeting summary which was included in the packet. He noted, Tom Thompson and Jay Barrett were elected as Chair and Vice Chair. J-4. Library Commission -- Council Member Gilman reported the January meeting had been cancelled. J-5. Parks/h Recreation Commission -- Council Member Moore reported the meeting was cancelled due to a lack of quorum. However, a brief work session was held at which time the potential of a donation of property along Spur Hi~hway was discussed. The issue will be returned to the Commission's agenda for their February meeting. Porter asked ff the fee schedule had been reviewed. Director Frates noted, the schedule was included in the Commission's packet for review as the City Manager Approves fee changes. J-6. Planning/h Zoning Commission -- Council Member Ross reported the meeting minutes were included in the packet and reviewed the actions taken by the Commission, including common interest ownership (condominiums) at Kenai Landing, Inc., preliminary plat approval, and a preliminary discussion related to providing an exemption from acquiring home occupation permits for day care providers who are relatives of the children attending the day care. J-7. Miscellaneous Commissions and Committees J-7a. Beautification Committee -- Swarner reported the January meeting had been cancelled. J-To. Alaska Municipal League Report-- Swarner reported she would attend her Legislative committee meeting by teleconference on January 24. J-7c. Arctic Winter Games -- Parks & Recreation Director Frates reported three members of the International Committee were attendance at the January 13 meetin§. Representatives of the Games have stated their desire to attend the Februm-y 2 council meetin§ and ~ive an update to council related to the use of the multipurpose facility for the Games. J-7d. Stranded Gas Committee -- Ross reported he attended a meeting via ' teleconference where those attending received an update of proposals. KENAI CITY COUNCIL MEETING JANUARY 19, 2005 PAGE 9 ITEM It: REPORT OF THE MAYOR -- Mayor Porter reported the following: · Efforts are being made to use the City's emergency operations facility to its fullest capacity. · She has requested a report on the ownership of vacant buildings in the city. Upon receiving the information, she intends to make contact with the owners and ask their plans for the buildings. She will travel to Juneau to attend the Alaska Conference of Mayors meeting next week. · There were several people who attended her "coffee with the Mayor." Items discussed were the dock facility, snow removal, recreation, and issues with the KEDS report. She will hold the next "coffee" in April or March. She would like to send letters to all the City commission/committee chairs and ask them to contact their members prior to meetings to guarantee quorums and requested council's approval. Council stated no objections. · She plans to attend the National League of Cities conference in Washington, DC in March and while there visit with the congressional delegation regarding the coastal trail project. She suggested (former) Mayor Williams travel there on behalf of the city because of his knowledgeable background on the issue and his familiarity with the delegation, their staff, etc. Porter asked if council had any objections. A brief discussion followed and no objections were stated. ITEM L: ADMINISTRATION REPORTS,. L-1. City Manager-- City Manager Snow reported the following: · The department reports were included in the packet. · Alaska Department of Environmental Conservation awarded a joint municipal grant to the City of Kenai and City of Soldotna for water/sewer system analysis which was conceived when the Kenai and Soldotna councils met together last year. An effort to schedule a second meeting between the councils has been unsuccessful. Snow asked council for direction, i.e. whether to continue with scheduling a joint meeting or Kenai proceed with its own scope of project, leaving the door open for a joint project. Mayor Porter stated she would contact Mayor Carey about the issue and discuss it further with Snow. · She is working with the Senior Connection to identify property to use as a site for an assisted living facility. The Redoubt Avenue property, discussed previously, was a foreclosure and further review is necessary related to donation of property by the city. The Connection will be meeting with borough officials regarding other properties. They have not found other property within the city that will fit their need other than the Redoubt property. · She has learned there will be a new proposal for location and operation of ice-making equipment coming from the Cook Inlet Salmon Board. She has been included on their mailing list and she is continuing conversations with Ted Smith and his interest in the possible use of dock facility space. KENAI CITY COUNCIL MEETING JANUARY 19, 2005 PAGE 10 * She, Police Chief Kopp and Finance Director Semmens attended a very successful E-911 meeting at the borough, along with the other city managers in the borough. They were advised the borough would continue the contract with the municipalities and they will be making the agreed payments. Moore requested additional information related to the ice plant proposal. Snow stated, the initial proposal was for Phase I for which proposals were received, opened and reviewed. An additional request for proposals will be advertised for the location and operation of the ice-maldng equipment. L-2o Attorney -- City Attorney Graves reported' · He previously reported the City received a letter from Cigna with a proposed settlement of $63,000 related to a class action lawsuit. Since then, another letter, with a tabulated breakdown of the City's loss history, was received. Upon review~g this information, administration now felt it would be advantageous to submit a request for an additional payment of approximately $22,000. If the second request is denied, the City would still receive the initial $63,000 award payment. · As requested by Mayor Porter, his draft job description was included in the packet. He requested comments from council. He will submit the document for approval at the February 2, 2005 council meeting. L-3. City Clerk -- City Clerk Freas noted she had distributed to council the 2005 APOC Financial Disclosure forms for councirs completion; research information on past council discussions related to special assessment districts; and, a draft Legislative budget for their review. ITEM M: DISCUSSION M- 1. Citizens -- None. M-2. Council -- Moore -- · Stated his concems the chambers' sound system needed some attention. Snow noted she had recently had a conversation with Clerk Freas and Public Works Manager La Shot in that regard and it is a priority item of concern and they will be following through to f'md a solution. Thanked Fire Chief Walden, Police Chief Kopp and City Manager Snow for their presentation before the Borough Assembly related to the City's OEM facility. Swarner-- · Reported Betty Nelson, a long-time resident of the area and past member of the Council on Aging, passed away. Her memorial service was planned to be held at the Senior Center on Saturday. ~NAI CITY COUNCIL MEETING JANUARY 19, 2005 PAGE 11 · She attended the Kenai Chamber luncheon to hear a presentation from Unocal regarding the renewal of their Environmental Protection Agency permit. She requested administration bring forward a resolution supporting the continuance of the permit when it is timely. · Reported an incident with a snow machine being operated on a city street and requested extra patrols of that area. Ma~i~ -- Agreed with giving some attention to the chamber sound system. Ro~ -- Requested insurance savings program information be discussed at one of the budget work sessions. Gilman-- No comments. Butler -- · Read with interest the "Fish On" newsletter regarding the last fishing season. He added, it was nice to see old time industries coming back. He was unable to participate in the discussions relating to the emergency operations center due to his involvement with the shipwreck/oil spill at Unalaska. He noted, because disasters do not know boundaries, it is important for the area to be as prepared as possible. Porter -- Thanked administration for the building permits, Planning & Zoning resolution, etc. reports included in the packet. EXECUTIVE SESSION- None Scheduled ITEM N: ,, ADJOURNMENT The meeting adjourned at approximately 8'54 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk Z n,'Z (:3 w n,' Z LU n Z Z Z Z LU 0 I.IJ UJ 0 z 0 z m o o 0 n,' F- ILl J Z n,' Ltl 0 Z I-- I-- Z 0 Z ILl -r' Z Z Z u.I '1" 0 d Z >. n,' ILl Z 0 Z Ltl LLI LIJ ::3 W Z n,' uJ 1- I-- 0 Z Z 0 0 0 d 0 Z w LLI UJ uJ o> 217 Second Street, Suite 200 · Juneau, Alaska Tel (907) 586-1325 · Fax (907) 463-5480 · www. January 14, 2005 Mayor and Council/Assembly Members City of Kenai 210 Fidalgo Ave., St. 200 Kenai, AK 99611 Dear Mayor and Council/Assembly Members, Enclosed is the invoice for your 2005 AML Membership dues which enable you to join 137 other cities and boroughs throughout the state. AML is pleased that we have not implemented a dues increase in ten years. With your continued support, the voice of Alaska municipal governments will be strongly heard at the State and Federal levels. During this upcoming critical year, AML's top legislative priorities are: · Annual state revenue for communities; · State fiscal responsibility for PERS cost increases to municipalities; · Forward funding of education; · Percent of Market Value (POMV) Endowment plan; · To strengthen jobs, economic development and transportation; · Endow Power Cost Equalization (PCE) The power of information and joint action by municipalities was evident in inclusion in the Governor's budget of the Small Community Energy Assistance Program, and two-year municipal funding for PERS costs. In addition, AML has increased influence on the national level by securing leadership positions in the National League of Cities and the National Association of Counties, AML has increased influence on the national level by: · Helping to maintain federal PILT revenue sharing for Alaskan communities; · Helping to direct over $100 million from Denali Commission to municipalities; · Helping to advocate for Alaskan resource development. AML also offers municipal insurance; a municipal investment pool; national office supply discounts; training opportunities; publications and research; local government help; and up-to-date state and national information on issues and legislation. We know that times have been tough for many Alaskan communities. We at AML commit to doing all we can to help Alaskan municipalities be healthy and vibrant places to live. We ask you to commit to joining with other municipalities to provide a united front on municipal priorities. Please call me toll free at 1 (877) 636-1325 for further information or to learn more about AML policies and services. You all have expertise in specific areas that can be of valuable importance toward our goal of strong communities. If you have any suggestions of how we might do our job better, please don't hesitate to call me at any time. Sincerely, Kevin Ritchie Executive Director Member of the National League of Cities and the National Association of Counties Suggested by: Admi CITY OF KENAI ORDINANCE NO. 2080-2005 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADOPTING KMC 23.40.010(b) TO CREATE AN EMPLOYEE CLASSIFICATION FOR EMPLOYEES HIRED UNDER THE "MATURE ALASKANS SEEKING SKILLS TRAINING" (MASST) PROGRAM. WHEREAS, the State of Alaska has a program called "Mature Alaskans Seeking Skills Training" (MASST); and, WHEREAS, the State of Alaska reimburses the employer for wages, Worker's Compensation, employer's Social Security contribution and Medicare costs; and, WHEREAS, the MASST program is designed to provide skills training in a part-time employment setting for unemployed, low-income Alaskans who are 55 years or older; and, WHEREAS, the program would not be economically viable for the City of Kenai if it were required to pay the employee benefits set forth in KMC 23.40, such as annual leave, medical insurance or participation in the Public Employee Retirement System; and, WHEREAS, the City must create a separate employee classification for MASST employees under KMC 23.40 in order to participate in the program. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that KMC 23.40.010 is amended by adding a new section (KMC 23.40.010(b)) as set forth below. 23.40.010 General (a) All non-temporary full time and non-temporary part-time (15 hours and over per week} classified employees are entitled to the following benefits, except for Medical and Hospital insurance which shall be available to non-temporary employees working no less than 25 hours per week, as specified in this article. {b} An employee hired under the State of Alaska's Mature Alaskans Seeking Skills Training {MASST] program shall receive only Social Security_, Medicare (KMC 23.40.130), Workers Compensation (KMC 23.40.110) and Family Leave {KMC 23.40.130) benefits. The other benefits in KMC 23.40 shall not apply to persons hired under the MASST program. The hourly wage paid a MASST employee shall be as set by the State of Alaska, but not less than minimum wage. Ordinance No. 2080-2005 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16t~ day of February, 2005. ATTEST: PAT PORTER, MAYOR Carol L. Freas, City Clerk Introduced: Adopted: Effective: February 2,2005 February 16, 2005 March 16, 2005 (1/26/05 - sp) CITY OF KENAI LEGAL DEPARTMENT JOB DESCRIPTION - CITY ATTORNEY 'ff Position' City Attorney Service Type: Supervisory and Professional~Exempt Definition: This is professional legal and administrative work of a highly responsible nature in directing the legal activities of the City. The City Attorney is the principal executive officer of the Legal Department, serves as the chief legal advisor to the City, and is responsible for providing legal services for the Council, City Manager, all departments and officials of the City. Responsibilities include planning, staffing and supervising a department for meeting the legal service needs of the City. Work is performed with technical independence subject to compliance with the law and review by the courts. Minimum Qualification' Admission to practice law in the State of Alaska. Desirable Qualifications' o Considerable experience in the practice of law, including trial litigation and appellate experience in Alaska. . Several years of experience in the general practice of law in the State of Alaska with some experience in the fields of Alaska municipal law and real estate law. o A thorough knowledge methods of legal research and legal reference. . Knowledge of federal, state and municipal law, as well as civil and criminal law, including the constitutional and statute law pertaining to Alaska municipal government law. o Knowledge of legal requirements relating to the authority and functions of City departments. o Knowledge of judicial procedures, roles of evidence, and court practice in the state and federal courts in Alaska. o Knowledge and skill in legal research, methodology and draftsmanship. o Knowledge of established precedents and sources of legal reference applicable to City legal activities. JOB DESCRIPTION - CITY ATTORNEY Page 1 of 3 . 10. 11. 12. 13. Ability to organize, interpret and apply legal principles and knowledge to complex legal problems in drafting sound legal opinions and in preparation of a wide variety of legal documents. Ability to communicate clearly and concisely, orally and in writing. Ability to use computer proficiently and have knowledge of office procedures. Ability to work independently, without close supervision. The ability to establish and maintain effective working relationships with the City Council, City Manager, department heads and other public officials, and the general public. Essential Functions: Administers the Legal Department of the City, including preparing the budget, monitoring expenditures and preparation of the City Code, and supervising the Legal Administrative Assistant. . Performs all legal services of the City, including those of legal advisor to the Council, City Manager and other City officers. o Represents the City in matters, civil and criminal, coming before any court or administrative agency. . Drafts ordinances and resolutions requested by the Mayor or City Manager. o Drafts and approves the form and legal sufficiency of contracts and other similar documents to which the City is a party. , Fumishes necessary legal certificates required by state and federal agencies. , Supervises the work of outside counsel or legal specialists retained by the City. o Advises the Council, City Manager and other City personnel on legal issues. . Participates in a wide range of activities related to risk management of the City. 10. Administers collection efforts by the Legal Department. 11. Acts as City prosecutor. 12. Supervises processing of traffic citations by.the Legal Department. JOB DESCRIPTION- CITY ATTORNEY Page 2 of 3 Other Functions: Performs such other duties as may be required by the Council, City Manager and City departments. Physical Demands: While performing the duties of this job, the employee is frequently required to communicate orally and to use hands and fingers dexterously to operate office equipment; regularly required to sit; and occasionally required to stand, walk, and reach with hands and arms. Very occasionally required to transport up to 50 pounds. Specific vision abilities required include close vision and the ability to adjust focus. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. Working Environment: Most duties are performed in an office setting. Some duties are performed in a courtroom or public meeting setting. Miscellaneous Information' Employment is based on qualifications free of personal and political considerations, with equal opportunity for all with no restrictions as to race, color, creed, religious affiliations, age or sex. The City does not discriminate against the qualified disabled in employment. JOB DESCRIPTION- CITY ATTORNEY Page 3 of 3 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ l~J~2 M emoranClum Date: To: For: From: January 27, 2005 Linda L. Snow, City Manager February 2nd C°uncil Meeting ~~/ Kim Howard, Assistant to the City Manager Lease Application, Charles E. & Helen L. Tulin d/b/a Aviation Support Services, LLC- Portion of Tract A, General Aviation Apron No. 2 Charles E. and Helen L. Tulin dPo/a Aviation Support Services, LLC have submitted a lease application for a portion of Tract A, General Aviation Apron No. 2. The property is in the process of being subdivided as shown on the attached Preliminary General Aviation Apron No. 4 plat. The Tulins propose to lease Tracts A-1 and A-2 under a 55-year term. The purpose is to construct a hub for Federal Express and general aviation support with an estimated construction cost of $2.5 million. The development plan for Tract A-1 is shown on the drawing in their lease application. Tract A-2 will be used for transient aircraft parking. The applicants are also exploring the possibility of constructing T-hangers on this tract. Tract A-3 will be reserved by the airport for additional transient aircraft parking in accordance with the current Airport Masterplan. KMC 21.10.080 states the term shall depend upon the durability of the proposed use, the amount of investment in improvement proposed and made, and the nature of the improvement proposed with respect to durability and time required to amortize the proposed investment. The FAA has agreed that the City may apply the criteria used by the State in 17 AAC 45 for their airport leases. This application meets the criteria that allows for a 55-year lease for a $2.5 million investment. Prior to leasing, an appraisal must be approved by the Federal Aviation Administration. The Airport Commission reviewed the application at their January 26th special meeting and determined the intended use complies with the Airport Masterplan. Also, at their meeting of January 26th, the Planning and Zoning Commission determined the intended use complies with the zoning ordinance and Comprehensive Plan of the City. KMC 21.10.080 requires all leases to be approved by the City Council. If Council approves the lease application submitted by Charles E. and Helen L. Tulin d/b/a Aviation Support Services, LLC, an appraisal will be ordered. Cc' /kh Charles E. and Helen L. Tulin d/b/a Aviation Support Services, LLC Rebecca Cronkhite, Airport Manager Attachments FOR' CH~ USE ~O~y Name of Applicant. Address_ Business Name and Address CITY OF KENAI 210 Fidalgo Avenue, Suite 200 Kenai, Alaska 99611-7794 (907) 283-7535 Ext. 223 LEASE APPLICATION ..... Kenai Peninsula Borough Sales Tax No. (if applicable) State of Alaska Business License No. (if applicable) Legal Descripfi.o.g _ . . . . Term of Proposed Lease ~'~ , Description of Proposed Development (type, construction materials, size, etc.) Time Schedule for Proposed Development _ __ · Completion Date (maximum of two years)_ Estimated Value of Improvements $ APPLICANT'S SIGNATURe: . Date: .t 3-/3/~~ APPLICANT'S SIGNATUI~?/~~_ff~..,_: .~_ __~___~'.~t'~ __~ .?¢' Date: / 2./]/~ y DEC-03-~ 11:01 P. 01 CITY OF KENA! LE~E APPLICATION CI-~CKLIST (All items must be completed befor~ application can be accepted.) Attach a d~v~lopment plan drown to scale. Drawings do not need to be prepar~ by an architect or engineer. Show the layout ofthc lot and the location of nil prol~sed improvements. The drawings also ne,d to show the following. 7. ~atiorl plan (all emmnces, exits and on-site 8. Location of sign(s) - sign permit r~uit~ ..~'~~ 9. F~g- permit required ifheight is over 6' lO.Curb cuts (where applic,~l¢) 11. Building height 12. FAA Form 7460 Notice of Propo~ Construction (For construction ofbuildinp on airport had. This form is to b~ subraitmed to the FAA by the appli~. It oan bz downloaded from the FAA website '/// ~ h~_ :/_/www..,alaska. faa. gov/~~. Thc sitc hu a menu for forms, gZ//Y ~~' TOTAL P. 12)1 i ,g~' 1,6Z£ 3.0£J.0.00S g. \ _ , _ td.p.~, na~l $.28~42W. rd: 100.(30 /00 · S 28° 4~'w _ · . . $.28o..4 2'.W. al3geo x laC, City Waterline opprox. tit y Sewer : _ I .I CITY OF KENAI LEASE APPLICATION- CONDITIONS OF ACCEPTANCE (To be completed by the City) Kenai Peninsula Borough Parcel No. Zoning ._.7- Permits Required: · Conditional Use Permit Landscape Review · Building Permit · Sign Permit Assessments Insurance Limits Required Construction must begin by o / o ' Completion date for major construction Planning Commission Approval Date of Approval' By: .. -. · -: ./,:. :: /i:.i~'.:~¢,.,- .' ..... ' ...._ _.,';...,:,~;.Citv. Council Aooroval · """. '" ,:~'- ..... ':'""!:~"':' :' .' ~'"' --- Date of AOorOval: - ~.. . . Ci~ Clerk '-~':'" .. -' ' ,_ . . .::..~[~;., . .:~ .... - , . .." ., ,'..-, .;,. - . ..~,.~ ~, . ,... . . . ..-,._ ~; .', ..... ...... . ...... .:. :,:. "..~%d:.~7~./.:.p:- ...:..:-. -. .,. -,, .. ... :~:- , THIS AppLICATION WILL BE MADE A PART OF THE LEASE Februa 2005 MEETING SCHEDULE 2O 27 ! Library Commis- sion, 7p, Coun- cil Chambers 7 Harbo sion, 7p, Coun- Committee, 7p, cil Chambers Council Chambers 2 Council Meeting, 7p, Council Chambers 14 Planning & Zoning Commis sion, 7p, Coun- cil Chambers 21 President's Day/ HOLIDAY/CITY OFFICES CLOSED 22 3 Council on Aging, 10a, Senior Center Parks & Recre- ation Commis- sion, 7p, Coun- cil Chambers Airport Commis- sion, 7p, Coun- cil Chambers 12 28 17 23 Planning & Zoning Commis~ sion, 7p, Coun- cil Chambers 25 26 January S MT WT F S 1 2 3 4 5 6 7 $ 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 March S MT WT F S i 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 13 20 2? March 00§ February S MT WT F S I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 7 Harbor Commis- sion, 7p, Coun- cil Chambers 14 21 28 MEET'J:N6 5¢HEDULE 1 Library Commis- sion, 7p, Coun- cil Chambers 8 Beautification 9 Planning & ation Commis- sion, 7p, Coun- cil Chambers 10 Airport CommJs- Committee, 7p, Council Chambers 15 Zoning Commis sion, 7p, Coun- cil Chambers 16 sion, 7p, Coun- cil Chambers 17 Council Meeting, 7p, Council Chambers 22 23 Planning & Zoning Commis sion, 7p, Coun- cil Chambers 24 25 29 30 31 19 26 April S MT WT F S I 2 3 4 5 6 7 8 9 I 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 CITY OF KENAI FY 2006 BUDGET CALENDAR December 22, 2004 Budget Preparation Packets Distributed January 10, 2005 Overtime and New Positions Due to Finance January 17 City Administrator Decides On New Position Requests By This Date January 10- Feb 14 Finance Department Develops Revenue and Personnel Expense Estimates, Budget Formats & Tables January 31 Departmental Budget Submissions Due to Finance February 14- 16 Budget Draft Reviewed by Department Heads February 21 Consolidated Budget Submitted To Administrator March 1-11 Department Head Meetings With Administrator March 21 Administrator's Budget Draft Finalized April 1 April 11 Budget Package to Council Council Budget Work Session Additional meetings as needed May 5 Motion to Set City Attorney and City Clerk Pay, if Changing May 11 Council Work Sessions Completed May 18 Introduction of Budget Ordinance May 19 Publish Notice 7 days prior to Public Hearing June 1 Public Hearing of Budget Ordinance June 1 Mill Rate Resolution Adopted Must be provided to the Borough by 6/15 June 20 Publication & Distribution of Budget Completed Finance website updated April 2005 MEET N SCHEDULE 10 24 March S MT WT F S I 2 3 4 ~ 6 7 8 9 10 !1 12 13 14 15 16 17 15 19 20 21 22 23 24 25 26 27 28 29 30 31 May S MT WT F S '1 2 3 4 5 6 7 8 9 10 il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Library Commis- sion, 7p, Coun- cil Chambers II Harbor Commis- sion, 7p, Coun- cil Chambers 25 Beautification Committee, 7p, Council i Chambers 19 26 City Council ouncil on Meeting, 7p, I Aging, 10a, Council i Senior Cen~r Chambers Parks & Recre- ation Commis- sion, 7p, Coun- : cil Chambers 13 14 Planning & Air~ort Commis- Zoning Commis sion, ?p, Court- sion, 7p, Coun- cil Chambers cii Chambem 20 City Council Meeting, 7p, Council Chambers 27 Planning & Zoning Commis sion, 7p, Coun- cil Chambers 21 28 15 29 16 23 30 May 2005 MEETING SCHEDULE 15 22 29 Harbor Commis- sion, 7p, Coun- cil Chambers sion, 7p, Coun- cil Chambers 10 Beautification Committee, 7p, Council Chambers Meeting, 7p, Council Chambers 11 Planning & Zoning Commis sion, 7p, Coun- cil Chambers 16 23 3O Memorial Day/ HOLIDAY/CITY OFFICES CLOSED 24 31 18 City Council Meeting, 7p, Council 25 Aging, 10a, Senior Center Parks & Recre- ation Commis- sion, 7p, Coun- cil Chambers 12 Airport Commis- sion, 7p, Coun- cil Chambers 19 Planning & Zoning Commis sion, 7p, Coun- 26 cil Chambers 13 2o 27 14 21 April S MT WT F S i 2 3 4 5 6 7 8 9 1o 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 28 June S MT WT F S i 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 29 30 SPECIAL KENAI AIRPORT COMMISSION JANUARY 26, 2005 KENAI CITY COUNCIL CHAMBERS 6:00 P.M. AGENDA ITEM 1: ITEM 2: ITEM 3: ITEM 4: CALL TO ORDER AND ROLL CALL AGENDA APPROVAL NEW BUSINESS Discussion/Recommendation -- Lease Application -- Portion of Tract A, General Aviation Apron No. 2 -- Charles E. and Helen L. Tulin ADJOURNMENT SPECIAL KENAI AIRPORT COMMISSION JANUARY 26, 2005 KEN~ CITY COUNCIL CHAMBERS 6:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING MEETING SUMMARY ITEM 1: CALL TO ORDER AND ROLL CALL Chair Knackstedt called the meeting to order at approximately 6'07 p.m. The roll was confirmed as follows' Commissioners Present: Commissioners Absent' Others Present: J. Zirul, J. Bielefeld, H. Knackstedt, E. Mayer, J. Watkins C. Versaw and D. Haralson Airport Manager Rebecca Cronkhite and Council Member Linda Swarner ITEM 2: AGENDA APPROVAL MOTION: Commissioner Bielefeld MOVED to approve the agenda as presented and Commissioner Zirul SECONDED the motion. There were no objections. SO ORDERED. ITEM 3. NEW BUSINESS Discussion/Recommendation -- Lease Application -- Portion of Tract A, General Aviation Apron No. 2 -- Charles E. and Helen L. Tulin Airport Cronkhite reviewed the lease application with the Commission and discussed lot requirements and the fact the use received preliminary approval of the FAA. Discussion followed in which drainage concerns were expressed. Cronkhite explained, a storm drain was being installed by the Airport. In addition, the lessee would be given specifications for drainage and would be required to construct, including drainage, as specified by the City. Charles Tulin, Applicant -- Explained the proposed plans and ideas for use of the property. Upon discussion, the Commission found the lease complies with the Airport Master Plan. MOTION: Commissioner Zirul MOVED to recommend to Council the lease application for a portion of Tract A, General Aviation Apron No. 2 submitted by Charles E. and Helen L. Tulin be approved. Commissioner Watkins SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: ADJOURNMENT MOTION: Commissioner Watkins MOVED to adjourn and Commissioner Bielefeld SECONDED the motion. There were no objections. SO ORDERED. The meeting adjourned at approximately 6:40 p.m. Meeting Summary prepared by: Carol L. Freas, City Clerk SPECIAL AIRPORT COMMISSION MEETING JANUARY 26, 2005 PAGE 2 WINTER Memo' TO' City of Kenai Mayor and Council FR: Andrew Carmichael, AWG 2006 Host Society Facilities Chair RE' Kenai Multi-Purpose Facility Capital upgrades proposal Date 1-26-05 Overview: As has been indicated throughout the bid and now planning process is the 2006 Arctic Winter Games Host Society's intent to assist the City of Kenai in funding upgrades to the Kenai Multi-purpose. As discussed, funding challenges have presented themselves to the society in the form of anticipated grant monies not becoming available. At present the host society has budgeted $200,000.00- $250,000.00 in funding to upgrade the facility for both the short term games use as well as a long term legacy. Proposed Upgrades to be funded by 2006 Arctic Winter Games Host Society Tnstailation of Radiant Heaters above bleachers, players boxes, penalty boxes and scoring official's box. $63,000.00 Purchase and Tnstallation of building siding panels to extend south wall to ground. This aspect shall include the construction of a 4 foot wide sidewalk to serve as"footer" for the bottom portion of the side panel extensions to ground level. Est cost $14,000.00 Fund all "Alternative IT "items referenced in memo to Kenai City rvlanager- Linda Snow from Scott Walden et al. dated December 1, 2004 (see attached) Est. Cost $162,000.00 Fund the materials for construction of 2 new team rooms and assist with relocation of existing teams room buildings to the north side (Rogers Rd. side) where the new team rooms are requested to be located. Site preparation and pad development is anticipated to be completed by the City of Kenai for "new" team room location. In the event it is not possible for the City of Kenai to complete or make arrangements for "new" pad location work, the "new" team rooms would be located outside the multipurpose facility on the Kenai Central side. Est. cost $12,000.00 Assist in funding with ventilation improvements in efforts to quell condensation problems. Fund purchase of new bleachers to increase seating capacity to at least 400 spectators. Est. cost $28,000.00 Project Funding Disbursement It is proposed that the aforementioned funding be established via grant award from the AWG 2006 Host Society to the City of Kenai. Specific terms of this grant agreement would be negotiated, then, between the City of Kenai and the Host Society and solidified within a memorandum of agreement/grant agreement at a future date. 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 /FAX: 907-283-3014 KENAI. ALASKA MEMORANDUM To' From' Linda L. Snow, City Manager Date: December 1, 2004 TO' Linda Snow, City Manager FROM: Scott Walden, Fire Chief James Baisden, Fire Marshal Jack LaShot, City Engineer Bob Springer, Building Official Bob Frates, Parks/Rec Director SUBJECT: Multi-Purpose Facility Life Safety Requirements Based on Proposed Uses At the November 17th meeting Council asked the Fire Department, Public Works and Parks Department to compile information detailing basic life safety requirements for various stages of completion and use of the multi-purpose facility, and cost estimates for each alternative. Our discussions were based on minimum requirements to meet the intent of applicable codes. Here are our conclusions and cost estimates for each alternative configuration and USe' Alternative I (As is): The facility remains configured as is, with no change in use. This configuration allows for limited combustible contents and will be required to meet the following: · Non combustible construction and contents (as is, no flea market), with exposed wall and roof support beam protection completed to provide the required 15- minute thermal barrier. Beam protection serves a fire safety purpose and should reduce the condensation problem. To meet required exiting, the front of the building remains open. Seating limited to current capacity and bleachers Combustibles limited to the two built-in player shacks; the two portable player shacks are to be moved outside of the building. Estimated Costs Required beam protection: Estimated Total: 60,000 $6O,OOO Alternative II' Facility is used as a hockey/skate rink for majority of the year, and allows seasonal use that may include limited combustible contents (flea markets, etc), and a variety of other uses. This configuration allows for limited combustible contents and will be required to meet the following: · Maintain required fire resistive rating by limiting combustible contents and finishing the beam protection with a 15-minute thermal barrier. Maintaining this rating will permit the front of building to be fully enclosed (permanently or temporarily) for heating & ventilation needs, while maintaining required exits. · Spectator seating may be increased at existing bleachers to between 400 and 500, with the total facility occupant load remaining at less than 1,000. · Install emergency lights, fire alarm system, exit signs and doors with panic hardware (if doors are installed at all) at exits of adequate size for the increased spectator capacity and overall occupant load of nearly 1,000. · Fire alarm system must meet requirements for "A2.1" occupancy (detection in enclosed areas, minimum quantity of pull boxes, strobe/horn local alarms not required to be monitored). · Install a Class III standpipe system: 1. System to be professionally designed for hydraulic reasons; may require a 4- inch supply line to serve the wet system at required capacity. 2. Can remain dry in winter months to prevent freezing (when ice is in), and will be supplied by fire engines in a winter emergency. 3. It will be a wet system in summer months (used as flea market or other than as an ice fink), supplying secure hose cabinets. The wet system is intended for occupant use and is supplied by city water mains. 4. System will require 2.5-inch fire department connections on the Challenger side of the building, with pipes gated down to 1.5-inch pipe to supply secure hose cabinets. 5. If the building is enclosed, the system will become a wet system year round. 6. Hose cabinets will need to provide coverage for the entire facility. · Combustibles limited to the 2 built-in player shacks, the two portable player shacks moved outside of building. Security Camera System' Required beam protection: Seating: Emergency Lights, exits signs' Fire alanu: Standpipe system: Doors/panic hardware: Estimated Total: Estimated Costs 10,000 60,000 34,000 8,000 20,000 20,000 10,000 (enclosing front does notrequire doors) $162,000 Alternative III Facility is used as a tree multi-purpose facility, enclosed or completed as noted in conceptual design for Phase III. This configuration allows for combustible contents and will be required to meet the following: · Requirements of Phase II. · Automatic sprinkler system is required throughout due to expanded types of use and because the building is oversized. The standpipe system noted in Alternative II will stay in place and become a component of the fire protection system. · Combustibles limited to the 2 built-in player shacks, the two portable player shacks moved outside of building. · Occupant load can be maximized based on a "per square foot" formula. This may be in the range of 1,200 to 1,300 people including vendors, user groups and spectators. Security Camera System' Required beam protection: Seating: Emergency Lights, exits signs' Fire alarm: Standpipe system: Doors/panic hardware: Sprinkler system' Estimated Total: Estimated Costs 10,000 60,000 34,000 8,000 20,000 20,000 10,000 75,000 $247,000 Altemative II provides the City the most versatile use of the facility at the least expense, with all life safety features capable of being integrated into the Phase III design when the facility is completed as a tree multi-purpose facility and enclosed per conceptual designs. This alternative also eliminates the need for a "dry" sprinkler system as prescribed by code, yet meets the intent of the code to provide a reasonable measure of safety for use beyond that of an ice rink. The dry sprinkler system would be prone to cold-related failure and vandalism, and it would definitely incur higher costs due to the need for a larger water supply/riser, a back- up generator and an air compressor. Required annual inspections and system certifications would also be required. Altemative II "secure hose cabinets" also require regular inspection and certification, but on a five year cycle. The fire department will test and document the adequacy and readiness of the fire hose in the cabinets on an annual basis. The fire department will also train on-site managers to use these systems properly. USDA Develol:)ment United States Department of Agriculture Rural Development Alaska State Office January 20, 2005 The Honorable Pat Porter 210 Fidalgo Avenue, Suite 200 Kenai, AK 99611 RE: Northgate Apartments, 1409 Fifth Avenue, Kenai, Al KN T06N R1 lW S31, Government Lot 15 Dear Mayor Porter; We have received your letter with regard to the above subject property. We are aware the property has been abandoned by the owner and are presently taking actions to remedy the situation. However, under the Alaska statutes we have a certain time frame to follow before we either take possession ourselves or sell it to another entity at a foreclosure sale. At this time we have started the foreclosure action. As for securing the property itself, we are working directly with the former manager to get that accomplished. We appreciate your concern and have concerns also with regard to this property. We are taking care of the security issues as quickly as possible. Sincerely, DEBBIE O. ANDRYS Acting Director Rural Housing 800 West Evergreen · Suite 201 · Palmer, AK 99645 Phone: (907) 761-7705 · Fax: (907) 761-7783 · TDD: (907) 761-7786 Committed to the future of rural communities. 'USDA is an equal oppor~nity provicler, employer ancl lencler.' To file a comgtaint of discrimination write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 14~' and Inclepe~ Avenue, SW, Washington, DC 20250-9410 or call (202) 720-5964 (voice or TDD). FRANK H. MURKOWSKI GOVERNOR GOVE R NOR@GOV. stat E.AK. U S STATE OF ALASKA Office Of THE GOVERNOR Juneau JUNEAU, ALA0 (907) FAX (907) 465-3532 WWW.GOV. State:. AK. U S The Honorable Pat Porter Mayor of the City of Kenai 210 Fidalgo Avenue, Suite 200 Kenai, AK 99611-7794 January 18, 2005 ,IqN 2 Dear Mayor Porter: Thank you for your resolution supporting legislation to continue the Rehired Retiree Employment Waiver Program enacted by HB 242 in 2001. The Department of Administration has been working on a proposal to .resolve many of the problems created by the sunset of this program. Senator Gary Stevens has introduced legislation as well. We expect that we will be able to get this issue resolved in this legislative session. I appreciated the opportunity to discuss issues of concern to you at our meeting in December. Please continue to keep us advised of your concerns. Sincerely yours, Governor CC' Kevin Jardell, Legislative Director, Governor's Office S u staining. Alaska' s-C om munities. P'ackage Sustaining. Alaska's communities-includes at least-these key'.programs: Revenue Sharing to sustain communities: A minimum of $50,000 to $75,000 per municipality is required to sustain Alaska's small communities. Increased costs for fuel and insurance, loss of population, and the lack of a local tax base all contribute to fiscal crises in communities. Sustainability for larger communities means affordable taxes while sustaining key local services, especially schools. Per capita revenue sharing, or a community dividend (under a 5% POMV management of the Permanent Fund), or other local tax relief (see next bullet) promote stable taxes and sustainable services. Revenue sharing has declined from$140 million/yr to zero since 1985. Local Tax Relief and State Mandate RelieE State fimding for the Senior Citizen/Disabled Veteran Property Tax Exemption is mandated by state law (AS 29.45.030 (g)), but fimds have not been appropriated to meet this requirement since 1997. This increasing unfunded state.mandate is projected to cost local taxpayers $40 million this year. Local property tax relief may also include alternate revenue sources such as the local option "E-911" surcharge. PERS/TRS' At least two years of state funding for PERS/TRS increases for municipalities, school districts, and the University, ..and implementation of long-range cost control, administration, and financing recommendations being finalized by a joint committee including municipalities, school districts, and the University. Incentives to form sustainable and accountable boroughs' Many small cifie~ in the "Unorganized Borough" fail because they lack the technical and administrative capacity to consistently manage elections, grants, accounting, etc. Encouraging voluntary borough formation can provide the critical mass to achieve an economy of scale to meet the complex issues of local governments. The most' critical incentive is a stable revenue base. One approach is to create a sustainable trust (e.g. fimded by a one-time $5 million payment as recommended by the Local Boundary Commission) with sustainable earnings that can be used annually if annual performance goals for the borough are met. Self-sustaining boroughs will save the State a great deal of money in the long term and improve the lives of citizens. The first step in creating a long-range fiscal plan is to' develop sustainable service levels. The above sustainability measures are necessary steps in creating a long-term fiscal plan. Alaska Municipal League ~ January 26,-.2005 210 Fidalgo Avenue, Kenai, Alaska 99611-'; ,~,-~ Telephone: 907-283-7535 /FAX: 907-283-3014 KENAI. ALASKA MEMORANDUM To' Mayor Porter and City Councilors.,,, From' Linda L. Snow, City Manager {~'J Date: January 28, 2005 RE' City of Kenai Population Attached please find detailed population information for the City of Kenai and the Borough. The attachment labeled DOL #'s are from the Alaska Department of Labor, while the attachment labeled DCA #'s is from the Department of Commerce, Division of Community Advocacy. Ms. Indra Amaga, DCA Research Analyst, advised that we may want to used the DOL spreadsheet because it illustrates the most current revised estimated numbers. When we look at City of Kenai population trends over a long period of time, we see that on a year-to-year basis, the estimated change between 2003 and 2004 is a greater loss than we have experienced in the past; but, at the same time, we are still looking at a positive increase of 7.6% from the 1990 census and only a loss of 1.9% from the 2000 census or an average annual decrease of only 0.5%. The Director of the Division of Community Advocacy, by regulation, determines municipal populations for each calendar year. In a letter dated January 14, 2005, the population was determined for calendar year 2004. The numbers used in these letters are the estimated DOL numbers, and they will change again by the end of the year. The January numbers are based on 2004 Permanent Fund Dividend (PFD) applications. In addition, new residents to Alaska communities that are not yet eligible for the PFD are estimated from Internal Revenue Service tax returns, which provide information on how many persons are moving into and out of our communities each year. Since DOL numbers are the most current indicators of population, they are used for the 2004 calendar year. It is important to note, however, these population determinations are no longer used for a per capita distribution of revenue sharing funds, nor are they a determining factor in the approval or eligibility for most state grants. There are two methods of challenge to the January population determination, either the head count census or the housing unit method analysis. Municipalities under 1,000 persons must use the head count census, while communities over 1,000 persons may choose either method. I have reviewed the current manuals for both methods and discussed the matter with Ms. Amaga, who is responsible for validating population censuses. I have conducted a head count census as City Administrator in McGrath many years ago and recently talked at length about the process and costs with officials in the City of Valdez who conducted a housing unit method analysis in 2001. Attached for your information is a description of the documentation and procedures required for the housing unit method of estimating the population. Given the more detailed population information provided and the absence of per capita state funding, it is highly unlikely the results of a challenge to the current population estimate would yield a reasonable offset of the estimated $10,000 cost incurred to submit a challenge. The more important public policy issue regarding population may be to try and discern what in the city, borough and state economy is driving the population trends and what might be done to impact these trends. Page 2 of 2 0 O0 0 m 0 C~ o .q i i i i ' , i i Housing Unit Method Population Estimate Documentation and Procedures A municipaliTM conducts a "Housing Unit Method" population estimate by randomly sampling house- holds to measure characteristics of the "typical household," and by applying those characteristics to the total housing unit inventory ofthe municipality. Samples are subject to various types of statistical errors, therefore, the Housing Unit Method is truly an estimate of population. In spite of the errors inherent in this methodology, for many large municipalities, a 100% "Head Count Census" would be overly labor- intensive and expensive. Five elements must be measured to properly conduct a housing unit method population estimate: Housing Units - number ofhousing units by structure .t~.e (single family, duplex, apartments, trailers) Vacancy Rates - vacancy/occupancy rates for each structure type Residency Rates - resident rates for each structure type PPH - Average persons per household (PPH) in each structure type Group Quarters - The number of permanent municipal residents living in ~oup quarters Instructions and sample reporting forms are provided in this manual for each element. Large municipalities may need to differentiate the municipality by service areas. Boroughs will also need to differentiate by community and measure each the five elements separately in these distinct areas. Municipalities who choose to conduct a Housing Unit Method population estimate should discuss the methodolo~,t they plan to use with Indra Arriaga, Research Analyst, at 907-269-4521, prior to conducting any field work. Discussion in advance and pre-approval of the methodologies, sampling techniques, and documentation required by the department is for the municipality's benefit. The following documents must be submitted to the department in support of the local estimate. Municipal Map or U.S. Census Block Map. A map of the municipality which accurately depicts the placement and names of block numbers, streets, roads, landmarks, and boundaries which mark the corporate (legal) limits of the municipality. . Housing Unit Method documentation. Detailed documentation of all field work, samples, and surveys for: housing units; vacancy rates; residency rates; average persons per household estimates; and group quarters populations. Suggested forms are provided and required documentation is identified throughout this manual. The forms provided are not required, however, similar information in a clear format is essential to substantiate your local estimate. 3. Housing Unit Method Calculation worksheet. Final calculation of Housing Unit Method population estimate, using the five Housing Unit elements. A sample calculation worksheet is pro vi ded (see Form 5.) , 4. Resolution. The municipality must pass a resolution adopting the results of the population estimate. The municipality should thoroughly document all steps involved in the Housing Unit Method population estimate, since the Department may request any documentation it deems necessary to substantiate the local municipal population estimate. INFORMATION ITEMS KENAI CITY COUNCIL MEETING FEBRUARY 2, 2005 o 1/26/05 Public Works Department, Project Status Report. , Case No. BA-05-01, Blue Sky Pilots Trust Board of Adjustment Decision. , Kenai Peninsula Borough Ordinance No. 2005-05, Enacting KPB Chapter 5.19, providing for a Transient Accommodations Tax and providing for the submission to the voters of a proposition authorizing the borough to impose this tax. , 2/1/05 Kenai Peninsula Borough Assembly meeting agenda. o State of Alaska 2005 Gaming Permit Application/Kenai Senior Connection, Inc. . 1/14/05 B. Rolfzen, Department of Community & Economic Development letter regarding FY 06 Population Determination. o 11/04, Alaska Economic Trends article entitled, The Kenai Peninsula, An Economy that Benej~ts from Diversity. Project Status Report A=Active NC=Non-Construction F=Future STIP=State Trans. Imp JL- Jack La Shot RS - Robert Spdnger MK - Marilyn Kebschull Jet - Jan Taylor A/NC/F/ City Contact Project Name A JL Airport Security Fencing Status Negotiated price reductions. Notice to proceed given for work in May-June. A JL Airport Security System Had final inspection. Training scheduled. A MK Airport Supplemental Planning Assessment Project awarded to DOWL. Joint Work sessions with consultants planned for 2/15/05 & 3/29/05. A JL Airport Taxiway "H" Access Parking A JL Airport Terminal Modifications May construct next summer as CO to Terminal project. Cat X submitted. Minor items to do. A JL Contaminated Soils - Shop Received ranking for loan fund - could be funded if City chooses to. Reappropriated $151,314. Preparing work plan. Holding tanks for floor drains installed. Will do further tests in spring. A JL Daubenspeck Environmental Site Assessment Final report has been received. UST removal report received and submitted to ADEC. A JL FBO Subdivision Lots 5 & 6 Waiting for council decision to continue. A KK Kenai Boat Launch Improvements Received $350,000 grant. Nelson & Associates are working on the design. A KK Kenai Coastal Trail The Corps study was scheduled to be completed months ago. When it is received, it will then be reviewed by all agencies. Hopefully, the City will get additional funds to complete design and answer any questions from the study and agencies including obtaining the Corps Permit. Wednesday, January 26, 2005 Page 1 of 3 A/NC/F/ ~T~ City Contact JL Project Name Multi-Purpose Facility Status Insulation being applied to one roof beam as an experiment. JL Parallel Taxiway Preliminary design to be reviewed. Cat X submitted. JL Runway Extension Environmental Assessment Preparing request for CAT-X on Taxiway H Access and Parallel Taxiway projects. KK S. Spruce Wetlands Protection Concrete piles were placed along S. Spruce. Trail from Municipal Park to beach completed but needs some repairs. Landing and rails at top of bluff stairs complete. Signs still need to be installed. Receiving additional funds from USFWS. KK Title 17 Review and W & S Regulations Completed revisions to W & S KMC & Regulations. Council wants to review changes in a Council work session. JL Underground Storage Tank- Airport Received "no further action required" from ADEC. Still need to do annual testing, soil remediation. KK Wastewater Facility Master Plan This project has been completed. DEC approved GeoNorth's completion date. KK Water Main WH4 to Swires Nelson working on design. City is working with DEC and Corps. KK WH 4 Working with DNR on land purchase issues. Evaluating the two pilot test programs on water treatment. Working with DEC on accepting exploration well as production well. KK Ames & Dunes Road Kenaitze Indian Tribe paving roads with curbs, gutters, and sidewalks. They are going to send City a maintenance agreement F KK Boating Facility Exit Road The City is working on possible land trade for an exit road. Received appraisal on the land the City wants. City is having our wetlands appraised for possible trade. Wednesday, January 26, 2005 Page 2 of 3 A/NC/F/ F KK CIt Contaot Project Name Culvert Repairs S. Spruce & Boat Launch Road Status Have applied for two matching grants from U.S. Fish & Wildlife Service. F JL Maintenance Shop Preliminary plans and specifications complete. F KK McCollum & Aliak, Set Net Dr., S. Ames Rd. LID's These LID projects are on a list for consideration by Council at a later date. Projects on hold until changes made or funding found. F JL Senior Kitchen Architect proposal for Council approval 2/2/05. STIP KK DOT- Bridge Access Pathway Pathway along Bridge Access Road from K-Beach to Spur 3.3 miles... Project in environmental assessment. Design scheduled FFY08. Construction after FFY09. STIP KK DOT- Kenai River Flats Interpretive Site This is the rest stop and Birch Island Facility near the Warren Ames Bridge. This project has been moved out of the recent STIP time frame. Wednesday, January 26, 2005 Page 3 of 3 THE BOARD OF ADJUSTMENT FOR THE CITY OF KENAI IN THE MATTER OF THE APPEAL OF BLUE SKY PILOTS TRUST REGARDING DENIAL OF CONDITIONAL USE PERMIT Case No. BA-05-01 BACKGROUND AND pROCEDURAL HISTORY On November 8, 2004, Blue Sky Pilots Trust applied for a conditional use permit for a 160-space recreational vehicle (RV) park at 725 Baleen Drive in Kenai. The park would be open seasonally from May 1 to September 31 each year. The property is a 10.6-acre lot located next to VIP Subdivision in an area zoned as Rural Residential (RR). It has approximately 1300 feet of frontage along Kalifomsky Beach Road and Baleen Avenue and 360 feet along VIP Drive. The residents of VIP Subdivision rely on on-site wells and septic systems because the area is not served by the City's water and sewer system. The property was recently purchased by the applicant. A map of the proposed located is attached to this decision as "Attachment A." The proposal is to build the RV park in three phases over five years. The first phase would involve construction of gravel pads, RV sites and access roads. The second proposed phase would install electrical outlets. The proposed third phase would include on-site water and sewer systems. Under the Kenai 'Zoning Code, RV parks are allowed by conditional use permit in the RR Zone. KMC 14.20.150 and 245. The City Planning and Zoning Department recommended approval of the permit with some conditions. A heating on the application was held by the Kenai Planning and Zoning Commission on December 8, 2004. Thirty-two people testified at the public hearing. Twenty-nine were. opposed BLUE SKY PILOTS TRUST- DECISION Page 1 of 9 and three were in favor. The testimony against the plan was from residents of the VIP area. They testified the plan: 1) violated the requirements of the RR Zone; 2) had inadequate utilities for a 160-space RV park; 3) would dramatically increase traffic in a residential neighborhood; 4) the proposed on-site sewer facilities, if ever constructed, would threaten their wells with contamination because of the size needed to service a 160-space RV park and the high water table in the area; and 5) the RV park would lower the value of their homes and property. Testifying for the project was one of the panners who stated the project complied with the City's code requirements and would be built to minimize impact on the VIP neighborhood. A business owner across Kalifomsky Beach Road testified that the park would have a favorable impact on her business. Another person testified in favor of the project because he had been contacted to contract for tree cleating during construction of the RV park. The Planning and Zoning Commission voted seven to zero against the proposal. During their comments, the Commissioners stated their objections. They included: 1) the proposed use was not consistent with the RR Zone; 2) the value of the adjoining property and neighborhood would be impaired; 3) the increased traffic in a residential neighborhood; 4) the lack of adequate utilities; 5) the real potential for the on-site septic systems to contaminate the area's drinking water. On December 9, 2004, the applicant filed an appeal to the Board of Adjustment under KMC 14.20.290. The Board of Adjustment held a heating on January 4, 2005. Nine people spoke at the hearing. Eight were residents of the VIP area and spoke against the permit. An owner of a business located across the Kalifomsky Beach Road testified that she needed the RV park to help her business. The testimony both for and against was similar to that given before the Commission. The applicant did not testify at the heating. However, we have carefully BLUE SKY PILOTS TRUST- DECISION Page 2 of 9 reviewed a verbatim transcript of the applicant's testimony before the Planning and Zoning Commission. II. STANDARD ON APPEAL An appeal from the Planning and Zoning Commission is a de novo appeal. The Kenai Code states, "The Board of Adjustment may reverse or affirm, wholly or partly, or may modify the order, requirement, decision or determination as ought to be made, and to that send shall have all the powers of the body from whom the appeal is taken." KMC 14.20.290(b)(2). We need not defer to the findings or decision of the Planning and Zoning Commission. While the Board may take the concerns of neighboring property owners into consideration, it may not base its decision solely on neighborhood support or position. Anchorage Coalition v. Coffey, 862 P.2d 168, 172 n. 11 (Alaska 1993). III. DISCUSSION AND FINDINGS Under KMC 14.20.245, RV parks are allowed by conditional use permit as provided in the Land Use Table. The requirements for conditional uses are set forth in KMC 14.20.150. The applicant, therefore, must meet the conditions of both KMC 14.20.150 and 245. Ae KMC 14.20.245 requires that: 1) adequate utilities for project or actual use of the RV' park must be available; and 2) the projected or actual use shall not threaten the health and safety of adjoining landowners or recreation vehicle users of the park. The project is to be phased over five years. Phase I of the proposal calls for construction of 160 RV spaces on gravel pads and three one-way gravel roads. Phase 'II proposes bringing in electrical services, with Phase III being On-site water and sewer. Under the plan, the initial phase of the project would have 160 RV spaces with no electrical services, no water, no dump station BLUE SKY PILOTS TRUST- DECISION Page 3 of 9 with only three Port-A-Potties and three dumpsters. The utilities planned for Phase I are totally inadequate, and there is no guarantee the improvements for Phases II and III will ever be built. While many of the RV's may have self-contained toilets and water, a large number of the 160 spaces will be occupied by RV's without such facilities. Many RV users with self-contained facilities still seek to use on-site facilities to conserve water and postpone a visit to the dump- station. Additionally, the lack of electrical services will dramatically increase RV generator use and that will have a significant, detrimental noise impact on the adjoining property owners and neighborhood. We find that adequate utilities for the projected use are not available. The VIP area is not served by city water and sewer services. The residents use private wells for their drinking water. The testimony before the Board was that the water table in the VIP area is high. Assuming a minimum of two people per RV (a conservative estimate), an on- site septic system would have to be designed for a capacity of at least 320 people. If an on-site septic system of that size were to be constructed that close to the neighborhood, there is the real potential for contamination of the drinking water for the VIP neighborhood. The proposal simply states the plan is to install a DEC approved system in Phase III, but the proposal has no plans showing what type of septic system would be installed so we cannot attempt to analyze the effects of such a septic system on nearby water wells. We cannot find that the proposal does not threaten the health and safety of the adjoining landowners or RV users in the park. The drawings submitted by the applicant show road access to and from the RV park to be from VIP Drive and Baleen Avenue rather than Kalifomsky Beach Road. While the applicant has applied for road access to Kalifomsky Beach Road, that application has not been approved. The record indicates the state Department of Transportation is reluctant to approve direct highway access where alternate access is available. The proposal, therefore, clearly would BLUE SKY PILOTS TRUST- DECISION Page 4 of 9 generate heavy RV traffic in a predominately residential area. Since access to the facility would be on Baleen and VIP (residential streets not designed for heavy RV traffic), we believe the increased traffic would create a hazard to the neighborhood. The proposal does not meet the requirement ofKMC 14.20.245. Be We also need to consider the conditional use review criteria of KMC 14.20.150. The first is whether the use is consistent with the purposes and intent of the zoning district. KMC 14.20.150(d)(1). The zoning district is RR. The RR Zone is the largest zone in the City and encompasses several large subdivisions as well as sparsely populated areas. The intent of the RR zoning district is intended to provide for low density residential development which creates a stable and attractive residential environment." KMC 14.20.150. The specific intent of the RR Zone includes preventing health hazards in areas not served by water and sewer. KMC 14.20.080(a)(1)(ii). As noted earlier, we find that the high water table and the close proximity of the proposed on-site septic system to the VIP neighborhood create a real potential for ground water contamination. The proposal does not show what type of system would be installed nor outline the effects of such a system on the neighboring wells. The concerns of the Kenai Fire Department over the possible harmful effect of the park's on-site septic system on the residents' on-site water systems are documented on Page 4 of the Staff Report. That violates the intent to minimize health hazards for areas of the RR Zone not served by city water and sewer. _. The specific .intent of the RR Zone is also to prohibit uses that would violate the residential character of the environment. KMC 14.20.080(a)(2)(i). We find that this proposed 160-space RV park located so close to the VIP neighborhood would violate the residential BLUE SKY PILOTS TRUST- DECISION Page 5 of 9 character of the area. We do not hold that an RV park could never be located in the RR Zone. There are probably areas where an RV park would not violate the residential character of the RR Zone. The proposed RV park at this location is not one of them. Another aspect of the specific intent of the RR Zone is to prohibit uses that would generate heavy traffic in predominately residential areas. KMC 14.20.080(a)(2)(ii). We have previously outlined in Section III-A the problems with the access to a 160-space RV park being on residential streets in the VIP neighborhood. That is contrary to the specific intent of the RR Zone. For the above reasons, we find the proposed use is not consistent with the purposes and intent of the RR Zone. e The second criterion we must find is that the value of the adjoining and neighborhood properties will not be significantly impaired. There was considerable testimony during the public hearing that the proposed RV park would significantly impair the value of the property. There is no information in the record to indicate otherwise. The Staff Report to the Planning & Zoning Commission refers to an official of the Kenai Peninsula Borough stating that the property values (for property tax purposes) would not go down until the market reacts and that it would take sufficient lower value sales to justify lowering the value (for property tax purposes). That statement cannot be used to argue that property values would not be lower, it merely says that borough would have to wait and see how the market actually affected the property before it lowered valuations. We cannot find that the proposed RV park would not significantly impair the property values of the adjoining property and neighborhood. We believe it would. BLUE SKY PILOTS TRUST- DECISION Page 6 of 9 3. The third criterion is whether the proposed use is in harmony with the comprehensive plan. The City ofKenai's 2003 Comprehensive Plan states on Page 29, The Rural Residential district includes areas that due to location or site conditions are best suited for large-lot single-family residential development. Homes in this district typically rely on individual on-site water supply and wastewater disposal systems. Compatible institutional uses such has churches, schools and daycare facilities may be intermixed if they comply with the zoning design guidelines. Small home-based businesses may be accommodated within certain guidelines. A 160 space RV park is neither an institutional use such as a church, school, or daycare or a small home-based business as called for in the Comprehensive Plan. The proposed RV park located in such a close proximity to a large residential neighborhood in the RR Zone is inconsistent with the comprehensive plan. o The fourth criterion is whether public facilities are adequate for the proposed use. The proposed RV park is not served by city water or sewer. Until on-site utility services are built (if ever), the 160-space facility would be without water, on-site sewer or electrical services. There would be only three Port-A-Potties and three dumpsters. Kalifomsky Beach Road is a state maintained paved road that would be sufficient to support the increased traffic. However, the access roads used for the facility would be Baleen Avenue and VIP Drive. While VIP is paved, Baleen~the primary access road~is not. There are questions regarding the effect of heavy RV use on Baleen Avenue. The two main access points for the RV park are on roads designed for residential areas, not concentrated RV use as would occur from the park. The Fire Department also questioned whether the roads within the facility would provide adequate access for emergency vehicles. use. For the above reasons, we cannot find there are adequate public facilities for the proposed BLUE SKY PILO'i'S TRUST- DECISION Page 7 of 9 The fifth criterion is whether the proposed use will be harmful to the public safety, health or welfare. Proposed sanitary facilities for the park are insufficient. Three Port-A- Potties and three dumpsters for a 160-space RV park are clearly inadequate. Because there will be no electrical hook-ups during Phase I of the project, the increased generator use will create noise problems for the neighbors. Even if an on-site septic system is constructed, as noted earlier, its proximity to the VIP neighborhood is problematic due to the high water table that the residents rely on for their drinking water. Additionally, reliance on residential street for access to a 160-space RV park creates a traffic hazard for the residents (especially neighborhood children). The Police Department noted its concerns regarding increased traffic, including ATV's, which are not allowed on city streets, and alcohol related offenses in the VIP neighborhood. We cannot find the proposed use will not be harmful to the public safety, health or welfare. Se The sixth criterion is not applicable because we do not feel enough specific conditions can be attached to the permit to allow it to comply with the first five requirements of KMC 14.20.150. IV. CONCLUSION The requirements of KMC 14.20.150(d) or 245(a) have not been met. For us to approve the conditional use permit, we must find all of the requirements have been met. Accordingly, we must DENY the appeal and uphold the decision of the Planning and Zoning Commission. DATED this 20th day of January 2005. PAT PORTER, CHAIR JOE MOORE, VICE CHAIR BLAINE GILMAN, BOARD MEMBER BLUE SKY PILOTS TRUST- DECISION Page 8 of 9 RICK ROSS, BOARD. MEMBER LINDA SWARNER, BOARD MEMBER CLIFF MASSIE, BOARD MEMBER JAMES BUTLER, BOARD MEMBER (not participating) NOTE- THIS DECISION CONSTITUTES A FINAL ORDER UNDER ALASKA APPELLATE RULE 602. AN APPEAL OF THIS DECISION TO SUPERIOR COURT MUST BE FILED WITHIN THIRTY (30) DAYS OF THE DATE OF THIS DECISION. "BLUE SKY PILOTS TRUST- DECISION Page 9 of 9. I.IJ gg,L~ UJ 08Z~ Introduced by: Date' Hearings: Action: Vote: 02/01/05 03/01/05, 03/15/05 & 04/05/05 KENAI PENINSULA BOROUGH ORDINANCE 2005-05 AN-ORDINANCE ENACTING KPB CHAPTER 5.19, PROVIDING FOR A TRANSIE~ ACCOMMODATIONS TAX AND PROVIDING FOR THE SUBMISSION TO THE VOTERS OF A PROPOSITION AUTHORIZING THE BOROUGH TO IMPOSE THIS TAX WHEREAS, due to the elimination of municipal revenue sharing, increased tax exemptions, significant increases in expenses including mandated retirement system contributions, insurance costs, and increased overall borough and school district expenses, the borough is considering a variety of measures to keep the borough unreserved general fund balance within the parameters established by Resolution 2001-045; and WHEREAS, several people have suggested that the borough impose a transient accommodations tax, otherwise known as a bed tax, to increase tax revenue derived from the many tourists who visit the Kenai Peninsula Borough; and WHEREAS, bed taxes are common throughout the State of Alaska and other states in the United States; and WHEREAS, as a bed tax is a form of a sales tax, voter approval is required before the bed tax may be imposed; NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH: SECTION 1. That KPB Chapter 5.19 is hereby enacted as follows' CHAPTER 5.19. TRANSIENT ACCOMMODATIONS TAX 5.19.010. Definitions. A. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. 1. "Finance director" means the Kenai Peninsula Borough finance director or the director's designee. Kenai Peninsula Borough, Alaska New Text Underlined; [DELETED TEXT BRACKETED] 74 · Ordinance 2005-05 Page i of o° 2e e Se "Guest" means a person who rents a hotel or motel room for a term of less than 30 consecutive days. A person who rents a hotel or motel room for a term of 30 consecutive days or more, which room is used by that person's employees for periods of less than 30 consecutive days each on a rotating basis, is not a guest. "Hotel room" or "motel room" means a structure or part of a structure rented, or offered for rent, for a term of less than 30 consecutive days for dwelling, lodging or sleeping purposes, but excludes a structure or part of a structure rented or offered for rent solely in connection with a principal business or institutional purpose other than providing meals, lodging, entertainment or recreation; for example, a hospital or university dormitory. "Operator" means a person who offers hotel or motel rooms for rem and to whom rent for a hotel or motel room is payable, either directly or through an agent or employee. "Quarter" means any one of the four consecutive three-month periods in a calendar year, the first of which commences January 1. 6. "Rent" means' a. to rent a room or other accommodation means to obtain the fight to use or occupy the room or other accommodation; and b. a monetary consideration paid to rent an accommodation. 5.19.020. Payment and collection of tax; exemption. A. The borough levies a tax on all accommodations rent payable to an operator and not exempt from taxation under subsection (B) in the amount of 8 percent of the accommodations room rent. The guest shall pay the tax to the operator at the time the rent is paid. The operator shall collect the tax when the operator collects the rent. The operator shall state the tax is a separate item on the guest's bill. B. When qualified for exemption in accordance with subsection (C), the following rents are exempt from the tax levied by subsection (A): 1. rent paid directly by the United States or state of Alaska insofar as they are immune from taxation; 2. rent paid by or on behalf of a guest who is an officer or employee of a foreign government who is exempt from taxation by law or treaty; and 3. rent payable to an operator that is exempt from collecting the tax under this chapter. C. Rent qualifies for exemption under paragraph (B)(3) above if the operator collecting the rent has established its exemption from collecting the tax pursuant to KPB 5.19.025. 5.19.025. Operators exempt from collecting tax. A. When qualified for exemption in accordance with this section, an operator exempt from federal income taxation under 26 USC Sec. 501(c)(3), whose income from Ordinance 2005-05 Page 2 of 8 New Text Underlined; [DELETED TEXT BRACKETED] Kenai Peninsula Borough, Alaska 75 accommodations rents is not unrelated business taxable income under 26 USC Sec. 512, is exempt from collecting the tax levied under KPB 5.19.020. B. An operator qualifies for exemption under subsection (A) by registering as an operator under KPB 5.19.030, and presenting evidence satisfactory to the finance director that the United States Internal Revenue Service has determined that the operator is exempt from federal income taxation under 26 USC Sec. 501(c)(3) and its income from accommodations rents is not unrelated business taxable income under 26 USC Sec. 512. 5.19.030. Operator's certificate of registration. A. No person may engage in business as an operator without obtaining a certificate of registration under this section. An operator shall display its certificate of registration prominently at its registered place of' business. B. Application for a certificate of registration shall be made to the finance director. If an operator engages in business as an operator at more than one location, the operator shall obtain a certificate of registration for each location. There shall be no charge for issuing a certificate of registration. C. A certificate of registration shall bear the name of the operator, the address of the registered place of business, the operator's form of business organization, and state whether the operator is exempt from collecting the tax under KPB 5.19.025. D. If an operator ceases to engage in business as an operator, ceases to engage in business at its registered place of business, changes its name, changes its form of business organization, or ceases to be exempt from collecting the tax under KPB 5.19.025, its certificate of registration expires. An operator shall surrender an expired certificate of registration to the finance director for cancellation. 5.19.040. Receipts; segregation. Title to the rental taxes collected pursuant to this chapter shall vest in the borough upon collection. The taxes shall be segregated by the operator from the funds of the operator or the business entity subject to the tax and safeguarded until transmitted to the borough as provided under KPB 5.19.050. A separate account shall be maintained for all taxes collected. 5.19.050. Returns; payments; penalties. A. On or before 30 days after the end of each quarter, each operator not exempt under KPB 5.19.025 shall prepare and submit to the finance department a remm for the preceding quarter upon forms tim,fished by the finance department. In addition, the operator shall submit other information and supporting papers required by regulations issued by the finance director. The operator shall sign the return and transmit it together with the taxes collected to the finance department on or before the due date. A return shall be filed even if none of the reported rents were taxable. The.return shall set forth the amount received for: 1. rents collected for transient accommodations within the borough; 2. the amount of non-taxable rents collected; Kenai Peninsula Borough, Alaska New Text Underlined; [DELETED TEXT BRACKETED] Ordinance 2005-05 Page 3 of 8 76 3. the amount of taxable rems collected; 4. the taxes collected. B. Taxes collected by an operator, as provided by this chapter, shall be due 30 days after the end of each quarter. If taxes collected by an operator have not been received by the finance department on or before the due date, the operator shall incur a penalty equal to 8 percent of the taxes which are due and shall be charged interest at the rate of 8 percent per annum for each day the tax is delinquem. C. An operator that has qualified for exemption under KPB 5.19.025 shall report to the finance director in writing any final determination by the United States Internal Revenue Service affecting the operator's exemption qualification within 30 days of receiving notice of the determination from the Intemal Revenue Service. 5.19.055. Involuntary filing, appeal. A. Involuntary return. When an operator fails to file a return under KPB 5.19.050, or when the finance director finds that a return filed by an operator is not supported by the records maintained pursuant to KPB 5.19.070, the finance director may prepare and file a return on behalf of the operator. Taxes estimated on a return filed on behalf of an operator under this subsection may be premised upon any information that is available to the finance director including, among other things, comparative data for similar businesses. An operator for whom an involuntary return is filed under this subsection shall be liable for the taxes stated on the return, as well as the penalties and interest provided in KPB 5.19.050(B) and pursuam to KPB 5.19.100. B. Assessment notice. The finance director shall provide each operator by certified mail, return receipt requested, or personal service, a notice of assessment which includes the total amount of tax, penalties, and interest due. The notice shall inform the operator that the operator has ten calendar days from the date of the notice to contest the mount of the assessment and request a hearing in writing. The hearing request shall be made on a form provided by the finance department. C. Hearing. If the hearing provided for by KPB 5.19.055(B) is requested by the operator, the finance director shall notify the operator at least 15 calendar days in advance, by certified mail, return receipt requested, of the date, time and place of the hearing. The operator shall make available for inspection and copying at the hearing all the operator's books and records, which the operator relies on in contesting the assessment and the same shall become part of the record. The finance director shall disclose to the operator all the documents or other evidence which the director relied upon in making the tax assessmem, and the same shall become part of the record. Hearings for more than one accommodation or filing period may be consolidated for the same operation. D. Determination. Within ten calendar days of the hearing the finance director shall issue a written decision with findings of fact, setting forth the total amount of tax liability, penalty, and interest. The notice of finance director's final decision shall also advise the operator of the operator's right to appeal the decision to the superior court within 30 calendar days. Ordinance 2005-05 Page 4 of 8 New Text Underlined; [DELETED TEXT BKACKETED] 77 Kenai Peninsula Borough. Alasica E. Appeal. An appeal may be filed pursuant to Part 6 of the Alaska Rules of Appellate Procedure. If the amount of the tax, interest, and penalty is upheld by the court on appeal, the court shall issue a judgment for the amount, plus costs and attorney fees. F. Collection. If the operator does not pay the tax in full or appeal the assessment, the borough may proceed with a personal action as provided by KPB 5.19.080 and lien as provided by KPB 5.19.085. 5.19.060. Records; confidentiality. A. All returns filed with the borough pursuant to this chapter and all financial data obtained from the returns are confidential and may not be released for inspection by any person except the mayor, finance director, borough attorney, internal or external auditor or the assembly; provided, however, that the data may be released upon court order. B. Except as provided in this section, no person may divulge to another any information obtained from a return filed with the borough or from data obtained from a return unless the person receiving the information is a person authorized to review the return under the terms of this chapter. C. It is the duty of the finance director to safely keep returns and all financial data taken from the returns secure from public and private inspection, except as provided by this chapter. D. This section does not prohibit the borough from compiling and publishing statistical evidence concerning the data submitted, provided no identification of particular returns or reports is made, nor does it prohibit the borough from releasing the business names, owners, mailing address and filing stares to the public. "Filing status" means' whether the taxpayer is exempt, non-exempt, delinquent, or current in payment of the tax. Nothing in this section shall be deemed to prohibit an internal auditor from examining returns, provided that no information obtained from specific or identifiable returns shall be made available to persons other than those authorized to review returns under subsection (A). 5.19.070. Records; maintenance and inspection. A. An operator not exempt under KPB 5.19.025 shall maintain the following records for the two previous calendar years' 1. all guest registers and accounting records reflecting the renting of accommodations for which the operator received rents, and the receipt of rents for the accommodations; and 2. evidence which supports the operator's decision to not collect the tax required by KPB Chapter 5.19. B. During normal business hours, the finance director may, upon presentation of proper identification, inspect the records which an operator is required to maintain under subsection (A), or inspect the records of a person whom the finance director has probable cause to believe is an operator not exempt under KPB 5.19.025 to determine whether that person is an operator not exempt under KPB 5.19.025. Kenai Peninsula Borough, Alaska New Text Underlined; [DELETED TEXT BRACKETED] Ordinance 2005-05 Page 5 of 8 78 C. Where the constitution of the United States or of the state of Alaska requires, the finance director shall obtain an administrative search warrant authorizing an inspection and exhibit the warrant to the person in charge of the premises before conducting the inspection. The finance director shall apply to the trial courts of the state to obtain an inspection warrant, stating in the application the name and address of the premises to be inspected, the authority to conduct the inspection, the nature and extent of the inspection, and the facts and circumstances justifying the inspection. Warrants issued under this section shall be returned within ten days. 5.19.080. Suits for collection. Taxes due but not paid, or taxes collected but not transmitted, may be recovered in an action at law against the transient guest or the accommodations operator. Tax returns shall be prima facie proof of taxes collected but not transmitted. 5.19.085. Transient accommodations tax liens. A. The finance director may cause the recording of a notice of lien on real and personal property to secure the payrnent of a transient accommodations tax, and the interest, penalties, and administration costs in the event of delinquency, where the operator has: 1. failed within 60 calendar days of the end of the filing period from which taxes were due to remit all amounts due; or 2. failed to file tax returns for two consecutive filing periods as required by the chapter and has failed to request a hearing or has requested a hearing, after which a final order has been issued setting forth the amount of tax, penalty, and interest oWing. If the finance director determines taxes, interest, and penalties are due after a hearing, the lien may be filed even though the operator takes fin'ther appeal, unless the operator obtains a judicial stay. B. Prior to filing a lien, the finance director shall cause an additional written notice of intern to file to be mailed to the last known address of the delinquent operator. C. When recorded, the transient accommodations tax lien has priority over all other liens, except: 1. liens for property taxes, other sales taxes, and special assessments; 2. liens that were perfected before the recording of the transient accommodations tax lien for amounts actually advanced before the recording of the transient accommodations tax lien; 3. mechanics' and materialmen's liens for which claims of lien under AS 34.35.070 or notices of fight to lien under AS 34.35.064 have been recorded before the recording of the transient accommodations tax lien. 5.19.090. Prohibited acts. A. A person may not fail or refuse to pay the tax imposed by this chapter when it is due and payable to an operator authorized to collect the tax. Ordinance 2005-05 Page 6 of 8 New Text Underlined; [DELETED TEXT BRACKETED] Kenai Peninsula Borough, Alaska 79 B. An operator may not advertise or state to the public or to any guest, or render directly or indirectly that the tax, or any part of it, shall be assumed or absorbed by the operator, or that the tax shall not be added to the rental or that it shall be refunded. An operator may not absorb or fail to add the tax or any part of it, or refund any tax or fail to state the tax separately to the guest. 5.19.100. Penalties for violations. An operator who fails to file a tax return as required by this chapter shall incur a civil penalty equal to 10 percent of the taxes due to the municipality for each quarter for which a return was not filed as required by this chapter. An operator who willfully fails to collect the tax levied by this chapter shall incur a civil penalty of double the tax which should have been collected. A person who violates any of the provisions of this chapter is guilty of a misdemeanor. Civil and criminal penalties shall be considered cumulative remedies and shall not relieve an operator or guest of the duties imposed under this chapter. 5.19.110. Regulations. The mayor may adopt regulations providing for the application and interpretation of this chapter and providing methods and forms for reporting and collecting the taxes imposed by this chapter. 5.19.120. Refunds. A. The finance department shall refund to an operator the amount of taxation paid to the finance department for room rentals not subject to taxation under KPB 5.19.020. B. The operator shall apply for a tax refund in writing on a form provided by the finance department not later than two years from the date the tax is transmitted to the finance department. SECTION 2. That a ballot proposition shall be placed before borough voters at the next regular election to read as follows: PROPOSITION No. Shall Ordinance 2005-05, providing for the imposition of an 8 percent transient accommodations tax, be ratified? Yes [-] No SECTION 3. That Section 2 shall become effective immediately upon the enactment of this ordinance. SECTION 4. That Section 1 of this ordinance shall become effective January 1, 2006, only if the proposition contained in Section 2 is approved by a majority of voters voting in the regular election of October 4, 2005. Kenai Peninsula Borough, Alaska New Text Underlined; [DELETED TEXT BRACKETED] 8O Ordinance 2005-05 Page ? of g ENACTED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS * DAY OF * 2005. ATTEST: Gary Superman, Assembly President Linda S. Murphy, Borough Clerk Ordinance 2005-05 Page 8 of 8 New Text Underlined; [DELETED TEXT BRACKETED] 81 Kenai Peninsula Borough, Alaska .... 't KENAI PENINSULA EEIOROUGH -~ ~ ,~~ ,,. 144 N. BINKLEY ,. SOLDOTNA, ALASKA · 99669-7599 ,, ,~.~j~~'~' -~ BUSINESS (907) 262-4441 FAX (907)262-1892 ..,,.,....,~. - MEMORANDUM TO' Gary Superman, Assembly President Members, Kenai Peninsula Borough Assembly FROM' Betty Glick, Assembly Member DATE: January 20, 2005 SUBJECT' Ordinance 2005-~5" , providing for a transient accommodations tax DALE BAGLF_.Y MAYOR In view of the pending budgetary issues facing the Kenai Peninsula Borough and the ongoing quest for solutions, I am submitting this ordinance for discussion purposes, and for consideration by the assembly as one potential option for increasing revenues. If enacted, this ordinance would authorize a "transient accommodations tax," otherwise known as a "bed tax," of 8 percent on hotel or motel rooms rented for less than 30 consecutive days. My research has shown that numerous municipalities throughout Alaska already impose a bed tax. This ordinance is based on the transient accommodations tax provisions in the Matansuka-Susima Borough code. Alaska Statute 29.45.670 requires a new sales tax or an increase in the rate of levy of a sales tax to be ratified by the voters before it may take effect. A bed tax is considered a sales tax based upon case law and therefore must be approved by the voters. The ordinance includes a provision requiting that it be placed on the ballot at the next regular election of October 4, 2005. I have asked the legal department to investigate whether a portion of the revenue raised by such a tax can be transferred to the cities in an amount equal to what the cities would have received had they imposed a bed tax, or whether the cities must impose their own bed tax to receive such fun~. It is my intent that, if legally permissible and agreeable by the cities, the ordinance be amended before adoption to provide for a transfer back to the cities of some of the bed tax revenues raised in each city. The intended purpose of this amendment would be to make the bed tax rate the same throughout the borough, both inside and outside of the cities. Also, the legal department is investigating whether there are statutory limitations on a second-class borough's ability to .impose the bed tax in addition to the current sales tax. Further, implementation of this tax will create some practical issues for both the borough and affected sellers that will need to be addressed. In order to allow time for full consideration and discussion during the budgetary process, I decided to introduce the ordinance during the February 1, 2005 meeting, and respectfully request that it be scheduled for at least three hearings. While I recognize that it could not take effect until after the election, in my opinion it provides an option that should be considered now for future purposes. Your consideration of this ordinance is appreciated. 82 708 709 MUNICIPAL POWERS AND DUTIES § 29.35.110 alities. (§ 10 ch 74 SLA, · ~ther Political Sub- ~orporations, § 1726. y in damages for refusal to ,2d 694. br the area outside all city may regulate, fiX; service provided to th~ ~o regulation under AS ,~.05.711(a), (d) -- (k), 0k from complying with all · Leters and service to be ~arges, and regulations md shall be reasonable fiities. (§ 10 ch 74 SLA ts.- The 2001 amendment, ,nserted "or (o)" near the end .,al additions and minus ac- ,tta v. City of Skagway, 78 F. ~8). ~pital" as used in a former, not have been construed to s the utility entitled to the on in value, nor should the ~d to mean that which was ,~t purchaser. Pichotta v. City ~99 (D. Alaska 1948). n property within and that her governmental district as v rates. 4 ALR2d 595. res based on fiat and meter ,.y regulate the posses- beverages under AS [ities. (§ 10 ch 74 SLA ~listic change in subsection NOTES TO DECISIONS Local regulation consonant with state law.- AS 04.11.491 authorizes municipal voters to enact "local option" ordinances that restrict or prohibit the sale, importation, or possession of alcohol and AS 29.35.080 expressly recognizes the authority of mu- nicipalities to regulate the possession, barter, sale, importation, and consumption of alcoholic beverages as proscribed in the local option statutes; thus, a properly enacted municipal ban on alcoholic bever- ages does not conflict with state law but is consonant with state law. State v. Prince, 53 P. 3d 157 (Alaska Ct. App. 2002). Sec. 29.35.085. Curfew. (a) A municipality may, by ordinance, provide for a curfew for persons under 18 years of age for whom the disabilities of minority have not been removed for general purposes under AS 09.55.590 and who have not arrived at the age of majority under AS 25.20.020. (b) Notwithstanding AS 29.25.070(a), for a violation of this section, the court may impose a fine of not more than $250. (c) The community work provisions of AS 47.12.030(b) (6) apply to punishment for a minor's conviction of a violation of a curfew ordinance for which a penalty is provided under AS 29.25.070(a). (§ 7 ch 59 SLA 1996; am § I ch 72 SLA 1997) Effect of amendments.- The 1997 amendment, effective September 9, 1997, added subsections (b) and (c). Effective dates. -- Section 7, ch. 59, SLA 1996, which enacted this section, took effect on September 10, 1996. Sec. 29.35.090. Municipal property; rights-of-way. (a) The governing body shall by ordinance establish a formal procedure for acquisition and disposal of land and interests in land by the municipality. (b) Notwithstanding AS 29.40.160 or other provisions of law, a municipality may not vacate a right-of-way acquired by the state under former 43 U.S.C. 932. This subsection applies to home rule and general law municipalities. (§ 10 ch 74 SLA 1985; am § 3 ch 94 SLA 1999) Effect of amendments.- The 1999 amendment, effective July 8, 1999, added subsection (b). Collateral references.- Power of municipal cor- poration to lease or sublet property owned or leased by it. 47 ALR3d 19. Sec. 29.35.100. Budget and capital program. (a) The governing body shall estab- lish the manner for the preparation and submission of the budget and capital program. After a public hearing, the governing body may approve the budget with or without amendments, and shall appropriate the money required for the approved budget. (b) The governing body may make supplemental and emergency appropriations. Payment may not be authorized or made and an obligation may not be incurred except in accordance with appropriations. (§ 10 ch 74 SLA 1985) NOTES TO DECISIONS Quoted in City of Fairbanks v. Fairbanks Conven- tion & Visitors Bureau, 818 P. 2d 1153 (Alaska 1991). Sec. 29.35.110. Expenditure of borough revenues. (a) Borough revenues received through taxes collected on an areawide basis by the borough may be expended on general administrative costs and on areawide functions only. Borough revenues received through taxes collected on a nonareawide basis may be expended on general administrative costs and functions that render service only to the area outside all cities in the borough. ~b) Use of borough revenues from a sales tax levied upon room rentals for a tourism marketing campaign is not subject to (a) of this section. (c) Notwithstanding (a) of this section, a borough that has entered into an agreement with a city located in the borough to cooperatively or jointly provide for economic development may use borough revenue from taxes, whether collected on an areawide or Kenai Peninsula Borough l~oruary 1, 2005 - 7:00 p.m. Assembl Regular Meeting Borough Assembly Chambers, Soldotna, Alaska Gary Superman Assembly President Seat 3- Nikiski Term Expires 2007 Ron Long Assembly Vice President Seat 6- East Peninsula Term Expires 2006 Dan Chay Assembly Member Seat 1 - Kalifornsky Term Expires 2006 Paul Fischer Assembly Member Seat 7- Central Term Expires 2007 P Glick Oly Member ', - Kenai 2 ~ .. Expires 2005 Milli Martin Assembly Member Seat 9- South Peninsula Term Expires 2006 Grace Merkes Assembly Member Seat 5 - Sterling/Funny River Term Expires 2005 Chris Moss Assembly Member Seat 8- Homer Term Expires 2005 Pete Sprague Assembly Member Seat 4 - Soldotna Term Expires 2007 Ao B® Ce De ge Fe Ge Ho ge J® CALL TO ORDER PLEDGE OF ALLEGIANCE INVOCATION ROLL CALL COMMITTEE REPORTS APPROVAL OF AGENDA AND CONSENT AGENDA (All items listed with an asterisk (*) are considered to be routine and non-controversial by the Assembly and will be approved by one motion. There will be no separate discussion of these items unless an Assembly Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda. APPROVAL OF MINUTES *1. January 18, 2005 Regular Meeting Minutes ................. 1 January 18, 2005 Special Meeting Minutes ................. 11 COMMENDING RESOLUTIONS AND PROCLAMATIONS PRESENTATIONS WITH PRIOR NOTICE (Limit to 20 minutes total) o Presentation by Mary Lou Pratt of Alaska Permanent Capital Management Company (10-15 minutes) 2~ Presentation of the Government Finance Officers Association's Distinguished Budget Presentation Award for the Fiscal Year Beginning July 1, 2004 (5 minutes) PUBLIC COMMENTS ON ITEMS NOT APPEARING ON THE AGENDA (3 minutes per speaker; 20 minutes aggregate) REPORTS OF COMMISSIONS AND COUNCILS February 1, 2005 Page 1 of 5 L® MAYOR'S REPORT ................................................... 20 Agreement and Contracts ae Spruce Bark Beetle Mitigation Program' Approval of contract with Tinker Creek Surveys for Highland Drive #2 Surveying Project ............................. 21 Approval of contract with Alaska Map Company for GIS and Data Base Training Support for KPB Spruce Bark Beetle Mitigation Program ................................... 23 Approval of contact with Skookum Construction for James Road # 1 ROW Project ................................. 24 Approval of contact with Skookum Construction for James Road #2 ROW Project ................................. 27 Approval of contact with Skookum Construction for Sterling Highway NE #3 ROW Project ........................... 30 Approval of contract with Doug Koch Tree Service for Sterling Highway NE #5 ROW Project .................... 33 be Approval of contract with Rozak Engineering for Updating KPB Draft Spill Prevention Plan at Ninilchik Elementary School .......... 36 Approval of contract with Cooper and Company to locate photo control points used to assess the feasibility of a gravel pit in the Cooper Landing area ........................................ 37 de Approval of bid award to Mullikin Surveys for surveying services to facilitate the conveyance of municipal entitlement lands in the Cooper Landing area ............................................... 39 2. Other ae Sterling Senior Citizens, Inc. Progress Report for the Sterling Moose River Manor Sen/or Housing Project ............................ 41 be Central Peninsula Landfill Operations Update - January 19, 2005 ..... 42 M® ITEMS NOT COMPLETED FROM PRIOR AGENDA PUBLIC HEARINGS ON ORDINANCES (Testimony limited to 3 minutes per speaker) le Ordinance 2005-0.1..' Repealing KPB 3.04.310(A) Regarding Health Insurance Premiums (Mayor) (Referred to Finance Committee) ..................... 44 February 1, 2005Page 2 of 5 e Ordinance 2005-02: Amending KPB 2.56.040 to Incorporate the Goals of the City of Soldoma Action Plan into the 1995 Soldoma Comprehensive Plan (Mayor) (Referred to Lands Committee) ............................... 47 ge Ordinance 2004-19-33' Rescinding an Unused Appropriation of $60,000 to the School Capital Improvement Fund and Returning the Funds to the Land Trust Fund (Mayor) (Referred to Finance Committee) .................... 60 O. UNFINISHED BUSINESS P. NEW BUSINESS 1. Bid Awards '13.. Resolution 2005-012' Designating the Newspaper and Awarding the Contract for the Publication of the 2005 Property Tas Foreclosure List, the Delinquent Personal Property Tax, and the Delinquent Real Property Lease Lists for the Tax Year 2004 (Mayor) (Referred to Finance Committee) ......................................... 63 2. Resolutions '13.. Resolution 2005-013' Accepting a $45,000 Grant from the Alaska Department of Military and Veterans Affairs, Division of Homeland Security and Emergency Management, for Emergency Management Operations (Mayor) (Referred to Finance Committee) .............. 66 3. Ordinances *a. Ordinance 2005-04' Enacting KPB 5.08.025 Establishing Guidelines for Service Areas to Borrow Money from the General Fund for Capital Acquisitions (Martin) (Hearing on 03/01/05) (Referred to Policies and Procedures Committee) ............................ 71 *b. Ordinance 2005-05.' Enacting KPB Chapter 5.19, Providing for a Transient Accommodations Tax and Providing for the Submission to the Voters of a Proposition Authorizing the Borough to Impose this Tax (Glick) (Hearings on 03/01/05, 03/15/05 and 04/05/05) (Referred to Policies and Procedures Committee) .......................... 74 *¢. Ordinance 2005-06.' Authorizing the Lease and Sale of land in the Cooper Landing Area to the Cooper Landing Senior Citizen Corporation, Inc. at Less Than Fair Market Value (Mayor) (Hearing on 03/01/05) (Referred to Lands Committee) ..................... 83 February 1, 2005 Page 3 of 5 Qe Re Se *d. Ordinance 2004-19-35' Appropriating $213,956 to the Special Assessment Fund for West Brook Estate Road Improvement Special Assessment District (Mayor) (Heating on 03/01/05) (Referred to Finance Committee) ........................................ 109 *e. Ordinance 2004-19-36' Accepting a $100,200 Grant from the Denali Commission and Appropriating the Grant and Additional Funds of $41,800 to the Solid Waste Department for Bumboxes in Nanwalek and Seldovia (Mayor) (Hearing on 03/01/05) (Referred to Finance Committee) .............................................. 112 *f. Ordinance 2004-19-37: Accepting and Appropriating a $9,000 Grant from the State of Alaska for a Floodplain Management Workshop (Mayor) (Hearing on 03/01/05) (Referred to Finance Committee) .... 117 *g. Ordinance 2004-19-38' Accepting an Ambulance from the Southern Region Emergency Medical Services Council, Inc. and Appropriating Matching Funds in the Amount of $7,500 on Behalf of Kachemak Emergency Services (Mayor) (Heating on 03/01/05) (Referred to Finance Committee) ........................................ 122 PUBLIC COMMENTS AND PUBLIC PRESENTATIONS (3 minutes per speaker) ASSEMBLY MEETING AND HEARING ANNO~CEMENTS February 15, 2005 07:00 PM Regular Assembly Meeting Soldotna ASSEMBLY COMMENTS T® PENDING LEGISLATION (This item lists legislation which will be addressed at a later date as noted.) le Ordinance 2004-19-34' Accepting $909,700 from the State of Alaska for Keystone Drive Road Improvement and Appropriating the Grant to a Road Service Area Capital Project Account (Mayor) (Heating on 02/15/05) (Referred to Finance Committee) e Ordinance 2005-03' Amending KPB 5.12.05003) to Require a Filing Fee for Appeals to the Board of Equalization (Mayor) (Hearing on 02/15/05) (Referred to Policies and Procedures Committee) e Ordinance 2004-19-28' Accepting and Appropriating a State Gram in the Amount of $75,000 for Construction of a Road to the Cooper Landing Senior Housing Site (Mayor) (Hearing Postponed to 03/01/05) (Refened to Finance Committee) February 1, 2005 Page 4 of 5 Ordinance 2004-35' Amending KPB Chapter 1.12 to Provide For Economic Summaries to be Attached to Proposed Ordinances (Glick) (Postponed until 03/01/05) (Referred to Policies and Procedures Committee) . Ordinance 2004-36' Amending KPB 5.18.430, Sales Tax Computation- Maximum Tax, By Increasing It From $500 to $1000 (Mayor) Postponed until 03/01/05) (Referred to Finance Committee) , Resolution 2005-006' Approving the Construction of Access Through Borough Land to the Cooper Landing Senior Facility as a Road Construction Project Pursuant to KPB 16.41.190 (Mayor) (Heating Postponed to 03/01/05) (Referred to Lands Committee) U. INFORMATIONAL MATERIALS AND REPORTS V. NOTICE OF NEXT MEETING AND ADJOURNMENT The next meeting of the Kenai Peninsula Borough Assembly will be held on February 15, 2005, at 7:00 P.M. in the Borough Assembly Chambers, Soldoma, Alaska. This meeting will be broadcast on KDLL-FM 91.9 (Central Peninsula), KBBI-AM 890 (South Peninsula), K201A O-FM 88.1 (East Peninsula). Copies of agenda items are available at the Borough Clerk's Office in the Meeting Room just prior to the meeting For further information, please call the Clerk's Office at 714-2160 or toll free within the Borough at 1-800- 478-4441, Ext. 2160. Visit our website at www. borough, kenal, ak. us for copies oft he agenda, meeting summaries, ordinances and resolutions. February 1, 2005 Page 5 of 5 -Department of Revenue State of Alaska Tax Division. Gaming Group 200,5 Gaming Permit Application PO Box 110420 AS 05.15.020 Juneau, AK 99811-0420 ., x} Telephone 907.465.2320 This form is also available on the Intemet at www. tax. state, ak. us/forms, asp ORGANIZATION INFORMATION I~ederal Employer Identification Number (EIN) I Permit Number Organization's Name Kenai Senior Connection, Inc. Mailing Address 361 Senior Court LC,ty ' IState IziPcoue Kenai AK 99611 TYPE OF ORGANIZATION. (Check one box. For clefin~tions seeAS 05.15.690 and 15 AAC 160 995.) Date Stamp (907) 283-4156 Fax Number (907) 283-3200 ,, , E-Mail Address rcraig@ci.kenai, ak. us [~ Charitable [-'1 Fraternal r-] Police or Fire Department ["] Civic or Service D Labor [""'1 Political ['"] Dog Mushers D Municipal,ty r'"] Religious ['"] Educat,onal r'-I Non Profit Trade Association r-] Veterans r-] Fishing Derby r-'! Outboard Motor Association D IRNNative Village .... ORGANIZED AS [~L-"-] Corporat,on D Partnership D Association PERSONS IN CHARGE OF GAMES. Persons must be active members of the organization, or an employee of the municipality, and designated by the orgamzat~on. Persons may not be licensed as an operator, vendor, or employee of a vendor. ~rir:nary Mem0er's First Name IM.,. Primary Member's Last'Name IAIternate Member's First Name IM.I. IAlternate Member's Last Name ~V~r~ni~ Poore I Sam !. ] Huddleston sac,al S~"~urity NUmber Daytime Telephone Number Social Security Number I Dayti;'ne Telephone Number ! (907) 283-9443 Home Ma~l~ng Address le Rock Dr. C,~ Kenai Has the primary memOer taken and passed the test? Permit numOer under which tt3e test was taken Home Mailing Address Box 3541 Zip Code City Zip Code 99611 Kenai 99611 D Yes ['"--]No Has t.e alternate meml:)er taken and passed t.e test? F~Yes ~No Permit number under which the test was taken._ 1 ;~ 7 3 THESE QUESTIONS MUST BE ANSWERED. (See instrucbons ) ['"'] Yes ~ No Yes ~ No Has any mem0er of management or any person who is responsible for gaming activities ever been convicted of a felony. extortion, or a violation of a law or ordinance of this state or another jurisdiction that is a cri~he revolving theft or dishonesty or a violation of gambling laws? Does any member of management or any person who is responsible for gaming activities have a prohibited conflict of interest as 0efined by 15 AAC 160.9547 We declare under penalty of unsworn falsification, that we have examined this application, including any attachments, and that to the best of our knowledge and belief, it is true and complete. We understand that any false statement made on this application or any attachments is punishable by law. ,, , I Prim,a'ry Member Signature .,-,, Printed Name Date l'.,,..',Z~.~.vj~,o,~.~ /_7~~ I Virginia Poore, 1-24-04 IIPresident..---, or Vice-President: Signature,,. fl(See instructions.) IPrinted Name I, Date [ .,, L~?~..~:.:~, ;'.% /./,/'P~,21~/ !Anna K. Wheeler , ],24-04__ D $0- $20.000 = $20 O0 D $20.001- $100.000 = $50 of this must be sent to all municipalities Two copies application applicable and boroughs. See instructions for mandatory attachments. Form 04-826 Application Front (Rev 09/04) Page 1 Permit Fee: 'Check the appropriate box and enclose the correct amount.' ' The permit fee is based on 20.04 estimated gross receipts. Make Checks Payable to the State of Alaska $100,001 or more = $100 2005 Gaming Permit Application IOrgan,zation 'Name Kenai Senior Connection, Inc. GAME TYPE. (Use for completing mformat~on below ) [--'1 Bingo r-'l Deep Freeze Class,c 1~] Raffles r'-] Dog Musher's Contest r-'] contest of Skill O Goose Classic r'-i canned salmon Classic [-'1 Ice Class~c r--] K~ng salmon classic -=1 Mercury Classic Race Classic Rain Clasmc r-] Salmon Classic [Perr~,t NumOer 1873 ACTIVITIES CONDUCTED BY ORGANIZATION ,, 'Facility Name Physical Address Kenai Senior Center 361 Senior Ct., Kenai, AK Game Type(s) Raffles Snow Macl~ne Classic SpecIal Draw Raffle An,mai Classic (Rat Race) Animal Classic (Chicken) Is Facility ..... [--]Owned r"-] Leased [ Donatecl ,, [~Owned --']Leased [~]DonateO -~]'Owned [--"]Leased [--']Donated , , b. JOwne0 p']Leased r']Donated MANAGER OF GAMES. As defined in 15 AAC 160.995 and 15 AAC 160.365. (If you have indicated a self-directed bingo or puli-tab game aOove, then you need to appoint a manager below.) Manager's First Name Manager's Last Name Security Number Daytime Telephone Number Mailing Address City Zip Code ACTIVITIES CONDUCTED BY VENDOR. (Pull-tabs are the only games a vendor can conduct.) Vendor registration and fee must be attached. -Name of Vendor Physical Address , ,, , ...... NONE ACTIVITIES CONDUCTED BY OPERATOR IName of Operator , Physic. al Address NONE ACTIVITIES CONDUCTED BY MULTIPLE-BENEFICIARY PERMITTEE , , Name of MBP , Physical Address ~O~IE ..... Game Type(s) Operator's Lic. No. Game T~)e(s) MPB Permit No._ '_[ DEDICATION OF NET PROCEEDS. The orgamzation must use the net proceeds from gaming activities for pol~t~cal, educat,onal ov,c. public chantable, patriotic or religious uses ~n Alaska. (See statutes and regulations for specific rules.) In the space prow0ed, tell how your organization w~il use the net proceeds from gaming actiwt~es (Be specific ) All proceeds fr°~ raffles will be donated to the programs and activities of the Kenai Senior Citizens Center. , Form 04-826 (Rev 09/04) Back OF DEPARTMENT OF COMMERCE COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION OF COMMUNITY ADVOCACY Frank H. Murko~vski, Governor The Honorable John Williams, Mayor City of Kena:. 210 Fidalgo, Suite 200 Kenai, AK 99611-7794 January 14, 2005 RE: FY 06 POPULATION DETERMINATION Dear Mayor Williams: The Department of Commerce, Community, and Economic Development annually determines the population of each municipality for use in various financial assistance programs. Population estimates are prepared by the State Demographer at the Department of Labor and Workforce Development. The 2004 population of the City of Kenai has been determined to be 6,809. If you do not agree with this figure, the City may request a population adjustment by documenting its own population. Cities with a population of less than 1,000 must conduct a "head count census." Cities with 1,000 or more residents may use a "head count census" or the "housing unit method," which includes specific statistical measures. The department requires that the population adjustment be fully documented, that the city council pass a resolution adopting its results, and that it be completed and postmarked by April 1, 2005. If you choose to request a population adjustment, please contact the department for a copy of the FY 06 Head ~ , ~v~tnoa r'opmm~on instruction Manual. These manuals provide additional info~ation on the procedures and documentation required. Contact Indra ~iaga, Research Analyst, (phone: 907-2694521, e-mail: hdra_~iaga~co~erce.state.ak, us) or me (phone: 907-465-4733, e-mail: Bill_Rolfzen~co~erce.state.ak. us)for additional info~ation. Sincerely, Bill Rolfzen Program Administrator P.O. Box 110809, Juneau, Alaska 99811-0809 Telephone: (907) 465-4750 Fax: (907) 465-5085 Text Telephone: (907) 465-5437 Website: http://www, commerce.state.ak.us/dca .l economy that benefits fro , diversity ew economies, if any in this state, have bragging rights equal to those of the Kenai Peninsula Borough. Most communities struggle to diversify their economies, but the Kenai Peninsula accomplished this long ago. (See Exhibit 1.) Fishing, the visitor industry, oil and gas, refining, government, and its attractiveness as a haven for retirees, are the fundamental economic drivers diverse, rich commercial fishery; it also includes a large and famous sport fishery, without rival in the state, its oil and gas industry not only supports local activity but it is home to service companies that also do work on the North Slope. It generates value added activity such as oil refining and petrochemical manufacturing. In addition, a significant number of Kenai Peninsula residents work on the North Slope but spend their paychecks of the Kenai Peninsula economy. Each category, locally. And they aren't the only ones. It appears upon examination, reveals particulars that further a growing number of people are choosing to live on the Peninsula because of the quality of life it enhance the diversity. The Kenai's visitor industry is defined not only by the number of cruise ships that dock in Seward, but also by the thousands of independent visitors from around the world and nation, along with the hordes of Alaskans that descend on the Peninsula every year. Its fishery is defined not only by its Where People Work In the Kenai Peninsula Borough Wage and salary employment 2003 Financial Trade 2.4% 13.8% Construction, 6.4% Nat. Res. 6.2% Prof. Svcs. 5.2% offers at an affordable price. Their income source is eisewhere~sometimes in the form of a retirement check or sometimes a paycheck from elsewhere in the state. Not last, nor least, is the continued expansion of the region's support sector~retail, health care, and professional services. As a result of this expansion, Peninsula residents are satisfying fewer of their needs from Anchorage or elsewhere but instead do so locally. This effectively keeps more income close to home and generates further economic activity. i.2% The Peninsula's diversity does not guarantee economic health. Struggles and periods of economic woe do come, and the past five years Itil furnish plenty of examples. But when one of the sectors goes through a period of difficulty, the others keep the overall economy afloat. Also, Leisure/Hosp. there is always the possibility that one of the ~3.5% industries that has a foothold in the economy will go through an expansionary period. 6.8% Gro;vth tnodest since 2000 Government 26.3% Information 1.4% Other Svcs. 4.1% Ed./Health 8.7% Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section In a bygone era, the Kenai Peninsula's economy was on a fast track, like much of the state's economy. In the 1970s, employment grew by seven percent a year and in the 1980s by five percent per year. in the 1990s the pace moderated to two percent per year and over the past four years it has further slowed to approximately one percent per year. (See Exhibit 2.) There are several reasons for the slowing of the pace of growth. A number of the industries that have historically been characterized as the backbone of the Peninsula's economy have struggled in recent years. This group includes the commercial fisheries, the oil and gas industry, and timber. Even its visitor industry went through some leaner years. All of these industries remain important elements in the economy but they are not shouldering growth as they did in the past. In- stead it is the area's support industries that keep its economy moving ahead, albeit at a much slower pace. A deep and broad visitor sector It is probably no exaggeration to characterize the Kenai Peninsula's visitor industry as the most diverse in the state and one of the most developed. It reaches out to every corner of the borough, its location and wide variety of attractions make for an unbeatable combination. Access is easy--it is within a short driving distance of the state's largest city and airport and is also accessible by sea for cruise ships and the state ferry system. Activities include sightseeing, hiking, camping, nature watching, boating, hunting, and a sport fishery of world renown, the largest in the state. Unlike many other visitor destinations that depend on one category of visitor, the Peninsula gets them ail-cruise ship visitors, independents from around the country and world, and a heavy dose of Alaska visitors, most of whom come from the Anchorage/ Mat-Su region but from elsewhere as well. Many of the in-state visitors bring visiting relatives with them. This diverse support for the Peninsula's visitor industry enables it to adjust to dramatic changes, such as losing many of its cruise ship passengers to another port, or general national economic woes. Probably the single largest attraction on the Peninsula is sport fishing. The Kenai/Russian River system is the single most heavily utilized sport fishery in the state. And besides this there are the huge sport fisheries of Seward, Homer, Soldotna, Kenai and Ninilchik. In 2003, 848 guided fish charter boats were operating on the Peninsula~making it the hands down largest charter boat fleet in the state. Charter boat users are a minority of sport fishermen; most of them fish on their own. in 2003, visitor relatect taxable sales reached $71.9 million, or nearly ten percent of all taxable sales in the borough. In 1991 visitor taxable sales represented only seven percent of all sales. Between 2000 and 2003 employment in the leisure and hospitality industry increased by 332 jobs~bested only by health care & social assistance. (See Exhibit 3.) New hotels such as the Aspen Hotel in Soldotna and new eating and drinking places have bolstered these numbers. The single largest blow to the Peninsula's visitor sector came this summer season when half of the cruise ships that normally dock in Seward chose to dock in Whittier instead. This will be a significant hit for Seward, but the city's visitor industry is diverse enough to weather this big loss. Oil and gas sector struggles The state's first oil production came out of Cook Inlet and some believe it ensured Alaska's statehood. But this also makes it Alaska's mature oil province. Oil production on the Peninsula peaked in 1970 at 226,000 barrels of oil per day compared to 29,000 today~so it certainly has seen bigger days in the past. Unlike oil, natural 17,000 Employment Growth About 1% Per year 2000-2003, Kenai Peninsula Wage and salary employment 16,000 15,000 14,000 13,000 12,000 11,000 10,000 ~ ~ ~ ~ 1991 1993 1995 1997 1999 2001 Source:A~skaDepanmentofLaborand Wo~eDeveiopment. ResearchandAnalys~Section gas production has remained far more stable and has helped stem even steeper employment declines. The natural gas produced on the Peninsula generates power and heat for most of the homes in Southcentrai Alaska. Despite its status as Alaska's "over-the-hill" oil province, the local industry remains an important economic actor~particularly on the Central Peninsula. Oil and gas is still the single largest source of high paying jobs. In 2003, the oil and gas industry directly generated approximately 1,000 wage and salary jobs on the Peninsula, or nearly six percent of all wage and salary employment. Because of the higher wages, (see Exhibit 4) it represents almost 12 percent of ali wage and salary payroll. This is a conservative number because firms such as construction contractors, logistics support, and others that are directly engaged by the industry are not included in these figures. Not only does this industry play an important employment role, but nine of the Peninsula's top ten taxpayers are attached to the oil industry. Kenai Peninsula Borough Average monthly employment by industry sector 2000 2001 2002 2003 Percent Change Change '00-'03 '00-'03 Total Wage and Salary Employment3 Agriculture, Forestry, Fishing, Hunting~ Natural Resources2 3 Logging Mining3 Oil and Gas3 Construction Manufacturing Seafood Processing Trade, Transportation, Utilities Wholesale Retail Transportation, Warehousing, Utilities Information Financial Activities Professional Services Educational & Healthcare Services Healthcare/Social Assistance Leisure & Hospitality Accommodations & Eating & Drinking Accommodations Eating and Drinking Other Services Government Federal Government State Government Local Government~ Local Education Tribal Governmen¢ ~ Excludes logging (2000-2003) ~ Includes logging (2000-2003) 3Adjusted for reporting error (2000) ' Adjusted for classification error (2000) 16,994 17,361 17,628 17,774 780 4.6% 21 26 22 31 10 47.6% 1,422 1,322 1,366 1,108 -314 -22.1% 70 69 65 71 1 1.4% 1,352 1,253 1,301 1,037 -315 -23.3% 1,320 1,221 1,264 999 -321 -24.3% 1,034 1,195 1,200 1,133 99 9.6% 1,347 1,213 1,075 1,200 -147 -10.9% 656 467 328 562 -94 -14.3% 3,434 3,510 3,580 3,378 -56 - 1.6% 200 268 268 197 -3 -1.5% 2,276 2,263 2,330 2,260 - 16 -0.7% 958 979 982 921 -37 -3.9% 194 246 262 253 59 30.4% 422 414 445 426 4 0.9% 702 779 829 921 219 31.2% 1,219 1,277 1,346 1,545 326 26.7% 1,136 1,202 1,269 1,481 345 30.4% 2,062 2,094 2,191 2,394 332 16.1% 1,804 1,820 1,894 2,055 251 13.9% 603 591 603 691 88 14.6% 1,201 1,229 1,291 1,364 163 13.6% 706 801 773 726 20 2.8% 4,427 4,486 4,538 4,658 231 5.2% 436 414 428 427 -9 -2.1% 1,027 1,059 1,085 1,096 69 6.7% 2,964 3,013 3,025 3,135 171 5.8% 1,413 1,442 1,340 1,370 -43 -3.0% 151 116 138 154 3 2.0% Source: Alaska Department of Labor and Workforce Development. Research and Analysis Section Another important factor is that this industry specifically in the Agrium plant, ~vhich recently provides support to the North Slope oil fields. The cut its workforce bv 60. A recent ruling in favor 2000 Census counted 755 Kenai Peninsula of Agrium should prevent further layoffs in the residents working on the North Slope. Only short term. Anchorage and the Mat-Su Borough provide more workers. If these workers are being paid the average oil industry wage, the injection of cash coming from outside the Peninsula adds up to a significant economic force. Much of the oil industry's infrastructure is old and big new investments are not on the horizon. In recent years employment went through another period of downsizing~321 fewer jobs existed in 2003 than in 2000. Even the size and life of Cook Inlet's gas reserves are being debated~some believe that at current use they could begin to run dry. by 2015. Higher natural gas prices are spurring additional exploration and could prevent declines of natural gas production. In 2003 Unocal found the Happy Valley gas field near Niniichik and built a spur line. Marathon Oil just made a discovery in the Kasilof area that might prove commercial. Some of the oil platforms are for sale and a few have been shut down. But periodically there is a strong renewed interest in exploration. Stalwarts such as Chevron, Mobil, Shell and others have left the area, but they have been replaced by new companies such as Pelican Hill, XTO Energy, Union Texas Petroleum Corp., and Forest Oil. Both Forest Oil and ConocoPhillips Petroleum have plans to drill new prospects and XTO Energy is reworking older properties. So companies remain that believe promising potential still exists on the Peninsula. This is only part of the story. Much of Cook Inlet's oil and gas provides feedstock for a number of "value added" activ!ties. They include Tesoro's oil refinery, ^gruim s urea and ammonia plant, and ConocoPhillips ~etroleum's LNG plant--the only exporter of natural gas in the state, logether, the former two employ 436 workers. (£onoco?hillips' numbers are already counted in the oil industry.) If these other related payrolls are included with the oil and gas industry's earnings, then eighteen percent of the ?eninsula's payroll comes from the hydrocarbon sector. [mployment among this group of employers has declined~ Commercial fishing loses economic Twelve years ago, the seafood industry was by far the most important source of income for residents of the Kenai Peninsula Borough, but times have changed. In the peak year of 1992, the local harvest exceeded $129.3 million. No other industry, not even the public sector, produced a larger gross payroll. Participation in the various fish species was high. A decade later in 2002, (the most recent data recorded by the Commercial Fisheries Entry Commission) Kenai Peninsula fishermen landed a smaller harvest, down nearly 30 percent from 1992 volume, but the value of the catch had fallen much more dramatically. The 2002 harvest brought just $50.5 million. (See Exhibit 5.) This translates to a drop of 61 percent in harvester earnings from ten years ago without factoring in the impacts of inflation. Salmon prices are the cause. In 1992, salmon, the most targeted and most abundant species, contributed 68 percent to local harvester earnings. By 2002 salmon dropped to 30 percent, and halibut became the largest contributor to earnings (see Exhibit 6) with a share of harvest volume of just seven percent. The Commercial Fisheries Average Monthly Earnings Kenai Peninsula Borough-2003 Average $2,756 Oil & Gas Construction ~ Government ~. Trans/Warehouse ~ Financial ~ Retail ~ Healthcare/Social ~ Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section Entry Commission's records of 2002 confirmed that average fishing income for local halibut fishermen, a group of 333 individual quota owners in 2002, ranked much higher than average earnings of the local 774 salmon permit holders. Last year, Homer became the halibut capital of the state, recording the most pounds landed while Seward claimed the top spot in sablefish deliveries. Most Kenai Peninsula salmon fishermen lower their nets in Cook Inlet and in neighboring areas of Prince William Sound or Kodiak, but a fleet of more than 100 boats travels west to salmon grounds in Bristol Bay, the Alaska Peninsula, or the Chignik area. Salmon prices differ from one area to the next but usually Cook Inlet red salmon is considered a premium fish, fetching higher prices than red salmon caught in most neighboring and western areas. Halibut, cod, and other groundfish harvesters of the Kenai Peninsula typically fish in the Gulf of Alaska and boat size often determines the individual harvest volume and fishing effort. The Kenai Peninsula's crab fleet consists of only a few members who make the long voyage to the fishing grounds of the Bering Sea. Salmon harvest prices push the industry in to decline Permit holders, crews, and seafood processing employment have been affected everywhere by the plunge in salmon prices. A look at the number Several Lean Years For Kenai Peninsula fishermen Resident Fishing Income, SMillions $140~ $120 t-- $10 0 '--- $8O $6O $4O $2O $0 Source: Commercial Fisheries Entry Commission of Kenai Peninsula permit holders actually fishing reveals the downturn in participation, in 2002, only 1,029 local fishermen, who own one or several species permits, attempted to earn income from commercial fishing. Participation fell by 32 percent compared to 1992. In the same period, average monthly seafood processing employment suffered a loss of 572 jobs, which means that the Kenai Peninsula seafood processing crew of 2002 was only half as strong as in 1992. Moreover, several processing plants have ceased to operate in the past twelve years due to lack of profits. Adverse developments in salmon markets have turned the Kenai Peninsula's most profitable industry into a weaker performer. In 2002, retaii's total payroll was larger than local fishing income. Although total fishing earnings for 2003 and 2004 have not been computed, harvest data indicate that Cook Inlet fishermen had two good years. Catches of red salmon, the most profitable salmon species for local fishermen, were up in 2003 and 2004. Prices were up slightly in 2003 butwhether they held in 2004 is still questionable. (Red salmon harvest prices for Cook Inlet were not available.) Prices in several other areas fell this year because of the abundant harvests. High fuel costs during the 2004 season will also impact fishermen's earnings. Services keeps overall employment in the black The Peninsula's service sector is what kept employment inching forward in recent years-- probably no surprise to residents, particularly those living on the Central Peninsula. A real standout was the growth in health care & social assistance, which mirrors its phenomenal growth in every corner of the state. During the past three years it grew by more than 30 percent. Another industry in the services sector that has done quite well is leisure & hospitality, which reaps major benefits from the visitor industry. New hotels, lodges, and restaurants have insured further expansion of this industry. Population growth and "import substitution" are other important factors in the expansion of the Peninsula'sservice sector. More business services, health care, personal services and other types of services are now available locally. Because the Peninsula now provides for more of its own needs, the economic multiplier effect of these expenditures grows, which in turn leads to additional expansion in these industries. One industry in the service sector that did not grow was retail trade. Retail employment actually declined between 2000 and 2003, the opposite of statewide trends. This is largely the result of the closure of Kmart in March 2003 when approximately 100 jobs were lost in the City of Kenai. When the 2004 data become available, this trend will probably reverse itself because a new Home Depot with 150 employees opened in early 2004 in the old Kmart building, and by late 2005 a new Fred Meyer will open in Homer. Governme~t provides some stability A little over a quarter of the wage and salary jobs on the Peninsula are with government~which is fairly close to the statewide average. Two thirds of these jobs are with local government, and more than half the local government jobs are in education. In fact, the single largest employer in the borough is the Kenai Peninsula Borough School District. In 2002 the district's employment declined, along with enrollment. A few schools have even closed. But the rest of local government's employment has crept up enough to more than offset these losses. One reason local government is so prominent in the borough is that both the South Peninsula and Central Peninsula hospitals receive significant local public funds and are therefore accounted for under local government. Neither federal nor state government employment levels have changed much in recent years. At the federal level the big agencies are the Federal Aviation Administration, the Bureau of Land Management, and other natural resource agencies. At the state level some of the large employers are Spring Creek and Wildwood 'Correctionai Centers in Seward and Kenai, respectively, and the Departments of Fish and Game and Transportation. Population now grows slowly, and is not ~ erv diverse Since 1990 the Kenai population has grown by 26 percent, from 40,802 to 51 ,'220 in 2003, compared to 18 percent statewide. (See Exhibit 7.) Only the boroughs of Anchorage, Fairbanks and the Mat- Su have larger populations than the Peninsula. In recent years this growth has slowed. Since 2000, its growth averaged less than one percent per year--not much different than employment, and a bit slower than statewide. The Peninsula's geography is diffuse. Its population of more than 51,000 is spread out among 31 identified communities that formed in all shapes and sizes. Most of the population is spread out along the highways outside of incorporated communities. Five of its communities are accessible only by plane or boat. When one thinks of the Peninsula, it is usually its largest cities--Kenai, Soldotna, Homer, and Seward, that come to mind, but only 37 percent of the borough's population lives in them. The biggest population concentration lives in the area immediately surrounding the communities of Kenai and Soldotna. The areas with strong growth include Soldotna, Kasiiof, Nanwalek and the Homer area. The Seward area's population has changed little since 2003 and a few communities have actually lost population. Halibut Top 2002 Moneymaker For Kenai Peninsula fishermen Halibut 33.7% Herring 2.7% Groundfish 10.0% Crab 10.5% Sablefish 12.2% Source: Commercial Fisheries Entry Commission Salmon 30.4% 7 Population by Community Annual "i Kena Peninsula Borough 2000-2003Change Average 2000- Percent 2000 2001 2002 2003 2003 Change Kenai Peninsula Borough 49,691 50,051 50,486 51,220 1,529 0.9 Anchor Point CDP 1,845 1,824 1,797 1,826 -19 -0.3 Bear Creek CDP 1,748 1,843 1,832 1,823 75 1.3 Beluga CDP 32 24 25 26 -6 -6.4 Clam Gulch CDP 173 169 174 176 3 0.5 Cohoo CDP 1,168 1,180 1,210 1,201 33 0.9 Cooper Landing CDP 369 393 371 358 -11 -0.9 Crown Point CDP 75 ffi 88 78 3 1.2 Diamond Ridge CDP*** 1,802 1,821 1,112 1,086 -716 -15.3 Fox RiverCDP 616 597 5C::~ 5~3 -53 -2.8 Fdtz Creek CDP 1,603 1,674 1,737 1,740 137 2.5 Funny River CDP 63~ 627 686 705 69 3.2 Halibut Cove CDP 35 29 28 25 - 10 - 10.3 Happy Valley CDP 489 507 520 503 14 0.9 Homer city *"* 3,946 3,885 4,641 4,893 947 6.6 HoDoCDP 137 145 152 161 24 5.0 Kachemak city 431 428 426 473 42 2.9 Kalifornsky CDP 5,846 6,041 6,145 6,230 384 2.0 Kasiiof CDP 471 454 504 571 100 5.9 Kenai city 6,942 6,910 7,109 7,125 183 0.8 Lowell Point CDP 92 97 108 89 -3 -1.0 Miller Landing CDP *** 74 71 0 0 -74 -- Moose Pass CDP 206 207 216 221 15 2.2 Nanwalek CDP * 177 185 219 214 37 5.8 Nikiski CDP 4,327 4,378 4,345 4,357 30 0.2 Nikolaevsk CDP 345 340 323 313 -32 -3.0 Niniichik CDP 772 762 761 777 5 0.2 Port Graham CDP ' 171 179 175 165 -6 -1.1 Primrose CDP 93 99 92 87 -6 -2.1 Ridgeway CDP 1,932 1,969 1,961 2,011 79 1.2 Salamatof CDP * 954 8~ 895 ~2 -52 - 1.7 Seldovia * 430 437 451 432 2 0.1 Seldovia city 286 307 324 300 14 1.5 Seldovia Village CDP 144 130 136 138 -6 -1.3 Seward city 2,830 2,767 2,755 2,733 -97 -1.1 Soldotna city 3,759 3,813 3,889 4,059 300 2.4 Sterling CDP 4,705 4,780 4,777 4,888 183 1.2 Sunnse CDP 18 16 14 15 -3 -5.6 lyonek CDP * 193 162 182 193 0 0.0 Balance of Kenai-Cook Inlet census subarea 227 229 187 188 -39 -5.8 Balance of Seward-Hope census subarea 22 23 13 13 -9 -15.8 Native Villages that overlap multiple CDPs Kenaitze * Ninilchik * 29,320 30,173 30,435 30,877 1,557 1.6 13,264 13,578 13,696 13,895 631 1.4 CDP-Census Designated Place *Alaska Native Village Statistical Area *'Tribal Designated Statistical Area '" Homer annexed part of Diamond Ridge and all of Miller Landing 3/20/02. Sources: US Census 2000, Alaska Department of Labor and Workforce Development. Research and Analysis Section. Demographics Unit. The borough's population is considerably less diverse than the state's. Nearly 87 percent of the population is white compared to 71 percent statewide. Native Alaskans make up the second largest group with 7.9 percent of the population, and most of these Natives belong to Kenaitze tribe. Hispanics form the next largest minority group at 2.3 percent of population. The ratio of males to females is almost identical with the rest of the state: for every 100 females there are 107 males. The aging population may become a powerful economic force The median age for the borough's population was 36.7 in 2002, which is four years older than the state's median age. The population of the Peninsula has a larger share of population over 55 and a smaller share younger than five. Nearly 18 percent of the borough's population is over 55 versus 14 percent statewide. A likely explanation for these demographic developments is that more residents are remaining when they retire. It is also possible that a significant number from elsewhere in Alaska and even from the contiguous states are moving to the Peninsula to retire. One could even go so far as to speculate that in recent years, without this trend, the Peninsula might have actually lost population. From an economic standpoint, attracting retirees may be an emerging force in parts of the borough. The relatively mild climate, lower cost of living, recreational opportunities, and attractive lifestyles the Peninsula has to offer are characteristics that have often proved a powerful force in resort communitiy development around the nation. Considering the future size of this retiree population in Alaska and the nation, this trend coulct become a growing factor and advantage for the Peninsula. The kui,,¥~i 5oiJotna ~'co~o~' ~irror?, tile b~-roufh The Kenai/Soidotna economic area is a near mirror image of the entire Kenai Peninsula Borough. It is not only the largest region; it is home to nearly two thirds of the borough's wage and salary employment. (See Exhibit 8.) What can be said about the diversity on the Peninsula , applies to this area, since it is home to all of the industries already mentioned. The area's wage and salary workforce is 460 larger than it was in 2000. Over the past four years the big losses have been in the oil anct gas sector and the fishing industry. Despite these losses, both industries continue to be mainstays in the area. In fact, the Peninsula's entire oil and gas sector can be found within the confines ofthis area. In 2002, fishermen on the Central Peninsula earned $10.3 million Kenai/Soldotna Area B Average monthly employment by industry sector 2000-2003 Percent Change Change 2000 2001 2002 2003 2000-2003 2000-2003 Total Wage and Salary Employment 10,934 11,241 11,478 11,394 460 4.2% Agriculture, Forestry, Fishing and Hunting 9 12 6 6 -3 -33.3% Natural Resources 1,369 1,268 1,316 1,054.~ -315 -23.0% Logging 44 46 46 50 6 13.6% Mining 1,325 1,222 1,270 1,004 -321 -24.2% Oil and Gas 1,315 1,210 1,257 991 -324 -24.6% Construction 716 861 825 742/' 26 3.6% Manufacturing 904 780 686 778.-/' - 126 - 13.9% Seafood Processing 387 202 106 224 -163 -42.1% Trade, Transportation, Utilities 1,976 2,072 2,230 2,140 / 164 8.3% Wholesale 139 212 212 140 1 0.7% Retail 1,551 1,533 1,576 1,585 34 2.2% Transportation, Warehousing, Utilities 286 327 442 415 129 45.1% Information 127 165 175 167 40 31.5% Financial Activities 257 249 267 261 4 1.6% Professional Services 566 642 696 783 217 38.3% Educational & Healthcare Services 771 789 828 962 / 191 24.8% Healthcare/Social Assistance 702 726 762 901 199 28.3% Leisure & Hospitality 1,078 1,125 1,152 1,155 ~'"' 77 7.1% Accomodations 8, Eating and Drinking 979 1,022 1,058 1,037 58 5.9% Accomodation s 261 281 298 269 8 3.1% Eating and Drinking 718 741 760 768 50 7.0% Other Services 524 556 551 520 -4 -0.8% Government 2,639 2,723 2,746 2,827 J" 188 7.1% Federal Government 261 224 232 234 -27 -10.3% State Government 535 548 560 568 3 3 6.2% Local Government 1,843 1,951 1,954 2,025 182 9.9% Note: Year 2000 and 2001 employment numbers for Kenai Peninsula School District are adjusted' Year 2000 contains adjustment for reporting error in oil and gas Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section and fished 467 permits. Several seafood processing plants have closed and some have resumed operation, reflecting uncertainties in ~he salmon fisheries. For the sake of simplicity we ctivided the Peninsula into three relatively large, distinct regions, the Kenai/Soldotna area or Central Peninsula, the Seward area, and the Homer region. Over the past four years the big growth industries for the area have been professional services, healthcare and social assistance and government. Although retail employment failed The Kenai River, home of the bi~c_.~gest sport fishery in the state, flows through the Kenai/Soidotna area. Some have estimated a fifth of the state's sport fishing takes place on this river system. Nearly 400 guides work the river. The area is home to other major sport fisheries and visitor attractions. The Central Peninsula is also the borough government's administrative center. Headquarters of the borough, the school district, and many of the major federal and state offices are also in this region of the borough, providing some stability to the area. Many Alaskans and other visitors view the to grow because of the closure of Kmart, the community of Homer as a picturesque hamlet by Central Peninsula is the undisputed center of the sea. In terms of population, Homer, with nearly commerce for the borough. More than 32 percent of ali retail sales come out of the Central Peninsula. To some extent this has always been true, but what has changed is that local retail development is becoming a viable substitute for retail services in Anchorage. Two of the top ten employers in the area are retailers. (See Exhibit 9.) The visitor industry makes its contribution to retail, services, and other growth on the Peninsula. The Largest Employers In the Kenai/Soidotna area-2003 Average Monthly Rank Company/Organization Employment 4,900 residents in 2003, has long since passed hamlet size. Over time it has developed from a fishing community to a~tourist mecca and a commercial center serving a much larger population. In 2003, approximately 11,600 people lived in the area within a stretch of road running about 35 miles north and 25 miles east of Homer, and an additional group of 840 people lived across Kachemak Bay. Homer has preserved its small town character. It still has a fishing community and an active artist group that celebrate its natural Business Activity 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O Kenai Peninsula Borough School District 870 Central Peninsula General Hospital 396 Kenai Peninsula Borough 368 Frontier Community Services 330 Agrium US Inc. 263-- Fred Meyer 231 Peak Oilfield Services 216 Safeway 204 Alaska Petroleum Contractors 202 Tesoro Alaska Company 172 Union Oil of California (UnoCal) 163 University of Alaska 139 City of Kenai 115 Central Peninsula Counseling Services 115 Laidlaw Education Services 110 Alaska Department of Corrections 109 Lutheran Health Systems 97 VECOAlaska 95 Snug Harbor Seafoods 95 McDonald's 94 Local Government Local Government Local Government Janitorial Services Petroleum Products Grocery/General Merchandise Oilfield Services Grocery Store Oilfield Services Refinery Oil and Gas Extraction State Government Local Government Health Care School Bus Transportation State Governemt Nursing Care Facility Oilfield Services Seafood Processing Eating Establishment Source: Alaska Department of Labor and Workforce Development. Research and Analysis Section beauty. Homer has become popular as a retirement community and locale for summer homes. These residents, whether part-time or full time, have closer ties to the community than typical tourists. Still, Homer's visitor industry is also thriving and contributes to the support of local cottage industries including bed and breakfasts and arts and crafts. industry empio¥'me,~t Wage and salary employment in the Homer area, which includes Ninilchik and the Homer periphery, has grown steadily. Between 2000 and 2003 nearly 200 payroll jobs were created. (See Exhibit 10.) Homer's strongest job creation has been in industries that either cater to tourism or provide services to the area's population. Employment growth in health care and the leisure and hospitality industries are examples. ¢over~nent among area's largest c~nDlovcrs Among Homer's largest employers are three government entities. (See Exhibit 11.') Those three alone represent nearly 20 percent of the area's total wage and salary employment. The local hospital, the second largest employer, belongs to the public sector because it receives public revenues. It may also come as a surprise that Chugach Electric is on the Homer area top employer list. Its Beluga power plant, situated across Cook Inlet, is within the borough. Lower Peninsula-thsee H°merctor 2000_2003Areal O Average monthly employment by industry Percent Change Change 2000 2001 2002 2003 2000-2003 2000-2003 Total Wage and Salary Employment 3,304 3,358 3,434 3,500 196 5.9% Agriculture, Forestry, Fishing and Hunting 7 6 6 8 1 14.3% Natural Resources 39 41 40 40 1 2.6% Logging 25 23 19 21 -4 -16.0% Mining 14 18 21 19 5 35.7% Construction 229 223 228 243 14 6.1% Manufacturing n/a n/a n/a 171 n/a n/a Seafood Processing n/a n/a n/a 138 n/a n/a Trade, Transportation, Utilities 834 837 845 770 -64 -7.7% Wholesale 19 13 13 14 -5 -26.3% Retail n/a n/a n/a 425 n/a n/a Transportation, Warehousing, Utilities 307 313 320 331 24 7.8% Information 47 59 63 62 15 31.9% Financial Activities 88 85 66 64 -24 -27.3% Professional Services 110 108 113 117 7 6.4% Educational & Healthcare Services 293 326 350 439 146 49.8% Healthcare/Social Assistance 291 324 348 437 146 50.2% Leisure & Hospitality 481 480 512 567 86 17.9% Accommodations & Eating and Drinking 417 412 439 494 77 18.5% Accommodations 145 130 139 141 -4 -2.8% Eating and Drinking 272 282 300 353 81 29.8% Other Services 141 116 114 105 -36 -25.5% Government 869 892 912 914 45 5.2% Federal Government 70 72 76 54 -16 -22.9% State Government 129 131 141 142 13 10.1% Local Government 670 689 695 718 48 7.2% n/a Data not available Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section Entrepreneurship is a key element in Homer's economic equation According to Census 2000, Homer has the highest percentage of self-employed workers on the Kenai Peninsula. Nearly 19 percent of the local labor force had businesses, fished commercially, owned charter boats, operated them as a skipper or a deckhand, or were in other self-employment. Many of Homer's self-employed were artists or worked in other professional capacities. Tourism and commercial fishing are industries that involve a high rate of self-employment and both industries are central to Homer's economy. Commercial fishin~ is the traditional industry The Homer area has the highest number of local residents in the Kenai Peninsula Borough who depend on commercial fishing as a livelihood. Many fishermen participate in multiple fisheries often far from home. In 2002, Homer area fishermen claimed nearly 64 percent of all harvest income earned by Kenai Peninsula fishermen. This income is important for Homer's economy. The $32 million supplement amounted to a 25 percent increase to Homer's total payroll earnings in 2002. 1 Homer Area's Largest Employers 2003 Average Monthly Rank Company/Organization Employment Business Activity I KenaiPeninsulaBoroughSchooIDistdct 311 2 South Peninsula Hospital 268 3 South Peninsula BehavioraI Health Svcs 160 4 City of Homer 5 LandsEnd Resort 6 Safeway dba. EagleStore 7 Homer Electric Association 8 Chugach Electric Association 9 Deep Creek Custom Packing 10 Job Ready Inc. Local Government Local Govemment Health Care 111 Local Government 87 Resort 81 Grocery Store 73 Utility 67 Utility 54 Seafood Processing 48 Social Assistance Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section Tourisl. looms iai'ge The impact of tourism on the local economy is hard to measure but it can be assumed to be large. Homer's cottage industries, including its numerous bed and breakfast places, accentuate the fact that Homer is a hospitality town. in addition, there are several hotels and many food service places to accommodate visitors. Sport fishing and sightseeing charters, street vendors on the Homer Spit, gift shops, recreational businesses, art galleries, nature information centers, and the Pratt Museum are all in business to entertain visitors. ~eward In the Kenai Peninsula Borough, the Seward area is smallest in population. This magnificent land- scape lies at the head of Resurrection Bay and between the Kenai and Chugach mountain ranges. In 2003, Seward, with its outlyling areas, was home to 5,044 people who resided either within the city limits or in nearby residential neighborhoods. Its basic sector industries are government, tourism, and commercial fishing. Overall employment growth stalls Average monthly wage and salary employment in Seward has not advanced in the past four years. In fact, between 2000 and 2003 it showed a slight decline. (See Exhibit 12.) While public sector employment has gained ground, the private sec- tor has registered job losses. Overall private sec- tor employment declined by 116 jobs since 2000. Most of these losses occurred in seasonal indus- tries. It would appear that tour operators worked with smaller staffs in 2003 than in previous sea- sons and that seafood processing employment also declined. Government employment provides stability in Seward's economy The public sector is Seward's largest employer, claiming one third of all wage and salary jobs. The Spring Creek prison is the largest employer in the area. (See Exhibit 13.) The Kenai Penin- sula Borough School District is in the runner-up position. In most communities schools are on the large employer list. In addition, Seward's Alaska Vocational Technical Education Center (AVTECI is a large and unique public sector em- ployer. Seward benefits not only from its direct employment impact but also from the presence of a growing stuclent population. ?he :,i. i or i t,'. stry l as beconase a staple Seward's visitor industry differs from other areas in the borough because it is a cruise ship passenger gateway. This year, cruise ship traffic will be down 50 percent because Whittier became the preferred port of call for one major cruise ship line. Post-season calculations will ctetermine how the downturn has impacted the local visitor industry. Yet, Seward does not rely on cruise ship clientele only. It attracts many visitors from Anchorage and elsewhere who pursue recreational activities and participate in staged special events. Seward's Fourth of July Mount Marathon race and its Silver Salmon derby have become major Alaska attractions. Its outdoor entertainment includes tours of Kenai Fiord, which provide access to maritime wildlife viewing amid a spectacular landscape. Seward also hosts weekend travelers from Anchorage, who store their recreational boats in Seward's small boat harbor. More than 80 percent of the recreational boats in this harbor belong to Anchorage boaters. The presence of a large military resort that includes a hotel, RV park, and campground is an additional bonus for Seward's visitor industries. The area's recreational potential is well known on Anchorage's large air force and army bases. The Seward Area Average monthly employment 2003 Change 2000 2001 2002 2003 2000-2003 Total Wage and Salary Employment 2,348 2,317 2,254 2,312 -36 Natural Resources 13 12 9 11 -2 Mining 13 12 9 11 -2 Construction 67 84 92 73 6 Manufacturing 277 247 206 252 -25 Seafood Processing 222 193 148 200 -22 Trade, Transportation, Utilities 589 559 458 407 -182 Wholesale 38 41 42 42 4 Retail 190 187 208 203 13 Transportation, Warehousing, Utilities 361 331 208 162 - 199 Information 13 10 10 10 -3 Financial Activities 46 37 58 52 6 Professional Services 15 20 18 14 -1 Educational & Healthcare Services 146 157 167 144 -2 Healthcare/Social Assistance 135 147 157 143 8 Leisure & Hospitality 340 326 363 464 124 Accommodations & Eating and Drinking 252 232 245 326 74 Accommodations 97 89 89 158 61 Eating and Drinking 155 143 156 168 13 Other Services 148 118 107 103 -45 Government 694 747 766 774 80 Federal Government 103 114 116 114 11 State Government 351 368 373 374 23 Local Government 240 265 277 286 46 Source: Alaska Department of Labor and Workforce Development, Research and Analysis Section Percent Change 2000-200; -1.5% -15.4% -15.4% 9.0% -9.0% -9.9% -30.9% 10.5% 6.8% -55.1% -23.1% 13.0% -6.7% -1.4% 5.9% 36.5% 29.4% 62.9% 8.4% -30.4% 11.5% 10.7% 6.6% 19.2o/ 'fh¢ se3food i;~dustr'~' Seward's commercial fisheries, like many in the state, have seen dramatic changes in recent years. In the past, Seward accommodated ~he Prince William Sound herring fleet, a fishery ~hat has been closed in most years since the catastrophic oil spill of 1989. Despi~e the near collapse of the close-by herring fishery and depressed prices for salmon, harvester income did not fall as hard as in other areas in the borough. Healthy sablefish and halibut fisheries have helped to prevent the erosion of harvest values. In 2002, the two species contributed 81 percent to the harvest value of $5.3miilion for 45 local permit holders. Income from the salmon fisherv accounted for a mere 14 percent of total payments received by fishermen for ~heir catch. A decade earlier, 86 Seward permit holder earned $7.4 million from a more diversified fishery. Salmon yielded one third of the total harvest value. Although harvest values have declined between 1992 and 2002 by 28 percent, average earnings per individual permit holder have increased by 37 percent. Moreover, seafood processing employment in Seward has not suffered severe losses. .~ LI Ill I11 ,.t FV The s~rength of the Peninsula's economy is its economic and geographic diversity. That strength will not necessarily ensure future economic growth. The ~raditional leaders will remain important to its overall economic picture but they face challenges. Fisheries, particularly those tied ~o salmon, will continue to feel the global economic pressures. It will take a major oil or gas discovery to reverse the downward trend of the Peninsula's hydrocarbon sector. The outloOk for its visitor industry remains robust along with its attraction as a residential area. The continued expansion of its support services should also play a positive role. Largest Employers in Seward Area I 2003 Avg. Monthly Company/Organization Employment Alaska Department of Corrections (Spring Creek Correctional Center) 191 Kenai Peninsula Borough School District 108 Seward Association for Advanced Mariners (Sealife Center) 117 CIRI Alaska Tourism 96 City of Seward 93 Icicle Seafoods 90 Alaska Dept. of Labor and Workforce Development (AVTEC) 76 Ocean Beauty Seafoods 69 U.S. Department of Agriculture (Forest Service) 66 Safeway (Eagle Store) 58 Source: Alaska Department of Labor and Workforce Develo,~ment, Research and Analysis Section Business Activity State Government Local Government Aquarium/Research Institute Sightseeing/Hotel Local Government Seafood Processing State Government Seafood Processing Federal Government Grocery Store ~. __ AGENDA '~ ~--~ENAI CITY COUNCIL-REGULAR MEETING o .M. ~*~.~,~ KENAI CITY COUNCIL CHAMBERS ~.m.~uts~ http://www.ci.kenai.ak.us ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM F: PUBLIC HEARINGS 1. Ordinance No. 2079-2005 -- Increasing Estimated Revenues and Appropriations by $10,000 in the General Fund for a Grant for Police Exercise Related Training Equipment. 2. Resolution No. 2005-03 -- Opposing Kenai Peninsula Borough Ordinance 2004-36, an Ordinance Amending KPB 5.18.430, Sales Tax Computation -- Maximum Tax, by Increasing it from $500 to $1000. 3. Resolution No. 2005-04-- Transferring $4,000 in the Airport Land System Special Revenue Fund for Maintenance and Repairs. 4. Resolution No. 2005-05 -- Transferring $4,000 in the Water and Sewer Special Revenue Fund to Purchase Appraisal Services. ITEM H' OLD BUSINESS ITEM I' NEW BUSINESS 1. Bills to be Paid, Bills to be Ratified 2. Purchase Orders Exceeding $2,500 3. *Ordinance 2080-2005 -- Adopting KMC 23.40.010(b) to Create an Employee Classification for Employees Hired Under the "Mature Alaskans Seeking Skills Training" (MASST) Program. 4. Approval -- City Attorney Job Description 5. Approval -- Lease Application -- Charles E. & Helen L. Tulin d/b/a Aviation Support Services, LLC/Portion of Tract A, General Aviation Apron No. 2. 6. Discussion -- Scheduling Work Sessions a. Title 17, Public Utility & Enterprises and Public Utility Regulation & Rates. b. Budget Work Session EXECUTIVE SESSION -- None Scheduled. ITEM P: ADJOURNMENT The public is invited to attend and participate. Additional information is available through the City Clerk's office at 210 Fidalgo Avenue, or visit our website at h__ttP://www, ci.kenai.ak.us. Carol L. Freas, City Clerk D125/211 MAKE 28 PACKETS COUNCIL PACKET I:>]::$TI~BUT]:ON COUNCIL MEE'r'J:N6 bATE' Mayor/Council , Attorney / Taylor/$prin~ter/Kebschull Clerk ...,. ~ City Mana~/e~ ,~ Public Wo~ks Police Department ,,'Finance ,~ En~inee~ ,Senior Cente~ Airport ~- Kim Library / Parks & Recreation -- Clarion . Fire Deportment r $chmidt ,. Mellish VISTA ~- Ol$on (Mail) ~ Governor's Office/5. Davis AGENDA DTSTI~BUT]:ON .Sewer Treatment Plant Streets .Shop Dock Buildin~ Maintenance Animal Control Wot er/,Sewer Count er DELIVER Council Packets to Police Deportment Dispatch desk. The Clarion, Davis, KSRM, Mellish & $chmidt's Office will pick their pocket up in my office. Moil Representative Olson's to State Capitol, Room 110, ,Tuneou (moiling labels in Oyno Label list). The portion of the agenda published by the Clarion should be emailed as soon as possible after Noon on packet day. The camera- ready agenda c'/myfiles/documents/minutes/ogendo form for paper)is emoiled to I:>enise at Pcninsu/a ~/arion (at emoil folder Work Session/Special Meetings, or Composition in Contacts or Ibell~ocsolosko.net). Home Page documents (agenda, resolutions, ordinances for public hearing, and ordinances for introduction) are usually emoiled to me and ]: hold them in my HTML file. Place them onto the city's website with breamweover from there as soon as possible before leaving the office for the weekend.