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HomeMy WebLinkAbout2005-11-02 Council PacketKenai City Council Meeting Packet November 2, 2005 AGENDA KENAI CITY COUNCIL- REGUL~ MEETING NOVEMBER 2, 2005 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 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 COMMENT~ (10 minutes) . Bill Coghill, Mikunda Cottrell ~ Co -- Financial Statement , Kenai Historical Society Representative -- Possible Cabin Acquisition/Ladd Estate. , Jessica Bookey-- Use of Library/Support of Proposed Expansion. ITEM C: UNSCHEDI~ED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMRLY~ LEGISLATORS AND COUNC!L-_~ ITEM E: PUBLIC HEARINGS , Ordinance No. 2128-2005 -- Increasing Estimated Revenues and Appropriations by $6,200 in the General Fund for a Library Grant. . Ordinance No. 2129-2005 -- Increasing Estimated Revenues and Appropriations by $6,555.55 in the General Fund for a Boys & Girls Club State Grant. e Ordinance No. 2130-2005 -- Enacting KMC 1.15.130 Entitled, "Telephonic Participation," Which Allows and Establishe~ Rules for Council Members to Telephonically Participate in Council Meetings. . Resolution No. 2005-48 -- Directing the Continuation of the Project Entitled "Set Net Drive (From VIP Drive to Watergate Way}" and Designating What Improvements Are to be Included in This Project. . , , ITEM F: , ITEM G: . ITEM H: , , , , , . , e ITEM I: ~Liquor License Transfer-- George & Ekaterina Pitsilionis, d/b/a Pizza Paradisos to George Pitsilionis, d/b/a Pizza Paradisos. *Liquor License Transfer-- Kena/Golf Course, Inc., d/b/a Kenai Golf Course Caf6 to George Lagoutaris & Christina Lagoutaris, d/b/a Katrina's Greek & Italian Restaurant. *Application for Restaurant Designation Permit -- George Lagoutaris &, Christina Lagoutaris, d/b/a Katina's Greek & Italian Restaurant. MINUTES *Regular City Council Meeting of October 19, 2005. OLD BUSINGS Discussion -- Proposed Sale of Wetlands/The Conservation Fund. NEW BUSINESS Bills to be Ratified Approval of Purchase Orders Exceeding $15,000 *Ordinance No. 2131 -- Increasing Estimated Revenues and Appropriations by $1,300 in the General Fund for the Staying Connected Grant. *Ordinance No. 2132 -- Increasing Estimated Revenues and Appropriations by $5,000 in the General Fund for a Donation Made by Tesoro Petroleum Co. to be Used for the Town Clock. Approval -- Assignments of Shore Fishery Leases -- Tract 3 Shore Fishery Plat No. 71 and Tracts 5 & 6, Shore Fishery Plat No. 71/From Randale Canady to Kenai Salmon Company, Inc. Approval-- Assignment/Amendment of Lease -- Lot 7, Block 2, Fidalgo Commercial Center-- From Commercial Development to William Borchardt. Discussion -- Amendment of City of Kenai Mini-Grant Overview/Procedures -- Possible Steering Committee Amendment. Discussion -. McCollum/Aliak Drive L.I.D. -- City Manager Report to City Council. COMMISSION/COMMITTEE REPORTS o 2. 3. 4. 5. 6. 7. I__TEM J: ITEM K: 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 REPORT OF THE MAYOR ADMINISTRATION REPORTS - 1. City Manager 2. Attorney 3. City Clerk I__TEM L: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION- None Scheduled - ~ADJOURNMRNT NOVEMBER 2, 2005 REGULAR COUNCIL MEETING SUPPLEMENTAL INFORMATION: SUPPLEMENTAL INFORMATION: ADDITION TO: ADDITION TO: B-l, BiU CoghUl-- Comprehensive Annual Financial Report and Federal Single Audit Report. E-4, Resolution No. 2005-48 (KMC 16.10.070 and Set Net Drive aerie photo} 1-4, Library Commission Report -- Application of Blaine Gilman for placement on Library Commission. Item J, Mayor's Report -- Information related to Halibut Charter IFQ proposal (request for resolution in opposition). REOUESTED BY: ADMINISTRATION ADMINISTRATION ADMINISTRATION MAYOR No changes. CONSENT AGENDA MAYOR'S REPORT Confirm work sessions for: 11/12/05, 9:00 a.m., Council Chambers-- City Manager Search 11/18/05, Tom Middendorf, Council Chambers--Airport Supplemental Plan Work Session (either 1'00 p.m. or 3'00 p.m.} 11/18/05, Paul Gray, Council Chambers-- Time dependent on Supplemental Plan Work Session (either 1:00 p.m. or 3:00 p.m.) WZW ww Ow ~~o ~~ o z~ w ~ wwwzw Ow 0 Zn," uJ ~. W LIJ W ZW ~~ Ow I-- LLI ILl wz ow 0 ~zn~ w ~. wwwzw Ow ~ ~R o ~~ Ow © Zn,, w uj i~ r~w Z LU n,' Ow > Z~ w ww~zw Ow I-- LLI Suggested by: Administ CITY OF KENAI ORDINANCE NO. 2128-2005 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $6,200 IN THE GENERAL FUND FOR A LIBRARY GRANT. WHEREAS, the State of Alaska has provided a Public Library Assistance grant in the amount of $6,200; and, WHEREAS, the grant will be used to purchase books. 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 $6,200 Increase Appropriations: Library- Books $6,200 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this Second day of November, 2005. ATTEST: PAT PORTER, MAYOR Carol L. Freas, City Clerk Approved by Finance' (10/04/200S) hl Introduced: Adopted: Effective: October 19, 2005 November 2, 2005 November 2, 2005 Suggested by: Adnlinlsu-aum~ CITY OF KENAI ORDINANCE NO. 2129-2005 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $6,555.55 IN THE GENERAL FUND FOR THE BOYS AND GIRLS CLUB TITLE V DELINQUENCY GRANT. WHEREAS, last fiscal year the City of Kenai received money from the State of Alaska for the Title V Delinquency Grant for the Boys and Girls Club; and, WHEREAS, the money unspent at June 30 lapsed to fund balance; and, WHEREAS, the money is needed to pay the Boys and Girls Club for the fourth quarter grant filing; and, WHEREAS, the money is available in fund balance. 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: Appropriation of Fund Balance $6,555.55 Increase Appropriations' Non-Departmental- Grants $6,555.55 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this Second day of November 2005. ATTEST: PAT PORTER, MAYOR Carol L. Freas, City Clerk Approved by Finance: (10/07/2005) hl Introduced: October 19, 2005 Adopted: November 2, 2005 Effective: November 2, 2005 Memorandum- City of Kenm From: Phone: Larry Semmens, Finance Director Robin Feltman, Accountant 907-283-8229 Date: 10/6/2005 Re: Title V Delinquency Grant In October when the Boys and Girls Club filed for the fourth quarter Delinquency Grant reimbursement, it came to my attention that the advance grant money received by the City had lapsed to fund balance at the end of the fiscal year. This money needs to be re-appropriated in order to pay the final grant payment to the Boys and Girls Club. This year we will encumber the grant amount to prevent this from happening in the furore. Suggested by: Councilman Joe ~vwor~ CITY OF KENAI ORDINANCE NO. 2130-2005 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ENACTING KMC 1.15.130 ENTITLED "TELEPHONIC PARTICIPATION," WHICH ALLOWS AND ESTABLISHES RULES FOR COUNCIL MEMBERS TO TELEPHONICALLY PARTICIPATE IN COUNCIL MEETINGS. WHEREAS, currently the Kenai Municipal Code does not allow for telephonic participation at Council meetings; and, WHEREAS, Alaska Statute 44.62.310(a) allows for telephonic participation by Council m~mbers at a Council meeting; and, WHEREAS, allowing telephonic participation by Council members would increase participation by allowing members to take part in meetings when work or family matters require their absence from Kenai; and, WHEREAS, limiting telephonic participation to three meetings in a twelve-month period would prohibit a member from abusing the ability to participate telephonically; and, WHEREAS, Alaskan communities such as the City of Soldotna, the City and Borough of Juneau, the Ketchikan Gateway Borough, the North Slope Borough, the City of Homer, the City of Wasilla and the City of Whittier allow telephonic participation. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 1.15.130 is enacted as follows' 1.15.130 Telephonic Participation. (a) (b) (c) (d) A member of the Council may participate via telephone in a Council meeting, if the member declares that circumstances prevent physical attendance at the meeting. If the Mayor chooses to participate via telephone, the vice-mayor or president pro tempore shall preside. No more than the first three members to contact the Clerk regarding telephonic participation in a particular meeting may participate via telephone at any one meeting. The member shall notify the Clerk and the presiding officer, if reasonably practicable, at least twenty-four hours in advance of a meeting that the member proposes to attend by telephone and shall provide the physical address of the location, the telephone number, and any available facsimile, email, or other document transmission service. At the meeting, the Clerk shall establish the telephone connection when the call to order is imminent. Ordinance No. 2130-2005 Page 2 of 2 {e) (g) (h) (i) (k) (1) (m) (n) (o) A member participating by telephone shall be counted as present for purposes of quorum, discussion and voting. The member participating by telephone shall make every effort to participate in the entire meeting. From time to time during the meeting, the presiding officer shall confwm the connection. The member participating by telephone may ask to be recognized by the presiding officer to the same extent as any other member. To the extent reasonably practicable, the Clerk shall provide backup materials to members participating by telephone. If the telephone connection cannot be made or is made and then lost, the meeting shall commence or continue as scheduled and the Clerk shall attempt to establish or restore the connection, provided that if the member participating by telephone is necessary to achieve a quorum, the meeting shall be at ease, recess or adjourn as necessary until the telephone connection is established or restored. Meeting times shall be expressed in Alaska time regardless of the time at the location of any member participating by telephone. Participation by telephone shall be allowed for regular, special and work session meetings of the Council. Remarks by members participating by telephone shall be transmitted so as to be audible by all members and the public in attendance at the meeting, provided that in executive session the remarks shall be audible only to those included in the executive session. As used in these rules, "telephone' means any system for synchronous two-way voice communication. "Mayor' includes the vice-mayor or any other member serving as president pro tempore. Each Council member may attend a maximum of three meetings by teleconference during the twelve-month period starting November 1 of each year. Council members are responsible for any telephone long distance charges incurred due to their participation in a meeting via telephone unless they are absent from the community on City business. A Council member is not considered to be on city business merely by attendance at a Council meeting via telephone. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of November, 2005. ATTEST: ~AT PORTER, MAYOR Carol L. Freas, City Clerk Introduced: Adopted: Effective: October 19, 2005. November 2, 2005 December 2, 2005 KENAI, ALASKA 210 Fidaigo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014 www. ci.kenai.ak, us MEMORANDUM TO' Councilor Joe Moore FROM'(',;~d Cary R. Graves, City Attorney DATE. October 28, 2005 RE: Telephonic Participation in Executive Sessions You requested information regarding which communities allow telephonic participation in executive sessions. The North Slope Borough, the Ketchikan Gateway Borough, the City and Borough of Juneau allow telephonic participation for their meetings, including executive sessions. Soldotna, Homer, Wasilla, Palmer and Fairbanks and the Kenai Peninsula Borough allow telephonic participation at meetings, but they have not yet had participation in an executive session. The clerks '(except Fairbanks) thought it would be allowed under their code. The Fairbanks Clerk was not sure if it would be allowed for executive sessions. The person contacted in the Anchorage Clerk's office said telephonic participation was generally allowed, but she was not aware of a situation where there had been telephonic participation in an executive session. The general concern about telephonic participation at executive sessions is that a member could allow non-council members to listen in on the meetings. That is a posSibility that cannot be eliminated. However, section (1) of the proposed ordinance does state that members participating telephonically should make sure the discussion in executive session is only audible by those allowed to be in the meeting. Please let me know if you have any questions. CRG/sp CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-77b~ TELEPHONE 907-283-7535 FAX 907-283-3014 ~ MEMORANDUM TO: FROM: _- DATE' Councilwoman Pat Porter Carol L. Freas, ~City Clerk City of Kenai February 22, 2000 TELECO~~NCI~ OF MEETINGS Several weeks ago you requested that I contact several municipalities in the state and ask if they allow teleconferencing of meetings (commission or council/assembly). In doing that, I asked that copies of the code or policy allowing teleconferencing of meetings be forwarded. I also contacted the International Institute of Municipal Clerks (IIMC) for them to search their databases for like information. I have had no response from IIMC to date. My other contacts told me this: Code Provision MUNICIPALITY (Yes or COMMENTS No) Fairbanks North Star Borough N There is interest in the issue and they will be researching the possibility in the future. Concerns they have are: coordinating materials, choosing issues in which to participate; and cost due to length of meetings. They have used teleconferencin§ in work sessions. City of Whittier Y The council member has full participation by teleconference. Copy of their code is attached. Municipality of Anchorage of Wasilla North Slope Borough of Palmer City of Seward of Soldotna of Homer Kenai Peninsula Borough N Y N/Y N N Y Y N/Y For the Assembly, concern has been that a majority would eventually attend by phone. Their regulatory and adjudicatory boards and commissions may not attend telephomcally. Other boards and commissions may. Copy attached.) ~res attached. Their code does not address it, but they do allow attendance by teleconferencing but a written request is required. Copy attached. Code does not address, however a council member was allowed to attend a work session telephonically a few years attached. attached. Their code does not address it, however the practice has been used to allow attendance. See attached email message from Borough Clerk Linda . If you're wan~g to go forward with an ordinance, rll be glad to help although you may want to check with Cary as he may have some additional information that may be of help and interest. clf Attachments ~Mr~-.'. t-,"tJuu jYj~ Ub;U,5 t-'Fl t;l'l'¥ Ut' IgHi'l"l'lP/l~ FRX NO, 9074722404 P, 02 CITY OF WHITTLER, ALASKA ORDINANCE 32.0-95 AMENDING COUNCIL MEETINGS AND PROCEDURES CODE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WHITTIER, ALASKA AMENDING COUNCIL MEETINGS AND PROCEDURES CODE. WHEREAS, the City Council of the City of Whittier exists to aid in the conduct of the business of the people of Whittier, and WHEREAS, the City Council desires that all actions taken by it are taken openly and with full and adequate notice to all residents of planned actions, and WHEREAS, the City Council fully supports, the scope and purpose of the Alaska Open Meetings Law AS 44.62.310-312, as it now exists and as it may be amended from time to time, NOW, THEREFORE, the Whittier City Council ORDAINS: Section 1. This is a code Ordinance. _S_ec~i0n 2: Section 2.06.023 Executive Session~ is hereby amended as follows: The Council may at any time recess for the purpose of discussing in executive session ar question permitted by law, after adoption of a motion in public session calling for th, executive session. Those matters which may be discussed in an executive session are (1) matters, the immediate knowledge of which would clearly have an adverse effect upon the finances of the city, (2) subjects that tend to prejudice the reputation and character of any person, provided the person has been consulted and has not requested a public discussion, (3) matters which by law or ordinance are required to the confidential and (4) matters involving consideration of government records that by law are not subject to public disclosure. The public may be excluded from an executive session, but final action shall not be taken by the council on any matter discussed in an executive session until the matter is placed on the agenda of a public meeting. Section 3: Section 2.06.030 Ouorpm is hereby amended to read as follows: Fourcounciimember$constitutea quorum. A o n '1 tuber ve I rt'ci i n e o f r ce. Four affirmative votes are required for the passage of an ordinance, resolution, or motion. _Sect[qn 4: ADD NEW SECTION 2.06.035 Public Hearings. All substantial actions taken on behalf of the city shall require full disclosure-and a public hearing prior to final Council action. Public hearings shall be held on all final actions, except for resolution that have a fiscal impact to the city of less than $5,000, including the approval of contracts of less than $5,000. Chapter 1.25 PUBLIC MEETINGS* 1.25.005 Definitions. Work session means a gathering of assembly or school board members for the purpose of obtaining information and discussing an announced topic. Members may attend telephonically. TITLE 4 BOARDS AND COMMISSIONS* Chapter 4.05 APPOINTMENTS, MEETINGS AND PROCEDURES 4.05.050 Compensation of members. E. Attendance at meetings. All members of boards and commissions appointed Under this title shall be physically present at their respective board or commission meetings to receive a stipend provided for by this section. 4.05.060 Attendance requirements; vacancies. F. Physical presence by a board or commission member is required to constitute attendance at a regular or special public meeting of a regulatory or adjudicatory board or commission. Regulatory and adjudicatory boards and commissions are set forth in chapter 4.40. Written, telephonic or electronic communication shall not constitute attendance at a public meeting of a regulatory or adjudicatory board or commission. All other boards or commissions may allow attendance and full participation by members using telephonic or video conferencing equipment or facilities. ( Anchorage Municipal Code: PROCEDURES* Chapter 4.05 APPOINTMENTS, MEETINGS AND 4.05.060 Attendance requirements; vacancies. A. The office of a member of a board or commission member shall become vacant in the same manner as the office of an elected official becomes vacant as provided in section 7.01 of the Charter. In addition, a vacancy shall occur if a member during any 12-month period while in office: 1. Is absent from three regular meetings without excuse; 2. Is absent from six regular meetings; or 3. Fails to attend a two-thirds majority of the regular meetings. B. A member intending to be absent from a regular meeting shall request of the chairman to be excused prior to the meeting proposed to be missed. C. A board or commission chair or the chair's designated staff shall keep attendance records of all meetings, and immediately report the failure of any official to meet the attendance requirements of this section to the mayor or his designee. The mayor or his designee shall notify the official of his delinquency and remove the official from office within 15 days of receiving notification of the official's noncompliance. D. The assembly shall be promptly notified of the removal of any official under this section. Vacancies created pursuant to the provisions of this section shall be filled by appointment to the unexpired term of the member whose office becomes vacant. E. Members of boards and commissions having duly appointed alternates shall not be subject to removal for failing to meet the attendance requirements of this section. F. Physical presence by a board or commission member is required to constitute attendance at a regular or special public meeting of a regulatory or adjudicatory board or commission. Regulatory and adjudicatory boards and commissions are set forth in chapter 4.40. Written, telephonic or electronic communication shall not constitute attendance at a public meeting of a regulatory or adjudicatory board or commission. All other boards or commissions may allow attendance and full participation by members using telephonic or video conferencing equipment or facilities. (CAC 2.64.060; AO No. 89-122(S-1); AO No. 90-70; AO No. 92-95; AO No. 93-21, § 1, 1-4-94; AO No. 95-113, §§ 1, 2, 5-2-95) Carol Freas From: Sent: To: Subject: Jamie Newman [JNewman@ci.wasilla.ak.us] Wednesday, January 19, 2000 2:27 PM 'cfreas@ci.kenai.ak.us' information request Carol here is the information you requested regarding telephonic participation. Also, the city of Wasilla 'has a deputy "me" and I make $33,050 (3 years of employment) and the clerk makes $54,340 (2 years of employment) . __Let me know if I can be of further assistance. Thanks, Jamie Procedures Regulating Telephonic Participation. Pursuant to A.S. 44.62.310 (a) and further pursuant to A.S. 29.20.160 (f), the following requirements and procedures shall apply to authorize and implement the use of telephonic participation by a member or members of the City Council or by members of the public at Council meetings. (A) Regardless of the particular technology used to telephonically participate, the quality of the telephone connection and the quality and volume of the voice amplification must be adequate to enable the public to hear the Council member participating by telephone and to enable the Council member so participating to hear the comments of the public and other Council members who are physically present at the meeting. (B) Council members wishing to participate telephonically must agree to pay for the direct costs (e.g., long distance phone charges for the telephone connection) of the telephone connection to authorize that Council member's participation, unless telephonic participation is necessary or desirable for purposes of an emergency or special meeting. ~(C) Documents and written materials considered by Council members at a ~egular Council meeting must be made available to the Council member participating telephonically in order to authorize the Council member participating telephonically to vote on the issue or subject presented for a vote by the Council. (D) Votes taken that include the vote of the Council member participating telephonically shall be taken by roll call so that the public may know the vote of each person entitled to vote. (E) Telephonic participation is authorized only under circumstances where the Council member so participating cannot be physically present despite reasonable and good faith effort to attend in person. (F) The procedures and requirements stated herein may be relaxed or modified in the event that no other violation of law or ordinance is created by such relaxation or modification and in the further events of: (1) circumstances that in the judgment of the Council members, including those participating telephonically, justify relaxation or modification of the procedures or requirements; and (2) four affirmative votes to relax or modify the procedures or requirements. ~07 283 3014;# 1/'2 NORTH SLOPE BOROUGH / BOROUGH CLERK'S OFFICE ~ P.O. Box 69 ~ Barrow, Alaska 99723 ~ Phone: (907l 852-2611 Bertha L. Panigeo Borough Clerk · ! iii TO' carol L. Freas FAX N~MBER: (~07) 283,.sa~ 3 o~ht DATE' .~,,..,,,..~ i9, zooo NUMBER OF PAGE(S) INCLUDING COVERSHEET: ~o r2~_ FROM: Ethel K. Taalak, Secretary for .. Berch~ L. ?anlgeo, N$~ Clerk · · PHONE: (907) 852-0360 FAX NU~ER: (907) 852-0229 : Hello Carol, D£d a research in the codebooE and it docsn'k state about celeconferenc~n~ attendance. But once an assembly me~er's so. ~ first, he does a memo in ~i~ng to the ~yor and the rest of the asseabiy. Z~ you would l~e any ocher please do not hesitate to ca[I out ofrIce ac (907) 852-0360. i , i .... i mi i i il Ethel K. Taalak P.S. Attached £~ a portion of. the meetings from our codebook charter. . · -- presiding officer, known as ' ,~sident,- to serve at the pleas : assembly. - .o.f the SEC. 3.t 00 MEETINGS (a) The assembly shall meet in regular sessions at least once each month, at such time and place as it shall prescribe by ordinance. · (b) The assembly shall prescribe by ordinance the procedure for holding special meetings. (c) All meetings of the assembly shall be public and the public shall have reasonable opportunity to be heard. The assembly may . 907 283 80!~;# 2/ 2 Charter 13 recess a meeting or proceeding for the purpose of dis ' - ' or executive sessions, limited to its own m- ' cuss~on m closed embershlp and such other persons as the assembly designates, to discuss pending or potential litigation~ or any matter the immediate public knowledge of which ........ would adversely affect .the finances of the borough or tend to defame or prejudice the character or reputation of an rs' the general subject matter for c~--~-, --- y pe on, provided that callad for such session, and tha'~"a'~,e.r~_t'.°~n_~' expressed In the motion the assembly in executive session. "'" ~-ereon shall not be taken by The mere discussion of persons or finances shall not be cause for any executive session. SEC. 3.110 PROHIBITIONS · (a) Relationships with Employees. The ass re__c_o, mmend- or d,re~t the apPointment or rem-----, _.em_bly Shall not =mp~oyee of the borough adminlstra--'--- .---,,, .u~ any O~Tlcer or · .~11 eXC:E~ ~ 8S - by this Charter. Exce.~* ,-- -~-' P otherwise provided ,,* .u, ~ne ur o ' P p se of ~nquiry, neither the assembly nor an individual assemblyman ma ire . privately, orders on administrative ,..,,___ .Y g , .either publicly or mayor. ------~r= To a subordinate to the (b) Representation of Client. No assemblyman may represent any client before any borough department or agency. SEC. 3.120 INVESTIGATIONS the b u stlgate the affairs of agency. For this Purpose it ~k&ll k.,,., g. epartment, office or daue, time and place of the postponed meeUin9 shall be given by publication in an area newspaper if time allows and/or by announcements on a local radio station. C. A special meeting may be held at the call of the presiding officer or at least one-third (two) of the members of council if a majority of the members are given at least twenty-four hours' oral or written notice, and reasonable efforts are made to notify all members. A special meeting may be conducted with less than twen~y-four hours notice if all members are present, or if absent members have waived in writing the required notice which is to be filed in the journal of the meeting. Waiver of notice can be made before or after the special meeting is held. D. If the mayor and council members cannot attend a regular or special meeting, teleconference attendance is allowed. The location of the council members attendance shall be posted with any notice of the meeting. The location shall, if possible, be accessible to the public and the names of any person attendin~ a~ this location shall be noted at the meeting. Each council member may attend a maximum of three meetings by teleconference during the twelve-month period commencing November 1 of each year. (Ord. 675 § 1, 1998; Ord. 669 § 1, 1998; Ord. 571 § 1, 1994; Ord. 424 § 1, 1986; Ord. 383 § 1, 1985; Ord. 272 § 1, 1982; Ord. 257 § 1, 1981- Ord 188' §§ 1, 2, 1979) ' 2_ 04.020 ~u]a~ of procedure. The city council adopts as its rules of procedure "Roberts Rules of Order, Newly Revised." (Ord. 178 § 2, 1979: prior code § 29.10.05) 2.04.030 Ordar of bu~na~s. A. The order of business for the agenda of regular meetings of the city council shall be as follows. Pledge of allegiance .Approval of agenda items Minutes of previous meetings Seating of new council members Consent agenda Public presentations with prior notice Public hearings Ordinances, second reading Ordinances, firsE reading Resolutions Unfinished business Council committee reports Reports from advisory boards and commissions Mayor' s report City manager' s report Reports from department heads and others Correspondence Audience participation Council comments Other Ad j ournment 6-1 (Soldotna 10/99 ) TELECONFERENCE PROCEDURES HCC 1.14.080 Teleconference meetings. The preferred procedure for City Council meetings is that all Councilmembers should be physic~liy present at the designated time and location within the City for the meeting. However, physical presence may be waived by the Council and a Councilmember may participate in a Council meeting by teleconference as provided in this chapter when in the opinion of the Council the physical presence of the Councilmember is not essential to effective participation or the conduct of business at the meeting. A Councilmember participating by teleconference shall be deemed to be present at the meeting for all purposes. In the.event the Mayor participates telephonically the Mayor Pro Tem or, in the Mayor Pro Tem's absence, the senior Councilmember shall mn the meeting. HCC 1.14.085 Teleconference procedures, a. A Councilmember who cannot be physically present for a regularly scheduled Council meeting shall notify the City Clerk at least five days prior to the scheduled time for the meeting of his intent to appear at the meeting by telephonic means of communication. b. The City Clerk shall notify the Council three days prior to the scheduled time for the Council meeting of Councilmembers intending to appear by teleconference. c. The Council shall determine whether or not the Councilmember(s) shall participate by teleconference. If the Council determines that the teleconferencing is not required for the conduct of business the Councilmember(s) shall be notified in the most expedient manner possible. d. Sections a. and b. of this section do not apply to special meetings or emergency meetings of the City Council called under 1.14.030 and 1.14.050 of the Homer City Code. Councilmembers may appear at a special meeting or emergency meeting by teleconference and be considered present for all purposes unless the Mayor or the Councilmembers calling the special meeting or emergency request the physical presence of Councilmembers in the advance notice of the meeting. e. The Council may require that all Councilmembers appearing telephonically present at one teleconference site whenever such presence is possible. f. The means used to facilitate a teleconference meeting of the City Council must enable each Councilmember appearing telephonically to clearlY hear all other Councilmembers and members of the public attending the meeting as well as 'be clearly heard by all other Councilmembers and members of the public. g. The City Clerk shall note in the journal of the proceedings of the City Council all City Councilmembers appearing telephonically. (Ord. 99-17(A) section 1 and Reso. 99-86 section 1, 9/27/99.) http://www, xyz. net/-~c 1 erk/c c om. htm 02/22/2000 Carol Freas From: Murphy, Linda [LMurphy@borough.kenai.ak.us] Sent: Tuesday, February 22, 2000 4:41 PM To: 'cfreas@ci.kenai.ak.us' Subject: RE: Meeting attendance via teleconference Carol' We have nothing in the Code either allowing or prohibiting attendance by teleconference; however, the practice has been to allow such attendance. We have had Assembly Members attend the entire meeting via telephone (such as when Mr. Scalzi was undergoing chemotherapy and when Mr. Brown was recuperating from surgery) and members attend for only a portion of the meeting (such as when Ms. Merkes wanted to vote on reorganization of the Assembly but no~hing else). A few months ago, Mr. Sprague introduced an ordinance that would have prohibited attendance via teleconference, but that was defeated by the Assembly. I know that Soldotna has some sort of provision in its Code. You might want to check" with Pat to see what they allow. Hope this helps. Linda ..... Original Message ..... From: Essert, Sue Ellen On Behalf Of Assembly/Clerk, Office Sent: Tuesday, February 22, 2000 3:37 PM To- Murphy, Linda Subject. FW: Meeting attendance via teleconference ..... Original Message ..... From: Carol Freas [mailto:cfreas@ci.kenai.ak.us] Sent: Tuesday, February 22, 2000 10:15 AM To: assemblyclerk@borough, kenai, ak. us Subject- Meeting attendance via teleconference Linda -- I searched your code on the net and didn't find anything that speaks to attendance via teleconferencing for assembly or commission, board or committee members. Thought I better check with you in case I didn't ask the right question. Does your code or policies/procedures allow for an assembly member or board, commission or committee member to attend a meeting via teleconference? Let me know. Thanks. Carol Carol Freas From: Sent: To: Subject: Cathy Check [citymgr2@alaska.net] Friday, January 21, 2000 12:34 PM cfreas@ci.kenai.ak, us (no subject) Carol, In answer to your two fax items, Palmer's code does not address teleconferencing for meetings. Re: Clerk/Deputy Clerk, Palmer once again has an odd situation in this area. The city manager is both manager/clerk. I know this probably isn't going to help you much but thought I'd better at least return the information the best I can. Hope to see you in Fbx. Cathy Carol Freas From: Sent: To: Subject: Pat Reilly [clerk@arctic.net] Monday, January 24, 2000 12:13 PM cfreas @ci. kenai.ak, us Meetings Via Teleconferencing Hi Carol: In response to your January 17 memorandum regarding Council Meetings Via Teleconferencing, the City of Seward does not have any code section addressing this issue. The issue came up a few years ago when one council member was allowed to appear telephonically during a work session to help interview a candidate for the City Clerk position. Pat Reilly Seward City Clerk Carol Freas From- Sent: To: Subject: Mona Drexler [monalisa@co.fairbanks.ak.us] Tuesday, February 08, 2000 3:50 PM cfreas@ci.kenai.ak.us Teleconferencing Carol; Sorry I have not replied to this before' now. The Fairbanks North Star Borough does not allow teleconferencing right now for regular assembly meetings. They will be looking at it sometime in the future. Only one member of the assembly is interested in this issue. The logistics of trying to coordinate a teleconference and materials that the rest of the assembly may have and the one member would not have is one concern. The other is picking and choosing what issues a member may decide is important to participate in. Cost is another factor, our meetings average 5 hours in length. We have used conferencing for work sessions. That is acceptable in a small degree. Our municipal code does not allow for teleconferencing at present. Good Luck and let me know what you guys decide. Mona Lisa NON 05: 03 PI~ 01TY OF ~4H ITT i ER NO, 9074722404 P. THE CITY OF ~HITTIER Gateway to the Western Prince William Sound P.O. Box 608 · Whittier, Alaska 99693. (907) 472-2327 · Fax (907) 472-2404 Fax Transmittal Date: 1/17/00 To: Carol L. Freas Fax: 283-3014 From: Matt Rowley City Clerk RE: Teleconferencing Following is a copy of our Ordinance allowing Councilmembers to participate in Council Meetings by teleconference. Pages (Including Cover): 2 ~nn- ~ ~-~uuu l'luR uo: uq rll U 11 ¥ Ut' Wil ! 1 I-IY.K FAX NO, 9074722404 P, 03 Page of Ordinance 320-95 Section 5_: ADD NEW SECTION 2 06 045 P,,kli~ ~-*i~- ---- ..... ' .. Hearin_~. · · T r ~ I r P Ii Advance public notice of the Council agenda for all regular and special meetings (except for recessed or continued meetings} shall be posted at least five (5) days in advance of the scheduled meeting in at least six public places in the city, including the city offices. Agendas shall include notification of all matters on which the Council plans to take final action after a public hearing. Supporting materials for such actions, to. the extent available and a matter of public record, shall be available for inspection by the public during normal business hours. Provisions for advance public notice may be waived by the Council only in the event of a finding by the council that an emergency exists, together with a statement of facts upon which the finding of an emergency is based. Section 6: Section 2.06.070 Aoenda - Order of.Business. Amend item 9 to provide sub- parts, as follows: - 9. Public Hearings (non-ordinance); a, Contracts b. Real Property Acquisition or Disposal c. Other Sect~oq 7- Section 2.06.070 ADD ITEM (H) to read as follows: H. "New business" (May Require a Public Hearing before final action is taken approving the expenditure of $5,000 or more). Section ~_: All other sections to remain unchanged by this ordinance. Section ~: This Ordinance shall become effective upon adoption. PASSED AND APPROVED by a duly constituted quorum of the City Council of Whittier, Alaska on this J'/~lq. day of t~r~ } , 1995. In=oducod By: _6cl rl r/Po. Introduction Date: q~..3%c~ - Public Hearing: _q-~ I 7 ATTEST: Debra Burnham, City Clerk ;hris Overbeck, Mayor - AYES: L~ NOES: ~ ABSENT:_~L_- ABSTAIN: Carol Freas From: Ferguson, D. Lejane [fergusld@ci.anchorage.ak.us] Sent: Wednesday, January 19, 2000 11:09 AM To: 'cfreas@ci.kenai.ak.us' Subject: Attendance by Phone Freas Letter.doc Hi Carol, Nice to hear from you! Attached is the information I could find easily in our code concerning attendance at meetings by phone. Currently, Assembly members are not permitted to attend regular or special meetings by phone. If you go'that route, keep us posted on how it works. Our concern has always been that a majority would eventually attend by phone.., that would make quite a picture on TV not to mention raising the ire of the public. <<Freas-- Letter. doc>> CITY OF KENAI RESOLUTION NO. 2005-48 Suggested oy: ~.ouncu A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DIRECTING THE CONTINUATION OF THE PROJECT ENTITLED "SET NET DRIVE (FROM VIP DRIVE TO WATERGATE WAY)" AND DESIGNATING WHAT IMPROVEMENTS ARE TO BE INCLUDED IN THIS PROJECT. WHEREAS, the Council directs the City Administration to continue with this project; and, WHEREAS, the following is a list of major improvements that are scheduled to be completed under this project: o 2. 3. 4. Excavation, backfill, and grading Asphalt paving Topsoil and seeding $ignage and traffic control; and, WHEREAS, the Council £mds the improvements are necessary and of benefit to the properties to be assessed; and, WHEREAS, the local improvement district costs will be allocated on a square footage basis extending one lot deep adjacent to improvements in this subdivided area; and, WHEREAS, the project is not objected to by owners of properties bearing fifty (50%) percent or more of the estimated costs to be borne by property owners; and, WHEREAS, an account will be kept of all costs of the improvements and that after all costs are known, the City Manager shall prepare an assessment roll for the improvements; and, WHEREAS, all of the above improvements will be done in this area but only fifty percent (50%) of the total completed improvements will be assessed to the benefited property owners; and, WHEREAS, this resolution will be mailed to each property owner adjacent to the streets designated for improvements; and, WHEREAS, the property owner's name and address used will be that which is on record at the Kenai Peninsula Borough on this date, November 2, 2005. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the City will continue with the project entitled "Set Net Drive (from VIP Drive to Watergate Way) and the improvements listed above. Resolution No. 2005-48 Page 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI ALASKA, this second day of November, 2005. ' ATTEST: PAT PORTER, MAYOR Carol L. Freas, City Clerk clf" Approved by Finance' Set Net Drive - from VIP to Watergate PRELIMINARY ASSESSMENT ROLL (Pre-Bid) ...... Based on property owners paying proportionally based on square footage~;~-;;; Below costs are estimates - final cost will be based on the actual cost of the project. Properties to be assessed: See Property Owners Spread Sheet , ID Property KPB 25% KPB,10(P/. of UD 50% of L/D # OWNER Address ACRE Square Feet: % of Total Ass. $ Ass. $ Est. $ Est.$ Owner 1 Driskill 750 SET NET DR 0.92 40,075 0.079792 184,200 46,050 !7,554 8,777 2i Johnson 740 SET NET DR 0.98 42,689 0.084996 137,100 34,275 . 18,699 9,350 3 Whannell 2560 SEINE CT 1.06 46,174 0.091934 153,400 38,350 20,225 10,113 4 Durkee 620 SET NET DR 0.92 40,075 0.079792 220,500 55,125 17,554 8,777 , 5 Chapman 610 SET NET DR 1.06 46,174 0.091934 201,300 50,325 20,225 10,113 '; Etingham 2600 WATERGATE 1.02 44,431 0.088465 14,500 3,625 19,462 9,731 ~ith 615 SET NET DR 0.92 . 40,075 0.079792 14~500 3,625 17,554 8,777 _ ,Oogland . 2705 SEINE ST 1.09 47,4801 0.094536 116,200 29,050 20,798 10,399 9 Leighty 735 SET NET DR 1.37 59,677 0.118820~ 173,900 43,475 26,141 13,070 10 Butch 745 SET NET DR 1.08 47,045 0.0936691 200,200 50,050 20,607 10,304 11 'Aase 755 SET NET DR 1.1! 48,352 0.09627! 14,500 3,625 21,180 10,590 TOTAL 11.53 502,247 1.000000 220,000 110,000 , , , Administration 3,000 Muni Match Grant (50%) 110,000 Engineering 31,000 Property Owners (50%) 110,000 , Construction 186,000 TOTAL 220,000 TOTAL 220,000 ..... , ,, , , ,, , ,, Prepared by Keith Kornelis 9/8/2005 Set Net Urive. Prom VIP to Watemate ' ,, PRELIMINARY COST ESTIMATE , 8/10/05 KK , , , , , Units Est. Quantity' Unit Price Tot=l , Clearing & Crubbing LS ' , 1 1,000 , 1,000 Unusable Excavation CY 580 8 4,640 Type I Classified Fill & Backfill CY 1,000 10 10,000 ~Leveling Course SY , , 3,800 5 19,000 Construct Road Approach EA 4 750 3,000 Construct Driveway Approach' EA 11 500 ' 5,500 2 "AC Pave~;,ent SY 3,500 15 52,500 R~construct Ditches LF 2600 4 10,~00 Drainage Irr, provemen~s LS I 3,000 3,000 Culve~s LF 154 26 4,004 CMP End Section EA '2~ 242 5,32~ Topsoil MSF 25, 250 6,250 Seeding MSF 25 100 2,500 .Re[qove & Relocate Signs EA ~ ' ' 6 100 600 Traffic Maintenance LS _____._ -~- 2,000 2,00--~- Exi__._~ing Utilities in Const. Zone LS ~1 5,000 5,000 Mobiliazation & Demobilization LS I 10,000 10,000 Force Account Work LS I 10,000 ' 10,000 Basic Bid - Contingency (20%) -- 154, 71__8 --------- ---- 30,944 Basic Bid Plus Cont. 185,66~ BASIC ESTIMATE --- Administration - 3,000 3,000 -- ~Engineering Design (10%) 18,566 19,000 ----- Inspection (7%) 12,996 12,000 -- Construction ___ 185,662 186,000 - TOTAL 220,224 220,000 -- Prepared by Keith Komelis 9/7/2005 Page I Carol Freas From: ~nt: J: Cc: Subject: Joe and Ruby Cobus [jrcobus@gci.net] Thursday, October 27, 2005 12:24 PM Carol Freas jrcobus@gci.net Proposed Assessment Proposed .Assessment.txt Octobg~ 27,2005 Carol L Freos City Clerk City ot: Kenoi Dear Carol Freas: ;[, Ruby E. Cobus (Bingham), The owner of Parcel No 494:[037, wish to voice my objection to the p~oposed assessment for the paving of 5et Net Drive, from VIP Drive to Watergate Way. I feel that this is unfair to base an assessment on the square footage of the owners property! I have never heard of. this method of assessment. Usually assessments are based proportionally ~the frontage of property that faces the street. The parcel of property .~ntioned above faces Watergate Way. The address of the property is 2600 Watergate Way. Three times as much of the property faces Watergate Way as faces 5et Net Drive. I am being assessed as though all of the property faced ,Set Net Drivel I also own the parcel next to this one, on which my home is located. That address is ~6:10 Watergate Way. If, in some distant future, I decided to build a home on the parcel, whose side is on 5et Net Drive, the entrance to the property would be from Watergate Way. A second objection ]2 have to this assessment is that consideration is not based on whethe~ the Set Net p~ope~ty is ~aw land o~ a ~esidence. Third, assessed value of the property played no part in the assessment. Hence, a property valued at $2Z0,500. is assessed less than property assessed at $14,500. This assessment is extremely skewed. I do not now, nor will ]2 ever enter my property from 5et Net Drive. It's future paving is of little importance to me, as ~ never use that street. those home owners that use 5et Net Drive as the entrance street to their homes wish to have the street paved, then it should be at their expense. c~wner of Parcel No 494t037 Ruby E. tabus 16.10.040 prior to the public hearing which, in addition to the information contained in the published notice, shall include a designation of the addressee's property to be assessed and the estimated cost to be assessed against such property. (Ord. 79 l) 16.10.050 Written objections. Objection to the improvement plan may be filed in willing with the City Clerk until, but not on, the date of public hearing. The City Clerk shah present to Council at the time of the hearing, all objections filed in writing. (Ord. 791) 16.10.060 Public hearing on improvement district. At the time and place noticed, the Council shall hold a public hearing upon the necessity for the proposed improvement. The Council shall hear all interested l~rsons favoring or opposing the proposed improvements and shall consider all written objec- tions filed. (Ord. 791) 16.10.070 Council action. After the public hearing is closed, the Council may increase or decrease the scope or value of the improvement, or may delete from the proposed improvement district properties not benefited by the improvement or add properties which would be benefited and shall adopt a resolution directing continuation or termination of the modified ira- provement district. No change may be made result- ing in an improvement district objected to by own- ers of properties bearing fifty percent (50%) or more of the estimated cost to be borne by the property owners except with the approval of at least six (6) members of the Council. The resolution directing continuation shall find that the improvement is necessary and of benefit to the properties to be assessed, and that it is not objected to by owners of properties beating fifty (50) percent or more of the estimateA costs to be Ix)me by property owners or, in the alternative, that it has been approved by at least six (6) members of the Council. The findings of the Council are conclusive. The resolution shall timber require that an account be kept of all costs 309 of the improvement and that after all costs are known the City Manager shall prepare an assess- ment roll for the improvement. The resolution shall state the estimated percentage of the costs of the improvement to be assessed against the benefited properties. (Ord. 791) 16.10.080 Assessment roll After the improvement has been completed and the costs of the improvement computed, the City Manager shall prepare and file with the City Clerk an assessment roll for the assessment district. The assessment roll shall contain, as to each property to be assessed, a brief description or designation of the property, the name of the record owner of the prop- erty to be assessed, and the mount to be assessed against the property. The person in whose name' property is listed on the municipal property tax roll as owner is conclusively presumed to be the legal owner of record. If the owner is unknown, the as- sessment may be made against the "unknown own- er." (Ord. 791) 16.10.090 Setting hearing on assessment roll. After the assessment roll is filed, the Council shall fix lhe time and place for a public hearing on objections to the assessment roll. (Ord. 791) 16.10.100 Notice of public hearing on assessment roll. Notice shall be given for the public hearing on the assessment roll as prescribed in KMC 16.10.040. The notice to be published shall include a summary of the improvement, the designation of the. p~;ol~r-' ties to be assessed in the assessment districL', the purpose of the public hearing, and the time and' place fixed for the public hearing. The notice by mail, in addition to the information contained in the published notice, shall include the actual assessment against the property owned by the addressee. Each notice by mail shall generally in- form the property owner of the manner and' method of protesting or objecting to the action to be' taken at the public hearing. (Ord. 79 I) . Set Net Drive LID KENAi PENINSULA BOROU___ 144 N. BINKLEY , SOLDOTNA, ALASKA · 99669-7599 BUSINESS (907) 714-2160 FAX (907) 262-8615 EMAIL: assemblyclerk@borough.kenai.ak, us . 2005 SHERRY BIGGS, CMC BOROUGH CLERK Ms. Dawn Holland-Williams Records & Licensing Supervisor Alcoholic Beverage Control Board 5848 E. Tudor Rd. Anchorage, AK 99507-1286 Re: Liquor License Transfer Dear Ms. Holland-Williams' Please be advised that the Kenai Peninsula Borough has no objection to the transfer of the following liquor license, located within the City of Kenai, Alaska: From' George & Ekaterina Pitsilionis, D.B.A.' Pizza Paradisos Kenai Spur Hwy. & Main St. Kenai, AK 99611 To: George Pitsilionis, D.B.A.' Pizza Paradisos Kenai Spur Hwy. & Main St. Kenai, AK 99611 The Kenai Peninsula Borough Finance Department has reviewed this file and has raised no objection based on unpaid or delinquent taxes. If you should have any questions, please feel free to contact me. Sincerely, · 1 cc: Applicant City of Kenai KPB Finance Department File S:\WPWINK)ATAXABC Board~d~c-letters\Transfer~ransfer in city. wpd Date of Notice: October 5, 2005 State of Alaska Alcoholic Beverage Control Board Application Type: Governing Body: Community Councils' License #: License Type' D.B.A.*' Licensee/Applicant: Physical Location: Mail Address' Telephone #: EIN: NEW City of Kenai None 3032 Beverage Dispensary License Pizza Paradisos George Pitsilionis 811 Frontage Rd PO Box 2917 Kenai, AK 99611 907-283-2222 No Fax 907-283-6209 92-0066640 TRANSFER Ownership Location Name Change X X Corp/LLC Agent: Address Phone Date and State of Good standing? Limited Partnership N/A Please note: the Members/Officers/Directors/Shareholders (principals) listed below are the principal membt There may be additional members that we are not aware of because they are not primary members. We have listed all principal members and those who hold at least 10% shares. Member~Offic-er/Director: DOB Address Phone Title/Shares (%) N/A ,, T~., ~ I .... .,. · ,, If transfer application, current license information: License #: 3032 Current D.B.A.: Pizza Paradisos Current Licensee: George & Ekaterina Pitsilionis. Current Location: Kenai Spur & Main Street Additional comments: Restaurant Designation Permit Application will be sent via US mail. ORIGINAL APPLICATION MUST BE RETURNED. **Date of Birth * Doing Business As Cc' Kenai Peninsula Borough Loeal ~g Body - New Carol Freas .. From: Sent: ~To: Cc: Subject' Robert Molloy [molloylaw@ak.net] Saturday, October 29, 2005 2:45 PM Patricia Porter Mike Boyle (E-mail); joe Moore (E-mail 2~; Linda Swarner (E-mail); Rick Ross (E-mail); City Manager; Carol Freas; Cliff & Lois Massie; Cary Graves Recusal- Item E.5 Mayor Porter: On review of the Agendo for the 11/2/05 Council meeting, I need to be recused from Item E.5, o consent ogendo item for Liquor License Tronsfer from George & Ekoterino Pitsilionis d/b/o Pizzo Porodisos to George Pitsilionis d/b/o Pizzo Porodisos. I hove o conflict of interest os attorney for the liquor license transferee. Thonk you. Bob Molloy cc' Council Members & Administrotion KENAI PENINSULA BOROU 144 N. BINKLEY · SOLDOTNA, ALASKA , 99669-7599 BUSINESS (907) 714-2160 FAX (907) 714-2388 EMAIL: assemblyclerk@borough.kenai.ak.us October 17, 2005 SHERRY BIGGS, CMC BOROUGH CLERK Ms. Dawn Holland-Williams Records & Licensing Supervisor Alcoholic Beverage Control Board 5848 E. Tudor Rd. Anchorage, AK 99507-1286 Re: Liquor License Transfer Dear Ms. Holland-Williams: Please be advised that the Kenai Peninsula Borough has no objection to the transfer of the following liquor license, located within the City of Kenai, Alaska: From: Kenai Golf Course, Inc., D.B.A.' Kenai Golf Course Cafe 1420 Lawton Dr. Kenai, AK 99611 To: George Lagoutaris & Christina Lagoutaris, D.B.A.' Katrina's Greek & Italian Restaurant 1188 Kenai Spur Hwy. Kenai, AK 99611 The Kenai Peninsula Borough Finance Department has reviewed this file and has raised no objection based on unpaid or delinquent taxes. If you should have any questions, please feel free to contact me. Sincerely,,. Sh-~n~ Biggs, C~ ..Borough Clerk CC: Applicant City of Kenai KPB Finance Department File S:\WPWIN~ATA~ABC Board~Abc-leuers\Transferktransfer in city. wpd Date of Notice: September 23, 2005 State of Alaska Alcoholic Beverage Control Board Application Type: NEW Goveming Body: Community Councils: City of Kenai None X X X X TRANSFER Ownership Location Name Change License #: License Type: D.B.A.*' Licensee/Applicant: Physical Location: 4533 Restaurant Eating Place Katina's Greek & Italian Restaurant George Lagoutaris & Christina Lagoutaris 1188 Kenai Spur Hwy Mail Address' Telephone #: EIN: Corp/LLC Agent: N/A PO Box 4047 Soldotna AK 99669 907-283-4403 No Fax 22-3885728 Address Phone Date and State of Limited Partnership Good standing? Please note: the Members/Officers/Directors/Shareholders (principals) listed below are the principal memb, There may be additional members that we are not aware of because they are not primary members. We have ...listed all principal members and those who hold at least 10% shares. Member/Officer/Director: DOB Address Phone Title/Shares (%) George Lagoutaris 12/31/54 PO Box 4047 Soldotna 907-262-9876 Owner 50% AK 99669 Christina Lagoutaris 5/1/60 PO Box 4047 Soldotna 907-262-9876 Owner 50% - AK 99669 , T~, 41. 1' ,' . ,I. · ,.~ . If transfer application, current hcense information: License #: 3146 Current D.B.A.: Kenai Golf Course Cafe Current Licensee: Kenai Golf Course Caf6 Inc. Current Location: 1420 Lawton Dr Additional comments: Restaurant Designation Permit Application will be sent via 'US mail. ORIGINAL APPLICATION MUST BE RETURNED. **Date of Birth * Doing Business As Cc' Kenai Peninsula Borough Lm~l'Cknmuing Body - Nmv Format STATE OF ALASKA ALCOHOLIC BEVERAGE CONTROL BOARD APPLICATION FOR RESTA~_ ~ ~ DESIGNA' 'TJX' PE-"R~T.. 00,_._ . -AS 04.16.049 & !5 AAC 104 The granting of this permit allows access of persons under 21 years of age to designated licensed premises for purposes ot and persons under the age of 19 for employment. If for employment, please state in detail, how the person w~es, etc. i(13 AAC 104.745). This application is for designation of premises where · (please mark appropriate items). 1 X Under AS 04.16.010(c) Bona fide restaurant/eating place. 2 X Persons between 16 & 21 may dine unaccompanied. 3 X Persons under 16 may dine accompanied by a person 21 years or older. 4 X Persons between 16 and 19 years may be employed. (See note below). LICENSEE: George La~outaris and Christine La~outaris D/B/A: Katina's Greek & Italian Restaurant ADDRESS: 11888 Kenai Spur Highway ga,, Kenai, AK 99611 1. Hours of Operation: 11 A.M. to .10 P.M. Telephone # 283-4403 2. Have police ever been called to your premises by you or anyone else for any reason: [ ] Yes If yes, date(s) and explanation(s). ~ No Duties of employment: waitressing, dishwashing, food delivery Are video games available to the public on your premises? No Do you provide entertainment: [ ] Yes ]~ No If yes, describe. How is food served? X Table Service Buffet Service Counter Service 7. Is the owner, manager, or assistant manager always present during business hours? X Yes [ ] No Other* *** A MENU AND A DETAILED LICENSED PREMISES DIAGRAM MUST ACCOMPANY THIS APPLICATION *** This permit remains in effect until the liquor license is transferred OR at the discretion of the Alcoholic Beverage Control Board. (13 AAC 104.795) I certify that I have read AS 04.16.049, AS 04.16.060, 13 AAC 104.715-795 and have instructed my employees about provisions " ' / AppliCant(s) signature Application approved (13 AAC 104.725(e) Subscribed.and sworn to/,~L~ d aybef°re ~t~~~/~o f / ~O~"/ Governing Body Official · .. Nom,~ Pubii4rin and for Alaska My. CommiSsion.exPires ,. . . . Director, ABC Board Date: NOTE: AS 04.16.049(c) requires that written parental consent and an exemption by the Department of Labor must be provided to' the licensee by the employee who is under 19 years of age. Persons 19 and 20 years of age are not required to have the consent or exemption. Describe how food is served on back of form. KENAI. ALASKA Comprehensive Annual Fi na ncia I Report For Fiscal Year'Ended June 30, 2005 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF KENAI, ALASKA Year Ended June 30, 2005 Pat Porter Mayor Charles M. Kopp Acting City Manager Prepared by Finance Department Lawrence A. Semmens, CPA Finance Director CITY OF KENAI, ALASKA COMPREHENSIVE ANNUAL FINANCIAL REPORT YEAR ENDED JUNE 30, 2005 INTRODUCTION SECTION Table of Contents Letter of Transmittal GFOA Certificate of Achievement Organizational Chart List of Principal Officials · FINANCIAL SECTION Auditor RepOrt Report of Independent Accountants Management's Discussion and Analysis Basic Financial Statements Government-wide Financial Statements Statement of Net Assets Statement of Activities Fund Financial Statements Balance Sheet, Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance, Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities General Fund- Statement of Revenues, Expenditures, .and Changes in Fund Balance- Budget and Actual Water and Sewer Special Revenue Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Airport Land System Special Revenue Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Statement of Net Assets- Proprietary Funds Statement of Revenues, Expenses, and Changes in Fund Net Assets - Proprietary Funds Statement of Cash Flows- Proprietary Funds Pa~e 11 20 21 22 24 26 27 34 36 38 39 40 Footnotes 41 Other Governmental Funds Airport Land Sales Permanent Fund- Statement of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual Combining Balance Sheet- Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds Kenai Borough Senior Citizens - Statement of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual Council on Aging - Statement of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual 1984/1986/1993 Special Assessment Debt Service Fund - Statement of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual General Government Land sales - Statement of Revenues, Expenditures, and Changes in Fund Balance- Budget and Actual Statistical Section 55 57 58 61 64 '65 66 67 69 KENAI. ALASKA October 13, 2005 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 / Fax: (907) 283-3014 www. ci.kenai.ak.us Honorable Mayor Pat Porter, City Council Members and Citizens of the City of Kenai, Alaska In accordance with'Section 29.35.120 of Alaska Statutes and the City Charter, we are pleased to submit the Comprehensive Annual Financial Report for the year ended June 30, 2005. The financial statements were prepared in conformance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. This report consists of management's representations concerning the finances of the City of Kenai. Consequently, management assumes full responsibility for the completeness and reliability of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theE, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatements. ,As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City's financial statements have been audited by Mikunda, Cottrell & Co., a firm of independent certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2005, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statement; assessing the accounting principles used and significant' estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for the fiscal year ended June 30, 2005, are fairly presented in conformity With GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial' statements, but also on the audited government's internal controls and compliance with certain legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City's separately issued Single Audit Report. GAAP requires that management provide a narrative introduction, overview, and analySis to acCompanying the basic financial statements in the form of Management's Discussion a nd Analysis (MD&A). This letter of i. transmittal is designed to complement the MD&A and should be read in. conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors. Profile of the City of Kenai The City was incorporated in 1960 as a home rule city and its charter was adopted May 20, 1963. The City occupies a geographic area of approximately 45 square miles located in the south central part of the state of Alaska. Major city services include police, fire, ambulance, airport, street maintenance, recreation, parks,' building inspection, water and sewer, dock, cemetery and library. Funding for the City General Fund, by order of financial significance, is provided from sales tax, property tax, state revenue, interest earnings, federal revenue, and other sources. Other funds rely on service charges, interest, grants and other sources. The City operates under a council - manager form of government. Policy-making and legislative authority are vested in a governing council consisting of six members and the mayor. The city manager, attorney and clerk are appointed by the council. The council and mayor are elected on a non-partisan basis. Council members serve three-year staggered terms, with 2 members elected each year and are elected at large. The mayor is elected at large and serves a three-year term. The city manager is the City's chief executive officer and is responsible for carrying out the policies and ordinances of the City, for overseeing the day-to,day operations of the government and for hiring the heads of the various departments. Budgetary Control The annual budget serves as the foundation for the City's financial planning and control. All departments submit budgets to the city manager on or about the last Monday in February. The city manager uses these requests for developing a proposed budget. The city manager submits her proposed budget, to the council at the first regular council meeting in April. The council is required to hold public hearings on the proposed budget and generally adopts the budget by Ordinance at the first meeting in June. The city manager is authorized to make budget transfers within a fund for amounts less than $2,500. Council action is required for transfers between funds, for transfers exceeding $2,500 and for new appropriations. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an annual budget has been adopted. Factors Affecting Financial Condition Economy As expected, sales tax rebounded from the prior year due primarily to the oPening of a new large retail store that replaced one that closed. The increased traffic in the City had a positive impact on many other businesses such that taxable sales for the year were $140 million, a new record -- up 1.0.57% from FY 2004. We expect a return to normal growth which is in the range of 2- 3 %. The primary private sector portions of Kenars economy are oil and gas, commercial fishing, tourism and retail sales. The future holds challenges for oil and gas and commercial fishing in the Cook Inlet region. Gas supplies, critical to liquefied natural gas (LNG) and fertilizer prOduction, are projected to run out in this decade if new supplies are not made available through discovery or pipelines from other production areas. A gas pipeline from the North Slope to Cook Inlet would greatly enhance the viability of the industrial complex. The State of Alaska is working with the gas producers and other interested entities to develop the gas pipeline. Commercial fishing has been in decline for several years due primarily to market forces which have driven prices down to historic lows. However, the catch and overall value of fish were up in both the 2004 and 2005 seasons. Wild fish from Alaska are developing a reputation for quality which is generating better prices and higher demand. , The tourism industry continues to expand in Alaska and has a positive outlook. Overall, the projection for the · economy of Kenai is optimistic. Kenai is situated in a beautiful area with abundant land and natural resources, an accommodative business climate and a Stable population base. Long term financial Planning General Fund fund balance increased in FY 2005 to nearly $9.5 million which represents more than one year of expenditures. This healthy fund balance provides options for the City and generates interest income that can be used for operations. Effective in FY 2004 the State eliminated the revenue sharing, municipal assistance and municipal matching. grant programs. Combined, these programs represented nearly $450,000 or the equivalent of over 1 mill of property tax. Fortunately a new large retailer has located in the City and other retail stOres are expanding, so sales tax revenue is expected to grow 2 -3% per year. The property tax rate was decreased for FY 2005 by .5 mills to 4.5. One of the larger financial challenges facing the City is our contribution to the Public Employees Retirement System (PERS). Our rate is expected to increase.at 5% per year or over $250,000 annually for the next several years. The rate increase is driven by the large liability incurred by the PERS when actuarial assumptions were changed along with poor investment returns and health insurance cost increases. In FY 2006 the State of Alaska is providing funding for the 5% increase, but this program may not continue so this is not a long term resolution of the problem. The price of oil has increased substantially over the year, which is good for the State treasury, but increases costs across the board for consumers; not only for fuel, but for virtually all goods that are shipped to the State. High oil prices are likely to increase inflation, but may not negatively impact the Alaska economy due to the positive impact higher oil prices have for the'State and major emPloyers. The City is working on a capital improvements plan that covers the next 5 - 10 years. Projects will be identified :and prioritized giving due consideration to probable funding sources. :, The CitY is actively pursuing economic development opportunities and the long-term financial outlook is positive. ' Cash management policies and practices The City utilizes a central treasury to aggregate cash from all funds for cash management and investment purposes. Interest income on investments is allocated to participating funds based on average equity balances. The City Code of Ordinances authorizes investment in obligations of the U. S. Treasury, its agencies and instrumentalities, repurchase agreements, fully collateralized certificates of deposit, money market mutual funds and the Alaska Municipal League Investment Pool, Inc. The City Code of Ordinances also places limitations on maturity of investments. Risk Management The City's risk management program is designed to protect against accidental losses that would significantly affect personnel, property, or City finances. The City purchases commercial general liability and property insurance through the Alaska Public Entities Insurance Pool. The City risk management plan includes employee training to reduce employee injuries and claims. Pension and Other Postemployment Benefits The City provides pension benefits for all eligible employees through the State of Alaska Public Employees Retirement System (PERS). The City has no obligations in connection with employee benefits offered though this plan beyond its annual required payment to the pension plan.- '3 Award The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Kenai for its comprehensive annual financial report for the fiscal year ended June 30, 2004. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Acknowledgment The preparation of this Comprehensive Annual Financial Report in a timely manner was accomplished with the efficient and dedicated service of the entire-staff of the. Finance Department. We woUld like to especially thank Robin Feltman, Accountant, for her contribution. Due credit should also be given to the City Council for their efforts in planning and conducting the financial operations of the City in a responsible manner. Respectfully submitted, L~..~x,~.., ~, -~-~ Charles M. Ko~, Acting City Manager Lawrence A. Semmens, CPA Finance Director Certificate of Achieve'ment for Excellence in Financial Reporting Presented to City of Kenai, Alaska For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2004 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. President EXecutive Director City of Kenai Organization Chart CITIZENS COMMISSIONS .... Airport Harbor Parks and Recreation Library Planning and Zoning CITY CLERK CITY COUNCIL , , , BOARDS, COUNCILS AND COMMITTEES Council on Aging Beautification Comm. Personnel Arbitration Board CITY ATTORNEY FINANCE PARKS & REC. PUBLIC WORKS CITY MANAGER FIRE ,,. I POLICE ! I LIBRARY CITY OF KENAI, ALASKA ORGANIZATION AND PRINCIPAL CITY OFFICIALS The City of Kenai was founded in 1791. It is located south of Anchorage on Cook Inlet in the Central Kenai Peninsula. The City is 161 highway miles from Anchorage. By air, Kenai is three hours from Seattle and thirty minutes from Anchorage. Kenai was the site of the first major oil strike in 1957 and has served as a center for exploration and production since that time. Commercial fishing and processing contribute to tho economy. Kenai adopted the Council Manager form of government in 1963 and has been operating under this form since that time. The City Council, together with appointed City officials, meets the first and third Wednesday of each month in the City Administration Building for regular Council sessions. In addition, numerous special meetings and work sessions are scheduled throughout the year. The Council, which consists of the Mayor and six council members, is selected at large and on a non-partisan basis. Annual elections are held in October. The terms of office are three years but are overlapping so that the City is provided with a continuity of knowledge in City business and legislative matters. City Counci! Term Ends Mayor Pat .Porter 2007 Council Members Linda Swarner 2008 Mike Boyle 2008 Joe Moore 2007 Cliff Massie 2007 Rick Ross 2006 Robert Molloy 2006 City Administration Acting City Manager Finance Director City Clerk City Attorney Police Chief Fire Chief Public Works Manager Public Works Manager Librarian Parks & Recreation Director Airport Manager Senior Center Project Director Charles Kopp Lawrence A. Semmens Carol L. Freas Cary R. Graves Charles Kopp Mike Tilly Keith Kornelis Jack La Shot Ewa Jankowska Robert Frates Rebecca Cronkhite Rachael Craig This page intentionally left blank AUDITOR REPORT MIKUNDA, COTTRELL &. CO. A Professional Corporation CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 215 Fidalgo, Suite 206 · Kenai, Alaska 99611 (907) 283-3484, Fax (907) 283-5842 Independent Auditor's Report Honorable Mayor and Members of the City Council City of Kenai, Alaska We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Kenai, Alaska, as of and for the year ended June 30, 2005, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Kenai's management. Our responsibility is to express opinions on these financial statements based on our audit.' We conducted our audit in accordance with auditing standards generally acCepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates .made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Kenai, Alaska, as of June 30, 2005, and the respective changes in financial, position and cash flows, where applicable, thereof and the respective budgetary comparisons for the General Fund, the Water and Sewer Special Revenue Fund, the Airport Land System Special Revenue Fund, and the Airport Land Sales Permanent Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 13, 2005 on our consideration of the City of Kenai's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accOrdance with Government Auditing Standards and should be considered in assessing the results of our audit. O~ces: Anchorage, Kenai & Seward · Honorable Mayor and Members of the City Council City of Kenai, Alaska The management's discussion and analysis, as identified in the table of contents, is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Kenai's basic financial statements. The introductory section, combining and individual n0nmajor fund statements and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual' nonmajor fund statements have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory sectiOn and the statistical section, as identified in the table of contents, have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. October 13, 2005 l0 MANAGEMENT'S DISCUSSION AND ANALYSIS ~, ,,, Management's Discussion and Analysis As management of the City of Kenai, we offer readers of our financial statements this narrative overview and analysis of the financial activities of the City of Kenai for the fiscal year ended June 30, 2005. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. Financial Highlights The assets of the City of Kenai exceeded its liabilities at June 30, 2005 by $139,901,786 Of this amount, unrestricted net assets of $18,706,834 may be used to meet the government's ongoing obligations to citizens and creditors. A significant portion of this legally unrestricted amount has been designated for specific purposes. The City's total net assets decreased by $440,318. Governmental Funds decreased by $94,918 and business type activities decreased by $345,400. As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $30,747,741 a decrease of $152,645 from the prior year. The fund balances of the two permanent funds, which cannot be spent, account for $13.7 million of total fund balance. About $5.3 million of the remaining fund balance is reserved or designated. The remaining $11.7 million is available for spending. At the end of the current fiscal year, fund balance for the General Fund was $9,461,403. Of this amount $6,463,181 was unreserved, undesignated and available for spending. The City's total outstanding debt decreased $150,000 to a year-end balance of zero. The City also has a long-term liability for contaminated soils remediation of $1.4 million and a net pension obligation of $418,954. The net pension obligation is due to the fact that the City paid the contribution rate required by the Public Employee's Retirement System, however that rate was less than the rate that the PERS actuary recommended. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Kenai's basic financial statements. The City of Kenai's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. The basic financial statements include two kinds of statements that present different views of the City's activities: Government-widefinancial statements provide both short-term and long-term information about the City's overall financial condition in a summary format. Fund financial statements focus on individual parts of the City, reporting the City's operations in more detail than the government-wide statements.. The form of fund financial statements presented herein is only slightly changed from the reporting model that we have used for many years. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Kenai's finances in a manner similar to a business enterprise. The statement of net assets presents information on all of the City's assets and liabilities. Net assets - the difference between assets and liabilities - is one way to measure the City's financial position. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is imprOving or deteriorating. There are other non-financial factors, such as the condition of facilities, roads and other infrastructure that should be considered in evaluation of overall financial condition. The statement of activities presents information showing how government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (businesstype activities). The governmental activities of the City of Kenai include general government, public safety, public works, parks and recreation and culture, dock, airport, water and sewer and social services. The business-type activities of the City include the airport terminal and the congregate housing facility. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The city, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Kenai can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the.govemment's near-term financing 12 decisions..Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between the two. Five of the City's governmental funds are considered major funds. Information is presented separately in the governmental fund balance sheet and in. the governmental fund statement of revenues, expenditures, and changes in fund balances for the major funds including: the General Fund; two special revenue funds: the Water and Sewer Fund and the Airport Land System Fund; the Airport Land Sales Fund, which is a permanent fund; and the Airport Improvement Capital Project Fund. Individual fund data for each of the non-major governmental fUnds is provided in the form of combining statements elsewhere in this report. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with the Fiscal Year (FY) 2005 budget. PrOprietary funds. The City of Kenai maintains two different types of proprietary funds: enterprise and internal service. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for the Airport Terminal and the Congregate Housing Facility. Information for these two funds is presented in the proprietary statement of net assets and the proprietary statement of revenues, expense and changes in fund net assets.. Internal service funds are used to accumulate and. allocate costs internally among the City's various functions. The City of Kenai used an internal service fund to account for the purchase of heavy equipment that is primarily used bY the General Fund. Because these services predominantly benefit governmental rather than business type functions, they have been included within governmental activities in the government-wide financial.statements but are presented separately in the proprietary fund financial statements. ~:. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain other supplementary information. The combining .statements referred to earlier in connection with non-major funds are presented immediately after the basic financial statements. Also included are budget comparisons for governmental funds other than the General Fund. Government-wide Financial Analysis. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. At June 30, 2005, the City's assets exceeded liabilities by $139,901,786. By far the largest portion of the City's net assets reflects its investment in capital assets. 13 The following table provides a summary of the City's net assets: Net Assets (in thousands) Current and other assets Capital Assets Total Assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets Invested in capital assets net of related debt Restricted Unrestricted Total net assets minor arithmetic differences are due to rounding Govern..m. ental Activities Business-Type Activities 2005 2004 2005 2004 $ 33,466 $ 33,277 $ 2,498 $ 2,632 $ 101,904 101,564 . 5,197 5,396 135,370 134,841 7,695 8,028 , , 2,359 1,400 13 - 745 1,080 46 47 .... 3,104 2,480 59 47 101,904 101,414 5,196 5,396 14,095 13,887 - - 16,267 17,060 2,439 2,585 $132,266 $ 132,361 ~' 7,635 $ 7,981 Total 2005 35,964 107,101 143,06.5 2O04 $ 35,9O9 106,960 =, 142,869 2,372 791 3,163 1,400 1,127 2,527 107,100 14,095 18,707 $ 139,902 106,810 13,887 19,645 $140,342 , Governmental activities. Governmental activities decreased the City's net assets by $94,918. Key elements of this decrease are: Last year net assets decreased by $756,044, so this is a dramatic improvement. Revenue was up substantially, $2.6 million, in FY 2005 primarily due to improved sales tax revenue, increased water and sewer rates and capital grants. Sales tax was up due to the opening of a large retail store and general economic improvement. · Expenses were also higher than last year by $1.9 million. Completed capital projects added to depreciation expense. Personal services expenses were up due to wage increases, and health insurance cost increases. Although the City made the required contribution to the Public Employees Retirement System, it was less than the actuarially required rate which resulted in a charge of $413,743. This was in addition to the 136% increase from 3.67% to 8.67% in the PERS rate the City paid. The City does not budget to cover all expenses including depreciation. In order to replace significant capital assets in the future the City will likely rely on external financing sources, such as debt or grants. Business-type activities. Business-type activities reduced the net assets of the City by $345,400. Key elements of this decrease are' 14 Both of the enterprise funds had negative net income again this year. The Congregate Housing Facility rates are not set. high enough to cover the cost of depreciation on the facility which was built primarily with grant funds. The facility also incurred high maintenance expenses in FY 2005 to refinish the exterior of the building. The Airport Terminal revenues and expenses are up slightly from last year. The facility does not generate sufficient income to cover depreciation expense. Changes in Net Assets. The City's total revenues and expenses for governmental and business-type activities are reflected in the following chart: Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Sales taxes Other Total revenues Changes in Net Assets (in thousands) Governmental Activities 2OO5 2O04 BUsinesS'Type ACtivities 2005 2004 $ 3,234 $ 2,803 795 802 2,545 1,011 1,901 .2,027 4,091 3,791 874. 409 13,439 10,843, $ 550 $ 528 613 31 2005 Total $ 3,784 2004' $ 3,331 795 802 2,545 1,042 - 1,901 2,027 - 4,091 3,791 25 937 434 584 14,052 11,427 Expenses: General government Public safety Public works Parks, recreation, and cultural Water and sewer services Airport Interest on long-term debt Social welfare services Airport Terminal Senior Housing Total expenses Decreases in net assets bef°re transfers Transfers Decrease in net assets Net Assets beginning Net Assets ending Minor arithmetic differences are due to rounding 1,148 963 3,991 3,116 2,290 1,929 1,397 1,248 1,841 .1,774 2,404 2,195 4 12 46O 417 . -- . 13,534 11,654. , . (95) (811) - 55 , , (95) (756) 132,361 133,117 $132,266 $ 132,361 ., 478 48O , 958 (345) ,. (345) 7,98~ ~...7,635 $ - 1,148 963 - 3,991 3,116 - 2,290 ' 1,929 - 1,397 1,248 - 1,841 1,774 - 2,404 2,195 4 12 - 46O 417 453 478 453 328 48O 328 ....... 781 14,49_2 12,435 (197) (440) (1,008) (55) - - (252) (440) (1,008) 8,233 140,34~2 141,350 7,981 $139,90~2 $140,342 15 Financial Analysis of the City's Funds The City of Kenai uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental Funds. The purpose of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the city's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The total fund balance of governmental funds is $30,747,741 which is down $152,645 from last year. About $11.7 million of fund balance is unreserved, undesignated fund balance, which is available for sPending at the City Council's discretion. The remainder of fund balance, $19 million, is reserved or designated to indicate that it is not available for new spending. The largest portion of this, $13.7 million is in the two permanent funds which do not allow spending of fund balance. The General Fund is the chief operating fund of the City of Kenai. At the end of the current fiscal year, unreserved, undesignated fund balance of the general fund was $6,463,181, total fund balance was $9,461,403. Fund balance increased $121,015 in the current year. As a measure of liquidity, it may be useful to compare both unreServed fund balance and total fund balance to total fund eXpenditures. Unreserved, undesignated fund balance represents 74% of total expenditures and transfers, while total fund balance represents 108% of that same amount. The general fund has a very healthy fund balance, General Fund expenditures are up $1.3 million over last year. In FY 2004 the city cut its budget in anticipation of severely reduced sales tax revenue due to the closure of a large retail store. However in December 2004 a new retail store opened and sales tax revenues have returned to normal levels, The City increased payroll expenditures primarily for a cost of living adjustment, increased health insurance costs and increased contributions to the retirement system. Total general fund expenditures for personal services were $6 million in the current year, up from $5.3 million last year. The primary revenue sources of the general fund include property tax of $1,896,713 sales tax of $4,090,468 and charges to other funds of $1,007,000. Sales tax is up $300,000 over last year for the reason mentioned above. Total revenues were up $460,000 from last year. Tax revenues support general fund operations exclusively and represent 41% of governmental funds revenue. The mill rate for property tax was decreased from 5.0 to 4.5 for FY 2005. Other funds rely heavily on charges for services and interest revenue. Interest revenue in the governmental funds is up significantly from the prior year due mostly to increasing interest rates. As rates increase, the value of the portfolio declines, requiring a market value adjustment that reduced interest revenue by $84,000. Capital projects funds' and the senior services related funds are largely financed by grants from the federal, state and borough governments. 16 Proprietary funds. The City of Kenai maintains two different types of proprietary funds. Enterprise funds are used- t° report the same functions presented as business-type activities in the government-wide financial statements. The Airport Terminal and Congregate Housing funds are enterprise funds which are combined in a'single aggregated presentation in the proprietary fund financial statements. Internal service funds are used to accumulate and allocate costs among the City's various functions. The City'of Kenai has one internal service fund the purpose of which is to account for the purchase of equipment costing more that $50,000. The Equipment Replacement Fund charges the primary user department in the General Fund such that the General Fund reimburses the Equipment Replacement Fund over the useful life of the asset. BeCause these services predominantly benefit governmental rather than business type functions, they have been included within governmental activities in the government-wide financial statements but are presented in a single column in the proprietary fund financial statements. UnreStricted net assets of the Airport Terminal at the end of the year amounted to $2,027,603 and in the Congregate Housing Fund unrestricted net assets were $411,561 The net assets for both of these enterprises decreased, $131,662 and $213,738 respectively. Revenues are simply insufficient to cover expenses - especially considering depreciation. Efforts are being made to increase revenue in both funds; however, it is anticipated that net assets will continue to decline. GeneralFund Budgetary Highlights The General Fund appropriations budget was 'amended by the City COuncil during the year by $314,678. The budget increases were due to grants received during the year including a $51,000 pass through grant to the Boy's and Girl's Club, Homeland Security Grants of $103,000 and State grants for public safety of $47,000. Appropriations of fund balance were made for public safety records management for $56,000, and communications equipment for $26,000. Actual revenues were $437,705 higher than the final budget, a variance of about 5%. Fish tax revenue was $56,000 over budget, oil and gas royalties about $68,000 over and interest was over budget by $50,000. The balance of the revenue variance compared to budget was spread out in small amounts across several categories of revenue. The actual expenditures were $579,317 less than budgeted. It should be noted that encumbrances at year-end totaled $196,531. The City typically does not spend the entire authorized appropriation, the variance this year was about 6.24% of final budget, compared to 9.7% last year. 17 Capital Assets and Debt Administration Capital assets. At June 30, 2005 the City's capital assets had a total net book value of $107,099,983. Governmental activities totaled $101,903,694 and business-type activities totaled $5,196,289. Additional information on the City's capital assets can be found in the notes to the financial statements at 'Section III. Detailed Notes on All Funds' B. Capital Assets. Debt administration. The City had no outstanding debt at year-end. There are long-term liabilities for contaminated soils remediation of $1,400,000, compensated absences of $552,428 and net pension obligation of $418,954. Additional information on the City's long-term debt can be found in the notes to the financial statements at 'Section III. Detailed Notes on All Funds' E. Changes in Long-Term Debt. Requests for information. This financial report is designed to provide a general overview of the City of Kenai's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Finance Director, City of Kenai, 210 Fidalgo Avenue, Kenai, Alaska 99611. BASIC FINANCIAL STATEMENTS This page intentionally left blank 19 CITY OF KENAI, ALASKA STATEMENT OF NET ASSETS June 30, 2005 Governmental Business-type Activities Activities ,, , Total ASSETS Equity in central treasury (cash and cash* equivalents) Receivables (net of allowances for uncollectibles) Other assets Property and equipment in service Accumulated depreciation Construction in progress Total assets LIABILITIES Accounts payable Unearned revenue Other liabilities Noncurrent liabilities: Compensated absences Due in more than one year: Net pension obligation Soil remediation Total liabilities $ 30,579,597 $ 2,485,282 $ 2,868,946 13,137 17,765 - 134,299,875 9,537,789 (41,851,564) (4,341,500) 9,455,383 - $ 135,370,002 $ , 7,,694,708 $ 33,064,879 2,882,083 17,765 143,837,664 (46,193,064) 9,455,383 143,064,710 385,758 $ 14,992 $ 400,750 121,854 8,650 130,504 237,394 22,894 260,288 544,920 7,508 552,428 413,743 5,211 1,400,000 - 418,954 1,400,000 3,103,669 59,255 3,162,924 NET ASSETS Invested in capital assets, net of related debt Restricted for: Airport Land Sale Permanent Fund General Government Land Sale Permanent Fund Unrestricted Total net assets 101,903,694 5,196,289 107,099,983 11,732,362 2,362,607 16,267,670 $ 132,266,333 $ 2,439,164 7,635,453 $ 11,732,362 2,362,607 18,706,834 139,901,786 See Accompanying Notes to Financial Statements 2O C o E ..., oo 21 CITY OF KENAI, ALASKA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2005 ASSETS AND OTHER DEBITS Equity in central treasury (cash and cash equivalents) Receivables (net of allowances for uncollectibles) Due from other funds Other assets Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to other funds Deferred revenue Other liabilities Total liabilities Fund balances: Reserved for: Encumbrances Capital improvements Land sale permanent funds Inventory Unreserved: Designated: General fund Special revenue funds Debt service fund Capital projects funds Undesignated: General fund Special revenue funds Total fund balances Total liabilities and fund balances General 8,234,047 1,932,944 33,835 17,765 Water and Sewer $ 1,114,840 187,092 - $ ,, 10,21,8,59! $ 1,301,932 54,547 . 529,650 172,991 757,188 196,531 950,746 . 17,765 1,833,180 . . . 6,463,181 . 9,461,403 $ 24,070 . 21,129 47,899 93,O98 5,522 . . . 21,680 . - 1,181,632 1,208,834 $ 10,218,591 $ 1,301,932 Airport Land System 4,677,474 30,111 . $ . 4,,,707,585 12,749 - 39,846 7,039 59,634 20,004 . . . 701,712 - . 3,926,235 4,647,951 $ 4,707,585 See Accompanying Notes to Financial Statements 22 Airport Land Sales $ 11,472,050 260,312 . . $. 11,732,362 Airport Improvement Capital Project $ 382,919 308,813 .. $ 691,732 Other Governmental 3,592,622 149,674 .. . $ 3,742,296 Total Governmental Funds 29,473,952 2,868,946 33,835 .... .17, .7.6.5. 32,394,498 260,312 . 260,312 291,657 . 453 . 292,110 2,735 33,835 138,380 9,465 184,415 385,758 33,835 989,770 237,394 1,646,757 11,472,050 . - 150 . - 2,273,801 . 222,207 950,746 13,745,851 17,765 . .. - - 17,973 . - - 399,622 1,117,520 . . .. . - - 148,437 11,472,050 399,622 3,557,881 ,,, $ 11,732,362 $ 691,732 $ 3,742,296 i iiii i ii i ! i 'Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and are not reported in the funds. Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the funds. Some liabilities, including soil remediation, net pension obligation and compensated absences are not payable in the current period so they are not reported in the funds. Internal service funds are used by management to charge the cost of certain activities to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net assets Net assets of governmental activities 1,833,180 741,365 . 1,517,142 6,463,181 5,256,304 30,747,741 101,025,973 867,916 (2,358,663) 1,983,366 132,266,333 ?.3 CITY OF KENAI, ALASKA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2005 Revenues: Taxes Intergovernmental revenues Charges for services Interest revenue Miscellaneous revenues Water and Airport Land General Sewer System $ 6,002,844 $ - 483,361 - 1,623,689 1,618,036 275,536 48,174 486,570 23,927 Total revenues .. 8,872,000 1,690,137 ExPenditures: Current: General government Public safety Public works Parks, recreation, and cultural Water and sewer services Airport Social welfare services Capital Outlay Debt service 1,482,143 4,262,592 1,753,030 1,211,094 . . - -- . Total expenditures 8,708,859 Excess (Deficiency) of Revenues Over Expenditures 163,141 Other financing sources and (uses)' Transfers in Transfers out 33,475 (75,601) Total other financing sources and (uses) (42~126) Net changes in fund balance 121,015 Fund balances - July 1 9,340,388 Fund balances - June 30 1,208,570 . 1,208,570 481,567 40,693 -- 40,693 522,260 686,574 14,021 93,631 410,851 410,872 929,375 1,657,105 . 1,657,105 (727,730) 3O,446 (227,670) (197,224) (924,954) 5,572,905 $ . ~9,461,403 $ 1,208,834 $. 4,647,951 See Accompanying Notes to Financial Statements 24 Airport Land Sales 18,812 32,927. 51,739. Airport Improvement Capital Project 2,124,597 .. 3,810. . . . 2,128,407. Other Governmental 650,976 50,591 8,994 203,102 ,913,663. Total Governmental Funds 6,OO2,844 3,272,955 3,385,947 762,367 1,161,208 ,!4,585,321 2,202,024 .. 410,770 396,626 154,012 1,482,143 4,262,592 1,753,030 1,211,094 1,208,570 1,657,105 410,770 2,598,650 154,012 51,739 2,202,024 (73,617) 961,4O8 (47,745) 14,737,966 (152,645) (18,811) (18,8~, !,) 32,928 11,439,122 $ 11,472,050 227,670 (290) 227,380 153,763 245,859 24,546 (34,458) (9,912) (57,657) 3,615,538 356,830 (356,830) (152,645) 30,900,386 $ .... 399,622 $ 3,557,88~1 .$. .... 30,747,741 25 CITY OF KENAI, ALASKA Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds To the Statement of Activities For the Year Ended June 30, 2005 Amounts reported for governmental activities in the statement of activities are different because: Net changes in fund balances - total governmental funds Governmental funds reported $445,336 of capital outlays as expenditures, and construction work in progress increased by $2,499,752. However, in the statement of activities the cost of those assets is allocated over their estimated lives and reported as depreciation expenses. Total depreciation expense was $2,429,367. This is the amount by which capital outlays exceeded depreciation expense in the current period. Governmental funds reported the actual payment made to PERS for pension obligation of $413,941; however, in the statement of activities the actuarially required contribution was recorded. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Special assessment revenues reported in the governmental funds are not revenues of the current period using the flow of financial resources basis. (152,645) 515,721 (413,743) 150,000 36,40O Land sales reported as revenue in the governmental funds are not revenues of the current period on a flow of financial resources basis. (203,080) Compensated absences reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (52,927) Internal service funds are used by management to charge the cost of certain activities to individual funds. The net revenue of certain activities of the internal service fund is reported with governmental activities. 25,356 Change in net assets of governmental activities See Accompanying Notes to Financial Statements , (9.4,918) 26 CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 Revenues: Taxes: General property General sales Penalty and interest on taxes Total taxes Licenses and. permits: Building permits Animal control, licenses and fees Other Total licenses and permits Intergovernmental revenues: Federal Grants Kenai Peninsula Borough State of Alaska shared revenues: Electric utility tax Fish tax Liquor licenses State of Alaska grants: Library grants Other Total intergovernmental revenues Charges for services: Ambulance fees MultipUrpose facility charges Administrative and service fees Other Total charges for services Fines and forfeits: Court fines Library fines Other forfeitures Total fines and forfeits Original Final Budget Budget $ 1,888,121 $ 1,888,121 $ 4,085,000 4,085,000 22,500 22,500 Actual 1,896,713 4,090,468 15,663 5,995,621 5,995,621 6,002,844 55,O0O 55,O00 6,700 6,700 4,100 4,100 ,.. 65,800 65,800 49,117 6,436 6,185 61,738 . . - 103,060 137,253 48,000 48,000 48,000 Variance With Final Budget Positive (Negative) 8,592 5,468 (6,837) 7,223 (5,883) (264) 2,085 (4,062) 34,193 26,000 26,000 30,021 4,021 75,000 75,000 130,950 55,950 23,000 23,000 17,900 (5,100) - 12,661 - 98,454 .... 172,000 386,175 175,000 175,000 75,000 75,000 1,007,000 1,007,000 95,000 110,000 12,661 106,576 483,361 212,840' 84,359 1,007,000 142,694 1,352,000 1,367,000 1,446,893 8,122 97,186 ,, 37,840 9,359 .. 32,694 79,893 100, 000 100,000 101,065 1,065 15,000 15,000 13,202 (1,798) 1,850 1,850 , 791 (1,059) 116,850 116,850 115,058 (1,792) , , See Accompanying Notes to Financial Statements 27' Miscellaneous revenues: Interest revenue Rents and leases Library donations Oil and gas royalties Special assessments Other Total miscellaneous revenues Total revenues Expenditures: General government: Legislative: Personal services Supplies Other services and charges Total legislative City clerk: Personal services Supplies Other services and charges Total city clerk City attorney: Personal services Supplies Other services and charges Total city attorney CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 continued Original Final Budget Budget $ 225,000 $ 225,000 $ 36,000 36,000 2,000 2,000 12,000 12,000 31,000 31,000 193,450 196,849 , 499,450 502,849 Actual ,, 275,536 38,725 1,898 80,657 61,143 304,147 762,106 Variance With Final Budget Positive (Negative) 50,536 2,725 (102) 68,657 30,143 107,298 259,257 8,201,721 8,434,295 8,872,000 437,705 43,634 43,819 43,815 4 600 2,800 1,726 1,074 78,875 76,490 70,911 5,579 123,109 123,109 116,452 6,657 83,895 83,895 81,266 3,202 4,102 3,540 25,256 24,356 20,469 112,353 112,353 105,275 189,377 i93,877 189,614 1,928 2,651 2,598 14,196 8,973 6,241 205,501 205,501 198,453 2,629 562 3,887 7,078 4,263 53 2,732 7,048 See Accompanying Notes to Financial Statements CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 continued Original Final Budget Budget Actual Variance With Final Budget Positive (Neoative) City manager: Personal services · Supplies Other services and charges Total city manager Finance: Personal services Supplies Other services and charges Total finance Non-departmental: Supplies Other services and charges Pass-through grants . Total non-departmental Planning and zoning: Personal services Supplies Other services and charges Total planning and zoning Safety: Supplies Other services and charges Total Safety Land administration: Supplies Other services and charges Total land administration Total general government $ 160,611 $ 164,408 $ 1,100 855 9,475 10,232 164,408 475 9,749 171,186 175,495 174,632 380 483 863 , ,, 357,196 359,696 359,668 28 9,000 9,201 8,732 469 17,630 17,429 14,579 2,850 383,826 386,326 382,979 3,347 4,800 12,744 9,735 3,009 408,412 345,187 298,367 46,820 - 51,491 44,935 6,556 413,212 409,422 353,037 125,685 125,685 114,702 3,863 6,303 2,999 16,749 14,309 13,505. 146,297 146,297 131,206 56,385 , , 10,983 3,304 804 , 15,091 1,160 1,160 243 917 19,590 19,590 8,.5.23. 11,067 ,, 20,750 20,750 8, 766 11,984 100 190 157 33 8,150 12,037 11,186 851 8,250 12,22.7. 11,.343. 884 1,584,484 1,591,48..0.. 1,482,143. 109,337 See Accompanying Notes to Financial Statements 29 Public safety: Police: Personal services Supplies Other services and charges Capital outlays Total police Fire: Personal services Supplies Other services and charges Capital outlays Total fire Communications: Personal services Supplies Other services and charges Capital outlays Total communications Animal control: Personal services Supplies Other services and charges Capital outlays Total animal control Total public safety CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 continued Original Final Budget Budoet $ 1,514,020 $ 1,511,520 $ 62,672 147,171 110,783 108, 761 61,700 183,399 Actual 1,476,710 142,445 97,724 174,609 Variance With Final Budget Positive (Negative) 34,810 4,726 11, O37 8,790 1,749,175 1,950,851 1,891,488 59,363 1,364,159 1,364,159 1,358,807 85,868 91,262 89,205 119,526 114,132 110,709 5,000 15,000 14,999 1,574,553 1,584,553 1,573,720 501,647 501,647 8,403 6,203 28,350 30,550 5,008 31,008 543,408 569,408 498,893 5,309 23,933 30,422 558,557 143,553 143,553 142,356 9,850 10,730 10,237 64,538 63,658 62,540 21,000 23,694 23,694 238, 941 241,635 238,827 , , 4,106,077 4,346,447 4,262,592 5,352 2,057 3,423 1 10,833 2,754 894 6,617 586 10,851 1,197 493 1,118 .,. 2,808 83,855 See Accompanying Notes to Financial Statements '3O CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 continued Original Final Budget Budget Public works: Public works administration: Personal services $ Supplies Other services and charges TOtal public works administration Shop: Personal services Supplies Other services and charges Capital outlays Total shop . Streets: Personal services Supplies Other services and charges Total streets Dock: Personal services Supplies Other services and charges Total dock Buildings: Personal services Supplies Other services and charges Capital outlays Total buildings Street lighting: Supplies Other services and charges Total street lighting Total public works 255,255 $ · 255,255 4,566 5,230 9,893 9,229 269,714 269,714 Actual Variance With Final Budget Positive ,. (Neoative~ 236,8695 4,495 4,116 245,480 18,386 735 5,113 24,234 239,405 239,405 207,176 32,229 193,825 192,825 183,147 9,678 85,003 86,003 68,708 17,295 6,900 12,900 11,925 975 525,133 531,133 470,956 60,177 441,827 441,827 425,049 16,778 119,138 116,497 51,511 64,986 128,058 130,699 94, 834 35,865 · 689,023 689,023 571,394 117,629 55,305 56,405 56,322 83 33,973 49,123 40,095 9,028 28,635 27,385 10,313 17,072 ,,, 117,913 132,913 106,730 26,18,3, 157,613 157,613 147,161 10,452 27,600 32,172 26,806 5,366 124,647 129,575 92,986 36,589 21,270 11,770 11,706 , 6~ 331,130 331,130 278,659 52,471 17,490 17,490 96,872 96,872 114,362 114,362 8,312 71,499 , 79,811 1,753,030 2,047,275 2,068,275 ,, 9,178 25,373 34,551 315,245 See Accompanying Notes to Financial Statements 33. CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 continued Parks, recreation, and cultural: Library: Personal services Supplies Other services and charges Total library Visitors center: Supplies Other services and charges Total visitors center Recreation: Personal services Supplies Other services and charges Capital outlays Total recreation Parks: Personal services Supplies Other services and charges Capital outlays Total parks Beautification: Personal services Supplies Other services and charges Capital outlays Total beautification Original Final Budget Budget $ 345,448 15,661 117,741 478,850 1,800 108,550 110,350 66,533 4,000 274,328 8,500 353,361 128,769 19,626 56,804 10,000 215,199 36,262 24, OO0 20,440 8,500 89,202 $ 345,448 $ 17,319 128,744 491,511 2,430 107,920 110,350 66,533 4,044 277,34O 8,070 355,987 128,769 24,476 55,2O8 22,471 23O,924 36,262 24,000 24,440 8,500 93,202 Actual 342,239 16,959 118,637 , 477,835 2,410 101,906 104,316 66,098 3,982 276,263 8,070 354, 413 117,067 23,520 38,410 21,726 200,723 35,524 17,647 12,179 8,457 73,807 Variance With Final Budget Positive {Negative) 3,209 360 10,107 13,676 2O 6,014 6,034 435 62 1,077 . 1,574 11,702 956 16,798 745 30,201 738 6,353 12,261 43 19,395 Total parks, recreation, and cultural Total expenditures 1,246,962 8,984,798 1,281,974 9,288,176 1,211,094 8,708,859 70,88O 579,317 See Accompanying Notes to Financial Statements 32 CITY OF KENAI, ALASKA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 continued Original Final Budget Budget Actual Variance With Final Budget Positive (Negative~ Excess of revenues over (under) expenditures Other financing sources (uses)' Transfers in Transfers out Total other financing sources (uses) Net changes in fund balance Fund balance- July 1 Fund balance- June 30 $ (783,07.7..) $ (853,881) $ 163,141 $ 1,017,022 17,000 17,000 33,475 16,475 (65,693) (76,993) (75,601) $ 1,392 (48,693) (59,993) (42,126) 17,867 121,015 9,340,388 $ 9,461,403 , $ (83!,770) $ (913,87,4) 1,034,889 See Accompanying Notes to Financial Statements 33 CITY OF KENAI, ALASKA WATER AND SEWER SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 Revenues: Charges for services: Residential water Commercial water Residential sewer Commercial sewer Hook-up fees Other Total charges for services Miscellaneous revenues: Interest Special assessments Other Total miscellaneous revenues Original Final Budget Budget Total revenues Expenditures - water and sewer services: Water: .. Personal services Supplies Other services and charges Expenditures chargeable from other funds Total water Sewer: Personal services Supplies Other services and charges $ 283,250 $ 283,250 $ 140,690 140,690 812,000 812,000 362,880 362,880 3,000 3,000 18,000 18,000 1,619,820 1,619,820 ,, Actual 286,601 128,063 820,475 350,885 2,100 29,912 1,618,036 Variance With Final Budget Positive (Ne.ative} 3,351 (12,627) 8,475 (11,995) (9o0) 11,912 ('~,784) 14,000 14,000 48,174 34,174 24,307 24,307 20,925 (3,382) 2,500 2,500 3,002 502 40,807 40,807 72,101 31,294 1,660,627 1,660,627 1,690,137 29, 510 120,795 120,795 114,945 5,850 56,820 60,960 40, 315 20,645 184, 46 7 180, 327 161,885 18,442 362,082 362,082 317,145 44,937 73,400 73,400 73,400 435,482 435,482 390,545 44,937 121,551 121,551 114,675 6,876 20,050 21,000 11,393 9,607 84,830 83,880 23,257 60,623 226,431 226,431 149,325 77,106 Expenditures chargeable from other funds 55,900 55,900 Total sewer 282,331 282,331 55,900 205,225 77,106 See Accompanying Notes to Financial Statements 34 WATER AND SEWER SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, 'AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 continued Sewer treatment plant: Personal services Supplies Other services and charges Capital outlays Expenditures charageable from other funds Total sewer treatment plant Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses)' Transfers in Net changes in fund balance Fund balance, July 1 Fund balance, June 30 Original . Final Budget Budget $ 228,801 $ 228,801 $ 72,000 72,000 252,270 252,270 32,345 32,345 585,416 585,416 Actual, 213,449 59,193 206,591 27,867 507,100 105,700 105,700 105,700 691,116 691,116 612,800 1,408,929 1,408,929 1,208,570 Variance With Final Budget Positive ,(Negative) 15,352 12,807 45,679 4,478 78,316 .. 78,316 20O,359 251,698 251,698 481,567 229,869 40,693 40,693 40,693 522,26O 686,574 292,391 ~ 292.391 1,208.834 $ 229,869 See Accompanying Notes to Financial Statements 35 CITY OF KENAI, ALASKA AIRPORT LAND SYSTEM SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 Revenues: Intergovernmental revenue- State grant Miscellaneous revenues: Rents and leases, including penalty and interest Landing fees Fish hauling rents Interest revenue Other Total miscellaneous revenues Total revenues Expenditures - airport: Maintenance and Operation: Personal services Supplies Other services and charges Capital outlays Expenditures chargeable from other funds Total maintenance and operation Original Final Budget Budaet $ 5,000 $ 5,000 $ A. ctual 14,021 Variance With Final Budget Positive (Neaative) ' $ 9,021 360,000 360,000 319,110 (40,890) 82,000 82,000 93,631 11,631 1,000 1,000 2,400 1,400 390,000 390,000 410,851 20,851 21,800 21,800 89,362 67,562 854,800 854,800 915,354 60,554 859,800 859,800 929,375 69,575 195,725 195,725 192,300 3,425 138,250 138,250 112,475 25,775 301,384 301,384 265,471 35,913 135,000 135,000 110,773 24,227 770,359 770,359 681,019 89,340 661,1 O0 661,1 O0 661,1 O0 1,431,459 1,431,459 1,342,119. 89,34O See Accompanying Notes to Financial Statements 36 CITY OF KENAI, ALASKA AIRPORT LAND SYSTEM SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 continued Original Final Budget Budget Actua..__~l Administration: Personal services Supplies Other services and charges Expenditures chargeable from other funds Total land administration Land: Personal services Supplies Other services and charges Capital outlays Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses)' Transfers in Transfers out Total other financing sources (uses) Net changes in fund balance Fund balance- July 1 Fund balance- June 30 $ 134,980 $ 137,480 $ 6,376 6,376 40,745 38,245 , , 182,101 182,101 37,000 219,101 · 35,662 3,600 107,785 147,047 , , 1,797,607 (937,807) 25,967 25,967 $ /911,840) 37,000 219,101 35,662 3,380 98,990 9,016 147,048 ,, 1,797,608 (937,808..) 25,967 (227,670) (201,703) (1,139,51!) 137,402 2,939 29,277 169,618 37,000 206,618 34,362 756 64,259 8,991 · 108,368 1,657,105 (727,730) 30,446 (22.7..,670) (197,224) (924,954) 5,572,905 $ 4,647,951 ,, Variance With Final Budget Positive (Neaative) 78 3,437 8,968 12,483 12,483 1,300 2,624 34,731 25 38,680 140,503 210,078 4,479 ., 4,479 214,557 See Accompanying Notes to Financial Statements 37 CITY OF KENAI, ALASKA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2005 ASSETS Current assets: Equity in central treasury Accounts receivable Total current assets Noncurrent Assets: Property and equipment in service, at cost: Land Buildings Equipment Improvements other than buildings Total property and equipment in service Less accumulated depreciation Net property and equipment in service Total assets LIABILITIES Current liabilities: Accounts payable Other liabilities Deferred revenues Total current liabilities Noncurrent liabilities: Net pension obligation Total liabilites NET ASSETS Invested in capital assets Unrestricted Total Net Assets $ Business-b/pe activities - Enterprise Funds Airport Congregate Terminal Housing T,,otal 2,041,484 $ 443,798 $ 13,137 - 2,485,282 13,137 2,054,621 443,798 2,498,419 6,043 274,500 3,425,007 4,915,806 221,5O4 - 694,929 - 280,543 8,340,813 221,504 694,929 Governmental Activities - Internal Service Fund 'i~quipment Rer~lacernent. 1,105,645 . 1,105,645 .... 1,088,467 . 4,347,483 5,190,306 9,537,789 1,088,467 (2,739,293) (1,602,207) (4,341,500) (210,746) 1,608,190 3,588,099 5,196,289 877,721 3,662,811 $ 4,031,897 7,694,708 10,079 $ 4,913 7,191 23,211 5,815 2,835 14,992 30,402 8,650 23,085 30,959 54,044 3,933 1,278 5,211 27,018 32,237 59,255 1,608,190 3,588,099 5,196,289 2,027,603 411,561 2,439,164 ,,, 3,635,793 .$ . 3,9,99,660 7,635,453 1,983,366 877,721 1,105,645 1,983,366 See Accompanying Notes to Financial Statements Operating revenues: Rents and leases Commissions Vehicle parking fees Other revenue Total operating revenues Operating expenses: Personal services Supplies Utilities Repair and maintenance Insurance Depreciation Manager's fee Miscellaneous Expenses chargeable from other funds Total operating expenses Operating income (loss) Nonoperating Revenues: Interest revenue Total nonoperating revenues Change in Net Assets Net Assets, beginning Net Assets, ending CITY OF KENAI, ALASKA STATEMENT OF REVENUES', EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2005 Business-type activities - Enterprise Funds Airport Congregate Terminal Housim3 Total 84,034 ' $ 255,396 138,768 - 70,622 - 827 - 339,430. 138,768 70,622 827 294,251 255,396 549,647 67,617 20,842 88,459 · 14,933 5,323 20,256 72,016 50,257 122,273 148,716 224,935 373,651 10,300 11,600 21,900 92,331 125,299 217,630 - 19,800 19,800 18,380 1,563 19,943 53,300 20,600 73,900 477,593 480,219 957,812 . Governmental Activities - Internal Service Fund EqUipment .Replacement 50,810 ., 50,810 ., 52,808 . . 52,808 (183,342) (224,823) (408,165) (1,998.00) 51,680 11,085 62,765 27,354 51,680 11,085 62,765 27:354 (131,6.62) (213,738) (345,.400) 25,356 4,213,398 7,980,853 3,767,455 _$ 3,635,793. $ 3,999,660 $ 7,635,45~3 1,958.,010 $ 1,983,366 See Accompanying Notes to Financial Statements 39 Cash flows from operating activities: Receipts from Customers Payments to Suppliers Payments to Employees Payments for Interfund Services Net cash provided (used) by operating activities Cash flows from investing activities: Interest on Investments Cash flows from capital and related financing activities: Acquisition of capital assets Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning Cash and cash equivalents, ending Reconciliation of operating income to net cash provided (used) by operating activities: Operating income Adjustments To Reconcile Operating Income (Loss) To Net Cash Provide by (used in) Operating Activities: Depreciation Accounts receivable Accounts payable Other liabilities and deferred revenues Net Cash Provided by (used in) Operating Activities: CITY OF KENAI, ALASKA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2005 BUsiness-type activities - Enterprise Funds Airport Congregate Terminal Housing T $ 303,484 $ 258,230 $ 561,714 (259,882) (308,846) (568,728) (69,506) (20,502) (90,008) (53,300) (20,600) (73,900) (79,204) (91,718) (170,922) Governmental Activities- Internal Service Fund Equipment Replacement 50,810 50,810 51,680 11,086 62,766 27,354 · (17,554) - (17,554) (79,836) (45,078) (80,632) (1.25,710) (1,672) 2,086,562 524,43.0 2,610,992 $ 2,041,484 $ . 443,798 $ 2,485,282 $ (183,342) $ (224,823) $ (408,165) 92,331 125,299 217,630 8,019 - 8,019 (186) 2,794 2,608 3,974 5,012 8,986 (79,204) $ (,91,718) $ , (170,922) $ iii i 1,107,317 1,105,645 (1,998) 52,808 . . . ,50,810 See Accompanying Notes to Financial Statements 4O FOOTNOTES TO FINANCIAL STATEMENT CITY OF KENAI NOTES TO FINANCIAL STATEMENTS JUNE 30, 2005 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Kenai (City) was formed by a Home Rule Charter on May 20, 1963 under the provisions of Alaska' Statute, Title 29, as amended. The City operates under a council-manager form of government and provides the following services: public safety (police and fire)', public improvements, airport, dock facility, water and sewer, library, senior citizen, recreation, parks, planning and general administrative services. The financial statements of the City have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Govemmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant, accounting principles of the government are described below. B. City-Wide and Fund Financial Statements The City-wide f'mancial statements (i.e., the statement of net assets and the statement of activities) report information on all activities of the City. Governmental activities, which normally are supported by taxes and intergovernmental revenues along with user fees, are reported separately from the business-type activities, which rely to a significant extent on fees and charges for support. The effect of any interfund activity, for the most part, has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are Clearly identifiable with a specific function or segment. Program revenues include charges to customers or applicants who use, purchase, or directly benefit from the goods, services or privileges provided by a given segment or function and includes restricted grants and contributions that are restricted to meeting the operations or capital requirements of a particular function or segment. Taxes and other items not properly included in program revenues are reported as general revenues. Major individual governmental and proprietary funds are reported as separate columns in the fund financial statements. C. Measurement focus and basis of accounting and financial statement presentation The City-wide .financial statements are reported using the economic resources measurem.entfocus and the accrual basis of accounting as are the proprietary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of cash flows. Grants and similar programs are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Net assets are reported as restricted when constraints placed on the net asset use are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments are imposed by law through constitutional provisions or enabling legislations. Governmental fund type financial statements are reported using the current financial resources measurements focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible in the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to claims and judgments, are recorded only when payment is due. 41 Franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessment receivables due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measured and available only when cash is received by the government. The City reports the following major governmental funds: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Water and Sewer Special Revenue Fund aCcounts for the activities of providing water and sewer to city residents. It relies on user fees to finance its operations. The Airport Land System Special Revenue Fund accounts for activities of the airport except for terminal activities and land sales. It relies on user fees and investment interest to finance operations. The Airport Land Sales Permanent Fund accounts for sales of airport land. All principal proceeds of any land sold are held in this fund and may not be spent. Interest earned on land sale contracts is transferred to the Airport Land System Special Revenue Fund. Investment interest generated by the cash balance of this fund is recorded in the Airport Land System Special Revenue Fund. The Airport Improvement Capital Project Fund accounts for capital projects that are airport related. Primary funding sources are federal grants and transfers from the Airport Land System Special Revenue Fund. Additionally the City reports the following fund types: Proprietary Funds- the City uses two enterprise funds to account for activities that are intended to be supported by user fees. The Airport Terminal Enterprise Fund accounts for the activities of the airport terminal. The Congregate Housing Enterprise Fund accounts for the activities of the senior housing project. Internal Service Fund- the Equipment Replacement Fund is an internal service fund. It accounts for the purchase of equipment costing more than $50,000 that will be used by General Fund departments on a cost- reimbursement basis. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the City-wide and proprietary fund financial statements to the extent that those standards do not. conflict with or contradict guidance of the Governmental Accounting standards Board. The City has the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The city has elected not to follow subsequent private- sector guidance. As a general role the effect of interfund activity has been eliminated from the City-wide financial statements. Exceptions to this general role are charges between the City's enterprise functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 42 Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result fi'om providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise fund and of the City's internal service fund are charges to customers for sales and services. Operating expenses for enterprise funds and internal service fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. Use of accounting estimates: 'The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported mounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting period. Actual results could differ from those estimates. D. Assets, liabilities and net assets or equity 1. Cash and cash equivalents The City maintains a central treasury for most of its cash and cash equivalents, which is utilized by all funds. For the purposes of these financial statements, the City of Kenai considers highly liquid investments that are readily convertible to cash, with an original maturity of three months or less, to be cash equivalents. Investment income is recorded in the general fund, except that interest earned on cash held in the water and sewer special revenue fund, the airport land system special revenue fund (including cash in the airport land sales trust fund and airport related capital project funds), the airport terminal and congregate housing enterprise funds and the internal service fund is recorded in these funds. 2. Inventories Inventories are valued at cost, which approximates market, using the first-in/first-out method. The costs of inventories are recorded using the consumption method. 3. Receivables and payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to other funds" or "due from other funds" (i.e., the current portion of interfund loans). 4, Restricted assets Monies or other resources, the use of which is restricted by legal or contractual requirements are recorded as restricted assets. 5. Capital assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business type activities columns in 'the City-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000. All infrastructure assets, including those acquired prior to June 30, 1980, .are reported. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. 43 The costs of normal maintenance and repairs that do not add to the value, of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are c°nstmcted. Property, plant, and equipment of the City, is depreciated using the straight line method over the following estimated useful lives: Assets Years Buildings costing more than $50,000 50 Buildings costing less than $50,000 25 Building improvements 25 Water and sewer infrastructure 50 Street infrastructure 30 Heavy equipment 20 Other equipment 10 Office equipment 5 6. Compensated absences It is the City's policy to permit employees to accumulate earned but unused vacation benefits. The City makes annual appropriations for the amount of leave expected to be used, which is available to employees at essentially their discretion. Each employee is allowed to accumulate up to 80 days of annual leave at the end of a calendar year, with any excess accumulation paid in cash in the following January. All vacation pay is accrued when incurred in the City-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if leave has been used but not yet paid. 7. Long-term obligations In the City-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. In the fund financial statements, governmental fund types recognize long-term debt obligations only when due. 8. Fund equity In the fund financial statements, governmental fund types report reservations of fund balance for amounts that are not available for appropriation or are legally restricted bY outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary information Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental fund types, except the Capital Project Funds which adopt project-length budgets. All annual appropriations lapse at a fiscal year end. Budgets for the general fund, special revenue funds, debt serviCe funds, permanent funds and enterprise funds are annual budgets. Capital project fund budgets are project-length budgets. All budgets are adopted on a basis consistent with generally accepted accounting principles. The Equipment Replacement Fund, which is an internal service fund, is not required to have a budget. The council approves all asset .acquisitions from this fund by resolution. 44¸ Annual budgets must be submitted to the City Council by the City Manager during or prior to the sixth week' preceding the first day of each fiscal year. The City Council must adopt an annual budget and set the tax rates not later than the tenth day of June for the following year. Budgetary Control (the level at which expenditures may not exceed budget) is maintained at the object class level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders which would result in an overrun of object class balances are not released until additional appropriations are made available. Amendmems to appropriations may be made by the city administration by transfers within a fund in amounts less than $2,500. Other amendments, including supplemental appropriations, may be made by the City Council. The City Council authorized supplemental appropriations during the year in capital projects funds and the general fund. General fund supplemental appropriations were $314,678. The majority of this was to appropriate state and federal grants received during the year. Encumbrance accounting is employed in governmental fUnds. Encumbrances (e.g., purchase orders, contracts) outstanding at year' end are reported as reservations of fund balances and do not constitute expenditures or liabilities. These commitments will be reappropriated and honored during the subsequent year. III. DETAILED NOTES ON ALL FUNDS A. Deposits and investments The City maintains a central treasury that is available for use bY all funds. Each fund type's portion of the central treasury, is displayed on the combined balance sheet as "Equity in Central Treasury". At year-end, all of the City's bank deposits were either insured or collateralized with securities held by the City's agent in the City's name. ... . The City's investment policy authorizes the City to invest in: (a) obligations of the United States or an agency or instrumentality of the United States; (b) certificateS of deposit with banks and savings and loan associations; (e) repurchase agreements; (d) money market mutual funds consisting primarily of obligations of the United States or an agency or instrumentality of the United States, or repurchase agreements eollateralized .With such obligations; and (e) the Alaska Municipal League Investment Pool (AMLIP). Generally, investment maturities cannot exceed five years, from the date of purchase. Repurchase agreements must be collateralized with United States government obligations. Certificates of deposit must be insured or collateralized with obligations of the United States or its agencies or instrumentalities. Collateral must be held by a third party trustee. The City complied with its investment · policy throughout the year. The AMLIP is an external investment pool which is not SEC registered. Alaska Statute 37.23 establishes regUlatory oversight of the pool. The law sets forth numerous requirements regarding authorized inVestments and reporting. On a mOnthly basis the investments in the pool are reviewed for fair value by an independent pricing service. The values of investments in the AML pool are approximately equal to fair value. The fair value of the City's investments at year-end are shown below. GASB Statement 3 establishes categories as an indication of the level of custodial risk involved in the investments. The A.M.L. Pool is uncategorized. All of the City's remaining investments are in the category of least risk and include investments that are insured or registered in the City's name, or securities that are held by the City or its agent in the City's name. All of the United States treasury bills, treasury notes, and United States agency securities are held in a custodial account in the Well's Fargo Trust Department, and are recorded in its internal records in the City's name in accordance with a safekeeping agreement. Well's Fargo is not a counter party to security transaCtions. 45 In compliance with current banking contracts, the City maintains a $450,000 compensating balance in the form of a non-interest bearing certificate of deposit, as well as a $20,000 interest-bearing certificate of deposit. The City also maintains an interest beating checking account, which had a bank balance of $462,523 and a carrying value of $105,449 at year-end. These deposits are insured for the first $100,000 and the balance is collateralized by securities held by a third party custodian in the City's name. As of June 30, 2005, the city had the following investments and maturities. Investment Fair Value Less than 1 year 1 to 2 years 2 to 5 years U.S. Agencies $31,870,267 $8,438,055 $15,350,022 $8,082,190 Mortgage Pool 5,266 5,266 - - AMLIP 609,775 609,775 - - Total $32,485_.308 $9.053.09~ $15.350.02 $8,082:190 Interest Rate Risk. The fair values of the city's fixed-maturity investments fluctuate in response to changes in market interest rates. Increases in prevailing interest rates generally translate into decreases in fair values of those instruments' Fair values of interest rate sensitive instruments may be affected by the creditworthiness of the issuer, prepayment options, relative values of alternative investments, the liquidity of the instrument, and other general market conditions. The city manages interest rate risk by requiring specific percentages of the portfolio to be invested within certain time periods and policy limits the longest maturity to five years. The policy requires 20% of the portfolio to be invested for less than one year and no more than 30% of the portfolio can be invested longer than two years. The average maturity of securities in the AMLIP pool was 49 days. Prepayment Risk. The City has invested in a pool of mortgages issued.by the Federal Home Loan Mortgage Corporation. This security is based on cash flows from payments on the underlying mortgages. Therefore, it is sensitive to prepayments by mortgagees, which may result from a decline in interest rates. The particular pool is seasoned so prepayment risk is considered minimal. Prepayments.are helpful in meeting the City's cash flow needs. Option Risk. Option risk is the risk that an investment's counterparty may exercise a fight embedded in the investmentman embedded option. The city invests in securities issued by U.S. Government Agencies that contain call options. About $22.9 million or 72% of the agency securities contain call options. The exerciSe of the call option by the counterparty occurs during times of declining interest rotes; therefore the city is exposed to the risk of having to reinvest at a lower interest rate. In the table above, securities are placed in the time period according to the final maturity regardless of call option dates. If call options were exercised at the next possible call date, ali of the callable securities would mature in less than one year, except $1 million which would have a maturity of less than two years. The agency securities maturity sChedule restated to show maturities as of the earliest call dates is as follows: Less than 1 1 to 2 2 to 5 Investment Fair Value year years years U.S. Agencies $31,870,267 $26,813,707 $2,947,500 $2,109,060 Concentration Risk. The City investment policy places no limit on the amount that can be invested in any one issuer. More than 5% of the total portfolio is invested in securities issued by the Federal Home Loan Bank- 49%, Federal National Mortgage Association-31%, and Federal Home Loan Mortgage Corporation- 18%. All of the U.S. Agency securities in the portfolio at year-end are rated Aaa by Moody's Investors Service and AAA by Standard and Poor's. B. Receivables Receivables at June 30, 2005, for the City's individual major funds, the nonmajor and other governmental funds in the aggregate, and the proprietary funds are as follows: Water & Airport Land Airport Land General Sew er System Sales Intergovernmental Customers and other Special assessments Land contracts Accrued interest Total receivables Less allowance for uncollectibles Net receivables $ Intergovernmental Notes Customers and other Total receivables 1,031,637 $ - $ -$ - 219,932 - 14,021 260,312 72,114 174,161 16,090 - 356,274 21,129 - - 48,812 .... 208.376 - - - 1,937,145 195,290 30,111 260,312 (4.201) (8.198) - - 1.932.944 $ 187.092 $ 30.111 $ 260,312 Airport Improvement Nonmajor and Capital Project Other Funds Proprietary. $ 308,813 $ 38,521 $ - 88,806 - 22.347 $ 308,813. $ 149:674 $ 13,13,6. 13.136 · , 4'7 .. C. Capital Assets Capital asset activity for the year ended June 30, 2005 was as follows: Governmental Activities: Capital assets, not being depreciated: Land Construction in progress Total capital assets, not being depreereeiated Beginning Ending Balance Increases Decreases Balance 6,230,307 $ - $ (203,065) $ 6,027,242 10~088,491 2,598,436 (3,231,544) 9,455,383 16,318,798 2,598,436 (3,434,609) 15,482,625 Capital assets, being depreciated: Buildings Improvements other than buildings Machinery and Equipment Infrastructure Total capital assets being deprecreciated 34,408,354 2,894,147 - 37,302,501 22,096,699 58,584 - 22,155,283 12,309,748 705,300 - 13,015,048 55,799,801 - - 55..,799,801 ...!24,614,602 .3.,65.8,031 - 128,272,633 Less accumulaed depreciation for: Buildings Improvements other than buildings Machinery and equipment Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net (8,236,705) (576,762) - (8,813,467) (8,824,750) (511,991) - (9,336,741 ) (5,280,813) (555,660) - (5,836,473) (17,027,108) (837~775) - (17,864,883) (39,369,376) (2.482.188) - (41,851,564). . 85,245,226 1,175,843 - 86.,421,069 Governmental activities, capital assets, net $101.564.024 $3.774.279 $(3,434:609) 5;101,903,694 Internal service funds serve the governmental funds; therefore, their capital assets are included as part of the above totals for governmental activities. 48 Business-type Activities: Capital assets, not being depreciated: Land Capital assets, being depreciated: Buildings Equipment Improvements other than buildings Total capital assets being deprecreciated Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Total accumulated depreciation Total capital assets, being depreciated, net Business-type activities, capital assets, net Ending Balance Increases 280.543 $ - Decreases 8,340,813 - - 215,504 - - 683,376 17,553 - 9,239,693 17.553 (3,286,774) (210,829) (677,376) (272) (159.721) (6.528) (4,123.871) (217.629) 5,11.5,822 (200.076) $ 5:396..365 $ (200,076) Depreciation expense charged to each governmental function is as follows: General government $ 54,406 Public safety 132,290 Public works 632,713 Parks, recreation, and cultural 192,099 Water and sewer services 641,258 Airport 744,907 Social welfare services 31,694 $ 2,429,367 Ending Balance ,,280.543 8,340,813 215,504 700,929 9.257.246 (3,497,603) (677,648) (166.24~ (4.341.500_)_ 4.915.746 $ 5.196.289 D. Defined Benefit Pension Plan Description of Plan The City participates in the Public Employees' Retirement System (PERS), an agent multiple employer plan which covers eligible State and local government employees. The plan was established and is administered by the State of Alaska to provide pension, post employment healthcare, death, and disability benefits. Benefit and contribution provisions are established by State law and may be amended only by the State Legislature. 49 The plan is included in a comprehensive annual f'mancial report that includes financial statements and other required supplemental information. The report is available at the following address: Department of Administration Division of Retirement and Benefits P.O. Box 110203 Juneau, Alaska 99811-0203 Funding Policy Employees are required to contribute 6.75% (4.2% for pension and 2.55% for healthcare), of their annual covered salary. Police and Firefighters pay 7.5%. Under the plan, the funding policy provides for periodic employer contributions at actuarially determined rates that, expressed as a percentage of annual covered payroll, are sufficient to accumulate sufficient assets to pay both pension and post employment healthcare benefits when due, adjusted for annual increase limitations not to exceed five percentage points. Effective July 1, 2004, the increase limitation rules are in effect, creating a significant difference between the actuarially required rate and the adjusted actual contribution rate. The City's current contribution rate is as follows: Actual Adjusted Actuarial Required Required Rate Rate Pension 5.39% 14.06% Postemployment healthcare 3.28% 8.54% Total contribution rate 8.67% 22.60% Under the plan, employer contribution rates are level percentages of payroll and are determined using the projected unit credit actuarial funding method. The plan uses the level dollar method to amortize the unfunded liability over an open, rolling twenty-five year period. Funding surpluses are amortized over twenty-five years. The required contribution was determined as part of the June-30, 2002 actuarial valuation. The significant actuarial assumptions used in the valuation of the plan follow: o . , e Investment return of 8.25% per annum, compounded annually, net of expenses; Projected salary increases of 5.5% for the first five years of employment and 4% per year thereafter, police and fire fighters 6% for the first five years and 4.5% thereafter; Health cost inflation of 12.0% for 2003 through 2005, trending downward 0.5% per year to 7.0% in FY15, 6.0% in FY16, and 5.0% thereafter; TOtal inflation, as measured by the Consumer Price Index for urban and clerical workers for Anchorage, is assumed to increase 3.5% annually; and Asset valuation - recognizes 20% of the investment gain or loss in each of the current and preceding four years. Assets are valued at market value and are accounted for on an accrued basis. Valuation assets cannot be outside the range of 80% to 120% of market' value of assets. Annual Pension and Postemployrnent Healthcare Cost For the year ended June 30, 2005, the City's annual pension and other post-employment benefit (OPEB) cost was $1,092,607, consisting solely of the acmarially required contribution (no beginning net pension obligation, and no interest component). Three-year trend information for PERS follows: Year Annual Percentage Net Ending Pension Actual of APC Pension June 30.~ Cost {APC) Contributions Contributed Obligation* Pension 2003 $ 76,605 76,605 100% - 2004 104,402 104,402 100% - 2005 679,710 260,756 38% 418,954 Postemployment healthcare Year Annual Percentage Net Ending OPEB Actual of OPEB OPEB June 30, Cost Contributions Contributed Obligation* 2003 $ 51,200 51,200 100% - 2004 69,778 69,778 100% - 2005 412,896 158,399 38% 254,497 *Generally accepted accounting principles (GAAP) currently dictate the recognition of a net pension obligation when actual contributions do not equal the actuarially required contribution for pensions. Current GAAP do not mandate the recognition of a liability for related postemployment benefits. As such, the City has recorded a net pension obligation in the amount of $418,954. No liability has been recorded for the $254,497 OPEB obligation. A schedule of funding progress for the three most recent actuarial valuations follows (in thousands): Unfunded Actuarial Actuarial Actuarial (Assets in Valuation Value of Accrued Excess of) Date Assets Liabili _ty Liability. ~ Funded Ratio Unfunded (Assets in Excess o f) Covered Liability as Percentage Payro!! Of Covered Payroll June 30, 2001 Pension $ 22,213 $ 20,868 $ (1,345) Post Employment Healthcare 9,405 8,835 (570) 106% $ 4,392 (31%) 106% 4,392 (13%) June 30, 2002 Pension 18,255 22,882 4,627 80% 4,926 94% Post Employment Healthcare 11,092 13,903 2,811 80% 4,926 57% June 30, 2003 Pension 17,336 23,182 5,846 75% 4,730 124% Post Employment Healthcare 11,587 15,494 3,907 75% 4,730 83% 51 E. Changes in Long-Term Debt The following is a summary of general long-term obligation transactions of the City for the year ended June 30, 2005 Bonds payable, July 1, 2004 Bonds retired General long-term debt, June 30, 2005 150,000 (150,000) The City has no outstanding .general obligation debt. Other noncurrent liabilities include a loss contingency of $1,400,000 for contaminated soils, compensated absences of $552,428 and net pension obligation of $418,954. F. Interfund receivables, payables and transfers The General Fund made short-term loans to the Miscellaneous Capital Projects Fund of $25,584 and the Council on Aging fund of $8,251 to cover cash needs of these funds while awaiting payments on grants. Transfers between funds were as follows: Transfers Out: Tmnfers in: Major Funds Geneml Fund $ 75,601 Airport Land System 227,670 Airport Land Sales 18,811 Airport Imp. Capital Project 290 Nonmajor Governmental Funds 34,458 Total $ 356,830 Major Nonmajor Governmental Governmental General Fund Funds Funds Total $ - $ 33,475 33:475 52,038 $ 23,563 $ 75,601 227,670 - 227,670 18,811 - 18,811 290 - 290 - 983 . 34,458 $ 298,809 $ 24:546 $ 356,830 G. Risk management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; environmental contamination; and natural disasters. Risk financing activities are accounted for in various operating funds, with unallocated or Citywide activities being accounted for in the general fund. The City purchases commercial insurance to transfer a substantial portion of the above risks of loss. Property insurance is purchased to provide coverage for buildings and heavy equipment, generally with deductibles of $25,000. Various liability insurance policies are purchased to provide protection against torts, injuries, and errors and omissions. Most liability policies are written with low or zero deductibles. In addition to the deductibles on insurance policies, the City retains risk of loss related to certain potential liabilities and property damages. These include environmental liabilities, employment discrimination, and vehicle property losses. Settled claims have not exceeded commercial coverage in any of the past three fiscal years. The City analyzes potential losses on a case-by-case basis to determine amounts that should be accrued or disclosed in the financial statements. At June 30, 2004, the City has recorded a liability in recognition of certain losses related to contaminated soil remediation. The City has retained the risk of loss for such exposures. 52 There has been no change in the balance of claims liabilities during the past year as indicated by the following table. Beginning of End of The Fiscal Year Current Year Claim Fiscal Year Liability Claims Payments Liability FY2003 $1,400,000 - - $1,400,000 FY2004 $1,400,000 - - $1,400,000 FY2005 $1,400,000 - - $1,400,000 H. Contingencies The City is involved in several lawsuits arising in the ordinary course of operations, including actions commenced and claims asserted against it. Management of the City does not believe that the ultimate resolution of these lawsuits and claims will have any material effect upon its financial position or results of operations, and therefore, no provision has been made in the accompanying financial statements. 53 This page intentionally left blank .54 OTHER GOVERNMENTAL FUNDS Other Government Funds This section includes the Statement of Revenues, Expenditures, and Changes in Fund Balance, Budget and Actual, for the Airport Land Sales Permanent Fund, which is a major fund, as well as the Nonmajor Governmental Funds Combining Balance Sheet and Combining Statement of Revenues, Expenditures, and Changes in Fund Balance. It also includes a Statement of Revenues, Expenditures, and Changes in Fund Balance, Budget and ACtual for each nonmajor governmental fund that adopted an annual budget. Special Revenue Funds Special Revenue funds are used for specific revenues that are legally restricted to expenditures for a specific purpose. Kenai Borough Senior Citizens Fund - This fund accounts for revenues and expenditures related to the Senior Citizens Program. The primary source of revenue is a grant from the Kenai Peninsula Borough. Council On Aging Fund - This fund accounts for the activities of the Senior Citizen Program which is substantially financed by a grant from the State of Alaska (from federally financed sources). Activities include social services and a nutrition program. Debt Service Funds Debt Service Funds are established to account for the accumulation and disbursement of money needed to comply with the interest and principal redemption requirements for the general obligation bonds issued. The 1984/1986/1'993 Special ASsessment Debt Service Fund is intended to' be financed by special assessments; however, due to delinquencies the General Fund has had to cover the debt service. 1984186193 Special Assessment Debt Service - to accumulate funds for payment of an adVance refunding bond issued in 1993 to defease prior special assessment bonds. Date of' Interest Maturity . Annual Outstanding Issue Issued' Rate Dates Installments JUne 30, 2005 1011193 $1,430,000 2.75% tO 5.35% 1994-2004 $20,000 to $195,000 $0 55 Capital Project Funds Capital Projects Funds am established to account for the resources expended to acquire assets of a relatively permanent nature. These funds evolved from the need for special accounting for bond proceeds, grants and contributions for the acquisition of capital assets. Capital Projects Funds provide a formal mechanism which enables administrators to ensure that revenues dedicated to a certain purpose are used only for that purpose and further enables them to report to creditors and other grantors of capital projects fund revenue, that their requirements regarding the use of the revenue were fully satisfied. Parks And Recreation- to account for capital improvements to City parks and recreation facilities. Financing is primarily from general fund transfers and State grants. Streets - to account for capital improvements to City streets. Financing is primarily from general fund transfers, grants from State and Federal sources and bonds. Water And Sewer - to account for capital improvements to City water and sewer infrastructure and the sewer treatment facilities. Financing is from user fees via transfers from the Water and Sewer Special Revenue Fund, State and Federal grants and bonds. Miscellaneous - to account for capital projects which do not fit in one of the foregoing categories. These projects are generally smaller projects, which may be.funded through transfers from other funds or by State or Federal grants. Permanent Funds Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used. General Government Land Sales - to account for the proceeds of general government land sales, including principal and interest on long-term notes. By City Charter, the principal cannot be spent. Interest revenue is transferred to the General Fund, Airport Land Sales - to account for the proceeds of airport land sales, including principal and interest on long-term notes. By ordinance, the principal cannot be spent. Interest revenue is recorded in the Airport Land System Special Revenue Fund. Note that this is a major fund and is therefore not included in the NonMajor Governmental Funds Combining Statements. Revenues: Interest revenue Land sales Total Revenues CITY OF KENAI, ALASKA AIRPORT LAND SALES PERMANENT FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30', 2005 Original Final Budaet Bud_~et Actual Variance With Final Budget Positive (Nea ,ative) 25,000 $ ,. 25,000 25,000 ,, 25,000 18,812 32,927 51,739 $ (6,188) 32,927 26,739 Excess of revenues over expenditures 25,000 25,000 51,739 26,739 Other financing sources (Uses)' Transfers out Net change in fund balance .. Fund balances, July 1 Fund balances, June 30 (25,000) $ - $ (25,000) 6,189 32,928 $ 32,928 , 11,439,122 11,472,050 See Accompanying Notes to Financial Statements 57 City of Kenai, Alaska Combining Balance Sheet Nonmajor Governmental Funds June 30, 2005 ASSETS Equity in central treasury Intergovernmental Receivable Notes receivable Other accoUnts receivable: net Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Customer deposits Due to General Fund Sales tax Deferred revenue Total liabilities Fund balances: Reserve for investment Unreserved: Designated for subsequent year's expenditures Designated for compensated absences Undesignated Total fund balances Total liabilities and fund balances Special Revenue Kenai Borough Senior Citizens $ 164,878 12,442 $ 177,320 $ 1,295 9,340 . 125 . 10,760 4,966 13,157 148,437 , 166,560 $ 177,320 Council on Aging 8,251 $ 8,251 Capital Project Parks and Recreation $ 48,818 650 . 1,654 $ 51,122 8,251 - .. - 49,574 8,251 $ 8,251 49,574 1,548 1,548 ~$ 51,122 City of Kenai, Alaska Combining Balance Sheet Nonmajor Governmental Funds June 30, 2005 continued Capital Pro~ect ASSETS Streets Water and Sewer Equity in central treasury Intergovernmental Receivable Notes receivable Other accounts receivable: net Total assets $ 49,753 49,753 $ 1,055,372 12,287 - $ 1,067,659 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Customer deposits Due to General Fund Sales tax Deferred revenue Total liabilities Fund balances: Reserve for investment Unreserved: Designated for subsequent year's expenditures Designated for compensated absences Undesignated Total fund balances Total liabilities and fund balances 49,753 49,753 $ 49,75~. $ 1,440 . .. .. - 1,440 .. 1,066,219 . - 1,066,219 $ 1,067,659. Miscellaneous 25,584 . 25,584 ! 25,584 ,., 25,584 $ 25,584. 59 City of Kenai, Alaska Combining Balance Sheet Nonmajor Governmental Funds June 30, 2005 continued Debt Service ASSETS 1984/198611993 Special Assessment Equity in central treasury Intergovernmental Receivable Notes receivable Other accounts receivable: net Total assets Permanent LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Customer deposits Due to General Fund Sales tax Deferred revenue Total liabilities Fund balances: Reserve for investment Unreserved: Designated for subsequent year's expenditures Designated for compensated absences Undesignated Total fund balances Total liabilities and fund balances General Government Land Sales 2,273,801 ,. 88,806 ,. $ 2,362,607 88,806 88,806 2,273,801 2,273,801 $ 2,362,607 Total Nonmajor Governmental Funds 3,592,622 38,521 88,806 22,347 $ 3,742,296 2,735 9,340 33,835 125 138,380 184,415 2,273,801 1,122,486 13,157 148,437 3,557,881 3,742,296 60 City of Kenai, Alaska Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended June 30, 2005 Revenues: InterGovernmental Revenues Charges for Services Interest Land Sales Miscellaneous Revenues Total Revenues SPecial Revenue Kenai BoroUgh Council Senior on Citizens Aging 188,363 $ 109,102 50,591 - . . - 59,660 238,954 168,762 Capital Pro~ect Parks and Recreation 28,536 . 1,654 30,190 Expenditures: Water and Sewer Services Airport Social Welfare Services Debt Service Parks and Recreation Streets General Government Total Expenditures Excess of Revenues Over (Under) Expenditures Other financing sources (uses)' Transfers in Transfers out Total other financing sources (uses) Net changes in fund balance . . 241,025 169,745 _ . . . 241,025 169,745 (2,071) (983) 23,563 983 (983) - 22,580 ' 983 20,509 58,790 - .. 58,790 (28,600) (28,600) Fund Balances- July 1 Fund Balances- June 30 146,051., $ 166,560 $ - ,, 30,148 1,548 61 City of Kenai, Alaska Combining Statementof Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the Year Ended June 30, 2005 - continued Revenues: Intergovernmental Revenues Charges for Services Interest Land Sales Miscellaneous-Revenues Total Revenues Capital Proiect Streets Water and Sewer $ 23,418 .. .. ,. .. 23,418 $ 132,308 . - . .. 132,308 Expenditures: Water and Sewer Services Airport Social Welfare Services Debt Service Parks and Recreation Streets General Government Total Expenditures 33,454 . 33,454 134,921 .. - . . .. 134,921 Miscellaneous $ 169,249 . 169,249 169,461 169,461 Excess of Revenues Over (Under) Expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) (10,036) (2,613) (212) Net changes in fund balance (10,036) (2,613) (212) Fund Balances- July 1 59,789 1,068,832 212 Fund Balances - June 30 . $ 49,753 $ 1,066,219 $ , - Revenues: Intergovernmental Revenues Charges for Services Interest Land Sales Miscellaneous Revenues Total Revenues City of Kenai, Alaska Combining Statement of Revenues, Expenditures And Changes in Fund Balance Nonmajor Governmental Funds For the year Ended June 30, 2005 - continued Debt Service Permanent 19841198611993 SpeCial A~sessment General Government Land Sales 12,332 12,332 8,994 129,456 138,450.. Expenditures: Water and Sewer Services Airport Social Welfare Services Debt Service Parks and Recreation Streets General Government Total Expenditures 154'012 . . . 154,012 Excess of Revenues Over (Under) Expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net changes in fund balance (141,680) (19,264) (19,264) (160,944) 138,450 (14,21!) (14,211) 124,239 Total Nonmajor Governmental Funds 650,976 50,591 8,994 129,456 73,646 913'663 134,921 . 41'0,770 154,012 58,790 33,454 169,461 961,408 (47,745) 24,546 (34,458) _ (9,912) (57,657) Fund Balances - July 1 Fund Balances - June 30 160,944 2,149,562 $. 2,273,801.~ 3,615,538 $ 3:557,88,1 CITY OF KENAI, ALASKA KENAI BOROUGH SENIOR CITIZENS SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 Final Budget Actual Variance With Final Budget Positive (Negative) Reven u es · Intergovernmental revenue- Choice Waiver Kenai Peninsula Borough grants $ 100,110 $ 93,043 , 95,320 95,320 $ 195,430 $ 188,363 $ (7,067) $. (7,067) Miscellaneous revenues: United Way grants 16,756 16,756 - Rents and leases 21,000 18,950 (2,050) Donations 8,000 13,467 5,467 Other - 1,418 1,418 Total miscellaneous revenues 45,756 50,591 4,835 Total revenues ExPenditures - soCial welfare services: Personal services Supplies Other services and charges Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses)' Transfers in Transfers out Total other financing sources (uses) Net changes in fund balance Fund balance, July 1 241,186 238,954 , 166,521 166,069 36,905 36,787 40,333 38,169 (2,232) 452 118 2,164 243,759 24i,025 2,734 (2,573) (2,071) 5O2 24,000 23,563 (437) (10,000) (983) 9,017 14,000 22,580 8,580 Fund balance, June 30 $, 11,427 20,509 146,051 $ 166,560 9,082 CITY OF KENAI, ALASKA COUNCIL ON AGING SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES,. AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 Revenues: Intergovernmental revenues: State grants Federal grants Total intergovernmental revenues Miscellaneous revenues: In-kind support Donations Total miscellaneous revenues Total revenues Expenditures - social welfare services: Social serVices: Personal services Other services and charges Total social services Congregate meals: Personal services Supplies Other services and charges Total congregate meals Home delivered meals: Personal serVices Supplies Total home delivered meals Transportation - Personal serVices Supplies Total Transportation Total expenditures Excess of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net changes in fund balance Fund balance, July 1 Fund balance, June 30 Final Budqet Actual $ 97,969 $ 97,969 12,000 11,133 109,969 109,102 . Variance With Final Budget Positive (Ne;ative) (867) (867) 10,850 10,850 - 50,000 48,810 (1,190) 60,850 . .59,660 (1,190) 170,819 168,762 (2,057) 44,455 44,386 5,425 5,425 49,880 49,811. 26,944 26,612 25,000 24,826 5,425 5,425 57,369 56,863 28,171 27,957 25,000 24,826.. 53,171 52,783 4,754 41'643 5,645 5,645 10,399 10,288 170,819 169,745 · 19,602 19,602 69 69 332 174 . 506 19,602, 214 174 388 111 1'11 1,074 - (983) (983) 983 . 983 .. (18,619) , (18,619) $ (19,602) 65 CITY OF KENAI, ALASKA 19841198611993 SPECIAL'ASSESSMENT DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL YEAR ENDED JUNE 30, 2005 Revenues - Miscellaneous: Special assessments Total revenues Expenditures - debt service: Redemption of serial bonds Interest on bonds Total expenditures Excess of revenues over (under) expenditures Other financing sources (Uses): Tranfers out Final Budqet $ 1,5,1,3 Actual $ 12,332 Variance With Final Budget Positive (Ne_~ative) $ 10,819 1,513 12,332 10,819 ~5o,ooo ~5o,ooo 7,038 4,012 157,038 154,012 (155,525). (141,680) (19,264) 3,026 3,026 13,845' (19,264) Net change in fund balance Fund balance (deficit) - July I Fund balance - June 30 $ (155,525~ (160,944) . .. 160:944 $ (5,419~} CITY OF KENAI, ALASKA GENERAL GOVERNMENT LAND SALES PERMANENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2005 Final Budaet Actual Variance With Final Budget Positive (Neqative) Revenues: Interest revenue Land sales Total Revenues Excess of revenues over expenditures $ 25,000 $ 8,994 - 129,456 $ (16,006) 129,456 25,000 138,450 113,450 25,000 138,450 113,450 Other financing sources (Uses): Tranfers out Net change in fund balance Fund balances, July 1 Fund balances, June 30 (25,000) (14,211) 10,789 $ - 124,239 . 2,149,562 $ 2,273,801 , $ 124,239 This page intentionally left blank STATISTICAL SECTION City of Kenai Statistical Section This part of the City of Kenai's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Table I Net Assets by Component Table II Changes in Net Assets Table III Governmental Activities Tax Revenues by Source Table IV Fund Balances of Governmental Funds Table V Changes in Fund Balances of Governmental Funds Table VI General Governmental Tax Revenues by Source Revenue Capacity These schedules contain information to help the reader assess the City's property tax. Table VII Assessed Value and Estimated Actual Value of Taxable Property Table VIII Property Tax Rates Table IX Principal Property Taxpayers Table X Property Tax Levies and Collections Pa_~e 7O 71 73 74 75 76 77 78 79 8O Debt Capacity These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future. Table X! Ratios of Outstanding Debt by Type Table XII RatiOs of General Bonded Debt Outstanding Table XIII Legal Debt Margin Information Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. , Table XIV Demographic and Economic Statistics Table XV Principal Employers 81 81 82 83 84 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the serVices the government provides and the activities it performs. Table XVI Full-time Equivalent City Government Employees by Function Table XVII Operating Indicators by Function Table XVIII Capital Asset Statistics by Function Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. . · (~9 85 86 87 City of Kenai Net Assets by Component Last Four Fiscal Years (accrual basis of accounting) (amounts expressed in thousands) TABLE I Governmental Activities: Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activites net amounts Business-type Activities: Invested in capital assets, net of related debt Restricted Unrestricted Total business-type activites net assets Primary government Invested in capital assets, net of related debt Restricted Unrestricted Total primary government net assets 2003 $102,448 13,812 16,857 $133,.117 $5,587 . 2,646 $8,233 $108,035 13,812 19,503 $141,350 2004 , $101,414 13,887 17,060 $132,361 $5,396 . 2,585 $7,981 $106,810 13,887 19,645 $1401342 2005 $101,904 14,095 16,267 $132,266 $5,196 . 2,439 $7,635 $107,100 14,095 18,707 $139,902 70' City of Kenai Changes in Net Assets. Last Three Fiscal Years (accrual basis of accounting) TABLE II Expenses Governmental activities: General Government Public Safety Public Works Parks, recreation, and cultural Water and Sewer Services Airport Interest on long-term debt Social welfare services Total governmental activities expenses Business-type activities- Airport Terminal Senior Housing Total Business-type activities Total primary government expenses Program Revenues Governmental activities: Charges for services: General Government Public Safety Public Works Parks, recreation, and cultural Water and Sewer Services Airport Interest on long-term debt Social welfare services Operating grants and contribution Capital grants and contributions Total governmental activiites program revenues: Business-type activiites- Airport Terminal Senior Housing Total business-type activiites program revenues: Total primary government program revenues Net (expenses)/revenue Government activities Business-type activities Total primary government.net expense 2003 $1,113,592 3,192,795 2,108,212 1,447,484 1,945,498 2,084,722 189,702 452.778 12.534,783 503,431 297,664 801.095 $13,335,878 ,, 182,699 265,210 418,776 208,771 1,294,836 431,159 80,028 191,828 792,646 794.157 4,660,110 285,018 240,970 525,988 $5,186,098 -7,874,673 -275,107 -$8,149,780 ,, 2OO4 $962,874 3,116,020 1,929,409 1,247,500 1,774,176 2,195,047 11,962 416.885 11,653.873 453,410 327,863 781,273 $12,435,146 54,988 345,632 242,056 120,408 1,433,681 418,927 187,614 802,467 1,010,956 4,616,729 , ,, 275,913 251,881 527,794 $5,144,523 -7,037,144 -222,759 -$7,259,903 2005 , $1,147,616 3,991,072 2,290,114 1,396,794 1,840,935 2,403,729 4,012 459,642 13,533,913 477,593 480,219 957,812 $14,491,725 153,378 338,981 312,140 193,296 1,621 ,O38 5O4.503 110,251 794.847 2,544,629 6,573,063 , 294.251 255,396 549,647 $7,122,710 -6,960,850 -408,165 -$7,369,015 73. Changes in Net Assets Last Three Fiscal Years (accrual basis of accounting) continued General Revenues and Other Changes in Net Assets Governmental activivities: Taxes Property taxes Sales taxes Sales of capital assets Investment earnings Tranfers Total governmental activities Business-type activities: Investment earnings Tranfers Total busines-type activities Total primary government Changes in Net Assets Governmental activiites Busniess-type activities Total primary government 2003 1,424,644 3,953,561 988,431 69,946 6,436,582 84,766 -69,946 14,820 6,451,402 -1,438,091 -260,287 -~1,698,378 2004 2,026,789 3,790,644 74,700 334,166 54,801 6,281,100 25,899 -54,801 -28,902 6,252,198 -756,044 -251,661 -$1,007,705 2005 .. 1,9O0,788 4,090,468 84,954 789,722 6,865,932 62,765 . 62,765 6,928,697 -94,918 -345,400 -$440,318 72 City of Kenai Governmental Activities Tax Revenues by Source Last Three Fiscal Years (accural basis of accounting) Table III Fiscal Year Property Tax Sales Tax 2003" ' $1,424,644' - $3',953,561 2004 2,026,789 3,790,644 2005 1,900,788 4,090,468 Total $5,378,205 5,817,433 5,991,256 73 0 0'~ i'~ 0 . . . . . . w- 0 0 cO0~-~ . . . co o ~ 0 City of Kenai General Governmental Tax Revenues by Source Last Ten Fiscal Years (modified accrual basis of accounting) TABLE VI Fiscal Year Ended June 30 1996 1997 1998 1'999 2OOO 2001 2002 2OO3 2004 2005 Total Property Taxes TaXes 4,625,398 4,523,546 4,644,725 4,765,818 4,988,755 5,128,318 5,502,232 5,363,764 5,838,820 6,002,844 1,167,151 1,162,832 1,185,049 1,232,748 1,288,012 1,319,079 1,322,042 1,410,203 2,048,176 1,912,376 Sales Tax 3,458,247 3,360,714 3,459,676 3,533,O7O 3,700,743 3,809,239 4,180,190 3,953,561 3,790,644 4,090,468 7'(5 01-- I-- I ¢DIO 0 CO ,ct' (D ~ COOl 01~ O~C~ 0~0~ 0000 O0 ?7 City of Kenai Property Tax Rates Direct and Overlapping Governments (1) Last Ten Fiscal Years Table VIII City, of Kena, i Overlapping Rates Kenai Peninsuala Borough ..... Fiscal Year Operating Operating Special District Total 1996 3.50 8.59 0.50 12.59 1997 3.50 8.30 0.50 12.30 1998 3.50 8.30 0.40 12.20 1999 3.50 8.00 0.40 ._ 1.1.90 2000 3.50 8.00 0.40 11.90 2001 3.50 7.50 0.40 11.40 2002 3.50 7.00 0.40 10.90 2003 3.50 6.50 0.40 10.40 2004 5.00 6.50 0.50 12.00 2005 4.50 6.50 1.00 12.00 (1) Overlapping rates are those of the Kenai Peninsula Borough. The mill rates shown consist of two components: the mill rate for Borough operations and for the special districts of Central Peninsula Hospital and the College. 78 o o~ P~. ~ o ~ ~ ~ o ~ -- ~ 0q ~- ~- ~- ~- o o o o o 79 Kenai Peninsual Borough Property Tax Levies and Collections Last Ten Fiscal Years Table X Fiscal Year Ended June 30 1996 1997 1998 1999 200'0 2001 2002 2003 2004 2005 Collected with the Fiscal Year of the Levy Total Tax Levy for Fiscal Percentage Year Amount of Levy -~ 1,087,4~6 1,055,294 '97.04% 31,627 !,113,126 1,091,810 98.0'9% 21,316 1,143,986 1,108,289 96.88% 35,688 1,194,290 1,141,018 95.54% 52,951 1,219,295 1,179,162 96.71% 39,431 1,227,127 1,197,700 97.60% 28,856 1,247,375 1,215,353 97.43% 31,961 1,326,864 1,277,940 96.31% 48,757 1,931,200 1,905,232 98.66% 25,603 1,792,988 1,771,395 98.80% - Collections in Subsequent Years Total Collections to Date Amount 1,086,92i 1,113,126 1,143,977 1,193,969 1,218,593 1,226,556 1,247,314 1,326,697 1,930,835 1,771,395 Percentage of Levy 99.95% 100.00% 100.00% 99.97% 99.94% 99.95% 100.00% 99.99% 99.98% 98.80% .80 City of Kenai Ratios of Outstanding Debt by Type Last Ten Fiscal Years TABLE Xl Fiscal Year , , , Governmental Actiivties Estimated Percentage of Percentage of Estimated Actual General Personal Taxable Value of Obligation Bonds Income * Property 1996 '$ 1,712,000 '1.02°~;' 0.46% 1997 1,435,000 0.82% 0.37% 1998 1,155,000 0.66% 0.29% 1999 970,000 0.54% 0.23% 2000 795,000 0.40% 0.19% 2001 625,000 0.31% 0.14% 2002 460,000 0.22% 0.10% 2003 300,000 0.14% 0.06% 2004 150,000 0.07% 0.03% 2005 - 0.00% 0.00% Debt Per Capita 24;4 206 .166 137 113 89 66 42 21 - Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. * Personal income is estimated by using Kenai Peninsula Borough income to calculate per capita income and total income for City of Kenai ** Population data can be found on Table 15 City of Kenai Computation of Direct and Overlapping Debt June 30, 2005 Table Xll Name of Governmental Unit City of Kenai, Alaska Kenai Peninsula Borough Central Peninsula Hospital Total Direct and Overlapping Net Debt Outstanding 25,359,000 46,916,351 $ 72,275,351 Percentage Applicable to this Governmental Unit 100.00% 9.34% 13.44% City of Kenai's Share of Debt 2,367,467 6,305,208 $ 8.672.675 83. 0 0 82 0 t... 0 0 UJ "0 0 ,,~ 0 0 0 0 0 0 O0 0 0 0") '~'- ¢,,0 0 0 0 0 0'~ O~ O~ O~ 0'~ 0'~ ~ 0 .Ooo~ ~~ oooo o O~ o~ ~o O~ o o~ o~ 00 00 o O~ o~ o 0 00~ w- w- 00 O~ o~ O~ O~ o 0 0 0 0 0 O~ 0'~ o~ o~ o o o o o 0 0 ._ '7, 83 City of Kenai Kenai Area Principal Employers Table XV Employer ,,, , Agrium Kenai Peninsula Borough School District State of Alaska - Excludes University Peak Oilfield Services Union Oil of California - (Unocal) Tesoro Alaska Petroleum Company Federal Government City 0f Kenai Central Peninsula Counseling Services Veco Alaska 2003 * EmPloyees , 263 252 25O 216 163 197 153 115 115 95 Rank , , 1 2 3 4 5 6 7 8 9 10 These employers are not necessarily located in the City of Kenai, but are in close proximity to the City and are the employers that have the largest economic impact on the City. * Latest data available 0 0 0 0 ~. 0 0 0 0 00~ O~ w~' 0 ~ 0 00~ 0 0 0 ~00 ~0 ~- ~0 0 0 0 0 I~. 0 00 0 0 ~D ¢~10 · , . 0 0 0 ~0 P~- 0 00 0 0 ~D ¢NI ¢v) ............ 0 00~ · . . 000~ · . . 00~0~ 0~0~ 0 ~ ~ 00CO 0 0~0 · . . 85 0 ~0 0 ~0 O~ O0 00~ . 0 0 0 O0 . 0'~ O~ . 0 ~D . O~ 0 0 o 3 ._s 86 Z uJ 0 0 0 0 o o o o o o~ oco ~- o el0 ~- 0 el0 ~- This page intentionally left blank CITY OF KENAI, ALASKA Federal Single Audit Reports June 30, 2005 MIKUNDA, C OTTRELL & Co;' Certified Public Accountants CITY OF KENAI, ALASKA Federal Single Audit Reports June 30, 2005 Paae Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 3-4 Independent Auditor's Report on Compliance with Requirements Applicable to each Major Program and on Internal Control over ComPliance in Accordance with OMB Circular A-133 5-6 Schedule of Expenditures of Federal Awards 7-8 Schedule of Findings and Questioned Costs Corrective Action Plan 10 Summary Schedule of Prior Year Findings 11 / IKUNDA, COTTRELL & CO. A Professional Corporation CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 215 Fidalgo, Suite 206 · Kenai, Alaska 99611 (907) 283-3484, Fax (907) 283-5842 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial .Statements Performed in Accordance with Government Auditing Standards Honorable Mayor and City Council City of Kenai Kenai, Alaska Ladies and Gentlemen: We have audited the financial statements of the City of Kenai, Alaska as of and for the year ended June 30, 2005, and have issued our report thereon dated October 13, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City of Kenai, Alaska's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the basic financial statements and not to provide an opinion on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses. Compliance and Other Matters As part of obtaining reasonable assurance about whether the citY of Kenai, Alaska's financial statements are free of material misstatement, we performed tests of its compliance with certain .provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. RSM Mc61adrey Network An Independently Owned Member Offices: Anchorage, Kenai & Seward Honorable Mayor and City Council City of Kenai Kenai, Alaska This report is intended solely for the information and use of management and the Kenai City Council, and is not intended to be and should not be used by anyone other than these specified parties. October 13, 2005 M IKUNDA, COTTRELL & CO. A Professional Corporation CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS 215 Fidalgo, Suite 206 · Kenai, Alaska 99611 (907) 283-3484, Fax (907) 283-5842 Independent Auditor's Report on Compliance with Requirements Applicable to each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 Honorable Mayor and City Council City of Kenai Kenai, Alaska Ladies and Gentlemen' Compliance We have audited the compliance of the City of Kenai, Alaska with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2005. The City of Kenai, Alaska's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the City of Kenai, Alaska's management. Our responsibility is to express an opinion on the City of Kenai, Alaska's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City of Kenai, Alaska's compliance with those requirements and perfbrming such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does .not provide a legal determination of the City of Kenai, Alaska's compliance with those requirements. In our opinion, the City of Kenai complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June ~0, '2005. RSM. McGladrey Network An Independently Owned Member Offices: Anchorage, Kenai & Seward Honorable Mayor and City Council City of Kenai Kenai, Alaska Internal Control Over Compliance The management of the City of Kenai, Alaska is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City of Kenai, Alaska's internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB Circular A-133 ~ Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants caused by error or fraud that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Kenai, Alaska as of and for the year ended June 30, 2005, and have issued our report thereon dated October 13, 2005. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the City of Kenai, Alaska's basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relations to the basic financial statements taken as a whole. This report is intended solely for the information and use of management, the Kenai City Council, and federal and state awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. October '13, 2005 CITY OF KENAI, ALASKA Schedule of Expenditures of Federal Awards Year Ended June 30, 2005 Federal Grant Award U.S. Department of Agriculture: NSIP Cash Catalog of Federal Domestic Assistance Grant Number Number 607-04-162 10.570 U.S. Department of Transportation ARFF/SRE Building* Airport Security Improvements* Airport Environmental Assessment* Airport Supplemental Master Plan* Airport Terminal Modifications* Airport Security Improvements II-Gates* 03-02-0142-0332004 Airport Parallel Taxiway* 03-02-0142-0342005 Passed through State of Alaska Department of Public Safety: AK Highway Safety Grant 05-05-08PT AK Highway Safety Grant 05-06-05TR ' AK Highway Safety Grant 05-05-05 AK Highway Safety Grant 04-02-03AL AK Highway Safety Grant 04-03-03OP AK Highway Safety Grant 05-03-03OP Total U.S. Dept. of Transportation 03-02-0412-2701 03-02-0142-2902 03-02-0142-3002 03-02-0142-0322004 03-02-0142-3103 20.106 20.106 20.106 20.106 20.106 20.106 20.106 20.600 20.600 20.600 20.600 20.600 20.600 National Aeronautics and Space Administration: Volunteer Fire Assistance- Thermal Imager 05112004 43.310 U.S. Department of Justice' Homeland Security Grant Bullet Proof Vests Passed lhrough State of Alaska Department o./'Health & Social Services: Boys & Girls Club Grant Total U.S. Department of Justice SHSGP l 103-12 99002943 06-09-05061 16.007 16.607 16.546 U.S. D~partment of Health & Human Services' Council on Aging TITLE III 607-05-113 Council on Aging TITLE III 607-05-11.3 Total U.S. Department of Health & .Human Services 93.044 93.045 Expenditures June 30, 2005 11,133 10,397 271,008 179,772 158,006 591,878 ~76,165 473,087 2,767 142 24,043 ~,551 7,260 1,964 00 040 5,000 140,957 282 51,491 192,730 41,23~ 37,613 78,846 CITY OF KENAI, ALASKA Schedule of Expenditures of Federal Awards, continued Year Ended June 30, 2005 Federal Grant Award U.S. Department of Natural Resources: Section 106 Training Catalog of Federal Domestic Assistance Grant Number Number Expenditures June 30, 2005 U.S. Department of Homeland Security' Homeland Security Grant 30408 15.631 12,650 Federal Emergency Management Agency Assistance to Firefighters 35549 97.004 91,971 83.554 Office of Library Services: Interlibrary Cooperation Grant EMW-2003-FG-61059 Total Federal Expenditures * Federal Major Program ILC-05-747-133 45.310 45,000 5,617 2,542,987 CITY OF KENAI, ALASKA Schedule of Findings and Questioned Costs For the Year Ended June 30, 2005 Summary of audit results: Type of report issued on financial statements Reportable conditions in internal controls Material noncompliance Reportable conditions in internal control over major programs Type of report issued on major program compliance Audit findings as required to be reported by OMB Circular A-133 Major programs: CFDA # Program 20.106 Airport Improvement Program Unqualified None noted None noted None noted Unqualified None noted Dollar threshold used to distinguish between Type A and Type B programs Low-risk auditee $300,000 Yes II. Findings relating to the financial statements which are required to be reported in accordance with Generally Accepted Auditing Standards None noted III. Federal awards findings and questioned costs None noted CITY OF KENAI, ALASKA Corrective Action Plan For the Year Ended June 30, 2005 There are no current year federal single audit findings and no corrective action plan. I0 CITY OF KENAI, ALASKA Summary Schedule of Prior Audit Findings For the Year Ended June 30, 2005 There were no prior year audit findings. I1 AGENDA KENAI CITY COUNCIL- REGULAR MEETING OCTOBER 19, 2005 7:00 P.M. KENAI CITY COUNCIl, CHAMBERS http://www, ci.kenai, ak.u s -. ITEM A: CALL TO ORDER o 2. 3. 4. 5. 6. 7. Pledge of Allegiance Roll Call CERTIFICATION OF ELECTION ADMINISTERING OF OATHS OF OFFICE ELECTION OF VICE MAYOR Agenda Approval Consent Agenda *Ail items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one. motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) o Larry Peek, Architect and James McConnell, Project Coordinator for Senior Connection, Inc. -- Assisted Living Project Update o Rick Baldwin-- KEDS Update , ITEM C: Sharon Vannatta-- Kenai Community Library/Usage of the Library. UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND_ COUNC__ILS ITEM E: ITEM F: REPORTS OF KENAI CONVENTION/h VISITORS BUREAU BOARD AND KENAI CHAMBER OF COMMERCE PUBLIC HEARINGS o Ordinance NO. 2126-2005 -- Increasing Estimated Revenues and Appropriations by $2,043.75 in the General Fund for a Grant From the Rasmuson Foundation Art Acquisition Initiative. 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 , . ITEM G: . ITEM H: ITEM I: . . . . , , . ITEM J: . 2. 3. 4. 5. 6. 7.' Ordinance No. 2127-2005 -- Increasing Estimated Revenues and Appropriations by $15,000 in the General Fund for Shop Repair and Maintenance. Resolution No. 2005-47 -- Adopting an Alternative Allocation Method for the FY06 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in Cook Inlet. MINUTES *Regular City Council Meeting of October 5, 2005. OLD BUSINESS NEW BUSINESS Bills to be Ratified Approval of Purchase Orders Exceeding $2,500 *Ordinance No. 2128-2005 -- Increasing Estimated Revenues and Appropriations by $6,200 in the General Fund for a Library Grant. *Ordinance No. 2129-2005 -- Increasing Estimated Revenues and Appropriations by $6,555.55 in the General Fund for a Boys & Girls Club State Grant. *Ordinance No. 2130-2005 -- Enacting KMC 1.15.130 Entitled, "Telephonic Participation," Which Allows and Establishes Rules for Council Members to Telephonically Participate in Council Meetings. Discussion -- Council/Commission Liaison Assignments Discussion-- 2005 Dip Net Fishery Report COMMI$SION/COM~TTEE REPORTS Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Comrnittees a. Beautification Committee b. Alaska Municipal League Report c. Arctic Winter Games d. Stranded Gas Committee KENAI CITY COUNCIL- REGULAR MEETING OCTOBER 19, 2005 7:00 P.M. KENAI CITY COUNCIl, CHAMBERS http://www, ci.kenE. ~.u s MAYOR PAT PORTER, PRESIDING MINUTES ITEM A: CALL TO ORDER Mayor Porter called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall Building. A-l; PLEDGE OF ALLEGIANCE 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 Rick Ross Linda Swarner Cliff Massie Absent was: James N. Buffer, III, Joe Moore, and Blaine Gilman A quorum was present. Also Present: Les Krusen, Student Representative A-3o CERTIFICATION OF ELECTION City Clerk Freas read into the record the Certification of Election as follows: CITY OF KENAI ,,, REGULAR ELECTION OF OCTOBER 4, 2005 WE, the members of the Kenai City Council, do hereby certify the results of a canvass of the ballots for the Regular Election of October 4, 2005. ABSENTEE (in-person, by-fax, personal needs, by-ma/l) AND ~UESTIONED BALLOTS RF~EIVED as.s~,r~,r,l~ USS T~o~z~ B~L~TS RF. JECTED .ABSENTEE/~UF~TIONED BALLOTS COUNTED Poz~ ~Or~R rW~ orr TOTAL VOTEI~ T~ o~rr m~aZl~ OF KE~AI ~~STE~ VOTERS ,,, 187 35 152 1,294 1,481 4,855 KENAI CITY COUNCIL MEETING OCTOBER 19, 2005 PAGE 2 [VOTER TURN OUT 30.50% CITY COUNCIL/THREE-YEAR SEATS: CANDIDATE SWARNER, Linda BOYLE, Michael ..B. UTLER, Jim OSBORNE, John Write-Ins POLL VOTF.~ RECEIVED 564 475 446 399 14 ABSENTEE, ETC. VOTES RECEIVED 78 47 60 35 3 TOTAL VOTES RECEIVED 642 522 506 434 17 CITY COUNCIL/ONE, ONE-YEAR SEAT: CAND~ATE MOLLOY, Robert NAVARRE, Timothy .WALDEN, Scott Write-Ins POLL VOTES RECEIVED 528 442 273 3 ABSENTEE, ETC. VOTES RECEIVED 44 69 30 0 TOTAL VOTES RECEIVED 572 511 303 MOTION: Council Member Swarner MOVED to certify the Regular Election of October 4, 2005 and requested UNANIMOUS CONSENT. Council Member Ross SECONDED the motion. There were no objections. SO ORDERED. A-4. ADMINISTERING OF OATHS OF OFFICE Mayor Porter administered oaths of office to Bob Molloy, Mike Boyle and Linda Swarner. Council Members Molloy, Boyle and Swamer took their seats at the dais. A-5. ELECTION OF VICE MAYOR MOTION: Council Member Ross MOVED to nominate Joe Moore as Vice Mayor and Council Member Massie SECONDED the motion. KENAI CITY COUNCIL MEETING OCTOBER 19, 2005 PAGE 3 There were no further nominations. VOTE: *Student Representative Krusen: Yes IBoyle Yes Swarner Yes Molloy Yes . Porter Yes Massie Yes Moore' Ross tAbsent Yes MOTION PASSED UNANIMOUSLY. AGENDA APPROVAL Mayor Porter requested the following changes to the agenda: REPLACEMENT PAGE: ADDITIONS TO: I-6, Discussion / Council Liaison Assignments J-3, Harbor Commission Report -- Application for appointment to Harbor Commission submitted by Bill Osbom. J-6, Planning/is Zoning Commission Report -- Application for appointment to Planning & Zon/n§ Commission submitted by Lori Chase. L-l, City Manager Report -- Wetland sale discussion/additional correspondence from Brad Meiklejohn. MOTION: Council Member Swamer MOVED for approval of the agenda with the requested additions and requested UNAKIMOUS CONSENT. Council Member Massie SECONDED the motion. There were no objections. ~O ORDERED. A-7, CONSENT AGENDA MOTION: Council Member Swarner MOVED for approval of the consent as presented and requested UN.~"'I~OU$ CONSENT. Council Member Molloy $~ONDED the motion. There were no objections. SO ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS KENAI CITY COUNCIL MEETING OCTOBER 19, 2005 PAGE 4 B-X. Larry Peek, Architect and James McConneH, Project Coordinator for Senior Connection, Inc. -- Assisted Living Project Update ._ Mr. McConnell reported the Senior Connection had requested proposals from architects and chose the one presented by Larry Peek whose emphasis is on assisted living facilities. Conceptual designs and information included in the packet indicated a project to be developed in phases over the next 20 years with the first phase being an assisted living facility. McConnell reviewed the development plan and noted, they would now be seeking funding for the assisted living facility once the site plan is approved; the Senior Connection Board members have indicated their comfort with the preliminary design; and, they were now seeking input from the Council and Planning Department. 9-2. Rick Baldwin-- KEDS Update Rick Baldwin, 3080 Kim-N-Ang Court, Kenai -- Baldw/n explained the Kenai Economic Development Strateg3r developed five initiatives to move Kenai ahead in economic development. In order to insure the work plan is carried out, a KEDS Action Team was formed of which he was elected chair. He noted, the Action Team has developed by laws and will perpetuate itself. Baldwin explained, the Team hopes to continue to work with city officials, encouraging a strong sense of community and quality of life through community events, supporting a city branding/marketing campaign, etc. Baldwin submitted a letter related to a branding program and stated he would report again of the group's efforts in about six months. B-a. Sharon Vannatta-- Kenai Community Library/Usage of the Library. Sharon Vannatta, 610 Laurel Drive, Kenai. Stated her support of the Kenai Community Library; its value to the community; space concerns for administration; space concerns for the children's area; etc. ITEM C: UNSCHEDULED PUBLIC COMMENTS Carroll Murphy, 270 Eisenhower Lane, Kenai -- Reported he attended a meeting with Mayor Porter and Acting City Manager Kopp and other residents of Thompson Park related to paving of roads. At the meeting, there was discussion of a bond proposition being placed on a city ballot. He asked if council would be investigating interest of the community to go forward with a bond proposition and what would be the best way of approaching the issue. Mayor Porter noted should be reporting on the meeting later during the meeting, but suggested administration would be requested to submit a list of roads needing paved or additional maintenance for council's future review. KENAI CITY COUNCIL MEETING OCTOBER 19, 2005 PAGE 5 ITEM D. -- None. REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCIL_~ _ ITEM E: ,, REPORTS OF KENAI CONVENTION & VISITOR~ _~U~.AU BOARD AND KENAI CHAMBER OF CO_M_M~.RC~.-- None. - ITEM F: PUBLIC HEARINGS _ F-l; Ordinance No. 2126-2005 -- Increasing Estimated Revenues and Appropriations by $2,043.75 in the General Fund for a Grant From the Rasmuson Foundation Art Acquisition Initiative. MOTION: Council Member Swarner MOVED for approval of Ord/nance No. 2126-2005 and Council Member Ross SECONDED the motion. There were no public or council comments. VOTE: *Student Representative Krusen: Yes I Swarner Yes ! Massie Molloy Yes Boyle Moore Absent Yes Ross Yes Yes Porter Yes MOTION PASSED UNANIMOUSLY. F-2. Ordinance No. 2127-2005 -- Increasing Estimated Revenues and Appropriations by $15,000 in the General Fund for Shop Repair and Maintenance. MOTION: Council Member Swarner MOVED for adoption of Ordinance No. 2127-2005 and Council Member Molloy SECONDED the motion. There were no public comments. When asked why the amount was being taken from the Fund Balance instead of Non-Department Contingency, Finance Director Semmens explained taking the amount from Contingency would deplete it to a low level and a future appropriation would be required. Administration felt it better to make the appropriation from Fund Balance now. KENAI CITY COUNCIL MEETING OCTOBER 19, 2005 PAGE 6 VOTE: *Student Representative Krusen' Yes Molloy Yes Boyle Yes Moore Absent Ross Yes Porter Yes MOTION PASSED UN~~OUSLY. F-3. Resolution No. 2005-47 -- Adopting an Alternative Allocation Method for the FY06 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in Cook Inlet. MOTION: Council Member Swarner MOVED for approval of Resolution No. 2005-47 and requested UNANIMOUS CONSENT. Council Member Massie SECONDED the motion. There were no public or council comments. VOTE: There were no objections. SO ORDERED. ITEM G: MINUTES G-I. Regular City Council Meeting of October 5, 2005 -- Approved by consent agenda. ITEM H: OLD BUSINESS-- None. ITEM I: NEW BUSN/ESS I-1. Bills to be Ratified MOTION: Council Member Swarner MOVED to pay the bills and requested UNANIMOUS CONSENT. Council Member Massie SECONDED the motion. There were no objections. SO ORDERED. I-2, Approval of Purchase Orders Exceeding $2,500 KENAI CITY COUNCIL MEETING OCTOBER 19, 2005 PAGE 7 MOTION: . Council Member Swarner MOVED for approval of the purchase orders exceedin§ $2,500 and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. There were no objections. SO ORDERED. I-3. Ordinance No. 2128-2005 -- Increasing Estimated Revenues and Appropriations by $5,200 in the General Fund for a Library Grant. Introduced by consent agenda. I=4o Ordinance No. 2129-2005 -- Increasing Estimated Revenues and Appropriations by $6,555.55 in the General Fund for a Boys & Girls Club · State Grant. Introduced by consent agenda. Ordinance No. 2130-2005 -- Enacting KMC 1.15.130 Entitled, "Telephonic Participation," Which Allows and Establishes Rules for Council Members to Telephonically Participate in Council Meetings. Introduced by consent agenda. Discussion -- Council/Commission Liaison Assignments Assignments were set as follows: Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Beautification Committee Kenai River Special Management Advisory Board (KRSMA) Economic Development District (EDD). Cook Inlet Regional Citizens Advisory Council (CIRCAC) Kenai Visitors & Convention Bureau Board Council Member Boyle Council Member Swarner Council Member Massie Council Member Mollo¥ Council Member Moore Council Member Ross and Council Member Massie Council Member Swarner Administration Jason Carroll dohn Douglas Mayor Porter KENAI CITY COUNCIL MEETING OCTOBER 19, 2005 PAGE 8 Arctic Winter Games Kenai Economic Development Strategy Parks & Recreation director Frates and Council Member Massie -Administration/VISTA .. I-7o Discussion -- 2005 Dip Net Fishery Report Acting City Manager Kopp noted a correction on Page 2' $173,464.85 for 2005. Total revenue should be Pointer noted the report stated problems with campers on the beach and suggested reopening the camping area in Municipal Park (Forest Drive). Porter stated her opposition to the suggestion. It was noted, the report would be distributed to several commissions for review and comments and recommendations would be brought back before council in several months. BREAK TAKEN: 7:58 P.M. BACK TO ORDER: 8:06 P.M. ITEM J: COMMISSION/COMMITTEE REPORTS J-1. Council on Aging -- Senior Director Craig reported the October 5, 2005 meeting summary was included in the packet. J-2. Airport Commission -- Council Member Swarner reported the October meeting was canceled due to a lack of items of business for the agenda. She reminded council and the public of the work session with the airport consultants scheduled for Tuesday, October 215 from 6-9:00 p.m. J-3. Harbor Commission -- Council Member Massie reported the meeting was cancelled due to a lack of quorum. The application of Billy N. Osbom {included in the packetl wa~ reviewed and Mr. O~bom wa~ appointed to the Harbor ¢ommis~iom J-4. Library Commission -- Acting Library Director McNair reported the meeting summary for the October 4 meeting was included in the packet. ~. J-5. Parks/is Recreation Commission -- Parks & Recreation Director Frates reported the October 6, 2005 meeting summary was included in the packet. The application of Adam DeMello (included in thc packet) was reviewed and Mr. DeMello was appointed to the Parks & Recreation Commission. KENAI CITY COUNCIL MEETING OCTOBER 19, 2005 PAGE 9 J-6. Planning ~ Zoning Commission -- Council Member Ross reported there was no meeting due to a lack of quorum. Applications of Barbara Nord and Lori Chase for appointment to the commission {included in the packet) were reviewed and both were appointed to the Commission. J-7. Miscellaneous Commissions and Committees J-7a. Beautification Committee -- Swamer noted, the meeting summary for the October 11 meeting was included in the packet. J-7b. Alaska Municipal League Report -- Swamer reminded council of the AML Conference scheduled for November in Anchorage. J-7c. Arctic Winter Games -- Frates reported on the October 8 Volunteer Rally and noted another would be held on November 5 in Soldotna. Frates also reported the bleachers for the ice rink had arrived and administration was searching for a contractor to install them. J-7d. Stranded Gas Committee -- Council Member Ross reported no meeting had been called. ITEM K: REPORT OF THE MAYOR -- Mayor Porter reported the following: · She and Kopp attended a meeting with Thompson Park residents related to paving requests; possible bond propositions, etc. She requested council's concurrence to direct administration to provide a list of streets needing paving, street maintenance, cost estimates, etc. (a street improvement planl to discuss during a future work session, as well as consider whether to include a bond proposition on a ballot or stay with a limited improvement district concept. Council had no objections to administration gathering and preparing information as requested.. *- Met with a representative of the Kenai Historical Society related to the estate of Clarence Ladd and the purchase of a cabin currently situated across from the Woodridge Apartments. She requested council to drive by and take a look. Porter added, the city would be requested to place the cabin on city property. · Met with representatives of RuralCap related to their desire to place a low-income housing project in Kenai. She explained, their building project would include sweat equity by the future owner of the home; they build eight or more homes at one time and no one moves in until all are finished; they are interested in property in the Mommsen Subdivision area; and, they are currently building eight units in Sterling. -- * She is working with Salamatof Native Association, Kenai Natives Association, and Kenaitze Indian Tribe to construct an addition to the Visitors & Cultural Center. They are investigating funding sources. ~NAI CITY COUNCIL ME~ING OCTOBER 19, 2005 PAGE 10 · She would be declaring October 26 as Kenai Kardinal Day to celebrate the fourth year the Kenai Central High School football team won a state title. Noted branding information in-c!uded in the packet. ITEM L: ADMINISTRATION REPORTS L-1. City Manager-- Acting City Manager Kopp reported the following: · Noted the RuralCap representatives stated interest in property in the Panoramic Drive area and they hoped to build approximately 20 homes with floor plarm between 1,400 and 1,800 square feet. · Referred to the electronic correspondence distributed at the beginning of the meeting from Brad Meiklejohn related to the possible sale of wetlands. The letter indicated The Conservation Fund has a year to finalize a sale. The issue will be Placed on the November 2 agenda for further discussion, i.e. does council want to pursue.the sale of all or a portion of the property. · The interviewing of candidates was completed for the Library Director position; reference checks are being conducted; a job offer was expected to take place by the end of the week; and, he planned to have the person travel to Kenai before a final acceptance of the job is made (funds for the travel would come from the city manager travel budget). · A Code Enforcement Officer had been hired and on the job. · The dip net report will be brought back to council with recommendations, etc. from commissions. · He sent a letter of commendation to Landon Mishler for attaining his Eagle Scout designation. L-2. Attorney -- Attorney Graves reported executions were behag made on unpaid traJ~c tickets from Permanent Fund Dividend checks. He expected an approximate amount of $23,000-$26,000 to be received from the executions. City Clerk -- No report. ITEM M: DISCUSSION M-1. Citizens -- None. M-2. Council -- ~arner -- · Reported she received a call related to vehicle parking along narrow streets (Redoubt Avenue and Stellar Drive) and asked if vehicles are towed. Kopp explained the tagging/removal process. Swarner suggested parking be allowed only on one side of narrow streets. · Welcomed Mike Boyle and Bob Molloy as council members. KENAI CITY COUNCIL MEETING OCTOBER 19, 2005 PAGE '11 Massie -- Welcomed the new members to the council. Ross -- Welcomed Boyle and Molloy to council. Molloy -- Thanked Council Members Gilman and Buffer for their service on council and thanked the voters for their confidence in him to do the job. Molloy added, he was looking forward to working with all the council, administration, employees, and residents. _ Boyle -- Thanked those who voted for him, stated he was looking forward to working with the council, and asked the department heads to educate him when necessary to help him make good decisions. EXECUTIVE SESSION-- None Scheduled ITEM N: ADJOURNMENT There being no further business before the Council, the meeting adjourned, at approximately 8:39 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk *The student may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast prior to the official council vot, and shall not affect the outcome of a vote. Advisory votes shall be recorded in the minutes. S~udent representatives may not move or second items during a council meeting. KENAI. AEASKA 210 Fidalgo Avenue, Kenai, Alaska 99o-~ ;-,, ~..,. Telephone: 907-283-7535 / FAX: 907-283-3014 MEMo: 1992 TO: Mayor and Council FROM: Chuck Kopp, Acting City Manager DATE- October 14, 2005 SUBJECT: Wetlands Sale Discussion On October 12, 2005 the City of Kenai received an email from Alaska Conservation Fund Director Brad Meiklejohn. Meiklejohn reviewed the City Council minutes of the September 7, 2005 meeting and realized there was a mistaken impression that the Council had one year to decide on the Conservation Fund offer to purchase City wetlands. He clarified that the Conservation Fund had to e~omplete any potential transaction by August 22, 2006 or they would lose the funding available for the transaction. Meiklejohn asked that the City of Kenai respond to him no later than October 3 I, 2005 regarding the Conservation Fund offer to purchase wetlands. I left a message for Meiklejohn, asking that the City be able to reply by November 30, to provide our new Council members oppommity to review the attached information concerning wetlands, and discuss the issue with Council members and the public. Please review the attached City Attorney's 9/15/05 memo to council concerning Conservation £azements. I plan to bring this item to the attention of Council as a Discussion item at the November 2, 2005 Council meeting. Page I of 1 City Manager- · _.-- From- BraclMeiklejohn@aot.com Sent: Weclnesclay, October 12, 2005 10:33 AM To: City Manager; Cary Graves Subject: Proposecl Sale of City Wetlancls Dear Sirs, In reviewing minutes fi'om the City Council meeting on 9/7/05 it appears that I need to con'eat a mistaken impression regarding our offer. The Conservation Fund must como|ete any potential transaction by August 22, 2006 or we will lose the funding that we cmrently-ha~Ve available. In our experience even the simplest transactions can be quite time consuming. We have recently received inquiries from property owners whose properties are of conservation significance t_0 u..s._ .While ~ur fa'st prefe .,r?ce.remains the wetlands owned by the City of Kenai, we may need to sw~tcn to anomer project ramer than risk losing the funds altogether. I ask that the City respond to me no later than October 31 2005 regarding our offer to purchase wetlands. ' Sincerely, Brad Meiklejohn Alaska Representative The Conservation Fund 2727 Hiland Road Eagle River, Alaska 99577 (907) 694-9060/9070fax ww.w.conservationfund,o~ The Conservation Fund Rated.4+ - rlte Top £nvironmental Non. Profit in the Nation - by the /Oneriean Institute of Ph Hanthrop. y NMIoe: This oma# meeoago, including any attachmems, ts far tho omo uso of tho rocipMnm to whom It ts addr#sod, and may to bo ~roo of Imy vlnm or othM dek~ thlt might ~ I~ eoln~xjtw ~ into which it I~ re(ired mm opened, it lB the of tho reciptsnt to onouro that It la virus/tN and no mopoMiblllty ts a~ ~ Tho Coflson~Mfl Fund for any ~osa m' ~ in anyway from its uaoo 10/14/2005 210 Fidalgo'Avenue, Kenai, Alaska 99611-7794 Telephone. 907-283-7535 / FAX: 907-283-3014 www.ci.kenai.ak, us MEMORANDUM TO: Mayor Porter and Councilors FROM. ('~ Cary R. Graves, City Attorney DATE: September t 5. 2005' ' RE: Conservation Easements The Conservation Fund has proposed buying or acquiring a conservation easement in approximately 745 acres of wetland property next to the Kenai River. During the last meeting, a question came up regarding the City's liability for violations of the restrictions in a conservation easement. Alaska has adopted the Uniform Conservation Easement Act (AS 34.17.010-060) that establi~e~ the ability to grant conservation easements in this state. The entity acquiring the easement is the "holder" of the easement. The city would be the "grantor" of the easement. Both the holder and the grantor have enforcement responsibilities under a conservation easement. The holder has the obligation to monitor the property, to ensure the grantor ha~ not created or allowed any violations of the easement. The grantor is responsible for not creating or allowing any violations of the easement. If the holder discovers a violation, it can demand the grantor fix the violation at the grantor's expense. If the grantor does not fix the violation, the holder can sue to get a court order to require the grantor to fix the violations. The grantor may also be liable to the holder for damages a violation causes for loss of scenic, aesthetic or environmental values of the property. Here's an example. Let's assume a property owner granted a conservation easement to a group that promised not to log a piece of timbered property. If the property was logged in violation of the easement, the easement holder could sue to require the property to be reforested by planting new trees and also for damages to the scenic, aesthetic or environmental values of the land. I have attached a "Model Conservation Easement" for your infort~ation. Paragraph 6 of document contains the easement holder's remedies against the property owner for Violations of the easement. I have also included a fact sheet summary regarding conservation easement. Please let me know if you have any questions. MODEL CONSERVATION EASEMENT Natural l.a~ds Trust (610) 353-5587 Diehl, J. and T. Elam'et[ 'The Conservation Easement Handbook". For. theTrust for Public Land and the Land Trust Alliance. Washington, DC. MODEL CONSERVATION EASEMENT Model Conservation Easement Note: The box~ numbers inserted in the text of the easement corre~oncl with the subhea~ling numbers in the commentary that follows. DEED OF CONSERVATION EASEMENT , THIS GRANT DEED OF CONSERVATION EASEMENT is ma~ this ...__day of 19__..~ by aria -~ "-'--'-'- address at ----------------_, husband ami wife, having an ('Grantnrs~), in favor of a non profit ~ corporation [qualified to cio business in ~ having an address at "Grams')., - WlTNESSETH: WHEREAS, ~ grantors are the sole owners in fee simple of certain real property in _ County, mom particularly described in Exhib~ A attach~ this reference (the "Property');, am - _ WHEREAS, the property possesses alues (colleclively, conservation values") of gmat importance to Grantors, the people of I'countv. Iocale~_ or re0iorl! _ And the people of the Sta~ of " WHEREAS, in particular, .--.~.---..~....__;~ s and WHEREAS, the specific conservation values of the Property are documen~ in an inventon/of relevant features of the Property, dated ~, 19_...._, ---.-.[glt.~~~e offi~_. ,~ n~.,~_.,. ""---- ummmenm~on ), which consists of reports, m ' -- ~ ---.,,.. _..,.,._ ,._..,_ .... . aps, photographs, and other of the Property at the time of*~,~- ,,-.., ---, ---.-,--. ~ · . _ representation -,,,- ~,ma m~u wnlcll IS IIl[erlOed to serve as objective information baseline for monitoring compliance wilh the terms of this WHEREAS, Grantors int~d that the conservation values of the Property be preserved and maintained by the continuation of land use patterns, includin e · · · willtout II.on, those relating to · ' . '- ......... g, ~ Exb~g at the time of tt~ grant, tlat do not significantly impair or inter~ere with those values; and , MODEL EASEMENT WHEREAS, Grantors further intenci, as owners of the Property, to convey to Grantee the rigi~t to preserve and protect the conservation values of the Property in Perpetuity; and ~ WHEREAS, Grantee is a publicly supported, tax-exempt nonprofit organization, qualified under Section 501(c)(3) anct 170(h) of the Internal Revenue Code, whose primary purpose is ' . " ; and WHEREAS, grantee agrees by accepting this grant to honor the intentions of Grantors stated herein and to preserve and protect in perpetuity the conservation values of the Property for the benefit of this generation and the generations to come; ,, NOW, THEREFORE, in consideration of the above and the mutual covenants, terms, conditions, and restrictions contained heroin, and pursuant to the lows of ~ and in particular rsaeciff¢ state statutory authorttYl , Grantors t~ereby voluntarily grant and convey to- Grantee a conserVation-~-sement in perpetuity over the Property of the nature and character and to the extent hereinafter set forth ('Easement"). 1. EUJ:gg.s~.. It is the purpose of this Easement to assure that the Property condition and to prevent any use of the Property that will significantly impair or interfere with the conservation values of the Property. Grantors intend that this Easement will confine the use · · · · · · as are consistent with the purpose of this Easement. ,= ' 2. Rbhts of Grantee. To accomp~ the purpose of this Easement the following rights am conveyed to Grantee by this Easement:. a. To preserve and protect the' conservation values of the Property; b. To enter upon the Property at reasonable times in order to monitor Grantors' compliance with and othen~se enforce the terms of this Easement; provided that such entry shall be upon prior reasonable notice to Grantors, and Grantee shall not unreasonable interfere with Grantors' use and quiet enjoyment of the Property;, and c. To prevent any activity on or use of the Property that is inconsistent with the purpose of this Easement and to require the resto~n of such areas or features of the Property that may be damaged by any inconsistent activity or use, pursuant to paragraph 6.. ' 3, Prohibited Uses. Any activity on or use of the Property inconsistent wilh the purpose of this Easement is prohibited. W]~out liming the generality of the foregoing, the following act~ties and uses are expressly prohibited: [Insert Express Restrictions] MODEL CONSERVATION EASEUENT 4. Reserved Riqhts. Grantors reserve to themselves, and to their per- sonal representatives, heirs, successors, and assigns, all rights accruing from their ownership of the Property, including ~e right to engage in or permit or invite others to engage in all uses of the Property that are not expressly pro- hibited herein and are not inconsistent with the purpose of this Easement. [W'~out liming the generality of tlie foregoing, the following rights am expressly reserved:l ,, [Insert Express Reservations, if desired] ,, §' The purpose of requiring Grantors to notify Grantee prior to undertaking certain permitted activities, as provided in paragraphs , is to afford Gran~ an opportunity to ensure that the acfrvit~es in quesdo--~am desiqned and carried out in a manner consistent with the purpose of this Easement. Whenever notice is required Grantms shaft notify Grantee in writing not less ~an re.o., sixty (6011 _ days prior to the date Grantors intend to undertake the acltvity in- - question. The notice shall describe the nature, scope, design, Ioca~on, timetable, and any other material aspect of the proposed activity in sufficient detail to permit Grantee to make an informed judgement as to its consistencT with the purpose of this Easement. 6.1 Grantee's Aoomval. Where Grantee's approval is required, as set forth in paragraphs -- , Grantee stall grant or withhold its app~t in w~dng within re.~., sixty (60}] Days of receipt of Grantor" written request therefor. Grantees approVal m~ be withheld only upon a reasonable determination by Grantee that the ac~on as proposed would be inconsistent ~se of this Easement. ,, .... ~ If Grantee determines that Grantors am in vxxa~on of me terms of this Easement or that a viola~n is threatenS, Grantee shall give written notice to Grantors of such violation and demand (x)tmcdve action suffident to cum the violation and, where the violation involves injury to the Property resulting from any use or activity inconsistent with the purt~se of this Easement, to restore the portion of the Property so injured. If Grantors fail to cum the violation within re.o_ thtrlv ~301] Days after receipt of notice thereof from Grantee, or undm; ci~~ces where the viola~n cannot reasonably be cured within a _. fgetv (30,fl Day period, ~ to begin cu~g such violation within the [thl~ (301]_- Day- pe~d, or fail to continue dil~entty to cum such violat~n undl-flnaily cured, grantee may bring an action at law or in equity in a court of competent jurisdiction to enforce the tefnw of this Easement, to enjoin the violation, ex pa~ as necessary, by temporary or permanent _ o~ m,s casement m re.tory to any consenmtion values protected by this Easement, Including damages for the loss of scenic, aesthetic, or environmental. MOOEL EASEMENT prior to any such Injury. Wllhout limiting C, ramo~ in its sole discretion, may apply any damages recovered to the cost of under- taking any corrective action on the Property. If Grantee, in its sole discmSon, determines that circumstances require immectiate action to prevent or mitigate significant damage to the conservation values of the Property, Grantee may pursue its remedies under this paragrapll without prior notice to Grantors or without waiting for the period provided for cure to expire. Grantee's rights under this paragraph apply equally in the event of either actual or threatened violations of the terms of this Easement, anct Grantors agree that Grantee's remecties at law for any violation of the terms of this Easement are inadequate anti that Grantee shall be entitled to the injunctive relief described in this paragraph, both prol~ibitive anti manelatory, in addition to such other terms of ~n iasd_E_a,_s, e_men!, ~thout the n .a:essity of proving either acaJal damages or the equacy or omerwise available legal remeclies. Grantee's remedies described ~n this paragraph shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity. == 6.1 Costs of Enforcement, Any costs incurred by Grantee in enforcing the terms of this Easement against Grantors, including, without limitation, costs of suit and attorneys' fees, anti any costs of restoration necessitated by Grantors' violation of the terms of this Easement shall be borne by Grantms. If Grantors prevail in any action to enforce the terms of this Easement, Grantors' costs of suit, including, without limitation, attorneys' fees, shall be borne by Grantee. =, 6.2 Grantee s Discretio_n. Enforcement of the terms of this Easement shall be at the discretion of Grantee, and any forbearance by Grantee to exercise its rights under this Easement in the event of any breach of any term of this Easement by Grantors shall not be deemed or construed to be a waiver by Grantee of such term or of any subs~uent breach of the same or any other term of this Easement or of any of Grantee s dghts under this Easement. No delay or omission by Grantee in the exercise of any right or remedy upon any breach b Grantors shall ~m ar such n Y · P ' 'ght or remedy or be construed as a waiver. 6.3 ~. Grantors hereby waive any defense of laches, estoppel, or proscription, a $ 4 ' Noth' · ~. mg contained in this Easement shall be construed to entitle Grantee to bring any action against Grantors for , any injury to or change in the Property resulting from causes beyond Grantors ._control, in(iud, in;, wi~. out limitation, fire, flood, s~rm, and earth movement, or ~rom any pmaem action taken by Grantm~ under emergency conditions to Pcam~nest,' a.bate, or mitjgate significant injury to the Property resulting from such ?. A~.~. No right ot access by the general public to any portion of the Property is conveyed by this Easement..' MODEL CONSERVATION EASEMENT 8. Costs and Liabilities. Grantors retain all responsibilities and shall bear all costs and liabilities of any ~ind related to the ownemhip, operation, upkeep, and mainten~m of the Property, including the maintenance of adequate comprehensive general liability insurance coverage. Grantors shall keep the Property frae of any tiens arising out of any wor~ performe~l for, materials fumishecl to, or obligations incurrecl by Grantors. =s 8.1 :~. Grantors shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Property by competent authority (collectively 'taxes'), including any taxes imposect upon, or incurred as a result of, this Easement, and shall furnish Grantee with satisfactory evidence of payment upon re uest. authored but in no event obligated to make or advancCl~e any [Grantee is payment of taxes, upon re.a., three (3)! Days prior written notice to Grantors, in acco~ance with any biJl, statemen~,-~r estimate procured from the appropriate authority, without inquiry into the validity of the taxes or the accum~ of the bi/I, slat~ rnent, or estimate, and the obligation cmatecl by such payment shall bear interest until paid by Grantors at the lesser of..__ percentage points over prime rate of interest from tim,, *,, .,.,.. -,. ....... the ' "- .,. -,,,o ~,.~mjea ay _Jclesianated bank] or the maximum rate allowed by law. J 8.2 Hold Harmfes_s. Grantors shall hold harmless, indemnify, ancl defend Grantee anti its members, directors, officers, employees, agents, anct contractors and the heirs, personal representatives, success (collective 'lnd ' .. __ ors, and assigns of eac/lof the ~Y emn~ecl Parties . ... m . ) from and against all Ilabff~ties penalties, costs, losses, clamages, expenses, causes of action, claims ' · ?ems, including, without limitation, reasona , , d_e, mancls, or judg- m any way connectad wifh. ,,, ,-.' ...... ..~b/e.a~meys fees, arising from or ............ ~1 injury TO or IZle clealtl '~ .......... u, a,,y I~lSOrl, or physical damage to any property, resulting from any act, omission, cond~ matter related to ' ' , or other oroccumn on or g about the Property, regard/ess of cause, unless due solely to the negligence of any of the Indemnified Parties; (2) the obligations specified in paragraphs 8 and 8.1; and (3) the existence or adminis- train of this EasemenL z~ · g. Ext~nauishmer~. If ctrca~ances arise in the Mum sUC~ as rende~' purpose ot this Easement impossible to acco~lish, tMs Easement can onty be terminated tr extin~~~, whether in whole or in part, by'judicial proceedings in a court ot competent jurisdiction, anct the amount ot t~e proceeds to Grantee shall be entitled, after the sa~faction ot prior ctaims, from any s~, exchange, or involuntary conversion of all or any portion ot the Property sul~ecluent to su~ termina~on or extinguis~nt, stol ~ dete~ed, un/ess other~se provided by ~ law at the time, in accorclan~ Grantee shall use all s · with pamgm~ 9.1. oumA<es ,,~ N,~ ....~ uch proceeds m a manner consistent with the conservation ...................... MODEL EASEMENT g.1 Proceeds. This Easement constitutes a rea/property interest ~ vestacl in Grant~e, wh~, for the purposes of paragraph 9, the parties ._s~,___lat?..to h_ave a .fair market value determirmd by multi n the ' vame orme Property unencumbered b P~ g fairmarket va/ue after the date of this ,,..--, -,~.~?.Easement (minus any increase in u,=,, ,=m~umaom m improvements) by the ratio of the value of the Easement at the time of this grant to the value of the Property, without deduction for the value of the Easement, at the time of this grant. The values at the time of this grant shall be those values use~l to calculate the deduction for federal income tax purposes allowable by mason of this grant, pursuant to Section 170(h)of the Intemat Revenue Code of 1954, as amended. For the purposes of this paragraptL the ratio of the value of the Easement to the value of the Property unencumbere~l by the Easement shall remain constant. :~ · 9.2 Condemnation. If the Easement is taken, in whole or in part, by exerc;se of the power of eminent domain, Grantee shall be entitled to compensation in accordance with applicable law. == 10. Assiqnment. ~ F,a,m__~ is maasfeable, Ix= G~ may aadBa ks ri~s and oblisa~i~s ~ ~ ~ only ~o an o~~~ d~: is a qualited or~aniz~~ a~ ~e ~= of ~amfer under Seclion 170(h) of the ~ Revenue Code of 1954, as amended (or any successor provision then applicable), and the applicable regulations pmmutgaz~ ~, md ambodz~ to acquire and hold conservation easemems under (state statute]_ (or any successor provision then applicable). As a condition of'such ~er, Graaz~ shall ~ zl~ the Otlt, ~ 11. Subseouent Transfers. Gaamzs aSme m iaco~ ~e mm~ of' ~:- _~m__~ ia am/da~ or orJ~r t~ i,~~__em by whi~ ~ clive= ofany inm~ ~ ~ ora paaian oflhe Pmpem/, inohdh~ ~ limilafion, a leasehold ~ Grana~ further ~ m ~ ~ notice ~o Gxamee of the lzaasfer of any ~ at lea,v (e._~.. twen _w (20~1 days prior m ~ date of such maf~r. The ~ ofC-ramors zo pedmm any a~ ~ by this ~ s~ 12. Esm_ _a~l Certificnt_~, Upon mqu~ by C. mmzm~ C. manl~ shall wid~ _re._~.. twemv (~m! day~ exm~ and de, liv= ~o sra=o~ any docum~ inc~ of Grantors contorted in this Easem~ and o~se evidences ~e sma of ~ F. asemem as may be ~ by G~ ~s 13. lilaitm. Any nmic~ demaad, ~ cons=s, approvaL, or ~~?,__~'d as follows: To Grantom: MODEL CONSF.~VATION EASEMENT To Grantee: or to sucl~ other address as either party from tie to time shall designate by written notice to the other. =~ 14. Recordatiorl. Grantee sl~all record this instrument in timely fashion in the official records ofCounty, _ rstat l _ And may re-record it at any time as may be required to' p-reserve its r~ghts in this Easement. 15. Generat Provisions. a. Controtlino ~_aw. The interpretation and performance of this Easement shall be governed by the laws of the State of rstatel b.. Uberat Constructiol!, Aay ~===l mi= of'co~ to commT notwi~ tl~ ~ shall be libeml~ con.vaued in favor of th~ grant to effect the purpose of ~ ~_~,~__~ and the policy and purpose of, ia~pmat/on conmtent with the purpose of~ Easeme~ that would render the pm~on valid shall be favored over any inmpmat/on that would ~ it/nvaiid. ¢. $~¥~rabiHIy. Ifany pray/don of ~ ~ or the appiicat/on thereof to any per,on or circumstance,/~ found to be royal/d, ~ reminder of the pmvm'on~ of this F~meat, or the app//cat/on of such prov/sion t~ persons or ~_t~j_ other than tha~ a~ to which it is found to be invalid, as the may be, shall not be ~ a~ me.ed hereto. [No aim'at/on or vat/at/on of this ~ shall be valid or b/ad/ng unless coma/ned/n an _arno__ dm~ that con~l/e~ w/th para~h___. (see or reversion of Grantor's title in any respect. f. Joint Obllaatiqn. The obligations imposed by this Easement upon Grantors shall be joint and several. g. Successors. The covellall~ ~ _condi~oBs, _ .~..._e~ ua~r ms ~ temgm~ aim lrazafer of the tony's · Pmp ,exeept Uabi foractsorom .wm ,, MODEL EASEMENT solely for cenvem~ ofzefemnce and~ nota pan ofthis i~nmmt and ~ hav~ no eff'~ upon coastm~on or ~oa. j. Countema~. The parties may execute this instrument in two or more counterparts, which s~atl, in the aggregate, be signed by both parties; each counterpart shall be deemea an onginat instmmen! as against any party who has' signect it. In the event of any disparity between the counterparts pmctucect, the recorcted counterpart shall be controlling. ~ forever. TO HAVE AND TO HOLD unto Grantee, its successors, and assigns IN WITNESS WHEPEOF Grantors and Grantee have set their hands on the day and year first above written. Y Ill l I Grantee [Acknowledgments] its [Official Ca_n__.citv! _ ,, Ae B. orC. lC. orD. SCHEDULE OF EXHIBITS Legal Description of Property Subject to Easement Baseline Documentation] Site Descriptions/Map Idenliflcafion of Prior Mortgage MODEL CONSERVATION EA8EM~T Supplementary Provisions =, (Paragraph numbers indicate relative position in model.) [5.2] Arb~atfon, ~ad~,n~bt~,,ua~pa.t~~=a~~ ~ of any proposed us~ or activity with tl~ pml~os~ of this and Grantors a~ no~ m proceed wi~ th~ use or act/vity pen~ resol~ of the dispum, ¢ifl~r pray may refer thc dispute ~o arbiwauon by requ~ made/n wr/fin~ upon ~h~ o~r. Wi~ [c.g.. ~rtV (30)1 days ofth~ rece/p~ ofsu~ a ___ request, tim part/cs st~ select a.sin~le arbiUator to he~ th~ mauer. If the p~/es are unable to a/tee on thc selection ora sin~e arbiu-~r, then each pray shall name one arbiu~r and the two arbi~rs thus selec~ shall select a th/rd after, or;, prov/ded, however,/f either pray fails to sel~ au arb/~, or/fthe two arbitrators selected by the parties fail to select t~ third arb~ wit~ [e.g.. fo,~_een t 14~]_ days after th= appoinmmx of the second arbi~, then in each such inmace a proper corn, on petition of a pray, shall appoi~ flz second or third arbitrator or both, as the case may be, in acooxdan~ wi~h ~ arbitration s~_me], or any successor stam~ then in effea. The matter shall be se~ in acconhnce with the [state ~rbitration statute or other a~m'o~ri~te body addition to tach other reiiefas may be gramd, to a reaso~ble sum as and for all f~s and expenses of the ~ and aimmeys' fees, which shall be ~ by the arbiUamr(s) and any court of coagetent jurisd'ction that may be ~ Ul~n to eafome or review the award. ,o [B~ween 9 and 10] Amendm _t~. lf cia:um=~,,,~ arno under ~ an _~,,_ dm~ to or modification of this ff~?~m__~ would be appwpria~ Gxantors and Grantee are fr~ to jointly ammd this Easement; provided that no ammdmm shall be allowed that will affect the q~if~c~__'on of this ~:-~ -=~_~ or the sm= of Ca~mme trader am/applicable hws, ~ ~_seate ~1 or Se~on 170(h) of the Internal Revenue Code of 1954, as arn~d~ and any amendm~ shall be comismnt with the pint-se of this ~ent, and shall not affea its perpetua/ du~on. Any such amendment shall be recorded in the offi~ xecords of _County, _rstatel_. ,, [10.1] ~xecutorv Limitation. If Grantee shall cease to exist or to be a qaaU~ ~'n uad= Section 170(h) ofthe htemai Reveaue Code of 1954, as ame~___d_,.d, or to be autho~ to acquire and hold coz~~m/on ~ under {state smmt__e], and a pmr ~~,m~_ ~,~_ is not made pummnt ~o ~~~_ 10, then Craz~s ~ and obligatio~ uad= this ~:-~ _~m_ ~ shaa back-up _m'.~__t,~l__/s no loag~ in ~xisamce at the ~ the zighls and Obl~~ uadet tt~ g~te~m~ _e~t would o~ vest in it, or if Meskm~ted back-tm _mm~L is not qualit~ or ~_~~ to hold ~ easmz~s as lamdded f~ an ~_-g~_,,~ pumam ~o ~ I0, or ifit shall xefi=~ such MODIK. EASi]3~NT v~/n tach orl~aniz~on as a court of co~ jurisdiction shall ~ purmmnt to the applicable ~ law and with due regard to the require'merits for an assignmeat pursuant to p _atagraph 10. ,~ [Between 10 anc111] Suborctinatio_n. At the time of conveyance of this Easement, the Property is subject to the mortgage identified in Exhibit attached hereto ancl incorporated by this reference, the holder of which has agreed by separate instrument, which will be recorded imme~liately after this Easement, to subordinate its rights in the Property to this Easement to the extent necessary to permit the Grantee to enforce the purpose of the Easement in perpetuity and to prevent any modification or extinguishment of this Easement by the exercise of any rights of the mortgage holder. The priority of the existing mortgage with respect to any valid claim on the part of the existing mortgage holder to the proceeds of any sale, condemnation proceedings, or insurance or to the leases, rants, and profits of the Property shall not be affected thereby, and any lien that may be created by Grantee's exercise of any of its rights under this Easement shall be junior to the existing mortgage. Upon request, Grantee agrees to suborclinate its rights under this Easement to the rights of any futura mortgage holders or beneficiaries of deeds of trust to the proceeds, leases, rents, and profits described above and likewise to subordinate its rights under any lien and to execute any documents required with respect to such subordination, except that the priority of any lien created by Grantee's exercise of any of its rights under this Easement pdor to the creation of a mortgage or deed of trust shall not be affected thereby, nor shall this Easement be subordinated in. any other respect. ,~o-a~rvauon ~:a~ements, CDFS- 1261-98 Page I of 4 Ohio State University Fact Sheet Community Development 700 Ackerman Road, Columbus, OH 43202-1578 Conservation Easements CDFS-1261-98 Land Use Series · Peggy $chear Thomas W. Blaine A conservation easement is a restriction placed on a piece of property to protect the resources (nann'ai or man-made) associated with the parcel. The easement is either voluntarily sold or donated by the landowner, and constitutes a legally binding agreement that prohibits certain types of development number of frequently asked ,~ out conservauon easements. For specific information on the purchase and sale of conservation easements, see OSU Extension Fact Sheet, Purchase of Development Rights (PDR), CDFS-1263-98. Frequently asked questions: Conservation Easements What Is an easement? Ownership of a piece of property may best be described as a "bunclie of ri' " · · ' · ,-,~t to_o_~py., !,,,.,,, ,,~, a~ d~v,~op th. la,,d..,,--.----.. .... ,_!.sh~... n~.~ r, sht,,.~,,,t,, th, more of these rights from the landowner to someone ,.,,---,--, mvo,vcs__me excnange.otone .or used for ears to vi ... who does not own the land. Easements " y pm de governments, utilit/es an .... · have be~n An casein ' _._ . , d extracti_ -ye mdusmes ruth certain ro ' _ ent pemnts the holder ccmin nahts reannii,,,~, s...~ ~ .... .~__. p perty nights. · o.~F v~ u~ i~m ~ Wltll tl~ ' ,---r .... .-~ private property owner. ' -" .. What is a conservation easement? conservation easement is designed to exclude certain activities on private land, such as comme~iai development or residential subdivisions. Its primary purpose is to conserve natural or man-made hl~'.//ohio~e, osu. edu/cd, fact/1261.html Conservation Easements. CDFS- 1261-98 Page 2 of 4 resources on the land. The easement itself is .typicallv described in terms of the resource it ~s designed to protect (e.g., agnc'ulturat, forest, historic, or open sp~ce easements). ... The easement is a legally binding covenant that is publicly recorded and runs with tha property deed for a specified time or in perpetuity. It gives the holder the responsibility to monitor and enforce tho property, restrictions imposed by the easement for as long as it is designed to nm. An easement grant ownership nor does it absolve the proper~ owner from traditional owner responsibilities, does not property tax, upkeep, maintenance, or improvements, i.e. What does an agricultural easement cover? An agricultural easement is a specific type of conservation easement, designed to protect land from development and insure that the use of the land will remain conducive to agriculture in tl~ furore. Agricultural easements are designed to ,me.,e!.the needs. of the property owner. They may include provisions for limited development for ~uuamgs such as barns, and housing for children and grandchil_dren who wish to stay on the farm. They may exclude certain sections of the farm bom the easement entirely. As with other types of conservation easements, agricultural easements basically limit or prohibit the land from being developed for residential or industrial purposes regardless of who owns the land in the future. What are the tax implications of conservation easements? If an easement is granted in perpetuity as a charitable gift, some federal income and estate tax advantage~ usually accrue. These tax saving~ may be substantial, and are often cited as a major f~r in landowners' decisions to donate easements. The 1997 federal tax law specifies estate easement donation options for farms within 25 miles of a metropolitan area. Property tax benefits are state and locally determined and may vary. Contact an attorney knowledgeable about land-use law for specific tax implications. Who can grant a conservation easement? The owner of the propeny is the only one who can decide to place a conservation easement on his or her property. When a property is owned by several individuals, all owners must agree to place the easement. If the property is mortgaged, the mortgage holder must also be in agreement for the easement to be placed. A conservation easement is a voluntary land-protection tool that is privately initiated. Who holds the easement? A conservation easement is designed to protect a property according to the owner's wishes. Since the easement is generally granted in perpetuity, it is necessary for an outside party to be responsible for the. monitoring and maintenance of the easement. The outside party "holds" the easement and is monitor and enforce the adherence of cun~nt and future property owners to the terms of the Typically, easements are held by local government agencies, land trusts see OSU F, xt Land Trusts, CDFS-12fi2-98 or oth --- · · . ( - ension Fact Sheet, monitoring and maintenance)of ease~~n~sn~~o,fiJ~°~_°_,ns,__dcs~.g~,ec~ to h01d them. Since the. o/~cn arc required m nrovidc ~man~ ...... ~___. .... p rp ~, cesemcm donors ,- ~,,,, o,,vl~un mr me easement ~f it ~s held by a nonprofit organization. Designating both a government agency and a nonprofit or land trust as co-holdersan alternative selected in ' . . of the easement is _ many easements and may be required m certain public programs wherein the easements are purchased by a government preservation program or organization. ,~,~-arrvanon easements, CDFS- 1261-98 Page 3 of 4 Is land under a conservation easement considered p. Ublie propert'v? The easemen£ can restrict or permit certain public uses of the land. An easement does not hava to permit public access at all. The decision to allow public access is left to the individual property owner who places the easement on the property. It is important to emphasize that land covered by a eolmervation easement is still privately held land, with the only restrictions on land use being thos~ d~ix~ by owner who places the easement on the property. Certain government initiated easement programs may require some public accessibility in ordar to me~-t tax requirements so it is necessary to investigate the public access requirement~ before writing tim easement. What are the responsibilities of the easement holder? Whether the easement holder is a public or nonprofit organization, the holder has the responsibility to enforce the requirements stipulated in the easement. This responsibility generally includes: a. Establishing baseline documentation through ensuring that the language of the easement is clear and enforceable, developing maps, property descriptions and baseline documentation of the propert~s characr=ristics. b. Monitoring the use of the land on a regular basis. This may require personal visits to the property to ensure that easement restrictions are being upheld. c. Providing information and background data regarding the easement to new or prospective property owners. d. Establishing a review and approval process for land activities stipulated in easement. e. Enforcing the restrictions of the easement through the legal system if necessary. f. Maintaining property/easement related records. Where can I get more information about conservation easements? American Farmland Trust, 1920 N St. NW, Suite 400, Washington, DC 20036 phone 202-659-5170 Land Trust Alliance, 1319 F St. NW, Suite 501, Washington, DC 20004 phone 202-638-472:$ Trust for Public Land, 116 New Montgomery St., 4th Floor, San Francisco, CA 94105 phone 415-495. 4014 Where can I read about conservatfon easements on the WoHd Wide Web? References Conservation F,a~ements. Fact sheet. Land Trust Alliance: Washington, D.C. .~oughlin, Thomas A. 1991. "The use of easements for land conservation and historic preservation.,, 'Pennsylvania Land Trust Handbook. Chesapeake Bay Foundation. hiip'.//ohioline, ostc ~hi/cd. fa~ 1261 .html Conservation Easements. CDFS- 1261-98 Page 4 of 4 Daniels. T. and D. Bowers. 1997. Holding Our Ground: Protecting America's Farms and Farmland. Washington DC' I~land Press. ~' _. Diehl, J. and T. Barnett, edz. 1988. 27~e Conservation Easement Handbook. Alexandria, VA: Land Trust Alliance and Trust For Public Land. Land and ~tewardship. Spring, 1995. Conservation Stewardship Office, Vermont Land Trust: Woodstock. VT. " Mennito, Donna. Overview, agriculture tandpreservation program. Unpublished Mimeograph. I-Io~ County., Maryland. Small, S.J. 1992. Preserving Family Lands: Essential Tax Strategies for the Landowner. Landowner Planning Center, Boston, MA. Waybum,.Lau~e A. 1994. "Saving the forests for the trees, and other values." The Back Forty, The Newsletter of Land Conservation Law. Vol. 4, No. 5. All educational programs conducted by Ohio State University Extension am available to clientele on a non 'd~a~nl~ basis without regard to race, color, cr~ed, religion, sexual orientation, national origin, gender, age, disability or Viemam. era vetemll status. Keith L. Smith, Associate Vice President for Ag. Adm. and Director, OSU Extension. TDD No. 800-589-8292 (Ohio only) or 614-292-1868 I 0hioline t Searc_h [ Fact Sheets[ Bulletin_sI City Manager : _- From: BraclMeiklejohn@aol.com Sent: Tuesday, October 18, 2005 11:42 AM To: City Manager; Klm Howard Cc: Keith Komelis Subject: Proposed Sale of City Wetlands to The Conservation Fund Chuck, I got your message regarding the new city council and we are comfortable with your revised schedule for responding to our offer by November 30, 2005. Please advise whether my presence is requested at any of the meetings to discuss the particulars with the Council. Sincerely, Brad Meiidejohn Alaska Representative The Conservation Fund 2727 Hiland Road Eagle River, Alaska 99577 (907) 694-9060/9070fax www,conservation fun The Conservation Fund Rated A + - The Top Environmental Non-Profit In the Nation - by the American Institute of Philanthropy Notice: This entail message, including any attachments, Is for the sole use of the recipients to whom it la addressed, and may contain Information that le proprietary, privileged and/or confidential. If you are not the Intended recipient, plss~e contact the sender by reply entail and delete the original mosMge without making any copies. If you are not the intended recipient, unauthorized review, copying, use, disclosure, or distribution Is Improper and may be subject to legal sanctions. Although this e-mall and any attachments are believed to be free of any virus or other defect that might affect any computer system into which it Is received and opened, it Is the realXNtltblllty of the recipient to en~ure that It la virus free and no responsibility Is accepted by The Conservation Fund for any loss or damage arming In anyway from its use. 10/19/2005 . ,,elis .,m' BradMeiklejohn@aol.com Sent: Friday, July 08, 2005 3:11 PM To: Keith Komelis Subject: The Conservation Fund I've attached here a two-page document about The Conservation Fund's work in Alaska. I've also mailed you several copies of our latest annual report. In addition to the projects listed in the attachment, The Conservation Fund has been active in habitat conservation along the Kenai River. Over the past 12 years we have protected approximately 1.5 miles of river frontage for wetlands and habitat protection. The specific parcel names of properties we have acquired are Grubba, Carter, Wellenstein, Mullen, Patson, and Tall Timbers. Our interest in purchasing property from the City of Kcnai is to protect these important wetlands for migratory birds, fish, and water quality. The fim~ that we have available to make these purchases stipulate that the wetlands be permanently protected. AR.er.. ~~g any property from the City of Kenai our intention is donate the lands to'an appropriate land managing entity. The Conservation Fund will not be the long-term owner and m~g~'^cr ~'~'~"~esTM lands. It is most likely that any lands acquired from the City will be dOnated to the State of Alaska for inCl~isii in the Kcnai River Special Management Area, with specific provisions that preclude development of the p~el$. _._- I also should emphasize that we are interested in purchasing any combination of parcels 1-7 that is acceptable to the City of Kenai. If folks need more information about The Conservation Fund, they are invited to visit our websit¢ at www.¢onservationf_und.o~ Sincerely, Brad Meiklejohn Alaska Representative The Conservation Fund 2727 Hiland Road Eagle River, Alaska 99577 (907) 694-9060/9070fax www.conservationfund.o~ T~he Conservation Fund Rated,4+ - The Top Environmental Non.Pro, Ca in the Nation - by the ,4merican Institute of Philanthropy Notice: This emil message, Including any attachments, ie for the sole use of the recip~ to whom it M addressed, and may contain information that is pmprietlry, privileged and/or confidential ff you are not the intended recipient, please contact the sender by reply ematl and delete the odginat message without making any copies, if you are not the intended recipient, unauthorized review, copying, use, disclosure, or distribution is improper and my be lubJect to legal sanctions. ,4Mthough this e-mail and any attachments are believed to be free of any virus or other defect that might affect any computer sysmm into which it is received and opened, It Is the responsibility of the recipient to eflsum that it is virus flee and fig responsibility Is ldmepta~l by T Conservation Fund for any loss or damage arising in Inywly from its use. 7/11/2005 Z 0 Z 0 0 0 Z ~ 5 ' m z I.l.I Suggested by: AC CITY OF KENAI ORDINANCE NO. 2131-2005 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $1,300 IN THE GENERAL FUND FOR THE STAYING CONNECTED GRANT. -- WHEREAS, the Kenai Community Library has been awarded the Staying Connected Grant from the State of Alaska; and, WHEREAS, the grant is to be used for computer hardware and software purchases; and, -_ WHEREAS, the library needs to replace a public use computer and printer. 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 $1,300.00 Increase Appropriations: Library- Small Tools $1,300.00 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of November, 2005. ATTEST: PAT PORTER, MAYOR Carol L. Freas, City Clerk Approved by Finance: (10/21/2005) hl Introduced' November 2, 2005 Adopted: November 16,2005 Effective: November 16,2005 HARDWARE AND SOFTWARE ENHANCEMENT GRANT GRANT AGREEMENT PAGE 2 Whereas, the State of Alaska has received funds from the Bill and Melinda Gates Foundation and has provided matching funds for Staying Connected grants; and Whereas, the application of the Grantee for a Staying Connected ~ant has been approved. NOW THEREFORE, for and in consideration of the mutual covenants herein contained the parties hereto agree as follows: Ao The Alaska State Library agrees to: 1. Furnish funds in the amount of $1,300. B. The Grantee Library, (insert Library Name) Kenai Community Library agrees to: 1. Abide by the conditions set forth in the application and approved by the' Alaska State Library. 2. Notify the Alaska State Library of any significant changes to the list of hardware and software' proposed on the application during the grant period. 3. Expend ~1 grant funds by June 30, 2006. 4. Submit a Final Report for the grant on October 2, 2006. 5. Maintain accurate records for auditing purposes. 6. Credit the Bill and Melinda Gates Foundation and the Alaska State Library in all publicity and advertising conceming the impact of this grant project. The source of funding for this agreement is as follows: FY2006 State Sources SL OO By accepting this award or agreement, the grantee may become subject to the audit requirements of State of Alaska Administrative code 2 AAC 45.010. As a result, the grantee may be required to provide for an audit and to permit independent auditors to have access to their records and financial statements. The grantee should consult with an independent auditor for assistance in determining audit requirements for each fiscal year. The undersigned understands and agrees to the conditions of this agreement. Note: Grant agreement MUST have both signatures For the Library: Linda McNair Prin~o'r Type Name-' , ' Signature . For the Legal Entity: Print or Type Name Signature Title Date Questions? Contact Nina Malyshev, 800-776-6566 Return form to: Staying Connected Program, Alaska State la'brary, 344 West Third Avenue, Suite 125, Anchorage, AK 99501 PLEASE PHOTOCOPY BOTH PAGES OF THIS FORM FOR YOUR RECORDS! STAYING CONNECTED GRANT PROGRAM HARDWARE AND SOFTWARE ENHANCEMENT GRANT APPLICATION PAGE 1 DUE: October 31, 2005 . Library Name: Kenai Community Library 2. Address: 163 Ma~n Street Loop City: Kenai AK Zip: 99611 ,, 3. Contact Person: Cynthia Gibson 4 Phone No: 907 253-4)78 5. Fax No: 907 283-2266 6 E-mail: cgibson@ci, kenai, ak. us 7. -Warrant MailingAddress: 163 Main Street Loop. Ko_na~ AN qq61l o List the hardware and/or software you plan to purchase with the Staying Connected grant and the estimated cost. Your purchases should add up to at least $1,300. HardWare/software Description: 1 Dell OptiPlexGX 520 PC computer and monitor 1 HP Deskjet DJ6122 Printer 1 Time Limit Mgr. 25 CPU License i TOTAL: Estimated Cost 16.1 159.95 120.00 $1420.95 , Briefly describe how this hardware and/or software will enhance public access computing in your library. The computer and printer will replace an aging computer and printer used for public word processing. Both are no longer covered by warranties. They are used on a daily basis, by the public to produce resumes, reports, letter, signs, and court documents. The Time Limit Mgr. program will promote fair and effi- cient use of our public internet access computers. Suggested by: Adrr ......... CITY OF KENAI ORDINANCE NO. 2132-2005 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $5,000 IN THE GENERAL FUND FOR A DONATION MADE BY TESORO PETROLEUM CO. TO BE USED FOR THE TOWN CLOCK. WHEREAS, Tesoro Petroleum Company has graciously donated $5,000 toward the Town Clock; and, WHEREAS, the City accepts this donation for the Town Clock project. 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 Estimated Revenues: Donations $5,000 Appropriations: Beautification- Improvements $5,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16t~ day of November 2005. ATTEST: PAT PORTER, MAYOR Carol L. Freas, City Clerk ApprOved by Finance: (10/26/2005) hl Introduced: Adopted: Effective: November 2, 2005 November 16, 2005 November 16, 2005 KENAI. ALASKA 210 Fidalgo Avenue, Kenai, Alasi~a uu~'~ '~- / / ~ Telephone- (907) 283-7535 / Fax: (907) 283-3014 www. ci.kenai.ak.us M emoranClum Date: To.' From: October 26, 2005 Charles M..Kopp, Acting City Manager ,,J,~ Kim Howard, Assistant to City Manager Assignments of Shore ~Vishery Leases- Tract 3 Shore Fishery Plat No. 71; and Tracts 5 & 6, Shore Fishery Plat No. 71 Attached is a request for approval of Assignments of Shore Fishery Leases for the above-described property from Randale Canady to Kenai Salmon Company, Inc. The leases states, "Lessee with City's prior written consent, which will not be unreasonably denied, may assign for other than collateral purposes, in whole or in part, its rights as Lessee hereunder." The City Attorney has reviewed the agreements and has no objections. The parties are current in all payments to the City and taxes to the Borough. If Council approves the transfers, Consents to Assignments of Shore Fishertj Lease agreements can be prepared for the City Manager's signature. Cc: Randale Canady Attachments Randy Canady P.O Box 987 Kenai, Alaska 99611 907-283-5810 :October 17, 2005 City of Kenai 210 Fidalgo Avenue Kenai Alaska 99611 City Council Members' CITY OF K EN~---'~~~ 'lO,~ I, Randy Canady, pursuant to Section D. 3, request the City to allow transfer of my city leases Shore Fishery 71, Tract 3, 5, and 6 to Kenai Salmon Company, James N. Butler, III, President, P.O. Box 191, Kenai, Alaska 99611. I understand this will need to be scheduled for approval at a City Council meeting in the future. Enclosed are draft Assignments of Shore Fishery Leases for Tracts 3, 5 and 6. Sincerely, Randy Canady ASSIGNMENT OF SHORE FISHERY LEASE This assignment is entered into between RANDALE CANADY, whose address is P.O. Box 987, Kenai. Alaska 99611 (Assignor) and Kenai Salmon Company, James N. Butler, III, President whose address is P.O. Box 191 Kenai Alaska 99611 (Assignee). Assignor does hereby assign and transfer all of their interest in the leasehold estate as evidenced by that certain Shore Fishery Lease with the CITY OF KENAI as Lessor, recorded April 15, 2005, at Book 2005-002986-0, Kenai Recording District, and coveting the following- described property: Tracts 5 & 6, Shore Fishery No. 71 to Assignee to have and to hold the same from the date hereof, for and during all of the remainder yet to come of the term of said Shore Fishery Lease. Assignee agrees to comply fully with all the terms and provisions of the Lease, and to hold the Assignor harmless from any liability arising thereunder. IN WITNESS WHEREOF, the said Assignors have hereunto set their hand and seal this day of 0~../o6~/' ,2005. ASSIGNOR: RANDALE CANADY ASSIGNEE' Assignment of Shore Fishery Lease- Page 1 of 3 By: Randale Canady Title (If Assignee is a Corporation) ?~me ' Title STATE OF ALASKA THIRD JUDICIAL DISTRICT ) )ss ) THIS IS TO CERTIFy that on this ,~ ;;q-day of d~,~J~;', 2005, RANDALE CANADY, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument. Notary Public for Alaska / My Commission Expires: "~/,~d/"~~aer/" STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) ~~ 2~' , being personally known to me or having produced s~fsfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument.. ' , ~~-~' , . ' ',...v~,~ , Notary Public for Alaska / My Commission Expires: / / Assignment of Shore Fishery Lease - Page 2 of 3 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) (Z..27c/THISIS TO CERTIFY that on this /""/f~ay of~. ~Sf ,2005, /d'-~~ (Name) ']W//g.~ .~o-/.5~ (Title) of 5/,~k"~2. ~-50.~~ /f~y2'/~gg.~/,×. , being personally known to me or having prbduced satisfactory evidence ofidentification, appeared before me and acknowledged the voluntary, and authorized execution of the foregoing instrument on behalf of said corporation. Notary Public for Ala~a / My Commission Expires: / / Remm to: City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 Assignment of Shore Fishery Lease- Page 3 of 3 ASSIGNMENT OF SHORE FISHERY LEASE This assignment is entered into between RANDALE CANADY, whose address is P.O. Box 987, Kenai. Alaska 99611 (Assignor) and Kenai Salmon Company, James N. Butler, III, President whose address is P.O. Box 191 Kenai Alaska 99611 (Assignee). Assignor does hereby assign and transfer all of their interest in the leasehold estate as evidenced by that certain Shore Fishery Lease with the CITY OF KENAI as Lessor, recorded April 25, 1996, at Book 483, Page 326, Kenai Recording District, and covering the following- described property: Tract 3, Shore Fishery No. 71 to Assignee to have and to hold the same from the date hereof, for and during all of the remainder yet to come of the term of said Shore Fishery Lease. Assignee agrees to comply fully with all the terms and provisions of the Lease, and to hold the Assignor harmless from any liability arising thereunder. IN WITNESS WHEREOF, the said Assignors have hereunto set their hand and seal this [ ~ day of ~~/O [deft ,2005. ASSIGNOR: RANDY CANADY ASSIGNEE: Assignment of Shore Fishery Lease- Page 1 of 3 By: Randale Canady By: Title (If Assignee is a Corporation) ATTEST' Title STATE OF ALASKA THIRD JUDICIAL DISTRICT ) )ss ) THIS IS TO CERTIFY that on this ,~d F/day of ~ , 2005, RANDALE CANADY, being personally known to me or having produced satisfactory, evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument. Notary Public for Alaska - / My Commission Expires: 7/'~,/'~~' STATE OF ALASKA THIRD JUDICIAL DISTRICT ) )ss ) _.Qt~.~,t~THIS IS.TO CERTIFY that on this /"].--~ day of (~/~.~ 2005, , being personally known to me or having produced ~tisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument. ~~:~~.~ ~5~~~- Notary Public for Alask,q / My Commission Expires: Assignment of Shore Fishery Lease- Page 2 of 3 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) -- THIS S T CE;,RTIFY that on this Z~'da of f~)~4-- 9005 ~ .)t~. ~~. ~ (Name) ~ff_.e~~~-Z" (Z~tle) of g~~~2 ~~~~ ~~~ , being personally ~own to me or having produced satisfacto~ ex idence o~dentifitation, appeared before me ~d ac~owledged the volunt~ and authohzed execution of the foregoing instrument on behalf 0f said~oration. ... ~ot~ Public forAlaska ~/~ My C;mmission Expires: ~~/~~ / / Remm to: City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 Assignment of Shore Fisher3.' Lease- Page 3 of 3 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone- (907) 283-7535 / Fax' (907) 283-3014 www. ci.kenai.ak.us KENAI, ALASKA Memorandum Date: October 27, 2005 Charles M. Kopp, Acting City Manager ~.1// Kim Howard, Assistant to the City Manager Lot 7, Block 2, Fidalgo Commercial Center, Assignment/Amendment of Lease- Commercial Development to William Borchardt Josef F. Boehm and Ronald J. Segers d/b/a Commercial Development are in the process of selling the former AIH building on Willow Street. They also lease the adjacent parking lot property from the City. Mr. Segers is transferring his interest to Mr. Boehm who in turn wishes to assign the lease to William Borchardt for an Arctic Office Products store. The lease states it cannot be assigned without the written consent of the City, which shall be obtained by the following procedure: (a) (b) Submittal to, and approval off proposed lease transfer by the Kenai Planning Commission. After approval by the Kenai Planning Commission, final approval of transfer by the City Council. The purpose for which this lease was issued in 1978 was a retail fabric center. A building has never been constructed and a development schedule was not incorporated into the lease. Substantial improvements have been made to the lot. There are 72 years remaining in the term of the lease. The lease could be amended to change the use to what is allowed in the Zoning Code. The property is currently zoned General Commercial. Also, the insurance required in the lease is inadequate. As thc older leases have come up for assignment, we have been requiting an amendment updating the insurance requirements. The assignments of the lease should be contingent upon the new lessee agreeing to amend the lease to incorporate new insurance requirements. The parties are current in payments to the City and Borough. The City Attorney has reviewed thc documents and has no objections. At their October 26th meeting, the Planning and Zoning Commission recommended approval along with changing the use and revising the insurance requirements. If Council approves the assignments as recommended by the Commission, an' amendment will be prepared for your signature and the consents can be executed. Attachments Cc: William Borchardt ASSIGNMENT OF LEASE THIS ASSIGNMENT, made this day of . , 2005, by JOSEF F. BOEHM and RONALD J. SEGERS, d/b/a. COMMERCIAL DEVELOPMENT, of .~ ~'~"~ , hereinafter referred collectively to. Assignor, and JOSEF 'F. BOEHM, of ~~3~ ~~D~~ .. ~'~ .. g~o~ , hereinafter referred to as Assignee. For Ten Dollars ($10.00) and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor hereby assigns to Assignee, a Lease described as follows: That certain Lease wherein CITY OF KENAI is Lessor, and ROBERT L. BORGEN is Lessee, recorded March 20, 1978, in Book 122 at Page 231, for a term of 99 years, and Consent to Sublease or Assignment to Josef F. Boehm and Ronald J. Segers, d/b/a Commercial Development, recorded on December 21, 1984, in Book 253 at Page 120, Amendment to Lease recorded on January 20, 1985, in Book 254 at Page 996, and Amendment to Lease, recorded on May 3, 1988, in Book 327 at Page 66, and Amendment to Lease to Commercial Development, recorded on October 20, 1992, in Book 407 at Page 348, demising premises described as: Lot 7, Block 2, Fidalgo Commercial Center, according to the official plat thereof, filed under Plat Number K-1587, Records of the Kenai Recording District, Third Judicial District, State of Alaska. TO HAVE AND TO HOLD the same unto the Assignee, his heirs, successors, transferees and assigns, from the date hereof for the rest of the initial term mentioned in the Lease, and any subsequent extensions or renewals thereof, which Assignee hereby expressly agrees to assume and pay, and to faithfully perform all of the covenants, stipulations and agreements contained therein. Assignee hereby acknowledges receipt of a copy of the above described Lease and any amendments thereto. Page i of 3 FRANCIS J. NOSF. K. Ja.. A Professiofuf ~ 310 lC Su~,% Suits 601, Anchrap, Alash 995O1 (~ ~2602 appeared RONALD J. SEGERS, who is known to me and to me known to be the person named in and who executed the above and foregoing, and he acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal. /~ ~ %%~k~.~.~%%'' .(.~6;",~ Ndtary-P~l~'c in 'and for Alaska .. ~...~~' CQ.NSENT TO ASSIGNMENT The CITY OF KENAI, hereby consents to and approves the foregoing Assignment of Lease. Any notice required to be given to Lessee pursuant to the assigned Lease shall be given to JOSEF F. BOEHM at , DATED this day of , 2005. CITY OF KENAI By Title Page 3 of 3 IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year hereinabove first written. ASS I GNOR: '~ JOSEF '~. SO~,/ d/5/a ~ommercial Development~~ and through his Attorney-in-Fact, ASS I GNEE: RONALD J. SF~ERS,-d/b/a C~mm'~rCia1 Development ~F ~.~Q~_~_~, by a 4~hrough hi~ At torney- i ff'~F~ct, STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) . n the /N'? day of /f,~':¢~-{~-~-~' ' THIS IS TO CERTI.FY t_h__a~t _o.4,ned_ Ot~ry Publ~C- pers.ona!.ly ~nn~ before me .tn~ .,unue~-~ known to me to ue t.ne appeared, commerc i al person whose nam --- d/b/a attorney- in- fact of JOSEF F. BOEHM, Development, as Assignor, and JOSEF F. BOEHM, individually, as Assignee and acknowledged to me that (s)he subscribed the name of JOSEF F. BOEHM thereto as principal and his/her own name as attorney-in-fact, for the uses and purposes therein mentioned. WITNESS my hand and official seal. /I;;;; I' ~'.';: ' STATE OF AI~KA ) ) ss. THIRD JUDICIAL DISTRICT ) ~,%u~ THIS IS TO CERTIFY that on the ~ day of C,k ---~- ' 2005, before me the undersigned Notary Pub~-~ personally Page 2 of 3 ASSIGNMENT OF LEAS THIS ASSIGNMENT, made this day of 2005, by .JOSEF F BOEHM~. of 6~7'~', /0d~.~/;~~/ ~/~;~7~ /~,3 -' ~ ZOo, /F~3 ~t'ID~'~ ~ ~*:- ~ ~-O-~-- . =~, hereinafter referred ~' ~S Assignor, and WILLIAM A. BORCHARD, of to as Assig~e~. ' ...... hereinafter referred For Ten Dollars ($10.00) and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Assignor hereby assigns to Assignee, a Lease described as follows: That certain Lease wherein CITY OF KENAI is Lessor, and ROBERT L. BORGEN is Lessee, recorded March 20, 1978, in Book 122 at Page 231, for a term of 99 years, and Consent to Sublease or Assignment to Josef F. Boehm and Ronald J. Segers, d/b/a Commercial Development, recorded on December 21, 1984, in Book 253 at Page 120, Amendment to Lease recorded on January 20, 1985, in Book 254 at Page 996, and Amendment to Lease, recorded on May 3, 1988, in Book 327 at Page 66, and Amendment to Lease to Commercial Development, recorded on October 20, 1992, in Book 407 at Page 348, and further assigned to JOSEF F. BOEHM, by Assignment of Lease recorded ., 2005, as Serial Number , demising premises d~SCribed as Lot 7, Block 2, Fidalgo Commercial Center, according to the official plat thereof, filed under Plat Number K-1587, Records of the Kenai Recording District, Third Judicial District, State of Alaska. TO HAVE AND TO HOLD the same unto the Assignee, his heirs, successors, transferees and assigns, from the date hereof for the rest of the initial term mentioned in the Lease, and any subsequent extensions or renewals thereof, which Assignee hereby expressly agrees to assume and pay, and to faithfully perform all of the covenants, stipulations and agreements contained therein. Page 1 of 3 I:RANCI~ J. NOSSK. JRt, A Pro;enionm Corpouom 310 K Sams, Sulm 601. Ancborqe, Ahska ~01 (907) 2'74-2602 Assignee hereby acknowledges receipu of a copy of the above described Lease and any amendments thereto. IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year hereinabove first written· ASSIGNOR: · ~,/ y ahd through hi~ Attorney-in~a~t' Dan K. Coffey ASS IGNEE: WILLIAM A. BORCHARD STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the ~-Q day of [, 2005, before me the undersigned ~Ndtary Publ-i~ personally appeared DAN K. COFFEY, known to me to be the person whose name is subscribed to the within instrument as the attorney-in-fact of JOSEF F. BOEHM, and acknowledged to me that he subscribed the name of JOSEF F. BOEHM thereto as principal and his own name as attorney-in-fact, for the uses and purposes therein mentioned. WITNESS my hand and official seal~ - i i~ in and for Alaska My Commission--expires: :.~/. -~ (~',//'0 ( ,, _ STATE OF ALASKA THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that on the day of 2005, before me the undersigned 'Notary PubliC' "personally appeared WILLIAM A. BORC~, who is known to me and to me known to be the person named in and who executed the above and Page 2 of 3 foregoing, and he acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal. Notary Public in and for Alaska My Commission expires: CQNSENT TO ASSIGNMENT The CITY OF KENAI, hereby consents to and approves the foregoing Assignment of Lease. Any notice required to be given to Lessee pursuant to the assigned Lease shall be given to WILLIAM A. BORCHARD at · DATED this . day of ..... 2005. CITY OF KENAI By Title Page 3 of 3 City of Kenai Mini-Grant Overview / Procedures Purpose: Together We Can.t provides funding in the form of mini-grants for residents, school programs and organizations to use for projects that will have an immediate, positive, and long-lasting effect for their neighborhoods and the city of Kenai. Mini-grant~ are intended to provide start up funding for small innovative project within the City of Kenai. Our goal is for families, neighbors and all members of Kenai to work together to build healthier neighborhoods, help kids succeed in school and improve the quality of life for all residents. Who May Apply: Youth, neighborhood groups, organizations, and individuals who have a desire to improve the quality of life in their community. How To Apply' Complete a Together We Can/Mini-grant application. .election: Grant recipients will be chosen by the steering committee, appointed by the Coun-~ I ¢il. The steering committee will include the Mayor, Kenai Economic Development member, [~ne representative each from Kenai Central High School and the Chamber of Commerce..~ .Funding: The City of Kenai will provide fund~ in their 2005/2006 legislative budget for dis- tribution. The maximum grant amount the committee may award is $500. Grants larger than $500 must be approved by the city council. Review' Upon completion of project a report must be filed with the Together We Can! steer- ing committee and the report will be submitted to the City Council explaining how the funds were ~pent and the outcome of the project. Procedures: Applications are submitted to the City of Kenai Together We Can! Steering committee for review. (Students' application must be signed/approved by teacher.) Upon approval of application and execution of Letter of Agreement, 90% of grant fund~ will be i~ned through City'~ Finance Dept. Report will be given to Council of awarded projeet~. Written report mn~t be ~ubmitted to the ~teering committee within 30 days of completion of the project. Council will pre~ent a proclamation at the end of the project/financial report~. Awards: Projects most likely to receive funding are those that benefit the community/neighborhoods most. This includes project~ that create the mo~t visible and la,ting change. Page I o fl KENAI. ALASKA City of Kenai Mini-Grant Application FY05/06 Grant Cycle (July 1, 2005--June 30, 2006) Grant number: Date received. Applicant: Applicant A~idress. Date: ,, Phone: Contact Person: ' Project Title: Project Start/End Dates' Total Project Cost: $ Please check: E-mail Address: Phone: Amount Requested' $ 501(c)(3) Non-profit Org EIN#: (New grantees should attach copy 'of their IRS Letter of Determination.) Society/Group~ [~ Individual~ ~There may be a tax liability for grant awards to non-exempt entities. 1. Provide a brief description of your organization, society, group, entity, summarizing your mis- sion, goals and objectives. For an individual, describe your involvement in the community and your experience/expertise as it relates to this project. (Attach separate sheet, if necessary.) 2. Describe the project for which you are requesting funding. Include a project timeline and an explanation of how the project will benefit the community. (Attach separate sheet, if necessary. Page 1 of 3 KENAI, ALASKA City of Kenai Mini-Grant Application ® Please complete a simple budget for this project. Grants over $500 must be approved by the City Council. ITEM (Material or service needed to complete your project.) COST (Estimated cost of the items.) STORE OR SUPPLIER* (Where you will purchase this item or service.) Total grant request: $ *The City requests materials bought with City grant funds be purchased within the City of Kenai, if possible. 4. How will you know if your project is successful? Page 2 of' 3 KENAI, ALASKA City of Kenai Mini-Grant Application 5. Have you received a City of Kenai Mini-Grant before? [~ Yes If yes, most current award- Project title' Project dates Amount of grant: $ [~ No Compliance with Letter of Agreement? [~] Yes ~ No (If no, attach a current status of your project.) I CERTIFY THAT THE INFORMATION CONTAINED IN THIS APPLICATION, INCLUD- ING ALL ATTACHMENTS AND SUPPORTING MATERIAL, IS TRUE AND CORRECT. I UNDERSTAND THAT THE GRANT FUNDS, IF GRANTED WILL BE USED ONLY FOR THE PROJECT OR PURPOSE DESCRIBED IN THIS APPLICATION. I UNDERSTAND THAT 90% OF THE FUNDS APPROVED WILL BE PROVIDED IN ADVANCE. THE BAL- ANCE WILL BE PAID AT THE COMPLETION OF THE PROJECT AND REPORT FILED WITH THE STEERING COMMITTEE. SIGNATORY MUST BE AN AUTHORIZED OFFI- CER FOR AN ORGANIZATION, BUILDING PRINCIPAL FOR A SCHOOL. STUDENT AP- PLICATION MUST ALSO BE SIGNED/APPROVED BY A TEACHER. Applicant Signature- (print): Title · Date (if applicable) Approval Signature: (print) · Title · (if applicable) Return this form to the City of Kenai, 210 Fidalgo, Kenai, Alaska 99611 Page 3 of 3 KENAI. ALASKA City of Kenai Mini-Grant Letter of Agreement Grant number: Funding Recipient Name: Project Name: Date of Funding. The City of Kenai is pleased to award funding for a mini-grant in the amount of $, . Payment of 90% of the total will be made upon receipt of this signed letter of agreement. Recipient agrees to the following: 1. To use mini-grant funds only for the project or purpose described in the mini-grant ap- plication. 2. To submit a Mini-Grant Report Form within 30 days of completion of the project. 3. To' 'Comply with the terms and conditions of the mini-grant award. 4. To Submit expense receipts using the Mini-Grant Report Form for purchases made with mini-grant funds. Additional Terms and Conditions. 0 0 RECIPIENT CITY OF KENAI (print_, _ iprint) Date: Date: Page Iofl ~/~ ~/~ KENAI, ALASKA Name of Group/Individual Contact Name Mailing Address Phone City of Kenai Mini-Grant Report Form Due within 30 days of completion Grant Number: E-mail Alaska 1. Describe the completed project. Attach photo and documentation. 2. How did you use the grant funds? 3. How successful was your project? 4. Who assisted with your project? Statement: Following submittal of the brief written report and all expense receipts being turned in to the City of Kenai's Together We Can! steering committee, the final grant (10%) will be paid. Signature (print) ..... Date Page I of l Return this form/receipts to · City of Kenai 210 Fidalgo Street Kenai, Alaska 99611 ~,~,,,/' KENAI. ALASKA TO: FROM: DATE: RE: MCCOLLUM & ALIAK FOR CITY MANAGERS REPORT TO CITY COUNCIL Charles M. Kopp, Acting City Manager Carol L. Freas, City Clerk Larry Semmens, City Finance Director Keith Komelis ~ October 19, 2005 McCoilum & Aliak Paving LID OCT I 9 The following information is for the City Managers Report as per KMC 16.10.010: PROPOSED IMPROVEMENTS AND SCOPE This project is to provide road and drainage improvements to McCollum Drive and Aliak Drive. The improvemems include engineering design and inspection, excavation, grading and backfill, leveling course, drainage improvements, asphalt paving, topsoil and seeding, and signage. .T..HE NEED,FOR THE PROPOSED IMPROVEMENTS Paving this road will decrease the road maintenance cost by eliminating dust control and summer time grading. It will also improve the drainage. ESTIMATED COST OF THE PROPOSED IMPROVEMENTS The estimated rough cost estimate for this project is $447,000. PROSPECTIVE & RECOMMENDED GRANTS If the city council decides to proceed with these proposed improvemems I' would recommend using the Municipal Matching Gram funds and the recemly received FY 2006 State Designated Legislative Grant for Kenai Road and Sewer Improvemems ($790,000). RECOMMENDED PERCENTAGE TO BE ASSESSED City Resolution No. 2003-02 states that the assessment rate will be 50%. - DESIGNATION OF THE PROPERTIES TO _lie ASSESSED Attached is "McCOLLUM AND ALIAK PROPOSED LID - August 2005" It designates the property, owners name, KPB assessmem parcel #, and both the physical street and the legal address. Also attached is a drawing of the proposed LID that shows the lot numbers, street addresses, and owner's name. o c~ ~.og .£2 N"I qOOMl,, .L ~ N_aC] ~ VA ~Jq z pop ~op CITY OF KENAI BACKGROUBD AND PERBOBAL DATA- CABD/DATE~ FOR APPO~ COlllIITTB~ ABD RRTURB TO: KENAI CITY CLERK 210 FIDAI,C~ AVENUE PHOBE: 283-7535, EXT. 231 FAX: 283-5068 Resident of th, City of Kenai? ?~ How long? / 5 L~ -~~ M. IHn~ .address _J~!~ ~.~i~l~.~ ~..n, ~1~~i, R6, qq/olt Home Telephone HomeFaxNo. ~~~... ' Bu~dnes.,'TelePhone 4o ~O¥~ Business Fax No. -ln, C~V~_~-' Email Addre~ al ~l,,~! Ili~Y'~~. May we include your contact information on our web page?~ ~f n~ 6]1, what infonna~on may we - include? EMPLO~ Job Title WHAT BACKGROUND, EXPERIENCE~ OR CREDENTIAL8 DO YOU POSSE88 TO BRING TO THE BOARD, Signa~ CITY OF KENAI BACKGROUBD AND PERSO~ DATA - CANDIDATE8 FOR A~~~dBBT CoB~nTTBZ8 AND CO~OI~ RETURN TO:. KENM CITY C3,ERK 210 FIDALGO AVEHUE PHOBE: 283-7535, EXT. 231 F~ 283~5068 ReMd.nt of th. City of KenM? ~~ How long? 1 5 C~ ~ ~aa,,,, _a!(~ ~io~ ~.n. t~v~i, fi~. qq ~11Home Telephone Home F~ No. ~~~ ' Bu'~ess' T~ephone No ~~~~ -- Bu~e~ F~ No. - ~ ~ E~ ~ ~y we ~~de yo~ ~n~ ~o~s_fion on o~ web ~e?~ , w~t ~o~fion may we ~dude? Job Title com.n-m~ oa com~s~oss m wmca ~ou ~ urrm~t~: b-, ~ ~a¢ ~ CO w'! v~a,~,oa WHAT BACKGROUND, EXPERIEN~, OR CRED~ DO YOU POSSESS TO BRING TO THE BOARD, COMMIB~iON OR COMMITTEE ~~ . _ f~ .-- ~ Signature H0¥--02--2005 02:48 PH R I'1 g, E CITY OF KENA_ "Vrllege wttb ~ p~t- City ~itA ~ frrtifm " . BACKOROITND AND PE,~OR~ DATA- CAHDI~?~ FOR APPOIBTMBBT ~0~¥1-¥~,~tr,8 AND (3OM~B~O~ .. BBTUR~ TO~ 210 rIDALGO AVEBUB KE~AI, ~ 90611 IPA]~ 283-s068 Booident of the City or Konat? Y'~ ~ _ .. Ho~ IongP ' ',~ ,~- ,,,,, ,e % ~ J. Reoidenoe Addrem WAMB or 8POUIB: P~ot oz,~~~ memborsMlm: __ , le CITY OF KENAI PLANNING & ZONING COMMISSION AGENDA CITY COUNCIL CHAMBERS October 26, 2005- 7:00 p.m. CALL TO ORDER: a. Roll Call b. Swearing in of New Commissioners c. Election of Vice Chair d. Agenda Approval e. Consent Agenda '*All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed fi'om the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. ® *APPROVAL OF MINUTES. a. *September 28, 2005 b. *October 12, 2005 3. SCHEDULED PUBLIC COMMENT: ® CONSIDERATION OF PLATS' a. PZ05-58 - Preliminary Plat- Dena'ina Point Estates - St. Augustine Addition. Plat submitted by Terry T. Eastham, P.O. Box 2891, Soldotna, Alaska. b. PZ05-59 - Preliminary Plat- Evergreen Subdivision- Webber Addition. Plat submitted by Integrity Surveys, 8195 Kcnai Spur Highway, Kcnai, Alaska. 5. PUBLIC HEARINGS. 6. OLD BUSINESS: 7. NEW BUSINESS: a. FY2006- Capital Improvement Plan b. Board of Adjustment Decision- Snow- Remand to Commission- Discussion c. Lease Application, LT, B2 Fidalgo Commercial Center, Assignment/Amendment of Lease -Commercial Development to William Borchardt- Discussion and Recommendation. 8. PENDING ITEMS: a. PZ05-16 - An application to rezone the area known as Tract C, Daubenspeck Property Subdivision, (170 Bridge Access Road), fi'om suburban residential to general ~ commercial. Application submitted by John Hammelman, Chair, Planning & Zoning Commission, City of Kenai, 210 Fidalgo Avenue, Kenai, Alaska. (Tabled) 9. CODE ENFORCEMENT: 10. REPORTS: a. City Council b. Borough Planning c. Administration 11. PERSONS PRESENT NOT SCHEDULED. 12. INFORMATION ITEMS: a. City of Kenai Building Permit Data- Third Quarter b. City of Kenai Planning & Zoning Commission Resolutions- Third Quarter c. Zoning Bulletin (9/25/05) d. Commissioner Appointments .. ¢. Planning & Zoning Roster 13. COMMISSION COMMENTS & QUESTIONS. 14. ADJOURNMENT: CITY OF KENAI PLANNING & ZONING COMMISSION CITY COUNCIL CHAMBERS OCTOBER 25, 2005 - 7:00 P.M. CHAIR JOHN HAMMEL~, PRESIDING MINUTES ITEM 1. CALL TO Ol~r~l~ Chair Hammelman called the mectin§ to order at approximately 7:00 p.m. 1-a. Roll Call Roll was confwmed as follows. Commissioners present. Commissioner absent: Others present: P. Bryson, J. Twait, N. Amen, J. Hammelman t3. Eldridge Planning & Zoning Department Assistant Carver, Public Works Manager J. La Shot, City Clerk C. Freas, and Council Member R. Ross 1-bo Sweating in of New Commissioner City Clerk Freas administered the Oath of Office to Lori S. Chase. place on the dais. Ms. Chase took her 1 'C. Election of Vice Chair Commissioner Bryson nominated Nelson Amen to be elected as Vice Chair of the Commission and Jeff Twait seconded the nomination. There were no further nominations. MOTION: Commissioner Bryson MOVED to close the nominations. VOTE: MOTION PASSED UN~~OUSLY. 1 'do Agenda Approval MOTION: Commissioner Amen MOVED for approval of the agenda as presented with the substitution of Item 4-a lay down materials addressing PZ50-58 and requested UNANIMOUS CONSENT. Commissioner Bryson SECONDED the motion. There were no objections. SO ORDERED. Consent Agenda MOTION: Commissioner Bryson MOVED to approve the consent agenda as presented and Commissioner Amen SECONDED the motion. There were no objections. SO ORDERED. ITEM 2: APPROVAL OF MINUT~ -- September 28, 2005 and October 12, 2005 -- Approved by consent agenda. ITEM 3: SCHEDULED PUBLIC COMMENT-- None. ITEM 4: CONSIDERATION OF PLATS PZ05-58- Preliminary Plat- Dena'ina Point Estates- St. Augustine Addition. Plat submitted by Terry T. Eastham, P.O. Box 2891, Soldoma, Alaska. Department Assistant Carver reviewed the staff report with the Commissioners noting: · Three plats were received to review for the subdivision. · Basically, the large parcel would be divided into smaller parcels. · The plat would also combine parcels and dedicate right-of-ways and a waterline easement. · Staff is recommending approval of the plat with its recommendations. · The property owner and surveyor were in the audience and. available for questions. · Public Works Manager La Shot attended a meeting with the owner and surveyor taking place on October 17, 2005. MOTION: Commissioner Bryson MOVED to recommend approval of PZ05-58, prehminary plat substitution for Dena'ina Point Estates. Commissioner Amen S~OI~IDED the motion. Discussion followed in which the following items were noted' · The latest plat dedicates the entire right-of-way and the city would require an Installation Agreement and would require the owner to build the access road to city standards. PLANNING & ZONING COMMISSION MEETING OCTOBER 26, 2005 PAGE 2 · Lots 1 and 3 .did not meet the minimum width of 60 feet (widths in question are 35 and 28.8 feet). Brian Lowe, 1105 Angler Drive, Kenai -- His home would be built on Lot 1 and the setback was set at the point where the lot widens over 60 feet and no building would take place in the area where it is below the required minimum similar in that any construction would be on the wider orti width. Lot 3 would be storm drain as well as the area below minimum width) p 'on of the lot (due to a 200' · Commissioner Bryson asked if it was his intent to use the section line easement to access Lot 1. Terry Eastham, Surveyor-_ Eastham stated, the process had begun to vacate both sides of the section line due to bufld/ngs already constructed in the 33 foot easement {the north side of the section line, Lot 15}; and, only the east side of the section hne common to 35 and 36 had been requested to be vacated because he had no communication with the owners of the west side. Bryson noted, his concern was whether the section line easement in Section 36 would be vacated and whether the access would only be from Rachael Avenue. He added, effectively, Lot 1 would have double frontage. Eastham stated, the only access to Lot 1 would be from Rachael Avenue. Commissioner Amen questioned the drain easement cutting through Lots 3, 4, and $. Eastham stated the easement is existing. Public Works Manager La Shot stated, the city has a large drainage culvert in the easement and goes to the bluff. VOTE: MOTION PASSED UNANIMOUSLY. Amen referred back to Item 4-a and asked if the motion for approval included the staff recommendations. Clerk Freas noted, the language of the motion did not include the staff recommendations. MOTION TO RECONSIDER: Commissioner Bryson MOVED to immediately reconsider the prior motion for PZ05-58 and Commissioner Amen ttF~ONDED the motion. VOTE: PLANNING & ZONING COMMISSION MEETING OCTOBER 26, 2005 PAGE 3 I Bryson Yes ! Eldridge Absent Chase Yes Amen Yes Twait t Yes Hammelman Yes MOTION PASSED UNANIMOUSLY. MOTION: Commissioner Bryson MOVED to approve PZ05-58 with the incorporation of staff comments and Commissioner Amen SECONDED the motion. There was no discussion on the motion. VOTE: IBryson Eldridge Yes Chase Absent Amen Yes Twait lYes Yes Hammelman Yes MOTION PASSED UNANIMOUSLY. PZ05-59 - Preliminary Plat- Evergreen Subdivision- Webber Addition. Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. Carver reported the plat would remove a property line between two lots to make one large lot which would meet all minimum lot sizes for the zone; water and sewer were noted as available; and, staff recommended approval of the plat. MOTION: Commissioner Amen MOVED for approval of PZ05-59 and Commissioner Chase SECONDED the motion. There were no public or Commission comments. VOTE: IBryson Yes Chase Yes Twait [Yes . Eldridge Absent Amen Yes Hammelman Yes MOTION PASSED UNANIMOUSLY. ITEM 5: PUBLIC HTARINGS-- None. ITEM 6: OLD BUSINF.,SS-- None. PLANNING & ZONING COMMISSION MEETING OCTOBER 26, 2005 PAGE 4 ITEM 7: NEW BUSINk'.~ 7-a. F¥2006 - Capital Improvement Plan Carver reported a copy of the Plan was included in the packet and administration was requestin§ the Commission to rev/ew the information and hr/n§ forward other projects they beheved were warranted; nomination forms were included and the project cost should be at least $25,000; and, a workshop w/th the public was scheduled for the November 9 Plannm§ & Zonin§ Comm/ssion meet/n§. La Shot added, the development of the Plan was to encoura§e more comments from commissions, committees and the public; anyone from Kena/may nora/hate a project; the nominated projects would be ranked by a committee of adm/n/stration; the list of ranked projects would be forwarded to Council for rev/ew; and, the public would have several opportunities to comment durin§ council's review. 7-b. Discussion ._ Board of Adjustment Decision- Snow Remand to Commission - Carver explained Mr. Snow's appeal was heard by the Board of Adjustment who remanded the issue back to the Commission in order for the Commission to consider whether the Snow property and adjoining properties should be rezoned to Limited Commercial. She referred to questions asked in the information included in the packet. Discussion followed and Bryson stated he oW_Ould be co. mfortable requesting staff to prepare information to provide to property wners a_na request their input. He also noted, he would only be willing to go forward with a rezone ff there was broad support from the community. Carver noted, staff would designate the area to consider rezoning {which could be enlarged), solicit comments from property owners, track responses, and submit that information to the Commission for their consideration. Consensus of the Commission was to have administration prepare information to send to the property owners, advise them of the advantages and disadvantages of a rezone to Limited Commercial, and request their input. 7-c. Discussion/Recommendation __ Lease Apphcation, L7, B2 Fidalgo Commercial Center, Assignment/Amendment of Lease-Commercial Development to William Borchardt. Carver reviewed the information included in the packet, noting the lease application was submitted for Lot 7, Block 2 Fidalgo Commercial Center and identified it as the empty lot adjacent to the old AIH Building along Willow Street. It was a/so noted, the original lease identified the lot to be used for a retail fabric store, but the building was PLANNING & ZONING COMMISSION MEETING OCTOBER 26, 2005 PAGE 5 never constructed. The lease amendment would bring the lease requirements up to date, etc. Carver added, it was her understanding the old AIH building would be renovated and house an Arctic Office Supplies store and Lot 7 would be used for parking. Based on comments of concern by Commission members, La Shot noted administration would be checking site plans, etc. to be sure adequate parking spaces would be available. MOTION: Commissioner Bryson MOVED to recommend approval of the assignment and amendment of the existing lease for Lot 7, Block 2, Fidalgo Commercial Center. Commissioner Chase SECONDED the motion. VOTE: BrYson [Yes Chase [Yes Twa_it lYes Eldridge Absent Amen Yes Hamme!man Yes MOTION PASSED UNANIMOUSLY. ITEM 8: PENDING ITEMS PZ05-16 - An application to rezone the area known as Tract C, Daubenspeck Property Subdivision, ( 170 Bridge Access Road), from suburban residential to general commercial. Application submitted by John Hammelman, Chair, Planning & Zoning Commission, City of Kenai, 210 Fidalgo Avenue, Kenai, Alaska. (Tabled) ITEM 9: CODE ENFORCEMENT-- None. ITEM 10: REPORTS 10-a. City Council -- Council Member Ross reported the October 19, 2005 Council Meeting action agenda was included in the packet. He noted, the Commission directing admin/stration in the area of the Limited Commercial Zone was well within the intent of the remand of the issue by council. He added he would be interested in the responses received and appreciated the effort by the Co~rnission to acquire the input from property owners. A brief discussion took place related to the newspaper article announcement of the Wal-Mart lease application. Ross noted, there were no secret discussions as suggeated by the article; he was aware public information was requested from the Planning Department by a developer, however Wal-Mart did not make the contact; and, the lease application was standard and nothing special to it. PLANNING & ZONING COMMISSION MEETING OCTOBER 26, 2005 PAGE 6 10-b. Borough Planning -- Bryson reported on actions taken at the October 10 and 24, 2005 meet/n§s and noted, the meetin§ agendas were included in the packet. 10-c. Administration-_ Carver reported the following: · · meeting. scheduled. A new Code Enforcement Officer was hired. City Planner Kebschull would be in attendance at the next Commission Another work session following the meeting would probably be ITEM 11' ITEM 12- 12-a. 12-b. 12-c. 12-d. 12-e. PERSONS PRE~ENT NOT SCHEDULED __ None. INFORMATION ITEM._= City of Kenai Building Permit Data- Third Quarter City of Kenai Planning & Zoning Commission Resolutions - Third Quarter Zoning Bulletin (9/25 / 05) Commissioner Appointments Planmng & Zoning Roster ITEM 13: The Commissioners welcomed Ms. Chase to the Commission. ITEM 14_.' ~ADJOURNMENT MOTION: Commissioner Bryson MOVED for adjournment and Commissioner Amen SECOI~ED the motion. There were no objections. I/IO ORDERED. The meeting adjourned at approximately 7'53 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk PLANNING & ZONING COMMISSION MEETING OCTOBER 26, 2005 PAGE 7 A~PROVED BY COUNCIL CITY OF KENAi "Village with a past -- City with a fub BACKGROUND AND PERSONAL DATA- CANDIDATES FOR APPOINTMENT COMMITTEES AND COMMISSIONS DATE: 'l~ ~ ~ ~T ~ NAME: ~Y/~N C. L/~wFENo6 Resident of the City of Kenai? How long? Residence Address l='eF, ecT Mailing Address ..... Home Telephone No. Home Fax No. ~ Business Telephone No. Business Fax No. ~-~'~ - O~ 4-~ Email Address' EMPLOYER' kl;~udcr ~ Cz~¢, ~,/ NAME OF SPOUSE' [--~-.¢ L I ~ PEO~f 6AY, Membership in organizations: , ]i~~~ .~ ~OO~ 'TO Job Title Past organizational memberships: ...... COMMITTEES OR COMMISSIONS IN WHICH YOU ARE INTERESTED WHY DO YOU WANT TO BE INVOLVED WITH THIS COMMISSION OR COMMITTEE http://www, ci.kenai.ak.us/commissions/commissionapplication.htm 9/21/2005 Commission Application Page 2 of 2 WHAT BACKGROUND. EXPERIENCE. OR CREDENTIALS DO YOU POSSESS TO BRING TO THE BOARD. COMMISSION OR COMMITTEE MEMBERSHIP? } ,~10¢-~ ~. ~ ~1~~ Signature Return to City Clerk, 210 Fidalgo Avenue, Suite 200 283-3014 (fax), 283-7535, ext. 231 (phone) http://www, ci.kenai.ak.us/commissions/commissionapplication.htm 9/21/2005 Mr. Ricky Gease KRSA 224 Kenai Ave, Ste 102 Soldoma, AK 99669 October 24, 2005 Dear Rick'y, The Alaska Charter Association would appreciate it if the Soldotna Ci~, Co,,.mci! ~d Ch~nber ~.d *3e Ken~ Ci~, Co,,mci and Chamber took a position against the Halibut Chm-ter IFQ proposal. Thank you, Donna C. Bondioli PO Box 66 Homer, AK 99603 907-23 5-4114 ashtikan~ptialaska, net 3onna Bondioli ?resident of Homer Chamber of Commerce .)artner in a Charter Business ~laska Charter Association )O Box 66 :Iomer AK 99603 3'07-235-4 i i 4 tshtikan~ptialaska, net )ctober 5, 2005 )PPOSING THE HALIBUT CHARTER IFQ I'm Donna Bondioli, Presidem of the Homer Chamber of Commerce, Charter partner md member of Alaska Charter Association. The Homer Chamber of Commerce, Homer 2ity Council, Kodiak Convention and Visitors Bureau Valdez City Council, Whittier '~hamber of Commerce, Whittier City Council, Gustavus City Council, Sitka Chamber of ~'ommeree and Sitka Visitors Center~ have all written resolutions or letters in o~osition o the Halibut Charter IFQ because of the potential negative effects on the local' ~conomy. takutat's resolutions are forthcoming. The Alaska Travel Industry Association surveyed heir members in May and 60% of the respondents were personally opposed to the IFQ. ~t the Anchorage Sportsman Show, 584 Alaskans signed a petition against the ~Q ~roposal. An additional 103 Alaskams signed letters in opposition to the IFQ. ;7% of the visitor inquiries to Homer Chamber of Commerce over the past 14 months tare specifically requested information on fishing and 27% for activ/ties wkich includes ishing. Halibm Fishing is the maimtre~m of o,,~ ~,,,,,-,,,._~.~.~ in Homer- ~......~ r,~.~ ~...~, ..~* is "The talibut Capital of the World". Our Halibut Derby nets about $70,000 a year for our .'hamber of Commerce. :he ADF&G website lists 88 Gu/de businesses in Homer through October 31, 2004. .)nly 31 of them would fully qualify, 27 businesses would get partial IFQ, 9 are unknown ,usmesses and the others would not qualify and would have to purchase quota to ; ,~ ~*.~.,~.4,,, ~... ~*~ range ~,,,wa,..,.,,,, ,,.,,,.~. Consen'ative ~o,.m,,,.s ~ cost of. ,oats taking only 187 clients per year to $456,000 for boats taking 600 clients a year- alculated from Fish and Game estimates at a 19 lb average for a fish and paying $15-$20 > for quota. With the slim profit margin of charters, most skippers (unless they are fully .ualified), will not be able to borrow $200-400,000 to purchase quota. One Homer ;harter skipper,, who took over 635 ¢lients~ shared his Profit and Loss sheet from 2004, [e grossed $125,000 and paid out $33,000 in fuel for 112 trips. Note that without epreciation expense, and interest only, no principle, on his boat payment, this sk/pper etted about $17,000. 1998 and 1998 were his building years so he estimates he would et about 40% quota, it would acmaily cost him about $400,000 to continue business. lased on his profit and loss sheet, would you loan him $400,000 to stay in business 'his skipper falls in that category 6f 27 businesses who would partially qualify, but robably not stay in business. If 30-50% of our Charters go out of business, Homer's economy would suffer because of its dependence on tourism. The skipper described above directly spent $108,000 for business expenses, most of it in Homer. Ed Hay, one of our clients, planned his vacation around their Halibut fishing trip in Homer. From July 6th through the 18th this couple spent $ !0,! ~2.00 on their ~ip in A!ast-~. ,~X least 6 other fishe.,,m, en have s'ent~, the Nort~ Council letters showing that their expenditures ranged from $3500.00 to $10,000.00 in ~ae Homer area. This is an economic engine for our area. if only 6~% of this skipper's clients spent $5,000, the economy would benefit by almost 2 million dollars. The American Sport-fishing Association 2003 State Overview shows that the Multiplier effect of Saltwater Sportfishing ha Alaska was almost $400 million dollars, ,., ge, 1.1. 1.,.;11;,.,.,., ,-t,11o.., fur ,11 q--~e.h;,,,, ' a, 1,,.1,,., Pl,~,.,~.,~ ,-,,-,,.,,.;,.,h~,-+1.,,~ ,~,-,,-~~.;,.,, ~ the communities as per the Magnuson Stevens Act and increased recreational fishing opportunities per Executive Order 12962 and rescind the Halibut Charter IFQ. ~z~.~_,incerely' Donna' C. Bondioli GEDFI 90'7 GREATER SITKA CHAMBER OF COM3qcERCE A RESOLUTION OF THE GREATER SITKA CHAMBER OF COMMFKCE OPPOSING THE ['N~G~TION OF THE HALIBUT CHARTER FIS~RY INTO THE EXIS77NG CO~RCIAL IFQ SYSTEM. WH~]~dSAS, the Gr~tex Sitka Cham~ of C~mmeree values alt busine~se.s equally and supports all fishery gear groups including the sport fishing industry, and WHEILEAS. the sport halibut chaser indu,,-try is an important part of Sitl~'s ccozxamy, mad WHEREAS, th~ propoae~l Hnlibut Charter WQ plan is not based on any biological m~. and WHEREAS, thc proposed rule to integrme the sport halibm c~rs into thc commexeial IFQ system would transfer a public resou.rw into private sector ownersh~, am5 %~:.REAS, tim proposed charter IFQ plan ~ll not moct thc nced.$ of the cxisKag fleet. Industry estimates ahow thc plan will only mc-ct the potential nora:la of abo~ 125 (one-hundacd and twenW-five) full fixne six pack charter boats in all of SE Alaska ha 2004, them were appmximamly 600 (six- hundr~) six-pack chan~ boats r~gi~ in SE Ala~,~ka. of which approximately 300 (three hundred) were considered full time, and Wi-fE~, the implcmcmation and alloc~on of Hah'buz Charier IFQ will si~o~ficamJ_ y reduce the number of charier operators in Sitlca, thereby reducing tourism revenue and taxable eami~ proportionately within our community, and WHEREAS, catch and e~'ort statisxi~ ~om the International P~ific Halibut Commisaion and aport rising [icenae sale~ r~.ords from the State of Alaska Dcpartm~ of Fish and Oam~ show that the gro~ in the sport halibut fimh~y is flat or has incrraaed 1~ ~n 1% per year. and WHEREAS, thc negative impacts ~ from thc implementation of the Hah'b~ ~ IFQ wild have a damaging effect ma the m=onomic health of Sitka, inc2~ din~r fman~ losses to port and harbors, business tax revenues, and satgllitc busincssea ~dcnt on a heal~ fleet. NOW THEREFORE BE IT RF.3OLVED, tl~ Cagamr Sitka Ctmmbcr of Commc~ is opposed to thc proposed Chamx IFQ ma~gcmcnt plan tmfil thc scientific ncc. garry of this ty~ of management system is demonstrated and the full economic impact on th~ community caa be det~ and BE IT FUR~ER RESOLVED, when an area n~As managememt for the conservation of the hafibut resource, we encourage that community to mm to ~ Area Manag~ Plans (LAMPS) in order to address thc tmiqu~ situation of chat particui~ fleet. PASSED and ADOPTED this 9th day of March. 2005 by thc Carater Sit~ Chamber of Commerce Greater Sitka Chamber of Commerce September 27, 2005 Step ~hanie Mmdsen, C.._hair North Pacific Fishery Management Council 605 W. 4t~ Ave. Ste 306 Anchorage, AK'99501-2252 Dear Ms Madsen, The Homer Chamber of Commerce is against the proposed Halibut Charter IFQ plan due to the potential negative economic impact it could have to the local economy of Homer, Alaska~ As Chair of the Council, I liope you can understand' our organizatioffs concern regarding government action The Homer Chamber of Commerce expects responsible managemem of the halibut charter fishery for the furore economic health of our community. Please conduct an economic impact study before ~p!emem/ng {t~ plan; or ~m/der anott~ form of ~ 'utai~.-~uoutd-~v. te~ of~-. Thank you for your attention to this critical matter. $ineer. e~y, Derotha Ferraro Executive Director Homer Chamber of Commerce PO Box 541, 20:[ Sterling Highway, Homer AK 99603 (907) 235-7740 (907) 235-8766 www. homeralaska.org · Gre.ater Whittier Chamber of Commerce 2005 P.O. Box 607 Whittier, Alaska 99693 Honorable Carlos M Gutierrez Secretary of Co.mmerce U.S. Department of Commerce R.oom 5516 14 and Constitution. Ave. NW Washington, DC 20230 Dear Secretary Gutierrez, The Greater Whittier Chamber of Commerce is against 'the proposed Halibut Charter IFQ plan .due to the potential negative economic impact it could have to the local economy of Whither, Alaska. As Secretary of Commerce, you certainly can'understand our. organization's concern regarding government action, that'negatively impacts fl~e economy. The Greater Wlfittier Chamber of Commerce expects responsible management of the. halibut charter fishery for the future .economic health of our community. Please conduct an economic impact study before implementing this' plan,, .or consider another form of management that w.ould have less. of an impact. Thank you for your attention, to this cr/tical matter. Sincerely, Fete Heddell,- President ' ..Cc: NPFMC Chair NMFS Senator Stevens Senator Murkowski President Bush GatevoaF to Prince William Sound ' 'IC¢-Frde Deep ~laier Port CITY OF WHITTIER, ALASKA RESOLUTION #774-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WHITTIER, ALASKA OPPOSING INTEGRATION OF THE HALIBUT CHARTER FISHERY INTO THE EXISTING COMMERCIAL IFQ SYSTEM. WHEREAS, the sport halibut charter is an important part of the growth of the tourism industry in the City of Whittier; and WHEREAS, the proposed Halibut Charter IFQ plan is not based on any biological need; and WHEREAS, the proposed role to integrate the sport halibut charters in the commercial IFQ system transfers ownership of a resource to the private sector that traditionally belonged to the public; and WHEREAS, encouraging new entrants in the charter business in mm encourages competition and diversity in the fleet; and WHEREAS, the implementation and allocation of the Halibut Charter IFQ will significantly reduce the number of charter operators in Whittier, thereby reducing tourism revenue and taxable earnings proportionately within our community; and WI-IE~AS, the proposed management plan will not meet the needs of the current fleet. Industry estimates show the proposal will only satisfy the needs of 160 six Packs' for Area 3-A, which includes Whittier, Homer, Kodiak, Seward, Ninilchik and Valdez; and WHEREAS, catch and effort statistics from the International Pacific Halibut Commission and sport fishing license sales records from the State of Alaska Department of Fish and Game show that the growth in the sport halibut fishery is flat or has increased less than 1% per year; and WHEREAS, The Whittier Chamber of Commerce is in opposition to current Charter IFQ management plans until such time an economic impact on the community can be completed; and WHEREAS, The City is well positioned to maintain and become further involved in the development of the tourism industry due to its long history with the industry, strong membership in the Chamber of Commerce, outstanding port and harbor facilities, diverse tourism infrastructure, and location on the National Highway System; and WHEREAS, the negative financial impacts resulting from the implementation of the Halibut Charter IFQ will have a damaging effect on the economic infrastructure of Whittier. including direct losses to Port and Harbor, business tax revenues, and satellite businesses dependent on a healthy fleet; and NOW THEREFORE BE IT RESOLVED, that the Whittier City Council finds that the proposed halibut charter IFQ plan would present a significant bamer to free enterprise; and BE IT FURTHER RESOLVED, when an area needs management for the conservation of the halibut resource, we encourage that communiW to mm to "Local Area Management Plans" (LAMPS) in order to ad&ess the unique situation of that particular fleet; and BE IT FURTHER RESOLVED, that the Council finds that the proposed Charter IFQ plan will impair services to the public, stifle incentive for new charter operators and retard the goals of the Whittier Chamber of Commerce; and BE IT FURTHER RESOLVED, the Whittier City Council would support a management plan that is equitable to all existing charter operators and include provisions for new entrants. Passed and approved by the duly constituted quorum of the Whittier City Council on this i ~ a'day of/~[~)~} 2005. Introduced by: Rick A. Hohnbaum Introduction date' April 18, 2005 ATTEST:/. Brenda Krol City Clerk. Lester Lunceford Mayor Ayes' ~' Nays' O Absent: I Abstain:/ Oct~ 05 85 OS: 30a Rod & Stac~ 835-~157 p. ~ CITY OF VALDF___~, ALASKA RESOLUTION 05-70 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VALDEZ, ALASKA, OPPOSING INTEGRATION OF THE HALIBUT CHARTER FISHERY INTO THE EXISTING COMMERCIAL SYSTEM WHEREAS, the sport charter industry is an important part of the growth of the tourism industry in .the City of Valdez; and VVI-IER~S, the proposed Halibut Charter IFQ plan is not based on any biological need; and WHEREAS, the proposed rule to integrate the sport halibut charters in the commercial IFQ system transfers ownership of a resource to the private sector that traditionally belonged to the public; and VVHEREAS, encouraging new entrants in the charter business in turn encourages competition and diversity in the fleet; and WHEREAS, the implementation and allocation of a Halibut Charter IFQ will significantly reduce the number of charter operators in Valdez, thereby reducing tourism revenue and taxable earnings proportionately within our community; and WHEREAS, the proposed management plan will not meet the needs of the current fleet, Industry estimates show the proposal will only satisfy the needs of 160 six pack license holders for Area 3-A, which includes Valdez, Whittler, Homer, Kodiak, Seward and Ninilchik; and WHEREAS, catch and effort statistics from the International Pacific Halibut Commission ancl sport fishing license sales records from the State of Alaska Department of Fish and Game show that the growth in the sport halibut fishery is flat or 13as increased less than 1% per year;, and VVHEREAS, the negative financial impacts resulting from the implementation of the Halibut Charter IFQ will have a damaging effect on the economic infrastructure of Valdez, including direct losses to the Harbor and business tax revenues. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VALDEZ, ALASKA, that: ~ection 1. The Vald®z Cit7 Council finds tl3at the proposed halibut cl'tarter IFQ plan would present a significant barrier to free enterprise. Received 0ct-05-05 09:38am From-835 4157 To-AMODIO STANLEY & REE Page 02 Oc~~' 05 ~q5 OS: 3Da Rod & Stace 835-~157 p- 3 City of Valclez Resolution No. 05-70 Page 2 Section 2. VVhen an area needs management for the conse~ation of the halibut resource, we encourage that community to turn to ~Local Area Management Plans" (LAMPS) in order to address the unique situation of that particular fleet. Section 3. The Valdez City Council finds that the proposed Charter IFQ plan will impair services to the public and stifle incentive for new charter operators. Section 4. The Valdez City Council would support a management plan that is equitable to all existing charter operators and include provisions for new entrants. PASSED AND APPROVED by the City Council of the City of Valdez, Alaska, this 3r* day of October, 2005. CITY OF VALDEZ, ALASKA · ATTEST: ~heri L. Pierce, CMC, City Clerk Received 0ct-05-05 0O:38am Fr0m-835 4157 T0-kI~0DI0 STANLEY & REE Page 03 KODIAK May 6, 2005 Honorable Carlos M. Gutierrez Secretary of Commerce U.S. Deparuuent of Commerce Room 5516 14th and Constitution Ave. NW Washington, DC 20230 · RE: Hal/but Charter IFQ · Dear Secretary Gutierrez, . The Kodiak. Island Convention & Visitors BUreau is against the proposed'Halibut Charter IFQ plan in its current form: We believe this plan, if enactext as written; could have a devastating economic impact on the local economy of Kodiak, Alaska and the outlying communities of the Kodiak Island Borough. In add/tion, too much time has passed between the qualifying years and the implementation of the law. We believe that the current plan do. es not allow new entry into a growing industry,' nor does it provide adequately for those currently in the industry. This is of great concern to communities like those in the. Kodiak Island Archipelago, where tourism' is a relatively new, but growing industry. As the Secretary of Commerce, you can understand our concerns about government actions negatively impacting the local economy. While we believe in and support efforts to preserve the health of this fishery, we 'believe that many things have changed since the proposed regulations were fn-st introduced. These changes, along with the ecOnomic impacts of the proposed Halibut Charier IFQ, should be studied and considered before this program is implemented.. Therefore, we respectfully ask that you conduct an economic impact study before implementing the Kodiak Island Co~,~cntion ~4 Visitor, Bureau 100 Marine Way. Kodiak. Alaska 99615 907-486-478~ Fax 907-486-6545 E-ma~l: kicvb~ptiala~ka.nct Web page: http ://www.kodlak.org Charter c ssociati PO Box 4 ?8, Homer, AK 99605 'To preserve and protect the fights and resources o£ Alaska's Sport Fishermen.- ALASKA CHARTER ASSOCIATION RESOLUTION DATED August 15, 2005 The ACA, w/th 182 members from 27 cities m Alaska, represents over 50,000 fishing clients. Its efforts are supported by the Recreational Fishing Alliance, Alaska Outdoor Council, Homer City Council, Homer Chamber of Commerce, Kodiak Convention and Visitors Bureau, Wh/ttier Chamber of Commerce, Whitter City Council, Sitka Chamber of Commerce, Gustavus City Council and hundreds of satellite businesses who are dependent on the continued health oft he Charter Industry. The Alaska Charter Association supports Alaska's independent charter fishermen, individual anglers, and Alaska's tour/sm industry, recogn/zSag the current demographic and economic infrasmteture of the small Alaskan Commun/ty and opposing the establishment of charter quota shares. BE IT RESOLVED BY THE ALASKA CHARTER ASSOCIATION: WHEREAS the Alaska Charter Association supports the charter fishermen of Alaska, who are the lifeblood of our coastal commumfies and who provide economic opportunity and diversity for our coastal commun/ties; and WHEREAS the Alaska Charter Association recogn/zes that charter fishing is and w/ll remain the predominant economic base for many of our coastal commumties; and · _ WHEREAS the Alaska Charter Associat/on supports the Alaska tour/sm ~naustry wh/ch provides investment m the state and is the largest employment base in many Alaska commun/ties; and WHEREAS the Alaska Charter Association supports the free enterpr/se system; and WHEREAS THE Alaska Charter Association recognizes the fights of small business to compete under the Sherman Act; and WHEREAS the Alaska Charter Association recogn/zes that federal fisheD, management with/~ the 200 mile Exclusive Econom/c Zone of the Un/ted States can have dramatic effects on the economic growth and stability of Alaska coastal communities; and WHEREAS the North Pacific Fishery Managemem Council has proposed a charter IFQ based plan for management of the sport hal/but stocks in areas 2C and 3^: aa_ __d _. 5:12 PM 10/01/05 Cash Basis Profit & Loss January through December 2004 Ordinary Income/Expense Income Services Refund of Fees for Services Total Income Expense Appraisal Laundry Office Derby ticket Janitorial Exp Maintenance commission Advertising Automobile Expense Bank Merchant Charges Bank Service Charges Boat Supplies Boat-Maintenance Day Labor Depreciation Expense Drug Tests Dues and Subscriptions Education Fishing Supplies Insurance Loan interest Total Interest Expense Misc Labor Office Supplies Repairs Boat Repairs Total Repairs Slip Fees Taxes Sales Tax Property Total Taxes Telephone Business line long distance Satellite Phone Toll Free intemet,2nd line intemet cell phone Total Telephone Travel Meals Travel Travel - Other Total Travel Utilities Total Expense Net Ordinary Income Jan - Dec 04 128,184.28 -3,257.69 124,926.59 337.60 45.00 1,758.11 270.00 255.61 165.61 73.50 6,173.77 6,804.13 2,146.16 240.64 1,935.75 2,463.66 2,153.00 28,619.00 100.00 200.00 180.00 9,885.64 33,181.32 3,306.00 9,500100 9,500.00 7,665.84 20.00 5,019.69 5,019.69 1,338.02 3,816.70 300.00 4,116.70 581.55 62.05 31.03 940.24 685.07 693.02 2,010.99 5,003.95 32.85 1,764.00 105.71 1,902.56 1,439.69 136,300.95 -11,374.36 Page I Lewis K. Hay 9438 ~hittington Drive Jc~cksonvil~e, Floridc~ 32257 Senator Ted Stevens 522 Hart Senate Office Building Washingtin, D.C. 20510 September 25, 2005 Dear Senator Stevens, My wife and I recently enjoyed our first our Alaska vacation from July 6 through 18, 2005. We visited several places and tried numerous actiVities. My most enjoyable experience was halibut fishing. We would love to come back and do it again. I'm even talking to a couple of our fdends about coming back with us. Our return trip will not likely happen if the proposed Halibut Char[er I FQ Program is implemented. This program will eliminate many quality charter businesses (ie. competition) and drive charter prices way past what the average visitor can afford, it is obvious that you don't have enough quality charter businesses now as evidenced by the fact that out-of-state fishermen have to book several months in advance to get on a good boat. I would therefore urge you as a Republican Senator from Alaska to oppose the Halibut Charter IFQ Program in order to protect and enhance Alaska's toUrist trade. On our tdp to Alaska we spent our vacation dollars as follows: 1. Delta Aidines $ 2500.00 Alaska Tour Saver Book $99.00 Anchorage National Car Rental $931.00 Wal-mart $251.75 Sourdough Mining Company - Dinner $24.90 Fairfield Inn $163.13 Iditarod Store $31.10 Fishing Permit $50.00 Girdwood Ayalaska Skylift $16.00 The Bake Shop- Lunch $25.00 Indian .Valley Mine $16.00 Cooper Landing £ etvis ~. ~y 9438 tChittington Drive Jcccksonvil~e, F~oridc~ 32257 Senator Ted Stevens 522 Hart Senate Office Building Washingtin, D.C. 20510 September 25, 2005 Dear Senator Stevens, My wife and I recently enjoyed our first our Alaska vacation from July 6 through 18, 2005. We visited several places and tried numerous activities. My most enjoyable experience was halibut fishing. We would love to come back and do it again. I.'m even talking to a couple of our friends about coming back with us Our return trip will not likely happen jf the proposed Halibut Charter IFQ Program is iml~lemented. This program will eliminate many quality charter businesses (ie. competition) and drive charter prices way past what the average visitor can afford, it is obvious that you don't have enough quality charter businesses now as evidenced by the fact that out-of-state fishermen have to book several months in advance to get on a good boat. I would therefore urge you as a Republican Senator from Alaska to oppose the Halibut Charter IFQ Program in order to protect and enhance Alaska's tourist trade. On our tdp to Alaska we spent our vacation dollars as follows: 1. Delta Airlines $ 2500.00 Alaska Tour Saver Book $99.00 Anchorage National Car Rental $931.00 Wal-mart $251.75 Sourdough Mining Company- Dinner $24.90 Fairfield Inn $163.13 Iditarod Store $31.10 Fishing Permit $50.00 Girdwood Ayalaska Skylift $16.00 The Bake Shop- Lunch $25.00 Indian Valley Mine $16.00 Cooper Landing Misc. Cash Purchases $100.00 Seward Harbor View Inn $831.60 Salmon Bake Cabins-Lunch $21.50 Godwin Glacier Dog Sled $439.00 Safeway Store $102.21 Safeway Store $16.07 Thoms Showcase Lounge $55.00 Aurora Charters (what a jip) $197.60 Captain Jacks Seafood $23.27 Safeway Store $30.73 Alaska Shop $42.06 Kenai Fjord Tour $165.00 Sea Life Center $20.00 Miscellaneous Cash Purchases $150.00 Total Vacation Costs $10,112. 82 ! compiled this list of our spending (as opposed to one lump sum total ) to show you where and how we spent our money. You may want to pass this list around Senator Murkowski and Governor MurkowSki so they can see how much tourist spending was generated by four (two per trip) halibut. As you can see, our spending affected a lot of businesses. The mason we will come back to Alaska is the halibut fishing. The scenery is wonderful but we've seen it and it won't change - we have a lot of photos. You can't count on the salmon making a run with certainty and I'm not coming that far to catch a trout that I can get in a lot of other places closer to home. The halibut fishing is the drawl If we can't fish for halibut and utilize a quality charterat a reasonable cost, we simply won't be back and none of our money will be spent in Alaska -it's just that simple. I met a lot of Fioddians and other Southerners dudng our stay and most of them felt the same way. It is very clear to me that the Halibut Charter IFQ program will severely damage the halibut fishing experience for most out-of state toudsts (who have to use charter services)and in doing so will hurt Alaska's toudsm industry. By targeting halibut charter businesses, the Halibut Charter IFQ Program actually targets all of the out-of-state fishermen 'who visit Alaska every year. You might as well hang out a "Not Welcome" sign for all your angling tourists. You may or may not be aware of this, but the commercial bycatch of Halibut(13 million pounds in 2003) is almost twice the 7 million pound total harvested by sport fishermen (both private and charier boats) the same year. If the commercial fishing industry would simply use less was;~eful methods they would not need the North Pacific Fishery Management Council to steal shares from the fishing public. I'm not ready to give up my access to halibut fishing just so commercial fishermen can keep wasting fish. There are plenty of alternatives to the Halibut Charter IFQ Program anO many reasons other than tourism for you to oppose tine measure. In closing, ! urge you to please use ali your influence to defeat the proposed Halibut Charter IFQ Program. We really enjoyed our Alaska vacation and hope we can return in the future to fish for halibut. UtS, . Jacksonville, Florida edhay~aflanti c geotecl-mi cal. com -o,". ,.. ' ..--:,~ -:, .... ~. .-_.: '...:. ~, ,,~ ' ...... .-,.:...,. -, ~f: .... .... .. . ~:- .': ... ..: . . : . ~ ~- .... -' .... ....- ,: ':. :. ~.::. -- ,.:..,'~ '": "":~":':'. '~..'.,L}" :._': ::.~i:. :.~?:'' -.: ,' .~ .: "~' ':-'.-"-'--'.. 1, · ~:,.:~,:,., ..."7':_ .;~-'~.. ,~...-~.',:"~":' .... >: :.-:: ',: · '~ :.:::~..: _ :: : -.~..~.....; ,~_.....,. ':::: !':':' ":"./'-'~4'"-: ~'.:'> ;-'... ~: : :":.:: '...":":,i'.?.. :;7. Oiied Regions Alaska Peninsula Johnny Lind Bods Kosbruk Chuck McCallum Kenai Peninsula Allan Beiswenger, Treasurer Tim Robertson Angle Newby Kodiak Island Jerome Selby, Chair Sven Haakanson Dana Reid Prince William Sound John Devens Riki Ott, Vice Chair Martha viasoff At-Large: Bruce Gabrys P:" Hall lawn Advisom & Staff Virginia Allen, Development Director Patience Andersen Faulkner, Administrator Michele Osboume, Lead Counsel Davis Wright Tremaine Matt Jamin, Adv/sor Jamin Ebell Schmitt & Mason of Alaska October 15, 2005 Dear Public and Tribal Officials, The Oiled Regions of Alaska Foundation is offedn!~l-a'~~ution-'-'--~o al'-~ of the City, Borough, and Tribal Councils in communities oiled by the Exxon Valdez spill. We are Alaskans who experienced the social and economic devastation from this spill first-hand and we am working to rebuild our communities- in Prince W~liam Sound, the Kenai Peninsula, Kodiak, and the Alaska Peninsula, Please visit our web site or call a local board member for mom information. The DRAFT resolution requests that the State of Alaska and United States Justice Department claim the $100 million dollars due from Exxon to pay for long-term harm to our areas from its oil spill. The governments must submit a list of potential mitigation projects when they bill Exxon for the outstanding $100 million, according to the terms of the 1991 civil settlement. The ORA Foundation believes that local governments and tribes know best what needs could be met with the restoration funds. Therefore, the DRAFT resolution also requests the governments to consider potential mitigation projects in three categories: restoration, education, and omvention. For masons stated in the DRAFT.resoluldon, the ORA Foundation believes~hat projects in ~ese three categories fall within the scope of the Reo ~Pener for unknown Injury section of the 1991 civil settlement. The specific projects listed under each category are ones that we felt were important- based on feedback from community members, achievable, and could be broadly supported throughout the oiled region. However, please feel free to add to this list projects that am important to your community. The DRAFT resolution should serve as a template for each governing Council to modify as they choose. The opportunity to bill Exxon for long-term harm to our areas from its spill expires June 1, 2006. This is the deadline for the governments to submit a list of mitigation projects to Exxon. Therefore, Please contact the ORA Foundation or our board members directly for mom information, if needed. Thank you for your consideration. Mills/Conklin Group, Financial Advisors Merrill Lynch Sincerely, _ Jerome Selby Chair, ORA Foundation Oiled Regions of Alaska (ORA) Foundation is a non-profit established by local Alaskans. P.O. Box 242066, Anchorage, AK 99524-2066 Tel: (907) 486-4833, Jerome Selby, Chair. CC: In. P.r. ince William Sound Tim Joyce, Mayor City of Cordova r~OB 1210 ordova, AK 99574 Bert Cottle, Mayor City of Valdez POB 307 Valdez, AK 99686 Lester Lunceford, Mayor City of Whittier POB 608 Whittier, AK 99693 Larry Evanoff, President Chenega IRA Council POB 8079 Chenega Bay, AK 99574-9999 Robert Henrichs, President Traditional Village of Eyak POB 1388 Cordova, AK 99574 ary Kompkoff, President & CEO Native Village of Tatitlek POB 171 Tatitlek, AK 99677 In the Kenai Peninsula Dale Bagley, Mayor Kenai Peninsula Borough 144 North Binkley St. Soldotna, AK 99669 James C. Homaday, Mayor City of Homer 491 East Pioneer Ave. Homer, AK 99603 Philemon Morris, Mayor City of Kachemak POB 958 Homer, AK 99603 In Kodiak Jerome Selby, Mayor Kodiak Island Borough 710 Mill Bay Road Kodiak, AK 99615 Carolyn Floyd, City Clerk City of Kodiak 710 Mill Bay Road, Rm. 220 Kodiak, AK 99615 Roger Malutin, Chairman Native Village of Afognak 204 E. Rezanof Drive, Ste. 100 Kodiak, AK 99615 o Luba Eluska, Mayor City of Akhoik POB 5050 Akhoik, AK 99615 James Nestic, Mayor City of Old Harbor POB 109 Old Harbor, AK 99643 Roy Jones, Mayor City of Larsen Bay POB 8 Larsen Bay, AK 99624-0008 Zach Chichenoff, Mayor City of Ouzinkie POB 109 Ouzinkie, AK 99644-0109 Marvin Bartleson, Sr., Mayor City of Port Lions POB 110 Port Lions, AK 99550 Alicia Reft, President Native Village of Karluk POB 22 Karluk, AK 99608 Vanta Shafer, Mayor ity of Seward ,-'OB 167 Seward, AK 99664 · Pat Porter, Mayor City of Kenai 210 Fidalgo Ave., Ste. 200 Kenai, ^K 99611 David Carey, Mayor City of Soldotna 177 North Birch Street Soldotna, AK 99669 Richard VVyland, Mayor City of Seldovia Drawer B Seldovia, AK 99663 Crista Collier, President Seldovia Village Tribe "/o Seldovia Native Association 3B L ,seldovia, AK 99663 Patrick Norman, First Chief Port Graham Village Council POB 5510 Port Graham, AK 99603-5570 Emillie Swenning, President Nanwalek IRA Council POB 8028 Nanwalek, AK 99603-8028 On the Alaska Peninsula . Richard Sharpe, Mayor City of Chignik POB 110 Chignik, AK 99564-0110 Virginia Aleck, President Chignik Lake Traditional Village Council POB 33 Chignik Lake, AK 99548 Laura Stepanoff, President Chignik Lagoon POB 09 Chignik Lagoon, AK 99565 Alfred Kaimakoff, President Ivanoff Bay Village Council POB 500sw Perryville, AK 99648-0500 Gerald Kosbruk, President Native Village of Perryville POB 101 Perryviile, AK 99648-0101 · DRAFT GOVERNING BODY, ALASKA (for example City of Cordova) RESOLUTION XX-XX-05 A RESOLUTION OF SUPPORT BY THE GOVERNING BODY OF THE CITY OF CITY (for example, City Council Of The City Of Cordova), ALiSa, TO REOPEN THE 1991 CIVIL SETTLEMENT FROM THE EXXON VALDEZ SPILL AND CLAIM THE FULL $100 MILLION FOR MITIGATION OF UNANTICIPATED LONG-TERM HARM WHEREAS: On October 9, 1991, the U.S. Distdct Court of Alaska in Anchorage approved a settlement among Exxon, the United States, and the stato of Alaska for damages to "natural resources" (publicly-owned wildlife and wild lands) from the Exxon . Valdez oil spill (EVOS); and WHEREAS: This settlement included a clause that provided a "Reopener for Unknown Injury," which states (essentially) that, between September 1, 2002, and September 1, 2006, Exxon shall pay to the Governments such additional sums as are required (up to $100 million) to restore oil-damaged populations, habitats, or species in the spill zone if the injury could not reasonably have been known nor anticipated at the time of the settlement; and WHEREAS: Unanticipated long-term harm from the Exxon Valdez oil spill has been clearly and conclusively demonstrated by scientists funded through the Eves Trustee Council and, separately, through federal and state agencies, universities, and pdvate foundations; and WHEREAS: Unforeseen damage includes delayed re ,covery of: 5-6 years for pink salmon; about 8 ¥~am for black o¥$t~rmtchem and river ottem; and 15 or mom yearn for mussel beds and beach communities, sea otters, and fish-eating orcas (from slow roplacoment of losses after spill); and WHEREAS: Unforeseen damage includes s~cies not recovered after 15 or more years such as: harlequin ducks, Pacific herring, pigeon guillemots, harbor seals (from slow replacement of losses after spill), and mammal-eating orcas (from spill losses and impairod mprodu~ion due to high body burdens of PCBs); and WHEREAS: Unforeseen damage includes indirect effects to species like black-legged kitt~akes that wero not initially harmed by the spill, but were harmed through spill- related loss of prey species such as Pacific herring; and . ' WHEREAS: Much of the documented unforeseen damage stems from unexpectedly high levels of spilled oil, which remains buried in the intortidal zone and which NO~ scientists now estimate will take at least another 20 years to naturally degrade; and DRAFT · WHEREAS: All of these long-term damages from oil were completely unanticipated at the time of settlement because the understanding of oil toxicity then held that oil only caused short-term harm at water levels of parts per million, while scientists now realize that oil also causes long-term harm at water levels of parts per billion and trillion; and WHEREAS: Because of the scientific finding that oil is more toxic than previously thought, it is critical to educate the public as to this finding and take measures to r~duce risk of spills as well as to mitigate lingering harm; and WHEREAS: None of the three parties to the settlement---Exxon, the federal government, or the State of Alaska--have petitioned to roopen the settlement. NOW, THEREFORE, BE IT RESOLVED that the GOVERNING BODY OF THE CITY OF cl'r~, Alaska (for example, City Council of the City of Cordova, Alaska), heroby requests the United States Department of Justice and the State of Alaska to reopen the 1991 civil settlement and claim the entire $100 million for mitigation projects; and BE IT FURTHER RESOLVED THAT the US Justice Department and the State of Alaska consider, at a minimum, the following potontial mitigation projects' Miti_o_ation of iingedn.q harm: 1. Monitor weathering and toxicity of residual oil under beaches 2o Monitor recovery of, and oil contamination in, subsistence foods on oiled beaches 3. Continue to monitor species that have not yet recovered 4. Establish, and compensate for, cost of unforeseen injury to species 5. Conduct a feasibility study and cohort epidemiology study on cleanup workers whose health may have been impaired by the Eves cleanup 6. Study of treated and untreated beaches to determine if any treatment methods used during the Eves cleanup actually worked; i.e., improved recovery of beach ecology over the long-term .Public education: 1. Fund an assessment of injured resources through the National Research. Council 2.. Fund a roview and assessment of oil spill cleanup products that am not toxic to humans or the environment through the National Reseamh Council 3. Develop and implement national education programs on neW undemtanding that oil is more toxic than previously thought to humans and the environment (like tobacco indust~ settlement) Measures to m,, duce rfsk of la,qTe spills: 1. £ndow citizen oversight council for tho Trans-^laska Pipeline Systom (estimated cost: $25 million) PASSED AND APPROVED THIS XXX DAY OF XXX, 2005. Compass Piece (Community voice) To: Alaska Newspapers '~om: Riki Ott, Cordova, AK abmitted: 9/9/05 Oil's Toxic Legacy- Time for Exxon to Pay for Long-Term Harm from Oil Spill There's 100 million dollars on the table for unforeseen harm from the Exxon Valdez oil spill- and no one has stepped forward to collect it. Worse, no one, besides a handful of Alaska's citizens and environmental groups, have even asked the state or U.S. Justico Department to collect the cash. Yet, this $100 million, ripe for the picking, could be used to mitigate long-term oil spill damage to the environment- and local economies dependent on injured rosourcos- as well as to help protect Alaska's communities and coastlines from future spills. What is going on? In 1991, the United States, State of Alaska, and Exxon entered into a civil settlement in which Exxon agr0ed to pay the governments $900 million for damages to wildlifo and wild lands caused by the Exxon Valdez oil spill. The civil settlement also provides a i:?Reopener for Unknown Inlury,' roquiring Exxon to pay up to an additional $100 million tween the years 2002 to 2006 for damages that "could not reasonably have been . ~own nor.., anticipatod" at the time of the 1991 settlement. It turns out, not much was known about how toxic 0il really was back in 1991. The tests to establish oil toxicity wero done 20 years earlier, in laboratories, for 96 hours, using standard test species as surrogates for "real" wildlife, and only the fraction of oil that dissolves quickly in seawator. Not surprisingly, based on the$o unrealistic tests, oil was thought to have only short-term effects- on wildlife that survived the initial oiling, that is. The beaches of Prince William Sound became a living laboratory after the spill. Scientists discovered that the residual oil, buded under the beaches, contained a different fraction of oil, called polycyclic aromatic hydrocarbons, or PAHs. By the late 1990s, scientists had linked the delayed recovery of some species - and failure to recovery of others such as sea otters and harlequin ducks- with exposure to Iow levels of PAHs. By then, scientists and medical doctors around the country had made similar discoveries that oil really was moro toxic than proviously thought. In 1999, the U.S. EPA listed 22 of the PAHs in crude oil on its list of "persistent, bioaccumulative, toxic pollutants." This list includes lead, dioxin, memu~, lead, PCBs, and DDT - some of the most hazardous chemicals known to humans! it's not surprising then, that only 7 of the 30 species listed as initially injured by the ton Valdez oil spill have officially mcoverod, a~ording to the Trustoe Council. What is surprising is that neither the State of Alaska nor the federal government have stepped forward in their role as stewards of the publicly-owned wildlife and wild lands to request that Exxon pay what is due. If spillers are not held accountable for all damages to the environment- both short- and Ion~-torm harm, then how can spillers be held accountable for all damages to privat~- aro not yet acknowledged by the governments or Exxon. For example, the once thriving Prince William Sound herring fisheries have been closed for 11 of the past 13 years. This has devastated fishermen, families, and communities that depend on income from this once-bountiful harvest. It's time for. concerned Alaskans to take action. Urge your city councils or tribal entities to adopt a rosolution asking the Attorneys General of the Stato of Alaska and Unitod States to take immediate steps to claim the $100 million due from Exxon for restoration - mitigation projects of wildlifo and wild lands, public education on oil toxicityl 'and ~3revention - projects to protect these injured resources from fUture spills. The Oiled Regions of Alaska Foundation has posted a draft resolution for adoption on its web site: www. orafoundation, or.q. Riki Ott is a founding board member of the ORA Foundation and author of the awar~l-winning Sound Truth and Corporate Myths (Dragonfly Sisters Press, 2005) about oil's toxic legacy (www. soundtruth, info). She lives in Cordova, AK. Oiled Regions of Alaska (ORA) Foundation Board of Directors, Advisors E Staff Virginia Alien, Devetopment Director phone: 907-346-1751 h ~ 907-440-4723 cei[; fax: emai[' akcabins~aJaska, net snail mail: 8439 Jupiter Drive, Anchorage, AK 99507 Patience Andersen Fau[kner, Interim Administrator phone' 907 424 7585 fax' 907 424 7585 emai[: andersenpatc®ctcak, net snail mai[' P. O. Box 2574, Cordova, AK 99574 Aitan D. Beiswenger, Treasurer (KP) phone: 907 258-6419w; (907) 868-1280(h) emai[: bei~tenger~ak, net snail ma~l' ~.0. Box 566, Girdwood, .61< 99587-0566 John Devens, Board Member (PWS) phone: 907 835 5957 (Va[dez) 907 277 7222 (Anchorage) fax-907 835 5926 emai[: devens®pWsrcac.or~ snail mai[' Executive Director, RCAC, P.O. Box 3089, Va[dez, AK 99686 Bruce Gabrys, Board/V~ember (At Large) phone: 907-694-3874 h; 907-278-8878 w; fax: 907-278-5779 emait: bgabrys~mcc-cpa.com snail mai[: 10279 Baffin Street, EagJe River, AK 99577 Sven Haakanason, Board Member (K) phone- 907 486 7004, Extension 7 fax: 907 486 7048 emai[- sven®a[utiiqmuseum.com snail mai[: A[utiiq Museum, 215 Mission Road, Suite 101, Kodiak, AK 99615 Bit[ Hart, Board Member (At Large) phone: 907-349-8144 h; 907-748-3216 cell fax: 907-677-9157 emait-ar[ot~gci.net snai[ malt: 8500 Greenhitt Way, Anchorage, AK 99502 Matt Jamin, Advisor phone' 907 486 6024 fax' 907 486 6112 emai[' matt®iesmkod.com snai[ mai[' Jamin, EbeJ[, Schmitt E Mason, 323 Carolyn Street, Kodiak, AK 99615 Boris Kosbruk, Board Member (AKP) Phone' 907-853-2211 Fax' 907-853-2243 (Note: this is BK's preferred method of communication) Emai[ In Care Of' nvofperry®ao[.com (BK does not regularly check this emaiO Snail mai[' P.O. Box 115, Perryvi[[e, AK. 99648 Dan Lawn, Board Member (PWS) phone' (907) 223-3448 mobile - best #; (907) 835-4808 home fax' none emai[: dan[awn®alaska, net snail mai[' P.O. Box 188, Va[dez, AK 99686 Johnny Lind, Board Member (AKP) Phone' (907) 845-2228 Mobite- Fax: Emai[: a[eutsistersj k~hotmai[, corn Snail Mai[: P.O. Box 4, Chignik Lake, AK 99548 Chuck/~cCattum, Board Member (AKP) Phone:(907) 278-1250 AK home or (360) 671-2062 WA home /~obi[e: (360) 201-7309 Fax: Emait- chuckmcca[tum~hotmai[.com Snail Mai[: 601 N. Bragaw Street, Anchorage, AK 99508 Angie Newby, Board Member (KP) Phone: (907) 235-5294 Mobite: (907) 299-1514 Fax: (907) 235-5223 Emait: angienewby~ataska.com Snail mai[' P.O. Box 997, Homer, AK 996021 Dave Oestin~, Advisor phone' 907 257 5300 fax' 907 257 5399 emai[: daveoestin~:®dwt.com snait mai[' 701 W. Eighth Avenue, Suite 800, Anchorage, AK 99501 MicheJe Osborne, Advisory Counse[ phone' 206 628 7734 fax' 206 628 7699 emai[: miche[eosborne®dwt.com snai[ mai[' DWT, 2600 Century Square, 1501 Fourth Avenue, Seatt[e, WA 98101-1688 Riki Ott, Vice-Chair (PWS) phone' 907-424-3915 fax' 907-424-3926 emai[: otter2®ak.net snail mai[: P.O. Box 1430, Cordova, AK 99574 Jerome Selby, Chair (K) phone: 261-3134 (Anchorase); 486-4833 (Kodiak) fax: 261 - 3041 (Anchorase); 486-3391 (Kodiak) emai[: Jse[by®ptia[aska. net snail mail: P. O. Box 1962, Kodiak, AK 99615 Dana Reid, Board Member (K) Phone: (907)486-8464 Fax: Emai[: [ynx~keaconnect. net Snail mai[: P.O. Box 8935, Kodiak, AK 99615 Tim Robertson, Board Member (KP) Phone: (907) 234-748§ Fax: (907)486-8464 Emai[: nuka®a[aska, net Snail mai[: POB 175, Setdovia, AK 99663 Martha Vtasoff, Board Member (PWS) Phone: (907) 276-2450; (907) 258-2652 w Fax: Emait: vtasoffm~acsataska, net Snait Malt: 605 N Street, Anchorage, Ataska 99501 Joni Whitmore, Financia[ Advisor, CFM, MiJJs/ConkJin Group phone- 907 564 6626 w; 866 495 6646 (roi[ free at work); fax' 907 562 5789 (requires cover letter) emai[: iwhitmore®pc[ient.mJ.com OR Joni L Whitmore®mJ.com snai[ mai[: MerriJ[ Lynch, 3601 C Street, Penthouse Suite West, Anchorase, AK 99503- 5996 KENAI, ALASKA October 28, 2005 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014 www.ci.kenai.ak, us Michael L. Munger, Executive Director Cook Inlet Regional Citizens Advisory Council 910 Highland Avenue Kenai, AK 99611-8033 RE: COOK INLET REGIONAL CITIZENS ADVISORY COUNCIL Board of Representative .. City of Kenai Thank you for your letter of October 17, 2005 in which you notified us of the upcoming expiration of John Douglas' seat as the .city's representative to the Advisory Board. After discussions with John, it is our wish his appointment be continued as our representative to the Cook Inlet Regional Citizens Advisory Council Board of Directors. If you have any questions, please contact us at 283-7535, extension 231. CITY OF KENAI Pat Porter Mayor JJW/clf cc: John Douglas ~The mission of the Council is to represent the citi~ of Cook Inlet in promoting environmentally safe marine transportation and oil fac'dity operations in Cook Inlea ' A laa~ State Chmnber of Commerce Alaska ~Vative Groups Environmental Groups Recrea~onal Group~ Aqua~ltu~ Organizations City of Kenai City of Seldovia of Homer Ko~ak laland October 17, 2005 Mayor Pat Porter City of Kenai 210 Fidalgo Avenue Kenai, Alaska 99611-7794 Dear Mayor Porter: The Cook Inlet Regional Citizens Advisory Council (RCAC) is a citizen's oversight council for oil operations in the Cook Inlet area organized under provisions in the Oil Pollution Act of 1990, Section 5002. The Council's mission is to represent the citizens of COOk Inlet in promoting environmentally safe marine transportation and oil facility operations in Cook Inlet.. o The Council, formed in late 1990, as a not for profit corporation, consists of special interest. groups, municipal and borough seats, which includes the City of Kcnai.- The Board of Directors are elected on a 3 year rotating basis. The three-year term for the City of Kenai seat expires in February of 2006. The seat is cun~ntly held by John Douglas. Your participation in this membership process is important to us! Please submit to our office by December 27, 2005, written notification of your continued appointment of Mr. Douglas or the name of his replacement. If you have any questions about Cook Inlet RCAC or the selection process, please feel free to contact me or Karen Williams, Asst. Executive Director at 283-7222. I look forward to hearing from you in the very near furore. Sincerely yours, Executive Director Attachment: Oil Pollution Act of 1990 Cook Inlet RCAC Bylaws John Douglas CIRCAC Board of Directors Cook Inlet Regional Citlzens Advizory Council * 910 Highlmut~e, gentg, AK 99611-8055 Phone: (907)283. 7222 * Far (907) 283-5102 MEMORANDUM To; From: Date: Subject: Chuck Kopp, Acting City Manager Larry Semmens, Finance Director/~ October 28, 2005 Health Insurance Options A committee of employees met with Doug Brown to discuss options for health insurance. We discussed the quote from Premera Blue Cross for our current program and their quote for a high deductible plan which would meet the requirements of either Health Savings Accounts or Health Reimbursement Arrangements. My initial analysis is that the City could save about $50,000 annually by using a high deductible plan even if the City contributes 100% of the deductible amount (including the dependent deductible) to either of the two options above. Apparently Premera believes high deductible amounts encourage conservative use of health care services. The difference in HRA's and HSA's is ownership of the contributions. With an HSA the employee owns the funds and enjoys benefits similar to an IRA after termination from employment. With an HRA the contributions belong to the City, but there is flexibility in allowing terminated emploYees the fight to use the contributions for health related expenses. The HSA is most likely to achieve savings for the City because the employee has a vested interest in the contributions. If the deductible is not met in any given year there would be a positive account balance that can be used for furore health care expenses or be held by the employee forever. There are restrictions to the use of HSA's that may impact employees who have double coverage if they are covered under a plan that does not have high deductible amounts. We will need to work on options for dealing with this. It will be best if we can make a decision to change our health insurance plan early in December if we are going to make such a change this year. The Premera plan year for deductibles is a calendar year, so it makes sense to make the change effective January 1. Such a change will have a significant impact on how employees pay for health care, but I think we can make this deadline if we wish to. I intend to keep moving forward with this and will meet with City Attorney Graves to determine if there are any code impediments and to discuss any other issues related to implementing a new health insurance plan. At some point in the near furore, we may need to get council approval for any substantive changes. Our deadline for notification to Premera of a change is the first week of December. ')' % 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone' 907-283-7535 / FAX: 907-283-3014 www.ci.kenai.ak, us ,,¢ ,,f . KENAi. ALASKA MEMORANDUM TO: FROM' C~(d DATE: RE' Mayor Pat Porter and Councilors Cary R. Graves, City Attorney October 27, 2005 PFD Attachments At the last Council meeting, I reported we had received an initial amount of $17,658.44 from PFD attachments for unpaid traffic fines and that we expected approximately $8,000 more. My office received notice today that another $6,960.08 has been extracted from PFD's for unpaid traffic fines. Smaller amounts will continue to trickle in over the next two months as individual dividends are prepared by the PFD office. So, it appears our total collections for unpaid traffic citations this year will be at least $25,000, or 83% of what was possible this year. Let me know if you have questions or need more information. CRG/sp INFORMATION ITEMS KENAI CITY COUNCIL MEETING NOVEMBER 2, 2005 , . , o 10/25/05 Public Works Department, Project Status Report. 10 / 26 / 05 Kenai Peninsula Soccer Club letter indicating their application for sponsorship of the 2007 Alaska State Cup to be held in the Kenai/Soldotna/Nikiski areas. 11 / 2 / 05 Purchase Orders Between $2,500 and $15,000. 11/1/05 Kenai Peninsula Borough Assembly Agenda. Project status Report A:Active NC:Non-Construction F:Future STIP:State Trans. imp KK - Keith Korneli,,, JL- Jack La Shot RS - Robert Springer MK - Marilyn Kebschull Jet - Jan Taylor A/NC/F/ City Contact Project Name Status STIP A JL Airport Security Fencing Check list items. A JL Airport Security System A couple of items - then can closeout A- MK Airport Supplemental Planning Assessment Project awarded to DOWL. Joint Work session with consultants planned for 9/29. Final sessions tentatively planned for 11/17 and 11/18. JL Airport Taxiway "H" Access Parking CO to Terminal project. Utilities being relocated. Excavating. JL A JL Airport Terminal Modifications Contaminated Soils- Shop Completion of minor items & change order work. Removed one dirt pile to Airport. Another moved. Will remove barrels. Grant application for further funding. A KK Kenai Boat Launch Improvements Received $350,000 grant. Nelson & Associates are working on the design and Corps permit. Public comment period over. Waiting for permit. A KK Kenai River Bluff Erosion Control Project The City received the draft technical report from the Corps. Hopefully, the City will get additional funds to help with the design and answer any questions from the study and agencies including obtaining the Corps Permit. A KK Lawton Drive Water Main WH4 to Swires Nelson working on design. City is working with DEC and Corps on permit. A JL Multi-Purpose Facility Major items complete. Bleachers have arrived. Tuesday, October 25, 2005 Page 1 of 3 A/NC/F/ City Contact Project Name STIP A JL Parallel Taxiway Status Taxiway B complete for winter shutdown. A JL Runway Extension Environmental Assessment Proceeding with main list of projects. Document submitted to FAA. Met with FAA on 9/8/05. A JL Runway Safety Zone/Extension Started preliminary field work and engineering.. A JL Senior Kitchen Kitchen interior work proceeding well. A KK WH 4 Reviewing new EPA guidelines. Working with DNR on land purchase issues. Evaluating the two pilot test programs on water treatment. Hired UAA professor as subconsultant for water treatment. West Coast Filters completed a 40-day pilot study in August/September. Fiitronics and Severn Trent also being considered as treatment companies. F KK Ames & Dunes Road Kenaitze Indian Tribe paving roads with curbs, gutters, and sidewalks. They are going to send City a maintenance agreement. Project on hold due to financial problems. F KK Boating Facility Exit Road Council has approved the land trade with The Conservation Fund for the land. Still need to find funds to construct exit road, F KK Culvert Repairs S. Spruce & Boat Launch Road Boat Launch Road culvert replacement USFWS Grant has been received and funds appropriated. Nelson has completed design. Waiting on DNR permit. USFWS has asked for design change which increases the project cost significantly. Project is underfunded, but USFWS says they will increase the grant funds. Still waiting on S. Spruce culvert repair grant. F JL Maintenance Shop Preliminary plans and specifications complete. F KK McCollum LID McCoilum/Aliak has submitted a new petition for paving. The City Manager's report is going to Council on 11/2/05. Tuesday, October 25, 2005 Page 2 of 3 A/NC/F/ S11P F KK City Contact Project Name S. Ames and Thompson Park LID Status Property owners are circulating petitions for LID F KK Set Net Drive LID A public hearing has been set on 11/2/05 for Set Net Drive Special Assessment District. 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. Tuesday, October 25, 2005 Page 3 of 3 Kenai Peninsula Soccer Club P.O. Box 393 Kenai, AK 99611 October 26, 2005 Polly-Beth Odom, State Cup Chair Alaska Youth Soccer Association 801 Reed Court Wasilla, AK 99654 Dear Polly-Beth, The Kenai PeninsUla Soccer Club Board unanimously voted to apply for sponsorship of the 2007 Alaska State Cup, to be held the second week of August. We propose that the tournament be held in the Kenai/Soldotna/Nikiski areas. At present we have 2 certified referees in the peninsula. Mr. Scott Heilin (SRA) has agreed to work with. KPSC Vice-President Charles Woodcock to ensure we have enough referees to officiate all games during the tournament. The local economy has more than sufficient resources to provide lodging and food for the anticipated large amount of visitors this tournament would bring to the ama. There are abundant bed and breakfasts, motels, hotels, RV parks and campsites in the Kenai-Soldotna area. There are enough soccer fields to host the State Cup. At present we have fields at least 14 fields available: Nikiski = 2 fields Kenai = 4 fields (with 4-5 additional fields to be completed prior to 2007) Soldotna = 3 fields We are excited at the possibility of finally bringing competitive soccer players from around the State to the peninsula. Please seriously consider our proposal. Respectfully Submitted, KENAI PENINSULA SOCCER CLUB Daryl Byerly, President Charles Woodcock, Vice President Chris Tilly, Secretary CC: Pat Porter, Mayor, City of Kenai Dave Carey, Mayor, City of Soldotna Janie Odgers, Executive Director, Kenai Chamber of Commerce I,tl z 1,1,1 1,1,1 z .~. z z r~ ~- 0 I~ z Kenai Peninsula Borough ix, ~er 1, 2005 - 7:00 p.m. 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 Margaret Gilman Assembly Member ge yenai Te. /ires 2008 ~illi Martin 4ssembly Member ~eat 9- South Peninsula Term Expires 2006 Grace Merkes 4ssembly Member Peat 5-Sterling~Funny River Term Expires 2008 Deborah Germano 4ssembly Member ~eat 8- Homer I'erm Expires 2008 °ete Sprague 4ssembly Member 7eat 4 - Soldotna ~'erm Expires 2007 A® 'B. C® De ge F® Go Ho I® J: Le 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 l~om the Consent Agenda and considered in its normal sequence on the agenda. ASSEMBLY REORGANIZATION le Election of President and Vice President APPROVAL OF MINUTES *1. October 11, 2005 Regular Assembly Meeting Minutes ......... 1 COMMENDING RESOLUTIONS AND PROCLAMATIONS 5 A Resolution Commending the Kenai Central High School Football Team as the Alaska School Activities Association Small-Schools State Champions for Year 2005 (Gilman) ......... LAYDOWN PRESENTATIONS WITH PRIOR NOTICE (L'.tmit to 20 rninut~s total) PUBLIC COMMENTS ON ITEMS NOT 'APPEARING ON THE AGENDA (3 minutes per spcakor; 20 minutes aggregate) REPORTS OF COMMISSIONS AND COUNCILS November 1, 2005 Page 1 of 7 m~ MAYOR'S REPORT ................................................... 13 le Agreement and Contracts Spruce Bark Beetle Mitigation Program Approval of Contract with S&R Enterprises for Kenai Fire Wise Slash Disposal Project ............................. 15 Approval of Contract with Doug Koch Professional Tree Service for Old Sterling Highway # 1 ROW Project .......... 17 Approval of Contract with Doug Koch Professional Tree Service for Old Sterling Highway #2 ROW Project .......... 19 Approval of Contract with Doug Koch Professional Tree Service for Old Sterling Highway #3 ROW Project .......... 21 Approval of Contract with Resource Development LLC for Slash Burning at Cohoe Loop Gravel Pit ................... 23 be Approval of Contract with Festive Outfitters, Inc. for Ice Making Improvements at Nikiski Ice Rink .............................. 24 . Approval of Contract with Alaska Road Builders,/nc. for Paving Isaak Road Approach ........................................ 25 de Approval of Contract with K-F Construction Services for Snug Harbor Pit Rehabilitation ..................................... 26 ee Approval of Contract Award to Young's Firehouse for Purchase of SCBA Air Compressor for Kachemak Emergency Service Area ...... 28 Approval of Contract with HCG for Professional Enginee~g 'Services for South Peninsula Hospital and Susan B. English K-12 School ' 29 ge Approval of Sole Source Contract with Dudley A. Platt & Associates for Industrial Plant Valuation & Support Services ................. 31 2. Other ae Report fi'om Jane Gabler, KPB Floodplain Administrator, Regarding KPB 2005 Community Rating System Recertification ........... ' .. 34 be Investment Portfolio as of October 12, 2005 , 35 Nov'ember 1, Page 2 of 7 Ne O® Pe Revenue - Expenditure Report- September 2005 ................. 37 d, .Budget Revisions - September 2005 ................ . ............ 40 Project Reports- September 30, 2005 ........................... 42 ITEMS NOT COMPLETED FROM PRIOR AGENDA- none PUBLIC HEARINGS ON ORDINANCES (Testimony limited to 3 minutes per speaker) Ordinance 2005-19-28' Accepting and Appropriating a State Grant in the Amount of$175,000 for the Youth Facility in the North Peninsula Recreation . Service Area (Mayor) (Referred to Finance Committee) ..... · .............. 59 e Ordinance 2005-19-29' Accepting and Appropriating Fifteen State Grants Totaling $2,438,651 for School Projects (Mayor) (Referred to Finance Committee) ..................................................... 64 3~ Ordinance 2005-19-30: Accepting and Appropriating a Western States Wildland Urban Interface Grant from the Alaska Department of Natural Resources, Division of Forestry, in the Amount orS175,750 for Developing Community Wildfire Protection Plans (Mayor) (Referred to Finance Committee) ..................................................... 69 e .0.rdinance 2005-38' Amending Kenai Peninsula Borough Title 16 to Authorize Certain Volunteers to Serve on their Respective Service Area Boards (Mayor) (Rcfe~ed to Policies and Procedures Committee) .. . ... 5~ Qrdinance 2005-43' Amending KPB 2.40.030 to Delete the Provision Authorizing the Borough Mayor to Vote on Planning Commission Actions in the Case of a Tie (Mayor) (Referred to Policy and Procedures Committee) ****************************************************************** e Ordinance 2005-13' Amending KPB 21.26.030 (A)(3) to Clarify Conditions for Material Site Permits (Chay) (Reread to Lands Committee) ............ 94 UNFIA'ISHED BUSINESS 1. Postponed Item a® Resolution 2005-067: Authorizing the. Mayor, on Behalf of the Kachemak Emergency Service Area, to Enter into an Agreement with' the City of Homer to Provide Fire and Emergency Medical Services (Martin, Mayor) (Refe~ed to Finance Committee) ................ 110 November 1, 2005 Page 3 of 7 Q® b, Resolution 2005-088' Authofizin' g Award of Contract for Professional Design Services for the Nikolaev. sk Fire Substation Project (Mayor) (Referred to Finance Committee) ................ 116 NEW BUSINESS 1. Bid Awards e e Resolution..2005-093' Authorizing the Sole Source Purchase of a. Variety of Specialty Medical Equipment Totaling $837,000 for the · Central Peninsula General Hospital Expansion Project (Mayor) (Referred to Finance Committee) ............................. 118 Resolutions *a. Resolution 2005-094: Adopting an Alternate Allocation Method for the FY06 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in the Cook Inlet Fisheries Management Area (Mayor) (Referred .to Finance Committee) .............................................. 124 *b. Resolution 2005-095' Certifying the Results of the October 25, 2005 Runoff Election (Superman at the Request of the Borough Clerk) (Referred to Policies and Procedures Committee) ......... LAYDOWN Ordinances *b. Ordinance 2005-19-32: Accepting and Appropriating a Grant from the U.S. Department of Homeland Security in the Amount of $33,155 for Equipment for Kaehcmak Emergency Service Area (Mayor) (Hearing 12/06/05) (Ref¢~d to Finance Committee) .............. 12'/' ordinance 2005-19-33'_ Accepting and Appropriating a Grant in the Amount of$187,406 f~om the Alaska Division of Homeland Security and Emergency Management for Relocating Kasilof River Road (Mayor) (Hearing 12/06/05) (Referred to Finance Committee) ....... 131 Ordinance 2005-44.' Replacing the Flat Tax with an Ad Valorem Tax on Certain Watercraft in Excess of 100 Feet in Length (Sprague) '(H¢~g 12/06/05) (Referred to Finance Committee) .............. 13~ ...~ ... Nowmbor''1, 2005 Page 4 of 7' e *d. Other *b. *¢. Ordinance 2005-45' Amending KPB 5.12.105(D) to Require Late · Property Tax Exemption Applications from Senior Citizens and Disabled Veteran to be Filed During the Tax Year for Which the Exemption is Sought (Sprague) (Hearing 12/06/05) (Referred to Policies and Procedures Committee) .......................... 139 Petiti°n to Vacate a Portion'of a 33-foot Section Line Easement within Lot 11 Tice Acres (Plat HM 63-1146); Section 3, Township 6 South, Range 14 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2005-254; (Note: Alternate Right-of-Way will be Dedicated if Section Line Easement Vacated); Petitioners: Paul Taylor and Melinda Forrest of Anchor Point, Alaska; Location: Diamond Ridge Road area (Refe~ed to Lands Committee) ........................................................ 143 [Clerk's Note: The Planning Commission approved the above referenced vacation by unanimous consent at its regularly scheduled October 10, 2005 m**t~ng.J Petition to Vacate a Portion ora 33-foot Section Line Easement along the South Boundary of Tract A North Kenai Baptist Church Subdivision Amended (Plat I~ 2003-24) and (Plat KN 2003-76); Within Section 2, and Vacate a Portion of a 33-foot Section Line and a 10-foot Utility Eascmcm along the North Boundary of Lot 1 Lindsay Subdivision (Plat KN 81-62), within Section 1'1, Township 7 North, Range 12 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2005-250;'Petitioner: DenverE. Cop¢land of Nikiski, Alaska; Location: Nikiski area (Refen'ed to Lands Committee) ......................................... 158 [Clerk's Note: The Planning Commission approved the above referenced vacation by unanimous consent at its regularly scheduled October 10, 2005 m,eting. J Petition to Vacate Lacross Way and a Portion of Timber Lane Dedicated by Lacross Subdivision Part One (Plat KN 1720) and Vaeate East View Drive Dedicated by Lacross Subdivision Part One and Laeross Subdivision Part Two (Plat KN 1720) & (Plat KN 77- 186); within Section 23, Township 4 North, Range 11 West, Seward - Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File 2005-251; Petitioners: Jack P. and Megan L. Lacross of Soldotna, Alaska; Location: South of Soldotna (Referred to Lands Committee) ......................................................... 177 -- November i, 2005 Page 5 of 7 [Clerk's Note: The Planning Commission approved the above referenced vacation by unanimous consent at its regularly scheduled October 10, 2005 meeting. J *d. Petition to Vacate LaTouche Circle, a 60'-foot Right-of-Way Dedicated by Lake Hills Subdivision (Plat KN 78-120); within Section 1 and Section 12, Township 7 North, Range 12 West, Seward Meridian, Alaska; and within the Kenai Peninsula Borough; KPB File '2005-253; Petitioner: Jack D. Conright 0fNikiski, Alaska; Location: Nikiski area (Referred to Lands Committee) ..., ................. 189 [Clerk's Note: The Planning Commission approved the above referenced vacation by unanimous consent at its regularly scheduled October 10, 2005 meeting. J *e. Authorizing an Application for a Transfer and Relocation Liquor License Filed by TLS, Inc. dba TJ Seggy's in Kenai from current licensee Earle Robins & Jack Nicholas dba Bishop Creek Liquor Store (Referred to Finance Committee) ......................... 200 *f. Authorizing aa Application for New Liquor License Filed by Quartz Creek Enterprises, Inc. dba Peaks Restaurant in Cooper Landing (Refe~ed to Finance Committee) ............................. 211 *g. Authorizing an Application for Restaurant Designation Permit Filed by Quartz Creek Enterprises, Inc. dba Peaks Restaurant in Cooper Landing (Refe~ed to Finance Committee) ...................... 222 *h. 'Coa~firming Appointments to the Advisory Planning Commissions (Referred to Policies and Procedures Committee) ................. 223 Anchor. Point Seat Sames D. Gladish A · Brok Sharer . C Term Expires September 30, 2008 September 30, 2008 Cooper Landing Seat Term Expires George R. Siter, Jr. C September 30, 2008 Dominic Bauer · D September 30, 2007 PUBLIC COMMENTS AND PUBLIC PRESENTATIONS.(3 minutes per speaker) .. - _ ~..:-~ . ~:'' ........... · . ~ .. ... · .. . -- November 1, 2005 Pag~ 6 of 7 So ASSEMBLY MEETING AND HE~G ANNOUNCEMENTS November 4, 2005 November 7-11, 2005 November 15, 2005 9:00 AM - Noon 7:00 PM Joint Work Session Assembly Chambers w/Planning Commission 55~ AML Annual Conference Anchorage Regular Assembly Meeting Soldotna Ye ASSEMBLY COMMENTS U® PENDING LEGISLATION (This item lists legislation which will be addressed at a later date as noted.) We le Ordinance 2005-19-31' Accepting and Appropriating Two State Granm Totaling $460,000 for School Equipment and Supplies (Mayor) (Hearing 11/15/05) (Referred to Finance Committee) INFORMATIONAL MATERIALS AND REPORTS W. NOTICE OF NEXT MEETING AND ADJOURNMENT The next meeting of the Kenai Peninsula Borough Assembly will be held on November 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), K2 01A 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- 4 78-4441, Ext. 2160. Visit our website at www. borough, kenai, ak. us for copies of the agenda, meeting summaries, ordinances and resolutions. November 1, 2005 Page 7 of 7 .... E AGENDA ¢ AI CITY COUNCIL - REGULAR MEETING NOVEMBER 2, 2005 7:00 P.M. ,~¢/ KENAI CITY COUNCIL CHAMBERs KENAI. ALASKA http://www.ci.kenai.ak.us ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) 1. ITEM E: PUBLIC HEARINGS 1. Ordinance No. 2128-2005 --Increasing Estimated Revenues and Appropriations by $6,200 in the General Fund for a Library Grant. 2. Ordinance No. 2129-2005--Increasing Estimated Revenues and Appropriations by $6,555.55 in the General Fund for a Boys & Girls Club State Grant. 3. Ordinance No. 2130-2005 -- Enacting KMC 1.15.130 Entitled, "Telephonic Participation," Which Allows and Establishes Rules for Council Members to Telephonically Participate in Council Meetings. 4. Resolution No. 2005-48-- Directing the Continuation of the Project Entitled "Set Net Drive (From VIP Drive to Watergate Way)" and Designating What Improvements Are to be Included in This Project. 5. *Liquor License Transfer-- George & Ekaterina Pitsilionis, d/b/a Pizza Paradisos to George Pitsilionis, d/b/a Pizza Paradisos. 6. *Liquor License Transfer -- Kenai Golf Course, Inc., d/b/a Kenai Golf Course Caf6 to George Lagoutaris & Christina Lagoutaris, d/b/a Katrina's Greek & Italian Restaurant. 7. *Application for Restaurant Designation Permit-- George Lagoutaris & Christina Lagoutaris, d/b/a Katina's Greek & Italian Restaurant. ITEM G: OLD BUSINESS 1. Discussion -- Proposed Sale of Wetlands/The Conservation Fund. ITEM H: NEW BUSINESS 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding $15,000 3. *Ordinance No. 2131 --Increasing Estimated Revenues and Appropriations by $1,300 in the General Fund for the Staying Connected Grant. 4. *Ordinance No. 2132 --Increasing Estimated Revenues and Appropriations by $5,000 in the General Fund for a Donation Made by Tesoro Petroleum Co. to be Used for the Town Clock. 5. Approval -- Assignments of Shore Fishery Leases -- Tract 3 Shore Fishery Plat No. 71 and Tracts 5 & 6, Shore Fishery Plat No. 71/From Randale Canady to Kenai Salmon Company, Inc. 6. Approval -- Assignment/Amendment of Lease -- Lot 7, Block 2, Fidalgo Commercial Center -- From Commercial Development to William Borchardt. 7. Discussion -- Amendment of City of Kenai Mini-Grant Overview/prOcedures -- Possible Steering Committee Amendment. 8. Discussion -- McCollum/Aliak Drive L.I.D. -- City Manager Report to City Council. EXECUTIVE SESSION -- None Scheduled. ITEM N: ADJOURNMENT. The public is invited to attend and participate. Additional information is available through the City Clerk's office at 210 Fidalgo Avenue, or visit our website at h.._t_t~p://www.ci.kenai.ak.us. Carol L. Freas, City Clerk D590/211 MAKE PACKETS COUNCZL PACKET DzSTRZBUTZON COUNCZL MEE'T'ZNG bA'T'E: I Ma¥o~/Council Attorney / Taylo~/$p~in~le~/KebschulI / Clerk ~ City Mana~le~ / Public Works / Police Department (/ Finance / En~linee~ / / Senior Center' ~ Air~ort ~ Klm Library, /' Parks & Recreation /' Clarion Fire Deportment /'~ 5chmidt /' Mellish VISTA /~' Student Rep. KSRM AGENDA D:I:ST~BU~ON 5ewer Treatment Plant 5treats Shop bock Buildin~l Maintenance Animal Control Water/Sewer Counter DELIVER Council and Student Representative Packets to Police Department Dispatch desk. The Clarion, KSRM, Mellish & $chmidt's Office will pick their packet up in my office. The portion of the agenda published by the CIm'ion should be emailed as soon as possible after Noon on packet day. The came~a-~ead¥ agenda c'/myfile$/document$/minute$/agenda fo~m fo~ paper) is emailed to Denise at Peninsula C/ar/on (at email folder Work Session/Special Meetings, or Composition in Contacts or Ibell~acsalaska.net). Home Page documents (agenda, resolutions, ordinances for public hearing, and ordinances for introduction) are usually emailed to me and I hold them in my, HIM[. file. Place them onto the city's web$ite from there as soon as possible before leaving the office for the weekend.