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Home My WebLink About2018-02-07 Council Packet KENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 07, 2018 - 6:00 PM http://www.kenai.city A.CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AGENDA APPROVAL CONSENT AGENDA (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *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. B.SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) B.1.Alaska Permanent Capital Management – Kenai Permanent Fund Investment Performance for 2017, Outlook for 2018, and Establishment of the 2018 Investment Allocation and Benchmarks. [Clerk’s Note: It has been requested to allow 20-25 minutes to complete this presentation.] APCM Presentation.pdf C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D.PUBLIC HEARINGS D.1.Ordinance No. 2999-2018 – Increasing / (Decreasing) Estimated Revenues and Appropriations in the Airport Equipment Capital Project Fund and Authorizing Grant Amendments to Adjust Estimated Grant Proceeds as a Result of Proceeds from the Sale of Equipment Previously Purchased with Federal Aviation Administration Grant Funds. Ordinance No. 2999-2018.pdf D.2.Ordinance No. 3000-2018 – Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services (IMLS) Passed Through the Alaska State Library for Employee Travel and Training. Ordinance No. 3000-2018.pdf D.3.Ordinance No. 3001-2018 – Repealing and Re-Enacting Kenai Municipal Code Section 7.15.090- Sales, Surplus, Competitive Bidding to Provide Administrative Authority for the Disposal of Certain Surplus or Obsolete Supplies, Materials or Equipment. Ordinance No. 3001-2018.pdf D.4.Ordinance No. 3002-2018 – Increasing / (Decreasing) Estimated Revenues and 1 Kenai City Council Meeting Page 2 February 07, 2018 Appropriations in the Personal Use Fishery Fund for the Remaining FY2018 Expenditures which were Presented in the 2017 Kenai River Personal Use Fishery Report. Ordinance No. 3002-2018.pdf D.5.Ordinance No. 3003-2018 – Amending Kenai Municipal Code Section 17.10.010-Mandatory Connection and Abandonment of Old Well, and Section 17.20.010- Mandatory Connections and Abandonment of Old On-Site Sewer Systems, to Change the Mandatory Connection Requirements. Ordinance No. 3003-2018.pdf D.6.Ordinance No. 3004-2018 – Amending Kenai Municipal Code Section 1.15.050-Order of Business, to Amend the Use of the Pending Legislation Agenda Item and Make Other Housekeeping Changes. Ordinance No. 3004-2018.pdf D.7.Ordinance No. 3005-2018 – Amending Kenai Municipal Code Chapter 7.10-Sales Tax, to Exempt Public Water and Sewer Utility Services to Residential Housing from the City’s Levy of Sales Tax. Ordinance No. 3005-2018.pdf D.8.Resolution No. 2018-04 – Amending the City of Kenai Public Records Management and Record Retention Policy Adopted on May 17, 2017 by Resolution No. 2017-22 by Amending Retention Lengths on Meeting Packets and Providing for Retention for Business License Records and Making Other Housekeeping Changes. Resolution No. 2018-04.pdf D.9.Resolution No. 2018-05 - Adopting a Policy to Provide Procedures for Including Contingency in Contracts. Resolution No. 2018-05.pdf D.10.Resolution No. 2018-06 – Authorizing the City of Kenai Mayor to Sign Kenai Peninsula Borough Joint Resolution No. 2018-007 Requesting the Alaska Board of Fisheries Adopt a Policy to Rotate the Upper Cook Inlet Finfish Meeting Between the Three Principle Communities of Kenai/Soldotna, Palmer/Wasilla, and Anchorage. Resolution No. 2018-06.pdf D.11.Resolution No. 2018-07 – Consenting to the Vacation of Certain Rights-of-Way and Utility Easements within the Proposed Buxton Subdivision, Eagle Rock Addition. Resolution No. 2018-07.pdf D.12.Resolution No. 2018-08 – Pertaining to the Authorized Investments of, the Investment Allocations of, and Establishing Appropriate Benchmarks to Measure Performance of the City’s Permanent Funds for Calendar Year 2018. Resolution No. 2018-08.pdf D.13.Resolution No. 2018-09 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to Land Lease Application and Renewal Application Fees for Airport Reserve Land. Resolution No. 2018-09.pdf D.14.Resolution No. 2018-10 – Approving a Standard Lease Form for Leasing Airport Reserve Lands. Resolution No. 2018-10.pdf 2 Kenai City Council Meeting Page 3 February 07, 2018 E.MINUTES E.1.*Regular Meeting of January 17, 2018 01-17-18 Council Minutes - DRAFT.pdf E.2.*Corrected Minutes of May 20, 2014 05-20-14 Council Minutes.pdf F.UNFINISHED BUSINESS F.1.Ordinance No. 2992-2017 - Waiving the Requirements of KMC 17.20.010 - Mandatory Connections and Abandonment of Old On-Site Sewer Systems, for 2737 Iliamna Road. [Clerk’s Note: This Item was Postponed to this Meeting from the January 17, 2018 Meeting; A Motion to Enact is On the Floor.] Ordinance No. 2992-2017.pdf F.2.Ordinance No. 2993-2017 - Amending Kenai Municipal Code Chapter 14.25-Landscaping/Site Plan Regulations, to Require Landscaping and Site Plans for All Retention Basins, Commercial, Industrial and Multifamily Development and Land Clearing in Certain Zones in the City and Making other Material and Housekeeping Changes. [Clerk’s Note: This Item was Postponed to this Meeting from the January 3, 2018 Meeting; A Motion to Enact is On the Floor.] Ordinance No. 2993-2017.pdf G.NEW BUSINESS G.1.*Action/Approval – Bills to be Ratified. Payments over $15,000.pdf G.2.*Action/Approval – Purchase Orders Exceeding $15,000. Purchase Orders over $15,000.pdf G.3.*Action/Approval – Non-Objection to Liquor License Renewals for: • Acapulco Mexican Restaurant • Main Street Tap & Grill • American Legion Post #20 Liquor License Renewals.pdf G.4.*Ordinance No. 3006-2018 – Increasing Estimated Revenues and Appropriations by $1,441.42 in the General Fund for the Police Department to Purchase Supplies from Asset Forfeiture Funds Received from the State of Alaska. Ordinance No. 3006-2018.pdf G.5.*Ordinance No. 3007-2018 – Appropriating Available Fund Balance to the Multipurpose Facility Capital Project Fund for Facility Improvements Including the Purchase of New Heaters for the Player Benches and Spectator Area. Ordinance No. 3007-2018.pdf G.6.*Ordinance No. 3008-2018 – Accepting and Appropriating $1,600.00 from the Kenai Chamber of Commerce and Visitor Center (the Chamber) for a New Camera in Support of the City and the Chamber’s Joint Eagle Camera Project. Ordinance No. 3008-2018.pdf 3 Kenai City Council Meeting Page 4 February 07, 2018 G.7.Action/Approval – Consent to Non-Exclusive Easement to ACS of the Northland, Inc., for the Installation of Underground Telecommunication Utilities at Two Locations through Lands Owned by the City of Kenai. ACS Utility Easement.pdf G.8.Action/approval – Council Approval to Implement the “Read on the Fly Program” at the Kenai Municipal Airport. Read on the Fly Program.pdf G.9.Action/Approval – Authorizing the Issuance of a Request for Proposal for Audit Services. FY2018 City Audit Services.pdf H.COMMISSION/COMMITTEE REPORTS H.1.Council on Aging H.2.Airport Commission 01-11-18 Airport Summary - DRAFT.pdf H.3.Harbor Commission H.4.Parks and Recreation Commission H.5.Planning and Zoning Commission 01-24-18 P&Z Minutes - DRAFT.pdf H.6.Beautification Committee 01-09-18 Beautification Summary - DRAFT.pdf H.7.Mini-Grant Steering Committee I.REPORT OF THE MAYOR J.ADMINISTRATION REPORTS J.1.City Manager City Manager Report.pdf J.2.City Attorney J.3.City Clerk K.ADDITIONAL PUBLIC COMMENT K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker) 4 Kenai City Council Meeting Page 5 February 07, 2018 K.2.Council Comments L.EXECUTIVE SESSION - None. M.PENDING ITEMS - None. INFORMATION ITEMS Purchase Orders between $2,500 and $15,000 for Council Review Purchase Orders between $2,500 - $15,000.pdf N.ADJOURNMENT The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. 5 TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS INVESTMENT REVIEW for period ending December 31, 2017 City of Kenai Permanent Funds 6 Account Summary as of December 31, 2017 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS1 Account Inception September 2008 Total Deposits $20,329,733 Cumulative Withdrawals Includes Annual Distributions and Custodian Fees $9,593,402 Current Market Value December 31, 2017 $29,126,972 Annualized Account Return September 30, 2008 –December 31, 2017 +8.78% Gross, +8.51% Net Current Allocation 55% Equity / 45% Bonds Fee Schedule*0.17%Annual Effective Rate * Based on the annualized amount of the 12/17 invoice. 7 Account Snapshot by Year as of December 31, 2017 City of Kenai Permanent Funds Year Market Value at Year End Contributions Withdrawals 1 Year Return 3 Year Return 5 Year Return 2008 $17,825,369 $17,281,888 ---- 2009 $20,264,072 -$292,189 15.59 -- 2010 $21,909,108 -$894,524 13.09 -- 2011 $23,348,815 $2,526,702 $1,003,754 -0.14 9.29 - 2012 $24,971,837 -$1,101,462 11.98 8.14 - 2013 $27,018,862 -$1,222,877 13.49 8.26 10.65 2014 $27,289,929 -$1,316,929 6.01 7.70 8.75 2015 $26,001,547 $66,143 $1,353,010 -0.14 6.31 6.08 2016 $26,814,511 $55,000 $1,146,748 7.50 4.40 7.66 2017 $29,126,972 $400,000 $1,261,910 11.84 6.16 7.44 TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS2 Withdrawals data includes annual distributions and monthly custodian fees. All returns gross of fees and as of applicable year end. 8 $10 $15 $20 $25 $30 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017MillionsMarket Value as of December 31, 2017: $29,126,972 April 2017 $0.4MM June 2017 $1.3MM Historical Market Value as of December 31, 2017 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS3 Chart shows month-end portfolio market value from September 2008 to December 2017. Contributions and withdrawals greater than $250K displayed. June 2009 $0.3MM June 2010 $0.9MM June 2013 $1.2MM May 2012 $1.1MMJune 2011 $1.0MM May 2014 $1.3MM May 2015 $1.4MM April 2011 $2.5MM June 2016 $1.1MM 9 Portfolio Review as of December 31, 2017 TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS4 10 24.6% 0% 5% 10% 15% 20% 25% Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Four Key Themes Over the Past Year Fundamentals drove equities higher. 2017 REVIEW TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS5 Synchronized Growth 84 of 86 reporting countries experienced positive real GDP growth. 9% 12% 15% Dec Feb Apr Jun Aug Oct Dec Low Volatility Average volatility over the year was 43% below the long-term average. 0%10%20%30%40%50%60% 2013 2007 1999 2006 2017 2005 2000 2004 2003 2010 Positive Profits Earnings growth above expectations shielded equities from global risks. Markets Went Up, Data Backed It Up The MSCI All Country World Index is used as a proxy for global equities. Volatility measured with the VIX Index. Easy Monetary Policies Major central banks injected an additional $1.9 trillion into the global economy during 2017.11 Asset Class Performance as of December 31, 2017 International markets led equities higher in 2017. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS6 Asset class performance is represented by the stated index return. *Kenai performance is gross of fees and annualized for periods over 1 year. 0.8 0.9 1.7 2.6 3.5 4.3 12.0 13.2 16.2 21.8 25.0 37.3 -10% 0% 10% 20% 30% 40% Cash Citi 90 Day Tbill TIPS Barclays 0-5 Year U.S. TIPS Commodities Bloomberg Commodity Int'l Bonds Barclays Global Agg ex- US Hedged Fixed Income Barclays Aggregate Real Estate S&P U.S. REIT Kenai*Small Cap S&P 600 Mid Cap S&P 400 Large Cap S&P 500 Int'l Equity MSCI EAFE Emerging Markets MSCI EmergingTotal Return2017 Total Return 5 Year Annualized Return 2017 REVIEW 12 Asset Allocation as of December 31, 2017 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS7 PORTFOLIO REVIEW Asset Class % Assets Strategic Benchmark Range Market Value Fixed Income 43.1%45%$12,542,995 U.S. Fixed Income 36.8%40 35-65%$10,710,289 Cash 6.3%5 0-10 $1,832,706 Equities 56.9%55%$16,583,977 Large Cap 19.9%20 15-25%$5,791,110 Mid Cap 11.2%10 5-15 $3,264,216 Small Cap 6.2%5 0-10 $1,795,434 International 11.0%10 5-15 $3,192,147 Emerging Markets 5.0%5 0-10 $1,462,330 Real Estate 3.7%5 0-10 $1,078,740 Total $29,126,972 36.8% 6.3% 19.9% 11.2% 6.2% 11.0% 5.0%3.7% U.S. Fixed Income Cash Large Cap Mid Cap Small Cap International Emerging Markets Real Estate 13 Account Performance as of December 31, 2017 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS8 PORTFOLIO REVIEW 3.12 12.03 6.34 7.67 8.78 2.93 11.74 6.38 7.60 8.84 0% 4% 8% 12% 16% Q4 2017 1 Year 3 Year 5 Year Since InceptionTotal ReturnKenai PF Strategic Benchmark Performance is gross of fees and annualized for periods greater than one year. Inception performance begins on September 30, 2008. Strategic benchmark is a blended return of the account’s target allocation. 14 Market Outlook as of December 31, 2017 TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS9 15 Climbing the Wall of Worry Economy and earnings versus late cycle risks. MARKET OUTLOOK TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS10 Long-term, the global cyclical upturn in growth will be challenged by high debt levels (235% of GDP) and deteriorating demographics. Productivity growth could improve this outlook should relevant cyclical forces provide a boost. Maintain a modest overweight to international stocks •Gradually move towards neutral as the cycle matures Rebalance regularly to harvest gains and control risk •Expect modest returns relative to history Economy Earnings Valuations Technicals Extended cycle Lofty expectations 22% growth International Developed 27% growth Emerging Markets 26% growth U.S. 12% of U.S. growth from tax reform 0 5 10 15 20 25 30 S&P 500 MSCI EAFE MSCI EM Current Average Rates support full valuations Favorable backdrop for unloved equities -2% 0% 2% 4% 6% 8%1999200120032005200720092010201220142016Global GDP Pre-GFC Avg Post-GFC Avg 46% Bullish Business confidence up 29% from GFC low Consumer confidence up 67% from GFC low 4X more flows to bonds than equities since start of 2018 Dot com era peak 16 Long-Term Planning TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS11 17 Asset Allocation Considerations TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS12 LONG TERM PLANNING Factors City of Kenai Permanent Funds Perpetual Commensurate with Return Objective Cover Distributions of ≤ 5% Domestic Equity (lg/mid/sml), International Equity (developed/emerging), REITs, U.S. Intermediate Bonds,Cash Tax Exempt 18 Strong Returns —Modest Future GainsLONG TERM PLANNING TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS13 Source: J.P. Morgan Asset Management. 19 10 Year U.S. Treasury Rate & Core Inflation TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS14 LONG TERM PLANNING Source: FRB of St. Louis. Shaded areas indicate U.S. recessions. +6.3%: Annualized Total Return on U.S. Aggregate Bonds from 1997 to 2007 +3.9%: Annualized Total Return on U.S. Aggregate Bonds from 2009 to 2017 20 Projected vs. Realized Returns 2008-2017 City of Kenai Permanent Funds TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS15 LONG TERM PLANNING 8.0%8.8% 15.6% 13.1% -0.1% 12.0% 13.5% 6.0% -0.1% 7.5% 12.0% -2.0% 2.0% 6.0% 10.0% 14.0% 18.0% APCM's 2008 Expected Return Kenai PF Annualized Return 2008-2017 2009 2010 2011 2012 2013 2014 2015 2016 2017 Although returns vary from year to year, over a long time horizon Kenai’s returns have exceeded the expected return. 5-7 Year Horizon Annual Return 21 Wealth Simulation 10 Year Horizon City of Kenai Permanent Funds LONG TERM PLANNING $19.60 $32.45 $54.96 $15 $35 $55 $75 55% Equity / CurrentMillionsWorst Case Expected Best Case Confidence Level Likelihood of Achieving this Market Value or Better Out of 5,000 Trials 55% Equity / Current Best Case 5%250/5,000 $54,964,330 25%1,250/5,000 $40,162,540 Expected 50%2,500/5,000 $32,451,130 75%3,750/5,000 $26,190,210 Worst Case 95%4,750/5,000 $19,598,720 55% Equity / Current 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 4.5% Annual (MM)$1.34 $1.37 $1.38 $1.39 $1.42 $1.44 $1.45 $1.46 $1.48 $1.50 Data: Windham Portfolio Advisor. Simulation method: Monte Carlo. Portfolio starting value of $29 MM with no contributions. 4.5% annual withdrawal based on average distribution from 2010-2016. Cash flows are at a 50% confidence level. TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS16 22 Summary of 2017 Asset Allocation Review City of Kenai Permanent Funds 2018 marks the 10th year of utilizing the current investment methodology. The portfolio has provided an average annual return of 8.8% since inception, broadly in-line with the 8% expected return. Over the past decade, markets have operated in a declining interest rate environment and experienced strong returns. Given that it is unlikely for the next 10 years to be so robust for markets, the expected average annual return for the current portfolio has been lowered to 6.2%, with variability based on risk exposure. APCM’s current research is focused on evaluating investment opportunities within the context of the long-term outlook with the goal of optimizing portfolio risk/return characteristics. In 2018,APCM will be working with the City’s administration to develop an optimal portfolio for the next 10 years . Confirm the annual required return needed to support operations Evaluate different asset classes and/or strategies Conduct a comprehensive risk and return analysis for different allocations TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS17 LONG TERM PLANNING Risk and return data from Windham Portfolio Advisor. * Range provided is at the 95% confidence level. Asset Class 55% Equity / Current 20.0% 10.0% 5.0% 10.0% 5.0% 5.0% 40.0% 5.0% Return 6.2% Risk 9.9% Range*-13.6 to 25.9% Large Cap Equity Mid Cap Equity Small Cap Equity International Equity Emerging Markets Equity Cash APCM's Forward Looking Assumptions REITs U.S. Fixed Income 23 Appendix TRUSTED ADVISORS ▪MORE EXPERTS ▪BETTER ACCESS18 24 Portfolio AppraisalCITY OF KENAI PERMANENT FUNDSDecember 31, 2017YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityFNMA & FHLMC29,517 FHLMC POOL G14203 104.56 30,863 104.27 30,778 0.11 1,181 98 1.434.000% Due 04‐01‐26Accrued Interest98 0.0030,863 30,877 0.11 98CASH AND EQUIVALENTSCASH RECEIVABLE 11,711 11,711 0.04DIVIDEND ACCRUAL 22,702 22,702 0.08WF ADV GOVT MM FD‐INSTL #1751 798,292 798,292 2.74832,706 832,706 2.86CORPORATE BONDS200,000 MCDONALDS CORP M/T/N 104.35 208,698 100.60 201,192 0.69 10,700 3,567 1.705.350% Due 03‐01‐18200,000 COMMONWEALTH EDISON 123.20 246,400 102.70 205,392 0.71 13,900 6,409 1.896.950% Due 07‐15‐18200,000 SOUTHERN CAL EDISON 122.07 244,134 102.21 204,420 0.70 11,000 4,156 1.905.500% Due 08‐15‐18200,000 TOYOTA MOTOR CREDIT CORP 100.48 200,958 100.23 200,458 0.69 4,200 1,913 1.872.100% Due 01‐17‐19200,000 MICROSOFT CORP 117.24 234,472 103.04 206,088 0.71 8,400 700 2.004.200% Due 06‐01‐19200,000 TORONTO‐DOMINION BANK 101.89 203,782 100.03 200,052 0.69 4,500 1,200 2.232.250% Due 09‐25‐19200,000 HSBC USA INC 99.61 199,216 100.12 200,232 0.69 4,750 633 2.312.375% Due 11‐13‐19250,000 CAPITAL ONE 99.94 249,850 99.70 249,247 0.86 5,875 2,464 2.502.350% Due 01‐31‐20200,000 ENTERPRISE PRODUCTS OPER 112.75 225,494 106.84 213,686 0.73 10,400 3,467 2.535.200% Due 09‐01‐20250,000 PNC BANK NA 99.72 249,300 100.15 250,375 0.86 6,125 953 2.392.450% Due 11‐05‐20200,000 NBC UNIVERSAL MEDIA LLC 109.20 218,408 105.99 211,976 0.73 8,750 2,187 2.444.375% Due 04‐01‐21200,000 AMERICAN EXPRESS CREDIT 99.92 199,850 99.21 198,422 0.68 4,500 700 2.492.250% Due 05‐05‐21200,000 MORGAN STANLEY 114.98 229,964 109.38 218,768 0.75 11,000 4,675 2.725.500% Due 07‐28‐21125 Portfolio AppraisalCITY OF KENAI PERMANENT FUNDSDecember 31, 2017YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity200,000 GILEAD SCIENCES INC 96.28 192,564 97.58 195,154 0.67 3,900 1,300 2.561.950% Due 03‐01‐22200,000 BANK AMER CORP 99.34 198,686 102.30 204,600 0.70 6,600 3,117 2.803.300% Due 01‐11‐23200,000 AVALONBAY COMMUNITIES 100.82 201,632 99.77 199,550 0.69 5,700 1,678 2.892.850% Due 03‐15‐23150,000 DISCOVERY COMMUNICATIONS 98.88 148,320 99.73 149,590 0.51 4,875 1,219 3.303.250% Due 04‐01‐23150,000 NEWELL BRANDS INC 106.01 159,022 103.48 155,214 0.53 5,775 1,444 3.123.850% Due 04‐01‐23200,000 Waste Management Inc 100.24 200,478 98.06 196,118 0.67 4,800 613 2.792.400% Due 05‐15‐23200,000 AFLAC INC 104.97 209,950 103.85 207,692 0.71 7,250 322 2.863.625% Due 06‐15‐23200,000 BANK OF NEW YORK MELLON 97.83 195,666 96.92 193,842 0.67 4,400 1,650 2.792.200% Due 08‐16‐23200,000 JPMORGAN CHASE & CO 105.18 210,362 105.09 210,188 0.72 7,750 3,229 2.953.875% Due 02‐01‐24200,000 METLIFE INC 105.46 210,930 104.62 209,234 0.72 7,200 1,620 2.793.600% Due 04‐10‐24175,000 PRUDENTIAL FINANCIAL INC 103.15 180,505 103.87 181,769 0.62 6,125 783 2.833.500% Due 05‐15‐24200,000 WELLS FARGO & COMPANY 99.88 199,764 101.55 203,102 0.70 6,600 2,053 3.043.300% Due 09‐09‐24150,000 REYNOLDS AMERICAN INC 108.47 162,700 106.62 159,937 0.55 6,675 352 3.434.450% Due 06‐12‐25200,000 APPLIED MATERIALS INC 107.96 215,912 106.14 212,284 0.73 7,800 1,950 3.003.900% Due 10‐01‐25150,000 ANHEUSER‐BUSCH INBEV FIN 103.01 154,519 103.20 154,797 0.53 5,475 2,281 3.203.650% Due 02‐01‐26200,000 LOWE'S COS INC 100.05 200,098 100.35 200,708 0.69 6,200 999 3.053.100% Due 05‐03‐27Accrued Interest57,635 0.205,951,636 5,851,724 20.09 57,635DOMESTIC FIXED INCOME FUNDS/ETF999,900 GOLDMAN SACHS PRIME OBLIGATIONS FUND 1.00 1,000,067 1.00 1,000,000 3.43DOMESTIC LARGE CAP EQUITY FUNDS/ETF32,600 FLEXSHARES QUAL DIV ETF 40.67 1,325,712 45.03 1,467,978 5.04 NA226 Portfolio AppraisalCITY OF KENAI PERMANENT FUNDSDecember 31, 2017YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity16,200 SPDR S&P 500 ETF 110.49 1,789,889 266.86 4,323,132 14.84 NA3,115,601 5,791,110 19.88DOMESTIC MID CAP EQUITY FUNDS/ETF17,200 ISHARES CORE S&P MIDCAP 400 ETF 66.27 1,139,851 189.78 3,264,216 11.21 NADOMESTIC SMALL CAP EQUITY FUNDS/ETF23,375 ISHARES S&P SMALLCAP 600 INDEX ETF 31.00 724,633 76.81 1,795,434 6.16 NAINTERNATIONAL EQUITY FUNDS/ETF48,300 ISHARES ETF CORE MSCI EAFE 50.81 2,454,113 66.09 3,192,147 10.96 NAEMERGING MARKET FUNDS/ETF25,700 ISHARES ETF CORE MSCI EMERGING MKTS 37.29 958,305 56.90 1,462,330 5.02 NAREAL ESTATE13,000 VANGUARD REIT ETF 35.19 457,463 82.98 1,078,740 3.70 NAU.S. TREASURY 25,000 US TREASURY NOTES 99.94 24,984 99.54 24,886 0.09 312 41 1.781.250% Due 11‐15‐18200,000 US TREASURY NOTES 99.64 199,281 98.88 197,758 0.68 2,500 428 1.881.250% Due 10‐31‐19525,000 US TREASURY NOTES 99.53 522,519 99.02 519,834 1.78 7,219 337 1.891.375% Due 12‐15‐19125,000 US TREASURY NOTES 99.85 124,807 98.64 123,296 0.42 1,562 535 1.901.250% Due 02‐29‐20150,000 US TREASURY NOTES 100.06 150,094 96.84 145,266 0.50 1,687 5 2.061.125% Due 06‐30‐21375,000 US TREASURY NOTES 99.34 372,510 100.19 375,731 1.29 7,969 22 2.072.125% Due 06‐30‐21750,000 US TREASURY NOTES 100.59 754,414 99.57 746,775 2.56 15,000 2,596 2.122.000% Due 10‐31‐21525,000 US TREASURY NOTES 101.31 531,879 99.49 522,333 1.79 10,500 58 2.132.000% Due 12‐31‐21300,000 US TREASURY NOTES 98.24 294,727 101.36 304,068 1.04 7,500 2,833 2.242.500% Due 08‐15‐23500,000 US TREASURY NOTES 100.23 501,133 100.32 501,600 1.72 11,875 4,485 2.322.375% Due 08‐15‐24327 Portfolio AppraisalCITY OF KENAI PERMANENT FUNDSDecember 31, 2017YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity175,000 US TREASURY NOTES 100.65 176,135 94.19 164,829 0.57 2,844 369 2.401.625% Due 05‐15‐26250,000 US TREASURY NOTES 95.26 238,145 96.78 241,942 0.83 5,000 649 2.412.000% Due 11‐15‐26150,000 US TREASURY NOTES 100.24 150,363 98.69 148,032 0.51 3,375 1,275 2.412.250% Due 02‐15‐27Accrued Interest13,633 0.054,040,990 4,029,984 13.84 13,633AGENCIES250,000 FHLMC 99.73 249,325 98.82 247,055 0.85 4,250 1,086 2.141.700% Due 09‐29‐20250,000 FEDERAL HOME LOAN BANK ‐ STEP UP 99.85 249,625 99.48 248,697 0.85 5,000 653 2.112.000% Due 11‐14‐22300,000 FEDERAL FARM CREDIT BANK 100.00 300,000 99.54 298,623 1.03 8,550 1,591 2.922.850% Due 04‐24‐25Accrued Interest3,330 0.01798,950 797,706 2.74 3,330TOTAL PORTFOLIO 21,505,176 29,126,972 100 297,549 74,697428 PERFORMANCE HISTORYGROSS OF FEESCITY OF KENAI PERMANENT FUNDS711522558Percent ReturnPer PeriodTime Period Total AccountBlend Fixed IncomeBARC INT G/C BENCHInt'l EquityMSCI EAFE IndexDomestic Mid Cap EquityS&P 400 MIDCAP BENCHDomestic Small Cap EquityS & P 600 SMALL CAPS BENCHEmerging Market EquityMSCI EMERGING MARKET BENCHReal EstateS&P US REIT BENCHDomestic Large Cap EquityS&P 500 LARGE CAPS BENCHCash and Cash EquivalentsCITIGROUP 3MO TBILL INDEX12‐31‐16 to 01‐31‐17 1.21 1.18 0.20 0.27 3.37 2.90 1.69 1.68‐0.68‐0.40 6.50 5.47‐0.26‐0.34 1.84 1.90 0.00 0.0401‐31‐17 to 02‐28‐17 1.74 1.81 0.40 0.46 1.30 1.43 2.55 2.62 1.61 1.59 2.03 3.06 3.51 3.73 4.00 3.97 0.00 0.0402‐28‐17 to 03‐31‐17 0.35 0.26 0.05 0.04 3.19 2.75‐0.40‐0.39‐0.11‐0.12 3.53 2.52‐2.44‐2.70 0.05 0.12 0.00 0.0403‐31‐17 to 04‐30‐17 0.89 0.95 0.48 0.62 2.71 2.54 0.80 0.84 0.91 0.90 1.90 2.19 0.24 0.01 0.84 1.03 0.00 0.0504‐30‐17 to 05‐31‐17 0.65 0.80 0.39 0.50 3.53 3.67‐0.44‐0.49‐2.09‐2.13 2.34 2.96‐0.72‐0.85 1.03 1.41 0.00 0.0605‐31‐17 to 06‐30‐17 0.67 0.52‐0.13‐0.18 0.46‐0.18 1.58 1.62 2.91 2.99 1.22 1.01 2.61 2.34 0.77 0.62 0.00 0.0706‐30‐17 to 07‐31‐17 1.34 1.38 0.42 0.46 2.81 2.88 0.89 0.88 1.00 0.97 5.50 5.96 1.24 1.12 1.91 2.06 0.00 0.0807‐31‐17 to 08‐31‐17 0.04 0.11 0.54 0.59 0.11‐0.04‐1.53‐1.53‐2.46‐2.57 2.31 2.23‐0.26‐0.38 0.02 0.31 0.00 0.0908‐31‐17 to 09‐30‐17 1.45 1.25‐0.36‐0.45 2.39 2.49 3.89 3.92 7.79 7.71 0.02‐0.40‐0.11 0.11 2.35 2.06 0.00 0.0909‐30‐17 to 10‐31‐17 1.00 1.01 0.04‐0.01 1.67 1.52 2.27 2.26 0.86 0.95 3.22 3.51‐1.07‐1.17 1.85 2.33 0.00 0.0910‐31‐17 to 11‐30‐17 1.38 1.29‐0.30‐0.31 0.89 1.05 3.73 3.68 3.50 3.52 0.13 0.20 2.66 2.72 3.36 3.07 0.00 0.0911‐30‐17 to 12‐31‐17 0.71 0.60 0.16 0.11 1.51 1.61 0.26 0.22‐0.52‐0.52 3.65 3.59‐0.17‐0.16 1.50 1.11 0.00 0.10Date to Date12‐31‐16 to 12‐31‐17 12.03 11.74 1.90 2.14 26.66 25.03 16.23 16.24 13.02 13.23 37.33 37.28 5.17 4.33 21.25 21.83 0.00 0.84 29 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2999-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING I (DECREASING) ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT EQUIPMENT CAPITAL PROJECT FUND AND AUTHORIZING GRANT AMENDMENTS TO ADJUST ESTIMATED GRANT PROCEEDS AS A RESULT OF PROCEEDS FROM THE SALE OF EQUIPMENT PREVIOUSLY PURCHASED WITH FEDERAL AVIATION ADMINISTRATION GRANT FUNDS . WHEREAS, as part of the 2017 City Surplus Auction, a 1993 CAT loader, snow bucket, and snow blade attachment were declared surplus and sold at auction for $81,799; and , WHEREAS, the 1993 CAT loader, snow bucket, and snow blade attachment were originally purchased utilizing Federal Aviation Administration Airport Improvement Project grant funds ; and, WHEREAS, pursuant to Federal General Grant Requirements, should proceeds from the sale of equipment purchased with federal funds exceed $5,000, the recipient is required to return such proceeds to the federal government or in this case the City may offset the grant award for the replacement equipment; and,. WHEREAS, proceeds in the amount of $81, 799 will reduce the accepted grant amount by $76,687 and the City's required 6 .25% share by $5, 112. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the City Manager is authorized to amend the grant award from the Federal Aviation Adm inistration for replacement of the 1993 CAT loader to recognize the proceeds from the surplus sales of the original equipment. Section 2. That the estimated revenues be increased I (decreased) as follows: Airport Equipment Replacement Capital Project Fund Revenues: Increase I (Decrease) Estimated Revenues: FAA Grant Transfer from Airport Fund Sale of Other Equipment ($76,687) (5,112) 81 .799 $ -0- Section 3. That the City Manager is authorized to execute such grant amendments that may be required to fulfill the purpose of this Ordinance . New Tex t Underlined; [DE LETE D T EXT BRACKETED] 30 Ordinance No. 2999-2018 Page 2 of 2 Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision , or application directly involved in all controversy in which this judgment shall have been rendered , and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision , or application . Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption . ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7th day of February, 2018. ATTEST: Jamie Heinz, City Clerk Approved by Finance: _ ___.fi._~_:__;,_ __ _ BRIAN GABRIEL SR, MAYOR Introduced : January 17 , 2018 Enacted : February 7, 2018 Effective: February 7, 2018 New Text Underl in ed ; [DELETED TEXT BRACKETED] 31 'Vttf ~ «1/th a Pa$'~ e~ «1/th a Fat~ JI 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager'K ~h Mary L. Bondurant-Airport Manage January 10, 2018 Ordinance No. 2999-2018 -Snow Removal Equipment Grant Amendment The Airport received an FAA airport improvement grant offer on July 18, 2017, to acquire two (2) new pieces of Snow Removal Equipment (SRE). The project totaled$ 1,088,759 with the FAA share of$ 1,020, 712 based on 93. 75% and the Airport share of$ 68,047 based on 6.25%. One of the conditions of the grant specified that the City agrees to use proceeds from the trade- in or sale of equipment being replaced by this project to reduce the total project costs . The CAT loader with attachments sold at the 2017 City auction for a value of $81,799. Ordinance 2999-2018 will reduce the accepted grant amount by $76,687 and the City's required 6.25% share by $5, 112. If you have any questions , please contact me. Attachment: Ordinance No. 2999-2018 32 Sponsored by: Administration tlteeityef KENAI, ALASKA ~ CITY OF KENAI ORDINANCE NO. 3000-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, ACCEPTING AND APPROPRIATING A FEDERAL GRANT FROM THE INSTITUTE OF MUSEUM AND LIBRARY SERVICES (IMLS) PASSED THROUGH THE ALASKA STATE LIBRARY FOR EMPLOYEE TRAVEL AND TRAINING. WHEREAS, the Kenai Community Library has received a $1,250 grant from the IMLS passed through the Alaska State Library travel expenses of a staff member to attend the 2018 American Library Association Conference to be held in New Orleans, LA; and, WHEREAS, it is in the best interest of the City of Kenai to accept and appropriate these grant funds for the purpose intended . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the City Manager is authorized to accept a grant in the amount of $ 1,250 from IMLS passed through Alaska State Library for travel expenses of a staff member to attend the 2018 American Library Association Conference and to execute grant agreements and to expend the grant funds to fulfill the purpose and intent of this ordinance. Section 2. That estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Library -Federal Grants $1,250 Increase Appropriations: Library -Travel & Transportation $1,250 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision , or application directly involved in all controversy in which this judgment shall have been rendered , and shall not affect or impair the val idity of the remainder of this title or application thereof to other persons or circumstances . The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7th day of Februa ry , 2018. New Text Underlined ; [DELETED TEXT BRACKETED) 33 Ordinance No. 3000-2018 Page 2 of 2 ATTEST: Jamie Heinz, City Clerk BRIAN GABRIEL SR , MAYOR Approved by Finance ___ _ Introduced : January 17, 2018 Enacted : February 7, 2018 Effective: February 7, 2018 New Text Underlined; [DELETED TEXT BRACKETED) 34 'litff ar «1/t/i a Pa~~ °''tt «1/t/i a Fat~ JI 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Te lepho ne: (907) 283-7535 I Fax : (907) 283-3014 www. kenai.c ity MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager\? o . Mary Jo Joiner January 9, 2018 Ordinance 3000 -2018 -Continuing Education Gran t for Library The Alaska State Library receives funds from the Institute of Museum and Library Services (IM LS ) to pay for continuing education grants. These tra vel funds allow staff members to attend a continuing education workshop or conference . These funds can be spent on travel , lodging, per diem and registration expenses. This year Mary Jo Joiner has been awarded funds ($1 ,2 50) to attend the American Library Association Conference to be held in New Orleans , Louisiana in June 2018 . This ordinance will appropriate the $1,250 grant to allow Ms . Joiner to attend the conference. Your consideration is appreciated. 35 GOVER NOR BI LL W Al.KBR January 9, 2018 Mary Jo Joiner Kenai Community Library 163 Main Street Loop Kenai, AK 99611 Dear Mary Jo, Department of Education & Early Development DIVISION OP I I BRARIES, ARCHIVES & MU SEUMS Alaska State Library PO Box 110571 Juneau, Alaska 9981 1-0571 Mai n: 907.465-2910 Fa x: 907.465 -2 151 Congratulations! The State Library has reviewed your FY2018 continuing education application and has awarded Federal funds In the amount of up to $1,250.00 to reimburse your attendance at the ALA 2018 Conference to be held in New Orleans, LA. We are delighted that your library will receive this grant. The State Library uses federal funds received from the Institute of Museum and Library Services (IMLS} to pay for continuing education grants. Please read the second page in this packet carefully. In order to use IMLS funds to reimburse your continuing education costs, you must attend at least one training session that falls under the topics listed on that form. Once you have completed your continuing education, you must submit the grant reimbursement form, any required receipts, and your final report about the. training you attended. These forms are available at http://library.state .ak.us/dev/grants.html. You must submit a final report form in order to be reimbursed. If you have questions or need more Information, please email me at tracy.swaim@alaska .gov or call me at 907-465-1018. Once again, congratulations and good luck with your continuing education. Sincerely, I~ Tracy Swaim Grants & Statistics Librarian 36 THE STATE 0~LASKA GOVERN OR B ILL W Al.KJ!R January 9, 2018 Mary Jo Joiner Kenai Community Library 163 Main Street Loop Kenai, AK 99611 Dear Mary Jo, Department of E ducation & Early Development DIVISION OF I lRRARIES, ARCHIVES & MUSEUMS Alaska State Libra ry PO Box 110571 Juneau. Alaska 99811-057 1 Main: 907.465-29 10 Fax: 907 .4 65-2 151 Congratulations! The State Library has reviewed your FY2018 continuing education application and has awarded Federal funds in the amount of up to $1,250.00 to reimburse your attendance at the ALA 2018 Conference to be held In New Orleans, LA. We are delighted that.your li brary wil l receive this grant. The State Library uses federal funds received from the Institute of Museum and Library Services (IMLS) to pay for continuing education grants .. Please read the second page in this packet carefully. In order to use IMLS funds to reimburse your continuing education .costs, you must attend at least one training session that falls under the topics listed on that form. Once you have completed your continuing education, you must submit the grant re i mbursement form, any required receipts, and your final report about the training you attended. These forms are available at http:Ulibra ry.state.ak.us/dev/grants.html. You must submit a final report form in order to be reimbursed. If you have questions or need more Information, please email me at tracy.swaim@alaska .gov or call me at 907-465-1018. Once again, congratulations and good luck with your continui ng education. Sincerely, Tracy Swaim Grants & Statistics Librarian 37 Sponsored by : Ad mi nist ration CITY OF KENAI ORDINANCE NO. 3001-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, REPEALING AND RE- ENACTING KENAI MUNICIPAL CODE SECTION 7 .15 .090-SALES , SURPLUS, COMPETITIVE BIDDING TO PROVIDE ADMINISTRATIVE AUTHORITY FOR THE DISPOSAL OF CERTAIN SURPLUS OR OBSOLETE SUPPLIES, MATERIALS OR EQUIPMENT. WHEREAS , Kenai Munici pal Code 7.15.090 provides the process for the City's disposal of s urplus or obsolete goods ; and , WHEREAS , t he process generally requ ires the Council to declare every item to be obsolete or surplus before the City can dispose of it; and , WHEREAS, the City's recent e xperience sell ing obsolete and surplus items through an on line auction site demonstrated that the City will likely benefit financially and save administrative time by selling obsolete or surplus items when they are no longer needed by the City as opposed to the current practice of storing items for an annua l sale; and , WHEREAS , authorizing the City manager to dispose of certain obsolete or surplus goods wi t hout Council approval will increase efficiencies for the City and is intended to ma ximize the Ci ty's financial returns . NOW, THEREFORE , BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. Repea l and re-enact ment of Section 7.15.090 of the Kenai Municipal Code : That Kenai Municipal Code, Section 7.15 .090 -Sales , surplus, competitive bidding, is hereby repealed and re-enacted as follows : [7.15.090 SALES, SURPLUS, COMPETITIVE B IDD ING. (A) EXCEPT AS PROVIDED IN SUBSECTION (D) NO SURPLUS OR OBSOLETE SUPPLIES, MATERIALS , OR EQUIPMENT MAY BE SOLD (EXCEPT BY TRADING IN ON OTHER GOODS OR SERVICES ) UNTIL THE COUNCIL SHALL HAVE DECLARED THEM OBSOLETE OR SURPLUS . BEFORE THE CITY MANAGER SELLS ANY SURPLUS OR OBSOLETE SUPPLIES, MATERIALS, OR EQUIPMENT, EXCEPT AS OTHERWISE PROVIDED IN THE NEXT SECTION , HE OR SHE SHALL ADVERTISE THEM FOR SALE IN A NEWSPAPER OF GENERAL CIRCULATION IN THE C ITY OR GIVE NOTICE IN SUCH MANNER AS HE OR SHE DEEMS NECESSARY ADEQUATELY TO REACH PROSPECTIVE BUYERS TO G IVE THE M A N OPPORTUNITY TO MAKE BIDS . ALL BIDS SHALL BE SEALED AND SHALL BE OPENED IN PUBLIC AT A DESIGNATED TIME AND PLACE , EXCEPT WHEN THE SALE IS BY AUCTION OR BY AN INTERNET SALE PROCESS . New Text Underli ned ; [DELETED TEXT BRACKETED] 38 Ordinance No. 3001-2018 Page 2 of 3 (B) THE COUNCIL MAY BY RESOLUTION , INCLUDE SUCH TERMS AND CONDITIONS AS IT DEEMS APPROPRIATE , DECLARE AND AUTHORIZE SALE OF SURPLUS OR OBSOLETE SUPPLIES, MATERIALS OR EQUIPMENT BY A BROKER IF THE NATURE OF ITEMS IS SUCH THAT SALE BY BROKER IS IN THE BEST INTEREST OF THE CITY. THE CITY MANAGER SHALL SUBMIT A WRITIEN REPORT TO THE COUNCIL OF ANY ITEM SOLD BY A BROKER INCLUDING THE COMMISSION, BUYER, AND THE TERMS AND CONDITIONS OF THE SALE. SUCH WRITIEN REPORT SHALL BE INCLUDED IN A COUNCIL PACKET WITHIN THIRTY (30) DAYS AFTER THE SALE DATE . (C) THE CITY MANAGER MAY REPEATEDLY REJECT ALL BIDS AND ADVERTISE OR GIVE NOTICE AGAIN . HE OR SHE SHALL SELL SUCH SUPPLIES, MATERIALS, OR EQUIPMENT TO THE HIGHEST RESPONSIBLE BIDDER FOR CASH. IN CASE OF A TIE, HE OR SHE MAY SELL TO EITHER OF THE BIDDERS TYING, OR MAY DIVIDE THE SALE AMONG TWO (2) OR MORE TYING, ALWAYS SELLING TO THE HIGHEST RESPONSIBLE BIDDER OR BIDDERS FOR CASH. (D) COLLECTION MATERIALS REMOVED BY THE LIBRARIAN PURSUANT TO THE LIBRARY'S COLLECTION DEVELOPMENT POLICY MAY BE SOLD, TRADED OR OTHERWISE DISPOSED OF WITHOUT FURTHER DECLARATION BY COUNCIL AND IN ANY MANNER DEEMED APPROPRIATE BY THE LIBRARIAN AS LONG AS THE SALE, TRADE OR DISPOSAL IS IN THE BEST INTEREST OF THE LIBRARY. ALL ETHICAL AND CONFLICTS OF INTEREST PROVISIONS DESCRIBED BY CITY ORDINANCE, RESOLUTION, POLICY, OR REGULATION MUST BE FULLY COMPLIED WITH IN SUCH SALE, TRADE, OR DISPOSAL. WITHIN THIRTY (30) DAYS OF THE END OF EACH FISCAL YEAR , THE LIBRARIAN SHALL PROVIDE A FULL ACCOUNTING TO THE CITY MANAGER AND COUNCIL OF ALL MATERIALS SOLD, TRADED OR OTHERWISE DISPOSED OF THE PRIOR FISCAL YEAR] 7.15.090-Disposal of Surplus or Obsolete Materials and Equipment a. Except as provided in in subsection (c) below. the City Manager. may authorize the sale. trade. or disposal by other means of surplus or obsolete suppl ies materials and equipment no longer needed by the City with an estimated value of $50,000 or less . All sales. trades or disposals of surplus or obsolete property must be advertised in a manner reasonably designed to reach prospective buyers. must be made available to the public and must be disposed of in a manner reasonably designed to obtain the highest price or benefit for the City. All departments of the City shall be notified of the availability of surplus or obsolete goods at least 10 bus iness days prior to the goods being made available for purchase. trade or transfer to a non-City entity. The City Manager must make a written report to the City Council of all surplus or obsolete goods within 30 days of sale . trade or disposal of surplus or obsolete goods. b. The sale . trade or disposal by other means of surplus or obsolete supplies materials and equipment no longer needed by the City with an estimated value of greater than $50,000 must be approved by resolution of the City Council. c. Collection materials removed by the librarian pursuant to the library's collection development policy may be sold. traded or otherwise disposed of in any manner deemed appropriate by the librarian as long as the sale. trade or disposal is in the best interest of the library. Within thirty (30) days of the end of each fiscal year. the librarian shall provide a full accounting to the City Manager and Council of all materials sold. traded or otherwise disposed of the prior fiscal year. New Text Underlined ; [DELETED TEXT BRACKETED] 39 Ordinance No. 3001-2018 Page 2 of 3 New Text Underlined; [DELETED TEXT BRACKETED] d. All ethical and conflicts of interest provisions provided by City ordinance, resolution, policy, or regulation must be fully complied with in all sales, trades, or disposals. Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of February, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, City Clerk Introduced: January 17, 2018 Enacted: February 7, 2018 Effective: March 9, 2018 40 'V/ffa;-e t11/t~ a Pa~~ tt'tj t11/t~ a Fu.tare" 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax : (907) 283-3014 www. kenai. city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager V · D . January 9, 2018 Surplus and Obsolete Goods/Ordinance No. 3001-2018 Ordinance 3001-2018 repeals and re-enacts KMC 7.15.090 to authorize the City Manager to sell or otherwise dispose of certain obsolete and surplus goods without action by Council. The City held its first sa le of surplus and obsolete materials and equipment uti li zing an online auction system. Consistent with many other municipalities' experiences, the results exceeded our past performance in holding an onsite physical auction. The City generally received higher values for its listed items and saved employee time and resources. Increased efficiencies are expected if the City moves to a practice of listing su rplus and obsolete materials and equipment as the items become surplus or obsolete, rather than holding , inventorying , and storing the materials and equipment for a sale once a year. Under the current code, KMC 7.15 .090 -Sa les , surplus , competitive bidding , all items (aside from library materials) must be declared surplus or obsolete by the Council prio r to sale . The administration recommend, KMC 7 .15.090 be amended to allow the City Manager the authority to determine items estimated to have a value of $50 ,000 or less to be surplus or obsolete for the purposes of sale or disposal. As a comparison, the Kenai Peninsula Borough and So ld otna appear to have no limit on what can be administratively disposed of, Wasi ll a and Palmer have a $10,000 limit and Juneau has a $50,000 li mit on administrative disposals . The new proposed code would require reasonab le advertising , a public process and sale to the highest bidder. Additionally, a report would be provided to Council after each sale . Your consideration is appreciated . 41 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3002-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, INCREASING I (DECREASING) ESTIMATED REVENUES AND APPROPRIATIONS IN THE PERSONAL USE FISHERY FUND FOR THE REMAINING FY2018 EXPENDITURES WHICH WERE PRESENTED IN THE 2017 KENAI RIVER PERSONAL USE FISHERY REPORT. WHEREAS, actual revenues in the Personal Use Fishery Fund were less than projected amounts for FY2018; and, WHEREAS, budget adjustments are needed to provide for expending of funds as detailed in 2017 Dip Net Report for the remainder of FY2018. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. That the estimated revenues and appropriations be increased I (decreased) as follows: Personal Use Fishery Fund Revenues : Increase I (Decrease) Estimated Revenues : Beach Parking Beach Camping Dock Launch & Park Dock Parking Only Participant Drop-off Fee Other Expenditures: Increase I (Decrease) Expenditures: Public Safety -Salaries Public Safety -Overtime Public Safety -Medicare Publ ic Safety -Social Security Public Safety -Unemployment Insurance Public Safety -Workers' Compensation Public Safety-Small Tools/Minor Equipment Public Safety -Professional Services Streets -Salaries Streets -Overtime Streets -Leave Streets -Medicare New Text Und e rlined ; [DELETED TE XT BRACKE TED] ($12 ,571 ) (28,731) (18 , 152) (2 ,991 ) (3,519 ) 1,209 ($64.755 ) ($ 4 ,108) 254 (56 ) (239 ) (129) (232 ) 2,200 8 ,700 546 (3 ,616 ) (88 ) (55 ) 42 Ordinance No. 3002-2018 Page 2 of 3 Streets -Social Security Streets -PERS Streets -Unemployment Insurance Streets -Workers' Compensation Streets -Health Insurance Streets -Supplemental Retirement Streets -Operating & Repair Supplies Streets -Rentals Parks, Recreation & Beautification -Salaries Parks, Recreation & Beautification -Overtime Parks, Recreation & Beautification -Leave Parks, Recreation & Beautification -Medicare Parks, Recreation & Beautifi cation -Social Security Parks, Recreation & Beautification -PERS Parks , Recreation & Beautification -Unemployment Insurance Parks , Recreation & Beautification -Workers' Compensation Parks , Recreation & Beautifica tion -Health Insurance Parks , Recreation & Beautification -Supplemental Retirement Parks, Recreation & Beautification -Office Supplies Parks, Recreation & Beautification -Operating & Repair Supplies Parks, Recreation & Beautification -Small Tools/Minor Equipment Parks, Recreation & Beautification -Communications Parks, Recreation & Beautification -Printing & Binding Parks, Recreation & Beautification -Utilities Parks, Recreation & Beautification -Repair & Maintenance Parks, Recreation & Beautification -Renta ls Parks, Recreation & Beautification -Miscellaneous Boating Facility -Wages Boating Facility -Overtime Boating Fac ility -Leave Boating Facil ity -Medicare Boating Facility -Social Security Boating Facility -PERS Boating Facility -Un emp loyment Insurance Boating Facility -Workers' Compensation Boating Facility -Health Insurance Boating Facility -Supplemental Retirement Boating Facility -Operating & Repair Supplies Boating Facility -Printing & Binding Boating Facility -In s urance Boating Facility -Rentals 18 (873) (52) (125) (1,04 1) (63) (2,855) (6,925) (4,422) (11 ,631) (225) (246) (44) (4,607) (36 7 ) (625) (2,857) (185) 700 (256) 2,205 (1,014) (5, 170) (6) 495 (18,277) 20 (1,660) (1,563) 80 (57) 124 (2,018) (138) (277) (767) (232) (525) (1 ,500) (21) (950) ($64,755) Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged in valid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, o r application directly involved in all controversy in which this judgment shall ha ve been rendered , and shall not affect or impair the va lid ity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of th is ordinan ce even without such part, provision , or appli cation. New Text Underlin ed; [DELETED TEXT BRACKETED) 43 Ordinan ce No. 3002-201 8 Page 2 of 3 Section 4. Effective Date : That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption . ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7th day of February, 2018. ATTEST: Jamie Heinz, City Clerk Approved by Finance : --~-+-___,:f_~A...-~~-- BRIAN GABRIEL SR ., MAYOR Introduced : January 17, 2018 Enacted: February 7 , 2018 Effective : February 7 , 2018 New Text Underlined; [DELETE D TE XT BRACKE TED] 44 'l!tfla;-e «1/t/i a Pa~~ Ot'tf «1/t/i a Fat~ 11 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www. kenai. city MEMORANDUM TO: THROUGH : FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager\/· c:::> • Terry Eubank, Finance Director /./. January 10, 2018 Ordinance 3002-2018 Increasing and decreasing revenues and appropriations in the Personal Use Fishery Fund for FY2018 . The purpose of this memo is to recommend passage of Ordinance 3002-2018 . Ordinance 3002-2018 will decrease appropriations in the Personal Use Fishery Fund as FY2018 revenues received during the fishery were below projected amounts. The Ordinance in total will decrease both budgeted revenues and appropriations. If adopted, sufficient budget will be available to complete FY2018 tasks described in the 2017 Personal Use Fishery Report. Exhibits A thru C of the report are attached and show the remaining task items as well as the projected financial performance for the fund. At year-end, the fund is projected to have a fund balance of $274 ,651 . Capital expenditures for South Spruce Street w idening and electrical upgrades, Main St. utility installation, and dock ramp excavation are still in the development stages are are not funded by the action of this Ordinance. Funding for these projects is ex pected to come from funds previously appropriated from the Personal Use Fishery Fund for South Beach Access expenditures that have now been reimbursed by a grant from the State of Alaska . Once the Administration determines the actual work to be co mpleted and estimated costs, an additional Ordinance will be presented for your approval to establish the funding for the projects. Your support for Ordinance 3002-2018 is appreciated . attachments 45 FY2018 Remaining Operational Requests-P . Safety 2 Each TEO 's to be hired June 1, 2017 for field training prior to fishery. 180 hours each with no overtime. TEO A. SMALL TOOLS 1 . Personal floatation device (2 each). 2. Dry suit s (2 each). B. PROFESSIONAL SERVICES 1. Boat operator course. D. INSURANCE 1. General liabil ity. 006-421-0100 $ 6,426.00 006-421-0400 93.00 006-421-0450 398.00 006-421-0600 32 .00 006-421-0700 201.00 006-421-2024 2,200.00 006-421-4531 8,700.00 006-421-4536 230.00 Total $ 18,280.00 Rate Per Hour $ 19.86 Hours Total 360 $ 7,150.00 $ 400.00 1,800.00 $ 2,200.00 $ 8,700.00 $ 230 .00 $ 18,280.00 Exhibit A Pagel of 4 46 FY2018 Remaining Operational Request Streets A. INSTALLATION OF SOUTH BEACH BARRICADE 1. Wages & Benefits 2. Fuel & Materials 3. Equipment Rental B. GRADING AND DUST CONTROL OF IMPACTED ROADS 1. Wages & Benefits 2. Fuel 3. Equipment Rental C. INSURANCE 1. General liability. Total 006-433-0100 $ 006-433-0300 006-433-0400 006-433-0500 006-433-0600 006-433-0700 006-433-0800 006-433-0900 006-433-2022 006-433-4536 006-433 -4539 3,756.00 240.00 54.00 1,720.00 20.00 158.00 1,050.00 12.00 1,900.00 106.00 3,600.00 Total $ 12.616.00 $ 3,505.00 $ 400.00 $ 1,200.00 $ 5,105.00 $ 3,505.00 $ 1,500.00 $ 2,400.00 $ 7,405.00 $ 106.00 s 12,fllfi.QQ Exhibit A Page2 of 4 47 FY2018 Remaining Operational Request P&R A. Contract administration, hiring, planning, supervision and North Beach grating clean-out 1. Wages & Benefits $ 29,649.00 B. OFFICE SUPPLIES 1. Receipt labels. C. OPERATING/REPAIR SUPPLIES 1. North Beach interpretive sign replacement D. SMALL TOOLS 1. Shack spa re printer. 2. Computer/Network replacement. $ 700.00 $ 2,500.00 $ 1,200.00 2,000.00 3. Camera upgrades and replacement. 1,300.00 E. PROFESSIONAL SERVICES 1. Point of sale software & dipnet app modifications and improvements F. PRINTING & BINDING 1. DOOR HANGERS G . INSURANCE 1. General liability. H. Utilities 10. Fee Shack Electric Total 006-445-0100 $ 17,449.00 006-445-0300 183.00 006-445-0400 257.00 006-445-0450 6.00 006-445-0500 4 ,816.00 006-446-0600 89.00 006-445-0700 99.00 006-445-0800 6,227.00 006-445-0900 523.00 006-445-2021 700.00 006-445-2022 2 ,500.00 006-445-2024 4,500.00 006-445-4531 006-44 5-4 5 3 5 006-445-4536 006-445 -453 7 3,500.00 2,500.00 1,487.00 898.00 Total $ 45.734.00 $ 4,500.00 $ 3,500.00 $ 2,500.00 $ 1,487.00 $ 898.00 s 45 1734.QO Ex hibit A Page3 of 4 48 FY2018 Remaining Operational Request Dock A. DOCK FLOAT REPAIR 1. Wages & Benefits 2. Fuel & Materials 3. Equipment Renta l B. NO WAKE ZONE SETUP AND PARKING LOT PREPARATION. 1. Wages & Benefits 2. Fue l, Signs & Materials 3. Equipment Rental C. TEMPORARY DOCK WORKER RECRUITMENT 1. Wages & Benefits 2. Advertising D. INSURANCE 1. Genera l liability. Tota l 006-460-0100 7,107 .00 006-460-0300 460.00 006-460-0400 102 .00 006-460-0500 1,563.00 006-460-0600 38.00 006-460-0700 298.00 006-460-0800 2,044.00 006-460-0900 23.00 006-460-2022 1,850.00 006-460-4534 250.00 006-460-4536 235 .00 006-460-4539 3,320.00 Total s 17!2~Q.QQ $ 4,429.00 500.00 2,000.00 6,929.00 $ 6,116.00 1,350.00 1,320.00 8,786.00 $ 1,090.00 250.00 $ 1,340.00 $ 235.00 S 17.29Q.QO Exhibit A Page4 of 4 49 FY18 Capital Requests Requested Department Item Parks and Rec. South Spruce widening and electrical upgrades Parks and Re c. Main St. utility installation Dock Do ck ramp excava tion Considered but not requested. Department Item None Cost $ 35,000.00 7,500.00 6,200.00 $ 48,700.00 Cost Note : Funding for these capital improvements is available in the PU Fishery Cap ital Project Fund . $50,000 was previous ly appropriated from the PU Fishery Fund for South Beach Access Improvements. With the sa le of the Dragseth house , PU Fishery funds previously expended have been reimbursed wi th grant funds making the $50,000 available for redirecti o n to new projects. No new funding is needed from the PU Fishery Fund for co mpletion of these projects. Exhibit B 1of1 50 City of K enai Fiscal Year 2018 Financial Projections Fund: 006 -Personal Use Fishery Fund Council• Adopted Amended YTD FY2018 FY 2018 Budget A ctual Projected Revenues B each Parking $ 183,000 $ 183,000 $ 170,429 $ 170,429 Beach Camping 239,000 239 ,000 210,269 210,269 Dock La unch & Park 130,000 130,000 11 1,848 11 1,848 Dock Parki ng Only 15,000 15,000 12,009 12,009 Parti cipant Drop-off Fee 11,000 11 ,000 7,481 7,48 1 Interest Earnings 750 750 750 PERS Grant 2,312 2 ,312 2,312 Other (4,500) (4,500) (1,126) (1 ,126) Credit Card T ransaction Fees T otal Revenue 576,562 5 76,562 510,910 513,972 Expenditures P ublic Safety $ 109,195 $ 109,195 $ 97,305 $ 115,585 Streets 51,506 51,506 23,761 36,377 Boating Facili ty 72,347 72,347 45 ,553 62,843 Parks, Recreation & Beautification 279 ,584 279,584 187,338 233,072 Total Expenditures 512,632 512,632 353,957 447,877 Contribution To/(From) Fund Balance: 63,930 63,930 156,95 3 66,095 P rojected La pse (23,150) 5,000 5,000 Adjusted (Deficit)/Surplus 87,080 68,930 156,953 71 ,095 Beginning Fund Balance 149,066 203,556 203,556 203,556 Ending Fund Balance $ 236,146 $ 272,486 $ 360,509 $ 274,651 • Council Adopted Budget incl udes annua lly adopted budget and carryforward encumbrances. $ $ Projected % Variance Available 12,571 6.87% 28,731 12.02% 18, 152 13.96% 2,991 19.94% 3,519 31.99% 0 .00% 0.00% 0.00% 0.00% 65,964 11.44% 6 ,390 -5 .85 % (15 ,129) 29.37% (9,504) 13.14% {46,512) 16.64% {64,755) -12 .63% 1,209 1,209 Exhib it C Pa ge 1of6 51 City of Kenai Fiscal Yea r 2018 Personal Use Fishery Summary by Line Item Council * Account Expens e Adopted Proj ec ted FY2018 Projected % Number Description FY2 018 Budget Actual Proj ec ted Var iance Available Salaries a nd Benefits 0100 Sa laries $ 11 3,790 $ 104, 146 $ 69,408 $ 104 ,146 $ 0.00 % 0200 Overtime 57,821 41,265 41 ,265 41 ,265 0.00% 0250 Hol iday Pay 0300 Leave 1, 11 6 883 883 0 .00% 0400 Medicare 2 ,503 2,089 1,583 2,089 0 .00 % 0450 Social Security 5,877 5,(36 5,332 5,736 0.00 % 0500 PERS 19 ,210 11 , 712 3,613 11 , 712 0 .00 % 0600 Unemployment Insurance 865 179 179 0.00 % 0700 Worke rs Compensation 5,592 4 ,333 3,577 4 ,333 0.00 % 0800 Health & Life Insurance 18,766 14 , 101 4,780 14 , 101 0.00 % 0900 Supplemental Retirement 1,570 1,090 532 1,090 0.00% Total Salaries & Benefits $ 227 , 110 $ 185,534 $ 130,090 $ 185,534 $ 0 .00 % Maintenance and Operations 2021 Office Suppl ies 700 700 2022 Operating & Repair Su ppl ies 13 , 100 9 ,464 3,2 14 9,464 0.00% 2024 Small ToolsfMi nor Equ i pment 3,005 7 ,410 710 7,410 2026 Computer Software 4531 Professional Services 3,500 12,200 12 ,200 4532 Communications 1,600 586 586 586 0.00% 4533 Travel & Transportation 4534 Advertising 250 250 250 0.00% 4535 Printing & Binding 9 ,170 2,500 2 ,500 0.00% 4536 Insurance 2 ,079 2,058 2 ,058 4537 Utilities 1,078 1,072 174 1 ,072 4538 Repair & Maintenance 495 495 495 4539 Rentals 135,240 109,088 102 , 168 109,088 0 .00 % 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Pub lications 4999 General Contingency 0.00% 5041 Miscellaneous 4,000 4 ,020 4 ,020 4,020 5045 Depreciation 504 7 Grants to Agencies Total Maint. and Operations $ 173,022 $ 149,843 $ 111 ,367 $ 149,843 $ 0.00 % Capital Outlall & Tra nsfers 8061 Land 8062 Buildings 8063 Improvements 0 .00% 8064 Machinery & Equipment 9090 Transfers 112,500 112,500 112,500 1 12 ,500 Tot al Capital Outla:t a nd Transfers $ 112,500 $ 112,50 0 $ 112,500 $ 112,500 $ 0 .00 % Department Total: $ 512,632 $ 447,877 $ 353 ,957 $ 447,877 $ 0.00% * Council Adopted Budget includes annually adopted budget and carryforward e n cumbrances. Exhibi t C Page 2 of 6 52 City of Kenai Fiscal Year 2018 Fund: 006 -Personal Use Fishery Fund Department 21 -Public Safety Council• Account Expense Adopted Projected Year to Date FY2018 Availa bl e % Number Description FY2018 Budget Actual Projected Budget Ava ilable Salaries and Benefits 0100 Sa laries $ 24,100 $ 24, 100 $ 13,566 $ 19,992 $ 4 ,108 17.05% 0200 Overtime 8 ,033 8 ,033 8 ,287 8 ,287 (254 ) -3.16% 0250 Holiday Pay 0.00% 0300 Leave 0.00% 0400 Medicare 466 466 317 410 56 12.02% 0450 Social Security 1,992 1,992 1 ,355 1,753 239 12.00% 0500 PERS 0.00 % 0600 Un employment Insurance 161 161 32 129 80 .12% 0700 Workers Compensation 913 913 480 681 232 25.41 % 0800 Health & Life In surance 0.00% 0900 Supplemental Retirement 0.00% Total Sa l aries & Benefits $ 35,665 $ 35,665 $ 24,005 $ 31,155 $ 4,510 12.65% Maintenance and 01:1erations 2021 Office Suppl ies 0.00% 2022 Operating & Repair Supplies 0.00% 2024 Small Tools /M inor Equipment 2,200 (2 ,200) 0.00% 2026 Computer Software 0.00% 4531 Professional Services 8 ,700 (8,700 ) 0.00% 4532 Communications 0.00% 4533 Travel & Transportation 0.00% 4534 Advertising 0.00% 4535 Printing & Bind ing 0.00% 4536 Insurance 230 230 230 0 .00% 4537 Utilities 0.00 % 4538 Repair & Maintenance 0.00 % 4539 Rentals 0.00% 4540 Equi p. Fund Pmts. 0.00% 4541 Postage 0.00% 4666 Books 0.00% 4667 Dues & Publication s 0.00% 4999 Contingency 0.00% 5041 Miscellaneous 0 .00% 5045 Depreciation 0.00% 5047 Grants to Agencies 0.00% Total Maint. and 01:1erations $ 230 $ 230 $ -$ 11, 130 $ (10 ,9 00) -4739.13% Ca1:1ital Outlal£ & Transfers 8061 Land 0.00% 8062 Building s 0.00% 8063 Improvements 0.00 % 8064 Machinery & Equ ip ment 0.00% 9090 Transfers Out 73 ,30 0 73 ,3 00 73 ,300 73,300 0.00% Total Ca1:1ital Outlal£ and Transfers $ 73,300 $ 73 ,300 $ 73,300 $ 73,300 $ 0.00% Department Total : $ 109, 195 $ 109, 195 $ 97,305 $ 115,585 $ (6,390) -5.85 % * Council Adopted Budget includes annually adopted budget and carryforward encumbrances. Exhibit C Page 3 of 6 53 City of Kena i Fiscal Year 2018 Fund : 006 -Personal Use Fishery Fund Department 33 -Streets Council * Account Expense Adopted Proje cted Year to Date FY2018 Available "lo Numb er Description FY2018 Budget Actual Projected Budget Avai lable Salaries and Benefits 0100 Sa laries $ 10 ,263 $ 10,263 $ 7,053 $ 10,809 $ (546) -5.32% 0200 Overtime 3,783 3,783 167 167 3,616 95.59% 0250 Holiday Pay 0.00% 0300 Leave 328 328 240 88 26.83% 0400 Medicare 209 209 100 154 55 26.32% 0450 Social Security 18 18 (18) 0 .00% 0500 PERS 3 ,513 3 ,513 920 2 ,640 873 24.85% 0600 Unemployment Insurance 72 72 20 52 72.22% 0700 Workers Compensation 551 551 268 426 125 22.69% 0800 Health & Life Insurance 2 ,859 2 ,859 768 1,818 1,041 36.4 1% 0900 Supplemental Retirement 222 222 147 159 63 28.38% Total Sa l aries & Benefits $ 21 ,800 $ 21 ,800 $ 9,441 $ 16,451 $ 5,349 24.54% Maintenance and OQerations 2021 Office Supplies 0.00% 2022 Operating & Repair Supplies 5 ,000 5 ,000 245 2,145 2 ,855 57.10% 2024 Small Tools/Minor Equipment 0.00 % 2026 Computer So ftwa re 0.00 % 4531 Professional Services 0.00% 4532 Communications 0.00% 4533 Travel & Transportation 0.00% 4534 Advertising 0.00% 4535 Printing & Binding 0.00% 4536 Insurance 106 106 106 0.00% 4537 Utilities 0.00% 4538 Repair & Maintenance 0 .00% 4539 Rentals 20,700 20,700 10, 175 13,775 6,925 33.45% 4540 Equip. Fund Pmts. 0 .00% 4541 Postage 0.00% 4666 Books 0.00% 4667 Dues & Publications 0 .00% 4999 Contingency 0.00 % 5041 Miscellaneous 0.00 % 5045 Depreciation 0 .00% 5047 Grants to Agencies 0.00% Total Malnt. and Operat ions $ 25,806 $ 25,8 06 $ 10,420 $ 16,026 $ 9 ,780 37.90% CaQita l Outla~ & Transfers 8061 Land 0.00% 8062 Buildings 0.00% 8063 Improvements 0.00% 8064 Machinery & Equipment 0.00% 9090 Transfers Out 3 ,900 3 ,900 3,900 3,900 0.00% Total Ca pital Outla~ and Transfers $ 3,900 $ 3,900 $ 3,900 $ 3,900 $ 0 .00% Depa rtm ent Total : $ 51 ,506 $ 51,50 6 $ 23,761 $ 36,377 $ 15, 129 29.37% * Counci l Adopted B u dget includes annu a ll y adopted budget a nd carryforward e ncumbran ces. Exhibi t C Page 4 of 6 54 City of Kenai Fiscal Year 2018 Fund : 006 -Personal Use Fishery Fund Department 45 -Parks, Recreation & Beautification Council • Account Expense Adopted Projected Year to Date FY2018 Avail able % Number Description FY2018 Budget Actual Projected Budget Availabl e Salaries and Benefits 0100 Salaries $ 54,530 $ 54,530 $ 32,659 $ 50, 108 $ 4,422 8.11% 0200 Overtime 36,170 36, 170 24,53 9 24,539 11,631 32.16% 0250 Holiday Pay 0.00 % 0300 Leave 408 408 183 225 55.15 % 0400 Medicare 1,320 1,320 817 1,074 246 18.64% 0450 Social Security 2 ,889 2,889 2 ,839 2 ,845 44 1.52% 0500 PERS 11 ,028 11 ,028 1,605 6,421 4 ,607 41.78% 0600 Unemployment Insurance 456 456 89 367 80.48% 0700 Worke rs Compensation 2 ,646 2 ,646 1,922 2,021 625 23.62% 0800 Health & Life Insurance 12, 154 12, 154 3 ,070 9 ,297 2,857 23.51 % 0900 Supplemental Retirement 1,018 1,018 310 833 185 18.17% Total Salaries & Benefits $ 122,619 $ 122,619 $ 67,761 $ 97,410 $ 25,209 20.56% Maintenance and 012erations 2021 Office Su pplies 700 (700) 0.00% 2022 Operating & Repair Supplies 5,500 5,500 2,744 5,244 256 4.65% 2024 Small Tools/Minor Equipment 3,005 3,005 710 5,210 (2,205) -73.38% 2026 Computer Software 0.00% 4531 Professional Services 3,500 3,500 3,500 0.00% 45 32 Communications 1,600 1,600 586 586 1,014 63.38% 4533 Travel & Transportation 0 .00% 4534 Advertising 0.00 % 4535 Printing & Binding 7,670 7,670 2 ,500 5,170 67.41 % 4536 Insurance 1,487 1,487 1,487 0.00% 4537 Utilities 1,078 1,078 174 1,072 6 0.56% 4538 Repair & Maintenance 495 495 (495) 0.00% 4539 Rental s 102,025 102,025 83,748 83,748 18,277 17.91 % 4540 Equip. Fund Pmts. 0 .00% 4541 Postage 0 .00% 4666 Books 0.00% 4667 Dues & Publications 0.00% 4999 Contingency 0 .00 % 5041 Miscellaneous 4,000 4 ,000 4,020 4 ,020 (20) -0.50 % 5045 Depreciation 0.00 % 5047 Grants to Agencies 0.00 % Total Maint. and 012erations $ 129,865 $ 129,865 $ 92,477 $ 108,562 $ 21 ,303 16.40 % Ca12ital Outlal£ & Transfers 8061 Land 0.00% 8062 Buildings 0.00% 8063 Improvements 0.00% 8064 Machinery & Equipment 0.00% 9090 Transfers Out 27,100 27,100 27,100 27 ,100 0 .00% Total Ca12ital Outlal£ and Transfers $ 27,100 $ 27,100 $ 27, 100 $ 27,100 $ 0 .00% Department Total : $ 279,584 $ 279 ,584 $ 187,338 $ 233,072 $ 46 ,512 16.64% * Council Adopted Budget includes annual ly adopted budget and ca rryforward encumbrances. Exh ibit C Page 5 of 6 55 City of Kenai Fiscal Year 2018 Fund: 006 -Personal Use Fishery Fund Department 60 -Boating Facility Council • Account Expense Adopted Projected Year to Date FY2018 Available % Number Description FY2018 Budget Actual Projected Budget Available Salaries and Benefits 0100 Salaries $ 24,897 $ 24,897 $ 16, 130 $ 23,237 $ 1,660 6.67% 0200 Overtime 9 ,835 9,835 8,272 8 ,272 1,563 15.89% 0250 Holiday Pay 0.00% 0300 Leave 380 380 460 (80 ) -21.05% 0400 Medicare 508 508 349 451 57 11.22% 0450 Social Security 996 996 1,120 1 ,120 (124 ) -12.45% 0500 PERS 4 ,669 4 ,669 1,088 2 ,651 2,018 43 .22 % 0600 Unemployment Insurance 176 176 38 138 78.41 % 0700 Workers Compensation 1,482 1,482 907 1,205 277 18.69 % 0800 Health & Life Insurance 3,753 3 ,753 942 2 ,986 767 20.44% 0900 Supplemental Retirement 330 330 75 98 232 70.30 % Total Salaries & Benefits $ 47,026 $ 47,026 $ 28,883 $ 40,518 $ 6 ,508 13.84% Maintenance and 01:1erations 2021 Office Supplies 0.00% 2022 Operating & Repa ir Supplies 2,600 2 ,600 225 2,075 525 20.19% 2024 Small Tools/Minor Equipment 0.00% 2026 Computer Software 0 .00% 4531 Professional Services 0.00% 4532 Communications 0.00% 4533 Travel & Transportation 0 .00% 4534 Advertising 250 250 250 0.00% 4535 Printing & Binding 1,500 1,500 1,500 100.00% 4536 Insurance 256 256 235 21 8 .20 % 4537 Utilities 0.00% 4538 Repair & Ma intenance 0 .00% 4539 Rentals 12,515 12,5 15 8 ,245 11 ,565 950 7.59% 4540 Equip. Fund Pmts. 0.00% 4541 Postage 0 .00% 4666 Books 0.00 % 4667 Dues & Publications 0.00 % 4999 Contingency 0 .00% 5041 Miscellaneous 0 .00% 5045 Depreciation 0.00 % 5047 Grants to Agencies 0.00% Total Maint. and 01:1erations $ 17,121 $ 17, 121 $ 8,470 $ 14,125 . $ 2,996 17.50% Ca1:1ital Outlall & Transfers 8061 Land 0.00% 8062 Buildings 0.00% 8063 Impro v ements 0 .00% 8064 Machinery & Equ i pmen t 0.00% 9090 Transfers Out 8,200 8 ,200 8,200 8 ,200 0 .00% Total Ca1:1ital Outlal£ and Transfers $ 8,200 $ 8,200 $ 8,200 $ 8 ,200 $ 0 .00 % Department Total: $ 72,347 $ 72,347 $ 45,553 $ 62,843 $ 9,504 13.14% * Council Adopted Budget includes annually adopted budget and carryforward encumbrances. Ex hibit C Page 6 of 6 56 (This page was intentionally left blank) 57 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Henry Knackstedt and Tim Navarre CITY OF KENAI ORDINANCE NO. 3003-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE SECTION 17.10.010-MANDATORY CONNECTION AND ABANDONMENT OF OLD WELL, AND SECTION 17.20.010 - MANDATORY CONNECTIONS AND ABANDONMENT OF OLD ON-SITE SEWER SYSTEMS, TO CHANGE THE MANDATORY CONNECTION REQUIREMENTS, WHEREAS, Kenai Municipal Code sections 17.10.010 and 17.20.010 require property owners to connect to water and sewer mains respectively when a structure is within 200 feet of a main; and, WHEREAS, this requirement can cause unnecessary hardship to property owners when a main is not located in a right of way adjacent to the subject parcel; and, WHEREAS, it is a best construction practice to install water and sewer connections (service lines) perpendicular to the right of way, and not allow them to run parallel in the right of way; and, WHEREAS, it is in the best interest of the City to amend KMC 17.10.010 and 17.10.020 to require property owners to connect to water and sewer mains when a structure is within 200 feet of a main and the main is located in a right of way adjacent to the property; and, WHEREAS, in some cases it may be more desirable for property owners to pay a water and sewer fee and not actually connect to the available City water or sewer mains; and, WHEREAS, the City should allow as an alternative to a mandatory connection to the available water or sewer main, the requirement to pay the applicable water or sewer fee without having to actually connect as this option may be in the property owners best interest and keeps the utility and other utility users whole. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Amendment of Section 17.10.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 17.10.010- Mandatory connection and abandonment of old well, is hereby amended as follows: 17.10.010 Mandatory C [C]onnection and A[A]bandonment of O[O]ld W[W]ell. (a) Except as provided in subsection (c) below, [I]it shall be mandatory for all structures susceptible to being or currently being a source from which water is being used, to be connected to the public water system provided that any part of the structure is or is to be within two hundred feet (200′) of an existing public water main that is in a right-of-way or other applicable easement adjacent to the property line. Such distance shall be measured 58 Ordinance No. 3003-2018 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] by a straight line notwithstanding the possible impracticality of such being the necessary distance of line being required. (b) It shall be mandatory for the owner, operator, or users of a private well supplying water to a structure to arrange and to pay for connection of said structure to the available municipal water system and the abandonment of well(s) no longer being utilized. Connections to the City water distribution system and abandonment of old well(s) shall be as specified by ordinances and regulations of the City of Kenai, and applicable law and regulation of the State of Alaska relating to use of and connection to public water systems and abandonment of old wells. (c) If a property owner does not connect to a public water main in a location that otherwise requires a property owner to connect as described above, the property owner shall pay the applicable water fee based on the use of the structure as if connected. A property owner cannot maintain a water well when the location of the well interferes with the City’s ability to extend a sewer main in a right-of-way or easement. If a well is located in a location that would interfere with the City’s ability to extend a sewer main, the property owner must connect to the City water main and appropriately abandon the well at the property owners cost. Section 1. Amendment of Section 17.20.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 17.20.010- Mandatory connections and abandonment of old on-site sewer systems, is hereby amended as follows: 17.20.010 Mandatory C[C]onnections and A[A]bandonment of O[O]ld O[O]n-S[S]ite S[S]ewer S[S]ystems. (a) Except as provided in subsection (c) below, [I]it shall be mandatory for all structures susceptible to being or currently being a source from which sewage may or is being generated, to be connected to the public sewage system provided that any part of the structure is or is to be within two hundred feet (200′) of an existing public sewer main. Such distance shall be measured by a straight line notwithstanding the possible impracticality of such being the necessary distance of line being required. (b) It shall be mandatory for the owner, operator, or users of a private sewer system to a structure to arrange and to pay for connection of said structure to the available municipal sewer system and the abandonment of the on-site sewer system no longer being utilized. Connections and extensions to the City sewer system and abandonment of the old on-site sewer system shall be as specified by ordinances and regulations of the City of Kenai, and applicable law and regulation of the State of Alaska relating to use of and connection to public sewer systems and abandonment of old on-site sewer systems. (c) If a property owner does not connect to a public sewer main in a location that otherwise requires a property owner to connect as described above, the property owner shall pay the applicable water fee based on the use of the structure as if connected. ([C]d) If a sewer service customer has the reasonable possibility they will produce grease or oil-laden wastes, the customer’s facility shall be provided with interceptors as required in the plumbing code. This includes any establishment that uses a deep fat fryer or cooking grease or oil. Grease, oil, and sand interceptors shall be provided when, in the opinion of City, they are necessary for the proper handling of wastewater containing grease and oil, or sand. All interception units shall be of type and capacity approved by the Building Official 59 Ordinance No. 3003-2018 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] and shall be so located to be easily accessible for cleaning and inspection. Such interceptors shall he inspected, cleaned, and repaired regularly, as needed, by the user at the customer’s expense. The sewer service customer is required to keep an interceptor inspection, cleaning, and repair log which contains information as to the date, time, what is removed, quantity removed, who removed the material and how, when, and where the material from the interceptor is disposed of. Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of February, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: January 17, 2018 Enacted: February 7, 2018 Effective: March 9, 2018 60 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Vice Mayor Navarre and Council Member Knacksted DATE: January 11, 2018 SUBJECT: Mandatory Connections and Abandonment of Old Wells and On-site Sewers/Ordinance No. 3003-2018 Ordinance No. 3003-2018 is intended to relieve property owners in the City of certain hardships related mandatory connections to city water and sewer mains. Kenai Muncipal Code 17.10.010 and 17.20.010 respectviely require property owners to connect to City water and sewer mains anytime the main is located within 200 feet of a structure on the subject property. In some cases this standard requires proeprty owners to connect to a main when the main is not in a right of way adjacent to the property. This can result in unreasonable expenses to a property owner, even requiring an individual property owner to pay for a main extension. Amending the standard to require a connection when a main is within 200 feet of a structure and is in a right-of-way adjacent to the property will eliminate hardships related to mandatory connections in many cases. Ordinance No. 3003-2018 additionally provides that property owners who would otherwise be required to connect to a water or sewer main, must pay the applicable fee for use of the water or sewer if they do not connect. Essentially, the City would not force people to connect, but require them to pay as if connected. This may be a more desirable option for certain property owners given variances in existing utilities or other circumstances and is consistent with recent past practice of the City. However, because of required separation distances between a water well and sewer system, if the City were to extend a sewer main, but was unable to comply with the required separation distance due to an existing well, the Ordinance in Section 1. (17.10.010(c)) requires the property owner to abandon the well and connect to the City’s water at the property owner’s expense. Your consideration is appreciated. 61 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Council Member Navarre CITY OF KENAI ORDINANCE NO. 3004-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE SECTION 1.15.050-ORDER OF BUSINESS, TO AMEND THE USE OF THE PENDING LEGISLATION AGENDA ITEM AND MAKE OTHER HOUSEKEEPING CHANGES. WHEREAS, Kenai Municipal Code Section 1.15.050 sets forth requirements for conducting the order of business for regular meetings of the City Council; and, WHEREAS, included in the order of business is an item entitled, “Pending Legislation,” which was added in 2010 for the purposes of providing further guidance to advise the City Clerk regarding how long postponed items should be maintained; and, WHEREAS, the City of Kenai follows Robert’s Rules of Order Newly Revised, 11th Edition; and, WHEREAS, all motions properly made under Robert’s Rules of Order provide the City Clerk enough information for maintaining postponed or referred legislation and the, “Pending Legislation,” is more appropriately used as information to the public, administration, and Council. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Amendment of Section 1.15.050 of the Kenai Municipal Code: That Kenai Municipal Code, Section 1.15.050, Order of business, is hereby amended as follows: (a) The order of business for every regular meeting of the City Council shall be outlined on an agenda. (b) The following shall be the order of business at the regular meetings of the City Council: (1) Call to Order: pledge of allegiance, roll call, and agenda and consent agenda approval (public comment shall be permitted on items included on the consent agenda); (2) Scheduled Public Comment; (3) Unscheduled Public Comment; (4) Public Hearings; (5) Minutes of Previous Meetings; (6) Unfinished Business; (7) New Business; (8) Commission and Committee Reports; (9) Report of the Mayor; 62 Ordinance No. 3004-2018 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] (10) Reports from Administration; (11) Additional Public Comment: citizen comments and Council Member comments; (12) Executive Session (when applicable); (13) Pending Legislation; And (14) Adjournment. (c) Those items on the agenda that are considered routine by the City Manager and the City Clerk shall be identified by an asterisk (or similar notation) next to the item as listed on the agenda and thereby included under that portion of the agenda entitled “Consent Agenda.” Unless a Council Member requests that an item on the consent agenda be considered under the regular meeting agenda, and thus removed from the consent agenda, items listed as part of the consent agenda shall be considered, introduced, adopted, accepted, etc., as appropriate for the item listed on the agenda, by motion of the Council and roll call vote under “Call to Order, consent agenda approval.” Those items approved under the consent agenda shall appear in the Council minutes as if acted upon individually. The Council shall consider an item removed from the consent agenda in its proper numerical order as indicated on the regular agenda. (d) If the Council desires to transact business out of its regular order, it may do so upon approval of a motion to suspend the rules, which motion must be approved by a two-thirds vote of the Council members in attendance. In the alternative, as each agenda item comes up, a majority of the Council can at once lay it on the table and thus reach any question which it desires to dispose of first. (e) The City Clerk shall maintain a list of [TABLED AND] pending items. This list shall [BE STRICKEN AT THE END OF THE MEETING AT WHICH THE CERTIFICATION OF A REGULAR ELECTION OF ANY COUNCIL MEMBER TAKES PLACE] include information beneficial to the public, administration, and Council in determining the status of the item. (f) The administration may develop policies and procedures to implement this section, subject to review and approval of Council. (g) Failure to comply with the above policies and procedures or with any administrative policies will not invalidate any ordinance or Council action as long as there was a good faith effort at compliance by the City Clerk. Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of February, 2018. 63 Ordinance No. 3004-2018 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: January 17, 2018 Enacted: February 7, 2018 Effective: March 9, 2018 64 'lltf tar «1/t/t, a Pa~~ Ct~ «1/t/t, a Fatfl.l"e JI 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Gabriel and Council Members Glendening, Pettey, Knackstedt, Boyle, Molloy, and Student Representative Gilman Vice Mayor Navarre ~ January 10, 2018 Ordinance No. 3004-2018-Amending Kenai Municipal Code to Amend the Use of the Pending Legislation Agenda Item. In 2010, an ordinance was passed to add the "Pending Legislation" item to the City's agenda . At the time, it was identified that the purpose was to provide guidance to advise the City Clerk on how long postponed items should be maintained. However, all motions properly made under Robert 's Rules of Order, provide the City Clerk enough information regarding the postponed or referred legislation. The practice of striking pending items at the end of the meeting where certification of a regular election takes place, refers to Mason's Manual of Legislative Procedure, which provides for legislative sessions, which can be a year or longer. The Kenai Peninsula Borough utilizes Mason 's Manual of Legislative Procedure which is why they strike pending items after an election . It is recognized , however, that it is beneficial for the public, administration, and Council members, for pending items that have been postponed beyond the next meeting, or have been referred to a Commission , to be placed under the "Pending Legislation" agenda item , with a brief explanation noting the status of the legislation. Amendments contained in this ordinance will provide for the "Pending Legislation " agenda item to be utilized in a way that is beneficial to the public, administration , and Council , without requiring the items being stricken pursuant to a procedure that the City of Kenai has not chosen to govern itself with . Your consideration is appreciated . 65 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Council Member Boyle CITY OF KENAI ORDINANCE NO. 3005-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE CHAPTER 7.10-SALES TAX, TO EXEMPT PUBLIC WATER AND SEWER UTILITY SERVICES TO RESIDENTIAL HOUSING FROM THE CITY’S LEVY OF SALES TAX. WHEREAS, the City of Kenai levies a 3% sales tax on all retail sales, rents and services made or rendered within the City; and, WHEREAS, the City has incorporated the Kenai Peninsula Borough’s sales tax code by reference with the exception of the Borough’s sales tax exemption on non-prepared foods; and, WHEREAS, the City’s Home Rule Charter provides that the City has all the powers of taxation which home rule Cities may have under the State Constitution and law; and, WHEREAS, the City has the authority to exempt certain sales, rents and services from City sales tax; and, WHEREAS, the provision of water and sewer services is a basic service that all residents need and should be able to afford; and, WHEREAS, eliminating the sales tax on water and sewer services provided by public utilities to residences will decrease the financial burden on households for such services and make living in Kenai more affordable. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Amendment of Section 7.10.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 7.10.010 – Levy of Tax, is hereby amended as follows: 7.10.010 Levy of Tax Except as otherwise provided in this Chapter, [T] there is hereby levied a consumers’ sales tax of three percent (3%) on all retail sales, rents, and services made or rendered within the City limits measured by the gross sales price of the seller. Section 2. Amendment of Section 7.10.015 of the Kenai Municipal Code: That Kenai Municipal Code, Section 7.10.050 – Borough Sales Tax Adopted by Reference, is hereby amended as follows: 66 Ordinance No. 3005-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 7.10.050 Borough Sales Tax Adopted by Reference and Exemptions (a) Except as provided [IN (B)] below, incorporated by reference in this Code as though each code provision was set forth verbatim herein are statutes, consisting of ordinances and/or code provisions of the Kenai Peninsula Borough or such portions thereof, which provide for the sales taxes, including but not limited to their levy, collection, and administration. (b) There shall be no sales tax exemption on non-prepared food. The above sentence does not affect the sales tax exemption granted under AS 29.45.700(d) exempting food purchased under the Food Stamp Act or Special Supplemental Food Program for Women, Infants and Children. (c) Public water and sewer services provided to residential dwellings are exempt from the levy of City of Kenai sales tax. This exemption applies to single and multifamily dwellings but not to hotels, motels, bed and breakfasts, lodges or other similar businesses offering transient rooms for fewer than 30 consecutive days. Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect July 1, 2018 after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7 day of February, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: January 17, 2018 Enacted: February 7, 2018 Effective: July 1, 2018 67 _____________________________________________________________________________________ Sponsored by: City Clerk CITY OF KENAI RESOLUTION NO. 2018-04 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE CITY OF KENAI PUBLIC RECORDS MANAGEMENT AND RECORD RETENTION POLICY ADOPTED ON MAY 17, 2017 BY RESOLUTION NO. 2017-22 BY AMENDING RETENTION LENGTHS ON MEETING PACKETS AND PROVIDING FOR RETENTION FOR BUSINESS LICENSE RECORDS AND MAKING OTHER HOUSEKEEPING CHANGES. WHEREAS, as directed in KMC 10.30.040(e), the Clerk shall submit proposed reduction in retention periods and record series additions to Council for adoption; and, WHEREAS, it is not the recommendation of the City Clerk to maintain meeting packets permanently, due to duplication, physical space constraints, and the expense of future maintenance and data migration; and, WHEREAS, it was discovered that the retention for business license records had been inadvertently omitted in the May 2017 update; and, WHEREAS, the City Attorney has reviewed the amendments to the Public Records Management Schedule and Record Retention Policy. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Clerk section of the City of Kenai Public Records Management and Record Retention Policy is amended as attached. Section 2. That this resolution takes effect immediately upon adoption. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of February, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 68 Attachment “A” New Text Bolded; Deleted text struck through CLERK RECORD SERIES SUBJECTS DESCRIPTION DATA OWNER RETENTION CITATION COMMENTS/NOTES CLK1000 Councils, Boards, or Commissions – Appointments to Boards and Commissions Including, but not limited to: • Appointments, and • Resignations City Clerk Act + 6 years LGM #300.1 2.6 Master list of appointments is kept permanently, see CLK1100 CLK1100 Councils, Boards, or Commissions – Adopted Agendas, Minutes, Ordinances and Resolutions; Master List of Board, Commission, Commission, and Committee Members; Oaths of Office Including, but not limited to: • Adopted agendas, Minutes, ordinances, and resolutions, • Charter, code supplements, ordinance and resolution indexes, • Master list of names, terms, and dates of service, • Meeting information / Packets, • Oaths of office, • Proclamations, and • Public notices, and • Any other records that constitute official accounts of the proceedings and actions of the body. City Clerk Permanent LGM #300.1 2.4, 2.5, 2.6 CLK1200 Councils, Boards, or Commissions – Supporting Documentation Including, but not limited to: • Audio/Visual Recordings, • Vacancies, and • Correspondence, • Meeting information / packets, and • Public Notices. City Clerk Act + 6 years C + 10 years LGM #300.1 2.1.2 C = Until minutes have been approved. *Paper versions and recordings are destroyed after C + 10 years, electronic files are maintained for the life of the electronic file. CLK2000 Elections - Permanent Including, but not limited to: • Canvass board reports, • Council certificate of election, • Preclearance records. City Clerk Permanent KMC 6.05.280 LGM #300.1 8.3, 8.6 CLK2100 Elections – General Including, but not limited to: • Candidate lists, • Financial Disclosure Statements, • Correspondence, • Election officials’ records, • Initiative, referendum, and recall records filed by private citizens or groups requesting governing body action, • Materials for absentee, early, questioned voter, or special needs voting, and, • Posting notices/materials. City Clerk Act + 6 years AS 15.15.470 AS 29.26 AS 15.25.230 KMC 6.05.280 LGM #300.1 2.3, 8.4, 8.7, 8.11, 8.13 CLK2200 Elections – Registers & Tally Books Includes: • Precinct, final voting, questioned voter, special needs voting, and absentee voter. City Clerk C + 4 years KMC 6.05.280 C = Until election is certified Retain longer if election is contested per AS 15.15.470 69 Attachment “A” New Text Bolded; Deleted text struck through CLERK RECORD SERIES SUBJECTS DESCRIPTION DATA OWNER RETENTION CITATION COMMENTS/NOTES CLK2300 Elections – Declarations of Candidacy/Nomination Petitions Declarations of Candidacy and Nomination petitions City Clerk C + 3 years KMC 6.05.280 KMC 6.10.040 C = Until term expires CLK2400 Elections – Recount Petitions & Election Contests Includes: • Candidate requests for recount of individual machine or paper ballot tallies; includes candidates’ reason for request • Contested election and runoff data City Clerk C + 1 year KMC 6.05.280 LGM #300.1 8.5 C = Until election is certified. CLK2500 Elections – Ballots Including, but not limited to: • Ballot stubs, • Ballot transport envelopes, • Counted questioned, early, and absentee by mail ballots, • Destroyed and unused ballots and • Official election ballots. City Clerk 30 days after election is certified LGM #300.1 8.1 CLK2600 Elections – Rejected Ballots Includes ballots rejected for counting by the canvass board. City Clerk C + 1 year KMC 6.05.280 C = Until election is certified. CLK3000 Annexation/Consolidation Petition and supporting files City Clerk Permanent LGM #300.1 2.9 5 year retention if fail; permanent if passed CLK4000 Records Management – Permanent Adopted retention schedules and destruction documentation City Clerk Permanent LGM #300.1 1.1, 1.16 CLK4100 Records Management – General Completed inventories, record storage forms, and training materials City Clerk Act + 6 years LGM #300.1 1.32 CLK4200 Public Records Requests Public records request forms and related material produced with response City Clerk 1 year LGM #300.1 1.14 CLK5000 Cemetery/Memorial Park Records Includes: • Diagrams, • Maps and indices of burial plots, • Record of plot sales, and • Burial permits. City Clerk Permanent LGM #300.1 2.12 CLK6000 Licenses and Permits - Business License Including but not limited to: • Applications, • Correspondence, • Supporting documentation, • Alcohol Beverage Control Board Applications, and • Marijuana Control Board Applications. City Clerk C + 3 years LGM #300.1 14.1 C = Until license or permit expires. 70 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Jamie Heinz, City Clerk DATE: January 22, 2018 SUBJECT: Resolution No. 2018-04 – Amending the Record Retention Policy ____________________________________________________________________________ The City of Kenai Public Records Management and Record Retention Policy adopted in May indicated that meeting packets were to be kept permanently. I am recommending changing the retention on paper versions of meeting packets to ten years. As for the electronic versions, I’m recommending they be kept for the life of the electronic file. This provides that staff won’t actively delete electronic packets stored in Laserfiche, but if a file becomes corrupt or illegible after the ten year retention, the electronic file won’t be recreated. The reasons behind my recommendation are as follows: • Duplication; all packet items have their own retention elsewhere in the Policy and most items are retained permanently (ordinances, resolutions, and minutes). Additionally, since ordinances are included in two or more packets, permanent packet retention makes it possible for them to be kept in three places. • Space; there is limited space in the record room for boxes of paper records and meeting packets will quickly dominate the space we have and we will have to look for space, which may come at a cost, elsewhere. • Cost; a permanent retention designation requires the retention of the paper records, the records be converted to microfiche or Laserfiche so when paper degrades, the records can be recreated and still be accessed and, if kept electronically, the electronic files need to be migrated as technology changes. When reviewing the Local Government Model Record Retention Policy, the recommendation is to keep packets until the minutes have been approved, and to keep public hearing files for ten years. I also reviewed other communities’ policies and found packet retention anywhere from three to ten years. In addition to amending the retention on packets, I’ve included retention for business license records which was inadvertently omitted in May, and made other housekeeping changes. Your consideration is appreciated. 71 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-05 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADOPTING A POLICY TO PROVIDE PROCEDURES FOR INCLUDING CONTINGENCY FUNDING IN CONTRACTS . WHEREAS, inclusion of an appropriate and Council approved contingency amount in contracts will provide for efficient management while maintaining proper controls over City contracts; and , WHEREAS , it is appropriate to include a Council approved contingency in contracts where identified uncertainties justify the inclusion . NOW , THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That Council Policy No . 2018-02: Procedu res for Including Contingency Funding in Contracts, attached , is approved. Section 2 . That this resolution takes effect immediately upon passage . PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7th day of February , 2018 . BRIAN GABRIEL SR., MAYOR ATTEST : Jamie Heinz, City Clerk 72 POLICY NO. 2018-02: Procedures for Including Contingency Funding in Contracts. Purpose Inclusion of an appropriate Council approved contingency amount in contracts will provide for efficient management while maintaining proper controls over City contracts . Scope Contracts where identified uncertainties justify the inclusion of an appropriate and council approved contingency amount. Policy 1. Including Contingency in Bids : a. Ttie administration will identify uncertainties in projects and include a bid item to cover potential contingencies needed to complete the project. b . This is a contingent sum in the bid schedule that if changed will not affect the order of bidders from low to high. 2. Council Award of Contracts: a. The administration will identify possible uncertainties and the amount of recommended contingency in the memo accompanying the Council action . b. The Council may approve or change the amount of recommended contingency prior to approving the award of a contract. 3. Administration's Management of Awa rded Contracts: a. The administration will issue a Purchase Order and execute a contract for the amount awarded by Council. b. The administration may not authorize expenditures in excess of the contract amount without additional approval from the Council. c . If the administration seeks add itional funding to complete the project, a report of how the original contingency was expended will be provided, and justification for the additional funding requested . d. At the end of the project the administration will pro vide a report of the amount of and how contingency funds were e xpended. Effective Date: __________ _ Approved by Resolution 2018-05 BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, City Clerk 73 'Vtfl~ a1/th a Pa.ft, tt'tj a1/th a Fu.t~ " 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai. city MEMORANDUM TO : THROUGH: FROM : DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager V·c...?. Sean Wedemeyer, Public Works Director/Capital Projects Manager S)Af,,/ January 26, 2018 Resolution 2018-05 -Adopting a Policy to Provide for Including Contingency in Contracts The purpose of this memo is to recommend adopting the resolution approving the policy for including contingency in contracts. Currently, prior to the issuance of purchase orders for the contract amount of goods or services to be purchased in excess of $15 ,000, Administration includes the requested purchase orders on a list to be authorized by City Council. In the case of large purchases or purchases resulting from a request for proposal , a resolution is prepared for adoption. For purchase orders related to change orders, the procedure creates difficulties in the management of contracts . Any monetary changes to a contract require a change order, which must be approved by Council. In most cases , the City Manager has already authorized the change order, and the work has either been completed or is in the process by the time the Council considers the change order for approval. This process puts the Council in a position of approving a purchase order increase after-the-fact and effectively circumvents the intent of this internal control. Inclusion of an appropriate contingency amount in contracts will provide for efficient management while maintaining proper controls over City contracts. This policy will allow for the Council to approve or change the amount of recommended contingency prior to approval of the contract award . Thank you for your consideration. • 74 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-06 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE CITY OF KENAI MAYOR TO SIGN KENAI PENINSULA BOROUGH JOINT RESOLUTION NO . 2018-001 REQUESTING THE ALASKA BOARD OF FISHERIES ADOPT A POLICY TO ROTATE THE UPPER COOK INLET FINIFISH MEETING BETWEEN THE THREE PRINCIPLE COMMUNITIES OF KENAI /SOLDOTNA, PALMER/WASILLA, AND ANCHORAGE. WHEREAS , on January 31 , 2018, the Kenai City Manager forwarded Joint Resolut ion No. 2018- 001 to be considered by the Councils of the Cities of Kena i and Soldotna and the Assembly of the Kenai Peninsula Borough; and, WHEREAS , it is in the best interests of the Kenai Peninsula that the Board of Fisheries hold Upper Cook Inlet Finfish meetings on the Kenai Peninsula . NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That Kenai Mayor Brian Gabriel is authorized to sign Kenai Peninsula Borough Joint Resolution No. 2018-001 requesting the Alaska Board of Fisheries adopt a policy to rotate the Upper Cook Inlet Finifish meeting between the three principle communities of Kenai/Soldotna, Palmer/Wasilla , and Anchorage. Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of February, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, City Clerk 75 "tftfl~ «1/th a Pa~~ Ot'tf «1/th a f"u.tt.<H 11 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone : (907) 283-75351 Fax : (907) 283-3014 www. kenai .city MEMORANDUM TO : FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Managef'? .. D - January 31, 2018 Resolution No. 2018-06 Authorizing the Mayor to Sign Historically the Alaska Board of Fisheries has held its meeting in various locations throughout the districts in which fishery issues are being considered . The last occasion in which the Alaska Board of Fisheries held its meeting to consider Cook Inlet finfish issues in the Kenai-Soldotna area was in 1999, or 19 years ago. The issues which will be considered affecting the Kenai River and Upper Cook Inlet are of in t erest and directly affect many of the residents of the Central Kenai Peninsula . Holding the meeting in the Kenai-Soldotna area on a rotating basis will afford Kenai residents a regular opportunity to testify before the Board of Fisheries without the burden and expense of travelling to Anchorage and having stay over several days. Thank you for your consideration in this matter. If you have any questions, please co nta ct me at your convenience. 76 KENAI PENINSULA BOROUGH CITY OF KENAI CITY OF SOLDOTNA JOINT RESOLUTION N0.2018-001 A JOINT RESOLUTION OF THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH AND COUNCILS OF THE CITY OF KENAI AND THE CITY OF SOLDOTNA, REQUESTING THE ALASKA BOARD OF FISHERIES ADOPT A POLICY TO ROTATE THE UPPER COOK INLET FINFISH MEETING BETWEEN THE THREE PRINCIPLE COMMUNITIES OF KENAI/SOLDOTNA, PALMER/WASILLA, AND ANCHORAGE WHEREAS, Upper Cook Inlet Finfish issues are vitally important to, and directly impact residents, municipal governments and communities on the Kenai Peninsula; and WHEREAS, many local residents and businesses of the Kenai Peninsula depend on, participate in, and are otherwise affected by decisions made by the Board of Fisheries with regard to subsistence fisheries, sport fisheries, commercial fisheries, personal use fisheries and conservation measures in Upper Cook Inlet; and WHEREAS, when making informed decisions regardi ng finfish issues in Upper Cook Inlet, the Board of Fisheries should consider the comments and interests from residents of the Kenai Peninsula; and WHEREAS, the costs and travel time to attend meetings outside the Kenai Peninsula pose a significant burden to local residents, limiting participation and the Board of Fisheries' abi lity to benefit from local know ledge; and WHEREAS, the Alaska Board of Fisheries has not held its Upper Cook Inlet Finfish meeting on the Peninsula since 1999 despite numerous requests that it do so; and WHEREAS, holding the meeting on the Kenai Peninsula would show local residents , businesses and communities that the Board of Fisheries listens, cares about, and understands the local impacts of its decisions; and WHEREAS, there are local quality venues of sufficient size with advanced technologic capabilities to host public meetings, as well as exceptional lodging and dining opportunities on the Kenai Peninsula. NOW, THEREFORE, BE IT RESOl. VED BY THE KENAI PENINSULA BOROUGH ASSEMBLY AND THE COUNCILS ~'OR THE CITY OF KENAI AND CITY O F SOLDOTNA: SECTION 1. That the Alaska Board of Fisheries is respectfully and strongly urged by the Kenai Peninsula municipal governments representing their constituents to adopt a policy to rotate the Upper Cook Inlet Finfish Meeting between the three principle communities of Kenai/Soldotna , Palmer/Wasilla, and Anchorage. SECTION 2. That this Joint Resolution be forwarded to Governor Bill Walker, Senator Peter Micciche, Representative Gary Knopp, Governor's Chief of Staff Scott Kendall, Alaska Department of Fish and Game Commissioner Sam Cotton, Alaska Board of Fisheries Members John Jensen, Reed Morisky, Orville Huntington, Alan Cain, Israel Payton, Robert Ruffner, F1itz Johnson, Alaska Board of Fisheries Executive Director Glenn Haight. 77 SECTION 3. That this resolution takes effect immediately upon approval by the Kenai Peninsula Borough A s sembly and the participating city councils. APPROVED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS 20TH DAY OF JANUARY, 2018. Wayne H. Ogle, Assembly President ATTEST: Johni Blankenship, MMC, Borough Clerk APPROVED BY THE COUNCIL OF THE CITY OF KENAI THIS 7TH DAY OF FEBRUARY, 2018. Brian Gabriel, Kenai Mayor ATTEST: Jamie Heinz, CMC , City Clerk APPROVED BY THE COUNCIL OF THE CITY OF SOLDOTNA THIS 14TH D AY OF FEBRUARY, 2018. Nels Anderson , Soldotna Mayor ATTEST: Michelle M. Saner, MMC, C ity Clerk 78 RC 420 Alaska Department of Fish and Game Board of Fisheries PO Box 115526 Juneau, AK 99811 -5526 (907) 465-4110 www.adfg.alaska.gov ALASKA BOARD OF FISHERIES Southeast and Yakutat Finfish and Shellfish Meeting Harrington Centennial Hall , Sitka Janumy 11-23, 2018 TENTATIVE MISCELLANEOUS BUSINESS AGENDA l. Action Plan -McDonald Lake Sockeye Stocks of Concern, RC6 2. Emergency Petitions Board Board a. Nancy Hillstrand, Straying PWS Pink Salmon to Lower Cook Inlet RC27, RC 70, RC 235 , RC 237, RC 325 3. Revised call -Bering Sea Area 0 4 . Finding on Onboard Observer Requireme nt in Southeast Crab fi s hery, R C 210 5. Letter regarding Sea Otter Predation Hai ght Board Board 6. Letter in Suppo1t o fUSF&W Office of Subsistence Management Directin g Adequate Funds to Regulatory Coordination, RC 411 7. 2020 U pper Cook Inlet Finfis h Meeting Location , RC 409 Board Board 8. No1th Pac ifi c Fishery Management Council Gulf of Alaska King Salmon Prohibited Species Catch Setting, RC 413 Board 9 . R equ est for Boa rd of Fisheries suppo1t in non-regulatory proposal EF-F 17-067 , PC 140, RC 388 10 . Joint Board Committee Decem ber 21 , 2017 meeting report, RC 419 Board Ruffner 11 . Relationship between th e Board of Fi sheries and Pacific Salmon Commission, RC 416 Board 79 Draft policy s ubmitted by Board Member Cain ALASKA BOARD OF FISHERIES RC409 Alaska Department of Fish and Game Board of Fisheries PO Box 115526 Juneau, AK 99811-5526 (907) 465-4110 www.adfg.ala ska . ov Policy Regarding the Location of the Upper Cook Inlet Finfish Meeting 2018-###-FB Month Day, Year The Alaska Board of Fisheries (board) notes one of the most divisive issues it faces almost every year is not a regulatory subject, but rather where to hold the Upper Cook Inlet Finfish meeting. Boards since 1999 have chosen to hold this two-week long meeting in Anchorage. Other communities, p r incipally Kenai/So ldotna , wou ld like to host the meeting. While the board recogni zes it cannot obligate future board s by its current decisions, it offers the following meeting schedu le as a way to manage this ongoing iss ue. The board recommends future boards rotate the Upper Cook Inlet Finfish meeting between the three principle communities of Kenai/Soldotna, Palmer/Wasilla, and Anchorage . This policy contemplates the meeting wi ll rotate between these three communities throughout its 3-year meeting cycle. The board recommends holding the 2020 meeting in Kenai/Soldotna , the 2023 meeting in Wasilla/Palmer, and the 2026 meeting in Anchorage . Adopted this## day of Month 2018. John E. Jensen Chair, Alaska Board of Fisheries Vote:#-# 80 Sponsored by: C ity Manager CITY OF KENAI RESOLUTION NO. 2018-07 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, CONSENTING TO VACATION OF CERTAIN RIGHTS-OF-WAY AND UTILITY EASEMENTS WITHIN THE PROPOSED BUXTON SUBDIVISION, EAGLE ROCK ADDITION , WHICH IS ATTACHED HERETO AS EXHIBIT "A ". WHEREAS, on October 25, 2017, by Resolution No. PZ2017-34, the Planning and Zoning Commission of the City of Kenai recommended that the Kenai Peninsula Borough Planning Commission approve BUXTON SUBDIVISION, EAGLE ROCK ADDITION with vacation of certain Rights-of-Way and Utility Easements; and, WHEREAS, on January 8 , 2018 , the Kenai Peninsula Borough Planning Commission met and approved the Preliminary Plat and Rights-of-Way Vacation consistent with the recommendation of the Planning and Zoning Commission for the City of Kenai; and, WHEREAS, on January 16, 2018, the City received notice from the Kenai Peninsula Borough that consistent with State Statue and Borough Code, the City has 30-days from January 8 , 2018 to consent to or veto the vacation of these Rights-of-Way and Utility Easements; and, WHEREAS, pursuant to Kenai Municipal Code Section 22.05.11 O(b) -Determination as to Need for Public Use states , "Whether land previously dedicated to a public use should be ded icated to a different public use or should no longer be needed for public use shall be determined by the City Council by ordinance, except in cases of vacation of rights-of-way or easements which may be determined by resolution , either of which shall contain the new public use for which the property is to be dedicated or the reason the land is no longer needed for public use, the legal description of the property, and the address or a general description of the property sufficient to provide the public with notice of its location ; and , WHEREAS , ENSTAR Natural Gas and Homer Electric Company has submitted statements to the Kenai Peninsula Borough which offer no objection to the removal of these Rights-of-Way and Utility Easements; and, WHEREAS , the Rights-of-Way and Utility Easements listed below are no longer needed for a public use as alternative Rights-of-Way are provided for and are consistent with the development of BUXTON SUBDIVISION , EAGLE ROCK ADDITION. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA: Section 1. That following Rights-of-Way and Utility Easements , with in the BUXTON SUBDIVISION , EAGLE ROCK ADDITION, within the City of Kenai are no longer needed for a public use and that the Council of the City of Kenai consents to these vacations: 81 Resoluti on No . 20 18 -07 Page 2 of 2 a ) Vacation of the Coolidge Lane Rights-of-Wa y and ded icated on Buxton Subdivision , Plat KN 1624, and Eagle Rock Enterprises Subd ivi sion No . 1, Plat KN 83-28 1. b) Vacate a 5-foot wide Utility Easement adjoin Coolidge Lane on Lot s 1, 2 , and 3 Eagle Rock Enterprises Subdivision No. 1, Plat KN 83-281 , as grant ed on Eag le Rock Enterprises Subdivision No. 1 , Plat KN 83-281 Section 2 . That this resolution takes effect immediately upon passage . PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7th day of Februa ry , 201 8. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, City Clerk 82 ""-- m >< :I: -~ -t ~ ~ i ULL_-~ 1''_9J-96-::_ert ~ S89"59'16"E 660.38' C<l KN 1414 _, l _J C ERTIFICATE OF ACCEPTANCE THE UNDERSIGNED OFFICIAL IDENTIFIED B Y NAM AND TITLE IS AUTHORIZED TO ACCEPT AND HEREBY ACCEPTS ON BEHALF OF T HE CfTY OF KENAI FOR PUBUC PURPOSES THE REAL PROPERTY TO BE DEDICATED BY THIS PLAT INCLUDING EASEMENTS, RIGHTS-OF-WAY, ALLEYS, AND OTHER PUBLIC AREAS SHOWN ON THIS PLAT. me ACCEPTANCE OF LAN DS FOR PUBLIC USE OR PUBLIC PURPOSE DOE S NOT OBLIGATE THE PUBLIC OR ANY GOVERNING BOO' TO CONSTRUCT, OPERATE, OR MAINTAIN JO J ; _ _l(~~-2'!Y~ll"-TJ _J29 26 27 l.OT 1 l.Ot Z -----no;g. -THIRD AVENUE ::: ~ R/w ___ 33Q.i 9··---...,-1 161 .24' {c) (R) .., I 1-.':-:.f::. ;;~1.v,~:=,:-"' ~ -----, ~1 I LOT J I ~ I \::!!) J iJ I I ~ : ~ c ..':''.f-,:-::H "' I I -_... 1rORl.!ERLO!•A --~ ~ I ~ 9 LOCX 1 I ~ I I I"' fo_ .,nn-" I " 2 '=li ~ IMPROVEMENTS. BY: ____________ _ DATE CITY OF KENAI NOTARYSACKNOWl.EDGEMENT FOR: Acknowledged before me this LEru!D. VICINITY MA P Scale 1° • 1 Mle T6N TSN <;:) LOT 2 ;.... ~:If 1)W1lerwppl'f'.andsewagedi$PG$fls~lemsshellbe I l I ~ ~ I 1sMcnanc11aMc&0. I .., "'!:'-........ ..., .. --·~-................ ~,bof I __ dayof _.2017 + ~ EB Record SLM monumen t ottoched to reguloti011 post not rc covtred. Lu_ ---..,. ~)Nope~strudufe 1hd~coNl'UCtedOf'p&K&Cf I I <;:) &'¢ '#tttllti4lt10H~wt.ich'lo'!Xlldlnlefi''"t'~ll'le •blityof1 I " !'"' ut11tytous.elheeaninet1t. NotaryPubfic forthe ,... Q) ~ 3)TNl<et1a1PenlnwLaBorougl'IP1.at1ningConWT!luion I ~ S tale o f Alaska I I.;, I LOT I g _ ... _"'""COOLIOGE U.<E 2SAAY... ii; a: I CERTIFICATE OF OWNERSHIP ANO -~ ~ vi usoet..ttdlJllHyE1sen"l9f'lts 111hemttf.ngohn.2011. J,b DED ICATI ON -j ~1g f-;~114=:::,,:lheOtyofK,neiCl'l*P!Cf H 1 2~~1 We l\eretiycentfylh11t-lheO\IOTl•rsofltiere .. pmperty 0:: "' ----------------z Cl ~1rod describedMreonMtdon,....~tetiy&doptthls t:; f.o ~ u lg ,o i in M N101 9·J9.96--49,IU·281 ann 1~•1tr.:ino ~~ld ~~ ~-Wityanclpublk::areascopublcuseandgrant•I My commission ellpires : __ _ Record primar y monume.t1l of record not recovered. Primory monument 0$ describ ed. () r rebor of r ecord not recowred. 0 R/W Vocoled this p lot. Record doto from plots IC N96-49 & KN83-281 ...,.ere r otated t o o common Bo :11is o f Bit0rin9 os sho...,.n. (R) Record ond found doto ogree unleu stl own olherwi:11e. ;I: GJ .... S) This plat was Pf'e9at«I from record Sl'J\oey ~tll '* pl..... I x ci plf.n of WbdMslon •rd by our he eonsenl ~te .. .I, I <O ~ I + 1-,.~M ta LOT 1 ~a N .... ,., perlooned a$ of Ith dale. ~ -~ HSemonts to the use $hewn. Q;) ._ Ir LOT 7 •»H I :.-.~ t£J I IX ~~gl (c) Computed do lo from ICN8J-2B1 ond ICNg6-'49. ~ W g ''~~:.. i R Z ~ • . . . Witness Comer S1 I W I Z I '• lflo &>-Ml / l]a :5 CD ti; ~I Ed...,.ord Cosliflo Allis IC1mberl y Costi!1o, Trust1111s M: _j ~ j-... :0: w 1 15 Q Co•tillo H2M Tn.ist vi -------r ---;, g o <n~~ ~~~1~~~9s11 _j ..J I ~ E ~1 ;;! :::: ~ ~ o""~ Lot '4A KN gs--46, Lot 6 KN 161-4, ''''"'' ...J I ;t 0 ~ I CD Lots 1-2 KN 8J-2BI ,''t,Of" AL tr1 (3 KNBJ-2 8 1 w ~U ~ • --~-··· -i,s.ll I I I LOT6 lroRM ~LOJ2 ~ i... mro-Z I _-q. *~I~ z 1 5 ~ WJ~K I f~~rd w~y ~-~-:4 9 ~. .:-ts Plat# ~ , --1 •5~;,· 90~67' a:~~.::r 1 ~,;, •92&-$ . .r ... = ... --,,_, I I L_ NS (.) ..Sf•~ 1~:~t~~9 ~~1 8J-281 ;~.w .SCOn~'j E ;i;-;I I . ( 11 =~ .. -NOTARY'SACKNOWl.EDGEMENT 1 1,;•••n ·-~--~ •'::. mt->e~,,.. -,, FOR '""''' _j~ I ~ I ·~ d "''° ; I I Aciu>owte<lgOd befO<o me "'1' .----s=u"'x=r.=-:O:-N:"'."'"s=u"'s=o:-1..,v:"'1~s:-1~0=-N:"'."'"---f LOT 5 L LOT 4 g = r01tr.1[1t LOT J '-,,,/ ~~ __ da y of __. 2017 (A Resubdft~G:,,i"uxfof £b'S: ~/J;'f?,'l~S"l'ot •A ~ , V'> , «: COVT LO T no Oetoi (Not to Kole) ~ • B!ock One KN 96-49, Bu xton Subd, lot 6 K-1624, Eagle _ ~ UU•tyCas~enl 65.62-_ _ _ __ _ __ Mycommls:>t<>ncxplres : ___ Rock: Ent«pr ise:11 Subd. Ho. 1Lots 1-J ICN 8 3-281 orid t he 11 5.6~ (c) , / .., Se• O•loll ,,.. -dH OCfoted Vaeo tion of Coolidge Lona 2 5' R/W ond Utility ;>ECONO AVENUE :i 66 R W " ' ', <••~on••> _ ~S _ ----_ ------£-J~4J_' ----I I NotaryPubflcforthe Costillo H2H Trust Q...,.ner N89 ~9'1o·E 660.4T ;., , / State of Alaska 1509 Jrd A~. ' .., '-. .,.. ICenol. AK gg511 LOCATION 1 ~-:'n:~c"' ----C0vTloT1J6------;re •,a1-$ --------1 PLAT APPROVAL 2.081 AC. M/l SHU AT[O IN THE SE 1/• SW 1/-4 SEC. JI I /., 2~1 KN 2016-39 Thlsp1.c was~by1rieKENA1 ~t~;:. ~~;";;Su~··0;0u~E 1;'~r~E~~"~~011;1~ ... ::t ,... LOT 2A I ~.:=~OOGH PLANNINGCOMMISSION l-'Dt"'S"'TRl'"C"'T"". ------..---------! 1 '1 . .., WASTEWATER DISPOSAL I I I ~ ~~~ Plans fOf wa&tewa1er disposal that meet )()00(, SOLDO™"-1«. ,_, tegufotory roquirements aro o nmealthe I 2017· ~:,mi~;• 5 Department of E1wironmentnl Consorvatk>n . I KENAJ PENINSULA BOOOUGH by C...-.'-WWWJIO.N#f.CO cou 8 1 M.ScotlMd..llMt l.S.'4928AX Oat• I r--____ -4 I ~Oftl<:Ltl ........ "',._ 00 a • ...,,0 e,.~o•? 83 'litff~ «1/t/i a Pa~t, Ct't,? «1/t/i a Fu.t~" 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax : (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager )7 c:>. Matt Kelley, City Planner /t.t. February 1, 2018 Resolution No . 2018-07 -Consenting to the Vacatio n of Certai n Rights-of- Way and Utility Easements within the proposed Bu xto n Subdivision, Eagle Rock Addition The purpose of this communication is to introd uce Re so lution No. 2018-0 7: Vacation of Certain Rights-of-Way and Utility Easements within the proposed Bu xton Subdivision , Eagle Rock Addition . On October 25, 2017 the City of Kenai Plann ing & Zoning Commission by Resolution approved PZ2017-34; a Preliminary Plat of Bu xto n Subdivision , Eagle Rock Addition This plat reconfigures Lot 4A, Blo ck 1, Bu xton Subdivision Castillo Replat; Lot 6 , Block 1, Buxton Subdivision ; and Lots 1 and 2, Eagle Rock Enterprises Subdivision No. 1, into a larger parcel to be described as Tract A, Bu xton Subdivision Eagle Rock Addition . The res ultin g parcel wou ld be approximately 1.791 acres and would me et the minimum lot size for the Suburban Resid e ntial zone. Third Avenue provides access to the reconfigured Tract A, Buxton Subdivision Eagle Rock Addition, which is a paved City maintained road. The plat further reconfigures Lot 3, Eagle Rock Enterprises Subdivision No . 1 into a larger parcel to be described as Lot 3A, Bu xton Subdivision Eagle Rock Addition. The resulting parcel would be approximately 12723 square feet and would meet the mini mum lot size fo r the Suburban Residentia l zone. Access to the reco nfigured Lot 3A, Bu xto n Subdivision Eagle Rock Addition is provided by Second Avenue , which is a paved City maintained road . Water and sewer lines are located within the rights-of-way of Second A ve nue and Third Avenue; therefore , the residences located o n the properties are connected to City water and sewer services . An installation agreement is not requi red . The applicant has filed a petition with the Kenai Peninsula Borough to vacate the 25 foot right-of- way for Coolidge Lane (see plat for detailed drawing of right-of-way). 84 Page 2 of 2 Resolution No. 2018-07 -Council Memorandum The right-of-way for Coolidge Lane has not been developed . A portion of Coolidge Lane, which lies to the South of subject property, was previously vacated by the plat of Haddock Subdivision KOC Replat. As set forth above, access to the reconfigured Tract A, and Lot 3A is provided by Third Avenue and Second Avenue . Staff finds that this right-of-way is not being utilized and can, therefore , be vacated . The applicant has also requested to vacate a five foot (5 ') utility easement that is adjacent to the right-of-way for Coolidge Lane (see plat for detailed drawing of utility easement vacation). The easement vacation affects the property currently described as Lots 1, 2, and 3, Eagle Rock Enterprises Subdivision No . 1. The applicant states that this easement is not being utilized and can; therefore, be vacated. The Kenai Peninsula Borough will require letters of non-objection from the utility companies to this utility vacation as part of their review process for the preliminary plat. Thank you for your consideration. 85 the cltyo/ KENAI. ALASKA '¥" CITY OF KENAI PLANNING AND ZONING COMMISSION RESOLUTION NO. PZ17-34 SUBDIVISION PLAT A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI RECOMMENDING THAT THE ATTACHED SUBDIVISION PLAT BE APPROVED SUBJECT TO THE FOLLOWING FINDINGS AND CONDITIONS: WHEREAS, the attached plat of BUXTON SUBDIVISION EAGLE ROCK ADDITION AND VACATION OF COOLIDGE LANE 25 FOOT RIGHT-OF-WAY AND UTILITY EASEMENTS was referred to the City of Kenai Planning and Zoning Commission on October 25, 2017, and received from Mclane Consulting, Inc.; and, WHEREAS, the right-of-way for Coolidge Lane and the utility easement adjacent to said right-of-way within the BUXTON SUBDIVISION EAGLE ROCK ADDITION, within the City of Kenai is no longer needed for a public use and may be vacated as follows: 1. Vacate Coolidge Lane; a 25 foot by approximately 660 foot right-of-way; and 2. Vacate a five-foot (5 ') wide by approximately 297-foot utility easement adjacent to the Coolidge Lane right-of-way. As set forth on the plat of BUXTON SUBDIVISION EAGLE ROCK ADDITION, which is attached hereto as Exhibit "A"; and, WHEREAS, the City of Kenai Planning and Zoning Commission finds : 1. Plat area is zoned Suburban Residential and therefore is subject to said zone conditions. 2 . Plat does not subdivide property within a public improvement district subject to special assessments. There is not a delinquency amount owed to the City of Kenai for the referenced property . 3. Installation agreement or construction of improvements is not required. 4. Status of surrounding land is shown. 5. Utility easements, if required, shall are shown. 6. Surveyor shall verify that no encroachments exist. If an encroachment exists; the plat does not create nor increase the encroachment. 7. Street names designated on the plat are correct. Resolution No. PZ17-34 -Buxton Subdivisio n Eagle Rock Addition -Cast illo Page 1 of 2 86 NOW, THEREFORE, BE IT RESOLVED, THAT THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI RECOMMEND THE KENAI PENINSULA BOROUGH PLANNING COMMISSION APPROVE BUXTON SUBDIVISION EAGLE ROCK ADDITION, SUBJECT TO THE FINDINGS AS SET FORTH ABOVE AND THE FOLLOWING CONDITIONS OF APPROVAL: a. Further developme·nt of the property shall conform to all Federal, State and local regulations. b. The City Council for the City of Kenai must approve the vacation of the 25 foot right-of-way for Coolidge Lane, and vacation of the five foot (5 ') utility easement pursuant to Kenai Municipal Code 22 .05.110 and Kenai Peninsula Borough Code 20.28.100. c. The City Manager for the City of Kenai must sign the plat acknowledging acceptance by the City of Kenai of the final plat. PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA, this 25th day of October, 2017 . Reso luti on No . PZ17-34 -Bu xton Subdi vision Eag le Rock Additio n -Castillo Page 2 of 2 87 m >< ::c -!!? -4 ~ ~I i~ .• ~:--~l ___ l ____ : -~I -~_:_3_3_0 __ ,-. -=,,.~~:~:·~,.~;_,._,. __ 33Q.ig·----.-1 I _J CERTIFICATE OF ACCEPTANCE THE UNDERSIGNED OFFICIAL IDE NTIFIED BY NAM ANO TITLE IS AUTHORIZED TO ACCEPT ANO HEREBY ACCEPTS ON BEHALF OF THE CITY OF KENAI r oR PUBUC PURPOSES THE A:EAL PROPERTY TO BE DEDICATED BY THIS PLAT INCLUDING EASEMENTS, RIGHTS-OF-WAY, AUEYS, ANO OTHER PUBLIC AREAS SHOWN ON THIS PLAT. THE ACCEPTANCE OF LANDS FOR PUBLIC USE OR PUBLIC PURPOSE OOES NOT OBLIGATE THE PUBLIC OR MN GOVERNING BODYI TO CONSTRUCT. OPERATE, OR MAINTAIN JO J : --"":Rl~-2!"' ~-~_J29 26 27 LO T I LOT 2 ~ ( -~.~ 1 -116.·;~ .. ~·~,,, •. ~ ---__'.'.'.'.. .,@~ 1 1 ,._ o m t l :r Vllit)' Conmml I r 1:l. ~ j I LOT J I ~ I ",'!:' J iJ I I § : ~ c .::::-.:~ '<> I I ---· I roRUt:R LOt .. ,. =-i ~ I ~ 9LOCKI .I ~ I I I I~ ~ ~~ liQIE.S. IMPROVEMENTS, BY: ____________ _ DATE CITY OF KENAI NOTARY'S ACKNOWLEDGEMENT FOR: Acknowledged befOfe me this LEWlll VICI NITY MAP Scale 1· • I Ml e T6N T5N C) LOT 2 'i'--~: t)WaterS<19P1Yarid~11is.pouh~1ernuhal be I I I :ic: ~ I UI MC72and18MC80. I -: N!:!. petmiUf,(l~lr'ICOl'lfOfmlncc:¥oith ~b!e~ot __ day of__, 2017 + 0 EB Record BLM m onument ottoet\ed to r~u lolion post not reeovt:red. ~ 2-)Ho~~~becoMt'Ud"OC"plaoea I 0 wt\t*'I #11 ~~ wtWctl would6nt•rfen.>wllh lhe •bllty of• / I ~ ulflty to use lhe eas.imeflt. 3 I Notary Public for the ...... Q) J)TheKer..iPer.lnsotl~PlannlngCcmmls.sSon I ........_ S tate of Alaska I I.!'. I LOT I •f>PnJYedlhevlle9tionolCOOUOGE LJ.~E 25'RIWand ~et: I CERTIFICATEOFOWNERSHIPANO ----1 ~ a.tsociat~U111tyEa~~tt1e met•!ngo1 10CX.20 17. J,b DEDICATIO N 3: Id .CJ~mustmc.ttneatyot Kena1Chaptert4 I o 0 I -1 '-.. <O ~ Zonlng Cod•reQ~. C'ol -':it WeMrtbycertif'(Dl.t -lheOWl'letSofhre•Pfoperty 0:: '° --------------z OJ showr1andducribedMteorlendonwehef'ebyldoptltU :C: _ 5) ThU p111 was preparftd trom toooro ""'NeT dN p..-plats I ::it: o) ola" of .nbdMtion and by oi11 W.• conSMI ff<llcate ~ :::; Co ~ i. in .-KN 201&.39,9G-49,83-2818nd152.C w.::looaddltklMl11itkl ~:2 ~-d~and~tfnStopubfil:uH anllgrantd My commission expiros ; __ _ R•cor d prim ar y monument of reeord not recovered. Prlmory monument os desc:t"ibecl. () r rebor of r ecord not rec:o'ffred. //';j R/W Vacated tt\is plot. Record data trom plots KN 96-49 & KN8~-2B l 'lll'Me rotated to o common Basis of Seer ing as shown. (R) Record ond found data 09ree ur.l ess shown other'llllise. 1 I <.O !" I ~H N b wupeltormedHofltnd<'te. ~ _ ~ easementstotheusesnown. ~ ~ I ~ lOT 7 i~ ~ ~ I ~ ~8J (c) Computed dota from KN6J-261 and KN96-•9. ~;:: 1.o ~ I I :'I < a>._;..., m;Wilriess Corner ik'. I . 8 ti ...I 111 -1 Ed•ord Costillo Arlls K1m berty Ccstit,a, Trustees F r... ft ~ 1 ~ O Costilto H2H Trust 111 ------~ ----i --0 c (/)~~ ~~1Jr~~~611 _j ::::l I ~ d) ~ :: ~ft own~s lot 4A K~ 96-46, lot 6 KN 1614, '''"''' I "'t 8 ~ I CD l ots 1-2 KN 83-281 ..., ........ Of A.( 11 1 {; KN BJ-281 i!: •• ~ • _.,. ~'<.:. ... . "f.s: 11 I I I LOT 6 I r o •MCR LOT ' if ._ z I _-,:;. ~ '!;. '<i Z I 5 6 I f5(t,J irdw:[!ey ~-~· ~g~~-· ·· 11:.~ _ N . • ldl# 115 il o•ner Loi J l<l'J 8J-281 ~ 'c, .w. SCOTT Wd.AH(/:; ~ I .45.41' 90.67' !::t~-~-I ,,~ 4128 -S -= -(c) (c) stt-W...W O.WO' 11-.,,. ..,, __ Plat# ~ ... ---"- r- I ., f-8 .., I """" AK 99611 ~-.. . .... . . .. " ~, I • :.:'~~MS NOTARY'SACKNOYVLEDGEMENT 1,1'-rss 1~ ............. - Q:) ~ ~·-;)t~-, ,,,,,,, ... ;:: I "'!> g / \ I ~~owte ed before me thl r----=,.,..,==,..,..===,,.,,==,..,..---1 _j"' I ~ ;: . "''° I I dg ' BUXTON SUBDIVISION tor 5 LOT 4 g = rOA ... l R l Ol' ... _ .. / day ot 2017 £AGLE ROCK ADDITIO N ~ I in Dttol (Nol to Sceil •) 1=4· --_. (A ResubdMslon of Bu11:lon Subd. CosUl o Replot lot 4A _ 1-.!. Utaltt Co:sem.,.t 65.62'--= _ __ ~'f l~ __ __ _j My commission exp{res ;___ :c:: ~:r:~3.9,6S::d. ~=~a;' C;t':l .:;t K~ tt~622:j !~:ethe 115.66 {c) , R/ ;., Sc• o.tol .,. -ouocioled Vacolfon of Coolldg• lone 25' R/W ond Ut ility 330_,,?ECONO A VEN UE ·~ 66 W 330_.,,. ~ ,' ', ta•em~•-> _ ----_ ----,-;-, -~ ------l NotaryPubletorthe Cost ~lo H2H Truat. Owl'ler N69"5910 E 650.47 ;., \ / State of AJaska 1~ Jtd >.'ff. •-'9 ..., '"-"" Kenai, AK 99611 LOCA TION l ~ ... ---OOvr~1Jfi-----~ 11m·s --------I PLAT APPROVAL 2.081 AC. M/l SITUATED IN me st 1/4 sw 1/4 sec. J1 sr~1/14 KN 2016-39 Thbpl.iw.:s~byth<l!KENAI ~::i:J ~~~StJ~~··a~~O,Jg,!(!;l~E~C~~~Er~()j~~ ;. s...J,+ Lor :A I :i~!~~OUCH Pt..ANNiNG co,.,.Mtss10N l-"'oi-.sm ..... ic .. T.,__ _____ ,.... _______ --1 ~ I '"' WASTEWATER DI SPOSAL I -I I Plans for w astewater di.sPosal lhal meet I I xxxx. a: regvlalory req ulrtimenl s are on file at !he I 2017. ~ ! Department o f Envfronmental Cons01Vatk>n. I KE NAI PENINSULA BOROUGH b)' 81 M.Swtt Mcll f'M!I l.S.4928 AK Olt• I r-----1 I ~,..,~,,,..,..~=--=-~---- ~ .......... ~Wf".£Mta-t"UT1NCI """""""·""'"'" ...O.to:c46e SOU>OTSA..~.,.., YOICE:(90!'1 ?9:M11t fAJC:{t01)2U-utS WWWJM:;J..Nl(.00.oot.I s c..u.c , ... sti I DA1"C :o ciT20,., P"OJl:CT N O. 172D 1 I llOOot NO,: 15"•1111 D•a ....... ,., MJI ... 88 Preliminary Plat Buxton Subdivision Eagle Rock Addition N W+E s 180 ' 1 inc h equ als 178 feet Th e info rmat io n depicted here on is f or gra phic re prese ntatio n onl y of th e be st avai labl e sou rces. The City of Kenai assumes no responsibility for erro rs o n thi s ma p . Date: 10/20/201 89 KENAI PENINSULA BOROUGH PLANNING DEPARTMENT 144 North Binkley Street• Soldotna, Alaska 99669-7520 PHONE: (907) 714-2215 •FAX: (907) 714-2378 ToN-free within the Borough : 1-800-478-4441 , Ext. 2215 www.kpb .us January 11, 2018 Kenai City Council 210 FidalgoAvenue Kenai , AK 99611 -7794 CHARLIE PIERCE BOROUGH MAYOR RE : Vacation of the Coolidge Lane right-of-way as dedicated on Buxton Subdivision. Plat KN 1624, and Eagle Rock Enterprises Subdivision No. 1, Plat KN 83-281. Als o vacation of the five foot wide utility easement adjoining Coolidge Lane on Lots 1, 2 , and 3 Eagle Rock Enterprises Subdivision No j , Plat KN 83-281 , as granted on Eagle Rock Enterprises Subdivision No 1, P lat KN 83-281 ; Locatjon: between Second Avenue and Third Avenue, City of Kenai and the KPB, SE1/4 SW1/4 of Section 31, Township 6 North, Ra nge 11 West, S.M .. AK ; File 2017-175V Dear Kenai City Council Members: In accordance with AS 29.40.140, no vacation of a city right-of-way and/or easement may be made without the consent of the city council. Based on the following findings of fact , the Planning Commission approved the referenced vacation during their regularly scheduled meeting of January 8 . 2018 . Findings 1. The property is within the C ity of Kenai. 2 . Development within the property must comply with the requirements of the zon in g district. 3 . Per Resolution PZ17-34. the property is zoned Suburban Residential. 4 . The Kenai Plann ing and Zoning Commission cond itionally approved the pre liminary plat Buxton Subdivision Eagle Rock Addition, which will finalize the vacations if approved , on October 25 , 2017. s. Buxton Subd ivis ion Eagle Rock Addition combines 5 lots into two lots in addition to vacating right- of-way and a utility easement. 6 . Tract A and Lot 3A have existing access off the paved , city maintained rights-of-way the lots front. 7 . The block consists of Second Avenue, North Forest Drive. Third Avenue . and North Gill Street. 8. North Gill Street , North Forest Drive, Second Avenue, and Third Avenu e are constructed and paved . 9 . If the vacation is approved , the block will still comply with KPB 20. 30 .170 . 10. The deed parcel and Government Lot 110 to the east have access off North Forest Drive. 11 . Lot 4, KN 83-281. to the west has existing access off Second Avenue. 12. Lots 1-3 , KN 1624, to the west have existing access off Thi rd Avenue and North Gill Street. 13. Lots 6 and 7, KN 83-281 , to the west have existing access off North Gill Street. 14. Sufficient rights-of-way e xist to serve surrounding properties . 15. No surrounding properties will be denied access. 16. Per the submittal. the right-of-way proposed for vacation is not in use for access. 17 . Per the submittal, the right-of-way proposed for vacation has not been constructed . 18. ENST AR and Horner Electric Association submitted statements of no comments or objections . This petition is being sent to you for your consideration and action . 90 The City Council has 30 days from January 8, 2018 in which to veto the decision of the Planning Commission . If no veto is received from the Council within the 30 -day period , the decision of the Planning Commission will stand . Draft, unapproved minutes of the pertinent port ion of the meeting and other related materials are attached . MJB :pdh Attachments Sincerely, ;/--" ~~~t/-/iu Planning Director 91 January 11 , 2018 KENAI PENINSULA BOROUGH PLANNING DEPARTMENT 144 North Binkley Street• Soldotna , Alaska 99669-7520 PHONE: (907) 714-2200 •FAX: (907) 714-2378 Toll-free within the Borough : 1-800-478-4441 , E xt. 2215 www .kpb .us CHARLIE PIERCE BOROUGH MAYOR KENAI PENINSULA BOROUGH PLANNING COMMISSION NOTICE OF DECISION MEETING OF JANUARY 8, 2018 RE : Vacation of the Cool idge Lane right-of-way as dedicated on Buxton Subdivision , Plat KN 1624, and Eagle Rock Enterprises Subdivision No. 1, Plat KN 83-28 1. Also vacation of the five foot wide utility easement adjoining Coolidge Lane on Lots 1, 2, and 3 Eagle Rock Enterprises Subdivision No 1, Plat KN 83-281 , as granted on Eagle Rock Enterprises Subdivision No 1 , Plat KN 83-281 ; Location: between Second Avenue and Th ird Avenue , City of Kenai and the KPB , SE 1/4 SW1/4 of Section 31, Township 6 North, Range 11 West, S.M., AK; File 2017-175V The Kenai Peninsula Borough Planning Commission approved the proposed right-of-way vacati on based on the following findings during their regularly scheduled meeting of January 8, 2018. Findings 1. The property is within th e City of Kenai. 2. Development within the property must comply with th e requirements of the zoning district. 3. Pe r Resolution PZ17-34, the property is zoned Suburban Residential. 4 . The Kenai Planning and Zoning Commission conditionally approved th e preliminary plat Buxton Subd ivision Eagle Rock Addition , which will finalize the vacations if approved, on October 25, 2017 . 5. Buxton Subdivision Eagle Rock Addition comb ines 5 lots into two lo ts in add ition to vacat ing right-of-way and a utility easement. 6 . Tra ct A and Lot 3A have existing access off the paved , city maintained rights-of-way the lo ts front. 7. Th e block consists of Second Avenue , North Forest Drive , Third Avenue, and North Gi ll Street. 8 . North Gill St ree t , No rth Forest D ri ve , Second Avenue, and Third Avenue are constructed and paved. 9. If the vacation is approved , the block will still comp ly with KPB 20 .30.170. 10. The deed parcel and Government Lot 110 to th e east ha ve access off North Forest Drive . 11 . Lot 4, KN 83-281 , to the west has e xisting access off Second Avenue . 12 Lots 1-3 , KN 1624, to the west have existing access off Th ird Aven ue and North Gill Street. 13 . Lots 6 and 7 , KN 83-281 , t o the west have existi ng access off North Gill Street. 14 . Sufficient rights-of-way exist to serve surrounding properties. 15 . No su rrounding properties will be denied access . 16 . Per the submittal , the right-of-way proposed for vacation is not ir. use fo r access. 17. Pe r the submittal, the right-of-way proposed for vacation has not been constrncted . 92 18. ENSTAR and Homer Elect ric Association submitted statements of no comments or objections. In accordance with AS 29 .40 .140, no vacation of a city right-of-way and/or easement may be made without the consent of the city council. The proposed vacation has been forwarded to the Kenai City Council. The City Council has 30 days from January 8, 2018 in which to veto the decision of the Planning Commission. If no veto is received from the Council within the 30-day period, the decision of the Commission will stand. Please contact the Kenai City Office to verify the date the subject vacation will be reviewed by the Counc il. If you have any questions, please feel free to contact the Kenai Peninsula Borough Planning Department. This notice and unapproved minutes of the subject portion of the meeting were sent January 11, 2018 to: Kenai City Council 210 Fid algo Avenue Kenai, AK 99611-7794 Mclane Consulting , Inc. PO Box468 So ldotna. AK 99669 Castillo H2H Trust C .O Edward & Arlis Casillo, Trustees 1509 3'd Ave Kenai, AK 99611-74 72 Mandy Castillo 1509 3'd Ave Kenai, AK 99611-7472 City of Kenai 210 Fidalg o Street Kenai, AK 99611-7794 John & Marie Parker 140 Main St reet Loop Kena i , AK 99611-7722 Cindy Worley 1508 2"d Ave Kenai, AK 99611-7479 93 AGENDA IT EM F. PUBLIC HEARINGS 2 . Vacation of the Coolidge Lane right-of-way as dedicated on Buxton Subdivision . Plat KN 1624 , and Eagle Rock Enterprises Subdivision No. 1, Plat KN 83-281 . Also vacation of the five foot wide utility easement adjoin ing Coolidge Lane on Lots 1, 2 , and 3 Eagle Rock Enterprises Subdiv ision No 1, Plat KN 83-281 , as granted on Eagle Rock Enterprises Subdivision No 1, Plat KN 83-281 ; location: between Second Avenue and Third Avenue , City of Kenai and the KPB, SE1/4 SW1/4 of Section 31 , Township 6 North , Range 11 West. S.M .. AK ; File 2017-175V Staff Report given by Max Best PC Meeting: 1/8/18 Purpose as stated in petition: The adjoining lots are being combined by replat so the right-of-way is no longer necessary. The Coolidge lane right-of-way to south was previously vacated by KN 2016-39 . The right-of-way is only a half right-of-way and the street was not constructed and is not being used by utilities. Alternate access exists via constructed public streets to all surrounding parcels. Petitioners: Castillo H2H Trust. Cindy Worley , and John C. and Marie L. Parker of Kena i, AK . Notification : Public notice appeared in the December 28 , 2017 issue of the Peninsula Clarion. The public hearing notice was published in the January 4 , 2018 issues of the Peninsula Clarion . Homer News , and Seward Journal as part of the Commission's tentative agenda . Thirty-two certified mailings were sent to owners of property within 300 feet of the parcels. Twenty-one receipts had been returned when the staff report was written. Forty-three public hearing notices were sent by regular mail to owners within 600 feet. Public hearing notices were emailed to 15 agencies and interested parties. The publ ic hearing not ice was distributed to 10 KPB Departments and 1 agency via a shared database. Notices were mai led to the Kenai Post Office and Kenai Community Library to be posted in pub lic locations. The notice and maps were posted on the Borough bulletin board and Plann ing Department public hearing notice web site. Comments :Received: ENSTAR : No comments, recommendations. or objections. Homer Electric Association : No comments or objections. ACS : No objections. Kenai Planning and Zoning Commission recommended approval of the preliminary plat t hat will finalize the vacations. if approved. on October 25. 20 17. subject to : a . Further development of the property shall conform to all Federal, State and loca l regulations . b. The City Council for the City of Kenai must approve the vacation of the 25-foot right-of-way for Coolidge lane. and vacation of the five foot (5') utility easement pursuant to Kenai Municipal Code 22. 05 .11 O and Kenai Peninsula Borough Code 20.28.100. c . The City Manager for the City of Kenai must sign the plat acknowledging acceptance by the C ity of Kenai of the final plat. KPB Addressing Officer: No objection to the vacation. KPB Code Compliance : No comments . KPB Planner: With in city limits; review not required. KENAI PENINSULA BOROUGH PLANNING COMMISSION JANUARY-8, 2018 MEE.T ING MINUTES PAGE 11 94 KPB River Center: City of Kenai does not participate in the KPB Floodplain Program. Not within the Habitat Protection District. KPB Roads Department. Outside the KPB Roads Department jurisdiction. State Parks: No comments. Staff Discussion : The pertinent KPB Code for Item bin the Kenai Comm ission's cond it ions of approval is 20.70.110. Comments from GCI were not available when the staff report was prepared . If the vacation is approved, it will be finalized by recording the plat Buxton Subdivision Eag le Rock Addition . The plat is scheduled for Plat Committee review on January 22 , 2018. Findings: 1. The property is within the City of Kena i. 2. Development within the property must comply with the requirements of the zoning d ist rict. 3. Per Reso lution PZ17-34, the property is zoned Suburban Residential. 4. The Kenai Planning and Zoning Commission conditionally approved the prel iminary plat Buxton Subdivision Eagle Rock Addition , which will finalize the vacations if approved, on October 25 , 2017 . 5. Buxton Subdivision Eag le Rock Addition combines 5 lots into two lots in addition to vacating right-of- way and a utility easement. 6. Tract A and Lot 3A have existing access off the paved , city maintained rights-of-way the lots front. 7. The block consists of Second Avenue , North Forest Drive , Third Avenue, and North Gill Street. 8. North Gill Street, North Forest Drive, Second Avenue, and Third Avenue are constructed and paved . 9. If the vacation is approved , the block will still comply with KPB 20.30.170 . 10. The deed parcel and Government Lot 110 to the east have access off North Forest Drive . 11 . Lot 4 , KN 83-281 , to the west has existing access off Second Avenue . 12 . Lots 1-3, KN 1624, to the west h ave existing access off Thi rd Avenue and North Gill Street. 13. Lots 6 and 7, KN 83 -281 , to the west have existing access off Nort h G ill Street. 14 . Sufficient rights-of-way e xist to serve surrounding properties . 15. No surrounding properties will be denied access. 16 . Per the submittal , the right-of-way proposed for vacation is not in use for access. 17 . Per the submittal , the right-of-way proposed for vacation has not been constructed . 18. ENSTAR and Homer Electric Association submitted statements of no comments or objections. STAFF RECOMMENDATION: Based on the above findings , staff recommends approva l of the vacations as petitioned , subject to : 1. Consent of the proposed vacations by the Kenai City Counc il. 2. Submittal of a final plat within a time frame that wi ll allow rec ordation of the plat wi thi n one year of vacation consent by the Ken ai City Council. 3. C ity Manager's signature on the final plat. 4. No objections from the uti lity providers. KPB 20.70.110: A vacation of a city street, public right-of-way, public area, or public easement located within an incorporated city may not be approved without the consent of the city council. The Kenai City Council shall have 30 calendar days from the date of approval in which to veto the planning commission decision. If no veto is received by the planning director within the specified period, the city shall be considered to have given consent to the vacation. KPB 20.70.120: A. Denial of a vacation petition is a final act for which no further consideration shall be gi ve n by the Kenai Peninsula Borough. B . Upon denial by the planning commission, no reapplication or petition concerning the same KENAI PENINSULA B OROUGH PLANNING COM M ISSION-JANUARY 8 , 2018 MEETING MIN U TES PAGE1 2 95 vacation may be filed within one calendar year of the date of the final denial action except in the case where new evidence or circumstances exist that were not available or present when the original petition was filed. KPB 20.70.130: THE FINAL PLAT MUST BE RECORDED WITHIN ONE YEAR OF THE VACATION CONSENT IN KPB 20.70.110. END OF ST AFF R EPORT Chairman Martin opened the meeting for public comment. 1. Mandy Ca stillo. 1509 Third Ave. Kenai Ms. Castillo was representing her father who could not be at the meeting . The reason for vacating this road was to extend their property by vacating this road . Chairman Martin asked if there were questions for Ms. Castillo. Hearing none the public hearing continued . Seeing and hearing no one else wishing to speak Chairman Martin closed the publ ic comment period and opened discussion among the Commission. MOTION: Commissioner Ecklund moved , se conded by Commissioner Carluccio approval of the vacation of the Coolidge Ln right-of-way as dedicated on Buxton Subdivision , Plat KN 1624 and Eagle Rock Enterprises Subdivision No . 1, Plat KN 83-281 as well as the vacation of the 5 foot wide utility easement adjoining the Coolidge Ln based on the following findings of fact per staff recommendations and adhe rence to borough code. Findings 1. The property is within the City of Kenai. 2. Development within the property must comply with the requirements of the zonin g district . 3. Per Resolution PZ 17-34, the property is zoned Suburban Resident ial. 4. The Kenai Planning and Zon ing Comm ission conditionally approved the preli minary plat Buxton Subd ivision Eagle Rock Addition. which will finalize the vacations if approved , on October 25 , 2017 5. Buxton Subdiv ision Eagle Rock Addition combines 5 lots into two lots in addition to vacating right-of- way and a utility easement. 6. Tract A and Lot 3A have existing access off the paved . city maintained rights-of-way the lots front. 7. The block consists of Second Avenue. North Forest Drive , Third Avenue , and North Gill Street. 8. North Gill Street. North Forest Drive. Second Avenue , and Third Avenue are cons tructed and paved. 9. If the vacation is approved . the block will still comply with KPB 20.30.170. 10. The deed parce l and Government Lot 110 to the east have access off North Forest Drive. 11 . Lot 4 , KN 83-281 . to the west has existing access off Second Avenue . 12 . Lots 1-3 , KN 1624, to the west have exist ing access off Third Avenue and North Gill Stre et. 13 . Lots 6 and 7, KN 83 -281 , to the west have existing access off North Gill Street. 14 . Sufficient rights .. of-way exist to serve surround ing propert ies. 15 . No surroundi ng properties will be denied access . 16 . Per the subm ittal , the right-of-way proposed for vacation is not in use for access. 17 . Per the submittal , the right-of-way proposed for vacation has not been constructed. 18 . ENST AR and Homer Electric Association submitted statements of no comments or objections . VOTE: The motion passed by unanimous consent. BENTZ CARLUCCIO ECKLUND I ERNST FIKES FOSTER ISHAM YES YES YES YES Y ES ABSENT ABSENT MARTIN -MORGA N I RUFFNER VENUTI WHITNEY 10YES LOCKWOOD ABSENT YES YES YES YES YES 3ABSENT KENAI PENINSULA BOROUGH PLAN NING COl.AMISSION JANUARY 8 . 201 8 MEETING MINUTES PAGE 13 96 the&ifJ"f, KENAI, ALASKA ~ C ITY OF KENAI RESOLUTION NO. 2018-08 Suggested by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, PERTAINING TO THE AUTHORIZED INVESTMENTS OF, THE INVESTMENT ALLOCATIONS OF, AND ESTABLI SHING APPROPRIATE BENCHMARKS TO MEASURE PERFORMANCE OF THE CITY 'S PERMANENT FUNDS FOR CALENDAR YEAR 2018. WHEREAS, pursuant to KMC 7.30.020 (a) (2) the Council of the City of Kenai shall annually approve an Asset Allocation Plan for investment of the City's Permanent Funds; and , WHEREAS, the KMC 7 .30 .020 (b) permits investment of t he Permanent Funds in various asset classes and the Council believes that establishing asset allocation criteria for these various asset classes is in the best interest of the City of Kenai; and , WHEREAS, the annually approved Asset Allocation Plan will provide benchmarks to measure investment performance. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, that the Council adopts the Asset Allocation Plan for calendar year 2018 as follows : Section 1: The Asset Allocation Plan and Target Weightings with range restrictions are as follows: ASSET CLASS Cash Fixed Income Large-Cap Domestic Equity International Equity Mid-Cap Equities Small-Cap Equities International Emerging Markets Real-estate equities TARGET % WEIGHTING 5 40 20 10 10 5 5 5 RANGE% 0-10 35-65 15-25 5-15 5-15 0-10 0-10 0-10 Section 2: The performance of the Fund and investment managers will be measured as follows: Performance measurement of the Fi x ed Income allocation will be measured against the Target weighting, using the Barcley's Intermediate Government/Credit Index for the benchmark. Performance measurement of the Large-Cap Domestic Equity allocation will be measured against the Target weighting, using the Standard & Poor's 500 Index for the benchmark. 97 Resolution No. 2018-08 Page 2 of 2 Performance measurement of the International Equity allocation will be measured against the Target weighting , using the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) index for the benchmark. Performance measurement of the Mid-Cap Equity allocation will be measured against the Target weighting , using the Standard & Poor's 400 Mid-Cap Index as the benchmark. Performance measurement of the Small-Cap Equity allocation will be measured against the Target weighting, using the Standard & Poor's 600 Small-Cap Index as the benchmark. Performance measurement of the International Emerging Markets allocation will be measured against the Target weighting, using the Morgan Stanley Capital International Emerging Markets index as the benchmark. Performance measurement of the Real-Estate Equities allocation will be measured against the target weighting, using the Standard & Poor's US REIT Index as the benchmark. Section 3 . That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of February 2018. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, City Clerk Approved by Finance: t....A1L- 98 'V/ff~ «1/th a Paif~ Ct~ «1/th a Fat~ " 210 Fidalgo Ave , Kenai , Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city ME MORANDUM TO: THROUGH: FROM : DATE: SUBJECT : Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager V. e,9., Terry Eubank , Finance Director 1/ January 31, 2018 Resolution No. 2018-08 -The authorized in vestments of, the investment allocations of, and establishing appropriate benchmarks to measure performance of the City 's Permanent Funds for calendar yea r 2018 . Pursuant to KMC 7.30.020 the Council shall annually designate by resolution the authorized investments and allocation plan for the City 's Permanent Funds . Resolution 2018-08 establishes the authorized investments and allocation plan to be used for calendar year 2018 . This year's allocation plan is identical to the 2017 investment methodology. $17 ,281 ,883 , the Airport Permanent Fund Balance , was invested in September 2008 and since the fund has transferred $9 ,043 ,509 to the Airport Special Re venue Fund for operations and had a market value of $25 ,751 ,998 at December 31 , 2017 . $2 ,526 , 702 , the General Land Sale Permanent Fund Balance , was invested in April 20 1 1 an d since the fund has transferred $607 ,587 to the General Fund for operations and had a ma rk et value of $3,231 , 126 at December 31 , 2017. On November 1, 2015 , at the request of the Kenai Community Foundation 's Board of Directors, the $66 , 143 invested by the City on behalf of the foundation was combined with the City 's permanent fund investments . The Foundation 's December 31 , 2017 balance was $143 ,849 including subsequent deposits by the Foundation . The three portfolios are combined and managed together to reduce investing costs. The combined portfolio has returned 8. 78 % since September 2008 . In contrast the City 's investment portfolio has yielded between 3.0% and 0.34% for the same period. When originally adopted the investment model being used was projected to return 8.0% annually. Due to lower proje cted total returns on the fi xed income portion of the portfolio (which constitutes 99 Page 2 of 2 Resolution No. 20 18-08 40-65% of the portfolio's value) the current 10-year projected rate of return for the portfolio is 6 .2% annually. This is an increase of 0.10% from last year due to start of interest rate normalization. Risk of the portfolio is measured in standard deviation from the expected rate of return . One standard deviation is equal to about 66% of all possible outcomes and two standard deviations is equal to about 95% of all possible outcomes. 66% (one standard deviation) of the time, the portfolio is expected to annually return between (3. 7%) and 16.0%, with an average annual return of 6.2%. 95% (two standard deviations) of the time , the portfolio is expected to annually return between (13.6%) and 25.9%. 2018 marks the 101h year of utilizing this investment methodology. During the next year the administration , with the assistance of Alaska Permanent Capital Management, will perform a thorough portfolio review including the annual return needed for operations, associated ri sk of portfolios with different return expectations, and different asset classes to develop an optimal portfolio for the next ten year cycle. There will likely not be significant cha nges to the portfolio, unless there is material change in the annual return needed for operations, but this is a needed and prudent process at the completion of each ten-year cycle. 100 tlrecityof. KENAI, ALASKA V" Sponsored by: Administration CITY OF KEN AI RESOLUTI ON NO. 2018 -09 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO INCORPORATE CHANGES TO LAND LEASE APPLICATION AND RENEWAL APPLICATION FEES FOR AIRPORT RESERVE LAND . WHEREAS , in 2017 , City Administration formed a working group to address the City's Airport Reserve land leasing program and make recommendations tha t would provide a competitive environment to encourage growth, development, and a thriving aviation community through reasonable and responsible land policies and practices; and, WHEREAS, the working group reviewed other airport leasing programs inside Alaska and in other states, as well as worked with consultants and reached out to airport leaseholders, users and financiers for input into improving the City's airport reserve leasing program and to ensure the recommended changes provide a competitive environment to encourage leasing within the airport reserve in compliance with FAA regulations and deed restrictions ; and WHEREAS, the working group presented recommendations to the City Council at a work session on November 29, 2017, the Planning and Zoning Commission at its meeting of January 10, 2018 , and the Airport Commission at its meeting of January 11, 2018 , which included changes to the fee schedule; and, WHEREAS, Ordinance No. 2998-2018 repealed, renamed and re-acted Kenai Municipal Code Chapter 21.10-Leasing of Airport Reserve Lands to encourage growth, development and a thriving aviation community through responsible land policies and practices ; and, WHEREAS, Amendments to the City's Comprehensive Schedule of Rates , Cha rges and Fees are needed to reflect the recommendations of the City Administratio n and comply with Ordinance No. 2998-2018. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Secti on 1. That The Land section of the City's Comprehensive Schedule of Rates , Charges and Fees be amended as follows: LAND MANAGEME NT L and L ease [APP LI C A T ION AND RE NEWAL APPLICATION] Fees [21 .10 .050(A)(1 )] 21.10.040(a) Airport Reserve Land Lease Application [FILING] Fee $100.00 21 .10.050 (a)(1) & 21 .10.080 A irport Reserve Land Lease Amendment [OR RENEWAL] Application Fee $100.00 101 Resolution No. 2018-09 Page 2 of 2 21.10.070 (a) Lease Extension or Renewal Application Fee 21.10 .070 (a) Request for Lease Amendment Fee Request for Consent to Sublease Fee Request for Lease Assignment Fee Section 2. That this resolution takes effect immediately upon passage. $100.00 $100.00 $ 50.00 $100 .00 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of February, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, City Clerk Finance /~ 102 'Vtfl~ «1/ti a Po.if~ Ot'tj «1/tlt a ratw<-e" 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai. city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Scott Bloom, City Attorney 5§ February 1, 2018 Resolution No. 2018-09-Amending Fee Schedule Resolution 2018-09 amends the City's fee schedule in conjunction with the Kenai Municipal Code re-write for leasing airport reserve property. The fee amounts were found by administration to be competitive with other markets and are similar to our past fees. A Request for Consent to Sub- lease is less than other fees because it theoretically involves less staff time to process and review. Administration requests action be postponed until Council's February 21, 2018 meeting to allow for review by the Airport Commission. Your consideration is appreciated . 103 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-10 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, APPROVING A STANDARD LEASE FORM FOR LEASING AIRPORT RESERVE LANDS WHEREAS, in 2017, City Administration formed a working group to address the City's Airport Reserve land leasing program and make recommendations that would provide a competitive environment to encourage growth , development, and a thriving aviation community through reasonable and responsible land policies and practices; and , WHEREAS , the working group reviewed other airport leasing programs ins ide Alaska and in other states, as well as worked with consultants and reached out to airport leaseholders, users and financiers for input into improving the City's airport reserve leasing program and to ensure the recommended changes provide a competitive environment to encourage leasing within the airport reserve in compliance with FAA regulations and deed restrictions; and WHEREAS, Ordinance No. 2998-2018 repealed, renamed and re-acted Kenai Municipal Code Chapter 21.10-Leasing of Airport Reserve Lands to encourage growth, development and a thriving aviation community through responsible land policies and practices ; and, WHEREAS, a new lease form for leasing airport reserve lands is needed to reflect the changes to the lea se form necessitated by Ordinance No. 2998-2018 and must be approved by Council Resolution pursuant to KMC 21.10.140. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. approved . Section 2. That the Lease Form attached hereto for the Leasing of Airport Rese rve Lands is That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 7 day of Fe bruary, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, City Clerk 104 KENAI MUNICIPAL AIRPORT LEASE OF AIRPORT RESERVE LANDS THIS LEASE AGREEMENT entered into this day of , 20_, by and between the CITY OF KENAI, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794, and whose address is _______________ ("Lessee "). DEFIN ITIONS For the purposes of this Lease the following terms are defined in KMC 21 .10.020 (effective as of the date of execution of the lease) as follows : 1. Airport -the Kenai Municipal Airport, including all the runways, taxiways, aprons , water lanes, water taxiways , and all City-owned real estate located within the boundaries of the Airport Reserve as defined in KMC Chapter 21 .05 , Airport Administration and Operation . 2. Airport Manager -the official to whom the City Manager of the City has delegated the authority and responsibility of managing and directing the activities of the Airport . "Airport Manager" includes that person 's authorized representative . 3. City-the City of Kenai , its elected officials , officers, employees or agents. 4 . City Manager -the official to whom the Kenai City Council has delegated the responsibility of managing and directing all activities of the City. 5. Contamination -the unpermitted presence of any released Hazardous Substance . 6. Environmental Law -any applicable federal, state, or local statute , law, regulation , ordinance , code, permit, order, decision , judgment of any governmental entity relating to environmental matters, including littering and dumping. 7. FAA-the abbreviation for the Federal Aviation Administration . 8. Hazardous Substance -any substance that is defined under an Environmental La w as hazardous waste , Hazardous Substance , hazardous material, to xic , pollutant, contaminant, petroleum , petroleum product, or oil. 9. KMC -the abbreviat ion for the Kenai Municipal Code. 10. Permanent Improvement -a fixed addition or change to land that is not temporary or portable, including a building, building addition , gravel fill , pavement, retaining wall, storage tank , well , and remediation of contamination for what the lessee is not responsible LEASE OF AIRPORT LANDS Page 1 of 31 105 ART ICLE I PREMISES LEASED A. PREMISES : In consideration of Lessee 's payment of the rents and performance of all the covenants of this Lease , the City leases to the Lessee, and the Lessee leases from the City, the following described property ("Premises") in the Kenai Recording District, Third Judicial District, State of Alaska and located on the Airport ; to wit: Description of Lease Property B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific warranties, expressed or implied , concerning the condition of the Premises including, survey, soils, wetlands , access , and suitability or profitability for any use including those authorized by this Lease, its environmental condition, or the presence or absence of Hazardous Substances in, on , and under the surface . The Lessee takes the Premises on an "as is" basis and without warranty, subject to any and all of the covenants, terms, and conditions affecting the City's title to the Premises. A. AUTHORIZED USES : ARTICLE II RI GHT S AND USES 1. USE OF PREMISES: The City authorizes the Lessee to use the Premises for the following purposes only: List authorized uses and limitations 2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in writing , the Lessee will operate on the Premises on a continuous basis, uninterrupted by any period of closure over 15 consecutive days. The Lessee will give the City written notice before closing the Lessee 's business on the Premises for more than 10 consecutive days. The notice must state the reason for the closure and the date on which the Lessee will re-open for bus iness. This provision does not apply to any period during which the Lessee is unable to operate its business as a result of an act or directive of the City, or as a result of a closure of the Airport or loss of the Lessee 's buildings on the Premises due to fire or natural disaster. B. RIGHTS RESERVED TO THE CITY: 1. RIGHT TO GRANT TO OTHERS: The City reserves the right to grant to others any rights and privileges not specifically granted to the Lessee on an exclusive basis . The rights and privileges granted to the Lessee in this Lease are the only rights and privileges granted to the Lessee by this Lease. LEASE OF AIRPORT LANDS Page 2 of 31 106 2. EASEMENTS: The City reserves the right to make grants to third parties or reserve to the City easements or rights of way through, on, or above the Premises. The City will not grant or reserve any easement or right of way that unreasonably interferes with the Lessee's authorized uses of the Premises. 3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of ingress to and egress from the Premises and the right to enter any part of the Premises, including buildings, for the purpose of inspection or environmental testing at any time. Except in the case of an emergency, all inspections and environmental testing will be coordinated with the Lessee to minimize interference with the Lessee 's authorized uses of the Premises. 4 . RIGHT OF FLIGHT: There is hereby reserved to the City, its successors and assigns, for the use and benefit of the public , a right of flight for the passage of aircraft in the airspace above the surface of the Premises. This public right of flight will include the right to cause in the airspace any noise inherent in the operation of any aircraft used for navigation or flight through the airspace or landing at, taking off from, or operation on the Airport. C. PROHIBITED USES: Unless specifically authorized by this Lease or an amendment to this Lease, the following are prohibited : 1. Any use of the Premises other than those authorized in this Lease. 2. Any use of the Premises that is in violation of a City Ordinance or an Airport regulation . 3. The outside storage on the Premises of junk, salvage aircraft or vehicle parts, non-operational support equipment, unused or damaged equipment or material, or solid waste or debris unless allowed pursuant to a conditional use permit under KMC 14.20. 4. The disposal on the Premises or the Airport of waste materials generated by the Lessee , including any Hazardous Substance, slash, overburden, and construction waste. 5. The stripping, wasting, or removing any material from the Premises without the prior written approval of the City. 6. Erecting structures or allowing growth of natural objects that would constitute an obstruction to air navigation, or allowing any activ ity on the Premises that would interfere with or be a hazard to the flight of aircraft, or interfere with air navigation or communication facilities, serving the Airport . 7. Any use or activity that is prohibited by applicable law or regulation. LEASE OF AIRPORT LANDS Page 3 of 31 107 ARTICLE Ill TERM & HOLDOVER A. TERM: The initial term of this Lease is for _____ years, from the 1st day of _______ , 20_, to the 30th day of , 20_. B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after the expiration, cancellation or termination of this Lease, the ho ld ing over will not operate as an extension of the term of this Lease , but only creates a month-to-month tenancy, regardless of any rent payments accepted by the City. The Lessee's obligations for performance under this tease will continue during the month-to-month tenancy. The City or Lessee may terminate the Lessee 's holdover with ten days ' advance written notice. ARTICLE IV RENTS AND FEES A. RENT: The initial rent for the Premises is $ .00 per year, as established by the City pursuant KMC 21.10.090 and as subject to annual adjustment on July 1 of each year under Article V of this Lease , plus applicable sales tax. The rent shall be payable annually in advance of the first day of each year of the term of this Lease. All payments required by this Lease must be made in U.S. dollars. If the annual rent exceeds $2,400, the Lessee may, upon written notice to the City, choose to pay the rent in equal monthly installments , payable in advance on or before the anniversary date of the term of this Lease and thereafter at monthly intervals. No conversion of the payment schedule from annual to monthly shall result in the City receiving less rent than it would have received had the conve rs ion not taken place . 1. Rent Credit: A rent credit may be applied for a maximum of five years of lease payments as provided in KMC 21.10.100 (as effective at the time this lease is executed). Once the work is completed and value determined , a credit will be applied to the lease payments, prorated as necessary for the successive five years. B. RENT PR ORA TED: Rental for any period less than one year shall be prorated on the basis of the rent payable under this Lease in last full year previous to the prorating. C. ADDITIONAL RENT : In addition to the rent specified in (a) of this Article, Lessee agrees to pay to the appropriate parties all levies, assessments, and charges as follows: 1. Taxes pertaining to the leasehold interest of the Lesse e. 2. Sales tax now enforced or levied in the future, computed upon rent payable in monthly installments whether the Lessee pays rent under this Lease on a monthly or annual basis. LEASE OF AIRPORT LANDS Page 4 of 31 108 3. All taxes and assessments levied in the future by the City, as if Lessee was the legal owner of record of the Premises. D. PAYMENTS : The Lessee shall make checks, bank drafts, or postal money orders payable to the City of Kenai and deliver payments to City of Kenai, Finance Department, 210 Fidalgo Avenue , Suite 200, Kenai, Alaska 99611-7794 or any other address the City may designate in writing to the Lessee. E. INTEREST: Beginning the day after payment is due, all unpaid rents , charges, and fees required under this Lease will accrue interest at the rate of eight percent (8 .0%) per annum. Interest on disputed amounts will not be charged to the Lessee if the dispute is resolved in the Lessee 's favor. F. LATE PAYMENT PENAL TY: In addition to any interest payable under Provision (E) of this Article , each time the Lessee fails to pay any rent or fee by the date required in this Lease , the City will charge, and the Lessee shall pay, an administrative penalty of ten percent (10.0%) of the amount due and unpaid. G. COURTESY BILLINGS: Lessee acknowledges that any billing statement issued by the City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when due, regardless of whether or not the Lessee receives a billing statement from the City. H. LIEN AGAINST LESSEE: Any rent , charge, fee, or other consideration which is due and unpaid at the expiration, termination, or cancellation of this Lease will be a lien against the Lessee 's property, real or personal. I. PAYMENT OF CITY'S COSTS: The Lessee will pay all reasonable actual e xpenses , costs, and attorney fees City may incur, with or without formal action , to enforce , defend, or protect this Lease or City's rights under this Lease , including any expense incurred with respect to environmental compliance, bankruptcy or any proceeding that involves the Lessee, the Lease, the Premises, or improvements or personal property on the Premises. The Lessee will make payment within 30 days of the date of each notice from City of any amounts payable under this provision . J . PAYMENT FOR SPECIAL SERVICES : Lessee agrees to pay the City a reasonable fee for any special services or facilities the City agrees to perform , which the City is not otherwise obligated by this Lease to provide and which the Lessee requests from the City in writing . ARTICLE V ADJUSTMENT OF RENT AND FEES A. RENT OR FEE ADJUSTMENT: The City shall adjust rent or fees payable by the Lessee under Article IV or other provisions of this lease on July 1 of each year of the lease as proved in KMC 21 .10 .090 (as effective at the time this lease is executed) and shall make any other adjustments to rent as allowed for in KMC 21.10 .090 . LEASE OF AIRPORT LANDS Page 5 of 31 109 No rent or fee change shall be effective until 30 days after the date of the City's written notice to the Lessee. If the Lessee believes that any changed rent exceeds the fair market rent for the Premises , the Lessee may appeal a rent change to the City as provided in KMC 21 .10.090 . ARTICLE VI ASSIGNMENT & SUBLETTING A. INVALID WITHOUT CITY'S CONSENT: The Lessee may not assign, sublet, or grant a security interest in, by grant or implication, the whole or any part of this Lease , the Premises, or any improvement on the Premises without the written consent of the City. Any proposed assignment, sublease, or security interest must be written and must be submitted to the City bearing the original, notarized signature of all parties. The Lessee may submit unsigned draft documents for the City's conceptual review . However, the City's conceptual approval of a draft document may not be construed as the City's consent to any assignment, sublease, or security interest. All provisions in this Lease extend to and bind the assignees and sub-lessees of the Lessee . B. NO WAIVER OF CONSENT: The City's consent to one assignment, sublease , or security interest will not waive the requirement for the Lessee to obtain the City's consent to any other assignment, sublease , or security interest. C. ASSIGNEE I LESSEE OBLIGATIONS: An assignment must include a provision stating that the assignee accepts responsibility for all of the assignor's (Lessee 's) obligations under this Lease , including environmental liability and responsib ility. However, unless the City specifically releases the Lessee in writing , the City may hold the Lessee responsible for performing any obligation under this lease which an assignee fails to perform. D. OCCUPANCY BEFORE CITY CONSENT: An assignee or sub-lessee may not occupy the Premises before the City consents to the assignment or sublease in writing. E. CONFLICT OF PROVISIONS : In the event of a conflict between th is Lease and an assignment or a sublease , the terms of this Lease control. F. LESSEE NOT RELIEVED OF OBLIGATIONS : The City 's consent to any sublease does not relieve or otherwise alter the Lessee 's obligations under this Lease . G. SECURITY ASSIGNMENTS AND FINANCING: 1. Subject to the requirements of (A) of this Article VI , the Lessee may assign a security interest in th is Lease. The security interest may be in the fo rm of a mortgage , deed of trust, assignment or other appropriate instrument, provided a. the security interest pertains only to the Lessee 's leasehold interest; LEASE OF AIRPORT LANDS Page 6 of 31 110 b. the security interest does not pertain to or create any interest in City's title to the Premises; and c . the documents providing for the security interest are acceptable to the City. 2. If the assignment of a security interest to which the City has consented shall be held by an established lending or financial institution , including a bank, an established insurance company and qualified pension or profit sharing trust , and the lending institution acquires the Lessee's interest in this Lease as a result of a foreclosure action or other remedy of the secured party, or through any transfer in lieu of foreclosure, or through settlement of or arising out of any pending or contemplated foreclosure action, the lending institution may transfer its interest in this Lease to a nominee or a wholly owned subsidiary corporation with the prior written consent of the City, provided , the transferee assumes all of the covenants and conditions required to be performed by the Lessee (including payment of any monies owed by Lessee to the City under the lease). In the event of such a transfer, the lending institution shall be relieved of any further liability under this Lessee . 3. A holder of a security interest in this Lease consented to by the City shall have , and be subrogated to , any and all rights of the Lessee with respect to the curing of any default of this Lease by Lessee. 4. A holder of a security interest consented to by the City that takes possession of this Lease shall not be released from the obligations and liabilities of this Lease unless the holder assigns its leasehold estate to an assignee who is financially capable and otherwise qualified to undertake to perform and observe the conditions of this Lease and the City consents to the assignment. The City's consent will not be unreasonably withheld . ARTICLE VII MAINTENANCE, SNOW REMOVAL & UTILITIES A. MAINTENANCE : 1. At no cost to the City, the Lessee will keep the Premises and all improvements on the Premises clean, neat and presentable, as reasonably determined by the City. 2. At no cost to the City, the Lessee will provide for all maintenance and services at the Premises as may be necessary to facilitate the Lessee's compliance with this Lease and the Lessee 's use of the Premises . LEASE OF AIRPORT LANDS Page 7 of 31 111 3. The Lessee shall comply with all regulations or ordinances of the City that are promulgated for the promotion of sanitation. At no cost to the City, the Lessee shall keep the Premises in a clean and sanitary condition, and control activities on the Premises to prevent the pollution of water. 4. The Lessee agrees to comply with all decisions and directions of the City's Airport Manager regarding maintenance and operation of the Airport, and the use of the Airport by the Lessee. B. SNOW REMOVAL: 1. At no cost to the City, the Lessee is responsible for snow removal on the Premises. The Lessee shall dispose of snow in an off-Premises location approved in writing by the City or provide suitable snow storage within the boundaries of the Premises in accordance with all applicable federal and state laws. At the request of the Airport Manager, the Lessee shall submit a snow removal plan for the Premises to the Manager for review. Upon approval of the Lessee 's plan by the A irport Manager, the Lessee shall conduct all snow removal operations on the Premises in accordance with the approved plan . 2. Lessee shall not deposit snow on an apron , taxiway, safety area , or other aircraft-maneuvering surface provided for common use by others without the prior written of the Airport Manager. 3 . Lessee agrees to not allow an accumulation of snow on the Premises that would cause interference with adjoining leaseholders or other users of the Airport. C. UTILITIES: Unless specifically provided otherwise in this Lease , the Lessee shall , at no cost to the City, provide for all utilities at the Premises necessary to facilitate the Lessee's use of the Prem ises. ART IC LE VIII OPE RATIONS A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee , its employees , guests , contractors, sub-lessees , and vendors that perform any activity or function authorized under this Lease shall do so in a manner that ensures the safety of people, t he protection of public health and the environment, and the safety and integrity of the Airport and the Premises . B. LESSEE'S CONTROL AND RESPONSIBILITY: 1. The Lessee will assume full control and sole responsibility as between Lessee and City for the activities of the Lessee, the Lessee's personnel and employees, and anyone else act ing by, on behalf of, or under the authority of the Lessee on the Airport, including the Premises. LEASE OF AIRPORT LANDS Page 8 of 31 112 2. The Lessee will immediately notify the City of any condition , problem , malfu nction or other occurrence that threatens the safety of people or the Airport , harm to public health or the environment , or the safety or integrity of the Premises . C . RADIO INTERFERENCE: The Lessee will discontinue the use of any machine or device that interferes with any government-operated transmitter, receiver, o r navigation aid until the cause of the interference is eliminated . D. WILDLIFE : The Lessee ack nowledges that a concentration of birds or other wildlife on an airport constitutes a significant hazard to aircraft operations . The Lessee agrees to keep the Premises clean of fish slime , fish waste , or any other material that migh t attract birds or other wildlife . The Lessee accepts full responsibility to maintain the Premises , control operations , and take all reasonable measures to prevent a concentration of birds or other wildlife on the Premises. E. PARKING : The Lessee will provide adequate vehicle, equipment, and aircraft parking space on the Premises for Lessee's business or activities , or confine parking to such other places on the Airport as may be approved or designated in writing by the Airport Manager. ART ICLE IX ENVIRONMENTAL PROVISIONS A. HAZARDOUS SUBSTANCE: 1. The lessee will condu ct it business and/or operation on the Premises in compliance with all environmental laws and permits . If hazardous substances are handled on the Premises , the Lessee agrees to have properly trained personnel and adequate procedures for safely storing, dispensing, and otherwise handling Hazardous Substances in accordance with all applicable federal, state and local laws . 2. Lessee will promptly give the City notice of proceeding to abate or settle matters relating to the presence of a Hazardous Substance on the Premises or from Lessee 's operations on the Airport. Th e Lessee will allow the City to parti c ipate in any such proceedings . B. ENVIRONMENTAL INDEMNIFICATION: If Contamination of the Premises or other property by a Ha zardous Substance occurs from the Lessee 's ope rations on the Premises the Lessee will indemnify, defend , and hold the City harmless from any and all claims , judgments , damages , penalties , fines , costs , liabilities, or losses , including , but not limited to, sums paid in sett lement of cla ims , attorney's fees , consultant fees , and expert fees, which arise during or after the term of this Lease as a result of such Contaminatio n. This indemnification of the City by Lessee includes, but is no t lim ited to , costs incurred in connect ion wi th any in vestigation of LEASE OF AIRPORT LANDS Page 9 of 31 113 site conditions or any cleanup, remediation, removal , monitoring, or restorative work required by any federal , state, or local governmental agency because of a Hazardous Substance being present in the soil or groundwater or under the Premises or other properties affected by the Contamination. C. REMEDIATION: 1. In the event of a Hazardous Substance spill on the Premises, the Lessee will immediately notify the City and the Alaska Department of Environmental Conversation and act, promptly, at its sole expense, to contain the spill , repair, any damage, absorb and clean up the spill area , and restore the Premises to a condition satisfactory to the City and otherwise comply with the applicable portions of any environmental law . 2. In addition to any notices required by this Lease , the Lessee will immediately notify and copy the City in writing of any of the following : a. Any permit, enforcement, clean up, lien , removal or other governmental or regulatory action instituted, completed , or threatened pursuant to an Environmental Law. b. Any claim made or threatened by any person against the Lessee or arising from the Lessee 's operations authorized by this Lease, relating to damage, contribution , compensation, loss or injury resulting, from , or claimed to result from any Hazardous Substances in , on , or under the Airport; or c. Any report made by, or on behalf of, the Lessee to any environmental agency arising out of or in connection with any Hazardous Substances in , on , or removed from the Premises , including any complaints, notices , warn ings, or asserted violations. 3. Remediation and restoration of the contaminated area must meet all applicable state and federal regulations and must meet the requirements of all governing regulatory authorities . D. ENVIRONMENTAL AUDIT: The Lessee will provide the City with all investigative data , test results , reports , and any other information gathered or analyzed as part of or in relation to any Environmental Assessment, characterization or audit on the Premises or the Airport that Lessee performs or causes to be performed after the starting date of this Lease . The Lessee w ill submit the data , result, report or information to the City within 60 days following the date on which it becomes available to the Lessee. E. RELEASE OF LESSEE : The City releases the Lessee from liability to the City for Contamination and the presence of Hazardous Substances that existed prior to the commencement date of this lease unless caused or materially contributed to by the Lessee . LEASE OF AIRPORT LANDS Page 10 of 31 114 F. SURVIVAL OF OBLIGATIONS: The obligations and duties of the City and Lessee under Article IX of this lease shall survive the cancellation, termination or expiration of this lease. A. INDEMNIFICATION: ARTICLE X INDEMNIFICATION & INSURANCE 1. The Lessee will indemnify, save harmless, and defend the City, its officers, agents, and employees from and against any and all liabilities, losses, suits, administrative actions, claims , awards, judgments, fines, demands, damages, injunctive relief or penalties of any nature or kind to the full extent of the loss or obligation for property damage , personal injury, death, violation of any regulation or grant agreement, or any other injury or harm resulting from or arising out of any acts or commission of or omission by the Lessee , Lessee's agents, employees, customers, invitees or arising out of the Lessee 's occupation or use of the premises demised or privileges granted, and to pay all costs connected therewith . This indemnification of the City by the Lessee shall include sums paid in settlement of claims, attorney fees, consultant fees, expert fees, or other costs and expenses, directly or indirectly arising from, connected to or on account of this Lease as it relates to the Lessee, the Lessee 's activities at or relating to the Airport, or any act or omission by the Lessee , or by any of Lessee 's officers, employees , agents, contractors or sub-lessees. These indemnity obligations are in addition to , and not limited by, the Lessee 's obligation to provide insurance , and shall survive the expiration or earlier termination of this Lease. 2. The Lessee shall give the City prompt notice of any suit, claim, action or other matter affecting the City to which Paragraph 1, above , may apply, together with a copy of any letter by an attorney on behalf of a complainant, any complaint filed in court , and any notice or complaint by any regulatory agency . The City shall have the right , at its option, to participate cooperatively in the defense of, and settlement negotiations regarding , any such matter, without relieving the Lessee of any of its obligations under this provision. 3. As to any amount paid to others for personal injury or property damage with respect to which an act or omission of the City is a legal cause , notwithstand ing Paragraph 1 of this section , the Lessee and the City shall reimburse each other according to the principles of comparative fault. If liability to a third party is subject to apportionment according to comparative fault under this provision, the Lessee and the City shall seek in good faith to achieve non-judicial agreement as to apportionment of fault as between themselves. This apportionment of liability between the City and the Lessee shall not be construed to affect the rights of any person who is not a party to this Lease . LEASE OF AIRPORT LANDS Page 11 of 31 115 B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force during the term of this Lease, insurance of the type and limits required by this provision. Where specific limits are set, they will be the minimum acceptable limits . If the Lessee 's policy contains higher limits, the City will be entitled to coverage to the extent of the higher limits. At the time insurance in obtained by the Lessee, all insurance shall be by a company/corporation rated "A-" or better by A.M. Best. The following policies of insurance are required with the following minimum amounts: I. Commercial General Liability, including Premises, all operations , property damage, products and completed operations, and personal injury and death, broad-form contractual, with a per-occurrence limit of not less than $1,000,000 combined single limit. If this lease authorizes the Lessee to engage in the sale or the commercial dispensing or storage of aviation fuel, the policy must not exclude of Lessee's fuel handling activities. This policy must name the City as an additional insured. 2. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence . This insurance must cover all owned , hired, and non-owned motor vehicles used by the Lessee. 3. Workers Compensation Insurance. The Lessee will provide and maintain, for all employees, coverage as required under AS 23 .30.045 , and, where applicable, any other statutory obligations. The policy must waive subrogation against the City. 4 . The Lessee will provide the City with proof of insurance coverage in the form of an insurance policy or a certificate of insurance, together with proof that the premiums have been paid , showing the types and monetary limits of coverage secured. All insurance required by this provision must provide that the City be notified at least 30 days prior to any termination , cancellation, or material change in the insurance coverage. 5. If the Lessee's insurance coverage lapses or is canceled , Lessee will immediately, upon written notice by the City, halt all operations on the Airport, including the Premises. The Lessee will not resume operations until the City receives evidence that the Lessee has obtained current insurance coverage meeting the requirements of this Lease. 6. The City may, at intervals of not less than five years from the beg inning date of the term of this Lease and upon written notice to Lessee , rev ise the insurance requirements required under this Lease. City's determination to revise the insurance requirements will be based on the risks relative to the Lessee's operations, any insurance guidelines adopted by the City, and any applicable law. LEASE OF AIRPORT LANDS Page 12 of 31 116 7. If the Lessee subleases all or any portion of the Premises under t he provisions of this Lease, the Lessee will require the sub-lessee to provide to the insurance coverage required of the Lessee under this Article X. ARTICLE XI LAWS & TAXES A. COMPLIANCE WITH LAW : Lessee shall comply with all applicable laws, ordinances , and regulations of public authorities now or hereafter in any manner affecting the Airport, the Premises or the sidewalks, alleys, streets, and ways adjacent to the Premises , or any buildings , structures, fixtures and improvements or the use thereof, whether or not any such laws, ordinances , and regulations which may be hereafter enacted involve a change of policy on the part of the governmental body enacting the same. Lessee agrees to hold City financially harmless : 1. From the consequences of any violation of such laws , ordinances , and/or regulations ; and 2. From all claims for damages on account of injuries, death, or property damage resulting from such violation. B . UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use , occupation , business , or trade to be conducted on the Premises contrary to any law, ordinance, or regulation , including zoning ordinances, rules and regulations . C. LICENSES AND PERMITS : The Lessee will obtain all necessary licenses and permits, pay all taxes and special assessments lawfully imposed upon the Premises, and pay other fees and charges assessed under applicable law. Nothing in this Lease prevents the Lessee from challenging any ta xes or special assessments to the appropriate authority. D . LITIGATION: The Kenai municipal code, including regulations promulgated thereunder, and the laws of the State of Alaska will govern in any dispute between the Lessee and City. If a dispute continues after exhaustion of administration remedies , any lawsuit must be brought in the courts of the State of Alaska, in Kenai , Alaska. E. LESSEE TO PAY TAXES: Lessee shall pay all lawful ta xes and assessments w hich , during the term of this Lease may become a lien upon or which may be levied by the State , Borough , City, or any other tax levying body, upon any ta xable possessory right which Lessee may have in or to the Premises or improvements on the Premises by reason of its use or occupancy or the terms of this Lease provided , however, that nothing in this provision shall prevent Lessee from contesting any in c rease in a ta x or assessment under any applicable law, ordinance , or regulation . LEASE OF AIRPORT LANDS Page 13 of 31 117 F. PARTIAL INVALIDITY: If any term, prov1s1on, condition , or part of this Lease is declared by a court of competent jurisdiction to be invalid or unconstitutional, the rema i ning terms , provisions, conditions , or parts shall continue in full force and effect as though the declaration had not been made. ARTICLE XII LEASE TERMINATION A. CANCELLATION : The City may, after 30 days' written no ti ce to the Lessee , cancel this Lease and recover possession of the Premises if any of the following violations occur, unless the violation is cured within the 30 days: 1. The Lessee fails to pay when due the rents , additional rents , charges, or other sums specified in this Lease , including any increases made under this Lease. 2 . The Lessee's check for payment of any sum due under this Lease is returned for insufficient funds. 3. The Lessee uses or authorizes the use of the Prem ises for any purpose not authorized by this Lease . 4. The Lessee fails to fully perform and comply with any p rovision in this Lease. 5. The Lessee v iolates a provision of Kenai Mun icipa l Code applicab le to th is Lessee . 6. The court enters a judgment of insolvency aga inst the Lessee . 7. A trustee or receiver is appointed for the Lessee's assets in a proceeding brought by or against the Lessee, or the Lessee files a voluntary peti tion in bankruptcy. 8. Failure by the Lessee to comply with any land development or permanent improvement construction required by this Lease . B. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated in accordance with this Article XII , or by summary proceedings or otherwise, or upon the Lessee 's abandonment of the Premises or a portion of the Premises , the City or its agents, servants, or representatives may, immediately or any time thereafter, re-enter, and resume possession of the Premises or portion thereof, and remove all persons and property therefrom , without being liable for any damages therefore . No re-entry by the City shall be deemed an acceptance of a surrender of the Lease. LEASE OF AIRPORT LANDS Page 14 of 31 118 C. CONTINUING OBLIGATIONS UNTIL PREMISES VACATED : The Lessee will continue to pay City rent after the ex piration, termination , or cancellation of this lease and to abide by the lease obligations, including providing proof of insurance coverage, through the date Lessee relinquishes possession of and completely vacates the Premises . City will consider the Premises completely vacated if the Lessee has 1. Remediated any environmental contamination for which the Lessee is responsible; 2. Restored the Premises to a neat and clean physical condition acceptable to the City. D. REASONABLE CURE : 1. In the case of a violation that cannot be reasonably cured within 30 days, a notice of cancellation issued by the City to the Lessee under this Article is stayed if, within the 30-day notice period , the Lessee begins and continues expeditious action to cure the violation. The City will determine if a violation cannot be reasonably cured within 30 days and what constitutes expeditious action. 2. In the case where , in City's sole determination , Lessee 's violation is considered an imminent threat to the airport, public health or safety, or the environment , City will direct the Lessee to stop the activity immediately and may reduce the period to cure the violation , or the City may correct the violation pursuant to (E) of this Article . E. RIGHT OF CITY TO PERFORM : 1. If, after 30 days following notice the Lessee fails or refuses to perform any action required by this Lease , the City will have the right, but not the obligation, to perform any or all such actions required by this Lease at the sole expense of the Lessee. The City will not take action if the Lessee begins and continues expeditious action to perform any action required by this Lease that cannot be reasonably completed within 30 days . The City will , at its sole discretion, determine what constitutes expeditious action and if an action cannot be reasonably performed in 30 days. The City will submit to the Lessee an invoice for the expenses incurred by the City in t he performance by the City of any required action . The Lessee will pay the amount of each invoice within 30 days from issuance. LEASE OF AIRPORT LANDS Page 15 of 31 119 2. If Lessee fails or refuses to perform any action that has been deemed an imm inent threat the City will have the right , but not the obl igation , to perform any or all such actions required to expeditiously correct the imminent threat. Lessee shall reimburse the City for any cost , including lega l fees and administrative costs reasonably incurred by the City in acting to correct t he imminent threat violation. F. WAIVER: A waiver by the City of any default by the Lessee of any provision of this Lease will not operate as a waiver of any subsequent default. If the City waives a default, the City is not required to provide notice to the Lessee to restore or revive any term or condition under this Lease . The waiver by the City of any pro vision in this Lease cannot be enforced or relied upon unless the waiver is in writing and signed on beha lf of the City . The City's failure to insist upon the strict performance by the Lessee of any provision in this Lease is not a waiver or relinquishment for the future , and the provision will continue in full force. G. AIRPORT CLOSURE : 1. If the City closes the airport to aircraft operations fo r si xty days or less, th is Lease will remain in full force and effect without adjustment 2. If the City closes the Airport to aircraft opera ti ons for more than si xty days , bu t not permanently, and this Lease is for aviation or direct av iation support uses , the Lessee may, upon written notice to the City, either terminate the Lease or retain the Lease and receive a fifty (50 %) percent rent reduction or credit fo r that portion of the closure that exceeds sixty days . 3. If the City permanently closes the Airport to a ircraft operations and a. this Lease is for aviation or direct aviation support uses , the Less ee may terminate this agreement by written notice to the City ; or b. th is Lease is for non-a viation uses, the Lessee may request in wr iti ng to have the Lease term inated . The City wi ll co ns ider the Lessee 's request in light of the City's best interest and e ither terminate the Lease , or deny the Le ssee 's request in writing. H. DISASTERS : The Lessee or City may cancel th is lease upon written notice to the other party if: 1. the Premises becomes unusable through no fau lt of either party and performance under this lease becomes impossible ; or 2. the Airport becomes unusable through no fault of either party and the performance under this lease becomes impossible . LEASE OF AIRPORT LANDS Page 16 of 31 120 If the Lessee elects in writing that it will continue to operate after notice from City to Lessee that the Airport has become unusable, the Lessee 's obligations under the Lease will continue, but City shall be under no obligation to continue to perform . Causes for termination of the lease under this provision (G) include acts of God, the public enemy, and the United States. I. NATIONAL EMERGENCY: If the federal government declares a national emergency, neither party may hold the other liable for any inability to perform any part of this Lease as a result of the national emergency. J. SURRENDER ON TERMINATION : Except as provided otherwise in this Article XII, Lessee shall, on the last day of the term of this Lease (including any extension or renewal thereof) or upon any earlier termination of this Lease, surrender and deliver up the premises into the possession and use of City without fraud or delay in good order, condition , and repair, except for reasonable wear and tear since the last necessary repair , replacement, restoration or renewal , free and clear of all lettings and occupancies unless expressly permitted by the City in writing , and free and clear of all liens and encumbrances other than those created by and for loans to City. K. OWNERSHIP AND DISPOSITION OF IMPROVEMENTS : 1. Ownership of Permanent Improvements: Permanent improvements on the Premises, excluding Site Development Materials, constructed, placed , or purchased by the Lessee remain the Lessee 's property as long as this Lease remains in effect, including any period of extension or holdover with the consent of the Lessor. 2. Disposition of Site Development Materials : The Lessee acknowledges that, once placed by the Lessee, the removal from the Premises of Site Development Materials can damage the Premises, adversely affect surface water drainage patterns, and destabilize adjacent structures . When placed on the Premises by the Lessee , Site Development Materials, including building pads, parking areas, driveways, and similar structures: a . become a part of the realty and the property of the City of Kenai; b . unless otherwise directed by the Lessor, must be maintained by the Lessee throughout the term of this Lease , including any extensions and periods of holdover; and c. may not be removed by the Lessee without the prior written approval of the Lessor. LEASE OF AIRPORT LANDS Page 17 of 31 121 3. Disposition of Personal Property and Permanent Improvements Other Tha n Site Development Materials: a. Unless the Lessor otherwise directs as provided below, when th is Lease expires, terminates, or is cancelled and is neither extended nor followed by a successive lease , the departing Lessee may do one or more of the following: i. remove Lessee-owned Permanent Improvements from the Premise s, remediate any Contamination for which the Lessee is responsible, and restore the Premises to a clean and neat physical condition acceptable to the Lessor within 60 days after the expiration, cancellation, or termination date of this Lease ; ii. with written approval from the Lessor, sell Lessee-owned Permanent Improvements to the succeeding lessee, remove all personal property, remediate , an y Contamination for which the Lessee is responsible and leave the Premises in a clean and neat physical condition acceptable to the Lessor withi n 60 days after notice from the Lessor that the Lessor has approved an application for a lease of the Premises by another person or such longer period specified in the notice, but in no event more than 180 days after the expiration , termination, or cancellation date of this Lea se; iii. elect to have the Lessor sell Lessee-owned Permanent Improvements at public auction as provided below, remediate any Contamination for which the Lessee is respons ible, and restore the premises to a clean and neat phys ic al condit ion acceptable to the Lessor. If the Le ssor sells Permanent Improvemen ts under this Paragrap h for removal from the Prem ises, the departing Lessee's ob ligation under this Paragraph continues until the Premises are remediated and restored to a clean and neat physical cond ition acceptable to the Lessor after the improvements have been removed. b . If the departing Lessee elects to have the Lessor sell Lessee-owned Permanent Improvements at public auction per this Section, the Lessee shall , within 30 days after the expiration, cancellation, or termination of this Lease : i. submit to the Lessor a written request and authorization to sell the Permanent Improvements by public auction; LEASE OF AIRPORT LANDS Page 18 of 31 122 ii. provide to the Lessor an executed conveyance document transferring clear title to the Permanent Improvements to the successful bidder at the public auction, along with authorization to the Lessor, as agent for the Lessee for purposes of the sale only, to endorse the name of the successful bidder on the conveyance document upon receipt of payment of the successful bid price; and iii. before the date of the public auction, remove all personal property, remediate any Contamination for which the Lessee is responsible and leave the Premises in a neat and clean physical condition acceptable to the Lessor. c. When selling Lessee-owned Permanent Improvements at public auction for the departing Lessee, the Lessor will establish the terms and conditions of the sale. The Lessor shall pay the Lessee any proceeds of the sale of the Permanent Improvements, less the administrative costs of the public auction and any financial obligation the Lessee owes to the Lessor under this Lease. Payment will be made within a reasonable time after the Lessor completes the sale transaction and receives the proceeds, but not to exceed 60 days. If all or a portion of the Permanent Improvements do not sell at public auction, the Lessee will remove those Permanent Improvements, remediate any Contamination for which the Lessee is responsible and restore the Premises to a clean and neat physical condition acceptable to the Lessor within 60 days after the auction. d. If the Lessee shows good cause to the Lessor and if it is not inconsistent with the best interest of the City of Kenai, the Lessor will grant an extension of time that is sufficient to allow the Lessee to remove or sell Lessee-owned Permanent Improvements , remediate any Contamination for which the Lessee is responsible and to restore the Premises to a clean and neat physical condition acceptable to the Lessor. e. The Lessor will, by written notice, direct the departing Lessee to remove Lessee-owned Permanent Improvements from the Premises, to remediate , consistent with applicable law, any Contamination for which the Lessee is responsible and to restore the Premises to a clean and neat physical condition acceptable to the Lessor if the Lessor determines in writing: i. that the continued presence of the Permanent Improvements on the Premises are not consistent with any written Airport program or plan required for compliance with applicable federal, state , or local law; LEASE OF AIRPORT LANDS Page 19 of 31 123 ii. that the continued presence of the Permanent Improvements on the Premises is not in the best interest of the City of Kenai; or iii. that the Permanent Improvements present a hazard to public hea lth or safety. f . The departing Lessee to whom the Lessor has issued direction under Paragraph e of this Section shall comply with the Lessor's direction within 60 days after issuance of the direction and at no cost to the Lessor. If the departing Lessee shows good cause to the Lessor, continues to work diligently to comply with Lessor's direction , and if it is not inconsistent with the best interest of the City of Kenai , the Lessor will allow in writing a longer period that is sufficient to allow the Lessee to comply with the Lessor's direction . A departing Lessee who fails to comply with a direction issued by the Lessor under Paragraph e of thi s Section , shall , within 30 days of being billed by the Lessor, reimburse the Lessor for any costs reasonably incurred by the Lessor, including legal fees and administrative costs, to enforce the Lessor's direction or to remove and dispose of unremoved Lessee-owned improvements , remediate any Contamination for which the Lessee is responsible and restore the Premises . g . If the departing Lessee does not timely remove or sell the Lessee-owned Permanent Improvements on the Premises in accordance with t he requirements of this Section, any remaining Permanent Improvements and any remain ing personal property of the departing Lessee w ill be considered permanently abandoned . The Lessor may sell , lease, demolish , dispose of, remove, or retain the abandoned property for Airport use as the Lessor determines is in the best interest of the City of Kenai. The departing Lessee shall , within 30 days after being billed by the Lessor, reimburse the Lessor for any costs reasonably incurred by the Lessor, including legal and administrative costs , to demolish , remove , dispose, clear title to , or sell the abandoned property and to remediate and restore the Premises. h. After the expiration , termination , or cancellation of the Lease , including any holdover, the departing Lessee loses all right to occupy or use the premises without the e xpress or implied consent of the Lessor. Except as the Lessor notifies the departing Lessee otherwise in writing , the Lessor consents to the departing Lessee's continued use and occupancy of the Premises to diligently accomplish the requirements of this Section . Until the departing Lessee relinquishes possession of and completely vaca tes the Premises and notifies the Lessor in writing that LEASE OF AIRPORT LANDS Page 20 of 31 124 it has relinquished and vacated the Premises, the departing Lessee shall perform the following as if the lease were still in effect, i. pay rent to the Lessor; ii. maintain the premises; iii. provide the Lessor with evidence of each insurance coverage, if any, required under the Lease; and iv. cease using the premises other than to diligently accomplish the requirements of this Section, and to comply w ith the other requirements of the Lease. i. A departing Lessee will not be considered to have relinquished possession and completely vacated the Premises until i. the departing Lessee has: (a) remediated, consistent with applicable law, any Contamination for which the Lessee is responsible; and (b) restored the Premises to a clean and neat physical condition acceptable to the Lessor; and ii. either (a) removed all of the Lessee's Permanent Improvements and personal property from the premises or sold the Permanent Improvements and personal property to a succeeding Lessee under the provisions of this Lease; or (b) transferred title to the Lessee's Permanent Improvements and personal property that remain on the premises to the Lessor. ARTICLE XIII GENERAL COVENANTS A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport lands or facilities without the written consent of the City is prohibited . This prohibition shall not apply to use of areas designated by the City for specified public uses, such as passenger terminals, automobile parking areas, and streets. LEASE OF AIRPORT LANDS Page 21 of 31 125 B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not limited to recording costs, shall be paid by Lessee. C. CARE OF THE PREMISES : The Lessee shall keep the Premises clean and in good order at the Lessee 's own expense, allowing no damage, waste, nor destruction thereof, nor removing any material therefrom, without written permission of the City. At the expiration of the term fixed, or any earlier termination of the Lease, the Lessee will peaceably and quietly quit and surrender the premises to the City. D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction on the Premises by the Lessee must be compatible with its surroundings and consistent with the uses authorized under this Lease, as determined by the City. The Lessee must obtain the City's written approval before placing fill material , beginning any land development , or constructing or demolishing any improvements on the Premises , and before beginning any alterations, modifications , or renovation of existing structures on the Prem ises . The Lessee must submit to the City detailed drawings of the proposed development, alteration , mod ification , or renovation, together with specifications or any other information the City reasonably requires . Further , the Lessee will submit to City evidence of the Lessee 's compliance with Federa l Aviation Administration regulation 14 CFR Part 77. E. LEASE SUBORDINATE TO AIRPORT FINANCING REQUIREMENTS : Lessee agrees that City may modify this Lease to meet revised requirements for Federal or State grants, or to conform to the requirements of any revenue bond covenant. However, the modification shall not act to reduce the rights or privileges granted the Lessee by this Lease , nor act to cause the Lessee financial loss. F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and covenants that the Lessee, upon paying rent and performing other covenants , terms , and conditions of this Lease , shall have the right to quietly and peacefully hold , use , occupy, and enjoy the Premises, except that the following shall not construed as a denial of the right of quiet or peaceable possession : 1. Any inconvenience caused by public works projects in or about the Premises; and 2. Any other entries by the City on the Premises reserved or authorized under other provisions of this Lease . G . NO PARTNERSHIP OR JOINT VENTURE CREATED : It is expressly understood that the City shall not be construed or held to be a partner or joint venture of Lessee in the conduct of the Le ss ee 's activities or business on the Premises. The relationship between the City and the Lessee is , and shall at all times remain, stri ctly that of landlord and tenant, re spe ctively . LEASE OF AIRPORT LANDS Pa ge 22 of 31 126 H. DISCRIMINATION: The Lessee will not discriminate on the grounds of race, color, religion , national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or state law. The Lessee recognizes the right of the City to take any action necessary to enforce this provision, including actions required pursuant to any federal or state law. I. AFFIRMATIVE ACTION : If required by 14 CFR Part 152, subpart E, the Lessee will undertake an affirmative action program to insure that no person will be excluded from participating in any employment activities offered by the Lessee on the grounds of race, creed , color, national origin, or sex. No person may be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by subpart E. The Lessee further agrees that it will require its sub-organization(s) provide assurance to the City to the same effect that they will also undertake affirmative action programs and require assurances from their sub-organization( s) as required by 14 CFR, Part 152, subpart E . Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to title 49, code of Federal Regulations, DOT, Subtitle A , Office of the Secretary, Part 21 , Nondiscrimination in Federally-Assisted programs of the Department of Transportation- Effectuation of Title VI of the Civil Rights Act of 1964, and as the Regulation may be amended. J . INTEGRATION , MERGER, AND MODIFICATION: This Lease sets out all the terms, conditions, and agreements of the parties and supersedes any previous understandings or agreements regarding the Premises whether oral or written. No modification or amendment of this Lease is effective unless in writing and signed on behalf of the City and the Lessee . K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend , and enforce reasonable rules and regulations governing the Airport, including the Premises. The City shall not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's rights under this Lease, on account of the exercise of the City 's authority reserved under this provision. Furthermore, the Lessee shall not be entitled to terminate the whole or any portion of the leasehold estate created under this Lease , by reason of the exercise of the City's authority reserved under this provision , unless the e xercise thereof so interferes with Lessee's use and occupancy of the Premises as to constitute a termination, in whole or in part, of this Lease by operation of law under the laws of the State of Alaska and of the United States made applicable to the states. L. LESSEE'S OBLIGATION TO PREVENT AND REMOVE LIENS: Lessee will not permit any liens including , but not limited to, mechanics', laborers', or materialmen's liens obtainable or available under the then existing laws, to stand against the Premises or improvements on the Premises for any labor or material furnished to Lessee or claimed to have been furnished to Lessee or to the Lessee's agents, contractors , or sub-lessees, in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Lessee. Provided , however, the Lessee shall have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. Upon a final determination of the lien or claim for lien , the Lessee LEASE OF AIRPORT LANDS Page 23 of 31 127 will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Lessee's own expense . M. CONDEMNATION : In the event the Premises or any part thereof shall be condemned and taken for a public or a quasi-public use, then upon payment of any award or compensation arising from the condemnation or taking , the City and the Lessee shall make a good faith effort to agree upon 1. the division of the proceeds ; 2 . the abatement in rent payable during the term or any extension of the term of this Lease; and 3. other adjustments as the parties may agree upon as being just and equitable under all the circumstances. If, within thirty days after the award has been paid into Court, the City and Lessee are unable to agree upon what division , abatement in rent, and other adjustments as are just and equitable, the dispute shall be determined by arbitration . N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations on assignment as are provided for in this Lease. 0. NOTICES: 1. Any notices required by this Lease must be in writing and must be delivered personally or mailed by certified or registered mail in a prepaid envelope . A mailed notice a. must be addressed to the respective party at the address written on the first page of this Lease or to the latest address designated in accordance with (2) of this Provision (O); and b. shall be deemed delivered on the date it is deposited in a U .S. general or branch post office. 2. The City or the Lessee may, from time to time, designate a new address at which they will receive notices by providing the other party with written notice at least 15 days prior to the effective date of the change. An address change notice must be delivered according to the procedure set out in (1) of this Provision (0). P. RETENTION OF RENTAL: In the event the City terminates this Lease because of any breach by the Lessee , the City shall retain any unused balance of the rental payment last made by the Lessee City as partial or total liquidated damages for the breach. LEASE OF AIRPORT LANDS Page 24 of 31 128 Q. FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent , and take all necessary action to suppress destructive or uncontrolled fires and co mply with all laws, regulations, and rules promulgated and enforced by the City for fire protection on the Airport . R. PERSONAL USE OF MATERIALS: No interest in coal, oil, gas or any other mineral, or in any deposit of stone or gravel valuable for extraction or utilization is included in the Premises or in the rights granted by this lease . The Lessee shall not sell or remove from the Premises for use elsewhere any timber, stone, gravel , peat moss, topsoil or any other material valuable for building or commercial purposes. S. APPROVAL OF OTHER AUTHORITIES: The granting of this lease by the City does not relieve the Lessee of the responsibility to obtain any license or permit as may be requi red by federal , state, or local law. T. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the Lessee, or a duly authorized representative of Lessee , and an authorized representative of the City. U . CAPTIONS: The captions of the provisions of this Lease are for convenience only and do not necessarily define, limit, describe, or construe the contents of any provision. V. RIGHTS OF CONSTRUCTION : This Lease is intended to make public property available for private use, while at all times protecting the public interest to the greatest extent possible. Following the rule that transfers of interest in public property are to be strictly construed in favor of the public property landlord , all rights granted to the Lessee under this Lease will be strictly construed, and all rights of the City and the protections of the public interest will be liberally construed . W . LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee has read th is Lease and fully understands its terms , that the Lessee has been fully advised or has had the opportunity of advice by separate legal counsel , and voluntarily executes this Lease. Lessee also acknowledges and agrees that the rule of interpretation under which a document is construed against the drafter will not apply to this Lease. X . APPROVAL BY LESSOR: Any approval required of the Lessor by this Lease will not be unreasonably withheld. The Lessor's approval does not waive the Lessee's legal responsibility or liability to comply with all applicable federal and state laws and regulations . ARTICLE XIV SURVE~IMPROVEMENTSANDPERFORMANCEBOND A SURVEY: The Lessee is solely responsible , at its sole expense, to confirm or establish the physical lo cation of the boundaries of the Prem ises prior to beginning any construction thereon , including clearing grubbing , back-filling and environmental sampling . Any survey of the Premises shall be performed by a Land Surveyor registered in the State of Alaska . The LEASE OF AIRPORT LANDS Page 25 of 31 129 Lessee shall furnish the City with a copy of the plat of any survey performed on the Prem is es by, or on behalf of, the Lessee. B. IMPROVEMENTS : 1. REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including , by no later than , with an aggregate cost of at least $ , excluding financing costs. In addition to the as- built drawings required by this Lease, the Lessee must submit to the City written evidence that the Lessee has completed the land development and constructed improvements on the Premises with an aggregate cost or investment of not less than$ ------ The evidence of cost must be submitted to the City within sixty days of the completion of the development and improvements , but by no later than a. Costs considered toward the aggregate cost of permanent improvements include building construction, design, labor, materials, materials shipping, permits, equipment, soil testing , environmental baseline report , and environmental assessment directly related to the construction; premises and as-built surveys; site preparation , including excavation, geotextile fabric, filling , grading , fill material, gravel , and pavement, remediation of environmental contamination (unless Lessee caused or Materially Contributed To the Contamination); and utility connection costs . b. The cost of Permanent Improvements excludes : 1. work performed by the City and not reimbursed by the Lessee; and 2. work performed by the Lessee and reimbursed by the City. 2. FAILURE TO COMPLETE IMPROVEMENTS: If the Lessee fails to complete the required construction within the time allowed under (b)(1) of this Article, including any extensions granted, the City will execute against and the Lessee will forfeit, any bond or other guarantee given by the Lessee and , as applicab le, City will: a. initiate cancellation of the lease ; or b. reduce the term of the lease to a period that is co nsistent with the portion of the required construction timely completed . LEASE OF AIRPORT LANDS Page 26 of 3 1 130 3. APPEARANCE : When completed , all improvements on the Premises must be neat, presentable, and compatible with the authorized use of the Premises under this Lease, as determined by the City. 4. CITY APPROVAL REQUIRED: The Lessee must first obtain the City's written approval before beginning any land development, construction or demolition of any improvements on the Premises, or before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration , modification , or renovation. Further, the Lessee will submit to City evidence of the Lessee's compliance with the FAA regulation 14 CFR Part 77 . 5. CITY APPROVAL WITHHELD: The City's approval of any construction, alteration, modification, or renovation will not be withheld unless a. the Lessee fails to demonstrate adequate financial resources to complete the project; b. the project plans, specifications, and agency approvals are incomplete ; c. the proposed project would result in a violation of an applicable ordinance, regulation, or law; d. the proposed project would interfere with or is incompatible with the safety, security, maintenance, or operation of the airport; e. the proposed project is inconsistent with the Airport Master Plan; f. the proposed project is inconsistent with the terms of the lease, zoning ordinances, or the City's Comprehensive Plan ; g. the project plans do not make sufficient provision for drainage, aircraft, vehicle, and equipment parking, or for snow storage; or h. the proposed project does not conform to generally recognized engineering principles or applicable fire or building codes. 6. DEMOLITION : Prior to any demolition of any structure(s) on the Premises, Lessee will deliver to City a written scope of work that, at a minimum, lists the structure(s) that are to be demolished and the timeframe for demolition and removal of the debris from the Airport. City will review Lessee 's scope for demolition and issue Lessee written approval for the work to be done. LEASE OF AIRPORT LANDS Page 27 of 31 131 7. BUILDING SETBACK: No building or other permanent structure may be constructed or placed within twenty feet of any lot of the Premises without City's prior written approva l. In addition, no building or other permanent structure may be constructed or placed within twenty feet of any boundary line of the Premises which fronts on a landing strip, taxiway, or apron. 8. AS-BUILT DRAWINGS: Within sixty days after completion of construction or placement of improvements upon the Premises, the Lessee will deliver to the City a copy of an as-built drawing, acceptable to the City, showing the location and dimensions of the improvements, giving distances to all Premises' boundaries. If the Lessee constructs underground improvements, the Lessee will appropriately mark the surface of the land with adequate surface markers. The type , quantity, and distance between such markers will be subject to approval of the City. 9. AIRPORT SECURITY FENCING : If any construction by the Lessee requires a realignment or alteration of an existing security fence on the Premises or boundary of the Premises, the Lessee agrees to realign or alter the fence in a manner approved in writing by the Airport Manager. Anytime the fence must be breached to allow the Lessee to complete improvement construction or fence modifications, the Lessee shall, at the Lessee 's sole expense place temporary barriers to maintain the security of the Airport , as determined by the Airport Manager. If damage occurs to a security fence on the Premises or boundary of the Premises in connection with the Lessee 's use or occupation of the Premises, the Lessee shall promptly repair the fence to the satisfaction of the Airport Manager. 10. DAMAGE TO IMPROVEMENTS: If Lessee 's improvements on the Premises are damaged or destroyed, Lessee will cause the improvements to be repaired or rebuilt , and restored to normal function within two years following the damage or destruction . If the Lessee fails to timely rebuild or restore the improvements , the City may, at its sole discretion , either reduce the term of this Lease commensurate with the estimated value of the Lessee 's remaining , fully functional improvements on the Premises , or cancel this Lease . 11. DAMAGE NEAR EXPIRATION: If Lessee 's improvements are damaged to the extent that more than 50 % of the space is unusable and the damage occurs within five years of the expiration of the term of this Lease , Lessee may remove the damaged improvements, restore the Premises and terminate this Lease. C . PERFORMANCE BOND (Optional): Prior to beginning the construction of permanent improvements required under (1) of this Article , the Lessee shall submit to the City a performance bond , deposit, or other security in the amount of$ . The form of the bond or other security shall be subject to the City's approval. LEASE OF AIRPORT LANDS Page 28 of 31 132 D . SURRENDER ON TERMINATION: Lessee shall , on the last day of the term of this Lease or upon any earlier termination of this Lease , surrender and deliver upon the premises into the possession and use of City without fraud or delay in good order, condition , and repair, except for reasonable wear and tear since the last necessary repair, replacemen t, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. Upon the end of the term of this Lease, including any extension or renewal , or any earlier termination thereof, title to the buildings , improvements and building equipment shall automatically vest in City without requirement of any deed , conveyance, or bill of sale thereon. However, if City should require any such document in confirmat ion hereof, Lessee shall execute , acknowledge , and deliver the same and shall pay any charge, tax, and fee asserted or imposed by any and all governmental unites in connection herewith. E. NOTICE OF CONSTRUCTION : The Lessee agrees to notify the City in writing three days prior to commencing any construction project valued in excess of $1,000.00 on the Premises. The Lessee agrees to assist in the posting of a notice of non-responsibility and maintenance of the notice on the Premises during construction . Lessee agrees that in the event the Lessee fails to notify the City as required by this Provision (f), the Lessee shall indemnify the City against any materialmen's liens as defined in AS 34.35.050 which arise as a result of construction on the premises . IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below . LESSEE : By :------------ Lessee Name Its : Director LEASE OF AIRPORT LANDS Date LESSOR: City of Kenai Paul Ostrander Its : City Manager Date Page 29 of 31 133 ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 20_, Name: Lessee Name, Director, of , 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 on behalf of said corporation. Notary Public for Alaska My Commission Expires : ______ _ STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 20_, Paul Ostrander, City Manager of the City of Kenai , Alaska , 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 on behalf of said City. Notary Public for Alaska My Commission Expires: ______ _ ATIEST: Jam ie Heinz, City Clerk SEAL: LEASE OF AIRPORT LANDS Page 30 of 31 134 Approved as to Lease Form: Scott Bloom, City Attorney AFTER RECORDING RETURN TO: City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 LEASE OF AIRPORT LANDS Page 31 of 31 135 'Vttf~ «1/tli a Pa.f~ Ct'tj «1/tli a rat~'' 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax : (907) 283-3014 www. kenai. city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council '<''"' Scott Bloom > February 1, 2018 Resolution No. 2018-10 -Standard Lease Form Resolution No. 2018-10 approves a new standard lease form for airport reserve lands that is consistent with recent code amendments. It is requested that action be postponed until the second meeting in February to allow the Airport Commission time to re view the new proposed lease form . This memorandum addresses the material changes in the lease forms. To illustrate some of the changes, a Lease Form used in 2016 is provided as an attachment in track change format. It is important to note that the 2016 lease was approved by ordinance , as it, and all recent leases have deviated from the previous approved lease form, which has not been used in years. In the attached lease form: • The Definitions section is amended to acknowledge the new codified definitions in KMC, and amend lease definitions to mirror the definitions provided for in code. • Article I has no material c hanges • Article II is amended to eliminate the requirement that a business can only be closed for 30 days in a 12 month time period as this requirement is not enforced and is unnecessary. • Article Ill has no material changes • Article IV is amended to reflect that rent will be adjusted annually as provided in the KMC 12.10.090 (by Anchorage Consumer Price Index). It also inserts into the lease form rent credits , whic h have been included in recent lease , but were never a part of the approved lease form. Rather than restate what is in code, the new lease form references the lease credit provision of code (KMC 21.10.100). References to reimbursement for City constructed improvements are deleted as City constructed improvements were not carried forward in the code changes from Ordinance No. 2998-2018, and while not disallowed , would require a separate agreement. 136 Page 2 of 2 Standard Lease Form • Article V is amended to reflect the new provisions for adjusting and calculating rent as provided for in KMC 21 .10.090 . This includes both annual adjustments (CPI) and other adjustments based on a ten year cyclical market analysis or appraisal based on changing market conditions. Again references to City owned improvements are removed. • Article VI is amended as it relates to the consent by the City to third party security interests. There is little if any benefit to the City in consenting to a security interests except that it benefits the City's tenants. The legal department is reluctant to make assurances and commitments to holders of security interests any more than completely necessary. The terms included in the prior lease form can be negotiated if necessary, but recent experience has shown that holders of security interests can be satisfied and conduct business with airport lessees without the City having to make the level of commitment that exists in the prior lease form. • Article VII through X remain XI remain largely unchanged. • Article XII primarily deviates from the old form lease in Section K. Improvements previously were owned by the City at the end of the lease. Consistent with the new code amendments and recent leases, ownership of improvements now remains with the lessees . The lease form expands on the basic codified framework in a complimentary manner. It is not shown in track changes in the attachment becomes it has previously been incorporated in recent leases. • Article XIII through XIV remain materially unchanged. • Article XV, which relates to City constructed improvements is deleted in its entirety as City constructed improvements have not been carried forward in the new code amendments. Your consideration is appreciated . 137 KENAI MUNICIPAL AIRPORT LEASE OF AIRPORT RESERVE LANDS THIS LEASE AGREEMENT entered into this day of , ~.f..Q_. by and between the CITY OF KENAI, 210 Fidalgo Avenue , Kenai , Alaska 99611- 7794, and whose address is ---------------("Lessee"). DEFINITIONS For the purposes of this Lease the following terms are defined in KMC 21 .10 . 020 (effective as of the date of execution of the lease) as follows: 1. Airport-the Kenai Municipal Airport, including all the runways , taxiways, aprons, water lanes, water taxiways, and all City-owned real estate located within the boundaries of the Airport Reserve as defined in KMC Chapter 21.05, Airport Administration and Operation. 2. Airport Manager -the official to whom the City Manager of the City has delegated the authority and responsibility of managing and directing the activities of the Airport. "Airport Manager" includes that person 's authorized representative. 3. City -the City of Kenai , Alaska, a home rule municipal corporation of Alaskaits elected officials . officers . employees or agents . 4 . City Manager -the official to whom the Kenai City Council has delegated the responsibility of managing and directing all activities of the City. 5. Contamination -the unpermitted presence of any released Hazardous Substance. 6. Environmental Law -any applicable federal , state, or local statute , law, regulation , ordinance, code, permit , order, decision , judgment of any governmental entity relating to environmental matters, including littering and dumping . 7. FAA -the abbreviation for the Federal Aviation Administration. 8. Hazardous Substance -any substance that is defined under an Environmental Law as hazardous waste, Hazardous Substance , hazardous material , toxic, pollutant, contaminant, petroleum , petroleum product, or oil. 9. KMC -the abbreviation for the Kenai Municipal Code . LEASE OF AIRPORT LANDS Page 1 of 33 138 ~ill_ -14-.lL _ _permanent Improvement -a fixed addition or change to land that is .not temporary or portable, including a building , building addition, gravel fill , pavingpavement , retaining wall, storage tank,-aM well. and remediation of contamination for what the lessee is not responsible.,. ARTICLE I PREMISES LEASED A PREMISES: In consideration of Lessee 's payment of the rents and performance of all the covenants of this Lease , the City leases to the Lessee , and the Lessee leases from the City, the following described property ("Premises") in the Kena i Recording District, Third Judicial District, State of Alaska and lo cated on the Airport; to wit: Description of Lease Property B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific warranties , expressed or implied, concerning the condition of the Premises including, survey, soils, wetlands, access, and suitability or profitability for any use including those authorized by this Lease, its environmental condition , or the presence or absence of Hazardous Substances in , on, and under the surface. The Lessee takes the Premises on an "as is " basis and without warranty, subject to any and all of the covenants, terms , and conditions affecting the City's title to the Premises. A AUTHORIZED USES: ARTICLE II RIGHTS AND USES 1. USE OF PREMISES: The City authorizes the Lessee to use the Premises for the following purposes only: List authorized uses and limitations 2. CONTINUOUS OPERATIONS : Unless the City approves otherwise in writing, the Lessee will operate its business on the Premises on a continuous basis, uninterrupted by any period of closure over 15 consecutive days.:. or 30 aggregate days within any 12 month period of the term of this lease . The Lessee will give the City written notice before closing the Lessee 's business on the Premises for more than 10 consecutive days. The noti ce must state the reason for the closure and the date on which the Lessee will re-open for business. This provision does not apply to any period during which the Lessee is unable to operate its business as a result of an act or directive of the City, or as a result of a closure of the Airport or loss of the Lessee 's buildings on the Premises due to fire or natural disaster. LEASE OF AIRPORT LANDS Page 2 of 33 139 B . RIGHTS RESERVED TO THE CITY: 1. RIGHT TO GRANT TO OTHERS: The City reserves the rig ht to grant to others any rights and privileges not specifically granted to the Lessee on an exc lusi ve basis. The rights and privileges granted to the Lessee in th is Lease are the only rights and privileges granted to the Lessee by this Lease. 2. EASEMENTS : The City reserves the right to make grants to third parties or reserve to the City easements or rights of way through, on, or above the Premises . The City will not grant or reserve any easement or right of way that unreasonably interferes with the Lessee's authorized uses of the Premises. 3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of ing ress to and egress from the Premises and the right to enter any part of the Premises, including buildings , for the purpose of inspection or environmental test ing at any t ime . Except in the case of an emergency, all inspections and environmental testing will be coordinated with the Lessee to minimize interferen ce with the Lessee 's authorized uses of the Premises . 4. RIGHT OF FLIGHT : There is hereby reserved to the City, its successors and assigns , for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises . This public right of flight will include the right to cause in the airspace any noise inherent in the operation of any aircraft used for navigation or flight through the airspace or landing at , taking off from, or operation on the Airport . C. PROHIBITED USES : Unless specifically authorized by th is Lease or an amendment to this Lease , the following are prohibited : 1. Any use of the Premises other than those authorized in th is Lease . 2. Any use of the Premise s that is in violation of a City Ordinan ce or an A irp ort regulation . 3. The outside storage on the Premises of junk, salvage aircraft or veh icle parts , non-operational support equipment, unused or damaged equipment o r material, or solid waste or debris unless allowed pursuant to a conditional use permit under KMC 14.20. 4. The disposal on the Premises or the Airport of waste materials generated by the Lessee, including any Ha zardo us Substance , slash , overburden , and const ruction waste. 5. The stripping , was ting , or removing any material from the Premises without the prior written approval of the City. LEASE OF AIRPORT LANDS Page 3 of 33 140 6. Erecting structures or allowing growth of natural objects that would constitute an obstruction to air navigation, or allowing any activity on the Premises that would interfere with or be a hazard to the flight of aircraft, or interfere with air navigation or communication facilities, serving the Airport . 7. Any use or activity that is prohibited by applicable law or regulation . ARTICLE Ill TERM & HOLDOVER A. TERM: The initial term of this Lease is for years , from the 1st day of _______ ,~to the 30th day of , gQ_. B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after the expiration, cancellation or termination of this Lease, the holding over will not operate as an extension of the term of this Lease, but only creates a month-to-month tenancy, regardless of any rent payments accepted by the City. The Lessee's obligations for performance under this Lease will continue during the month-to-month tenancy. The City or Lessee may terminate the Lessee's holdover with ten days' advance written notice. ARTICLE IV RENTS AND FEES A. RENT: The initial rent for the Premises is $ .00 per year, as established by the City pursuant KMC 21 .10.090 and as subject to annual adjustment on July 1 of each year under Article V of this Lease, plus applicable sales tax. The rent shall be payable annually in advance of the first day of each year of the term of this Lease. All payments required by this Lease must be made in U.S. dollars. If the annual rent exceeds $2,400, the Lessee may, upon written notice to the City, choose to pay the rent in equal monthly installments, payable in advance on or before the anniversary date of the term of this Lease and thereafter at monthly intervals . No conversion of the payment schedule from annual to monthly shall result in the City rece iving less rent than it would have received had the conversion not taken place. 1. Rent Credit: A rent credit may be applied for a maximum of five years of lease payments as provided in KMC 21.10.100 (as effective at the time th is lease is executed). The credit may only include tho value of site preparation work on the leased premises to include clearing and grubbing , unclassified excavation, classified fill and back fill , a crushed aggregate base course and utility extensions . For the credit to be applied, all site preparation must be completed . An engineer's estimate of value of the site ·.-..ork must be provided to the City and accepted prior to work being done. An engineer's as built drawing must be provided to the City and accepted at the completion of the site •,vork . Once the work is completed and value determined , a credit will be applied to the lease payments , prorated as necessary for the successive five years. B. RENT PRO RA TED : Rental for any period less than one year shall be prorated on the basis of the rent payable under this Lease in last full year previous to the prorating. LEASE OF AIRPORT LANDS Page 4 of 33 141 C . ADDITIONAL RENT: In addition to the rent specified in (a) of this Article , Lessee agrees to pay to the appropriate parties all levies, assessments, and charges as follows: 1. Taxes pertaining to the leasehold interest of the Lessee. 2. Sales tax now enforced or levied in the future, computed upon rent payable in monthly installments whether the Lessee pays rent under this Lease on a monthly or annual basis . 3. All taxes and assessments levied in the future by the City, as if Lessee was the legal owner of record of the Premises. 4. Reimbursement for City constructed impro11ements under Article XV. D. PAYMENTS: The Lessee shall make checks, bank drafts, or postal money orders payable to the City of Kenai and deliver payments to City of Kena i, Finance Department, 2 10 Fidalgo Avenue, Suitg 200, Kenai, Alaska 99611-7794 or any other address the City may designate in writing to the Lessee . E. INTEREST: Beginning the day after payment is due, all unpaid rents , charges , and fees required under this Lease will accrue interest at the rate of eight percent (8 .0 %) per annum . Interest on disputed amounts will not be charged to the Lessee if the d ispute is resolved in the Lessee's favor. F. LATE PAYMENT PENALTY: In addition to any interest payable unde r Provision (E) of this Article , each time the Lessee fails to pay any rent or fee by the date required i n this Lease, the City will charge , and the Lessee shall pay, an administrative penalty of ten percent (10.0 %) of the amount due and unpaid . G . COURTESY BILLINGS: Lessee acknowledges that any billing statement issued by the City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when due , regardless of whether or not the Lessee receives a billing statement from the City . H. LIEN AGAINST LESSEE: Any rent, charge, fee, or other consideration which is due and unpaid at the expiration, termination , or cancellation of this Lease w ill be a lien against the Lessee's property, real or personal. I. PAYMENT OF CITY'S COSTS: The Lessee will pay all reasonable actual e xpenses , costs, and attorney fees City may incur, with or without formal action, to enforce , defend , or protect this Lease or City's rights under this Lease, including any ex pense incurred with respe ct to environmental compliance, bankruptcy or any proceeding that involves the Lessee, the Lease, the Premises, or improvements or personal property on the Premises. The Lessee wi ll make payment within 30 days of the date of each notice from C ity of any amounts payab le under this provision . LEASE OF AIRPORT LANDS Page 5 of 3 3 142 J. PAYMENT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable fee for any special services or facilities the City agrees to perform, which the City is not ot herwise obligated by this Lease to provide and wh ich the Lessee requests from the City in writing . ARTICLE V ADJUSTMENT OF RENT AND FEES A. RENT OR FEE ADJUSTMENT: /\t intervals of approximately five years, the City shall, in its sole discretion, adjust the rent or a fee payable The City sha ll adjust rent or fees payab le by the Lessee under Article IV or other provision.§ of th is lease on July 1 of each year of the lease as proved in KMC 21 .10.09GO (as effective at t he time t his lease is executed) and shall make any other adjustments to rent as allowed for in KMC 21 .10.090. The amount to •.vhich the City increases or decreases any rent or fee shall be established in accordance with KMC 21 .10 .100 and 21 .10.160 . Any rent change by the City shall be based on the fair market value of 1. The Premises in its condition on tho term beginning date stated in Article Ill; fHus 2. /\ny improvements made by the City subsequent to that date , the cost of which is not reimbursed by the Lessee. No rent or fee change shall be effective until 30 days after the date of the City's written notice to the Lessee . If the Lessee believes that any changed rent exceeds the fair market rent for the Premises, the Lessee may appeal tA&-§...rent change to the City under as provided in KMC 21 .1 0 .09046G. B . CITY CONSTRUCTED IMPROVEME~JTS: Improvements constructed by the City on, or in connection with, the Premises sha ll not be considered a part of the Premises for the purpose of establishing the rent under (a) of this Artic le, if the Lessee, as a condition of this lease , reimburses the City for the City's construction costs pursuant to KMC 21.10 .110. ARTICLE V I ASSIG N MENT & SUB L ET TING A. INVALID WITHOUT CITY'S CONSENT: The Lessee may not assign, sublet, or grant a security interest in , by grant or implication, the whole or any part of this Lease , the Premises, or any improvement on the Premises without the written consent of the City. Any proposed ass ignment, sublease, or security interest must be written and must be submitted to the City bearing the original, notarized s ignature of all parties . The Lessee may submit unsigned draft documents for the City's conceptual review. However, the City's conceptual approval of a draft document may not be construed as the City's consent to any ass ignment, sublease , or security interest. All provisions in this Lease ex tend to and bind the assignees and sub:lessees of the Lessee . LEASE OF AIRPORT LANDS Page 6 of 33 143 B. NO WAIVER OF CONSENT: The City 's consent to one assignment, sublease, or security interest will not waive the requirement for the Lessee to obtain the City 's consent to any other assignment, sublease, or security interest. C. ASSIGNEE I LESSEE OBLIGATIONS : An assignment must include a provision stating that the assignee accepts responsibility for all of the assignor's (Lessee 's) obligations under this Lease, including environmental liability and responsibility. However, unless the City specifically releases the Lessee in writing, the City may hold the Lessee responsible for performing any obligation under this lease which an assignee fails to perform. D. OCCUPANCY BEFORE CITY CONSENT: An assignee or sub:lessee may not occupy the Premises before the City consents to the assignment or sublease in writing . E. CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an assignment or a sublease, the terms of this Lease control. F. LESSEE NOT RELIEVED OF OBLIGATIONS: The City's consent to any sublease does not relieve or otherwise alter the Lessee 's obligations under this Lease. G. SECURITY ASSIGNMENTS AND FINANCING: 1. Subject to the requirements of (A) of this Article VI , the Lessee may assign a security interest in this Lease. The security interest may be in the form of a mortgage, deed of trust, assignment or other appropriate instrument, provided a . the security interest pertains only to the Lessee 's leasehold interest; b. the security interest does not pertain to or create any interest in City's title to the Premises; and c. the documents providing for the security interest are acceptable to the City. 2. If the assignment of a security interest to which the City has consented shall be held by an established lending or financial institution, including a bank, an established insurance company and qualified pension or profit sharing trust, and the lending institution acquires the Lessee's interest in this Lease as a result of a foreclosure action or other remedy of the secured party, or through any transfer in lieu of foreclosure, or through settlement of or arising out of any pending or contemplated foreclosure action, the lending institution may transfer its interest in this Lease to a nominee or a wholly owned subsidiary corporation with the prior written consent of the City, provided , the transferee assumes all of the covenants and conditions required to be performed by the Lessee (including payment of any monies owed by Lessee to the City under the lease). LEASE OF AIRPORT LANDS Page 7 of 33 144 In the event of such a transfer, the lending institution shall be relieved of any further liability under this Lessee. 3. A holder of a security interest in this Lease consented to by the City shall have, and be subrogated to , any and all rights of the Lessee with respect to the curing of any default of th is Lease by Lessee. 4. If, before any defau lt has occurred in the Lease, the holder of a security interest in this Lease consented to by the City g ives the City a written notice of the holder's post office address, the City shall thereafter a . by regular U.S. mail, se nd to the holder a copy of each notice of default at the same time as the City gi 11es notice of default to the Lessee; and b. not accept any surrender or enter into any mod ification of this Lease without the prior written consent of the holder, which the holder shall not unreasonably delay or withho ld . 5. The City w ill enter into a ne•N lease of the Premises with the ho lder of a security interest consented to by the City, if the City terminates this Lease prior to its normal expi ration due to a default by the Lessee. The AO'.\' lease shall be for the remainder of the term of th is Lease and s hall be effective as of the termination of th is Lease . The City's grant of the ne'N lease shall be subject to the following conditions : a. The nm.\' lease shall be effective on the date this Lease is terminated; b. The ne1.v lease shall be for the same rent, additional rent, and covenants as this Lease; e. By no later than the twentieth day following the termination of this Lease, the security ho lder must submit a 1.vritten request to the City for the new lease, together with payment of all rent, additiona l rent and other sums then due to the City under this Lease. d. The security holder shall pay to the City, at the time of the execution and delivery of such ne1.v lease any and all sums due thereunder in add ition to those which would at the time of the execution and delivery thereof be due under this Lease but for such term ination , and in addition thereto , any reasonable expenses, including legal and attorneys ' fees, to 1.vh ich t he City sha ll have been subjected by reason of such default. e . The security ho lder sha ll, on or before the execution of the new lease, perform all t he other obligations of the Lessee under this Lease to the LEASE OF AIRPORT LANDS Page 8 of 33 145 extent the Lessee failed to perform them prior to the termination of this Lease . 91. A holder of a security interest consented to by the City that takes possession of this Lease or enters into a new lease with the City shall not be released from the obligations and liabilities of this Lease or the new lease unless the holder assigns its leasehold estate to an assignee who is financially capable and otherwise qualified to undertake to perform and observe the conditions of this Lease or the new lease and the City consents to the assignment. The City's consent will not be unreasonably withheld. If the security holder asserts that the City is unreasonably withholding its consent to a proposed assignment, the dispute shall be resolved by arbitration. ARTICLE VII MAINTENANCE, SNOW REMOVAL & UTILITIES A. MAINTENANCE : 1. At no cost to the City, the Lessee will keep the Premises and all improvements on the Premises clean, neat and presentable, as reasonably determined by the City. 2. At no cost to the City, the Lessee will provide for all maintenance and services at the Premises as may be necessary to facilitate the Lessee's compliance with this Lease and the Lessee 's use of the Premises. 3. The Lessee shall comply with all regulations or ordinances of the City that are promulgated for the promotion of sanitation. At no cost to the City, the Lessee shall keep the Premises in a clean and sanitary condition , and control activities on the Premises to prevent the pollution of water. 4 . The Lessee agrees to comply with all decisions and directions of the City's Airport Manager regarding maintenance and operation of the Airport, and the use of the Airport by the Lessee. B. SNOW REMOVAL: 1. At no cost to the City, the Lessee is responsible for snow removal on the Premises. The Lessee shall dispose of snow in an off-Premises location approved in writing by the City or provide suitable snow storage within the boundaries of the Premises in accordance with all applicable federal and state laws. At the request of the Airport Manager, the Lessee shall submit a snow removal plan for the Premises to the Manager for review. Upon approval of the Lessee's plan by the Airport Manager, the Lessee shall conduct all snow removal operations on the Premises in accordance with the approved plan. LEASE OF AIRPORT LANDS Page 9 of 33 146 2. Lessee shall not deposit snow on an apron , taxiway, safety area , or other aircraft-maneuvering surface provided for common use by others w ithout the prior written of the Airport Manager. 3. Lessee agrees to not allow an accumulation of snow on the Premises that would cause interference with adjoining leaseholders or other users of the Airport. C. UTILITIES: Unless specifically provided otherwise in this Lease, the Lessee shall , at no cost to the City, provide for all utilities at the Premises necessary to facilitate the Lessee's use of the Premises. ARTICLE VIII OPERATION S A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee, its employees , guests , contractors, sub:lessees , and vendors that perform any activity or function authorized under this Lease shall do so in a manner that ensures the safety of people , the protection of public health and the environment, and the safety and integrity of the Airport and the Premises. B. LESSEE'S CONTROL AND RESPONSIBILITY: 1. The Lessee will assume full control and sole responsibility as between Lessee and City for the activities of the Lessee, the Lessee's personnel and employees , and anyone else acting by, on behalf of, or under the authority of the Lessee on the Airport, including the Premises. 2. The Lessee will immediately notify the City of any condition , problem , malfunction or other occurrence that threatens the safety of people or t he Airport, harm to public health or the environment, or the safety or integrity of the Premises . C. RADIO INTERFERENCE: The Lessee will discontinue the use of any machine or device that interferes with any government-operated transmitter, receiver , or navigation aid until t he cause of the interference is eliminated. D. WILDLIFE: The Lessee acknowledges that a concentration of birds or other wildlife on an airport constitutes a significant hazard to aircraft operations. The Lessee agrees to keep the Premises clean of fish slime, fish waste , or any other material that might attract birds or other wild life . The Lessee accepts full responsibility to maintain the Premises , control operations, and take all reasonable measures to prevent a concentration of birds or other wildlife on the Premises. E . PARKING : The Lessee will provide adequate vehicle, equipment, and aircraft parking LEASE OF AIRPORT LANDS Page 10 of 33 147 space on the Premises for Lessee 's business or activities, or confine park ing to such other places on the Airport as may be approved or designated in writing by the Airport Manager. ARTICLE IX ENVIRONMENTAL PROVISIONS A HAZARDOUS SUBSTANCE: 1. The lessee will conduct it business and/or operation on the Prem ises in compliance with all environmental laws and permits. If hazardous substances are handled on the Premises , the Lessee agrees to have properly trained personnel and adequate procedures for safe ly storing, dispensing , and otherwise handling Hazardous Substances in acco rdance with all applicable federal, state and local laws . 2. Lessee will promptly give the City notice of proceeding to abate or settle matters relating to the presence of a Hazardous Substance on the Premises or from Lessee 's operations on the Airport. The Lessee will allow the City to part ic ipa te in any such proceedings. B. ENVIRONMENTAL INDEMNIFICATION: If Contamination of the Premises or other property by a Hazardous Substance occurs from the Lessee's operations on the Premises the Lessee will indemnify, defend, and hold the City harmless from any and all claims, judgments, damages , penalties, fines, costs , liabilities, or losses , including , but not limited to, sums paid in settlement of claims, attorney's fees, consultant fees, and expert fees, which arise during or after the term of this Lease as a result of such Contamination. This indemnification of the City by Lessee includes, but is not limited to , costs incurred in connection with any investigation of site conditions or any cleanup, remediation , removal, monitoring , or restorat ive work required by any federal , state, or local governmental agency because of a Hazardous Substance being present in the soil or groundwate r or under the Premises or other properties affected by the Contamination . C. REMEDIATION : 1. In the event of a Hazardous Substance spill on the Premises, the Lessee will immediately notify the City and the Alaska Department of Environmental Conversation and act, promptly, at its sole expense, to contain the sp ill, repair, a ny damage, absorb and clean up the spill area, and resto re the Premises to a condition satisfactory to the City and otherwise comply with the applicable portions of any environmental law. 2. In addition to any notices required by this Lease, the Lessee will immediately notify and copy the City in writing of any of the following : LEASE OF AIRPORT LANDS Page 11 of 33 148 a. Any permit, enforcement, clean up, lien , removal or other governmental or regulatory action instituted , completed, or threatened pursuant to an Environmental Law. b. Any claim made or threatened by any person against the Lessee or arising from the Lessee 's operations authorized by this Lease, relating to damage, contribution , compensation, loss or injury resulting , from , or claimed to result from any Hazardous Substances in , on , or under the Airport; or c. Any report made by , or on behalf of, the Lessee to any environmental agency aris ing out of or in connection with any Hazardous Substances in , on, or removed from the Premises, including any complaints, notices, warnings , or asserted violations. 3. Remediation and restoration of the contaminated area must meet all applicable state and federal regulations and must meet the requirements of all governing regulatory authorities. D. ENVIRONMENTAL AUDIT: The Lessee will provide the City with all investigative data , test results, reports, and any other information gathered or analyzed as part of or in relation to any Environmental Assessment, characterization or audit on the Premises or the Airport that Lessee performs or causes to be performed after the starting date of this Lease . The Lessee will submit the data , result , report or information to the City within 60 days following the date on which it becomes available to the Lessee . E. RELEASE OF LESSEE : The City releases the Lessee from liability to the City for Contamination and the presence of Hazardous Substances that existed prior to the commencement date of this lease unless caused or materially contributed to by the Lessee. F. SURVIVAL OF OBLIGATIONS: The obligations and duties of the City and Lessee under Article IX of this lease shall survive the cancellation , termination or e xpiration of this lease. A. INDEMNIFICATION: ARTICLE X I ND EM N IFICATION & INSU R ANCE 1. The Lessee will indemnify, save harmless, and defend the City, its officers , agents , and employees from and against any and all liabilities, losses , suits , administrative actions , claims , awards, judgments , fines, demands , damages, injunctive relief or penalties of any nature or kind to the full extent of the loss or obligation for property damage , personal injury, death , violation of any regulation or grant agreement, or any other injury or harm resulting from or arising out of any acts or commission of or omission by the Lessee, ru&Lessee 's LEASE OF AIRPORT LANDS Page 12 of 33 149 agents, employees, customers, invitees or arising out of the Lessee 's occupation or use of the premises demised or privileges granted , and to pay all costs connected therewith. This indemnification of the City by the Lessee shall include sums paid in settlement of claims, attorney fees , consultant fees, expert fees, or other costs and expenses, directly or indirectly arising from, connected to or on account of this Lease as it relates to the Lessee, the Lessee 's activities at or relating to the Airport, or any act or omission by the Lessee, or by any of 46-Lessee's officers, employees, agents, contractors or sub:lessees . These indemnity obligations are in addition to, and not limited by, the Lessee's obligation to provide insurance, and shall survive the expiration or earlier termination of this Lease . 2. The Lessee shall give the City prompt notice of any suit, claim , action or other matter affecting the City to which Paragraph 1, above, may apply, together with a copy of any letter by an attorney on behalf of a complainant, any complaint filed in court, and any notice or complaint by any regulatory agency. The City shall have the right, at its option , to participate cooperatively in the defense of, and settlement negotiations regarding , any such matter, without re lieving the Lessee of any of its obligations under this provision. 3. As to any amount paid to others for personal injury or property damage with respect to which an act or omission of the City is a legal cause, notwithstanding Paragraph 1 of this section, the Lessee and the City shall reimburse each other according to the principles of comparative fault. If liability to a third party is subject to apportionment according to comparative fault under th is provision, the Lessee and the City shall seek in good faith to achieve non-judicial agreement as to apportionment of fault as between themselves. This apportionment of liability between the City and the Lessee shall not be construed to affect the rights of any person who is not a party to this Lease . B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force during the term of this Lease , insurance of the type and limits required by this provision. Where specific limits are set, they will be the minimum acceptable limits. If the Lessee 's policy contains higher limits, the City will be entitled to coverage to the extent of the higher limits . At the time insurance in obtained by the Lessee, all insurance shall be by a company/corporation rated "A-" or better by A.M. Best. The following policies of insurance are required with the following minimum amounts: 1. Commercial General Liability, including Premises, all operations, property damage, products and completed operations, and personal injury and death , broad-form contractual, with a per-occurrence l imit of not less than $1,000 ,000 combined single limit. If this lease authorizes the Lessee to engage in the sa le or the commercial dispensing or storage of aviation fuel , the policy must not exclude of tRe-Lessee 's fuel handling activities. This policy must name the City as an additional insured . LEASE OF AIRPORT LANDS Page 13 of 33 150 2. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non-owned motor vehicles used by the Lessee. 3. Workers Compensation Insurance. The Lessee will provide and mainta in, for all employees, coverage as required under AS 23 .30 .045 , and, where applicable, any other statutory obligations. The policy must waive subrogation against the City. 4 . The Lessee will provide the City with proof of insurance coverage in the form of an insurance policy or a certificate of insurance , together with proof that the premiums have been paid, showing the types and monetary lim its of coverage secured. All insurance required by this provision must provide that the City be notified at least 30 days prior to any termination, cancellation , or material change in the insurance coverage . 5. If the Lessee's insurance coverage lapses or is canceled , Lessee will immediately, upon written notice by the City, halt all operations on the Airport , including the Prem ises . The Lessee will not resume operations until the City receives evidence that the Lessee has obtained current insurance coverage meeting the requirements of this Lease. 6 . The City may, at intervals of not less than five years from the beginning date of the term of this Lease and upon written notice to Lessee , revise the insurance requirements required under this Lease. City's determination to revise the insurance requirements will be based on the risks relative to the Lessee's operations, any insurance guidelines adopted by the City, and any applicable law. 7. If the Lessee subleases all or any portion of the Premises under the provisions of this Lease, the Lessee will require the sublessee to provide to the insurance coverage required of the Lessee under this Article X. ARTICLE XI LAWS & TAXES A COMPLIANCE WITH LAW : Lessee shall comply with all applicable laws , ordinances, and regulations of public authorities now or hereafter in any manner affecting the Airport, the Premises or the sidewalks , alleys , streets , and ways adjacent to the Premises , or any buildings, structures , fixtures and improvements or the use thereof, whether or not any such laws, ordinances , and regulations which may be hereafter enacted involve a change of policy on the part of the governmental body enacting the same. Lessee agrees to hold City financially harmless : 1. From the consequences of any violation of such laws, ordinances, and/or regulations ; and LEASE OF AIRPORT LANDS Page 14 of 33 151 2. From all claims for damages on account of injuries, death, or property damage resulting from such violation. B. UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use, occupation, business, or trade to be conducted on the Premises contrary to any law , ordinance, or regulation , including zoning ordinances, rules and regulations. C. LICENSES AND PERMITS: The Lessee will obtain all necessary licenses and permits, pay all taxes and special assessments lawfully imposed upon the Premises, and pay other fees and charges assessed under applicable law. Nothing in this Lease prevents the Lessee from challenging any taxes or special assessments to the appropriate authority. D. LITIGATION: The Kenai municipal code, including regulations promulgated thereunder, and the laws of the State of Alaska will govern in any dispute between the Lessee and City. If a dispute continues after exhaustion of administration remedies , any lawsuit must be brought in the courts of the State of Alaska, in Kenai, Alaska. E. LESSEE TO PAY TAXES : Lessee shall pay all lawful taxes and assessments which, during the term of this Lease may become a lien upon or which may be levied by the State, Borough , City, or any other tax levying body, upon any taxable possessory right which Lessee may have in or to the Premises or improvements on the Premises by reason of its use or occupancy or the terms of this Lease provided, however, that nothing in this provision shall prevent Lessee from contesting any increase in a tax or assessment under any applicable law, ordinance , or regulation . F. PARTIAL INVALIDITY: If any term, prov1s1on, condition, or part of this Lease is declared by a court of competent jurisdiction to be invalid or unconstitutional, the remaining terms, provisions, conditions, or parts shall continue in full force and effect as though the declaration had not been made. ARTICLE XII LEASE TERMINATION A. CANCELLATION : The City may, after 30 days' written notice to the Lessee, cancel this Lease and recover possession of the Premises if any of the following violations occur, unless the violation is cured within the 30 days: 1. The Lessee fails to pay when due the rents , additional rents, charges, or other sums specified in this Lease , including any increases made under this Lease . 2. The Lessee's check for payment of any sum due under this Lease is returned for insufficient funds. 3. The Lessee uses or authorizes the use of the Premises for any purpose not authorized by this Lease. LEASE OF AIRPORT LANDS Page 15 of 33 152 4 . The Lessee fails to fully perform and comply with any provision in this Lease . 4.-5. The Lessee violates a provision of Kenai Municipal Code applicable to this Lessee . ~_6. __ The court enters a judgment of insolvency against the Lessee. ~_7. __ A trustee or receiver is appointed for the Lessee's assets in a proceeding brought by or against the Lessee , or the Lessee files a voluntary petition in bankruptcy. +:_8. __ Failure by the Lessee to comply with any land development or permanent improvement construction required by this Lease . B. ENTRY AND RE-ENTRY: In the event that the Lease should be termi na ted in accordance with this Article XII, or by summary proceedings or otherwise, or upon the Lessee 's abandonment of the Premises or a portion of the Premises, the City or its agen ts, servants , or representatives may, immediately or any time thereafter, re-enter, and resume possession of the Premises or portion thereof, and remove all persons and property therefrom, without being liable for any damages therefore . No re-entry by the City shall be deemed an acceptance of a surrender of the Lease. C. CONTINUING OBLIGATIONS UNTIL PREMISES VACATED: The Lessee will continue to pay City rent after the expiration , termination, or cancellation of this lease and to abide by the lease obligations , including providing proof of insurance coverage, through the date Lessee relinquishes possession of and comp letely vacates the Premises . City will consider the Premises completely vacated if the Lessee has 1. Remediated any environmental contamination for which the Lessee is respon sible; 2. Restored the Premises to a neat and clean physi ca l co ndi tion acceptable to the City. D. REASONABLE CURE: l . In the case of a violation that cannot be reasonably c ured within 30 days, a notice of cancellation is sued by the City to the Lessee under this Article is stayed if, within the 30-day notice period, the Lessee begins and continues ex peditiou s action to cure the violation. The City will determine if a violation cannot be reasonably cured within 30 days and what constitutes expeditious action . 2. In the case where, in City's sole determination , Lessee 's violation is conside red an imminent threat to the airport, public hea lth or safety, or the environment, LEASE OF AIRPORT LANDS Page 16 of 33 153 City will direct the Lessee to stop the activity immediately and may reduce the period to cure the violation, or the City may correct the violation pursuant to (E) of this Article. E. RIGHT OF CITY TO PERFORM: I . If, after 30 days following notice the Lessee fails or refuses to perform any action required by this Lease, the City will have the right, but not the obligation, to perform any or all such actions required by this Lease at the sole expense of the Lessee . The City will not take action if the Lessee begins and continues expeditious action to perform any action required by this Lease that cannot be reasonably completed within 30 days. The City will, at its sole discretion, determine what constitutes expeditious action and if an action cannot be reasonably performed in 30 days . The City will submit to the Lessee an invoice for the expenses incurred by the City in the performance by the City of any required action. The Lessee will pay the amount of each invoice within 30 days from issuance. 2. If Lessee fails or refuses to perform any action that has been deemed an imminent threat the City will have the right, but not the obligation, to perform any or all such actions required to expeditiously correct the imminent threat. Lessee shall reimburse the City for any cost, including legal fees and administrative costs reasonably incurred by the City in acting to correct the imminent threat violation. F. WAIVER: A waiver by the City of any default by the Lessee of any provision of this Lease will not operate as a waiver of any subsequent default. If the City waives a default, the City is not required to provide notice to the Lessee to restore or revive any term or condition under this Lease. The waiver by the City of any provision in this Lease cannot be enforced or relied upon unless the waiver is in writing and signed on behalf of the City. The City's failure to insist upon the strict performance by the Lessee of any provision in this Lease is not a waiver or relinquishment for the future , and the provision will continue in full force. G. AIRPORT CLOSURE: I. If the City closes the airport to aircraft operations for sixty days or less, this Lease will remain in full force and effect without adjustment 2. If the City closes the Airport to aircraft operations for more than sixty days, but not permanently, and this Lease is for aviation or direct aviation support uses, the Lessee may, upon written notice to the City, either terminate the Lease or retain the Lease and receive a fifty (50%) percent rent reduction or credit for that portion of the closure that exceeds sixty days. 3. If the City permanently closes the Airport to aircraft operations and LEASE OF AIRPORT LANDS Page 17 of 33 154 a. this Lease is for aviation or direct aviation support uses , the Lessee may terminate this agreement by written notice to the City; or b. this Lease is for non-aviation uses, the Lessee may request in writing to have the Lease terminated. The City will consider the Lessee 's request in light of the City's best interest and either terminate the Lease , or deny the Lessee's request in writing . H. DISASTERS : The Lessee or City may cancel this lease upon written notice to the other party if: 1. the Premises becomes unusable through no fault of either party and performance under this lease becomes impossible; or 2. the Airport becomes unusable through no fault of either party and the performance under this lease becomes impossible. If the Lessee elects in writing that it will continue to operate after notice from City to Lessee that the Airport has become unusable, the Lessee's obligations under the Lease will continue, but City shall be under no obligation to continue to perform. Causes for termination of the lease under this provision (G) include acts of God , the public enemy, and the United States. I. NATIONAL EMERGENCY: If the federal government declares a national emergency, neither party may hold the other liable for any inability to perform any part of this Lease as a result of the national emergency. J. SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII, Lessee shall, on the last day of the term of this Lease (including any extension or renewal thereof) or upon any earlier termination of this Lease, surrender and deliver up the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. K. OWNERSHIP AND DISPOSITION OF IMPROVEMENTS: 1. Ownership of Permanent Improvements : Permanent improvements on the Premises, excluding Site Development Materials, constructed, placed, or purchased by the Lessee remain the Lessee's property as long as this Lease remains in effect, including any period of extension or holdover with the consent of the Lessor. LEASE OF AIRPORT LANDS Page 18 of 33 155 2. Disposition of Site Development Materials : The Lessee acknowledges that, once placed by the Lessee, the removal from the Premises of Site Development Materials can damage the Premises , adversely affect surface water drainage patterns, and destabilize adjacent structures. When placed on the Premises by the Lessee, Site Development Materials, including building pads, parking areas, driveways , and similar structures : a. become a part of the realty and the property of the City of Kenai ; b. unless otherwise directed by the Lessor, must be maintained by the Lessee throughout the term of this Lease, including any extensions and periods of holdover; and c. may not be removed by the Lessee without the prior written approval of the Lessor. 3. Disposition of Personal Property and Permanent Improvements Other Than Site Development Materials : a. Unless the Lessor otherwise directs as provided below, when this Lease expires , terminates, or is cancelled and is neither extended nor followed by a successive lease , the departing Lessee may do one or more of the following : i. remove Lessee-owned Permanent Improvements from the Premises, remediate any Contam ination for which the Lessee is responsible, and restore the Premises to a clean and neat physical condition acceptable to the Lessor within 60 days after the expiration, cancellation , or termination date of this Lease ; ii. with written approval from the Lessor, sell Lessee-owned Permanent Improvements to the succeeding lessee, remove all personal property, remediate , any Contamination for which the Lessee is responsible and leave the Premises in a clean and neat physical condition acceptable to the Lessor within 60 days after notice from the Lessor that the Lessor has approved an application for a lease of the Premises by another person or such longer period specified in the notice , but in no event more than 180 days after the expiration , termination , or cancellation date of this Lease; iii. elect to have the Lessor sell Lessee-owned Permanent Improvements at public auction as provided below, remediate any Contamination for which the Lessee is responsible, and LEASE OF AIRPORT LANDS Page 19 of 33 156 restore the premises to a clean and neat physical condition acceptable to the Lessor. If the Lessor sells Permanent Improvements under this Paragraph for removal from the Premises, the departing Lessee's obligation under this Paragraph continues until the Premises are remediated and restored to a clean and neat physical condition acceptable to the Lessor after the improvements have been removed . b. If the departing Lessee elects to ha ve the Lessor sell Lessee-owned Permanent Improvements at public auction per this Section, the Lessee shall, within 30_days after the expiration, cancellation , or termination of this Lease : i. submit to the Lessor a written request and authorization to sell the Permanent Improvements by public auction; ii. prov ide to the Lessor an executed conveyance document transferring clear title to the Permanent Improvements to t he successful bidder at the public auction , along with authorization to the Lessor, as agent for the Lessee for purposes of the sale only, to endorse the name of the successful bidder on the conveyance document upon rece ipt of payment of the successful bid price; and iii. before the date of the public auction, remove all personal property, remediate any Contamination for which the Lessee is responsible and leave the Premises in a neat and clean physical condition acceptable to the Lessor. c. When selling Lessee -owned Permanent Improvements at public auction for the departing Lessee , the Lessor will establish the terms and conditions of the sale . The Lessor shall pay the Lessee any proceeds of the sale of the Permanent Improvements , less the administrative costs of the public auction and any financial obligation the Lessee owes to the Lessor under this Lease . Payment will be made within a reasonable time after the Lessor completes the sale transaction and receives the proceeds , but not to exceed 60 days. If all or a portion of the Permanent Improvements do not sell at public auction , the Lessee will remove those Permanent Improvements, remediate any Contamination for which the Lessee is responsible and restore the Premises to a clean and neat physical cond ition acceptable to the Lessor within 60 days after the auction . d . If the Lessee shows good cause to the Lessor and if it is not inconsisten t with the best interest of the City of Kenai, the Lessor will grant an extension of time that is sufficient to allow the Lessee to remove o r sell LEASE OF AIRPORT LANDS Page 20 of 33 157 Lessee-owned Permanent Improvements , remediate any Contamination for which the Lessee is responsible and to restore the Premises to a clean and neat physical condition acceptable to the Lessor. e . The Lessor will , by written notice, d irect the departing Lessee to remove Lessee-owned Permanent Improvements from the Premises , to remediate , consistent with appl icable law, any Contamination for which the Lessee is responsible and to restore the Premises to a clean and nea t physical condition acceptable to the Lessor if the Lessor determines in writing : i. that t he continued presence of the Permanent Improvements on the Premises are not consistent with any written Airport program or plan required for compliance with applicable federal, state, or local law; ii. that the continued presence of the Permanent Improvements on the Premises is not in the best interest of the City of Kenai ; or iii. that the Permanent Improvements present a hazard to public health or safety. f . The departing Lessee to whom the Lessor has issued direction under Paragraph ~of this Section shall comply with the Lessor's direction within 60 days after issuance of the direction and at no cost to the Lessor. If the departing Lessee shows good cause to the Lesso r, continues to work diligently to comply with Lessor 's direction , and if it is not inconsistent with the best interest of the City of Kenai, the Lessor will allow in writing a longer period that is sufficient to allow the Lessee to comply with the Lessor's direction. A departing Lessee who fails to comply with a direction issued by the Lessor under Paragraph &~of this Section, shall , within 30 days of being billed by the Lessor, reimburse the Lessor for any costs reasonably incurred by the Lessor, including legal fees and administrative costs, to enforce the Lessor's direction or to remove and dispose of unremoved Lessee-owned improvements , remediate any Contamination for which the Lessee is responsible and restore the Premises. g . If the departing Lessee does not timely remove or sell the Lessee-owned Permanent Improvements on the Premises in accordance with the requirements of this Section , any remaining Permanent Improvements and any remaining personal property of the departing Lessee will be considered permanently abandoned . The Lessor may sell, lease , demolish , dispose of, remove , or retain the abandoned property for LEASE OF AIRPORT LANDS Page 21 of 33 158 Airport use as the Lessor determines is in the best interest of the City of Kenai. The departing Lessee shall, within 30 days after being billed by the Lessor, reimburse the Lessor for any costs reasonably incurred by the Lessor, including legal and administrative costs , to demolish, remove, dispose , clear title to, or sell the abandoned property and to remediate and restore the Premises. h. After the expiration, termination, or cancellation of the Lease, including any holdover, the departing Lessee loses all right to occupy or use the premises without the express or implied consent of the Lessor. Except as the Lessor notifies the departing Lessee otherwise in writing, the Lessor consents to the departing Lessee's continued use and occupancy of the Premises to diligently accomplish the requirements of this Section. Until the departing Lessee relinquishes possession of and completely vacates the Premises under Paragraph 9 of this Section and notifies the Lessor in writing that it has relinquished and vacated the Premises, the departing Lessee shall perform the following as if the lease were still in effect, i. pay rent to the Lessor; ii. maintain the premises ; iii. provide the Lessor with evidence of each insurance coverage , if any, required under the Lease ; and iv. cease using the premises other than to diligently accomplish the requirements of this Section, and to comply with the other requirements of the Lease. i. A departing Lessee will not be considered to have relinquished possession and completely vacated the Premises until i. the departing Lessee has: (a) remediated , consistent with applicable law, any Contamination for which the Lessee is responsible; and (b) restored the Premises to a clean and neat physical condition acceptable to the Lessor; and ii. either LEASE OF AIRPORT LANDS Page 22 of 33 159 (a) removed all of the Lessee's Permanent Improvements and personal property from the premises or sold the Permanent Improvements and personal property to a succeeding Lessee under the provisions of this Lease; or (b) transferred title to the Lessee's Permanent Improvements and personal property that remain on the premises to the Lessor. ARTICLE XIII GENERAL COVENANTS A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport lands or facilities without the written consent of the City is prohibited. This prohibition shall not apply to use of areas designated by the City for specified public uses, such as passenger terminals, automobile parking areas, and streets . B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not limited to recording costs, shall be paid by Lessee. C. CARE OF THE PREMISES: The Lessee shall keep the Premises clean and in good order at the Lessee 's own expense, allowing no damage, waste, nor destruction thereof, nor removing any material therefrom, without written permission of the City. At the expiration of the term fixed, or any earlier termination of the Lease, the Lessee will peaceably and quietly quit and surrender the premises to the City. D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction on the Premises by the Lessee must be compatible with its surroundings and consistent with the uses authorized under this Lease , as determined by the City. The Lessee must obtain the City's written approval before placing fill material , beginning any land development, or constructing or demolishing any improvements on the Premises, and before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration, modification, or renovation, together with specifications or any other information the City reasonably requires . Further, the Lessee will submit to City evidence of the Lessee 's compliance with Federal Aviation Administration regulation 14 CFR Part 77 . E. LEASE SUBORDINATE TO AIRPORT FINANCING REQUIREMENTS: Lessee agrees that City may modify this Lease to meet revised requirements for Federal or State grants, or to conform to the requirements of any revenue bond covenant. However, the modification shall not act to reduce the rights or privileges granted the Lessee by this Lease, nor act to cause the Lessee financial loss. F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and covenants that the Lessee, upon paying rent and performing other covenants, terms, and conditions of this Lease, shall have the right to quietly and peacefully hold , use, occupy, and LEASE OF AIRPORT LANDS Page 23 of 33 160 enjoy the Premises, except that the following shall not construed as a denial of the right of quiet or peaceable possession: 1. Any inconvenience caused by public works projects in or about the Premises ; and 2. Any other entries by the City on the Premises reserved or authorized under other provisions of this Lease . G . NO PARTNERSHIP OR JOINT VENTURE CREATED : It is expressly understood that the City shall not be construed or held to be a partner or joint venture of Lessee in the conduct of the Lessee 's activit ies or business on the Premises . The relationship between the City and the Lessee is, and shall at all times remain , strictly that of landlord and tenant, respect ively . H. DISCRIMINATION : The Lessee will not discriminate on the grounds of race , color, relig ion , national origin , ancestry, age , or sex against any patron, emp loyee, applicant for employment, or other person or group of persons in any manner prohib ited by federal or state law. The Lessee recognizes the right of the City to take any action necessary to enforce this provision, including actions required pursuant to any federal or state law. I. AFFIRMATIVE ACTION: If required by 14 CFR Part 152 , subpart E, the Lessee will undertake an affirmative action program to insure that no person will be excluded from participating in any employment activities offered by the Lessee on the grounds of race , creed , color, national origin , or se x. No person may be excluded on these grounds from partic ipating in or rece iving the services or benefits of any program or activity covered by subpart E. The Les see further agrees that it will require its sub-organization(s ) provide assurance to the City to the same effect that they will also undertake affirmative action programs and require assurances from their sub-organization( s) as required by 14 CFR , Part 152, subpart E. Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to title 49 , code of Federal Regulations , DOT, Subtitle A, Office of the Sec retary, Part 21, Nondiscrimination in Federally-Assisted programs of the Department of Transportation- Effectuation of Title VI of the Ci vil Rights Act of 1964, and as the Regulation may be amended. J. INTEGRATION , MERGER, AND MODIFICATION: This Lease sets out all the terms , conditions, and agreements of the parties and supersedes any previous understandings or agreements regard ing the Premises whether oral or written . No modification or amendment of this Lease is effective unless in writing and signed on behalf of the City and the Lessee. K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend , and enforce reasonable rules and regulations governing the Airport, including the Premises. The City shall no t be liable to Lessee for any diminution or deprivation of possession , or of Lessee's rights under this Lease , on account of the exercise of the City's authority reserved under this provision. Furthermore , the Lessee shall not be entitled to terminate the whole or any portion of the leasehold estate created under this Lease , by reason of the exercise of the City's authority reserved under this provision , unless the exercise thereof so interferes with Lessee's LEASE OF AIRPORT LANDS Page 24 of 33 161 use and occupancy of the Premises as to constitute a termination , in whole or in part , of this Lease by operation of law under the laws of the State of Alaska and of the United States made applicable to the states. L. LESSEE'S OBLIGATION TO PREVENT AND REMOVE LIENS: Lessee will not permit any liens including, but not limited to , mechanics', laborers', or materialmen's liens obtainable or available under the then existing laws, to stand against the Premises or improvements on the Premises for any labor or material furnished to Lessee or claimed to have been furnished to Lessee or to the Lessee's agents , contractors, or sub:lessees, in connection w ith work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Lessee. Provided , however, the Lessee shall have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien . Upon a final determination of the lien or claim for lien, the Lessee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Lessee's own expense . M. CONDEMNATION: In the event the Premises or any part thereof shall be condemned and taken for a public or a quasi-public use, then upon payment of any award or compensation arising from the condemnation or taking , the City and the Lessee shall make a good faith effort to agree upon 1 . the division of the proceeds; 2 . the abatement in rent payable during the term or any extension of the term of this Lease; and 3. other adjustments as the parties may agree upon as being just and equitable under all the circumstances. If, within thirty days after the award has been paid into Court, the City and Lessee are unable to agree upon what division , abatement in rent, and other adjustments as are just and equitable , the dispute shall be determined by arbitration. N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations on assignment as are provided for in this Lease . 0 . NOTICES : 1. Any notices required by this Lease must be in writing and must be delivered personally or mailed by certified or registered mai l in a prepaid envelope . A mailed notice a. must be addressed to the respective party at the address written on the first page of this Lease or to the latest address designated in accordance with (2) of this Provision (O); and LEASE OF AIRPORT LANDS Page 25 of 33 162 b. shall be deemed delivered on the date it is deposited in a U.S. general or branch post office. 2. The City or the Lessee may, from time to time , designate a new address at which they will receive notices by providing the other party with written notice at least 15 days prior to the effective date of the change. An address change notice must be delivered according to the procedure set out in (1) of this Provision (0). P. RETENTION OF RENTAL: In the event the City terminates this Lease because of any breach by the Lessee, the City shall retain any unused balance of the rental payment last made by the Lessee City as partial or total liquidated damages for the breach . Q. FIRE PROTECTION: The Lessee will take all reasonable precautio ns to prevent, and take all necessary action to suppress destructive or uncontrolled fires and comply with all laws, regulations, and rules promulgated and enforced by the City for fire protect ion on the Airport. R. PERSONAL USE OF MATERIALS: No interest in coa l, oil, gas or any other mineral , or in any deposit of stone or gravel valuable for extraction or utilization is included in the Premises or in the rights granted by this lease . .,. The Lessee shall not sell or remove from the Premises for use elsewhere any timber, stone , gravel , peat moss, topsoil or any other material valuable for building or commercial purposes. S . APPROVAL OF OTHER AUTHORITIES: The granting of this lease by the City does not relieve the Lessee of the responsibility to obtain any license or permit as may be required by federal , state , or local law. T. EXECUTION BY THE PARTIES: This Lea se is of no effect unless signed by the Lessee, or a duly authorized representative of Lessee, and an authorized representative of the City . U. CAPTIONS: The captions of the provisions of this Lease are for convenience only and do not necessarily define, limit, describe, or construe the contents of any provision. V. RIGHTS OF CONSTRUCTION : This Lease is intended to make public property available for private use , while at all times protecting the public interest to the greatest extent pos sible. Following the rule that transfers of interest in public property are to be strictly construed in favor of the public property landlord , all rights granted to the Lessee under this Lease will be strictly construed, and all rights of the City and the protectio ns of the public interest will be liberally construed . W . LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee has read this Lease and fully understands its terms, that the Lessee has been fully advised or has had the opportunity of advice by separate legal counsel , and vol untarily executes this Lease. Lessee also acknowledges and agrees that the rule of interpretation under which a document LEASE OF AIRPORT LANDS Page 26 of 33 163 is construed against the drafter will not apply to this Lease . X. APPROVAL BY LESSOR: Any approval required of the Lessor by this Lease will not be unreasonably withheld . The Lessor's approval does not waive the Lessee's legal responsibility or liability to comply with all applicable federal and state laws and regulations. ARTICLE XIV SURVEY, IMPROVEMENTS AND PERFORMANCE BOND A. SURVEY: The Lessee is solely responsible, at its sole expense, to confirm or establish the physical location of the boundaries of the Premises prior to beginning any construction thereon, including clearing grubbing, back-filling and env ironmental sampling. Any survey of the Premises shall be performed by a Land Surveyor registered in the State of Alaska. The Lessee shall furnish the City with a copy of the plat of any survey performed on the Premises by, or on behalf of, the Lessee . B. IMPROVEMENTS: 1. REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including , by no later than , with an aggregate cost of at least$ , excluding financing costs. In addition to the as- built drawings required by this Lease, the Lessee must submit to the City written evidence that the Lessee has completed the land development and constructed improvements on the Premises with an aggregate cost or investment of not less than $ ------ The evidence of cost must be submitted to the City within sixty days of the completion of the development and improvements , but by no later than a. Costs considered toward the aggregate cost of permanent improvements include building construction, design, labor, materials , materials shipping, permits, equipment , soil testing , environmental baseline report, and environmental assessment directly related to the construction; premises and as-built surveys; site preparation , including excavation , geotextile fabric, filling , grading , fill material, gravel, and pavement, remediation of environmental contamination (unless Lessee caused or Materially Contributed To the Contamination); and utility connection costs. b. The cost of Permanent Improvements excludes: 1. work performed by the City and not reimbursed by the Lessee; and LEASE OF AIRPORT LANDS Page 27 of 33 164 2. work performed by the Lessee and reimbursed by the City . 2. FAILURE TO COMPLETE IMPROVEMENTS: If the Lessee fa ils to comp lete the required construction within the time allowed under (b)(1) of this Article , including any extensions granted , the City will execute against and the Lessee will forfeit, any bond or other guarantee given by the Lessee and , as applicable, City will: a. initiate cancellation of the lease; or b. reduce the term of the lease to a period that is consistent with the portion of the required construction timely completed T-Gf.:. 3. APPEARANCE: When completed, all improvements on the Premises must be neat, presentable, and compatible with the authorized use of the Premises under this Lease , as determined by the City. 4. CITY APPROVAL REQUIRED: The Lessee must first obtain the City 's written approval before beginning any land development, co nstruction or demolition of any improvements on the Premises, or before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration, modification, or renovation. Further, the Lessee will submit to City evidence of the Lessee 's compliance with the FM regulation 14 CFR Part 77 . 5. CITY APPROVAL WITHHELD : The City's approval of any construction, alteration, modification , or renovation will not be withheld unless a. the Lessee fails to demonstrate adequate financial resources to complete the project; b . the project plans , specifications, and agency approvals are incomplete ; c. the proposed project would result in a violation of an appl icable ordinance, regulation, or law ; d. the proposed project would interfere with or is incompatib le with the safety, security, maintenance , or operation of the airport; e. the proposed project is inconsistent with the Airport Master Plan ; f . the proposed project is inconsistent with the terms of the lease , zon ing ordinances, or the City 's Comprehensive Plan ; g. the project plans do not make sufficient provision for drainage, aircraft, vehicle, and equipment parking, or for snow storage ; or LEASE OF AIRPORT LANDS Page 28 of 33 165 h . the proposed project does not conform to generally recognized engineering principles or applicable fire or building codes. 6. DEMOLITION : Prior to any demolition of any structure(s) on the Premises, Lessee will deliver to City a written scope of work that , at a minimum, lists the structure(s) that are to be demolished and the timeframe for demolition and removal of the debris from the Airport. City will review Lessee 's scope for demolition and issue Lessee written approval for the work to be done. 7. BUILDING SETBACK: No building o r other permanent structure may be constructed or placed within twenty feet of any lot of the Premises without City's prior written approval. In addition, no building or other permanent structure may be constructed or placed within twenty feet of any boundary line of the Premises which fronts on a landing strip, taxiway, or apron . 8. AS-BUILT DRAWINGS : Within sixty days after completion of construction or placement of improvements upon the Premises, the Lessee will deliver to the City a copy of an as-built drawing , acceptable to the City, showing the location and dimensions of the improvements, giving distances to all Premises ' boundaries . If the Lessee constructs underground improvements, the Lessee will appropriately mark the surface of the land with adequate surface markers. The type , quantity, and distance between such markers will be subject to approval of the City. 9. AIRPORT SECURITY FENCING : If any construction by the Lessee requires a realignment or alteration of an existing security fence on the Premises or boundary of the Premises , the Lessee agrees to realign or alter the fence in a manner approved in writing by the Airport Manager. Anytime the fence must be breached to allow the Lessee to complete improvement construction or fence modifications , the Lessee shall , at the Lessee's sole expense place temporary barriers to maintain the security of the Airport, as determined by the A irport Manager. If damage occurs to a security fence on the Premises or boundary of the Premises in connection with the Lessee 's use or occupation of the Premises, the Lessee shall promptly repair the fence to the satisfaction of the Airport Manager. 10. DAMAGE TO IMPROVEMENTS : If Lessee 's improvements on the Premises are damaged or destroyed , Lessee will cause the improvements to be repaired or rebuilt, and restored to normal funct ion within two years following the damage or destruction . If the Lessee fails to timely rebuild or restore the improvements , the City may, at its sole discretion , either reduce the term of this Lease commensurate with the estimated value of the Lessee 's remaining , fully functional improvements on the Premises , or cancel this Lease. LEASE OF AIRPORT LANDS Page 29 of 33 166 11. DAMAGE NEAR EXPIRATION: If Lessee's improvements are damaged to the extent that more than 50% of the space is unusable and the damage occurs within five years of the expiration of the term of this Lease, Lessee may remove the damaged improvements, restore the Premises and terminate this Lease. C. PERFORMANCE BOND (Optional): NIA-Prior to beginning the construction of permanent improvements required under fb1(1) of this Article, the Lessee shall submit to the City a performance bond, deposit, or other security in the amount of$ . The form of the bond or other security shall be subject to the City 's approval. D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this Lease or upon any earlier termination of this Lease, surrender and del iver upon the premises into the possession and use of City without fraud or delay in good order, condition , and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal , free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. Upon the end of the term of this Lease, including any extension or renewal, or any earlier termination thereof, title to the buildings, improvements and bu ilding equipment shall automatically vest in City without requirement of any deed, conveyance, or bill of sale thereon. However, if City should require any such document in confirmation hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any charge , tax, and fee asserted or imposed by any and all governmental unites in connection herewith . E . NOTICE OF CONSTRUCTION : The Lessee agrees to notify the City in writing three days prior to commencing any construction project valued in excess of $1 ,000.00 on the Premises. The Lessee agrees to assist in the posting of a notice of non-responsibility and maintenance of the notice on the Premises during construction. Lessee agrees that in the event the Lessee fails to notify the City as required by this Provision (f), the Lessee shall indemnify the City against any materialmen's liens as defined in AS 34.35.050 which arise as a result of construction on the premises. ARTICLE XV SPECIAL PROVISIONS /\. CITY CONSTRUCTED IMPROVEMENTS. N//\ 1. /\LTERN/\TIVE ONE Tho City commits to construct improvements after the lease is signed . a. /\s part of the exchange of consideration of this lease , the City will , at the City 's expense, cause the following improvements to be constructed on or in connection with the Premises: LEASE OF AIRPORT LANDS Page 30 of 33 167 b . The City's total cost of the improvement construction shall not exceed $ without the Lessee 's written concurrence. c . The Lessee shall reimburse the City for the C ity's cost of constructing the improvements . The reimbursement shall be made in ten (10) equal annual payments, plus interest at eight percent (8%) per year on the unpaid balance . The Lessee may pay the entire remaining balance to the City earlier than due. d. After completing the improvements, the City '.Viii give the Lessee written notice of the City's total cost of constructing the improvements and the date on which the Lessee 's reimbursement payments shall begin , which date shall be no earlier than 60 days after the date of the City 's notice. The Lessee 's annual reimbursement payment for each succeeding year shall be made to the City by no later than the anniversary of date on which tho first payment was duo. e. Failure by the Lessee to timely reimburse the City as required under (b) through (d) of this provision shall be grounds for termination of this lease by the City. 2 . ALTERNATIVE TWO The City builds improvements before the lease is signed . N/A a. The Lessee acknowledges that prior to the execution of this lease , the City constructed the follmving improvements on or in connection with the Premises: b. The City's total cost to construct tho improvements was c. As part of the consideration of this lease, the Lessee shall reimburse the City for the City's cost of constructing the improvements. The reimbursement shall be made in ten (10) equal an nual payments, plus interest at eight percent (8%) per year on the unpaid balance . The Lessee may pay the entire remaining balance to the City earlier than 00&. d . The Lessee shall make the first reimbursement payment to the City by no later than the first anniversary of tho lease term beginning date given LEASE OF AIRPORT LANDS Page 31 of 33 168 in Article Ill of this lease. Tho Lessee's annual reimbursement payment for each succeeding year shall be made to the City by no later than the anniversary of date on which the first payment was due. e. Failure by the Lessee to timely reimburse the City as required under (c) and (d) of this provision shall be grounds for termination of this Lease by the City. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below. LESSEE: Lessee Name Its : Director Date LESSOR: City of Kenai Paul Ostrander Its : City Manager Date ACKNOWLEDGMENTS ST A TE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , .f.Q__, Name: Lessee Name, Director, of , being personally known to me or having produced satisfactory evidence of identification , appeared before me and acknowledged the vo luntary and authorized execution of the foregoing instrument on behalf of said corporation. Notary Public for Alas ka My Commission Expires : ______ _ STATE OF ALASKA LEASE OF AIRPORT LANDS Page 32 of 33 169 ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , .2Q_, Paul Ostrander, City Manager of the City of Kenai, Alaska, 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 on behalf of said City. ATTEST : Jamie Heinz, City Clerk SEAL: Approved as to Lease Form : Scott Bloom , City Attorney AFTER RECORDING RETURN TO: City of Kenai 210 Fida Igo Avenue Kenai, AK 99611 LEASE OF AIRPORT LANDS Notary Public for Alaska My Commission Expires : ______ _ Page 33 of 33 170 KENAI CITY COUNCIL – REGULAR MEETING JANUARY 17, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR BRIAN GABRIEL, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on January 17, 2018, in City Hall Council Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Mayor Gabriel led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor Robert Molloy Henry Knackstedt Tim Navarre Jim Glendening Glenese Pettey Mike Boyle A quorum was present. Also in attendance were: Paul Ostrander, City Manager Scott Bloom, City Attorney Jamie Heinz, City Clerk 3. Agenda Approval Mayor Gabriel noted the following additions to the packet: Add to Item D.3. Ordinance No. 2997-2018 • Excerpt of 01/20/16 Council Minutes • Land Use Table Add to Item D.4. Ordinance No. 2998-2018 • Memo • Map Remove Item G.2. Purchase Orders Exceeding $15,000 Add to Item J.3. City Clerk Report 171 City of Kenai Council Meeting Page 2 of 11 January 17, 2018 • Thank you letter to Subaru MOTION: Council Member Molloy MOVED to approve the agenda with the requested revisions to the agenda and packet and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, the public hearing was closed. VOTE: There being no objections, SO ORDERED. *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. B. SCHEDULED PUBLIC COMMENTS 1. Mayor John Williams – Board of Director’s Report to Cook Inlet Regional Citizens Advisory Council Stakeholders and Carport for the Renovated Firetruck. Mayor John Williams, Member of the Board of Directors of Cook Inlet Regional Citizens Advisory Council (CIRCAC), introduced Mike Munger, Executive Director of CIRCAC, who reported on projects taking place in the area and noting the good relationship with the agencies in the area. Mayor Williams also reported he was working on Phase II of the Firetruck Restoration Project, which included constructing a carport to house the renovated fire truck. He noted they had identified a location, met with the Rasmusson Foundation for additional funds, and expressed that he was hopeful the City would also contribute to this phase of the project. 2. Jodi Stuart, Project Homeless Connect – An update on the areas homelessness and near homelessness as well as information on Project Homeless Connect 2018. Jodi Stuart provided an update on homelessness in the central peninsula and an overview of their “Project Homeless Connect,” event, an annual event that served as outreach to those experiencing homelessness or near homelessness to connect them with the services they qualified for and were available to them. 172 City of Kenai Council Meeting Page 3 of 11 January 17, 2018 C. UNSCHEDULED PUBLIC COMMENTS Brenna Eubank, Captain of the Kenai Central High School hockey team, noted their annual steak feed and auction was coming up and invited all to attend. D. PUBLIC HEARINGS 1. Ordinance No. 2995-2018 - Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services (IMLS) Passed Through the Alaska State Library for Employee Travel and Training. Council Member Molloy MOVED to enact Ordinance 2995-2018 and Council Member Knackstedt SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. The Library Director was thanked for her work in applying for the grant. VOTE: YEA: Molloy, Knackstedt, Boyle, Gabriel, Navarre, Pettey, Glendening NAY: MOTION PASSED UNANIMOUSLY. 2. Ordinance No. 2996-2018 – Authorizing Budget Transfers in the Public Safety Improvements Capital Project Fund and the Animal Control Facility Improvements Capital Project Fund for the Transfer of Remaining Balances from Completed Capital Projects to the City Dock Repair Capital Project Fund and Appropriating such Transfers and Insurance Proceeds Received from the City’s Insurer to Complete Repairs to Damage Sustained from the Magnitude 7.1, January 2016 Southcentral Alaska Earthquake and for the Installation of a New Cathodic Protection System and Other Repairs. MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 2996-2018 and the motion was SECONDED by Council Member Molloy. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was clarified that the funds identified were an estimate of the total cost, that insurance was paying for damage repairs and the General Fund was being utilized for additional work; no grants were located that could help with the project. VOTE: YEA: Molloy, Knackstedt, Boyle, Gabriel, Navarre, Pettey, Glendening 173 City of Kenai Council Meeting Page 4 of 11 January 17, 2018 NAY: MOTION PASSED UNANIMOUSLY. 3. Ordinance No. 2997-2018 – Amending Kenai Municipal Code 14.20.330- Standards for Commercial Marijuana Establishments, for Purposes of Consistency with the City’s Land Use Table. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2997-2018 and the motion was SECONDED by Council Member Knackstedt. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was clarified that the ordinance was housekeeping, capturing the effect of all amendments made to both the standards and land use table, from the January 2016 meeting, enacting the regulations. It was also clarified that other amendments were made to ensure the potential for the problem to arise again was minimized by referring to the land use table. Appreciation was expressed for the history and simplification of the code. VOTE: YEA: Molloy, Knackstedt, Boyle, Gabriel, Navarre, Pettey, Glendening NAY: MOTION PASSED UNANIMOUSLY. 4. Ordinance No. 2998-2018 – Repealing, Renaming and Re-Enacting Kenai Municipal Code Chapter 21.10-Leasing Of Airport Reserve Lands to Encourage Growth, Development and a Thriving Aviation Community Through Responsible Land Policies and Practices. MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 2998-2018 and the motion was SECONDED by Council Member Navarre. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. City Attorney Bloom provided an overview of why the program was developed, the intended goals the program was to achieve, and the solutions developed to meet the goals. He also provided an overview of proposed amendments made to Kenai Municipal Code. It was clarified that the fee schedule and forms would be approved by Council and a webpage created prior to the effective date of the ordinance; noted that the land management plan would see continual refinement moving forward. 174 City of Kenai Council Meeting Page 5 of 11 January 17, 2018 Options for lessees for improvements at the end of a lease and provisions of the ordinance regarding the City making upgrades with specific lessees in mind were clarified. Concern was expressed regarding barriers to transactions; suggested requiring funds certified as opposed to requiring finalization. There was discussion regarding initial appraised value, annual fair market value determinations, utilization of the consumer price index to maintain fair market value, appraisal appeal, and the stability in annual lease payments the process provided the lessees over previous processes. An overview of consumer price index was provided. MOTION TO AMEND: Council Member Molloy MOVED to amend Section 21.10.070(d)(2)(C) to read, “the purchase price of improvements, as certified by the current lessee and the proposed purchaser, to be in the bill of sale, to be executed at closing of the transaction; and,” and the motion was SECONDED by Council Member Boyle. UNANIMOUS CONSENT was requested. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. MOTION TO AMEND: Council Member Molloy MOVED to amend the second to last sentence in section 21.10.080 (d) to read, “The renewal term of an existing lease pursuant to a transaction between the current lessee and a new buyer and prospective lessee will be determined by the purchase price of permanent improvements, as certified by the current lessee and the proposed purchaser, to be in the bill of sale, to be executed at closing of the transaction, and the proposed additional permanent improvements, if any,” and the motion was SECONDED by Council Member Boyle. UNANIMOUS CONSENT was requested. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. MOTION TO AMEND: Council Member Molloy MOVED to amend section 21.10.080(e)(1) to read, “The purchase price of real property improvements, as certified by the current lessee and the proposed purchaser, to be in the bill of sale, to be executed at closing of the transaction; or,” and the motion was SECONDED by Council Member Boyle. UNANIMOUS CONSENT was requested. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. MOTION TO AMEND: Council Member Molloy MOVED to amend the last sentence of section 21.10.040(c) to read, “If the Council determines that other Airport purposes are served by the subdivision, the City Council may choose in its sole discretion that the City will share in the subdivision costs with the applicant in whatever amount the City Council determines is reasonable given the benefit to the Airport,” 175 City of Kenai Council Meeting Page 6 of 11 January 17, 2018 and the motion was SECONDED by Council Member Boyle. UNANIMOUS CONSENT was requested. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. MOTION TO AMEND : Council Member Knackstedt MOVED to amend by amending the second to last WHERAS clause to read, “WHEREAS, the Planning and Zoning Commission at is meeting of January 10, 2018 passed Planning and Zoning Resolution No. PZ2018-01 recommending the City Council enact Ordinance No. 2998-2018; and ,” amending the last WHEREAS clause to read, “WHEREAS, the Airport Commission at its meeting of January 11, 2018 recommended the City Council enact Ordinance No. 2998-2018,” amending (a) “Aeronautical Use” in section 21.10.015, Definitions by removing the word, “land,” in the first sentence, and amending (b) in section 21.10.102, Ownership of Improvements, by removing the phrase, “or the department otherwise directs under (f) of this section,” from the sentence. The motion was SECONDED by Council Member Molloy who requested UNANIMOUS CONSENT. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. It was clarified that if the airport wanted to expand onto a leased property, there was no obligation for the City to have to purchase an improvement. Appreciation was expressed for the amount of work the administration and staff put into the policies. VOTE ON THE MAIN MOTION AS AMENDED: YEA: Molloy, Knackstedt, Boyle, Gabriel, Navarre, Pettey, Glendening NAY: MOTION PASSED UNANIMOUSLY. 5. Resolution No. 2018-02 – Authorizing Redirection of Previously Appropriated Funds from a Completed Road Maintenance Capital Project to a Newly Identified Project. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-02 and the motion was SECONDED by Council Member Boyle. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. An overview of the scope of the project was provided; clarified the project was not the same culverts as recently addressed near the Senior Center. VOTE: YEA: Molloy, Knackstedt, Boyle, Gabriel, Navarre, Pettey, Glendening 176 City of Kenai Council Meeting Page 7 of 11 January 17, 2018 NAY: MOTION PASSED UNANIMOUSLY. 6. Resolution No. 2018-03 - Adopting a Policy to Provide for a Student Representative for the Parks and Recreation Commission. MOTION: Council Member Glendening MOVED to adopt Resolution No. 2018-03 and the motion was SECONDED by Council Member Knackstedt. UNANIMOUS CONSENT was requested. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that when the Student Representative occupied the seventh seat, the Commission struggled with achieving a quorum and the definition change would provide for a full commission of seven as required by code and maintain the ability to obtain a Student Representative’s input, when one was available to sit on the Commission. VOTE: There being no objections, SO ORDERED. E. MINUTES 1.*Regular Meeting of January 3, 2018 Meeting minutes approved by the consent agenda. F. UNFINISHED BUSINESS 1. Ordinance No. 2992-2017 - Waiving the Requirements of KMC 17.20.010 - Mandatory Connections and Abandonment of Old On-Site Sewer Systems, for 2737 Iliamna Road. MOTION TO POSTPONE: Council Member Knackstedt MOVED to postpone to the 02/07/18 meeting and the motion was SECONDED by Council Member Glendening. UNANIMOUS CONSENT was requested. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was noted that legislation had been introduced at this meeting, scheduled for public hearing and adoption at the February 7, 2018 meeting, that would address the issue on a more broad scale. VOTE: There being no objections; SO ORDERED. G. NEW BUSINESS 177 City of Kenai Council Meeting Page 8 of 11 January 17, 2018 1. *Action/Approval – Bills to be Ratified. Approved by the consent agenda. 2. *Action/Approval – Purchase Orders Exceeding $15,000. [Clerk’s Note: This item was removed during approval of the agenda] 3. *Ordinance No. 2999-2018 – Increasing / (Decreasing) Estimated Revenues and Appropriations in the Airport Equipment Capital Project Fund and Authorizing Grant Amendments to Adjust Estimated Grant Proceeds as a Result of Proceeds from the Sale of Equipment Previously Purchased with Federal Aviation Administration Grant Funds. Introduced by the consent agenda and public hearing set for February 7, 2018. 4. *Ordinance No. 3000-2018 – Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services (IMLS) Passed Through the Alaska State Library for Employee Travel and Training. Introduced by the consent agenda and public hearing set for February 7, 2018. 5. *Ordinance No. 3001-2018 – Repealing and Re-Enacting Kenai Municipal Code Section 7.15.090- Sales, Surplus, Competitive Bidding to Provide Administrative Authority for the Disposal of Certain Surplus or Obsolete Supplies, Materials or Equipment. Introduced by the consent agenda and public hearing set for February 7, 2018. 6. *Ordinance No. 3002-2018 – Increasing / (Decreasing) Estimated Revenues and Appropriations in the Personal Use Fishery Fund for the Remaining FY2018 Expenditures which were Presented in the 2017 Kenai River Personal Use Fishery Report. Introduced by the consent agenda and public hearing set for February 7, 2018. 7. Ordinance No. 3003-2018 – Amending Kenai Municipal Code Section 17.10.010- Mandatory Connection and Abandonment of Old Well, and Section 17.20.010- Mandatory Connections and Abandonment of Old On-Site Sewer Systems, to Change the Mandatory Connection Requirements. Introduced by the consent agenda and public hearing set for February 7, 2018. 8. Ordinance No. 3004-2018 – Amending Kenai Municipal Code Section 1.15.050-Order of Business, to Amend the Use of the Pending Legislation Agenda Item and Make Other Housekeeping Changes. Introduced by the consent agenda and public hearing set for February 7, 2018. 178 City of Kenai Council Meeting Page 9 of 11 January 17, 2018 9. Ordinance No. 3005-2018 –Amending Kenai Municipal Code Chapter 7.10-Sales Tax, to Exempt Public Water and Sewer Utility Services to Residential Housing from the City’s Levy of Sales Tax. Introduced by the consent agenda and public hearing set for February 7, 2018. 10. Discussion – Contract Award Procedures for Purchase Orders Exceeding $15,000. It was noted that the memo provided in the packet discussed administration’s process and difficulties with managing contracts, occasionally coming to Council after the fact so projects didn’t suffer heightened costs and delays; proposing a change that, at award, the resolution included a contingency amount which would allow administration to more effectively manage projects. It was clarified that changes outside the contingency amount would not be authorized without Council Approval. Council agreed to a policy being brought forth in the future for approval. 11. Discussion – 2014 / 2016 Integrated Water Quality and Assessment Report – City of Kenai Comments. It was noted that since release of the report, it appeared a section of the Kenai River would be listed as impaired and comment wouldn’t change that designation; further noted that the Kenai River Special Management Area (KRSMA) board would have a role in addressing the corrections. Council agreed that comment from the City was not needed at this time. 12. Discussion – Council Input on a Future Dipnet Vendor Permit. It was noted that administration was moving forward with a Dipnet Vendor Permit at the request of Council and that some direction was needed to determine the best path. Exclusivity, a competitive process, variety of vendors, local preference, and future improvements with the possible use of grant funds for those improvements were topics discussed. It was suggested that the Parks and Recreation Commission and Harbor Commission might weigh in on the process. H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – It was reported that the Council approved a new agenda format, and discussed goals. All were encouraged to visit the new construction; next meeting February 8. 2. Airport Commission – It was reported that on January 11 the Commission reviewed the airport leasing policies, signage on the field of flowers, the read on the fly program, and heard project updates; next meeting February 8. 3. Harbor Commission – It was reported that at the January 8 meeting the Commission elected a chair and vice chair, continued discussion of defining their roles and responsibilities, approved an agenda revision, and discussed the no wake zone; next meeting February 12. 179 City of Kenai Council Meeting Page 10 of 11 January 17, 2018 4. Parks and Recreation Commission – It was noted that at their January 4 meeting the Commission elected a chair and vice chair, prioritized trails, reviewed the Skate with Santa event, and heard a dipnet report; next meeting February 1. 5. Planning and Zoning Commission – It was reported that at the January 10 meeting the Commission elected a chair and vice chair, approved a plat, approved an encroachment permit, and approved a resolution recommending approval of the airport leasing policies; next meeting January 24. 6. Beautification Committee – It was reported that at the January 9 meeting the Committee elected a chair and vice chair, discussed the fall pumpkin festival event, requested a new meeting time, approved an agenda change, and heard about the flower order; next meeting April 10. 7. Mini-Grant Steering Committee – No report. I. REPORT OF THE MAYOR Mayor Gabriel reported on the following: • Attended Industry Outlook Forum; appeared industry was trending upward; • Attended Rotary Luncheon. J. ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: • Met with new CEO of Kenaitze Tribe; • Attended Industry Outlook Forum; getting the word out that Kenai was a place that encourages growth and thriving; • Attended the Planning and Zoning and Airport Commission meetings and presented on airport policy changes; • Attended the KRSMA meeting and noted a lot of emotion about integrated report regarding turbidity; • Met with Senator Sullivan about the City’s goals, specifically the Bluff Erosion Project and associated Innovative Readiness Training; • Announced the City Planner had resigned; • Noted a memo in packet from Chief Ross informing Council regarding impacts to the City from Senate Bill 91; • Provided an update on the Spur Motel property. 2. City Attorney – No report. 3. City Clerk – J. Heinz reported on the following: • Noted the official report to Council regarding destroyed records included in the packet; • Noted the letter to Subaru, provided in the laydown, could be signed and mailed if there was no objection. 180 City of Kenai Council Meeting Page 11 of 11 January 17, 2018 K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) None. 2. Council Comments All members wished City Planner Kelley well in his new endeavors. Vice Mayor Navarre thanked the City Clerk for the updated 2018 calendar and noted he attended the Industry Outlook forum. Council Member Pettey noted she attended the Industry Outlook Forum and saw optimism for economic development throughout state. Council Member Glendening noted he attended a recent Kenai Historical Society meeting, and the Industry Outlook Forum; thanked administration for their leasing policy presentation. Councilor Boyle thanked the administrative team for putting together the leasing ordinance; thanked Chief Ross for his analyses of the impacts of Senate Bill 91. Councilor Molloy echoed gratitude for the leasing ordinance and the Attorney for his presentation. Council Member Knackstedt echoed gratitude for the leasing ordinance and presentation. L. EXECUTIVE SESSION – None. M. PENDING ITEMS 1. Ordinance No. 2993-2017 - Amending Kenai Municipal Code Chapter 14.25- Landscaping/Site Plan Regulations, to Require Landscaping and Site Plans for All Retention Basins, Commercial, Industrial and Multifamily Development and Land Clearing in Certain Zones in the City and Making other Material and Housekeeping Changes. (Postponed to February 7, 2018) N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 9:34 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of January 17, 2018. _____________________________ Jamie Heinz, CMC City Clerk 181 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Jamie Heinz, City Clerk DATE: January 22, 2018 SUBJECT: Corrected Minutes of May 20, 2014 ____________________________________________________________________________ In October 2017, it was discovered that the Minutes of May 20, 2014 had not been completed or approved, but had been signed and uploaded into Laserfiche. Clerk’s Office staff have listened to the recorded meeting and prepared the attached corrected minutes. Your consideration is appreciated. 182 KENAI CITY COUNCIL – REGULAR MEETING MAY 20 , 2014 – 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR PAT PORTER, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on May 20, 2014, in City Hall Council Chambers, Kenai, AK. Mayor Porter called the meeting to order at 7:00 p.m. 1. Pledge of Allegiance Mayor Porter led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Mayor Pat Porter Vice Mayor Ryan Marquis Robert Molloy Brian Gabriel Terry Bookey Tim Navarre (telephonic) A quorum was present. Also in attendance were: Rich Koch, City Manager Scott Bloom, City Attorney Sandra Modigh, City Clerk 3. Agenda Approval Mayor Porter noted the following material was provided as a lay-down for inclusion in the packet: Item D.1 Ordinance No. 2747-2014 • Amendment Memorandum Item D.4 Ordinance No. 2754-2014 • Amendment Memorandum Information Item • Kenai Birders Summary MOTION: Council Member Molloy MOVED to approve the agenda and requested UNANIMOUS CONSENT. Council Member Gabriel SECONDED the motion. VOTE: There being no objections, SO ORDERED. 183 City of Kenai Council Meeting Minutes Page 2 of 12 May 20, 2014 4. Consent Agenda MOTION: Council Member Bookey MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Gabriel SECONDED the motion. Mayor Porter opened the floor for public comment on consent agenda items, there being no one wishing to speak, public comment was closed. VOTE: There being no objections, SO ORDERED. *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. B. SCHEDULED PUBLIC COMMENTS – None. C. UNSCHEDULED PUBLIC COMMENTS – None. D. PUBLIC HEARINGS 1. Ordinance No. 2747-2014 – Amending Kenai Municipal Code 1.15.040 - Agenda, to Require Ordinances and Resolutions to be Sponsored by at Least One Council Member. [Clerk’s Note: At its April 2nd meeting Council postponed public hearing of this ordinance until the May 20th meeting.] MOTION: Council Member Boyle MOVED to enact Ordinance No. 2747-2014; and Council Member Bookey SECONDED the motion. Mayor Porter opened the public hearing; there being no one wishing to speak the public hearing was closed. It was noted the Ordinance ensured Council involvement from the beginning of the legislative process. Those that were opposed to the Ordinance noted potential political issues by requiring Administration to select sponsors for legislation and by placing an additional steps in the legislative process. MOTION TO AMEND: Council Member Molloy MOVED to amend Ordinance 2747-2014 by inserting subsections A.1 & A.2 to read as follows: “(1) The Council delegates authority to the City Manager to sponsor an ordinance for introduction or a resolution for adoption on the agenda of a regular Council meeting that is administrative in nature, such as: (i) Appropriations; 184 City of Kenai Council Meeting Minutes Page 3 of 12 May 20, 2014 (ii) Budget transfers; (iii) Fee schedules; (iv) Permits; (v) Property leases; (vi) Acceptance of grants; (vii) Establishing Annual Capital Improvement Project Priorities; (viii) Accepting donations; and (ix) Purchases and contracts. (2) The Council may direct the City Clerk, City Attorney, or City Manager to prepare an ordinance or resolution for adoption to be sponsored by the Council.” Council Member Bookey SECONDED the motion. Council, Legal, and Administration discussed limiting Administration’s authority to bring forward legislation as a City Manager form of government and how proposed section A.2 already existed. MOTION TO AMEND THE AMENDMENT: Council Member Bookey MOVED to amend the amendment by deleting subsection A.2 in its entirety and Vice Mayor Marquis SECONDED the motion. VOTE TO AMEND THE AMENDMENT: YEA: Porter, Bookey, Gabriel, Marquis, Molloy, Navarre, Boyle NAY: MOTION PASSED UNANIMOUSLY. VOTE ON THE AMENDMENT: YEA: Bookey, Marquis, Molloy, Boyle NAY: Porter, Gabriel, Navarre MOTION PASSED. It was reiterated that it was the Council’s job to be involved in the legislative process which was the reason for bringing forth the ordinance. Concern was expressed regarding the City Clerk and City Attorney’s ability to bring forward legislation without a Council member sponsoring the legislation. MOTION TO POSTPONE: Council Member Molloy MOVED to postpone Ordinance 2747-2014 as amended for an additional public hearing at the second meeting in June 2014. Council Member Boyle SECONDED the motion. VOTE ON POSTPONEMENT: YEA: Molloy, Boyle, Bookey NAY: Porter, Gabriel, Navarre, Marquis 185 City of Kenai Council Meeting Minutes Page 4 of 12 May 20, 2014 MOTION FAILED . VOTE ON THE MAIN MOTION AS AMENDED: YEA: Molloy, Boyle NAY: Porter, Gabriel, Navarre, Bookey, Marquis MOTION FAILED . 2. Ordinance No. 2748-2014 – Amending Kenai Municipal Code 1.90.020 - Duties, to Provide that Boards, Commissions, and Committees Act in an Advisory Capacity to Council. [Clerk’s Note: At its April 2nd meeting Council postponed public hearing of this ordinance until the May 20th meeting.] MOTION: Council Member Boyle MOVED to enact Ordinance No. 2748-2014; and Vice Mayor Marquis SECONDED the motion. Mayor Porter opened the public hearing; there being no one wishing to speak the public hearing was closed. It was noted the proposed Ordinance would clarify the current process. Vice Mayor Marquis and Council Member Bookey spoke in favor noting this would force Council to take responsibility for the committees and commissions. MOTION TO POSTPONE: Council Member Molloy MOVED to postpone Ordinance 2748-2014 to the second meeting in July. Vice Mayor Marquis SECONDED the motion. MOTION TO AMEND POSTPONEMENT: Council Member Navarre MOVED to postpone Ordinance 2748-2014 to the second meeting in August. Vice Mayor Marquis SECONDED the motion. Administration noted the purpose of the postponement would be to create individual sections in which the commission and committee bodies would advise both the Council and the Administration. It was clarified that Administration would go through the code and, for each commission, verify or enter a section clarifying that commission was advisory to Council and Administration. VOTE ON AMENDED POSTPONEMENT: YEA: Porter, Gabriel, Marquis, Molloy, Navarre NAY: Boyle, Bookey MOTION PASSED. 186 City of Kenai Council Meeting Minutes Page 5 of 12 May 20, 2014 VOTE ON POSTPONEMENT: YEA: Porter, Bookey, Gabriel, Marquis, Molloy, Navarre, Boyle NAY: MOTION PASSED UNANIMOUSLY. 3. Ordinance No. 2753-2014 – Accepting and Appropriating a Grant from the State of Alaska Department of Commerce Community and Economic Development for $250,000 in the Kenai Bluff Stabilization Capital Project Fund for the Kenai Bluff Erosion Control Project. MOTION: Vice Mayor Marquis MOVED to enact Ordinance No. 2753-2014; and Council Member Boyle SECONDED the motion. Mayor Porter opened the public hearing, there being no one wishing to speak the public hearing was closed. VOTE: YEA: Gabriel, Marquis, Molloy, Navarre, Porter, Boyle, Bookey NAY: MOTION PASSED UNANIMOUSLY. 4. Ordinance No. 2754-2014 – Accepting and Appropriating Funds Forfeited to the Kenai Police Department. MOTION: Council Member Bookey MOVED to adopt Ordinance No. 2754-2014; and Vice Mayor Marquis SECONDED the motion. Mayor Porter opened the public hearing; there being no one wishing to speak the public hearing was closed. MOTION TO AMEND: Council Member Gabriel MOVED to amend Ordinance No. 2754-2014 by changing the first WHEREAS to read: WHEREAS, the cash was seized during four drug investigations, in which the Kenai Police Department was the primary investigating agency; the second WHEREAS to read: WHEREAS, the Police Department, pursuant to conditions of acceptance, will utilize the forfeited funds to purchase equipment for use by officers for law enforcement purposes. and the “…estimated revenues and appropriations” to be: 187 City of Kenai Council Meeting Minutes Page 6 of 12 May 20, 2014 General Fund Increase Estimated Revenues: Forfeitures $2,769 Increase Appropriations: Police – Small Tools $2,769 Council Member Bookey SECONDED and requested UNANIMOUS CONSENT. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. VOTE ON THE MOTION AS AMENDED: YEA: Bookey, Gabriel, Marquis, Molloy, Navarre, Porter, Boyle NAY: MOTION PASSED UNANIMOUSLY. 5. Ordinance No. 2755-2014 – Amending Kenai Municipal Code 13.20.035 - Camping, Fires, and other Activities on City Beaches, to Authorize the City Manager to Temporarily Regulate Beach Activities to Protect Public Safety, Health or Welfare, and for City Maintenance of Property. MOTION: Council Member Gabriel MOVED to enact Ordinance No. 2755-2014 and Council Member Boyle SECONDED the motion. Mayor Porter opened the public hearing; there being no one wishing to speak the public hearing was closed. Council Member Gabriel urged support for this ordinance; a proactive effort and would give the City Manager the authority to protect sensitive habitat areas within the City of Kenai beaches. MOTION TO AMEND: Council Member Molloy MOVED to amend the last whereas clause to read: WHEREAS, at the City of Kenai, Harbor Commission meeting on May 12, 2014, the Harbor Commission recommended, by unanimous vote, that Council pass this ordinance. Council Member Boyle SECONDED the motion and requested UNANIMOUS CONSENT. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. Concern was expressed with giving the City Manager the primary authority for beach closures without requirement that it first be brought to Council for discussion and direction. MOTION TO AMEND: Vice Mayor Marquis MOVED to amend Section 2(a)(2), second to last line, to read: “…public safety, health or welfare or for the maintenance of City owned or managed property.” and 188 City of Kenai Council Meeting Minutes Page 7 of 12 May 20, 2014 requested UNANIMOUS CONSENT. Council Member Molloy seconded. VOTE: There being no objections, SO ORDERED. VOTE ON THE MAIN MOTION AS AMENDED: YEA: Bookey, Gabriel, Marquis, Molloy, Navarre, Porter, Boyle NAY: MOTION PASSED UNANIMOUSLY. 6. Ordinance No. 2756-2014 – Repealing Kenai Municipal Code 13.20.030 - Protection of North and South Shore, and Re-Enacting it as Kenai Municipal Code 13.20.030 - Protection of Environmentally Sensitive Areas, to Expand its Application and to Authorize the City Manager to Implement Restrictions on Public Entry, Access and Use for the Protection of Environmentally Sensitive Areas Owned or Managed by the City, Subject to Change by the Council. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2756-2014 and Council Member Gabriel SECONDED the motion. Mayor Porter opened the public hearing; there being no one wishing to speak the public hearing was closed. Concern was expressed regarding primary authority given to the City Manager. Other environmentally sensitive areas, primary in the Kenai River estuary that are not currently under the existing code were noted MOTION TO AMEND: Council Member Molloy MOVED to amend the last whereas clause to read: WHEREAS, at the City of Kenai, Harbor Commission meeting on May 12, 2014, the Harbor Commission recommended, by unanimous vote, that Council pass this ordinance; and requested UNANIMOUS CONSENT. Council Member Gabriel seconded. VOTE: There being no objections, SO ORDERED. It was noted the ordinance would help protect environmentally sensitive areas that may be significantly damaged and needing immediate action. VOTE ON THE MOTION AS AMENDED: YEA: Gabriel, Marquis, Molloy, Navarre, Porter, Boyle, Bookey NAY: MOTION PASSED UNANIMOUSLY. 189 City of Kenai Council Meeting Minutes Page 8 of 12 May 20, 2014 7. Resolution No. 2014-36 – Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2014 and Ending June 30, 2015. MOTION: Council Member Bookey MOVED to adopt Resolution No. 2014-36 and Council Member Gabriel SECONDED the motion. Mayor Porter opened the public hearing; there being no one wishing to speak the public hearing was closed. It was suggested this item be postponed for further discussion on the budget issues first. MOTION TO POSTPONE: Council Member Molloy MOVED to postpone Resolution No. 2014-36 to the first meeting in June. Council Member Gabriel SECONDED the motion and requested UNANIMOUS CONSENT. VOTE ON POSTPONEMENT: There being no objections, SO ORDERED. 8. Resolution No. 2014-37 – Setting a Date for Holding a Public Hearing on the Proposed VIP Drive Special Assessment District. MOTION: Vice Mayor Marquis MOVED to adopt Resolution No. 2014-37 and requested UNANIMOUS CONSENT. Council Member Boyle SECONDED the motion. Mayor Porter opened the public hearing, there being no one wishing to speak the public hearing was closed. VOTE: There being no objections, SO ORDERED. E. MINUTES 1. *Regular Meeting of May 7, 2014 Minutes were approved by the consent agenda. F. UNFINISHED BUSINESS 1. Resolution No. 2014-24 – Approving City Council Policy 2014-01, Kenai Council Travel Policy, Establishing Procedures for Approval of Council Travel. [Clerk’s Note: At its April 16th meeting Council postponed the Resolution to the May 20th meeting.] The City Clerk clarified that at the April 16 Council Meeting that last motion was to divide the question and the current motion on the floor is whether or not to remove 1.C in its entirety. VOTE ON REMOVAL OF PARAGRAPH 1(c): YEA: 190 City of Kenai Council Meeting Minutes Page 9 of 12 May 20, 2014 NAY: Bookey, Gabriel, Marquis, Molloy, Navarre, Porter, Boyle MOTION FAILED. MOTION TO AMEND: Council Member Bookey MOVED to amend Resolution 2014-24, strike the policy and sub-section 1 wording “at the City’s expense” and insert “on behalf of the City”; Vice Mayor Marquis SECONDED. VOTE ON THE AMENDMENT: YEA: Bookey, Gabriel, Marquis, Molloy, Porter, Boyle NAY: Navarre MOTION PASSED. VOTE ON THE MAIN MOTION AS AMENDED: YEA: Marquis, Molloy, Boyle, Bookey NAY: Gabriel, Navarre, Porter MOTION PASSED. G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified Approved by the consent agenda. 2. *Action/Approval – Purchase Orders Exceeding $15,000 Approved by the consent agenda. 3. *Ordinance No. 2757-2014 – Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2014 and Ending June 30, 2015. Introduced by the consent agenda and public hearing set for June 6, 2014. 4. *Ordinance No. 2758-2014 – Appropriating Funds Donated to the Kenai Animal Shelter from Kenai Spine, LLC. Introduced by the consent agenda and public hearing set for June 6, 2014. 5. *Ordinance No. 2759-2014 – Accepting and Appropriating $2,232.19 for Anticipated Police Computer Forensic Software Reimbursements from Internet Crimes Against Children (ICAC). Introduced by the consent agenda and public hearing set for June 6, 2014. 191 City of Kenai Council Meeting Minutes Page 10 of 12 May 20, 2014 6. *Ordinance No. 2760-2014 – Accepting and Appropriating $2,050.92 for SART (Sexual Assault Response Team) Exam Reimbursements from the State of Alaska. Introduced by the consent agenda and public hearing set for June 6, 2014. 7. Action/Approval – Non-Objection of Liquor License Renewal for Pink Coyote Limited, Annalea Lott D/B/A Main Street Tap & Grill. MOTION: Vice Mayor Marquis MOVED to authorize the City Clerk to send a letter to the Alcohol Beverage Control Board a Non-Objection of Liquor License Renewal for the as described License; and requested UNANIMOUS CONSENT, Council Member Boyle SECONDED. VOTE: There being no objections, SO ORDERED. 8. Action/Approval – Mayoral Nomination and Council Confirmation of Appointing Albert Weeks to the Council on Aging. MOTION: Council Member Bookey MOVED to confirm the Mayor’s nomination of appointing Albert Weeks to the Council on Aging and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED. VOTE: There being no objections, SO ORDERED. H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – Vice Mayor Marquis reported that the next meeting was May 8th. 2. Airport Commission – Council Member Gabriel reported the May meeting had been cancelled. 3. Harbor Commission – Council Member Molloy reported the next meeting was May 12th and he will be unable to attend. Mayor Porter offered attending as the Liaison for that meeting. 4. Library Commission – No report. 5. Parks and Recreation Commission – No report. 6. Planning and Zoning Commission – No report. 7. Beautification Committee – Council Member Gabriel reported the last meeting did not have quorum but discussed the flower schemes around Kenai. 8. Mini-Grant Steering Committee – No report. 192 City of Kenai Council Meeting Minutes Page 11 of 12 May 20, 2014 I. REPORT OF THE MAYOR Mayor Porter reported that she attended the Special Olympics Torch Run and expressed gratitude for the local Police officers, State Troopers, and Fire Department for the sponsorship they do for that great organization; t was well attended. She also noted that she visited the Mt. View Elementary School and spoke to Kindergartners, thanking them for their effort in raising money for the Animal Shelter. She further noted she attended the Alternative School graduation. J. ADMINISTRATION REPORTS 1. City Manager - The City Manager reported on the following: • Senior Center Vintage Pointe Siting Project was about 40 percent complete and welcomed a visit by Council members; • DOT was here and a public meeting was held regarding Beaver Loop, it was well attended and focused more on the purpose of the project; • Fires are occurring and there is an agreement that may be reached between the City and the entities involved in the fire equipment and doing an inventory on the equipment; • Requested that any questions or issues regarding the budget be brought to Administration prior to the meeting so they have time to follow-up with information and financial details for discussion during the meeting; • The substantial completion was achieved on the Shop and encouraged a visit to see the difference; looking at June 21 for invitation of the community to see it; • A Community Neighborhood Clean-Up was being scheduled and coordinated. 2. City Attorney – The City Attorney reported on the following: • He attended the Anchorage Municipal Lawyers Association and expressed appreciation to attend and found it a valuable experience; • Reminded Council that he would be taking personal leave and be out of office for 2 weeks but would not be appointing outside counsel to represent the City; he would be available via email during his absence; • Would be drafting three Ordinances for various Council Members before the next Council meeting and will email them before his departure. 3. City Clerk – The City Clerk reported that she spent time with the City web designer and hoping it would go live shortly after Memorial Day; suspending any changes to the current website until the new website was live. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments – None. 2. Council Comments Council Member Boyle reported he attended the awards ceremony for High School students and congratulated the Council Student Representative on her several accomplishments. Council Member Molloy thanked all the partners the Kenai Peninsula Birding Festival, it was an excellent event. 193 City of Kenai Council Meeting Minutes Page 12 of 12 May 20, 2014 Council Member Bookey urged everyone to be fire safe right now, very dry weather and thanked the firefighters for their work. Council Member Gabriel thanked Administration on their efforts and the ordinances brought forward. He congratulated to the Council Student Representative and to all the Kenai High School graduates. He further noted he will not be available to attend the June 12 Airport Commission meeting. Mayor Porter thanked Council Member Bookey for talking about the Firefighters. She noted that as citizens of Kenai, we should open our doors in any way possible, and hoped all families were safe. L. EXECUTIVE SESSION – None. M. PENDING ITEMS – None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 9:22 p.m. Minutes prepared and submitted by: _____________________________ Sandra Modigh, CMC City Clerk **The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast in the rotation of the official council vote and shall not affect the outcome of the official council vote. Advisory votes shall be recorded in the minutes. A student representative may not move or second items during a council meeting. 194 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2992-2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, WAIVING THE REQUIREMENTS OF KMC 17.20.010 - MANDATORY CONNECTIONS AND ABANDONMENT OF OLD ON-SITE SEWER SYSTEMS, FOR 2737 ILIAMNA ROAD. WHEREAS, the owner of 2737 Iliamna Road, Mike Chivers, has approached the City to request the waiver of KMC 17.20.010 – Mandatory Connections and Abandonment of Old On-Site Sewer Systems; and, WHEREAS, the sewer service at the four unit apartment building at 2737 Iliamna Road failed; and, WHEREAS, attempts at locating the failure in the sewer line serving this property were unsuccessful; and, WHEREAS, because of the expense and timeliness of installing a sewer main and service line to serve this property, Mike Chivers has requested an exception to the requirements of KMC 17.20.010; and, WHEREAS, if the exception is granted, the owner of 2737 Iliamna Road will continue to pay a monthly fee equal to the amount he would pay if his property was connected to the City sewer system; and, WHEREAS, this will offset the loss of revenue the City would have received through sewer payments meeting the intent of the code provisions being waived to help the City recoup the costs associated with maintaining sewer mains. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a non-code ordinance. Section 2. The requirements of KMC 17.20.010 are hereby waived for 2737 Iliamna Road. Section 3. Mike Chivers will pay the City the monthly fee for sewer service and the City Manager is authorized to execute an agreement memorializing the same Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. 195 Ordinance No. 2992-2017 Page 2 of 2 _____________________________________________________________________________________ The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 5. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 7th day of February, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: December 6, 2017 Public Hearing: January 3, 2018 Postponed to: January 17, 2018 Postponed to: February 7, 2018 Effective: March 9, 2018 196 'ti/ff ate «1/t/i a Pa.f~ Ct'tj «11'tli a h.t~ " 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907 ) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager? a · Sean Wedemeyer, Public Works Director/Capital Projects Manager 5~ lt/ November 6, 2017 Ordinance Waiving KMC 17.20.010 for 2737 lliamna Rd . Mike Chivers has approached the City to request the waiver of KMC 17.20.01 O -Mandatory Connections and Abandonment of Old On-Site Sewer Systems. The request is for 2737 lliamna Rd . An apartment building with four units is located on this parcel. On October 16 one of his tenants made Mr. Chivers aware that sewage was backing up into the building. He called Peninsula Pumping who we re unsuccessful in clearing the sewer service line . He called Rote-Router who lanced the service line for 300'. They did not find an obstruction. Neither contractor had any suggestions to fix his sewer service line. Mr. Chivers paid for an on- site porta-potty and his tenants ' off-site showers while he searched for a solution. On October 17 Brent Jacobs, Water & Sewer Foreman , met with Mr. Ch ivers onsite. It was determined that his service line crossed at least one property line, and was more likely to end in a tank or crib on a different property rather than the City sewer main due to the distance from the main and direction it was heading. Jacobs checked the City mains in the area and found nothing indicating a blockage. Mr. Chivers then met with me, and I explained his options. The solution tha t would have met all City codes and Alaska Department of Conservation (ADEC) regulations, extending our main 200' down lliamna Rd ., would require months to execu te and cost a minimum of $25 ,000. Another solution I detailed was to run a service line parallel to and within the Rig ht of Way. I explained that he could seek permission to do this , but that I would have to report it is not in the best interest of the City. The third option I suggested could be a possibility was an on-site septic system. We called ADEC and determined this was a viable option. I explained to Mr. Chi v ers this option would require City Council to waive KMC 17.2 0 .010, and that he should contact the City Manager, who was out of the office for the remainder of the week. Believing he had no choice due to time constraints, Mr. Chivers immediately contacted a licensed and bonded engineer and contractor and installed an onsite septic system. 197 Page 2 of 2 Mr. Chivers reports that his tenants are low-income , and that witho ut the approva l of this waiver they will likely become homeless , because he cannot afford to extend the City main, and the City would be required to condemn the building without operating sewer faci lities. He has been pay in g a sewer bill since 1992, and would continue to pay for sewer if granted this waiver. He has been paying for water since 2016, when he connected to our main adjacent to his property. Adoption of this ordinance wo uld waive the provisions of KMC 17.20.010 . Th is structure will help recoup the costs associated with maintaining the City sewer mains while avoiding excessive costs for Mr. Chivers . An agreement will be drafted and recorded that will assure that this agreement will go with the property if ownership changes . Your consideration is appreciated . 198 'll/f!Qje «1/t/i a Pa.J'~ Ct~ «1/t/t, a ratw<-e IJ 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager -P. 0 - January 11, 2018 SUBJECT: Ordinance 2992-2017 -Mandatory Connection Waiver, additional requested information This memo provides the additional information requested by Council at their meeting of January 3rd meeting on the above referenced ordinance. Explanation of Sewer Fees Sewer fees are charged in two manners. Flat rate , unmetered accounts, and metered rates. Flat rate accounts are charged according to the business type and other factors which determine the appropriate fee from the City's fee schedule . Metered accounts are charged based upon the number of gallons injected into the City 's system with established minimum billing amounts. Metering of sewage flow is possible however metering typically takes place on incoming water. Metering of water is cleaner and easier than metering sewage. The assumption is that each gallon of water flowing into a structure leaves the structure as sewage. Not a perfect assumption but for the most part materially accurate . In cases , like businesses with lawn irrigation systems, where significant amounts of water flow into a structure but do not result in sewage, secondary meters are allowed to document the non-sewage producing volume of water. Any documented non-sewage producing volume of water will not be charged a per gallon fee for sewage . The following is the potential applicable sewer rates: 1. Schedule A -General Domestic Service Rates (non-metered): • One or two family residence , per family unit $51.42 • Single or double unit apartment, per family unit $51.42 • Apartment, 3 or more units on a single parcel , per family unit - o Single bill assumed by owner $38 .66 o Separate bill $51.42 • Trailers, one or two on single lot, each $51.42 199 Page 2 of 2 Subject • Trailer, 3 or more on single lot o Single billing $38 .66 o Separate billing $51.42 • Boarding houses, per available room $13.88 2. Schedule E -Metered Service: • General usage, per thousand gallons $5.10 • Minimum monthly charge, general usage $76.48 Historical Information on Mr. Chivers account Reviewing Mr. Chivers account, the account was established in 1992 by Mr. Weldon Chivers as Double C Rentals. The account was updated in October 2016 when water connection was made Prior to connecting to City water, the account was charged flat rate for sewer. No overage was billed during the period 1992 through October 2016 because it was flat rate . There have been difficulties in the functioning of Mr. Chivers meters since installation and it appears only recently that accurate readings been made. Since installation of the meter each month with one exception has billed at the monthly minimum . The exception month was billed for excess based upon an estimated read as no reading was available . Subsequent months returned to bills based on monthly minimums. For Mr. Chivers, the flat rate for the 4 plex on the property is $154.64 I month and the monthly minimum charge for sewer on a metered service is $76.48 I month. Potential Whereas Clause A whereas clause could be added to the ordinance that would l imit the length of this wa iver such as: WHEREAS , it is the intent of the City to require the owner of 2737 lliamna Road to connect to the City sewer system when the on-site sewer system on the property is due for replacement. Waiver Agreement The draft waiver agreement is attached for your reference. If the changes proposed by ordinance 3005-2018, amending mandatory connection requirements within the City is approved by Council as drafted, ordinance 2992-2017 w ill no longer be necessa ry as Mr. Chivers will no longer be required to connect to the City sewer system. 200 CITY OF KENAI WATER AND SEWER WAIVER AGREEMENT This Water and Sewer Waiver Agreement is agreed to by and between ___ _ Chivers, an individual, whose Address is 604 Highbush Lane, Kenai , Alaska 99611 and the CITY OF KENAI, an Alaskan home rule municipality with an address of 210 Fidalgo A venue, Kenai , AK 99611. Pursuant to Ordinance No. 2992-2017, the Kenai City Council agrees to waive the mandatory sewer connection requirements as they now exist in KMC 17.20.010 for the following described property : Lot 33 Block 9 and the Northwesterly 53 .60 feet of Lot 32, Block 9, Carl F Ahlstrom Subdivision, according to the Official Plat Thereof, filed under Plat No. K-216, records of the Kenai Recording District, Third Judicial District, State of Alaska on the condition and for the consideration that Weldon S. Chivers, his successors and assigns , agree to pay the monthly sewer fees as if such connections did exist and were utili zed. Included in this agreement is the right of the City to lien the property as if such sewer servi ce s were connected and pro vi ded if any payment is not made. This Agreement, runs with the land , and burdens the land, and shall continue in time until sewer services are no longer offered by the City or its successors and assigns , or the City's Ordinances are changed in a manner that make this agreement no longer applicable, or if the on-site septic system is due for replacement, or the agreement is mutually rescinded by the parties hereto or heirs, s uccessors or assigns of the same. This Agreement is effective as of the date of the la st signature. Page 1of 3 201 GRANTOR: GRANTEE: City of Kenai By:~--------- Date Signature By:~----------- (Print Name) Paul Ostrander Its: City Manager ACKNOWLEDGEMENTS STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) Date The foregoi ng instrument was acknowledged before me this __ day of ______ , 20_, by (Name). Notary Public for the State of Alaska My Commission Expires: _____ _ Page 2of3 202 STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 20_, Paul Ostrander, City Manager of the City of Kenai , Alaska, 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 on behalf of said City . ATTEST: City Clerk SEAL: APPROVED AS TO FORM: Scott Bloom, City Attorney AFTER RECORDING RETURN TO: City of Kenai 210 Fidalgo A venue Kenai , AK 9961 I Page 3of3 Notary Public for the State of Alaska My Commission Expires: _____ _ 203 (This page was intentionally left blank) 204 tlruity1, KENAl,AWKA 'V" CITY OF KENAI Sponso r e d b y: Mayor Gabrie l Council Member Molloy ORDI NA NCE NO. 2993 • 2017 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, AMENDING KENAI MUNICIPAL CODE CHAPTER 14.25-LANDSCAPING/SITE PLAN REGULATIONS, TO REQUIRE LANDSCAPING AND SITE PLANS FOR ALL RETENTION BASINS , COMMERCIAL, INDUSTRIAL AND MULTIFAMILY DEVELOPMENT AND LAND CLEARING IN CERTAIN ZONES IN THE CITY AND MAKING OTHER MATERIAL AND HOUSEKEEPING CHANGES. WHEREAS, Kenai Municipal Code Chapter 14.25-Landscaping/Site Plan Regulations, regulates landscaping and site plan requirements in the City; and , WHEREAS, landscaping plans provide for landscaping and/or the retention of natural vegetation and buffers in conjunction with commercial, industrial and multifamily development, to enhance the community environment and visual character, and to provide attractive and functional separation , providing visual and sound screening barriers or buffers between uses, and reducing erosion and storm runoff; and , WHEREAS , site plans provide for orderly and safe development of the City commensurate with protecting the health , safety and welfare of its citizens, and support the establishment of adequate and convenient open spaces , light and air, in order to avoid congestion of commercial and industrial areas; and , WHEREAS , review and update of the City 's landscaping and site plan ord inance was included in Goal 1: Quality of Life , Goal 2 : Economic Development, and Goal 3: Land Use, in the City's Comprehensive Plan Update 2016; and , WHEREAS, on March 1, 2017 , a draft Ord inance was presented to the City Council with proposed amendments to update Code in order to ensure that landscaping and site plans are approved prior to land clearing even when no build ing permit is requested or required, in order to prohibit land clearing in a manner that conflicts with the purpose and intent of landscaping and site plans ; and , WHEREAS , the draft Ordinance was reviewed by the Planning and Zoning Commission on March 29 , 2017, the Airport Commission on June 8, 2017, the Harbor Commission on July 10 , 2017 and by a joint meeting of the Parks a nd Recreation Commission and Beautification Committee on July 11 , 2017; and , WHEREAS, during the commission and committee review process, on Ma y 17, 2017, Council Members Knackstedt and Glendening introduced Ord inance No . 2960-2017 to prohibit land clearing of more t han 20 percent of vegetation on a lot without an approved Landscaping/Site Plan , which ordinance was enacted by Council on June 7 , 2017 ; and, WHEREAS, the sponsors of Ordinance No. 2960-2017 provided that the intent of the Ord inance was not to take the place of the proposed update ordinance being rev iewed by the Ci t y's various New Text Un derline d ; [DELETED TEXT BRACKETED] 205 Ordinance No. 2993-20 17 Page 2 of 7 commissions and committees, but to be complementary to it, to prohibit indiscriminate land clearing during the 2017 construction season ; and, WHEREAS , several recommendations of the City's committees and comm 1ss1ons are incorporated into this Ordinance, including special provisions for Airport Light Industrial zoned properties and discouragement of the use of invasive species in planting ; and , WHEREAS , the current Ordinance is an update to Code that is more comprehensive than the previously adopted Ordinance No. 2960-2017 in that it addresses performance criteria for Landscaping/Site Plans in addition to requiring an approved Landscaping/ Site Plan before land clearing where applicable, and makes other housekeeping amendments in order to reduce redundancy and improve clarity in in KMC Chapter 14.25 ; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows : Section 1. Form: That this is a code ordinance . Section 2. Amendment of Section 14.25.010 of the Kenai Municipal Code : That Kenai Municipal Code, Section 14.25.010 -Intent, is hereby amended as follows : 14.25.0 10 Intent. (a) Site Plans . It is the intent of this chapter to provide for orderly and safe development of the City commensurate wi t h protecting the health, safety and welfare of its citizens , and to support the establishment of adequate and convenient open spaces, light and air, in order to avoid congestion of commercial and industrial areas with residential zones . (b) Landscaping Plans. It is the intent of th is chapter to provide for landscaping and/or the retention of natural vegetation in conjunction with commercial , industrial and multifamily development within the City of Kenai to enhance the community environment and visual character and to provide attractive and functional separation. providing visual and sound screening barriers or buffers between uses [THE GENERAL PURPOSE OF LANDSCAPING IS TO VISUALLY ENHANCE THE CITY'S APPEARANCE , PROVIDE ATTRACTIVE AND FUNCTIONAL SEPARATION AND SCREENING BETWEEN USES] and reduce erosion and storm runoff. [(C) FOR PURPOSES OF THIS CHAPTER , MUL Tl FAMILY DEVELOPMENT MEANS A FOUR (4) OR MORE FAMI LY DWELLING .] Secti on 3. Deletion of Section 14.25 .015 of the Kenai Municipal Code: That Kenai Municipal Code , Section 14.25.015 -Landscaping /Site Plan for Land Clearing , is hereby de leted as follows : [14.25.015 LAND SCAPI NG/SITE PLAN FOR LAND CLEARING . FOR PROPERTY COVERED UNDER THIS CHAPTER, SUBMITTAL OF A PRELIM INARY LANDSCAPING/SITE PLAN AND APPROVAL BY THE ADMINISTRATIVE OFF ICIAL IS REQUIRED PRIOR TO ANY LAND CLEARING AND/OR TREE CUTTING WHERE SUCH LAND CLEARING AND/OR TREE CUTTING WILL RESULT IN REMOVAL OF New Text Underlined ; [DELET ED TEXT BRACKET ED) 206 Ordinance No. 2993-2017 Page 3 of 7 MORE THAN TWENTY PERCENT OF THE LOT'S EXISTING TREES, SHRUBS , OR NATURAL VEGETATION COVER AS DETERMINED BY THE ADMINISTRATIVE OFFICIAL.] Section 4. Amendment of Section 14.25.020 of the Kenai Municipal Code: That Kenai Municipal Code , Section 14.25 .020 -Application, is hereby Amended as follows : 14.25.020 Application. [THIS]a . Approved Landscaping and Site Plans are required for the following [CHAPTER SHALL APPLY TOt @) All retention basins, [AND] .(Q) Commercial , industrial and multifamily development, [WITHIN THE CITY OF KENAI AND SHALL APPLY TO BOTH THE LANDSCAPING AND SITE PLANS .] ["COMMERCIAL, INDUSTRIAL AND MULTIFAMILY DEVELOPMENT" AND "ALL DEVELOPMENT" SHALL BE DEFINED AS ANY LAND CLEARING AND/OR TREE CUTTING RESULTING IN REMOVAL OF MORE THAN TWENTY PERCENT OF THE LOT'S EXISTING TREES< SHRUBS < OR NATURAL VEGETATION COVER AS DETERMINED BY THE ADMINISTRATIVE OFFICIAL OR IMPROVEMENTS REQUIRING A BUILDING PERMIT FOR NEW CONSTRUCTION OR ANY IMPROVEMENTS OF TWENTY THOUSAND DOLLARS ($20 ,000.00) OR MORE, WHICH ADDS SQUARE FOOTAGE, AND IS: (1) LOCATED ON PROPERTIES WITHIN THE CENTRAL COMMERCIAL (CC), GENERAL COMMERCIAL (CG), LIMITED COMMERCIAL (CL), HEAVY INDUSTRIAL (IH), TOWNSITE HISTORIC (TSH), LIGHT INDUSTRIAL (IL) AND EDUCATION (ED) ZONING DISTRICTS ; OR (2) A MUL Tl FAMILY DEVELOPMENT IN ANY ZONE; OR (3) A CHANGE OF USE AS REQUIRED IN KMC 14.20 .250(A). IT IS UNLAWFUL FOR ANY PERSON TO CONSTRUCT, ERECT OR MAINTAIN ANY STRUCTURE, BUILDING, FENCE OR IMPROVEMENT, INCLUDING LANDSCAPING, PARKING AND OTHER FACILITIES ON PROPERTY REQUIRING A LANDSCAPE/SITE PLAN UNLESS SUCH (c) Land clearing. IMPROVEMENTS ARE CONSTRUCTED OR RECONSTRUCTED IN A MANNER CONSISTENT WITH THE APPROVED PLAN .] [PROPERTIES ZONED RESIDENTIAL (EXCEPT MUL Tl FAMILY DWELLINGS) ARE EXEMPT FROM THIS CHAPTER WITH THE FOLLOWING EXCEPTION : (1) STRUCTURES IDENTIFIED AS A COMMERCIAL OCCUPANCY IN TITLE 4 OF THE KENAI MUNICIPAL CODE LOCATED IN RESIDENTIAL OR MI XED USE ZONES REQUIRING A BUILDING PERMIT FOR NEW CONSTRUCTION OR ANY IMPROVEMENTS OF TWENTY THOUSAND DOLLARS ($2 0,000.00) OR MORE , WHICH ADDS SQUARE FOOTAGE OR A CHANGE OF USE AS REQUIRED IN KMC 14.2 0.25 0(A).] Section 5. Amendment of Section 14.25 .030 of the Kenai Municipal Code : Th at Kenai Municipal Co de, Se ction 14.25.030 -Landscaping/Site Plan -Submittal requ irements , is hereby amended as follows : 14 .25.030-Landscaping/(SJSite [PJP lan-Submittal CRJReguirements. New Text Underlined ; [DELETED TEXT BRACKETED] 207 Ordinance No . 2993-2017 Page 4 of 7 One copy of the landscaping/site plan (eleven inches (11 ") by seventeen inches (17") size) shall be submitted for approval to the Administrative Official prior to the issuance of a building permit. If approved , a zoning permit shall be issued and on file in the Planning Department and the Building Official wi ll be notified . The landscaping/site plan shall be prepared at a minimum scale of one inch (1") equals twenty feet (20') and shall include the following information: (a) Scientific or common name or type of planting materials to be used in the project; (b) Typical planting details; (c ) Locat ion of all planting areas and relationship to buildings, parking areas and driveways ; (d) Ide ntification and location of existing vegetation to be retained ; (e ) Identification and location of non-living landscaping materials to be used ; (f) Identification of on-site snow storage areas ; (g) Drainage patterns; (h) Description of buildings, including building height and ground floor dimensions; (i) Physical features of the property including location of all buildings , ingress and egress , any unusual features of the property which may restrict development or drainage (j) When Storm Water Pollution Prevention Plans (SWPP) are required, a copy of the Plan shall be provided to the City Planner. Section 6. Amendment of Section 14.25 .040 of the Kenai Municipal Code: That Kenai Municipal Code , Section 14.25.040 -Landscaping Plan -Performance Criteria , is hereby amended as follows: 14 .25.040 Landscaping CPJPlan-Performance CCJCriteria. [INTENT . LANDSCAPING REQUIRED UNDER THIS SECTION IS INTENDED TO ENHANCE THE COMMUNITY ENVIRONMENT AND VISUAL CHARACTER AND TO PROVIDE ATTRACTIVE AND FUNCTIONAL SEPARATION TO PROVIDE VISUAL AND SOUND SCREENING BARRIERS BETWEEN USES .] (a) Objectives for Landscaping Plan. An effective landscaping plan should utilize a variety of techniques for achieving the intent of this section. The appropriate placement or retention of vegetation in sufficient amounts will provide the best results. Perimeter, interior, street right-of- way, and parking lot landscaping must be included as components of the overall landscaping plan. {b) Perimeter/Buffer Landscaping . Perimeter/buffer landscaping invol ves t he land areas adjacent to the lot lines within the property boundary. This buffer landscaping serves to separate and minimize the impact between adjacent uses . Buffer landscaping may be desirable along the perimeter of the property to shield vehicular or building lights from adjacent structures and to provide a visual separation between pedestrians and vehicles and commerc ial and residentia l uses. Landscaping adjacent to residential zones shall have landscaping beds/buffers that meet all of the following minimum standards: New Text Underlin ed ; [DELETED TEXT BRA CK ETED] 208 Ordinance No. 2993-2017 Page 5 of 7 (1) Landscaping Beds. Minimum in width equal to the setback along all property lines, which adjoin residential zones, exclusive of driveways and other ingress and egress openings. (2) Screening. Developers are encouraged to maintain natural screening when existing screening meets the intent of this chapter to shield between residential and commercial uses. When natural screening does not exist or is lost due to weather or disease, the following requirements must be used to meet the intent of this chapter: (A) Combination of shrubbery and trees; and/or (B) Fencing . A six-foot (6') high wood fence .. [OR] masonry wall fence or other fence material of similar screening and structural character shall be required only to meet screening of the developed portion of the property. Sections of the fence must be no longer than twenty-five feet (25'). Sections must be off-set a minimum of four feet ( 4') so as not to impede the movement of wildlife. (3) Ground Cover. One hundred percent (100%) within three (3) years of planting and continuous maintenance so there will be no exposed soil. Flower beds may be considered ground cover. (4) Trees and/or shrubs appropriate for the climate shall be included in the landscap ing beds. All trees. shrubs or other vegetation in the required landscaping must be of a stock rated as hardy for the United States Department of Agriculture Climatic Zone 3. It is not the intent to require specific species. however, property owners are encouraged to understand local climate conditions. Property owners are discouraged from planting invasive species as defined by the Alaska Cooperative Extension Service. Property owners are encouraged to contact the Alaska Cooperative Extension Service for a list of plant species which are appropriate for Climate Zone 3. In all cases the materials shall be living and free of defects and of normal health, height and spread as defined by the American Standard for Nursery Stock, ANSU Z 60.1, latest available edition. American Nursery and Landscaping Association . (c) Interior landscaping involves those areas of the property exclusive of the perimeter and parking lot areas. Interior landscaping is desirable to separate uses or activities within the overall development. Screening or visual enhancement landscaping is recommended to accent or complement buildings, to identify and highlight e ntrances to the site , and to provide for attractive driveways and streets within the site . Landscaping may include landscaping beds , trees, and shrubs. (d) Parking Lot Landscaping . Parking lot landscaping involves the land areas adjacent to or within all parking lots and associated access drives. Parking lot landscaping serves to provide vis ual relief between vehicle parking areas and the remainder of the development. It also is desirable for the purpose of improving vehicular and pedestrian circulation patterns . (e) Street right-of-way landscaping softens the impact of land uses along street rights -of- way, but does not obscure land uses from sight. Landscaping beds must meet all of the following minimum standards ; except where properties are adjacent to State of Alaska rights-of- New Text Underlined ; [DELETED TEXT BRACKETED] 209 Ordinance No. 2993-2017 Page 6 of 7 way, the Administrative Officer may approve alternatives, which meet the intent of this section but protect landscaping from winter maintenance damage. (1) Landscaping Beds . Minimum of ten feet (1 O') in width along the entire length of the property lines which adjoin street rights-of-way, exclusive of driveways and other ingress and egress openings ; (2) Ground Cover. One hundred percent ( 100%) ground cover of the landscaping bed within three (3) years of planting and continuous maintenance so there will be no exposed soil; (3) Trees and/or shrubs appropriate for the cl imate shall be included in the landscaping beds. (f) Review. The Administrative Official may consider plans for amendments if problems arise in carrying out the landscaping/site plan as originally approved . Section 7. Amendment of Section 14.25.080 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.080 -Expiration, is hereby amended as follows: 14.25.080 Expiration. If [CONSTRUCTION OF] the project has not started within one (1) year of approval of the landscaping/site plan, the approval may be revoked by the Administrative Official after providing at least thirty (30) days' notice unless extended for good cause. Section 8. Enactment of Section 14.25.085 of the Kenai Munic ipal Code : That Kenai Municipal Code, Section 14.25.085 -Airport Light Industrial , is hereby enacted as follows: 14.25.085 Airport Light Industrial On all properties within the Airport Light Industrial Zone (ALI), landscaping and site plan requirements as provided in this Title will only apply to areas on lots that the public has access to. and shall not require landscaping or site plans on runway or apron portions of lots. The Airport Master Plan . Airport Layout Plan and Federal Aviation Administration requ irements and regulations (including but not limited to deed restrictions and requ irements. aviation easements and grant requirements) shall take precedent over any landscaping or site plan requirement. Section 9. Amendment of Section 14.25.090 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.090 -Penalties, is hereby amended as follows: 14.25.090 Penalties. No person may cut trees. (other than the cutting of dead trees for firewood or fire protection) construct. erect or maintain any structure. building . fence or improvement. including landscaping. parking and other facilities on property requiring a landscape/site plan unless such improvements are constructed or reconstructed in a manner cons istent with the approved plan. Penalties for noncompliance with this chapter shall be as set forth by KMC 14.20.260. Section 10. Amendment of Section 14.25 .015 of the Kenai Municipal Code : That Kenai Municipal Code , Section 14.25 .100 -Landscaping , is hereby amended and renamed as follows : New Text Underlined; [DELETED TEXT BRACKETED] 210 Ordinance No . 2993-2017 Page 7 of 7 14.25.100 Definition [-LAN DSCAPI NG]. (a) "Land clearing " for purposes of this chapter means tree cutting or other means of removal of trees and established vegetation. other than the cutt ing of dead trees for the purpose of firewood collection or fire protection. on properties within the Central Commercial (CC), Central Mixed Use (CMU), General Commercial (CG). Limited Commercial (CL), Heavy Industrial (IH). Townsite Historic (TSH). Light Industrial (IL), Airport Light Industrial (ALI) and Education (ED) zoning districts. except for purposes of construction of single to three fam ily dwellings. fQ} "Landscaping " means the treatment of the ground surface with live planting materials , including but not limited to, trees , shrubs , grass, ground cover or other growing hort icultural material. Other materials such as wood chips , stone , or decorative rock may also be utilized . (c) "Commercial. industrial and multifamily development" for purposes of this Chapter means any commercial or industrial improvements. requ iring a building permit for new construction or any improvements of twenty thousand dollars ($20 .000.00) or more . which adds square footage , and is: (1) located on properties within the Central Commercial (CC). Central Mixed Use (CMU), General Commercial (CG), Limited Commercial (CL), Heavy Industrial (IH). Townsite Historic (TSH). Light Industrial (IL), Airport Light Industrial (ALI) and Education (ED) zoning districts ; or (2) a multifamily development in any zone ; or (3) a change of use as required in KMC 14.20.250(a). (d) "Multifamily development" for purposes of this C hapte r means a four (4) or more family dwelling . Sect ion 10 . Severability: That if any part or provision of this ordinance or application thereof to any perso n or circumstances is adjudged invalid by any court of competent jurisdiction , such judgment shall be confine d in its operation to the part, provision , or application directly involved in a ll contro versy in which this judgment shall have been rendered, and shall not affect or impa ir the validity of the remainder of this title or application thereof to othe r persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application . Section 11 . Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY T HE COUNCIL OF THE CITY OF KENAI , ALASKA , this 3rd day of January, 2018. ATTEST: Jam ie Heinz, Ci ty Clerk BRIAN GABRIEL, MAYOR Introduced : December 6, 2017 Enacted : January 3 , 2017 Effective : February 2 , 2017 New Text Underlined; [DELETED T EXT BRACK ETED] 211 rl!/ff ate «1/th a Po.if~ Ct'tf «1/th a Fat~ " 210 Fidalgo Ave, Kena i, Alaska 99611-7794 Telephone : (907) 283-7535 I Fa x: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: Mayor Brian Gabriel and Kenai City Council City Attorney, Scott M. Bloom ! 6 November 30, 2017 DATE: SUBJECT: Ordinance No. 2993-2017 This memorandum provides a sectional analysis of the changes proposed in Ordinance 2993- 2017. 1. 14.25.010-lntent, is amended in subsection (b) to provide that the intent of landscape plans is to enhance the community environment and visual character and to provide attracti ve and functional separation, providing visual and sound screening barriers or buffers between uses and reduce erosion and storm runoff. Th is intent language replaces the following: "the general purpose of landscaping is to visually enhance the city 's appearance, provide attractive and functional separation and screening between uses ." Subsection (c) is deleted , as the definition of "mul ti -fa mily" is newly included in the definitions section (14.2 5.100). 2. 14.25.015-Landscaping/ Site Plan for Land Clearing , is deleted in its entirety. Rather than requiring a landscape/ site plan for clearing that remo ves more th an 20 percent of the natural vegetation, the proposed ordinance requires a land scape/ site plan for all land clearing within certain zones for commercial , industrial and multifami ly development as provided in 14.25.020 and the definitions section . 3. 14.25.020-Application, is amended to requ ire a landscape/ site plan for all re ten tion basins , commercial and multi-family development, and land clearing with in certa in zones as pro vi ded in the definitions section (except for residential development of a th ree famil y dwelling or less ). 4 . 14.25.030-Landscaping/ Site Plan-Submittal Requiremen ts, is amended by adding subjection U) which requires submittal of a Storm Water Pollution Prevent ion Pla n to the Planning Department when such a plan is required by the Alas ka Department of Environmental Conservation. 5 . 14.25.040-Landscaping Plan-Performance Criteria, is ame nded to delete the in tent language w hich is previously covered in 14.2 5.010 . Subsection (b )(2 )(B) is amended to allow for greater diversity in fencing materia ls other than wood or masonry. Subsection(b)(4) is amended to specify that planted trees and shrubs in landscaping beds must be a stock rated as hard y fo r the United States De partment of Agriculture Climatic Zone 3 as well as meet other specific criteria as defined in the American Stan da rd for Nursery Stock, ANSU Z 60 .1, lates t ava ilab le edition , American 212 Page 2 of 2 Subject Nursery and Landscaping Association. Changes also include encouraging contact with the Alaska Cooperative Extension Service and discourag ing the planting of invasive species . 6. 14.25.080-Expiration , is amended to require that the proj ect be started in one year from approval of a landscape/ si te plan , as opposed to "construction " of the project because land clearing itself requires the plans , but does not necessaril y entail any "construction." 7. 14.25.085-Airport Light Industrial , is a newly enacted section t o specific that plans are only required in the ALI Zone on parcels that the public has access to and are not requ ired on portions of lots containing runway or apron space . This section further specifies that FAA requirements and regulations , the Airport Master P lan and Airport Layout Plan take precedent over any landscape/ site plan requirements. 8 . 14.20.090-Penalties, is amended to define the prohib ited conduct, i.e . land clearing or const ru ction without or not in comp liance with an approved plan, but does not change the existing penalty provisions for the chapter which refer back to the enforcement procedures and penalties in the City 's Zoning Code , Chapter 14.20. 9 . 14.25.1 00-Definitons , is amended by changing the title from "Landscap ing " to "Definitions." A new definition of "land clearing " is added. This new definition defines land clearing as tree cutting or removal of trees and other established vegetation, other tha n cutting of dead trees for firewood or fire protection within the Central Commercial (CC), Central Mixed Use (CMU), General Commercial (CG ), Limited Commerc ial (CL), Hea vy Industrial (IH), Townsite Historic (TSH), Light Industria l (IL ), Airport Light Industrial (ALI) and Education (ED) zoning districts, except for purposes of construction of three family or less dwellings. By virtue of this definition and prior amendments in the ordinance, all land clearing is prohibited without first obtaining a landscape / site plan. A definition of "Commercial, industrial and multifamily development" is also added to the definitions. Commercial and industrial development is defined as improvements requiring a building permit for new construct ion or any improvements of twenty thousand do llars ($20,000.00) or more, which adds square footage in the Central Commerc ial (CC), Central Mi xe d Use (CMU), General Commercial (CG), Limited Commercial (CL), Heavy Industrial (IH), Towns ite Historic (TSH), Light Industrial (IL ), Airport Light Industrial (ALI ) and Education (ED) zoning districts. Multifamily dwellings in all zo nes , defined as a four or more family dwelling require plans, as well as change s of use as requi red in KMC 14.25.250(a). 213 "Vtl/a3e with a Past, City with a Future" 210 Fidalgo Ave nue, Kena i, A laska 99611-7794 Te lephone: 907-283-7535 /FAX: 907-283-3014 www.kenai.city MEMORANDUM TO: FROM: Council Members Boyle, Glendening, Knackstedt, Navarre, Pettey, & Student Representative Gilman Mayor Gabriel & Council Member Molloy November 28, 2017 DATE: SUBJECT: Ordinance No. 2993-2017, Amending KMC Chapter 14.25 Landscaping/Site Plan Regulations Review and update of the City's landscaping and site plan ordinance was included in the City's Comprehensive Plan Update 2016, in Goal 1: Quality of Life, Goal 2: Economic Development, and Goal 3: Land Use. This review and update began as a draft ordinance that Council referred to the Planning & Zoning Commission and Airport Commission for review and recommendations. The draft ordinance was also referred to the Harbor Commission, Parks & Recreation Commission and the Beautification Committee. During the Commissions-Committee rev iew process, Council enacted Ordinance No. 2960-2017 on June 7, 2017 (sponsored by Council Members Glendening and Knackstedt). That ordinance amended KMC 14.25.020 Application to prohibit land clearing of more than 20 percent of the lot's existing trees , shrubs, or natural vegetation cover without there first being an approved Landscaping/ Site Plan, even when a building pennit is not required for development. This ordinance further amends KMC 14.25.020 Application, to prohibit all land clearing of the lot's existing trees , shrubs, or natural vegetation cover without there first being an approved Landscaping/ Site Plan. The C ity Planner's memo dated 9/27 /17 , summarizing the comments/recommendations of the Commissions and Committee, and presenting the City Planner's recommendations, i s included in this packet. Regarding that memo , we included in this propo sed ordinance some, but not all , of the recommendations from the process of the Commissions-Committee review. We did include in this ordinance the following reconm1endations: (1) Limit landscaping and landscaping/site plans on lots zoned Airport Light Industrial (ALI) to areas on the lots that the public has access to (parking lots, dri veways , sidewalks, etc.), and not require landscaping or site plans on runway or apron portions oflots; (2) Incorporate language that prohibits or discourages planting of in vasive s pecies defined by the Alaska Cooperative Extension Service. 214 2 (3) Add language on hardiness of species for planting; (4) Incorporate language that a ll ows some fl exibi lity on type of fencing other than six-foot (6') high wood fence or a masonry wall fence; (5) Add Central Mixed Use zo ning district. We did not include in this ordinance the following recommendations; (1) Include lighting requirements similar to ALI ; (2) Include Residential Zoning; (3) Include requirements fo r fire protection around homes and businesses; ( 4) In corporate language that promotes fire protection in the wi ldl and/urban interface as en couraged by the Firewise Communities/USA program ; (5) Incorporate language that requires residential app lication for Spec Home development; (6) Add residential development for new single-family and multi-family development; (7) Add residential development as a definition; (8) Completely exempt Airport Light Industrial Zone. Central M ixed Use and Airpo rt Light Industrial Zones are proposed to be added to the scope of coverage, but not any re sidential zones, (although multifamily de velopment -regardless of zo ne - is included in the scope of coverage, as it has been ever since the original ordinance was enacted in 2006). Special prov isions were added in order to address the Commissions-Committee's recommendations on the ALI Zone, in proposed new code section KMC 14.25.085 Airport Light Industrial. The City Attorney's updated memo, presenting a sectional anal ys is of each of the sponsors' recommended chan ges to KMC Chapter 14.25, is includ ed in thi s packet, so that memo presents th e specifics of a ll recommended changes. We respectfull y request Council 's support of this ordinance. 215 TO: FROM: DATE: SUBJECT: 'Vtfl'~ «1/t/r, a Pa~~ Ot'tj «1/t/r, a !"at~ 11 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone: (907) 283-75351 Fax: (907) 283-3014 www.kenai.city Mayor Brian Gabriel and Council Member Molloy Matt Kelley, City Planner September 27, 2017 Ordinance Amending Landscaping and Site Plan Regulations At their meeting of March 1 , 2017, the City Council referred a d raft Ordinance amending Landscapi ng and Site Plan Regulations to the Planning & Zoning Commission and Airport Commission. Staff held a Work Session with the Planning & Zoning Commiss ion on March 29, 20 17 to discuss the proposed Ordinance and received the following comments I recommendations: a. Review past Ordinances to see if Land Clearing required a Landscape Site Plan and see if it was later removed from the Ordinance by the City Council. b . Look at lighting requirements in Airport Light Ind ustrial Zone and see if they should apply to landscaping on commercial and industrial zoned parcels. c. Look at Residential Zoning to see if landscaping site plan regulations should apply to new construction. Soldotna has landscaping requirements for new construction in their landscaping ordinance . Look at other communities as well (Pa lm er, Wasilla , Homer, and Seward). d . Look at requirements for fire protection around homes and businesses. Talk with Fire Marshal and State of Alaska Di vision of Forestry and Borough. e. Look at airport and consider having landscaping for new development only apply to areas that the public has access to (parking lots, driveways , sidew alks, etc.) Not require landscaping on the runway or apron portion of lot. f. Give the draft Ordinance to other Commissions and Committees as informationa l or discussion item for their comments. (Airport , Parks & Recreation , Beautification , Harbor). Staff attended the regular meeting of the Airport Commission to discuss the proposed Ordinance and how it would pertain to those parcels , which are zoned Airport Light Industrial (A LI ). Staff discussed with the Commission , that a developer who is constructin g new improvements on the Airport, would be required to add landscaping pursuant to the proposed Ord inance. 216 Page 2 of 3 Ordinance No. 2977-2017 Memorandum Staff suggested to the Commission, that landscaping on parcels zoned ALI could be limited to only those areas, which are accessible by the public. This would include, but not limited to , parking lots, side yard, walk areas, front areas adjacent to roads, and other similar areas, which the public would have unrestricted, access. In addition, other amendments could include limiting the height of landscaping so than an obstruction to aircraft would not be created. After discussion, the Airport Commission unanimously voted to recommend that the proposed Ordinance amending the Landscaping and Site Plan Regulations exempt the Airport Light Industrial Zone . Staff attended the Harbor Commission meetings of July 10, 2017 and August 7 , 2017 . Staff discussed the Commission how Landscaping and Site Plans are currently required for parcels zoned both Heavy and Light Industrial. Furthermore, staff discussed that the proposed Ordinance would apply to the clearing of parcels of trees and vegetation with no development plan . After discussions with the Harbor Commission, they voted to recommend that the City Council approve the proposed Ordinance. Staff attended a Special Joint Meeting of the Parks & Recreation Commission and the Beautification Committee to discuss the proposed Ordinance and received the following comments I recommendations: a. Invasive Species -incorporate language that prohibits or discourages planting of invasive species defined by the Alaska Cooperative Extension Service. b. Fencing -incorporate language that allows some flexibility on type of fencing other than six-foot (6') high wood fence or a masonry wall fence. c . Fire Safety -incorporate language that promotes fire protection in the wildland/urban interface as encouraged by the Firewise Communities/USA program. d . Spec Homes -incorporate language that requires residential application for Spec Home development. At their Special Joint Meeting, the Parks & Recreation Commission and the Beautification Committee voted to recommend that the City Council approve the proposed Ordinance, with the above recommendations . Staff Recommendations After reviewing the above-discussed recommendations by the Planning & Zoning Commission, Airport Commission, Harbor Commission , Parks & Recreation Commission and Beautification Committee staff would like to offer the following recommendations for possible inclusion into the proposed Ordinance. a . KMC 14.25.040 -Landscaping Plan -Performance Criteria a. Consider adding the following language: Hardiness -Kenai generally lies within the United State Department of Agriculture climatic Zone 3 . All trees, shrubs, or other vegetation in the required landscaping shall be of a stock rated as hardy for this Climate Zone. 217 Page 3 of 3 Ordinance No. 2977-2017 Memorandum It is not the intent of this title to require the use of individual species ; howeve r, property owners are encouraged to understand the local climate and to use p lant species to be hardy. Property owners discouraged from planting invasive species as defined by the Alaska Cooperative Extension Service. Property owners are encouraged to contact the Alaska Cooperative Extension Service for a list of plan t species which are appropriate to this Climate Zone . In all cases , the plant materials shall be living and free of defects and of norma l health, height, and spread as defined by the American Standard for Nursery Stock , ANSI 260.1, latest available edition , American Nursery and Landscaping Association . b . KMC 14.25.020 -Application a. Consider adding residential development for new single-family and multi-famil y development. c . KMC 14.25 .100 -Definition a . Consider adding residential development as definition. b. Consider adding Central Mi xed Use zoning District. c. Consider not requiring Landscaping Site Plans fo r Airport Light Industrial District. Thank you for your consideration. 218 14.20 .065 Airport Light Industrial Zone (ALI). http://www.qcode.us/codes /kenai /view .php?topic= 14-14_20-l 4_2 ... l of 2 Kenai Municipal Code YI> Pre~ious ,Mext Title 14 PLANNING AND ZONING Chapter 14 .20 KENAI ZONING CODE Main 14.20.065 Airport Light Industrial Zone (ALI). ~a rch f.rint No Frames (a) Intent: The ALI Zone is established to protect the viability of the Kenai Municipal Airport as a significant resource to the community by encouraging compatible land uses, densities and reducing hazards that may endanger the lives and property of the public and aviation users. Industrial and Commercial uses which are usually compatible with aviation users are permitted which have no nuisance effects upon surrounding property, or which may be controlled to prevent nuisance effects upon surrounding property. New residential uses are not permitted in this zone because it is intended that lots classified in the ALI Zone are reserved for aviation-related commercial and industrial uses. (b) Principal Permitted Uses: Necessary Aviation Facilities and as allowed in Kenai Municipal Code Section 14.22 .010 -Land Use Table. (c) Conditional Uses: As allowed in Land Use Table and subject to the provisions of this chapter and Kenai Municipal Code Section 14 .20.150. (d) Accessory Uses: As defined (see Definitions). (e) Home Occupations : Not Permitted. (f) Development Requirements: (1) No use shall be conducted in a manner which is noxious or injurious to nearby properties by reason of the production or emission of dust, smoke, refuse matter, odor, gas fumes, noise, vibration, or similar substances or conditions, provided that the restriction against noise shall not apply to uses located within two thousand (2,000) feet of the airfield runways. (2) No outdoor open storage shall be located closer than twenty-five feet (25') to the adjoining right- of-way of any collector street or main thoroughfare. (3) Wherever an Airport Compatible Use abuts or is separated by an alley or street from a residential zone, the use or building in the ALI Zone shall be screened by a sight-obscuring eight-foot (8') high fence or vegetation of good appearance acceptable to the City of Kenai. ( 4) No use shall be made of any land that will cause interference with navigational signals or radio communications at the airport or with radio or electronic communications between the airport and aircraft. (5) No use, building or structure shall emit emissions of fly ash , dust, vapor, gases or other forms of emissions that may conflict with any planned operations of the airport or aircraft. (6) All exterior lighting shall be installed in such a manner that will not shine light or allow light glare to exceed the boundaries of the parcel on which it is placed. All exterior lighting shall be positioned so that it is downcast and shielded. These requirements shall not apply to lighting which is installed for the purposes of aiding in aircraft navigation as required and approved by the Federal Aviation Administration. (7) No use shall be permitted that would foster an increase in bird population and thereby increase the likelihood of a bird-impact problem as defined under the most recent Federal Aviation Administration 150/5200 Advisory Circular (AC), "Hazardous Wildlife Attractants on or Near Airports." (8) No structure, device or other object shall be placed or erected that makes it difficult for pilots to 1/31/18 11:06 AM 219 14.20.065 Airport Light Industrial Zone (ALI). http://www.qcode.us/codes/kenai/v iew.php?topic= 14-14_20-l 4_2 ... 2of 2 distinguish between airport lights and other lights , results in glare in the eyes of pilots using the airport, impairs visibility in the vicinity of the airport, or otherwise endangers the landing, taking off or maneuvering of aircraft. (9) Except as necessary and incidental t o airport operations, no building, structure or object of natural growth shall be constructed, altered, maintained, or allowed to grow so as to project or otherwise penetrate the airspace surfaces as defined by the Federal Aviation Administration in : Federal Aviation Regulation (FAR) Part 77, "Safe, Efficient Use and Preservation of the Navigable Airspace"; and under the most recent Federal Aviation Administration Order 8260.3, United States Standard for Terminal Instrument Procedures (TERPS) as shown in the City of Kenai Airport Master Plan and on the City of Kenai Airport Layout Plan. ( 10) Construction of any and all buildings, structu res, or any obstruction s, whether permanent or temporary shall be subject to filing a "Notice of Proposed Construction or Alternation" as required under Title 14, Code of Federal Regulations, Part 77 , of the United State Code. ( 11) Other uses or activities determined to be incompatible with aviation and aviation safety as determined by the City Manager the final decision of the City Manager may be appealed to the Board of Adjustment as provided in Kenai Municipal Code 14.20.290. (12) Additional Requirements in Development Requirements Table. (g) Parking Requirements: As required by this chapter and Chapter 21.05 -Airport Administration and Operation . (Ord. 2884-2016) View the mobi le version . 1/31/18 11:06 AM 220 CITY OF KENAI ORDINANCE NO. 2960-2017 Sponsored by: Council Member's Knackstedt and Glendening AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE 14.25.015-LANDSCAPING/SITE PLAN FOR LAND CLEARING, AND KENAI MUNICIPAL CODE 14.25.020-APPLICATION, TO PROHIBIT LAND CLEARING OF MORE THAN TWENTY PERCENT OF A PARCEL WITHOUT AN APPROVED LANDSCAPING/SITE PLAN . WHEREAS , Kenai Municipal Code Chapter 14.25-Landscaping/Site Plan Regulations, regulates landscaping and site plan requirements in the City; and , WHEREAS , landscaping plans provide for landscaping and/or the retention of natural vegetation for commercial, industrial and multifamily development, to enhance the community environment and visual character, and to provide attractive and functional separation , provid ing visual and sound screening between uses, and reducing erosion and storm runoff; and , WHEREAS, site plans provide for orderly and safe development of the City commensurate with protecting the health, safety and welfare of its citizens, and support the establishment of adequate and convenient open spaces, light and air, in order to avoid congestion of commercial and industrial areas; and, WHEREAS , amendments to KMC Chapter 14.25 are needed to ensure that landscaping and site plans are approved prior to land clearing that will result in removal of more than 20% of existing trees , shrubs or natural vegetation even when no building permit is requested or required, in order to prohibit land clearing in a manner that conflicts with the purpose and intent of landscaping and site plans ; and, WHEREAS, while a more comprehensive review of KMC Chapter 14.25 is being conducted by the Planning and Zoning Commission , as well as other City commissions, this Ordinance is needed at this time to prohibit land clearing without a landscape/site plan during this construction season . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance. Section 2. Amendment of Section 14.25.015 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.015 -Landscaping/site plan for land clearing , is hereby amended as follows : 14.25.015 Landscaping/[S]~ite [P]flan for [LJ.band [C]~learing. For property covered under this chapter, submittal of a prelim in a ry landscaping/s ite plan and approval by the administrative official is required prior to any land clearing and/or tree cutting where such land clearing and/or tree cutting [REMOVAL] will resul t in removal of [LESS] more N ew Text Underlined: !DELETED TEXT BRACKETED) 221 Ordinance No. *-2017 Page 2 of 2 than [TWENTY-FIVE PERCENT (25%)] twenty percent of the lot~ [AREA HAVING] existing trees, shrubs , or natural vegetation cover as determined by the administrative official. Section 3. Amendmen t of Section 14.25.020 of the Kenai Municipal Code: That Kena i Municipal Code, Section 14.25.020 -Application , is hereby amended as follows: 14.25.020 Application. This chapter shall apply to all retention basins and commercial , industrial and multifamily development within the City of Kenai and shall apply to both the landscaping and site plans . "Commercial , industrial and multifamily development" and "all development" shall be defined as any land clearing and/or tree cutting resulting in remova l of more than twenty percent of the lot's existing trees, shrubs , or natural vegetation cover as determined by the admi nistrative official o r improvements requiring a building permit for new construction or any improvements of twenty thousand dollars ($20,000.00) or more, which adds square footage, and is : ( 1) located on properties within the Central Commercial (CC), General Commercial (CG), Limited Commercial (CL), Heavy Industrial (IH), Townsite Historic (TSH), Light Industrial (IL) and Education (ED) zoning districts; or (2) a mult ifamily development in any zone ; or (3) a change of use as required in KMC 14.20.250(a). It is unlawful for any person to construct, erect or maintain any structure , building, fence or improvement, including landscaping, parking and other facilities on property requiring a landscape/site plan unless such improvements are constructed or reconstructed in a manner consistent with the approved plan . Properties zoned residential (except multifamily dwellings) are exempt from this chapter with the following exception : (1) structures identified as a commercial occupancy in Title 4 of the Kenai Municipal Code located in residential or mixed use zones requiring a building permit for new construction or any improvements of twenty thousand dollars ($20,000 .00) or more, which adds square footage or a change of use as required in KMC 14.20.250(a). Sect ion 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction , such judgment shall be confined in its operation to the part, provision , or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or i·mpair the validity of the remainder of this title or application the reof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ord inance even without s uch part , provision, or application. Section 5. Effective Da te: T hat pursuant to KMC 1.15.070(f), this ordinance shall ta ke effect 30 days after adoption. ENACTED BY THE COUNCIL OF T HE CITY OF KENAI , ALASKA, this 7th day of June, 2 017 . ,4;-; ~ r . BRIAN GABRIELSR:MAYOR New Text Underlined; [DELETED TEXT BRACKETED] Introduced : May 17, 2017 Enacted : June 7, 201 7 Effective: July 7, 2017 222 'Vitiate «Jt'th tl PaJ't, Ct~ «Jt'th fi ratfl.P'e II the ct"ly of~ KENAI, ALASKA "V' 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Council Member's Knackstedt & Glendening ~ May 17, 2017 Kena i Municipal Code 14.25 This Ordinance is introduced to prohibit land clearing and tree cutting, resulting in removal of more than 20% of existing trees, shrubs or natural vegetation on commercial , industrial and multifamily lots. It prohibits land clearing and tree cutting without a landscape/site plan , even when a building permit is not required. It also requires a landscape/site plan when more than 20% of the trees, shrubs or natural vegetation is removed, as opposed to the current code, which allows removal of 75% of the same . A more comprehensive proposed Ordinance regarding KMC Chapter 14.25 sponsored by Mayor Gabriel and Council Member Molloy is currently being reviewed by several of the City's commissions and likely will not be effective this season . This Ordinance is not intended to take the place of the proposed Ordinance currently being worked on. Instead , it is intended as a complimentary solution, to prohibit indiscriminant land clearing and tree cutting that is inconsistent with the intent of KMC Chapter 14.25 this season. As the migratory bird season comes to a c lo se on July 15th, developers may want to conduct activities prior to the more comprehensi ve Ordinance taking effect. Your cons ideration of this Ordinance is appreciated . 223 CITY OF KENAI ORDINANCE NO. *-2017 Sponsored by: Mayor Gabriel Councilmember Molloy AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE CHAPTER 14.25-LANDSCAPING/SITE PLAN REGULATIONS, TO REQUIRE LANDSCAPING AND SITE PLANS FOR ALL RETENTION BASINS, COMMERCIAL, INDUSTRIAL AND MULTIFAMILY DEVELOPMENT AND LAND CLEARING IN CERTAIN ZONES IN THE CITY AND MAKING OTHER HOUSEKEEPING CHANGES. WHEREAS, Kenai Municipal Code C h apter 14.25-Landscaping/ Site Plan Regulations, regulates landscaping and site plan requirements in the City; and, WHEREAS, landscaping plans provide for landscaping and/ or t h e retention of natural vegetation and buffers in conjunction w ith commercial, industrial and multifamily development, to enhance the community e nvironment and visual c h aracter, and to provide attractive and functional separation, providing visual and sound screening barriers or buffers between uses, and reducing erosion and storm runoff; and, WHEREAS, site plans provide for orderly and safe development of the City commensurate with protecting the health, safety and welfare of its citizens, and support the establishment of adequate and convenient open spaces, light and air, in order to avoid congestion of commercial and industrial areas; and, WHEREAS, amendments to code are needed to ensure that landscaping and site plans are approved prior to land clearing even when no building permit is requested or required, in order to prohibit land clearing in a manner that conflicts with the purpose and intent of landscaping and s ite plans; and, WHEREAS, other housekeeping amendments are required to reduce redundancy and improve clarity in KMC Chapter 14.25 . NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1. Form: That this is a code ordinance. Section 2. Amendment of Section 14.25.01 0 of the Kenai Municipal Code : That Kenai Municipal Code, Section 14.25.010 -Intent, is hereby amended as follows: 14.25.010 Intent. (a) Site Plans. It is the intent of this chapter to provide for orderly and safe devel opment of the C ity commensurate with protecting the health, safety and welfare of Page 47 of 82 224 its citizens, and to support the establishment of adequate and convenient open spaces, light and air, in order to avoid congestion of commercial and industrial areas with residential zones. (b) Landscaping Plans. It is the intent of this chapter to provide for landscaping and/ or the retention of natural vegetation in conjunction with commer c ial, industrial and multifamily development to enhance the commu nity environment and visual character and to provide attractive and functional separation, providing visual and sound screening barriers or buffers between uses [THE GENERAL PURPOSE OF LANDSCAPI NG IS TO VISUALLY ENHANCE THE CITY'S APPEARANCE, PROVIDE ATTRACTIVE AND FUNCTIONAL SEPARATION AND SCREENING BETWEEN USES] and reduce erosion and storm runoff. [(C) FOR PURPOSES OF THIS CHAPTER, MULTIFAMILY DEVELOPMENT MEANS A FOUR (4) OR MORE FAMILY DWELLING.] Section 3 . Deletion of Section 14.25.015 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.015-Landscaping/Site Plan for Land Clearing, is hereby deleted as follows: [14.25.015 LANDSCAPING /SITE PLAN FOR LAND CLEARING. FOR PROPERTY COVERED UNDER THIS CHAPTER, SUBMITTAL OF A PRELIMINARY LANDSCAPING/SITE PLAN AND APPROVAL BY THE ADMINISTRATIVE OFFICIAL IS REQUIRED PRIOR TO ANY LAND CLEARING AND/OR TREE CUTTING WHERE SUCH REMOVAL WILL RESULT IN LESS THAN TWENTY -FIVE PERCENT (25%) OF THE LOT AREA HAVING EXISTING TREES, SHRUBS, OR NATURAL VEGETATION COVER AS DETERMINED BY THE ADMINISTRATIVE OFFICIAL.] Section 4. Amendment of Section 14.25.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.020 -Application, is hereby Amended as follows: 14.25.020 Application. [THIS]a. Approved Landscaping and Site Plans are required for the following [CHAPTER SHALL APPLY TO L. illl All retention basins, [AND] 1.hl Commercial, industrial and multifamily development, [WITH IN THE CITY OF KENAI AND SHALL APPLY TO BOTH THE LAND SCAPING AND SITE PLANS.] ["COMMERCIAL, INDUSTRIAL AND MULTIFAMILY DEVELOPMENT" AND "ALL DEVELOPMENT" SHALL BE DEFINED AS ANY IMPROVEMENTS REQUIRING A BUILDING PERMIT FOR NEW CONSTRUCTION OR ANY IMPROVEMENTS OF TWENTY THOUSAND DOLLARS ($20,000.00) OR MORE , WHICH ADDS SQUARE FOOTAGE, AND IS: (1) LOCATED ON PROPERTIES WITHIN THE CENTRAL COMMERCIAL (CC), GENERAL COMMERCIAL (CG), LIMITED COMMERCIAL (CL), HEAVY INDUSTRIAL (IH), TOWNSITE HISTORIC (TSH), LIGHT INDUSTRIAL (IL) AND EDUCATION (ED) ZONING DISTRICTS; OR (2) A MULTIFAMILY Page 48 of 82 225 DEVELOPMENT I N ANY ZONE; OR (3) A CHANGE OF USE AS REQUIRED I N KMC l 4.20.250(A). IT IS UNLAWFUL FOR ANY PERSON TO CONSTRUCT, ERECT OR MAINTAIN ANY STRUCTURE, BUILDING, FENCE OR IMPROVEMENT, INCLUDING LA NDSCAPING, PARKING AND OTHER FACILITIES ON PROPERTY REQUIRING A LANDS CAPE/SITE PLAN UNLESS SUCH 1£1 Land clearing. IMPROVEMENTS ARE CONSTRUCTED OR RECONSTRUCTED IN A MANNER CONSISTENT WITH THE APPROVED PLAN.] [PROPERTIES ZONED RESIDENTIAL (EXCEPT MULTIFAMILY DWELLINGS) ARE EXEMPT FROM THI S CHAPTER WITH THE FOLLOWING EXCEPTION: (1) STRUCTURES IDENTIFIED AS A COMMERCIAL OCCUPANCY IN TITLE 4 OF THE KENAI MUNICIPAL CODE LOCATED IN RESIDENTIAL OR MIXED USE ZONES REQUIRING A BUILDING PERMIT FOR NEW CONSTRUCTION OR ANY IMPROVEMENTS OF TWENTY THOUSAND DOLLARS ($20,000.00) OR MORE, WHICH ADDS SQUARE FOOTAGE OR A CHANGE OF USE AS REQUIRED IN KMC 14.20.250(A).J Section 5. Amendment of Section 14.25.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.030 -Landscaping/site plan -Submittal r equirements, is hereby amended as follows: 14.25.030 Landscaping/[S)§.ite [P)~lan-Submittal [R]Requirements. One copy of the landscaping/ site plan (eleven inches ( 11 ") by seventeen inches (17 ") size) shall be submitted for approval to the Administrative Official prior to the issuance of a building permit. If approved, a zoning permit shall be issued and on file in the Planning Department and the Building Official will b e notified. The landscaping/site plan shall be prepared at a minimum scale of one inch (1 ") equals twenty feet (20') and shall include the following information: (a) Scientific or common name or type of planting materials to be used in the project; (b) Typi cal planting details; (c) Location of all planting areas and relationship to buildings, parking areas and driveways; (d) Identification and location of existing vegetation to be retained; (e) Identification and location of non-living landscaping materials to b e used; (f) Identification of on-site snow storage areas; (g) Drainage patterns; (h) D escription of buildings, including building height and ground floor dimensions; (i) Physical features of the property including location of all buildings, ingress and egress, any unusual features of the property which may restrict development or drainage Page 49 of 82 226 (j) When Stormwate r Pollution Prevention Plans (SWPP) are required, a copy of the Plan shall be provided to the City Planner. Section 6 . Amendment of Section 14.25.040 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.040 -Landscaping Plan-Performance Criteria, is hereby amended as follows: 14.25.040 Landscaping [P]~lan-Performance [C]Criteria. (INTENT. LANDSCAPING REQUIRED UNDER THIS SECTION IS INTENDED TO ENHANCE THE COMMUNITY ENVIRON MENT AND VISUAL CHARACTER AND TO PROVIDE ATTRACTIVE AND FUNCTIONAL SEPARATION TO PROVIDE VIS UAL AND SOUND SCREENING BARRIERS BETWEEN USES.] (a) Objectives for Landscaping Plan. An effective l andscaping plan should utilize a variety of techniques for achieving the intent of this section. The appropriate place ment or retention of vegetation in sufficient amount will provide the best results. Perimeter, interior, street right-of-way, and parking lot landscaping must be included as components of the overall landsca ping plan . (b) Perimeter /Buffer Landscaping. Perimeter /buffer landscaping involves the land areas adjacent to the lot lines within the property boundary. This buffer landscaping serves to separate and minimize the impact between adjacent uses. Buffer landscaping may be desirable along the perimeter of the property to shield vehicular or building lights from adjacent structures and to provide a visual separation between pedestrians and vehicles and commercial and residential uses. Landscaping a dj acent to residential zones shall have landscaping beds/buffers that meet all of the following minimum standards: (1) Landsca ping Beds. Minimum in width equal to the setback along all property lines, which adjoin reside ntial zones, exclusive of driveways and other ingress and egress openings. (2 ) Screening. Developers are encouraged to maintain natural screening when existing screening meets the intent of this chapter to shield b e tween residential and commercial uses. When natural screening does not exi st or is lost due to weather or disease, the following r e quirements must be used to meet the intent of this chapter: (A) Combination of shrubbery and trees; and/or (B) Fencing. A six-foot (6') high wood fence or m asonry wall fence shall be require d only to meet scr eening of the develope d portion of the prope rty . Sections of the fence must b e no longe r than twenty-five feet (25'). S ections must be off-set a minimum of four feet (4') so as not to impede the movement of wildlife. (3 ) Ground Cover. One hundre d p ercent (100%) within three (3) years of planting and continuous maintenance so there w ill be no exposed soil. Flowe r b eds m ay be considered ground cover. Page 50 of 82 227 (4) Trees and/or shrubs appropriate for the climate shall be included in the landscaping beds. (c) Interior landscaping involves those areas of the property exclusive of the perimeter and parking lot areas. Interior landscaping is desirable to separate uses or activities within the overall development. Screening or visual enhancement landscaping is recommended to accent or complement buildings, to identify and highlight entrances to the site, and to provide for attractive driveways and streets within the site. Landscaping may include landscaping beds, trees, and shrubs. (d) Parking Lot Landscaping. Parking lot landscaping involves the land areas adjacent to or within all parking lots and associated access drives. Parking lot landscaping serves to provide visual relief between vehicle parking areas and the remainder of the d evelopment. It also is de sirable for the purpose of improving vehicular and pedestrian circul ation patterns. (e) Street right-of-way landscaping softens the impact of land uses along street rights-of-way, but does not obscure land uses from sight. Landscaping b eds must meet all of the following minimum standards; except where properties are adjacent to State of Alaska rights-of-way, the Administrative Officer may approve alternatives, which meet the intent of this section but protect landscaping from winter maintenance damage. (1) Landscaping Beds . Minimum of ten feet (10') in width along the entire length of the property lines which adjoin str eet rights-of-way, exclusive of driveways and other ingress and egress openings; (2) Ground Cover. One hundred percent (100%) ground cover of the landscaping bed within three (3) years of planting and continuous maintenance so there will be no exposed soil; (3) Trees and/ or shrubs appropriate for the climate shall be included in the l andscaping beds. (f) Review. The Administrative Official may consider p lans for amendments if problems arise in carrying out the landscaping/site p lan as originally approved. Section 7. Amendment of Section 14.25.080 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.080 -Expiration, is hereby amended as follows: 14.25.080 Expiration. If [CONSTRUCTION OF) the project has not started within one (1) year of approval of the landscaping/ site plan, the approval may be revoked by the Administrative Official after providing at least thirty (30) days' notice unless extended for good cause. Section 8. Amendment of Section 14.25.090 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.090 -Penalties, is hereby amended as follows: 14.25.090 Penalties. Pag e 51of82 228 No person may cut trees, (other than the cutting of dead trees for firewood or fire protection) construct, erect or maintain any structure, building, fence or improvement, including landscaping, parking and other faci lities on property requiring a landscape/site plan unless such improvements are constructed or reconstructed in a manner consistent with the approved plan. Penalties for noncompliance with this chapter shall be as set forth by KMC 14.20.260. Section 9. Amendment of Section 14.25.015 of the Kenai Municipal Code: That Kenai Municipal Code, Section 14.25.100 -Landscaping, is hereby amended and renamed as follows: 14.25.100 Definition [-LANDSCAPING]. (a) "Land clearing" for purposes of this chapter means tree cutting or other means of removal of trees and established vegetation, other than the cutting of dead trees for the purpose of firewood collection or fire protection, on properties within the Central Commercial (CC), General Commercial (CG), Limited Commercial (CL), Heavy Indu strial (IH), Townsite Historic (TSH). Light Industrial (IL), Airport Light Indu strial (ALI) and Education (ED) zoning districts . .LW. "Landscaping'' means the treatment of the ground surface with live planting materials, including but not limited to, trees, shrubs, grass, ground cover or other growing horticultural material. Other materials such as wood chi ps, stone, or decorative rock may also be utilized. (c) "Commercial, industrial and multifamily development" and "all development" for purposes of this Chapter means any improvements requiring a building permit for new construction or any improvements of twenty thousand dollars ($20,000.00) or more, which adds square footage, and is: (1) l ocated on properties within the Central Commercial (CC), General Commercial (CG), Limited Commercial (CL), Heavy Indu strial (IH), Townsite Historic (TSH). Light Industrial (IL), Airport Light Industrial (ALI) and Education (ED) zoning districts; or (2) a multifamily development in any zone; or (3) a change of use as required in KMC 14.20.250(a). (d) "Multifamily development" for purposes of this Chapter means a four (4) or more family dwelling. Section 10. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or appli cation. Section 11. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. Pag e 52 of 82 229 ENACTED BY THE COUNCIL OF THE CITY OF KENA I, ALASKA, this * day of*, 2017 . ATTEST: Sandra Modigh, City Clerk BRIAN GABRIEL, MAYOR Page 53 of 82 Introduce d: *, 20 17 E nact ed: *, 2017 Effective: *, 20 17 230 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: FEBRUARY 7, 2018 VENDOR DESCRIPTION PERS PERS HOMER ELECTRIC ELECTRIC USAGE ENSTAR NATURAL GAS GAS USAGE INVESTMENTS VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT VARIOUS LIABILITY 88 ,707.14 VARIOUS UTILITIES 119,469.34 VARIOUS UTILITIES 33 ,764 .34 MATURITY DATE AMOUNT Effect. Int. 231 PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: FEBRUARY 7, 2018 VENDOR DESCRIPTION DEPT. UNIVAR CALCIUM CHLORIDE STREETS INCREASE OF EXISTING PURCHASE ORDER VENDOR DESCRIPTION P.O. # -DEPT. ACCOUNT AMOUNT OPERATING SUPPLIES 20 ,400 .00 REASON AMOUNT TOTAL PO AMT 232 "Vt1/tlje with a Pas; City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 MEMORANDUM TO : FROM : DATE: RE: David Ross, Chief of Police Willie Anderson, Lands Manager Terry Eubank, Finance Department Scott Bloom, Legal Department Matthew Kelly, City Planner ~ie Heinz, City Clerk (j January 19, 2018 Liquor License Renewal ltlad --'1111.' 1992 The Alcoholic Beverage Control Board has sent notification that the following applicant has applied for renewal of its Liquor License No. 4740: Applicant: Hector Santana D/B/A: Acapulco Mexican Restaurant Pursuant to KMC 2.40 .010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. Please review account(s) maintained by your department (i.e . water and sewer billings, lease/property payment history, citations, etc.) by the above reference applicant. Initial whether account(s) and/or payment plan(s) are current or delinquent. If accounts are delinquent, attach information to this memorandum indicating amounts owed and for which accounts. Please let me know if you have any questions. Once you have completed your section , please route to the next department. Thanks! 1. Police Department 1> .€. initials (;}(have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. 0 The ap~ has outstanding obligations and an additional page has been attached . 2 . Finance ::z.L. initials ""{lJ I have reviewed all records for my department and the applicant is current on obligations or obl igations do not exi st. 0 The applicant has outstanding obligations and an additional page has been attached . 3~1 r 1 initials lJ:(J I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. 0 The applicant has outstanding obligations and an additional page has been attached . 4~nds Management "14.,initials ~ I have re vi ewed all records for my department and the applicant is current on obligations or obligations do not exist. Orhe ap · nt has outstandj.ng obligations and an additional page has been attached . 5. Plan · g and Zoning ,A./ L initials I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. Orhe applicant has outstanding bligations and an additional page has been attached . Returned to Clerk's office : J.-l 233 THE STATE 01ALASKA GOVERNOR BILL \h.,T ALKER January 18, 2018 City of Kenai Attn: Jamie Heinz, Deputy City Clerk VIA Email: jheinz@kenai.city Cc: cityclerk@kenai.city joanne@bo rough.kenai.ak .us jblankenship@borough.kenai.ak.us kring@borough .kenai .ak .us Departme nt of Commerce, Community, and Econom ic Deve lopm e nt AL COHO L & M ARIJ UANA CONTRO L OFF ICE 550 West 7t h Avenue, Sui t e 1600 Anchorage , AK 99 501 Main: 9 0 7.2 69.0 3 50 Re: Notice of 2018/2019 Liquor license Renewal Application License Type: Restaurant/Eating Place I License Number: I 4740 Licensee: Hector Santana Doing Business As: Acapulco Mexican Restaurant We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required u nder AS 04.11.480. A local governing body may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the director and the applicant with a clear and conci se written statement of reasons for the protest w ithin 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting ofthe local governing body, as required by 3 AAC 304.145(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit your written protest within 60 days, and show proof of service upon the applicant and proof that the applicant ha s had a reasonable opportunity to defend the application before a meeting of the local governing body. Sincerely, Erika McConnell, Director amco.loca lgovernmentonly@alaska .gov 234 AMCO Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Office 550 W 7•h Avenue, Suite 1600 Anchorage, AK 99501 alcohol.licensing@alaska .gov https://www.commerce.al aska .gov/web/amco Phone: 907.269.0350 Master Checklist: Renewal Liquor License Application License Type: REP-Public Convenience I License Number: Doing Business As: Acapulco Mexican Restaurant Examiner: Gcu-r ~ I Transaction #: Document Received Completed Notes AB-17 : Renewal Application 11/21/2017 '/ 1-z- App and Licen se Fees 11/21/2017 l( ( -z.., :supp1emeiifal Document ___ -Receivecr--completed Notes ____ - Tourism/Rec Site Statement AB-25: Supplier Cert (WS) AB-29: Waiver of Operation AB-30: Minimum Operation Fingerprint Cards & Fees I AB-08a: Crim . History Late Fee Names on FP Cards: Selling alcohol in response to written order (package stores)? Mailing address different than one in database? In "Good Standing" with CBPL (skip this and next question for sole proprietor)? Officers and stockholders match CBPL and database (if "No", determine if transfer necessary)? [Master Checklist: Renewal) (rev 11/03/2017) 14740 I 1017738 ------ Yes No D El D fa DD DD Page lofl 235 Alaska Alcoholic Beverage Control Board Restaurant or Eating Place License Alcohol and Marijuana Control Office 550 W 7th Avenue, Suite 1600 Anchorage, AK 99501 alcohol.licens1n g@a laska .gov ht t ps.//www.comm erce .alaska .gov/web /amco Phone : 907 .269.0350 Form AB-17a: 2018/2019 Renewal License Application What is this form? This renewal license applicat ion form is required for all individuals or entities seeking to apply for renewal of an existing restaurant or eating place liquor license that will expire on December 31, 2017 . All fields of this form must be complete and correct, or the application will be returned to you in the manner in which it was rece ived , per AS 04.11.270 and 3 AAC 304 .105. The Community Counci l field only shou ld be verified/completed by licensees whose establishments are located within the Municipality of Anchorage or outside of city limits within the Matanuska-Susitna Borough. This form must b e (.OrYlpleted correctly and submitted t" the Alcohol & Mc:rijuana Control Office (AMCO)'s main office, along with all other required documents and fees, before any renewal license application will be considered complete. --i!stablishmentand Contact Information Enter information for the business seeking to have its license renewed. If any populated information is incorrect, please contact AMCO . Licensee: Hector Santana License#: 4740 License Type: Restaurant/Eating Pl ace -Public Convenience Statute: AS 04.11 .400(g) Doing Business As: Acapulco Mexican Restaurant Premises Address: 10672 Kenai Spur Hwy Ste 108 Local Governing Body: City of Kenai (Kenai Penin sula Borough) Community Council : None Mailing Address: (C G. 7 .~ k-< '~~ )ol.{ v H-i {.· .. , 51--e 106 City: ~l h &l ,· I State: I A l I ZIP: I 71<i'r1 Enter information for the individual who will be designated as the primary point of contact regarding this application. This individual mu st be a licensee who is re uired to b e li sted in and authorized to sign this application. Point of Contact: Contact Phone: Business Phone: Contact Email: - Yes -1 Seasonal License? No I21 If "Yes", write your six-month operating period: -~)V_"_c_·_·J __ S_.P_·ll_.S_1_~_t_cl_.~(- [Form AB-17a) (rev 10/16/2017) Page 1 of S Licen se #4740 OBA Acapulco Mexican Restau rant ll..1 236 Alaska Alcoholic Beverage Control Board Restaurant or Eating Place License Alcohol and Marijuana Control Office 550 W 7 th Ave nue, Suite 1600 Anchorage, AK 99501 alcoho l.l ice nsing@alaska.gov https://www.commerce.alaska.gov/web/amco Phone : 907.269.0350 Form AB-17a: 2018/2019 Renewal License Application Section 2 -Authorization Communication with AMCO staff: Does any person other than a l icensee named in this application have authority to discuss this license with AMCO staff? If ''Yes", disclose the name of the individual and the reason for this authorization: Yes No ---Section-3-=-Sofe?r~r~torownershiplnf"'orma ion ~ This section must be completed by any so le proprieto rship who is applying for license re newal. Entities should skip to Section 4 . If more space is needed, please attach a separate sheet with the req1;1ired information. The following i nformation must be completed for each licensee and each affiliate (sp o use). This individual is an: ~ applicant D affiliate Name: If-t> {ft• ,,.--S C1 V\ +t, 'V-t_ Mailing Address: I 0&1-;)__ lc.tt'\£(.,\. ~(>IA. y--41 Wvj St e_ Io& City: (<:..< • "\..CL l I State: I A1:: I ZIP: I 11~11 Email: - Contact Phone: C/ a -1 -15~ ~ l-/31 () This individual is an : D applicant D affiliate Name: Mailing Address: City: I State: I I ZIP: I Email : Contact Phone: [Form AB-17a] (rev 10/16/2017) Page 2 of S License #4740 OBA Acapulco Mexican Restau rant 237 Alaska Alcoholic Beverage Control Board Restaurant or Eating Place License Alcohol and Marij uana Control Office 550 W 7•h Avenue, Suite 1600 Anchorage , AK 99501 al cohol .licensing@a laska .gov https ://www.commer ce .alaska .gov/web/amco Phone : 907.269.0350 Form AB-17a: 2018/2019 Renewal License Application Section 4 -Entity Ownership I nformation This subsection must be completed by any licensee that is a corporation or LLC. Corporations and LLCs are required to be In good standing with the Alaska Division of Corporations, Business & Professional Licensing (CBPL}. You may view your entity's status or find your CBPL entity number by vising the following site: https://www.commerce .alaska .gov/cbp/main/search/entities Partnerships may skip to the second half of this page. Sole proprietorships should skip to Section 5. I Alaska CBPL Entity#: You must ensure that you are able to certify the following stc:tement before signing your lr.ltials in the box to the right: I certify that this entity i s in good standing with CBPL and that all current entity officials and stakeholders (listed below) are also currently and accurately listed with CBPL. initials D This subsection must be completed by any community or~ including a corporation, limited liability company, partnership, or limited partnership, that is applying for renewal. If more space is needed, please attach additional completed copies of this page. • If the applicant is a corporation, the following information must be completed for each stockholder who owns 10% or more of the stock in the corporation, and for each president, vice-president, secretary, an d managing officer. • If the applicant is a limited liablllty organization, the following information must be completed for each member with an ownership interest of 10% or more, and for each manager. • If the app lican t is a partnership. including a limited partnership, the following information must b e completed for ea ch partner with an interest of 10% or more, and for each general partner. Entity Official Name : Title(s): I Phone: I I %Owned: I Mailing Address: City: I State: I I ZIP: I Entity Official Name: Title(s): I Phone: I I %Owned: I Mailing Address: City: I State: I I ZIP: I Entity Official Name: Title(s): I Phone: I I %Owned: I Mailing Address: City: I State: I I ZIP : I [Form A8-17a] (rev 10/16/2017) Page 3 of S License #4740 OBA Acapu lco Mexica n Restaurant 238 Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Office 550 w 7•h Avenue, Sui te 1600 Anchorage, AK 99501 alcohol.licensing@alaska.gov htt ps ://www.commerce.alaska.gov/web /amco Phone : 907.269 .0350 Restaurant or Eating Place License Form AB-17a: 2018/2019 Renewal License Application Section 5 -License Operation Check a single box for each calendar year that best describes how this liquor license was operated: The license was regularly operated continuously throughout each year, for 8 or more hours eac h day. The l icense was regularly operated during a specific season each year, for 8 or more hours each day. The l icense was only operated to meet the minimum requirement of 30 days each year, 8 hours each day. If this box is checked, a complete copy of Form AB-30: Proof of Minimum Operation Checklist, and oil necessory documentation must be provided with this application. The l icense was not operated at all or was not operated for at least the minimum requirement of 30 days each year, 8 hours each day, during one or both of the calendar years. -lfthis box is checked, acomplete copy of Form AB -29: Waiver of Operation Application and corresponding fees must be submitted with this application for each calendar year during which the license was not operated for at least the minimum requirement. Section 6 -Violations and Convictions Applicant violations and convictions In calendar years 2016 and 2017: Have any notices of violation (NOVs) been issued to this l i censee in the calendar yea rs 2016 or 2017? Has any person or entity named in this application been convicted of a violation of Title 04, of 3 AAC 304, or a loca l ordinance adopted under AS 04.21.010 in the calendar years 2016 o r 2017? 2016 2017 [){] ~ DD D D DD Yes No If ''Yes" to either of the previous two questions, attach a separate page to this application listing all NOVs and/or convictions. Section 7 -Alcohol Server Education Read the line below, and then sign your initials in the box to the right of the statement: I certify that all licensees, agents, and employees who sell or serve alcoholic beverages o r chec k i dentification of a patr on have compl eted an alcohol server education course approved by the ABC Board ahd keep cu rrent , valid cop ies of t heir course completi on cards on the licensed premises during all working hours, as required under AS 04 .21 .025 and 3 AAC 304.465 . [Form AB-17a) (rev 10/16/2017) Li cense #4740 OBA Acapulco Mexican Resta ura nt Initials Page4 of 5 239 Alaska Alcoholic Beverage Control Board Restaurant or Eating Place License Alcohol and Marij uana Control Office 550 W 7•h Avenue, Su ite 1600 Anchorage, AK 99501 alco hol .li ce nsing@ alaska.gov https://www .co mmer ce.alaska .gov/web/amco Phone: 907.269.0350 Form AB-17a: 2018/2019 Renewal License Application Section 8 -Gross Receipts Enter the dollar amounts of the food and gross (food + alcohol) receipts on the licensed premises, and calculate the percentage of gross receipts that are from food sales on the licensed premises for each calendar year. (Food Recei ts.;. Gross Receipts x 100 = %) 2016 Food Receipts: · 2.-4{] 2016 Gross Receipts: % From Food: C\ =f. q % 2017 Food Receipts: 2017 Gross Receipts: % From Food: l.2 .l.}l 2Jo Sectccn 9 -Cortific:~icns Read each line below, and then sign your initials in the box to the right of each statement: Initials ___ _!s.erti.fvJ~i!H!~.rrent licfillsees .l~ defi111tQ_in...AS_0_4 .11.2_60.) and affiliates..halle..been listed on this applicatlOA-.· I certify that in accordance with AS 04.11.450, no one other than the licensee(s) has a d irect or indirect financial interest in the licensed busi ness . t certify that I have not altered the functional floor plan or reduced or expanded the area of the licensed p remises, and I have not changed the business name or the ownership (i ncluding officers, managers, general partners, or stakeholders ) from what is currently on file with the Alcoholic Beverage Control Board . I certify on behalf of myself or of the organized entity that I understand that providing a false statement on this form or any other form provided by AMCO i s grounds for rejection or denia l of this application o r revocati on of any license iss ued. As an applicant for a liquor license renewal, I decl are under penalty of perjury that I have read and am familiar with AS 04 and 3 AAC 304, and t at is application, including all accompanying schedules and statements, is true, correct, and complete. t agree to provide all inforn\al required by the Alcoholic Beverage Control Board in support of t his application and understand that fail ure to do so by any diXei( :l ven to me by AMCO staff will result in this application bei ng returned to me as incomplete. •'· ·~~-~of:_~ Signature of li ce~e ~ \ ~~"'~ --,,..~~natur.e of Notary Public \ \ c cX 6 ~ ,CXJ <:1--(\cl .~·;·~· NJ~lfi~~gt1:~~1~ the t ate of f+L,k: Prin\ed name of licensee .. y~-;i; 'IOtnr) PL t..I r St3l'J !Jf /";s~a J ~ . 'v~.. '· C:in·11 .·er•_ 1 P' ·"' .. ~ .• _ ission expires : l'J __ c..e._.. _...,.,~-...::::~~?-=~~ ~ , Subscribed and sworn to before me this -7!::_ day of ,rJCV.&u,1,,k , 201..2_. License Fee : $ 600.00 Application Fee: $ 200.00 TOTAL: $ 800.00 Late Fee of $500.00 -if received or postmarked after 01/02/2018: Miscellaneous Fees: GRAND TOTAL (if different than TOTAL): [Form AB-17a) (rev 10/16/2017) [, license #4740 OBA Acapulco Mexican es uran 1 7. 'ln1 ALCOHOL MARr~UANA CON TROl OFFICE ____ _.;!..ST~A~TE~O~~A~l~ASK=:.:A ____ _ Page SofS 240 ~ .,;. ~ , Office of the Borough Clerk R o \,) 144 North Bink ley Street, Soldotna, Alaska 99669 • (907) 714-2160 • (907) 714-2388 Fa x 1/22/2018 Sarah Daulton-Oates Records & Licensing Supervisor Alcohol & Marijuana Control Office 550 W 7th Ave, Ste . 1600 Anchorage, Alaska 99501-3567 Johni Blankenship, MMC Borough Clerk RE: Non-Objection of Renewal Application Business Name License Type License Location License No. Dear Ms. Oates, Acapulco Mexican Restauran t Restaurant/Eating Places -Public Convenience 10672 Kenai Spur Hwy Ste. 108, City of Kenai 4740 This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection to this renewal application. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Johni Blankenship , MMC Borough Clerk JB/klr Encl. cc: Applicant City of Kenai KPB Finance Department File 241 "Vt1/a3e with a Past, City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 MEMORANDUM TO: FROM: DATE : RE : David Ross, Chief of Police Willie Anderson, Lands Manager Terry Eubank, Finance Department Scott Bloom , Legal Department Matthew Kelly, City Planner ~mie Heinz, City Clerk U January 19, 2018 Liquor License Renewal ~ ,1111.' 1992 The Alcoholic Beverage Control Board has sent notification that the follow ing applicant has applied for renewal of its Liquor License No. 4555: Applicant: D/B/A : Pink Coyote Limited Main Street Tap & Grill Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. Please review account(s) maintained by your department (i.e. water and sewer billings, lease/property payment history, citations , etc.) by the above reference applicant. Ini ti al whether account(s) and /or payment plan(s) are current or delinquent. If accounts are delinquent, attach information to this memorandum ind icating amounts owed and for which accounts. Please let me know if you have any questions. Once you have completed your section , please route to the next department. Thanks! 1. Police Department J>t? · initials 81 have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. 0 The appl!:.J)l has outstanding obligations and an additional page has been attached . 2. Finance Z ~ · initials "-8 I have reviewed all records for my department and the appl icant is current on obligations or obligations do not exist. 0 The applicant has outstanding obligations and an additional page has been attached. 3~al I 1 initials L.:1 1 have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. 0 The applicant has outstanding obligations and an additional page has been attached. 4~nds Management UM>--initials l.!'.:.l I have reviewed all records for my d epartment and the applicant is current on obligations or obligations do not exist. Orhe applicant has outst¥9iJlg obligations and an additional page has been attached . 5. Planning and Zoning ~initials (~h have reviewed all records for my department and the applicant is current on obligations or obl igations do not exist. Drhe applicant has outstanding obligations and an additional page has been attached . Returned to Clerk's office : -''+-'~......._.~- 242 THE STATE 01ALASKA GOVERNO R BILL WALKE R January 18, 2018 City of Kenai Attn: Jamie Heinz, Deputy City Clerk VIA Email: jhe i nz@kenai.city Cc : cityclerk@kenai.city joanne@borough .kenai .ak .us jblankenship@borough.kenai.ak .us kring@borough.kenai.ak.u s Department of Commerce, Community, and Economic Development ALCO HOL & MARIJ UA NA CON TR OL OFFICE 550 West 7th Avenue, Suite 1600 Anch o rage, AK 9950 1 Main : 907.269 .0 350 Re: Notice of 2018/2019 Liquor License Renewal Application License Type: Beverage Dispensary -Tourism I License Number: j 4555 Licensee: Pi n k Coyote Limited Doing Business As : Main Street Tap & Grill We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under AS 04.11.480. A local governing body may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the d irector and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304.14S(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit yo ur written protest within 60 days, and show proof of service upon the applicant and proof that the applicant has had a rea sonable opportunity to defend the application before a meeting of the local governing body. Sincere ly, Erika McConnell, Director amco.localgovernmentonly@alaska .gov 243 ' ~ Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Ofha 550 w 7th Avenue, Su ite 1600 Anchorage, AK 99501 alcohol .llcens ing@a laska .gov https://www.comm erce .alaska .gov/w eb /amco Phone : 907.269.0350 Master Checklist: Renewal liquor License Application License Type: BO-Tourism I License Number: Doing Business As: Main Street Tap and Grill Examiner: lhrru I Transaction #: Document Received Completed Notes AB-17: Renewal Application 12/22/2017 "~ App and License Fees 12/22/2017 ' ' l ( -·-· _. ~-~· Supplemental Document Received Completed Notes Tourism/Rec Site Statement 12/22/2017 '1 1=L> AB -25: Supplier Cert (WS) AB-29: Waiver of Operation AB -30: Minimum Operation Fingerprint Cards & Fe es I AB-08a: Crim . History Late Fee Names on FP Cards: Selling alcohol in res ponse to written order (pac kage stores)? Mailing address different than one In database? In "Good Standing" with CBPL (skip this and next question for sole proprietor)? Officers and stockholders match CBP L and database (if "No", determine if transfer necessary)? 14555 I 1017870 --. - Yes No og D~ GD E1 D [Master Checklist: Ren ewal) (rev 11/03/2017) Page lofl 244 Alaska Alcoholic Beverage Control Board Beverage Dispensary -Tourism License Alcohol and Marijuana Control Office 550 W 7t11 Avenue , Suite 1600 Anchor age, AK 99501 alcohol .licens ing@alaska.gov https://www.commerce .alaska .gov/web/amco Phone : 907.269.0350 Form AB-17d: 2018/2019 Renewal License Application What is this form? This renewal license application form is required for all individuals or entities seek ing to apply for re newal of an existi ng beverage dispensary-tourism liquor license that will expire on December 31 , 2017. All fields o f this form must be comp lete and correct, or the application w ill be returned to you in the manner in which it was receive d, per AS 04.11.270 and 3 AAC 304.105. The Community Council field only should be verified/completed by licensees whose establish ments are located within the Municipality of Anchorage or outside of city limits within the Matanuska-Susitna Borough . This form must be completed correctly and submi tted to the Alcohol & Marijuana Control Office (AMCO)'s main office, along w ith all other required documents and fees, before any renewal license application will be considered complete. ~---------·-· ----------·------------------··--- Section 1 -Establishment and Contact Information Enter information for the busi ness seeking to have its license renewed. If any populated information is incorrect, pl ease contact AMCO . Licensee: Pink Coyote Limited License#: 4555 License Type: Beverage Dispensary -Tourism Statute: AS 04.11.400{d) Doing Business As: Main Street Tap & Grill Premises Address: 10800 Kenai Spur Highway Local Governing Body: City of Kenai (Kenai Peninsula Borough) Community Council: None Mailing Address: City: A IL ZIP: Enter information for the individual who w i ll be designated as th e primary point of contact regard ing this application . This individual must be a licen see who is r e uired to be listed in and authorized to sign this a plication. Point of Contact: Contact Phone: Business Phone: Contact Email: Yes No Seasonal License? D [2?J If "Yes", write your six-month operating period:------------ [Form AB-17d) (rev 10/16/2017) Pa ge 1 of S License 114555 OBA Main Street Ta p & Grill 245 Alaska Alcoholic Beverage Control Board Beverage Dispensary -Tourism License Alcohol and Marijuana Control Office 550 W 7th Avenue, Suite 1600 Anchorage, AK 99501 :i lcohol.licensing@alul-a gov https ://www.com merce .alaska,gov/web/amco Phone: 907.269.0350 Form AB-17d: 2018/2019 Renewal License Application Section 2 -Authorization Communication with AMCO staff: Does any person other than a licensee named in this applicat ion have authority to discuss this license with AMCO staff? If ''Yes", disclose the name of the individual and the reason for this authorization: Yes No --··--.. ----Section 3-=So1e-Ptopr1etor -ownership Information ____ -------- This section must be completed by any sole proprietorship who is applying for license renewal. Entities should skip to Section 4. If more space is needed, please attach a separate sheet with the required information. The following information must be completed for each licensee and each affiliate (spouse). This individual is an: D applicant D affiliate Name: Mailing Address: City: I State: I I ZIP: I Email: Contact Phone: This Individual is an: D appli cant D affiliate Name: Mailing Address: City: I State: I I ZIP: I Email: Contact Phone: Page 2of S [Form AB-17d] (rev 10/16/2017) License #4555 OBA Main Street Tap & Gri ll i r -- 246 AMCO Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Office 550 W 7•• Ave nue, Suite 1600 Anchorage, A K 99501 dl1 o hol.lic ~m i ng ~!!l.1 .. il.1 gov l !l j•.1 ~ //wwwi£ll!.l.11 11t 1 u~.,dit sk a .P.(>-.1J.v.1~!1 /.1 n 1 to Phone: 907.269.0350 Beverage Dispensary -Tourism License Form AB-17d: 2018/2019 Renewal License Application Section 4 -Entity Ownership Information This subsection must be completed by any licensee that is a corporation or llC. Corporations and LLCs are required to be In good standing with the Alaska Division of Corporations, Business & Professional licensing (CBPL). You may view your entity's status or find your CBPL entity number by vising the following site: https'://www.co m merc e .a la ska:iov/cbp /ma in/s earch /ent itie s Partnerships may skip to the second half of this page. Sole proprietorships should skip to Section 5. I Alaska CBPL Entity #: I I 090 </t 3 7 You must ensure that you are able to certify the following statement before signing your initials in the box to the right: I certify that this enlity is in good standing with CBPL and that all current entity officials and stake holders (l isted below) are also currently a nd accurately listed with CBPL. Initials ~ ----··--·--·-------·---------·------ This subsection must be completed by any community or entity, intluding a corporation, limited liability company, partnership, or limited partnership, that is applying for renewal. If more space is needed, please attach additional completed copies of this page. • If the applicant is a corporation, the following information must be completed for each stockholder who owns 10% or more of the stock in the corporation, and for each president, vice-president, secretory, and managing officer. • If the applicant is a limited liability orcaniz:ation. the following information must be completed for each memb er with an ownership interest of 10% or more, and for each manager. • If the applicant is a partnership. including a limited partnership, the following informati on must be completed for each partner with an interest of 10% or more, and for each general partner. Entity Official Name: Tltle(s): %Owned: So Mailing Address: City: ZIP : Entity Official Name: Title(s): %Owned: Mailing Address: City: ZIP: Entity Offi cial Name: Title(s): ] Phone: 1 I %Owned : I Mailing Address : Ci t y: I State: I I ZIP: I @rs~rs nt (Form AB·17d) (rev 10/16/2017) ~ Page 3 of 5 license #4555 OBA Main Street Tap & Grill ALCOH OL MAR IJUAN/. STATE OF 247 Alaska Alcoholic Beverage Control Board Alcohol and M arijuana Control Office 550 W 7th Avenue, Suite 1600 Anchorage, A K 99501 alcohol .licenslng@a laska .gov https://www.co mmerce.alaska.gov/w eb/amco Phone: 907.269.0350 Beverage Dispensary -Tourism License Form AB-17d: 2018/2019 Renewal License Application Section 5 -License Operation Check a single box for each calendar year that best describes how this liquor license was operated: The license was regularly operate d continuously throughout each year, for 8 or more hours each day. The license was regularl y operated during a specific season each year, for 8 or more hours each day. The license was o n ly operated to meet the min imum requirement of 30 days each year, 8 hou rs each day. If this box is checked, a complete copy of Form AB-30: Proof of Minimum Operation Checklist, and all necessary documentat ion must be provided with this opplication . 2016 2017 [2]~ DD DD The l icense w as not operated at all o r was not operated for at least the minimum requirement of 30 days each year, D _D 8 hours ea~h ~~y. duri_rl_g one or both of !.hEt~l.!!nd;i.Lye_cir.:;. _ --------·------------- If this box is checked, a complete copy of Form AB-29: Waiver of Operation Application and corresp onding fees must be submitted with this application for each calendar year du ring which the license was not operated for at le as t the minimum requirement. Section 6 -Violations and Convictions Applicant violations and convictions in calendar years 2016 and 2017: Hav e any notices of violation (NOVs) b een issued to this licensee in the calen dar years 2016 or 2017? Has any person or entity named i n t his application been convict ed o f a violation of Title 04, of 3 AAC 304, or a local ordinance adopted under AS 04 .21.010 i n the calendar years 2016 or 2017 ? Yes No Dl0 D ra If "Yes" to either of the previous two questions, attach a separate page to this application listing all NOVs and/or convictions. Section 7 -Alcohol Server Education Read the line below, and then sign your initials In the box to the right of the statement: Initials I certify t ha t all licensees, agen t s, an d e mployees w ho se ll or serve alcoholic beverages or check identification of a patron ir=l have completed an alcohol server ed ucati on course approved by the A BC Board and keep current, valid copies of their ~ course co m p letion cards on the licensed premises during all working hours, as required under AS 04.21 .025 and 3 AAC 304.465. (Form AB-17d] (rev 10/16/2017) Page4 of 5 License #4555 OBA Main Street Tap & Grill 248 Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Office 550 W 7th Avenue, Suite 1600 Anchorage, AK 99501 alcoho l .licensing@alaska .gov htt ps://www.co m m erce.ala sk a.gov/web/amco Phone : 907.269.0350 Beverage Dispensary -Tourism License Form AB-17d: 2018/2019 Renewal License Application Section 8 -Certifications Read each line below, and then sign your Initials In the box to the right of each statement: I certify that all current licensees (as defined in AS 04 .11.260) and affili ates have been listed on this application . I certify that in accordance with AS 04.11.450, no one other than the licensee(s) has a direct or indirect financial i nterest in the licensed busi ness. I certify that I have not altered the functional floor plan or reduced or expanded the area of the license d premises, and I have not changed the business name or the ownership (including officers, managers, general partners, or stakeholders) from what is currently on file with the Alcoholic Beverage Control Board. I _£~rtify on be~.~.!f .Q.f_ myi elf or RU~ OfganiJ...e_d_g ntjty that l.J.mderstand.1hat providing..aJalse.statement-on this foFm-or- any other form provided by AMCO is grounds for rejection or denial of this applicati on or revocation of any license i ssued . I am submitting as part of this application a written statement that meets the attached Tourism Statement Guidelines, for review by the Alcoholic Beverage Control Board. As an applicant for a liquor license renewal, I declare under penalty of perjury that I have read and am familiar with AS 04 and Initials 3 AAC 304, and that this application, including all accompanying schedules and statements, is true, correct, and complete. I agree to p rovide all information required by the Alcoholic Beverage Control Board in support of this application and understand that failure to do so y'iiny deadline given to e by AMCO staff will resul,: i,n. this application being returned to me1 s incomplete. • ::..-: ~\\\\ :\,1 •11.111bf.t I \ • "J C~~ ,,---~ ~~\.ff:. WH(2~~~4 <1<-N ~ ~;::::>'"'····"""··~· ~ ---~------------Signature of licensee !I "S •• ·~~~'5>~ Signature of Notary Publ ic ~ ... ~ --,.··. ~ d 11t1t) //ti Lt tf ~ { NQT~~ry ~blic in and for the State of---"'Az,_.M/ __ J _____ _ Prkd name of licensee ~-¥-\PUBLIC / '+-'& . . . -; _ Cf _,.,}:,, ) I ~ c.r;-.. ~ .;if' •. ·~°" ~ My comm1ss1on expires:--------~;.rfj·· :-~··'t.C:> # Subscri bed ar<iitn{lmi{~~~e me this lL day of ,,,!. l }'.-t-20_.!.__l_. License Fee: I $ 2soo.oo I Application Fee: I $ 200 .00 I TOTAL: $ 2700.00 late Fee of $500 00 -if received or postmarked after 01/02/2018: Miscellaneous Fees: GRAND TOTAL (if different than TOTAL): [Form AB-17d) (rev 10/16/2017) Page 5 of S License #4555 OBA Main Street Tap & Grill 249 December 16, 2017 Sarah Daulton Oates Alcohol & Marij uana Control Office 550West7th Ave, Suite 1600 Anchorage, AK 99501 Re: Tourism Statement De(!r Ms. Oat~s, (~rn Hotel'°' Tap 8'. Grill 10800 Kehal Spur Hwy Kenai; AK !'l9611 907-395:-0394 office 907-395-0382 fax mainstreethotel@yahoo.com --~otetlcrp-&-Grlll ls operated1ly1'1n~.Coyote tlml~iShmeinllas 31 rental rooms all of which are equipped with a refrigerator, microwave, coffee pot and free wi-fi. · · ··· ··· · · · -We·are ·located-3-min utes from·the · Kenai-Airport--We·do not stock-alcoholic-beverages·in ··our-······ --·· ·· rental rooms. Our newly remodeled lobby has a continental breakfast counter where complimentary breakfast is served .as early as 4:30 am to accommodate the earliest rising fisherman and sightseer. We regularly store fish boxes for departing guests, assist travelers in finding tours and fishing charte rs and direct guests to tourist attractions. Our establishment has a full-service dining room, with food serviced later t han mostdining establishments in Kenai. We offer seated dini ng until 11:00 pm weekdays and 2:am on Friday and Satµrday nights. We are a smoke-free facility, but have a heated, enclosed .Patio designated for smoking guests. We have 14 screens and 20 draught beets on tap, of which 50% are iocal Alaskan Brews, as well as, spirits from local Alaskan distilleries. We are family friendly an d have an additional dining area for large groups. Our guests enjoy live local entertainment on Acoustic Wednesday and most weekend n ights. Ar:malea Lott Owner 250 Division of Corporations, Business and Professional Licensing ~artm ent of Commerce. Com mun ity . and Ec onomic Development Division of Corporations. Business and Professional Licensing St ate of Alaska ' Commerce ' Corporations, Buslne11, & Prof oHlonol Ucon&lng > Search & OalabHe Download > COfP. > Corporallon Details NAME(S) Type Name Legal Name Pink Coyote Lim ited ENTITY DETAILS Entity Type: Business Corporation Entity #: 10004137 Status: Good Standing AK Fonmed Date: 3/30/2 01 2 Duration/Expiration: Perpetual Home State: ALAS KA Next Biennial Report Due: 11212020 Entity Malling Address: 10800 KENAI SPUR HWY, KENAI , AK 99611 Entity Physical Address: 10800 KENAI SPUR HWY, KENAI, AK 99611 . -------------·-------~····-------- REGISTERED AGENT OFFICIALS AK Entity# Agent Name : LORI FORREST Registered Malling Address: 35295 ROCKWOOD DR , SOLDOTNA, AK 99669 Registered Physical Address: 35295 ROCKWOOD DR , SOLDOTNA, AK 99669 Name Annale a Loll Judilee Forrest Titles Di rector, President , Treasurer, Shareholder Director. Shareholder, Vi ce President , Secretary FILED DOCUMENTS Date Flied 3/30/2012 512 2/20 13 7/31/2014 8/17/2014 8/0412 015 8/04/2015 8104/2015 212312016 11/08/2017 Type Creation Filing In itial Report Agent Resignation Admin Di ssoluti on Reinstatemen t Agent Ch ange Biennial Report Biennial Rep ort Biennial Report Filing Click to View Click to View Click 10 View Click to View Cli ck to View Click to View Click to View Click lo Vjew Certificate Click to View Click to View Click to View Juneau Mailing Address P .O . Box t 10806 Juneau, AK 99811 -0806 Anchorage Mailing/Physical Address 550 We st Seventh Avenue Physical Address 333 \Mlloughby Avenue 9th Floor Juneau, AK 99801 -1770 Suite 1500 Ancllorage. AK 99501-3567 Phone Numbers Main Phone: (907) 269-8160 FAX: (907) 269-8156 https://www .commerce.alaska.gov/CBP/Main/Search/EntityDetail/100041 37 Page l of 2 OShow Former Owned 50 50 1/2/2018 251 ~ ~· ~ .. Office of the Borough Clerk I?. o \l 144 North Binkley Street, Soldotna, Alaska 99669 • (907) 714-2160 • (907 ) 714 -2388 Fa x l/22/2018 Sarah Daulton-Oates Records & Licensing Supervisor Alcohol & Marijuana Control Office 550 W 71h Ave, Ste. 1600 Anchorage, Alaska 9950 l-3567 Johni Blankenship, MMC Borough Clerk RE: Non-Objection of License Renewal Application Business Name License Type License Location License No. Dear Ms. Oates, Main Street Tap & Grill -406 Family Sports Cafe Beverage Dispensary/Tourism 10800 Kenai Spur Hwy, City of Kenai 4555 This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection to this License Renewal application. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Johni Blankenship, MMC Borough Clerk JB/klr Encl . cc: Applicant City of Kenai KPB Finance Department File 252 "Vil f ~e with a Past, City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 MEMORANDUM TO : FROM : DATE: RE : David Ross, Chief of Police Willie Anderson, Lands Manager Terry Eubank, Finance Department Scott Bloom, Legal Department Matthew Kelly, City Planner ~mie Heinz, City Clerk January 17, 2018 Liquor License Renewal ~ '1111.' 1992 The Alcoholic Beverage Control Board has sent notification that the following applicant has applied for renewal of its Liquor License No. 1380: Applicant: D/B/A: American Legion Post #20 American Legion Post #20 Pursuant to KMC 2.40.010 , It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. Please review account(s) maintained by your department (i.e . water and sewer billings, lease/property payment history, citations, etc.) by the above reference applicant. Initial whether account(s) and/or payment plan(s) are current or delinquent. If accounts are delinquent, attach information to this memorandum indicating amounts owed and for which accounts. Please let me know if you have any questions . Once you have completed your section, please route to the next department. Thanks! 1 . Police Department )>?-initials (kf(have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. 0 The apm has outstanding obligations and an additional page has been attached . {;.£!.nance ~ initials ~ I have reviewed all records for my department and the applicant is current on obligations or obl igations do not exist. 0 The applicant has outstanding ob li gations an d an additional page has been attached. 3~~r f7 initials L.:f 1 have re viewed a ll records for my d epartment and the appl icant is current on obligations or obligations do not exis t. 0 The applicant has outstand ing obligations and an add itional page has been attached . 4~ds Management ~nitials WI have re viewed all records for my department and the applicant is current on obligations or obligations do not exi st. Or&e:e plicant has outs~~g obligations and an addit ional page has been attached . 5. Pia ng and Zoning initials I ha ve reviewed all records for my department and the appl icant is current on obl igations or obligations do not exist. Orhe applicant has outstanding obligations and an additional page has been attached . Returned to Clerk's office : /· J ,!$ • /<; 253 THE STATE 01ALASKA GOVERNOR BILL WA L KER January 16, 2018 City of Kenai Attn: Jamie Heinz, Deputy City Clerk VIA Email: jheinz@kenai.city Cc: cityclerk@kenai.city joanne@borough.kenai.ak.u s jblankensh ip@borough .kenai.ak .us kring@borough .kenai.ak.us Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTRO L OFF ICE 550 West 7t h Avenue, Suite 1600 Anch orage , AK 99501 Ma in: 907.269 .0350 Re: Notice of 2018/2019 Liquor License Renewal Application License Type: Club I License Number: I 1380 Licensee: American Legion Post #20 Doing Business As: American Legion Post #20 We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under AS 04.11.480. A local governing body may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of th is notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304 .14S{d). If a protest is filed, the board w ill deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above , please submit your written protest within 60 days, and show proof of service upon the applicant and proof that the appl icant has had a reasonable opportunity to defend the app lication before a meeting of the local governing body. Sincerely, C I .,1,1r /' Ii( T J..d\f... /i I I 1.dl iN!.t. Eri ka M cConnell, Directo r amco.localgov ernmentonly@alaska .gov 254 Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Office 550 W 7th Avenue, Suite 1600 Anchorage, AK 99501 alco hol.licens ing@a laska.gov httos://www.commer ce .ala ska .go v/web/amco Phone: 907 .269.0350 ''o c· ~OLOf~ Master Checklist: Renewal Liquor License Application License Type : Club I License Number: Doing Business As: American Legion Post #20 Examiner: llir-r\.L I Transaction #: Document Received Completed Notes AB ·17: Renewal Application 12/7/17 1 / e App and License Fees 12/7/17 l I f? ----. Supplemental Document Received Completed Notes Tourism/Rec Site Statement AB-25: Supplier Cert (WS) AB-29: Waiver of Operation AB -30: Minimum Operation \ J f 1 / t Fingerprint Cards & Fee s I AB-08a: Crim . History Late Fee Names on FP Cards: . . ' ~ \ 1 l"'-\. (. \ '{ I ( ~ Selling alcohol in re sponse to written order (package stores)? Mailing address different than one in database? In "Good Standing " with CBPL (skip this and next question for sole proprietor)? Officers and stockholders match CBPL and databas e (if "No", determine if transfer necessary)? [Master Checklist: Renewal) (rev 11/03/201 7 ) 11380 I 1020401 Yes No DB DB 121 D D EJ Pa ge 1 of1 255 Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Office 550 W 7°' Avenue, Suite 1600 Anchorage, AK 99501 alcohol .lice nsing@a laska.gov hllps ://w ww.com mer ce .alaska.gov/web /amco Phone : 907.269.0350 Form AB-17: 2018/2019 Renewal License Application What is this form? This renewal license application form is required for all individuals or entities seeking to app ly for renewal of an existing liquor license that will expire on December 31, 2017. All fields of this form must be complete and co r rect, or the application will be returned to you in the manner in which it wa s received, per AS 04.11.270 and 3 AAC 304.105. The Community Council field only shou ld be verified/completed by licensees whose establishments are located within the Municipality of Anchorage or outside of city limits with in the Matanuska -Susitna Borough . This form must be completed correctly and submitted to the Alcohol & Marijuana Control Office (AMCO)'s main office, along with all other required documents and fees, before any renewal license application will be considered complete. Section 1 -Establishment and Contact Information Enter information f or the business seeking to have its license renewe d f . I any POPU ate d f in ormat1on is incorrect, p ease contact AMCO . Licensee: American Legion Post #20 License#: 1380 license Type: Club Statute: AS 04.11.110 Doing Business As: American Legion Post #20 Premises Address: 902 Cook Avenue Local Governing Body: City of Kenai (Kenai Peninsula Borough) Community Council : None Mailing Address: City: ZIP: Enter information for the individual who will be designated as the primary point of contact regarding this application . This individual must be a licensee who is required to be li sted in and authorized to sign this application. Point of Contact: Contact Phone: Contact Email: Yes Seasonal License? D (Form AB-17) (rev 10/16/2017) No p License #1380 OBA American Legion Post #20 Business Phone: If "Yes", write your she-month operating period:------------ Page 1 ofS 256 Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Office 550 W 7th Avenue, Suite 1600 Anchorage, AK 99501 alco hol .licensing@alaska.gov https ://www.commer ce.alaska.gov/w eb /am co Phone: 907.269.0350 Form AB-17: 2018/2019 Renewal License Application Section 2 -Authorization Communication with AMCO staff: Does any perso n other than a licensee named in this application have authority to discuss this licen se with AMCO staff? If "Yes", disclose the name of the individual and the reason for thi 1 1 ) Yes No ·section 3 ::SOie Proprietor ownership lnfb-rmation ----- b I ed b h. h . I . f I' I E . . h Id k' s 4 This section must e comp et y any so e proprietors 1p w o 1s app ymg or 1cense renewa • :r t1t1es s ou s 1p to ect1on • If more space is needed, please attach a separate sheet with the required information. f\ The following information must be completed for each licensee and each affiliate (spou~e ). This individual Is an: 0 appl icant D affiliate Name: I Mailing Address: City: I State: I I ZIP: I Email: Contact Phone: This individual Is an: D applicant D affiliate Name: Mailing Address: City: I State : I I ZIP: I Email: Contact Phone: (Form AB-17) (rev 10/16/2017) Page 2 of 5 License #1380 OBA American Legion Post #20 257 Alaska Alcoholic Beverage Control Board Alco hol and M ar ijuana Contr ol Office 550 W 7th Ave nue, Suit e 1600 Anch orage, A K 99501 alcohol.licensin g@alaska.gov httos.//www.cornrnerce .alaska.gov/web/arnco Ph one : 907.269.0350 Fo rm AB-17: 201 8/2019 Re n ewal Licen se Appli ca tio n S ection 4 -En t it y O wnership Inf o rma t ion This subsection must be completed by any licensee that is a corporati on or LLC. Corporations and LLCs are required to be in good standing with the Alaska Division of Corporations, Business & Professional Licensing (CBPL). You may view your entity's status or find your CBPL entity number by vising the following site: http s://www.co mme rce .a l aska.gov~c b p/mai n/search/e ntit ies Partnerships may skip to the second half of this page . Sole proprietorships should skip to Section 5. I Alaska CBPL Entity#: You must ensure that you are able to certify the following statement before signing you r Initials In the box to t he right: I certify that this entit y i s in good standing with CBPL and tha t all current enti ty officials and stakeholde rs (listed be low) are al so current ly and accurately li sted with CBPL. Initials This subsection must be completed by any community or entity. including a corporati on, limited liability company, partnership, o r limited partnership, that Is applying for renewal. If more space is needed, please attach additional complet ed copies of this page . • If the appli ca nt is a corporation, the following information must be compl et e d fo r ea ch stockholder who owns 10% or more of the stoc k in th e corporation, and for each president, vice-president, secre tary, and managing officer. • If the applic ant i s a limited liability organization, the following information must be co m pleted fo r each member with an ownership Interest of 10% or more, and for each manager. • If the applicant is a partnership, i ncluding a limited partnership. t he follow ing in format io n must be complet ed for each partner with an interest o/ 10% or mare, and for ea ch general partner . En t ity Officia l Na m e: \ <,, • }. (_ • ) 1 \. .... l Title(s): / %Owned: Mailing Address: I ?x:.· -f :'. ~ I ~ · '-, \. r l i. , I City: State: ZIP: Ent ity Official Name: \. / I\. \ ~ \ \ ( ' \. \. Title(s): Phone: l. . . \C I ··1·"' %Owned: Mailing Address: -? /[ ',/ ' ( ~( l. _., -~ ' ( ) ' '-\ <. \ "f. State: <-City : ZIP: /. I I '1 td<=" Entity Official Name: Title(s): Phone: %Owned: Mailing Address: Ci t y : State: ZIP: [Form AB -17) (rev 10/16/2017) Page 3 of 5 , license #1380 OBA Am erican Legion Post #20 l 258 Alcohol and Marijuana Co ntrol Office 550 W 7th Avenue, Suite 1600 Anchorage, AK 99501 al co hol.l icensing@ alaska .gov https ://www.commerce.alaska .gov/web/amco Phone: 907.269.0350 Alaska Alcoholic Beverage Control Board Form AB-17: 2018/2019 Renewal License Application Section 5 -License Operation Check a single box for each calendar year that best describes how this liquor license was operated: The license was regula rly operated continuously throughout each year, for 8 or more hours each day. The license was regularly operated during a specific season each year, for 8 or more hours each day. The license was only operated to meet the minimum requirement of 30 days each year, 8 hours each day. If this box is checked, a complete copy of Form AB-30: Proof of Minimum Operatio n Checklist, and all necessary documentation mu st be provided with this application . The license was not operated at all or was not operated for at least the minimum requ irement of 30 days each year, 8 hows each day,dw:ing oi:ie or both· of-the 'alel'ldar y If this box is checked, a complete copy of Form AB-29: Waiver of Operation Application and corresponding fees must be submitted with this application for each calendar year during which the license was not operated for at least the minimum requirement. Section 6 -Violations and Convictions Applicant violations and convictions in calendar years 2016 and 2017: Have any notices of violation (NOVs) been iss ued to this licensee in the calendar years 2016 or 2017 ? Has any pe rs o n or entity named in this application been convicted of a viol ation o f Title 04 , of 3 AAC 304, or a local ordinance adopted under AS 04 .21.010 in the calendar years 2016 or 2017? 2016 2017 Yes No D .EJ 0)21 If ''Yes" to either of the previous two questions, attach a separate page to this application listing all NOVs and/or convictions. Section 7 -Alcohol Server Education This section must be completed only by the holder of a beverage dispensary, club, or J!Y2 license or conditiona l contractor's permit. The holders of all other license types should skip to Section 8 . Read the line below, and then sign your initials in the box to the right of the statement: I certify that all licen sees, agents, and employees who se ll or serve alcoholic beverages or check identification of a p atron have completed an alcoho l se rver education cou rse app r oved by the ABC Bo ard and keep current, val id copies of their course completion card s on the licensed premises duri ng all worki ng hours, as r equ ired under AS 04.21 .025 and 3 AAC 304.465. [Form AB -17) (rev 10/16/2017) Licen se #1380 OBA American Legio n Post #20 l Initials Page 4 of s 259 Alcohol and Marijuana Control Office 550 W 7th Avenue: Suite 1600 Anchora ~ , AK 99501 alcohol.licens1 . 1f alaska.gov https ://www.co m mercP~ .veb/amco Phone: !10 7.269.0350 Alaska Alcoholic Beverage Control Board Form AB-17: 2018/2019 Renewal License t\pplk atio n Section 8 -Certifications Read each line below, and then sign your initials in the box to the right of each statement: I certify that all current licensees (as defined in AS 04.11.260) and affiliates have b een listed on this a!)!"n-::3t.on. I certify that in accordance with AS 04.11.450, no one other than the licensee(s) has a direct or indirect financial ;r:terest in the licensed business. I certify that I have not altered the functional floor plan or reduced or expanded the area of the licensed premises, and I have not changed the business name or the ownership (including officers, managers, general partners, or stakeholders) from what is currently on file with the i·.:~'>holic Beverage Control Board . I certify on behalf of myself or of the organized entity that J 11nderstai:id.tbat prouiding-a-false-statement an this tor-m-er---{( \ t W any other form provided by AMCO is grounds for rejecti on or denial of this app lication or revocation of any license issued . ~~ As an appl i cant for a liquor license renewal, I declare under penalty of perjury that I have read and am fami l iar with AS 04 and 3 AAC 304, and that this application, including all accompanying schedules and statements, is true, correct, and comp lete. I agree to provide all information required by the Al coholic Beverage Control Board in support of this app l ication and understand that failure to do r~~;~;~:t;;J;:ulUoth;,.pplk.i;oo be;og ~t~m ;d~o ~~~' :"'om:lete( , ( 1 l l I .,,,'fs'~: r cen :/e e-V-t -Signature of Notary pJ°bl ic _.J;6. /"vtJ/ r M J.-2 ~ rJ d .> Ill// Notary Public in and for the State of ( ' \ { J I ( C '- Printed nam 9"of licensee l ~\\\\m\C OP///////f!Q ~~'{_ ......... :o~ .§§~~·~,·· ... ~ ~ ~.·"<?' .. ~ ;:!§ :~ •• ~ . My commi ssion expi res: --"-J __ ~ __ l _) __ E:E [NOTARY ~ § Sub s c~Pn\~~,l~/~~e this I -day of _f...__l1 ___,--'-'1 ''--'-~ _,_, __ __,, 2oj_J_. ?; ~ •. ~~ .·:~§:: -..,--~ J";. .. /lib 8 ~ .··c..;,~§§ ~ ''1i:" ... : ... ·~~ ~ ~11l O f~\\~ 1111 111 \ \W License Fee: I s 1200.00 I Ap1·Jication Fee: I $ 200 .00 I TOTAL: $1400.00 Late Fee of $500.00 -if received or postma'. ked after 01/02/2018: Miscellaneous Fees: GRAND TOTAL (if different than TOTAL): /'/C'l t""t~ (Form AB ·17) (rev 10/16/2017) Page 5 of 5 Licen se #1380 OBA American Legion Post #20 260 Division of Corporations, Business and Professional Licensing ~artment of Commerce. Community. and Economic Development Division of CorP-Qrations, Business and Professional Licensing Page 1 of2 Sllto or Alaska > Commerce > Corporatlona, Business, & Proresslona l Licensing > s .. n:h & Databuo Download > COfJI, > Corporation Details NAME(S) Type Name Legal Name Previous Lega l Name George H Plumley Memorial Post 20, The American Legion. Kenai, Alaska AMERICAN LEGION POST NO. 20, INC. ENTITY DET AJLS Entity Type: Nonprofit Corporation Entity #: 43366D Status: Good Standing AK Fonned Date: 112711989 Duration/Expiration: Perpetual Home State: ALASKA Next Biennial Report Due: 71212019 Entity Maillng Address: 902 COOK AVE ., KENAI, AK 99611 Entity Physical Address: 902 COOK AVE., KENAI, AK 99611 REGISTERED AGENT OFFICIALS AK Entity# Agent Name: Alvin R. Diaz Registered Malling Address: 902 Cook Ave., Kenai, AK 99611 Registered Physical Address: 902 Cook Ave ., Kenai, AK 99611 Name Alvin Diaz ./ Danny Vanzee "' David Segura Gregory Fite James Herrick ./ Joe L. Coup Richard Homan Titles Secretary Treasurer Director President Director Director Vice President FILED DOCUMENTS Date Filed 1127/1989 1/16/1992 10/04/1993 2/05/1996 8/11/1997 7/02/2002 6/08/2003 8/06/2003 Type Creation Filing Biennial Report Biennial Report Biennial Report Biennial Report Admin Dissolution Agent Change Reinstatement Filing Click to Vjew Click to View Click to View Click to View Click t o Vi ew Click to View Click to View https ://www .commerce.alaska.gov/C B P /Main/Search/Entity Detail/4 3 3 660 0 Show Former Owned Certificate 12/13/2017 261 :_ 7 Office of the Borough Clerk R o u 144 North Bink ley Street, Soldotna, Alaska 99669 • (907) 714-2160 • (907) 714-2388 Fax 1/22/2018 Sarah Daulton-Oates Records & Licensing Supervisor Alcohol & Marijuana Cont rol Office 550 W 7th Ave, Ste . 1600 Anchorage, Alaska 99501-3567 Johni Blankenship, MMC Borough Clerk RE : Non-Objection of License Renewal Application Business Name License Type License Location License No. Dear Ms. Oates, AMERICAN LEGION POST #20 Club 902 Cook Ave, City of Kenai 1380 This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection to this License Renewal application. Should you have any questions, or need additional information, please do not hesitate to let u s know. Sincerely, Johni Blankenship, MMC Borough Clerk JB/klr Encl. cc: A pplicant City of Kenai KPB Finance Department File 262 tlre&itya(, KENAl~LASKA "V CITY OF KENAI ORDINANCE NO. 3006-2018 Sponsored by: Administration AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $1,441.42 IN THE GENERAL FUND FOR THE POLICE DEPARTMENT TO PURCHASE SUPPLIES FROM ASSET FORFEITURE FUNDS RECEIVED FROM THE STATE OF ALASKA. WHEREAS, in December of 2017 the Kenai Police Department received an asset forfeiture sharing check in the amount of $1,441.42 from the State of Alaska; and , WHEREAS, the Police Department, pursuant to conditions of acceptance, will utilize the funds for law enforcement purposes. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the City Manager is authorized to accept these forfeiture funds from the State of Alaska in the amount of $1,441.42 to be utilized for a law enforcement purpose. Section 2. That estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues: Forfeitures $1.441.42 Increase Appropriations: Police -Operating Supplies $1.441.42 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision , or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption . New Text Underlined ; [DELETED TEXT BRACKETED) 263 Ordinance No . 3006-2 01 8 Page 2 of 2 ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21 51 day of February, 2018. ATIEST: Jam ie Heinz, City Clerk Approved by Finance: L ~ BRIAN GABRIEL SR., MAY OR Introduced : February 7, 2018 Enacted : February 21 , 2018 Effective: February 21 , 2018 New Text Underlined; [DE LETED TE XT BRACKET ED) 264 'litff~ «1/th a PaJ'~ Ot'tj «1/th a rat~" 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager:(', 0 ., Dave Ross , Police Chief January 30, 2018 Ordinance No. 3006-2018 -Ordinance accepting and appropriating equitable sharing funds. The City of Kenai currently holds $1,441.42 in Equ itab le sharing funds received from the State of Alaska. The police department receives these funds that are distributed through DPS as a result of asset seizures related to the Statewide Drug Enforcement Uni t. The funds are designated, through the Department of Justice , to be used for law enforcement purposes. I am requesting an ordinance appropriating $1,441.42 into the Ge neral Fund , Po lice-Operating Supplies account to help pay for police supplies . 265 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3007-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROPRIATING AVAILABLE FUND BALANCE TO THE MULTIPURPOSE FACILITY CAPITAL PROJECT FUND FOR FACILITY IMPROVEMENTS INCLUDING THE PURCHASE OF NEW HEATERS FOR THE PLAYER BENCHES AND SPECTATOR AREA. WHEREAS, $7,709.35 of fund balance is available for appropriation in the Multipurpose Facility Capital Improvement Fund; and, WHEREAS, the $7,709.35 are residual funds from the lighting replacement and indoor turf field schematic design projects; and, WHEREAS, the existing gas fired tube heaters are reaching their projected life expectancy and becoming unreliable; and, WHEREAS, the manufacturer has discontinued the model presently used, thus, making it difficult to service and find replacement parts; and, WHEREAS, the existing model has been replaced and upgraded with a weatherproof, water resistant casing providing better safeguard against moisture. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the estimated revenues and appropriations be increased as follows: Multipurpose Facility Improvements Capital Project Fund Increase Estimated Revenues: Fund Balance Increase Appropriations: Construction $7.709.35 $7.709.35 Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rende red , and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. New Text Underlined; [DELETED TEXT BRACKETED] 266 Ordinance No. 3007-2018 Page 2 of 2 Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption . ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21 51 day of February, 2018. ATTEST: Jamie Heinz, City Clerk Approved by Finance: ___ _ BRIAN GABRIEL SR., MAYOR Introduced: February 7 , 2018 Enacted: February 21 , 2018 Effective: February 21 , 2018 New Text Underlined; [DELETED TEXT BRACKETED] 267 'V'/fftije «1/t/i a PaJ't, Ct'tf «1/t/i a h.ttJ?e 11 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai .city MEMORANDUM TO: THROUGH: FROM:~ DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ? D · Robert J. Frates, Parks & Recreation Director January 31 , 2018 Ordinance No. 3007-2018 The purpose of this correspondence is to recommend adoption of this Ordinance appropriating available funds in the Multipurpose Facility Capital Project Fund for a heater replacement project. The five (5) gas fired tube heaters providing radiant heat for the player benches and spectator area are fifteen (15) years old and are reaching their life expectancy. Ignition and start-up of the heaters are becoming increasingly inconsistent due to internal corrosion . Furthermore, the existing heaters used at the rink have been discontinued by the manufacturer and are obsolete. The replacement model is designed specifically for high moisture content areas providing better safeguard against corrosion due to moisture. Thank you for your consideration. 268 Sponsored by : Administration CITY OF KENAI ORDINANCE NO. 3008-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, ACCEPTING AND APPROPRIATING $1 ,600.00 FROM THE KENAI CHAMBER OF COMMERCE AND VISITOR CENTER {THE CHAMBER) FOR A NEW CAMERA IN SUPPORT OF THE CITY AND THE CHAMBER 'S JOINT EAGLE CAMERA PROJECT. WHEREAS, in 2017 the City, with the help of a local resident began streaming live images of a nesting eagle pair; and , WHEREAS , the City subsequently partnered with the Chamber to utilize this live stream to promote the City and local businesses ; and , WHEREAS , the memorandum of understanding between the Chamber and City requi re all expenditures for the project, excluding personnel services , to be reimbursed from any revenue derived with any remaining revenues in excess of operational costs to be divided equally between the City and the Chamber; and , WHEREAS, in order to enhance the quality of the stream , a new camera is be ing proposed which will provide a higher definition picture, superior low light picture and enhance audio capabilities at a cost of approximately $1 ,600 .00; and , WHEREAS , the Chamber anticipates advertising revenue in excess of $1 ,600 .00 and will be providing collected funds to the City to reimburse for the cost of the camera . NOW , THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA , as follows: Section 1. That estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues : Miscellaneous Revenue $1.600 .00 Increase Appropriations : Non-Departmental -Small tools $1.600 .00 Sect ion 2. Se ve rability: That if any part or provision of this ordi nance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction , such judgment shall be confined in its operation to the part, provis ion , or application directly involved in all controversy in which this judgment shall ha ve been rendered , and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. New Text Underlined; [DE LETE D T EXT BRACKETED ] 269 Ordinance No . 3008-2018 Page 2 of 2 The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part , provision, or application . Section 3. Effective Date: That pursuant to KMC 1.15 .070(f), this ordinance shall take effect upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21 st day of February, 2018 . ATTEST: Jamie Heinz, City Clerk Approved by Finance:~ BRIAN GABRIEL SR , MAYOR Introduced : February 7, 2018 Enacted: February 21 , 201 8 Effective : February 21 , 2018 New Text Underline d; [DELETED TE XT BRA CKETE D] 270 'Vtff ~ «1/t'1 a Paif~ Ct'tt «1/t'1 a Fu.t~ " 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Te lephone : (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai C ity Council Paul Ostrander, City Manager ? c::> . January 31, 2018 Ordinance No. 3008-2018 -Eagle Camera Upg rade Appropriation In 2017 , the City of Kenai began live streaming the Kenai Eagle Cam , capturing a nesting pair of eagles from a nest in the City. The intent of the Kenai Eagle Cam was to increase internet traffic to either the City or the Kenai Chamber of Commerce and Visitors Center {Chamber) websites , highlighting the City and its businesses . In the first year of operations , the Kenai Eagle Cam was successful , particularly considering t hat there was very little time to overcome the technical challenges that came with hosting a live stream that was viewed around the world . In just the first summer of operations, the Eagle Cam was viewed for 2,083 ,618 minutes . This ordinance appropriates $1600 from anticipated advertising revenues collected by the Chamber to purchase a new camera with higher definition, better low light picture capabilities and enhanced aud io. Along with additional anticipated enhancements this year , such as viewer interaction and eagle spec ific information , the camera upgrade will s ignificantly improve the experience for the viewer, increasing internet traffic and exposure to the City. Your consideration is appreciated. 271 'lltff~ «1/t/i a Pa~~ Ot'tf «1/t/i a h.tfl.l"e" 210 FidalgoAve, Kenai , Alaska 99611-7794 Telephone : (907) 283-7535 I Fax: (907) 283-3014 www . kenai . city MEMORANDUM TO: THROUGH : FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kena i City Council Paul Ostrander, City Manager ?-c:? - Matt Kelley, City Planner A.il. February 1, 2018 Action Approval Item -ACS of Northland, Inc. Utility Easement The purpose of this communication is to introduce an Action I Approval Item to the City Council. ACS of Northland , Inc . is requesting two non-exclusive utility easements to allow for the installation of underground telecommunication utilities. The utility easements would be located on lands owned by the City of Kenai. As shown on the attached Exhibit "A", the easements are shown as "Easement A" and "Easement B". Easement A would be located along the western property line of subject parcel known as a Portion of Government Lot 10 . Easement B would be located east of Easement A and would be located on the front property line of the same subject parcel. As proposed by ACS of Northland, Inc ., the purpose of the subject easements is to allow the installation of new phone lines. Presently, a phone line is located across property owned by the City of Kenai as shown In Exhibit "A " and shown as Telecommunication Line (Buried). ACS of Northland , Inc. has proposed to install a new telecommunication line to be located within Easement A to serve Salamatof Sea Foods. The existing telecommunication line would then be removed from the subject parcel. Easement B currently contains a telecommunications pedestal , whi ch is used by ACS. ACS has requested to install a new pedestal within the proposed easement and then install a new telecommunications line un der Bridge Access Road. Thank you for your consideration . 272 CURVE RADIUS ARC LENGTH CHORD LENGTH CHORD BEARING DEL TA ANGLE C1 2789.79' 15.00' 15.00' N64"36'11"W 0·15'45" C2 2789.79' 10.14' 10.14' N67'29'11"W 0 '12'30" LINE BEARING LEGEND L1 S66'36'48"E L2 N25"42'18"E Efl PRIMARY MONUMENT RECOVERED AS NOTED L3 N64'17' 42"W 0 SECONDARY MONUMENT RECOVERED AS NOTED L4 S25'42'18"W D pp DOT/PF ROW MARKER LS N64'17'42"W -<>-POWER POLE L6 N25'42'18"E @ ELECTRIC PEDE STAL (!) TELECOMMUNICATION PEDESTAL --E --ELECTRIC P OWER LINE (OVERH EAD) --T --TELECOMMUNICATION LINE (BURIED) Bar Scale 1~iara EXHIBIT A 1" = 100' INTEGRITY SURVEYS, INC. 820 SET NET DR. KENAI, AK 99611 PHONE -(907) 262-5573 SURVEYORS FAX ---(907) 262-5574 PLANNERS File: 217033 ESMT.DWG Scale: 1'' = 100' Drown b . SH Dote: Oct. 24 2017 Job : 217033 DISTANCE 138.11' 55.55' 27.50' 15.00' 12.50' 40.64' 273 The Grantor, the City of Kenai, ACS of the Northland, Inc UTILITY EASEMENT whose address is 210 Fidalgo Avenue, Suite 200, Kenai, AK 99611, for good and valuable consideration, receipt of which is hereby acknowledged , hereby grants to ACS of the Northland, Inc., whose address is 151 Warehouse Dr., Soldotna, Alaska 99669, Grantees, and successors and assigns, the following described utility easement: Located within a remainder portion of Government Lot 10 within the NWl/4 SWl/4 Section 4 Township 5 North Range 11 West Seward Meridian, City of Kenai, Kenai Peninsula Borough, Kenai Recording District, Alaska. Said easements being more particularly described as follows: Easement A -beginning at the most northerly corner of a portion of Government Lot 10, common with Tract B US Survey 104 and Bridge Access Right of Way, said point being the TRUE POINT OF BEGINNING. Th e nce adjoining said property line, S31 °59'18"W 396.00 feet; Thence S58 °00'42"E 10.00 feet; Thence N31 °59'18"E 398.04 feet to a point on said right of way. Thence adjoining sa id right of way on a non-tangential curve concave to the southwest raving a radius of 2789.79 feet a distance of 10.14 feet (C2), with a chord bearing of N67°26'11"W and a chord distance of 10.14 feet to the TRUE POINT OF BEGINNING. Sidelines of easeme nt to be lengthened or shortened to terminate on Bridge Access Road Right of Way. Said Easement A being 3,972 sq. ft. more or less. Easement B -beginning at the most northerly corner of a portion of Government Lot 10, common with Tract B US Survey 104 and Bridge Access Right of Way, Thence S66°36' 48"E 138.11 feet (Ll) to a point on said ri ght of way, also being the TRUE POINT OF BEGINNING; Thence S25 °42'18"W 55.55 feet (L2); Th ence S64°17'42"E 27.50 feet (L3); Thence N25 °42'18"E 15.00 feet (L4); Thence N64 °17'42"W 12.50 feet (LS); Th ence N25 °42'18"E 40.64 feet (L6) to a point on sa id right of way; Thence adjoining said right of way on a non-t angen tial curve concave to the southwest raving a radius of 2789.79 feet a distance of 15.00 feet (Cl), with a chord bearing of N64°38'29"W and a chord distan ce of 15.00 feet to the TRUE POINT OF BEGINNING. 274 Sidelines of easement to be lengthened or shortened t o te rm inate o n Bridge Access Road Right of Way. Said Easement B being 1,022 sq . ft. more or les s. This easement gives ACS of the Northland, Inc the right of in gress and egress together with the ri ght to construct, reconstruct, repair, maintain, operat e and upgrade underground telecommunication utilities and all necessa ry appurtenances, and to remove, renew, replace, add to an y or all of suc h facilitates, through, over, in, under and across the aforesa id premises as may from time to time be ne cessary or desirable for the use, occupation, and enjoyment of suc h ease ment, and the right to excavate, remove soils or fill on said premises, as may be reasonably required for the const ru ction, reconstruction, re location, installation, operation, and maintenance of such facilities, w hich Grantee believes threaten it facilities . Notwithstandi ng t he immediately preceding sentence , the City of Ke na i may requ ire ACS of the Northland, Inc t o reloca t e it s utilit y at no cost to the City, if the easement inte rferes with a Cit y capital improvement project. Thi s ease m en t shall automatically terminate at any such time that ACS of the Northland, Inc no long er maintains active telecommunication utilities inside this ease me nt for a period of 6 months or more. Grantor(s) wa rra nt and covenant that Grantor(s) are the owners of the above-described land , have the ri gh t to convey this easement. Sa id Easement A and Ea sement Bis shown on Ex hibit A, which is attached hereto and made of part of. DATED t his ___ day of __________ ~ 2017. By _________ ~ STAT E OF ALASKA )ss. TH IRD JUD ICIAL DISTRICT ) THIS IS TO CERTIFY that on this _ day of 2017, before m e the undersigned, Not ary Public in and for the State of Alaska, personally appeared ------------------ known to me to be the persons named in the foregoi ng instrum ent, and ac knowledge d to me that they executed t h e same freely an d volun tarily for t he use s and purposes therein contained. W itn ess my hand and officia l sea l t he day and year in this certificate first above written. NOTARY PUBLIC, State of Alaska My Commission Expire s:. ________ _ 275 Return to: City of Kenai 210 Fidalgo Avenue Suite 200 Kenai, AK 99611 276 "Vt1/~e with a Pas; City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 r11"'ll Telephone: 907-283-7535 /Fax: 907-283-3014 . www.ci.kenai.ak.us 1991 lire ei'l;r of, KENAI, ALASKA ~ CITY OF KENAI EASEMENT APPLICATION Date _~1 =10=/2=5=/1=7===-- 1. Name of Applicant !Dan Starbuck , ACS OSP NETWORK EN G INEER 2. Business Name lA LASKA COMMUNICATIONS I 3. Mailing Address 11 5 1 Warehouse Dr., Soldotna, AK 99669 I 4. Te lephone 1907-714 -8738 I Email Address !dan.starbu ckr@acsa laska.com I 5. Legal Dcscription lT5N,R11W, SEC 4 , SEWARD MERIDAN KN THAT PORTIO N O F I !GOVT LOT 10 LYING SW & I KPB Parcel No. 104901131 I 6. Property Address !672 BRIDGE ACCESS R D I 1. City of Kenai zoning jP ER APRIL 2017 ZONING MAP-THIS IS HEAVY INDUSTRIAL AREA 8. Application App roved by: ___ Planning & Zoning ___ City Lands ___ Legal Department ___ City Manager ___ Airport ___ Public Works (Construction easements have an additional form to complete with Public Works Department) The following information must be provided before your applicat ion will be considered for processing. Do not subm it yo ur application until it contains the rcguired information. Attach the following : • Detailed description of the proposed easement. • Map of the area. • Metes & bounds description of proposed easement. • Easement drafted for approval must meet Recording Office requirements and be submitted in hard copy & e-mail to ncarver@ci.ken11l .a k.us INCOMPLETE APPLICATIONS WILL NOT BE ACCEPTED Date __ .!:::l 1=0=/2=5=/1=7===-------------------- WHEN YOU HA VE A COMPLETED APPLICATION, CALL 283-8237 TO SCHEDULE AN APPOINTMENT WITH THE PLANNING DEPARTMENT TO REVIEW THE APPLICATION. 1/19/2010 277 'V/fl~ «1/tt a PaJ'~ tt'tj tt11'tt a Fatfl.l"e ." 210 Fidalgo Ave , Kenai, Alaska 99611-7794 _- Telephone : (907 ) 283-7535 I Fax: (907) 283 -30 14 www.kenai .city MEMORANDUM TO: THROUGH: FROM : DATE : SUBJECT: Mayor Brian Gabriel and Kena i City Council Paul Ostrander, City Manager7. D . Mary L. Bondura ~~ January 12, 2018 \'ry Action/Approval -Read on the Fly Program The Airport reached out to Erin Kirkland , founder and publisher of AKontheGO.com . requesting information on the Read on the Fly Program. This program places shelves with books in airport terminals to encourage children and their families to read when traveling throughout Alaska and farther. The program is already in place at Ted Stevens International, Fairbanks International, and Juneau and we would like to be next. Erica Shinn will be the Project Leader, Mary Jo Joiner has agreed to provide the books , and the Soldotna High School Shop will be constructing the bookshelf with the building supplies provided by the Airport. The program was reviewed at the January 11 , 2018, Airport Commission meeting and Commission unanimously recommended Council approve the Read on the Fly Program at the Kenai Airport . Does Council recommend the C i ty Manager enter into an agreement with the Read on the Fly Program at the Kenai Municipal Airport? Attachments 278 AKONTHEGO'S READ ON THE FLY PROJECT Supported in part by Ted Stevens Anchorage International Airport and Alaska Airlines, with fiscal sponsorship by Best Beginnings Alaska EAD f~FLY The following information is meant to provide guidance for donors and volunteers to support efforts of AKontheGO's Read On the Fly program to promote books and reading during travel. WHO? Read On the Fly strives to encourage reading at any age, but the program is structured to provide books for children age 0-18. WHY? The Annie E. Casey Foundation reported in a 2014 study that 73% of Alaska 4th grade students are not proficient in reading; and 64% of young children are not attending preschool programs*. Another 2014 report by the Alaska Department of Health and Human Services states that "Children who enter school with a basic knowledge of math and reading are more likely than their peers to experience later academic success, attain higher levels of education, and secure employment."** WHAT? Hardbound and paperback books are welcome . At this time periodicals and activity books are accepted only if in pristine condition. All books will be inspected upon donation by Read On the Fly volunteers who will look for age-appropriate content and overall condition, then sort for storage at the Anchorage Airport. Each book will receive a label identifying it as part of the Read On the Fly program. Co- branded stickers will be created upon agreement with a particular organization/entity in an area other than Anchorage. WHERE and WHEN? Currently, four areas of the Ted Stevens Anchorage International Airport have been identified as reading areas: Alaska Airlines 'C' Concourse (1 shelf in Nursery) and the RavnAlaska/PenAir/Grant Aviation regional concourse . (1 shelf Ravn gates, 1 shelf Ravn ticketing , 1 shelf PenAir/Grant gates). On May 5, 2017, Fairbanks International Airport joined the Read On the Fly family with two shelves, one pre-security and one post-security. On June 10, 2017 , Valdez Airport unveiled a bookshelf and "reading nook" near the airport baggage claim with multiple community supporters . 279 On June 16, 2017, Ketchikan International Airport's dedicated team of volunteers created a colorful reading area post-security, and installed another visible bookshelf pre-security. On September 22, 2017, Ravn Alaska and Read On the Fly will launch a bookshelf in the Ravn Terminal of Bethel Airport, with support from local schools, community members, and a drumming/dance performance . HOW? Want to help? Here are some options: • Be a book donor! Inspect your bookshelves at home, attend garage sales , or browse the local thrift store. If books are in good condition (i.e. not missing pages, clean covers), then Read On the Fly will take them! • Give financially by purchasing new books and dropping them at a book site. or donating via Best Beginnings Alaska (the fiscal sponsor) https://donatenow.networkforgood.org/readonthefly • Become a volunteer! Read On the Fly also needs people to pick up, sort, and deliver books to AKontheGO's storage facility at Ted Stevens Anchorage International Airport. Fairbanks International Airport would also appreciate volunteers to pick up and sort books. Contact: Erin Kirkland, readontheflyak@gmail.com *http://www.aecf.org/m/databook/2014KC profile AK.pdf **http://dhss.alaska.gov I dph/wcfh/Documents/mchepi/pubs/ databook/M CHDataBook2014toweb .pdf 280 -A I II> -, -J/ .J -c.. <( .>. '.) l \ "1 l.. ~----· ·--·--.;.,,~ .. ·-·-----~··------· --~ I . -°It--------._ .. ) A I --I I i ! : ! / l I I L -- 281 Read On the Fly -Processes and Procedures Overview: Read On the Fly is a project developed by AKontheGO .com founder and publisher Erin Kirkland in 2016 to encourage reading by children and families traveling within the nation 's airports. Books at ROtF shelves are free . At this time, the project is solely managed by a volunteer base. Procedures for new shelves: Establishing a ROtF shelf in any airport requires orchestration and cooperation among individual airport managers, concessions managers, leasing managers , AKontheGO, and the community-at-large . Follow the steps below to initiate a Read On the Fly at your airport . 1. Find a project leader; one person in your community willing to be the point of contact for all ROtF communications from the community, airport, and with Erin Kirkland. 2. Determine a consistent flow of books for children 0-18 . The overarching goal of ROtF is to be constant and reliable with book replacements for shelves over a long- term period of time. 3. Contact the airport manager. This usually can be found at the airport's website . If you have trouble , contact Erin Kirkland . Set up a meeting with the project lead and Erin Kirkland to discuss Read On the Fly , answer questions, and set up further meetings with appropriate airport personnel. 4 . Identify space for a bookshelf within the airport. It is up to airport managers to determine whether this location will be pre or post-security. NOTE: If post-security is selected, then Erin Kirkland must be consulted on selection of the individual authorized for SIDA badging (Alaska airports only). 5. Determine how, and by who a bookshelf will be built. Consult with Erin Kirkland on specs to create a uniform style required for all ROtF shelves . Note: Construction of shelving is not provided by Read On the Fly at this time . 6 . Consult with airport managers and Erin Kirkland to determine a launch date and launch party festivities. Invite local leaders, education advocates, school kids, or anyone else who may have a vested interest in Alaska literacy, families, or travel. 7 . Pitch book donations and the project at local locations, service club meetings , etc. (or enlist Erin Kirkland to do so). Utilize materials offered by ROtF . 8 . C reate a hard copy calendar of book reviewing, restocking and cleaning . Record numbers of books placed on shelves. LAUNCH THE BOOKS! **All project leads to have a monthly phone conference with Erin Kirkland to discuss successes , challenges, and new ideas, and join FB ROtF page . readontheflyak@gmail .com Erin Kirkland 907-575-3935 7/2016 282 Read On the Fly New Bookshelf Agreement Congratulations , and thank you for promoting childhood literacy through Read On the Fly! Your decision to construct and manage a Read On the Fly bookshelf at one of thousands of U.S. airports means kids aged 0-16 will be able to access age-appropriate books during and after their air travel experience. As you have indicated a desire to become an active part of this innovative project, below are important points that you, your group, or business should read before becoming a part of the Read On the Fly family. Once this form is signed and returned to Erin Kirkland (readontheflyak@gmail.com), you will receive documents to help you set the project in motion and hopefully make the process smooth from start to finish . The parties agree to: • Use the Read On the Fly brand on all bookshelves, documents, presentations, and social media . The ROtF logo will be provided . If the project shelf is to be co-branded with another business or organization , that logo and brand should be installed in tandem with Read On the Fly. Shelves should be constructed to fit the location's environment in cooperation with local airport officials . • Be financially responsible for all materials , labor, installation , delivery, and repair costs of each Read On the Fly shelf built for the designated location. • Act as the local point of contact for airport management and business/community communications , with inclusion from the Read On the Fly main office. The individual/individuals who will be the point of contact is/are (add here , with phone/email): • Regularly visit bookshelves to restock and clean and take note of any repair needs . • Participate in monthly teleconferences with the Read On the Fly main office and other discussions within the Read On the Fly private Facebook group. • Disseminate media releases to local outlets and forward contact information from main office if a local spokesperson is not available . Assistance in developing media releases will be provided by Read On the Fly . • Read On the Fly agrees to list partners on the main website, and assist with all social media sharing as part of the co-branded effort. • Receive donations for local Read On the Fly projects if co-branded; receive donations to Read On the Fly/Best Beginnings if not co-branded w ith a legitimate 501 (c) 3 organization . Funds may be designated for local shelf projects. Signed Signed : Erin K. Kirkland , ROtF Date : Date: 9/18/2017 ReadOnt heFly docs 1/2017 283 'Vtfl~ «1/t~ a Pai!~ Ct'tt «1/t~ a h.tfl.l"e 11 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax : (907) 283-3014 www.kenai .city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager 7 . c..::> • Terry Eubank , Finance Director //. January 31, 2018 FY2018 City Audit Services The City 's current contract for independent audit services with BOO USA, LLP ex pired on December 31 , 2017 . The contract has been in place for audits from fiscal year 2014 through fiscal year 2017. It is the administration 's recommendation to issue a Request For Proposal (RFP ) for audit services . The RFP w ill conclude w ith the issuance of a new three-year contract for audit services with allowance for two one-year e xtensions by mutual consent. Compensation for fiscal year 2017 audit services was $41 ,000 , a $3,000 increase over the life of the contract wh ich allowed for increases based on the change in Anchorage 's Consumer Price Index. The annual audit is an independent look at the financial statement prepared by management, a review of the internal controls used by management, and review of compliance with the conditions of federal and state grants . The auditors actually work for the Council and are an important component of the City 's internal controls . As such, it is not uncommon for a member or members of Council to be involved with the selection of the City's auditors. The RFP will utilize a best value approach , meaning respondents will be ev aluated on qualitative factors such as ex perience , the technical qualifications of the audit team, responsiveness to the proposal , and references from other clients as well as the quantitative factor of price . Th is approach focuses on getting the best value as opposed to the cheapest cost. The administration is requesting Council 's concurrence with the issuance of the RFP and if there is any interested members of Council to sit on the selection committee. 284 (This page was intentionally left blank) 285 KENAI AIRPORT COMMISSION JANUARY 11, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS VICE-CHAIR JAMES ZIRUL, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Vice-Chair Zirul called the meeting to order at 6:02 p.m. a. Pledge of Allegiance Vice-Chair Zirul led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Commissioners Present: Commissioners Absent: J. Zirul, P. Minelga, D. Pitts, J. Bielefeld, C. Henry, K. Dodge G. Feeken Staff/Council Liaison Present: Airport Manager M. Bondurant, Admin. Assistant E. Shinn, City Attorney S. Bloom, Council Member J. Glendening A quorum was present. c. Agenda Approval MOTION: Commissioner Bielefeld MOVED to approve the agenda and Commissioner Pitts SECONDED the motion. There were no objections; SO ORDERED. 2. ELECTIONS OF THE CHAIR AND VICE CHAIR Commissioner Bielefeld nominated re-appointing Commissioner Feeken as Chair and appointing Commissioner Minelga as Vice-Chair. There were no objections; SO ORDERED. 3. PERSONS SCHEDULED TO BE HEARD – None 4. UNSCHEDULED PUBLIC COMMENT – None 5. APPROVAL OF MEETING SUMMARY a. November 9, 2017 MOTION: Commissioner Dodge MOVED to approve the meeting summary from November 9, 2017 and Commissioner Bielefeld SECONDED the motion. There were no objections; SO ORDERED. 286 Airport Commission January 11, 2018 Page 2 of 3 6. UNFINISHED BUSINESS a. Signage for Field of Flowers Ideas were presented to the Commission. It was noted that a Kenai Central High School student was interested in the project. City Administration supported it. MOTION: Commissioner Zirul MOVED to postpone this agenda item until discussion occurred with interested KCHS student; Commissioner Henry SECONDED the motion. There were no objections; SO ORDERED. 7. NEW BUSINESS b. Discussion/Recommendation – Read on the Fly Program [Clerk’s Note: This item was moved to be taken up first under New Business.] Manager Bondurant asked for recommendation by the Commission to move forward with the Read on the Fly Program. It was noted that the Soldotna High School students would be building the bookshelf. MOTION: Commissioner Minelga MOVED to proceed with the Read on the Fly Program as presented; Commissioner Dodge SECONDED the motion. There were no objections; SO ORDERED. a. Discussion/Recommendation – Leasing of Airport Reserve Lands/Ordinance No. 2998-2018 – City Attorney City Attorney Bloom presented on Leasing of Airport Reserve Lands, Ordinance No. 2998-2018. He explained the purpose was to develop a leasing program at the airport designed to encourage growth, development and a thriving aviation community. Bloom presented an overview of the proposed changes made to the code. Commissioners thanked City Administration for their time and effort. Clarification was provided regarding the term length in code. MOTION: Commissioner Henry MOVED to approve Ordinance 2998-2018 and Commissioner Bielefeld SECONDED the motion. There were no objections; SO ORDERED. 8. REPORTS a. Airport Manager – Bondurant reported the following: • The Airport received a loader in December; • Airport Terminal rehabilitation moving forward; focused on public use areas; 287 Airport Commission January 11, 2018 Page 3 of 3 • Operations staff working diligently to keep up with winter weather challenges; working with the Alaska channel to have advertisements stream on TV in the terminal; • Beginning process and review of the new airline operating agreement. b. City Council Liaison – Council Member Knackstedt reported on the January 3 Council Meeting actions. 9. NEXT MEETING ATTENDANCE NOTIFICATION – February 8, 2018 10. COMMISSIONER COMMENTS AND QUESTIONS It was questioned what the process would be to have customs available in Kenai. 11. ADDITIONAL PUBLIC COMMENT – None 12. INFORMATION ITEMS a. November 2017 Enplanements b. November 2017 Airport Manager’s Report c. December 2017 Airport Manager’s Report 13. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:40 p.m. Meeting summary prepared and submitted by: _____________________________________ Jacquelyn Kennedy Deputy City Clerk 288 (This page was intentionally left blank) 289 KENAI PLANNING & ZONING COMMISSION – REGULAR MEETING JANUARY 24, 2018 - 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVENUE, KENAI, ALASKA http://www.kenai.city MINUTES 1. CALL TO ORDER Commission Chair Twait called the meeting to order at 7:00 p.m. a. Pledge of Allegiance Commission Chair Twait led those assembled in the Pledge of the Allegiance. b. Roll Call Commissioners present: J. Twait, V. Askin, G. Greenberg, K. Peterson, B. Springer, D. Fikes Staff/Council Liaison present: City Planner M. Kelley, Deputy Clerk J. Kennedy, Planning Assistant W. Anderson, Council Liaison H. Knackstedt A quorum was present. c. Agenda Approval MOTION: Commissioner Peterson MOVED to approve the agenda and Commissioner Fikes SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Peterson MOVED to approve the consent agenda and Commissioner Askin SECONDED the motion. There were no objections; SO ORDERED. *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 from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. e. *Excused absences – Commissioner J. Halstead 2. *APPROVAL OF MINUTES: January 10, 2018 Meeting minutes approved by the consent agenda. 290 ____________________________________________________________________________________ Planning and Zoning Commission Meeting January 24, 2018 Page 2 of 5 3. SCHEDULED PUBLIC COMMENT: (10 minutes) None scheduled. 4. UNSCHEDULED PUBLIC COMMENT: (3 minutes) Chairman Twait called for public comment with none being offered. 5. CONSIDERATION OF PLATS: a. Resolution PZ2017-43 – Original Preliminary Plat of Pelch Subdivision White Addition, submitted by McLane Consulting, Inc. P.O. Box 468, Soldotna, Alaska 99669, on behalf of James A. White, 2214 Stephanie Brooke, Wenatchee, WA 98801 Clerical error was noted regarding the Resolution number on the agenda; it should have been PZ2017-42. The correct documentation was provided in the packet. City Planner Kelley reviewed his staff report, which was provided in the packet, noting the proposed preliminary plat will create three lots from an aliquot part parcel and was zoned Rural Residential. He further noted that number (2) on the proposed preliminary plat stated “A building setback of twenty (20) feet is required from all street rights-of-way”. However, the building set back requirements were subject to change, and the City recommended that the current note be removed and replaced with the following notation: Development of this parcel is subject to the City of Kenai Zoning Standards. Based on City Planner review, approval was recommended with the following conditions: • Further development of the property shall conform to all Federal, State and local regulations. • Block One should be added to the face of the plat. • The City Manager for the City of Kenai must sign the plat to acknowledge acceptance of the right-of-way dedication of Ames Road. MOTION: Commissioner Askin MOVED to approve Resolution No. PZ2017-42 with staff recommendations and the amendment; Commission Vice-Chair Springer SECONDED the motion. Chairman Twait opened the floor for public testimony; there being no one who wished to speak, the public comment period was closed. VOTE: YEA: Peterson, Fikes, Askin, Greenberg, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. b. Resolution PZ2018-02 – Original Preliminary Plat of Original Townsite of Kenai Bluff Replat, submitted by Segesser Surveys, 30485 Rosland St., Soldotna, AK 99669, on behalf of Jerry A. Sprague and Patricia Bushman-Sprague 2012 Trust, 32000 Green Rd., Cloverdale, CA 95425; Julie Latta, 37070 Cannery Rd., Kenai, AK 99611; and City 291 ____________________________________________________________________________________ Planning and Zoning Commission Meeting January 24, 2018 Page 3 of 5 of Kenai, 210 Fidalgo Ave., Kenai, AK 99611 City Planner Kelley reviewed his staff report, which was provided in the packet, noting it was part of the Bluff Erosion project that the City was actively pursuing. It was further noted that Tract A of the proposed plat would become part of the bluff erosion project and would not be serviced by water, sewer or utilities. Based on his review, approval was recommended with the following conditions: • Further development of the property shall conform to all Federal, State and local regulations. • The City Council for the City of Kenai must approve the vacation of the right-of-way for Riverview Drive pursuant to Kenai Municipal Code 22.05.110 and Kenai Peninsula Borough Code 20.70.110. • The City Manager must sign the proposed plat to accept the dedication of the right-of- way created on the parcel of property owned by the City of Kenai. • The area that the City of Kenai is proposing be dedicated to right-of-way should be delineated or noted on the plat. MOTION: Commissioner Springer MOVED to approve Resolution No. PZ2018-02 with staff recommendations and Commissioner Peterson SECONDED the motion. Chairman Twait opened the floor for public testimony; there being no one who wished to speak, the public comment period was closed. It was clarified that only one additional plat was expected to come before the Commission in regards to the Bluff Erosion Project. It was further clarified that the City would only be purchasing part of the parcel along the top of the Bluff property line, out to the river. VOTE: YEA: Peterson, Fikes, Askin, Greenberg, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. 6. PUBLIC HEARINGS: Resolution PZ2017-40 - Application for a Conditional Use Permit to construct and operate an approximately 1,656-square-foot Marijuana Product Manufacturing Facility located on an approximately 1-acre parcel, which is, zoned Light Industrial (IL). The use would consist of the extraction of Marijuana Concentrate from Marijuana via CO2 extraction technology and ethanol extraction, located on the property known as 14927 Kenai Spur Highway, Lots 1—5, Block 4, Radar Subdivision, KPB Parcel No. 03901010. Application submitted by: Buddy Crowder d/b/a Herban Extracts, 410 Magic Avenue, Kenai, Alaska 99611 City Planner Kelley reviewed his staff report, which was provided in the packet, noting it was specifically to construct and operate a Marijuana Product Manufacturing Facility, not for retail to 292 ____________________________________________________________________________________ Planning and Zoning Commission Meeting January 24, 2018 Page 4 of 5 the general public. Based on his review, approval was recommended with the following conditions: • Further development of the property shall conform to all Federal, State, and local regulations. • A building permit will be required for the construction of the Commercial Marijuana Establishment. • Prior to issuance of the Building Permit, the applicant shall submit a Landscape Site Plan for review and approval by Planning Administration. The Landscape Site Plan shall demonstrate compliance with Kenai Municipal Code Chapter 14.25 – Landscaping/Site Plan Regulations. • Prior to final of the Building Permit, the applicant shall submit a letter from the Department of Environmental Conservation, which demonstrates approval of the Septic and Water Well. • Prior to issuance of the Building Permit, the applicant shall submit a copy of the recorded final subdivision plat of Radar Subdivision 2017 Replat. • Prior to operation of the Marijuana Product Manufacturing Facility, the applicant shall submit a copy of the approved and fully executed license from the Alaska Alcohol & Marijuana Control Board. The applicant shall comply with all regulations as stipulated by the State of Alaska Marijuana Control Board. • A Sign Permit will be required for the construction of any proposed signage. • Pursuant to Kenai Municipal Code Section, 14.20.150(f) the applicant shall submit an Annual Report to the City of Kenai. MOTION: Commission Vice-Chair Springer MOVED to approve Resolution No. PZ2017-40 with staff recommendations and Commissioner Greenberg SECONDED the motion. Chairman Twait opened the floor for public testimony. Buddy Crowder spoke in support and noted that the business would be operated in compliance with the Alaska Statutes. The business was for extraction of oils and manufacturing only, not retail or open to the public; would be good for increased business and tax base for the City of Kenai. Crowder reported that he had been in Alaska since 1965, owned and operated several businesses over the years, and hoped to prove to people that there could be healthy business coming out of the marijuana field. Concern was expressed about the use of ethanol and its flammability. It was clarified that if ethanol was used, it would be specifically for the chilling process. Lisa Coats, business partner to Crowder, provided an overview of the use of ethanol. Coats clarified that there would be no need to have special qualifications to work with the chemicals and expected less than five employees. She added that they had a chemist and her personal career was based in a lab; the process would be to make only a good quality oil with no special additives to it. Ryan Tunseth, spoke in support; stated Alaskans voiced support in marijuana use. He noted this would strengthen the overall health and safety standards that related to the products and prevents 293 ____________________________________________________________________________________ Planning and Zoning Commission Meeting January 24, 2018 Page 5 of 5 a diversion of products to minors. Tunseth added he knew Crowder most of his life, children grew up together, family friend and he represented a consistency in character that would contribute to a business the City of Kenai would be proud of. Tunseth further added that he had known Coats much of his professional life and had full confidence in her quality work and he expressed his intention to carry Urban Extracts in his retail store. There being no one else who wished to be heard, the public comment period was closed. VOTE: YEA: Fikes, Askin, Greenberg, Twait, Springer, Peterson NAY: MOTION PASSED UNANIMOUSLY. 7. UNFINISHED BUSINESS: None 8. NEW BUSINESS: None 9. PENDING ITEMS: None 10. REPORTS: a. City Council – Council Member Knackstedt reported the following: • Reviewed the action agenda from the January 17 City Council meeting; • A carport was being built to display the renovated firetruck in the City of Kenai; • A presentation was done by Project Homeless Connect, it was very informative; • A vacancy on Parks and Recreation Commission. b. Borough Planning –Commissioner Fikes reported that the Kenai Peninsula Borough meeting was on January 22; main topic of discussion was the relocation of the Cooper Landing Sporting Club shooting range. The Borough approved leasing the new property to the Club. The Club would recycle any projectiles and any funds from it would be returned to the Borough. Fikes further noted the Peninsula Central Emergency Services is in need of a new fire station; the current location was shared by the Police Department in Soldotna and space was minimal; some potential new sites were discussed. c. Administration – City Planner Kelley noted that on January 9 he met with a Project Manager for Dr. David Hizer’s Gravel Pit; discussed code, visual impacts, and he expected something to come back soon with a revised application. Kelley further reported that this would be his last Planning and Zoning Commission meeting as he was leaving the City of Kenai, returning to California to be closer to family. He expressed his gratitude for the Commissioners and the City of Kenai. W. Anderson expressed appreciation for Kelley and offered best wishes. 11. ADDITIONAL PUBLIC COMMENT: (3 Minutes) Commission Chair Twait opened the floor for public testimony; there being no one who wished to speak, the public comment period was closed. 294 ____________________________________________________________________________________ Planning and Zoning Commission Meeting January 24, 2018 Page 6 of 5 12. INFORMATIONAL ITEMS – None. 13. NEXT MEETING ATTENDANCE NOTIFICATION: February 14, 2018 14. COMMISSION COMMENTS & QUESTIONS All Commissioners expressed appreciation to City Planner Kelley, congratulated him and wished him farewell. His skill set, experience, and his great work with the Commission was noted. 15. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:58 p.m. Minutes prepared and submitted by: _____________________________ Jacquelyn Kennedy Deputy City Clerk 295 KENAI BEAUTIFICATION COMMITTEE JANUARY 9, 2018 – 7:00 P.M. CITY HALL COUNCIL CHAMBERS CHAIR LISA GABRIEL, PRESIDING MEETING SUMMARY 1. CALL TO ORDER & ROLL CALL Chair Gabriel called the meeting to order at 7 p.m. Roll was confirmed as follows: Members present: Chair L. Gabriel, B. Madrid, S. Peterson, T. Canady, R. Sierer, K. Reed, T. Wilson Members absent: Staff/Council Liaison present: Parks and Recreation Director B. Frates, Council Liaison M. Boyle A quorum was present. 2. AGENDA APPROVAL It was noted that the Beautification Committee did not have a regular meeting in July. Commissioner Peterson MOVED to remove Item 3.b July 11, 2017 meeting summary from the agenda; and Commissioner Madrid SECONDED the motion. There were no objections; SO ORDERED. MOTION: Commissioner Madrid MOVED to approve the agenda and Commissioner Sierer SECONDED the motion. There were no objections; SO ORDERED. 3. ELECTIONS OF THE CHAIR AND VICE CHAIR Commissioner Sierer nominated to re-appoint Commissioner Gabriel as Chair and Commissioner Peterson as Vice-Chair. There were no objections; SO ORDERED. 4. APPROVAL OF MEETING SUMMARIES a. May 9, 2017 MOTION: Commissioner Canady MOVED to approve the May 9, 2017 meeting summary and Commissioner Madrid SECONDED the motion. There were no objections; SO ORDERED. b. July 11, 2017 [Clerk’s Note: This item was removed from the agenda.] 296 Beautification Committee Meeting January 9, 2018 Page 2 c. August 8, 2017 MOTION: Commissioner Sierer MOVED to approve the August 8, 2017 meeting summary and Commissioner Madrid SECONDED the motion. There were no objections; SO ORDERED. d. September 12, 2017 MOTION: Commissioner Sierer MOVED to approve the September 12, 2017 meeting summary and Commissioner Madrid SECONDED the motion. There were no objections; SO ORDERED. e. October 10, 2017 MOTION: Commissioner Sierer MOVED to approve the October 10, 2017 meeting summary and Commissioner Madrid SECONDED the motion. There were no objections; SO ORDERED. 5. PERSONS SCHEDULED TO BE HEARD – None. 6. UNFINISHED BUSINESS a. Discussion – Fall Pumpkin Festival Director Frates provided a report that included various feedback from those that assisted with the activity. Some of the suggestions discussed included adding food vendors; more tent space and separation between activities; louder music; better crowd control; and different ideas for distributing pumpkins. 7. NEW BUSINESS a. Discussion/Recommendation – Change Meeting Time Director Frates noted that the idea of changing the meeting time from 7 p.m. to 6 p.m. was brought forward at a previous meeting with a request for further discussion. MOTION: Commissioner Sierer MOVED to change the Commission meeting time to 6 p.m. and Commissioner Canady SECONDED the motion. There were no objections; SO ORDERED. b. Discussion/Recommendation – Revision to Agenda Order 297 Beautification Committee Meeting January 9, 2018 Page 3 Director Frates referred to the City Clerk’s memorandum that outlined the proposed revisions to the agenda order. It was further noted that this was an effort to streamline the format for all committees and commissions. MOTION: Commissioner Reed MOVED to approve the proposed agenda revisions; Commissioner Madrid SECONDED the motion. There were no objections; SO ORDERED. c. Discussion – 2018 Volunteer Plant Day Director Frates noted two possible dates for consideration: Saturday, June 2 and Saturday, June 9. The Commission discussed the dates proposed. MOTION: Commissioner Sierer MOVED to hold the Volunteer Plant Day on June 9, 2018; Commissioner Canady SECONDED the motion. There were no objections; SO ORDERED. d. Discussion – 2018 Flower Order Director Frates reported that the flower order had been placed. He explained that the department was able to set up an account with a broker and now had access to a wider variety of plant material and often superior plants, compared to some varieties. Frates further noted that the department worked with the Soldotna Parks and Recreation on a shared order; providing cost savings on freight. 8. REPORTS a. Parks & Recreation Director – Frates called attention to the department’s activity report provided in the packet and noted the success of the Skate with Santa Activity. b. Committee Chair – Gabriel welcomed the new committee members, T. Wilson and K. Reed. c. City Council Liaison – Boyle reported on the recent actions taken by City Council; next meeting is January 17. 9. NEXT MEETING ATTENDANCE NOTIFICATION – April 10, 2018 10. COMMITTEE MEMBER QUESTIONS AND COMMENTS It was noted that the Peninsula Garden Club meets on the 2nd Tuesday but it created a conflict for some. Commissioner Reed noted her experience with assembling use of volunteers and offered assistance. Information was provided by Commission members to update the membership contact list. 298 Beautification Committee Meeting January 9, 2018 Page 4 11. PERSONS PRESENT NOT SCHEDULED TO BE HEARD – None. 12. INFORMATION a. December Monthly Report 12. ADJOURNMENT There being no further business before the Committee, the meeting was adjourned at 8:30 p.m. Meeting summary prepared and submitted by: _____________________________________ Jacquelyn Kennedy, Deputy City Clerk 299 "lltff~ (,(J/t/t, a Pa.f~ Ct~ (,(Jt't/t, a ht~" 210 Fidalgo Ave, Kenai , Alaska 9961 1-7794 Telephone: (907) 283-75351 Fax: (907) 283-3014 www.kenai .city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager \/' c.-:> • ./.f 11 Terry Eubank , Finance Director February 1, 2018 Quarterly Financial Report Attached is a relatively easily produced quarterly financial report for the General Fund , Personal Use Fishery Fund , Airport Fund , Water/Sewer Fund , and Senior Fund as of December 31 , 2017 . This report is essentially on a cash basis, so the re are accounts that may not look reasonable . In the General Fund for example, sales and property tax re venue only includes payments made to the Cit y by the Borough through November. The fourth calendar quarter 2017 sales tax filings and tax payments are not in at this point and we will not be rece ived for this quarter un til the end of January or early February. State and Federal is below budget in all funds because of PERS a id. The State doesn 't actually give us any money . Instead they make an 'on-behalf payment to the pension system . Similarly we have not booked expenditures for the PERS the State is covering, so the Non-Departmental department is way under budget. At year-end we wil l record re venue and ex penditures for these items . 300 Quarterly General Fund Expenditure Report For Quarter Ended December 31 , 2017 7/1/2016 7/1/2017 7/1/2017 7/1 /2017 6/30/2017 7/1/2017 6/30/2018 12/31/20 17 Origina l • FY2017 FY2016 Amended YTD Actual Budget Budge t Actual Variance ~ REVENUES Appropriation of Fund Balance $ $ 881,115 $ 881 ,115 $ $ (881,115) 0.00% Taxes 10,635,298 10,837,263 10,837,263 6 ,203,135 (4,634, 128) 57.24% Licenses/Permits and Ambulance 500,653 528 ,000 528,000 264 ,107 (263,893) 50.02% State/Federal 866 ,746 651,238 658,238 4 30,728 (227,510) 65.44% Dock/Multipurpose/Miscellaneous 131,686 119.500 119,500 95,862 (23,638) 80.22% Fines and Forfeitures 83,094 89,500 89,500 51,744 (37,756) 57 .81% Interest and Miscellaneous 350,884 404,595 407,595 321,294 (86,301) 78.83% Transfers/Central Adm in Fees 1,802,305 2,082,393 2,082,393 821,950 (1.260,443) 39.47% Total Revenues 14,370,666 15,593,604 15,603,604 6,186,620 (7,414,7641 52 .48% EXPENDITURES & TRANSFERS General Government 01 City Clerk $ 269,306 $ 298 ,355 $ 298 ,355 $ 119,101 $ 179,254 60.08% 11 Legislative 164,434 169,955 169,955 105,571 64,384 37.88% 12 Legal 302,161 354,743 354,743 142,975 2 11,768 59.70% 1 3 City Manager 350 ,859 350 ,254 350,254 164,762 185,492 52 .96% 15 Finance 603,313 685,410 685,410 327,054 358,356 52.28% 16 Land Administration 26,620 17,740 17,740 343 17,397 98.07% 18 Non-Departmental 581 ,874 655,125 655,125 366,768 288,357 44.02% 19 Planning and Zoning 203,539 231,455 231,455 102 ,721 128,734 55.62% 20 Safety 2 ,420 21, 150 21 , 150 250 20,900 98.82% Total General Government 2 ,504,526 2,784,187 2,784,187 1,329,545 1,454,642 52.25% Public Safety 21 Police 2,640,497 2,921,899 2 ,921 ,899 1,390,792 1,53 1,107 52.40% 22 Fire 2.935,855 3,103,846 3,103,846 1,479,853 1,623,993 52.32% 23 Communications 726,457 854,200 854,200 392 ,953 461,247 54.00% 29 An imal Control 376 ,981 419,777 419.777 204 ,905 214,872 51.19% Total Public Safety 6,679,790 7,299,722 7 ,299,722 3,468,503 3,831 ,219 52 .48% Public Works 31 Public Works Administration 215,606 233,669 233,669 95,370 138,299 59 .19% 32 Shop 627.020 647,332 647 ,332 250 ,144 397 ,188 61.36% 33 Streets 846,987 985,460 985 ,460 350,708 634,752 64.41 % 34 Buildings 304,240 341,444 341,444 139,825 201,619 59.05% 35 Street Light ing 154,579 167,409 167,409 58,578 108,831 65.0 1% 60 Dock 66,018 93,348 93,348 16,621 76,727 82.19% Total Public Works 2,214,450 2,468,662 2,468 ,662 911 246 1 557 416 63.09% Parks and Recreation & Culture 03 Visitor Center 177,795 182,404 182,404 78,827 103,577 56.78% 40 Library 839,714 912,585 919 ,585 424,047 495,538 53.89% 45 Parks, Recreation & Beautification 1,079, 155 1,119,256 1,122,256 506,489 615 767 54.87% T otal Parks and Recreation & Culture 2,096,664 2,214,245 2,224,245 1,009,363 1,214,882 54.62% Total Operating Expenditures 13,495,430 14,766,816 14,776,816 6,718,657 8,058,159 54.53% Transfer to other funds Street Improvement Capital Project Fund 78,000 48,000 48,000 48 ,000 0 .00% Senior Center lmpr. Capital Projects 208 ,400 City Dock Capital Proj ect Fund 35 ,000 New City Shop Capital Project Fund 35,000 35,000 35 ,000 0.00% Public Safety Building Capital Proj. Fund 120,000 120.000 120,000 Kenai Animal Shelter Capital Proj . Fund 35,000 35 ,000 35 ,000 Cemetery Improvements Capital Proj. Fund 250,000 250,000 250 ,000 Employee Health Care Internal Svc. Fu nd 100,000 Senior C iti ze n Special Re venue Fund 183,291 196,730 196,730 49, 183 147,547 75.00 % Debt Service 140 439 142 058 142 058 26,029 116,029 81 .68% Total Transfer to other funds 745 130 826,788 826,788 563,212 263.576 31.88% Total Expenditures & Transfe rs 14,240,560 15,593,604 15,603,604 7,281,669 6,321,735 53.33% Net Revenues over(under) Expenditures $ 130,106 $ $ $ 906,951 $ 906 ,951 • No te: The original budget includes outstanding encumbrances at 6/30/2017. 301 Quarterly Persona l Use Fishery Fund Expenditure Report For Quarter En d ed Dece mber 31 , 2017 7/1/2016 7/1/2017 7/1/2017 7/1/2017 6/30/2017 7/1/2017 6/30/2018 12/31/2017 Or iginal • FY2017 FY2018 Amended YTD A ctual Budget Budget Actual Variance ~ RE VEN UES Beach Parking $ 182,853 $ 183,000 $ 183,000 $ 170,429 $ (12.571 ) -6.87% Beach Camping 238,752 239,000 239,000 210,269 (28,731 ) -12.02% Dock Launch & Park 128,109 130,000 130,000 111 ,7 68 (18,232) -14.02% Dock Park ing Only 14,807 15,000 15,000 12,009 (2,991) -19.94 % Participant Drop-off Fee 10,717 11 ,000 11 ,000 7,481 (3,519) -31.99 % Interest Earn ings 671 750 750 4,184 3,434 0 .00% PERS Grant 2 ,688 2,312 2 ,312 (2 ,312) -100.00% Credit Card Fee s (3,680) (4,500) (4,500 ) (1 ,176) 3 ,324 -73.87% Total Revenue 574,917 576,562 576 ,562 514,964 (61,598) -10.68 % EXPENDITU RES Pub lic Safety $ 116,874 $ 109,195 $ 109,195 $ 97,304 $ 11 ,891 10.89% Streets 53,068 51,506 51,506 24,476 27,030 52.48% Boating Faci lily 72,669 72 ,347 72,347 46,491 25,856 35.74% Parks , Recreation & Beautification 268,686 279,584 279 ,584 197,582 82,002 29.33% Total Expen ditures 511 ,297 512,632 512,632 365,853 146,779 28.63% Net Reven ues over Expenditures $ 63,620 $ 63,930 s 63,930 $ 149,111 s 85,181 • Note: T he origi nal budget includes outstanding encumbran ces at 6/30/2017 . 302 Quarterly Air port Fund Expenditu re Report For Quarter Ended December 31 , 20 17 7/1/2016 7/1/2017 7/1/2017 7/1/20 17 6/30/2017 7/1/20 17 6/30/2018 12/31 /2017 O r iginal• FY2017 FY201 8 Amended YTD Actual Budget Budget Actual Varian ce ~ REVEN U ES Appropriation of Fund Balance $ $ $ $ $ 0.00% State/Federal 29,725 23,552 23,552 (23,552) 0.00% Interest , Leases & Fees 786 ,527 805,326 805,326 534 ,509 (270,817 ) 66 .37% Termina l Revenues 683,766 786,514 786 ,514 348,757 (437 ,757) 44.34% La nding Fees 529 , 132 375,000 375,000 205,061 (169 ,939) 54.68 % T ransfe rs In 1, 175,414 1,191 ,711 1,191 ,711 (1 ,191 ,711) 0.00% Total R eve nu es 3,204,564 3,182,103 3,182,103 1,088 ,327 (2,0 93,776} 34.20% E XPENDITURES & TRANSFERS Terminal Area $ 578 ,256 $ 645,425 s 645,425 s 245 ,557 $ 399,868 61 .95% Airfield 1,640,517 1,697,523 1,697 ,643 709,463 988 , 180 58.21 % Administration 411 ,745 336,914 384 ,728 184,704 200,024 51 .99 % Other Buildings & Areas 12,510 180,411 132,477 82,004 50,473 38.10 % Training Facility 40,295 38,326 38 ,326 8 ,270 30,056 78.42 % Total Expenditures 2,683,323 2,898,599 2,898,599 1,229,998 1,668 ,601 57.57 % Transfer to other funds Airport Improvement Capita l Projects 127,437 115 981 115,981 0.00% Total Transfer to other funds 127,437 115,981 115,981 0.00% Total Expenditures & Transfer s 2 ,810 ,760 2,898,599 3,014,580 1,345,979 1,668,601 5 5.35% Net Revenues over Ex p enditures $ 393,804 $ 283,504 $ 167,52 3 $(257,652) $ (425,175) • No te: The ori ginal budget inc ludes outstanding en c umbrances at 6/30/2017 . 303 Quarterly Water Sewer Fund Expenditure Report For Quarter Ended December 31, 2017 7 /1/2016 7/1/2017 7/1/2017 7/1/2017 6 /30/2017 7/1/2017 6/30/2018 12/31 /2017 Original• FY2017 FY2018 Amended YTD ~ Budget Budget Actual ~ .% REVENUES Appropriation of Fund Balance $ $ $ $ $ #D IV/O! State/Fe deral 23 ,142 17,228 17,228 (17,228) 0.00 % Water/Sewer Fees 2,725,982 2,863,453 2 ,863,453 1,452,827 (1,410,626) 50.74% Penalty and Interest 35 ,838 43,250 43 ,250 17,902 (25,348) 41.39 % Interest and Miscellaneous 9,478 19,000 19,000 21,378 2,378 112.52 % Total Revenues 2,794,440 2,942,931 2,942,931 1,492,107 (1,450,824} 50 .70 % EXPENDITURES & TRANSFERS Water $ 715,077 $ 864,277 $ 864,277 $ 402 ,699 $ 461 ,578 53.41 % Sewer 365,094 513,830 513,830 191 ,693 322,137 62 .69% Wastewater Treatment Plant 987,096 1 ,075 ,372 1,075,372 520 ,663 554 709 51.58% Total Expenditures 2,067,267 2,453,479 2,453,479 1,115,055 1,338,424 54.55% Transfer to other fu nds - Water & Sewer Capital Projects 353,792 Employee Health Care Fund 8,501 Total Transfer to other funds 362.293 ---- Total Expenditures & Transfers 2,429,560 2,453,479 2,453,479 1, 115,055 1,338,424 54.55% Net Revenues over Expenditures $ 364,880 $ 489,452 $ 489,452 s 377,052 $ (112,400) • Note: The original budget includes outstanding encumbrances at 6/30/2017. 304 Quarterly Senior Fund Expenditure Report For Quarter Ended December 31 , 2017 7/1/2016 7/1/2017 7/1/2017 7/1/2017 6/30/2017 7/1/2017 12/31/2017 12/31 /2017 Original* FY2017 FY2018 Amended YTD Actual Budget Budget Actual Variance ~ REVENUES Appropriation of Fund Balance $ $ 24 ,041 $ 24 ,041 $ $ (24 ,041) 0.00% State Grants 208 ,654 198,299 198,299 95,424 (102,875) 48.12% USDA Grant 22,415 15,000 15,000 5 ,564 (9,436) 37.09% Choice Waiver 220,419 225,000 225,000 95,393 (129,607) 42.40% KPB Grant 126,207 126,207 126,207 126 ,207 100.00% United Way 5,977 5,977 5,977 4,702 (1,275) 78 .67 % Rents & Leases 8,260 13 ,000 13,000 4,022 (8 ,978) 30 .94% Donations 14,717 80,000 83,500 9,942 (73,558) 11 .91 % Meal Donations 75 ,321 75 ,000 75 ,000 40 ,714 (34,286) 54.29 % Transfer from General Fund 183,291 196,730 196 ,730 49 ,1 83 (1 47,547) 25.00% Other 241 300 300 9 (291) Total Revenues 865,502 959,554 963,054 431,160 {531,894} 44.77 % EXPENDITURES & TRANSFERS Senior Citizen Access $ 153,905 $ 166,319 $ 166,319 $ 74 ,522 $ 91,797 55.19 % Congregate Mea ls 218,035 236,396 239,021 105,645 133,376 55.80% Home Meals 176,509 195,103 195,978 84 ,544 111,434 56.86% Senior Transportation 67,803 80,523 80 ,523 37 ,296 43,227 53.68% Choice Waiver 249 ,525 281 ,213 281 ,2 13 118,420 162 793 57 .89% Total Expenditures 865,777 959,554 96~ 054 420 ,427 542,627 56.34% Transfer to other funds - Total Transfer to other funds Total Expenditures & Transfers 865,777 959,554 963,054 420,427 542,627 56 .34% Net Revenues over Expenditures $ (275) $ $ $ 10,733 $ 10,733 * Note: The original budget includes outstanding encumbrances at 6/30/2017. 305 'litff~ a1/t/i a Pa6'~ Ot'tf a1/t/i a f"u.ttif'e" MEMORANDUM 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-75351 Fax : (907) 283-3014 www . kenai. city TO: THROUGH: FROM: DATE: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager ?·~ - Terry Eubank, Finance Director 1·{_- February 1, 2018 SUBJECT: December 2017 Quarterly Investment Report City of Kenai Investment Portfolio At December 31 , 2017 the City had investments with a market value of $22,510, 121 that is up from $22,234 ,340 at September 30 , 2017. The City's portfolio is yielding 1.31 % that is up from 1.18% at September 30, 2017. The Federal Reserve raised the Federal Funds Rate in December, which increased the portfolios yield but devalued many of the assets held in the portfolio. There is an inverse relationship between bond values a nd interest rates meaning when interest rates increase, bond values decrease . Fair market value adjustments to the portfolio through Dec ember 31 , 2017 are a negative $129,534. The relative short duration of the portfolio has limited the negative adjustment and rising interest rates are a welcome event and should increase the City's investment revenues in years to come . City's Investment Portfolio US Agency Securities AML Investment Pool Wells Fargo Money Market FDIC Insured Certifi c ates of Deposit Bank Balance Total Permanent Fund Investments $ 5,972,735 1,146,771 2,484,353 11,258,580 1 ,647,682 $ 22.510.121 Fourth quarter 2017 saw a continued rally in the equity markets and another Federal Funds Rate change . Short term interest rate increases are projected to in c rease more in 201 8 depending upon the performance of the nation 's economy. Equities propelled the portfolio to a return of 12.03 % for 2017. Since in ception the portfolio has returned 8 .78%. As of December 31 , 2017 the portfolio value was $29 , 126,973, comprised of $25,751 ,927 (88.41 %) Airport Land Sale Permanent Fund , $3,231,213 (11 .09%) General Land Sale Permanent Fund monies, and $143,83 3 (0 .50 %) Kenai Community Foundation holdings. 306 Page 2 of 2 December 3 1, 2017 Quarterly Investment Report With the Airport Land Sale Permanent Fund's year ending balance of $25 ,751 ,927 , the allowable transfer to airport operations for FY2018 will be $1,210,348. The FY2018 budgeted amount was $1,191,711 meaning the actual will be $18,637 more than budgeted. The administration will be introducing and ordinance at the February 21 st meeting to authorize the additional $18 ,637 to be transferred . The General Land Sale Permanent Fund 's year ending balance of $3,231 ,213 is a increase of $235 , 180 from the December 31, 2016 balance. The allowable transfer to the General Fund for operations is limited to the lesser of 5% of the funds year ending balance , $161,561 or the years actual earning $384,982, the transfer to the General Fund for operations in FY2018 will be $161,561 . The FY2018 budgeted amount for this transfer was $150,993 . The administration will be introducing and ordinance at the February 21 st meeting to authorize the additional $10,568 to be transferred . 307 CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY December 31, 2017 Cash & Cash Equivalents Wells Fargo Checking Wells Fargo Secured Money Market FDIC Insured Certificates of Deposit Alaska Municipal League Investment Pool Total Cash & Cash Equivalents Government Securities Maturities Less than 1 Year Maturities 1 to 2 Years Maturities Greater than 2 Years Total Government Securities Total Portfoli o Investm ent Portfolio -Purc hase Price $ 20,088, 156 In vestment Portfolio -Fair Value 06/30/17 20, 134,606 Fair Value Adjustment -06/30/17 Fair Value Adjustment thru -12/31 /17 Cummulative Change in Fair Value (65,458) (64,076) $ 1129 534) $16,000,000 $12,000 ,000 $8.000,000 $4 ,000,000 $0 December 31, 2017 Fair Market Value $ 1 ,647,682 2,484,353 11 ,258 ,580 1 146 771 16,537 ,386 1,494,020 1,493,670 2,985,045 5,972 ,735 $ 22 ,510, 121 Portfolio Liquidity Current Y ield 0.00% 0.81 % 1.64% 1.31% Average Yield 0.96% 1.38% 1.47% Liquidity 20% Maturity 1 • 2 years Maturity over 2 years Minimum 30 % Maximum a Policy MinimumlMaxtmum •Actual 308 CITY OF KENAI Investments 12-31 -17 COK CITY OF KENAI INVESTMENTS 12/31/2017 Current year cost or Unrealized Expected Call 06/30/17 12/31 /17 Gain Accrued SECURITY o r Maturity CUSIP original cost Market Value Market Valu e or Loss Interest FFCB 1.0 08/23/18 w/5days after 11/23/16 3 133EGBG9 1,000,000 996,31 0.00 995 ,8 10.0 0 (500 .00) 3.555.56 FHLMC 0 .875 6/26/18 Bullet 3134G32U3 500.991 497 ,960.00 498 ,2 10.0 0 250 .00 60.76 1 TIME 5124 118 w / 5 FHLMC 1.70 8/24 120 Gays 3t34GBM 01 t 000000 996460 00 989.00000 (7.460 00) 5 .99722 9 13012016 Ouaneny w 110 cays Step 3/17 150. 3118 1.75. 3119 FNMA 1.375 3130121 2 0. 3120 325 3136G30 V4 1,000,000 988220 00 S80.85000 (7 370 00) 3.475 69 11/25/2016 Ouaneny FNMA 1505125/21 w/10days 3136G3 MW2 502 •79 489.71 0 00 '87 855 00 (1.85500) 75000 TVA 3.875 2/15/21 Bullet 880591EL2 555,678 537.005.00 527,340.00 (9,665.00) 7,3 19.44 TOTAL 6,057.648.07 6,004.135.00 5,972,735.00 (31 ,400.00) 21 ,946.17 FDIC Insured CD's co -12/31/10 1.00 GMATBK 06/18/18 57803 02006LE33 245,000 244,279.70 244 ,446 .30 166.60 107.40 1.95AXP 11120/18 35328 02587CCVO 247.106 248.857.44 247,706 .42 (1.151.02) 554 .23 2 .00AXP1 1/28/18 27471 025870WJ3 247.000 248.726.53 247.605.15 (1.121 .38 ) 460.16 0 .90 ASHEVL 3129/18 29663 04407RAZ4 24 5,000 244,507.55 244 ,742.75 235.20 18.12 1.00 BMW 6/18/18 35141 05580AEU4 245,000 244,279.70 244.446.30 166.60 100.68 1.05 BMO 3129/18 16571 05581WE04 245,000 244 ,811 .35 244 ,840.75 29.40 655.46 1 .20 BNCCTL 9/28118 4033 05890NAF8 247.000 246 ,342.98 246 .271 .35 (71.63) 24.36 1.0 BBONBK 9/24/18 26610 062683AF4 248095 246 ,539.2 8 246 ,799.68 260.40 6 1.15 2.00 WFC 10/27122 351 1 94986T2 N6 245 ,000 245,000.00 245,16 1 70 161.70 886.03 1 .00 ZION 3/22118 2270 98878BDN5 245,000 244 ,806.4 5 244,860.3 5 53 .9 0 677.95 TOTAL FDIC Insured co·s 11 .303 ,200.69 11 ,302,588.0 3 11 ,258,5 79 .98 (44.008.05) 25.600.96 WELLS MONEY MKT 2.484 ,353.03 2,484,353.03 2.484.353.03 1,830.98 AML POOL ·City ACCT Agreed to Amlip 1.146,771 .3 7 1.146.77 1.3 7 1 146 771.37 1,500.85 Agreed to GL 20,991 ,973.16 20,937,847.43 20,862 .439.38 (75.408.05) 50.878 .96 WF Cash AgreedtoWF 1.647,682.07 1 64 7 682 .07 1 647.682.07 TOTAL 22 .639.655.23 22.585,529.50 2 2.51 0,121.45 (75.408.05) 50.8 78.96 MONTHS (129,533.78) TOTAL CURRE NT YIELD Max/Min Return Actual Difference Maturity over 2 years 30% Maximum 6 , 753 ,036.44 1.8279'1.. 6 ,154,498 598,538.18 OK Li uidit 20% Minimum 4 ,502 ,024.29 0 .9866% 13,185.351 8 .683.326.29 OK 1.3111% 22 ,510.121 309 CITY OF KENAI PERMANENT FU ND INVES TMEN T PORTF OLIO SU MMARY December 31, 2017 Curre nt or Curr ent Fai r Market Value Av e rage Po rtfolio Target Portfolio 31 -Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 Yiel d Wei ght Weigh t Maxi mum Fi x ed Income Cash & Cash Equivalents 1,531 ,191 1,676,898 1,686,861 1,477 048 1,800,796 0.81 % 6.05% Total Cash & Cash Equivalents 1,531 ,191 1,676,898 1,686,861 1,477 ,048 1,800,796 Government & Corporate Securities Governm ent Securities 5 ,381 ,797 4 ,872,14 3 4 ,074,384 4,757,095 4,868,584 2.07% 17.59% Corporate Securities 5,040,425 5,438,4 48 6,085,153 5,738,396 5,851,724 2.51% ~ Total Governmen t & Corporate Securities 10.4 22,222 10 ,310,59 1 10,159,537 10,495,491 10 ,720,308 2.25% 37.22% T otal Fixed Income 11 ,953,41 3 11 ,987 ,489 11,84 6,398 11 ,972 ,539 12,521 ,10 4 2 .20% 43.27% 45.00% 65.00% Equities Domestic Equities Standard & Poor's 500 Index 5,537 ,151 5,555 ,087 5,486,353 5,692,088 5,813,002 20.06 % 20.00% 2 5.00% Standard & Poor's 600 Small-Cap Index 1,450 ,836 1,616 ,615 1,638,821 1,734,893 1,795,434 5.83% 5.00% 10.00% Standard & Poor's 400 Mid-Cap Index 2.835,581 2,992,070 3,039,776 3,126,278 3.264,21 6 ~ 1.Q.QQli 15.00% Total Domestic Equities 9 ,823,568 10,163,772 10,164,950 10,553,259 10,872,652 36.69% 35.00% 50.00% International Equitie s Vanguard Europe Pac ific ETF 2,583,625 2 ,791,741 3,020,144 3 ,182 ,832 3,192,147 10.08% 10 .00% 15.00% Vanguard Emergi ng Markel ETF 1,211 ,948 1,420,558 1,351,080 1,458,540 1,462 ,330 ~ ~ 10.00% Total International Equities 3 ,795,573 4.212,299 4,371,22 4 4,64 1,372 4,654,477 ~ 15.00% 25.00% Real Estate Vanguard REIT ETF 1,242,077 1,342,088 1,081 ,990 1,080 ,170 1,078,740 4 .84% ~ 10.00% T otal Real Es tate 1,242,077 1,342,088 1,081 ,990 1,080 .170 1,078,74 0 ~ 5 .00% 10.00% T otal Equiti es 14,86 1,218 15 ,718, 159 15 ,618,164 16,2 74,80 1 16 ,605,869 Total Portfolio 26,814,631 27,705 ,648 27,464,562 28,247,340 29,126,973 lZJWi .!.22:.QQ% ~% 150.00% Total A LSPF Balance 23,690 ,184 24 ,477 ,380 24 ,282,1 4 1 24 ,974,2 24 25,751.927 Total GLSPF Balance 2,996 ,033 3,095 ,588 3,0 46,800 3,1 33,627 3,231,21 3 Total Kenai Community Foundation 128 ,413 132 ,680 135,621 139,488 143,833 Portfolio Comp ositio n Fixed Income Standard & Poor'& Standard & Poor'• Standard & Poor'a Vanguard E1Xope Vanguatd Emervlng Vang~rd RE IT ETf SOO Index 800 Small.Cap 400 M l~p Index P.ctflc Elf Market ETF D CUf<ent Ponfolio Welgti l a Targe1 PortfoMo Weight DMaxlmum Portf<>IW> Weight Portfolio Perform an ce tS.00% 10.00% 0.00% ..S.OO% f----:C,-un-.-,..""M,..ont'"'h----,.----c=-u-no_nt_a=-uo-n-er----,-----,y.,.. .. -,,.-=o-.1-.----r-----,L-•s-1-1Y"'•-.,------,r---.,-,nce-....,-nt-o""oe-1e----l a Portfoleo o 71% 3 1~.4 12 03% 12.03% 8 78% •BenchrNril; o 60% 2 03% 11 74% 11.74% 8.84% 310 $27,000,000 $25,000,000 $23,000,000 $21,000,000 $19,000,000 $17,000,000 $15,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Total ALSPF Balance to Airport Operations. Transfer of $1,075,123 to Airport Operations. Transfer of $1,195,313 to Airport Operations. to Airport Operations. General Fund Operations. Total GLSPF Balance Transfer of $154,172 to General Fund Operations. Transfer of $153,493 to 1----------l General Fund Operations. Tra nsfer of $1,147,714 to Airport Operations. Transfe r of $149,802 t o General Fun d Operations. / / / / / / / / / / / / / / / / / / / / / / $160,000 $140,000 $120,000 $100,000 $60,000 $40,000 $20,000 $- Total Kenai Communit Foundation Balance $50,000 investment. Initial investment of $66,143 . 311 CITY OF KENAI PERMANENT FUNDS Account Statement -Period Ending December 31, 2017 ACCOUNT ACTIVITY Portfolio Value on 11-30 -17 Contributions Withdrawal s Change in Market Va lue Interest Dividends Portfolio Value on 12-31-17 INVESTMENT PERFORMANCE 28,922,926 0 -374 50,743 25,414 128,263 29,126,972 Current Account Benchmark: Equi ty Blend 1'.00 12.00 'iii' .. ~ 10.00 ~ E ~ " 1.00 a: ~ 0 6.00 ... ., c " ~ 4.00 " ... 2.00 0.00 •Portfolio 12.03 Benchmar1< 11 .14 I 8.84 Perfonnance is Annualzed for Periods Gre•ter than One Year MANAGEMENT TEAM Clie nt Relation shi p Man age r: Yo ur Po rtfolio Manager: Contact Phone Number: PORTFOLIO COMPOSITION Erner Mkts Real Est ate 5% 4% ~ ALASKA PERMANENT CAPITAL MANAGEMENT -------,.. ,r, 1111 ,111,.. A Amber Fri zze ll, AI F® Amber@apcm.net Bill Lierman , CFA I!!> 907/272 -7575 312 Alaska Pennanent Capita l Management Co. PORTFOLIO SUMMARY AND TARGET CITY OF KENAI PERMANENT FUNDS D ecember 31 , 2017 Asset Class & Target FIXED INCOME (45%) US Fixed Income (40.0%) Cash (5.0%) Subtotal: EQUITY (55 %) US Large Cap (20.0%) US Mid Cap (10.0%) US Small Cap (5 .0%) Developed International Equity (10.0%) E merging Markets (5.0%) R eal Estate (5.0%) Subtotal: TOTAL PORTFOLIO % Market Value Assets 10,7 10,290 36.8 1,832,706 6.3 12,542 ,995 43.1 5,7 91,11 0 19 .9 3,264,2 16 11.2 1,795,434 6.2 3,192,147 11.0 1,462 ,330 5.0 1,078,740 3 .7 16,583 ,977 56.9 29,126,972 100 Range 35 % to 65% 0 % to 10 % 15% to 25 % 5% to 15 % 0% to 10% 5% to 15% 0% to 10% 0% to 10% 313 Alaska Permanent Capital Management Co. PORTFOLIO APPRAISAL CITYOFKENAIPERMANENTFUNDS December 3 1, 2017 Yie ld Average Total Market Pct. Annual Accrued to _Q uant!.!r_ Security C ost Average Cos t Price Value Assets Income Interest Maturity ----- FNMA & FHLJ\llC 29,5i7 FH LMC POOL G l4203 104.56 30,863 104.27 30,778 0.11 1,18 1 98 1.43 4.000% Due 04-0 1-26 Accrned Interest 98 0.00 30,8 63 30,877 0.11 98 CASH AND EQUIV A LENTS CASH RECEIVABLE 11 ,7 11 II ,7 11 0.04 D IV ID END ACC R UA L 22,702 22 ,702 0.08 WF A DV GOVT MM FD-INST L #175 1 798,292 ___ 798,292 ~ 832,706 832,706 2.86 CORPOR ATE BONDS 200 ,000 MCDONALDS CORP M/T/N 104.3 5 208,698 100.60 20 1,192 0 .69 10,700 3,567 1.70 5 .350% Out: 03-01-18 200,000 CO MM ONWEAL TH EDISON 123.20 246,400 102.70 205 ,392 0.7 1 13 ,900 6,409 1.89 6.950% Du e07-15-18 200,000 SOUTHERN CAL ED ISON 122.07 244,134 102 .2 1 204,420 0.70 11,000 4 ,156 1.90 5 .500% Due 08-15-18 200,000 TOYOTA MOTOR CRED IT CORP 100.48 200,958 100.23 200,4 58 0.69 4 ,200 1,913 1.87 2.100% Du e 01-17-19 200,000 MIC RO SOFT CORP 117.24 23 4,472 103.04 206,088 0 .71 8,400 700 2.00 4.200% Due 06-01 -19 200,000 TORONTO-DOMINION BANK 101.89 203 ,782 100.03 200,052 0.69 4,500 1,200 2.23 2.250% Due 09-25-19 200,000 HSBC USA INC 99.61 199,2 16 100.12 200,232 0 .69 4 ,750 633 2.3! 2.375% Due 11 -13-19 250,000 CA PITA L ONE 99.94 249,850 99.70 249,247 0.86 5,875 2,464 2.50 2.350% Due 0 1-3 1-20 200,000 ENTE RPR ISE PRODUCTS OPER 11 2.75 225,494 106.84 2 13 ,686 0 .73 10 ,400 3,467 2.53 5.200% Due 09-01-20 250,000 PNC BANK NA 99.72 2 49 ,3 00 100.15 250,375 0 .86 6,125 953 2.39 2.450% Due 11-05-20 200,000 NBC UN IVERSAL MEDI/\ LLC 109.20 2 18,408 105 .99 211,976 0.73 8,750 2,187 2.44 4.375% Due 04-01-21 200,000 AME RI CAN EXPRESS CREDIT 99.92 199,850 99.21 198,422 0 .68 4,500 700 2.49 2.250% Due 05-05-21 200,000 MORGAN ST AN LEY 114.98 229,964 109.38 218 ,768 0.75 11,000 4 ,675 2.72 5.500% Due 07-28-21 200,000 G ILEAD SCIENCES INC 96.28 192,564 97.58 195,154 0 .67 3,900 1,300 2.56 1.950% Due 03-0 1-22 200 ,000 BANK AMER CO RP 99.34 19 8,686 102 .30 204,600 0.70 6,600 3,11 7 2.80 3.300% Due 01-11-2 3 314 Alaska Permanent Capita l Management Co. PORTFOLIO APPRAISAL CITYOFKENAIPERMANENTFUNDS December 31. 2017 Yield Average Total Market Pct. An nu a l Accrued to Q uantity Security Cost A vcrage Cost Price Value Assets Income Inte r est Maturi ty ------- 200,000 AVALON BAY COM MU NITIES 100.82 201,632 99.77 199,550 0.69 5,700 1,678 2.8 9 2.850% Due 03-15-23 150,000 DISCOVERY COMMUNICA TIONS 98 .88 14 8,320 99.73 149 ,590 0.5 1 4 ,8 75 1,2 19 3.30 3.250% Due 04-0 1-23 150,000 NEWELL BRAN DS INC 106 .0 1 159 ,022 103.48 155.2 14 0 .53 5,775 1,444 3.12 3.850% Due 04-01-23 200,000 Waste Management Inc 100.24 200,478 98.06 196,11 8 0 .67 4 ,800 6 13 2.79 2.400% Due 05-15-23 200,000 A FL AC INC 104.97 209,950 103.85 2 07 ,692 0.71 7 ,25 0 322 2.86 3.625% Due06-1 5-23 200,000 BANK OF NEW YO RK MELLON 97.83 195,666 96 .92 193,842 0.67 4,400 1,650 2.79 2.200% Due 08-16-2 3 200,000 JPMORGAN C HASE & C'O 105 .18 210,3 62 105.0 9 2 10 ,188 0.72 7,750 3,229 2.95 3.875% Due 02-0 1-24 200,000 METLIFE INC 10 5.46 210,930 104 .62 209,234 0.72 7.200 1,620 2.79 3.600% Due 04-10-24 175,000 PRUDENTIAL FINANC IA L I NC' 103 .15 180,505 103.87 18 1,769 0.62 6,125 78 3 2.83 3.500% Due 05-15-24 200,000 WELLS FA RGO & COM PANY 99.88 199,764 I 0 1.55 203.102 0.70 6,600 2,053 3.04 3.300% Du e 09-09-24 150,000 REYNOLDS AMERI CAN INC 108.47 162,700 106.62 159,937 0.55 6,675 352 3.43 4.450% Due 06-12-25 200,000 AP PLI ED MATE RIA LS INC' 107.96 2 15,9 12 106.14 2 12,284 0.73 7,800 1,95 0 3.00 3.900% Due 10-0 1-25 150,000 AN H EUSER-13USC H INl3EV FI N 10 3.0 1 154,5 19 10 3.2 0 154 ,797 0.53 5,475 2,28 1 3.20 3.650% Due 02-01-26 200,000 LOWE'S COS INC 100.05 200,098 100.35 200,708 0.69 6 ,200 999 3.05 3.100% Due 05-03-27 Acc ruc.:ct I ntcrcst 57,635 0 .20 --- 5,95 1,636 5,85 1,724 20.09 57,635 DOMESTIC FIXED I NCOME FUNDS/ETF 999.900 GOLDM AN SACH S PRIME OBLIGATIONS FUND 1.00 1,000,067 1.00 1,000,000 3.43 NA DOMESTI C LARGE CAP EQUITY FUNDS/ETF 32,600 FLEXSHARES QUAL [)IV ETF 40.67 1,32 5,7 12 45.03 1,467,978 5.04 NA 16,200 SPDR S&I' 500 ETF 110.49 1,78 9 ,889 266.86 4 ,323,132 14.84 NA 3,11 5 ,601 5,79 1,110 19 .88 DOMESTIC M ID CAP EQUITY FUNDSfETF 17,200 !SHAR ES CORE S&P MIDCAP 400 ETF 66.27 1,139,851 189.78 3,264,2 16 11 .21 NA 2 315 Alaska Permanent Capital Management Co . PORTFOL lO APPRAI SAL CITY OF KENAI PE RMANEN T FUNDS December 3 1, 2017 Yield Avera ge Total Market Pct. An n u a l Accrued t o Q uantity Security C ost A vcr age C ost Price Va lue Assets Income Int e r est M atur i ty -------- DOMEST IC S MALL C AP E Q UI TY F UN DS/ETF 23 ,3 75 ISl-I ARES S&I' SMAL LCA P 60 0 INDEX ETF 3 1.00 724,633 7 6.8 1 1,795 ,434 6 .1 6 NA I NT E R NAT I ONAL EQU ITY F UN OS/ET F 48,3 00 ISl-I ARES ET F CO RE MSC ! EAFE 50.8 1 2,4 54 ,1 13 66.09 3,192,14 7 10 .96 NA EME R G I NG MARKET FUN DS/ETF 25,700 !S HA RES ETF COR E MSC! EM ERG ING MKTS 37.29 958,305 56.90 1,462,330 5.02 NA R EAL ESTATE 13 ,000 VANGUA RD RE IT ETF 35.19 4 57,4 63 82.98 1.078,740 3.70 NA U.S. TREASUR Y 25 ,000 US TREASURY NO 'I ES 99 .94 24,98 4 99.54 24 ,886 0.09 3 12 4 1 1.78 1.2 50% Due 11 -15-18 200,000 US TREASU R Y NOTES 99.64 199,281 98.88 197.758 0.68 2,500 42 8 1.88 1.250% Due 10-3 1-1 9 525,000 US TREASURY NOTES 99.5 3 522,5 19 99 .02 5 19,834 1.78 7,21 9 337 1.8 9 1.375% Due 12-15-19 125 ,000 US T REASU RY NOTES 99.85 124,8 07 98 .64 123,296 0.42 1,562 535 1.90 1.250% Due 02-29-20 150,000 US TR EASU RY NOTES 100.0 6 150,094 96.84 145,266 0.50 1,68 7 5 2.0 6 1.1 25% Due 06-30-2 1 375,0 00 US TR EASU RY NOT ES 99.34 372,51 0 100 .19 3 75,73 1 1.29 7 ,969 22 2 .0 7 2.125% Due 06-30-2 1 750 ,000 US T REASU RY NOTES 100.59 754,4 14 9 9.57 74 6,77 5 2.56 15,000 2,596 2.12 2.000% Due 10-3 1-2 1 525,000 US T R EASU RY NOT ES 101.3 1 53 1,879 99.4 9 522 ,333 1.79 10 ,500 58 2.13 2 .000% Du e 12-3 1-2 1 300 ,000 US TREASURY NOTES 98.2 4 294,727 10 1.36 304,068 1.04 7,500 2,833 2 .24 2.500% Due 0 8-15-23 500,000 US TREASURY NOTES 100.23 501,133 100.32 501,600 1.72 11 ,875 4 ,485 2.3 2 2.375% Due 08-15-24 175 ,000 US T REASURY NOTES 100.65 176,135 94.19 164 ,8 29 0.57 2 ,844 369 2 .40 1.625% Due 05-15-26 250,000 US TREASURY NO T ES 95.26 238,14 5 96.78 24 1,942 0.83 5,000 649 2.4 1 2.000% Due 11-15-26 150,000 US TREASURY NOTES 100.24 150,363 98.69 148,032 0.5 1 3,375 1,275 2.4 1 2.250% Due 02-15-27 Accru ed Interest 13,633 0 .05 --- 4,040,990 4,029,984 13.8 4 13,633 3 316 Alaska Permanent Capital Management Co . Q ua ntity Sec uri ty AGENCIES 250,000 FHLM C' I. 700% Due 09-29-20 250,000 FEDERA L HO M E LOAN I3ANK -STEP UP 2.000% Due 11 -14-22 300,000 FEDERAL FA RM C RED IT BANK 2.850% Due 04-24-25 Aecnied Interest TOT AL PORTFOLI O PORTFOLIO APPRAISAL CITY OF KENAI PERMANENT FUNDS December]], 2017 Average Total C ost A vcrage Cost Price --- 99.73 249,325 98.82 99.85 249,625 99.48 100.00 300,000 99.54 79 8.950 2 1,505,176 4 Market Value 247,055 248,697 29 8,623 3.330 797.706 29.126,972 Yie ld Pct. Annual Accrued to Assets lncome Inte r es t Maturity -------- 0.85 4,250 1,086 2.14 0.85 5,000 653 2 .11 1.03 8,550 1,591 2.92 0.0 1 2.74 3,330 100 29 7,549 74,697 317 Alaska Pennanent Capital Management Co. TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDS From 12-01-17 To 12-31-17 T rade Date Settle Date Securi ty D EPOSITS AND EXPENSES MANAGEMENT FEES 12 -3 1-17 12-31-17 MANAGEMENTFEES DIVIDEND DOMESTlC F IXED INCOME FUNDS/ETF 12-29-1 7 01 -03 -18 GOLDMAN SACH S PRIME OBLIGATIONS FUND DOMESTIC LARGE CAP EQUITY FUNDS/ETF 12-15-i7 01 -31 -1 8 SPDR S&P 500 ETF 12-21-17 12-28-17 FLEXSHARESQUALDIV ETF DOMESTIC MID CAP EQUITY FUNDS/ETF 12-19-17 12-26-17 !SHARES CORE S&P MIDCAP 400 ETF DOMESTIC SMALL CA P EQUITY FUNDS/ETF 12-19-17 12-26-1 7 !SHARES S&P SMALLCAP 600 INDEX ETF EMERGING MARKET FUNDS/ETF 12-19-17 12-26-17 ISHARES ETF CORE MSCI EMERGING MK.TS INTERNATIONAL EQUITY FUNDS/ETF 12-19 -1 7 12-26-17 I SHARES ETF CORE MSCI EAFE Quantity Trade Amount 4,093 .91 4,093.91 1,124.31 22 ,702.39 13 ,018 .7 1 35,721.10 8,47 1.14 6 ,200.29 25,018.20 35 ,300.83 318 Alaska Pennanent Capital Management Co. TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDS From 12 -01 -17 To 12-31-1 7 Trade Date Settle Date REAL ESTATE Security 12-2 1-17 12-27-17 VANGUARDREITETF INTEREST CASH AND EQUIVALENTS 12-31-17 01-02 -18 WF ADV GOVT MM FD-lNSTL #1751 CORPORA TE BONDS 12-01-17 12-0 1-17 MICROSOFTCORP 4.200% Du e 06-0 1-1 9 12-12-17 12-12-17 REYNOLDS AMERICAN INC 4.450% Due 06-12-25 12-15-17 12-15-17 AFLACINC 3.625% Due 06-15 -23 FNMA&FHLMC 12-15-1 7 12-15-17 FHLMC POOLG14203 4.000% Due 04-01-26 U.S. TREASURY 12 -15-1 7 12-1 5-17 US TREASURY NOTES 1.375 % Due 12-15-19 12-31-17 01-02-18 US TREASURY NOTES 1.125% Du e 06-30-21 12-31-17 01-02-18 US TREASURY NOTES 2.000 % Due 12-31-21 2 Quantity Trade Amount 16,426.80 128,262.67 508 .95 4,200.00 3,337.50 3,625 .00 11 ,162 .50 101.IO 3,609.38 843.75 5,250.00 319 Alaska Permanent Capital Management Co. TRANSACTION SUMMARY CITYOFKENAIPERMANENTFUNDS From 12-01-17 To 12-31 -17 Trade Date Settle Date Security 12-3 1-1 7 01-02-18 US TREASURY NOTES 2.125 % Du e 06-30-21 PRINCIPAL PA YDOWNS FNMA&FHLMC 12-15-1 7 12-15-17 FHLMC POOL G l 4203 4.000% Due 04-01-26 SALES, MATURITIES, AND CALLS DOMESTIC LARGE C AP EQUITY FUNDS/ETF 12 -26-17 12-28-17 SPDR S&P 500 ETF WITHDRAW CASH AND EQUIVALENTS 12-01-17 12-01-1 7 C ASHRECEIVABLE 12-20-17 12-20-17 WF ADV GOVT MM fD-lNSTL #1751 3 Quantity 813.68 600.0000 Trad e Amount 3 ,984.38 13 ,687.51 25,460.06 813.68 813.68 160,275.26 160,275.26 404.42 374.16 778.58 778.58 320 Date 12-15-17 12-26-17 Alaska Permanent Capital Management Co. REALIZED GAINS AND LOSSES CITY OF KENAI PERMANENT FUNDS From 12-01-1 7 Through12-3 1-17 Avg. Cost Quanti!L_ . Security Basis Proceeds 813.68 FHLMC POOL 014203 850 .80 813.68 4.000% Du e 04-01-26 600.0000 SP DR S&P 500 ETF 66 ,292.18 160,275.26 TOTALGAlNS TOTAL LOSSES 67,142.99 161,088.94 Gain Or Loss -37.12 93,983.08 93 ,983.08 -37.12 93,945.95 321 Alaska P ennanent Capita l Management Co. CASH LEDGER CITY OF KENAI PERMANENT FUNDS From 12-01-17 To 12-31-17 Trade S ettle Tran Date Date Code Activity Security Amount --- CASH R ECEIVABLE 12-01-17 Beg innin g Balance 404.42 12-01-1 7 12-01-17 wd Transfer to WF A DV GOVT MM FD-INSTL -404.42 #175 1 12 -29-17 0 1-03-18 dp Di vide nd GOLDMAN SACHS PRJME 1, 124.31 OBLIGATIONS FUND 12-3 1-1 7 0 1-02-18 dp Interest WF ADV GOVT MM FD-lNSTL 508.95 #1751 12-3 1-1 7 01-02-18 dp Int erest US TREASURY NOTES 84 3.75 I. I 25 % Due 06-30-21 12-3 1-17 0 1-02-18 dp In terest US TREASURY NOTES 5,250.00 2.000% Due 12-31-21 12-31-17 0 1-02-18 dp Interest US TREASURY NOTES 3,984.38 2.125% Due 06-30-2 1 12-3 1-17 E nding Balance 11,711.39 WF ADV GOVT MM FD-INSTL #1751 12-0 1-17 Beg in ning Balance 517,863 .64 12-0 1-1 7 12-01-1 7 dp Int erest MICROSOFT CORP 4 ,200.00 4 .200 % Due 06-01-19 12 -01-1 7 12 -0 1-17 dp Transfer from CASH RECEIVABLE 404.42 12 -12-17 12-12 -1 7 dp In terest REYNOLDS AMERJCAN lNC 3,337.50 4.450% Du e 06-12-25 12-1 5-17 12 -1 5-1 7 dp Interest AFLAC INC 3,625.00 3.625% Du e 0 6 -I 5-23 12 -15-1 7 12-15-1 7 dp Interes t FHLMC POOL 014203 101.10 4 .000% Due 04-01-26 12-15-17 12-15 -1 7 dp P aydown FHLMC POOL G 14203 813.68 4.000% Du e 04-01-26 322 Alaska Pennanent Capital Management Co. CASH LEDGER CITY OF KENAI PERMANENT FUNDS Fro m 12-01-17 To 12-31-1 7 Trade Settle Trnn Date Date Code Activity Security Amount -- 12 -15-1 7 12 -15-1 7 dp Interest US TREASURY NOTES 3,609 .38 1.37 5 % Due 12-15-19 12-19-1 7 12-26-17 dp Di vidend TSHARES ETF COR E M SCI EA FE 35,3 00.83 12 -19-17 12-26-17 dp Di vidend ISHARES ETF CORE MS CI 2 5 ,01 8 .20 EMERG ING MK.TS 12-19-17 12-26-17 dp Di vide nd TSHARES CORE S&P MIDCAP 8,47 l.14 400 ETF 12-19-1 7 12-26-17 dp Di v idend ISHARES S&P SMALLC AP 600 6 ,200.29 INDEX ETF 12-20-1 7 12-20-17 wd Withdrawal from Portfolio -374.16 12-21-17 12-27-17 dp Di vidend VANGU ARD REIT ETF 16 ,426.80 12-2 1-1 7 12 -28 -1 7 dp Di vi dend FLEXSHARES QUAL DIV ETF 13,018.71 12-26-1 7 12-28-17 dp Sale SPDR S&P 500 ETF 160.275.26 12-31-17 Ending Balance 798,291 .79 DIVIDEND ACCRUAL 12-01-1 7 Begin n ing Balance 0.00 12-15-17 01-31-18 dp Divid end SPDR S&P 500 ETF 22,702.39 12-31-17 E nding Balance 22,702.39 2 323 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNC IL MEETING OF : FEBRUARY 7, 2018 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT BEACON OHSS PROPANE KFD ARFF TRAINING A I RPORT OPERATING SUPPLIES 5 ,000.00 ALASKA STEEL LOADER RAKE STREETS OPERATING SUPPLIES 3,414.00 RHOMAR INDUSTRIES NON-STICK SOLVENT STREETS OPERATING SUPPLIES 4,660.06 LEIBOWITZ & HORTON AIRLINE OPERATING AGREEMENT AIRPORT PROFESSIONAL SERVICE 10,000.00 GOVERNMENT COMPUTER SALES COMPUTERS FOR SCADA SYSTEMS VARIOUS SMALL TOOLS 4 ,510.00 CONNIE'S FLOWERS SUMMER FLOWERS/PLANTINGS RECREATION OPERATING SUPPLIES 12,410.00 ST ATE OF ALASKA -DEC DISCHARGE PERMIT WWTP DUES & PUBLICATIONS 5,220.00 PRO-SEAL SERVICE GROUP RESERVOIR PUMP REBUILD WATER REPAIR & MAINTENANCE 5,250.00 324 FEBRUARY 7, 2018 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION ITEM REQUESTED BY Add to Item D.6. Ordinance No. 3004-2018 • Historical and Reference Excerpts Council Member Molloy Add to Item D.10. Resolution No. 2018-06 • Memo and Revised Joint Resolution City Clerk Add to Item D.7. Consent to Non-Exclusive Easement to ACS • Map City Manager 236 RULES OF ORDER §21 1 but an incidental motion that can wait should not be en- tertained after a motion to Adjourn has been made. 2. Is not applied to any motion, and no subsidiary motion can be applied to it. 5 3. Is out of order when another has the floor. 4. Must be seconded. 5. Is not debatable (see pp. 238-40, however). 6. Is not amendable. 7. Requires a majority vote. 10 8. Cannot be reconsidered (but see p. 240 regarding its renewal). Further Rules and Explanation 15 EFFECT OF ADJOURNMENT ON PENDING 20 BUSINESS OR ON AN UNCOMPLETED ORDER OF BUSINESS. Except as the assembly may have adopted rules providing otherwise, the effect of an adjournment on a pend- ing motion or an uncompleted order of business is as follows: a) When the adjournment does not close the session (as when an adjourned meeting [9] has been set, or in any meeting of a convention except the last one): Business is immedi- ately resumed at the next meeting at the point where it 25 left off, except that there may first be brief opening cere- -monies or reading of the minutes (see 41). b) When the adjournment closes the session in an assembly hav- ing its next regular business session within a quarterly time interval (see pp. 89-90)) and having no members whose 30 terms of membership expire before the next regular session (for example, in ordinary clubs. and societies that hold fre- quent "regular meetings"): Tlie complete order of busi- ness is followed at the next regular session. If a question was pending at the time of adjournment, it is talcen up as 35 the first item under unfinished business (or under special §21 \ orders, i: at exactl eral ors up unde respectiv c) When th not have terval (s1 of all or~ legislativ but not the hanc ferred (s• They car same as i ADJ OU IARLYSCI amass meet the assembl) or may, be l: solve ap_ asse Amotion to be dissolved called into ; other goven journ sine d also p. 83). calling of a session has l: session with *In the ca: Reconsider that that falls to the ~ ------------.-------,-------. -, ~ ' -. ' ' . §21 ould not be en- >een made. )sidiary motion ·r. ::r). ) regarding its ~ PENDING >ORDER OF :: adopted rules .ent on a pend- ss is as follows: :ssion (as when m any meeting Less is immedi- point where it ·opening cere- i assembly ha-v- quarterly time nembers whose regular session ; that hold fre- order of busi- . If a question is taken up as under special §21 ADJOURN 237 orders, if it was a special order )-resuming the question 1 at exactly where it was previously interrupted. Any gen- eral or special order that was not reached is also taken up ub.der unfinished business or under special orders, respectively (see 41). 5 · c) When the adjournment closes a session in a body that will not have another regular session within a quarterly time in- terval (see pp; 89-90); or closes a session that ends the term of all or some of the members (as may happen in an elected legislative assembly or in a board): Matters temporarily 10 but not :finally disposed of, except those that remain in the hands of a committee to which they have been re- ferred (seep. 90, l. 9 top. 91, l. 16), fall to the ground.* They can, however, be introduced at the next session, the same as if they had never before been brought up. 15 ADJOURNMENT OF BODIES WITHOUT REGU- LARLY SCHEDULED MEETINGS. The adjournment of a mass meeting or the last meeting of a convention dissolves the assembly unless provision has been made whereby it will, 20 or may, be later reconvened. When adjournment would dis- solve an assembly, the motion 'to adjourn is a main motion. A motion to close the session in an assembly that will thereby be dissolved, or will not meet again for a long time unless 1 called into authorized special session under the bylaws or 25 other governing rule, is often referred to as a motion to "ad- journ sine die," which means to "adjourn without day" (see also p. 8 3). If the bylaws of an organization provide for the calling of a special convention after the regular convention session has been held, this assembly should meet as a distinct 30 ' session with a body of delegates and alternates that must be *In the c~se of an adopted motion which is the subject of a motion to Reconsider that was not finally disposed of, it is only the motion to Reconsider that falls to the grorind, and· the adopted motion then goes into effect. Sponsored by; Mayor Porter and Council Members Molloy and Smalley CITY OF KENAI ORDINANCE NO. 2480-2010 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC CHAPTER 1.15, RULES OF ORDER, TO ESTABLISH THE FORM OF THE COUNCIL AGENDA AND SET THE ORDER OF BUSINESS, TO EXPLAIN THE CONSENT AGENDA AND LIST OF PENDING LEGISLATION, AND TO MAKE CONFORMING AMENDMENTS. WHEREAS, under Chapter 1.15 of the Kenai Municipal Code the City enacted legislation to detail procedures for exercising the City Council's legislative powers vested to it under its Charter; and, WHEREAS, KMC 1.15.050 sets forth recommended guidelines for conducting the order of business for City Council meetings; but, those guidelines do not reflect current practices of the Council; and, WHEREAS, it is in the best interests of the City to formalize the order of business of City Council meetings, including providing more specific notice to citizens about when they may address the Council at times other than during scheduled public hearings; and, WHEREAS, while the practice of the Council has been to dispose of routine business items through the use of a consent agenda, and while the municipal code references the use of a consent agenda, the Code does not currently outline specific procedures about how the consent agenda works; and, WHEREAS, providing additional information about how the Council manages its consent agenda will clarify the effect of action taken under the consent agenda and, at the same time, will better inform the public about how the business of the City of Kenai is accomplished; and, WHEREAS, the City has no express rules regarding how long items postponed or tabled should be maintained on the agenda and further guidance is necessary to advise the City Clerk in maintaining a list of pending legislation. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows; Section 1. Form: This is a Code ordinance . Section 2. Amendment of Section 1.15.040 of the Kenai Municipal Code: The Kenai · Municipal Code, Section 1.15.040, Agenda, is hereby amended as follows: New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2480-2010 Page 2 of 5 1.15.040 Agenda. (a) The Mayor or other Council Member, City Clerk, City Attorney, or City Manager may sponsor an ordinance for introduction or a resolution for adoption, and such ordinance or resolution shall be placed on the agenda of the regular Council meeting requested by the sponsor. (b) The Mayor or other Council Member, City Clerk, City Attorney, or City Manager may request that a discussion item be placed on the agenda of a regular Council meeting, and such discussion item shall be placed on the agenda of the regular Council meeting requested by the sponsor. (c) A member of the public may request that a matter be placed on the agenda subject to policies and procedures adopted under subsection (j). Being placed on the agenda on the "Scheduled Public Comment [PERSONS SCHEDULED TO BE HEARD]" portion of the agenda does not limit or restrict the requestor's ability to speak on a different subject for which public comment is allowed. (d) A sponsor, all co-sponsors, proposer or requester may request that an item be removed from the agenda before the agenda is published under the policies and procedures adopted under subsection (j) and such item shall be removed from the agenda, unless the item has been carried over or postponed from a previous agenda. (e) The City Clerk shall prepare the agenda for each Council meeting after consultation with the Mayor and City Manager, subject to subsections (a) through (d). A draft agenda shall be circulated to the Mayor and other Council Members, and the City Manager. (f) Notice of the date, time, place.i and [FINAL] agenda for each Council meeting shall be given to the public by publication in a newspaper of general circulation and by posting to the City's website and to the official bulletin board at City Hall under policies and procedures adopted under subsection U). Additional public notice of meetings may be given by other means. · (g) A meeting packet containing the [FINAL] agenda, all legislative items, and [ALL] supporting documentation for all agenda items shall be distributed to the Mayor, Council Members, and the City Manager. (h) The City Clerk shall cause a copy of the meeting packet to be posted on the City's website and to be provided to the Kenai Community Library, in order to be made available for public viewing under policies and procedures adopted under subsection U). The City Clerk shall cause a paper copy or electronic copy of the meeting packet to be provided to any member of the public, or to any organization, upon request under policies and procedures adopted under subsection U). At least one paper copy of the meeting packet shall be made available to the public at the meeting. (i) The City Clerk shall provide paper copies of any late materials to the Mayor, each Council Member, City Manager, and City Attorney. The City Clerk shall also make paper copies of late materials available to the public at the meeting. U) The administration may [WILL] develop policies and procedures to implement this section, subject to review and approval of Council. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2480-2010 Page 3 of 5 (k) Failure to comply with the above policies and procedures or with any administrative policies will not invalidate any ordinance or Council action as long as there was a good faith effort at compliance by the City Clerk. Section 3. Amendment of Section 1.15.050 of the Kenai Municipal Code: The Kenai Municipal Code, Section 1.15.050, Order of business, is hereby amended as follows: 1.15.050 Order of business. (a) The order of business for every regular meeting of the City Council shall [MAY] be outlined on an agenda [DEEMED TO BE MOST EFFECTIVE FOR REGULAR COUNCIL MEETINGS. THE ORDER OF BUSINESS MAY BE SPECIFIED BY A WRITTEN AGENDA OR CALENDAR OR OTHER CUSTOMARY DESIGNATION FOR SCHEDULING OF THE ORDER OF BUSINESSJ. (b) The following shall be the order of business at the regular meetings of the City Council [A GUIDE FOR THE COUNCIL'S AGENDA, BUT NOT A MANDATORY FORMAT FOR THE ORDER OF BUSINESS, CAN BE AS FOLLOWS]: (1) Call to Order [ROLL CALL]: pledge of allegiance, roll call, and a[A]genda [APPROVAL,] and consent agenda approval (public comment shall be permitted on items included on the consent agenda); .(21 Scheduled Public Comment; .@l Unscheduled Public Comment; (1[2]) Public Hearin@ [(FOR ORDINANCES OR PROGRAMS AS ANNOUNCED)]; @ Minutes of Previous Meetings; [(3) PERSONS SCHEDULED TO BE HEARD; (4) CORRESPONDENCE (READING VERBATIM NOT REQUIRED IF COPIES DISTRIBUTED TO THE ENTIRE COUNCIL);] (§[5]) Unfinished [OLDl Business; (7.[6]) New Business; [(7) REPORTS; (8) PERSONS PRESENT BUT NOT SCHEDULED TO BE HEARD.] .@.}. Commission and Committee Reports; 12.l Report of the Mayor; 11Ql Reports from Administration; illl Additional Public Comment: citizen comments and Council Member comments; .Ll2l Executive Session {when applicable); lLl.l Pending Legislation; and, .Ll.11 Adjournment. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2480-2010 Page 4 of 5 .(fl Those items on the agenda that are considered routine by the City Manager and the City Clerk shall be identified by an asterisk (or similar notation) next to the item as listed on the agenda and there by included under that portion of the agenda entitled "Consent Agenda." Unless a Council Member requests that an item on the consent agenda be considered under the regular meeting agenda, and thus removed from the consent agenda, items listed as part of the consent agenda shall be considered, introduced, adopted, accepted, etcetera, as appropriate for the item listed on the agenda, by motion of the Council and roll call vote under "Call to Order, consent agenda approval." Those items approved under the consent agenda shall appear in the Council minutes as if acted upon individually. The Council shall consider an item removed from the consent agenda in it's proper numerical order as indicated on the regular agenda. @ If the Council desires to transact business out of its regular order, it may do so upon approval of a motion to suspend the rules, which motion must be approved by a two-thirds vote of the Council members in attendance. In the alternative, as each agenda item comes up, a majority of the Council can at once lay it on the table and thus reach any question which it desires to dispose of first. ~ The City Clerk shall maintain a list of tab led and pending items . This list shall be stricken at the end of the meeting at which the certification of a regular election of any Council Member takes place. ill The administration may develop policies and procedures to implement this section, subject to review and approval of Council. .(gl Failure to comply with the above policies and procedures or with any administrative policies will not invalidate any ordinance or Council action as long as there was a good faith effort at compliance by the City Clerk. Section 4. Severability: If any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 5. Effective Date: Pursuant to KMC l.15.070(f), this ordinance shall tal<:e effect one month after adoption. New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No . 2480-2010 Page 5 of 5 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of May, 2010. ATIEST: Carol L. Freas, City Clerk ~~ PAT PORTER,-MAYOR Introduced: April 21, 2010 First Reading: May 5, 2010 Second Reading: May 19, 2010 Adopted: May 19, 2010 Effective: June 19, 2010 New Text Underlined; [DELETED TEXT BRACKETED] MEMO: TO: Council Members Boyle, Eldridge , Marquis, and Moore FROM: Bob Molloy Uoined by Mayor Porter and Council Member Smalley) DATE: April 14, 2010 SUBJECT: Ordinance 2480-2010, Amending Chapter J.15, Rules Of Order, To Establish Tlze Form Of The Council Agenda And Set The Order Of Business, To Explain The Consent Agenda And List Of Pending Legislation, And To Make Conforming Amendments Ordinance 2480-2010 makes clarifications to how the Council's regular agenda is set, and provides Code authority for the new administrative policies and procedures that Council has been working on per Resolution No. 2010-07, sponsored by Mayor Pmier, with Vice Mayor Smalley as a co-initiator. Cunently, the City 's Code provides only loose guidelines to suggest an order of business. The City Attorney informs me that it is a c01mnon for municipal ordinances to mandate a specific order of business rather than just to provide general guidelines. In addition, the existing categories of agenda items listed in KMC l.15.050(b) do not identify the categories of the City 's business as conducted today and do not speak to all of the several opportunities during a Council meeting that members of the public have to address the Council. In addition to public hearings, the Council provides the public three other times to participate in a given Council meeting, including scheduled "scheduled public comment," "unscheduled public comment," and "citizen discussion." Cmrently , KMC l.15.050(b) does not include any reference to "citizen discussion." It is appropriate to codify these opportunities for the public to speak, thereby giving greater assurance to the public that their individual and collective voices can be heard other than only at times of public hearing. The proposed ordinance adds a new subsection (c) to KMC 1.15.050 to better define how the consent agenda process works. It is not intended that the change would alter current practice. The list of agenda items and order of business (discussed above) also clarifies that the public has an opportunity to comment on items included on the consent agenda. This is also consistent with the proposed administrative policies which emerged from the Council work session on Resolution No. 20 I 0-07. Because the ordinance amends subsection (b) ofKMC 1.15.050 to mandate the order of business, rather than merely provide loose guidance, flexibility is needed to permit the Council to take matters out of order, as the Council sees fit. Thus, the ordinance adds a new subsection ( d) to provide guidance to the Council about how to call up a matter out of the order published on the agenda. It explains the parliamentary procedure that applies to take up matters out of order without the need to research the rule each time. The ordinance adds a new subsection ( e) that clarifies when pending matters should be removed from the agenda . The procedure identified in the new ordinance reflects accepted practices under Robert's Rules of Order , the City Attorney has said. New subsections (t) and (g) to K.MC 1.15.050 are added to allow for the development of the administrative policies and procedures that we are working on under Resolution No. 2010-07 and to caution that a failure to comply with any code or policy will not invalidate Council action so long as good faith efforts of compliance are made. These sections echo the same provisions in KMC 1.15.040, which we added to the Code last year. Finally, the ordinance changes vvording in KMC 1.15.040 and .050 to be consistent with current usage and terminology and to make minor clarifications. For example, today, the Council uses the phrase "scheduled public comment" rather than the plu·ase "persons scheduled to be heard." Updating the terminology does not change the current practice or process; but, it will provide better notice to members of the public about their right to address the Council. It can be confusing when the Council and the City Clerk use one term, but another term is published in the Code describing the same process. The amended terminology is consistent with the administrative policies and procedures also being considered at the April 21 Council meeting under Resolution No, 2010-07. I respectfully request your support of proposed Ordinance No. 2480-2010. /0 KENAI CITY COUNCIL MEETING MAY 19, 2010 PAGE 5 Mollo Smalley Mar u:is MOTION PASSED. MOTION TO AMEND: VOTE ON AMENDMENT: TE ON MAIN AMENDED MOTION: No *Student Representative Coffman: No Yes Porter No Eldrid e Molloy i Yes Boyle Yes I Porter Yes-I Smalley I Yes Moore No I Eldrid~e No I Marquis I Yes I _ _J MOTION PASSED. BREAK TAKEN: 8:00 P.M. BACK TO ORDER: 8:06 P.M. D-2. Ordinance No. 2480-2010 --Amending KMC Chapter L15, Rules of Order, to Establish the Form of the Council Agenda and Set the Order of Business, to Explain the Consent Agenda and List of Pending Legislation, and to Make Conforming Amendments. -35- I/ KENAI CITY COUNCIL MEETING MAY 19, 2010 PAGE6 (Clerk's Note: At the May 5, 2010 meeting, Council postponed Ordinance No. 2480-2010 to the May 19, 2010 Council Meeting. The motion to adopt is active.) The floor was opened for public heaiing. There being no one wishing to speak, the public hearing was closed. Council comments included: • Reference to D. Bannock email transmission submission with regard to 1.15.050(b)(ll), Discussion and agreement the word "discussion" could be considered as a dialog between the public and council. MOTION TO AMEND: Council Member Molloy MOVED to amend 1.15.0SO(b)(l l) to be "Additional Public Comments." Council Member Smalley SECONDED the motion. Council comments included: ° Concern the ability for Council comments had been removed with the motion. ·WITHDRAWAL OF MOTION: Council Member Molloy withdrew his motion stating it was not his intent to circumvent the Council from making comments at the end of the meeting. Council Member Smalley, as the second, agreed with the withdrawal. MOTION TO AMEND: Council Member Molloy MOVED to amend l.15.050(b)(l l), Section 3, by replacing "Discussion: citizen discussion and Council Member discussion" with "Additional Public Comments: citizen comments and Council comments." Council Member Smalley SECONDED the motion. VOTE ON AMENDMENT: ·"'Student Representative Coffman: Yes Molloy Yes I Bovle I Yes--I Porter Yes \Moore --I Eldridge Smalley Yes I Yes Yes Marquis Yes I I I - MOTION PASSED UNANIMOUSLY. Discussion continued with a question related to Section· 3, Paragraph (d), suspending the rules. It was noted, the language of suspending the rules with the approval of a -36-,,__ KENAI CITY COUNCIL MEETING MAY 19, 2010 PAGE7 motion with two -thirds vote of the Council members in attendance was a reflection of Robert's Rules of Order and would apply unless the City had its own rule to that regard. MOTION TO AMEND: Council Member Boyle MOVED to amend Section 3, 1.15.0SO(e) to read; The City Clerk shall maintain a list of tabled and pending items. These items shall be reviewed and acted upon at the next meeting following that which the certification of a regular election of any Council Member takes place . Council Member Marquis SECONDED the motion. Comments included: • Section 3, 1.15.0SO(e) was also a reflection of Robert's Rules which would apply unless the City had its own rule. " Would prefer having the Council review each pending item individually . e How long items remain pending depended on the body, i.e . at the end of the second legislative session, pending items are removed with no action, Assembly removed after certilication of each election, etc . c With each election, the membership of the Council could be different and if items remained as pending after an election, new members could be acting on items of which they had no part in developing, etc. When an ordinance/resolution is removed after the certification of an election , a new ordinance/resolution could be prepared for Council's consideration. • Have deviated from Robert's Rules previously; would disagree with acting on pending items individually; and, would prefer items remain on the pending list. • Pending items list is a reminder and believed it easier to leave an ordinance/resolution on the list than. to return with a new ordinance/resolution . VOTE ON AMENDMENT: *Student Representative Coffman: No Molloy I No I Boyle ! Yes I Porter No Smalley \No I Moore I No \Eldridge No Marquis I Yes I I I - MOTION FAILED. VOTE ON MOTION AS AMENDED: ·k student Representative Coffman: No I Molloy Yes I Boyle Yes I Porter r~ i Smalley Yes ! Moore Yes I Eldridge I Marguis Yes I I Yes I -37-I~ KENAI CITY COUNCIL MEETING MAY 19, 2010 PAGE8 ~MOTION PASSED UNANIMOUSLY.@":.) Ordinance No. 2482-2010 --Increasing Estimated Revenues and in the General Fund for the Police Department to Purchase Equipment Provided to the City of Kenai. arquis MOVED to adopt Ordinance No. 2482-2010 and Council CONDED the motion. The floor was opened public hearing was close There being no one wishing to speak, the Comments included: The City Manager ld bring forth an ordinance to allow appropriation of funds under $500 to be done ad VOTE: *Student Representative Coffman: Yes Moore Yes MOTION PASSED UNANIMOUSLY. D-4. Ordinance No. 2483-2010 --Increa · Appropriations by $190,000 in Fund for Repair of Damage C System Failure. MOTION: Council Member Smalle Member Marquis S OVED to adopt Ordinance No. 2483-2010 and Council DED the motion. ened for public hearing. There being no one wishing to speak, the ng was closed. ents included: The reimbursement process would take between 30 and 60 days. -38- MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Jamie Heinz, City Clerk DATE: February 7, 2018 SUBJECT: Resolution No. 2018-06 – Joint Resolution No. 2018-001 After the publication of our City Council packet, the Kenai Peninsula Borough legal department sent requested changes to Joint Resolution No. 2018-001. I’ve included first the resolution showing the changes and then the resolution that has accepted the changes showing the final resolution that will be signed by the Mayor, if Resolution No. 2018-06 is approved. No amendments will need to be made as the joint resolution is an attachment to the City’s resolution. KENAI PENINSULA BOROUGH CITY OF KENAI CITY OF SOLDOTNA JOINT RESOLUTION NO. 2018 -001 A JOINT RESOLUTION OF THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH AND COUNCILS OF THE CITY OF KENAI AND THE CITY OF SOLDOTNA, REQUESTING THE ALASKA BOARD OF FISHERIES TO ADOPT A POLICY TO ROTATE THE REGULAR UPPER COOK INLET FINFISH MEETINGS BETWEEN THE THREE PRINCIPALLE COMMUNITIES OF KENAI/SOLDOTNA, PALMER/WASILLA, AND ANCHORAGE WHEREAS, Upper Cook Inlet fFinfish issues are vitally important to, and directly impact residents, municipal governments and communities on the Kenai Peninsula; and WHEREAS, many local residents and businesses of the Kenai Peninsula depend on, participate in, and are otherwise affected by decisions made by the Board of Fisheries with regard to subsistence fisheries, sport fisheries, commercial fisheries, personal use fisheries and conservation measures in Upper Cook Inlet; and WHEREAS, when making informed decisions regarding finfish issues in Upper Cook Inlet, the Board of Fisheries should consider the comments and interests from residents of the Kenai Peninsula; and WHEREAS, the costs and travel time to attend meetings outside the Kenai Peninsula pose a significant burden to local residents, limiting participation and the Board of Fisheries' ability to benefit from local knowledge; and WHEREAS, the Alaska Board of Fisheries has not held its a regular Upper Cook Inlet Finfish meeting on the Kenai Peninsula since 1999 despite numerous requests that it do so; and WHEREAS, holding the meeting on the Kenai Peninsula would show local residents, businesses and communities that the Alaska Board of Fisheries listens, cares about, and understands the local impacts of its decisions; and WHEREAS, there are local quality venues of sufficient size with advanced technologic capabilities to host public meetings, as well as exceptional lodging and dining opportunities on the Kenai Peninsula. NOW, THEREFORE, BE IT RESOLVED BY THE KENAI PENINSULA BOROUGH ASSEMBLY AND THE COUNCILS FOR THE CITY OF KENAI AND CITY OF SOLDOTNA: SECTION 1. That the Alaska Board of Fisheries is respectfully and strongly urged by the Kenai Peninsula municipal governments representing their constituents to adopt a policy to rotate the Upper Cook Inlet Finfish mMeetings between the three principalle communities of Kenai/Soldotna, Palmer/Wasilla, and Anchorage. SECTION 2. That this Joint Resolution be forwarded to Governor Bill Walker, Senator Peter Micciche, Representative Gary Knopp, Representative Paul Seaton, Representative Mike Chenault, Governor’s Chief of Staff Scott Kendall, Alaska Department of Fish and Game Commissioner Sam Cotton, Alaska Board of Fisheries Mmembers John Jensen, Reed Morisky, Orville Huntington, Alan Cain, Israel Payton, Robert Ruffner, Fritz Johnson, Alaska Board of Fisheries Executive Director Glenn Haight. SECTION 3. That this resolution takes effect immediately upon approval by the Kenai Peninsula Borough Assembly and the participating city councils. ________________________________________________________________________________ APPROVED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS 20TH DAY OF FEBRUARY JANUARY, 2018. Wayne H. Ogle, Assembly President ATTEST: Johni Blankenship, MMC, Borough Clerk ________________________________________________________________________________ APPROVED BY THE COUNCIL OF THE CITY OF KENAI THIS 7TH DAY OF FEBRUARY, 2018. Brian Gabriel, Kenai Mayor ATTEST: Jamie Heinz, CMC, City Clerk ________________________________________________________________________________ APPROVED BY THE COUNCIL OF THE CITY OF SOLDOTNA THIS 14TH DAY OF FEBRUARY, 2018. Nels Anderson, Soldotna Mayor ATTEST: Michelle M. Saner, MMC, City Clerk KENAI PENINSULA BOROUGH CITY OF KENAI CITY OF SOLDOTNA JOINT RESOLUTION NO. 2018 -001 A JOINT RESOLUTION OF THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH AND COUNCILS OF THE CITY OF KENAI AND THE CITY OF SOLDOTNA, REQUESTING THE ALASKA BOARD OF FISHERIES TO ADOPT A POLICY TO ROTATE THE REGULAR UPPER COOK INLET FINFISH MEETINGS BETWEEN THE THREE PRINCIPAL COMMUNITIES OF KENAI/SOLDOTNA, PALMER/WASILLA, AND ANCHORAGE WHEREAS, Upper Cook Inlet f infish issues are vitally important to, and directly impact residents, municipal governments and communities on the Kenai Peninsula; and WHEREAS, many local residents and businesses of the Kenai Peninsula depend on, participate in, and are otherwise affected by decisions made by the Board of Fisheries with regard to subsistence fisheries, sport fisheries, commercial fisheries, personal use fisheries and conservation measures in Upper Cook Inlet; and WHEREAS, when making informed decisions regarding finfish issues in Upper Cook Inlet, the Board of Fisheries should consider the comments and interests from residents of the Kenai Peninsula; and WHEREAS, the costs and travel time to attend meetings outside the Kenai Peninsula pose a significant burden to local residents, limiting participation and the Board of Fisheries' ability to benefit from local knowledge; and WHEREAS, the Alaska Board of Fisheries has not held a regular Upper Cook Inlet Finfish meeting on the Kenai Peninsula since 1999 despite numerous requests that it do so; and WHEREAS, holding the meeting on the Kenai Peninsula would show local residents, businesses and communities that the Alaska Board of Fisheries listens, cares about, and understands the local impacts of its decisions; and WHEREAS, there are local quality venues of sufficient size with advanced technologic capabilities to host public meetings, as well as exceptional lodging and dining opportunities on the Kenai Peninsula. NOW, THEREFORE, BE IT RESOLVED BY THE KENAI PENINSULA BOROUGH ASSEMBLY AND THE COUNCILS FOR THE CITY OF KENAI AND CITY OF SOLDOTNA: SECTION 1. That the Alaska Board of Fisheries is respectfully and strongly urged by the Kenai Peninsula municipal governments representing their constituents to adopt a policy to rotate the Upper Cook Inlet Finfish meetings between the three principal communities of Kenai/Soldotna, Palmer/Wasilla, and Anchorage. SECTION 2. That this Joint Resolution be forwarded to Governor Bill Walker, Senator Peter Micciche, Representative Gary Knopp, Representative Paul Seaton, Representative Mike Chenault, Governor’s Chief of Staff Scott Kendall, Alaska Department of Fish and Game Commissioner Sam Cotton, Alaska Board of Fisheries members John Jensen, Reed Morisky, Orville Huntington, Alan Cain, Israel Payton, Robert Ruffner, Fritz Johnson, Alaska Board of Fisheries Executive Director Glenn Haight. SECTION 3. That this resolution takes effect immediately upon approval by the Kenai Peninsula Borough Assembly and the participating city councils. ________________________________________________________________________________ APPROVED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH THIS 20TH DAY OF FEBRUARY, 2018. Wayne H. Ogle, Assembly President ATTEST: Johni Blankenship, MMC, Borough Clerk ________________________________________________________________________________ APPROVED BY THE COUNCIL OF THE CITY OF KENAI THIS 7TH DAY OF FEBRUARY, 2018. Brian Gabriel, Sr., Kenai Mayor ATTEST: Jamie Heinz, CMC, City Clerk ________________________________________________________________________________ APPROVED BY THE COUNCIL OF THE CITY OF SOLDOTNA THIS 14TH DAY OF FEBRUARY, 2018. Nels Anderson, Soldotna Mayor ATTEST: Michelle M. Saner, MMC, City Clerk 608 672 673673 608 672 800 BRIDGE ACCESS RD Ap proximate Locationof Easement A Ap proximate Locationof Easement B Sa lamatof Seafoods APCM VIEWS Economic insights and market perspective from the Investment Committee at Alaska Permanent Capital Management «n.ul-.....crJJ.. ll chiu a ddi\ c rcd latr·n l lrl~11igl'r "'Carnmg~~u rpn 'c Nmtrttl\\c 'mtn~J'lre JO ~ _ '"liillTc·k.sk!--'t.:P t liming #fedtightening "n----. ·-#la t 'c<.~·y· c l don-gc "~(l•:OC Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 TRUSTED ADVISORS • MORE EXPERTS • BETIER ACCESS / / Spring 2018 In Brief As we compile this addition of APCM Views, there are signs that the synchronized global economic expansion will continue suggesting that the global economy seems to have finally shrugged off the ghosts of the 2008 financial crisis . Our assessment of economic growth, unemployment levels and inflation indicates that the stage of recovery varies ac~oss the globe. Although challenges and risks to the recovery leave us cautious, we are optimistic that the global economy will continue to heal. Longer term we note that this cyclical upturn will eventually face headwinds due to high debt levels and deteriorating demographics . Improvements in productivity can help offset these headwinds . Our investment team is currently researching timely industry advancements to address key challenges in our cyclical and secular outlook. We look forward to sharing our conclusions with you in the spring of 2018 . Economy Extended cycle 2" Earnings Lofty expectations 29% I growth I International I _Develop~ 26% 27% growth Emerging Markets 12% of U.S. 1999 2003 2007 2011 2015 I growth growth from L U.S. tax reform =~~ -~·: ... -' ;;;;;;;::;;;;:=::::...... 30 25 Valuations Rates support full valuations s&P 500 MSCI EAfl: MSCI EM •current • Ave<ase ~~_pH~ J ' Technicals Favorable backdrop , for unloved equ ities 46% Bullish Consumer confidence up67 % from GFC low Business confid e n ce from GFC t _ _Jqw_ 4X more 1 flows to bonds than j equities since start of 2018 --- Long-term, the global cyclical upturn in growth w ill be challenged by h igh d ebt levels {235 9' of GDP) ond deteriorating demographics. Productivity growth could i mprove this outlook should relevant cyclical forces provide o boost. Malntoln a modest overweight to international stocks • Gradually move towards neutral as the cycle matures Rebalance regularly to harvest gains and control risk • Ex pect modest returns relati ve to history We expand upon these thoughts in the following pages. Note that each page contains a summary recap and consensus outlook followed by APCM's Views . APCM's Cyclical View is a summary of our near term outlook which guides current portfolio positioning. APCM's Secular View is our assessment of the key forces that influence the long term structural outlook. -APCM Investment Committee TRUSTED ADV ISORS • MORE EXPERTS • BETIER ACCESS / / Spring 20 18 United States: Late -cycle For Longer ... 201 7 Rec a p • After a weak first qu arter, th e U.S. ec ono my gai ne d mom en t um throughout 201 7 helpin g achieve Q3 growth of 2.3% yoy, w hich w as in line with initial expectations . Increasing private in vestment more th an compen sated for c on sumer spend in g, w hich leve led off. Strong ret ail spendi ng supp orted Q4 growth of 2.5% y oy. • The lab or ma r ke t co ntinued t o t ighte n, w ith un e mploym e nt of 4.1 % reachin g le ve ls no t see n si nce 2000 . However, wage in fl ati on remains muted at 2.5 % (LT average 3.5%), dampening consumer spending, which is nearly 70% of the U.S. economy. The personal savings rate conti nued to decline (2.6% vs. LT average 8.5 %), wh i ch co ul d be a headwind to f uture co nsu mpt ion as ho use h ol ds reb uild t hei r savi ngs. Source : Bloomberg • Hea dlin e infl ation ticked up t o 2.2%, but th e Fed's favorite in dicator, cor e PCE , rema ins below target at 1 .4%. Ac cordin g to the lates t dot pl ot , t he Fe d is no t expe cti ng a res urge nce of infl at ion until 2019. Con sensus O ut look • Financial conditions (availability and co st of credit) rem ain acco mmodative , odds of a recess io n are in lin e w ith historical averages (15%), and implication s of ta x reform (1.0%+ over severa l yea rs ) are all tailwind s fo r growth. The IMF is forec as ting GDP to be 2.6% i n 2018, which is above th e es t imated lo ng t erm potent ial of 2 .0%. The Fed p lans to raise rates thre e tim es in 201 8, whil e the market is prici ng in two. Wages are e xpected to increase to reflect the tig htness of th e l abor market. 10 yea r inflation breakeven s have bro ken o ut to the upsid e rece ntly and remain j ust above 2%. APCM's Cyclical View • We l ook fo r financial con di t ions to remain supportive of economic growth while reflectin g the Fed's policy n o r mal izati on. A slow do wn in hi gh freq uency economic i nd icators, wid en i ng credit spread s, and an inve rted y ie ld curve wou l d signal a highe r probabi lity of an oncomi ng recession . Monetary missteps re main a r isk to the growth outl ook, wh il e t ax reform could result in 3.0 %+ grow th in the ne ar term and could contribute to upward p ress ure o n w ages . APCM's Secular View • Lon ger te r m, unfavorab le demographics and hi gh debt l eve ls create headwi nds for gro w t h. Ho we ve r, meaningful investment stemm in g from tax reform has the potential to be a cata lyst to increa se productivity l evels. Spring 2018 TR UST ED ADV ISORS • MOR E EXP ERTS · BE TTER A CCESS page 2 Developed Markets Exceed Expectations 2017 Recap • Bett er than expected eco nomi c growth in devel o pe d i ntern ationa l eco nomi es can be attri bute d t o the cycl ical uptu rn in global trad e an d manufacturing, as well less fisca l a us terity in som e co u ntries (i.e. Eu ro pe). W hi le co nsumptio n and invest ment have been the drivers of growth, individua ls and b usinesses overseas continue to be supported by un precedented amounts of monetary and/or fiscal stimulus (Japan ). • Overa ll growth improved in the EU with 2017 GDP expecte d t o be 2.4%, above 2017 estimates of 1.6%. The dispersion between countries is wide in both leve l of recovery and f uture growth expectations . The output gap has closed in Germany and growth is acce lerating in Ireland and Spa in (2 .5%+), while Ital i an growth is below 1% and UK growth i s slowing. The ECB faces the cha llenge of unwinding stim ulu s while remain ing accommo d ative to select economies. Actual GDP minus potential GDP (output gap) % of potenUal GDP 6 -Eurozone 4 -us 2 0 -2 -6 -8 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 S ource: J.P . Mo rga n Asse t Ma n a g ement • Japan's economy cont inues its two year uninterrupted expans ion with 2017 GDP expected to be an impress ive 1.7%, relat ive t o a 0 .8% projection . A weaker yen agains t key t rade pa rtners boosted exports, wh il e low rat es co ntinue to spu r i nvestment. In spite of 2.7% un employme nt , a lack o f wage pressures are holding back con su mp ti o n. Consensus Outlook • W eak inflation in in t ernational deve lo ped economies suggest s monetary policy will remain sup po rtive an d the contin uation of the cycli cal upturn in globa l trade is expected to produce growth abo ve long term potential. The pace of growth in Japan should sl o w to 1.2 %, but remain above trend (LT potential 0 .85%), w hile EU economies are expected to grow at 2.2% (LT poten tial 1.0%). The UK is operating clo se to lo ng t e rm potentia l (1 .5%), while uncertainty surrou nding BR EXI T negotiations dampens the near term outlook. ACPM's Cyclical View • We look for trade and manufacturing g rowth to remain steady throughout the yea r. Inflation spikes could result in departures from continued pol icy support. As such, w e are w e are mon itoring high frequency trade indicators (PMI and FX data) and breakeven inflation expectati ons . Global trade remains important to the near term outlook, wh il e protect ionist policies pose risks . ACPM's Secular View • Longer term, unfavorable demograph ics and high de bt levels create headwinds for growth. The cyclical upturn creates an opportunity for policy makers to promote higher productivity and in vestment in human cap ital. Sp r ing 2018 T RUST ED A DV ISORS • MOR E EXPER TS · B EITER ACCESS page 3 Emerging Markets Deliver Solid Growth 2017 Re ca p • China cont inued to meet their growth target with GDP in creas ing by 6.8% yoy, driven by an increase in consumption . Investment growth has slowed to reflect structural reforms to eliminate excess capacity, particularly in the steel and co al industries . Political events resulted in a wide range of reform s to mitigate financial sector ri sks as banking sector assets are now o ver 300 % of GDP, up 240% since 2012. • Robust growth in China and the cycl ical rebound in global manufacturing and investment boosted global trade (4.3 % yoy) to the benefit of many em e rging market economie s, pa rt icu larly in South East Asia. Und er Mod i Ind i a has bene fi ted from structural reforms, lower inflatio n, and accommodat ive monet ary pol icy, w hi ch ha s provi ded a positive back drop for gro w th . China real GDP contribution Year-over-year % change 16% • lnvestmont • Consum ption 12% 8 % 0% 2 008 2 009 2010 2011 2012 2013 2014 2 0 15 2018 3 017 Source : J.P. Morgan Asset Manageme nt • Russi a and Brazil , key com modity expo rters, reb o unded from 2016 rece ssion s to po st po siti ve gro w th, w hic h i s expected to be 1.8% and 0.7%, respectiv ely. While oil prices increased ove r 10% to end th e yea r ju st abo ve $60, this is still a substanti al decline from 20 14 highs of $100+. Consen su s O ut look • Emerging Asia are expected to grow at 6 .5% in 2018. The region should account for over half of global growth . China's growth w ill taper toward 6.5% ne xt year, whi le India accelerates to 7.4%. Collectively, emerging m a rke t economies will continue to benefit from the broad pick up in economic activity with 2018 GDP expectations at 4 .9% yoy. • The upturn in global growth and a lengthy cont inuation of easy financial conditions create medium term risks as this backdrop can lead to financial excesses, particularly in China. In the event of a stumble, the lack of global integration in Ch ina's financial system reduces the magnitude of systematic financial contagion, but the level of economic integratio n would spur a slowdown in global GDP. While not an immediate threat, curtailing the buildup of these excess es is important to the outlook. APCM's Cyclical View • In China , we are monitoring the ability of policy makers to balance the need for deleveraging (particularly in state owned enterprises), while meeting growth targets . The current rese rve balance ($3 .lT) can provide support shou ld the economic growth picture change . APCM's Structural View • Lo nger term, as a whole, emerging markets are expected to outpa ce developed economies given more favorable demographics and room for productivity i mprovements. However, some key emerging economies (China , Russia) face demographic and structura l challenges, highlighting the need fo r reform s. Spring 2018 T RUST ED ADVISO RS • MORE EXP ERTS • BEITER ACCESS page 4 Will U.S. Tax Reform Help Repair Balance Sheets? 2017 Recap • Corporat ions continu ed to increase debt throughout 2017, a lbeit at a slowe r pace than prev ious years . Th e low rate environment still made debt i ssuance attractive . • Wh il e gross leverage rema ined elevated at 25 year highs, interest coverage ratios (ability to service debt) were stable throughout the year and rating downgrades hit cyclical lows. • Share buy backs slowed throughout the year while investment spending increased. This signals movement toward a successful shift from unsustainable level s of debt financed share buybacks. • Corporate tax reform lowered the marginal corporate tax rate (35 % to 21 %), reduced inc entives for companies to keep cash abroad, limited the deductibility of interest expense, and allowed immediate expensing of capital investmen t s. ~~s~&~Ps=oo~eu=v~eA=~~s-----------------r (biiondol.m. """*edl u ~-----------------~u NONFlNANCIAL CORPORATE B USINESS I.I (ttlmon dolsn, 4-quanet sun" fttio tcale) I.• -c.pilal ·-· (1.7) -4-0ua.rt9r$un\(517.7) -lnLef1\lllCashF1cwrt (1 .9) 1.0 .. JOO 1"9 :.vll lOOI l8m 1001 l'OOI 2005 DWI ?007 X.. ?009 2010 2011 2012 lUIJ 21'.)I' 2015 ?016 lOll ll'llt l011t .0 Ill .C tJ I' lj il6 t1 ii 19 IJC fl 9.! 9) M t$ '6 f7 91 91) 0G •1 o.? 03 0. 05 -01 Ol:I OP 10 II 12 IJ J;& IS 16 Ii Ill It ?0 Consensus Outlook Source : Yardeni Rese arch • Markets are pricing in higher earnings expectations as a result of tax reform. The change to the tax law will have redistributive effects with some sectors benefiting more than others. The effects on operating cash flows should be marginal, the cost of debt will increase, and there will be incentives for business reinvestment and capital spending. However, surveys are mixed as to how companies will deploy the cash windfall from tax reform . This capital can be allocated toward share buybacks, capital expenditures, M&A activity, or paying down debt. APCM's Cyclical View • Corporate health in the year to come will be based upon key cap ital allocation decisions . We look to monitor the overall leverage i n the system , how much companies re invest (capital expenditures), how well they reinvest (return on investments is greater than the cost), and uses of repatriated cash. APCM's Secular View • Longer term, meaningful investment to increase production capacity by replacing aging equ ipment and structures is crucial to reversing the trend of weak productivity i n bot h advanced and emerging economies. Spring 2 018 TRUST ED ADVISORS • MOR E EXP ER TS • BETIER ACC ESS page 5 ... 10 Markets Keep Going Up, Data Keeps Backing it Up 2017 Re ca p • In 2017, the cyclical economic rebound supported earnings as glob a l trailing earnings incre ase d by ove r 16%. Earn ings growth accelerated in developed international markets (22 %), whi l e eme rg ing ma r kets posted a second year of double dig it gain s (19 %). • Ea rnin gs i n th e U.S. provided t he m uch nee ded support gi ve n cu r re nt pr ice leve ls. Large an d m id sized co mpan ie s, w hi ch h ave mo re i ntern ati onal exposure, ben efi ted from the global expa nsi on and wea ken ing d o llar. Both large and m i d st oc ks poste d 10% earnings growth yoy, whi le small stocks lagged w ith earnings of 6 % yoy. • In sp ite of the impress ive rebound in earnings, EPS sti ll remain be low previous peaks in Europe and m a ny EM co untri es. Co nse nsus O utlo ok Return composition 2017 performance. USO 43% 37% 38% 33% 28% 23% 18% 13% 8% 3% -2 % 21•k • EM Asia Pacific ex· Euro area Japan -Evercore ISi + Total return • Multlplo oxpan1'1on • EPS growth outlook• • Dividend ytold Wortd u s. Source: J.P. Morgan Asset Management • In th e U.S., t ax refo rm is bein g re fl ec t ed in earn ings ex pec tation s with sma l le r compan i es seeing the largest re vi sions . Large cap ea rnin gs are projected to in crease by 26 %, w ith app roximatel y half of t he growth attri buted t o t ax c uts. M id and sma ll cap com pan i es ar e expected to grow by 34% and 44%, respec t ive ly. • International companie s are ex pected to have another year of doubl e digit earn ings grow t h st e m ming fro m both an increa se in top line revenu e and margin expans ion . Deve loped countries are proj ect ed to increase 29%. Emerging market earnings will gro w by 27%, driven by China, Russia , and Braz i l. APCM's Cyclical View • Lo fty earn ing s expectations pose a key risk given current val uations should companies fall short. Operating margins in the U.S . remain elevated at 13%, expectat ion s of higher wages wil l put downward pressure on earnings . To monitor this risk we are watc hi ng inflation prints most associated with wage growth. There is room for margin expansion overseas as operating margins peaked at 11% before the financial crisis and are currently projected to be 10%. We mon itor earnings revi sio ns and key drivers of ROE for signs of a reversal from the current optimistic outlook. APCM's Secular Vi ew • Longer term, the earn in gs outlook is important to suppo rt asset prices as valuation s leave little room for multiple expans ion, thus supporting subdued return expectation s. Over a 10 year horizon (our long term cap ital market forecast), international equities stand to benefit from lower relative valuations and currency tailwinds of a weaker dollar for U.S. inve stors. Spri ng 2018 T RUS T ED A D VISORS • M OR E EXP ERT S • BEITER ACCESS page 6 Equity Risk Premium Supports Stocks 2017 Recap • Equity returns can be decom po se d into dividends, earnin gs gro w th, an d multipl e ex pansio n (prices r is e fast er than earn in gs). In 2017, earnings and divid ends were t h e pr ima ry d r iver of returns, a lthough the U.S. an d emerging markets we re a ided by multip le expansion. Stocks in deve l oped internation al econom ies did not expe ri ence multiple expan si on (i.e . Europe), b ut U.S . invest ors benefited from currency re t urns. • Overseas , re l at ive val uatio ns are mor e app eal i ng w ith the M SCI EAFE Index t rading at a fo rward P/E of 1 5.0x v s a 14 .7 x at t he sta r t of t he ye ar and the MSCI EM Ind ex ended with a forwa r d P/E of 12.5x vs 12.0x in January. G lo bal val uations Current arl<I 25-year n1stor1caJ va1uauons 75x J, • 35x A 31 Dec '16 -25-year range 30X ... 2!1 yeo« av.-1oq 25x .. "' c "E 2ox .. ' ~ • 15X ~ IL 10X 5x ox us Europe UK ex-UK Ax is --~ Japan EM 5.2x 4.Bx 4,4X 4.0x 3,6x 3.2x 2.Bx ~ n • 2.4x f; a 2.0x g ... 1.6x 1.2x 0.8x 0,4X o.ox • Baa credit spreads in the U.S . compressed throughout the year to end 178 bps above Treasuries (60 bps more expensive than the LT average) as the sea r ch for yield has overwhe lm ed growin g uneasiness about balance sheet stre ngth and in creased debt i ssua nce . Source: J.P . Morgan Asset Management • Term pre miums also co nt inu ed t o com p r ess as the curve flattened. The 2-10 sprea d declined 70 bps to end at 52 bps (LT averag e 95 bp s) and t h e 10-30 spread d ecl ined 27 bp s to en d at 3 3 bps (LT average 58 b ps ). • Both earnings yi eld s and corpo rate bon d yields d eclined throughout th e y ear. The S&P 500 earn i ng s y iel d of 4 .3% is still above th e Baa corp orate bo nd yi e ld of 3.7%, makin g st ocks re l atively attrac t ive t o bonds. Co n se nsu s Outlook • Expectations for the continuation of economic expans i on, tame inflati on, modest upwa rd pressure on U.S. rates, and unprecedented easy monetary policy overseas suggest valuations in the stock and bond markets ca n remain at elevated levels in the near term. We mon itor indicators that could trigger a sharp correct ion in valuations such as inflation and rate expectations, reported earnings, volatility, and sentiment. To quantify t his risk given consensus earnings estimates ($151), a return to the historical va l uation average (16 x) indicates a price correction of 15%. APCM's Cycl ica l V iew • Today 's h igh valuations provide less of a cush i on t o absorb shocks leaving the markets vulnerable t o unpredictab le geopol itical events, adverse economic or financial shocks, as well as other "unknowns". However, unless reces sion risk picks up, such drawdowns should be less severe . APCM's Se cular Vi e w • Lon ger term, va lu ations ind icate returns have been borrowed from the future and gains are likely to be more modest going forward. However, the g loba l equity risk premium still suggests investors wi l l be adequately compensated for the risk of stocks. Sp ring 2018 TR US TED ADVISORS • MOR E EXPE RTS • BETT ER A CCESS pag e] An Unloved Equity Bull Market 2017 Recap • Realized volati lity in equity markets was exceptionally low with the S&P 500 averaging just above 6%, less than half the normal average and the lowest since 1964. • In spite of e levated business and consumer sentiment, investors remained cautious with surveys conveying an equally bullish and bearish outlook on markets for most of the year. • Fund flows al so highlighted caution as investors poured more money into bond s vs. stocks. Flows were negative with i n the domestic stoc k market wh il e positive inflows demon strated investors favo red international stocks. Implied Volatility Collapsed to a New Low in 2017 35 35 30 30 25 25 20 20 15 15 10 10 5 s 0 0 -S&P l m plle d Vo lettllty An n ua l Ave ra i e Lon g-T erm Av& Consensus Outlook So u rce: Evercore ISi • The projected cont inuation of the favorable backdrop for risky assets (positive growth, limited upward pressure on rates, and modest inflation) is currently priced into the markets . Implied vo la tility for the U.S. stock ma r ket (VIX} and bond market (MOVE) remain below historical averages at 11.5 % and 52 bps, respectively. APCM's Cyclical View • The market environment for risk is positive when volati lity is low, dispersion is high, and correlat ions are low. We look for a directional change in fundamental high frequency indicators which would trigger a pick up in volatility and correlations. APCM's Secular View • The eventual transition out of this low vola t ility regime should not derai l a sound investment strategy. APCM integrates reasonable future vola t ility projections for portfolio construction an d strategic planning purposes . Spring 2018 T RU ST ED ADVISORS • MORE EXP ER TS • BEITER ACCESS pa ge 8 Parting Thou ghts Over t h e past seve ra l years , APCM's investment comm ittee has been monitori ng two key i ndustry advancements which are creating in t erestin g investme nt o p portunities for our clients. Sources of Return Accessing Returns Prior to 2000's Hig h Fees Lo w Fees Current Marke t Beta Investing Alternative Bet a In ves t ing Activ e Alpha Inve st ing The i ndustry's broade r understand i ng o f sources of retu rn has enab led fund provi ders to cr eate exchange traded funds (ETFs) which capture exposure t o new as set cl asses and strategies in a way that enables investors t o pursue investment pe rforman ce and /or he lp manage portfolio risk. Asset Classes Investment 11e111cles that Improve portfot10 e ff ic 1e11cy without relyin11 on 411pha and"" be a ce~ in a cost-effective man ner. Equity Fixed Inco me Alternatives U.S. Large Cap REITs U.S . Fixed Income U.S. Mid Cap TIPS Commodi t i es U.S. Small Cap lnt'l Bond s Private Eq ui ty• lnt'l Equity Infrastructure* Cash Eme rging Marke t s Implementation Strategies Act ively managed variants o f other asset classes that gain expos ure to alternative nsk pre mi um in a systematic manner . Fundamental Factors Hedge Fund Be t a Strategies* Cu rre nt ly, APCM's t eam of analysts a r e worki ng on quantifying the p ortfol i o benefits and evaluati ng the abi l ity of ET F providers to capture the des ired exposure net of fees . These advancements are timely a nd offe r options to address key challe nges i n our cycl ica l and sec ula r outlook. APCM's research is ongoing and we look forward to sha ~ our conclusions w ith you in the spring of 2018. TRUSTE D ADV IS ORS • MORE EXPERTS • BETTER A CCESS Spring 2018 Amendment of Section 14.25.010 -Intent: 14.25.010 Intent. (a) Site Plans. It is the intent of this chapter to provide for orderly and safe development of the City commensurate with protecting the health , safety and welfare of its citizens, and to support the establishment of adequate and convenient open spaces, light and air, in order to avoid congestion of commercial and industrial areas w ith residential zones. (b) Landscaping Plans. It is the intent of this chapter to provide for landscaping and / or the retention of natural vegetation in conjunction with commercial, industrial and multifamily development within the City of Kenai to enhance the community environment and visual character and to provide attractive and functional separation, providing visual and sound screening barriers or buffers between uses [THE GENERAL PURPOSE OF LANDSCAPING IS TO VISUALLY ENHANCE THE CITY'S APPEARANCE, PROVIDE ATTRACTIVE AND FUNCTIONAL SEPARATIO N AND SCREENING BETWEEN USES] and reduce erosion and storm runoff. [(C) FOR PURPOSES OF THIS CHAPTER , MULTIFAMILY DEVELOPMENT MEANS A FOUR (4) OR MORE FAMILY DWELLING.] New Tex t Underlined ; [DELETED TEXT BRACKETED] Deletion of Section 14.25.015 -Landscaping I Site Plan for Land Clearing: [14.25.015 LANDSCAPING/SITE PLAN FOR LAND CLEARING. FOR PROPERTY COVERED UNDER THIS CHAPTER, SUBMITTAL OF A PRELIMINARY LANDSCAPING/SITE PLAN AND APPROVAL BY THE ADMINISTRATIVE OFFICIAL IS REQUIRED PRIOR TO ANY LAND CLEARING AND /OR TREE CUTTING WHERE SUCH LAND CLEARING AND /OR TREE CUTTING WILL RESULT IN REMOVAL OF MORE THAN TWENTY PERCENT OF THE LOT'S EXISTING TREES , SHRUBS, OR NATURAL VEGETATION COVER AS DETERMINED BY THE ADMINISTRATIVE OFFICIAL.] New Text Underlined ; [DELETED TEXT BRACKETED] Amendment of Section 14.25.020 -Applicat ion 14.25.020 Application [THIS]a. Approved Landscaping and Site Plans are required for the following [CHAPTER SHALL APPLY TO].;_ (a) All retention basins, [AND] (b) Commercial, industrial and multifamily development, [WITHIN THE C ITY OF KENAI AND SHALL APP LY TO BOTH THE LANDSCAPING AND SITE PLANS.] ["COMMERCIAL, INDUSTRIAL AND MULTIFAMILY DEVELOPMENT" AND "ALL DEVELOPMENT" SHALL BE DEFINED AS ANY LAND CLEARING AND /OR TREE CUTTI NG RESULTING IN REMOVAL OF MORE THAN TWENTY PERCENT OF THE LOT'S EXISTING TREES< SHRUBS< OR NATURAL VEGETATION COVER AS DETERMINED BY THE ADMINISTRATIVE OFFICIAL OR IMPROVEMENTS REQUIRING A BUILDING PERMIT FOR NEW CONSTRUCTION OR ANY IMPROVEMENTS OF TWENTY THOUSAND DOLLARS ($20,000.00) OR MORE, WHICH ADDS SQUARE FOOTAGE, AND I S: fl) LOCATED ON PROPERTIES WIT HI N THE CENTRAL COMMERCIAL !CC), GENERAL COMMERCIAL (CG), LIMITED COMMERCIAL !CL). HEAVY INDUSTRIAL (IHI. TOWNSITE HISTORIC (TSHl, LIGHT INDUSTRIAL (IL) AND EDUCATION fEDl ZONING DISTRICTS; OR (2) A MULTIFAMILY DEVELOPMENT IN ANY ZONE; OR (3) A CHANGE OF USE AS REQUIRED IN KMC 14.20.250!Al. IT IS UNLAWFUL FOR ANY PERSON TO CONSTRUCT, ERECT OR 1v1AINTAIN ANY STRUCTURE, BUILDING, FENCE OR IMPROVEMENT, INCLUDING LANDSCAPING, PARKING AND OTHER FACILITIES ON PROPERTY REQUIRING A LA ND SCAPE /SITE PLAN UNLESS SUCH (c ) Land clearing. I MPROVEMENTS ARE CONSTRUCTED OR RECONSTRUCTED IN A MANNER CONSISTENT WITH THE APPROVED PLAN.] [PROPERTIES ZONED RESIDENTIAL (EXCEPT MULTIFAMILY DWELLINGS) ARE EXEMPT FROM THIS CHAPTER WITH THE FOLLOWING EXCEPTION: (1) STRUCTURES IDENTIFIED AS A COMMERCIAL OCCUPANCY IN TITLE 4 OF THE KENAI MUNICIPAL CODE LOCATED IN RESIDENTIAL OR MIXED USE ZONES REQUIRING A BUILDING PERMIT FOR NEW CONSTRUCTION OR ANY IMPROVEMENTS OF TWENTY THOUSAND DOLLARS ($20,000.00) OR MORE, WHICH ADDS SQUARE FOOTAGE OR A CHANGE OF USE AS REQUIRED IN KMC 14.20.250(A).] New Text Un derlined ; [DELETED TE XT BRACKETED] Amendment of Section 14 .25 .030 -Landscaping/Site Plan -Submittal Requirements 14.25.030 -Landscaping I Site Plan Submittal Requirements • One copy of the landscapin g/ s ite plan (eleven inches ( 11 ") by seventeen inches ( 17'') size) shall be submitted for a pproval to the Admin istrative Official p rior to the issuance of a building permit. If approved, a zoning permit shall b e issued and on file in the Plannin g Depar t m ent and the Building Official w ill b e notified. The landscaping/site p lan shall b e prepared at a minimum scale of one inch (l ") equals twenty feet (20 ') a nd shall include the follow ing information: (a) Scientific o r common name or type of planting ma terials to be used in the project; (b) Typical planting details; ( c) Location of a ll p lanti ng area s and relationship to buildings, p arking areas and drive ways; (d) I dentification and locati on of exis ting vegetation to be retained; (e) Identifi cation and locati on of non-liv ing lan dscaping materials to be used ; (f) Iden tificatio n of on-site snow s torage areas; (g) Drainage patterns; (h) Description of buildings, including building height and ground floor dimensions; (i) Phys ical feature s o f th e property including location of a ll buil dings, ing ress and egress, any unus ua l feature s of the property which may restric t develo pment or drainage • (j) When Storm Water Pollution Prevention Plans (SWPP) are required, a cop y of the Plan shall be provided to the Citv Planner. Ne w Text Underlined ; [DE LETED TEXT BRACKETED] Amendment of Section 14 .25.040 -Landscaping Plan -Performance C riteria 14.25.040 -Landscaping Plan Performance Criteria [INTENT. LANDSCAPI NG REQUIRED UNDER THIS SECTION IS INTENDED TO ENHANCE THE COMMUNITY ENVIRONMENT AN D VISUAL CHARACTER AND TO PROVIDE ATTRACTIVE AND FUNCTIONAL SEPARATION T O PROVIDE VI SUA L AND SOUND SCREENING BARRIERS BETWEEN USES.] (a) Objectives for Lan dscaping Plan. An effective landscaping p lan should utilize a variety of techniques fo r ach ieving the inten t of this section . T h e appropriate p lacement or retention of v egetation in sufficient amounts w ill provide the best results. Perimeter, interior, street right-of-way, and parking lot landscaping must be included as componen ts of the overall landscaping plan. (b) Perimeter/Buffer Landscaping. Perimeter/buffer landscaping involves the land areas adjacent to the lot l ines w i thin the prop erty boundary. This buffer landscaping serves to separate and minimize the impact b etween adjacent uses. Buffer la n dscaping may be desirable along the perimeter of t h e property to shield veh icular or build ing lights from adj acent structures and to provide a v isual separation between pedestrians and veh icles and commercial and residential uses. Landscaping adjacent to residential zones shall have landscaping beds/buffers that meet all of the following minimum standards: (1) Landscaping Beds. Minimum in width equal to the setback along all property lines, w hich adjoin residential zones, exclusive of driveways and other ingress and egress openings. (2 ) Screening. Developers are encour aged to maintain natural screening w h en existing screening meets the intent of this chapter to shield between residential and commer cial uses. When natural screening does not exist o r is lost due to weather or disease, the following requirements must be used to meet the intent of this chapter: (A) Combination of shrubbery and trees; and /or (B ) Fencing. A six-foot (6 ') high wood fence.i. (OR] masonry wall fence or other fe n ce material of simil ar screening a n d structural character shall be requi red only to meet screening of the developed portion of the property. Sections of the fence must be no longer than twenty-five feet (25 '). Sections must be off-set a minimum of four feet (4 ') so as not to impede the movement of wildlife. New T ext U nderlined ; [D E LET ED TEXT BRACK ETED] Amendment of Section 14.25.040 -Landscaping Plan -Performance C riteria , CONTINUED (3) Grou nd Cover . One hundred p ercent (100%) within three (3 ) year s of pla nting and continuous m aintenan ce so there will be no exposed soil. Flower beds m ay be con s ide r e d grou nd cover. (4) Trees and/or s hrubs appropriate for the climate shall be included in the landsca ping beds. All trees. s hrubs or other vegetation in the r equired landscaping must b e of a stock r ated as hardy for the United States De p a rtme nt of Agricultu r e Climatic Zone 3 . It is not the intent to require s pecific s p ecies. however. property owners a re encouraged to und ersta nd local climate conditio n s. Property owners a r e discoura ged from pla nting invasive s p ecies as defined by the Al ask a Cooperative Extension Service. Property owners are enco ura ge d to co ntac t the Alaska Coopera tive Extens ion Service for a li st o f plan t species w hic h are approp ria te for C limate Zone 3. I n a ll cases the materials shall be l iving and free o f defects and of norma l h ealth . height and spread as defined by the Am eric an Standard for Nu rsery Stock. ANSU Z 60.1. latest available e ditio n . American Nursery a nd Landsca ping Associatio n. (c) Interio r land scaping involves those areas of the p roperty exclusive of the perimeter and parking lot areas. Interior land scaping is d esirable to separate u ses o r activities within the overall developme nt. Screening or visu a l en h ancem ent la ndscaping is r ecommended to accent or comple m e nt buildings, to id entify a nd hig h light entrances to the site, a nd to provide for attr active driveways and streets within the site. Land scap ing may include landscaping beds, trees, and shrubs. (d) Parking Lot La nd scapin g. Pa rking lo t la ndscaping involves the land a reas adjacent to or w ithin all parking lots a nd asso c iated access drives. Parking lot landscaping serves to provide visual relief between vehicle parking areas and the r e m a inder o f the develo pme nt. It also is d esirable for the purpose of impr oving vehicular a nd pedestr ian circula tio n p atterns. (e) Street right-of-way landscaping soften s the impact of land uses a long str ee t rights-of-way, but does not obscure land u ses from s ight. La ndscaping b eds must m eet a ll o f the fo ll owing m inimum standar ds; except w here properties are adjacent to Stat e of Alaska rights-of-way, th e Administrative Officer m ay a pprove a lt e rnatives, which meet the intent of this section b u t protect la ndscaping from winte r m a inte n a n ce d amage. (1) Landscaping Be ds. Minimum of ten feet (10') in wi dth a long the entire length of the property lines which adjoin street rights-of-way, exclusive of driveways and other ingress a nd egress openings; (2) Ground Cover. One hundred p e r cent (100%) ground cover o f the landscaping bed within three (3 ) years o f planting a nd continuous m a intenance so t h e r e w ill be no exposed soil; (3) Trees and/or s hrubs a ppro priate fo r the clim ate s h all be include d in the la nd scaping beds. (f) Review. The Administrative Official m ay con sider plans for amendments if problems arise in carrying out the landscaping/site p lan as origina lly approved . New Text Und e rlined ; [DELETED TE XT BRAC KET ED] Amendment of Section 14.25.080 -Expiration 14.25 .080 Expiration. If [CONSTRUCTION O F] the project h as n ot started within one (1) year of a p p r oval of the landscap ing/sit e pla n , the app roval may be r evoked b y t h e Administr ative Offic ia l after providing at least thirty (30) day s' n o tice u n less extend ed for good cause. New T ext Und e rlined ; [DELETED TEXT BRACKETED] Enactment of Section 14.25.085 -Airport Light Industrial 14.25.085 Airport Light Industrial. On all p rop erties within the Airport Light Industrial Zone (ALI), landscaping and site plan requirements as provided in this Title w ill only a pply to areas on lots that the public has access to, and shall not require landscaping or s ite plans on runway or a pron p ortions of lots. The Airport Master Plan, Airport Layout Plan and Federal Aviation Administration requirements and regulations (including but not limited to deed restrictions and requireme nts, aviation easem ents and grant requirements) shall take precedent over any landscaping or site plan requirement. New Text Underlined ; [DELETED TEXT BRACKETED] Amendment and Renaming of Section 14.25.015 -Landscaping 14.25.100 Definition [LANDSCAPING]. (a) "Land clearing" for purposes of this chapter means tree cutting or other means of removal of trees and established vegetation, other than the c utting of dead trees for the purpose of firewood collection or fire protection, on properties within the Central Commercial (CC), Central Mixed Use (CMU), General Commercial (CG), Limited Commercial (CL), Heavy Industrial (IH), Townsite Historic (TSH), Light Industrial (IL), Airport Light Industrial (ALI) and Education (ED) zoning districts, except for purposes of construction of single to three family dwellings . .(h)_"Landscaping" means the treatment of the ground surface with live planting materials , including but not limited to , trees, shrubs, grass, ground cover or other growing horticultural material. Other materials such as wood chips, stone, or decorative rock may also be utilized. (c) "Commercial, industrial and multifamily development" for purposes of this Chapter means any commercial or industrial improve ments, requiring a building permit for new construction or any improvements of twenty thousand dollars ($20,000.00) or more, which adds square footage, and is: (1) located on properties within the Central Commercial (CC), Central Mixed Use (CMU), General Commercial (CG), Limited Commercial (CL), Heayy Industrial (IH), Townsite Historic (TSH), Light Industrial (IL), Airport Light Industrial (ALI) and Education (EDI zoning districts; or (2) a multifamily development in any zone; or (3) a change of use as required in KMC 14.20.250(a). (dl "M ultifamily development" for purposes of this Chapter means a four (41 or more family dwelling. New Text Underlined; [DELETED TEXT BRACKETED] Suggested Amendments Staff suggests the following amendments to the proposed Ordinance. Staff would like to a d d the below language back into the proposed Ordinance. The Ordinance would exempt the construction of a s ingle-family residence from r equiring a Landscape S ite Plan. However, g iven that in the Residential Zones a commercial use is allowed by a Conditional Use Permit, the b el ow language would r equire the approval of a Landscape Si te Plan. For example, the construction of a Hotel , Bank o r a Retail Business which would b e open to the public requires the issuance of a Conditional Use Permit in the Rural Residential Zone. However, without the below language the proposed Ordinance as written woul d not r equir e a Landscape Site Plan for the above example uses if they were constructed in a Re sidential or Mixed Use Zon e . The proposed language would be inserted after (c) Land clearing, under 14.25.020 -Application. 14.25. 020 Application P roperties zoned Residential (except Multi-Family Dwellings) are exempt from this chapter with the following exception: (1) Structures identified as Commercial Occupancy in Title 4 of the Kenai Municipal Code located in Residential or Mixed Use Zones requiring a Building Permit for new construction or any improvements of twenty thousand dollars ($20, 000. 00 or more, which adds square footage or a change of use as required in KMC 14.20.250(a). Staff also would also like to s uggest adding the fo llowing language to the end of the definition of "Land clearing'' under 14.25.100. This language would allow the removal of an obstruction such as a tree for the purposes of clearing a property line for a s u rvey. R emoval of an obstruction for p urposes ofa survey is not "Land clearing". New Text Underlined ; [DELETED TEXT BRACKETE D] Questions? Kenai City Council Meeting Page 1 of 4 February 7, 2018 ACTION AGENDA KENAI CITY COUNCIL – REGULAR MEETING FEBRUARY 7, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *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. B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) 1. Alaska Permanent Capital Management – Kenai Permanent Fund Investment Performance for 2017, Outlook for 2018, and Establishment of the 2018 Investment Allocation and Benchmarks. [Clerk’s Note: It has been requested to allow 20-25 minutes to complete this presentation.] C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY. Ordinance No. 2999-2018 – Increasing / (Decreasing) Estimated Revenues and Appropriations in the Airport Equipment Capital Project Fund and Authorizing Grant Amendments to Adjust Estimated Grant Proceeds as a Result of Proceeds from the Sale of Equipment Previously Purchased with Federal Aviation Administration Grant Funds. 2. ENACTED UNANIMOUSLY. Ordinance No. 3000-2018 – Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services (IMLS) Passed Through the Alaska State Library for Employee Travel and Training. 3. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3001-2018 – Repealing and Re-Enacting Kenai Municipal Code Section 7.15.090- Sales, Surplus, Competitive Bidding to Provide Administrative Authority for the Disposal of Certain Surplus or Obsolete Supplies, Materials or Equipment. Kenai City Council Meeting Page 2 of 4 February 7, 2018 4. ENACTED UNANIMOUSLY. Ordinance No. 3002-2018 – Increasing / (Decreasing) Estimated Revenues and Appropriations in the Personal Use Fishery Fund for the Remaining FY2018 Expenditures which were Presented in the 2017 Kenai River Personal Use Fishery Report. 5. ENACTED UNANIMOUSLY. Ordinance No. 3003-2018 – Amending Kenai Municipal Code Section 17.10.010-Mandatory Connection and Abandonment of Old Well, and Section 17.20.010- Mandatory Connections and Abandonment of Old On-Site Sewer Systems, to Change the Mandatory Connection Requirements. 6. POSTPONED INDEFINITELY. Ordinance No. 3004-2018 – Amending Kenai Municipal Code Section 1.15.050-Order of Business, to Amend the Use of the Pending Legislation Agenda Item and Make Other Housekeeping Changes. 7. FAILED. Ordinance No. 3005-2018 – Amending Kenai Municipal Code Chapter 7.10- Sales Tax, to Exempt Public Water and Sewer Utility Services to Residential Housing from the City’s Levy of Sales Tax. 8. ADOPTED UNANIMOUSLY. Resolution No. 2018-04 – Amending the City of Kenai Public Records Management and Record Retention Policy Adopted on May 17, 2017 by Resolution No. 2017-22 by Amending Retention Lengths on Meeting Packets and Providing for Retention for Business License Records and Making Other Housekeeping Changes. 9. ADOPTED UNANIMOUSLY. Resolution No. 2018-05 - Adopting a Policy to Provide Procedures for Including Contingency in Contracts. 10. ADOPTED UNANIMOUSLY. Resolution No. 2018-06 – Authorizing the City of Kenai Mayor to Sign Kenai Peninsula Borough Joint Resolution No. 2018-001 Requesting the Alaska Board of Fisheries Adopt a Policy to Rotate the Upper Cook Inlet Finfish Meeting Between the Three Principle Communities of Kenai/Soldotna, Palmer/Wasilla, and Anchorage. 11. ADOPTED UNANIMOUSLY. Resolution No. 2018-07 – Consenting to the Vacation of Certain Rights-of-Way and Utility Easements within the Proposed Buxton Subdivision, Eagle Rock Addition. 12. ADOPTED UNANIMOUSLY. Resolution No. 2018-08 – Pertaining to the Authorized Investments of, the Investment Allocations of, and Establishing Appropriate Benchmarks to Measure Performance of the City’s Permanent Funds for Calendar Year 2018. 13. ADOPTED UNANIMOUSLY. Resolution No. 2018-09 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to Land Lease Application and Renewal Application Fees for Airport Reserve Land. 14. ADOPTED UNANIMOUSLY. Resolution No. 2018-10 – Approving a Standard Lease Form for Leasing Airport Reserve Lands. E. MINUTES Kenai City Council Meeting Page 3 of 4 February 7, 2018 1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of January 17, 2018 2. APPROVED BY THE CONSENT AGENDA. *Corrected Minutes of May 20, 2014 F. UNFINISHED BUSINESS 1. FAILED. Ordinance No. 2992-2017 - Waiving the Requirements of KMC 17.20.010 - Mandatory Connections and Abandonment of Old On-Site Sewer Systems, for 2737 Iliamna Road. [Clerk’s Note: This Item was Postponed to this Meeting from the January 17, 2018 Meeting; A Motion to Enact is On the Floor.] 2. POSTPONED AS AMENDED TO 02/21/2018. Ordinance No. 2993-2017 - Amending Kenai Municipal Code Chapter 14.25-Landscaping/Site Plan Regulations, to Require Landscaping and Site Plans for All Retention Basins, Commercial, Industrial and Multifamily Development and Land Clearing in Certain Zones in the City and Making other Material and Housekeeping Changes. [Clerk’s Note: This Item was Postponed to this Meeting from the January 3, 2018 Meeting; A Motion to Enact is On the Floor.] G. NEW BUSINESS 1. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Bills to be Ratified. 2. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Purchase Orders Exceeding $15,000. 3. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Non-Objection to Liquor License Renewals for: • Acapulco Mexican Restaurant • Main Street Tap & Grill • American Legion Post #20 4. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 02/21/2018. *Ordinance No. 3006-2018 – Increasing Estimated Revenues and Appropriations by $1,441.42 in the General Fund for the Police Department to Purchase Supplies from Asset Forfeiture Funds Received from the State of Alaska. 5. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 02/21/2018 *Ordinance No. 3007-2018 – Appropriating Available Fund Balance to the Multipurpose Facility Capital Project Fund for Facility Improvements Including the Purchase of New Heaters for the Player Benches and Spectator Area. 6. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 02/21/2018 *Ordinance No. 3008-2018 – Accepting and Appropriating $1,600.00 from the Kenai Chamber of Commerce and Visitor Center (the Chamber) for a New Camera in Support of the City and the Chamber’s Joint Eagle Camera Project. 7. EASEMENT APPROVED. Action/Approval – Consent to Non-Exclusive Easement to ACS of the Northland, Inc., for the Installation of Underground Telecommunication Utilities at Two Locations through Lands Owned by the City of Kenai. Kenai City Council Meeting Page 4 of 4 February 7, 2018 8. PROGRAM APPROVED. Action/approval – Council Approval to Implement the “Read on the Fly Program” at the Kenai Municipal Airport. 9. ISSUANCE OF RFP AUTHORIZED. Action/Approval – Authorizing the Issuance of a Request for Proposal for Audit Services. H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Committee 7. Mini-Grant Steering Committee I. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION – None. M. PENDING ITEMS – None. N. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE FEBRUARY 7, 2018 KENAI CITY COUNCIL MEETING NOTICE IS HEREBY GIVEN the City of Kenai Council passed the following Ordinance(s) and/or Resolution(s) at the above-referenced meeting. 1. ENACTED UNANIMOUSLY. Ordinance No. 2999-2018 -Increasing I (Decreasing) Estimated Revenues and Appropriations in the Airport Equipment Capital Project Fund and Authorizing Grant Amendments to Adjust Estimated Grant Proceeds as a Result of Proceeds from the Sale of Equipment Previously Purchased with Federal Aviation Administration Grant Funds . 2 . ENACTED UNANIMOUSLY. Ordinance No. 3000-2018 -Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services (IMLS) Passed Through the Alaska State Library for Employee Travel and Training . 3. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3001-2018 -Repeal ing and Re-Enacting Kenai Municipal Code Section 7.15 .090-Sales , Surplus , Competitive Bidding to Provide Administrative Authority for the Disposal of Certain Surplus or Obsolete Supplies, Materials or Equipment. 4. ENACTED UNANIMOUSLY. Ordinance No. 3002-2018 -Increasing I (Decreasing) Estimated Revenues and Appropriations in the Persona l Use Fishery Fund for the Remaining FY2018 Expenditures which were Presented in the 2017 Kenai River Personal Use Fishery Report. 5. ENACTED UNANIMOUSLY. Ordinance No. 3003-2018-Amend ing Kenai Municipal Code Section 17.10.010-Mandatory Connection and Abandonment of Old Well , and Section 17.20.010-Mandatory Connections and Abandonment of Old On-Site Sewer Systems, to · Change the Mandatory Connection Requirements. 6. ADOPTED UNANIMOUSLY. Resolution No. 2018-04-Amending the City of Kenai Public Records Management and Record Retention Policy Adopted on May 17, 2017 by Resolution No. 2017-22 by Amending Retention Lengths on Meeting Packets and Providing for Retention for Business License Records and Making Other Housekeeping Changes. 7. ADOPTED UNANIMOUSLY. Resolution No. 2018-05 -Adopting a Policy to Provide Procedures for Including Contingency in Contracts . 8. ADOPTED UNANIMOUSLY. Resolution No. 2018-06 -Authorizi ng the City of Kenai Mayor to Sign Kenai Peninsula Borough Joint Resolution No. 2018-001 Requesting the Alaska Board of Fisheries Adopt a Policy to Rotate the Upper Cook Inlet Finfish Meeting Between the Three Principle Communities of Kenai /Soldotna , Palmer/Wasilla, and Anchorage. 9 . ADOPTED UNANIMOUSLY. Resolution No. 2018-07 -Consenting to the Vacatio n of Certain Rights-of-Way and Utility Easements within the Proposed Buxton Subdivision , Eagle Rock Addition . 10. ADOPTED UNANIMOUSLY. Resolution No. 2018-08 -Pertaining to the Authorized Investments of, the Investment Allocations of, and Establishing Appropriate Benchmarks to Measure Performance of the City's Permanent Funds for Calendar Year 2018. 11 . ADOPTED UNANIMOUSLY. Resolution No. 2018-09 -Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to Land Lease Application and Renewal Application Fees for Airport Reserve Land . 12. ADOPTED UNANIMOUSLY. Resolution No. 2018-10 -Approving a Standard Lease Form for Leasing Airport Reserve Lands. Copies of the ordinances and /or resolutions are available in the Office of the Kenai City Clerk. Please be advised , subject to legal limitations, ordinances and/or reso lutions may have been amended by the Council prior to adoption without further public notice . NOTICE OF PUBLIC HEARING FEBRUARY 7, 2018 CITY OF KENAI COUNCIL MEETING NOTICE IS HEREBY GIVEN the City of Kenai will conduct a public hearing on the following Ord inance(s) and/or Resolution(s) on the above-noted meeting date: 1. Ordinance No. 2999-2018 -Increasing I (Decreasing) Estimated Revenues and Appropriations in the Airport Equipment Capital Project Fund and Authorizing Grant Amendments to Adjust Estimated Grant Proceeds as a Result of Proceeds from the Sale of Equipment Previously Purchased with Federal Aviation Administration Grant Funds. 2. Ordinance No. 3000-2018 -Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services (IMLS) Passed Through the Alaska State Library for Employee Travel and Training . 3 . Ordinance No . 3001-2018 -Repealing and Re-Enacting Kenai Municipal Code Section 7 .15.090-Sales, Surplus , Competitive Bidding to Provide Administrative Authority for the Disposal of Certain Surplus or Obsolete Supplies , Materials or Equipment. 4. Ordinance No. 3002-2018 -Increasing I (Decreasing) Estimated Revenues and Appropriations in the Personal Use Fishery Fund for the Remaining FY2018 Expenditures which were Presented in the 2017 Kenai River Personal Use Fishery Report. 5. Ordinance No . 3003-2018 -Amending Kenai Municipal Code Section 17 .10.010- Mandatory Connection and Abandonment of Old Well, and Section 17.20 .010- Mandatory Connections and Abandonment of Old On-Site Sewer Systems , to Change the Mandatory Connection Requirements . 6. Ordinance No. 3004-2018 -Amending Kenai Municipal Code Section 1.15. 050- 0rder of Business , to Amend the Use of the Pending Legislation Agenda Item and Make Other Housekeeping Changes. 7. Ordinance No. 3005-2018 -Amending Kenai Municipal Code Chapter 7 .10-Sales Tax , to Exempt Public Water and Sewer Utility Services to Residential Housing from the City 's Levy of Sales Tax. 8. Resolution No. 2018-04 -Amending the City of Kenai Public Records Management and Record Retention Policy Adopted on May 17 , 2017 by Resolution No . 2017-22 by Amending Retention Lengths on Meeting Packets and Providing for Retention for Business License Records and Making Other Housekeeping Changes . 9. Resolution No. 2018-05 -Adopting a Policy to Provide Procedures for Including Contingency in Contracts . 10 . Reso lution No. 2018-06 -Authorizing the City of Kenai Mayor to Sign Kenai Peninsula Borough Joint Resolution No. 2018-001 Requesting the Alaska Boa rd of Fisheries Adopt a Policy to Rotate the Upper Cook Inlet Finfish Meeting Between the Three Principle Communities of Kenai/Soldotna , Palmer/Wasilla, and Anchorage. 11. Resolution No. 2018-07 -Consenting to the Vacation of Certain Rights-of-Way and Utility Easements within the Proposed Buxton Subdivision, Eagle Rock Addition. 12. Resolution No. 2018-08 -Pertaining to the Authorized Investments of, the Investment Allocations of, and Establishing Appropriate Benchmarks to Measure Performance of the City 's Permanent Funds for Calendar Year 2018. 13 . Resolution No. 2018-09 -Amending its Comprehensive Schedule of Rates, Charges , and Fees to Incorporate Changes to Land Lease Application and Renewal Application Fees for Airport Reserve Land . 14. Resolution No . 2018-10 -Approving a Standard Lease Form for Leasing Airport Reserve Lands . The public hearing will commence at 6:00 p.m ., or as soon thereafter as business permits , in the Kenai City Council Chambers, 210 Fida Igo Avenue, Kenai, Alaska, 99611. All interested persons are invited to attend the meeting and participate in the public discussion . Written comments may be sent to the Kenai City Council , c/o Kenai City Clerk, 210 Fidalgo Avenue , Kenai , AK, 99611. Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk and will be available at the meeting for public review . Please be advised , subject to legal limitations, ordinances and/or resolutions may be amended by the Council prior to adoption without further public nor e . einz, CMC , City Clerk : February 2, 2018