HomeMy WebLinkAbout2018-05-02 Council Packet KENAI CITY COUNCIL - REGULAR MEETING
MAY 02, 2018 - 6:00 PM
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
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) -
None.
C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per
speaker; thirty (30) minutes aggregated)
D.PUBLIC HEARINGS
D.1.Ordinance No. 3015-2018 – Accepting and Appropriating a Volunteer Fire Assistance (VFA)
Grant From the United States Department of Agriculture Forest Service Passed Through the
State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment.
(Administration)
Ordinance No. 3015-2018.pdf
D.2.Ordinance No. 3016-2018 – Increasing Estimated Revenues and Appropriations by $4,434.88
in the General Fund – Police Department for State Traffic Grant Overtime Expenditures.
(Administration)
Ordinance No. 3016-2018.pdf
D.3.Ordinance No. 3017-2018 – Accepting Drug Seizure Funds Forfeited to the City in the
Amount of $4,709.63 and Appropriating the Funds for the Purchase of Police Department
Small Tools. (Administration)
Ordinance No. 3017-2018.pdf
D.4.Ordinance No. 3018-2018 – Amending Kenai Municipal Code Title 23-Personnel Regulations,
to Create a New Class of Employees Defined as “Department Head Service” that Includes
Employees who Work at Will and are Compensated within A Salary Range Approved by the
Council, and Making other Housekeeping Changes. (Council Members Navarre &
Glendening)
1
Kenai City Council Meeting Page 2
May 02, 2018
Ordinance No. 3018-2018.pdf
D.5.Ordinance No. 3019-2018 – Increasing Estimated Revenues and Appropriation in the General
and Municipal Roadway Improvements Capital Project Funds and Awarding A Contract To
Complete The Ryan’s Creek Outfall Repair Project To Foster Construction, Inc.
(Administration)
Ordinance No. 3019-2018.pdf
D.6.Ordinance No. 3020-2018 – Increasing Estimated Revenues and Appropriations in the Water
& Sewer Special Revenue and Water & Sewer Improvements Capital Project Funds and
Authorizing a Change Order to the Contract with the State of Alaska Department of
Transportation for the Project Entitled “Spur Highway Water Main Replacement – Spur
Highway and Shotgun Drive”. (Administration)
Ordinance No. 3020-2018.pdf
D.7.Resolution No. 2018-18 – Awarding a Contract for External Audit Services to BDO USA, LLP.
(Administration)
Resolution No. 2018-18.pdf
D.8.Resolution No. 2018-19 - Amending Policy No. 2016-01, Procedures for Commissions,
Committees and Council on Aging – to Provide for Recording Planning and Zoning
Commission Work Sessions and Joint Work Sessions between Commissions, Committees,
and/or Council on Aging. (Council Member Molloy)
Resolution No. 2018-19.pdf
D.9.Resolution No. 2018-20 - Consenting to an Amendment Extending the Timeframe for Legacy
Electric LLC, Lessee, to Complete Improvements as Set Forth in the Original Lease of Airport
Reserve Lands. (Administration)
Resolution No. 2018-20.pdf
E.MINUTES
E.1.*Regular Meeting of April 18, 2018
04-18-18 Council Minutes - DRAFT.pdf
F.UNFINISHED BUSINESS - None.
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 New Commercial Retail Marijuana Store for:
• Cook Inlet Cannabis Company D/B/A East Rip – License No. 13382
Cook Inlet Cannabis Retail Marijuana Store.pdf
G.4.*Ordinance No. 3021 – 2018 – Determining that Tract C Dragseth Subdivision – 2017
Addition, Located within the East ½ Section 7, Township 5 North, Range 11 West, Seward
Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska is Not
Needed for a Public Purpose and Approving a Sale of the Property for its Appraised Value to
2
Kenai City Council Meeting Page 3
May 02, 2018
Ron Hyde. (Administration)
Ordinance No. 3021-2018.pdf
G.5.Action/Approval – Authorize the Creation of a Sub-Committee of the Harbor Commission for
the Purpose of Determining the Roles and Responsibilities of the Commission. (City Clerk)
Harbor Subcommittee.pdf
G.6.Action/Approval – Approving a Special Use Permit to Kenai Rotary for Use of the
Multi-Purpose Facility for the Kenai Rotary Soap Box Derby. (Administration)
Rotary SUP.pdf
G.7.Discussion – Wake Zone Signage at the Mouth of the Kenai River. (Administration)
Wake Zone Signage.pdf
H.COMMISSION/COMMITTEE REPORTS
H.1.Council on Aging
04-12-18 COA Meeting Summary - DRAFT.pdf
H.2.Airport Commission
04-12-18 Airport Summary - DRAFT.pdf
H.3.Harbor Commission
04-09-18 Harbor Summary -DRAFT.pdf
H.4.Parks and Recreation Commission
H.5.Planning and Zoning Commission
04-11-18 P&Z Minutes - DRAFT.pdf
H.6.Beautification Committee
04-10-18 Beauty Summary - DRAFT.pdf
H.7.Mini-Grant Steering Committee
I.REPORT OF THE MAYOR
J.ADMINISTRATION REPORTS
J.1.City Manager
City Manager's Report.pdf
J.2.City Attorney
J.3.City Clerk
City Clerk's Report.pdf
K.ADDITIONAL PUBLIC COMMENT
K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker)
3
Kenai City Council Meeting Page 4
May 02, 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.
4
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3015-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND
APPROPRIATING A VOLUNTEER FIRE ASSISTANCE (VFA) GRANT FROM THE UNITED
STATES DEPARTMENT OF AGRICULTURE FOREST SERVICE PASSED THROUGH THE
STATE OF ALASKA DIVISION OF FORESTRY FOR THE PURCHASE OF FORESTRY
FIREFIGHTING EQUIPMENT.
WHEREAS, the State of Alaska Division of Forestry has provided a grant in the amount of
$7,499.85 to assist the City of Kenai Fire Department in purchasing forestry firefighting
equipment; and,
WHEREAS, appropriation of this grant for its intended purpose is in the best interest of the City
and its residents.
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 from the Unities States
Department of Agriculture Forest Service passed through the State of Alaska Division of Forestry
in the amount of $7,499.85 for the purchase of forestry firefighting equipment and is authorized
to execute a grant agreement and to expend the grant funds to fulfill the purpose and intent of
this Ordinance.
Section 2. That the estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues –
Federal Grants – Fire $7,499.85
Increase Appropriations –
Fire – Small Tools/Minor Equipment $7,499.85
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
immediately upon enactment.
5
Ordinance No. 3015-2018
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, City Clerk
Introduced: April 18th, 2018
Enacted: May 2nd, 2018
Effective: May 2nd, 2018
6
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Jeff Tucker, Fire Chief
DATE: April 2, 2018
SUBJECT: VFA Grant - Ordinance No. 3015-2018
______________________________________________________________________
The City of Kenai Fire Department has been awarded a Volunteer Fire Assistance (VFA) grant in
the amount of $7,499.85 for the purchase of forestry firefighting equipment from the United States
Department of Agriculture Forest Service through the State of Alaska Division of Forestry. The
grant will fund the purchase of fire hose, chainsaw chaps, and fire nozzles.
7
GOVERNOR BILL WAL KER
March 28,2018
Dear Volunteer Fire Department:
Department of Natural Resources
DIVISION OF FORESTRY
550 West 7'h Suite 1450
Anchorage, AK 9950 l
Main: 907.269-8463
Fax: 907 .269-8421
Thank you for applying for the 2018 Volunteer Fire Assistance grants. 41 fire departments applied for a Volunteer
Fire Assistance NFA) grant requesting a total of $293,996.24 in assistance. 39 of the 41 applications will receive
some level of funding. A total of $277, 123.43 will be awarded. The enclosed spreadsheet lists all applicants and
amount requested. If a fire department was awarded a grant, the amount awarded will be listed in the column titled
"Amount Awarded". Some VFDs will not receive an award this year and some will receive a partial award due to
some requested items being ineligible for funding.
Successful applicants for VFA grants will soon receive their check from their local Forestry office.
• Checks must be cashed within 90 days of issuance. It strongly advised checks be cashed upon receipt.
•· To be eligible for the 2019 VFA grants, compliance documentation, such as copies of receipts for 2018 grant
expenditures, must be submitted at the time of or prior to submitting a 2019 application to your nearest
Forestry office.
• Volunteer Fire Assistance is an award of Federal Financial Assistance with funding from the USDA Forest
Service and as such is subject to the Office of Management and Budget (OMB) Circular A-87, Cost Principles
for State, Local and Indian Tribal Governments; OMB Circular A-102 (Grants and Cooperative Agreements
with State and Local governments) as implemented by USDA regulation 7 CFR Part 3016 (Uniform
Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments); and
OMB Circular A-133 (Audits of States, Local Governments, and Non-Profit Organizations) as implemented by
USDA regulation 7 CFR 3052. The OMB Circulars are available on the internet at
www.whitehouse.gov/omb/grants. Electronic copies of the CFR's can be obtained at the following internet
site: www.gpoaccess.gov/cfr/. If you are unable to retrieve these regulations electronically, please contact
Arlene Weber-Sword at (907)269-8471.
Jf an application was not fully successful do not be discouraged and continue to apply every year by submitting a
complete online application package by deadline. VFDs that did not recieve any funding or recieved a partial
amount, please contact your local Forestry Fire Managment Officer with any questions regarding the application.
The local Division of Forestry offices will be sending out VFA award checks with a letter out lining compliance
requirements sometime in the next few weeks.
Sincerely,
Arlene Weber Sword
Fire Staff Officer
8
2018 VFA Grant Awards
Fire Department Amount
Requested
Amount
Awarded
Division of Forestry Office
Rural Deltana VFD 7 500.00 Delta Area Office
Chena-Goldstream Fire & Rescue $7 371 .00 Fairbanks Area Office
EsterVFD $6 833.00 Fairbanks Area Office
Saleha Fire & Rescue $7 458.30 $7 458 .30 Fairbanks Area Office
Steese Area VFD $7 395.30 $7 395.30 Fairbanks Area Office
Tri-Valle VFD $7 429.00 7 259.00 Fairbanks Area Office
Anchor Point Fire & Emergency $7,500.00 $7,500 .00 Kenai Kodiak Area Office
Medical Service Area
Bear Creek F1reJEMS De rtment 7 437.60 $7 43760 Kenai Kodiak Area Office
Fire Protection Area No 1 (Bayside $7,315.00 $7 ,315.00 Kenai Kodiak Area Office
Fire Station
Kachemak Erne . Services $7 461 .00 Kenai Kodiak Area Office
Kenai FD $7 499.85 7 499.85 Kenai Kodiak Area Office
Lowell Point VFD $7 492.50 Kenai Kodiak Area Office
Nikiski FD $6 718.14 Kenai Kodiak Area Office
Ninilchik Erner en Services $5 395.50 Kenai Kodiak Area Office
Seward FD 7 312 .50 Kenai Kodiak Area Office
Bethel FD $7 470.00 $7 470.00 Mat Su Area and Southwest District
Butte FD $6 674.40 $6674.40 Mat Su Area and Southwest District
Caswell Lakes FSA #135 $5 255.05 $5.255.05 Mat Su Area an~ Southwest District
$7,500.00 $6i180.00 Mat Su Area and Southwest District
Girdwood Vol . Fire & Rescue Inc. $7 360.00 $7 360.00 Mat Su Area and Southwest District
Houston FD $7 470.00 $7,470.00 Mat Su Area and Southwest District
Nondalton VFD $7.500.00 $7.500 .00 Mat Su Area and Southwest District
Nun itchuk FD $7,319.02 $7 319.02 Mat Su Area and Southwest District
Palmer Fire and Rescue $7 500.00 -·--$7 500.00 Mat Su Area and Southwest District
Sutton VFD $7 442.50 $7 442.50 Mat Su Area and Southwest District
Talkeetna VFD 7 499.85 $7,499.85 Mat Su Area and Southwest District
West Lakes FD $7 500.00 $7 500.00 Mat Su Area and Southwest District
WillowVFD $7 449.25 7 449.25 Mat Su Area and Southwest District
Crai VFD $7 500 .00 Southeast Alaska
Gustavus VFD 7 312 50 Southeast Alaska
$7 500.00 Southeast Alaska
$7 500 .00 Southeast Alaska
$7 005.00 $7 005.00 Southeast Alaska
7110.50 $6 510 50 Tok Area Office
$7 497.02 $7 211 .02 Tok Area Office
TetlinVFD $6 030 00 $6 030.00 Tok Area Office
TokVFD $5.842 79 $5.842 79 Tok Area Office
9
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3016-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $4,434.88 IN THE GENERAL FUND –
POLICE DEPARTMENT FOR STATE TRAFFIC GRANT OVERTIME EXPENDITURES.
WHEREAS, the Kenai Police Department joins with other law enforcement agencies statewide to
support Alaska Highway Safety Office (AHSO) traffic safety programs to reduce fatalities and
injuries on roadways ; and,
WHEREAS, AHSO traffic-related overtime funds require no local match and allow the Department
to provide specific traffic safety patrols; and,
WHEREAS, actual AHSO overtime expenditures for traffic safety patrols totaled $4,434.88 from
July 1, 2017 to March 31, 2018; and,
WHEREAS, overtime for these additional traffic safety patrols is not budgeted and the Department
is requesting replenishment of its overtime budget equal to the amount of AHSO grant funding
received.
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 grant funds from the State of
Alaska in the amount of $4,434.88 and to expend grant funds to fulfill the purpose and intent of
this Ordinance.
Section 2. That the estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues –
State Grants - Police $4,434.88
Increase Appropriations –
Police - Overtime $4,434.88
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.
10
Ordinance No. 3016-2018
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
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
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, City Clerk
Introduced: April 18, 2018
Enacted: May 2, 2018
Effective: May 2, 2018
11
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: David Ross, Police Chief
DATE: March 26, 2018
SUBJECT: Ordinance No. 3016-2018 - Ordinance accepting and appropriating
Alaska Highway Safety Office grant funds for Police Overtime
____________________________________________________________________________
The Kenai Police Department continues to participate in traffic enforcement overtime patrols,
reimbursed to the City of Kenai through a grant by the Alaska Highway Safety Office (AHSO).
These overtime patrols are not budgeted in the FY18 budget.
Actual overtime costs for traffic enforcement around the 4th of July and Labor Day holidays that
qualified for AHSO reimbursement, was $1,671.66. The overtime costs for traffic enforcement
around the Thanksgiving holiday that qualified for AHSO reimbursement, was $1,261.69. The
overtime costs for traffic enforcement around the Christmas and New Years’ holidays that
qualified for AHSO reimbursement, was $1,501.53.
AHSO – overtime reimbursements are deposited into the general fund. I would respectfully
request appropriation of the grant amount to the police overtime account.
12
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3017-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING DRUG
SEIZURE FUNDS FORFEITED TO THE CITY IN THE AMOUNT OF $4,709.63 AND
APPROPRIATING THE FUNDS FOR THE PURCHASE OF POLICE DEPARTMENT SMALL
TOOLS.
WHEREAS, the Kenai Police Department has received notice from the Court authorizing the
forfeiture to the Kenai Police Department of $4,709.63 in cash related to the adjudication of drug
cases; and,
WHEREAS, the cash was seized during drug investigations, in which the Kenai Police
Department was the investigating agency; and,
WHEREAS, the Police Department, pursuant to conditions of acceptance, will utilize the forfeited
funds in the furtherance of the administration of justice.
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 forfeited funds in the amount
of $4,709.63 and to expend those funds to fulfill the purpose and intent of this Ordinance.
Section 2. That the estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues –
Forfeitures - Police $4,709.63
Increase Appropriations –
Police – Small Tools $4,709.63
.
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
immediately upon enactment.
13
Ordinance No. 3017-2018
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, City Clerk
Introduced: April 18, 2018
Enacted: May 2, 2018
Effective: May 2, 2018
14
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: David Ross, Police Chief
DATE: March 26, 2018
SUBJECT: Ordinance No. 3017-2018 - Ordinance accepting and appropriating
forfeiture funds from drug investigations for police equipment
____________________________________________________________________________
The City of Kenai currently holds $4,709.63 in investigative seizure money that has been forfeited
to the Department. Kenai Court orders were issued, that ordered the forfeiture of funds including
$4,709.63 to the Kenai Police Department. The forfeiture is the result of drug investigations in
which the Kenai Police Department was the investigating agency. The funds are designated to
be used in the furtherance of the administration of justice.
I am respectfully requesting an ordinance appropriating $4,709.63 into the General Fund, Police-
Small Tools account to help pay for police equipment.
15
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Vice Mayor Navarre
and Council Member Glendening
CITY OF KENAI
ORDINANCE NO. 3018-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI
MUNICIPAL CODE TITLE 23-PERSONNEL REGULATIONS, TO CREATE A NEW CLASS OF
EMPLOYEES DEFINED AS “DEPARTMENT HEAD SERVICE” THAT INCLUDES EMPLOYEES
WHO WORK AT WILL AND ARE COMPENSATED WITHIN A SALARY RANGE APPROVED BY
THE COUNCIL, AND MAKING OTHER HOUSEKEEPING CHANGES.
WHEREAS, Department Heads are directly responsible to the City Manager for the management
of departments in the City; and,
WHEREAS, these professional and supervisory positions require experienced personnel to
provide departmental direction and leadership; and,
WHEREAS, the City’s Personnel Code does not currently provide sufficient flexibility to allow the
City to consistently recruit and retain top candidates for Department Head positions because the
City is limited to offering compensation at entry levels within the position’s salary range and does
not provide for annual adjustments outside the step schedule; and,
WHEREAS, amending the Personnel Code to allow the City Manager to offer Department Heads
compensation anywhere within a range approved by the City Council commiserate with the
individual’s experience, skills, performance and/or value to the City, will improve the City’s ability
to attract and retain quality Department Heads; and,
WHEREAS, it is a common practice for municipal department heads to work at will for the
administrative head of a municipality; and,
WHEREAS, having department heads serve at will allows a municipal manager the ability to make
changes in departmental leadership when necessary for reasons that are important to the function
of the department, in line with the manager’s philosophy, and in best interest of the City; and,
WHEREAS, bringing in new Department Heads as at will employees allows the City Manager
broader control over the City’s departments, which the City Manager is ultimately responsible for,
while allowing existing Department Heads to continue in the same or similar work environment
under which they were initially hired in a grandfathered status; and,
WHEREAS, existing Department Heads may voluntarily choose to become at will and a part of
the new “Department Head Service,” at any time; and,
WHEREAS, other housekeeping changes are needed to improve the City’s Personnel Code.
16
Ordinance No. 3018-2018
Page 2 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. Amendment of Section 23.05.060 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.05.060 - Tenure, is hereby amended as follows:
23.05.060 Tenure.
Tenure of employees in the classified service [COVERED BY THIS TITLE] shall be subject
to good behavior, satisfactory performance of work, necessity for the performance of work, and
the availability of funds.
Section 2. Amendment of Section 23.05.070 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.05.070 - Definitions, is hereby amended as follows:
23.05.070 Definitions.
As used in Title 23, the following terms shall have the meanings indicated:
(a) Unclassified Service. The unclassified service shall include all elected officials, City
Manager, City Attorney, City Clerk, seasonal and temporary employees. Members of boards,
committees, commissions, volunteers, contractors, and consultants are not employees.
(b) Classified Service. All paid employees not in the unclassified [SERVICE] or Department
Head Service.
(c) Department Head Service. The Department Head Service shall include employees who
are directly responsible to the City Manager for the administration of one or more
departments.
[(C)](d) Full-Time. Employees scheduled to work forty (40) hours per week (except certain
Fire Department employees who work an average of fifty-six (56) hours per week) are
considered full time.
[(D)](e) Part-Time. Employees scheduled to work less than forty (40) hours per week.
[(E)](f) Regular. Employees who have completed the probationary period. They may be
assigned to work a full-time or part-time schedule.
[(F)](g) Seasonal. Employees who perform seasonal work for a pre-established period of
not more than six (6) months during a twelve (12)-month period. Seasonal Employees may
be assigned a full time or part-time schedule and are eligible for Public Employee Retirement
Benefits but are ineligible for other benefits and holiday pay. Seasonal Employees who have
completed the probationary period may return to the seasonal position each season subject
to performance evaluations, general conduct and discipline, personnel rules and policies of
the City, layoff, reorganization and other business needs of the City.
[(G)](h) Temporary. Employees who are hired for a pre-established period, usually during
peak workloads or for vacation relief and for not more than six (6) months. They may be as-
signed to work a full-time or part-time schedule. They are ineligible for benefits and holiday
pay.
[(H)](i) Probationary Period. Normally six (6) months, except for Police, Communications
and Fire, which is normally twelve (12) months. This period can be extended up to, but no
longer than, twelve (12) months and eighteen (18) months, respectively.
[(I)](j) Department. The smallest functional budgetary unit of the City government
established by the City Council.
[(J) DEPARTMENT HEAD. A CLASSIFIED EMPLOYEE DIRECTLY RESPONSIBLE TO
THE CITY MANAGER FOR THE ADMINISTRATION OF ONE (1) OR MORE
DEPARTMENTS.]
17
Ordinance No. 3018-2018
Page 3 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
(k) Promotion. An advancement of an employee from one (1) job classification to a higher
job classification within the same department.
(l) Transfer. The movement of an employee from one (1) department to another
department, regardless of job classification.
(m) [GENERAL GOVERNMENT EMPLOYEE. A CITY EMPLOYEE OTHER THAN A
PUBLIC SAFETY EMPLOYEE.
(N)] Public Safety Employee. A person employed in the Police, Fire, or Communications
Department.
[(O)](n) Supervisor. Any person who is responsible to a higher divisional or department
level of authority and who directs the work of others.
[(P)](o) City Manager. A person directly responsible to the City Council who is authorized
and directed to exercise the powers and fulfill the duties as specified in the Charter and
Municipal Code of the City of Kenai.
[(Q)](p) City Attorney. A person directly responsible to the City Council. He or she is the
chief legal advisor to the Council and all other officers, departments and agencies of the City
government in matters relating to their official powers and duties.
[(R)](q) City Clerk. An officer of the City, appointed by the Council, for an indefinite period
of time and shall serve as clerical officer of the Council.
[(S)](r) Grievance. An employee’s oral or written expression of dissatisfaction with some
aspect of his or her employment, a management decision affecting him or her, or an alleged
violation of his or her rights for the purpose of attempting to gain an adjustment of said cause
of dissatisfaction.
Section 3. Amendment of Section 23.10.010 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.10.010 - General, is hereby amended as follows:
23.10.010 General.
All offices and positions of the City are divided into [C]Classified [S]Service, [AND
U]Unclassified [S]Service and Department Head Service. [ALL THE PROVISIONS OF THIS
CHAPTER SHALL APPLY TO POSITIONS IN THE CLASSIFIED SERVICE. THE PROVISIONS
OF THIS CHAPTER SHALL APPLY TO POSITIONS IN THE EXEMPT SERVICE AS INDICATED
IN KMC 23.10.020.]
Section 4. Amendment of Section 23.10.020 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.10.020 –Unclassified service, is hereby amended as follows:
23.10.020 Unclassified [S]Service.
The unclassified service shall include the following:
(a) Mayor and Council Members. Only the following provisions shall apply: KMC
23.30.110(b) and (d) [AND 23.40.080 (AS APPLICABLE)], 23.40.100 and 23.40.110.
(b) Members of Boards or Commissions. Only the following provisions shall apply to such
officials: KMC 23.30.110(b) and (d). Only the following provisions shall apply to Planning and
Zoning Commissioners compensated pursuant to KMC 14.05.010: KMC 23.40.100 and
23.40.110.
(c) The following Council-appointed administrative offices:
(1) City Manager. The City Manager shall perform all those duties mandated for his
or her position by the provisions of this chapter and shall be bound or receive the
benefits of the following sections insofar as they are applicable: KMC 23.25.050 and
23.25.060(d); KMC 23.30.110(b), (C) and (d); and KMC 23.40.020, 23.40.030,
23.40.040, 23.40.060, 23.40.070, 23.40.095, 23.40.100, 23.40.110, 23.40.120, and
18
Ordinance No. 3018-2018
Page 4 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
23.40.130. The Council shall by resolution determine whether KMC 23.40.080 applies
to the position of City Manager.
(2) City Clerk. Only those provisions specifically enumerated under subsection (1)
above shall apply to the City Clerk.
(3) City Attorney. Only those provisions specifically enumerated under subsection (1)
above shall apply to the City Attorney.
(d) Volunteer Personnel and Personnel Appointed to Serve Without Pay. None of the
provisions of this chapter shall apply to such personnel.
(e) Consultants and Counsel Rendering Temporary Professional Services. Such services
shall be by contract and none of the provisions of this chapter shall apply.
(f) Positions Involving Seasonal or Temporary Work. All of the provisions of this chapter
shall apply to such positions but only insofar as they are applicable.
[(G) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE
EXEMPT SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF
THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION:
CITY MANAGER
CITY ATTORNEY
CITY CLERK]
Section 5. Amendment of Section 23.10.030 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.10.030 –Classified service, is hereby amended as follows:
23.10.030 Classified [S]Service.
The [C]Classified [S]Service shall include all [OTHER POSITIONS IN THE CITY SERVICE]
paid employees not in the Unclassified or Department Head Service.
(a) [ALL P]Positions in the Classified Service are established by the annual budget or
[COMPENSATION GUIDE] Classification Plan. [ADOPTED BY RESOLUTION OF THE
CITY COUNCIL. ANY NEW POSITION CREATED AT THE START OR DURING THE
BUDGET YEAR AND EITHER RATIFIED OR AFFIRMED BY THE CITY COUNCIL.]
[(B) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE
CLASSIFIED SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS
OF THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION:
AIRPORT MANAGER
FINANCE DIRECTOR
FIRE CHIEF
LIBRARY DIRECTOR
PARKS AND RECREATION DIRECTOR
POLICE CHIEF
POLICE LIEUTENANT
PUBLIC WORKS DIRECTOR
PUBLIC WORKS MANAGER
SENIOR CENTER DIRECTOR.]
Section 6. Enactment of Section 23.10.035 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.10.035 –Department Head Service, is hereby enacted as follows:
19
Ordinance No. 3018-2018
Page 5 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
23.10.035 Department Head Service
(a) Positions in the Department Head Service are established by the annual budget or
Classification Plan.
(b) The Department Head Service shall consist of full-time paid employees who are the
heads of departments. Department Heads serve at will. The City Manager may suspend or
dismiss such employees without cause subject to review by the City Attorney.
Section 7. Amendment of Section 23.20.010 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.20.010 –Initial classification, is hereby amended as follows:
23.20.010 Initial [C]Classification.
The City Manager shall make analysis of the duties and responsibilities of all positions in the
[C]Classified [S]Service and Department Head Service and shall recommend to the Council a job
classification plan. Each position in the [C]Classified [S]Service and Department Head Service
shall be assigned to a job class on the basis of the kind and level of its duties and responsibilities.
[, TO THE END THAT] All positions in the same class shall be sufficiently alike to make use of a
single descriptive title, the same qualification requirements, the same test of competence, and
the same pay scale. A job class may contain one [(1)] position or more than one [(1)] position.
The Council shall adopt a classification plan by ordinance.
Section 8. Amendment of Section 23.25.020 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.25.020 –Pay plan and adoption, is hereby amended as follows:
23.25.020 Pay [P]Plan and [A]Adoption.
The City Manager shall submit the pay plan and rules for its administration to the City Council
for adoption. Before the pay plan and the rules for its administration are adopted by the Council,
the City Manager shall assign each job class to one [(1)] of the pay ranges provided in the pay
plan. A salary schedule for the Department Heard Service shall be part of the pay plan. The
Council shall adopt a plan and rules by ordinance.
Section 9. Amendment of Section 23.25.030 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.25.030 –Pay plan amendment, is hereby amended as follows:
23.25.030 Pay [P]Plan [A]Amendment.
The pay plan may be amended by the City Council from time to time as circumstances
require, either by adjustment of rates or by reassignment of job classes to different pay ranges or
salary schedule. All modifications shall apply uniformly to all positions in the same class.
Section 10. Amendment of Section 23.25.040 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.25.040 –Appointee compensation, is hereby amended as follows:
23.25.040 Appointee [C]Compensation –Classified Service.
(a) Upon initial appointment to a position, the employees in the Classified Service shall
receive the minimum compensation for the class to which the position is allocated, except
as provided below.
(b) [HOWEVER, I]In [THE] cases when unusual difficulty in filling the vacancy is
experienced, or when the appointee is exceptionally qualified, the City Manager may cause
the appointment for employees in the Classified Service to be made at a compensation level
above the minimum, but not more than level D for the same class.
20
Ordinance No. 3018-2018
Page 6 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
Section 11. Enactment of Section 23.25.045 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.25.045 –Department Heads, is hereby Enacted as follows:
23.25.045 Department Heads
(a) Upon initial appointment to a position, employees in the Department Head Service
shall receive the minimum compensation for the class to which the position is allocated,
except as provided below.
(b) In cases when unusual difficulty in filling the vacancy is experienced, or when the
appointee is exceptionally qualified, the City Manager may cause the appointment for
employees in the Department Head Service to be made at a compensation level above the
minimum, but not more than the maximum for the same class.
Section 12. Amendment of Section 23.25.060 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.25.060 –Overtime, is hereby amended as follows:
23.25.060 Overtime.
(a) Department heads and supervisors shall assign to each employee regular work duties
and responsibilities which can normally be accomplished within the established work day
and work week.
(b) When employees are required to work overtime, department heads shall authorize
compensatory time off or overtime pay. Determination to grant overtime pay or compensatory
time off shall rest with the department head, City Manager, or acting department heads, who
shall give due consideration to desires of the employee, to budgetary controls, and to the
provisions of subsection (c) of this section. Rates for overtime (in addition to regular
compensation based upon compensation schedules) shall be based upon the employee’s
regular rate of pay as follows:
(1) [GENERAL GOVERNMENT E]Employees in the Classified Service (excluding
public safety, sewer treatment plant, and temporary employees):
Regular Pay Times
Regular Work 1 1/2
Saturday 1 1/2
Sunday 2
Holiday 2 1/2
(2) Temporary employees:
Regular Pay Times
Regular Work 1 1/2
Saturday 1 1/2
Sunday 1 1/2
Holiday 1 1/2
(3) [GENERAL GOVERNMENT] Employees in the Classified Service and temporary
employees other than employees engaged in fire protection activities must be in a paid
status for forty (40) hours in the work week before overtime compensation will be paid.
21
Ordinance No. 3018-2018
Page 7 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
(4) Police, communications and sewer treatment plant employees:
Regular Pay Times
Regular Work Day 1 1/2
Saturday 1 1/2
Sunday 2
(5) Employees engaged in fire protection activities:
Regular Pay Times
Regular Work 1 1/2
Saturday 1 1/2
Sunday 1 1/2
(6) Police, communications, employees engaged in fire protection activities, and
sewer treatment plant employees must be in a paid status for their normal work week,
as follows, before overtime compensation will be paid:
Police 40 hours
Employees engaged in fire
protection activities
As required by the Fair
Labor Standards Act
Communications 40 hours
Sewer treatment plant 40 hours
However, overtime may be paid as required by the Fair Labor Standards Act,
recognizing that an employee’s salary is compensation for the normal shifts specified
in this Title.
(c) Compensatory time accumulation shall not exceed the total number of hours equal to
one (1) regular shift of the employee. Once this maximum accumulation has been reached,
all overtime compensation earned by the employee shall automatically be paid in cash.
(d) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND
EXEMPT SERVICES CONSIDERED TO BE] Positions exempt from the provisions of the
Fair Labor Standards Act shall not be bound to a work week of any set number of hours. The
individuals in these positions are expected to work as many hours as the responsibilities of
their positions require. As a result, individuals in these positions shall not be paid overtime
or allowed to accrue compensatory time.
Section 13. Amendment of Section 23.25.080 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.25.080 –Promotion, is hereby amended as follows:
23.25.080 Promotion.
When an employee in the Classified Service is promoted from one class to another having
a higher pay range, he or she shall receive an increase of not less than one (1) pay step from his
or her former position.
Section 14. Amendment of Section 23.30.010 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.30.010 –General, is hereby amended as follows:
23.30.010 General.
(a) Recruitment and appointing authority shall be vested in the City Manager.
22
Ordinance No. 3018-2018
Page 8 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
(b) Applicants must be United States citizens or eligible for employment under existing
State and Federal laws and regulations in order to be employed by the City.
(c) Applicants for positions in the [CITY] Classified and Department Head [S]Service need
not reside within the City Limits. Departmental rules shall establish response times required
by that department.
(d) Minimum age for City employment shall be in accordance with State of Alaska laws.
(e) Employment of qualified individuals with a disability shall be encouraged.
(f) Employment rights for veterans shall be in accordance with applicable State and
Federal laws.
(g) Applicants must possess an appropriate valid Alaska State driver’s license, should
employment require operation of a motor vehicle.
(h) Applicants must complete a City application form or submit a resume of sufficient detail
to equate to a City form.
Section 15. Amendment of Section 23.30.030 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.30.030 –Probationary Period, is hereby amended as follows:
23.30.030 Probationary Period for Employees in the Classified Service.
(a) All original appointments for employees in the Classified Service including those that
result from transfers shall be tentative and subject to a probationary period of not less than
six (6) months consecutive service, except for police, fire, and communications, which shall
be normally twelve (12) months, subject to meeting criteria for certification which may be
accomplished following six (6) months of service and except for seasonal employees whose
probationary period is established by the term of the first season of employment. Promotional
appointment probationary period shall, for all [PERSONNEL]employees in the Classified
Service, be not less than six (6) months.
(b) In cases where the responsibilities of a position in the Classified Service are such that
a longer period is necessary to demonstrate an employee’s qualifications, the probationary
period may be extended; however, no probationary period shall be extended beyond twelve
(12) months, or eighteen (18) months for police, fire, and communications, or one additional
season for seasonal employees. The employee shall be notified in writing of any extension
and the reasons therefor.
(c) During the first six (6) months of original probationary period, a new employee (including
police, fire, and communications) shall not be eligible for annual leave benefits, but he or she
shall earn annual leave credit from the first day of employment and may take leave for
sickness during that period to the maximum of the amount of leave accrued.
(d) Upon completion of the probationary period, employees in the Classified Service shall
be considered as having satisfactorily demonstrated qualifications for the position, shall gain
regular status, one step in pay raise, and shall be so informed through his or her supervisor.
The employee’s anniversary date shall be the first of the month in which the employee’s
original probation ends. Employees who have gained regular status at the effective date of
the ordinance codified in this section shall have their anniversary dates changed to the first
of the month in which the employee’s present anniversary date falls.
(e) During the probationary period, a new employee [HIRE] hired in the Classified Service
may be terminated at any time without advance notice, without cause, and without appeal.
(f) In the case of promotional appointments, the promoted employee may be demoted at
any time during the probationary period without appeal, provided that the probationary
employee be reinstated in the class designation from which he or she was promoted, even
though this necessitates the layoff of the employee occupying the position.
23
Ordinance No. 3018-2018
Page 9 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
Section 16. Repeal of Section 23.30.040 of the Kenai Municipal Code: That Kenai Municipal
Code, Section 23.30.040 –Evaluation, is hereby Repealed as follows:
[23.30.040 EVALUATION.
(A) EVALUATIONS SHALL BE REQUIRED ANNUALLY OF ALL CLASSIFIED
EMPLOYEES AND AFTER EACH SEASON FOR SEASONAL EMPLOYEES.
SUPERVISORS SHALL INDICATE THEREON HIS OR HER RECOMMENDATION AS TO
WHETHER OR NOT THE EMPLOYEE SHOULD BE AWARDED A PAY RAISE IN
ACCORDANCE WITH THE CITY PAY PLAN, KMC 23.55.
(B) APPROVAL OF INCREMENT PAY RAISES ARE VESTED IN THE CITY MANAGER.]
Section 17. Amendment of Section 23.30.050 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.30.050 –Business hours and hours of work, is hereby amended as
follows:
23.30.050 Business [H]Hours and [H]Hours of [W]Work.
(a) The hours during which City offices and departments shall normally be open for
business shall be 8:00 a.m. to 5:00 p.m., [PUBLIC WORKS DEPARTMENTS SHALL BE
8:00 A.M. TO 4:30 P.M., EXCEPT SATURDAYS AND SUNDAYS, HOLIDAYS, AND
FURTHER EXCEPTING] Police and Fire [WHICH] shall be open for business twenty-four
(24) hours a day. The Library, Senior Center, Public Works, and Animal Control operations
shall be open for business as authorized by the City Manager.
(b) Public Safety employees, not including administrators, normal work week is:
(1) Police and Communications—four (4) shifts of ten (10) hours per week, two
thousand eighty (2,080) hours annually. When working this shift, first and third days off
shall be treated as Saturdays and the middle day off (the second day) shall be treated
as a Sunday for purposes of paying overtime;
(2) Employees performing fire protection activities as defined by the Fair Labor
Standards Act (FLSA) may work any FLSA approved “7(k) Work Period” approved by
the City Manager.
(c) Sewer Treatment Plant employees work a forty (40) hour week on a shift basis that
allows at least one (1) employee to be at the plant on a given day. When scheduled days off
are two (2) consecutive calendar days, the first day off shall be treated as a Saturday and
the second day off shall be treated as a Sunday for purposes of paying overtime.
(d) All other employees’ normal work week is forty (40) hours, two thousand eighty (2,080)
hours annually. Standard work day is midnight to midnight succeeding. Standard work week
is midnight Sunday to midnight Sunday succeeding. Operating hours may be adjusted on
timely notice.
[(E) SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND
UNCLASSIFIED SERVICES CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF
THE FAIR LABOR STANDARDS ACT SHALL NOT BE BOUND TO A WORK WEEK OF
ANY SET NUMBER OF HOURS. THE INDIVIDUALS IN THESE POSITIONS ARE
EXPECTED TO WORK AS MANY HOURS AS THE RESPONSIBILITIES OF THEIR
POSITIONS REQUIRE. THESE INDIVIDUALS ARE EXPECTED, HOWEVER, TO
SUBSTANTIALLY CONFORM TO THE NORMAL WORK WEEK AS DESCRIBED IN
SUBSECTION (D).]
Section 18. Amendment of Section 23.30.060 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.30.060 –Attendance, is hereby amended as follows:
24
Ordinance No. 3018-2018
Page 10 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
23.30.060 Attendance.
(a) Employees shall be in attendance at their work in accordance with the rules regarding
hours of work, holidays, and leaves of absence.
(b) An employee shall not be absent [HIM OR HERSELF] from work for any reason without
prior approval from his or her supervisor. When prior approval is not obtained, an employee,
who for any reason fails to report to work, shall make a sincere effort to notify his or her
supervisor of his or her reason for being absent. If the absence continues beyond the first
day, the employee shall notify the supervisor on a daily basis unless other arrangements
have been made with the supervisor.
(c) Departments shall maintain records of employees’ attendance.
(d) Any unauthorized absence of any employee from duty shall be deemed to be an
absence without pay and may be cause for disciplinary action.
Section 19. Amendment of Section 23.30.070 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.30.070 –Personnel records, is hereby amended as follows:
23.30.070 Personnel [R]Records.
(a) The City Manager shall cause a service or personnel record to be maintained for each
employee in the Classified and Department Head service of the City of Kenai.
(b) The personnel record shall show the employee’s name, title of position held, the
department to which assigned, compensation, change in employment status, training
received, and such other information as may be considered pertinent.
(c) A personnel action form shall be used as the single document to initiate and update
personnel records.
(d) Employee personnel records shall be considered confidential and shall be accessible
only to the following:
(1) The employee concerned;
(2) Selected City officials authorized by the City Manager.
(e) Department personnel files should not be developed or maintained, except as working
records; i.e., accumulating data for evaluation reports. Departmental personnel records are
therefore unofficial and have no standing.
Section 20. Amendment of Section 23.30.110 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.30.110 –Travel expense, is hereby amended as follows:
23.30.110 Travel [E]Expense.
When employees are required to travel outside the City on City business, reimbursement,
subject to advances received, for expenditures incurred shall be determined as follows:
(a) Prior to traveling outside the City, the employee shall obtain permission for the trip and
the mode of travel from the department head.
(b) Travel on official business outside the City by one (1) individual shall be via public
carrier or City-owned vehicle whenever practical. If, for extenuating circumstances, the
employee is authorized to use a private vehicle, total mileage shall be paid at the standard
IRS mileage rate. This rate includes all travel, insurance and fuel.
(c) [THOSE]Classified and Department Head Service employees who [HABITUALLY]often
use their privately-owned vehicle for City business shall be reimbursed thirty dollars ($30.00)
per month, subject to authorization by the City Manager.
(d) The authorized per diem rates are fifty dollars ($50.00) per full twenty-four (24) hour
day, plus lodging expenses. Part days will be reimbursed for actual costs incurred, up to fifty
dollars ($50.00) per day. Claims for lodging expenses will be supported by receipts.
25
Ordinance No. 3018-2018
Page 11 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
Section 21. Amendment of Section 23.30.120 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.30.120 –Moving expense for new employees, is hereby amended as
follows:
23.30.120 Moving [E]Expense for [N]New [E]Employees.
(a) [WHENEVER A PROFESSIONAL OR TECHNICALLY TRAINED PERSON CHANGES
HIS OR HER PLACE OF RESIDENCE MORE THAN FIFTY (50) MILES, FOR THE
PURPOSE OF ACCEPTING EMPLOYMENT WITH THE CITY, SUCH A PERSON MAY BE
REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES UNDER THE FOLLOWING
CONDITIONS:] At the City Manager’s discretion moving expenses for new employees may
be reimbursed for actual and necessary expenses under the following conditions:
(1) The employee must be appointed to a position or a class for which the City
Manager certifies that such expenditure is necessary to recruit qualified employees and
funded by the Council.
(2) The maximum reimbursable shall be subject to negotiation at the time of an offer
of acceptance of appointment.
[(3) TO BE ELIGIBLE FOR THE TOTAL ALLOWANCE FOR AN EMPLOYEE WHO
IS THE HEAD OF A HOUSEHOLD, HIS OR HER DEPENDENTS MUST ACCOMPANY
HIM OR HER OR JOIN HIM OR HER WITHIN ONE (1) YEAR OF THE DATE OF HIS
OR HER APPOINTMENT.]
[4](3) New employees who are assisted with their moving expenses shall be required
to sign a Transportation Agreement prior to employment. The Transportation
Agreement stipulates that the employee will reimburse the City for all or part of such
expenditures in the event of voluntarily leaving City service within a period of two [(2)]
years according to the following schedule:
100%—Less than six (6) months.
75%—Six (6) months, but less than twelve (12) months.
50%—Twelve (12) months, but less than eighteen (18) months.
25%—Eighteen (18) months, but less than twenty-four (24) months.
0%—Two (2) years and over.
(b) New employees may not be given an advance against moving expenses without prior
written approval of the City Manager.
Section 22. Amendment of Section 23.30.140 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.30.140 –Relatives in city service, is hereby amended as follows:
23.30.140 Relatives in [C]City [S]Service.
(a) Two (2) members of an immediate family (spouse, children, brother, sister, in-laws or
parents) shall not be employed under the same immediate supervisor. Neither shall two (2)
members of an immediate family be employed at the same time regardless of the
administrative department, if such employment will result in an employee supervising a
member of his or her immediate family. This section shall not be construed to prohibit
employment by the City of relatives of City Council members.
(b) The provisions of this section shall apply to promotions, demotions, transfers, reinstate-
ments, and new appointments.
[(C) COHABITATION BY ADULTS OF THE OPPOSITE SEX PRESUMES A FAMILY
RELATIONSHIP AND SHALL BE CONSTRUED AS SUCH.]
26
Ordinance No. 3018-2018
Page 12 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
Section 23. Amendment of Section 23.35.020 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.35.020 –Causes for warning, suspension or discipline, is hereby
amended as follows:
23.35.020 Causes for [W]Warning, [S]Suspension, or [D]Dismissal.
(a) When an employee[’s] in the Classified Service demonstrates conduct that falls below
desirable standards, he or she may be subject to disciplinary action.
(b) General reasons for which an employee may be disciplined include:
(1) Drinking intoxicating beverages on the job or arriving on the job under the
influence of intoxicating beverages.
(2) Use, consumption, or possession of marijuana (including every compound,
manufacture, derivative, mixture, or preparation of the plant, its seeds or its resin,
including marijuana concentrate), on the job or arriving on the job impaired by the same,
unless the employee has a medical prescription for marijuana from a licensed medical
practitioner as a part of a medical treatment and can perform work unimpaired.
(3) Illegal use, consumption or possession of any controlled or illegal substance on
the job or arriving on the job impaired by the same.
(4) Ingestion, of any prescription or over the counter medication in amounts beyond
the prescribed or recommended dosage on the job, or arriving on the job impaired by
the same. Employees shall notify their immediate supervisor when required to use
prescription medicine that they have been informed has the potential to impair job
performance.
(5) Violation of a lawful duty.
(6) Insubordination.
(7) Breach of discipline.
(8) Being absent from work without first notifying and securing permission from the
employee’s supervisors.
(9) Being habitually absent or tardy for any reason.
(10) Misconduct.
(11) Conviction of a felony or a misdemeanor involving moral turpitude.
(12) Using religious, political, or fraternal influence.
(13) Accepting fees, gifts, or other valuable things in the return for performance of the
employee’s official duties for the City.
(14) Inability to perform the assigned job.
(15) Political activity as restricted by the Charter.
(16) Failure to follow the City’s Drug, Alcohol, and Marijuana policy as set forth in the
City of Kenai Employee Handbook.
(17) Knowingly or negligently failing to follow Federal and State occupational safety
and health regulations and City law and policy regarding the same.
Section 24. Amendment of Section 23.35.030 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.35.030 –Forms of disciplinary action, is hereby amended as follows:
23.35.030 Forms of [D]Disciplinary [A]Action.
(a) Disciplinary action for employees in the classified service ranges from oral or written
reprimands to suspension, demotion, and finally dismissal from the City service, and
depends on the severity of the offense as well as the number and the frequency of previous
acts of misconduct.
(b) It shall be the duty of all City employees to comply with and to assist in carrying into
effect the provisions of the City’s personnel rules and regulations. No employee in the
27
Ordinance No. 3018-2018
Page 13 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
classified service shall be disciplined except for violation of established rules and regulations,
and such discipline shall be in accordance with procedures established by the personnel
rules and regulations.
(c) Every department head shall discuss improper or inadequate performance with the
employee in order to correct the deficiencies and to avoid the need to exercise disciplinary
action. Where appropriate, disciplinary action shall be of increasing severity.
(d) A written notice shall be given each employee in the classified service for each written
disciplinary action stating the reasons for the disciplinary action and the date it shall take
effect. The notice shall be given to the employee at the time such action is taken. A copy of
the notice signed by the employee shall be placed in the employee’s personnel file and shall
serve as prima facie evidence of delivery.
(e) All regular employees in the classified service shall have the right to appeal disciplinary
action taken against them within five (5) working days after receipt of notice by employee of
the disciplinary action. Appeals shall be made as grievances in accordance with the
provisions of KMC 23.35.040 except that appeals from suspension, demotion, or dismissal
shall be made directly to a Personnel Board selected from the Arbitration Panel provided in
KMC 23.35.032 by filing such appeal in writing with the City Clerk, setting forth the
background, the disciplinary action, and the reasons why the disciplinary action is felt to be
unjust.
Section 25. Amendment of Section 23.35.032 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.35.032 –Arbitration panel, is hereby amended as follows:
23.35.032 Arbitration [P]Panel.
(a) There is hereby established an Arbitration Panel consisting of twelve (12) members
who shall be chosen by the City Council from nominees made by City employees and by
members of the City Council.
(b) A member of the Arbitration Panel must be a resident of the City of Kenai and must not
hold any other office or position in the government of the City of Kenai.
(c) Members of the panel shall serve for indefinite terms until termination by the Council,
resignation by the member, death, move from the City of Kenai, election, or appointment as
an officer or employee of the City of Kenai, or incapacity of the member.
(d) By adoption of the ordinance codified in this chapter, the city hereby waives any claim
or cause of action it might have against any member of the Arbitration Panel based on his or
her service thereon or on a Personnel Board. Any employee in the classified service, by filing
an appeal under the provisions of this chapter, likewise waives any claim or cause of action
such employee might have against any member of the Arbitration Panel based on his or her
service thereon or on a Personnel Board, and if requested such employee will execute and
file a formal waiver at time of filing appeal.
Section 26. Amendment of Section 23.35.034 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.35.034 –Procedures on Appeal, is hereby amended as follows:
23.35.034 Procedures on [A]Appeal.
(a) Within five (5) working days after the filing of a written appeal with the City Clerk, the
City Manager or the designee of the City Manager shall file with the City Clerk an answer in
writing to the appeal setting forth any facts which might be in dispute in the appeal, and
setting forth the reasons why the actions are believed to be justified and the City Manager
or his or her designee shall serve a copy of the answer on the employee in person or by
ordinary mail to employee’s home address.
28
Ordinance No. 3018-2018
Page 14 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
(b) Promptly after the appeal is filed, the City Clerk shall deliver a copy of the appeal to the
City Manager.
(c) The members of the Arbitration Panel shall be listed in alphabetical order, and will be
called in rotation. Any member passed over because of illness or absence, or disqualified by
an appealing employee in the classified service or the administration, shall be treated as
though he or she has served on the Personnel Board and will not be called again until his or
her name comes up in the normal rotation. As soon as an appeal is filed with the City Clerk,
the City Clerk will make contact and determine the next five (5) members of the panel due
and available for service during the following three (3) weeks, and shall notify the appealing
employee of the five (5) members due for service. The appealing employee will advise the
City Clerk within two (2) working days which member the employee wishes deleted from the
list, and the City Clerk will then notify the City Manager or his or her designee of the four (4)
remaining members due for service. The City Manager or his or her designee will advise the
Clerk within one (1) working day of the name of the member the administration wishes to
delete from the list. Thereafter, the Clerk will notify the two (2) members of their
disqualification and the other three (3) members as to being chosen for service and will
determine a date, time, and place when all three members may assemble for hearing, and
will then notify the appealing employee in the classified service and the City Manager or
designee of such date, time, and place of hearing.
(d) At the time of hearing, the employee in the classified service shall present any written
evidence, oral testimony, or witnesses that he or she desires, and thereafter the City
Manager or designee shall present evidence, oral testimony, or witnesses as he or she
deems fit, following which the parties may continue to present rebuttal testimony alternately
until neither side has anything further to present.
(e) After completion of presentation of testimony, the appealing employee in the classified
service may make any statement he or she desires by way of argument, which may be
answered by the City Manager or designee, and the appealing employee shall then have a
final closing argument if he or she so desires.
(f) If any member of the Personnel Board feels it necessary or desirable, he or she may
call additional witnesses or call for presentation of additional testimony, adjourning the
hearing to a future time for such presentation if necessary.
(g) After presentation of all evidence and arguments, the Personnel Board shall go into
executive session to make a determination of the appeal, and the Personnel Board shall
make written findings of fact and conclusions as to the justness of the disciplinary action.
(h) There shall be no formal restrictions on the kind of or form of evidence presented so
long as it is pertinent to the appeal and is not unduly repetitive, but the Personnel Board by
majority vote may limit repetitive evidence and may restrict evidence to matters pertinent to
the hearing and to evidence which they would find credible.
(i) The Personnel Board has power to uphold the disciplinary action, to set aside the
disciplinary action completely restoring the appealing employee in the classified service to
his or her former position and to any and all pay which may have been lost because of the
disciplinary action, or if the Personnel Board feels it necessary in the interest of justice that
some disciplinary action be taken but that the particular disciplinary action was too extreme,
it shall determine what the proper disciplinary action should be.
(j) The decision of the Personnel Board may be made by a majority of the Board and shall
be final and binding on the employee and on the City.
(k) Copies of the appeal, the answer to the appeal, and the written decision of the
Personnel Board shall become a part of the personnel file of the appealing employee.
29
Ordinance No. 3018-2018
Page 15 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
Section 27. Amendment of Section 23.35.040 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.35.040 –Grievance procedure, is hereby amended as follows:
23.35.040 Grievance [P]Procedure.
(a) [THE]For employees in the classified service, the City shall promptly consider and
equitably adjust employee grievances relating to employment conditions and relationships.
Furthermore, the City desires to adjust the causes of grievances informally, both supervisors
and non-supervisory employees in the classified service are expected to resolve problems
as they arise.
(b) The following steps shall be followed in submitting and processing a grievance for
employees in the classified service:
(1) Step 1—The aggrieved employee in the classified service or group of employees
in the classified service shall orally present the grievance to the immediate supervisor
within five (5) working days of the occurrence, not including the date of presentation.
(2) Step 2—If the grievance is not settled in Step 1, it shall be prepared in detail, shall
be reduced to writing, shall be dated, shall be signed by the aggrieved employee in the
classified service or group of employees in the classified service, and shall be presented
to the department head within five (5) working days after the supervisor’s oral reply is
given, not including the day that the answer is given.
(3) Step 3—If the grievance is not settled in Step 2, the written grievance shall be
presented along with all pertinent correspondence, records, and information
accumulated to date to the City Manager within seven (7) working days after the
department head’s response is given, not including the day that the response is given.
The City Manager shall meet with the aggrieved employee or group of employees, the
immediate supervisor and the department head. The City Manager shall reply to the
grievance in writing within seven (7) working days of the date of presentation of the
written grievance. The decision of the City Manager shall be final and binding on the
employee or group of employees.
(c) If the grievance procedures are not initiated within the time limits established by this
section, the grievance shall be considered not to have existed.
(d) Any grievance not taken to the next step of the grievance procedure shall be considered
settled on the basis of the last reply made and received in accordance with the provisions of
this section.
(e) If the City fails to meet or answer any grievance within the time limits prescribed for
such action by this section, such grievance shall automatically advance to the next step. If
the City fails to meet or answer any grievance on the last step of the grievance procedure
within the time limits prescribed for such action by this section, it shall be deemed that the
City has considered the grievance to be in favor of the grievant and shall resolve the matter
accordingly.
(f) The time limits prescribed in this section for the initiation and completion of the steps of
the grievance procedure may be extended by mutual consent of the parties so involved.
Likewise, any step in the grievance procedure may be eliminated by mutual consent. Mutual
consent shall be indicated in writing and shall be signed by all parties involved. No employee
shall be disciplined or discriminated against in any way because of the employee’s proper
use of the grievance procedure.
Section 28. Amendment of Section 23.40.010 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.40.010 –General, is hereby amended as follows:
30
Ordinance No. 3018-2018
Page 16 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
23.40.010 General.
(a) All non-temporary, full-time,[AND] non-temporary part-time (fifteen (15) hours and over
per week) classified and Department Head Service employees are entitled to the following
benefits, except for medical and hospital insurance which shall be available to non-temporary
employees working no less than twenty-five (25) hours per week, as specified in this article.
(b) An employee hired under the State of Alaska’s Mature Alaskans Seeking Skills Training
(MASST) program shall receive only Social Security, Medicare (KMC 23.40.130), Workers
Compensation (KMC 23.40.110) and family leave (KMC 23.40.130) benefits. The other
benefits in KMC 23.40 shall not apply to persons hired under the MASST program. The
hourly wage paid a MASST employee shall be as set by the State of Alaska, but not less
than minimum wage.
(c) Seasonal employees are eligible to participate in the State Public Employees’
Retirement System.
Section 29. Amendment of Section 23.40.030 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.40.030 –Annual leave, is hereby amended as follows:
23.40.030 Annual [L]Leave.
(a) Annual leave is a combined vacation and sick leave.
(b) Accrual rate:
(1) Full-time [CLASSIFIED] employees except certain Fire Department employees:
7.3846 hours bi-weekly—first two (2) years of service.
8.3077 hours bi-weekly—three (3) through five (5) years of service.
9.2308 hours bi-weekly—six (6) through ten (10) years of service.
10.1538 hours bi-weekly—more than ten (10) years of service.
(2) Fire (7(k) work period):
10.3385 hours bi-weekly—first two (2) years of service.
11.6308 hours bi-weekly—three (3) through five (5) years of service.
12.9231 hours bi-weekly—six (6) through ten (10) years of service.
14.2154 hours bi-weekly—more than ten (10) years of service.
(c) Annual leave is charged on an hour-for-hour basis; i.e., normal work day of eight (8)
hours would be charged at eight (8) hours annual leave; twelve (12) hour work day, twelve
(12) hours annual leave; ten (10) hour work day, ten (10) hours annual leave; twenty-four
(24) hour work day, twenty-four (24) hours annual leave.
(d) Leave continues to accrue during the period of time an employee is on paid leave
except during periods of terminal leave (leave time after which the employee does not intend
to return to work). Leave does not accrue during periods of leave without pay.
(e) Accrued and unused leave may be carried over from one (1) year to the next for the
purpose of accumulating an annual leave account or reserve. The maximum leave hours
that may be accrued is six hundred forty (640) hours for classified, [AND] unclassified, and
Department Head service employees, and eight hundred ninety-six (896) hours for Fire
Department employees working a 7(k) work period.
(f) Annual leave may be used for any purpose desired by the employee. Incidental
absences for sickness as unplanned are not controllable. However, planned absences must
be coordinated with and approved by the appropriate department head.
(g) It is required that each employee use a minimum of eighty (80) hours of leave per
calendar year for employees working forty (40) hours per week, and one hundred twelve
(112) hours for employees working a 7(k) work period, and affect appropriate coordination
with the department head. If actual hours used are less than the minimum requirement, then
31
Ordinance No. 3018-2018
Page 17 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
the difference shall be deducted from available leave hours without any compensation to the
employee.
(h) Excess leave above the amount authorized for accrual (subsections (a) through (e))
existing on December 31st shall automatically be paid at the then existing rate for the
individual employee.
(i) Department heads shall schedule vacations for their respective employees with due
consideration for the desires of the employees and the work requirements facing the
department. Vacation schedules may be amended to allow the department to meet
emergency situations.
(j) In the event of significant illness or injury not covered by workers’ compensation, or
absence due to training or education an employee on exhausting annual leave may, with the
approval of the City Manager, borrow up to a six (6) month entitlement (i.e., thirteen (13) x
7.3846 hours) to avoid a no-pay status. In the event the person’s employment with the City
ends prior to the borrowed leave being repaid, the employee must reimburse the City for the
value of any leave not repaid. The City may deduct the value of any leave not repaid from
the employee’s final paycheck.
(k) Part-time employees working fifteen (15) hours a week or more shall accrue at the same
rate as a full-time employee except on a proportional basis as to hours.
(l) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND
EXEMPT SERVICES]Employees considered to be exempt from the provisions of the Fair
Labor Standards Act shall have annual leave charged on an eight (8) hour/whole day basis.
If any such employee is present for work during any portion of a day, that employee shall not
be charged annual leave for that day. Conversely, if any such employee is absent from her
or his normal place of work for an entire day (excluding Saturdays, Sundays, and holidays)
that employee will be charged eight (8) hours of annual leave for that day.
Section 30. Amendment of Section 23.40.040 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.40.040 –Terminal leave, is hereby amended as follows:
23.40.040 Terminal [L]Leave.
Upon separation during initial probation (first six (6) months for Police, Fire and
Communication), accrued annual leave shall not be granted nor paid to [THE] employee’s in the
classified service. In other separations, accrued leave shall be paid in a lump sum. The salary or
hourly rate to be used in computing the cash payment shall be the rate which is being received
by the employee on the date the resignation/separation is signed by the employee.
Section 31. Amendment of Section 23.40.060 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.40.060 –Leave of absence with pay, is hereby amended as follows:
23.40.060 Leave of [A]Absence with [P]Pay.
(a) Employees may request leave of absence with pay for:
(1) Witness or Jury Duty. When a City employee is called for jury duty or is
subpoenaed as a witness, he or she shall not suffer any loss of his or her regular City
compensation during such absence; however, he or she shall be required to transfer
any compensation he or she receives for the performance of such duty to the City. Time
not worked because of such duty shall not affect annual leave accrual.
(2) Military Leave. Employee’s shall be eligible for military leave or associated benefits
in compliance with State and Federal law. [AN EMPLOYEE WHO HAS COMPLETED
THE PROBATIONARY PERIOD AND WHO IS A MEMBER OF THE NATIONAL
GUARD OR RESERVE COMPONENT OF THE ARMED FORCES OF THE UNITED
32
Ordinance No. 3018-2018
Page 18 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
STATES OR OF THE UNITED STATES PUBLIC HEALTH SERVICE SHALL BE
ENTITLED, UPON APPLICATION, TO A LEAVE OF ABSENCE FROM CITY SERVICE
FOR ONE (1) PERIOD NOT EXCEEDING FIFTEEN (15) CONSECUTIVE DAYS IN
ANY ONE (1) CALENDAR YEAR. HOWEVER, BECAUSE POLICE, FIRE, AND
COMMUNICATIONS EMPLOYEES HAVE A TWELVE (12) MONTH PROBATIONARY
PERIOD RATHER THAN THE SIX (6) MONTH PROBATIONARY PERIOD FOR
OTHER CLASSIFIED EMPLOYEES, THEY SHALL BE ELIGIBLE FOR MILITARY
LEAVE AFTER SIX (6) MONTHS OF SERVICE. SUCH LEAVE SHALL BE GRANTED
WITHOUT LOSS OF TIME, PAY (DIFFERENCE BETWEEN REGULAR AND
MILITARY PAY INCLUDING COLA, BUT NOT INCLUDING OTHER REGULAR
ALLOWANCES), OR OTHER LEAVE, AND WITHOUT IMPAIRMENT OF MERIT
RATINGS OR OTHER RIGHTS OR BENEFITS TO WHICH HE OR SHE IS ENTITLED.
MILITARY LEAVE WITH PAY SHALL BE GRANTED ONLY WHEN AN EMPLOYEE
RECEIVES BONA FIDE ORDERS TO TEMPORARY ACTIVE OR TRAINING DUTY,
AND SHALL NOT BE PAID IF THE EMPLOYEE DOES NOT RETURN TO HIS OR
HER POSITION IMMEDIATELY FOLLOWING THE EXPIRATION OF THE PERIOD
FOR WHICH HE OR SHE WAS ORDERED TO DUTY.]
(3) Conferences, Conventions and Other Related City Business. Decisions
concerning attendance at conferences, conventions, or other functions pertaining to
City business at City expense shall be made by the department heads with the approval
of the City Manager. Permission shall be granted on the basis of an employee’s
participation in or the direct relationship of the function to the City. Members of
professional societies may be permitted to attend meetings of their society when such
attendance is considered to be in the best interest of the City.
(4) Death in the Immediate Family. Leave of absence with pay is provided to assist
an employee who must be absent from work as a result of a death in the immediate
family. The employee’s absence would be for funeral attendance, or to handle matters
arising due to the death of an immediate family member, that cannot practicably be
taken care of outside of regular business hours. Upon the City Manager’s approval,
employees shall be entitled to the following leave, which will not directly affect their
personal leave account: three (3) working days, up to twenty-four (24) hours maximum.
Section 32. Repeal of Section 23.40.150 of the Kenai Municipal Code: That Kenai Municipal
Code, Section 23.40.150 –Definitions, is hereby repealed as follows:
[23.40.150 DEFINITIONS.
IN KMC 23.40.130 THROUGH 23.40.140:
(A) “CHILD” MEANS AN INDIVIDUAL WHO IS:
(1) UNDER EIGHTEEN (18) YEARS OF AGE; OR
(2) EIGHTEEN (18) YEARS OF AGE OR OLDER AND INCAPABLE OF SELF-CARE
BECAUSE OF MENTAL OR PHYSICAL DISABILITY.
(B) “HEALTH CARE PROVIDER” MEANS: (1) A PHYSICIAN LICENSED UNDER AS
08.64, OR A DENTIST LICENSED UNDER AS 08.36, OR A PSYCHOLOGIST LICENSED
UNDER AS 08.86; OR (2) ANY OTHER PERSON DETERMINED BY THE SECRETARY OF
LABOR TO BE CAPABLE OF PROVIDING HEALTH CARE SERVICES.
(C) “LICENSED HEALTH CARE PROVIDER” MEANS A PHYSICIAN LICENSED UNDER
AS 08.64 OR A PSYCHOLOGIST LICENSED UNDER AS 08.86.
(D) “PARENT” MEANS A BIOLOGICAL OR ADOPTIVE PARENT, A PARENT-IN-LAW,
OR A STEP-PARENT.
33
Ordinance No. 3018-2018
Page 19 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
(E) “SERIOUS HEALTH CONDITION” MEANS AN ILLNESS, INJURY, IMPAIRMENT, OR
PHYSICAL OR MENTAL CONDITION THAT INVOLVES: (1) INPATIENT CARE IN A
HOSPITAL, HOSPICE, OR RESIDENTIAL HEALTH CARE FACILITY; OR (2) CONTINUING
TREATMENT OR CONTINUING SUPERVISION BY A HEALTH CARE PROVIDER.
(F) “SPOUSE” MEANS SOMEONE WITH WHOM THE EMPLOYEE HAS AN EXISTING
VALID MARRIAGE AS SET FORTH UNDER AS 25.05 AND SPECIFICALLY DOES NOT
INCLUDE AN UNMARRIED DOMESTIC PARTNER OF THE EMPLOYEE.
(G) “IMMEDIATE FAMILY” INCLUDES MOTHER, FATHER, SPOUSE, CHILDREN,
BROTHER, SISTER, MOTHER/FATHER-IN-LAW. THE CITY MANAGER MAY
DETERMINE “OTHER INDIVIDUALS” ARE IMMEDIATE FAMILY, PARENTS, CHILDREN,
SIBLINGS AND OTHERS INVOLVED IN THE SIGNIFICANT RAISING.]
Section 33. Amendment of Section 23.45.020 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.45.020 –Periods of Evaluation, is hereby amended as follows:
23.45.020 Periods of Evaluation.
Each employee [IN THE CLASSIFIED SERVICE] shall have his or her performance
evaluated at the following periods:
(a) End of Probationary Period. Each employee in the classified service shall be evaluated
thirty [(30)] days prior to the completion of his or her probationary period. The employee must
have an overall evaluation of at least “Meets Expectations” in order to become permanent
or, in the case of seasonal employees, be eligible for the next season’s employment.
(b) Annual. Each employee shall receive an annual performance evaluation thirty [(30)]
days prior to his or her anniversary date[.] and thirty days prior to the end of each season for
seasonal employees.
(c) Time of Separation. Each employee shall be evaluated at the time of separation and
such record shall become part of his or her permanent personnel file.
Section 34. Amendment of Section 23.45.030 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.45.030 –Performance evaluators, is hereby amended as follows:
23.45.030 Performance [E]Evaluators.
(a) Rating Officer. The rating officer shall normally be the employee’s immediate
supervisor. The rating officer shall be responsible for completing a performance evaluation
report at the time prescribed for each employee under his or her supervision.
(b) Reviewing Officer. The reviewing officer shall normally be the rating officer’s immediate
supervisor or department head. The reviewing officer shall review the performance
evaluation report completed by each rating officer under his or her jurisdiction before the
report is discussed with the employee. The reviewing officer shall consider the performance
evaluations completed by the rating officer in evaluating the rating officer’s performance.
(c) Department Heads shall be evaluated by the City Manager.
Section 35. Amendment of Section 23.45.040 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.45.040 –Review of performance reports, is hereby amended as
follows:
23.45.040 Review of [P]Performance [R]Reports for Employees in the Classified Service.
The rating officer shall discuss the performance evaluation report with the employee in the
classified service before the report is made part of the employee’s permanent record. If the rating
officer plans to recommend the denial of an in-grade pay increment or recommend an
34
Ordinance No. 3018-2018
Page 20 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
extraordinary increment, the report must be discussed with the reviewing officer and the City
Manager prior to review with the employee.
Section 36. Amendment of Section 23.45.050 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.45.050 –Unsatisfactory evaluation, is hereby amended as follows:
23.45.050 Unsatisfactory [E]Evaluation for Employees in the Classified Service.
Employees in the classified service who receive an overall rating of “Unsatisfactory” or
“Needs Improvement” on their annual evaluation shall not be eligible to be advanced a step
increment at appropriate annual, biennial or quadrennial anniversary dates. Employees in the
classified service who receive two [(2)] consecutive overall ratings of “unsatisfactory” shall be
subject to dismissal.
Section 37. Amendment of Section 23.45.060 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.45.060 –Performance evaluation appeal procedure, is hereby
amended as follows:
23.45.060 Performance [E]Evaluation [A]Appeal [P]Procedure for Employees in the
Classified Service.
[EMPLOYEES’ P]Performance evaluation reports for employees in the classified service
shall not be subject to the standard grievance procedure. Employees in the classified service shall
have the right to appeal their evaluation in accordance with the following procedure:
(a) Step 1. If, after a review of his or her performance evaluation report with the rating
officer, the employee feels that the report is unfair, he or she may request a meeting with the
reviewing officer by checking the appropriate section on the report. The rating officer will then
immediately forward the report to the reviewing officer who will arrange to meet with the
employee within five (5) working days after receiving the report. The reviewing officer will
then forward a decision in writing to the employee within five (5) working days after the date
of their meeting.
(b) Step 2. In the event that the employee is dissatisfied with the decision of the reviewing
officer, he or she may, within five (5) working days of receipt of the decision, appeal his or
her performance evaluation report, in writing, to the City Manager. The City Manager shall,
within five (5) working days, meet and discuss the report with the employee. The City
Manager will, in writing, make a decision within ten (10) working days from the date of their
meeting. The decision of the City Manager will be final.
Section 38. Amendment of Section 23.50.010 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.50.010 –Employee classification, is hereby amended as follows:
23.50.010 Employee [C]Classification.
City employees shall be classified by Class, Title, and Pay Range as follows:
CLASS CODE CLASS TITLE RANGE
(a) SUPERVISORY AND PROFESSIONAL
101 City Manager NG
102 City Attorney NG
103 City Clerk NG
104 Finance Director* 24
35
Ordinance No. 3018-2018
Page 21 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
CLASS CODE CLASS TITLE RANGE
105 Public Works Director* 23
106 Police Chief* 23
107 Fire Chief* 22
112 Airport Manager* 20
117 City Planner 16
118 Information Technology (IT) Manager 18
119 Human Resource Specialist/Assistant to City
Manager
15
120 Library Director* 18
121 Senior Center Director* 18
122 Parks and Recreation Director* 17
123 Human Resources Officer 16
(b) ADMINISTRATIVE SUPPORT
203 Administrative Assistant I 8
204 Accounting Technician I 10
205 Accounting Technician II 11
206 Accountant 16
210 Administrative Assistant II 9
211 Administrative Assistant III 10
214 Library Assistant 6
218 Library Aide 2.5
219 Data Entry Clerk 1.1
(c) PUBLIC SAFETY
302 Fire Fighter 13
303 Police Lieutenant 20
304 Police Sergeant 18
305 Police Officer 16
306 Public Safety Dispatcher 9
307 Fire Engineer 15
311 Fire Captain 16
312 Fire Marshal 17
313 Communications Supervisor 12
314 Police Trainee 16/21
315 Battalion Chief/Safety Officer 17
316 Chief Animal Control Officer 11
317 Animal Control Officer 9
(d) PUBLIC WORKS
401 Building Official 15
402 Shop Foreman 16
403 Street Foreman 16
404 Sewer Treatment Plant Operator 13
405 Water and Sewer Operator 13
36
Ordinance No. 3018-2018
Page 22 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
CLASS CODE CLASS TITLE RANGE
407 Equipment Operator 11
408 Shop Mechanic 14
409 Equipment Lead Operator 14
410 Water and Sewer Foreman 16
412 Building Maintenance Technician 12
413 Sewer Treatment Plant Lead Operator 14
414 Sewer Treatment Plant Foreman 16
417 Airport Operations Specialist 11
418 Airport Operations Supervisor 15
419 Building Maintenance Lead Technician 13
420 Water and Sewer Lead Operator 14
(e) GENERAL SERVICES
504 Parks, Beautification and Recreation Operator 9
505 Parks, Beautification and Recreation Laborer 2.4
506 Cook 2.4
507 Activities/Volunteer Coordinator 2.4
508 Meals/Driver 2.4
509 Kitchen Assistant 2.2
510 Outreach Worker 1.1
511 Janitor 2.4
512 Driver 1
* Department Head[S] Service
1 For work performed after February 21, 2009, while attending the Alaska Public Safety
Academy in Sitka, a police trainee shall be a paid at a Range 2, Step F. Because of a fluctuating
and unpredictable training schedule, he or she shall be considered to work twelve (12) hours
per day from Monday through Saturday and eleven (11) hours on Sunday, or the actual number
of hours worked, whichever is greater. The normal work schedule at the academy shall be five
(5) eight (8) hour shifts from Monday to Friday rather than four (4) ten (10) hour shifts as stated
in KMC 23.50.050(b)(l).
Section 39. Enactment of Section 23.55.015 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.55.015 –Department Head Service Salaries, is hereby enacted as
follows:
23.55.015 – Department Head Service Salaries.
Salaries of employees in the Department Head Service shall be set by the City Manager
within the range approved by the City Council as approved through the budget process.
Section 40. Amendment of Section 23.55.020 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.55.020 –Compensation Structure by Grade, is hereby amended as
follows:
23.55.020 Compensation Structure by Grade for Employees in the Classified Service.
(a) Compensation structure by grade for employees in the classified service is hereby
established in accordance with the table that is appended to this title and which may be
37
Ordinance No. 3018-2018
Page 23 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
amended, modified, or replaced by ordinance, in which case a copy of the amended,
modified, or replacement table shall be substituted for the prior table and placed in the code
at the end of this title.
(b) On completion of the probationary period, each permanent full-time employee in the
classified service, except seasonal employees, shall be advanced one [(1)] step. At
succeeding anniversary dates, subject to evaluation, employees in the classified service may
be advanced a step increment subject to City Manager approval. The time period normally
between steps B to C to D to E to F is one [(1)] year. The time normally between Steps F to
AA to BB to CC is two [(2)] years.
(c) On completion of the probationary period, each permanent part-time employee in the
classified service and seasonal employee shall be advanced one [(1)] step. At appropriate
biennial or quadrennial anniversary dates thereafter, subject to the employee’s most recent
annual evaluation being “Meets Expectations” or better, the employee, including seasonal
employees, may be advanced a step increment. The time period normally between steps B
to C to D to E to F is two [(2)] years. The time period normally between steps F to AA to BB
to CC is four [(4)] years.
Section 41. Amendment of Section 23.55.050 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.55.050 –Hourly Rates, is hereby amended as follows:
23.55.50 Hourly Rates.
(a) Hourly rates for employees in the classified service not exempted from minimum wage
and overtime provisions of the Fair Labor Standards Act (with various experience, skills, and
responsibilities) are hereby established in accordance with the table that is appended to this
title and which may be amended, modified, or replaced by ordinance, in which case a copy
of the amended, modified, or replacement table shall be substituted for the prior table and
placed in the Code at the end of this title.
Section 42. Amendment of Section 23.55.060 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.55.060 –Stand-by pay, is hereby amended as follows:
23.55.060 Stand-by [P]Pay.
(a) Where employees in the classified service are placed on a stand-by status, they shall
be entitled to a 5% rate of pay computed against Step A of the pay range of the employee
for each hour in stand-by status.
(b) To be eligible for stand-by pay, an employee in the classified service must formally be
placed on stand-by status, with the approval of the City Manager, and the proper
documentation indicating such approval placed in the employee’s personnel records. An
employee in stand-by status must be available for call-outs, must be in a location whereby
the responsible City personnel can communicate with him or her, and comply with any other
requirements of the approved stand-by pay.
Section 43. Amendment of Section 23.55.070 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.55.070 –Call-Out pay, is hereby amended as follows:
23.55.070 Call-out [P]Pay.
When employees in the classified service are called out to work outside of normal working
hours, they shall be paid a minimum of two [(2)] hours pay at overtime rates. Overtime hours
worked immediately prior to, or after, normal working hours will not be considered as a “call-out.”
38
Ordinance No. 3018-2018
Page 24 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
Section 44. Amendment of Section 23.55.080 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 23.55.080 –Longevity pay, is hereby amended as follows:
23.55.080 Longevity [P]Pay for Employees in the Classified Service.
All regular employees in the classified service who have received an overall rating of “Meets
Expectations” or better in their last performance evaluation and who have been at Step CC for a
period of at least two (2) years as of July 31st shall be paid a longevity bonus of two percent (2%)
of his or her annual pay rate (i.e., excluding overtime). The longevity pay shall be paid just once
a year on the August payroll, except that the longevity bonus in 2008 shall be paid after the
effective date of the ordinance codified in this section but prior to the end of the calendar year
2008. Notwithstanding the above, any employee in the classified service who has received a
range increase or a noncost of living pay increase within their current pay range within the twelve
(12) months prior to July 31st is not eligible for a longevity pay bonus.
Section 45. That the operating budget pay schedule as appended in KMC Chapter 23.55 for
all employees excluding those engaged in fire protection activities is amended to read as follows:
FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR ALL CLASSIFIED AND
DEPARTMENT HEAD SERVICE EMPLOYEES EXCLUDING THOSE ENGAGED IN FIRE
PROTECTION ACTIVITIES
Range A B C D E F AA BB CC
Step
1 10.27 10.53 10.78 11.04 11.30 11.55 11.81 12.07 12.32
1.1 10.78 11.05 11.32 11.59 11.86 12.13 12.40 12.67 12.94
2 11.47 11.76 12.04 12.33 12.62 12.90 13.19 13.48 13.76
2.1 12.08 12.38 12.68 12.99 13.29 13.59 13.89 14.19 14.50
2.2 12.76 13.08 13.40 13.72 14.04 14.36 14.67 14.99 15.31
2.3 13.41 13.75 14.08 14.42 14.75 15.09 15.42 15.76 16.09
2.4 15.66 16.05 16.44 16.83 17.23 17.62 18.01 18.40 18.79
2.5 17.74 18.18 18.63 19.07 19.51 19.96 20.40 20.84 21.29
3 17.85 18.30 18.74 19.19 19.64 20.08 20.53 20.97 21.42
4 18.75 19.22 19.69 20.16 20.63 21.09 21.56 22.03 22.50
5 19.69 20.18 20.67 21.17 21.66 22.15 22.64 23.14 23.63
6 20.66 21.18 21.69 22.21 22.73 23.24 23.76 24.28 24.79
7 21.71 22.25 22.80 23.34 23.88 24.42 24.97 25.51 26.05
8 22.80 23.37 23.94 24.51 25.08 25.65 26.22 26.79 27.36
9 23.94 24.54 25.14 25.74 26.33 26.93 27.53 28.13 28.73
10 25.12 25.75 26.38 27.00 27.63 28.26 28.89 29.52 30.14
11 26.38 27.04 27.70 28.36 29.02 29.68 30.34 31.00 31.66
12 27.72 28.41 29.11 29.80 30.49 31.19 31.88 32.57 33.26
13 29.08 29.81 30.53 31.26 31.99 32.72 33.44 34.17 34.90
14 30.55 31.31 32.08 32.84 33.61 34.37 35.13 35.90 36.66
15 32.07 32.87 33.67 34.48 35.28 36.08 36.88 37.68 38.48
16 33.67 34.51 35.35 36.20 37.04 37.88 38.72 39.56 40.40
17 35.35 36.23 37.12 38.00+ 38.89 39.77 40.65 41.54 42.42
18 37.12 38.05 38.98 39.90 40.83 41.76 42.69 43.62 44.54
19 38.97 39.94 40.92 41.89 42.87 43.84 44.82 45.79 46.76
20 40.93 41.95 42.98 44.00 45.02 46.05 47.07 48.09 49.12
21 42.99 44.06 45.14 46.21 47.29 48.36 49.44 50.51 51.59
39
Ordinance No. 3018-2018
Page 25 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
22 45.11 46.24 47.37 48.49 49.62 50.75 51.88 53.00 54.13
23 47.38 48.56 49.75 50.93 52.12 53.30 54.49 55.67 56.86
24 49.81 51.06 52.30 53.55 54.79 56.04 57.28 58.53 59.77
FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR CLASSIFIED EMPLOYEES
ENGAGED IN FIRE PROTECTION ACTIVITIES
Range A B C D E F AA BB CC
Step
13 20.77 21.29 21.81 22.33 22.85 23.37 23.89 24.40 24.92
14 21.82 22.37 22.91 23.46 24.00 24.55 25.09 25.64 26.18
15 22.91 23.48 24.06 24.63 25.20 25.77 26.35 26.92 27.49
16 24.06 24.66 25.26 25.86 26.47 27.07 27.67 28.27 28.87
17 25.26 25.89 26.52 27.15 27.79 28.42 29.05 29.68 30.31
FISCAL YEAR 2018 OPERATING BUDGET SALARY SCHEDULE FOR ALL DEPARTMENT
HEAD SERVICE EMPLOYEES
18 $77,209 – 101,907
19 $79,185 – 106,987
20 $85,134 – 112,387
21 $89,419 – 118,037
22 $93,829 – 123,849
23 $98,550 – 130,096
24 $103,604 – 136 754
Section 46. Application: The provisions of this Ordinance will only apply to Department Heads
who have been hired by the City and completed a probationary period by June 1, 2018.
Department Heads who completed their probationary period before June 1, 2018, may individually
chose to enter the Department Head Service and have the Ordinance apply to their employment
by written notice to the City Manager.
Section 47. 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 48. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
30 days after adoption.
40
Ordinance No. 3018-2018
Page 26 of 26
New Text Underlined; [DELETED TEXT BRACKETED]
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, City Clerk
Introduced: April 18, 2018
Enacted: May 2, 2018
Effective: June 1, 2018
41
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Tim Navarre, Vice Mayor and Council Member Jim Glendening
DATE: April 11, 2018
SUBJECT: Ordinance No. 3018-2018 – Amending KMC Title 23 Creating a
Department Head Service Class of Employees
______________________________________________________________________
Department Heads report directly to the City Manager and are responsible for the management
of their respective departments. Attracting and retaining highly qualified individuals for these
positions can be difficult, particularly with current restrictions contained in the Kenai Municipal
Code.
KMC 23.25.040(b) limits the salary of a newly hired employee to Level D of the City’s Salary
Schedule. In cases where a prospective employee is highly qualified or where a lateral move
from another agency or business requires a higher salary than is afforded by a Level D salary,
the City is unable to attract these individuals effectively. Additionally, the City Manager does not
have the ability to adjust salaries for our most critical and highest performing existing employees
who might leave the City for similar positions at neighboring agencies or businesses that have
the ability to compensate at higher levels.
This ordinance addresses both of these concerns by establishing a new class of employee
defined as Department Head Service. These employees would be assigned a salary range for
their position as opposed to their salaries being dictated by the City’s Salary Schedule. The top
end of the salary range for each employee in the Department Head Service would be set at
110% of the top step of the same range in the City’s Salary Schedule for employees in the
Classified Service. The City Manager would have the authority to establish the initial salary
upon hire anywhere within the respective range for the position. In addition, the City Manager
could adjust an existing employee’s salary within the range for that position through the annual
budget process based on performance or to maintain competitive salaries for the retention of
highly qualified employees.
Department Head Service employees would be at-will employees that could be suspended or
dismissed without cause subject to review by the City Attorney. However, existing employees
42
Page 2 of 2
Ordinance 3018-2018
who would fall within the Department Head Service will be grandfathered in the Classified
Service unless the employee chooses to opt into the Department Head Service.
Your consideration is appreciated.
43
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Scott Bloom, City Attorney
DATE: April 12, 2018
SUBJECT: Sectional Analysis of Ordinance No. 3018-2018
____________________________________________________________________________
This memorandum provides a sectional analysis of the Kenai Municipal Code changes proposed
by Ordinance No. 3118-2018. Following the sectional analysis is KMC Title 23 in its entirety with
the proposed changes shown.
Section 1. Sectional Analysis:
1. 23.05.060 Tenure.
Tenure of employees in the classified service [COVERED BY THIS TITLE] shall be subject to
good behavior, satisfactory performance of work, necessity for the performance of work, and
the availability of funds. This change is to clarify that KMC 23.05.060 does not apply to at-will
employees whose tenure might not be subject to satisfactory work performance etc.
2. 23.05.070 Definitions.
As used in Title 23, the following terms shall have the meanings indicated:
(a) Unclassified Service. The unclassified service shall include all elected officials, City
Manager, City Attorney, City Clerk, seasonal and temporary employees. Members of boards,
committees, commissions, volunteers, contractors, and consultants are not employees.
(b) Classified Service. All paid employees not in the unclassified [SERVICE] or Department
Head Service. This amendment is needed to reflect that the classified service does not
include the newly created Department Head Service
(c) Department Head Service. The Department Head Service shall include employees who
are directly responsible to the City Manager for the administration of one or more
departments. This is the new definition of Department Head Service.
[(C)](d) Full-Time. Employees scheduled to work forty (40) hours per week (except certain
Fire Department employees who work an average of fifty-six (56) hours per week) are
considered full time.
44
Page 2 of 57
Ordinance No. 3018-2018
[(D)](e) Part-Time. Employees scheduled to work less than forty (40) hours per week.
[(E)](f) Regular. Employees who have completed the probationary period. They may be
assigned to work a full-time or part-time schedule.
[(F)](g) Seasonal. Employees who perform seasonal work for a pre-established period of
not more than six (6) months during a twelve (12)-month period. Seasonal Employees may
be assigned a full time or part-time schedule and are eligible for Public Employee Retirement
Benefits but are ineligible for other benefits and holiday pay. Seasonal Employees who have
completed the probationary period may return to the seasonal position each season subject
to performance evaluations, general conduct and discipline, personnel rules and policies of
the City, layoff, reorganization and other business needs of the City.
[(G)](h) Temporary. Employees who are hired for a pre-established period, usually during
peak workloads or for vacation relief and for not more than six (6) months. They may be as-
signed to work a full-time or part-time schedule. They are ineligible for benefits and holiday
pay.
[(H)](i) Probationary Period. Normally six (6) months, except for Police, Communications
and Fire, which is normally twelve (12) months. This period can be extended up to, but no
longer than, twelve (12) months and eighteen (18) months, respectively.
[(I)](j) Department. The smallest functional budgetary unit of the City government
established by the City Council.
[(J) DEPARTMENT HEAD. A CLASSIFIED EMPLOYEE DIRECTLY RESPONSIBLE TO
THE CITY MANAGER FOR THE ADMINISTRATION OF ONE (1) OR MORE
DEPARTMENTS.] This definition is no longer needed based on the new definition of
Department Head Service above, and later descriptions.
(k) Promotion. An advancement of an employee from one (1) job classification to a higher
job classification within the same department.
(l) Transfer. The movement of an employee from one (1) department to another
department, regardless of job classification.
(m) [GENERAL GOVERNMENT EMPLOYEE. A CITY EMPLOYEE OTHER THAN A
PUBLIC SAFETY EMPLOYEE. “General government employee” is not a term used or
needed in the remainder of the personnel Code, so it is removed.
(N)] Public Safety Employee. A person employed in the Police, Fire, or Communications
Department.
[(O)](n) Supervisor. Any person who is responsible to a higher divisional or department
level of authority and who directs the work of others.
[(P)](o) City Manager. A person directly responsible to the City Council who is authorized
and directed to exercise the powers and fulfill the duties as specified in the Charter and
Municipal Code of the City of Kenai.
[(Q)](p) City Attorney. A person directly responsible to the City Council. He or she is the
chief legal advisor to the Council and all other officers, departments and agencies of the City
government in matters relating to their official powers and duties.
[(R)](q) City Clerk. An officer of the City, appointed by the Council, for an indefinite period
of time and shall serve as clerical officer of the Council.
[(S)](r) Grievance. An employee’s oral or written expression of dissatisfaction with some
aspect of his or her employment, a management decision affecting him or her, or an alleged
violation of his or her rights for the purpose of attempting to gain an adjustment of said cause
of dissatisfaction.
45
Page 3 of 57
Ordinance No. 3018-2018
3. 23.10.010 General.
All offices and positions of the City are divided into [C]Classified [S]Service, [AND
U]Unclassified [S]Service and Department Head Service. [ALL THE PROVISIONS OF THIS
CHAPTER SHALL APPLY TO POSITIONS IN THE CLASSIFIED SERVICE. THE
PROVISIONS OF THIS CHAPTER SHALL APPLY TO POSITIONS IN THE EXEMPT
SERVICE AS INDICATED IN KMC 23.10.020.] This amendment adds the Department Head
Service into the Personnel Code and removes the remainder of the language as the provisions
of the Chapter that apply to each class of employees is specifically called out and the “Exempt
Service” is not a defined service.
4. 23.10.020 Unclassified [S]Service.
The unclassified service shall include the following:
(a) Mayor and Council Members. Only the following provisions shall apply: KMC
23.30.110(b) and (d) [AND 23.40.080 (AS APPLICABLE)], 23.40.100 and 23.40.110. KMC
23.40.080 refers to PERS which Council members do not participate in through the City, so
it is removed.
(b) Members of Boards or Commissions. Only the following provisions shall apply to such
officials: KMC 23.30.110(b) and (d). Only the following provisions shall apply to Planning and
Zoning Commissioners compensated pursuant to KMC 14.05.010: KMC 23.40.100 and
23.40.110.
(c) The following Council-appointed administrative offices:
(1) City Manager. The City Manager shall perform all those duties mandated for his
or her position by the provisions of this chapter and shall be bound or receive the
benefits of the following sections insofar as they are applicable: KMC 23.25.050 and
23.25.060(d); KMC 23.30.110(b), (C) and (d); and KMC 23.40.020, 23.40.030,
23.40.040, 23.40.060, 23.40.070, 23.40.095, 23.40.100, 23.40.110, 23.40.120, and
23.40.130. The Council shall by resolution determine whether KMC 23.40.080 applies
to the position of City Manager.
(2) City Clerk. Only those provisions specifically enumerated under subsection (1)
above shall apply to the City Clerk.
(3) City Attorney. Only those provisions specifically enumerated under subsection (1)
above shall apply to the City Attorney.
(d) Volunteer Personnel and Personnel Appointed to Serve Without Pay. None of the
provisions of this chapter shall apply to such personnel.
(e) Consultants and Counsel Rendering Temporary Professional Services. Such services
shall be by contract and none of the provisions of this chapter shall apply.
(f) Positions Involving Seasonal or Temporary Work. All of the provisions of this chapter
shall apply to such positions but only insofar as they are applicable.
[(G) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE
EXEMPT SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF
THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION:
CITY MANAGER
CITY ATTORNEY
CITY CLERK]
Subsection (G) is deleted because it stated elsewhere, (employment contract and position
descriptions) and does not need to be in code.
46
Page 4 of 57
Ordinance No. 3018-2018
5. 23.10.030 Classified [S]Service.
The [C]Classified [S]Service shall include all [OTHER POSITIONS IN THE CITY SERVICE]
paid employees not in the Unclassified or Department Head Service. This change is needed
to recognize the new separate Department Head Service in this section.
(a) [ALL P]Positions in the Classified Service are established by the annual budget or
[COMPENSATION GUIDE] Classification Plan. [ADOPTED BY RESOLUTION OF THE
CITY COUNCIL. ANY NEW POSITION CREATED AT THE START OR DURING THE
BUDGET YEAR AND EITHER RATIFIED OR AFFIRMED BY THE CITY COUNCIL.] The
changes are to reflect that the City uses a Classification Plan, not a Compensation Guide
and removes the incomplete last sentence that does not provide meaningful information or
guidance.
[(B) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE
CLASSIFIED SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS
OF THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION:
AIRPORT MANAGER
FINANCE DIRECTOR
FIRE CHIEF
LIBRARY DIRECTOR
PARKS AND RECREATION DIRECTOR
POLICE CHIEF
POLICE LIEUTENANT
PUBLIC WORKS DIRECTOR
PUBLIC WORKS MANAGER
SENIOR CENTER DIRECTOR.]
This section is deleted because most of the positions are no longer in the classified service
and designation of FLSA exemptions are more appropriately provided elsewhere, such as in
position descriptions.
6. 23.10.035 Department Head Service
(a) Positions in the Department Head Service are established by the annual budget or
Classification Plan.
(b) The Department Head Service shall consist of full-time paid employees who are the
heads of departments. Department Heads serve at will. The City Manager may suspend or
dismiss such employees without cause subject to review by the City Attorney.
This section describes the new Department Head Service and provides that positions in the
Department Head service are at-will employees who may be dismissed without cause.
Suspensions or dismissals of Department Heads will be reviewed by the City attorney to
review whether the suspension or dismissal violates applicable laws.
7. 23.20.010 Initial [C]Classification.
The City Manager shall make analysis of the duties and responsibilities of all positions in the
[C]Classified [S]Service and Department Head Service and shall recommend to the Council
a job classification plan. Each position in the [C]Classified [S]Service and Department Head
Service shall be assigned to a job class on the basis of the kind and level of its duties and
responsibilities. [, TO THE END THAT] All positions in the same class shall be sufficiently
47
Page 5 of 57
Ordinance No. 3018-2018
alike to make use of a single descriptive title, the same qualification requirements, the same
test of competence, and the same pay scale. A job class may contain one [(1)] position or
more than one [(1)] position. The Council shall adopt a classification plan by ordinance. These
amendments add the Department Head Service into the classification scheme.
8. 23.25.020 Pay [P]Plan and [A]Adoption.
The City Manager shall submit the pay plan and rules for its administration to the City Council
for adoption. Before the pay plan and the rules for its administration are adopted by the
Council, the City Manager shall assign each job class to one [(1)] of the pay ranges provided
in the pay plan. A salary schedule for the Department Heard Service shall be part of the pay
plan. The Council shall adopt a plan and rules by ordinance. This change reflects that
Department Heads will be paid within a salary range that is determined by the pay plan
established by Council.
9. 23.25.030 Pay [P]Plan [A]Amendment.
The pay plan may be amended by the City Council from time to time as circumstances require,
either by adjustment of rates or by reassignment of job classes to different pay ranges or
salary schedule. All modifications shall apply uniformly to all positions in the same class. This
change is to ensure the salary schedule for Department Heads is included in future pay plan
amendments.
10. 23.25.040 Appointee [C]Compensation –Classified Service.
(a) Upon initial appointment to a position, the employees in the Classified Service shall
receive the minimum compensation for the class to which the position is allocated, except
as provided below.
(b) [HOWEVER, I]In [THE] cases when unusual difficulty in filling the vacancy is
experienced, or when the appointee is exceptionally qualified, the City Manager may cause
the appointment for employees in the Classified Service to be made at a compensation level
above the minimum, but not more than level D for the same class. These changes clarify
that new employees in the Classified Service may be brought in at a Step D, but it does not
apply to Department Head employees who can be brought in or compensated anywhere
within the designated salary range for the position as provided below.
11. 23.25.045 Department Heads
(a) Upon initial appointment to a position, employees in the Department Head Service shall
receive the minimum compensation for the class to which the position is allocated, except
as provided below.
(b) In cases when unusual difficulty in filling the vacancy is experienced, or when the
appointee is exceptionally qualified, the City Manager may cause the appointment for
employees in the Department Head Service to be made at a compensation level above the
minimum, but not more than the maximum for the same class. This new section provides
that Department Heads can be offered a salary anywhere within the appropriate salary range
for the position, as needed.
48
Page 6 of 57
Ordinance No. 3018-2018
12. 23.25.060 Overtime.
(a) Department heads and supervisors shall assign to each employee regular work duties
and responsibilities which can normally be accomplished within the established work day
and work week.
(b) When employees are required to work overtime, department heads shall authorize
compensatory time off or overtime pay. Determination to grant overtime pay or compensatory
time off shall rest with the department head, City Manager, or acting department heads, who
shall give due consideration to desires of the employee, to budgetary controls, and to the
provisions of subsection (c) of this section. Rates for overtime (in addition to regular
compensation based upon compensation schedules) shall be based upon the employee’s
regular rate of pay as follows:
(1) [GENERAL GOVERNMENT E]Employees in the Classified Service (excluding
public safety, sewer treatment plant, and temporary employees): This change is
consistent with the removal of the definition of “General Government Employees” above
or in the definitions or in KMC 23.05.070 and clarifies that overtime only applies to
classified employees.
Regular Pay Times
Regular Work 1 1/2
Saturday 1 1/2
Sunday 2
Holiday 2 1/2
(2) Temporary employees:
Regular Pay Times
Regular Work 1 1/2
Saturday 1 1/2
Sunday 1 1/2
Holiday 1 1/2
(3) [GENERAL GOVERNMENT] Employees in the Classified Service and temporary
employees other than employees engaged in fire protection activities must be in a paid
status for forty (40) hours in the work week before overtime compensation will be paid.
This change is similar to the above change and clarifies that it does not apply to
employees engaged in fire protection activities (included captains, engineers) who work
a schedule different from all other City employees.
(4) Police, communications and sewer treatment plant employees:
Regular Pay Times
Regular Work Day 1 1/2
Saturday 1 1/2
Sunday 2
(5) Employees engaged in fire protection activities:
49
Page 7 of 57
Ordinance No. 3018-2018
Regular Pay Times
Regular Work 1 1/2
Saturday 1 1/2
Sunday 1 1/2
(6) Police, communications, employees engaged in fire protection activities, and
sewer treatment plant employees must be in a paid status for their normal work week,
as follows, before overtime compensation will be paid:
Police 40 hours
Employees engaged in fire
protection activities
As required by the Fair
Labor Standards Act
Communications 40 hours
Sewer treatment plant 40 hours
However, overtime may be paid as required by the Fair Labor Standards Act,
recognizing that an employee’s salary is compensation for the normal shifts specified
in this Title.
(c) Compensatory time accumulation shall not exceed the total number of hours equal to
one (1) regular shift of the employee. Once this maximum accumulation has been reached,
all overtime compensation earned by the employee shall automatically be paid in cash.
(d) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND
EXEMPT SERVICES CONSIDERED TO BE] Positions exempt from the provisions of the
Fair Labor Standards Act shall not be bound to a work week of any set number of hours. The
individuals in these positions are expected to work as many hours as the responsibilities of
their positions require. As a result, individuals in these positions shall not be paid overtime
or allowed to accrue compensatory time. This amendment is consistent with prior
amendments. All FLSA exempt positions will be designated in position descriptions and or
contract after administrative review. FLSA exemptions are designated by Federal Law based
on job duties and other position related components, and are not determined by City Code.
13. 23.25.080 Promotion.
When an employee in the Classified Service is promoted from one class to another having a
higher pay range, he or she shall receive an increase of not less than one (1) pay step from
his or her former position. This amendment clarifies that it does not apply to the Department
Head Service because Department Heads do not have fixed steps, as proposed.
14. 23.30.010 General.
(a) Recruitment and appointing authority shall be vested in the City Manager.
(b) Applicants must be United States citizens or eligible for employment under existing
State and Federal laws and regulations in order to be employed by the City.
(c) Applicants for positions in the [CITY] Classified and Department Head [S]Service need
not reside within the City Limits. Departmental rules shall establish response times required
by that department. This change recognizes the Department Head Service, and that
Department Heads are not required to reside in the City.
(d) Minimum age for City employment shall be in accordance with State of Alaska laws.
50
Page 8 of 57
Ordinance No. 3018-2018
(e) Employment of qualified individuals with a disability shall be encouraged.
(f) Employment rights for veterans shall be in accordance with applicable State and
Federal laws.
(g) Applicants must possess an appropriate valid Alaska State driver’s license, should
employment require operation of a motor vehicle.
(h) Applicants must complete a City application form or submit a resume of sufficient detail
to equate to a City form.
15. 23.30.030 Probationary Period for Employees in the Classified Service.
(a) All original appointments for employees in the Classified Service including those that
result from transfers shall be tentative and subject to a probationary period of not less than
six (6) months consecutive service, except for police, fire, and communications, which shall
be normally twelve (12) months, subject to meeting criteria for certification which may be
accomplished following six (6) months of service and except for seasonal employees whose
probationary period is established by the term of the first season of employment. Promotional
appointment probationary period shall, for all [PERSONNEL]employees in the Classified
Service, be not less than six (6) months.
(b) In cases where the responsibilities of a position in the Classified Service are such that
a longer period is necessary to demonstrate an employee’s qualifications, the probationary
period may be extended; however, no probationary period shall be extended beyond twelve
(12) months, or eighteen (18) months for police, fire, and communications, or one additional
season for seasonal employees. The employee shall be notified in writing of any extension
and the reasons therefor.
(c) During the first six (6) months of original probationary period, a new employee (including
police, fire, and communications) shall not be eligible for annual leave benefits, but he or she
shall earn annual leave credit from the first day of employment and may take leave for
sickness during that period to the maximum of the amount of leave accrued.
(d) Upon completion of the probationary period, employees in the Classified Service shall
be considered as having satisfactorily demonstrated qualifications for the position, shall gain
regular status, one step in pay raise, and shall be so informed through his or her supervisor.
The employee’s anniversary date shall be the first of the month in which the employee’s
original probation ends. Employees who have gained regular status at the effective date of
the ordinance codified in this section shall have their anniversary dates changed to the first
of the month in which the employee’s present anniversary date falls.
(e) During the probationary period, a new employee [HIRE] hired in the Classified Service
may be terminated at any time without advance notice, without cause, and without appeal.
(f) In the case of promotional appointments, the promoted employee may be demoted at
any time during the probationary period without appeal, provided that the probationary
employee be reinstated in the class designation from which he or she was.
Changes in this section reflect that probation only applies to classified employees. Classified
employees on probation are essentially at-will employees who may be discharged for no
reason or any reason. Department Head employees are always at will and there is no reason
for a probationary period for Department Heads.
16. [23.30.040 EVALUATION.
(A) EVALUATIONS SHALL BE REQUIRED ANNUALLY OF ALL CLASSIFIED
EMPLOYEES AND AFTER EACH SEASON FOR SEASONAL EMPLOYEES.
SUPERVISORS SHALL INDICATE THEREON HIS OR HER RECOMMENDATION AS TO
51
Page 9 of 57
Ordinance No. 3018-2018
WHETHER OR NOT THE EMPLOYEE SHOULD BE AWARDED A PAY RAISE IN
ACCORDANCE WITH THE CITY PAY PLAN, KMC 23.55.
(B) APPROVAL OF INCREMENT PAY RAISES ARE VESTED IN THE CITY MANAGER.]
This entire section is removed as evaluations are discussed in greater detail specific to each
employment class later in Chapter 23.45- Performance Evaluation.
17. 23.30.050 Business [H]Hours and [H]Hours of [W]Work.
(a) The hours during which City offices and departments shall normally be open for
business shall be 8:00 a.m. to 5:00 p.m., [PUBLIC WORKS DEPARTMENTS SHALL BE
8:00 A.M. TO 4:30 P.M., EXCEPT SATURDAYS AND SUNDAYS, HOLIDAYS, AND
FURTHER EXCEPTING] Police and Fire [WHICH] shall be open for business twenty-four
(24) hours a day. The Library, Senior Center, Public Works, and Animal Control operations
shall be open for business as authorized by the City Manager. This is a house keeping
change to reflect current practice.
(b) Public Safety employees, not including administrators, normal work week is:
(1) Police and Communications—four (4) shifts of ten (10) hours per week, two
thousand eighty (2,080) hours annually. When working this shift, first and third days off
shall be treated as Saturdays and the middle day off (the second day) shall be treated
as a Sunday for purposes of paying overtime;
(2) Employees performing fire protection activities as defined by the Fair Labor
Standards Act (FLSA) may work any FLSA approved “7(k) Work Period” approved by
the City Manager.
(c) Sewer Treatment Plant employees work a forty (40) hour week on a shift basis that
allows at least one (1) employee to be at the plant on a given day. When scheduled days off
are two (2) consecutive calendar days, the first day off shall be treated as a Saturday and
the second day off shall be treated as a Sunday for purposes of paying overtime.
(d) All other employees’ normal work week is forty (40) hours, two thousand eighty (2,080)
hours annually. Standard work day is midnight to midnight succeeding. Standard work week
is midnight Sunday to midnight Sunday succeeding. Operating hours may be adjusted on
timely notice.
[(E) SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND
UNCLASSIFIED SERVICES CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF
THE FAIR LABOR STANDARDS ACT SHALL NOT BE BOUND TO A WORK WEEK OF
ANY SET NUMBER OF HOURS. THE INDIVIDUALS IN THESE POSITIONS ARE
EXPECTED TO WORK AS MANY HOURS AS THE RESPONSIBILITIES OF THEIR
POSITIONS REQUIRE. THESE INDIVIDUALS ARE EXPECTED, HOWEVER, TO
SUBSTANTIALLY CONFORM TO THE NORMAL WORK WEEK AS DESCRIBED IN
SUBSECTION (D).] This subsection is deleted as it is not consistent with the newly created
Department Head Service and is not needed.
18. 23.30.060 Attendance.
(a) Employees shall be in attendance at their work in accordance with the rules regarding
hours of work, holidays, and leaves of absence.
(b) An employee shall not be absent [HIM OR HERSELF] from work for any reason without
prior approval from his or her supervisor. When prior approval is not obtained, an employee,
who for any reason fails to report to work, shall make a sincere effort to notify his or her
supervisor of his or her reason for being absent. If the absence continues beyond the first
52
Page 10 of 57
Ordinance No. 3018-2018
day, the employee shall notify the supervisor on a daily basis unless other arrangements
have been made with the supervisor. This is a housekeeping change.
(c) Departments shall maintain records of employees’ attendance.
(d) Any unauthorized absence of any employee from duty shall be deemed to be an
absence without pay and may be cause for disciplinary action.
19. 23.30.070 Personnel [R]Records.
(a) The City Manager shall cause a service or personnel record to be maintained for each
employee in the Classified and Department Head service of the City of Kenai. This change
is to clarify that it applies to both the classified and Department Head Service.
(b) The personnel record shall show the employee’s name, title of position held, the
department to which assigned, compensation, change in employment status, training
received, and such other information as may be considered pertinent.
(c) A personnel action form shall be used as the single document to initiate and update
personnel records.
(d) Employee personnel records shall be considered confidential and shall be accessible
only to the following:
(1) The employee concerned;
(2) Selected City officials authorized by the City Manager.
(e) Department personnel files should not be developed or maintained, except as working
records; i.e., accumulating data for evaluation reports. Departmental personnel records are
therefore unofficial and have no standing.
20. 23.30.110 Travel [E]Expense.
When employees are required to travel outside the City on City business, reimbursement,
subject to advances received, for expenditures incurred shall be determined as follows:
(a) Prior to traveling outside the City, the employee shall obtain permission for the trip and
the mode of travel from the department head.
(b) Travel on official business outside the City by one (1) individual shall be via public
carrier or City-owned vehicle whenever practical. If, for extenuating circumstances, the
employee is authorized to use a private vehicle, total mileage shall be paid at the standard
IRS mileage rate. This rate includes all travel, insurance and fuel.
(c) [THOSE]Classified and Department Head Service employees who [HABITUALLY]often
use their privately-owned vehicle for City business shall be reimbursed thirty dollars ($30.00)
per month, subject to authorization by the City Manager. This amendment clarifies that
Classified and Department Head Service employees may receive a vehicle allowance.
(d) The authorized per diem rates are fifty dollars ($50.00) per full twenty-four (24) hour
day, plus lodging expenses. Part days will be reimbursed for actual costs incurred, up to fifty
dollars ($50.00) per day. Claims for lodging expenses will be supported by receipts.
21. 23.30.120 Moving [E]Expense for [N]New [E]Employees.
(a) [WHENEVER A PROFESSIONAL OR TECHNICALLY TRAINED PERSON CHANGES
HIS OR HER PLACE OF RESIDENCE MORE THAN FIFTY (50) MILES, FOR THE
PURPOSE OF ACCEPTING EMPLOYMENT WITH THE CITY, SUCH A PERSON MAY BE
REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES UNDER THE FOLLOWING
CONDITIONS:] At the City Manager’s discretion moving expenses for new employees may
be reimbursed for actual and necessary expenses under the following conditions:
53
Page 11 of 57
Ordinance No. 3018-2018
(1) The employee must be appointed to a position or a class for which the City
Manager certifies that such expenditure is necessary to recruit qualified employees and
funded by the Council.
(2) The maximum reimbursable shall be subject to negotiation at the time of an offer
of acceptance of appointment.
[(3) TO BE ELIGIBLE FOR THE TOTAL ALLOWANCE FOR AN EMPLOYEE WHO
IS THE HEAD OF A HOUSEHOLD, HIS OR HER DEPENDENTS MUST ACCOMPANY
HIM OR HER OR JOIN HIM OR HER WITHIN ONE (1) YEAR OF THE DATE OF HIS
OR HER APPOINTMENT.]
[4](3) New employees who are assisted with their moving expenses shall be required
to sign a Transportation Agreement prior to employment. The Transportation
Agreement stipulates that the employee will reimburse the City for all or part of such
expenditures in the event of voluntarily leaving City service within a period of two [(2)]
years according to the following schedule:
100%—Less than six (6) months.
75%—Six (6) months, but less than twelve (12) months.
50%—Twelve (12) months, but less than eighteen (18) months.
25%—Eighteen (18) months, but less than twenty-four (24) months.
0%—Two (2) years and over.
(b) New employees may not be given an advance against moving expenses without prior
written approval of the City Manager. The changes to this section covering moving expenses
remove certain limitations, such as requiring dependents to move as well, and a specific
distance requirement, providing greater flexibility in recruitment to the City Manager.
22. 23.30.140 Relatives in [C]City [S]Service.
(a) Two (2) members of an immediate family (spouse, children, brother, sister, in-laws or
parents) shall not be employed under the same immediate supervisor. Neither shall two (2)
members of an immediate family be employed at the same time regardless of the
administrative department, if such employment will result in an employee supervising a
member of his or her immediate family. This section shall not be construed to prohibit
employment by the City of relatives of City Council members.
(b) The provisions of this section shall apply to promotions, demotions, transfers, reinstate-
ments, and new appointments.
[(C) COHABITATION BY ADULTS OF THE OPPOSITE SEX PRESUMES A FAMILY
RELATIONSHIP AND SHALL BE CONSTRUED AS SUCH.] Changes to this section of code
are primarily housekeeping changes modernizing the code. The City should not be making
presumptions about familial relationships in this case.
23. 23.35.020 Causes for [W]Warning, [S]Suspension, or [D]Dismissal.
(a) When an employee[’s] in the Classified Service demonstrates conduct that falls below
desirable standards, he or she may be subject to disciplinary action. This change clarifies
causes for discipline do not apply to Department Head employees that may be suspended
or terminated at will.
(b) General reasons for which an employee may be disciplined include:
54
Page 12 of 57
Ordinance No. 3018-2018
(1) Drinking intoxicating beverages on the job or arriving on the job under the
influence of intoxicating beverages.
(2) Use, consumption, or possession of marijuana (including every compound,
manufacture, derivative, mixture, or preparation of the plant, its seeds or its resin,
including marijuana concentrate), on the job or arriving on the job impaired by the same,
unless the employee has a medical prescription for marijuana from a licensed medical
practitioner as a part of a medical treatment and can perform work unimpaired.
(3) Illegal use, consumption or possession of any controlled or illegal substance on
the job or arriving on the job impaired by the same.
(4) Ingestion, of any prescription or over the counter medication in amounts beyond
the prescribed or recommended dosage on the job, or arriving on the job impaired by
the same. Employees shall notify their immediate supervisor when required to use
prescription medicine that they have been informed has the potential to impair job
performance.
(5) Violation of a lawful duty.
(6) Insubordination.
(7) Breach of discipline.
(8) Being absent from work without first notifying and securing permission from the
employee’s supervisors.
(9) Being habitually absent or tardy for any reason.
(10) Misconduct.
(11) Conviction of a felony or a misdemeanor involving moral turpitude.
(12) Using religious, political, or fraternal influence.
(13) Accepting fees, gifts, or other valuable things in the return for performance of the
employee’s official duties for the City.
(14) Inability to perform the assigned job.
(15) Political activity as restricted by the Charter.
(16) Failure to follow the City’s Drug, Alcohol, and Marijuana policy as set forth in the
City of Kenai Employee Handbook.
(17) Knowingly or negligently failing to follow Federal and State occupational safety
and health regulations and City law and policy regarding the same.
24. 23.35.030 Forms of [D]Disciplinary [A]Action.
(a) Disciplinary action for employees in the classified service ranges from oral or written
reprimands to suspension, demotion, and finally dismissal from the City service, and
depends on the severity of the offense as well as the number and the frequency of previous
acts of misconduct.
(b) It shall be the duty of all City employees to comply with and to assist in carrying into
effect the provisions of the City’s personnel rules and regulations. No employee in the
classified service shall be disciplined except for violation of established rules and regulations,
and such discipline shall be in accordance with procedures established by the personnel
rules and regulations.
(c) Every department head shall discuss improper or inadequate performance with the
employee in order to correct the deficiencies and to avoid the need to exercise disciplinary
action. Where appropriate, disciplinary action shall be of increasing severity.
(d) A written notice shall be given each employee in the classified service for each written
disciplinary action stating the reasons for the disciplinary action and the date it shall take
55
Page 13 of 57
Ordinance No. 3018-2018
effect. The notice shall be given to the employee at the time such action is taken. A copy of
the notice signed by the employee shall be placed in the employee’s personnel file and shall
serve as prima facie evidence of delivery.
(e) All regular employees in the classified service shall have the right to appeal disciplinary
action taken against them within five (5) working days after receipt of notice by employee of
the disciplinary action. Appeals shall be made as grievances in accordance with the
provisions of KMC 23.35.040 except that appeals from suspension, demotion, or dismissal
shall be made directly to a Personnel Board selected from the Arbitration Panel provided in
KMC 23.35.032 by filing such appeal in writing with the City Clerk, setting forth the
background, the disciplinary action, and the reasons why the disciplinary action is felt to be
unjust. Changes in this section are to clarify that it only applies to classified employees.
25. 23.35.032 Arbitration [P]Panel.
(a) There is hereby established an Arbitration Panel consisting of twelve (12) members
who shall be chosen by the City Council from nominees made by City employees and by
members of the City Council.
(b) A member of the Arbitration Panel must be a resident of the City of Kenai and must not
hold any other office or position in the government of the City of Kenai.
(c) Members of the panel shall serve for indefinite terms until termination by the Council,
resignation by the member, death, move from the City of Kenai, election, or appointment as
an officer or employee of the City of Kenai, or incapacity of the member.
(d) By adoption of the ordinance codified in this chapter, the city hereby waives any claim
or cause of action it might have against any member of the Arbitration Panel based on his or
her service thereon or on a Personnel Board. Any employee in the classified service, by filing
an appeal under the provisions of this chapter, likewise waives any claim or cause of action
such employee might have against any member of the Arbitration Panel based on his or her
service thereon or on a Personnel Board, and if requested such employee will execute and
file a formal waiver at time of filing appeal. This amendment clarifies that this section only
applies to classified employees.
26. 23.35.034 Procedures on [A]Appeal.
(a) Within five (5) working days after the filing of a written appeal with the City Clerk, the
City Manager or the designee of the City Manager shall file with the City Clerk an answer in
writing to the appeal setting forth any facts which might be in dispute in the appeal, and
setting forth the reasons why the actions are believed to be justified and the City Manager
or his or her designee shall serve a copy of the answer on the employee in person or by
ordinary mail to employee’s home address.
(b) Promptly after the appeal is filed, the City Clerk shall deliver a copy of the appeal to the
City Manager.
(c) The members of the Arbitration Panel shall be listed in alphabetical order, and will be
called in rotation. Any member passed over because of illness or absence, or disqualified by
an appealing employee in the classified service or the administration, shall be treated as
though he or she has served on the Personnel Board and will not be called again until his or
her name comes up in the normal rotation. As soon as an appeal is filed with the City Clerk,
the City Clerk will make contact and determine the next five (5) members of the panel due
and available for service during the following three (3) weeks, and shall notify the appealing
employee of the five (5) members due for service. The appealing employee will advise the
56
Page 14 of 57
Ordinance No. 3018-2018
City Clerk within two (2) working days which member the employee wishes deleted from the
list, and the City Clerk will then notify the City Manager or his or her designee of the four (4)
remaining members due for service. The City Manager or his or her designee will advise the
Clerk within one (1) working day of the name of the member the administration wishes to
delete from the list. Thereafter, the Clerk will notify the two (2) members of their
disqualification and the other three (3) members as to being chosen for service and will
determine a date, time, and place when all three members may assemble for hearing, and
will then notify the appealing employee in the classified service and the City Manager or
designee of such date, time, and place of hearing.
(d) At the time of hearing, the employee in the classified service shall present any written
evidence, oral testimony, or witnesses that he or she desires, and thereafter the City
Manager or designee shall present evidence, oral testimony, or witnesses as he or she
deems fit, following which the parties may continue to present rebuttal testimony alternately
until neither side has anything further to present.
(e) After completion of presentation of testimony, the appealing employee in the classified
service may make any statement he or she desires by way of argument, which may be
answered by the City Manager or designee, and the appealing employee shall then have a
final closing argument if he or she so desires.
(f) If any member of the Personnel Board feels it necessary or desirable, he or she may
call additional witnesses or call for presentation of additional testimony, adjourning the
hearing to a future time for such presentation if necessary.
(g) After presentation of all evidence and arguments, the Personnel Board shall go into
executive session to make a determination of the appeal, and the Personnel Board shall
make written findings of fact and conclusions as to the justness of the disciplinary action.
(h) There shall be no formal restrictions on the kind of or form of evidence presented so
long as it is pertinent to the appeal and is not unduly repetitive, but the Personnel Board by
majority vote may limit repetitive evidence and may restrict evidence to matters pertinent to
the hearing and to evidence which they would find credible.
(i) The Personnel Board has power to uphold the disciplinary action, to set aside the
disciplinary action completely restoring the appealing employee in the classified service to
his or her former position and to any and all pay which may have been lost because of the
disciplinary action, or if the Personnel Board feels it necessary in the interest of justice that
some disciplinary action be taken but that the particular disciplinary action was too extreme,
it shall determine what the proper disciplinary action should be.
(j) The decision of the Personnel Board may be made by a majority of the Board and shall
be final and binding on the employee and on the City.
(k) Copies of the appeal, the answer to the appeal, and the written decision of the
Personnel Board shall become a part of the personnel file of the appealing employee.
Amendments to this section provide that it only applies to Classified Employee’s.
27. 23.35.040 Grievance [P]Procedure.
(a) [THE]For employees in the classified service, the City shall promptly consider and
equitably adjust employee grievances relating to employment conditions and relationships.
Furthermore, the City desires to adjust the causes of grievances informally, both supervisors
and non-supervisory employees in the classified service are expected to resolve problems
as they arise.
57
Page 15 of 57
Ordinance No. 3018-2018
(b) The following steps shall be followed in submitting and processing a grievance for
employees in the classified service:
(1) Step 1—The aggrieved employee in the classified service or group of employees
in the classified service shall orally present the grievance to the immediate supervisor
within five (5) working days of the occurrence, not including the date of presentation.
(2) Step 2—If the grievance is not settled in Step 1, it shall be prepared in detail, shall
be reduced to writing, shall be dated, shall be signed by the aggrieved employee in the
classified service or group of employees in the classified service, and shall be presented
to the department head within five (5) working days after the supervisor’s oral reply is
given, not including the day that the answer is given.
(3) Step 3—If the grievance is not settled in Step 2, the written grievance shall be
presented along with all pertinent correspondence, records, and information
accumulated to date to the City Manager within seven (7) working days after the
department head’s response is given, not including the day that the response is given.
The City Manager shall meet with the aggrieved employee or group of employees, the
immediate supervisor and the department head. The City Manager shall reply to the
grievance in writing within seven (7) working days of the date of presentation of the
written grievance. The decision of the City Manager shall be final and binding on the
employee or group of employees.
(c) If the grievance procedures are not initiated within the time limits established by this
section, the grievance shall be considered not to have existed.
(d) Any grievance not taken to the next step of the grievance procedure shall be considered
settled on the basis of the last reply made and received in accordance with the provisions of
this section.
(e) If the City fails to meet or answer any grievance within the time limits prescribed for
such action by this section, such grievance shall automatically advance to the next step. If
the City fails to meet or answer any grievance on the last step of the grievance procedure
within the time limits prescribed for such action by this section, it shall be deemed that the
City has considered the grievance to be in favor of the grievant and shall resolve the matter
accordingly.
(f) The time limits prescribed in this section for the initiation and completion of the steps of
the grievance procedure may be extended by mutual consent of the parties so involved.
Likewise, any step in the grievance procedure may be eliminated by mutual consent. Mutual
consent shall be indicated in writing and shall be signed by all parties involved. No employee
shall be disciplined or discriminated against in any way because of the employee’s proper
use of the grievance procedure. Changes to this section clarify that grievance procedures
are only for Classified Employees.
28. 23.40.010 General.
(a) All non-temporary, full-time,[AND] non-temporary part-time (fifteen (15) hours and over
per week) classified and Department Head Service employees are entitled to the following
benefits, except for medical and hospital insurance which shall be available to non-temporary
employees working no less than twenty-five (25) hours per week, as specified in this article.
(b) An employee hired under the State of Alaska’s Mature Alaskans Seeking Skills Training
(MASST) program shall receive only Social Security, Medicare (KMC 23.40.130), Workers
Compensation (KMC 23.40.110) and family leave (KMC 23.40.130) benefits. The other
benefits in KMC 23.40 shall not apply to persons hired under the MASST program. The
58
Page 16 of 57
Ordinance No. 3018-2018
hourly wage paid a MASST employee shall be as set by the State of Alaska, but not less
than minimum wage.
(c) Seasonal employees are eligible to participate in the State Public Employees’
Retirement System. The Amendment to this section provides that Department Head Service
employees get the same relevant benefits as classified employees.
29. 23.40.030 Annual [L]Leave.
(a) Annual leave is a combined vacation and sick leave.
(b) Accrual rate:
(1) Full-time [CLASSIFIED] employees except certain Fire Department employees:
This change is to include Department Head Service employees.
7.3846 hours bi-weekly—first two (2) years of service.
8.3077 hours bi-weekly—three (3) through five (5) years of service.
9.2308 hours bi-weekly—six (6) through ten (10) years of service.
10.1538 hours bi-weekly—more than ten (10) years of service.
(2) Fire (7(k) work period):
10.3385 hours bi-weekly—first two (2) years of service.
11.6308 hours bi-weekly—three (3) through five (5) years of service.
12.9231 hours bi-weekly—six (6) through ten (10) years of service.
14.2154 hours bi-weekly—more than ten (10) years of service.
(c) Annual leave is charged on an hour-for-hour basis; i.e., normal work day of eight (8)
hours would be charged at eight (8) hours annual leave; twelve (12) hour work day, twelve
(12) hours annual leave; ten (10) hour work day, ten (10) hours annual leave; twenty-four
(24) hour work day, twenty-four (24) hours annual leave.
(d) Leave continues to accrue during the period of time an employee is on paid leave
except during periods of terminal leave (leave time after which the employee does not intend
to return to work). Leave does not accrue during periods of leave without pay.
(e) Accrued and unused leave may be carried over from one (1) year to the next for the
purpose of accumulating an annual leave account or reserve. The maximum leave hours
that may be accrued is six hundred forty (640) hours for classified, [AND] unclassified, and
Department Head service employees, and eight hundred ninety-six (896) hours for Fire
Department employees working a 7(k) work period.
(f) Annual leave may be used for any purpose desired by the employee. Incidental
absences for sickness as unplanned are not controllable. However, planned absences must
be coordinated with and approved by the appropriate department head.
(g) It is required that each employee use a minimum of eighty (80) hours of leave per
calendar year for employees working forty (40) hours per week, and one hundred twelve
(112) hours for employees working a 7(k) work period, and affect appropriate coordination
with the department head. If actual hours used are less than the minimum requirement, then
the difference shall be deducted from available leave hours without any compensation to the
employee.
(h) Excess leave above the amount authorized for accrual (subsections (a) through (e))
existing on December 31st shall automatically be paid at the then existing rate for the
individual employee.
(i) Department heads shall schedule vacations for their respective employees with due
consideration for the desires of the employees and the work requirements facing the
59
Page 17 of 57
Ordinance No. 3018-2018
department. Vacation schedules may be amended to allow the department to meet
emergency situations.
(j) In the event of significant illness or injury not covered by workers’ compensation, or
absence due to training or education an employee on exhausting annual leave may, with the
approval of the City Manager, borrow up to a six (6) month entitlement (i.e., thirteen (13) x
7.3846 hours) to avoid a no-pay status. In the event the person’s employment with the City
ends prior to the borrowed leave being repaid, the employee must reimburse the City for the
value of any leave not repaid. The City may deduct the value of any leave not repaid from
the employee’s final paycheck.
(k) Part-time employees working fifteen (15) hours a week or more shall accrue at the same
rate as a full-time employee except on a proportional basis as to hours.
(l) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND
EXEMPT SERVICES]Employees considered to be exempt from the provisions of the Fair
Labor Standards Act shall have annual leave charged on an eight (8) hour/whole day basis.
If any such employee is present for work during any portion of a day, that employee shall not
be charged annual leave for that day. Conversely, if any such employee is absent from her
or his normal place of work for an entire day (excluding Saturdays, Sundays, and holidays)
that employee will be charged eight (8) hours of annual leave for that day. This amendment
is consistent with other similar amendments above, removing the supervisory and
professional designation from code, as FLSA exemptions are determined based on federal
law analysis.
30. 23.40.060 Leave of [A]Absence with [P]Pay.
(a) Employees may request leave of absence with pay for:
(1) Witness or Jury Duty. When a City employee is called for jury duty or is
subpoenaed as a witness, he or she shall not suffer any loss of his or her regular City
compensation during such absence; however, he or she shall be required to transfer
any compensation he or she receives for the performance of such duty to the City. Time
not worked because of such duty shall not affect annual leave accrual.
(2) Military Leave. Employee’s shall be eligible for military leave or associated benefits
in compliance with State and Federal law. [AN EMPLOYEE WHO HAS COMPLETED
THE PROBATIONARY PERIOD AND WHO IS A MEMBER OF THE NATIONAL
GUARD OR RESERVE COMPONENT OF THE ARMED FORCES OF THE UNITED
STATES OR OF THE UNITED STATES PUBLIC HEALTH SERVICE SHALL BE
ENTITLED, UPON APPLICATION, TO A LEAVE OF ABSENCE FROM CITY SERVICE
FOR ONE (1) PERIOD NOT EXCEEDING FIFTEEN (15) CONSECUTIVE DAYS IN
ANY ONE (1) CALENDAR YEAR. HOWEVER, BECAUSE POLICE, FIRE, AND
COMMUNICATIONS EMPLOYEES HAVE A TWELVE (12) MONTH PROBATIONARY
PERIOD RATHER THAN THE SIX (6) MONTH PROBATIONARY PERIOD FOR
OTHER CLASSIFIED EMPLOYEES, THEY SHALL BE ELIGIBLE FOR MILITARY
LEAVE AFTER SIX (6) MONTHS OF SERVICE. SUCH LEAVE SHALL BE GRANTED
WITHOUT LOSS OF TIME, PAY (DIFFERENCE BETWEEN REGULAR AND
MILITARY PAY INCLUDING COLA, BUT NOT INCLUDING OTHER REGULAR
ALLOWANCES), OR OTHER LEAVE, AND WITHOUT IMPAIRMENT OF MERIT
RATINGS OR OTHER RIGHTS OR BENEFITS TO WHICH HE OR SHE IS ENTITLED.
MILITARY LEAVE WITH PAY SHALL BE GRANTED ONLY WHEN AN EMPLOYEE
RECEIVES BONA FIDE ORDERS TO TEMPORARY ACTIVE OR TRAINING DUTY,
60
Page 18 of 57
Ordinance No. 3018-2018
AND SHALL NOT BE PAID IF THE EMPLOYEE DOES NOT RETURN TO HIS OR
HER POSITION IMMEDIATELY FOLLOWING THE EXPIRATION OF THE PERIOD
FOR WHICH HE OR SHE WAS ORDERED TO DUTY.] This is essentially a
housekeeping change. Military leave is governed by state and federal law and should
not be restated in our City code as state and federal laws may change creating an
opportunity for the City code to conflict with other laws.
(3) Conferences, Conventions and Other Related City Business. Decisions
concerning attendance at conferences, conventions, or other functions pertaining to
City business at City expense shall be made by the department heads with the approval
of the City Manager. Permission shall be granted on the basis of an employee’s
participation in or the direct relationship of the function to the City. Members of
professional societies may be permitted to attend meetings of their society when such
attendance is considered to be in the best interest of the City.
(4) Death in the Immediate Family. Leave of absence with pay is provided to assist
an employee who must be absent from work as a result of a death in the immediate
family. The employee’s absence would be for funeral attendance, or to handle matters
arising due to the death of an immediate family member, that cannot practicably be
taken care of outside of regular business hours. Upon the City Manager’s approval,
employees shall be entitled to the following leave, which will not directly affect their
personal leave account: three (3) working days, up to twenty-four (24) hours maximum.
32. [23.40.150 DEFINITIONS.
IN KMC 23.40.130 THROUGH 23.40.140:
(A) “CHILD” MEANS AN INDIVIDUAL WHO IS:
(1) UNDER EIGHTEEN (18) YEARS OF AGE; OR
(2) EIGHTEEN (18) YEARS OF AGE OR OLDER AND INCAPABLE OF SELF-CARE
BECAUSE OF MENTAL OR PHYSICAL DISABILITY.
(B) “HEALTH CARE PROVIDER” MEANS: (1) A PHYSICIAN LICENSED UNDER AS
08.64, OR A DENTIST LICENSED UNDER AS 08.36, OR A PSYCHOLOGIST LICENSED
UNDER AS 08.86; OR (2) ANY OTHER PERSON DETERMINED BY THE SECRETARY OF
LABOR TO BE CAPABLE OF PROVIDING HEALTH CARE SERVICES.
(C) “LICENSED HEALTH CARE PROVIDER” MEANS A PHYSICIAN LICENSED UNDER
AS 08.64 OR A PSYCHOLOGIST LICENSED UNDER AS 08.86.
(D) “PARENT” MEANS A BIOLOGICAL OR ADOPTIVE PARENT, A PARENT-IN-LAW,
OR A STEP-PARENT.
(E) “SERIOUS HEALTH CONDITION” MEANS AN ILLNESS, INJURY, IMPAIRMENT, OR
PHYSICAL OR MENTAL CONDITION THAT INVOLVES: (1) INPATIENT CARE IN A
HOSPITAL, HOSPICE, OR RESIDENTIAL HEALTH CARE FACILITY; OR (2) CONTINUING
TREATMENT OR CONTINUING SUPERVISION BY A HEALTH CARE PROVIDER.
(F) “SPOUSE” MEANS SOMEONE WITH WHOM THE EMPLOYEE HAS AN EXISTING
VALID MARRIAGE AS SET FORTH UNDER AS 25.05 AND SPECIFICALLY DOES NOT
INCLUDE AN UNMARRIED DOMESTIC PARTNER OF THE EMPLOYEE.
(G) “IMMEDIATE FAMILY” INCLUDES MOTHER, FATHER, SPOUSE, CHILDREN,
BROTHER, SISTER, MOTHER/FATHER-IN-LAW. THE CITY MANAGER MAY
DETERMINE “OTHER INDIVIDUALS” ARE IMMEDIATE FAMILY, PARENTS, CHILDREN,
SIBLINGS AND OTHERS INVOLVED IN THE SIGNIFICANT RAISING.] This is a
housekeeping change. This section is deleted as it provides state and federal definitions
61
Page 19 of 57
Ordinance No. 3018-2018
pertaining to state and federal law compliance which have changed and are subject to
change. The best practice is to review actual state and federal definitions to ensure
mandatory compliance.
33. 23.45.020 Periods of Evaluation.
Each employee [IN THE CLASSIFIED SERVICE] shall have his or her performance evaluated
at the following periods: This change ensures all employees are evaluated.
(a) End of Probationary Period. Each employee in the classified service shall be evaluated
thirty [(30)] days prior to the completion of his or her probationary period. The employee must
have an overall evaluation of at least “Meets Expectations” in order to become permanent
or, in the case of seasonal employees, be eligible for the next season’s employment. This
change reflects only Classified Employees have an probationary period.
(b) Annual. Each employee shall receive an annual performance evaluation thirty [(30)]
days prior to his or her anniversary date[.] and thirty days prior to the end of each season for
seasonal employees. This housekeeping change recognizes current City practice.
(c) Time of Separation. Each employee shall be evaluated at the time of separation and
such record shall become part of his or her permanent personnel file.
34. 23.45.030 Performance [E]Evaluators.
(a) Rating Officer. The rating officer shall normally be the employee’s immediate
supervisor. The rating officer shall be responsible for completing a performance evaluation
report at the time prescribed for each employee under his or her supervision.
(b) Reviewing Officer. The reviewing officer shall normally be the rating officer’s immediate
supervisor or department head. The reviewing officer shall review the performance
evaluation report completed by each rating officer under his or her jurisdiction before the
report is discussed with the employee. The reviewing officer shall consider the performance
evaluations completed by the rating officer in evaluating the rating officer’s performance.
(c) Department Heads shall be evaluated by the City Manager. This amendment clarifies
that all Department Heads will be evaluated by the City Manager.
35. 23.45.040 Review of [P]Performance [R]Reports for Employees in the Classified
Service.
The rating officer shall discuss the performance evaluation report with the employee in the
classified service before the report is made part of the employee’s permanent record. If the
rating officer plans to recommend the denial of an in-grade pay increment or recommend an
extraordinary increment, the report must be discussed with the reviewing officer and the City
Manager prior to review with the employee. This change reflects that only Classified
employees pay increases are based on evaluations and a step schedule. As provided below,
Classified employees who receive a negative rating on their evaluation are not eligible for a
step increase.
36. 23.45.050 Unsatisfactory [E]Evaluation for Employees in the Classified Service.
Employees in the classified service who receive an overall rating of “Unsatisfactory” or “Needs
Improvement” on their annual evaluation shall not be eligible to be advanced a step increment
at appropriate annual, biennial or quadrennial anniversary dates. Employees in the classified
service who receive two [(2)] consecutive overall ratings of “unsatisfactory” shall be subject to
dismissal. Consistent with the amendment above, step increases based on evaluations only
62
Page 20 of 57
Ordinance No. 3018-2018
apply to Classified employees. Department Head Service employees will be evaluated, but
there is not a guarantee they will receive additional compensation even with a positive
evaluation.
37. 23.45.060 Performance [E]Evaluation [A]Appeal [P]Procedure for Employees in the
Classified Service.
[EMPLOYEES’ P]Performance evaluation reports for employees in the classified service shall
not be subject to the standard grievance procedure. Employees in the classified service shall
have the right to appeal their evaluation in accordance with the following procedure:
(a) Step 1. If, after a review of his or her performance evaluation report with the rating
officer, the employee feels that the report is unfair, he or she may request a meeting with the
reviewing officer by checking the appropriate section on the report. The rating officer will then
immediately forward the report to the reviewing officer who will arrange to meet with the
employee within five (5) working days after receiving the report. The reviewing officer will
then forward a decision in writing to the employee within five (5) working days after the date
of their meeting.
(b) Step 2. In the event that the employee is dissatisfied with the decision of the reviewing
officer, he or she may, within five (5) working days of receipt of the decision, appeal his or
her performance evaluation report, in writing, to the City Manager. The City Manager shall,
within five (5) working days, meet and discuss the report with the employee. The City
Manager will, in writing, make a decision within ten (10) working days from the date of their
meeting. The decision of the City Manager will be final. Amendments to this section are to
reflect that appeal of evaluations only applies to the Classified Service. Appeals of
evaluations are not applicable to at-will Department Head Service employees.
38. 23.50.010 Employee [C]Classification.
City employees shall be classified by Class, Title, and Pay Range as follows:
CLASS CODE CLASS TITLE RANGE
(a) SUPERVISORY AND PROFESSIONAL
101 City Manager NG
102 City Attorney NG
103 City Clerk NG
104 Finance Director* 24
105 Public Works Director* 23
106 Police Chief* 23
107 Fire Chief* 22
112 Airport Manager* 20
117 City Planner 16
118 Information Technology (IT) Manager 18
119 Human Resource Specialist/Assistant to City
Manager
15
120 Library Director* 18
121 Senior Center Director* 18
122 Parks and Recreation Director* 17
63
Page 21 of 57
Ordinance No. 3018-2018
CLASS CODE CLASS TITLE RANGE
123 Human Resources Officer 16
(b) ADMINISTRATIVE SUPPORT
203 Administrative Assistant I 8
204 Accounting Technician I 10
205 Accounting Technician II 11
206 Accountant 16
210 Administrative Assistant II 9
211 Administrative Assistant III 10
214 Library Assistant 6
218 Library Aide 2.5
219 Data Entry Clerk 1.1
(c) PUBLIC SAFETY
302 Fire Fighter 13
303 Police Lieutenant 20
304 Police Sergeant 18
305 Police Officer 16
306 Public Safety Dispatcher 9
307 Fire Engineer 15
311 Fire Captain 16
312 Fire Marshal 17
313 Communications Supervisor 12
314 Police Trainee 16/21
315 Battalion Chief/Safety Officer 17
316 Chief Animal Control Officer 11
317 Animal Control Officer 9
(d) PUBLIC WORKS
401 Building Official 15
402 Shop Foreman 16
403 Street Foreman 16
404 Sewer Treatment Plant Operator 13
405 Water and Sewer Operator 13
407 Equipment Operator 11
408 Shop Mechanic 14
409 Equipment Lead Operator 14
410 Water and Sewer Foreman 16
412 Building Maintenance Technician 12
413 Sewer Treatment Plant Lead Operator 14
414 Sewer Treatment Plant Foreman 16
417 Airport Operations Specialist 11
64
Page 22 of 57
Ordinance No. 3018-2018
CLASS CODE CLASS TITLE RANGE
418 Airport Operations Supervisor 15
419 Building Maintenance Lead Technician 13
420 Water and Sewer Lead Operator 14
(e) GENERAL SERVICES
504 Parks, Beautification and Recreation Operator 9
505 Parks, Beautification and Recreation Laborer 2.4
506 Cook 2.4
507 Activities/Volunteer Coordinator 2.4
508 Meals/Driver 2.4
509 Kitchen Assistant 2.2
510 Outreach Worker 1.1
511 Janitor 2.4
512 Driver 1
* Department Head[S] Service This is a minor change to reflect the new term “Department
Head Service.”
1 For work performed after February 21, 2009, while attending the Alaska Public Safety
Academy in Sitka, a police trainee shall be a paid at a Range 2, Step F. Because of a
fluctuating and unpredictable training schedule, he or she shall be considered to work
twelve (12) hours per day from Monday through Saturday and eleven (11) hours on Sunday,
or the actual number of hours worked, whichever is greater. The normal work schedule at
the academy shall be five (5) eight (8) hour shifts from Monday to Friday rather than four
(4) ten (10) hour shifts as stated in KMC 23.50.050(b)(l).
39. 23.55.015 – Department Head Service Salaries.
Salaries of employees in the Department Head Service shall be set by the City Manager within
the range approved by the City Council as approved through the budget process. This is a
new section of code explaining that the City Manager can set a Department Head’s salary
anywhere within the range of the salary approved by council and through the budget process.
40. 23.55.020 Compensation Structure by Grade for Employees in the Classified
Service.
(a) Compensation structure by grade for employees in the classified service is hereby
established in accordance with the table that is appended to this title and which may be
amended, modified, or replaced by ordinance, in which case a copy of the amended,
modified, or replacement table shall be substituted for the prior table and placed in the code
at the end of this title.
(b) On completion of the probationary period, each permanent full-time employee in the
classified service, except seasonal employees, shall be advanced one [(1)] step. At
succeeding anniversary dates, subject to evaluation, employees in the classified service may
be advanced a step increment subject to City Manager approval. The time period normally
between steps B to C to D to E to F is one [(1)] year. The time normally between Steps F to
AA to BB to CC is two [(2)] years.
65
Page 23 of 57
Ordinance No. 3018-2018
(c) On completion of the probationary period, each permanent part-time employee in the
classified service and seasonal employee shall be advanced one [(1)] step. At appropriate
biennial or quadrennial anniversary dates thereafter, subject to the employee’s most recent
annual evaluation being “Meets Expectations” or better, the employee, including seasonal
employees, may be advanced a step increment. The time period normally between steps B
to C to D to E to F is two [(2)] years. The time period normally between steps F to AA to BB
to CC is four [(4)] years. Amendments to this section clarify that it only applies to Classified
employees.
41. 23.55.50 Hourly Rates.
(a) Hourly rates for employees in the classified service not exempted from minimum wage
and overtime provisions of the Fair Labor Standards Act (with various experience, skills, and
responsibilities) are hereby established in accordance with the table that is appended to this
title and which may be amended, modified, or replaced by ordinance, in which case a copy
of the amended, modified, or replacement table shall be substituted for the prior table and
placed in the Code at the end of this title. This amendment is consistent with the overall
structure in the Personnel Code that only Classified employees are paid on an hourly basis.
42. 23.55.060 Stand-by [P]Pay.
(a) Where employees in the classified service are placed on a stand-by status, they shall
be entitled to a 5% rate of pay computed against Step A of the pay range of the employee
for each hour in stand-by status.
(b) To be eligible for stand-by pay, an employee in the classified service must formally be
placed on stand-by status, with the approval of the City Manager, and the proper
documentation indicating such approval placed in the employee’s personnel records. An
employee in stand-by status must be available for call-outs, must be in a location whereby
the responsible City personnel can communicate with him or her, and comply with any other
requirements of the approved stand-by pay. This amendment clarifies that only Classified
employees receive stand-by pay.
43. 23.55.070 Call-out [P]Pay.
When employees in the classified service are called out to work outside of normal working
hours, they shall be paid a minimum of two [(2)] hours pay at overtime rates. Overtime hours
worked immediately prior to, or after, normal working hours will not be considered as a “call-
out.” This amendment clarifies that only Classified employees receive call-out pay.
44. 23.55.080 Longevity [P]Pay for Employees in the Classified Service.
All regular employees in the classified service who have received an overall rating of “Meets
Expectations” or better in their last performance evaluation and who have been at Step CC
for a period of at least two (2) years as of July 31st shall be paid a longevity bonus of two
percent (2%) of his or her annual pay rate (i.e., excluding overtime). The longevity pay shall
be paid just once a year on the August payroll, except that the longevity bonus in 2008 shall
be paid after the effective date of the ordinance codified in this section but prior to the end of
the calendar year 2008. Notwithstanding the above, any employee in the classified service
who has received a range increase or a noncost of living pay increase within their current pay
range within the twelve (12) months prior to July 31st is not eligible for a longevity pay bonus.
This amendment clarifies that only Classified employees receive longevity pay.
66
Page 24 of 57
Ordinance No. 3018-2018
45. FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR ALL CLASSIFIED AND
DEPARTMENT HEAD SERVICE EMPLOYEES EXCLUDING THOSE ENGAGED IN FIRE
PROTECTION ACTIVITIES
Range A B C D E F AA BB CC
Step
1 10.27 10.53 10.78 11.04 11.30 11.55 11.81 12.07 12.32
1.1 10.78 11.05 11.32 11.59 11.86 12.13 12.40 12.67 12.94
2 11.47 11.76 12.04 12.33 12.62 12.90 13.19 13.48 13.76
2.1 12.08 12.38 12.68 12.99 13.29 13.59 13.89 14.19 14.50
2.2 12.76 13.08 13.40 13.72 14.04 14.36 14.67 14.99 15.31
2.3 13.41 13.75 14.08 14.42 14.75 15.09 15.42 15.76 16.09
2.4 15.66 16.05 16.44 16.83 17.23 17.62 18.01 18.40 18.79
2.5 17.74 18.18 18.63 19.07 19.51 19.96 20.40 20.84 21.29
3 17.85 18.30 18.74 19.19 19.64 20.08 20.53 20.97 21.42
4 18.75 19.22 19.69 20.16 20.63 21.09 21.56 22.03 22.50
5 19.69 20.18 20.67 21.17 21.66 22.15 22.64 23.14 23.63
6 20.66 21.18 21.69 22.21 22.73 23.24 23.76 24.28 24.79
7 21.71 22.25 22.80 23.34 23.88 24.42 24.97 25.51 26.05
8 22.80 23.37 23.94 24.51 25.08 25.65 26.22 26.79 27.36
9 23.94 24.54 25.14 25.74 26.33 26.93 27.53 28.13 28.73
10 25.12 25.75 26.38 27.00 27.63 28.26 28.89 29.52 30.14
11 26.38 27.04 27.70 28.36 29.02 29.68 30.34 31.00 31.66
12 27.72 28.41 29.11 29.80 30.49 31.19 31.88 32.57 33.26
13 29.08 29.81 30.53 31.26 31.99 32.72 33.44 34.17 34.90
14 30.55 31.31 32.08 32.84 33.61 34.37 35.13 35.90 36.66
15 32.07 32.87 33.67 34.48 35.28 36.08 36.88 37.68 38.48
16 33.67 34.51 35.35 36.20 37.04 37.88 38.72 39.56 40.40
17 35.35 36.23 37.12 38.00+ 38.89 39.77 40.65 41.54 42.42
18 37.12 38.05 38.98 39.90 40.83 41.76 42.69 43.62 44.54
19 38.97 39.94 40.92 41.89 42.87 43.84 44.82 45.79 46.76
20 40.93 41.95 42.98 44.00 45.02 46.05 47.07 48.09 49.12
21 42.99 44.06 45.14 46.21 47.29 48.36 49.44 50.51 51.59
22 45.11 46.24 47.37 48.49 49.62 50.75 51.88 53.00 54.13
23 47.38 48.56 49.75 50.93 52.12 53.30 54.49 55.67 56.86
24 49.81 51.06 52.30 53.55 54.79 56.04 57.28 58.53 59.77
FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR CLASSIFIED EMPLOYEES
ENGAGED IN FIRE PROTECTION ACTIVITIES
Range A B C D E F AA BB CC
Step
13 20.77 21.29 21.81 22.33 22.85 23.37 23.89 24.40 24.92
14 21.82 22.37 22.91 23.46 24.00 24.55 25.09 25.64 26.18
15 22.91 23.48 24.06 24.63 25.20 25.77 26.35 26.92 27.49
16 24.06 24.66 25.26 25.86 26.47 27.07 27.67 28.27 28.87
17 25.26 25.89 26.52 27.15 27.79 28.42 29.05 29.68 30.31
67
Page 25 of 57
Ordinance No. 3018-2018
FISCAL YEAR 2018 OPERATING BUDGET SALARY SCHEDULE FOR ALL DEPARTMENT
HEAD SERVICE EMPLOYEES
18 $77,209 – 101,907
19 $79,185 – 106,987
20 $85,134 – 112,387
21 $89,419 – 118,037
22 $93,829 – 123,849
23 $98,550 – 130,096
24 $103,604 – 136 754
This new section of the pay scale reflect a salary range for the Department Head Service. The
bottom of the range is the same as the current FY18 Step A in the Salary Schedule for the range,
but the top of the range has been increased by 10%.
Section 2. Revised Title 23 in its Entirety:
Title 23 - Personnel Regulations
Chapter 23.05 - GENERAL PROVISIONS
23.05.010 Employment—Qualifications.
Employment in City government shall be based on qualifications, free of personal and
political considerations, with equal opportunity for all with no discrimination in employment on
the basis of race, color, religion, sex, sexual orientation, national origin, age, disability, marital
status, changes in marital status, pregnancy, parenthood, or genetic information. It is a policy of
the City to not discriminate against the qualified disabled in employment.
23.05.020 Incentives and conditions.
Just and equitable incentives and conditions of employment shall be established and
maintained to promote efficiency and economy in the operations of the City government.
23.05.030 Uniformity of classification and compensation.
Positions having similar duties and responsibilities shall be classified and compensated on
a uniform basis.
23.05.040 Appointment.
Appointments, promotions, and other actions requiring the application of the merit principal
shall be based on systematic evaluation, designed for the position to be filled.
23.05.050 Morale.
High morale shall be maintained by the fair administration of this ordinance, by every
consideration of rights and interests of employees, consistent with the best interest of the public
and the City.
68
Page 26 of 57
Ordinance No. 3018-2018
23.05.060 Tenure.
Tenure of employees in the classified service [COVERED BY THIS TITLE] shall be subject
to good behavior, satisfactory performance of work, necessity for the performance of work, and
the availability of funds.
23.05.070 Definitions.
As used in Title 23, the following terms shall have the meanings indicated:
(a) Unclassified Service. The unclassified service shall include all elected officials, City
Manager, City Attorney, City Clerk, seasonal and temporary employees. Members of boards,
committees, commissions, volunteers, contractors, and consultants are not employees.
(b) Classified Service. All paid employees not in the unclassified [SERVICE] or Department
Head Service.
(c) Department Head Service. The Department Head Service shall include employees who
are directly responsible to the City Manager for the administration of one or more
departments.
[(C)](d) Full-Time. Employees scheduled to work forty (40) hours per week (except certain
Fire Department employees who work an average of fifty-six (56) hours per week) are
considered full time.
[(D)](e) Part-Time. Employees scheduled to work less than forty (40) hours per week.
[(E)](f) Regular. Employees who have completed the probationary period. They may be
assigned to work a full-time or part-time schedule.
[(F)](g) Seasonal. Employees who perform seasonal work for a pre-established period of
not more than six (6) months during a twelve (12)-month period. Seasonal Employees may
be assigned a full time or part-time schedule and are eligible for Public Employee Retirement
Benefits but are ineligible for other benefits and holiday pay. Seasonal Employees who have
completed the probationary period may return to the seasonal position each season subject
to performance evaluations, general conduct and discipline, personnel rules and policies of
the City, layoff, reorganization and other business needs of the City.
[(G)](h) Temporary. Employees who are hired for a pre-established period, usually during
peak workloads or for vacation relief and for not more than six (6) months. They may be as-
signed to work a full-time or part-time schedule. They are ineligible for benefits and holiday
pay.
[(H)](i) Probationary Period. Normally six (6) months, except for Police, Communications
and Fire, which is normally twelve (12) months. This period can be extended up to, but no
longer than, twelve (12) months and eighteen (18) months, respectively.
[(I)](j) Department. The smallest functional budgetary unit of the City government
established by the City Council.
[(J) DEPARTMENT HEAD. A CLASSIFIED EMPLOYEE DIRECTLY RESPONSIBLE TO
THE CITY MANAGER FOR THE ADMINISTRATION OF ONE (1) OR MORE
DEPARTMENTS.]
(k) Promotion. An advancement of an employee from one (1) job classification to a higher
job classification within the same department.
(l) Transfer. The movement of an employee from one (1) department to another
department, regardless of job classification.
(m) [GENERAL GOVERNMENT EMPLOYEE. A CITY EMPLOYEE OTHER THAN A
PUBLIC SAFETY EMPLOYEE.
69
Page 27 of 57
Ordinance No. 3018-2018
(N)] Public Safety Employee. A person employed in the Police, Fire, or Communications
Department.
[(O)](n) Supervisor. Any person who is responsible to a higher divisional or department
level of authority and who directs the work of others.
[(P)](o) City Manager. A person directly responsible to the City Council who is authorized
and directed to exercise the powers and fulfill the duties as specified in the Charter and
Municipal Code of the City of Kenai.
[(Q)](p) City Attorney. A person directly responsible to the City Council. He or she is the
chief legal advisor to the Council and all other officers, departments and agencies of the City
government in matters relating to their official powers and duties.
[(R)](q) City Clerk. An officer of the City, appointed by the Council, for an indefinite period
of time and shall serve as clerical officer of the Council.
[(S)](r) Grievance. An employee’s oral or written expression of dissatisfaction with some
aspect of his or her employment, a management decision affecting him or her, or an alleged
violation of his or her rights for the purpose of attempting to gain an adjustment of said cause
of dissatisfaction.
Chapter 23.10 - CATEGORIES OF SERVICE
23.10.010 General.
All offices and positions of the City are divided into [C]Classified [S]Service, [AND
U]Unclassified [S]Service and Department Head Service. [ALL THE PROVISIONS OF THIS
CHAPTER SHALL APPLY TO POSITIONS IN THE CLASSIFIED SERVICE. THE PROVISIONS
OF THIS CHAPTER SHALL APPLY TO POSITIONS IN THE EXEMPT SERVICE AS INDICATED
IN KMC 23.10.020.]
23.10.020 Unclassified [S]Service.
The unclassified service shall include the following:
(a) Mayor and Council Members. Only the following provisions shall apply: KMC
23.30.110(b) and (d) [AND 23.40.080 (AS APPLICABLE)], 23.40.100 and 23.40.110.
(b) Members of Boards or Commissions. Only the following provisions shall apply to such
officials: KMC 23.30.110(b) and (d). Only the following provisions shall apply to Planning and
Zoning Commissioners compensated pursuant to KMC 14.05.010: KMC 23.40.100 and
23.40.110.
(c) The following Council-appointed administrative offices:
(1) City Manager. The City Manager shall perform all those duties mandated for his
or her position by the provisions of this chapter and shall be bound or receive the
benefits of the following sections insofar as they are applicable: KMC 23.25.050 and
23.25.060(d); KMC 23.30.110(b), (C) and (d); and KMC 23.40.020, 23.40.030,
23.40.040, 23.40.060, 23.40.070, 23.40.095, 23.40.100, 23.40.110, 23.40.120, and
23.40.130. The Council shall by resolution determine whether KMC 23.40.080 applies
to the position of City Manager.
(2) City Clerk. Only those provisions specifically enumerated under subsection (1)
above shall apply to the City Clerk.
(3) City Attorney. Only those provisions specifically enumerated under subsection (1)
above shall apply to the City Attorney.
70
Page 28 of 57
Ordinance No. 3018-2018
(d) Volunteer Personnel and Personnel Appointed to Serve Without Pay. None of the
provisions of this chapter shall apply to such personnel.
(e) Consultants and Counsel Rendering Temporary Professional Services. Such services
shall be by contract and none of the provisions of this chapter shall apply.
(f) Positions Involving Seasonal or Temporary Work. All of the provisions of this chapter
shall apply to such positions but only insofar as they are applicable.
[(G) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE
EXEMPT SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF
THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION:
CITY MANAGER
CITY ATTORNEY
CITY CLERK]
23.10.030 Classified [S]Service.
The [C]Classified [S]Service shall include all [OTHER POSITIONS IN THE CITY SERVICE]
paid employees not in the Unclassified or Department Head Service.
(a) [ALL P]Positions in the Classified Service are established by the annual budget or
[COMPENSATION GUIDE] Classification Plan. [ADOPTED BY RESOLUTION OF THE
CITY COUNCIL. ANY NEW POSITION CREATED AT THE START OR DURING THE
BUDGET YEAR AND EITHER RATIFIED OR AFFIRMED BY THE CITY COUNCIL.]
[(B) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE
CLASSIFIED SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS
OF THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION:
AIRPORT MANAGER
FINANCE DIRECTOR
FIRE CHIEF
LIBRARY DIRECTOR
PARKS AND RECREATION DIRECTOR
POLICE CHIEF
POLICE LIEUTENANT
PUBLIC WORKS DIRECTOR
PUBLIC WORKS MANAGER
SENIOR CENTER DIRECTOR.]
23.10.035 Department Head Service
(a) Positions in the Department Head Service are established by the annual budget or
Classification Plan.
(b) The Department Head Service shall consist of full-time paid employees who are the
heads of departments. Department Heads serve at will. The City Manager may suspend or
dismiss such employees without cause subject to review by the City Attorney.
71
Page 29 of 57
Ordinance No. 3018-2018
Chapter 23.15 - ADMINISTRATION
23.15.010 Administration by City Manager.
The personnel program established by this title shall be administered by the City Manager.
He or she shall administer all provisions of this title and of the personnel rules. He or she shall
prepare and recommend revisions and amendments to this title as deemed necessary. The City
Manager shall draft such rules as may be necessary to carry out the provisions of this title. Such
rules shall be uniform application except as specifically stated. Additionally, each department of
the City is encouraged to establish departmental rules, regulations, and procedures subject to the
approval of the City Manager. Such rules, regulations, and procedures shall be in harmony with
the general rules of the City Manager and provisions of this title, and shall be binding on the
employees.
Chapter 23.20 - CLASSIFICATION
23.20.010 Initial [C]Classification.
The City Manager shall make analysis of the duties and responsibilities of all positions in the
[C]Classified [S]Service and Department Head Service and shall recommend to the Council a job
classification plan. Each position in the [C]Classified [S]Service and Department Head Service
shall be assigned to a job class on the basis of the kind and level of its duties and responsibilities.
[, TO THE END THAT] All positions in the same class shall be sufficiently alike to make use of a
single descriptive title, the same qualification requirements, the same test of competence, and
the same pay scale. A job class may contain one [(1)] position or more than one [(1)] position.
The Council shall adopt a classification plan by ordinance.
23.20.020 Revisions to classification plan.
The initial classification plan shall be revised from time to time as changing positions require
it, with the recommendation of the City Manager and the approval of the City Council. Such
revisions may consist of addition, abolishment, consolidation, division, or amendment of the
existing classes.
23.20.030 Adjustments to organization.
Whenever a change in the organization of the City administration is brought about by changes
in the classification system outlined above, the City Manager shall submit to the Council a chart
or table of organization of the administration, indicating the new structure and reporting
relationship.
Chapter 23.25 - COMPENSATION
23.25.010 Pay plan—Development.
The City Manager, in consultation with the Finance Director, shall prepare a pay plan and
rules for its administration. The rate and range where each class shall be such as to reflect fairly
the differences in duties and responsibilities and shall be related to compensation for comparable
positions in other places of public employment. The objective of the pay plan shall be to provide
an appropriate compensation structure to recruit and retain an adequate supply of competent
employees.
72
Page 30 of 57
Ordinance No. 3018-2018
23.25.020 Pay [P]Plan and [A]Adoption.
The City Manager shall submit the pay plan and rules for its administration to the City Council
for adoption. Before the pay plan and the rules for its administration are adopted by the Council,
the City Manager shall assign each job class to one [(1)] of the pay ranges provided in the pay
plan. A salary schedule for the Department Heard Service shall be part of the pay plan. The
Council shall adopt a plan and rules by ordinance.
23.25.030 Pay [P]Plan [A]Amendment.
The pay plan may be amended by the City Council from time to time as circumstances
require, either by adjustment of rates or by reassignment of job classes to different pay ranges or
salary schedule. All modifications shall apply uniformly to all positions in the same class.
23.25.040 Appointee [C]Compensation –Classified Service.
(a) Upon initial appointment to a position, the employees in the Classified Service shall
receive the minimum compensation for the class to which the position is allocated, except
as provided below.
(b) [HOWEVER, I]In [THE] cases when unusual difficulty in filling the vacancy is
experienced, or when the appointee is exceptionally qualified, the City Manager may cause
the appointment for employees in the Classified Service to be made at a compensation level
above the minimum, but not more than level D for the same class.
23.25.045 Department Heads
(a) Upon initial appointment to a position, employees in the Department Head Service
shall receive the minimum compensation for the class to which the position is allocated,
except as provided below.
(b) In cases when unusual difficulty in filling the vacancy is experienced, or when the
appointee is exceptionally qualified, the City Manager may cause the appointment for
employees in the Department Head Service to be made at a compensation level above the
minimum, but not more than the maximum for the same class.
23.25.050 Pay day.
The pay period is bi-weekly. Employees shall be paid every other Friday (pay day). If the pay
day falls on a holiday, employees shall be paid on the last working day preceding the pay day.
23.25.060 Overtime.
(a) Department heads and supervisors shall assign to each employee regular work duties
and responsibilities which can normally be accomplished within the established work day
and work week.
(b) When employees are required to work overtime, department heads shall authorize
compensatory time off or overtime pay. Determination to grant overtime pay or compensatory
time off shall rest with the department head, City Manager, or acting department heads, who
shall give due consideration to desires of the employee, to budgetary controls, and to the
provisions of subsection (c) of this section. Rates for overtime (in addition to regular
compensation based upon compensation schedules) shall be based upon the employee’s
regular rate of pay as follows:
73
Page 31 of 57
Ordinance No. 3018-2018
(1) [GENERAL GOVERNMENT E]Employees in the Classified Service (excluding
public safety, sewer treatment plant, and temporary employees):
Regular Pay Times
Regular Work 1 1/2
Saturday 1 1/2
Sunday 2
Holiday 2 1/2
(2) Temporary employees:
Regular Pay Times
Regular Work 1 1/2
Saturday 1 1/2
Sunday 1 1/2
Holiday 1 1/2
(3) [GENERAL GOVERNMENT] Employees in the Classified Service and temporary
employees other than employees engaged in fire protection activities must be in a paid
status for forty (40) hours in the work week before overtime compensation will be paid.
(4) Police, communications and sewer treatment plant employees:
Regular Pay Times
Regular Work Day 1 1/2
Saturday 1 1/2
Sunday 2
(5) Employees engaged in fire protection activities:
Regular Pay Times
Regular Work 1 1/2
Saturday 1 1/2
Sunday 1 1/2
(6) Police, communications, employees engaged in fire protection activities, and
sewer treatment plant employees must be in a paid status for their normal work week,
as follows, before overtime compensation will be paid:
Police 40 hours
Employees engaged in fire
protection activities
As required by the Fair
Labor Standards Act
Communications 40 hours
Sewer treatment plant 40 hours
74
Page 32 of 57
Ordinance No. 3018-2018
However, overtime may be paid as required by the Fair Labor Standards Act,
recognizing that an employee’s salary is compensation for the normal shifts specified
in this Title.
(c) Compensatory time accumulation shall not exceed the total number of hours equal to
one (1) regular shift of the employee. Once this maximum accumulation has been reached,
all overtime compensation earned by the employee shall automatically be paid in cash.
(d) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND
EXEMPT SERVICES CONSIDERED TO BE] Positions exempt from the provisions of the
Fair Labor Standards Act shall not be bound to a work week of any set number of hours. The
individuals in these positions are expected to work as many hours as the responsibilities of
their positions require. As a result, individuals in these positions shall not be paid overtime
or allowed to accrue compensatory time.
23.25.065 Shift differential pay.
(a) Eligible employees who work certain shifts explained below are entitled to additional
compensation. To be eligible, the scheduled shift must be for a period of less than twenty-
four (24) hours.
(b) Eligible shifts and rates are:
(1) Shift begins after 2:00 p.m. and before 6:00 p.m.—2%.
(2) Shift begins on or after 6:00 p.m. and before 3:00 a.m.—4%.
(c) The above rates will be computed against Step A of the pay range of the employee.
Shift pay is not to be considered in computing annual leave or holiday pay.
(d) Eligible employees shall receive shift differential pay for each eligible shift worked.
(e) Shift pay will be allowed only upon approval of the City Manager when such work
schedule is necessary for the benefit of the City.
23.25.070 Acting positions.
Compensation During Temporary Assignment. An employee who is temporarily assigned to
and performs duties of a position with a higher pay range for a period of forty (40) or more
consecutive regular work hours for employees not performing fire protection activities and fifty-six
(56) or more consecutive regular work hours for employees performing fire protection activities
shall be paid at the first step of the higher pay range, or, the employee shall be granted a one (1)
step pay increase, whichever is higher, for the period worked in the temporary assignment. An
employee who is temporarily assigned to a position with a lower pay range, for any period, shall
not receive a reduction in pay. No such temporary assignment shall exceed six (6) months. Such
acting appointments shall be in writing and the employee must perform the duties of the position.
23.25.080 Promotion.
When an employee in the Classified Service is promoted from one class to another having
a higher pay range, he or she shall receive an increase of not less than one (1) pay step from his
or her former position.
Chapter 23.30 - PERSONNEL POLICIES AND PROCEDURES
23.30.010 General.
(a) Recruitment and appointing authority shall be vested in the City Manager.
75
Page 33 of 57
Ordinance No. 3018-2018
(b) Applicants must be United States citizens or eligible for employment under existing
State and Federal laws and regulations in order to be employed by the City.
(c) Applicants for positions in the [CITY] Classified and Department Head [S]Service need
not reside within the City Limits. Departmental rules shall establish response times required
by that department.
(d) Minimum age for City employment shall be in accordance with State of Alaska laws.
(e) Employment of qualified individuals with a disability shall be encouraged.
(f) Employment rights for veterans shall be in accordance with applicable State and
Federal laws.
(g) Applicants must possess an appropriate valid Alaska State driver’s license, should
employment require operation of a motor vehicle.
(h) Applicants must complete a City application form or submit a resume of sufficient detail
to equate to a City form.
23.30.020 Appointment.
(a) All appointments to vacancies shall be made solely on the basis of merit, efficiency, and
fitness. These qualities shall be determined through careful and impartial evaluation of the
following:
(1) The applicant’s level of training relative to the requirements of the position for which
applied.
(2) The applicant’s physical fitness relative to the requirements of the position for which
applied.
(b) No question in any test or in any application form or by any appointing authority shall be
so framed as to attempt to elicit information concerning race, color, religion, sex, sexual
orientation, national origin, age, disability, marital status, changes in marital status,
pregnancy, parenthood, genetic information or political affiliation for the purposes of
discriminating.
(c) All statements submitted on the employment application or attached resume shall be
subject to investigation and verification.
(d) If required by the department, applicants shall be fingerprinted prior to appointment.
(e) Any job applicant or employee may be required to take a physical examination. In cases
where a physical examination is deemed advisable, the City shall pay the cost of the
examination.
23.30.030 Probationary Period for Employees in the Classified Service.
(a) All original appointments for employees in the Classified Service including those that
result from transfers shall be tentative and subject to a probationary period of not less than
six (6) months consecutive service, except for police, fire, and communications, which shall
be normally twelve (12) months, subject to meeting criteria for certification which may be
accomplished following six (6) months of service and except for seasonal employees whose
probationary period is established by the term of the first season of employment. Promotional
appointment probationary period shall, for all [PERSONNEL]employees in the Classified
Service, be not less than six (6) months.
(b) In cases where the responsibilities of a position in the Classified Service are such that
a longer period is necessary to demonstrate an employee’s qualifications, the probationary
period may be extended; however, no probationary period shall be extended beyond twelve
(12) months, or eighteen (18) months for police, fire, and communications, or one additional
76
Page 34 of 57
Ordinance No. 3018-2018
season for seasonal employees. The employee shall be notified in writing of any extension
and the reasons therefor.
(c) During the first six (6) months of original probationary period, a new employee (including
police, fire, and communications) shall not be eligible for annual leave benefits, but he or she
shall earn annual leave credit from the first day of employment and may take leave for
sickness during that period to the maximum of the amount of leave accrued.
(d) Upon completion of the probationary period, employees in the Classified Service shall
be considered as having satisfactorily demonstrated qualifications for the position, shall gain
regular status, one step in pay raise, and shall be so informed through his or her supervisor.
The employee’s anniversary date shall be the first of the month in which the employee’s
original probation ends. Employees who have gained regular status at the effective date of
the ordinance codified in this section shall have their anniversary dates changed to the first
of the month in which the employee’s present anniversary date falls.
(e) During the probationary period, a new employee [HIRE] hired in the Classified Service
may be terminated at any time without advance notice, without cause, and without appeal.
(f) In the case of promotional appointments, the promoted employee may be demoted at
any time during the probationary period without appeal, provided that the probationary
employee be reinstated in the class designation from which he or she was promoted, even
though this necessitates the layoff of the employee occupying the position.
[23.30.040 EVALUATION.
(A) EVALUATIONS SHALL BE REQUIRED ANNUALLY OF ALL CLASSIFIED
EMPLOYEES AND AFTER EACH SEASON FOR SEASONAL EMPLOYEES.
SUPERVISORS SHALL INDICATE THEREON HIS OR HER RECOMMENDATION AS TO
WHETHER OR NOT THE EMPLOYEE SHOULD BE AWARDED A PAY RAISE IN
ACCORDANCE WITH THE CITY PAY PLAN, KMC 23.55.
(B) APPROVAL OF INCREMENT PAY RAISES ARE VESTED IN THE CITY MANAGER.
23.30.050 Business [H]Hours and [H]Hours of [W]Work.
(a) The hours during which City offices and departments shall normally be open for
business shall be 8:00 a.m. to 5:00 p.m., [PUBLIC WORKS DEPARTMENTS SHALL BE
8:00 A.M. TO 4:30 P.M., EXCEPT SATURDAYS AND SUNDAYS, HOLIDAYS, AND
FURTHER EXCEPTING] Police and Fire [WHICH] shall be open for business twenty-four
(24) hours a day. The Library, Senior Center, Public Works, and Animal Control operations
shall be open for business as authorized by the City Manager.
(b) Public Safety employees, not including administrators, normal work week is:
(1) Police and Communications—four (4) shifts of ten (10) hours per week, two
thousand eighty (2,080) hours annually. When working this shift, first and third days off
shall be treated as Saturdays and the middle day off (the second day) shall be treated
as a Sunday for purposes of paying overtime;
(2) Employees performing fire protection activities as defined by the Fair Labor
Standards Act (FLSA) may work any FLSA approved “7(k) Work Period” approved by
the City Manager.
(c) Sewer Treatment Plant employees work a forty (40) hour week on a shift basis that
allows at least one (1) employee to be at the plant on a given day. When scheduled days off
are two (2) consecutive calendar days, the first day off shall be treated as a Saturday and
the second day off shall be treated as a Sunday for purposes of paying overtime.
77
Page 35 of 57
Ordinance No. 3018-2018
(d) All other employees’ normal work week is forty (40) hours, two thousand eighty (2,080)
hours annually. Standard work day is midnight to midnight succeeding. Standard work week
is midnight Sunday to midnight Sunday succeeding. Operating hours may be adjusted on
timely notice.
[(E) SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND
UNCLASSIFIED SERVICES CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF
THE FAIR LABOR STANDARDS ACT SHALL NOT BE BOUND TO A WORK WEEK OF
ANY SET NUMBER OF HOURS. THE INDIVIDUALS IN THESE POSITIONS ARE
EXPECTED TO WORK AS MANY HOURS AS THE RESPONSIBILITIES OF THEIR
POSITIONS REQUIRE. THESE INDIVIDUALS ARE EXPECTED, HOWEVER, TO
SUBSTANTIALLY CONFORM TO THE NORMAL WORK WEEK AS DESCRIBED IN
SUBSECTION (D).]
23.30.060 Attendance.
(a) Employees shall be in attendance at their work in accordance with the rules regarding
hours of work, holidays, and leaves of absence.
(b) An employee shall not be absent [HIM OR HERSELF] from work for any reason without
prior approval from his or her supervisor. When prior approval is not obtained, an employee,
who for any reason fails to report to work, shall make a sincere effort to notify his or her
supervisor of his or her reason for being absent. If the absence continues beyond the first
day, the employee shall notify the supervisor on a daily basis unless other arrangements
have been made with the supervisor.
(c) Departments shall maintain records of employees’ attendance.
(d) Any unauthorized absence of any employee from duty shall be deemed to be an
absence without pay and may be cause for disciplinary action.
23.30.070 Personnel [R]Records.
(a) The City Manager shall cause a service or personnel record to be maintained for each
employee in the Classified and Department Head service of the City of Kenai.
(b) The personnel record shall show the employee’s name, title of position held, the
department to which assigned, compensation, change in employment status, training
received, and such other information as may be considered pertinent.
(c) A personnel action form shall be used as the single document to initiate and update
personnel records.
(d) Employee personnel records shall be considered confidential and shall be accessible
only to the following:
(1) The employee concerned;
(2) Selected City officials authorized by the City Manager.
(e) Department personnel files should not be developed or maintained, except as working
records; i.e., accumulating data for evaluation reports. Departmental personnel records are
therefore unofficial and have no standing.
23.30.080 Transfers.
Requests from employees for transfers from one department to another shall be made in
writing and shall be directed to the employee’s present department head and referred to the
appropriate department head and the appointing power. Such requests shall be given
78
Page 36 of 57
Ordinance No. 3018-2018
consideration when a suitable vacancy occurs; however, no employee shall be transferred to a
position for which he or she does not possess the minimum qualifications.
23.30.090 Layoff.
If there are changes of duties in the organization, lack of work, or lack of funds, the appointing
authority may lay off employees; however, the appointing authority shall first make every
reasonable effort to integrate those employees into another department by transfer. When layoffs
are required, the appointing authority shall base the decision on relative merit, and shall give due
consideration to seniority in the City service only where the employee’s qualifications and ability
are relatively equal.
23.30.100 Outside employment.
No full-time employee shall accept outside employment, whether part-time, temporary, or
permanent that could reasonably interfere, conflict, or negatively reflect on the City. It is the
individual employee’s responsibility to ensure compliance with this section. Approval of the
individual’s department head is required before acceptance of outside employment.
23.30.110 Travel [E]Expense.
When employees are required to travel outside the City on City business, reimbursement,
subject to advances received, for expenditures incurred shall be determined as follows:
(a) Prior to traveling outside the City, the employee shall obtain permission for the trip and
the mode of travel from the department head.
(b) Travel on official business outside the City by one (1) individual shall be via public
carrier or City-owned vehicle whenever practical. If, for extenuating circumstances, the
employee is authorized to use a private vehicle, total mileage shall be paid at the standard
IRS mileage rate. This rate includes all travel, insurance and fuel.
(c) [THOSE]Classified and Department Head Service employees who [HABITUALLY]often
use their privately-owned vehicle for City business shall be reimbursed thirty dollars ($30.00)
per month, subject to authorization by the City Manager.
(d) The authorized per diem rates are fifty dollars ($50.00) per full twenty-four (24) hour
day, plus lodging expenses. Part days will be reimbursed for actual costs incurred, up to fifty
dollars ($50.00) per day. Claims for lodging expenses will be supported by receipts.
23.30.120 Moving [E]Expense for [N]New [E]Employees.
(a) [WHENEVER A PROFESSIONAL OR TECHNICALLY TRAINED PERSON CHANGES
HIS OR HER PLACE OF RESIDENCE MORE THAN FIFTY (50) MILES, FOR THE
PURPOSE OF ACCEPTING EMPLOYMENT WITH THE CITY, SUCH A PERSON MAY BE
REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES UNDER THE FOLLOWING
CONDITIONS:] At the City Manager’s discretion moving expenses for new employees may
be reimbursed for actual and necessary expenses under the following conditions:
(1) The employee must be appointed to a position or a class for which the City
Manager certifies that such expenditure is necessary to recruit qualified employees and
funded by the Council.
(2) The maximum reimbursable shall be subject to negotiation at the time of an offer
of acceptance of appointment.
[(3) TO BE ELIGIBLE FOR THE TOTAL ALLOWANCE FOR AN EMPLOYEE WHO
IS THE HEAD OF A HOUSEHOLD, HIS OR HER DEPENDENTS MUST ACCOMPANY
79
Page 37 of 57
Ordinance No. 3018-2018
HIM OR HER OR JOIN HIM OR HER WITHIN ONE (1) YEAR OF THE DATE OF HIS
OR HER APPOINTMENT.]
[4](3) New employees who are assisted with their moving expenses shall be required
to sign a Transportation Agreement prior to employment. The Transportation
Agreement stipulates that the employee will reimburse the City for all or part of such
expenditures in the event of voluntarily leaving City service within a period of two [(2)]
years according to the following schedule:
100%—Less than six (6) months.
75%—Six (6) months, but less than twelve (12) months.
50%—Twelve (12) months, but less than eighteen (18) months.
25%—Eighteen (18) months, but less than twenty-four (24) months.
0%—Two (2) years and over.
(b) New employees may not be given an advance against moving expenses without prior
written approval of the City Manager.
23.30.130 In-service training.
(a) The City Manager shall encourage training opportunities for employees and supervisors
in order that services rendered to the City will be more effective. He or she shall assist
department heads in meeting training programs designed to meet immediate City-wide
personnel needs and to prepare employees for promotion to positions of greater
responsibility.
(b) Training sessions may be conducted during regular working hours at the discretion of
department heads.
23.30.140 Relatives in [C]City [S]Service.
(a) Two (2) members of an immediate family (spouse, children, brother, sister, in-laws or
parents) shall not be employed under the same immediate supervisor. Neither shall two (2)
members of an immediate family be employed at the same time regardless of the
administrative department, if such employment will result in an employee supervising a
member of his or her immediate family. This section shall not be construed to prohibit
employment by the City of relatives of City Council members.
(b) The provisions of this section shall apply to promotions, demotions, transfers, reinstate-
ments, and new appointments.
[(C) COHABITATION BY ADULTS OF THE OPPOSITE SEX PRESUMES A FAMILY
RELATIONSHIP AND SHALL BE CONSTRUED AS SUCH.]
Chapter 23.35 - GENERAL CONDUCT, DISCIPLINE, TERMINATION, AND APPEAL
23.35.010 Personal appearance and conduct.
(a) Public relations shall be an integral part of each employee’s job.
(b) All employees shall be neat and clean in appearance and shall conduct themselves in
a manner which is appropriate for an employee in public service. Departmental regulations
may impose reasonable specific standards of dress and appearance.
(c) Employees shall be courteous, efficient and helpful to everyone in their work and shall
do the best job possible on every assignment.
80
Page 38 of 57
Ordinance No. 3018-2018
23.35.020 Causes for [W]Warning, [S]Suspension, or [D]Dismissal.
(a) When an employee[’s] in the Classified Service demonstrates conduct that falls below
desirable standards, he or she may be subject to disciplinary action.
(b) General reasons for which an employee may be disciplined include:
(1) Drinking intoxicating beverages on the job or arriving on the job under the
influence of intoxicating beverages.
(2) Use, consumption, or possession of marijuana (including every compound,
manufacture, derivative, mixture, or preparation of the plant, its seeds or its resin,
including marijuana concentrate), on the job or arriving on the job impaired by the same,
unless the employee has a medical prescription for marijuana from a licensed medical
practitioner as a part of a medical treatment and can perform work unimpaired.
(3) Illegal use, consumption or possession of any controlled or illegal substance on
the job or arriving on the job impaired by the same.
(4) Ingestion, of any prescription or over the counter medication in amounts beyond
the prescribed or recommended dosage on the job, or arriving on the job impaired by
the same. Employees shall notify their immediate supervisor when required to use
prescription medicine that they have been informed has the potential to impair job
performance.
(5) Violation of a lawful duty.
(6) Insubordination.
(7) Breach of discipline.
(8) Being absent from work without first notifying and securing permission from the
employee’s supervisors.
(9) Being habitually absent or tardy for any reason.
(10) Misconduct.
(11) Conviction of a felony or a misdemeanor involving moral turpitude.
(12) Using religious, political, or fraternal influence.
(13) Accepting fees, gifts, or other valuable things in the return for performance of the
employee’s official duties for the City.
(14) Inability to perform the assigned job.
(15) Political activity as restricted by the Charter.
(16) Failure to follow the City’s Drug, Alcohol, and Marijuana policy as set forth in the
City of Kenai Employee Handbook.
(17) Knowingly or negligently failing to follow Federal and State occupational safety
and health regulations and City law and policy regarding the same.
23.35.030 Forms of [D]Disciplinary [A]Action.
(a) Disciplinary action for employees in the classified service ranges from oral or written
reprimands to suspension, demotion, and finally dismissal from the City service, and
depends on the severity of the offense as well as the number and the frequency of previous
acts of misconduct.
(b) It shall be the duty of all City employees to comply with and to assist in carrying into
effect the provisions of the City’s personnel rules and regulations. No employee in the
classified service shall be disciplined except for violation of established rules and regulations,
and such discipline shall be in accordance with procedures established by the personnel
rules and regulations.
81
Page 39 of 57
Ordinance No. 3018-2018
(c) Every department head shall discuss improper or inadequate performance with the
employee in order to correct the deficiencies and to avoid the need to exercise disciplinary
action. Where appropriate, disciplinary action shall be of increasing severity.
(d) A written notice shall be given each employee in the classified service for each written
disciplinary action stating the reasons for the disciplinary action and the date it shall take
effect. The notice shall be given to the employee at the time such action is taken. A copy of
the notice signed by the employee shall be placed in the employee’s personnel file and shall
serve as prima facie evidence of delivery.
(e) All regular employees in the classified service shall have the right to appeal disciplinary
action taken against them within five (5) working days after receipt of notice by employee of
the disciplinary action. Appeals shall be made as grievances in accordance with the
provisions of KMC 23.35.040 except that appeals from suspension, demotion, or dismissal
shall be made directly to a Personnel Board selected from the Arbitration Panel provided in
KMC 23.35.032 by filing such appeal in writing with the City Clerk, setting forth the
background, the disciplinary action, and the reasons why the disciplinary action is felt to be
unjust.
23.35.032 Arbitration [P]Panel.
(a) There is hereby established an Arbitration Panel consisting of twelve (12) members
who shall be chosen by the City Council from nominees made by City employees and by
members of the City Council.
(b) A member of the Arbitration Panel must be a resident of the City of Kenai and must not
hold any other office or position in the government of the City of Kenai.
(c) Members of the panel shall serve for indefinite terms until termination by the Council,
resignation by the member, death, move from the City of Kenai, election, or appointment as
an officer or employee of the City of Kenai, or incapacity of the member.
(d) By adoption of the ordinance codified in this chapter, the city hereby waives any claim
or cause of action it might have against any member of the Arbitration Panel based on his or
her service thereon or on a Personnel Board. Any employee in the classified service, by filing
an appeal under the provisions of this chapter, likewise waives any claim or cause of action
such employee might have against any member of the Arbitration Panel based on his or her
service thereon or on a Personnel Board, and if requested such employee will execute and
file a formal waiver at time of filing appeal.
23.35.034 Procedures on [A]Appeal.
(a) Within five (5) working days after the filing of a written appeal with the City Clerk, the
City Manager or the designee of the City Manager shall file with the City Clerk an answer in
writing to the appeal setting forth any facts which might be in dispute in the appeal, and
setting forth the reasons why the actions are believed to be justified and the City Manager
or his or her designee shall serve a copy of the answer on the employee in person or by
ordinary mail to employee’s home address.
(b) Promptly after the appeal is filed, the City Clerk shall deliver a copy of the appeal to the
City Manager.
(c) The members of the Arbitration Panel shall be listed in alphabetical order, and will be
called in rotation. Any member passed over because of illness or absence, or disqualified by
an appealing employee in the classified service or the administration, shall be treated as
though he or she has served on the Personnel Board and will not be called again until his or
82
Page 40 of 57
Ordinance No. 3018-2018
her name comes up in the normal rotation. As soon as an appeal is filed with the City Clerk,
the City Clerk will make contact and determine the next five (5) members of the panel due
and available for service during the following three (3) weeks, and shall notify the appealing
employee of the five (5) members due for service. The appealing employee will advise the
City Clerk within two (2) working days which member the employee wishes deleted from the
list, and the City Clerk will then notify the City Manager or his or her designee of the four (4)
remaining members due for service. The City Manager or his or her designee will advise the
Clerk within one (1) working day of the name of the member the administration wishes to
delete from the list. Thereafter, the Clerk will notify the two (2) members of their
disqualification and the other three (3) members as to being chosen for service and will
determine a date, time, and place when all three members may assemble for hearing, and
will then notify the appealing employee in the classified service and the City Manager or
designee of such date, time, and place of hearing.
(d) At the time of hearing, the employee in the classified service shall present any written
evidence, oral testimony, or witnesses that he or she desires, and thereafter the City
Manager or designee shall present evidence, oral testimony, or witnesses as he or she
deems fit, following which the parties may continue to present rebuttal testimony alternately
until neither side has anything further to present.
(e) After completion of presentation of testimony, the appealing employee in the classified
service may make any statement he or she desires by way of argument, which may be
answered by the City Manager or designee, and the appealing employee shall then have a
final closing argument if he or she so desires.
(f) If any member of the Personnel Board feels it necessary or desirable, he or she may
call additional witnesses or call for presentation of additional testimony, adjourning the
hearing to a future time for such presentation if necessary.
(g) After presentation of all evidence and arguments, the Personnel Board shall go into
executive session to make a determination of the appeal, and the Personnel Board shall
make written findings of fact and conclusions as to the justness of the disciplinary action.
(h) There shall be no formal restrictions on the kind of or form of evidence presented so
long as it is pertinent to the appeal and is not unduly repetitive, but the Personnel Board by
majority vote may limit repetitive evidence and may restrict evidence to matters pertinent to
the hearing and to evidence which they would find credible.
(i) The Personnel Board has power to uphold the disciplinary action, to set aside the
disciplinary action completely restoring the appealing employee in the classified service to
his or her former position and to any and all pay which may have been lost because of the
disciplinary action, or if the Personnel Board feels it necessary in the interest of justice that
some disciplinary action be taken but that the particular disciplinary action was too extreme,
it shall determine what the proper disciplinary action should be.
(j) The decision of the Personnel Board may be made by a majority of the Board and shall
be final and binding on the employee and on the City.
(k) Copies of the appeal, the answer to the appeal, and the written decision of the
Personnel Board shall become a part of the personnel file of the appealing employee.
23.35.040 Grievance [P]Procedure.
(a) [THE]For employees in the classified service, the City shall promptly consider and
equitably adjust employee grievances relating to employment conditions and relationships.
Furthermore, the City desires to adjust the causes of grievances informally, both supervisors
83
Page 41 of 57
Ordinance No. 3018-2018
and non-supervisory employees in the classified service are expected to resolve problems
as they arise.
(b) The following steps shall be followed in submitting and processing a grievance for
employees in the classified service:
(1) Step 1—The aggrieved employee in the classified service or group of employees
in the classified service shall orally present the grievance to the immediate supervisor
within five (5) working days of the occurrence, not including the date of presentation.
(2) Step 2—If the grievance is not settled in Step 1, it shall be prepared in detail, shall
be reduced to writing, shall be dated, shall be signed by the aggrieved employee in the
classified service or group of employees in the classified service, and shall be presented
to the department head within five (5) working days after the supervisor’s oral reply is
given, not including the day that the answer is given.
(3) Step 3—If the grievance is not settled in Step 2, the written grievance shall be
presented along with all pertinent correspondence, records, and information
accumulated to date to the City Manager within seven (7) working days after the
department head’s response is given, not including the day that the response is given.
The City Manager shall meet with the aggrieved employee or group of employees, the
immediate supervisor and the department head. The City Manager shall reply to the
grievance in writing within seven (7) working days of the date of presentation of the
written grievance. The decision of the City Manager shall be final and binding on the
employee or group of employees.
(c) If the grievance procedures are not initiated within the time limits established by this
section, the grievance shall be considered not to have existed.
(d) Any grievance not taken to the next step of the grievance procedure shall be considered
settled on the basis of the last reply made and received in accordance with the provisions of
this section.
(e) If the City fails to meet or answer any grievance within the time limits prescribed for
such action by this section, such grievance shall automatically advance to the next step. If
the City fails to meet or answer any grievance on the last step of the grievance procedure
within the time limits prescribed for such action by this section, it shall be deemed that the
City has considered the grievance to be in favor of the grievant and shall resolve the matter
accordingly.
(f) The time limits prescribed in this section for the initiation and completion of the steps of
the grievance procedure may be extended by mutual consent of the parties so involved.
Likewise, any step in the grievance procedure may be eliminated by mutual consent. Mutual
consent shall be indicated in writing and shall be signed by all parties involved. No employee
shall be disciplined or discriminated against in any way because of the employee’s proper
use of the grievance procedure.
23.35.050 Resignation.
(a) To resign in good standing, an employee shall give the appointing authority not less
than ten (10) working days prior notice of such resignation unless the appointing authority
agreed to permit a shorter period of notice because of extenuating circumstances. The notice
of resignation shall be in writing and shall contain the reasons for leaving the City service.
(b) Failure to comply with this section shall be entered in the employee’s service record and
may be cause for denying future employment with the City.
84
Page 42 of 57
Ordinance No. 3018-2018
23.35.060 Re-employment.
(Ords. 336-77(a), 537, Repealed Ord. 1254)
23.35.070 Cost consciousness.
(a) City employees shall practice every economy possible in the discharge of their duties.
(b) Employees are encouraged to recommend to their supervisors work procedures which
will result in a cost saving or improved service to the public.
23.35.080 Safety.
(a) The City Manager shall be responsible for the development and maintenance of a safety
program, equal to, but not limited to, OSHA requirements. Such program shall include safety
regulations and discipline controls.
(b) Department heads, supervisors, and employees shall guard the safety of themselves,
fellow employees, and the public.
(c) When accidents occur on City property, the employee shall contact his or her supervisor
immediately and the supervisor shall complete an accident form. In case of a motor vehicle
accident, the Police Department shall also be notified immediately.
(d) The City Manager shall be notified of all accidents involving City employees and City
equipment as soon as possible and not later than the next work day.
23.35.090 Legal liability.
(a) Employees shall abide by all laws and regulations which govern the performance of their
duties, and shall perform their duties as reasonable, prudent persons. Defense of legal
claims against an employee relating to an official status with the City, shall be the
responsibility of the City.
(b) If an employee is grossly negligent in the performance of duties and responsibilities and
if an accident results from such negligent performance of duties and responsibilities or if a
court of law finds that the employee willfully exceeded his or her scope of duty and
responsibility, the employee may be held personally and legally liable.
Chapter 23.40 - BENEFITS
23.40.010 General.
(a) All non-temporary, full-time,[AND] non-temporary part-time (fifteen (15) hours and over
per week) classified and Department Head Service employees are entitled to the following
benefits, except for medical and hospital insurance which shall be available to non-temporary
employees working no less than twenty-five (25) hours per week, as specified in this article.
(b) An employee hired under the State of Alaska’s Mature Alaskans Seeking Skills Training
(MASST) program shall receive only Social Security, Medicare (KMC 23.40.130), Workers
Compensation (KMC 23.40.110) and family leave (KMC 23.40.130) benefits. The other
benefits in KMC 23.40 shall not apply to persons hired under the MASST program. The
hourly wage paid a MASST employee shall be as set by the State of Alaska, but not less
than minimum wage.
(c) Seasonal employees are eligible to participate in the State Public Employees’
Retirement System.
85
Page 43 of 57
Ordinance No. 3018-2018
23.40.020 Holidays.
(a) Employees shall be entitled to the holidays listed below with pay. Full-time employees
shall receive regular compensation; part-time employees shall be compensated in proportion
to the number of hours they are normally scheduled to work.
(1) New Year’s Day
(2) Washington’s Birthday (the third Monday in February)
(3) Memorial Day (the last Monday in May)
(4) Independence Day
(5) Labor Day
(6) Alaska Day
(7) Veterans Day
(8) Thanksgiving Day
(9) Day after Thanksgiving
(10) Christmas Day
(11) A floating holiday subject to individual choice of each employee with five (5)
working days notice to, and approval of, his or her immediate supervisor.
(b) If any such holiday falls on a Sunday, the following Monday shall be given as a holiday.
If such holiday falls on a Saturday, the preceding Friday shall be given as a holiday.
(c) Public Safety and Sewer Treatment Plant employees who normally work holidays shall
receive a payment for authorized holidays at one and one-half (1-1/2) times their normal
hourly pay as follows:
Fire (7(k) work period): 11.2 hours pay per holiday.
Police, Communications, and Fire (forty (40) hour week): eight(8) hours pay per holiday.
Sewer Treatment Plant Employees (forty (40) hour week): eight(8) hours pay per holiday.
Holidays which occur during annual leave shall be charged against such leave.
23.40.030 Annual [L]Leave.
(a) Annual leave is a combined vacation and sick leave.
(b) Accrual rate:
(1) Full-time [CLASSIFIED] employees except certain Fire Department employees:
7.3846 hours bi-weekly—first two (2) years of service.
8.3077 hours bi-weekly—three (3) through five (5) years of service.
9.2308 hours bi-weekly—six (6) through ten (10) years of service.
10.1538 hours bi-weekly—more than ten (10) years of service.
(2) Fire (7(k) work period):
10.3385 hours bi-weekly—first two (2) years of service.
11.6308 hours bi-weekly—three (3) through five (5) years of service.
12.9231 hours bi-weekly—six (6) through ten (10) years of service.
14.2154 hours bi-weekly—more than ten (10) years of service.
(c) Annual leave is charged on an hour-for-hour basis; i.e., normal work day of eight (8)
hours would be charged at eight (8) hours annual leave; twelve (12) hour work day, twelve
(12) hours annual leave; ten (10) hour work day, ten (10) hours annual leave; twenty-four
(24) hour work day, twenty-four (24) hours annual leave.
(d) Leave continues to accrue during the period of time an employee is on paid leave
except during periods of terminal leave (leave time after which the employee does not intend
to return to work). Leave does not accrue during periods of leave without pay.
86
Page 44 of 57
Ordinance No. 3018-2018
(e) Accrued and unused leave may be carried over from one (1) year to the next for the
purpose of accumulating an annual leave account or reserve. The maximum leave hours
that may be accrued is six hundred forty (640) hours for classified, [AND] unclassified, and
Department Head service employees, and eight hundred ninety-six (896) hours for Fire
Department employees working a 7(k) work period.
(f) Annual leave may be used for any purpose desired by the employee. Incidental
absences for sickness as unplanned are not controllable. However, planned absences must
be coordinated with and approved by the appropriate department head.
(g) It is required that each employee use a minimum of eighty (80) hours of leave per
calendar year for employees working forty (40) hours per week, and one hundred twelve
(112) hours for employees working a 7(k) work period, and affect appropriate coordination
with the department head. If actual hours used are less than the minimum requirement, then
the difference shall be deducted from available leave hours without any compensation to the
employee.
(h) Excess leave above the amount authorized for accrual (subsections (a) through (e))
existing on December 31st shall automatically be paid at the then existing rate for the
individual employee.
(i) Department heads shall schedule vacations for their respective employees with due
consideration for the desires of the employees and the work requirements facing the
department. Vacation schedules may be amended to allow the department to meet
emergency situations.
(j) In the event of significant illness or injury not covered by workers’ compensation, or
absence due to training or education an employee on exhausting annual leave may, with the
approval of the City Manager, borrow up to a six (6) month entitlement (i.e., thirteen (13) x
7.3846 hours) to avoid a no-pay status. In the event the person’s employment with the City
ends prior to the borrowed leave being repaid, the employee must reimburse the City for the
value of any leave not repaid. The City may deduct the value of any leave not repaid from
the employee’s final paycheck.
(k) Part-time employees working fifteen (15) hours a week or more shall accrue at the same
rate as a full-time employee except on a proportional basis as to hours.
(l) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND
EXEMPT SERVICES]Employees considered to be exempt from the provisions of the Fair
Labor Standards Act shall have annual leave charged on an eight (8) hour/whole day basis.
If any such employee is present for work during any portion of a day, that employee shall not
be charged annual leave for that day. Conversely, if any such employee is absent from her
or his normal place of work for an entire day (excluding Saturdays, Sundays, and holidays)
that employee will be charged eight (8) hours of annual leave for that day.
23.40.035 Bona fide employer-sponsored medical leave sharing arrangement.
(a) Intent. It is the intent of the City to provide a bona fide employer-sponsored medical
leave sharing arrangement, allowing its eligible employees to donate accrued annual leave
to employees who are eligible to receive such leave for medical emergencies as follows:
(1) Requests for leave donations must be made by the employee through the Human
Resource office in writing. Approved requests will be forwarded by the Human Resource
office to all employees with a cut-off date for donations. Forwarded requests shall only
include information that:
87
Page 45 of 57
Ordinance No. 3018-2018
(A) The requesting employee has made a request for leave under this section of
code;
(B) The amount of leave requested;
(C) Generic procedural information; and
(D) No protected health information or specific factual information may be
disclosed.
(2) Only accrued annual leave may be donated. Donations must be in whole hour
increments of no less than two (2) hours. Employees donating leave must have and
maintain a minimum of forty (40) hours of accrued annual leave in their leave accounts.
The identity of employees donating or not donating leave will not be disclosed.
Probationary employees and employees working less than fifteen (15) hours a week
may not donate or receive donated leave.
(3) All leave will be donated into an employee leave bank and received on an hour-
for-hour basis without consideration of individual City wages.
(4) Leave donations will be used in order of receipt by the City’s Human Resource
office. Leave will be transferred as needed into the employee leave bank. Employees
receiving donated leave may not cash out any donated leave.
(5) Only employees who have exhausted all annual leave are eligible to receive
donated leave. Donated leave can only be used for a medical emergency defined as a
condition of the employee or employee’s spouse, parent, or child, including
bereavement for a spouse, parent or child, that will require the prolonged absence,
including intermittent absences, of the employee from duty and will result in a
substantial loss of income to the employee, because the employee will have exhausted
all annual leave.
(6) Donated leave will not count towards the minimum hours of leave each employee
must use each calendar year.
(7) The City Manager shall create any necessary complimentary policies and forms to
implement this section of code.
23.40.040 Terminal [L]Leave.
Upon separation during initial probation (first six (6) months for Police, Fire and
Communication), accrued annual leave shall not be granted nor paid to [THE] employee’s in the
classified service. In other separations, accrued leave shall be paid in a lump sum. The salary or
hourly rate to be used in computing the cash payment shall be the rate which is being received
by the employee on the date the resignation/separation is signed by the employee.
23.40.050 Leave of absence without pay.
(a) Leave without pay may be granted to an employee upon recommendation of the
department head and approval of the City manager for up to one hundred eighty (180) days.
Each request for such leave shall be considered in the light of the reasons for the request
and of the needs of the organization. Leave of absence without pay is not authorized or
permitted for other employment. Leave without pay shall not be requested nor granted until
such time as all accrued annual leave has been exhausted, except when an employee is
absent and drawing workers’ compensation pay.
(b) If an employee uses more than thirty (30) days total leave without pay during his or her
leave year, his or her merit anniversary and length of service dates shall be advanced on the
calendar as follows: The number of days the leave without pay exceeds thirty (30) days are
88
Page 46 of 57
Ordinance No. 3018-2018
added to the anniversary date to arrive at an extended anniversary date. A new anniversary
date is then established on the first day of the month closest to the extended anniversary
date.
(c) During a period of leave without pay, the employee’s benefits shall be in abeyance. Cost
of maintenance of health and related benefits will be at the personal expense of the employee
and must be prepaid via the City to insure continued coverage.
23.40.060 Leave of [A]Absence with [P]Pay.
(a) Employees may request leave of absence with pay for:
(1) Witness or Jury Duty. When a City employee is called for jury duty or is
subpoenaed as a witness, he or she shall not suffer any loss of his or her regular City
compensation during such absence; however, he or she shall be required to transfer
any compensation he or she receives for the performance of such duty to the City. Time
not worked because of such duty shall not affect annual leave accrual.
(2) Military Leave. Employee’s shall be eligible for military leave or associated benefits
in compliance with State and Federal law. [AN EMPLOYEE WHO HAS COMPLETED
THE PROBATIONARY PERIOD AND WHO IS A MEMBER OF THE NATIONAL
GUARD OR RESERVE COMPONENT OF THE ARMED FORCES OF THE UNITED
STATES OR OF THE UNITED STATES PUBLIC HEALTH SERVICE SHALL BE
ENTITLED, UPON APPLICATION, TO A LEAVE OF ABSENCE FROM CITY SERVICE
FOR ONE (1) PERIOD NOT EXCEEDING FIFTEEN (15) CONSECUTIVE DAYS IN
ANY ONE (1) CALENDAR YEAR. HOWEVER, BECAUSE POLICE, FIRE, AND
COMMUNICATIONS EMPLOYEES HAVE A TWELVE (12) MONTH PROBATIONARY
PERIOD RATHER THAN THE SIX (6) MONTH PROBATIONARY PERIOD FOR
OTHER CLASSIFIED EMPLOYEES, THEY SHALL BE ELIGIBLE FOR MILITARY
LEAVE AFTER SIX (6) MONTHS OF SERVICE. SUCH LEAVE SHALL BE GRANTED
WITHOUT LOSS OF TIME, PAY (DIFFERENCE BETWEEN REGULAR AND
MILITARY PAY INCLUDING COLA, BUT NOT INCLUDING OTHER REGULAR
ALLOWANCES), OR OTHER LEAVE, AND WITHOUT IMPAIRMENT OF MERIT
RATINGS OR OTHER RIGHTS OR BENEFITS TO WHICH HE OR SHE IS ENTITLED.
MILITARY LEAVE WITH PAY SHALL BE GRANTED ONLY WHEN AN EMPLOYEE
RECEIVES BONA FIDE ORDERS TO TEMPORARY ACTIVE OR TRAINING DUTY,
AND SHALL NOT BE PAID IF THE EMPLOYEE DOES NOT RETURN TO HIS OR
HER POSITION IMMEDIATELY FOLLOWING THE EXPIRATION OF THE PERIOD
FOR WHICH HE OR SHE WAS ORDERED TO DUTY.]
(3) Conferences, Conventions and Other Related City Business. Decisions
concerning attendance at conferences, conventions, or other functions pertaining to
City business at City expense shall be made by the department heads with the approval
of the City Manager. Permission shall be granted on the basis of an employee’s
participation in or the direct relationship of the function to the City. Members of
professional societies may be permitted to attend meetings of their society when such
attendance is considered to be in the best interest of the City.
(4) Death in the Immediate Family. Leave of absence with pay is provided to assist
an employee who must be absent from work as a result of a death in the immediate
family. The employee’s absence would be for funeral attendance, or to handle matters
arising due to the death of an immediate family member, that cannot practicably be
taken care of outside of regular business hours. Upon the City Manager’s approval,
89
Page 47 of 57
Ordinance No. 3018-2018
employees shall be entitled to the following leave, which will not directly affect their
personal leave account: three (3) working days, up to twenty-four (24) hours maximum.
23.40.070 Educational opportunities.
(a) The City shall reimburse an employee for the full amount of tuition for courses directly
related to the employee’s work and conducted outside the employee’s regular working hours,
provided that:
(1) Funds for such expenditures are available in the current budget;
(2) The employee has made application for approval of the course to his or her
department head and the department head subsequently gives such approval; and
(3) The employee submits evidence of satisfactory completion of the course; and
(4) The employee is not receiving reimbursement for tuition from any other source.
(b) Courses which are only offered during regular working hours maybe approved by the
department head with full tuition reimbursement therefor provided time off can be arranged
conveniently and reasonable arrangements can be made to make up time off.
(c) The City shall allow time off with pay and shall reimburse an employee for the expenses
of attending classes, lectures, conferences, or conventions when attendance is on an
assignment basis with prior approval of the employee’s department head.
(d) Normally, the cost of textbooks and technical publications required for such courses
shall be the responsibility of the employee. If the City purchases any of the textbooks and
publications for such courses, the textbooks and publications shall become the property of
the City.
23.40.080 Retirement.
Eligible employees are required to participate in the State Public Employees’ Retirement
System (PERS) unless the employee’s category or class of employment has been exempted by
amendment to the City’s PERS Participation Agreement. Amendment to the City’s PERS
Participation Agreement for the purpose of exempting a class or category of employees must be
authorized by Resolution of the City Council.
23.40.090 Retirement age.
As authorized and required by Public Employees Retirement System.
23.40.095 Supplemental retirement.
All employees with six (6) months of service regularly scheduled to work fifteen (15) hours or
more per week shall be eligible to participate in a supplemental retirement program to be selected
by the City Manager. The City’s contribution on behalf of each eligible employee shall be four
percent (4%) of the first thirty-seven thousand five hundred dollars ($37,500.00) of base wages
earned in a calendar year. The contribution shall not apply to additional compensation to
employees, such as overtime pay, holiday pay, and qualification pay.
23.40.100 Social security.
Employees hired after April 1, 1986 must participate in the Medicare portion of Social Security
taxes, as required by the Federal government.
90
Page 48 of 57
Ordinance No. 3018-2018
23.40.110 Industrial accidents.
All employees shall be covered under the State of Alaska workers’ compensation program
for industrial accidents and disease. Benefits include medical treatment and care as well as
disability compensation during the periods of time lost from the job.
23.40.120 Medical and hospital insurance.
Medical and hospital insurance shall be provided by a group policy for all employees with a
percentage of plan costs paid by the City and a percentage paid by the employee unless the
employee declines such coverage. Life, major medical, dental, and vision insurance are included
as part of group insurance. The percentage of plan costs paid by the City and employees,
respectively, shall be approved by the Council annually during the budget process, or as
otherwise necessary after consideration of a recommendation and any alternatives submitted by
the City Manager.
23.40.130 Family leave.
(a) An employee is eligible to take family leave if the employee has been employed for: (1)
at least thirty-five (35) hours a week for at least six (6) consecutive months immediately
preceding the leave; or (2) at least seventeen and one-half (17.5) hours per week for twelve
(12) consecutive months immediately preceding the leave; or (3) at least one (1) year
immediately preceding the leave during which the employee has worked at least one
thousand two hundred fifty (1,250) hours. The leave may be unpaid leave. However, the
employee must exhaust all accrued annual leave before unpaid leave is allowed. The City
shall permit an employee to take family leave for a total of eighteen (18) work weeks within
a twelve (12) month period because of a serious health condition or pregnancy and childbirth,
adoption or foster placement. The right to take family leave for pregnancy and childbirth,
adoption or foster placement of a child expires one (1) year after the birth or placement of
the child. An eligible employee is entitled to take family leave:
(1) Because of pregnancy and the birth of a child of the employee or the placement of
a child, other than employee’s stepchild, with the employee for adoption or foster care;
(2) In order to care for the employee’s child, spouse, or parent who has a serious
health condition; in this paragraph, “child” includes the employee’s biological, adopted,
or foster child, stepchild, or legal ward; and
(3) Because of the employee’s own serious health condition.
(b) If a parent or child of two (2) employees employed by the City has a serious health
condition, the City is not required to grant family leave to both employees simultaneously.
(c) During the time that an employee is on leave under this section, the employer shall
maintain at its expense coverage under any group health plan at the level and under the
conditions that coverage would have been provided if the employee had been employed
continuously from the date the leave began to the date the employee returns from leave.
(d) At the expiration of leave granted under this section, the City shall restore the employee
to the same or a substantially similar position with the same benefits, pay, and other terms
and conditions of employment.
23.40.140 Employee transfer.
(a) A pregnant employee may request a transfer to a suitable position under this section.
The City may not fill the position with a person other than the requesting employee until the
91
Page 49 of 57
Ordinance No. 3018-2018
employer has offered the position to the employee and the employee has refused the offer.
A position is suitable if:
(1) It is an existing unfilled position in the same administrative division in which the
employee is currently employed and is less strenuous or less hazardous than the
employee’s current position;
(2) Transfer is recommended by a licensed health care provider;
(3) The employee is qualified and immediately able to perform the duties of the
position; and
(4) The transfer will not subject the City to legal liability under an employment contract.
(b) An employer shall compensate an employee who receives a transfer under this section
at a rate, as adjusted by changes to compensation that apply generally to the work force, at
which the position into which the employee transfers is compensated.
[23.40.150 DEFINITIONS.
IN KMC 23.40.130 THROUGH 23.40.140:
(A) “CHILD” MEANS AN INDIVIDUAL WHO IS:
(1) UNDER EIGHTEEN (18) YEARS OF AGE; OR
(2) EIGHTEEN (18) YEARS OF AGE OR OLDER AND INCAPABLE OF SELF-CARE
BECAUSE OF MENTAL OR PHYSICAL DISABILITY.
(B) “HEALTH CARE PROVIDER” MEANS: (1) A PHYSICIAN LICENSED UNDER AS
08.64, OR A DENTIST LICENSED UNDER AS 08.36, OR A PSYCHOLOGIST LICENSED
UNDER AS 08.86; OR (2) ANY OTHER PERSON DETERMINED BY THE SECRETARY OF
LABOR TO BE CAPABLE OF PROVIDING HEALTH CARE SERVICES.
(C) “LICENSED HEALTH CARE PROVIDER” MEANS A PHYSICIAN LICENSED UNDER
AS 08.64 OR A PSYCHOLOGIST LICENSED UNDER AS 08.86.
(D) “PARENT” MEANS A BIOLOGICAL OR ADOPTIVE PARENT, A PARENT-IN-LAW,
OR A STEP-PARENT.
(E) “SERIOUS HEALTH CONDITION” MEANS AN ILLNESS, INJURY, IMPAIRMENT, OR
PHYSICAL OR MENTAL CONDITION THAT INVOLVES: (1) INPATIENT CARE IN A
HOSPITAL, HOSPICE, OR RESIDENTIAL HEALTH CARE FACILITY; OR (2) CONTINUING
TREATMENT OR CONTINUING SUPERVISION BY A HEALTH CARE PROVIDER.
(F) “SPOUSE” MEANS SOMEONE WITH WHOM THE EMPLOYEE HAS AN EXISTING
VALID MARRIAGE AS SET FORTH UNDER AS 25.05 AND SPECIFICALLY DOES NOT
INCLUDE AN UNMARRIED DOMESTIC PARTNER OF THE EMPLOYEE.
(G) “IMMEDIATE FAMILY” INCLUDES MOTHER, FATHER, SPOUSE, CHILDREN,
BROTHER, SISTER, MOTHER/FATHER-IN-LAW. THE CITY MANAGER MAY
DETERMINE “OTHER INDIVIDUALS” ARE IMMEDIATE FAMILY, PARENTS, CHILDREN,
SIBLINGS AND OTHERS INVOLVED IN THE SIGNIFICANT RAISING.]
Chapter 23.45 - PERFORMANCE EVALUATION
23.45.010 Purpose.
The primary purpose of the employee performance evaluation program is to inform
employees how well they are performing and to offer constructive criticism on how they can
improve their work performance. Performance evaluation shall also be considered in decisions
affecting pay advancement, promotions, demotions, dismissals, order of layoff, order of re-
employment, placement, and training needs.
92
Page 50 of 57
Ordinance No. 3018-2018
23.45.020 Periods of Evaluation.
Each employee [IN THE CLASSIFIED SERVICE] shall have his or her performance
evaluated at the following periods:
(a) End of Probationary Period. Each employee in the classified service shall be evaluated
thirty [(30)] days prior to the completion of his or her probationary period. The employee must
have an overall evaluation of at least “Meets Expectations” in order to become permanent
or, in the case of seasonal employees, be eligible for the next season’s employment.
(b) Annual. Each employee shall receive an annual performance evaluation thirty [(30)]
days prior to his or her anniversary date[.] and thirty days prior to the end of each season for
seasonal employees.
(c) Time of Separation. Each employee shall be evaluated at the time of separation and
such record shall become part of his or her permanent personnel file.
23.45.030 Performance [E]Evaluators.
(a) Rating Officer. The rating officer shall normally be the employee’s immediate
supervisor. The rating officer shall be responsible for completing a performance evaluation
report at the time prescribed for each employee under his or her supervision.
(b) Reviewing Officer. The reviewing officer shall normally be the rating officer’s immediate
supervisor or department head. The reviewing officer shall review the performance
evaluation report completed by each rating officer under his or her jurisdiction before the
report is discussed with the employee. The reviewing officer shall consider the performance
evaluations completed by the rating officer in evaluating the rating officer’s performance.
(c) Department Heads shall be evaluated by the City Manager.
23.45.040 Review of [P]Performance [R]Reports for Employees in the Classified Service.
The rating officer shall discuss the performance evaluation report with the employee in the
classified service before the report is made part of the employee’s permanent record. If the rating
officer plans to recommend the denial of an in-grade pay increment or recommend an
extraordinary increment, the report must be discussed with the reviewing officer and the City
Manager prior to review with the employee.
23.45.050 Unsatisfactory [E]Evaluation for Employees in the Classified Service.
Employees in the classified service who receive an overall rating of “Unsatisfactory” or
“Needs Improvement” on their annual evaluation shall not be eligible to be advanced a step
increment at appropriate annual, biennial or quadrennial anniversary dates. Employees in the
classified service who receive two [(2)] consecutive overall ratings of “unsatisfactory” shall be
subject to dismissal.
23.45.060 Performance [E]Evaluation [A]Appeal [P]Procedure for Employees in the
Classified Service.
[EMPLOYEES’ P]Performance evaluation reports for employees in the classified service
shall not be subject to the standard grievance procedure. Employees in the classified service shall
have the right to appeal their evaluation in accordance with the following procedure:
(a) Step 1. If, after a review of his or her performance evaluation report with the rating
officer, the employee feels that the report is unfair, he or she may request a meeting with the
reviewing officer by checking the appropriate section on the report. The rating officer will then
93
Page 51 of 57
Ordinance No. 3018-2018
immediately forward the report to the reviewing officer who will arrange to meet with the
employee within five (5) working days after receiving the report. The reviewing officer will
then forward a decision in writing to the employee within five (5) working days after the date
of their meeting.
(b) Step 2. In the event that the employee is dissatisfied with the decision of the reviewing
officer, he or she may, within five (5) working days of receipt of the decision, appeal his or
her performance evaluation report, in writing, to the City Manager. The City Manager shall,
within five (5) working days, meet and discuss the report with the employee. The City
Manager will, in writing, make a decision within ten (10) working days from the date of their
meeting. The decision of the City Manager will be final.
Chapter 23.50 - CLASSIFICATION PLAN
23.50.010 Employee [C]Classification.
City employees shall be classified by Class, Title, and Pay Range as follows:
CLASS CODE CLASS TITLE RANGE
(a) SUPERVISORY AND PROFESSIONAL
101 City Manager NG
102 City Attorney NG
103 City Clerk NG
104 Finance Director* 24
105 Public Works Director* 23
106 Police Chief* 23
107 Fire Chief* 22
112 Airport Manager* 20
117 City Planner 16
118 Information Technology (IT) Manager 18
119 Human Resource Specialist/Assistant to City
Manager
15
120 Library Director* 18
121 Senior Center Director* 18
122 Parks and Recreation Director* 17
123 Human Resources Officer 16
(b) ADMINISTRATIVE SUPPORT
203 Administrative Assistant I 8
204 Accounting Technician I 10
205 Accounting Technician II 11
206 Accountant 16
210 Administrative Assistant II 9
211 Administrative Assistant III 10
214 Library Assistant 6
218 Library Aide 2.5
94
Page 52 of 57
Ordinance No. 3018-2018
CLASS CODE CLASS TITLE RANGE
219 Data Entry Clerk 1.1
(c) PUBLIC SAFETY
302 Fire Fighter 13
303 Police Lieutenant 20
304 Police Sergeant 18
305 Police Officer 16
306 Public Safety Dispatcher 9
307 Fire Engineer 15
311 Fire Captain 16
312 Fire Marshal 17
313 Communications Supervisor 12
314 Police Trainee 16/21
315 Battalion Chief/Safety Officer 17
316 Chief Animal Control Officer 11
317 Animal Control Officer 9
(d) PUBLIC WORKS
401 Building Official 15
402 Shop Foreman 16
403 Street Foreman 16
404 Sewer Treatment Plant Operator 13
405 Water and Sewer Operator 13
407 Equipment Operator 11
408 Shop Mechanic 14
409 Equipment Lead Operator 14
410 Water and Sewer Foreman 16
412 Building Maintenance Technician 12
413 Sewer Treatment Plant Lead Operator 14
414 Sewer Treatment Plant Foreman 16
417 Airport Operations Specialist 11
418 Airport Operations Supervisor 15
419 Building Maintenance Lead Technician 13
420 Water and Sewer Lead Operator 14
(e) GENERAL SERVICES
504 Parks, Beautification and Recreation Operator 9
505 Parks, Beautification and Recreation Laborer 2.4
506 Cook 2.4
507 Activities/Volunteer Coordinator 2.4
508 Meals/Driver 2.4
509 Kitchen Assistant 2.2
95
Page 53 of 57
Ordinance No. 3018-2018
CLASS CODE CLASS TITLE RANGE
510 Outreach Worker 1.1
511 Janitor 2.4
512 Driver 1
* Department Head[S] Service
1 For work performed after February 21, 2009, while attending the Alaska Public Safety
Academy in Sitka, a police trainee shall be a paid at a Range 2, Step F. Because of a fluctuating
and unpredictable training schedule, he or she shall be considered to work twelve (12) hours
per day from Monday through Saturday and eleven (11) hours on Sunday, or the actual number
of hours worked, whichever is greater. The normal work schedule at the academy shall be five
(5) eight (8) hour shifts from Monday to Friday rather than four (4) ten (10) hour shifts as stated
in KMC 23.50.050(b)(l).
Chapter 23.55 - PAY PLAN
23.55.010 Exempt salaries.
Salaries of City Manager, City Attorney, and City Clerk shall be negotiated by the Council
and may be set by motion of Council.
23.55.015 – Department Head Service Salaries.
Salaries of employees in the Department Head Service shall be set by the City Manager
within the range approved by the City Council as approved through the budget process.
23.55.020 Compensation Structure by Grade for Employees in the Classified Service.
(a) Compensation structure by grade for employees in the classified service is hereby
established in accordance with the table that is appended to this title and which may be
amended, modified, or replaced by ordinance, in which case a copy of the amended,
modified, or replacement table shall be substituted for the prior table and placed in the code
at the end of this title.
(b) On completion of the probationary period, each permanent full-time employee in the
classified service, except seasonal employees, shall be advanced one [(1)] step. At
succeeding anniversary dates, subject to evaluation, employees in the classified service may
be advanced a step increment subject to City Manager approval. The time period normally
between steps B to C to D to E to F is one [(1)] year. The time normally between Steps F to
AA to BB to CC is two [(2)] years.
(c) On completion of the probationary period, each permanent part-time employee in the
classified service and seasonal employee shall be advanced one [(1)] step. At appropriate
biennial or quadrennial anniversary dates thereafter, subject to the employee’s most recent
annual evaluation being “Meets Expectations” or better, the employee, including seasonal
employees, may be advanced a step increment. The time period normally between steps B
to C to D to E to F is two [(2)] years. The time period normally between steps F to AA to BB
to CC is four [(4)] years.
96
Page 54 of 57
Ordinance No. 3018-2018
23.55.030 Qualification pay.
(a) In recognition of professional development, personal time, and effort of the individual to
achieve same, the following annual recognition entitlement is authorized, payable on a pro
rata monthly basis.
(b) This recognition entitlement is not considered when calculating hourly rates for annual
leave or holiday pay.
(1) Police Department. Certification in accordance with State of Alaska Certification
Standards.
Police Officer
Intermediate Certification $ 900/year
Advanced Certification $1,800/year
Police Sergeant
Intermediate Certification $ 900/year
Advanced Certification $1,800/year
Police Lieutenant
Advanced Certification $1,800/year
Police Chief
Advanced Certification $1,800/year
(2) Fire Department.
(i) Recognition entitlements for an associate degree in fire science is four hundred
eighty dollars ($480.00) per year. Eligible grades are fire fighter, engineer, and
captain.
(ii) Recognition entitlements for EMT certification for eligible grades of fire fighter,
engineer, and captain are as follows:
EMT I Instructor $ 250/year
EMT II $ 500/year
EMT III $1,000/year (includes EMT II pay)
EMT-Paramedic $1,500/year (includes EMT II & III pay)
(iii) Recognition entitlements for driver/operator qualified personnel for eligible
grades of fire fighter as follows:
Driver/Operator
Qualified
One (1) pay range increase (Pay range
13 to Pay range 14)
(3) Water and Sewer Utility. Certification in accordance with the State ofAlaska
Certification Standards:
W & S II $ 300/year
97
Page 55 of 57
Ordinance No. 3018-2018
W & S III $ 480/year
(4) City Clerk’s Office. Certification in accordance with International Institute of
Municipal Clerks.
Certified Municipal Clerk 2.5% of the employee’s base pay
23.55.040 Uniform allowance.
(a) The following annual allowances are established to defer the cost of uniform cleaning,
maintenance, and replacement for second and succeeding years of service:
Police $800
Fire $500
Animal Control $500
Dispatch $300
Payment shall be made in advance in July and January installments.
(b) On hiring, the respective department head shall issue from stock or purchase from
appropriate funds a basic uniform and equipment issue.
(c) Public Works Departments, Water and Sewer, and Animal Control personnel shall be
authorized to purchase from appropriated funds, safety shoes, hard hats, and other OSHA
required items. Laundry service will also be provided for those clothing items furnished.
23.55.50 Hourly Rates.
(a) Hourly rates for employees in the classified service not exempted from minimum wage
and overtime provisions of the Fair Labor Standards Act (with various experience, skills, and
responsibilities) are hereby established in accordance with the table that is appended to this
title and which may be amended, modified, or replaced by ordinance, in which case a copy
of the amended, modified, or replacement table shall be substituted for the prior table and
placed in the Code at the end of this title.
23.55.060 Stand-by [P]Pay.
(a) Where employees in the classified service are placed on a stand-by status, they shall
be entitled to a 5% rate of pay computed against Step A of the pay range of the employee
for each hour in stand-by status.
(b) To be eligible for stand-by pay, an employee in the classified service must formally be
placed on stand-by status, with the approval of the City Manager, and the proper
documentation indicating such approval placed in the employee’s personnel records. An
employee in stand-by status must be available for call-outs, must be in a location whereby
the responsible City personnel can communicate with him or her, and comply with any other
requirements of the approved stand-by pay.
23.55.070 Call-out [P]Pay.
When employees in the classified service are called out to work outside of normal working
hours, they shall be paid a minimum of two [(2)] hours pay at overtime rates. Overtime hours
worked immediately prior to, or after, normal working hours will not be considered as a “call-out.”
98
Page 56 of 57
Ordinance No. 3018-2018
23.55.080 Longevity [P]Pay for Employees in the Classified Service.
All regular employees in the classified service who have received an overall rating of “Meets
Expectations” or better in their last performance evaluation and who have been at Step CC for a
period of at least two (2) years as of July 31st shall be paid a longevity bonus of two percent (2%)
of his or her annual pay rate (i.e., excluding overtime). The longevity pay shall be paid just once
a year on the August payroll, except that the longevity bonus in 2008 shall be paid after the
effective date of the ordinance codified in this section but prior to the end of the calendar year
2008. Notwithstanding the above, any employee in the classified service who has received a
range increase or a non cost of living pay increase within their current pay range within the twelve
(12) months prior to July 31st is not eligible for a longevity pay bonus.
FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR ALL CLASSIFIED AND
DEPARTMENT HEAD SERVICE EMPLOYEES EXCLUDING THOSE ENGAGED IN FIRE
PROTECTION ACTIVITIES
Range A B C D E F AA BB CC
Step
1 10.27 10.53 10.78 11.04 11.30 11.55 11.81 12.07 12.32
1.1 10.78 11.05 11.32 11.59 11.86 12.13 12.40 12.67 12.94
2 11.47 11.76 12.04 12.33 12.62 12.90 13.19 13.48 13.76
2.1 12.08 12.38 12.68 12.99 13.29 13.59 13.89 14.19 14.50
2.2 12.76 13.08 13.40 13.72 14.04 14.36 14.67 14.99 15.31
2.3 13.41 13.75 14.08 14.42 14.75 15.09 15.42 15.76 16.09
2.4 15.66 16.05 16.44 16.83 17.23 17.62 18.01 18.40 18.79
2.5 17.74 18.18 18.63 19.07 19.51 19.96 20.40 20.84 21.29
3 17.85 18.30 18.74 19.19 19.64 20.08 20.53 20.97 21.42
4 18.75 19.22 19.69 20.16 20.63 21.09 21.56 22.03 22.50
5 19.69 20.18 20.67 21.17 21.66 22.15 22.64 23.14 23.63
6 20.66 21.18 21.69 22.21 22.73 23.24 23.76 24.28 24.79
7 21.71 22.25 22.80 23.34 23.88 24.42 24.97 25.51 26.05
8 22.80 23.37 23.94 24.51 25.08 25.65 26.22 26.79 27.36
9 23.94 24.54 25.14 25.74 26.33 26.93 27.53 28.13 28.73
10 25.12 25.75 26.38 27.00 27.63 28.26 28.89 29.52 30.14
11 26.38 27.04 27.70 28.36 29.02 29.68 30.34 31.00 31.66
12 27.72 28.41 29.11 29.80 30.49 31.19 31.88 32.57 33.26
13 29.08 29.81 30.53 31.26 31.99 32.72 33.44 34.17 34.90
14 30.55 31.31 32.08 32.84 33.61 34.37 35.13 35.90 36.66
15 32.07 32.87 33.67 34.48 35.28 36.08 36.88 37.68 38.48
16 33.67 34.51 35.35 36.20 37.04 37.88 38.72 39.56 40.40
17 35.35 36.23 37.12 38.00+ 38.89 39.77 40.65 41.54 42.42
18 37.12 38.05 38.98 39.90 40.83 41.76 42.69 43.62 44.54
19 38.97 39.94 40.92 41.89 42.87 43.84 44.82 45.79 46.76
20 40.93 41.95 42.98 44.00 45.02 46.05 47.07 48.09 49.12
21 42.99 44.06 45.14 46.21 47.29 48.36 49.44 50.51 51.59
22 45.11 46.24 47.37 48.49 49.62 50.75 51.88 53.00 54.13
23 47.38 48.56 49.75 50.93 52.12 53.30 54.49 55.67 56.86
24 49.81 51.06 52.30 53.55 54.79 56.04 57.28 58.53 59.77
99
Page 57 of 57
Ordinance No. 3018-2018
FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR CLASSIFIED EMPLOYEES
ENGAGED IN FIRE PROTECTION ACTIVITIES
Range A B C D E F AA BB CC
Step
13 20.77 21.29 21.81 22.33 22.85 23.37 23.89 24.40 24.92
14 21.82 22.37 22.91 23.46 24.00 24.55 25.09 25.64 26.18
15 22.91 23.48 24.06 24.63 25.20 25.77 26.35 26.92 27.49
16 24.06 24.66 25.26 25.86 26.47 27.07 27.67 28.27 28.87
17 25.26 25.89 26.52 27.15 27.79 28.42 29.05 29.68 30.31
FISCAL YEAR 2018 OPERATING BUDGET SALARY SCHEDULE FOR ALL DEPARTMENT
HEAD SERVICE EMPLOYEES
18 $77,209 – 101,907
19 $79,185 – 106,987
20 $85,134 – 112,387
21 $89,419 – 118,037
22 $93,829 – 123,849
23 $98,550 – 130,096
24 $103,604 – 136 754
100
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Scott Bloom
DATE: April 23, 2018
SUBJECT: Recommended Amendments to Ordinance No. 3018-2018 –Personnel
Regulations
____________________________________________________________________________
This memorandum provides suggested amendments to Ordinance 3018-2018 for purposes of
clarity and consistency. The suggested amendments are provided in red below.
1. The first amendment is to Section 2 of the Ordinance which amends the definitions in
Chapter 23.05- General Provisions. The amendments are intended to provide clarity in the
definition of “Department Head Service.”
23.05.070 Definitions.
As used in Title 23, the following terms shall have the meanings indicated:
(a) Unclassified Service. The unclassified service shall include all elected officials, City
Manager, City Attorney, City Clerk, seasonal and temporary employees. Members of boards,
committees, commissions, volunteers, contractors, and consultants are not employees.
(b) Classified Service. All paid employees not in the unclassified [SERVICE] or Department
Head Service.
(c) Department Head Service. The Department Head Service shall include employees who
are directly responsible to the City Manager for the administration of one or more
departments and who have been hired or completed a probationary period after June 1,
2018. Employees responsible to the City Manager for the administration of one or more
departments who have been hired and completed a probationary period before June 1, 2018
may enter the Department Head Service by written request to the City Manager.
101
Page 2 of 5
[(C)](d) Full-Time. Employees scheduled to work forty (40) hours per week (except certain
Fire Department employees who work an average of fifty-six (56) hours per week) are
considered full time.
[(D)](e) Part-Time. Employees scheduled to work less than forty (40) hours per week.
[(E)](f) Regular. Employees who have completed the probationary period. They may be
assigned to work a full-time or part-time schedule.
[(F)](g) Seasonal. Employees who perform seasonal work for a pre-established period of
not more than six (6) months during a twelve (12)-month period. Seasonal Employees may
be assigned a full time or part-time schedule and are eligible for Public Employee Retirement
Benefits but are ineligible for other benefits and holiday pay. Seasonal Employees who have
completed the probationary period may return to the seasonal position each season subject
to performance evaluations, general conduct and discipline, personnel rules and policies of
the City, layoff, reorganization and other business needs of the City.
[(G)](h) Temporary. Employees who are hired for a pre-established period, usually during
peak workloads or for vacation relief and for not more than six (6) months. They may be as-
signed to work a full-time or part-time schedule. They are ineligible for benefits and holiday
pay.
[(H)](i) Probationary Period. Normally six (6) months, except for Police, Communications
and Fire, which is normally twelve (12) months. This period can be extended up to, but no
longer than, twelve (12) months and eighteen (18) months, respectively.
[(I)](j) Department. The smallest functional budgetary unit of the City government
established by the City Council.
[(J) DEPARTMENT HEAD. A CLASSIFIED EMPLOYEE DIRECTLY RESPONSIBLE TO
THE CITY MANAGER FOR THE ADMINISTRATION OF ONE (1) OR MORE
DEPARTMENTS.]
(k) Promotion. An advancement of an employee from one (1) job classification to a higher
job classification within the same department.
(l) Transfer. The movement of an employee from one (1) department to another
department, regardless of job classification.
(m) [GENERAL GOVERNMENT EMPLOYEE. A CITY EMPLOYEE OTHER THAN A
PUBLIC SAFETY EMPLOYEE.
(N)] Public Safety Employee. A person employed in the Police, Fire, or Communications
Department.
[(O)](n) Supervisor. Any person who is responsible to a higher divisional or department
level of authority and who directs the work of others.
[(P)](o) City Manager. A person directly responsible to the City Council who is authorized
and directed to exercise the powers and fulfill the duties as specified in the Charter and
Municipal Code of the City of Kenai.
102
Page 3 of 5
[(Q)](p) City Attorney. A person directly responsible to the City Council. He or she is the
chief legal advisor to the Council and all other officers, departments and agencies of the City
government in matters relating to their official powers and duties.
[(R)](q) City Clerk. An officer of the City, appointed by the Council, for an indefinite period
of time and shall serve as clerical officer of the Council.
[(S)](r) Grievance. An employee’s oral or written expression of dissatisfaction with some
aspect of his or her employment, a management decision affecting him or her, or an alleged
violation of his or her rights for the purpose of attempting to gain an adjustment of said cause
of dissatisfaction.
2. The second amendment is to clarify the pay schedule in Chapter 23.55- Pay Plan. Current
Department Heads will remain classified employees the suggested amendment reflects
this.
FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR ALL CLASSIFIED [AND
DEPARTMENT HEAD SERVICE] EMPLOYEES EXCLUDING [THOSE] EMPLOYEES
ENGAGED IN FIRE PROTECTION ACTIVITIES
Range A B C D E F AA BB CC
Step
1 10.27 10.53 10.78 11.04 11.30 11.55 11.81 12.07 12.32
1.1 10.78 11.05 11.32 11.59 11.86 12.13 12.40 12.67 12.94
2 11.47 11.76 12.04 12.33 12.62 12.90 13.19 13.48 13.76
2.1 12.08 12.38 12.68 12.99 13.29 13.59 13.89 14.19 14.50
2.2 12.76 13.08 13.40 13.72 14.04 14.36 14.67 14.99 15.31
2.3 13.41 13.75 14.08 14.42 14.75 15.09 15.42 15.76 16.09
2.4 15.66 16.05 16.44 16.83 17.23 17.62 18.01 18.40 18.79
2.5 17.74 18.18 18.63 19.07 19.51 19.96 20.40 20.84 21.29
3 17.85 18.30 18.74 19.19 19.64 20.08 20.53 20.97 21.42
4 18.75 19.22 19.69 20.16 20.63 21.09 21.56 22.03 22.50
5 19.69 20.18 20.67 21.17 21.66 22.15 22.64 23.14 23.63
6 20.66 21.18 21.69 22.21 22.73 23.24 23.76 24.28 24.79
7 21.71 22.25 22.80 23.34 23.88 24.42 24.97 25.51 26.05
103
Page 4 of 5
8 22.80 23.37 23.94 24.51 25.08 25.65 26.22 26.79 27.36
9 23.94 24.54 25.14 25.74 26.33 26.93 27.53 28.13 28.73
10 25.12 25.75 26.38 27.00 27.63 28.26 28.89 29.52 30.14
11 26.38 27.04 27.70 28.36 29.02 29.68 30.34 31.00 31.66
12 27.72 28.41 29.11 29.80 30.49 31.19 31.88 32.57 33.26
13 29.08 29.81 30.53 31.26 31.99 32.72 33.44 34.17 34.90
14 30.55 31.31 32.08 32.84 33.61 34.37 35.13 35.90 36.66
15 32.07 32.87 33.67 34.48 35.28 36.08 36.88 37.68 38.48
16 33.67 34.51 35.35 36.20 37.04 37.88 38.72 39.56 40.40
17 35.35 36.23 37.12 38.00+ 38.89 39.77 40.65 41.54 42.42
18 37.12 38.05 38.98 39.90 40.83 41.76 42.69 43.62 44.54
19 38.97 39.94 40.92 41.89 42.87 43.84 44.82 45.79 46.76
20 40.93 41.95 42.98 44.00 45.02 46.05 47.07 48.09 49.12
21 42.99 44.06 45.14 46.21 47.29 48.36 49.44 50.51 51.59
22 45.11 46.24 47.37 48.49 49.62 50.75 51.88 53.00 54.13
23 47.38 48.56 49.75 50.93 52.12 53.30 54.49 55.67 56.86
24 49.81 51.06 52.30 53.55 54.79 56.04 57.28 58.53 59.77
FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR CLASSIFIED EMPLOYEES
ENGAGED IN FIRE PROTECTION ACTIVITIES
Range A B C D E F AA BB CC
Step
13 20.77 21.29 21.81 22.33 22.85 23.37 23.89 24.40 24.92
14 21.82 22.37 22.91 23.46 24.00 24.55 25.09 25.64 26.18
15 22.91 23.48 24.06 24.63 25.20 25.77 26.35 26.92 27.49
16 24.06 24.66 25.26 25.86 26.47 27.07 27.67 28.27 28.87
17 25.26 25.89 26.52 27.15 27.79 28.42 29.05 29.68 30.31
FISCAL YEAR 2018 OPERATING BUDGET SALARY SCHEDULE FOR ALL DEPARTMENT
HEAD SERVICE EMPLOYEES
104
Page 5 of 5
18 $77,209 – 101,907
19 $79,185 – 106,987
20 $85,134 – 112,387
21 $89,419 – 118,037
22 $93,829 – 123,849
23 $98,550 – 130,096
24 $103,604 – 136 754
3. Delete all of Section 46. This section is no longer needed based on the change in
23.05.070-Definitions, of the Department Head Service. This Change would require the
renumbering of Sections 47 and 48 as well.
[Section 46. Application: The provisions of this Ordinance will only apply to Department
Heads who have been hired by the City and completed a probationary period by June 1, 2018.
Department Heads who completed their probationary period before June 1, 2018, may
individually chose to enter the Department Head Service and have the Ordinance apply to
their employment by written notice to the City Manager.]
Section 46. 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 47. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
30 days after adoption.
105
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3019-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATION IN THE GENERAL AND MUNICIPAL
ROADWAY IMPROVEMENTS CAPITAL PROJECT FUNDS AND AWARDING A CONTRACT
TO COMPLETE THE RYAN’S CREEK OUTFALL REPAIR PROJECT TO FOSTER
CONSTRUCTION, INC.
WHEREAS, Ryan’s Creek Outfall Repair Project will repair two culverts and stabilize erosion that
is threatening to undermine Frontage Road; and,
WHEREAS, $86,024 was previously appropriated for the project with current available funds of
$73,244 after completion of the design; and,
WHEREAS, on April 10, 2018 the following bids were received:
BIDDERS BASE BID TOTAL
Foster Construction, LLC 99,542.00
BMGC 128,518.20
Chumley's, Inc. 156,410.00
Steppers Construction 171,990.00
Engineers Estimate 76,270.00
and,
WHEREAS, The bids for this project came in higher than the estimate provided by the engineer
for the project. The engineers estimate was $72,370 and the lowest bid was $99,542 which is a
difference of $27,172; and,
WHEREAS, Foster Construction, LLC, submitted the lowest responsive bid; and,
WHEREAS, award of the bid to Foster Construction, LLC, would be in the best interest of the City;
and,
WHEREAS, the recommendation from City Administration is to appropriate an additional $27,172
for the project and award the agreement to Foster Construction, LLC, for the bid amount of
$99,542.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
106
Ordinance No. 3019-2018
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Section 1. That the estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $27,172
Increase Appropriations –
Non-Departmental Transfer to Other Funds $27,172
Municipal Roadway Capital Projects Fund –
Increase Estimate Revenues –
Transfer from General Fund $27,172
Increase Appropriations -
Construction $27,172
Section 2. That the City Manager is authorized to execute a contract for the project entitled
“Ryan’s Creek Outfall Repair” to the successful low bidder, Foster Construction, Inc. for the cost
proposal amount of $99,542.
Section 3. That the City Manager is authorized to issue a purchase order to complete the
project in that amount of $99,542 which includes contingency funds of $5,000 in excess of the
contract amount for completion of the project should the funds become necessary as a result of
change orders during construction.
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 2nd day of May, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, City Clerk
Introduced: April 18, 2018
Enacted: May 2, 2018
Effective: May 2, 2018
107
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Michael Wesson – Acting Public Works Director
DATE: April 12, 2018
SUBJECT: Ordinance 3019-2018 – Ryan’s Creek Outfall Repair Project
The purpose of this memo is to recommend adoption of an ordinance 3019-2018 appropriating
additional funds for this project and to enter into a contact with Foster Construction to perform the
work.
The bids for this project were recently received and came in higher than the estimate provided by
the Engineer for the project. The initial estimate was $72,370 and the lowest bid was $99,542
which is a difference of $27,172. I talked to the engineer at length about the bids and estimate
and why the unit prices came in higher than the estimate. After these discussions and
discussions with the contractors, it was determined the higher bids were due to the steep grades
and restricted site for access that were not considered in the engineer’s estimate.
This project is nessessary because the current erosion is threatening to undermine Frontage
Road and I highly recommend adopting this ordinance. After several discussions with the project
engineer, I think the bid from Foster Construction is a fair bid.
Thank you for your consideration
108
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3020-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS IN THE WATER & SEWER SPECIAL
REVENUE AND WATER & SEWER IMPROVEMENTS CAPITAL PROJECT FUNDS AND
AUTHORIZING A CHANGE ORDER TO THE CONTRACT WITH THE STATE OF ALASKA
DEPARTMENT OF TRANSPORTATION FOR THE PROJECT ENTITLED “SPUR HIGHWAY
WATER MAIN REPLACEMENT – SPUR HIGHWAY AND SHOTGUN DRIVE”.
WHEREAS, the City of Kenai entered an agreement with the State of Alaska Department of
Transportation to allow them to bid and construct the upsizing and replacement of the water main
under the Kenai Spur Highway at Shotgun Drive during Phase 1 of Kenai Spur Highway
Rehabilitation Project; and,
WHEREAS, $92,225 was previously appropriated for this project of which $84,174 remains and
is available for construction; and,
WHEREAS, the bids for this project were recently received by the State of Alaska Department of
Transportation and came in higher than the previously agreed upon price for the project. The
initial agreement was $75,116 and based on the bids, the revised amount will be $113,794, which
is a difference of $38,678; and,
WHEREAS, upsizing the water main from the existing 12” to a 16” line in this location is needed
to accommodate the future growth of the City’s water system; and,
WHEREAS, conducting this work after completion of the Spur Highway Rehabilitation Project
would require extraordinary methods including boring under the Highway for placement of the
line, resulting in significantly higher costs to the City; and,
WHEREAS, approving the Change Order with the State of Alaska Department of Transportation
would be in the best interest of the City; and,
WHEREAS, the recommendation from City Administration is to appropriate an additional $38,678
for the project and sign a Change Order with the State of Alaska Department of Transportation
for the sum of $38,678: and
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
109
Ordinance No. 3020-2018
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Section 1. That the estimated revenues and appropriations be increased as follows:
Water & Sewer Special Revenue Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $38,678.00
Increase Appropriations –
Water Department - Transfer to Other Funds $38,678.00
Water & Sewer Improvements Capital Projects Fund –
Increase Estimate Revenues –
Transfer from Water & Sewer Special Revenue Fund $38,678.00
Increase Appropriations -
Construction $38,678.00
Section 2. That the City Manager is authorized to execute a change order to the contract for
the project entitled “Spur Highway Water Main Replacement – Spur Highway and Shotgun Drive”
with the State of Alaska, Department of Transportation in the amount of $38,678.
Section 3. That the City Manager is authorized to issue a purchase order to complete the
project in that amount of $124,347.00 which includes contingency funds of $10,553.00 in excess
of the contract amount for completion of the project should the funds become necessary as a
result of change orders during construction.
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 2nd day of May, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, City Clerk
Introduced: April 18, 2018
Enacted: May 2, 2018
Effective: May 2, 2018
110
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Michael Wesson – Acting Public Works Director
DATE: April 12, 2018
SUBJECT: Ordinance 3020-2018 – Spur Highway Water Main Replacement
The purpose of this memo is to recommend adoption of Ordinance 3020-2018 appropriating
additional funds for the water main replacement project and to authorize a change order to the
contract with the State of Alaska Department of Transportation (DOT).
The Spur Highway Rehabilitation project was recently bid by DOT and the water main
replacement was included as part of the bid. By doing this, the asphalt and subgrade within the
roadway structural section will be removed and replaced at DOT’s expense as opposed to the
City’s. The actual bid came in $38,678.00 higher than our previously estimated cost for the
project.
After further review of the project, it would be financially prudent to approve a change order for
the above referenced amount and continue with the project as part of the DOT’s Spur Highway
project. If the city were to undertake this project at a later date, the costs would be substantially
more.
Thank you for your consideration
111
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2018-18
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A
CONTRACT FOR EXTERNAL AUDIT SERVICES TO BDO USA, LLP.
WHEREAS, Section 5-10 of Kenai’s Municipal Charter provides: “[t]he Council shall order an
independent audit of the accounts and evidences of financial transactions of the Department of
Finance and of all other departments, offices, and agencies keeping separate or subordinate
accounts or making financial transactions, as of the end of every fiscal year at least, and the audit
shall be reported to the Council and to the City Administrator.”; and,
WHEREAS, on March 23, 2018 the following proposals to perform external audit services for the
City were received:
Proposer Score
BDO USA, LLP. 353.48
Altman, Rogers & Co. 345.00; and,
WHEREAS, BDO USA, LLP provided the highest ranked proposal; and,
WHEREAS, award of the contract to BDO USA, LLP is in the best interest of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to execute a contract for the City’s external
audit services to the highest ranking proposer, BDO USA, LLP for a period of three-years with
opportunity to extend the agreement for two, one-year extensions upon mutual consent of the
City and BDO USA, LLP.
Section 2. That the City Manager is authorized to issue a purchase order in the amount of
$46,250 for completion of the FY2019 external audit and the contract amount will increase in
subsequent years by a percentage equal to the Anchorage Consumer Price Index for the
preceding calendar year.
Section 3. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, City Clerk
112
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: April 20, 2018
SUBJECT: Resolution 2018-18
____________________________________________________________________________
The purpose of this memo is to recommend approval of Resolution 2018-18. Resolution 2018-
18 will award a three-year contract, with opportunity for two, one-year extensions by mutual
consent, for external audit services to BDO USA, LLP.
A request for proposal was released on March 1, 2018 and two responses were received on
March 23, 2018. A committee of four reviewed and ranked the proposals based on experience,
technical qualifications, responsiveness, references and cost with the following results:
Proposer Score
BDO USA, LLP 353.48
Altman, Rogers & Co. 345.00
BDO USA, LLP provided a cost proposal of $51,750 for year one of the contract and Altman,
Rogers & Co. bid $37,000. After determining BDO USA LLP the highest ranked proposal, the
administration negotiated a fee reduction of $5,500 with BDO for a first year contract amount not
to exceed $46,250. The fee amount for subsequent years will increase by the increase in the
Anchorage Consumer Price Index. Ranking of proposers was based on submitted fees and not
the negotiated rate. The subsequent negotiations would have increased the difference in scoring
but was not considered. Altman, Rogers & Co. has an office in Soldotna meeting the definition of
local bidder per KMC 7.15.130(b). The selection process utilized was a request for proposal and
not a bid. No local bidder preference was provided and if applied would not have changed the
ranking of proposers.
BDO USA, LLP was the highest ranking proposer and execution of a contract for external audit
services with BDO USA, LLP is recommended.
113
_____________________________________________________________________________________
Sponsored by: Council Member Molloy
CITY OF KENAI
RESOLUTION NO. 2018 - 19
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING POLICY
2016-01, PROCEDURES FOR COMMISSIONS, COMMITTEES AND COUNCIL ON AGING –
TO PROVIDE FOR RECORDING PLANNING AND ZONING COMMISSION WORK SESSIONS
AND JOINT WORK SESSIONS BETWEEN COMMISSIONS, COMMITTEES, AND/OR
COUNCIL ON AGING.
WHEREAS, the City has a policy for electronic recording of Council meetings and Council work
sessions but there is no written policy or other established procedures regarding the electronic
recording of Planning and Zoning work sessions and joint work sessions between Commissions,
Committees and the Council on Aging; and,
WHEREAS, electronic recordings provide for openness and transparency of government and a
safeguard for the development of minutes and summaries which are the official records of
meetings and work sessions; and,
WHEREAS, it is good public policy and in the City’s best interest to adopt a written policy
establishing general procedures for the electronic recording of Planning and Zoning work
sessions, and joint work sessions between Commissions, Committees and the Council on Aging.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That City Council Policy 2016-01, Procedures for Commissions, Committees, and
Council on Aging, attached, is approved as amended.
Section 2. That this resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, City Clerk
114
POLICY NO. 2016-01 (Amended): Procedures for Commissions, Committees and
Council on Aging
Purpose
The purpose of this policy is to establish procedures, other than those provided in KMC 1.90, for
Commissions, Committees and Council on Aging.
Scope
This policy applies to all advisory bodies appointed by the City Council. The Planning and Zoning
Commission is also regulated by KMC 14.05.
Policy
1. Appointment and Reappointments
a. An application for consideration of appointment or reappointment to a Commission,
Committee or Council on Aging must be submitted to the City Clerk.
b. The Mayor nominates an applicant for appointment or reappointment and by
motion, the City Council confirms.
2. Establishing Subcommittees
a. A subcommittee of a commission or committee may be established for a specific
function upon approval of Council.
3. Meeting Schedules
a. Commission, Committee and Council on Aging meeting schedule is as follows:
Commission/
Committee/Council on Aging
Meeting Schedule Scheduled Meeting Days
Airport Commission Monthly Second Thursday of the month
Beautification Committee Meetings held January,
April, May, September and
October
Second Tuesday of the month
Council on Aging Monthly Second Thursday of the month
Harbor Commission Monthly First Monday after first council
meeting of the month
Library Commission
(Suspended as of 2015,
Ordinance No. 2815-2015)
N/A N/A
Parks & Recreation
Commission
Monthly, except for July First Thursday of the month
Planning & Zoning Commission Twice monthly Second & fourth W ednesdays
115
Kenai City Council
Policy No. 2016-01 (Amended)
Page 2 of 4
b. All regular meetings will be held in the Kenai City Hall Council Chambers with the
exception of the Council on Aging who shall meet at the Senior Center, unless
offsite arrangements are approved by the Clerk. Exceptions for subcommittee
meetings may be made with the advance notice of the City Clerk.
c. Regularly scheduled meetings shall begin at 7:00 p.m. unless otherwise approved
by Council via motion, with the exception of the Council on Aging, which begins at
4:30 p.m.
d. Commissions, Committees and Council on Aging may, with the City Clerk’s
approval and notification to Council and the City Manager, hold special meetings
(for a specific purpose) on an as-needed basis.
e. Commissions, Committees and Council on Aging meetings may be cancelled by
the City Clerk, with notification to Council and the City Manager, if cancellation is
warranted, i.e. lack of agenda items, pre-knowledge of lack of a quorum, etc.
f. Any additional commissions or committees established will be set and incorporated
into the meeting schedule by the City Council.
4. Minutes & Meeting Recordings
a. With exception of the Planning & Zoning Commission, taking notes and
electronically recording regular meetings shall be the responsibility of department
liaison to the specific meeting body. The Clerk’s Office shall take notes and record
the meeting for the Planning and Zoning Commission regular meeting.
b. Summary minutes of regular meetings will be produced by the Clerk’s Office from
the department liaisons notes and provided to the City Council as official records
of the meetings.
c. Regularly scheduled meetings, Planning and Zoning work sessions, and joint work
sessions between any Committee, Commission, and/or Council on Aging shall be
electronically recorded and retained pursuant to the record retention policy. [WITH
THE EXCEPTION OF PLANNING & ZONING COMMISSION SHALL BE KEPT
FOR TWO YEARS.]
[d. PLANNING & ZONING COMMISSION MEETING AND RECORDINGS SHALL BE
KEPT FOR 6 YEARS.]
5. Work Sessions
a. Work sessions may not be held without the approval of the City Clerk unless they
occur on the night of and at the time of a regularly scheduled advertised meeting.
Notification of scheduled work session shall be provided to City Council and the
City Manager. Work session may be requested by Council, the liaison or Chair of
the body.
b. During work sessions, only items on the work session agenda may be discussed
and no formal actions may be taken.
116
Kenai City Council
Policy No. 2016-01 (Amended)
Page 3 of 4
c. At a minimum, work sessions shall be posted on the Official City Bulletin Board in
Kenai City Hall and on the city website at least five days prior to the meeting.
6. Basic Meeting Information
a. All meetings shall be open to the public.
b. At a minimum, meeting notices shall be posted on the Official City Bulletin Board
in Kenai City Hall and on the city website at least five days prior to the meeting.
c. Meeting agenda’s shall be established by the Chair and the department liaison.
The City Council, by motion, may refer an item to be placed on an agenda seeking
a recommendation from the respective Committee, Commission, or Council on
Aging.
d. The department liaison shall submit items for the agenda and supporting
documentation to the Clerk’s Office one week prior to a meeting, no later than 2:00
p.m. The Clerk’s Office will compile meeting material and distribute. The Planning
& Zoning Commission is exempt from this requirement as the Planning Department
advertises, compiles meeting material and distributes for its commission.
e. Rules of Order: Pursuant to KMC 1.15.120(b) and KMC 1.90.050(c), in all matters
of parliamentary procedure, Robert's Rules of Order, as revised shall be applicable
and govern all meetings, except as specified in KMC 1.15.060 (Motions), KMC
1.15.100 (Speaking), and KMC 1.15.110 (Voting).
f. Quorum: No meeting may proceed in the absence of a quorum, i.e. a quorum is
more than one-half of the board/commission (quorum of the whole).
g. Motion: Pursuant to KMC 1.15.060(k), all motions require a second. A majority of
votes is required to pass a motion.
h. Speaking: In a meeting, members should be recognized by the Chair before
speaking.
i. When is it a Meeting: If any public business is discussed collectively by four or a
majority of members of one body.
7. Council Participation
a. Any Council Member may attend a meeting or work session of any Commission,
Committee or the Council on Aging. Only the Council Liaison to the respective,
Commission, Committee or Council on Aging may speak on behalf of the Council.
Participation by Council Members at Commission, Committee or Council on Aging
meetings should be limited to introduction of legislation by one Council Legislative
Sponsor. Participation by any other Council Members, written or oral, is discouraged.
b. Exception: Council Members may fully participate in any joint work session or other
meeting with a Commission, Committee, or the Council on Aging when it has been
noticed that the City Council will be in attendance, or there has been a specific
117
Kenai City Council
Policy No. 2016-01 (Amended)
Page 4 of 4
delegation of authority by the Council for a member(s) to represent the Council.
Effective Date: May 2, 2018 Approved by Resolution 2016-03
Amended by Resolution 2017-24
Amended by Resolution 2018-19
BRIAN GABRIEL SR., MAYOR
ATTEST:
Jamie Heinz, City Clerk
118
119
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2018 - 20
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, CONSENTING TO AN
AMENDMENT EXTENDING THE TIMEFRAME FOR LEGACY ELECTRIC LLC, LESSEE, TO
COMPLETE IMPROVEMENTS AS SET FORTH IN THE ORIGINAL LEASE OF AIRPORT
RESERVE LANDS.
WHEREAS, the City of Kenai and Legacy Electric LLC entered into a Lease of Airport Reserve
Lands for City-owned lands described as follows:
Lot Two (2), Block (1), GENERAL AVIATION APRON; and,
WHEREAS, the Lease was recorded on March 25, 2015, under document number 2015-002299-
0, in the Kenai Recording District, Third Judicial District, State of Alaska; and,
WHEREAS, Article XIV Section (B), Subsection (1), of the Lease included the following provision:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land
development and construction of Permanent Improvements including removal of waste
material previously buried on the site and construct two (2) 6-plex unit t-hanger heated
complex, by no later than December 1, 2016, with an appraised value of at least
$500,000.00. 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 $500,000.00.
The evidence must be submitted to the City within sixty (60) days of the completion of the
development and improvements, but by no later than September 1, 2016; and,
WHEREAS, Legacy Electric LLC completed construction on the first t-hanger; however,
construction has not begun on the second t-hanger; and
WHEREAS, on March 26, 2018, Legacy Electric LLC submitted an application requesting the City
of Kenai grant an extension for construction of the second hanger until December 1, 2018; and
WHEREAS, at their regular meeting on April 11, 2018, the Planning and Zoning Commission
reviewed the Amendment to Lease and recommend approval by the City Council; and
WHEREAS, at their regular meeting on April 12, 2018, the Airport Commission reviewed the
Amendment to Lease and recommended approval by the City Council.
120
Resolution No. 2018-20
Page 2 of 2
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That a First Amendment to Lease of Airport Reserve Lands be entered into by the
City of Kenai, Lessor, and Legacy Electric LLC, Lessee, amending Article XIV Section (B),
Subsection (1), as follows:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land
development and construction of Permanent Improvements including removal of waste
material previously buried on the site and construct two (2) 6-plex unit t-hanger
heated complex, by no later than December 1, 2018, with an appraised value of at least
$500,000.00. 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 $500,000.00.
The evidence must be submitted to the City within sixty (60) days of the completion of the
development and improvements.
Section 2. Except as expressly modified or stated herein, all other terms and conditions of the
Lease remain in full force and effect.
Section 3. That this resolution takes effect immediately upon adoption.
ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, City Clerk
121
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Willie Anderson, Planning Assistant
DATE: April 24, 2018
SUBJECT: Resolution No. 2018-20 – First Amendment to Lease of Airport Reserve
Lands – Lot 2, Block 1, General Aviation Apron – Legacy Electric LLC
____________________________________________________________________________
The City of Kenai, Lessor, and Legacy Electric LLC, Lessee entered into a Lease of Airport
Reserve Lands on January 12, 2015, which included the following provision:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land
development and construction of Permanent Improvements including removal of
waste material previously buried on the site and construct two (2) 6-plex unit t-
hanger heated complex, by no later than September 1, 2016, with an appraised
value of at least $500,000.00. 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 $500,000.00.
The evidence must be submitted to the City within sixty (60) days of the completion of the
development and improvements, but by no later than September 1, 2016.
The Lessee completed construction on the first t-hanger; however, construction has not begun on
the second t-hanger. The Lease terms state the time period to complete construction on both t-
hangers ended on September 1, 2016. Lessee states that the materials necessary for
construction of the second t-hanger are on site.
On March 26, 2018, Legacy Electric LLC submitted an application requesting the City of Kenai
grant an extension for construction of the second hanger until December 1, 2018.
122
Page 2 of 2
Resolution 2018-20
Accordingly, the City Attorney has prepared A First Amendment to Lease of Airport Reserve
Lands to be executed by the City of Kenai and Legacy Electric LLC. Article XIV Section (B),
Subsection (1), is hereby amended as follows:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land
development and construction of Permanent Improvements including removal of waste
material previously buried on the site and construct two (2) 6-plex unit t-hanger
heated complex, by no later than December 1, 2018, with an appraised value of at least
$500,000.00. 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 $500,000.00.
The evidence must be submitted to the City within sixty (60) days of the completion of the
development and improvements.
Except as expressly modified or stated herein, all other terms and conditions of the Lease remain
in full force and effect.
The Planning and Zoning Commission reviewed the Amendment to Lease on April 11, 2018, and
recommend approval thereof, to the City Council.
The Airport Commission reviewed the Amendment to Lease on April 12, 2018, and recommend
approval thereof, to the City Council
Thank you for your consideration.
123
City of Kenai
Kenai Municipal Airport
Land Lease Application
Name of Applicant: Derek Leichliter
Mailing Address: 46113 Sather Court City: Soldotna
Application for:
0New Lease
0Amendment
D Extension/Renewal
State : AK Zip Code: 99669
Phone Number(s): Home Phone: ( 907) 252-4391 Work/ Message Phone: ( 907) 262-4391
E-mail: (Optional) legacyelectricak@gmail.com
Name to Appear on Lease: Legacy Electric, LLC
Mailing Address: 46113 Sather Court City: Soldotna State : AK Zip Code : 99669
Phone Number(s): Home Phone : ( 907) 252-4391 Work/ Message Phone: ( 907) 262-4391
E-mail: (Optional) legacyelectricak@gmail.com
Type of Applicant: D Individual (at least 18 years of age) D Partnership
llJ Limited Liability Company (LLC) D Government
D Corporation
Oother _____ _
. .
: Description of Property and Term Requested . .
Legal Description of Property : 115 FBO Road, Kenai, AK
Does the Property Require Subdivision? (if Yes, answer next two questions)
Are you prepared to be responsible for all costs associated with subdivision?
Do you believe the proposed subdivision would serve other Airport purposes?
Do you have or have you ever had a Lease with the City of Kenai?
If Yes, please provide description of property leased (e.g. lega l or physical description):
115 FBO Road , Kenai, AK
Is this application for renewal or term extension of an existing lease?
If Yes, please provide a description of the property leased:
115 FBO Road, Kenai, AK
Proposed Use (check one): 11"1 Aeronautical 0Non-Aeronautical
Do you plan to construct new or additional improvements?
DYES [{)No
DYES DNo
DYES DNo
[{)YES DNO
[{)YES DNo
[Z]YES DNo 124
If yes, will the improvement change or alter the use under an existing lease? DYES [ljNo
If yes, what is the new proposed use?
If yes, what is the type of improvement? (e.g . building improvement, land improvement)
If yes, what is the nature of the improvements? (e.g. maintenance, landscaping, new construction)
List of proposed use and business activities :
Airplane Hangar . . )
to request an extension for construction of the second hanger until December 1, 2018. Article XIV(B)(l
provided that construction would be completed no later than September l , 2016.
l Lease Extension or Renewal .
Method to determine value of improvements/term for a lease renewal or exp iring lease :
D Professional estimate of the remaining useful life of the principle improvement on the property
D Market value appraisal of th e principle improvement on the property
D Purchase price of improvements
Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. The application
shall exp ire twelve (12) months after the date the application has been made if the City and the applicant have not, by that time, entered into a
lease, unless the City Council for good cause grants an extension for a period not to exceed six (6) months. The City has no obligation lo
amend, renew or extend a lease and may decline to do so upon making specific findings as to why a lease renewal, extension, or amendment
is not in the best interest of th1 City /t
Signature: --i I// Date : 3 / ~ {,~
---·---·
Print Name: Derek Leichliter Title:
125
First Amendment to Lease
Page 1 of 3
FIRST AMENDMENT TO LEASE OF AIRPORT RESERVE LANDS
THIS Amendment to Lease is made as of the _____ day of ___________, 2018, by
and between the CITY OF KENAI (City), a municipal corporation whose address is 210
Fidalgo Avenue, Kenai, Alaska 99611, and Legacy Electric, LLC. whose address is 46113
Sather Court, Soldotna, AK 99669.
WITNESSETH
WHEREAS, on January 12, 2015, the City entered into a lease with Legacy Electric,
LLC. for City-owned lands identified as Lot 2, Block 1, General Aviation Apron, which
lease was recorded at 2015-002299-0, on March 25, 2015, in the Kenai Recording District,
Third Judicial District, State of Alaska; and,
WHEREAS, the City and Legacy Electric, LLC., for mutual consideration, mutually
agree to amend the lease described herein to extend the timeframe for Legacy Electric, LLC.,
to complete improvements as provided below.
NOW THEREFORE, the City and Legacy Electric, LLC. agree as follows:
1. Article XIV Section (B) Subsection (1) is hereby amended as follows:
REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete
land development and construction of Permanent Improvements including removal
of waste material previously buried on the site and construct two (2) 6-plex unit
t-hanger heated complex, by no later than December 1, 2018, with an appraised
value of at least $500,000.00. 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 $500,000.00.
The evidence must be submitted to the City within sixty (60) days of the completion
of the development and improvements.
2. Except as expressly modified or stated herein, all other terms and conditions of the
Lease remain in full force and effect.
126
First Amendment to Lease
Page 2 of 3
CITY OF KENAI
By: _________________________
Paul Ostrander
Its: City Manager
Legacy Electric, LLC.
By: __________________________
Name: ________________________
Its: ___________________________
Approved as to form:
_______________________
Scott Bloom
City Attorney
State of Alaska )
) ss
Third Judicial District )
The foregoing instrument was acknowledged before me this ____ day of ________, 2018,
by Paul Ostrander, City Manager for the City of Kenai.
___________________________
Notary Public of Alaska
My Commission Expires: _______
127
First Amendment to Lease
Page 3 of 3
State of Alaska )
) ss
Third Judicial District )
The foregoing instrument was acknowledged before me this ____ day of ________, 2018,
by _________________________(Name), _________________________(Title) for
Legacy Electric, LLC.
____________________________
Notary Public of Alaska
My Commission Expires: _______
RETURN TO:
CITY OF KENAI
210 Fidalgo Avenue
Kenai, AK 99611-7794
128
(1) 2
Lot 2, Block 1
GAA SUBD.
N0.1
__ tlreeit;t-f, _
URAi, AlASICA
'V/
N W+E
s
100'
1 inch equa ls 104 feet
The information depicted here
on is for graphic representation
only of the best available sources.
The City of Kenai assumes no
responsibility for errors on this
map.
Date: 3/30/2018
129
KENAI CITY COUNCIL – REGULAR MEETING
APRIL 18, 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 April 18, 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 (absent) Tim Navarre
Jim Glendening Mike Boyle
Glenese Pettey
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 modifications to the agenda and packet:
Add to Item D.1. Ordinance No. 3013-2018
• Drawings
• Councilor Knackstedt’s Comments
Remove Item G.2. Purchase Orders Exceeding $15,000
MOTION:
Council Member Molloy MOVED to approve the agenda with the requested revisions to the
agenda and packet and requested UNANIMOUS CONSENT. Council Member Boyle
SECONDED the motion.
130
City of Kenai Council Meeting Page 2 of 7
April 18, 2018
VOTE: There being no objections, SO ORDERED.
4. Consent Agenda
MOTION:
Council Member Molloy MOVED to approve the consent agenda and requested UNANIMOUS
CONSENT. Council Member Boyle 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. Chelsea Plagge, KPBSD Student – Overview of Skills USA Competition, an
Opportunity for Students to Learn Hands on Skills.
Chelsea Plagge, KPBSD Student, provided an overview of the Skills USA Program competition
that she participated in, explaining the trade competitions ranged from welding to culinary; she
participated in the culinary competition and after winning regional and state competitions, she was
raising funds for and traveling to Kentucky to compete in the National competition.
MOTION:
Council Member Boyle MOVED to donate $500 to Kenai Central High School Skills USA for travel
expenses. Council Member Navarre SECONDED the motion and requested UNANIMOUS
CONSENT.
VOTE: There being no objections; SO ORDERED.
2. Mayzie Potton and Leah Johnson, KPBSD Students – Overview of their “T-Books”
Organization that fundraises to provide literature to schools and students in several
communities.
Mayzie Potton and Leah Johnson, KPBSD Students, provided an overview of their “T-Books”
organization noting they provide books to underprivileged children and the program had been
underway for several years; had been taken to Swaziland as a part of a mission trip they took;
added that they will continue the program at their colleges after they graduate and were actively
seeking a candidate to pass it off to at Kenai Central High School.
C. UNSCHEDULED PUBLIC COMMENTS – None.
131
City of Kenai Council Meeting Page 3 of 7
April 18, 2018
D. PUBLIC HEARINGS
1. Ordinance No. 3013-2018 - Increasing Estimated Revenues and Appropriations by
$286,288 in the Airport Special Revenue and Airport Terminal Improvements Capital
Project Funds for Increased Costs Associated with Phase II of the Project to Design
the Airport Terminal Rehabilitation Project and Authorizing a Contract Amendment
with Wince-Corthell-Bryson for Completion of Phase II of the Project’s
Design. (Administration)
MOTION:
Council Member Molloy MOVED to enact Ordinance 3013-2018 and Council Member Navarre
SECONDED the motion.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
Clarification was provided that the additional funds were needed due to unforeseen maintenance
conditions. Design components were discussed and further clarification was provided that some
components of the design were not grant eligible.
VOTE:
YEA: Molloy, Pettey, Boyle, Gabriel, Navarre, Glendening
NAY:
MOTION PASSED UNANIMOUSLY.
2. Ordinance No. 3014-2018 – Making Housekeeping Amendments to KMC Section
3.25.060- Adoption Procedure, 3.25.090- Protective Custody, 3.30.030-Quarantine of
Individual Animal, 4.25.020- Fee Schedule, 12.25.030- Leaving of Junk or Illegally
Parked Vehicles, 13.30.090-Sign Bearing the Legend, 18.25.030 – Inspection Fee,
and 23.50.010- Employee Classification. (Legal and City Clerk)
MOTION:
Council Member Naverre MOVED to enact Ordinance 3014-2018 and Council Member
Glendening SECONDED the motion.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE:
YEA: Molloy, Pettey, Boyle, Gabriel, Navarre, Glendening
NAY:
MOTION PASSED UNANIMOUSLY.
132
City of Kenai Council Meeting Page 4 of 7
April 18, 2018
E. MINUTES
1.*Regular Meeting of April 4, 2018
Approved by the consent agenda.
F. UNFINISHED BUSINESS – None.
G. NEW BUSINESS
1. *Action/Approval – Bills to be Ratified.
Approved by the consent agenda.
2. *Action/Approval – Purchase Orders Exceeding $15,000.
Removed from the agenda during approval of the agenda.
3. *Action/Approval – Non-Objection to Liquor License Renewal for:
• George’s Casino Lounge
• Pizza Hut
• Wal-Mart Supercenter #4474
Approved by the consent agenda.
4. *Ordinance No. 3015-2018 – Accepting and Appropriating a Volunteer Fire
Assistance (VFA) Grant From the United States Department of Agriculture Forest
Service Passed Through the State of Alaska Division of Forestry f or the Purchase of
Forestry Firefighting Equipment. (Administration)
Introduced by the consent agenda and public hearing set for May 2, 2018.
5. *Ordinance No. 3016-2018 – Increasing Estimated Revenues and Appropriations by
$4,434.88 in the General Fund – Police Department for State Traffic Grant Overtime
Expenditures. (Administration)
Introduced by the consent agenda and public hearing set for May 2, 2018.
6. *Ordinance No. 3017-2018 – Accepting Drug Seizure Funds Forfeited to the City in
the Amount of $4,709.63 and Appropriating the Funds for the Purchase of Police
Department Small Tools. (Administration)
Introduced by the consent agenda and public hearing set for May 2, 2018.
7. *Ordinance No. 3018-2018 – Amending Kenai Municipal Code Title 23-Personnel
Regulations, to Create a New Class of Employees Defined as “Department Head
Service” that Includes Employees who Work at Will and are Compensated within A
Salary Range Approved by the Council, and Making other Housekeeping Changes.
(Council Member Navarre)
133
City of Kenai Council Meeting Page 5 of 7
April 18, 2018
Introduced by the consent agenda and public hearing set for May 2, 2018.
8. *Ordinance No. 3019-2018 – Increasing Estimated Revenues and Appropriation in
the General and Municipal Roadway Improvements Capital Project Funds and
Awarding A Contract To Complete The Ryan’s Creek Outfall Repair Project To Foster
Construction, Inc. (Administration)
Introduced by the consent agenda and public hearing set for May 2, 2018.
9. *Ordinance No. 3020-2018 – Increasing Estimated Revenues and Appropriations in
the Water & Sewer Special Revenue and Water & Sewer Improvements Capital
Project Funds and Authorizing a Change Order to the Contract with the State of Alaska
Department of Transportation for the Project Entitled “Spur Highway Water Main
Replacement – Spur Highway and Shotgun Drive”. (Administration)
Introduced by the consent agenda and public hearing set for May 2, 2018.
10. Action/Approval – Approving a Special Use Permit to the State of Alaska,
Department of Natural Resources, Division of Forestry, for Aircraft Parking and
Loading on the Apron. (Administration)
MOTION:
Council Member Molloy MOVED to approve a Special Use Permit to the State of Alaska
Department of Natural Resources, Division of Forestry, for aircraft parking and loading on the
apron and requested UNANIMOUS CONSENT. Council Member Boyle SECONDED the motion.
VOTE: There being no objection; SO ORDERED.
11. Action/Approval – Consenting to Assignment of Kenai Municipal Airport Lease from
Alaska Realty Group, Inc. to Mossy Oak Properties (Administration)
MOTION:
Council Member Navarre MOVED to consent to the assignment of Kenai Municipal Airport lease
from Alaska Realty Group, Inc. to Mossy Oak Properties and Council Member Boyle SECONDED
the motion. UNANIMOUS CONSENT was requested.
VOTE: There being no objection; SO ORDERED.
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging – It was reported that at their April 12 meeting the Council discussed
blinds, security cameras near artwork, capital improvement projects, and grants; next
meeting May 10.
2. Airport Commission – It was reported that at their April 12 meeting the Commission
discussed signage for Field of Flowers; next meeting May 10.
134
City of Kenai Council Meeting Page 6 of 7
April 18, 2018
3. Harbor Commission – It was reported that at their April 9 meeting the Commission
made recommendations for capital improvement priorities and “no wake zone” signs;
also requested the authorization for creation of a subcommittee for development of the
Commission’s roles and responsibilities; next meeting May 7.
4. Parks and Recreation Commission – No report; Next meeting May 3.
5. Planning and Zoning Commission – It was reported that on April 11, the Commission
approved a lease amendment to allow an extension for the construction of a second
hanger; also approved the transfer of a gravel pit Conditional Use Permit; next meeting
April 25.
6. Beautification Committee – It was reported that at their April 10 meeting the Committee
reviewed flowers and designs for the upcoming season; also discussed winter static
displays; next meeting May 8.
7. Mini-Grant Steering Committee – No report.
I. REPORT OF THE MAYOR
Mayor Gabriel reported on the following:
• Participated in St. Jude’s telethon at the radio station;
• Delivered a joint proclamation with Mayor Anderson proclaiming April as Sexual
Assault Awareness Month;
• Provided a reminder for the upcoming Volunteer Appreciation Dinner on April 19.
J. ADMINISTRATION REPORTS
1. City Manager – P. Ostrander reported on the following:
• Participated in a meeting with all city managers in the Kenai Peninsula Borough;
• Attended the Harbor Commission meeting and is preparing a recommendation to
be discussed the next Council meeting regarding “no wake zone” signs;
• Was in the process of reviewing Airline Operating Agreements;
• Participated in St. Judes telethon at the radio station;
• Provided a Bluff Erosion Project Update noting he contacted the congressional
delegation; project now fully funded on the federal side to conduct feasibility study;
requesting a revised schedule from the Corps of Engineers.
2. City Attorney – No report.
3. City Clerk – J. Heinz reported another shred day was held on April 12 and would
provide a full report on May 2.
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
Cathy Heus noted that from time to time she has had trouble accessing packets and agendas on
the website.
135
City of Kenai Council Meeting Page 7 of 7
April 18, 2018
Brent Hibbert provided an update from the Kenai Peninsula Borough Assembly noting they were
beginning budget talks and were discussing methods to increase revenue.
2. Council Comments
Vice Mayor Navarre noted he was looking forward to attending the Volunteer Appreciation Dinner
and appreciated the high school kids’ presentations earlier in the meeting.
Council Member Pettey expressed gratitude that the Bluff Erosion Project was moving forward
again and noted she was looking forward to attending the Volunteer Appreciation Dinner.
L. EXECUTIVE SESSION – None.
M. PENDING ITEMS – None.
N. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 7:32 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of April 18,
2018.
_____________________________
Jamie Heinz, CMC
City Clerk
136
PAYMENTS OVER $15,000 .00 WHICH NEED COUNCIL RATIFICATION
COUNCIL MEETING OF: MAY 2, 2018
VENDOR DESCRIPTION
PERS PERS
ENSTAR NATURAL GAS GAS USAGE
INVESTMENTS
VENDOR DESCRIPTION
DEPARTMENT
VARIOUS
VARIOUS
MATURITY DATE
ACCOUNT AMOUNT
LIABILITY 87,233 .71
UTILITIES 30 ,773 .09
AMOUNT Effect. Int.
137
PURCHASE ORDERS OVER $15,000.00 WH ICH NEED COUNCIL APPROVAL
COUNCIL MEETING OF: MAY 2, 2018
VENDOR DESCRIPTION DEPT.
UNITED RO TARY BRUSH CO. BROOM CORES AIRPORT
INCREASE OF EXISTING PURCHASE ORDER
VENDOR DESCRIPTION P.O. # -DEPT.
ACCOUNT AMOUNT
OPERATING SUPPLIES 20,250.00
REASON AMOUNT TOTAL PO AMT
138
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary L. Bondurant – Airport Manager
DATE: April 24, 2018
SUBJECT: Purchase Order – United Rotary
The purpose of this memo is to request approval to purchase broom bristles from United Rotary
for the runway brooms. This is replenishing broom bristles after the 2017-2018 winter season.
The new multi-purpose broom/blower received in March 2018 came with a new core cassette
system for replacing the broom bristles. This system will allow 1 operator to change out a set
of bristles in 2.5 hours versus 7.5 to 8 hours for 3 operators. These new cassette cores can
also be used on our second multi-purpose broom/blower. This system is cost effective, easy,
and safe.
Three vendors were asked for quotes:
United Rotary $ 6,750 per set delivered –total purchase $ 20,250
Yukon Equipment $ 9,900 per set delivered
MB Equipment – broom bristles would not fit the heads to our machine
United Rotary’s price was found to be fair and reasonable.
Thank you for your consideration.
139
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Jamie Heinz, City Clerk
DATE: April 27, 2018
SUBJECT: New Retail Marijuana Store License
The Alcoholic & Marijuana Control Office has sent notification that the following applicant has
requested a new retail marijuana store license:
Applicant: Cook Inlet Cannabis Co.
Owners: Ryan Tunseth
D/B/A: East Rip
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 or the Marijuana 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.
A review of City accounts has been completed and the applicant has satisfied all obligations to
the City. With the approval of Council, a letter of non-objection to the request for a Retail
Marijuana Store License will be forwarded to the Alcoholic & Marijuana Control Office and the
applicant.
Your consideration is appreciated.
Attachments
210 Fidalgo Avenue, Kenai, Alaska 99611-7794
Telephone: 907-283-7535 / FAX: 907-283-3014
140
"Vt1/~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, Police Chief
Terry Eubank, Finance Department
Scott Bloom , Legal Department
Willie Anderson , Lands Management
Elizabeth Appleby, City Planner
Jamie Heinz, City Clerk
April 20, 2018
Retail Marijuana Store License Application
t:r:e:d
-CIJ
,1111.'
1992
The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested a
new license:
Applicant:
Owners:
D/B/A:
Cook Inlet Cannabis Co .
Ryan Tunseth
East Rip
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 or the Marijuana 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 records maintained by your department (i.e. water and sewer billings , lease/property
payment history, citations, etc .) by the above reference applicant and advise if obligations have been met.
Mark the appropriate box below. If obligations have not been met, attach information to this
memorandum indicating what obligations are outstanding and how the obligations can be cured.
Please let me know if you have any questions. Thanks.
1. Police Department . initials
~have reviewed all records for my department and the applicant is current on obligations or obligations do not exist.
0 The ap~~as outstanding obligations and an additional page has been attached.
2. Finance~ initials
'0 I have revi ewed all records for my department and the applicant is current on obligations or obligations do not exist.
0 The aJ?plicant has outstanding obligations and an additional page has been atta ched .
3~Jlal f f'z initials
QI 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 add itional page has been attached .
4;...!Jtlds Management \,\f.tJ.-=' initials
~ I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist.
Drhe applicant has outstanding obligations and an additional page has been attached. 5~nning and Zoning \,vJ..{,L.jnitials
llLJ I ha ve reviewed all records for my department and the applicant is current on obligations or obligations do not exist.
Drhe applicant has outstandi~ obligations and an additional page has been attached .
Returned to Clerk's office : l.\-· L.(.p • I tzS
141
Department of Commerce, Community,
and Economic Development
ALCOHOL & MARIJUANA CONTROL OFFICE
550 West 7th Avenue, Suite 1600
Anchorage, AK 99501
Main: 907.269.0350
April 20, 2018
City of Kenai
Attn: Jamie Heinz
VIA Email: jheinz@kenai.city
kring@kpb.us
jblankenship@kpb.us
micheleturner@kpb.us
License Number: 13382
License Type: Retail Marijuana Store
Licensee: Cook Inlet Cannabis Co.
Doing Business As: EAST RIP
Physical Address: 10767 KENAI SPUR HWY
SUITE D
KENAI, AK 99611
Designated Licensee: Ryan Tunseth
Phone Number: 907-398-1233
Email Address: bruce483@hotmail.com
☒ New Application ☐ Transfer of Ownership Application
AMCO has received a completed application for the above listed license (see attached application
documents) within your jurisdiction. This is the notice required under 3 AAC 306.025(d)(2).
To protest the approval of this application(s) pursuant to 3 AAC 306.060, you must furnish the director
and the applicant with a clear and concise written statement of reasons for the protest within 60 days of
the date of this notice, and provide AMCO proof of service of the protest upon the applicant.
3 AAC 306.010, 3 AAC 306.080, and 3 AAC 306.250 provide that the board will deny an application for a
new license if the board finds that the license is prohibited under AS 17.38 as a result of an ordinance or
election conducted under AS 17.38 and 3 AAC 306.200, or when a local government protests an
application on the grounds that the proposed licensed premises are located in a place within the local
government where a local zoning ordinance prohibits the marijuana establishment, unless the local
government has approved a variance from the local ordinance.
This application will be in front of the Marijuana Control Board at our May 7, 2018 meeting.
Sincerely,
Erika McConnell, Director
142
'HSDUWPHQWRI&RPPHUFH&RPPXQLW\ (FRQRPLF'HYHORSPHQW
$OFRKRO 0DULMXDQD&RQWURO2IILFH
/LFHQVH
,QLWLDWLQJ/LFHQVH$SSOLFDWLRQ
$0
/LFHQVHH
7\SH (QWLW\
$ODVND(QWLW\1XPEHU
$ODVND(QWLW\1DPH &RRN,QOHW&DQQDELV&R
3KRQH1XPEHU
(PDLO$GGUHVV EUXFH#KRWPDLOFRP
0DLOLQJ$GGUHVV 32%R[
.HQDL$.
81,7('67$7(6
(QWLW\2IILFLDO
7\SH ,QGLYLGXDO
1DPH 5\DQ7XQVHWK
3KRQH1XPEHU
(PDLO$GGUHVV EUXFH#KRWPDLOFRP
0DLOLQJ$GGUHVV 32%R[
.HQDL$.
81,7('67$7(6
/LFHQVH1XPEHU
/LFHQVH6WDWXV 1HZ
/LFHQVH7\SH 5HWDLO0DULMXDQD6WRUH
'RLQJ%XVLQHVV$V ($675,3
%XVLQHVV/LFHQVH1XPEHU
'HVLJQDWHG/LFHQVHH 5\DQ7XQVHWK
(PDLO$GGUHVV EUXFH#KRWPDLOFRP
/RFDO*RYHUQPHQW .HQDL &LW\RI
&RPPXQLW\&RXQFLO
/DWLWXGH/RQJLWXGH
3K\VLFDO$GGUHVV .(1$,6385+:<
68,7('
.(1$,$.
81,7('67$7(6
1RWH 1RDIILOLDWHVHQWHUHGIRUWKLVOLFHQVH
143
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
[Form MJ-01] (rev 02/12/2016) Page 1 of 19
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
What is this form?
An operating plan is required for all marijuana establishment license applications. Applicants should review Title 17.38 of Alaska
Statutes and Chapter 306 of the Alaska Administrative Code. This form will be used to document how an applicant intends to meet
the requirements of those statutes and regulations. If your business has a formal operating plan, you may include a copy of that
operating plan with your application, but all fields of this form must still be completed per 3 AAC 306.020(c).
What must be covered in an operating plan?
Applicants must identify how the proposed premises will comply with applicable statutes and regulations regarding the following:
x Security
x Inventory tracking of all marijuana and marijuana product on the premises
x Employee qualification and training
x Waste disposal
x Transportation and delivery of marijuana and marijuana products
x Signage and advertising
x Control plan for persons under the age of 21
Applicants must also complete the corresponding operating plan supplemental forms (Form MJ-03, Form MJ-04, Form MJ-05, or
Form MJ-06) to meet the additional operating plan requirements for each license type.
Enter information for the business seeking to be licensed, as identified on the license application.
Licensee: License Number:
License Type:
Doing Business As:
Premises Address:
City: State: ZIP:
Mailing Address:
City: State: ZIP:
Primary Contact:
Main Phone: Cell Phone:
Email:
Section 1 – Establishment Information
Cook Inlet Cannabis Co.13382
Retail Marijuana Store
East Rip
10767 Kenai Spur Hwy, Suite D
Kenai ALASKA 99611
PO Box 1922
Kenai ALASKA 99611
Ryan Tunseth
907-398-1233
bruce483@hotmail.com
Received by AMCO 4.10.18
144
[Form MJ-01] (rev 02/12/2016) Page 2 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
Review the requirements under 3 AAC 306.710 – 3 AAC 306.720 and 3 AAC 306.755, and identify how the proposed premises will
meet the listed requirements.
Describe how the proposed premises will comply with each of the following:
Restricted Access Areas (3 AAC 306.710):
Describe how you will prevent unescorted members of the public from entering restricted access areas:
Describe your processes for admitting visitors into and escorting them through restricted access areas:
Section 2 – Security
The facility will be equipped with a 24 hour monitoring alarm system, exterior motion detecting
lighting, and video surveillance. Access to restricted areas will only be granted to employees and
licensees, and signage will be prominently displayed on the door/entrance to each restricted
access area indicating that members of the public are not allowed un-escorted access. At least one
employee will be present behind the sales counter at all times, ensuring customers do not enter the
restricted access area behind the counter. The facility will be equipped with an alarm system and
video surveillance. Security cameras will be installed throughout the retail store that allow for
monitoring of all areas 24 hours each day including, at a minimum: all entrances and exits, all
security doors and restricted access areas, all windows, every portion of the office, and the exterior
of the building to monitor and identify all activity adjacent to the facility.
In order to be escorted into restricted access areas, a visitor must sign into a log indicating
their name, the date, time in and out of the restricted access area, and purpose of the visit.
The visitor’s log will be kept and stored as an official business record. All visitors will be given
a visitor badge to be displayed on their person at all times and returned upon exit. Visitors will
be escorted and actively supervised by an employee at a 5:1 ratio while in the restricted
access areas, and once the visit has concluded, the visitor must leave the restricted access
area immediately.
Received by AMCO 4.10.18
145
[Form MJ-01] (rev 02/12/2016) Page 3 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
Describe your recordkeeping of visitors who are escorted into restricted access areas:
Provide a copy of a sample identification badge to be displayed by each licensee, employee, or agent while on the premises:
In order to be escorted into restricted access areas a visitor must be pre-scheduled, with the exception
of AMCO and duly authorized law enforcement agents. Each visitor will sign into the visitor's log
indicating their name, the date, time in and out of the restricted access area, and purpose of the visit. All
visitors will be required to sign in, and to provide valid government issued photo identification. The
visitor’s log will be kept and stored on-site as official business records. The visitors will be escorted by
an employee at all times while on the premises. The escorting employee will record all information
related to the visitor's presence, including any reportable activity or behavior during the visit. This visitor
log will be made available to AMCO upon request. The records will be stored on the company's
computer server, hard original copy will be stored in the secured locked office.
*Visitor policies do not include agents of the MCB, law enforcement or other duly authorized agents*
The licensee and all employees and agents of the facility who have been approved for access
on the premises will be given an identification badge to display on their person at all times.
Received by AMCO 4.10.18
146
[Form MJ-01] (rev 02/12/2016) Page 4 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
Security Alarm Systems and Lock Standards (3 AAC 306.715):
Exterior lighting is required to facilitate surveillance. Describe how the exterior lighting will meet this requirement:
An alarm system is required for all license types. Describe the security alarm system for the proposed premises:
The alarm system must be activated on all exterior doors and windows when the licensed premises is closed for business.
Describe how the security alarm system meets this requirement:
Exterior lighting will be positioned against the building and perimeter in order to facilitate
surveillance. The light fixtures will keep the premises, signs, doors, and windows well lit, and
allow the exterior surveillance cameras to record individuals up to twenty (20) feet from all
entry points. The lighting fixtures will be positioned at an inaccessible height with sturdy
housings to deter vandalism and common obstructions. The bulbs will be extremely bright to
maximize visibility and deter crime. The exterior lighting will be checked weekly by the
manager on duty to ensure that each light in the system is operational, and that each mount is
positioned for optimum recording clarity and to deter unauthorized presence on the premises.
A third party security company will install the alarm system, maintain its equipment, test the devices
and continuously monitor the facility at an off-site center to ensure the safety of the property and to
detect unauthorized activity. The alarm system will be set up to monitor for intrusions with motion
detectors in all areas of the building, during closed hours. When triggered, an electronic alert will be
automatically sent to the security company who will then contact local law enforcement and
ownership. The owner and managers will be educated on proper use, troubleshooting, and control
of the alarm system. Each morning, the on-site manager will disable the overnight alarm system
and check the surveillance cameras and recordings to ensure the system is functioning as
expected. The last employee to leave the store each night will activate the overnight devices and
sensors, and lock all doors and windows that are not self-locking.
Sensors will be installed and maintained on all potential entry points, including all doors and
windows, to monitor for motion, intrusion, or activity when the alarm system is activated. The last
employee to leave the facility each day will lock all doors and windows that are not self locking,
and will activate the overnight security devices and sensors. The alarm system will be active at
all times that the facility is closed, and any attempted intrusion will initiate an immediate and
electronic notification to the off-site security center and to the licensee's mobile phone. Each
morning, the on-site manager will disable the alarm system, and inspect the security cameras
and recordings to ensure that the system is functioning as expected.
Received by AMCO 4.10.18
147
[Form MJ-01] (rev 02/12/2016) Page 5 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
Describe your policies and procedures for preventing diversion of marijuana or marijuana product:
Describe your policies and procedures for preventing loitering:
Describe your policies and procedures regarding the use of any additional security device, such as a motion detector, pressure
switch, and duress, panic, or hold-up alarm to enhance security of the proposed premises:
All areas of the licensed premises where marijuana or marijuana products are stocked for sale or dispensed for sale, storage/inventory areas,
surveillance area and office will be designated as Restricted access areas and access will be granted only to specific personnel to these locked areas.
These secured locked areas will have 24 hour video surveillance and video back up for all video footage and will be stored for a minimum of forty (40)
days. When the business is open, all products will be on display in specific areas, unreachable to customers. Cameras will be visible and provide a full
view of the room, including the entryway, money counting area, and product accounting area. Mandatory inventory counts will be taken weekly and
stored as official business records. East Rip understands that diversion can happen in two ways. In the event that theft or diversion is suspected, all
employees will alert management immediately. In the event that an employee is caught stealing marijuana, OR infusing the facility with non-regulated
black market product East Rip will notify local law enforcement immediately, comply with all directives, and provide all necessary information and
records for the investigation. Ownership will take the necessary steps to ensure that illegal conduct by an employee does not compromise the facility's
license and legitimate business operations. This includes disciplinary action including termination when necessary. All employees will be trainedto
recognize potential theft, and are required to notify ownership or management if they suspect such activity is occurring. All reports and documentation
concerning a suspected or actual theft will be maintained by the company for five (5) years and made available to AMCO upon request. If any suspected
or actual theft occurs, ownership will contact local law enforcement immediately. Once a theft is reported to law enforcement, ownership will update the
product records in the marijuana inventory control tracking system to maintain an accurate and comprehensive accounting for all marijuana inventory
activity. The licensee will also comply with any and all directives, inquiries, and investigations lodged by AMCO.
A "No Loitering" sign will be prominently posted on the exterior of the building. Loitering outside the establishment will be met with
a request from company agents to leave the premises. The loitering individual will be given a verbal warning that law
enforcement will be notified if they do not comply. Employees will complete a walk around of the facility to look for suspicious
activity or lingerers who have no legitimate business being on the property and ask them to leave if sighted. The last resort is to
reach out to law enforcement personnel for assistance. In the retail area, sales employees will be constantly interacting with
customers. If customers no longer have a purpose inside the retail and display area, agents will politely state that we have a "No
Loitering" policy and customers are then asked to leave. The facility will have a single and secure entrance for all regular ingress
and egress from the building and for all visitors and customers. The entrance and perimeter of the building will be monitored by
security cameras at all times. Agents will maintain a regular and noticeable presence around the property to deter unauthorized
entrance. Managers will work with the security company and local law enforcement, if necessary, to secure the premises, prevent
business practices which could entice or allow loitering, and escort all loitering individuals off the premises as soon as possible.
Agents will maintain a regular periodic check around the property to deter any unauthorized persons.
Motion detectors will be rigged to the exterior lighting system, in addition to the stationary
lights, to allow for additional security measures during closed hours and to provide extra
lighting for all surveillance recordings. The alarm system will monitor for intrusions with motion
detectors on all access points, the licensed facility, office, and secured storage during
closed hours. Any unauthorized or attempted intrusion will prompt an automatic, electronic
alert to the security company who will then contact local law enforcement and the licensee.
Received by AMCO 4.10.18
148
[Form MJ-01] (rev 02/12/2016) Page 6 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
܆܆
܆܆
܆܆
܆܆
܆܆
Describe your policies and procedures regarding the actions to be taken by a licensee, employee, or agent when any
automatic or electronic notification system alerts a local law enforcement agency of an unauthorized breach of security:
Video Surveillance (3 AAC 306.720):
All licensed marijuana establishments must meet minimum standards for surveillance equipment. Applicants should be able to
answer “Yes” to all items below.
Video surveillance and camera recording system covers the following areas of the premises: Yes No
Each restricted access area and each entrance to a restricted access area
Both the interior and exterior of each entrance to the facility
Each point of sale area
Each video surveillance recording: Yes No
Is preserved for a minimum of 40 days, in a format that can be easily accessed for viewing
Clearly and accurately displays the time and date
Is archived in a format that does not permit alteration of the recorded image, so that the images
can readily be authenticated
In the event that a dangerous, threatening, or unauthorized situation arises in or around the facility and the electronic
notification system alerts the local law enforcement, law enforcement will head to the location of breach. All customers and
visitors present on the premises will be escorted immediately to the exit in a safe and organized manner. Employees will
receive emergency training and will be trained to stay away from the location until otherwise told by law enforcement that it is
safe. A designated employee will take a head count at the designated safe location to ensure all employees and visitors are
accounted for. Employees will cooperate with local law enforcement and meet local police or the fire department in a safe
location. All visitors, unless the visitor is the cause of emergency, in which case employees will be trained to react defensively
and isolate and contain the visitor with out violence until the police arrive, customers present on the premises will be asked to
leave immediately and will be escorted to the nearest exit in a safe and organized manner. Once back in the store,
employees will look for property damages and verify cash and inventories. If anything is damaged or missing, a police report
will be filed. Video surveillance will be downloaded and submitted to the appropriate law enforcement personnel for further
investigation. AMCO Enforcement will be notified of all incidents resulting in law enforcement involvement.
✔
✔
✔
✔
✔
✔
Received by AMCO 4.10.18
149
[Form MJ-01] (rev 02/12/2016) Page 7 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
܆܆
܆܆
܆܆
Describe how the video cameras will be placed to produce a clear view adequate to identify any individual inside the
licensed premises, or within 20 feet of each entrance to the licensed premises:
Describe the locked and secure area where video surveillance recording equipment and records will be housed and stored
and how you will ensure the area is accessible only to authorized personnel, law enforcement, or an agent of the board:
Location of Surveillance Equipment and Video Surveillance Records: Yes No
Surveillance room or area is clearly defined on the premises diagram
Surveillance recording equipment and video surveillance records are housed in a designated, locked,
and secure area or in a lock box, cabinet, closet or other secure area
Surveillance recording equipment access is limited to a marijuana establishment licensee or authorized
employee, and to law enforcement personnel including an agent of the board
Video surveillance records are stored off-site
Multiple cameras will be used in order to record all areas of the establishment, inside and outside at multiple angles and at a
height that will provide a clear, unobstructed view. Cameras will be carefully placed to prevent any blockage from fixtures,
posts, display cases, or other equipment. All security cameras will be positioned in such a manner as to get the best facial
image of anyone present within the building and within twenty (20) feet of the exterior walls. The front entrance door of the
retail store as well as the exterior emergency exit door will have cameras documenting the face of anyone going in or out of
the building. All restricted access doors will have coverage to clearly identify the face of anyone present. All exterior
entrances will have video coverage documenting the face of the individual entering the room. All exterior corners of the space
will have cameras installed to facilitate monitoring of all activity on each side of the building. The parking lot and entrance will
also have video coverage. Footage from security cameras will be accessible remotely, allowing ownership to view operations
from anywhere. A failure notification system will be installed to provide audible and visual notification of any failure in the
electronic monitoring system. During a power outage all video cameras and recording equipment will be run on emergency
power with a battery backup system to ensure that they will continue to operate for at least one (1) hour.
All surveillance recording equipment and footage will be stored in the secured office, in a
locked and secured cabinet, with hard drive backups on site. The office will be accessible only
by authorized agents (licensees and designated managers). The security system will only be
accessible with a password (given only to authorized individuals), so no tampering with data
will be possible. Data will be stored on the security system's DVR for a minimum of forty (40)
days. These recordings will include the time and date stamp, and will be archived in a format
that does not permit alteration of the recorded image. Recordings will be available to AMCO
and local law enforcement upon request.
✔
✔
✔
✔
Received by AMCO 4.10.18
150
[Form MJ-01] (rev 02/12/2016) Page 8 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
܆܆
܆܆
܆܆
܆܆
܆܆
܆܆
܆܆
܆܆
Business Records (3 AAC 306.755):
All licensed marijuana establishments must maintain, in a format that is readily understood by a reasonably prudent business
person, certain business records. Applicants should be able to answer “Yes” to all items below.
Business Records Maintained and Kept on the Licensed Premises: Yes No
All books and records necessary to fully account for each business transaction conducted under its license
for the current year and three preceding calendar years; records for the last six months are maintained on
the marijuana establishment’s licensed premises; older records may be archived on or off-premises
A current employee list setting out the full name and marijuana handler permit number of each licensee,
employee, and agent who works at the marijuana establishment
The business contact information for vendors that maintain video surveillance systems and security alarm
systems for the licensed premises
Records related to advertising and marketing
A current diagram of the licensed premises including each restricted access area
A log recording the name, and date and time of entry of each visitor permitted into a restricted access
area
All records normally retained for tax purposes
Accurate and comprehensive inventory tracking records that account for all marijuana inventory activity
from seed or immature plant stage until the retail marijuana or retail marijuana product is sold to a
consumer, to another marijuana establishment, or destroyed
Transportation records for marijuana and marijuana product as required under 3 AAC 306.750(f)
✔
✔
✔
✔
✔
✔
✔
✔
✔
Received by AMCO 4.10.18
151
[Form MJ-01] (rev 02/12/2016) Page 9 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
A marijuana establishment is required to exercise due diligence in preserving and maintainŝŶŐ all required records.
Describe how you will prevent records and data, including electronically maintained records, from being lost or destroyed:
All business records, including operational and regulatory documents, recordings, surveillance,
financial books, inventory and employment records, logs, manifests, and communications will
be stored on-site in the office, and backed up on a hard drive backup every 6-12 months to
protect from loss and destruction and to allow ownership and designated authorities access at
any time. Facility records will be managed by authorized agents in accordance with standard
retention policies to ensure that business records are stored in a consistent and searchable
manner. Records within the facility will be stored in the secured office, separate from all
storage of marijuana products and currency. Only Ryan and authorized employees will have
access to the office and business records.
Received by AMCO 4.10.18
152
[Form MJ-01] (rev 02/12/2016) Page 10 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
܆܆
Review the requirements under 3 AAC 306.730, and identify how the proposed establishment will meet the listed requirements.
All licensed marijuana establishments must use a marijuana inventory tracking system capable of sharing information with the
system the board implements to ensure all marijuana cultivated and sold in the state, and each marijuana product processed and
sold in the state, is identified and tracked from the time the marijuana propagated from seed or cutting, through transfer to another
licensed marijuana establishment, or use in manufacturing a product, to a completed sale of marijuana or marijuana product, or
disposal of the harvest batch of marijuana or production lot of marijuana product.
Applicants should be able to answer “Yes” to all items below.
Marijuana Tracking and Weighing: Yes No
A marijuana inventory tracking system, capable of sharing information with the system the board
implements to ensure tracking for the reasons listed above, will be used
All marijuana delivered to a marijuana establishment will be weighed on a scale certified in compliance
with 3 AAC 306.745
Describe the marijuana tracking system that you plan to use and how you will ensure that it is capable of sharing
information with the system the board implements:
Section 3 – Inventory Tracking of All Marijuana and Marijuana Product
East Rip will use the METRC marijuana inventory tracking system to increase product security,
track the movement of all marijuana products, and minimize diversion and illegal practices.
East Rip has arranged for high speed, reliable internet for use in the retail store office. METRC
will record and store all completed sales, conversions of manufactured products, and disposal
of unusable inventory. All employees will be trained in using the system to ensure that: (1) all
marijuana received on the premises is identified and tracked from the time of arrival through its
sale, transfer, or destruction; (2) all establishments transacting to purchase or otherwise
receive marijuana products from the facility are licensed; and (3) any loss or theft of marijuana
products is promptly reported. Employees will record data at several stages, including: (1)
receiving marijuana products (2) during sale and transport; and (3) during disposal,
destruction, and theft. The facility will enter all inventory tracking information into METRC.
Employees will record all sales in the system as they are processed. Employees will use the
system to verify and record each sale. In the event that marijuana products are flagged for
disposal, the facility will record the disposal in METRC and email AMCO enforcement at least
three (3) days prior to taking any disposal action.
✔
✔
Received by AMCO 4.10.18
153
[Form MJ-01] (rev 02/12/2016) Page 11 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
܆܆
܆܆
Review the requirements under 3 AAC 306.700, and identify how the proposed establishment will meet the listed requirements.
A marijuana establishment and each licensee, employee, or agent of the marijuana establishment who sells, cultivates,
manufactures, tests, or transports marijuana or a marijuana product, or who checks the identification of a consumer or visitor, shall
obtain a marijuana handler permit from the board before being licensed or beginning employment at a marijuana establishment.
Applicants should be able to answer “Yes” to all items below.
Marijuana Hander Permit: Yes No
Each licensee, employee, or agent of the marijuana establishment who sells, cultivates, manufactures,
tests, or transports marijuana or marijuana product, or who checks the identification of a consumer or
visitor, shall obtain a marijuana handler permit from the board before being licensed or beginning
employment at the marijuana establishment
Each licensee, employee, or agent who is required to have a marijuana handler permit shall keep that
person’s marijuana handler permit card in that person’s immediate possession (or a valid copy on file on
the premises of a retail marijuana store, marijuana cultivation facility, or marijuana product
manufacturing facility) when on the licensed premises
Each licensee, employee, or agent who is required to have a marijuana handler permit shall ensure that
that person’s marijuana handler permit card is valid and has not expired
Describe how your establishment will meet the requirements for employee qualifications and training:
Section 4 – Employee Qualification and Training
All qualified employees and agents will be required to obtain their marijuana handler permit
prior to employment in compliance with 3 AAC 306.700. Employees will be trained in handling
of marijuana and sanitary procedures to ensure marijuana and marijuana products are kept
free from filth and germs. Each employee will be provided with any written materials generated
by the company regarding procedures, State Laws and Regulations as well local laws and
requirements. Each employee will be provided with training regarding the company's standard
operating procedures, code of ethics and conduct and the employee handbook.
✔
✔
✔
Received by AMCO 4.10.18
154
[Form MJ-01] (rev 02/12/2016) Page 12 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
Review the requirements under 3 AAC 306.740, and identify how the proposed establishment will meet the listed requirements.
Applicants should be able to answer “Yes” to the statement below.
Marijuana Waste Disposal: Yes No
The marijuana establishment shall give the board at least 3 days notice in the marijuana inventory
tracking system required under 3 AAC 306.730 before making the waste unusable and disposing of it
Describe how you will store, manage, and dispose of any solid or liquid waste, including wastewater generated during marijuana
cultivation, production, process, testing, or retail sales, in compliance with applicable federal, state, and local laws and regulations:
Describe what material or materials you will mix with the ground marijuana waste to make it unusable:
Section 5 – Waste Disposal
East Rip will ensure that all marijuana plant and marijuana product waste is rendered unusable
prior to leaving the facility. Management will maintain a log tracking the final destination of all
marijuana plant and marijuana product waste. All marijuana plant matter and marijuana product
marked for disposal will be stored in a secured bin, separated from all other products and
materials, until it can be rendered unusable and disposed of. An email notification will be sent to
AMCO Enforcement at least three days prior to rendering any marijuana plant or marijuana product
waste unusable as well as be tracked in metrc. Once rendered unusable, marijuana waste will be
securely stored in locked containers on the licensed premises until it can be disposed of. All locks
will comply with the highest UL standards. Only authorized personnel will have access to the keys
that lock and unlock the containers.
After giving AMCO (via email to AMCO Enforcement) at least a three (3) day notice, and
entering into the METRC tracking system, the marijuana waste will be ground up with a grinder
and mixed with other compostable materials such as food waste, yard waste, vegetable oils, or
non-compostable materials such as paper waste or cardboard. The mixture will be inspected
by an agent of the facility to ensure it is no more than 50% marijuana waste.
✔
Received by AMCO 4.10.18
155
[Form MJ-01] (rev 02/12/2016) Page 13 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
Marijuana waste must be rendered unusable for any purpose for which it was grown or produced before it leaves the marijuana
establishment. Describe the process or processes that you will use to make the marijuana plant waste unusable:
To render marijuana plant waste or marijuana product waste unusable, the facility will grind
and incorporate the marijuana waste with either non-compostable or compostable solid wastes
so that the resulting mixture is at least fifty percent (50%) non-marijuana waste. The facility will
use paper waste, plastic waste, cardboard waste, soil, food waste, yard waste, and/or
vegetable-based grease or oils. Management will ensure that the resulting mixture is
composed of no more than fifty percent (50%) marijuana by volume.
Received by AMCO 4.10.18
156
[Form MJ-01] (rev 02/12/2016) Page 14 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
܆܆
܆܆
܆܆
܆܆
܆܆
܆܆
Review the requirements under 3 AAC 306.750, and identify how the proposed establishment will meet the listed requirements.
Applicants should be able to answer “Yes” to all items below.
Marijuana Transportation: Yes No
The marijuana establishment from which a shipment of marijuana or marijuana product originates will
ensure that any individual transporting marijuana shall have a marijuana handler permit required under
3 AAC 306.700
The marijuana establishment that originates the transport of any marijuana or marijuana product will
use the marijuana inventory tracking system to record the type, amount, and weight of marijuana or
marijuana product being transported, the name of the transporter, the time of departure and expected
delivery, and the make, model, and license plate number of the transporting vehicle
The marijuana establishment that originates the transport of any marijuana or marijuana product will
ensure that a complete printed transport manifest on a form prescribed by the board must be kept with
the marijuana or marijuana product at all times during transport
During transport, any marijuana or marijuana product will be in a sealed package or container in a
locked, safe, and secure storage compartment in the vehicle transporting the marijuana or marijuana
product, and the sealed package will not be opened during transport
Any vehicle transporting marijuana or marijuana product will travel directly from the shipping marijuana
establishment to the receiving marijuana establishment, and will not make any unnecessary stops in
between except to deliver or pick up marijuana or marijuana product at any other licensed marijuana
establishment
When the marijuana establishment receives marijuana or marijuana product from another licensed
marijuana establishment, the recipient of the shipment will use the marijuana inventory tracking system
to report the type, amount, and weight of marijuana or marijuana product received
The marijuana establishment will refuse to accept any shipment of marijuana or marijuana product that
is not accompanied by the transport manifest
Section 6 – Transportation and Delivery of Marijuana and Marijuana Products
✔
✔
✔
✔
✔
✔
✔
Received by AMCO 4.10.18
157
[Form MJ-01] (rev 02/12/2016) Page 15 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
Describe how marijuana or marijuana product will be prepared, packaged, and secured for shipment:
Describe the type of locked, safe, and secure storage compartments that will be used in any vehicles transporting marijuana or
marijuana product:
For all transports of products the establishment will create a METRC generated Trip Manifest. All Trip Manifests will be sent with the
products, and an additional copy will be stored and filed on the premises as official business records. The Manifest documents will clearly
have the strain name, type of product, batch number, weight, name of the transporter and handlers ID, time of departure and expected
delivery, and the make, model, and license plate of the transporting vehicle. All marijuana product will be in a sealed package or container
not exceeding five (5) pounds and then stored in a locked storage compartment within the transport vehicle. The transport vehicle will
travel directly between destinations without making any unnecessary stops and at no time during transit will marijuana products be
directly visible. All marijuana packaging will have a label stating that a licensed testing facility has tested each batch in the shipment. All
packaging materials that will be sold to marijuana establishments for sale to consumers will be child-proof and unappealing to children. All
packaging done at the facility will be performed in a specific 24 hour surveillance monitored area and will then be packaged in a uniform
manner with labels secure and clearly displayed. Packaged marijuana will be stored in a secured area until ready for display or transport,
and will be inspected, accepted or rejected, and recorded in an official log. The company will check all packages to make sure that they
will keep all marijuana from contamination and will check to make sure that the packages will not impart any toxic or deleterious
substance to marijuana. East Rip will use certified scales in compliance with the Alaska Weights and Measures Act, and will maintain
registration and inspection reports at the facility which are available to AMCO at its request. All usable marijuana sold to any marijuana
establishment will be labeled with the following information: (1) the name and license number of the cultivation facility; (2) the date the
marijuana was harvested; (3) the harvest batch number assigned to the marijuana; (4) the date the marijuana was packaged; (5) the net
weight and the quantity of usable marijuana packaged in a standard of measure compatible with the inventory tracking system; (6) a
complete list of all pesticides, fungicides, and herbicides used in the cultivation and preparation of the marijuana; and (7) the date of
expiration if perishable; (8) testing results & date tested; and (9) required warnings (if packaged for retail sale). A label must be affixed to
all shipping containers showing that a licensed marijuana testing facility has tested each harvest batch in the shipment . The label will list:
(1) the date of final testing; (2) the cannabinoid potency profile, expressed as a range of percentages (3) a statement listing the results of
microbial testing; (4) a statement listing the results of residual solvent testing, as applicable; and (5) a statement listing the contaminants
for which the product was tested per the requirements found in 3 AAC 306.475(e)(4).
Any vehicle transporting marijuana will be unmarked and inconspicuous. Vehicles that will be
used for transportation of marijuana will contain a secure and sanitary area affixed to the
inside of the transportation vehicle that will lock and will ensure the products cannot be seen
by anyone from outside of the transportation vehicle. Prior to departure, a manager will ensure
all marijuana is in sealed packages, and locked in the safe and secure
storage compartment in the transport vehicle. All employees will be trained and will understand
that under no circumstances (absent instruction from a duly authorized law enforcement
officer) shall a sealed package containing marijuana be opened during transportation. The
vehicle storage box will be a large rectangular industrial container mounted and secured within
the vehicle, accessible by a combination lock. The structure will be formed of steel, hard
plastic or like materials. From time to time ownership may utilize a third party for transport and
shall ensure the third party transport company has a current and valid Marijuana Handlers'
card.
Received by AMCO 4.10.18
158
[Form MJ-01] (rev 02/12/2016) Page 16 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
܆܆
܆܆
܆܆
܆܆
Describe any signs that you intend to post on your establishment with your business name, including quantity and dimensions:
If you are not applying for a retail marijuana store license, you do not need to complete the rest of Section 7, including Page 17.
Restriction on advertising of marijuana and marijuana products (3 AAC 306.360):
All licensed retail marijuana stores must meet minimum standards for signage and advertising.
Applicants should be able to answer “Agree” to all items below.
No advertisement for marijuana or marijuana product will contain any statement or illustration that: Agree Disagree
Is false or misleading
Promotes excessive consumption
Represents that the use of marijuana has curative or therapeutic effects
Depicts a person under the age of 21 consuming marijuana
Includes an object or character, including a toy, a cartoon character, or any other depiction
designed to appeal to a child or other person under the age of 21, that promotes consumption of
marijuana
Section 7 – Signage and Advertising
dŚĞƌĞǁŝůůďĞƚŚƌĞĞ;ϯͿƐŝŐŶƐǁŝƚŚƚŚĞ
ďƵƐŝŶĞƐƐŶĂŵĞĂŶĚůŽŐŽŽŶŝƚǀŝƐŝďůĞƚŽƚŚĞ
ŐĞŶĞƌĂůƉƵďůŝĐ͘ ĂĐŚƐŝŐŶǁŝůůŶŽƚĞdžĐĞĞĚ
ϰ͕ϴϬϬƐƋƵĂƌĞŝŶĐŚĞƐĂŶĚǁŝůůďĞĂƚƚĂĐŚĞĚ
ƚŽƚŚĞďƵŝůĚŝŶŐ͘
✔
✔
✔
✔
✔
Received by AMCO 4.10.18
159
[Form MJ-01] (rev 02/12/2016) Page 17 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
܆܆
܆܆
܆܆
܆܆
܆܆
܆܆
܆܆
No advertisement for marijuana or marijuana product will be placed: Agree Disagree
Within one thousand feet of the perimeter of any child-centered facility, including a school, childcare
facility, or other facility providing services to children, a playground or recreation center, a public park,
a library, or a game arcade that is open to persons under the age of 21
On or in a public transit vehicle or public transit shelter
On or in a publicly owned or operated property
Within 1000 feet of a substance abuse or treatment facility
On a campus for post-secondary education
Signage and Promotional Materials: Agree Disagree
I understand and agree to follow the limitations for signs under 3 AAC 306.360(a)
The retail marijuana store will not use giveaway coupons as promotional materials, or conduct
promotional activities such as games or competitions to encourage sale of marijuana or marijuana
products
All advertising for marijuana or any marijuana product will contain the warnings required under
3 AAC 306.360(e)
✔
✔
✔
✔
✔
✔
✔
✔
Received by AMCO 4.10.18
160
Received by AMCO 4.10.18
161
[Form MJ-01] (rev 02/12/2016) Page 19 of 19
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
(Additional Space as Needed):
Received by AMCO 4.10.18
162
Alaska Marijuana Control Board
Form MJ-02: Premises Diagram
[Form MJ-02] (rev 06/20/2016) Page 1 of 2
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
What is this form?
A detailed diagram of the proposed licensed premises is required for all marijuana establishment license applications, per
3 AAC 306.020(b)(8). Your diagram must show all entrances and boundaries of the premises, restricted access areas, and storage
areas, and dimensions. If your proposed premises is located within a building or building complex that contains multiple businesses
and/or tenants, please provide an additional page that clearly shows the location of your proposed premises within the building or
building complex, along with the addresses and/or suite numbers of the other businesses and/or tenants within the building or
building complex. For those applying for a limited marijuana cultivation license, the proposed area(s) for cultivation must be clearly
delineated.
The second page of this form is not required. Blueprints, CAD drawings, or other clearly drawn and marked diagrams may be
submitted in lieu of the second page of this form. The first page must still be completed, attached to, and submitted with any
supplemental diagrams. An AMCO employee may require you to complete the second page of this form if additional documentation
for your premises diagram is needed.
This form must be completed and submitted to AMCO’s main office before any license application will be considered complete.
Yes No
I have attached blueprints, CAD drawings, or other supporting documents in addition to, or in lieu of, the second
page of this form.
Enter information for the business seeking to be licensed, as identified on the license application.
Licensee: License Number:
License Type:
Doing Business As:
Premises Address:
City: State: ZIP:
Section 1 – Establishment Information
Cook Inlet Cannabis Co.13382
Retail Marijuana Store
EAST RIP
10767 KENAI SPUR HWY, SUITE D
KENAI AK 99611
✔
Received by AMCO 4.10.18
163
[Form MJ-02] (rev 06/20/2016) Page 2 of 2
Alaska Marijuana Control Board
Form MJ-02: Premises Diagram
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
Clearly indicate the boundaries of the premises and the proposed licensed area within that property. Clearly indicate the interior
layout of any enclosed areas on the proposed premises. Clearly identify all entrances, walls, partitions, counters, windows, areas of
ingress and egress, restricted access areas, and storage areas. Include dimensions in your drawing. Use additional copies of this
form or attached additional documents as needed.
Section 2 – Detailed Premises Diagram
Received by AMCO 4.10.18
164
Received by AMCO 4.10.18
165
Received by AMCO 4.10.18
166
1
2
3
4
5
REVISIONS
REMARKSMM/DD/YY 11A..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
08 /01 /2017 RMT
Cook Inlet Cannabis Co. DBA East Rip
Retail License Application / Conditional Use Permit Supplement
Location Reference Photos
Received by AMCO 4.10.18
167
3
22
21
20
1918
17
16
15
14
13
1211
10
9
8
7
6
5
4
3
2
1
B
R
I
D
G
E
A
C
C
E
S
S
R
DFRONTAGE RDS
P
U
R
V
I
E
WKENAI SPUR HWY
SPUR V
IEW
500' PARCEL BUFFER
1000' PARCEL BUFFER
6
FEET
3000
SCALE
500' SETBACK FROM BOUNDARY LOT 1-C KN 83-28 PER COK P&Z ZONING CODE 14.20.330 (b)
Parcel ID Existing Landuse Owner Mailing Address CityStateZip
1 4338001 Vacant KENAI CITY OF 210 FIDALGO AVE STE 200
KENAI, AK 99611
2 4338002 Vacant KENAI CITY OF 211 FIDALGO AVE STE 200
KENAI, AK 99611
3 4338003 Vacant KENAI CITY OF 212 FIDALGO AVE STE 200
KENAI, AK 99611
4 4338004 Commercial KENAI CITY OF 213 FIDALGO AVE STE 200
KENAI, AK 99611
5 4339052 Vacant KENAI CITY OF 210 FIDALGO AVE STE 200
KENAI, AK 99611
6 4339054 Vacant KENAI CITY OF 212 FIDALGO AVE STE 200
KENAI, AK 99611
7 4705101 Institutional KENAI CITY OF 213 FIDALGO AVE STE 200 KENAI, AK 99611
8 4705102 Commercial SCHILLING ALASKA INC 47 SPUR VIEW DR
KENAI, AK 99611
9 4705103 Commercial SCHILLING ALASKA INC 48 SPUR VIEW DR
KENAI, AK 99611
10 4705104 Commercial RPM'S RENTAL PROPERTIES LLC 14096 KENAI SPUR HWY
KENAI, AK 99611
11 4705105 Commercial RPM'S RENTAL PROPERTIES LLC 14097 KENAI SPUR HWY
KENAI, AK 99611
12 4705106 Commercial ZAN INC PO BOX 2009
KENAI, AK 99611
13 4705107 Commercial ZAN INC PO BOX 2009 KENAI, AK 99611
14 4705108 Commercial ZAN INC PO BOX 2009
KENAI, AK 99611
15 4705109 Commercial RPM'S RENTAL PROPERTIES LLC 14096 KENAI SPUR HWY
KENAI, AK 99611
16 4705110 Commercial JACARANDA PROPERTIES INC 416 FRONTAGE RD STE 400-A KENAI, AK 99611
17 4705302 Commercial HOLIDAY ALASKA INC PO BOX 1224
MINNEAPOLIS, MN 55440
18 4705324 Vacant SCHILLING MICHAEL 420 N WILLOW ST
KENAI, AK 99611
19 4705325 Vacant SCHILLING MICHAEL 420 N WILLOW ST
KENAI, AK 99611
20 4705326 Commercial ALASKA INDUSTRIAL HARDWARE INC 2192 VIKING DRIVE
ANCHORAGE, AK 99501
21 4705602
Accessory Building KENAI CITY OF 210 FIDALGO AVE STE 200
KENAI, AK 99611
22 4705805 Vacant KENAI CITY OF 211 FIDALGO AVE STE 200
KENAI, AK 99611
23 4705807 Vacant KENAI CITY OF 212 FIDALGO AVE STE 200
KENAI, AK 99611
NOTES:
1. THE PROPOSED FACILITY WILL OCCUPY A PORTION OF A STRUCTURE ON LOT 1-C, KN 83-28, PID 4705106.
2. PER COK P&Z ZONING CODE 14.20.330 (f) (1) & (2) THERE ARE ZERO (0) PRIMARY OR SECONDARY SCHOOLS (K-12)
WITHIN 1000 FEET OF PROPOSED FACILITY. THERE ARE ZERO (0) VOCATIONAL PROGRAMS, POST-SECONDARY
SCHOOLS, INCLUDING BUT NOT LIMITED TO TRADE, TECHNICAL, OR VOCATIONAL SCHOOLS, COLLEGES AND
UNIVERSITIES, RECREATION OR YOUTH CENTERS, CORRECTIONAL FACILITIES, CHURCHES,A ND STATE LICENSED
SUBSTANCE ABUSE TREATMENT FACILITIES PROVIDING SUBSTANCE ABUSE TREATMENT WITHIN 500 FEET OF THE PORTION
OF THE STRUCTURE THAT WILL CONTAIN THE PROPOSED FACILITY .
Received by AMCO 4.10.18
168
1
2
3
4
5
REVISIONS
REMARKSMM/DD/YY 01A..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
08 /01 /2017 RMT
Cook Inlet Cannabis Co. DBA East Rip
Retail License Application / Conditional Use Permit Supplement
Elevations / Curbside
Received by AMCO 4.10.18
169
1
2
3
4
5
REVISIONS
REMARKSMM/DD/YY 03A..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
08 /01 /2017 RMT
Cook Inlet Cannabis Co. DBA East Rip
Retail License Application / Conditional Use Permit Supplement
Space A
Denali Family Dentistry
Dentist Office
Space B
Hammer Tax & Accounting
Tax / Accounting
Space D
“Proposed Retail Marijuana
Location”
Space C
Kelsis Kloset
Retail Clothing Sales
Space E
1bd Apartment
Currently Occupied
Located above Space D
Separate outside access.
Space Dpp
“Proposed Retail Marijuana
Location”
Adjoining Uses
Received by AMCO 4.10.18
170
1
2
3
4
5
REVISIONS
REMARKSMM/DD/YY 06A..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
..._ _ /_ _ /_ _
08 /01 /2017 RMT
Cook Inlet Cannabis Co. DBA East Rip
Retail License Application / Conditional Use Permit Supplement
Buffer Map 3 of 3
Received by AMCO 4.10.18
171
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-03: Retail Marijuana Store
[Form MJ-03] (rev 02/12/2016) Page 1 of 6
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
What is this form?
This operating plan supplemental form is required for all applicants seeking a retail marijuana store license and must accompany
the Marijuana Establishment Operating Plan (Form MJ-01), per 3 AAC 306.020(b)(11). Applicants should review Chapter 306:
Article 3 of the Alaska Administrative Code. This form will be used to document how an applicant intends to meet the
requirements of those regulations. If your business has a formal operating plan, you may include a copy of that operating plan with
your application, but all fields of this form must still be completed per 3 AAC 306.020 and 3 AAC 306.315(2).
What additional information is required for retail stores?
Applicants must identify how the proposed establishment will comply with applicable regulations regarding the following:
x Prohibitions
x On-site consumption
x Displays and sales
x Exit packaging and labeling
x Security
This form must be submitted to AMCO’s main office before any retail marijuana store license application will be
considered complete.
Enter information for the business seeking to be licensed, as identified on the license application.
Licensee: License Number:
License Type:
Doing Business As:
Premises Address:
City: State: ZIP:
Section 1 – Establishment Information
Received by AMCO 10.26.17
Cook Inlet Cannabis Co. 13382
Retail Marijuana Store
East Rip
10767 Kenai Spur Hwy, Suite D
Kenai ALASKA 99611
13382
172
[Form MJ-03] (rev 02/12/2016) Page 2 of 6
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-03: Retail Marijuana Store
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
܆܆
܆܆
܆܆
܆܆
Applicants should review 3 AAC 306.310 and be able to answer “Agree” to all items below.
The retail marijuana store will not: Agree Disagree
Sell, give, distribute, deliver, or offer to sell, give, distribute, or deliver marijuana or marijuana product in
a quantity exceeding the limit set out in 3 AAC 306.355
Sell, give, distribute, deliver, or offer to sell, give, distribute, or deliver marijuana or marijuana product
over the internet
Offer or deliver to a consumer, as a marketing promotion or for any other reason, free marijuana or
marijuana product, including a sample
Offer or deliver to a consumer, as a marketing promotion or for any other reason, alcoholic beverages,
free or for compensation
Allow a person to consume marijuana or a marijuana product on the licensed premises, except as
provided in 3 AAC 306.305(a)(4)
Describe how you will ensure that the retail marijuana store will not sell, give, distribute, or deliver marijuana or marijuana
product to a person who is under the influence of an alcoholic beverage, inhalant, or controlled substance:
Section 2 – Prohibitions
Received by AMCO 10.26.17
East Rip retail store will have a single customer entrance where a designated East Rip
employee will be stationed to check customer's photo identification and watch for signs of
impairment. All retail store employees will be trained to recognize the signs of impairment and
to refuse entrance/service to any individual suspected of impairment and will inform such
individuals that they must exit the premises and will be breaking the law if they do not comply.
Employees will call local law enforcement for back-up when/if necessary.
✔
✔
✔
✔
✔
173
[Form MJ-03] (rev 02/12/2016) Page 3 of 6
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-03: Retail Marijuana Store
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
܆܆
Yes No
Do you plan to request approval of the board with your initial application to permit consumption of marijuana
or marijuana product in a designated area on the proposed premises?
If “Yes”, describe how you ensure that only marijuana or marijuana products that were purchased at your proposed premises
are being consumed, per 3 AAC 306.305(a)(4):
Describe how marijuana and marijuana products at the retail marijuana store will be displayed and sold:
Section 3 – On-site Consumption
Section 4 – Displays and Sales
Received by AMCO 10.26.17
All marijuana and marijuana products at East Rip will be displayed and stored in the
designated restricted access areas, out of the customers' reach and within locked and secured
display cases, cabinets and refrigerators. Video surveillance cameras will continuously monitor
all areas where marijuana and marijuana products are displayed, stored/stocked and sold.
Cashiers will take customer orders and dispense for sales from behind the point of sales
counter within the restricted access area. All concentrates and edibles will be pre-packaged
and labeled and displayed in the locked glass display counter or refrigerator within the
restricted access area. Marijuana flower may be sold "Deli" style. "Deli" style marijuana will be
displayed in large glass jars behind the sales counter on shelving located at the back wall of
the "marijuana dispensing floor" as shown on the diagram. Once an order has been placed for
"deli style" marijuana flower, the cashier will weigh the desired amount of flower, on a certified
scale, behind the counter and place the marijuana into exit packaging. The cashier will print
the packaging label and adhere it to the package before completing the transaction.
✔
174
[Form MJ-03] (rev 02/12/2016) Page 4 of 6
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-03: Retail Marijuana Store
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
Review the requirements under 3 AAC 306.345, and identify how the proposed establishment will meet the listed requirements.
Describe how the retail marijuana store will ensure that marijuana and marijuana products sold on its licensed premises will
meet the packaging and labeling requirements set forth in 3 AAC 306.345(a):
Provide a sample label that the retail marijuana store will use to meet the labeling requirements under 3 AAC 306.645(b):
Section 5 – Exit Packaging and Labeling
Received by AMCO 10.26.17
Designated East Rip employees will inspect and approve all marijuana products, packaging
and labeling upon arrival and prior to sales. Marijuana and marijuana products transported
from cultivation and product manufacturing facilities will be inspected for quality and
consistency with the transport manifest and shipment labels. Employees will inspect individual
product labels for: (1) name and license number of the cultivation or manufacturing facility; (2)
production lot/batch number (3) strain information (4) net weight of the marijuana or marijuana
product (5) packaging and expiration dates (6) serving sizes for edible products. If the
employee accepts and approves the transport/transfer, the inventory will be entered into metrc
and all paperwork will be stored as business records. The transporting agent and the East Rip
employee will sign the paperwork certifying that all information is accurate and that the transfer
is complete.
175
Received by AMCO 10.26.17
176
[Form MJ-03] (rev 02/12/2016) Page 6 of 6
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-03: Retail Marijuana Store
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
(Additional Space as Needed):
Received by AMCO 10.26.17
177
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3021-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DETERMINING THAT
TRACT C DRAGSETH SUBDIVISION – 2017 ADDITION, LOCATED WITHIN THE EAST ½
SECTION 7, TOWNSHIP 5 NORTH, RANGE 11 WEST, SEWARD MERIDIAN, CITY OF KENAI,
KENAI RECORDING DISTRICT, KENAI PENINSULA BOROUGH, ALASKA IS NOT NEEDED
FOR A PUBLIC PURPOSE AND APPROVING A SALE OF THE PROPERTY FOR ITS
APPRAISED VALUE TO RON HYDE.
WHEREAS, in May 2017 the City Council approved the sale of Tract A, Dragseth Subdivision to
Ron Hyde/ PRL Logistics Inc., with the understanding that the City would also sell the adjacent
airstrip after a subdivision was completed; and,
WHEREAS, a subdivision of adjacent land has been completed creating a new parcel
encompassing the airstrip described as Tract C Dragseth Subdivision – 2017 Addition, Located
within the East ½ Section 7, Township 5 North, Range 11 West, Seward Meridian, City of Kenai,
Kenai Recording District, Kenai Peninsula Borough, Alaska; and,
WHEREAS, the property will be conveyed by a deed subject to entry and right of first refusal
agreement that restricts almost all development on the new parcel, limits the allowable use, and
allows the City a first right to repurchase the parcel for the purchase price adjusted annually by
the Anchorage Consumer Price Index; and,
WHEREAS, the parcel owned by the City is general fund property no longer needed for a public,
purpose and public access along the beach is preserved through easements on the plat; and,
WHEREAS, as of March 30, 2018 the parcel appraised for $56,000; and,
WHEREAS, the sale is a negotiated sale pursuant to KMC 22.05.090 intended to encourage new
enterprise in the City; and,
WHEREAS, the sale is intended to facilitate the operation of airships inside the City utilizing new
technology and enabling a new means of cargo transportation and innovative emergency
management; and,
WHEREAS, it is anticipated that the operation of airships will benefit the City and local economy
bringing in new jobs and a new industry.
178
Ordinance No. 3021-2018
Page 2 of 3
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. Statement of Ownership: That the City of Kenai is the owner of Tract C Dragseth
Subdivision – 2017 Addition, Located within the East ½ Section 7, Township 5 North, Range 11
West, Seward Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough,
Alaska.
Section 2. Public Purpose and Best Interest Finding:
a. That the property is not needed for future public purposes. That the sale of the property is
in the best interest of the City as it is intended to limit development, protect sensitive
habitat, maintain public access along the beach, and promote new economic
opportunities.
b. That the purpose of the sale is to encourage new enterprise, namely the operation of
airships enabling a new means of cargo transportation and innovative emergency
management.
Section 3. Authorization of Sale:
a. That the Kenai City Council hereby authorizes the City Manager to sell the City-owned
land described as Tract C Dragseth Subdivision – 2017 Addition, Located within the East
½ Section 7, Township 5 North, Range 11 West, Seward Meridian, City of Kenai, Kenai
Recording District, Kenai Peninsula Borough, Alaska, including any and all improvements
thereon. The Sale shall be subject to the development and use restrictions and first right
of refusal provided in the attached Deed Subject to Right of Entry and Right of First Refusal
Agreement.
b. That the sale shall be by negotiated sale pursuant to KMC 22.05.090 –Conveyance to
Encourage New Enterprise, for the March 30, 2018 appraised fair market value of
$56,000.
Section 4. Title: That title shall be conveyed by the attached Deed Subject to Right of Entry and
Right of First Refusal Agreement.
Section 5. Proceeds of Sale. That should a sale of the property be finalized, per Article 5-11 of
the Kenai Municipal Charter, all revenues of the sale shall be recorded in the General Land Sale
Permanent Fund. The principle balance of the General Land Sale Permanent Fund may not be
spent or appropriated for any purpose, however revenues earned on the investments of the fund
may be used for any lawful purpose.
Section 6. 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.
179
Ordinance No. 3021-2018
Page 3 of 3
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Section 7. 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 * day of *, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, City Clerk
Introduced: May 2, 2018
Enacted: *, 2018
Effective: *, 2018
180
DEED SUBJECT TO RIGHT OF ENTRY
The Grantor, City of Kenai, an Alaska municipal corporation, whose address is 210
Fidalgo Avenue, Kenai, Alaska 99611 for and in consideration of the sum of Ten and no/100
Dollars ($10.00) in hand paid, does hereby grants and conveys unto Grantee, Ronald Hyde, whose
address is 421 W 1st Avenue, Suite 250, Anchorage, AK 99501, in fee simple subject to the
condition subsequent and covenants and restrictions set forth herein, all of that certain real property
situated within the Kenai Recording District, Third Judicial District, State of Alaska, subject, more
particularly described as follows, to-wit:
Tract C, Dragseth Subdivision 2017 Addition, According to the Official Plat Thereof, Filed
Under Plat Number 2017-60, Records of the Kenai Recording District, Third Judicial
District, State of Alaska.
RESERVING TO THE GRANTOR, all oil, gas and other minerals;
SUBJECT TO easements, restrictions and reservations of record; and
PROVIDED, that the Property shall be used, and Grantee, his heirs and assigns, by
acceptance hereof and by agreement with Grantor, hereby expressly covenants to use the Property,
consistent with and as provided in the attached Covenants and Restrictions on Use of Tract C,
Dragseth Subdivision (the “Covenants and Restrictions”) and the Covenants and Restrictions
shall run with the land and shall be binding upon the Grantee and all other persons and parties
claiming through the Grantee.
PROVIDED FURTHER, as a condition subsequent to this conveyance, that if the
Property is used for purposes other than as set forth in the Covenants and Restrictions, then the
Grantor may enter the Property and terminate the estate herein conveyed.
[SIGNATURE LINES FOLLOW ON NEXT PAGE]
181
Deed Subject to Right of Entry
Page 2
DATED: This ___________ day of _______________, 2018.
GRANTOR:
CITY OF KENAI, Grantor
By ______________________________
As its City Manager
GRANTEE:
Ronald Hyde
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
The foregoing instrument was acknowledged before me this _______ day of
________________, 2018, by Ronald Hyde.
____________________________________
NOTARY PUBLIC FOR ALASKA
My Commission Expires:______
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
The foregoing instrument was acknowledged before me this _______ day of
________________, 2018, by Paul Ostrander, City Manager of the City of Kenai, an Alaska
municipality, on behalf of the municipality.
NOTARY PUBLIC FOR ALASKA
My Commission Expires:______
182
Deed Subject to Right of Entry
Page 3
COVENANTS AND RESTRICTIONS
ON
USE OF TRACT C, DRAGSETH SUBDIVISION
The following covenants and restrictions apply to and are hereby imposed upon
Tract C, Dragseth Subdivision 2017 Addition, According to the Official Plat Thereof,
Filed Under Plat Number 2017-60, Records of the Kenai Recording District, Third
Judicial District, State of Alaska.
1. The Property shall be used the purpose of aircraft landing, loading and departing and for
no other purpose inconsistent with such use.
2. All vegetation on the Property shall be maintained in its natural state except as follows:
a. The existing landing area may be maintained and graded but no additional
material other than sand may be introduced onto the surface except as provided in
paragraph 2.b, below, and the airstrip shall be maintained as a grass surface with
Alaska native grasses.
b. The area labelled “Staging Area” as shown on Attachment 1, not extending more
than 400 feet immediately north of Royal Street, may be surfaced with gravel or
crushed rock, with the exception that any vegetative dunes must be maintained in
a natural state.
c. Vegetation may be disturbed but only if and to the extent necessary to install and
maintain lighting, a windsock pole, and fencing.
d. A moveable building not exceeding dimensions of 12 feet by 20 feet nor greater
than one story in height may be placed on the property.
e. No improvements other than those provided for in this attachment may be made
to the property.
3. The existing landing area as shown on the sketch attached hereto as Attachment 1 shall
not be expanded except as provided in paragraph 2.b, above.
4. The Property shall not be subdivided
Kenai Recording District
Return to:
City of Kenai
210 Fidalgo Ave.
Kenai, AK 99611
183
Right of First Refusal Agreement
Page 1
RIGHT OF FIRST REFUSAL AGREEMENT
This Right of First Refusal Agreement (this “Agreement”) is made on this ____ day of
_______________, 2018 (the “Effective Date”), by and between Ronald Hyde his heirs and
assigns, whose address is 421 W 1st Avenue, Suite 250, Anchorage, AK 99501, (the “Grantor”), and
the City of Kenai, an Alaska municipality (the “Grantee”) whose address is 210 Fidalgo Avenue,
Kenai, Alaska 99611.
RECITALS
WHEREAS, Grantor is the owner of the following-described property:
Tract C, Dragseth Subdivision 2017 Addition, According to the Official Plat Thereof, Filed Under
Plat Number 2017-60, Records of the Kenai Recording District, Third Judicial District, State of
Alaska (the “Property”);
WHEREAS, Grantee desires to obtain a right of first refusal to purchase the Property; and
WHEREAS, Grantor agrees to grant Grantee a right of first refusal to purchase the
Property.
NOW, FOR AND IN CONSIDERATION of Ten and 00/100 Dollars ($10.00) and other
good and valuable considerations, the receipt and sufficiency of which is hereby acknowledged,
the parties hereto agree as follows:
1. Grant of Right of First Refusal. Grantor does hereby grant, bargain and convey
unto Grantee, during the Term, the exclusive and irrevocable ongoing right of first refusal to
purchase the Property (the “Right”) upon the following terms:
(a) Notification of Sale. If, at any time during the Term, Grantor receives an offer from
a bona fide third party to purchase all or any portion of the Property that is acceptable to Grantor
as evidenced by a signed letter of intent memorializing all of the material business points of such
offer (the “Acceptable Offer”), then Grantor shall, within five (5) days after receipt of the same,
forward a copy of the Acceptable Offer to Grantee.
(b) Exercise of Right. If Grantee elects to exercise the Right, Grantee shall give written
notice of its exercise of the Right to Grantor within ninety (90) days of Grantee’s receipt of the
Acceptable Offer, at the address set forth below. If Grantee fails to exercise the Right during such
thirty (30) day-period, then Grantor shall be free to sell the Property to the bona fide third party on
184
Right of First Refusal Agreement
Page 2
terms and conditions, including the Purchase Price, that are no more favorable to the bona
fide third party than the terms and conditions stated in the Acceptable Offer.
(c) Purchase Price. If the Right is exercised, the “Purchase Price” shall be an amount
equal to the sum of $56,000, adjusted annually on January 1 of each year by an amount equal to
the percentage change of the Consumer Price Index for All Urban Consumers for Anchorage,
Alaska (“Anchorage CPI”). If the Anchorage CPI is not then being published, a similar index will
be used.
(d) Terms/Proration. If the Right is exercised, all costs and terms related to the sale and
purchase of the Property pursuant to the Right other than the Purchase Price shall be as set forth
in the Acceptable Offer, unless expressly modified herein, and shall be documented on the form
of purchase agreement set forth above.
2. Title. Within fourteen (14) days after Grantee has exercised the Right, Grantor shall
deliver to the Grantee a title commitment (the “Title Commitment”) covering the Property which
shall reflect that marketable fee simple title to the Property is vested in Grantor and that same is
insurable by a title insurance company licensed to do business in the State of Alaska at regular
rates, free and clear of all liens, encumbrances, easements and restrictions, excepting only those
permitted encumbrances set forth on Exhibit B hereto (the “Permitted Encumbrances”).
Grantor shall deliver to Grantee, within ten (10) days after Grantee has exercised the Right,
copies, to the extent owned and possessed by or under the control of Grantor, of all site plans and
specifications; surveys and topographic studies of the Property; seismic or geological
investigations/reports; environmental reports; title reports; engineering studies; soils or borings
reports; current tax bills; lease information; and any other documents reasonably pertaining to the
Property. If Grantor receives any notices pertaining to the Property during the Term, it shall deliver
a copy of said notice to Grantee within five (5) days after receipt of the same.
3. Term and Extension. The term of this Agreement shall commence on the Effective
Date of, and expire ninety-nine years from the date hereof.
4. Remedies upon Default. If Grantor shall default hereunder, Grantee may bring an
action for specific performance and/or exercise all rights and remedies available to Grantee at law
or in equity.
5. Possession. Upon any exercise of the Right, Grantee shall be entitled to the
exclusive and lawful possession of the Property at closing.
6. Entire Agreement. This Agreement, including the exhibits hereto, which are
incorporated herein by reference and made a part hereof, constitutes the sole and entire agreement
of the parties to this Agreement with respect to the subject matter contained herein, and supersedes
all prior and contemporaneous understandings and agreements, whether written, oral, express or
implied, with respect to such subject matter.
185
Right of First Refusal Agreement
Page 3
7. Amendment. This Agreement may only be amended, modified or supplemented
by an agreement in writing signed by each party hereto.
8. Notices. All notices, requests, consents, claims, demands, waivers and other
communications hereunder shall be in writing and shall be deemed to have been given (a) when
delivered by hand (with written confirmation of receipt); (b) when received by the addressee if
sent by a nationally recognized overnight courier (receipt requested); or (c) when received if
mailed by certified or registered mail, return receipt requested, postage prepaid. Such
communications must be sent to the respective parties at the addresses set forth above (or at such
other address for a party as shall be specified in a notice given in accordance with this Section 8)
9. Governing Law. This Agreement (including its formation, construction,
termination and the relationships between the parties hereto) shall be governed by and construed
in accordance with the internal laws of the State of Alaska without giving effect to any choice or
conflict of law provision or rule (whether of the State of Alaska or any other jurisdiction).
10. Choice of Forum. Any legal suit, action or proceeding arising out of or based upon
this Agreement or the transactions contemplated hereby shall be instituted exclusively in the
United States District Court for the District of Alaska or the Trial Court for Third Judicial District
of Alaska, in each case located in Kenai, Alaska and the appropriate appellate courts therefrom,
and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit,
action or proceeding. Service of process, summons, notice or other document by mail to such
party’s address set forth herein shall be effective service of process for any suit, action, or other
proceeding brought in any such court. The parties irrevocably and unconditionally waive any
objection to the laying of venue of any suit, action or any proceeding in such courts and irrevocably
waive and agree not to plead or claim in any such court that any such suit, action or proceeding
has been brought in an inconvenient forum.
11. Waiver of Jury Trial. EACH PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
12. Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective successors and permitted assigns.
13. Headings. The headings in this Agreement are for reference purposes only and
shall not affect the interpretation of this Agreement.
14. Severability. If any term or provision of this Agreement is invalid, illegal or
unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any
other term or provision of this Agreement or invalidate or render unenforceable such term or
provision in any other jurisdiction. Upon such determination that any term or other provision is
invalid, illegal or unenforceable, the parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the parties as closely as possible in a mutually acceptable
186
Right of First Refusal Agreement
Page 4
manner in order that the transactions contemplated hereby be consummated as originally
contemplated to the greatest extent possible.
15. Waiver. No waiver by any party of any of the provisions hereof shall be effective
unless expressly set forth in writing and signed by the party so waiving. No waiver by any party
shall operate or be construed as a waiver in respect of any failure, breach or default not expressly
identified by such written waiver, whether of a similar or different character, and whether
occurring before or after that waiver. No failure to exercise, or delay in exercising, any right,
remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege.
16. Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed to be an original, but all of which together shall be deemed to be one and the same
agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of
electronic transmission shall be deemed to have the same legal effect as delivery of an original
signed copy of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement on this the _____
day of ______________, 2018.
GRANTOR:
Ronald Hyde
GRANTEE:
City of Kenai
By:
Paul Ostrander
City Manager
187
Right of First Refusal Agreement
Page 5
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
The foregoing instrument was acknowledged before me this _______ day of
________________, 2018, by Ronald Hyde.
NOTARY PUBLIC FOR ALASKA
My Commission Expires:__________
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
The foregoing instrument was acknowledged before me this _______ day of
________________, 2018, by Paul Ostrander, City Manager of the City of Kenai, an Alaska
municipality, on behalf of the municipality.
NOTARY PUBLIC FOR ALASKA
My Commission Expires:__________
188
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager
DATE: April 26, 2018
SUBJECT: Ordinance 3021-2018 – Sale of Airstrip property to Ron Hyde
______________________________________________________________________
In May of 2017, the City Council approved the sale of Tract A, Dragseth Subdivision to Ron Hyde
through Ordinance 2957-2017 (substitute). That sale was contingent on the ability of Mr. Hyde to
purchase adjacent City owned land for the use of an existing airstrip.
Ron Hyde has been operating the airstrip since May of 2017 under a Special Use Permit issued
by the City Council through Resolution No 2017-20. A conditional use permit was issued by the
City of Kenai Planning and Zoning Commission on the airstrip property to allow its use as an
airport. The conditional use permit will remain with the property after sale.
The planned use of the airstrip by airships - new technology developed and manufactured by
Lockheed Martin - will provide jobs and will benefit the local economy. This ordinance authorizes
the sale of the airstrip parcel, now subdivided as Tract C Dragseth Subdivision – 2017 Addition
for the fair market appraised value of $56,000.
Your consideration is appreciated.
Attachments:
Ordinance No. 2957-2017 (substitute) and associated memo
Resolution No. 2017-20 and associated memo
189
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 2957-2017 (SUBSTITUTE)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE
SALE OF TRACT A , DRAGSETH SUBDIVISION 2016 ADDITION, ACCORDING TO THE
OFFICIAL PLAT THEREOF, UNDER PLAT NO. 2016-22 , FILED IN THE KENAI RECORDING
DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, INCLUDING ALL
IMPROVEMENTS THEREON, TO PRL LOGISTICS INC., AND PROVIDING THE SALE
PROCEEDS TO THE STATE OF ALASKA FOR REIMBURSEMENT INTO GRANT NO . 15-DC-
078 FOR USE BY THE CITY TO CONTINUE ENHANCING ACCESS AND OTHER RELATED
IMPROVEMENTS TO THE SOUTH BEACH.
WHEREAS , the City manages dip net access issues on its beaches which includes conflicts
between local property owners and dip net fishery participants; and,
WHEREAS, in 2014 the City Council appropriated $1 ,900,000 of State Grant funds (Grant No .
15-DC-078) via Ordinance No. 2771-2014 for the purpose of designing and constructing a new
roadway for access to the South Beach and related improvements to help alleviate such
conflicts; and,
WHEREAS, after numerous meetings with affected property owners and state and federal
agencies weighing alternatives for improved access, including obtaining permitting for building a
new road across City owned wetlands, the City with State approval , authorized the purchase of
seven abutting parcels from Ark Propert ies, LLC for the purpose of constructing a new road with
minimal wetland disturbance through Resolution No . 2015-50 (Substitute); and ,
WHEREAS, the City needed only a portion of the newly acquired property for the purpose of
road construction; and ,
WHEREAS, the State's approval of the utilization of Grant funds for the purchase of the property
was conditioned on proceeds from the sale of the unneeded property and improvements
thereon going back into the grant for the City 's use for South Beach access and related
improvements ; and,
WHEREAS, the City completed construction of a new road providing beach access and a re-plat
of the seven parcels allowing the City to maintain the land needed for the road and maximizing
the value of the unneeded land and improvements for resale ; and,
WHEREAS , the City is expending sign ificant funds maintaining the land and improvements for
re-sale and the nature of the improvements limits the available market ; and ,
WHEREAS, PRL Logistics, Inc., (PRL) has made an offer to purchase the property based on
numerous conditions ; and,
New Text Underlined; [DELETED TEXT BRACKETED]
190
Ordinance No. 2757-2017
Page 2 of 3
WHEREAS, PRL 's business plan is to potentially use the property for office space, lodging,
restaurant/bar, event hosting and airport related activities to support its business, including the
operation of an airship; and,
WHEREAS, all of these uses will require the approval by City Planning Commission of
conditional use permits given the current zoning of the property; and,
WHEREAS, PRL 's offer is also conditioned on the ability to purchase adjacent City owned land
for the use of an existing airstrip for fix winged and airship uses; and,
WHEREAS , PRL 's acquisition of the adjacent property will require a subdivision and conditional
use permit; and,
WHEREAS , PRL has previously refurbished and repurposed old cannery property in the City
demonstrating a responsibility towards environmental sensitivity and respect for the history of
the City; and,
WHEREAS , it is anticipated that PRL 's acquisition of additional property in the City will create
new economic opportunities and will be managed in a responsible manner; and,
WHEREAS, the City Council finds that it is in the best interest of the City to sell Tract A,
Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 2016-
22, filed in the Kenai Recording District. Third Judicial District. State of Alaska, including all
improvements thereon to PRL for the purchase price of $825 ,000; and ,
WHEREAS, in accepting PRL's offer, the City Council agrees to work cooperatively with PRL for
the future sale of the adjacent City owned lands that include the airstrip; and;
WHEREAS , the property being sold is unique in that it is neither General Fund Land, nor Airport
Land, but instead land he ld by the State Grant, therefore City Code provisions governing
General Fund Land and Airport Land do not apply; and
WHEREAS, the City Council finds that it is in the best interest of the City to sell the property for
the aforementioned reasons to PRL without a recent appraisal.
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. Statement of Ownership: That the City of Kenai is the owner of Tract A,
Dragseth Subdivision 2016 Addition , according to the official plat thereof, under Plat No. 2016-
22, filed in the Kena i Recording District, Third Judicial District, State of Alaska, includ ing all
improvements thereon .
Section 3 . Public Purpose and Best Interest Findings : That the property is not needed for
future public purposes . The sale of the Property is in the best interests of the City as it is
intended to promote new economic opportunities and the proceeds will be used to continue
development of access to the South Beach and related improvements in compliance with Grant
No. 15-DC-078.
New Text Underlined ; [DELETED TEXT BRACKETED)
191
Ordinance No. 2757-2017
Page 3 of 3
Section 4. Authorization of Sale: That the Kenai City Council hereby authorizes the City
Manager to sell the City-owned lands described as Tract A, Dragseth Subdivis ion 2016
Addition, according to the official plat thereof, under Plat No . 2016-22, filed in the Kenai
Recording District, Third Judicial District, State of Alaska, including all improvements thereon,
under the terms established in the attached Purchase and Sale Agreement and Addendum
subject to the additional essential terms and conditions of sale on page 6 of the Purchase and
Sale Agreement as amended by the Addendum.
Section 5. Title: That title shall be conveyed by warranty deed.
Section 6. Proceeds of Sale: That should a sale of the property be finalized, all revenues
from the sale shall be provided to the State of Alaska for Grant No. 15-DC-078 for the City's use
for South Beach access and related improvements.
Section 7. 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 8. Effective Date: That pursuant to KMC 1 .15.070(f), this ordinance shall take effect
30 days after adoption. (Emergency ordinances and ordinance making , repealing, transferring,
or otherwise changing appropriations, shall go into effect immediately upon passage unless they
specify a later time: "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 17th day of May, 2017.
ATTEST:
~·~<£.
if3RIAN GABRIEL SR., MAYOR
New Text Underlined ; [DELETED TEXT BRACKE T ED]
Introduced: May 3 , 2017
Enacted : May 17, 2017
Effective: June 16, 2017
192
'tltflqr «J/tli (l Pa~~ e~ «J/t/i Q h.trv-e II
210 FidalgoAve, 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 ?,o ·
May 10, 2017
Ordinance 2957-2017 (Substitute)-addendum to purchase and sale
agreement modifying financing method
This substitute ordinance recognizes and incorporates two addendums to the original pu rchase
and sale agreement received from the buyer's agent that modify the terms and conditions of t he
sale . The original purchase and sale agreement anticipated owner financing w ith a down
payment of 15% and an interest rate of 4% for 6 months or December 31 , 2017 , whichever was
earlier, followed by a balloon payment for the remaining principal at that time to satisfy the t erms
of the loan.
The buyer is now proposing to utilize conventional financing for the purchase of the property w ith
closing scheduled for June 20, 2017. Modifications to closing costs for the buyer and seller as a
result of the change in financ ing are also outlined on the addendum and First National Bank is
removed as the ho lder of the escrow.
The two addendums are attached for your reference .
193
Sponsored by: Administration
CITY OF KENAI
RESOL UTION NO. 2017-20
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, APPROVING A
SPECIAL USE PERMIT FOR PRL LOGISTICS INC., FOR THE CONTINGENT USE OF AN
AIRSTRIP ON CITY OWNED PROPERTY ADJACENT TO THE SOUTH BEACH.
WHEREAS, the City is in the process of selling PRL Logistics Inc., (PRL) a parcel of property as
provided in Ordinance No. 2957-2017; and,
WHEREAS, one condition of the sale is that PRL also be able to purchase adjacent City land that
contains an airstrip for airship and fixed wing operations ; and,
WHEREAS , the airstrip is on several parcels of City land and the sale of the 'airstrip ' property
cannot be completed until a future subdivision occurs; and,
WHEREAS, the Special Use Permit authorized by this Resolution is intended to allow PR L
authority to occupy the airstrip prior to the future subdivision and sale of the property; and,
WHEREAS, while the Special Use Permit authorizes PRL to occupy the property for purposes of
aircraft operations, the limitations of zoning on the parcels on which the airstrip s its , additionally
requires the Planning and Zoning Commission to approve airport uses as a conditional use before
any aircraft operations can occur; and
WHEREAS , as provided in Ordinance No. 2957-2017 , the City Council finds that it is in the best
interest of the City to approve this Special Use Permit as PRL's business plans will provide a
unique economic benefit to the City by bringing new i ndustry and business to the area.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the attached Special Use Permit authorizing PRL to occupy the airstrip
identified in the Special Use Permit for aircraft operations is approved. The City Manager is
authorized to execute the Special Use Permit, with the cond ition that actual aircraft uses of the
property cannot actually begin until and unless additional separate Conditional Use Permits are
obtained by PRL from the City's Planning and Zoning Commission .
Section 2. That this Resolution takes effect immediately upon passage .
ATTE
194
"(ltflap «1/t/e, fl Pa$'t, e~ «1/t/e, fl Fu.t~ 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 Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
May 10, 2017
Resolution 2017-20 Approving A Special Use Permit For PRL Logistics
The City of Kenai is currently considering the sale of Tract A, Dragseth Subdivision, 2016 Addition
to PRL Logistics. One condition of that sale is that PRL Logistics also be able to purchase the
adjacent City land that contains an airstrip. This resolution approves the issuance of a Special
Use Permit (SUP) that authorizes non-exclusive use of that airstrip and surrounding area of
approximately 3 acres as shown on the attached Exhibit A.
Eventually, PRL Logistics intends on using the airstrip for aircraft operations, including utilization
by both fixed wing aircraft and an airship. However, during the term of the SUP, only fixed wing
aircraft will be using the airstrip, therefore only approximately 3 acres of the area will be utilized .
While this SUP authorizes PRL Logistics to occupy this area for these purposes, separate
Conditional Use Permits issued by the Planning and Zoning Commission will also be required
before those activities may be conducted .
If PRL Logistics is successful in obtaining this SUP as well as the necessary associated
Conditional Use Permits, the intent of Administration is to begin the process of creating a saleable
parcel of approximately 25 .32 acres through subdivision as depicted on Exhibit A pursuant to the
proposed purchase agreement for Tract A. Once the subdivision is recorded, an ordinance
authorizing the sale of the new parcel would be presented to Council for their consideration . The
sales price of the parcel would be fair market value as determined by a fee appraisal.
195
~ -~-v ~-s ~-R -~ A_s E-R ~-, c\~
9330 Vanguard Drive, Suite 201
Anchorage, A laska 99507
Phone: (907) 929-2226
Fax: (907) 929-2260
Email: admin@reliantadvisory.com
www .reliantadvi sory.com
NHN Royal St
NHN Royal St
Kenai, Alaska 99611
Latitude: 60.5329, Longitude: -151.2 7033
R eliant R eference Numb er: 18-0250
as of March 30, 2018
Prepared For:
Ronald Hyde, Jr.
196
Letter of Transmittal
April 23 , 2018
Mr. Ronald Hyde, Jr.
1948 Brandilyn St.
Anchorage, AK 99516
RE: NHN Royal St
NHN Royal St
Kenai, Alaska 996 11
Dear Mr. Hyde:
RELIANT
~~~~~~~~LLC
----~AOV I S O RV SER VI CES
9330 Vang uard Drive, Suite 20 1
Anchorage , Alaska 99507
Phone: (907) 929-2226
Fax: (907) 929-2260
Email: admin@reli antadvisory.com
www.re li antadvisory.com
At your request, an appraisal of the above referenced property has been prepared. The results of the
assignment are presented in Appraisal Report format. The purpose of the assignment is to estimate the current
market va lue of the real estate subject to planned restrictions on use. The Fee Simple interest in the subject has
been analyzed.
The report will b e used by you (the Client) and the City of Kenai for prospective acquisition/sale purposes.
Although other parties may in some cases obtain a copy of thi s report, it should not be relied upon by anyone
other than the intended users or for anything other than the intended use.
This assignment has been prepared and presented in conformance with your instructions, the current Uniform
Standards of Professional Appraisal Practice (USP AP) as promulgated by the Appraisal Standards Board of the
Appraisal Foundation, as well as the bylaws of the Appraisal Ins titute.
The subject is a large acreage tract improved with a small grass airstrip. A site and neig hborhood inspection
h as been made and photographs taken. Market infonnation and data regarding other sim ilar real estate has
been obtained. This data has been analyzed using appropriate techniques and methodologies necessary to
develop a credib le estim a te of market value.
The economy and real estate markets are changing in Alaska, with a greater amount of uncertainty than in
recent history. This appraisal is va lid as of the effective date, based on the market information, publications,
a nd forecasts that are readily avai lable to market participants as of the effective date . It is acknowledged that
anecdotal evidence, including di scussions wi th market participants, suggests a softening real estate market.
That said, in many segments of the market there is li mited current comparable data availab le that would
indicate and quantify any changes in prices .
18-0250 Letter of Transmittal Page i
197
l!-~-v ~-s ~-R -~ A_s E-R ~-1 c \~
RE: NHN Royal St
The appraiser has relied upon the most current and relevant data a vailable, while at the same time attempting to
reflect the perspective of market participants, including owner-users, inves tors , buyers and s ellers. The
intended users of thi s report should be aware that the appraisal is intended to reflect the general prevailing
consensus of market expectations as of the effective date and that these may ultimately tum out to be
materially different than events that actually occur subsequent to the effective d ate.
As a re sult of research and analys is , the value estimate for the s ubject is a s follows:
FINAL MARKET VALUE ESTIMA1E -ENCUMBERED
NHN Royal St
P roperty Rights
Value Perspective
Effective Date of Appraisal
Final Market Value Estimate
Fee Simple
Current
March 30, 2018
$56,000
The value estimates are based on a marketing period of approximately 12 months and an exposure period of
approximately 12 months. The value opinion reported above is qualified by certain assumptions, limiting
conditions, certifications and definitions, which are set forth in the body of the report. This letter is invalid as
an opinion of value if detached from the report, which contains the text , exhibits and Addendum. Thank you
for the opportunity to be of service. If you have any questions, please feel free to call.
Respectfully submitted,
l'){L l\)(t VJ . ~7Zl lu LvVl-1.J\..l..
Barbara J . Belluomini
Alaska Certified General -No. 706
18-0250 Letter of Transmittal Page i i
198
NHN Royal St Certification
Certification
The undersigned certifies that, to the best of her knowledge and belief:
I . The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and
limiting conditions, and are her personal, impartial and unbiased professional analys e s, opinions, and
conclusions.
3. She has no present or prospective interest in the property that is the subject of this report and no personal
in terest with respect to the parties involved.
4 . She has no bia s with respect to the property that is the subject of this report or to the parties involved with
this assignment.
5. She has not provided a previous service, as an appraiser or in any other capacity, regarding the subject
within the three years prior to accepting thi s assignment.
6. Engagement in thi s assignment was not contingent upon her developing or reporting predetermined
results.
7. Compensation for completing this assignment is not contingent upon the development or reporting of a
predetermined value or direction in value that favors the cause of the client, the amount of the value
opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to
the intended use of this appraisal.
8. Analyses, opinions and conclusions were developed, and this report has been prepared, in conformity
with the Uniform Standards of Professional Appraisal Practice.
9. A personal walk-through of th e subject property has been made by Barbara Belluomini.
I 0. No one provided significant real property appraisal assistance to the person signing thi s certification and
s he is competent and qualified to perform the appraisal assignment.
11. The reported analyses, opinions and conclusions were developed , and thi s report has been prepared, in
confonnity with the requirements of the Code of Professional Ethics and Standards of Professional
Appraisal Practice of the Appraisal Institute.
12. The use of thi s report is subject to the requirements of the Appraisal In st itute relating to review by its
duly authorized representatives.
13. As of the date of this report, Barbara Belluomini has completed the requirements of the continuing
education program for Practicing Affiliates of th e Appraisal Institute and for certified appraisers in the
State of Alaska.
P)(L (}tt v: 4. v,,..<..l lu C:vV'l-,J'\..l
Barbara J. Belluomini
Alaska Certified General No. 706
18-02 50 Page iii RELIANT
-----llC
IC VI SCI' Slll l [f5
199
NHN Royal St Table of Contents
Table of Contents
LETTER OF TRANS MITT AL .................................................................................................................................. I
CERTIFICATION .................................................................................................................................................... 111
TABLE OF CONTENTS ........................................................................................................................................... V
ASSIGNMENT OVERVIEW ................................................................................................................................ -1 -
IDENTITY OF PROPERTY ........................................................................................................................................ -1 -
Name ............................................................................................................................................................... -I -
Brief Description ............................................................................................................................................. -I -
Address ............................................................................................................................................................ -I -
Geo Coordinates ............................................................................................................................................. -I -
Physical Location ............................................................................................................................................ -I -
Assessor's Tax Parcel Number(s) ................................................................................................................... -I -
Abbreviated Legal Description ....................................................................................................................... -I -
SCOPE OF ASSIGNMENT ........................................................................................................................................ -I -
Value Definition .............................................................................................................................................. -I -
Other Definitions ............................................................................................................................................. -2 -
Purpose ........................................................................................................................................................... -2 -
Intended Use ................................................................................................................................................... -2 -
Intended Users ................................................................................................................................................ -2 -
Property Interest Appraised ............................................................................................................................ -2 -
Property Rights Appraised .............................................................................................................................. -2 -
Report Presentation ........................................................................................................................................ -2 -
Inspection Date ............................................................................................................................................... -2 -
Effective Date .................................................................................................................................................. -2 -
Report Date ..................................................................................................................................................... -3 -
SCOPE OF WORK ................................................................................................................................................... -3 -
Overview ......................................................................................................................................................... -3 -
Limitations to Scope of Work .......................................................................................................................... -3 -
Compliance ..................................................................................................................................................... -3 -
Assignment Presentation ................................................................................................................................. -3 -
Special Client Instructions .............................................................................................................................. -3 -
Subject Inspection ........................................................................................................................................... -3 -
Information Provided to Appraiser for Consideration .................................................................................... -3 -
Market Analysis ............................................................................................................................................... -4 -
Approaches to Value ....................................................................................................................................... -4 -
Valuation Process ........................................................................................................................................... -4 -
OWNERSHIP AND SALES I NFORMATION ................................................................................................................ -5 -
Current Owner of R ecord ................................................................................................................................ -5 -
Three Year Transaction History ...................................................................................................................... -5 -
EXTRAORDINARY ASSUMPTIONS , LIMITING CONDITIONS .................................................................................... -5 -
HYPOTHETICALCONDITIONS ................................................................................................................................ -6-
COMPETENCY OF APPRAISER ................................................................................................................................ -6 -
AREA DATA .......................................................................................................................................................... -7 -
REGIONAL AREA DATA ........................................................................................................................................ -7 -
LOCAL AREA DATA ............................................................................................................................................ -10-
Employtnent Data ......................................................................................................................................... -I 0 -
Kenai ............................................................................................................................................................. -I I -
Soldotna ........................................................................................................................................................ -I I -
18-0250 ~ RELIANJ
~'II I l
Page v
200
NHN Ro yal St Table of Contents
Ka/ifornsky Beach (K-Beach) Road Area ................................................................................................... -11 -
Conclusion .................................................................................................................................................... -12 -
NEIGHBORHOOD D ATA ....................................................................................................................................... -13 -
Name ............................................................................................................................................................. -13 -
Location & A ccess ........................................................................................................................................ -13 -
Character & Land Uses ................................................................................................................................ -13 -
Surrounding Uses .......................................................................................................................................... -13 -
Typical Age of Improvements ........................................................................................................................ -13 -
Land D evelop ed ............................................................................................................................................ -13 -
Life Cycle ...................................................................................................................................................... -13 -
Trends ........................................................................................................................................................... -1 3 -
lMMEDlA TE NEIGHBORHOOD MAP ..................................................................................................................... -14 -
IMMEDIATE NEIGHBORHOOD PHOTOGRAPHS ..................................................................................................... -15 -
MARKET ANALYSIS ......................................................................................................................................... -17 -
WATERFRONT ACREAGE TRACTS ....................................................................................................................... -17 -
Classification ................................................................................................................................................ -17 -
Overview of Market Survey ........................................................................................................................... -17 -
Market Supply ............................................................................................................................................... -17 -
Market Demand ............................................................................................................................................. -17 -
Equilibrium Status ......................................................................................................................................... -18 -
Near Term Market Outlook ........................................................................................................................... -18 -
IMPACT OF LOW OIL PRICES ............................................................................................................................ -18 -
Current Conditions ....................................................................................................................................... -18 -
SUBJECT'S COMPETITlVE POSITION .................................................................................................................... -19 -
Competitive Strengths I Downward Risk Influences ..................................................................................... -19 -
Competitive Weaknesses I Upward Risk Influences ...................................................................................... -19 -
Impact of Market Conditions on Subject ....................................................................................................... -19 -
DESCRIPTION OF SITE .................................................................................................................................... -21 -
Address .......................................................................................................................................................... -2 1 -
Geo Coordinates ........................................................................................................................................... -2 1 -
Physical Location .......................................................................................................................................... -2 1 -
Assessor's Tax Parcel Number ..................................................................................................................... -21 -
Abbreviated L egal D escription ..................................................................................................................... -21 -
Gross Site Area ............................................................................................................................................. -21 -
Shape ............................................................................................................................................................. -2 1 -
Street Fron tage ............................................................................................................................................. -21 -
Access ............................................................................................................................................................ -21 -
Exposure ....................................................................................................................................................... -21 -
Adjacent Land Uses ...................................................................................................................................... -21 -
Topography ................................................................................................................................................... -21 -
Water Frontage ............................................................................................................................................. -2 1 -
Views ............................................................................................................................................................. -2 1 -
Soil Co ndition s .............................................................................................................................................. -2 1 -
We tlands ........................................................................................................................................................ -22 -
Ha z ardous Conditions ................................................................................................................................... -22 -
Flood Zone .................................................................................................................................................... -22 -
Utilities .......................................................................................................................................................... -2 2 -
AERIAL MAP ....................................................................................................................................................... -23 -
PLAT MAP .......................................................................................................................................................... -24 -
Zoning ........................................................................................................................................................... -25 -
Easem ents, Co ve nants, Encroachmen ts & R estrictions ................................................................................ -26 -
Functional Utility .......................................................................................................................................... -27 -
18-0250 ~ RELIAN.J
'.......::)& >I I'
Pag e v i
201
NHN Royal St Table of Contents
PROPERTY ASSESSMENT & TAXES ............................................................................................................ -29-
SUMMARY OF PROPERTY ASSESSMENT & TAXES ............................................................................................... -29 -
R eal Prop erty ................................................................................................................................................ -29-
PROPERTY ASSESSMENT & TAX SUMMARY EXHIBIT .......................................................................................... -29-
SUBJECT PHOTOGRAPHS .............................................................................................................................. -31-
HIGHEST & BEST USE ..................................................................................................................................... -35 -
D EFIN ITIO N & METHODOLOGY ........................................................................................................................... -3 5 -
Scop e of High est & Best Use ........................................................................................................................ -35 -
As-Is -VACANT ................................................................................................................................................. -35 -
Legally Permissible ....................................................................................................................................... -35 -
Physically Possible ....................................................................................................................................... -35 -
Financially Feasible ..................................................................................................................................... -35 -
Maximally Productive ................................................................................................................................... -35 -
LAND VALUATION ........................................................................................................................................... -37 -
I NTRODUCTION ................................................................................................................................................... -37 -
Methodology ................................................................................................................................................. -37 -
Units of Comparison ..................................................................................................................................... -37 -
COMPARABLE D ATA ........................................................................................................................................... -37 -
Sources of Data ............................................................................................................................................. -37 -
Availability of Data ....................................................................................................................................... -37 -
Presentation of Data ..................................................................................................................................... -3 7 -
SUMMARY OF COMPARABLE LAND SALES EXHIBIT ........................................................................................... -38 -
COMPARABLE LAND SALES MAP ........................................................................................................................ -39 -
DESCRCPTION OF DATA ....................................................................................................................................... -40-
Sa/e No. L-1 .................................................................................................................................................. -40 -
Sale No. L-2 .................................................................................................................................................. -40 -
Sale No . L-3 .................................................................................................................................................. -40 -
Sale No. L-4 .................................................................................................................................................. -40 -
Sale No. L-5 .................................................................................................................................................. -40 -
Sale No. L-6 .................................................................................................................................................. -41 -
Sale No. L-7 .................................................................................................................................................. -41 -
OVERVIEW OF ADJUSTMENTS ..................................................................................... " ...................................... -41 -
Nature of Adjustments ................................................................................................................................... -41 -
Property Rights Conveyed ............................................................................................................................. -41 -
Financing Terms ........................................................................................................................................... -42 -
Co ndition s of Sale ......................................................................................................................................... -42 -
Market Conditions ......................................................................................................................................... -42 -
Location ........................................................................................................................................................ -42 -
Road Frontage .............................................................................................................................................. -42 -
Size ................................................................................................................................................................ -43 -
Topography ................................................................................................................................................... -43 -
Shape ............................................................................................................................................................. -43 -
Utilities .......................................................................................................................................................... -43 -
Use I Zoning .................................................................................................................................................. -43 -
Wetlands/Limited Utility ............................................................................................................................... -44 -
Water Frontage ............................................................................................................................................. -44 -
View .............................................................................................................................................................. -44 -
Airstrip .......................................................................................................................................................... -44 -
ADJUSTMENT GRID EXHIB IT ............................................................................................................................... -45 -
D ISCUSSION & ANALYSIS AFTER ADJUSTMENT ................................................................................................. -46 -
LAND VALUE CALCULATION -UNENCUMBERED ............................................................................................... -46 -
18 -0250 RELIANT
----lLC
•t i I
Pag e vii
202
NHN Roya l St Table of Contents
RESTRICTIONS ON USE ........................................................................................................................................ -46 -
FJNALMARKETVALUEESTlMATE ..................................................................................................................... -47-
EXPOSURE P ERIOD .............................................................................................................................................. -4 7 -
MARKETING TIME .............................................................................................................................................. -47 -
GENERAL ASSUMPTIONS & LIMITING CONDITIONS ........................................................................... -49 -
TERMS & DEFINITIONS .................................................................................................................................. -57 -
ADDENDUM: LETTER OF ENGAGEMENT ...............................•.....•.•.•..............................................•....... -59 -
ADDENDUM: DEED SUBJECT TO RIGHT OF ENTRY ............................................................................. -61 -
ADDEND UM: RIGHT OF FIRST REFUSAL AGREEMENT ...................................................................... -63 -
ADDEND UM: EXPERIENCE DATA ...........•................................................................................................... -65-
18-02 50 RELIANT
----llC
I I
Page viii
203
NHN Royal St Assignment Overview
Assignment Overview
Identity of Property
Name
Brief Description
Address
Geo Coordinates
Physical Location
Assessor's Tax Parcel
Number(s)1
Abbreviated Legal
Description
Scope of Assignment
Value Definition
MARKET VALUE
(OCC)2
1 Per Tax Asses sor Records.
NHN Royal St
The subject is a large acreage tract improved with a small grass airstrip.
NHN Royal St
Kenai , Alaska 99611
Latitude: 60.5329, Longitude: -151.2703 3
The subject is located at the end of Royal Street.
049-100-52
Tra ct C Dragseth Subdivision, 2017 Addition, acc ording to th e official
plat thereof, filed under Plat Numbe r 201 7-60, Records of the Kenai
Rec ording Dis tric t, Third Judicial Distric t, State of Alaska. (Per
Department of Natural Resources Records)
The following definition of value is utilized in this report:
Th e most probable price which a property should bring in a competitive and open
market under all c onditions requisite to a fair sale, the buy er and seller each acting
prudently and kno wledgeably , and assuming th e price is not affected by undu e
stimulus. Implicit in this definition is th e consummation of a sale as of a sp ecified
dat e, and the passing of title f rom selle r to th e buyer under condition s wh ereby:
a . the buyer and seller are typica lly motivate d ;
b . both parties are w e ll informed or well a dv ise d, and a c ting in what th ey
c onsider th eir own b est in ter ests;
c. a reas onable time is allowe d for exposure in th e ope n market;
d . payment is made in terms of cash in U.S . dollars or in terms of finan c ial
arrangem ents c omparable th er eto;
e . and th e price represents th e normal cons ide ration for th e property sold
unaffecte d by spec ial or c reative finan cing o r s ales c oncessio ns grante d
by any one assoc iated with th e sale.
2 Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C -Apprai sal s, 34.43
Definitions [g].
18 -0250 ~ RELIANJ
:......,:),1 II
Page -I -
204
NHN Royal St
Other Definitions
Purpose
Intended Use
Intended Users
Property Interest
Appraised
Property Rights
Appraised
Report Presentation
APPRAISAL
REPORT
Inspection Date
Effective Date
18-0250
Assignment Overview
Please refer to the Terms & Definitions section presented in the Addendum for
additional definition s of significant terminology used in thi s report.
To estimate the current market value of the real estate s ubject to planned
restrictions on use .
The intended use of the assignment is for prospective acquisition/sale purpos es. It
should not be relied upon for any other uses.
Ronald Hyde, Jr. (the C lien t) and the City of Kenai
This is an appraisal of the real property. Any intangible and/or personal property
is specifically excluded from thi s va luation.
Fee Simple
Appraisal Report
Prior to the 2014-201 5 edition of the Uniform Standards of Professional Appraisal
Practice (USP AP), USP AP specified two primary narrative reporting formats:
Summary or Self-Contained. Subsequent editions ofUSPAP rep laced these with
the Appraisal Report, a narrative format that is intended to provide minimum
reporting standards. Standard 2-2(a) of current USPAP states the following: "The
content of an Appraisal Report must be consistent with the intended use of the
appraisal and at a minimum ...
(iii) s ummarize information s ufficient to identify th e real estate in volved in th e
appraisal, including th e physical, legal, and economic prop erty chara cteristics
relevant to the assignment ...
(vii) summarize th e scope of work used to develop the appraisal ...
(viii) s ummariz e th e infonnation analyzed, the apprais al m ethods an d techniques
employed , and th e rea soning th at s upports the analy ses, opinions, and conclus ions;
exclusion of th e sales c omparis on approach , cost approac h, or in co me approach must
be explain ed;
Comment: An Appraisal R eport must include sufficient information to indicate that
the appraiser c omplied with the requirements of Standard I. Th e amount of de tail
required will vmy with th e significance of th e information to th e appraisal. Th e
appraiser mus t provide s ufficient information to enable the client and intended users
to unders tand th e rationale for th e opinions and conclusions, including r eco nciliation
of th e data and approaches, in accordance with Standards Rule 1-6. "
In essence, th e Appraisal R eport format is con s istent with the Summ ary apprais al
format described in th e 2012 -2013 and prior edition s ofUSPAP under Standards Rule
2-2(b).
March 30, 201 8
March 30 , 201 8
Page -2 -RELIANT
-----llc
'" I • I I
205
NHN Royal St
Report Date
Scope of Work
Overview
Limitations to Scope of
Work
Compliance
Assignment
Presentation
Special Client
Instructions
Subject Inspection
Information Provided
to Appraiser for
Consideration
18-0250
Assignment Overview
April 23, 2018
Current USP AP requires the appraiser to develop and report a scope of work that
results in credible results that are appropriate for the appraisal problem, intended
users and intended use.
USP AP permits limitations to the scope of work consistent with the appraisal
problem, intended user and intended use. The scope of work has been limited by
the General Assumptions & Limiting Conditions, Extraordinary Assumptions,
Extraordinary Limiting Conditions, and Hypothetical Conditions discussed in the
report and Addendum. The Scope of Work has also been limited based on the
level of infonnation/documentation available to the appraiser
The analysis and reporting of this assignment is compliant with the following:
• Uniform Standards of Professional Appraisal Practice (USP AP) as
promulgated by the Appraisal Standards Board of the Appraisal
Foundation.
• The bylaws of the Appraisal Institute.
• Client appraisal standards as set forth in the letter of engagement
presented in the Addendum.
This is an Appraisal Report as defined by the Uniform Standards of Professional
Appraisal Practice under Standards Rule 2-2(a). This format provides a summary
of the appraisal process, subject data and valuation. The level of detail and
discussion included varies with the significance of the information to the
appraisal, within the context of the intended use and intended users.
This is a two-sided document with new sections beginning on odd numbered
pages. Note, where a section ends on an odd page Microsoft Word will
automatically insert a blank, even numbered page at the end of a section.
The Client ha s requested that the property be appraised subject to planned
restrictions on use .
A site and neighborhood inspection has been made and photographs taken.
Primary data was obtained by the appraiser during the onsite inspection.
Secondary sources of property data include client, property owner, and public
record s. The scope of work is specific to the information on the subject provided
to the appraiser b y the client and property owner. A partial li st of items provided
follows:
• Plat Map
• Deed Subject to Right of Entry (draft)
• Right of First Refusal Agreement (draft)
The following infonnation wa s not available to the appraiser:
Page -3 -
206
NHN Royal St
Market Anal ysis
App roaches to Va lue
•
•
•
Assignment Overview
Title R eport
Preliminary Commitment for Title Ins urance
En vironmental study
Research on macro and micro economic conditions within the subje ct's market has
been conducted. Research on current market conditions within the s ubj ect's sector
of th e real estate market has also been conducted. The Appraisal In stitute
recognizes two categories of market analysis: inferred and fundamental. Inferred
analyses (Level A and B) are basic methods by which future supply and demand
conditions are in ferred by current an d general market conditions (secondary data).
In fundamental ana lyses (Level C and D), genera l information is supplemented by
detailed data in order to forecast supply and demand , as well as subject-specific
absorption and capture (primary data). The market analys is performed in this
ass ignment is based on inferred demand.
LAND VALUATION This approach was developed because it is neces sary to develop a credible and
reliable estimate of market value for th is property type or it h as b een requested b y
the cli ent.
COST APPROACH This approach was n ot developed becau se it is not typica ll y utilized by buyers and
sellers in this market for this type and age of property.
SALES This approach was not developed because it is not typic ally utilized by buyers and
COMPARISON sellers in this market for thi s type an d age of property.
APPROACH
INCOME This approach was not develop ed because it is n ecessary to de velop a credib le and
CAPITALIZATION reliable estimate of market valu e for this property type or it has been requested by
APPROACH the client.
Valuation Process The valuation process may include research and ana lysis performed as part of a
prior assignment, as we ll as new research performed specifically for this
assignment , an d incl uded but was not limited to the following:
1. The problem or nature of assignment was identified .
2. A scope of work was created that lead to credible resu lt s that are appropriate
for the appraisa l problem, intend ed user and intended use.
3. Information necessary to complete the assignment was requested and
obtained from the c li ent and property owner.
4. An area, city and neighborhood ana lysis has been perfonned.
5. An analysis of the s ubj ect's physical and economic characteristics ha s been
perfonned.
6. In terviews have been performed with property representativ es (owners ,
planners, assessors, brokers, developers and other individuals with useful
knowledge and insight on the subject.
207
NHN Royal St Assignment Overview
7. Knowledgeable market participants have been interviewed on the market
conditions for properties s imilar to the subject.
8. An examination of current zoning codes affecting the property has been
performed.
9. The functional utility of the site and/or improv ements has been determined.
10. A detailed e xa mination of the subject's economic characteristics has been
made to determine the property's risk profile and economic potential.
11. A highest and best use analysis for the property was performed.
12. Extensive research to identify transactions involving sim il ar properties was
p erformed.
13 . An analys is of the subject and available data was performed using commonly
accepted valuation techniques and methodologies.
14. The quantity and quality of available data was considered, along with the
applicability of the methodology u sed, and a reconciliation was performed to
arriv e at the final value estimate.
Ownership and Sales Information
Current Owner of
Record
Three Year
Transaction History
According to Department of Natural Resources Records , the appraised interest in
the subject is presently owned by City of Kenai.
Disclosure and analysis of the s ubject's transaction history (sales, agreements of
sale, options, and li s tin gs) within the prior three years is required b y USP AP and,
if applicable, is presented below.
The C ity of Kenai has owned the subject property in excess of the three-year
reporting period .
The Client purchased the adjacent property (at the south) from the City in 2017.
As part of that transacti on, the two parties agreed to negotiate a sale of the s ubject
property as well. The Kenai Pl anning and Zoning Commission approved a
conditional use permit allowing Mr. Hyde to utilize the grass airstrip onsite in the
meantime. No potential purchase price was di sclosed to the appraiser by either
party. This appraisa l report will reportedly be used in the negotiation process
Extraordina1·y Assumptions, Limitin~ Conditions3
Extraordinary assumpti o ns and extraordinary limiting conditions sp ecific to this
3 T hese are presented in this Assignment Overview chapte r because they are specific to this assignment and do not
apply to all assignments. Ho wever, the applicable general assumptions and limiting conditions, which are presented
in the Addenda to thi s report, do apply to all assignments and should not be viewed as less relevant, or carrying Jess
weight, than th ose presente d above simply because of their location wi th th e report. Nor should any assumption or
extra ordinary assumption contained with the body of the report b e viewed as le ss relevant or meaningfu l than tho se
presented above.
18 -0250 Page -5 -
208
NHN Royal St Assignment Overview
assignment follow. The value estimate presented in this report may be amended in
the event that the extraordinary assumptions or limiting conditions are found to be
false. The reader is advised that the use of these assumptions might have affected
the assignment results .
I. In the absence of a wetlands delineation from the Army Corps of Engineers,
the appraiser considered information included on the subdivision plat map,
on the USDA Natural Resource Conservation Service's online Web Soil
Survey and physical clues (e.g. vegetation present, surface water, etc.) during
the onsite inspection in order to estimate the quantity of wetlands onsite.
Ba se d on the information gathered, the site area impacted by low wet areas is
estimated at just over 22 acres (85% of the property). This is not a precise
estimate and it is recommended that a survey be conducted to determine the
exact areas that are impacted. For the purposes of this appraisal, however, it
is an extraordinary assumption of this assignment that the area consisting of
wetlands is 22.31 acres.
2. A Conditional Land Use Permit was previously granted to the Client,
allowing the use/operation of the grass airstrip onsite. This was necessary
becaus e an airstrip is a conditional use in the Rural Residential (RR) Zone. It
is an extraordinary assumption of this assignment that the permit will
continue to be renewed.
Hypothetical Conditions
Hypothetical conditions specific to thi s assignment are as follows. The reader is
advised that the use of these hypothetical conditions might have affected the
ass ignment results .
1. At the request of the Client, the subject property has been appraised based on
the hypothetical condition that its use is restricted to aircraft landing, loading
and departing (see a draft of the Deed Subject to Right of Entry, which
incorporates the Covenants and Res trictions on Use, included in the
Addendum).
2. The sale will also reportedly be subject to a Right of First Refusal Agreement
(draft, again, included in the Addendum). Given the 99-year term and
difficulty in estimating CPI adjustments over an extended period of time, any
potential value impact associated with the terms of this document is
excluded.
Competenc) of Appraiser
18-0250
The appraiser has previously performed similar ass ignments and meets the
Competency Rule of USP AP . Please refer to the Experience Data presented in the
Addendum for further information on the appraiser 's background and experience.
RELIANT
-----llC
,1 I
Page -6 -
209
NHN Royal St
Area Data
Regional Area Data
18-0250
Area Data
Although elements of Alaska's economy are directly affected by certain
national and international factors (e.g. interest rates, the value of the U.S.
Dollar, etc.), Alaska's economic cycles do not typically align with the rest of
the na tion for several reasons. Firs t, Alaska's location -although central to the
indus tri aliz ed world by air -is remote relative to the res t of the U .S. Its
extreme latitude promotes intense but s hort s easons of work. Its prolific natural
resources are valuable, but its ru gged terrain makes them difficult to ex tract and
bring to m arket. La stly, its e xtreme climate deters rapid population growth
which prevents the local population from reaching a self-sustaining level. One
dramatic instance of when Alaska's economy diverged from the Nation 's was
when employment in Alaska continued to increase through the Great Recession
during wh at ended up being 2 1 years of job growth in the s tate followed by
much quicker recovery than the Nation as a whole. Alaska's cycles of growth
and recession ha ve been based on the quantity and price of resources exported
(precious me tals, timber, seafood, coal, and -most importantly -oil ) whi ch
lends to more extreme swings over longer periods of tim e. Today, the Sta te's
economy is more divers e than it ever has been. However, the tripod that
continues to support the economy is made up of oil/gas, government spending,
and other sectors (other mining/natural resources, hos pitality/tourism ,
manufacturing/fishing, and transportation to name a few) and most of the
weight is still placed on oi l/gas.
Alas ka is still highly dependent on the production and price of oil, and while
production has s teadily decreased from a hi gh in th e late 1980 s, the price has
b een vol atil e. Between 201 3 and early 2014, oil sh owed stability ab ove
$95/barrel. Though the problem of low production rema ined (and remains) a
longer-term concern, these oil prices provided b ountiful rev enue to Alaska a t a
time when man y other states were s truggling with crippling budget deficits.
However, due primarily to a glut of new supply fro m the U.S. and some
decreas es in g lob al demand, prices began to s lide in mid-2014. A s o f J anuary
201 8, A lask an crude stand s at roughly $64 p er barrel. A s prices have remained
low, the state go vernment h as fa ced revenue shortfall s ofroughly $3 billion and
sub stantial budg et-ti ghtening (o r additional revenue sources) will presumably
follow in the near to mid-term. The State's substantial budget reserves from
2014 w ill not be able to offse t revenue shortfalls much longer without budget
cuts. The State als o ha s over $50 billion w ithin the Permanent Fund , which -
while no t legal fo r lawmakers to sp end wi thout amending th e State co ns titution
(requirin g a 2;3rds m ajority vote) -does sug gest a stro ng balance sh eet. That
said, the St ate g o vernment h ad an annual averag e o f 800 fewer full-tim e
position s in 201 7 than in 2 01 6 . This is in comparison to th e average o f 1,400
fewer pos itions in 2016 than in 2015. The pressure on the State 's budget at this
time is obv ious, as refle cte d by recent downgrading of it s credit rating b y
Moody's (Aa3), and the other two agencies keeping their ratings (Fitch -AA+,
Standard & Po or's -AA+) along with their a ssigning a "neg ative" outlook.
A ccording to an article in th e An ch orage Dai ly N ews , A DN, (formerl y known
Page -7 -
210
NHN Ro yal St Area Data
as Alaska Dispatch News) from June 20, 2017, Standard & Poor's (S&P) firm
said in a report ""(W)ithout structural fiscal reform in the 2017 legislative
session, we would likel y lower the state debt ratings,". The article continues on
with "adding that it expects lawmakers to enact a budget for the 2018 fiscal year
in the next 90 days. If the state adopts 'a balanced budget with fiscal reforms
that does not significantly rely on reserves,' the agency said it may remove the
state's ratings from the credit watch without a downgrade.". Debate is ongoing
about how to deal with the new fi scal realities of low oil prices -whether with
spending cuts, new revenue sources (including potentially tapping the
Pennanent Fund) or a combination of both. Ultimately, the full impact of lower
oil prices is not yet known . 2017, proved to be a year of discovery, with Bill
Annstrong and hi s partner, Oil Search discovering an oil field that would yield
500 million to three billion barrels of oil. One bright spot, however, was the
recent di scovery of two large oil reserves b y Caelus and Annstrong. These
finds could reportedly yield as much as 200,000 and 120,000 barrels/day in the
future. Beyond oil and gas, the s tate economy continues to benefit from a
confluence of strong production and stable prices for several other natural
re sources (minerals and seafood).
Also buttressing the Alaskan economy is the level of federal spending in the
state. For example, in FY2014, the U.S. government sent a total of$11.3 billion
to Alaska and its residents4 . This sum made Alaska the third highest recipient
of per capita federal dollars for the year (behind Maryland and Virginia). The
level of federal spending in Alaska, per capita, is approximately 50% above the
national average. Meanwhile, job gains in the health care industry h ave been
consistent and strong for most of the last decade. According to the Alaska
Department of Labor, the health care industry added 1,800 jobs in 2017, and it
is expected to add another 700 jobs in 2018. Lastly, after d own years in 2009
and 2010, tourism leveled out and then experienced more noticeable
improvem ent in 2012 through 2016. State economists expect that the
combination of a strengthening national economy and the addition of several
cruise ship s to the Alaskan market will continue to provide a boost for thi s
important industry.
Historic employment changes, as well as th e forecast for 2018 are presented in
the following chart:
4 http ://www.pewtrus ts.org/-/medi a/asset /20 16/0 3/fe deral spendin g in th e states 200 52014 .pdf, accessed Jan-
2017
18 -0250 ~ RELIAN.J
~1,1 •I I
Page -8 -
211
NHN Royal St
Taper ing Job Losses for Alaska
PE RCENT CHANGE FROM PRIOR YEAR , 2008 TO 2018
-0.3%
-l-19'
-1.99'
"P re lim in ary ••Fore ca st
Area Data
Source: AJasko Deponml'nt af Labor an d Worlcfor ce Devefapment, Reseordi andAnotysis
Secricn
According to state economists, Alaska significantly outperformed the Nation's
economy as a whole during the past decade. After the minor losses in 2009
ended 21 straight years of overall job growth, Alaska gained modest jobs
through 2015. However, in 2017, employment decreased by 1.1 %. While some
gains were seen in the health care and local government sectors, they were
relatively minor and more than offset by losses in sectors related to oil and gas
as well as construction. The outlook for 2018 is a further loss of jobs -again
tied to low oil prices and their fallout -but not nearly as severe as the prior
years. Health care and local government are the only two sectors expected to
gain jobs. In summary, the Alaskan economy is suffering from the pressure of
low oil prices and state government budget issues, and this is expected to
continue, with economists5 predicting approximately three more years of
recession followed by a leveling off at the "new nonnal." While the state as a
whole remains relatively healthy at this time, there is clearly nervousness
stemming from future uncertainty regarding the depth and duration of the
current environment.
5 Presentation to Alaska Senate Labor and Commerce Committee on January 18-19, 2017 . Presenters included
Mouhc ine Guettabi and Ralph Townsend (Univers ity of Alaska Anchorage Institute of Social and Economic
Research), and Jonathan King (Northern Economics).
18-0250 Page -9 -
212
NHN Royal St
Local Area Data
Overview
Employment Data
18 -0250
Area Data
The Kenai Peninsula Borough (KPB) is located in Southcentral Alaska. It
covers not only the Kenai Peninsula itself, but also a large, relatively
unpopulated area on the west side of Cook Inlet. According to the Department
of Labor, the estimated population in 2017 was 58,024. Major economic
influences include commercial fishing, oil and gas, and tourism .
Unemployment in the Borough is cyclical, being highest in the winter months
and lowest in the summer months. For the last five years, the average annual
unemployment rate for the KPB (the most specific infonnation available) has
ranged between 7.9 and 8.6 percent. In 2017 , the unemployment rate averaged
8.5 percent; a slight decrease from 2016 (8.6 percent). For comparison, the
average monthly un employment rate for Alaska was 7.2 percent and the United
States was 4.4 percent. Looking back, the annual unemployment rate averages
for the KPB in 2015 and 2014 were both 7.9 percent.
RELIANT
~ IO YI UI' SHY 1 c\'~ Page -10 -
213
NHN Royal St
Kenai
Soldotna
Kalifornsky Beach
(K-Beach) Road Area
18-0250
15 0
! 12 0 .. a: .. c 90 ..
E ..
0
Q. 6.0
E .. c ::> 3 0
00
0 .... ....
0 0 ,... N
N "' 0 0
N N
Year
!
0
N
I 0 K<!nai Pcnn'\Su l a Borough O Alas '<•
Area Data
"' 0
N
'.::
0
N
The city of Kenai is situated on the west coast of the Kenai Peninsula
between the Kenai Mountains and Cook Inlet. According to the 2015 U.S.
Census (American Community Survey) data, Kenai is the most populous
city in the Kenai Peninsula Borough . Kenai's population of 7 ,412 is 12
percent of the KPB and nearly one percent of the population of Alaska. The
2015 figure represented a gain of 412 over the 2010 Census. Kenai
encompasses 29 .9 square miles of land and 5 .6 square miles of water. It lies
59 air miles ( 150 highway miles) to the southwest of Anchorage. The city's
major industries are oil and gas, tourism and fishing (sports, subsistence, and
commercial).
The city of Soldotna is situated about 11 miles southeast of Kenai. As of 2015,
Soldotna's population stood at 4,409, roughly 8% of the Borough's overall
population. The 2015 population figure repre sented a gain of 246 over the 20 l 0
Census. Soldotna encompasses approximately seven square miles of land
centered on the Kenai River, which winds its way across the Peninsula from east
to west. The top five employers are: Central Peninsula Ho spital, Kenai
Peninsula Borough and School Di strict, Fred Meyer retail store, Safeway store,
and Kenai Peninsula College.
Kalifomsky Beach Road is a major arterial that extends from the Sterling
Highway (Mile 96) at the so utheast, in Soldotna, to its intersection with Bridge
Access Road at the northwest. The Kenai city center is northwest of the Bridge
Access Road intersection about three miles. Kalifomsky Beach Road provides
alternate access (from the Kenai Spur Highway) between Soldotna and Kenai .
In addition, from the Bridge Access Road intersection, Kaliforn sky Beach Road
continues an additional 16+/-miles west and then south along the Cook Inlet
bluff to the southern intersection with the Sterling Highway (M ile 109; 13 miles
south of the Soldotna Central Busi ness District).
Some of the Kalifornsky Beach Road area lies within the Kenai and Soldotna
city limits, but the majority lies o utside of any incorporated area.
Page -11 -RELIANT
----LLC
I H I S£1 1 S!ll l [!S
214
NHN Royal St
Conclusion
18-0250
Area Data
Much like the State, the Borough economy is supported by commercial fishing,
oil and gas, and tourism. The Central Kenai Peninsula also benefits from being
the seat of local government and the location of Central Peninsula Hospital.
The hospital has undergone substantial expansion in recent years and continues
to draw practitioners and other healthcare-oriented businesses to the area.
RELIANT -----uc
I CY I EC I' S! H I [ ! S
Page -12 -
215
NHN Royal St
Neighborhood Data
Name
Location & Access
Ar e a Data
Kalifornsky Beach (K-Beach) Road Area -West
The immediate neighborhood is located south (across the Kenai River) of the
Kenai Central Business District (CBD). Access from the CBD is via Bridge
Access Road, Kalifomsky Beach Road , Cannery and Old Cannery Roads. Royal
Street, on which the subject fronts, is north of Kalifomsky Beach Road about 1.6
miles.
The neighborhood location and access/linkages are shown on the Immediate
Neighborhood Map that follow s . Neighborhood access is con sidered typical of
the market.
Character & Land The neighborhood character is demons trated by the neighborhood photos that
Uses follow . These photos were taken in close proximity to the s ubject and are
representative of the ch aracter of the neighborhood. As with mo st of Ala ska and
the local market , neighborhood land uses are mixed.
Surrounding Uses Surrounding uses include Hilcorp, Inlet Fish Producers, The Cannery Lodge, and
PRL Logistics to the eas t/northeast. High-end (mostly cus tom) residential uses
predominate to the south. Cook Inlet and its associated tidal flats border the
property to the west/northwest.
Typical Age of I 980s through new construction
Improvements
Land Developed Roughly 70 -75 %
Life Cycle Developing
DEVELOPING This area continues to be developed with a mixture of indu s trial , marine-oriented
and residential uses, particularly on lots with Cook Inlet or Kenai River frontage.
Most of the new con struction has been for single-family re sidential use .
Trends No major shift in prevailing land uses, real estate economics, or demographics are
anticipated at this time. Given the fixed supply of land , current percentage o f
developed land and demand trend s, neighborhood trend s should be towards
moderately escalating land values and prices over time.
18-02 50 RELIANT ----uc
U VI Sll' Sfl1 1lfl
P age -13 -
216
NHN Royal St Area Data
Immediate Neighborhood Map
'J:_ --!Su bject Property J
I -:M"t t• -I
2non (1
18 -0250 Page -14 -RELIANT
-----LLC
AIYI Sll' HU I CH
217
NHN Roya l St Area D a ta
Immediate Neighborhood Photographs
Res idence (adjacent) Hilcorp Vacant Lot (typi ca l)
Residence (typical) Inlet Fish Producers The Cannery Lodge
18 -0250 ~_R _EL_IA_NJ ~411 1 511' Hlllt!S
Page -15 -
218
NHN Royal St Market Analysis
Market Analysis
\Vaterfront Acreage T racts
Classification
Overview of Market
Survey
Market Supply
Market Demand
18 -0250
An extensive search was made to try to locate sales of properties subject to deed
restrictions like those planned for the subject. No recent sales of any acreage
tracts subject to similar restrictions were identified. At attempt was then made to
locate sales of large acreage tracts with airstrips onsite. Again, no sales were
identified. Two li stings (one current and one expired) of properties improved
with single-family residences and/or hangars, in addition to airstrips, were
identified. After researching them further, they weren't considered really similar
to the subject. G iven the uniqueness of the subject property, then, and the
difficulty in fine-tuning the market data, this market analysis considers conditions
within the waterfront acreage tract market.
The market analysis has been compiled from a variety of sources including a
survey of buyers, sellers , real estate agents, appraisers, city assessor's and other
market participants. Other sources of data include property tax records,
newspaper articles and the Multiple Listing Service (MLS). The availab le data
has been analyzed on a qualitative and quantitative basis.
A search of inlet/river front acreage tracts listed for sale through MLS in the
greater Kenai/Soldotna/Kasilof areas identifies only two. One is an extremely
irregularly shaped 52.66-acre tract located partially above and partially below a
steep 75 to 80'high bluff adjacent to the Redoubt Terrace subdivision in Kenai.
Zoning is Suburban Residential above the bluff and conservation below it. The
bluff is subject to active erosion the actual usable area is unknown. The other
listing is of a 50.48-acre tract fronting on a slough of the KasilofRiver. It is in an
area that is unzoned and is improved w ith a small single-family residence. This
relative lack of available waterfront acreage tracts is not unusual. Most of them
are owned by government agencies (federal, state and/or local) or native
corporations and held for either public or shareholder benefit.
A search of non-waterfront acreage tracts listed for s ale through MLS in the same
areas turned up a total of 23 properties. Two of those are fonner gravel pits, both
grandfathered as materials sites .
A 10-Year Comparison Report of land sales, again, for those same areas (through
MLS) follows:
Page -17 -RELIANT -----LL<
ICYI S l l' S!I Yl (!f
219
NHN Royal St
Equilibrium Status
Near Term Market
Outlook
Mar k et Analysis
10-year Comparison Report
Property Type : Land
Areas 305 -Kenai,310 -Kalifornsk y Beac h,320 -Kasilof.330 -So ldotna ,335 -Rid geway
Construction Type : Ex isting a nd New Con struction
Year #Sold Avg. list Price % List Price Avg. Sold Price % Sold Price Avg.DOM Change Change
20 08 125 $65 ,883 NA $56,9 68 NA 277
2009 5 3 $36,000 45 .36% 532.3 21 -4326% 2 13
2010 75 $57.406 59.46 % S4 7,177 45 .96% 290
2011 84 $35.354 -38 41% $30,020 -36 .37% 283
20 12 8 3 $73,022 106.5 5% 562 ,8 20 109.26% 302
2013 81 $47,7 18 -34 .65% $42,862 -31 .77% 321
20 14 124 $84 ,226 76.5 1% $61,783 44.14% 272
2015 117 $56,6 76 -32 71% $49,799 -19 40% 336
2016 105 $58,523 3.26% $53,2 11 6 .85% 305
2017 1 30 $39 792 -32 01% $34,992 -34 24% 298
This report is , of course, only for those sales occurring through MLS. It does not
consider private transactions. Further, it doesn't differentiate between large
acreage tracts versus small er subdivision lots or lots with water frontage versus
those without. One or two high-dollar sales can rea ll y skew the averages .
Nonetheless , it is possible to see general trends in sales.
Overall , the market is in equilibrium at this time with no significant imbalances in
either supply or demand.
No substantive changes are expected in the near term.
Impact of Low Oil Prices
Current Conditions
18 -0250
As discussed in the Area Data chapter, the price of crude oil has dropped to
roughly hal f of what it was just over two years ago. Although it has been holding
fairly steady at $60-$70/bbl in early 2018 , most experts do not expect a return to
previous high price levels in the near to mid-term. This is obviously of concern in
A laska, as the vast majority of state government revenue stems from oil.
However, availab le sale transactions in the local market have not yet demonstrated
a change in prices. There is nervousness as low oil prices drag on and the State
debates spending cuts (and/or revenue increases via new taxes), but the
transactional data does not indicate that real estate fundamentals have been
negatively impacted thus far. The number of transactions available for analysis
remains low in most cases, but this is not a departure from historic patterns in this
relatively small market.
Generally speaking, appraisers must be careful to reflect the market based on
evidence rather than dictate it based on emotion or opinion. Interviews with
brokers and owners can provide meaningful insight into market expectations.
Page -18 -RELIANT
-----LLC
A!V I S:I' SEH I CES
220
NHN Roy al St Market Analysis
While consideration is given to expected future trends, weight is neces sarily (and
appropriately) placed on actual, documented market activity to date. Efforts have
been made to obtain and analyz e the most recent s ale transactions available in the
subject's market segment. It is the appraiser's opinion the available data fairly
represents current market and e conomic conditions.
Subject's Competitive Position
Competitive Strengths
I Downward Risk
Influences
Competitive
Weaknesses I Upward
Risk Influences
Impact of Market
Conditions on Subject
18-02 50
•
•
•
•
•
Large size (26.25 acres) .
Topography (generally level, with easy acces s to the beach) .
Sub stantial amount of water frontage .
Excellent view amenity .
Availability of electric and natural gas .
Note that, although there is a grass airstrip ons ite, it does not appear to afford the
subject any real advantage within the market segment that it competes.
•
•
•
Quantity of wetlands (es timated to encompass 85% of the site) .
Huge influx of people along the waterfront during the personal us e dipnet
fi shery in Jul y.
Planned restrictions on use .
Given the subject's strengths and weaknesses and, in particular, the planned
res tri ctions on use , it is expected to capture less than its proportionate market
share.
Page -19 -RELIANT -----uc
IH I HI' 5[11 1[!5
221
NHN Royal St Description of Site
Description of Site
Address
Geo Coordinates
Physical Location
Assessor's Tax Parcel
Number 6
Abbreviated Legal
Description
Gross Site Area
NHN Roya l St
Kenai, Alaska 9961 l
Latitude: 60.5 3 29, Longitude: -151.27033
The subject is located at the end of Royal Street.
049-100-52
Tract C Dragseth Subdivision, 2017 Addition, according to the official
plat th er eof, filed under Plat N umber 2017-60, R ecords of th e Ke nai
Recording District, Third Judicial District, State of Alaska. (Per
Department of Natural Resources Records)
Square Fe e t:
Acres:
1,143 ,232
26.25
SOURCE Plat Map
Shape
Street Frontage
Access
Exposure
T h e site is irregularly shaped.
The subject has approx ima tely 263' of frontage on Royal Street.
Access to and from the subject is cons idered a verage relative to competing
prope rties .
Exposure of the subject is considered a verage relati ve to competing properties .
Adjacent Land Uses
Topography
Water Frontage
Views
Soil Conditions
NORTH Vacant wetl and s/tidelands at mouth of Kenai River
SOUTH Single-fami ly residential
EAST C ook Inlet
WEST Industri al
The s ubject ha s predomina ntl y level to pography, with a s li ght slope down al o ng
the waterfro nt.
3,048 ' on Cook Inlet
T he subject offers excellent views of Cook Inlet and the A leutian Range.
The USDA N atural R esources Conservation Service 's online Web Soi l Survey
6 Per Tax Assessor Records.
18 -0250 Page -2 1 -RELIANT ----uc
ICV l!CI' 5 h Yt l!S
222
NHN Royal St
Wetlands
Description of Site
identifies soils in the area as a mix of Clunie Peat, Soldotna Silt Loam and Typic
Cryaquents. C lunie Peat consists of peat over silty clay loam formed on tidal flats.
These s oils are very poorl y drained , with a very hi gh runoff. Soldotna Silt Loam
consists of a sh-influenced loess over sandy and gravelly drift formed on outwash
plains and moraines on till plains. These so il s are very deep an d well drain ed.
Runoff varies from low to high. Typic Cryaquents consist of s lightly decomposed
plant material over silt loam and very gravelly san d formed on delta s/estuaries.
Like Clunie Peat, these soil s are very poorly drained , with a very high runoff.
Onsite sampling would need to be done for more specific information. It is an
ordinary assumption of this report that the soil conditions are typical of the
neighborhood and generally similar to those found at the land sale comparables
utilized in thi s report.
Wetlands are areas that are periodically or p ermanently inundated by surface or
ground water and support vegetation adapted for li fe in saturated soil. Wetland s
include swamp s, marshes, bogs and similar areas. Federal law requires that there
be no net loss of wetlands and their development requires a permit be obtained
from the Army Corp of Engineers (ACOE). Note that wetlands in many areas of
the State are not delineated or assess ed an d the ACOE would need to be consulted
on the relevant permit process.
In th e absence of a wetlands delineation from the ACOE, the appraiser considered
information included on the subdivis ion plat map , on the previously di scusse d
Web Soils Survey and physical clues (e.g. vegetation present, surface water, etc .)
during the on site inspection in order to estimate the quantity of wetlands ons ite .
Based on the information gathered , the site area impacted by low wet areas is
es timated at just over 22 acres (85% of the property).
Hazardous Conditions A complete enviro nmental s ite assessment was not available to the appra iser.
There are no kn own or dis clo sed environmental issues or hazardous conditions
impacting th e subject. The detection of hazardous material s or conditions is
beyond the scope of expertise and competency of an apprais er, howe ver, and it is
recommended that any concerns relating to hazardou s conditions be addressed by
a qu a lified environmental specialis t. Furthennore, it is an assumptio n of thi s
report that there are no hazardous conditions pres ent at the subj ect.
Flood Zone The City of Kenai doe s not participate in the National Flood In surance Program,
nor doe s it admini ster flo odpl ain management programs.
Utilities Although there is a s mall grass airstrip ons ite , the subject is essentially vaca nt
land . Electric a nd natural gas are avail ab le to adjacent parcels . Public water and
s ewer are not ava il able; typical of the area.
18-0250 RELIANT -----uc
UYI Sf l' S[ll t !E !
Page -2 2 -
223
NHN Royal S t Description of Site
Aerial Map
I Subjec t Property ~
-. -·-.;.;; Qif u;,ii.
,.
, ..
18-0250 RELIANT
-----LLC
AIVISll! SlH I C!S
Page -23 -
224
NHN Royal St
Plat Map
J
·'""'""'
..... ... ~-
®"'' . .
-.
18-0250
__, .· i.
.·
...
~
I
rJ .... ,' ~ ~
Plat • .......
•' ~,· ....
.! Ul
RELIANT
-------LLC
ICV I E!I ' H ll l CE5
Description of Site
Pa ge -24 -
225
NHN Roy al St Description of Site
Zoning
HEAVY INDUSTRIAL
(IH), CITY OF KENAI
The subject has sp lit zoning. According to the City Manager roughly 29% of the
property (at the south) is zoned Heavy Indu stria l (IH). The remaining 71 % (at the
north) is zoned Rural Residential (RR). Although not a common occurrence, split
zoning is found elsewhere in the city.
Intent: The IH Zone is established to allow for a broad range of industrial and
commercial uses. It is intended to apply to industrial areas which are sufficiently
isolated from residential and commercial areas to avoid any nuisance.
Permitted Uses: Automotive sa les, automotive service stations, guide service,
professional offices, retail business, wholesale business, airports and related uses,
automotive repair, manufacturing I fabricating I assembly storage, warehouses,
charitable in stitution s, parks and recreation, dormitories I boarding houses I
essential services, fanning I general agriculture, gunsmithing, printing, taxidermy,
assemblies (large), parking (o ff street), pers onal service s, radio I tv tran smitters I
cell sites.
Conditional Uses: Two to seven or more family dwellings , townhouses, mobile
home parks, planned unit residential development, banks, business I consumer
services, hotels I motels, lodge, restaurants, theaters I commercial recreation, gas
manufacturer I storage, churches, clinics, colleges, elementary schools,
governmental buildings, high schools, hospitals , libraries , museums, assisted
living, animal boarding, bed and breakfasts, cabin rental s, cemeteries, crematories
I funeral homes, day care centers, greenhouses I tree nurseries, fraternal
organizations I private clubs I social halls and union halls , nursing, convalescent or
rest homes, parking (public lots), recreational vehicle parks, subsurface extraction
of natural resources, and surface extraction of natural resources.
Prohibited Uses: None. One family dwellings are considered a secondary use,
however, and are limited to "one single-family residence per parcel, which is part
of the main building."
Development Requirements:
(1) Open Storage -No open shall be located closer than twenty-five (25') to
the adjoining right-of-way of any collector street or main thoroughfare.
Any open storage visible from a collector street or main thoroughfare
shall be enclosed in an eight-foot (8') high fence of good appearance
acceptable to the Commiss ion.
(2) Residential Buffer -Wherever an industrial zone abuts or is separated by
an alley from a residential zone, the use or building in the IH Zone shall
be screened by a sigh t-obscuring fence or hedge.
RURAL Intent: The RR Zone is intended to provide for low den sity residential
RESIDENTIAL (RR), development in outlying and rural areas in a form which creates a stable and
CITY OF KENAI attractive residential environment.
The specific intent in establishing thi s zone is to establish residential structures to
an extent which will preserve the rural, open quality of the environment and
prevent health hazards in areas not served by-public water and sewer and to
prohibit uses which would violate the resi dential character of the environment and
18 -02 50 RELIANT
-----LLC Pa ge -25 -
I D!I SCI' SEli l ll !
226
NHN Roy al St
Easements, Covenants,
Encroachments &
Restrictions
18-0 250
Descrip tion of Site
generate traffic in predominantly res idential areas.
Permitted Uses: One-family to four-family dwellings, churches (prov ided that no
part of any building is located nearer than 30' to any adjoining s treet or property
line), e ssential services, farm in g/g eneral agriculture, p arking (off s treet), and
radio/tv tran sm itters/cell s ites.
Conditional Uses: All other uses are considered conditional uses, except gas
manufacturer/storage, which is prohibited.
Prohibited U ses: Gas m a nufacturer/storage.
Basic Design Standards:
Minimum Lot Size:
Minimum Width :
20,000 s q ft (one-to four-famil y dw ellings)
90'
Front Setback: 25'
Side Setback: 15 '
Rear Setbac k : 20'
M aximum Heig ht: 3 5'
M aximum Site C ov erage: 30%
The subject's zoning is not unduly restrictive, permits a wide variety of u s e s, and
does not appear to materially limit the economic potenti a l or functional util ity of
the property.
A title re p ort was not availa ble/p rovided to the appraiser. The s ubdivis ion pla t
m ap id e n t ifie s normal ea seme nts a lon g the property boundaries for streets a nd
utilities. It a lso identifies SO ' wide section line easem e nts along the prope rty's
north a nd east boundaries. Section line easements are con sidered typica l for rural
acreage lots. There can be valu e c o ns iderations. ln thi s case, however, the s e ctio n
lines ea sements are located in area s ide ntifie d as pre dominantly wetlands, with
diminished utility anyway. F ina ll y, the m ap identifies a public access easement
a long the waterfront. The easement is 50 ' from mean h ig h water mark. T h is
easement ins ure s public a ccess along the waterfront is maintained; es p ecially fo r
the p opula r pers ona l u se dipnet fi s hery in July . A c cess easements are no t
uncommo n in thi s market, es p ecia lly where access to wa terways is c o ncerne d .
The prop erty is be ing appraised based on the hypo the ti c al c onditio n th at its u se is
restricte d to a irc raft landing, loa ding a nd departing. The Covenants and
Res tric tions o n U se , incorpora ted into the draft Deed Subject to Right of Entry
(copy inc lude d in the Addendum) stipulate tha t:
(1 ) T h e Property sh a ll b e used (for) the purpose of aircraft landing, loading
and de parting a nd fo r no o ther purpose inco n s is te nt w ith s uch use.
(2) A ll vegetatio n on the p rop erty sh a ll b e ma inta in ed in its natural state
except as follows:
a. The ex is tin g la nding area m ay be m a inta ined and graded but n o
a dditiona l m a terial o ther tha n sand m ay be introduced on to the
s urface except as p rovided in p aragraph 2.b , below, a nd the
a irs trip sh a ll b e m ai n tained as a grass surface with A laska na ti ve
Page -26 -RELIANT
-----LLC
I OY 15 CI ' SE l!I CH
227
NHN Royal St
Functional Utility
18-0250
Description of Site
grasses.
b. The area labelled "Staging Area" as shown on Attachment 1, not
extending more than 400 feet immediately north of Royal Street,
may be surfaced with gravel or crushed rock , with the exception
that any vegetative dunes must be maintained in a natural state.
c. Vegetation may be disturbed but only if and to the extent
necessary to install and maintain lighting, a windsock pole, and
fencing.
d. A moveable building not exceeding dimensions of 12 feet by 20
feet nor greater than one story in height may be placed on the
property.
e. No improvements other than those provided for in this
attachment may be made to the property.
2. The existing landing area as shown on the sketch attached hereto as
Attachment 1 shall not be expanded except as provided in paragraph 2.b ,
above.
3. The Property shall not be subdivided.
Obviously, these restrictions on use substantially limit the development potential
of the property. This was done by design. The Client (potential buyer) owns PRL
Logistics, Inc. The company intends to provide hybrid aircraft (airship) operations
to remote locations throughout the state. Besides being a short distance from
PRL's existing Cook Inlet Operations Center, the subject property offers
additional benefits for potential airship use, including its generally level
topography and a combination of the waterfront and grass/wetlands (no large trees
or other impediments to taking off/landing). The impact that these restrictions on
use have on value are addressed in the Land Valuation section.
As previously discussed, the subject property contains a substantial amount of
wetlands. There are no other known physical or economic characteristics that
limit the site's development potential and level of functional utility. The subject is
generally physically and economically similar to other sites within the market
segment that it competes. Overall, the site is concluded to provide average
functional utility.
RELIANT -----uc
IC Y15(i' S!I YI CES
Page -27 -
228
NHN Royal St Property Assessment & Taxes
Property Assessment & Taxes
Summary of Property Assessment & Taxes
Real Property Properties located within the subject's market are assessed by the assessor every
year. By statute, each property must be assessed at l 00% of market va lue. The
millage rate (on which property taxes are based) is detennined annually based on
spending and assessment levels. Millage rates vary constantly and are influenced
by state Jaw and services provided in each individual district. The assessed value
of all properties located within a district is divided by a particular year's budget
requirem en ts to arrive at a millage rate . Thus, actual spending detennines the
amount of tax, and assessment allocates the tax among property owners.
Therefore, an increase or decrease in total assessment will not, by itself, result in a
change in the total property tax collected.
While mass appraisal is useful for the allocation of the total tax liability among
property owners, it is not always a reliable indicator of the market value of a
specific property. As such, market participants do not ge nerally use assessed
value to detennine market value. Market participants do carefully analyze the
impact of current and projected real esta te taxes on cash flow and market value.
While Ala ska is a non-disclosure state and the assessor does not have access to
sale information, they do have confinnation from the recorder's office of a sale
occurring. Often times the assessment the year following a sale increases
dramatically with the burden of disproving the assessment falling on the property
owner. This in tum often requires di sclosure of any subject sa le. Because of the se
factors, irrespec ti ve of actual hi s toric assessment, most market participants input
real es tate ta xes on a stabil ized basis, where proj ected assessment correlates w ith
the estimated market va lue and is reflective of assessmen t in a post-sale
environment.
The KPB Assessing Department's online Public Info Parcel Lookup s h ows the
pr eliminary 2018 tax assessed value ($207 ,900) for the subj ect as a City-
owned 26.25-acre parce l, not impacted by any deed restrictions. The appraiser
contacted the Assessing Department and was able to obtain an estimated
property assessment with the deed restrictions in place. Note that the estimate
is based on the adjustment that the Assessing Department makes for properties
subject to agricultural restrictions. Based on c urrent land modeling, at the
2017 Mill Rate for Tax Authority Group 30 (Kenai), the estimated assessed
value is as fo llows:
Proper!) Assessment & Tax Summar} Exhibit
PROPERTY ASSESSMENT & TAXES
Assessment -Estimated
Tax Parcel Number Land lm(!rovements Total Mill Rate Taxes
Year 2018
049-100-52 $41,580 lQ $41,580 $8.86 $368
Total $4 1,580 $0 $41 ,580 $8.86 $368
18-0 2 50 P age -29 -RELIANT
-----LlC
IOY l \[I' Sli il [!f
229
NHN Royal St
Subject Photographs
Looking west a lo ng
Royal Street, w ith the
subject property at ri ght.
Note the view of Cook
Inlet and the Aleutian
Range, beyond .
Grass airstrip as seen
from nei ghboring parcel
at the south.
18-0250
Subject Pho tographs
Page -31 -RELIANT
----LLC
HV I SCI' SEl!l [f!
230
NHN Ro y al St
Looking south along the
beach and 50 ' public
access easement along
the property's west
boundary. The grass
airstrip is on the other
side of the dunes at left.
Looking north from the
same spot. The Old
Town area of Kenai is
seen (across the Kenai
River) in the di stance.
18-0 250
Subject Photographs
Page -32 -RELIANT
----LLC
ICV I S CI' StU I (!!
231
NHN Royal St
Looking east over the
wetlands.
Looking south from the
same location. The
airstrip is seen at right.
18 -0250
Subject Photographs
Page -33 -RELIANT -----uc
I OV I H I' ilH l tE ~
232
NHN Royal St
Close up of dunes.
Area at south end of
airstrip (east side) to be
developed as a staging
area.
18 -0250
Subject Photographs
P age -34 -RELIANT
----LLC
H YI H i' StlV l (H
233
NHN Royal St Highest & Best Use
Highest & Best Use
Definition & Methodology
Scope of Highest &
Best Use
As-ls -Vacant
"Highest & Best Use" is defined as:
"The reasonably probable use of property that results in the highest
va lu e. The four criteria that th e highest and best use must m eet are
legal permissibility, physical possibility, financial feasibility, and
maximum productivity. "7
A specific determination of highest and best u se would require specific cost
estimates, which were not available to the appraiser, and is beyond the scope o f
thi s assignment. Unless otherwise indicated, the highest and best use as vacant
analysis s hould not be construed as a feasibility study, which is beyond the scope
of the current assignment. Rather, the analys is is meant to provide a general
indication of highest and best use based on a qualitative review of the available
evidence. Furthermore, unless otherwise indicated, the assignment is not a
feasibility stud y of potential conversion or renovation of the property and
continue d use "as is" or "as proposed" is implicit in the current value estimate.
Legally Permissible Private restrictions, zoning, building codes, historic district controls and
environmental regulations determine those uses legally permiss ible on a site. As
discus sed , the appraisal is p repared subject to planned re stric tions on use. Use
will be restricted to aircraft landing, loading and departing (again, see a draft of
the Deed Subject to Right of Entry, which incorporates the Covenants and
Restrictions on Use, included in the Addendum for particulars).
Physically Possible Size, shape, area, terrain, accessibility and availability of utilities affect the uses
under which a property can be developed.
Financially Feasible Feasibility is indi cated by construction trends in the vicinity and current market
conditions. All uses that are expected to produce a positive return are regarded as
financially fea sible .
Maximally Productive When development options are available, a detenninati on must be made as to
which feasible use is the maximally profitable use.
Within this market, the presence of developer's margin is highly specific to the
individual project. Nonetheless, it is noted that developers' m argins have been
attained within the subject's geographic area for a variety of property types. The
majority of new construction, however, has been by owner users whose needs
were not met by the existing inventory and there has been less speculative
development.
As mentioned, restrictions on use are being reco rded in conjunction wi th the
7 Source: The Dictionary of Real Estate Appraisal , Sixth Edition . Chi cago: Appraisal In st itute, 2015.
18 -0250 -----LLC
ICY I H I' Sl lY ICfS
RELIANT Page -35 -
234
NHN Royal St
18-0250
Highest & Best Use
planned sale. No uses other than those specified are permitted.
Residential uses predominate to the south of the subject and this is the market
segment that has seen the most demand in the area. A combination of the Heavy
Industrial (IH) zoning at the south end of the tract and the planned restrictions on
use make development with a residential use or uses impermi ss ible . The area to
the north that is zoned Rural Residential (RR) is largely wetlands. Even if
development with a residential use or uses was physically possible there, the
planned restrictions on use would prohibit it.
If the property weren 't subject to restrictions on use , highest and best u se (as
vacant) might include holding it vacant and available for future sale or
development. By holding the site vacant, the ownership co sts would be reduced to
real property taxes during the holding period, with the re turn based on land value
appreciation. If market conditions were to warrant it, subdividing the property
and/or developing it a with a combination of commercial (likely marine-or
touris t-oriented) and residential uses might meet the tests of highest and best use.
After encumbrance by the restriction s on use, the owner is left with only one
development option. This leaves limited utility to the owner. As a consequence,
the value of the property is substantially diminished. Highest and best use,
encumbered by the restric tion s on u se, then, would be to maintain the largely
vacant tract, with the grass airstrip, as-is, as provided for in the Covenants and
Restrictions on Use (incorporated into the draft Deed Subject to Right of Entry).
RELIANT
-----llC
I DV I HI' S!IY l [E~
Page -36 -
235
NHN Royal St Land Valuation
Land Valuation
Introduction
Methodology
Units of Comparison
Comparable Data
Sources of Data
Availability of Data
Presentation of Data
18-02 50
Land is customaril y valued as though unimproved and available for development
to the use that would justify the highest price and the greatest net return. Sales of
unimproved land most similar to the subject are investigated and the most
appropriate transactions are analyzed. The land value estimate traditionally
reflects the fee simple value of raw land with good soils, available access,
available utilities, minimal site work completed, generally level and at grade, with
no site improvements (paving, landscaping, lighting, etc.).
Units of comparison, components into which properties may be divided for
purpos es of comparis on, are derived from comparable sales data. Brokers,
developers and other market participants indicated a common unit of comparison
for properties in this market is the price per acre.
Note that the property is first valued as if unencumbered by the planned
restrictions on use; then adjusted for them.
The following trans actions were obtained from various sources including web
sites (e.g. Alaska Multiple Listing Service, Craigsli st, etc.), brokers, a ss essors,
apprais ers , other individuals and the Reliant, LLC internal dat abase .
The availability of comparable data is a function of the subject's location, property
type, property size, market size and market activity. There are an adequate
number of properties with similar physical and economic characteristics to the
subject, but thes e are traded infrequently. After g oing back 10 -I 5 years, market
research identified six s ales involving properties that bracket the subject and
provide a good basis for comparison. An acreage tract just east of the subject that
is being offered for sale to the Client is also analyzed.
A s napshot of thes e tran s actions is presented on the following summary tabl e. A
map th en highlights the location of the comparables relative to the subject.
Descriptions of the comparables follow the map.
P age -37 -RELIANT
-----LLC
nY I H i' HiY l tf !
236
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Jamie Heinz, City Clerk
DATE: April 25, 2018
SUBJECT: Harbor Commission Sub-Committee
At its April 9, 2018 meeting, the Harbor Commission requested City Council approve the formation of
a sub-committee, consisting of Commissioners DuPerron, Dunn, and Crandall, to determine the roles
and responsibilities of the Harbor Commission. Pursuant to Council Policy No. 2016-01(2)(a) a sub-
committee of a commission may be established for a specific function upon approval of Council.
An excerpt of the DRAFT meeting summary have been attached.
Your consideration is appreciated
237
KENAI HARBOR COMMISSION
APRIL 9, 2018-6:00 P.M.
CITY HALL COUNCIL CHAMBERS
CHAIR CHRISTINE HUTCHISON, PRESIDING
EXCERPT OF DRAFT MEETING SUMMARY
Chair Hutchinson called the meeting to order at 6 :00 p.m .
a. Pledge of Allegiance
Chair Hutchinson led those assembled in the Pledge of Allegiance.
b . Roll Call
Roll was confirmed as follows :
Commissioners present:
Commissioners absent:
Staff/Council Liaison present:
A quorum was present.
c. Agenda Approval
MOTION:
Chair C . Hutchison, Vice-Chair N . DuPerron, M. Dunn,
G . Greenberg, B. Peters, C . Crandall
J. Desimone
City Manager P. Ostrander, Public Works Assistant K.
Feltman, Council Member J. Glendening
Commissioner DuPerron MOVED to approve the agenda with the addition of 5c. Wake Zones.
Commissioner Peters SECONDED the motion. There were no objections; SO ORDERED.
6. NEW BUSINESS
a . Discussion/Recommendation -Formation of a Sub-Committee
The purpose of the sub-committee was discussed , including determining roles and responsibilities
of the Harbor Commission to bring back findings and determination to the Commission as a whole .
It was noted that the formation of a sub-committee would need to be approved by City Council.
It was requested that Rick Koch's memo, as included in this meeting packet, be forwarded to the
Sub-Committee.
MOTION:
Commissioner DuPerron MOVED to request City Council approve the formation of a Sub-
committee cons isting of Commissioners DuPerron, Dunn, and Crandall to determine the roles
and responsibilities of the Harbor Commission and present to City Council at the first meeting in
May 2018; and Commissioner Crandall SECONDED the motion. There were no objections ; SO
ORDERED . 238
I certify the above represents accurate excerpt of the draft meeting summary of the Kenai Harbor
Commission meeting of April 9 , 2018.
Excerpt of City of Kenai Counci l Meetin g Minutes
April 9, 2018
Page 2 of 2 239
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Robert J. Frates, Parks & Recreation Director
DATE: April 23, 2018
SUBJECT: Multi-Purpose Facility Rental Agreement – Kenai Rotary Club
______________________________________________________________________
Purpose of this correspondence is to request Kenai City Council approval of a Special Use Permit
to the Kenai Rotary Club for the purpose of conducting their annual Soapbox Derby.
The derby competition will occur on May 12, 2018 located at 9775 Kenai Spur Highway from
approximately 10:30 a.m. to 3:00 p.m. Set up will occur on May 11 and tear down occurring the
evening of May 12.
Local winners have the opportunity to represent Alaska at the All American Soap Box Derby
Championship in Akron, Ohio.
Thank you for your attention to this matter.
240
Multi-Purpose Facility Rental Agreement – Kenai Rotary Club Page 1 of 6
MULTI-PURPOSE FACILITY RENTAL AGREEMENT
THE CITY OF KENAI (OWNER) for the considerations, conditions and requirements set
forth below, hereby grants to KENAI ROTARY CLUB (RENTER), whose address is P.O.
Box 2640, Kenai, AK 99611, a non-profit organization, the right to use the Kenai Multi-
Purpose Facility located at 9775 Kenai Spur Highway, Kenai, AK 99611, as provided
below.
1. PARTIES
This Agreement, made and entered into this ____ day of ___________, 2018
between the City of Kenai, hereinafter referred to as OWNER, and KENAI
ROTARY CLUB hereinafter referred to as RENTER.
2. RENTAL SPACE
The RENTER agrees to quit and surrender the demised premises to the OWNER at
the end of the term, in the same condition as date of commencement of this rental
agreement, ordinary use and wear thereof excepted.
3. PURPOSE
The aforementioned space to be used solely for the purpose, and no other, of:
Soapbox Derby.
4. USE DATES
A. Permittee shall have use of the Premises on the following days for the
purposes of conducting a soapbox derby open to the general public from
10:30 a.m. on May 12, 2018, through 3:00 p.m. on the same day. Permittee
is scheduled to arrive and set up the soapbox derby on May 11, 2018, and to
completely tear down and depart no later than 6:00 p.m. on May 12, 2018.
5. RENTAL TERMS
A. There shall be no rental or use fee for the Premises. The Kenai Rotary Club
is a non-profit community service organization embodying the
characteristics of good citizenship, leadership, involvement and service to
community.
B. It is the responsibility of the RENTER to prohibit smoking by guests,
241
Multi-Purpose Facility Rental Agreement – Kenai Rotary Club Page 2 of 6
employees, invitees, and any other person allowed to use the premises by
RENTER pursuant to AS 18.35 and KMC 12.40. Violation of this section
may result in all or part of the RENTER’S deposit being forfeited.
6. CLEANUP
The RENTER agrees to take down decorations, signs, and/or banners that were put
up by RENTER. Garbage is to be bagged and placed inside facility near large
sliding gate.
7. INDEMNITY, DEFEND, AND HOLD HARMLESS
RENTER agrees to fully indemnify, defend, and hold harmless, the OWNER, its
officers, agents, employees, and volunteers from and against any and all actions,
injuries, death, damages, costs, liability, claims, losses, judgments, penalties, and
expenses of every type and description including any fees and/or costs reasonably
incurred by the OWNER’S staff attorneys and outside attorneys and any fees and
expenses incurred in enforcing this provision (hereafter collectively referred to as
“Liabilities”), to which any or all of them may be subjected, to the extent such
Liabilities are caused by any act, incident, or accident, occurring as a result of the
acts, errors or omissions, of the RENTER or its agents, guests, invitees, or
employees, arising in connection with the operations, use, or occupancy of the
premises by RENTER. This shall be a continuing release and shall remain in effect
after termination of this Agreement.
8. ASSUMPTION OF RISK
RENTER assumes full control and sole responsibility as between RENTER and
OWNER for the activities of RENTER, its personnel, employees, and persons
acting on behalf of or under the authority of the RENTER anywhere on the
Premises. RENTER shall provide all proper safeguards and shall assume all risks
incurred in its activities on the Premises and its exercise of the privileges granted in
this Agreement.
9. INSURANCE
RENTER shall secure and keep in force adequate insurance, as stated below, to
protect OWNER and RENTER. Where specific limits are stated, the limits are the
minimum acceptable limits. If RENTER’s insurance policy contains higher limits,
OWNER is entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-form contractual, with a per-occurrence
242
Multi-Purpose Facility Rental Agreement – Kenai Rotary Club Page 3 of 6
limit of not less than $1,000,000 combined single limit. The policy must name the
OWNER as an additional insured.
B. Worker’s compensation insurance with coverage for all employees engaged
in work under this Agreement or at the Premises as required by AS 23.30.045.
Renter is further responsible to provide worker’s compensation insurance for any
subcontractor who directly or indirectly provides services to RENTER under this
Agreement.
C. 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 the RENTER uses for activities permitted under this
Agreement. The policy must name the OWNER as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated “A-” or
better by A.M. Best.
ii. RENTER shall submit to the OWNER proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
iii. RENTER shall request a waiver of subrogation against OWNER from
RENTER’s insurer and the waiver of subrogation, where possible,
shall be provided at no cost to OWNER.
iv. Provide the OWNER with notification at least thirty (30) days before
any termination, cancellation, or material change in insurance
coverage of any policy required hereunder.
v. Evidence of insurance coverage must be submitted to OWNER by
__________________. The effective date of the insurance shall be
no later than __________________.
OWNER may increase the amount or revise the type of required insurance
on written demand without requiring amendments to this Agreement. Owner
will base any increase or revision on reasonable and justifiable grounds.
Within two weeks of the written demand, RENTER shall submit to OWNER
evidence of insurance coverage that meets the requirements of the OWNER.
243
Multi-Purpose Facility Rental Agreement – Kenai Rotary Club Page 4 of 6
10. GENERAL TERMS AND CONDITIONS OF USE AND OPERATION
A. RENTER may not assign or sublet the Premises.
B. RENTER agrees that at all times RENTER will conduct activities with full
regard to public safety, and will observe and abide by all applicable
regulations and requests by duly authorized agencies responsible for public
safety.
C. RENTER will comply with all laws of the United States and State of Alaska;
all municipal ordinances; and all lawful orders of the police and fire
departments, or other municipal authorities; and will obtain, and pay for all
necessary permits and licenses and will not do, nor allow to be done, anything
on said premises during the term of this Agreement in violation of any such
laws, ordinances, rules or orders.
D. RENTER shall not admit to said premises a larger number of persons than
can safely and freely move about in said premises; and the decision of
OWNER in this respect shall be final. It is further understood and agreed
that RENTER will permit no chairs or seats to remain in the passageways or
fire exits in said premises and will keep all passageways and fire exits clear
at all times; and that the sidewalks, grounds, entries, passages, vestibules,
halls abutting streets, and all ways of access to public utilities of said
premises, shall not be obstructed by RENTER or used for any purpose other
than for ingress to and egress from demised premises.
E. RENTER shall not injure, nor in any manner deface said premises; and shall
not permit anything to be done whereby said building or premises shall be in
any manner injured or marred, or defaced, nor shall RENTER drive, nor
permit to be driven, any nails, hooks, tacks, or screws, in any part of the
building, nor shall RENTER make, or allow to be made, any alteration of any
kind therein. That if said premises, or any portion of said building or
grounds, during the term of this lease, shall be damaged by the act, default,
or negligence of RENTER or by RENTER’S agents, employees, guests,
invitees, or any person, or persons admitted to said premises by said
RENTER, the RENTER will pay OWNER upon demand such sum as shall
be necessary to restore said premises to their original condition.
F. OWNER does not relinquish and does hereby retain the right to enforce all
necessary laws rules, and regulations, for the management and operations of
said premises. OWNER retains the right to enter the demised premises at
any time and on any occasion, without any restrictions whatsoever.
244
Multi-Purpose Facility Rental Agreement – Kenai Rotary Club Page 5 of 6
G. OWNER reserves the right to eject, or cause to be ejected, from the premises
any disorderly person; and neither OWNER nor any of its officers, agents, or
employees, shall be liable to RENTER for any damages that may be
sustained by and through the exercise of such right.
H. RENTER will not allow beer, wine, liquor, or alcoholic beverages of any
kind to be sold or consumed upon said premises without the express written
consent of OWNER.
Should the City agree to allow the sale of alcoholic beverages on the
premises, a vendor licensed by the Alaska Alcoholic Beverage Control Board
must dispense any and all alcohol beverages on the premises. The vendor
must have, during RENTER’S occupancy of said premises, policies of
general liability and liquor liability. Said policy must be from a reliable
insurance company authorized to transact business in the State of Alaska and
subject to suit in Alaska. The City shall be named as an additional insured
on said policy with a waiver of subrogation endorsement. Coverage shall be
in the amount of $500,000 for bodily injury, death or property damage
resulting from one occurrence.
RENTER agrees to furnish and place on file with OWNER, a copy of said
policy or a certificate that a policy of insurance has been issued, at the time
of execution of this Agreement. The policy is subject to approval by
OWNER.
I. Special Conditions:
RENTER agrees to accept all terms and conditions of this Agreement. Any
decision affecting any matter not herein expressly provided shall rest solely
within the discretion of the Director or City Manager
CITY OF KENAI KENAI ROTARY CLUB
OWNER RENTER
By: By:
Paul Ostrander Date Dick Peck Date
City Manager Representative
245
Multi-Purpose Facility Rental Agreement – Kenai Rotary Club Page 6 of 6
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____day of ________, 2018, the foregoing
instrument was acknowledged before me by PAUL OSTRANDER, City Manager of the
City of Kenai, Alaska, an Alaska home rule municipality, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____day of ________, 2018, the foregoing
instrument was acknowledged before me by DICK PECK, of KENAI ROTARY CLUB, a
non-profit organization, on behalf of the organization.
Notary Public for Alaska
My Commission Expires:
FOR OFFICE USE ONLY
The facility has been inspected and the full amount of the deposit of $__________
may be returned.
The facility has been inspected and the sum of $__________ shall be withheld to
cover costs of repair.
The following has been found to be damaged:
Print Name of Staff Who Inspected Property:
Staff Signature: Date:
Y:\Parks & Recreation\Agreemets\2016 0425 KENAI ROTARY CLUB MPF Agreement.docx
246
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Paul Ostrander, City Manager
DATE: April 27, 2018
SUBJECT: Discussion Item – Wake Zone Signage at the Mouth of the Kenai
River
______________________________________________________________________
At the April 4, 2018 Kenai City Council meeting, the Harbor Commission was directed by
Council to refine their recommendation to place no wake signs at the mouth of the Kenai
River by defining the specifics of sign location and size. At the Harbor Commission
meeting of April 9, 2018, a motion was passed unanimously to request City Council to
approve installation of two No Wake Zone signs up to 4 X 8 feet at the mouth of the Kenai
River. The Harbor Commission further identified the specific locations of the signs – one
on North Beach immediately upriver of No Name Creek and on South Beach, at the
upriver extent of the Beach. (See attachment) They recommended the signs be installed
by June 1 and removed by October 1. In addition, the Harbor Commission recommended
the City provide educational boating safety information on the Dipnet App and as
handouts at the fee shack at the City Launch.
Administration feels that the intent of the Harbor Commission is to limit the wake at the
mouth of the Kenai River to improve the safety of personal use fishery participants and
to minimize the impact to the Kenai Bluff during periods of high tide.
The creation of a true no wake zone is potentially problematic in several ways. First,
enforcement of a no wake zone in this area would be difficult and would require additional
City resources that are currently not available. Secondly, during certain tide stages, or
weather events, the commercial fishing fleet will likely be unable to adhere to a strict no
wake zone, which, pursuant to Kenai Municipal Code 11.05.100(c) is defined as “….a
zone where no person may operate a boat at a speed greater than fine (5) miles per
hour.”.
247
Page 2 of 2
Discussion Item – Wake Zone Signage at the Mouth of the Kenai River
The recommendation of administration is to install two signs at the locations
recommended by the Harbor Commission but instead of the signs stating “No Wake,”
modify the text on the sign to read “Be Safe, Minimize Your Wake”. This will accomplish
the intent of informing boat users at the mouth of the Kenai River that it is important for
them to minimize their wake, without creating the enforcement and safety issues that
would be created by formalizing a no wake zone.
In addition, it is the intent of City Administration to include educational boating safety
information on the dipnet app. We will also include boating safety handouts at the fee
shack at the City’s launch if we are able to utilize existing handouts from other agencies
at no cost to the City.
Thank you for your consideration.
248
249
KENAI COUNCIL ON AGING
REGULAR MEETING
APRIL 12, 2018 – 4:30 P.M.
KENAI SENIOR CENTER
CHAIR ROY WILLIAMS, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Chair Williams called the meeting to order at 4:30 p.m.
a. Pledge of Allegiance
Chair Williams led those assembled in the Pledge of Allegiance.
b. Roll was confirmed as follows:
Members Present: Chair R. Williams, Vice Chair D. Erwin, J. Hollier, M. Milewski,
V. Geller, B. Osborn, L. Nelson, B. Modigh
Members Absent: A. Weeks
Staff/Council Liaison Present: Senior Center Director K. Romain, Council Member G. Pettey
A quorum was present.
c. Agenda Approval
MOTION:
Council Member Milewski MOVED to approve the agenda and Council Member Hollier
SECONDED the motion. There were no objections; SO ORDERED.
2. SCHEDULED PUBLIC COMMENTS – None.
3. UNSCHEDULED PUBLIC COMMENT – None.
4. APPROVAL OF MEETING SUMMARY
a. January 11, 2018
b. February 8, 2018
MOTION:
Council Member Erwin MOVED to approve the meeting summaries of January 11, 2018 and
February 8, 2018; Council Member Modigh SECONDED the motion. There were no objections;
SO ORDERED.
250
Council on Aging
April 12, 2018
Page 2 of 3
MOTION:
Member Nelson MOVED to have Director Romain look into the purchase of a security camera
for the Senior Center’s entryway. Member Erwin SECONDED the motion. There were no
objections; SO ORDERED.
5. UNFINISHED BUSINESS – None.
6. NEW BUSINESS
a. 2018 Survey Results
Director Romain provided a brief report related to the survey results and noted the comments
received were very positive, i.e. people are impressed with the congregate meals, and how
offering a continental breakfast for $1 reached people in the community. She added, there were
no negative comments regarding staff.
7. REPORTS
a. Senior Center Director – Romain reported that she met with the City Manager and
Finance Director and reviewed the Senior Center’s proposed FY19 budget. She
noted she would provide the Council members a copy of her proposed City budget in
the next meeting packet.
COUNCILOR HOLLIER LEFT THE MEETING AT 5:30 PM
b. Council on Aging Chair – Williams noted the following items:
• Suggested goals for the Council on Aging should include sponsoring
educational sessions, healthy living activities, etc.; and
• Also suggested investigating vans for seniors with mobility issues before
purchasing any new vans.
c. City Council Liaison – Pettey noted that a City Council budget work session will be
held on May 19 (the Bluff Erosion Project will be discussed); she expressed
appreciation for the effort given in another successful March for Meals fundraiser;
and stated it was her honor and privilege to serve as the Council Liaison to the
Council on Aging.
8. NEXT MEETING ATTENDANCE NOTIFICATION – May 10, 2018
9. QUESTIONS & COMMENTS
Council Members agreed for the need of a security camera in the Center’s entryway. It was
suggestion the security camera should have infrared capabilities.
It was requested that capital projects for the Senior Center to be included in the proposed
budget were a new kitchen dishwasher and carpeting for the dining room. It was noted that
grant funds would be pursued as well. It was further requested that Administration research
“Senior Ambassador” which was included in previous goals.
251
Council on Aging
April 12, 2018
Page 3 of 3
Council Members commended Director Romain for her performance as the Senior Center
Director.
10. ADDITIONAL PUBLIC COMMENT – None.
11. INFORMATION
a. Volunteer Appreciation Dinner – April 19, 2018
12. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 5:45 p.m.
Meeting summary prepared and submitted by:
_____________________________________
Jacquelyn Kennedy
Deputy City Clerk
252
KENAI AIRPORT COMMISSION
REGULAR MEETING
APRIL 12, 2018 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
CHAIR GLENDA FEEKEN, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Chair Feeken called the meeting to order at 6:06 p.m.
a. Pledge of Allegiance
Chair Feeken led those assembled in the Pledge of Allegiance.
b. Roll was confirmed as follows:
Commissioners Present:
Commissioners Absent:
G. Feeken, D. Pitts, P. Minelga, J. Bielefeld, K. Dodge
J. Zirul, C. Henry
Staff/Council Liaison Present: Airport Manager M. Bondurant, Admin. Assistant E. Shinn,
Council Member Navarre
A quorum was present.
c. Agenda Approval
MOTION:
Commissioner Bielefeld MOVED to approve the agenda and Commissioner Minelga SECONDED
the motion. There were no objections; SO ORDERED.
2. SCHEDULED PUBLIC COMMENT – None.
3. UNSCHEDULED PUBLIC COMMENT – None.
4. APPROVAL OF MEETING SUMMARY
a. February 8, 2018
MOTION:
Commissioner Minelga MOVED to approve the meeting summary from February 8, 2018 and
Commissioner Dodge SECONDED the motion. There were no objections; SO ORDERED.
5. UNFINISHED BUSINESS
a. Action/Approval – Field of Flowers Sign
253
Airport Commission
April 12, 2018
Page 2 of 3
Seven designs were presented to the Commission. Commissioners expressed support in the
Kenai Airport logo on the signs and focus on local aircrafts. There was discussion regarding the
pros and cons of all the colors; concern expressed regarding potential color fading.
Commissioners requested more accurate representation on the signs and have something
prepared for further discussion at the next Commission meeting.
6. NEW BUSINESS
a. Action/Approval – Special Use Permit to State of Alaska, Division of Forestry for
Aircraft Loading and Parking
It was clarified that this item was regarding the annual renewal of the Special Use Permit for
operation at the Kenai Airport.
MOTION:
Commissioner Bielefeld MOVED to approve the Special Use Permit to the State of Alaska,
Division of Forestry and Commissioner Pitts SECONDED. There were no objections, SO
ORDERED.
b. Action/Approval – Alaska Realty Group, LLC – Assignment of Lease to Mossy Oak
Properties
MOTION:
Commissioner Bielefeld MOVED to approve assignment of lease to Mossy Oak Properties, and
Commissioner Dodge SECONDED. There were no objections, SO ORDERED.
c. Action/Approval – Recommending Approval to Lease Amendment Extending the
Timeframe for Legacy Electric LLC, Lessee, to Complete Improvements as Set Forth
in the Original Lease of Airport Reserve Lands for Property Located at 115 FBO Road,
Kenai, Alaska 99611; Further Described as Lot 2, Block 1, General Aviation Apron
MOTION:
It was MOVED and SECONDED to approve first amendment to Legacy Electric for lease of airport
reserve lands. There were no objections, SO ORDERED.
7. REPORTS
a. Airport Manager – Bondurant reported the following:
• Continuing to advertise available City property in the Petroleum News;
• She attended the Alaska Public Employee Insurance Manager Training on April
2;
• On April 13 at the Airport there would be the launch party for the Read on the Fly
Program;
• The post winter snow and ice control meeting was scheduled for April 18;
• On April 23-25 the annual FAA Certification inspection would be conducted;
254
Airport Commission
April 12, 2018
Page 3 of 3
• Assistant E. Shinn scheduled to attend the Great Alaska Aviation Gathering on
May 4-6;
• The Runway Safety Action Team Meeting scheduled for May 22;
• She would be attending the Bi-Annual Alaska Region Division Workshop on June
6-7;
• The Annual Kenai Peninsula Air Fair scheduled for June 9-18;
• She met with the new City Planner, Elizabeth Appleby on April 12 and provided
her a tour; and
• She reminded members about the Volunteer Appreciation Dinner on April 19.
b. City Council Liaison – Council Member Navarre had nothing to report but offered to
take the sign design for immediate Council approval, if interested.
8. NEXT MEETING ATTENDANCE NOTIFICATION – May 10, 2018
9. COMMISSIONER COMMENTS AND QUESTIONS
Commissioner Minelga requested Council Member Navarre to continue thinking about the need
of rehabilitation of Willow Street, past the Airport, to Marathon Road.
10. ADDITIONAL PUBLIC COMMENT – None.
11. INFORMATION ITEMS
a. February 2018 Airport Manager’s Report
b. March 2018 Airport Manager’s Report
c. February 2018 Enplanements
d. January 2018 Airports Division News
e. Civil Rights Thank You
f. March 16, 2018 Email by Arctic Barnabas Ministries
g. Volunteer Appreciation Dinner – April 19
12. ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 6:55 p.m.
Meeting summary prepared and submitted by:
_____________________________________
Jacquelyn Kennedy
Deputy City Clerk
255
____________________________________________________________________________________
Harbor Commission Meeting Page 1 of 4
April 9, 2018
KENAI HARBOR COMMISSION
APRIL 9, 2018 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
CHAIR CHRISTINE HUTCHINSON, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Chair Hutchinson called the meeting to order at 6:00 p.m.
a. Pledge of Allegiance
Chair Hutchinson led those assembled in the Pledge of Allegiance.
b. Roll Call
Roll was confirmed as follows:
Commissioners present: Chair C. Hutchison, Vice-Chair N. DuPerron, M. Dunn,
G. Greenberg, B. Peters, C. Crandall
Commissioners absent: J. Desimone
Staff/Council Liaison present: City Manager P. Ostrander, Public Works Assistant K.
Feltman, Council Member J. Glendening
A quorum was present.
c. Agenda Approval
MOTION:
Commissioner DuPerron MOVED to approve the agenda with the addition of 5c. Wake Zones.
Commissioner Peters SECONDED the motion. There were no objections; SO ORDERED.
2. SCHEDULED PUBLIC COMMENTS – None.
3. UNSCHEDULED PUBLIC COMMENT – None.
4. APPROVAL OF MEETING SUMMARY
a. March 12, 2018
MOTION:
Commissioner DuPerron MOVED to approve the meeting summary of March 12, 2018; and
Commissioner Crandall SECONDED the motion. There were no objections; SO ORDERED.
256
____________________________________________________________________________________
Harbor Commission Meeting Page 2 of 4
April 9, 2018
5. UNFINISHED BUSINESS
a. Discussion – List of Motions by Harbor Commission 2012 – 2017
The list of motions by the Harbor Commission in 2012 – 2017 was reviewed.
b. Discussion/Recommendation – Capital Improvement Program Priorities
Priority discussion of the Capital Improvement Projects included bluff erosion/stabilization,
mooring buoy study, float replacement, continuation of floats, drift boat pull-out, and the master
plan. It was noted that buoy permitting was not funded and the launch ramp extension design was
not permitted.
MOTION:
Commissioner DuPerron MOVED to recommend the Capital Improvement Project Priorities be 1)
Bluff Erosion, 2) Float Replacement, 3) Drift Boat Pullout in the Lower Kenai River, and 4) Mooring
Buoy Permitting Study. Commissioner Crandall SECONDED the motion. There were no
objections; SO ORDERED.
c. Discussion – Wake Zones
It was noted that this item was discussed at the April 4 City Council Meeting. The Commission
needs to define where to place the No Wake Zone signs for Council approval. No permitting was
required nor Kenai Municipal Code revisions to put up signs.
Locations and the size of the No Wake Zone signs was discussed.
MOTION:
Commissioner Dunn MOVED to request City Council approve installation of two No Wake Signs
at the mouth of the Kenai River; and Commissioner DuPerron SECONDED the motion.
MOTION TO AMEND:
Commissioner DuPerron MOVED to amend by including the size of the signs of up to 4 x 8 feet;
and Commissioner Crandall SECONDED the motion. There were no objections; SO ORDERED.
MOTION TO AMEND:
Commissioner Crandall MOVED to amend by requesting including information in the Dipnet
Brochure to be handed out at the fee shack, and posted on the App; and Commissioner DuPerron
SECONDED the motion. There were no objections; SO ORDERED.
MOTION TO AMEND:
Commissioner DuPerron MOVED to amend by including a timeframe to the No Wake Zone signs
of June – October 1; Commissioner Crandall SECONDED the motion. There were no objections;
SO ORDERED.
257
____________________________________________________________________________________
Harbor Commission Meeting Page 3 of 4
April 9, 2018
VOTE ON THE MAIN MOTION:
YEA: Hutchison, DuPerron, Dunn, Greenberg, Crandall, Peters
NAY:
MOTION PASSED UNANIMOUSLY.
6. NEW BUSINESS
a. Discussion/Recommendation – Formation of a Sub-Committee
The purpose of the sub-committee was discussed, including determining roles and responsibilities
of the Harbor Commission to bring back findings and determination to the Commission as a whole.
It was noted that the formation of a sub-committee would need to be approved by City Council.
It was requested that Rick Koch’s memo, as included in this meeting packet, be forwarded to the
Sub-Committee.
MOTION:
Commissioner DuPerron MOVED to request City Council approve the formation of a Sub-
Committee consisting of Commissioners DuPerron, Dunn, and Crandall to determine the roles
and responsibilities of the Harbor Commission and present to City Council at the first meeting in
May 2018; and Commissioner Crandall SECONDED the motion. There were no objections; SO
ORDERED.
b. Discussion – City Harbor Safety Concerns
Boating safety was discussed and how to get that information to the public was emphasized.
MOTION:
Commissioner DuPerron MOVED to request Administration include boating education information
in the brochure; and Commissioner Crandall SECONDED the motion. There were no objections;
SO ORDERED.
7. REPORTS
a. Public Works Director – City Manager Ostrander reported:
• There will be additional training for commissions and committees, coming soon;
• The feasibility report for the Bluff Erosion Project was delayed but would provide
an update when available; and
• Administration was doing budget preparations to include more details by each
department to show how it connects with the City of Kenai mission statement.
b. Commission Chair – Hutchison noted interest in discussion of the Dipnet App and
VIP passes for the Harbor Commission.
c. City Council Liaison – Council Member Glendening reported on the March 21
Council Meeting actions and provided information about the live Kenai Eagle
camera. 258
____________________________________________________________________________________
Harbor Commission Meeting Page 4 of 4
April 9, 2018
8. NEXT MEETING ATTENDANCE NOTIFICATION – May 7, 2018
9. COMMISSIONER COMMENTS AND QUESTIONS
Commissioner DuPerron expressed thanks to the committee and City Manager for their time and
efforts. He further noted that the sub-committee should meet monthly, immediately following
approval by City Council.
Commissioner Peters wished the sub-committee best wishes in their work.
10. ADDITIONAL PUBLIC COMMENT – None.
11. INFORMATION ITEMS – Volunteer Appreciation Dinner on April 19
12. ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 7:57 p.m.
Meeting summary prepared and submitted by:
_____________________________________
Jacquelyn Kennedy
Deputy City Clerk
259
KENAI PLANNING & ZONING COMMISSION
REGULAR MEETING
APRIL 11, 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: Chair J. Twait, Vice-Chair R. Springer, J. Halstead, K.
Peterson, V. Askin, D. Fikes, G. Greenberg
Commissioners absent: None.
Staff/Council Liaison present: City Manager P. Ostrander, City Planner E. Appleby, Deputy
City Clerk J. Kennedy, Planning Assistant W. Anderson,
Council Liaison H. Knackstedt
A quorum was present.
c. Agenda Approval
MOTION:
Commissioner Askin MOVED to approve the agenda and Commissioner Halstead SECONDED
the motion. There were no objections; SO ORDERED.
d. Consent Agenda
MOTION:
Commissioner Halstead 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 – None. 260
____________________________________________________________________________________
Planning and Zoning Commission Meeting Page 2 of 5
April 11, 2018
2. *APPROVAL OF MINUTES: March 28, 2018
The minutes were approved by the Consent Agenda.
3. SCHEDULED PUBLIC COMMENT: (10 minutes) None scheduled.
4. UNSCHEDULED PUBLIC COMMENT: (3 minutes) None.
5. CONSIDERATION OF PLATS: None.
6. PUBLIC HEARINGS: None.
7. UNFINISHED BUSINESS: None.
8. NEW BUSINESS:
a. Recommending approval of Lease Amendment extending the timeframe for Legacy
Electric LLC, Lessee, to complete improvements as set forth in the Original Lease of
Airport Reserve Lands for property located at 115 FBO Road, Kenai, Alaska, 99611;
further described as Lot 2, Block 1, General Aviation Apron
City Manager Ostrander reviewed the staff report, as provided in the packet, noting that the
applicant entered into a Lease of Airport Reserve Lands on January 12, 2015. Ostrander added
that the Lessee completed construction on the first t-hanger; however, construction had not begun
on the second t-hanger; evidence of completion was due to the City of Kenai by September 2016.
Based on the application, it was the recommendation of staff that the requested Lease
Amendment be approved, subject to the following requirements:
• Development and construction of Permanent Improvements including removal of
waste material previously buried on the site and construct two (2) 6-plex unit t-hanger
heated complex, by no later than December 1, 2018, with an appraised value of at
least $500,000.00. 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 $500,000.00.
• The evidence must be submitted to the City within sixty (60) days of the completion of
the development and improvements.
MOTION:
Commissioner Peterson MOVED to approve the Lease Amendment with staff recommendations
and Commissioner Halstead SECONDED the motion.
Chairman Twait opened the floor for public testimony; there being no one wishing to be heard,
public comment was closed.
Commissioner Peterson questioned the delay. City Manager Ostrander clarified that the material
for the second hangar was ordered and on-site, the owner intended to sell the property, but was
unable to do so and unaware of the lease deadline.
261
____________________________________________________________________________________
Planning and Zoning Commission Meeting Page 3 of 5
April 11, 2018
VOTE:
YEA: Twait, Springer, Halstead, Peterson, Askin, Fikes, Greenberg
NAY:
MOTION PASSED.
b. Resolution PZ2018-09 - Application for Transfer of Conditional Use Permit PZ03-32
(amended by PZ05-35 and PZ16-39) from Mary J. Doyle, Transferor, to Beaver Loop
Sand & Gravel LLC, Transferee, located at 2369 Beaver Loop Road, Kenai, Alaska,
99611; further described as Tract A1, Beaver Loop Acres Addition No. 1
City Manager Ostrander reviewed the staff report, which was provided in the packet, noting that
this gravel pit had been operated by the Doyle family since 1985 and would continue to be a family
run business. The gravel pit was purchased by Beaver Loop Sand & Gravel, LLC; and the
managing members are family members. Ostrander added that David Yragui, Managing Member
of Beaver Loop Sand & Gravel LLC, Transferee, had indicated that he agreed to operate under
the terms and conditions of the original Conditional Use Permit PZ03-32 and the amendments
thereto.
Staff hereby recommended approval of the Transfer of Conditional Use Permit PZ03-32, as
amended by PZ05-35 and PZ16-39, subject to the existing conditions:
• Prior to commencement of extraction of Natural Resources or any reclamation activities,
the Applicant shall obtain all necessary State and Federal Permits;
• Prior to commencement of any extraction of Natural Resources or any reclamation
activities, the Applicant shall repair or replace any damaged fencing located on the rear
of the site;
• Prior to commencement of any extraction of Natural Resources or any reclamation
activities, the Applicant shall submit a revised site plan which labels the area behind Area
2 as Area 2A and ensures that the further subsurface extraction is limited to within 10
feet of the rear property line;
• Excavation below the water table shall only be allowed in those locations marked Area 1,
Area 2, Area 2A and Area 3;
• There shall be no further excavation below the water table in the Area located up to 10
feet from the rear property line behind Area 2. The final working face shall be back sloped
to minimum angle of 2:1;
• The excavation may not penetrate the subsurface clay/silt layer located approximately 30
feet below the original ground surface;
• If fill material is placed in the pits, it must be fill material originally from this approximately
52.5-acre site and it must not contain any “hazardous substances,” or “industrial waste,”
“mining waste,” “solid waste,” or “other waste” as defined in Alaska State Statues;
• Applicant shall file an annual report for the Conditional Use Permit as set forth in Kenai
Municipal Code 14.20.155;
• Applicant shall employ the use of dust control measures to ensure the material site and
the driveway fronting onto Beaver Loop Road remain dust free. Dust control shall include
the daily use of a water truck and placement of Calcium Chloride on the driveway. A water
truck shall also be used to control dust from the working face of the Gravel Pit; and,
• If there is a change of use for the above described property, a new Conditional Use Permit
must be obtained, pursuant to KMC 14.20.150(i)(5).
262
____________________________________________________________________________________
Planning and Zoning Commission Meeting Page 4 of 5
April 11, 2018
MOTION:
Commissioner Askin MOVED to approve Resolution PZ2018-09 with staff recommendations and
Commissioner Halstead SECONDED the motion.
Chairman Twait opened the floor for public testimony; there being no one wishing to be heard,
public comment was closed.
VOTE:
YEA: Twait, Springer, Halstead, Peterson, Askin, Fikes, Greenberg
NAY:
MOTION PASSED.
9. PENDING ITEMS: None.
10. REPORTS:
a. City Council – Council Member Knackstedt reviewed the action agenda from the April 4
City Council Meeting; noted that a representative with the Fine Arts Center provided a
presentation and a schedule of updates they were doing; Steve Rouse, Executive Director
of the Kenai Peninsula Housing Initiatives presented on the new low-income housing
available in the Kenai community and the upcoming developments for low-income seniors.
Council Member Knackstedt clarified the change in the Board of Adjustment hearings process and
specified the criteria in determining an aggrieved person.
b. Borough Planning – Commissioner Fikes noted that the Borough Planning Committee
met on April 9 and conditionally approved 5 preliminary plats; unanimous approval of a
cultivation facility; and approval of a conditional use permit to replace existing twin culverts.
c. Administration – City Manager Ostrander reported on the following:
• At the end of last month, Administration met in Anchorage with FAA regarding the
Kenai Terminal Rehab Project. After phase 1 it was determined that cost would be
significantly more than budgeted for, however, the City of Kenai may be eligible for
FAA discretionary funding to assist in the project;
• There was a delay in the Bluff Erosion project, funding was not approved as expected
and the 3-year deadline was coming up; State delegation will be in contact with the
Corps of Engineers regarding needed funding;
• Administration was doing budget preparations with a new narrative process to include
more details by each department to show how it connects with the City of Kenai
mission statement;
• Request for Proposals is posted for a dock concessionaire;
• Harbor Commission to recommend to City Council several signs at the mouth of the
Kenai river to create a No Wake zone; and
• Introduced and welcomed the new City Planner, Elizabeth Appleby as she started on
April 9.
The scope of the Airport project was discussed.
263
____________________________________________________________________________________
Planning and Zoning Commission Meeting Page 5 of 5
April 11, 2018
11. ADDITIONAL PUBLIC COMMENT – None.
12. INFORMATIONAL ITEMS
City Manager Ostrander reminded the commission of the Volunteer Appreciation Dinner on April
19 at the Senior Center.
13. NEXT MEETING ATTENDANCE NOTIFICATION: April 25, 2018
14. COMMISSION COMMENTS & QUESTIONS
Commissioner Askin thanked City Manager Ostrander for stepping in and looked forward to
working with the new City Planner.
Commissioner Halstead asked about follow-up of the recent work session. City Manager
Ostrander clarified that legislation had been drafted and should be in the next council packet for
the April 18 meeting .
On behalf of several concerned citizens in the community, Commissioner Greenberg inquired
about the progress and status of Beaver Loop trail; suggested inviting State officials to an
upcoming Commission or Council meeting to present an update. City Manager Ostrander noted
that he had spoken with DOT and they were not planning on additional public meetings. Ostrander
relayed the explanations behind the clearings on Beaver Loop and agreed to contact DOT
regarding a possible public meeting or invite them to present to the Commission.
15. ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 7:33 p.m.
Minutes prepared and submitted by:
_____________________________
Jacquelyn Kennedy
Deputy City Clerk
264
KENAI BEAUTIFICATION COMMITTEE
REGULAR MEETING
APRIL 10, 2018 – 6:00 P.M.
CITY HALL COUNCIL CHAMBERS
CHAIR LISA GABRIEL, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Chair Gabriel called the meeting to order at 6:00 p.m.
a. Pledge of Allegiance.
Chair Gabriel led those assembled in the Pledge of Allegiance.
b. Roll was confirmed as follows:
Committee Members present: Chair L. Gabriel, Vice Chair S. Peterson, T. Canady, R.
Sierer, K. Reed, T. Wilson
Committee Members absent: B. Madrid
Staff/Council Liaison present: Parks and Recreation Director B. Frates, Mayor B. Gabriel
A quorum was present.
c. Agenda Approval
MOTION:
Committee Member Peterson MOVED to approve the agenda; and Committee Member Sierer
SECONDED the motion. There were no objections; SO ORDERED.
2. SCHEDULED PUBLIC COMMENTS – None.
3. UNSCHEDULED PUBLIC COMMENT – None.
4. APPROVAL OF MEETING SUMMARIES
a. July 11, 2017 (Joint Meeting)
MOTION:
Committee Member Peterson MOVED to approve the July 11, 2017 meeting summary and
Committee Member Sierer SECONDED the motion. There were no objections; SO ORDERED.
b. January 9, 2018
It was noted that Commissioner should be changed to Committee Member throughout.
265
Beautification Committee Meeting
April 10, 2018
Page 2
MOTION:
Committee Member Reed MOVED to approve the January 9, 2018 meeting summary with
changes as noted and Committee Member Sierer SECONDED the motion. There were no
objections; SO ORDERED.
5. UNFINISHED BUSINESS – None.
6. NEW BUSINESS
a. Discussion – 2018 Plants and Designs
Director Frates referred to the updated 2018 plant list and noted that all the various plugs had
arrived and several volunteers assisted the Parks and Recreation Department with getting
material transplanted. He further noted that staff would be working on design plans over the next
couple of weeks.
Director Frates requested that Committee Members contact the office if they had a particular
flower bed they were interested in helping design. Frates added that he would provide maps and
various pictures of previous years’ beds.
b. Discussion – 2018 Beautification Brochure
Director Frates presented a draft plan of the proposed Beautification Brochure. It was noted that
staff worked hard on putting the brochure together and feedback was requested.
Committee Members requested the following: Add check boxes in front of flowers; double check
spelling of several flowers; and add a flower identification app suitable for this area.
c. Discussion/Recommendation – Winter Pole Displays
Director Frates reported that several shooting star pole displays were purchased and installed
along Airport Way earlier this winter. He added that comments were favorable and staff was
recommending purchasing the same displays for Willow Street.
Committee Members requested that this item be put on the May 8 Beautification Meeting agenda
and other examples be provided for consideration.
7. REPORTS
a. Parks & Recreation Director – Frates noted the Monthly Report was provided in the
packet and highlighted the following:
• Recruitment and interviewing occurring for Labor position and Temporary
hires; and
• A Kenai Central High School student was building a Bike Repair Station
that the Parks and Recreation Department would install at Beaver Creek
Park. The goal was to help promote a bike friendly community with potential
of additional stations built in the future.
266
Beautification Committee Meeting
April 10, 2018
Page 3
b. Committee Chair – None.
c. City Council Liaison – Mayor Gabriel reported on the recent actions taken by City
Council; next meeting is April 18. Gabriel also reminded members about the Volunteer
Appreciation Dinner on April 19.
8. NEXT MEETING ATTENDANCE NOTIFICATION – May 8, 2018
9. COMMITTEE MEMBER QUESTIONS AND COMMENTS
Committee Member Reed inquired about the clearing of property near South Forest Drive and
Kenai Spur Highway. Mayor Gabriel provided an update and noted a change in the City’s
landscape ordinance would prevent similar situations from happening in the future.
10. ADDITIONAL PUBLIC COMMENT – None.
11. INFORMATION
a. Volunteer Appreciation Dinner – April 19, 2018
12. ADJOURNMENT
There being no further business before the Committee, the meeting was adjourned at 7:20 p.m.
Meeting summary prepared and submitted by:
_____________________________________
Jacquelyn Kennedy
Deputy City Clerk
267
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: April 20, 2018
SUBJECT: Bluff Erosion Funding Options
____________________________________________________________________________
The purpose of this memo is to discuss funding options for the City’s match to the Kenai Bluff
Erosion Control Project. Current estimates for design and construction of the project are
$32,051,000 of which the City’s cost share is 35% or $11,217,850. The following is a breakdown
of the project costs, City’s local share, funding secured to date, and the amount of funding
remaining to be secured.
Estimated Project Cost $32,051,000
City Cost Share – 35% X 35%
City Share $11,217,850
City Share $11,217,850
Less: State of Alaska Grant Funds:
11-DC-248 (250,000)
12-DC-377 (1,750,000)
15-RR-035 (2,000,000)
Less: 2007 Bond Authorization (2,000,000)
Unfunded City Share $ 5,217,850
With the 2007 voter authorization for $2.0 million in general obligation debt, the unfunded City
share is $5,217,850. Because the authorized debt has not been issued, for all practical purposes
the unfunded City share is $7,217,850. The administration is actively pursuing other federal and
state funding options to further reduce the unfunded City share. The following are list of possible
funding options to be considered. This analysis is based upon the worst-case scenario of no
more federal or state funding being secured. Also provided are possible revenue sources for
payment of the options including estimated annual amounts for each source.
268
Financing Options
General Fund, Fund Balance
Per the proposed FY2019 Budget, the projected June 30, 2019 fund balance for the General Fund
is $10,236,292. The minimum required fund balance per KMC 72.25.050(a) is $7,052,485.
Funding the project by using fund balance is possible but ending fund balance would be below
the required minimum by $4,034,043. KMC 7.25.050(b) would required Council to adopt a plan
to replenish the fund balance to its minimum level within three years.
Revenue Bonds
Revenue Bonds are utilized to fund projects that generate a revenue stream sufficient to fund
operational costs and annual debt service payments. The Kenai Bluff Erosion Control Project is
not projected to produce income. Property tax revenue is likely to be positively impacted but not
in sufficient amounts to fund operations or debt service. Revenue bonds are not an option for
funding the project.
Local Improvement District Bonds
Bonds issued to fund local improvement districts are secured with an assessment against the real
property being improved by the project. There is an estimated $12,304,000 of property value,
both structures and land, within the project impact zone. Included in the $12,304,000 is the Kenai
Senior Center and Vintage Pointe Manor. The remaining property values are insufficient to secure
or sustain an assessment sufficient to service the debt required for the project. A local
improvement district is not an option for funding the project.
General Obligation Bonds
General obligation bonds are debt secured with the full faith and credit of the City. Lenders look
to all revenue sources of the City to support debt service payments. Currently the City has
$1,355,000 of outstanding, general obligation debt. The City’s legal debt limit is established in
Section 6-1(b) of the Kenai Municipal Charter. At no time shall the outstanding indebtedness of
the City exceed 20% of the assessed value of all real and personal property in the City. The
FY2019 projected real and personal property values for the City are $877,218,970 making the
legal debt limit $175,443,794. There is sufficient debt capacity for the issuance of general
obligation bonds for the project.
Pursuant to Section 6-1(a) of the Kenai Municipal Charter, the issuance of general obligation
bonds must be approved by Council and ratified at an election by a majority of those qualified to
vote and voting on the question. Current interest rates for 20 year, general obligation debt range
from 3.5% to 4.0% and debt service will range from $70.36 to $73.58 per $1,000 of indebtedness
annually.
Utilization of Permanent Fund Balances
The City maintains two separate permanent funds, The Airport Land Sale and General Land Sale
permanent funds. Section 5-11 of the Kenai Municipal Charter prohibits the spending or
appropriation of the General Land Sale Permanent Fund’s principle balance and KMC 7.30.005(d)
prohibits utilization of the principle balance for any purpose besides investment. The use of the
Airport Land Sale Permanent Fund’s principle balance for any purpose other than investment is
prohibited by 7.30.010(d).
Under the current KMC and Kenai Municipal Charter the use of permanent fund balances to
finance the Kenai Bluff Erosion Control Project is not an option. Both the KMC and Municipal
Charter are amendable documents, however, utilization of funds with a projected earnings rate
269
that is significantly in excess of the current cost of borrowing would be a questionable financial
decision. The loss of operational income to the General or Airport Special Revenue Funds must
also be considered when considering this option. The FY2019 Proposed Budget estimates
revenue to the General Fund in the amount of $162,999 and to the Airport Special Revenue Fund
in the amount of $1,230,025 that would not be possible if the principle balances were utilized to
finance the project. While possible, the use of permanent fund principle balances to finance the
project is not a recommended approach.
Revenue Generating Options
Regardless of which financing solution is chosen, revenue must be generated to repay the debt
or replenish fund balance. The following revenue solutions should be considered for the project.
Property Tax Mill Assessment
The mill assessment is a factor applied to the taxable value of real and personal property to
determine the amount of tax due. A mill is equivalent to one-tenth of a percentage or $100 per
$100,000 of taxable property value. The proposed FY2019 Budget recommends a mill levy of
4.35 to fund City operations. Each mill of levy will generate approximately $877,219 in revenue
annually.
Sales Tax
The City imposes a 3% sales tax on the sale of goods and services within the City. Sales tax
limits and exemptions are provided for in the code of the Kenai Peninsula Borough, the entity
charged with administration and collection of the City’s sales taxes. One-percent of sales tax is
projected to generate $2,374,972 in the FY2019 proposed budget.
Bed Tax
Chapter 7.12 of the KMC establishes a 5% tax on the proceeds paid for temporary lodging within
the City. Section 7.12.100 suspended the provisions of Chapter 7.12 effective June 15, 1996 until
such time as Council by ordinance directs otherwise. Each percent of bed tax is projected to
generate approximately $55,000 annually.
The following table shows what amount of levy or rate for each source would be needed to provide
the revenue for each option. The table should be used only as a point of reference. The actual
cost of the project is unknown and there are multiple combinations of these funding solutions that
could be used to generate revenue in support of the project.
Mill Levy
Sales Tax
Rate
Bed Tax
Rate
Funding Option:
Utilization of Fund Balance requiring $4,034,043
replenishment in three years. 1.53 0.57% 24.45%
Issuance of 20-year general obligation bond for
$7,217,850 with a 4% average cost of borrowing. 0.61 0.23% 9.66%
270
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Jamie Heinz, City Clerk
DATE: April 23, 2018
SUBJECT: Report to Council – Destruction of Records
In accordance with the City of Kenai Public Records Management Schedule and Record Retention
Policy, approved and adopted under Resolution No. 2017-22, the City Clerk's Office disposed of certain
City Records on April 12, 2018, which were subject to disposal under the Schedule.
Fire Department 4 boxes
Public Works 9 boxes
Clerk 4 boxes
Finance Department 14 boxes
Legal Department 2 boxes
The records were authorized for destruction by the respective department managers and the city
attorney, as per KMC10.30. A complete list of the above referenced obsolete records is available for
review in the Clerk's Office.
271
PURCHASE ORDERS BETWEEN $2,500 .00 AND $15,000 .00 FOR COUNCIL REVIEW
COUNCIL MEETING OF: MAY 2, 2018
VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT
INGRAM LIBRARY SERVICE BOOKS LIBRARY BOOKS 4 ,500.00
EBSCO SUBSCRIPTION SERVICE MAGAZINE SUBSCRIPTIONS LIBRARY BOOKS 3 ,372 .01
ALASKA LIBRARY NETWORK DIGITAL LIBRARY COLLECTION LIBRARY BOOKS 3 ,000.00
KACHEMAK ELECTRIC NETWORK CABINET ELECTRICAL AIRPORT IMPS OfT BUILDINGS 5,856 .00
ALASKA GARDEN & PET SUPPLY FERTILIZER, WEED-N-FEED RECREATION OPERATING SUPPLIES 7,808.10
YUKON EQUIPMENT ANNUAL ARFF TRUCK INSPECTIONS SHOP REPAIRS & MAINTENANCE 3 ,500.00
272
MAY 2 , 2018
CITY COUNCIL MEETING
ADDITIONAL MATERIAL/REVISIONS
REQUESTED REVISIONS TO THE AGENDA/PACKET:
ACTION ITEM REQUESTED BY
Add to Item G.7. Wake Zone Signage Discussion
• Sign Layout
• Cost Estimates
• Proposed Sign Placement Map City Manager
North & South Kenai Beach Proposed
Sign Layout (Aerial View)
Legend
4’x8’ MDO Plywood Sign (Black Lettering on White Background)
Telespar & Ground Anchor
Material Cost Estimates for Bluff Protection Signs
Kenai North & South Beach
Cost Item Description Unit Qty Unit Price Sub-Total
MDO Plywood (4'x8')EA 4 58.69$ 234.76$
Enamel White Paint GAL 2 40.49$ 80.98$
Vinyal Letters & Setting EA 4 360.00$ 1,440.00$
30" Anchor Tubing EA 12 24.00$ 288.00$
12' Telespar Tubing EA 12 30.00$ 360.00$
Total Estimate 2,403.74$
Proposed Sign Placement (Locations)
North Beach
South Beach