HomeMy WebLinkAbout2018-05-16 Council Packet KENAI CITY COUNCIL - REGULAR MEETING
MAY 16, 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)
B.1.Frank Richards, Alaska Gasline Development Corporation – LNG Project Presentation.
B.2.Riley Graves, Caring for the Kenai Contestant – Magnetic Beach Sweeper Concept
Overview.
C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per
speaker; thirty (30) minutes aggregated)
D.PUBLIC HEARINGS
D.1.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 Ron Hyde.
(Administration)
Ordinance No. 3021-2018.pdf
D.2.Resolution No. 2018-21 - Amending Policy 2016-01, Procedures for Commissions,
Committees and Council on Aging –to Clarify the Policy on Council’s Referral of Items for the
Agendas of the City’s Commissions, Committees and the Council on Aging Prior to any Final
Council Action. (Council Member Molloy)
Resolution No. 2018-21.pdf
E.MINUTES 1
Kenai City Council Meeting Page 2
May 16, 2018
E.1.*Regular Meeting of May 2, 2018
05-02-18 Council Minutes - DRAFT.pdf
F.UNFINISHED BUSINESS
F.1.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) [Clerk’s Note: This Item was Postponed to this Meeting from the May 2, 2018
Meeting; A Motion to Enact is On the Floor.]
Ordinance No. 3018-2018.pdf
G.NEW BUSINESS
G.1.*Action/Approval – Bills to be Ratified.
Payments over $15,000.pdf
G.2.*Action/Approval – Non-Objection to New Marijuana Product Manufacturing Facility License
for Herban Extracts, LLC – License No. 14432.
Herban Extracts - Marijuana Product Manufacturing License.pdf
G.3.*Ordinance No. 3022-2018 – Adopting the Annual Budget for the Fiscal Year Commencing
July 1, 2018 and Ending June 30, 2019 And Committing $750,000 of General Fund, Fund
Balance For Capital Improvements, Amending The Salary Schedule In Kenai Municipal Code
Chapter 23.55 - Pay Plan, Amending Employee Classifications In Kenai Municipal Code
Chapter 23.50, And Amending Police Department Qualification Pay In Kenai Municipal Code
Chapter 23.55. (Administration)
Ordinance No. 3022-2018.pdf
G.4.*Ordinance No. 3023-2018 – Increasing FY2018 General Fund Estimated Revenues and
Appropriations by $13,747 and FY2019 General Fund Estimated Revenues and
Appropriations by $35,996 in the General Fund Parks, Recreation and Beautification
Department for the Receipt of a Grant from the United States Environmental Protection
Agency Passed through the State of Alaska Department of Environmental Conservation for
Bacteria Level Monitoring on the City’s Beaches During the 2018 -2019 Personal Use
Fishery. (Administration)
Ordinance No. 3023-2018.pdf
G.5.Action/Approval – Approve a Special Use Permit to HDL Engineering Consultants, LLC, for
Storage Space at Tract A, FBO Subdivision. (Administration)
HDL Engineering Consultants SUP.pdf
G.6.Action/Approval – Special Use Permit to Reddi Towing & Salvage, LLC, for Impound Lot
Space at Lot 4, Block 5, Cook Inlet Industrial Park. (Administration)
Reddi Towing & Salvage, LLC SUP.pdf
G.7.Discussion – Dipnet Vendor Operations (City Clerk)
Dipnet Vendors Memo.pdf
H.COMMISSION/COMMITTEE REPORTS
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Kenai City Council Meeting Page 3
May 16, 2018
H.1.Council on Aging
H.2.Airport Commission
H.3.Harbor Commission
05-07-18 Harbor Summary - DRAFT.pdf
H.4.Parks and Recreation Commission
05-03-18 Parks & Rec Summary - DRAFT.pdf
H.5.Planning and Zoning Commission
04-25-18 P&Z Minutes - DRAFT.pdf
H.6.Beautification Committee
H.7.Mini-Grant Steering Committee
I.REPORT OF THE MAYOR
J.ADMINISTRATION REPORTS
J.1.City Manager
Mid-Month Reports.pdf
J.2.City Attorney
J.3.City Clerk
K.ADDITIONAL PUBLIC COMMENT
K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker)
K.2.Council Comments
L.EXECUTIVE SESSION
L.1.Review and Discussion of the City Attorney’s Evaluation which may be a Subject that Tends
to Prejudice the Reputation and Character of the City Attorney [AS 44.62.310(C)(2)].
M.PENDING ITEMS
INFORMATION ITEMS
Purchase Orders between $2,500 and $15,000 for Council Review
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Kenai City Council Meeting Page 4
May 16, 2018
PO's between $2,500 - $15,000.pdf
Kenai Historical Society Newsletter – April 2018
Apr 2018 KHS Newsletter.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.
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_____________________________________________________________________________________
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.
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Ordinance No. 3021-2018
Page 2 of 3
_____________________________________________________________________________________
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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.
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Ordinance No. 3021-2018
Page 3 of 3
_____________________________________________________________________________________
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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
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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]
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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:______
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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
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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
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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.
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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
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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
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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:__________
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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
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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 Properties, 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 C ity 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 C ity is expending significant 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,
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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 sens itivity and respect for the history of
the City; and,
WHEREAS , it is anticipated that PRL 's acqu isition of additional property in the City will create
new economic opportunities and will be managed in a responsible manner; and,
WHEREAS, the City Council fi nds 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, fi led 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, therefo re City Code provi sions governing
General Fund Land and A irport Land do not apply; and
WHEREAS , the City Council finds tha t it is in the best interest of the City to sell the property for
the aforementioned reasons to PRL without a recent appra isal.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI ,
ALASKA, as follows :
Section 1. Form : Tha t th is is a non-code ord inance .
Section 2 . Statement of Ownersh ip: That the City of Kenai is the owner of Tract A,
Dragseth Subdivision 2016 Addition , according to the official p lat thereof, under Plat No . 2016-
22, filed in the Kenai Recording District, Third Judicia l District, State of Alaska, including 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 econom ic opportunities and the proceeds will be used to continue
development of access to the South Beach and re lated improvements in compliance with Grant
No . 15-DC-078.
New Text Underlined ; [DELETED TEXT BRACKETED]
18
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 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 ,
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 o r circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision , or application directly involved
in all controversy in which this judgment shall have been rendered , and shall not affect or impair
the val idity of the remainder of this title or application thereof to other persons or circumstances .
The City Council hereby declares that it would have enacted the remainder of this ordinance
even w ithout such part, provis ion, or appl ication .
Section 8. Effective Date: That pursuant to KMC 1 .1 5.070(f), this ord inance 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 .
~. x:L4/<£.
ATTEST:
'f3RIAN GABRIEL SR., MAYOR
New Te xt U nd erl ined ; [D ELETED T EXT BRACKETE D]
Introduced : May 3, 2017
Enacted : May 17, 2017
Effective: June 16, 2017
19
'Vttl'ar aJ/t'1 a Po.~~ Ct~ 1Q/t'1 Q ht~ II
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone : (907) 283-75351 Fax: (907) 283-3014
www.kenai.city
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City 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 purchase
and sale agreement received from the buyer's agent that modify the terms and conditions of the
sale . The original purchase and sale agreement anticipated owner financing with 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 rema ining principal at that time to satisfy the terms
of the loan .
The buyer is now proposing to utilize conventional financing for the purchase of the property with
closing scheduled for June 20 , 2017. Modifications to closing costs for the buyer and seller as a
result of the change in financing are also outlined on the addendum and First National Bank is
removed as the holder of the escrow.
The two addendums are attached for your reference .
20
Sponsored by: Administration
CITY OF KENAI
RESOLUTION 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 Logist ics 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 subd ivision 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 , add itionally
requires the Planning and Zoning Commission to approve a i rport uses as a cond itional use before
any aircraft operations can occu r; 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 T HE 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 Perm it, with the cond ition that actua l aircraft uses of the
property cannot actually begin until and unless add itional separate Conditional Use Permits are
obtained by PRL from the City's Planning a nd Zoning Com m ission .
Section 2. That this Resolution takes effect immediately upon passage .
PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 17th day of May, 2 017.
~ xa;?~
21
'Vtfl~ «1/tk, a Pa~t, e~ «1/tk, a f"atrq-e JI
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-7535 I Fax: (907) 283-3014
www.kenai.city
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor 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.
22
~ -~-v ~-s ~-H -~ A_s E-R ~-, c \1
9330 Vanguard Drive , Suite 201
Anchorage, Alaska 99507
Phone: (907) 929 -2226
Fax: (907) 929-2260
Email : admin@reliantadvisory.com
www .reliantadvisory.com
NHN Royal St
NHN Royal St
Kenai, Alaska 99611
Latitude: 60.5 329, Longitude: -151 .2 7033
R elia nt R efere nce Nu mber: 18-0250
as of March 30, 2018
Prepared For:
Ronald Hyde, Jr.
23
Letter of Transmittal
April 23 , 2018
Mr. Ronald Hyde, Jr.
1948 Brandilyn St.
Anchorage, AK 99516
RE: N HN Royal St
NHN Royal St
Kenai, Alaska 9961 l
Dear Mr. Hyde:
RELIANT
~~~~~~~~LLC
~~ADV I S O RY SfRV I CES
9330 Vanguard Drive, Suite 201
Anchorage, Ala ska 99507
Phon e: (90 7) 929-2226
Fax : (90 7) 92 9-2260
Email : admin@reliantadvisory.com
www.reliantadvisory.com
At your request, an appraisal of the above referenced property has been prepared. The resu lts of the
assignment are presented in Appraisal Rep ort format. The purpose of the assignment is to estimate the current
market value of the real estate subject to planned restrictions on use. The Fee Simple interest in the subject has
been analyzed.
The report will be used by you (the Client) and the City of Kenai for prospective acquisition/sale purposes .
Although other parties may in some case s obtain a copy of this report, it should not be relied upon by anyone
other than the intended users or for anything other than the intended use.
This assignment ha s been prepared and presented in conformance with your instructions, the current Uniform
Standards of Professional Appraisal Practice (USP AP) as promulgated b y the Appraisal Standard s Board of the
Appraisal Foundation, as well a s the bylaws of the Appraisal Institute.
The subject is a large acreage tract improved with a small grass airs trip. A site and neighborhood inspection
has been made and photographs taken . Market infonnation and data regarding other similar real estate has
been obtained. This data has been analyzed using appropriate techniques and methodologies necessary to
develop a credible es timate of market value.
The economy and real estate markets are changing in Ala ska , with a greater amount of uncertainty than in
recent history. This appraisal is valid as of the effective date, based on the market information, publications,
and forecasts that are readily available to market participants as of the effective date . It is acknowledged that
anecdotal evidence, including di scussions with market participants, suggest s a softening real estate marke t.
That said, in many segments of the market there is limited current comparable data available that would
indicate and quantify any changes in prices.
18-0250 Letter of Tra n s mittal Page i
24
l!-~-v ~-s ~-R Y_I A_s E-R ~-,c l
RE: NHN Ro~al 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, investors, buyers and s ellers. The
intended users of this 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 date.
A s a result of res earch and analysis , the value e stimate for the subject is as follows :
FINAL MARKET VALUE ESTIMATE -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,
f')(L 'ot• v d. ~7 tllu CVV\.,J\.l
Barbara J. Belluomini
Alaska Certified General -No. 706
18-02 50 L e tte r o f Transmittal Page ii
25
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 analyses, opinions, and
conclusions.
3. She has no present or prospecti ve interest in the property that is the subject of this report and no personal
interest with respect to the parties involved.
4. She has no bias with respect to the property that is the subject of this report or to the parties invol ved 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 year s prior to accepting this assignment.
6. Engagement in this 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 va lue or direction in value that favors the cause of the client, the amount of the value
opinion, the attainment of a sti pulated 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 thi s report has been prepared, in conformity
with the Uniform Standards of Professional Appraisal Practice.
9. A personal walk-through of the subject property has been made by Barbara Belluomini .
I 0 . No one provided significant real property appraisal assistance to the person signing this certification and
she 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
conformity with the requirements of the Code of Professional Ethics and Standards of Professional
Appraisal Practice of the Appraisal Institute.
12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its
du ly 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 the Appraisal Institute and for certified appraisers in the
State of Alaska.
P)(l \)(l V" J .17<-l I u Lvv'l,~U
Barbara J. Belluomini
Alaska Certified General No. 706
18-0250 Page iii RELIANT
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!C Yl lr !' l l Ul!f~
26
NHN Roya l S t Table of Contents
Table of Contents
LETTER OF TRANSMITTAL .................................................................................................................................. !
CERTIFICATION .................................................................................................................................................... 111
TABLE OF CONTENTS ........................................................................................................................................... V
ASSIGNMENT OVERVIEW ................................................................................................................................ -1-
IDENTITY OF PROPERTY ........................................................................................................................................ -1 -
Name ............................................................................................................................................................... -1-
Brief Description ............................................................................................................................................. -1 -
Address ............................................................................................................................................................ -1 -
Geo Coordinates ............................................................................................................................................. -1 -
Physical Location ............................................................................................................................................ -1 -
Assessor's Tax Parcel Number(s) ................................................................................................................... -1 -
Abbreviated Legal Description ....................................................................................................................... -1 -
SCOPE OF ASSIGNMENT ........................................................................................................................................ -I -
Value Definition .............................................................................................................................................. -1 -
Other Definitions ............................................................................................................................................. -2 -
Purpose ........................................................................................................................................................... -2 -
Intended Use ................................................................................................................................................... -2 -
Intended Users ................................................................................................................................................ -2 -
Property Interest Appraised ............................................................................................................................ -2 -
Property Rights Appraised .............................................................................................................................. -2 -
R eport 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 Transactio n History ...................................................................................................................... -5 -
EXTRAORDINARY ASSUMPTIONS, LIMITING CONDITIONS .................................................................................... -5 -
HYPOTHETICAL CONDITIONS ................................................................................................................................ -6-
COMPETENCY OF APPRAISER ................................................................................................................................ -6 -
AREA DATA .......................................................................................................................................................... -7 -
REGIONAL AREA DATA ........................................................................................................................................ -7 -
LOCAL AREA DATA ............................................................................................................................................ -10 -
Employ1nent Data ......................................................................................................................................... -10 -
Kenai ............................................................................................................................................................. -11 -
Soldotna ........................................................................................................................................................ -11 -
18-0250 ~ RELIANJ
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Page v
27
NHN Royal St Table of Contents
Kalifornsky Beach (K-Bea ch) R oad Area ................................................................................................... -11 -
Concl usion .................................................................................................................................................... -12 -
NEIGHBORHOO D D ATA ....................................................................................................................................... -13 -
Na me ............................................................................................................................................................. -13 -
Location & Access ........................................................................................................................................ -13 -
Character & Land Uses ................................................................................................................................ -13 -
Surrounding Uses .......................................................................................................................................... -I 3 -
Typical Age of Improvements ........................................................................................................................ -13 -
Land D evelop ed ............................................................................................................................................ -13 -
Life Cycle ...................................................................................................................................................... -13 -
Tre nds ........................................................................................................................................................... -13 -
IMM EDIATE NEIGHBOR HOOD MAP ..................................................................................................................... -14 -
I MMED LATENEIGHBORHOODPHOTOGRAPHS ..................................................................................................... -15 -
MARKET ANALYSIS ......................................................................................................................................... -17 -
W ATERFRONT ACREAGE TRACTS ....................................................................................................................... -17-
Classification ................................................................................................................................................ -17 -
Overview of Market Survey ........................................................................................................................... -17 -
Marke t Supply ............................................................................................................................................... -17 -
Marke t D emand. ............................................................................................................................................ -17 -
Equilibrium Status ......................................................................................................................................... -18 -
Near Term Ma rke t Outlook ........................................................................................................................... -18 -
IMPACT OF Low OIL PRICES ............................................................................................................................ -18 -
Current Conditions ....................................................................................................................................... -18 -
SUBJECT'S COMPETITIVE POSITION .................................................................................................................... -19 -
Comp etitive Strengths I D ownward Risk Influences ..................................................................................... -19 -
Competitive Weaknesses I Upward Ris k 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 ..................................................................................................................... -2 1 -
Abbreviated L egal Description ..................................................................................................................... -2 1 -
Gross Site Area ............................................................................................................................................. -2 I -
Shape ............................................................................................................................................................. -2 1 -
Street Frontage ............................................................................................................................................. -2 1 -
Access ............................................................................................................................................................ -2 1 -
Expos ure ....................................................................................................................................................... -21 -
Adjacent Land Uses ...................................................................................................................................... -21 -
Topography ................................................................................................................................................... -21 -
Water Frontage ............................................................................................................................................. -2 I -
Views ............................................................................................................................................................. -21 -
Soil Conditions .............................................................................................................................................. -21 -
We tlands ........................................................................................................................................................ -22 -
Ha zardous Condition s ................................................................................................................................... -22 -
Flood Zone .................................................................................................................................................... -22 -
Utilities .......................................................................................................................................................... -22 -
AERIAL MAP ....................................................................................................................................................... -23 -
PLAT M AP .......................................................................................................................................................... -24 -
Zoning ........................................................................................................................................................... -25 -
Easem en ts, Covenants, Encroachm ents & R estrictions ................................................................................ -26 -
Functional Utility .......................................................................................................................................... -2 7 -
18-0250 ~ RELIANJ
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Page vi
28
NHN Royal St Table of Contents
PROPERTY ASSESSMENT & TAXES ............................................................................................................ -29 -
SUMMARY OF P ROPERTY AsSESSMENT & T AXES ............................................................................................... -29 -
R e al Property ................................................................................................................................................ -29 -
PROPERTY ASSESSMENT & T AX SUMMARY EXHIB IT .......................................................................................... -29 -
SUBJECT PHOTOGRAPHS .............................................................................................................................. -3 1 -
HIGHEST & BEST USE ..................................................................................................................................... -35 -
D EF IN IT ION & METHODOLOGY ........................................................................................................................... -35 -
Scop e of Hig hest & B est Use ........................................................................................................................ -35 -
As-Is -v ACANT ................................................................................................................................................. -35 -
Lega lly Permissible ....................................................................................................................................... -35 -
Physically Possible ....................................................................................................................................... -35 -
Fin ancially F ea s ible ..................................................................................................................................... -35 -
M aximally Produ c tive ................................................................................................................................... -35 -
LAND VALUATION ........................................................................................................................................... -37 -
I NTRO DUCTION ................................................................................................................................................... -37 -
M ethodology ................................................................................................................................................. -3 7 -
Un its of Co mparison ..................................................................................................................................... -3 7 -
CoMPARAB LE DATA ........................................................................................................................................... -37 -
Sources of Data ............................................................................................................................................. -3 7 -
Availab ility of Data ....................................................................................................................................... -37 -
Presentation of Data ..................................................................................................................................... -3 7 -
SUMMARY O F C OMPARABLE LAN D S ALES E XHI BIT ........................................................................................... -38 -
COMPAR ABLE L AN D SALES MAP ........................................................................................................................ -39 -
D ESCRIPT IO N OF DATA ....................................................................................................................................... -40 -
Sale No. L-1 .................................................................................................................................................. -40 -
Sale No. l-2 .................................................................................................................................................. -40 -
Sa le No. L-3 .................................................................................................................................................. -40 -
Sa le No. L-4 .................................................................................................................................................. -40 -
Sale No. L-5 .................................................................................................................................................. -40 -
Sa le No. l -6 .................................................................................................................................................. -41 -
Sa le No. L-7 .................................................................................................................................................. -4 1 -
O VE RVIE W OF ADJUSTMENTS ............................................................................................................................. -41 -
Na ture of Adjustments ................................................................................................................................... -41 -
Prop erty R ights Con veyed. ............................................................................................................................ -4 1 -
Financing Term s ........................................................................................................................................... -42 -
Co ndition s of Sa le ......................................................................................................................................... -42 -
Ma rket Co ndition s ......................................................................................................................................... -42 -
Location ........................................................................................................................................................ -42 -
R oad Frontage .............................................................................................................................................. -42 -
Size ................................................................................................................................................................ -43 -
Top ograph y ................................................................................................................................................... -43 -
Shape ............................................................................................................................................................. -43 -
Ut ilities .......................................................................................................................................................... -43 -
Use I Zoning .................................................................................................................................................. -43 -
We tla nds/L imited Utility ............................................................................................................................... -44 -
Wate r Frontage ............................................................................................................................................. -44 -
View .............................................................................................................................................................. -4 4 -
Airstr ip .......................................................................................................................................................... -44-
ADJUSTM ENT G R ID EXHIB IT ............................................................................................................................... -4 5 -
D ISCUSS IO N & ANALYS IS AFTER ADJ USTMENT ................................................................................................. -46 -
L AN D V A LUE C ALC ULATION-U NENCUM BERED ............................................................................................... -46 -
18-0250 RELIANT
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Page vii
29
NHN Royal St Table of Contents
RESTRICTIONS ON USE ........................................................................................................................................ -46 -
FINAL M ARKET VALUE ESTIMATE ..................................................................................................................... -47 -
EXPOS URE PERJOD .............................................................................................................................................. -47 -
MARKETIN G TIM E·············································································································································· -4 7 -
GENERAL ASSUMPTIONS & LIMITING CONDITIONS ........................................................................... -49 -
TERMS & DEFINITIONS .................................................................................................................................. -57 -
ADDENDUM: LETTER OF ENGAGEMENT ................................................................................................ -59 -
ADDENDUM: DEED SUBJECT TO RIGHT OF ENTRY ............................................................................. -61 -
ADDENDUM: RIGHT OF FIRST REFUSAL AGREEMENT ...................................................................... -63 -
ADDENDUM: EXPERIENCE DATA ............................................................................................................... -65 -
18-0250 RELIANT
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Page viii
30
NHN Roy a l St As s ignment O v erview
Assignment Overview
Identity of Propert)
Name
Brief Description
Address
Geo Coordinates
Physical Location
Assessor's Tax Parcel
Number(s)1
Abbreviated Legal
Description
Scope of Assignment
Value Definition
MAR KET VA LUE
(O CC)2
1 Per Tax Assessor Records.
NHN Royal St
The subject is a large acreage tract improved with a small grass airstrip.
NHN Royal St
Kenai, Alaska 996 1 I
Latitude: 60.5329, Longitude: -151.27033
The subject is located at th e end of Royal Street.
049-100-52
Tra ct C Dragseth Subdivision, 2017 Addition, according to th e official
plat thereof filed under Plat Number 2017-60, R ecords of the K enai
Recording Dis tric t, Third Judicial District, 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 conditions requisite to a fair sale, the buyer and seller each acting
prudently and kno wledgeably, and assuming the price is not affected by undue
stimulus. implicit in this definition is th e co nsummation of a sale as of a specified
date, and the passing of title from selle r to the buyer under conditions whereby:
a . the buye r and seller are typically motivate d ;
b. both parties are well informed or well advised, and acting in what th ey
consider th eir own best interests;
c. a reasonable time is allowed.for exposure in the open marke t;
d. payment is made in te rms of cash in U.S. dollars or in terms of financial
arrangements comparable th ereto;
e. and the price represents th e normal consideration for th e property sold
unaffected by special or creative financing or sales concessions granted
by anyone associated with the sale.
2 Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.43
Definitions [g].
18-02 50 P age -l -
31
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 Tenns & Definitions section presented in the Addendum for
additional definition s of significant terminology used in this report.
To estimate the current market value of the real estate subject to planned
restrictions on use.
The intended use of the assignment is for prospective acquisition/sale purposes. It
should not be relied upon for any other use s.
Ronald Hyde, Jr. (the C lient) and the City of Kenai
This is an appraisal of the real property. Any intangible and/or personal property
is specificall y excluded from this va luation.
Fee Simple
Appraisal Report
Prior to the 2014-20 I 5 edition of the Uniform Standards of Professional Appraisal
Practice (USPAP), USPAP specified two primary narrative reporting formats:
Summary or Self-Contained. Subsequent editions of USP AP replaced 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 ...
(i ii) s ummarize information s ufficient to identify the real estate involved in th e
appraisa l, including th e physical, legal, and economic property chara cteristics
relevant to the assignment ...
(vii) summarize th e scope of work used to d evelop the appraisal ...
(viii) s ummarize th e information analyzed, the apprais al m ethods and tec hniques
employed, and th e reasoning that s upports the analyses, opinions, and conclus ions;
exclusion of the sa les comparison approach, cost approach, or incom e approach must
be explained;
Comment: An Appraisal R epo rt must include sufficient information to indicate that
the appraiser complied with the requirements of Standard I. Th e amount of detail
required will vmy with th e significance of th e information to the appraisal. The
appraiser must provide s ufficient information to enable the client and intended users
to understand th e rationale for th e opinions and conclusions, including reconciliation
of th e data and approac hes, in accordance with Standards Rule 1-6. "
In essence, the Appraisal Report format is consistent with the Summary appraisal
format described in th e 2012-2013 and prior editions of USP AP under Standards Rule
2-2(b).
March 30, 2018
March 30 , 2018
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.1 1 1 I
32
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 require s the appraiser to develop and report a scope of work that
res ults 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 thi s 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 Jetter 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 infonnation to the
appraisal, within the context of the in tended 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, ev en numbered page at the end of a section.
The Client has requested that the property be appra ised 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 by the client and property owner. A partial li st of items provided
follows:
• Plat Map
• Deed Subject to Right of Entry (draft)
• Right of Firs t Refusal Agreement (draft)
The following infonnation wa s not a vailable to the appraiser:
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NHN Royal St
Market Analysis
Approaches to Value
•
•
•
Assignment Overview
Title Report
Preliminary Commitment for Title Insurance
Environmental study
Research on macro and micro economic conditions within the subject's market has
been conducted. Research on current market conditions within the subject's sector
of the real estate market has also been conducted. The Appraisal Institute
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 inferred by current and general market conditions (secondary data).
In fundamental analyses (Level C and D), general 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
assignment is based on inferred demand.
LAND VALUATION This approach was developed because it is necessary to develop a credible and
reliable estimate of market value for this property type or it has been reque sted by
the client.
COST APPROACH This approach was not developed because it is not typically 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 typically utilized by buyers and
COMPARISON sellers in this market for this type and age of property.
APPROACH
INCOME This approach wa s not developed because it is necessary to develop a credible 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 analysis performed as part of a
prior assignment, as well as new research performed s pecifically for this
assignment, and included but was not limited to the following:
I. The problem or nature of assignment was identified .
2. A scope of work was created that lead to credible results that are appropriate
for the appraisal problem, intended user and intended use.
3. lnfonnation necessary to complete the assignment was requested and
obtained from the client and property owner.
4 . An area, city and neighborhood analysis has been perfonned.
5. An analysis of the s ubject's physical and economic characteristics has been
perfonned.
6. Interviews have been performed with property representatives (owners,
planners, assessors, brokers, developers and other individuals with useful
knowledge and insight on the subject.
34
NHN Royal St Assignment Overview
7. Knowledgeable market participants have been interviewed on the market
conditions for properties similar 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 improvements has been determined.
10. A detailed examination 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 similar properties was
performed.
13. An analysis 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 used, and a reconciliation was perfonned to
arrive 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 subject's transaction history (sales, agreements of
sale, options, and listings) within the prior three years is required by USPAP and,
if applicable, is presented below.
The City 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 transaction, the two parties agreed to negotiate a sale of the subject
property as well . The Kenai Planning 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 disclosed to the appraiser by either
party. This appraisal report will reportedly be used in the negotiation process
Extraordinar} Assumptions, Limiting Conditions3
Extraordinary assumptions and extraordinary limiting conditions specific to this
3 These are presented in this Assignment Overview chapter because they are specific to this assignment and do not
apply to all assignments. However, the applicable general assumptions and limiting conditions, which are presented
in the Addenda to this report, do apply to all assignments and should not be viewed as les s relevan t, or carrying les s
weight , than those prese nted above si mpl y because of their location with the report. Nor should any assumption or
extraordinary assumption contained with the body of the rep ort be viewed as less relevan t or meaningful than tho se
presented above.
18-0250 • RELIANJ
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35
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.
1. 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.
Based 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
estim ate and it is recommended that a survey be conducted to determine the
exact areas that are impacted. For the purpo ses 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 Pennit was previously granted to the Client,
allowing the use/operation of the grass airstrip onsite. This was necessary
because an airstrip is a conditional use in the Rural Resi dential (RR) Zone. It
is an extraordinary assumption of this assignment that the permit will
continue to be renewed .
Hypothetical C onditions
Hypothetical conditions specific to this assignment are as follows. The reader is
advised that the use of these hypothetical conditions might have affected the
assignment results.
l. 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 Restrictions on Use, included in the
Addendum).
2. The sa le 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 va lue impact associated with the terms of this document is
excluded.
Co mpetency of Appraiser
18-0250
The appraiser has previously performed sim ilar assignments 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.
Page -6 -
36
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 va lue of the U.S.
Dollar, etc.), Alaska's economic cycles do not typically align with the rest of
the nation for several reasons. First , A laska 's location -although central to the
industrialized world by air -is remote relative to the rest of the U.S. Its
extreme lati tude promotes intense but short seasons of work. Its prolific natural
resource s are valuable, but its rugged terrain makes them difficult to extract and
bring to market. Lastly, its extreme 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 Reces sion
during what ended up being 21 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 have been based on the quantity and price of resources exported
(precious metals, timber, seafood, coal, and -most importantly -oil) which
lends to more extreme swings over longer periods of time. Today, the State's
economy is more diverse 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 , hospitality/tourism,
manufacturing/fishing, and transportation to name a few) and most of the
weight is s till placed on oil/gas.
Alaska is sti ll highly dependent on the production and price of oil, and while
production has steadily decreased from a high in the late 1980s, the price has
been volatile. Between 2013 and early 2014, oil showed stabi lity above
$95/barrel. Though the problem oflow production remained (and remains) a
longer-term concern, these oil prices provided bountiful revenue to Alaska at a
time when many other states were struggling with crippling budget deficits.
However , due primarily to a glut of new supply from the U.S. and some
decreases in global demand , prices began to s lide in mid-2014. As of January
2018, Alaskan crude stands at roughly $64 per barrel. As prices have remained
low, the state government has faced revenue shortfalls ofroughly $3 billion and
substantial budget-tightening (or additional reven ue sources) will presumably
follow in the near to mid -term . The State's substantial budget reserves from
2014 will not be able to offset revenue shortfalls much longer without budget
cuts. The State also ha s over $50 billion within the Permanent Fund , which -
while not le gal for lawmakers to spend without amending the State constitution
(requiring a 2;3rds majority vote) -does suggest a strong balance sheet. That
said, the State government had an annual average of 800 fewer full-time
positions in 2017 than in 2016. This is in comparison to the average o f 1,400
fewer positions in 2016 than in 2015. The pressure on the State 's budget at this
time is obvious, as reflected by recent downgrading of its credit rating by
Mood y's (Aa3), and the other two agencies keeping their ratings (Fitch-AA+,
Standard & Poor's-AA+) along with their assigning a "negative" outlook.
According to an article in the Anchorage Daily News, ADN , (formerly known
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37
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 20 I 7 legislative
session, we would likely 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 fiscal 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 discoveri ng an oil field that would yield
500 million to three billion barrels of oil. One bright spot, however, was the
recent discovery 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 state economy continues to benefit from a
confluence of strong production and stable prices for several other natural
re so urces (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 residents 4 . This sum made Alaska the third highest recipient
of per capita federal dollars for the year (behind Maryland and Virginia). The
level offederal spending in Alaska, per capita, is approximately 50% above the
national average. Meanwhile, job gains in the health care industry have been
consistent and strong for most of the last decade. According to the Alaska
Department of Labor, the health care industry added 1,8 00 jobs in 2017, and it
is expected to add another 700 jobs in 2018. Lastly, after down years in 2009
and 20 J 0, tourism leveled out and then experienced more noticeable
improvement in 20 I 2 through 2016. State economists expect that the
combination of a strengthening national economy and the addition of several
cruise ships to the Alaskan market will continue to provide a boost for this
important industry.
Historic employment changes, as well as the forecast for 2018 are presen ted in
the following chart:
4 http://www.pewtrus ts.org/-/medi a/assets/20 16/03 /federa l spending in the sta tes 200 52014 .pdf, accessed Jan-
2017
18-0250 Page -8 -
38
NHN Royal St
Tapering Job Losses for Alaska
PERCE NT CHANGE FROM PR I OR YEAR , 2008 TO 2018
0.2%
Area Data
-~·EJ 2015 20
--05%
-l .1 %
-1.99'
"Prelim inary .. Forec;ut
Source: A!DsJco Deportment a/ Labor an d Worlc/o rce Development, Rf'seordt and Analysis
.5ecricn
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 decreas ed by 1.1 %. While some
gains were s een in the health care and local government sectors, they were
relatively minor and more than offset by lo sses 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 price s and their fallout -but not nearly a s severe as the prior
years. Health care and local government are the o nly two sectors expected to
gain jobs. In summary, the Alaskan economy is sufferin g from the pressure of
low oil prices and state government budget issues, and this is expected to
continue, wi th economists5 predicting approximately three more years of
recession followed by a leveling off at the "new normal." While the state as a
whole remains relati vely healthy at this time, there is clearly nervousness
stemming from future uncertainty regarding the depth and duration of the
current e nv ironment.
5 Presentation to Alaska Senate Labor and Commerce Committee on January 18-19, 2017. Presenters inc lud ed
Mouhcin e Guettabi and Ralph Townsend (University of Ala ska Anchorage Institute of Social and Economi c
Re search), and Jonathan King (Northern Economi cs).
18-0250 Page -9 -
39
N HN Royal St
Local Area Data
Overview
Employment Data
18-0250
Area D ata
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 unemployment 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
~I OYIS!i' SHY l [n
Page -10 -
40
NHN Roy al S t
Kenai
Soldotna
Kalifornsky Beach
(K-Beach) Road Area
18 -0250
15 0
II )} 0 .. ..
Ir .. c 90 II
E ...
D a. 6 0
E .. c
;) 3 0
00
~ ... ...
0 0
N N
N ....
0
N
!'.!
0
N
Year
!
0
N
I <> Kenai Pcnonsu l~ Borough <> Alasl<J
"' ...
0
N
Area Data
-
"' 8
N
The city of Kenai is s itu ated 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 ,4 12 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 southea st of Kenai. As of 2015,
Soldotna's population stood at 4,409, roughly 8% of the Borough's overall
population. The 2015 population figure represented a gain of 246 over the 2010
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 Hospital, Kenai
Peninsula Borough and School District, Fred Meyer retail store, Safeway store,
and Kenai Peninsula College.
Kalifornsky Beach Road is a major arterial that extends from the Sterling
Highway (Mile 96) at the so utheast, in Soldotna, to its intersect ion with Bridge
Access Road at the northwest. The Kenai city center is northwest of the Bridge
Access Road intersection about three miles. Kalifornsky Beach Road provides
alternate access (from the Kenai Spur Highway) between Soldotna and Kenai.
In addition, from the Bridge Access Road intersection, Kalifomsky Beach Road
continues an additional 16+/-miles west and then south along the Cook Inlet
bluff to the southern intersection with the Sterling Highway (Mi le I 09; 13 miles
south of the Soldotna Central Business District).
Some of the Kalifomsky Beach Road area lies wi thin the Kenai and Soldotna
city limits, but the majority lies outside of any inc orporated area.
Page -11 -RELIANT
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41
NHN Roy al 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 HI' S!i1 1[!S
Page -12 -
42
NHN Royal St
Neighborhood Data
Name
Location & Access
Area Data
Kalifornsky Beach (K-Beach) Road Area -West
The immediate neighborhood is located south (across the Kenai River) of the
Kenai Central Bus iness District (CBD). Access from the CBD is via Bridge
Access Road, Kalifornsky Beach Road , Cannery and Old Cannery Roads . Royal
Street, on which the s ubj ect fronts , is north of Kalifornsky Beach Road about 1.6
miles.
The neighborhood location and access/linkages are shown on the Immediate
Neighborhood Map that follows. Neighborhood access is con sidered typical of
the market.
Character & Land The neighborhood character is demonstrated by the neighborhood photos that
Uses follow . These photos were taken in close proximity to the subject an d are
representative of the character of the neighborhood. As with most of Ala ska and
the lo cal market, neighborhood land uses are mixed.
Surrounding Uses Surrounding uses include Hilcorp, Inlet Fish Producers, The Cannery Lodge, and
PRL Logistics to the east/northeast. High-end (mostly custom) residential uses
predominate to the south . Cook Inlet and its associated tidal flats border the
property to the west/northwest.
Typical Age of 1980s throu gh 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.
Mos t of the new construction has been for single-family residential 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 of
developed land and demand trends , neighborhood trend s shoul d be towards
moderately escalating land values and prices over time.
18-0250 RELIANT
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UVI Sfl' Sf IV l (f S
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43
NHN Royal St
Immediate Neighborhood Map
18 -0250
;;w> ••
I vJo (t
Area Data
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1 11 1!11' S£111C!5
Page -14 -
44
NHN Roya l St Area D a ta
Immediate Neighborhood Photographs
Residence (adjacent) Hilcorp Vacant Lot (typical)
Residence (typical) Inlet Fish Producers The Cannery Lodge
18-0250 P age -15 -RELIANT
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45
NHN Royal St M a rket A n alysis
Market Analysis
\Vaterfront Acreage Tracts
Classification
Overview of Market
Survey
Market Supply
Market Demand
18-0250
An extensive search was made to try to locate sa les 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 listings (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. Given the uniqueness of the s ubject property, then, and the
difficulty in fine-tuning the market data , this m arket 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 record s,
newspaper articles and the Multipl e Listing Service (MLS). The available 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 with 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 sale through MLS in the sa me
areas turned up a total of 23 properties. Two of those are former gravel pits, both
grandfathered as materials sites.
A 10-Y ear Comparison Report of land sales, again, for those same areas (through
MLS) follows:
Page -17 -RELIANT -----uc
ICYI S l l' SH Vl tf!
46
NHN Roya l St
Equilibrium Status
Near Term Market
Outlook
Mar ket Ana lys is
10-year Comparison Report
Property Type: Land
Areas 305 -Kenai,310-Ka lifornsky Beac h,320 -Kas ilof.330 -Soldotn a,335 -Ridgeway
Construction Type : Existing and New Cons truction
Year #Sold Avg. list Price % List P ri ce Avg . Sold Price % Sold Price Av g .DO M Change C hange
2008 125 $65 ,883 NA 556,968 NA 277
2009 53 $36 .000 -45 .36% $32.32 1 -43 26% 213
20 10 75 $57 .406 59.46 % $47,177 45 .96% 290
20 11 84 $35.354 -38 41% $30 ,020 -36 37% 283
20 12 83 $73 ,022 106 _55% 562 ,820 109 .26% 302
20 13 81 $4 7,718 -34 .65% $42 ,862 -31 77% 32 1
20 14 124 $84 ,226 76 .51 % $61,783 44.14% 272
20 15 117 $56 .676 -32 71% $49,799 -19 40% 336
20 16 105 $58 ,523 3.26 % 553 ,211 6.85 % 305
2017 1 30 $39 79 2 -32 01% $34 ,992 -34 24% 298
This report is, of cours e, only for thos e sales occurring through MLS . It does not
consider private transactions . Further, it doesn 't differentiate between large
acreage tracts versus smaller subdivision lots or lots with water frontage versus
those without. One or two high-dollar sales can really skew the averages.
Nonethele ss, it is po ssible 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 exp ected in the ne ar term.
Impact of Low Oil Prices
Current Conditions
18-02 50
A s discussed in the Area Data chapter, the price of crude oil has dropped to
roughly half of what it wa s 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
prev ious high price le vel s in the near to mid-term. This is ob viously of concern in
Alaska, as the vas t majority of state governmen t revenue stems from oil.
Howev er, available sale transactions in the local market have not yet demonstrated
a change in prices. There is nervous nes s a s low oil prices drag on and the State
debates spending cuts (and/or revenue increas es via new taxes), but the
trans actional data does not indicate that real estate fundamental s have been
negatively impacted thus far. The number of transactions available for anal ysis
remain s low in mos t cas es, but this is not a departure from historic patterns in thi s
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 prov ide meaningful insight into market expecta tion s .
Pa ge -18 -RELIANT -----uc
llVISCI' SEH l[fS
47
NHN Royal St Market Analysis
While consideration is given to expected future trends , weight is necessarily (and
appropriately) placed on actual , documented market activity to date. Efforts have
been made to obtain and analyze the most recent sale transactions available in the
subject's market segment. It is the appraiser's opinion the available data fairly
represents current market and economic conditions.
Subject's Competitive Position
Competitive Strengths
I Downward Risk
Influences
Competitive
Weaknesses I Upward
Risk Influences
Impact of Market
Conditions on Subject
18-0250
•
•
•
•
•
Large size (26.25 acres) .
Topography (generally level, with easy access to the beach) .
Substantial amount of water frontage .
Excellent view amenity .
Availability of electric and natural gas .
Note that, although there is a grass airstrip onsite, 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 use dipnet
fishery in July.
Planned restrictions on use .
Given the subject's strengths and weaknesses and, in particular, the planned
restrictions on use, it is expected to capture less than its proportionate market
share.
Page -19 -RELIANT -----uc
l!YI H R' 5£111[!5
48
NHN Royal St Description of Site
Description of Site
Address
Geo Coordinates
Physical Location
Assessor,s Tax Parcel
Number6
Abbreviated Legal
Description
Gross Site Area
NHN Royal St
Kenai, Alaska 99611
Latitude: 60 .5 329, Longitude: -151.27033
The subject is located at the end of Royal Street.
049-100-52
Trac t C Dragseth Subdivision, 201 7 Addition, according to th e official
plat th er eof, filed under Plat Number 2017-60, Records of th e Ke nai
Recording District, Third Judicial District, State of Alaska. (Per
Department of Natural Resources Records)
Square Feet:
Acres:
1,143,232
26.25
SOURCE Plat Map
Shape
Street Frontage
Access
Exposure
The site is irregularly shaped.
The subject has a pproximately 263' of frontage on Royal Street.
Access to and from the subject is considered average relative to competing
properties.
Exposure of the subject is considered average relative to competing properties.
Adjacent Land Uses
Topography
Water Frontage
Views
Soil Conditions
NORTH Vacant wetlands/tidelands at mouth of Kenai River
SOUTH Single-family residential
EAST Cook Inlet
WEST Industria l
The s ubject has predominantly level topography, with a s light slope down along
the waterfront.
3,048 ' on Cook Inlet
The s ubject offers excellent views of Cook Inlet and the A leutian Range.
The USDA Natural Re so urce s Conservation Service 's online Web Soil Survey
6 Per Tax As sessor Records.
18-0250 Page -21 -RELIANT
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IC VI S!i' SliYl(fS
49
NHN Royal St
Wetlands
Description of Site
identifies soils in the area as a mix of C lunie Peat, Soldotna Silt Loam and Typic
Cryaquents. Clunie Peat consists of peat over silty clay loam formed on tidal flats.
These soi ls are very poorly drained, with a very high runoff. Soldotna Silt Loam
consists of ash-influenced loess over sandy and gravelly drift formed on o u twash
pl ains an d moraines on till plains. These soils are very deep and well drained.
Runoff varies from low to high. Typic Cryaquents consist of s li ghtly deco mposed
plant material over s ilt loam and very gravelly sand formed on deltas/estuaries.
Like C lunie Peat, these soil s are very poorly d ra in ed, with a very high runoff.
Onsite sampling would need to b e 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 this report.
Wetland s are areas that are periodically or p ermanently inundated by surface or
ground water and support vegetation adapted for li fe in saturated soi l. Wetland s
include swamp s, marshes, b ogs and similar areas. Federal law requires that there
be no net lo ss o f wetlands and their d evelopment requires a permit b e obtained
from the Army Corp of Engineers (ACOE). Note that wetlands in many areas of
the State are not delineated or assessed an d the ACOE would need to be consulted
on th e relevant pennit process.
In the absence of a wetlands d elineation from the ACOE, the appraiser considered
information included on the sub di vis ion plat map, on the previously disc ussed
Web Soils Survey a nd phys ical clues (e.g. vegetation present, surface wa ter, etc.)
during th e onsite inspection in order to estimate the qua nti ty of wetlands onsite.
Based on the information gathered , th e s ite area im pacted by low wet areas is
estimated at just over 22 acres (85% of the property).
Hazardous Conditions A complete environmental site assessment was not available to the appraiser.
There are no known or disclo sed environmental issues or hazardous conditions
impacting th e subject. The detectio n of haza rdous materi al s or conditions is
beyon d the scope of ex pertise and competency of an apprais er, however, and it is
recommended that any concerns relating to h azardou s condition s be addressed by
a qual ified environmental specialist. Furthermore, it is an assumption of thi s
report that there are no hazardous conditions present at th e s ubject.
Flood Zone The City of Kenai does not participate in the National Flood Insurance Program,
nor doe s it admini ster fl oo dpl ai n management programs .
Utilities Although there is a small grass airstrip onsite, the su bject is essentially vaca nt
land. Electri c a nd natural gas are avai lable to adj acent parcels. Public water and
sewer are not availab le; typical of the area.
18-0250 RELIANT -----uc
UVI S!I • SE l !l tl S
Page -22 -
50
NHN Royal S t Description of Site
Aerial Map
18-0250 RELIANT
-------LLC
l lV l !lll SH!I C!S
Page -23 -
51
NHN R o yal St
Plat Map
-·
-. .
I•
-,,
-· -
T'l.4('1 0.
f
l
I 1-w;r i:,
I.·
..
18 -0250
.
•' . I
-·
... -..·
" ~t.·:""
:::-=:.:...
.
U;.. ... t".."!I -"· c=:_:.r.-
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a
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RELIANT -------uc I GV I Ed ' H lt l CH
Description of Site
11'lH.1Acl':' J
f:)c ,:., ,, n Si t 'CA\ r1n•. "'-~ I l A~, ... "C";.
Page -24 -
52
NHN Royal St Description of Site
Zoning The subject has split zoning. According to the City Manager roughly 29% of the
property (at the south) is zoned Heavy Industrial (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.
HEAVY INDUSTRIAL Intent: The IH Zone is established to allow for a broad range of indu strial and
(IH), CITY OF KENAI 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 sales, 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 ins titution s, parks and recreation, dormitories I boarding houses I
essential services, fam1ing I general agriculture, gunsmithing, printing, taxidenny,
assemblies (large), parking (off street), personal services, radio I tv transmitters 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, hotel s I motels, lodge, re staurants , 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 rentals, 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 s urface extraction of natural resource s.
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 shaII be located closer than twenty-five (25') to
the adjoining right-of-way of any collector street or main thoroughfare.
Any open storage visi ble from a collector street or main thoroughfare
shall be enclosed in an eight-foot (8') high fence of good appearance
acceptable to the Commission.
(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 sight-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 re sidential environment.
The specific intent in establishing thi s zone is to establish residential structures to
an ex tent 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 residential character of the environment and
18-0250 RELIANT
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IDYI S!I' Hii i [[!
53
NHN Royal St
Easements, Covenants,
Encroachments &
Restrictions
18 -0250
Description of Site
generate traffic in predominantly res idential areas.
Permitted Uses: One-family to four-family dwellings, churches (provided that no
part of any building is located nearer than 30' to any adjoining street or property
line), essential services, fanning/general agriculture, parking (off street), and
radio/tv transmitters/cell sites.
Conditional Uses: All other uses are considered conditional use s, except gas
manufacturer/storage, which is prohibited.
Prohibited Uses: Gas manufacturer/storage.
Basic Design Standards:
Minimum Lot Size:
Minimum Width:
20,000 sq ft (one-to four-family dwellings)
90'
Front Setback: 25'
Side Setback: 15'
Rear Setback: 20'
Maximum Height: 35'
Maximum Site Coverage: 30%
The subject's zoning is not unduly restrictive, permits a wide variety of uses, and
does not appear to materially limit the economic potential or functional utility of
the property.
A title report was not available/provided to the appraiser. The subdivision plat
map identifies normal easements along the property boundaries for streets and
utilitie s. It also identifies 50' wide section line easements along the property's
north and east boundaries. Section line easements are considered typical for rural
acreage lots. There can be value considerations. In thi s case, however, the section
lines easements are located in areas identified as predominantly wetlands, with
diminished utility anyway. Finally, the map identifies a public access easement
along the waterfront. The easement is 50' from mean high water mark. This
easement insures public access along the waterfront is maintained; especially for
the p opular personal use dipnet fishery in July. Access easements are not
uncommon in this market, especially where access to waterways is concerned .
The property is being appraised based on the hypothetical condition that its use is
restricted to aircraft landing, loading and departing. The Covenants and
Restrictions on Use, incorporated into the draft Deed Subject to Right of Entry
(copy included in the Addendum) stipulate that:
( l ) The Property shall be used (for) 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
Page -26 -RELIANT
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IOYl itl ' Si HI CH
54
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
-----lie
HYIS(i' SHYICES
Page -27 -
55
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 mu st be assessed at 100 % of market value. The
millage rate (on which property taxe s are based) is determined annually based on
spending and assessment level s. Millage rates vary constantly and are influenced
by sta te law and services provided in each indivi dual di strict. The assessed value
of all properties located within a district is divided by a particular year's budget
requirements to arrive at a millage rate. Thus, actual spending determines 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 us efu l for the allocation of the total tax liabi lity among
property owners, it is not always a reliable indicato r of the market value of a
specific property. As such, market participants do not generall y use assessed
value to determine market value. Market participants do ca refully analyze the
impact of current and projected real estate taxes on cash flow and market value.
While Alaska is a non-disclosure state and the assessor does not have access to
sale information, they do have confirmation 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 disclosure of any subject sale. Because of these
factors, irrespective of actual hi s toric assessment, most market participants input
real estate taxes on a stabilized basis, where projected assessment correlates with
the estimated market va lue and is reflective of assessment in a post-sale
environment.
The KPB Assessing Department's online Public Info Parcel Lookup shows the
preliminary 2018 tax assessed value ($207 ,900) fo r the subject as a City-
owned 26.25 -acre parce l, not impacted by any deed restrictions. The appraiser
contacted the Assessing Depa rtment 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 current land modeling, at the
2017 Mill Rate for Tax Authority Group 30 (Kenai), the estimated assessed
value is as follows:
Property Assessment & Tax Summary Exhibit
PROPERTY ASSESSMENT & TAXES
Assessment -Estimated
Tax Parcel Number Land Jmerovements Total Mi ll Rate Taxes
Year 2018
049-100-52 $41,580 ~ $41 ,580 $8 .86 $368
Total $4 1,580 $0 $41 ,580 $8.86 $368
18-025 0 RELIANT Page -29 -
56
NHN Royal St
Subject Photographs
Looking west along
Royal Street, with the
subject property at right.
Note the view of Cook
Inlet and the AJeutian
Range, beyond.
Grass airstrip as seen
from neighboring parcel
at the south .
18-0250
Subject Photographs
Page -31 -RELIANT ----uc
l(!l !(I' S!IY ICf!
57
NHN Royal St
Looking south a long the
beach and 50' public
access easement a long
the property 's west
boundary. The gras s
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 distance.
18-0250 RELIANT
UC
ICV I S I' SllV l [fS
Subject Photographs
Page -32 -
58
NHN Roya l St
Look ing e as t over the
wetlands .
Looking south from th e
s am e loc ati on. The
airstrip is seen at ri ght.
18-0250
Subject Photographs
Page -33 -RELIANT -----uc
IDVI HR' Sl0 1[( ~
59
NHN Royal St
Close up of d unes.
Area at south en d of
airstri p (east side) to b e
developed as a s tagin g
ar ea.
18 -0250
Subject Photographs
Page -34 -RELIANT
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H Vt Hl' Sfli t [f!
60
NHN Royal St High est & Best Use
Highest & Best Use
Definition & Methodology
Scope of Highest &
Best Use
As-ls -Vacant
"Highest & Best Use " is defined as:
"Th e reasonably probable use of property that results in th e high es t
va lu e. The four criteria that the highest and best use must m ee t are
legal permissibility, physical possibility, financial feas ibility, 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 of
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 beyo nd the scope
of the current assignment. Rather, the analysis is meant to provide a general
indication of highest and best use based on a qualitative review of the available
evidence. Furthennore, unless otherwise indicated, the assignment is not a
feasibility study 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 permissible on a site. As
discussed, the appraisal is p repared subject to planned re strictions 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 an d current market
conditions. All uses that are expected to produce a positive return are re garded as
financially feasible.
Maximally Productive When developm ent options are available, a detennination must be made as to
which feasible use is the maximally profitable use.
Within this market, the presence of developer's margin is highl y specific to the
individual project. Nonetheless, it is noted that developers ' m arg in s have b een
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 need s
were not met by the exi sting inventory and there has been less speculative
de velopment.
As mentioned , restrictions on use are being reco rded in conjunction with the
7 Source: The Dictionary of Real Estate Appraisa l, Sixth Edition . Chi cago: Appraisal Institute, 2015.
18 -0250 Page -35 -RELIANT
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1!1 1 51 1' HI Vt!H
61
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 th e most demand in the area. A combination of the Heavy
Indu strial (lli) zon ing at the south end of the tract and the planned restrictions on
use make development w ith a residential use or uses impermissible. 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 possib le 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 h o lding it vacant and available for future sa le or
development. B y holding the site vacant, the ownership costs would be reduced to
real property taxes during the holding period, with the return 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 res idential 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 restrictions on use, 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
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I DVI S!i' S£U 1£ES
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62
NHN Royal St Land Val uation
Land Valuation
Introduction
Methodology
Units of Comparison
C omparable Data
Sources of Data
Availability of Data
Presentation of Data
18-0250
Land is customarily valued as though unimproved and available for development
to the use that would justify the highest price and the greatest net re turn . Sales of
unimproved land most s imilar 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, a va ilable access,
availab le utilities, minimal s ite wo rk completed, generally level and at grade, w ith
no site improvements (paving, landscaping, li ghting, etc.).
Units o f comparison, components into which properties may be divided for
purposes of comparison, are derived from comparable sales data. Brokers,
developers and other market participants indicated a common unit o f 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 transactions were obtained from various sou rce s inc luding web
s ites (e .g. A laska Multiple Listing Service, Craigs li st, etc.), brokers, assessors,
a ppraisers, other individuals and the Reliant, LLC internal databa se.
The availability of comparable data is a function of the subject's location, property
type, property size, marke t size and market activity. There are an adequate
numb er of properties w ith similar physical and economic characteristics to the
subject, but these are traded infrequently. After going back 10 -15 years, market
research identified s ix sales involving properties that bracket the subj ect and
provide a good basis for comparison. An acreage tra c t j ust east of the subject that
is being offered for sale to the C li ent is also anal yzed .
A snapsh ot of th ese transactions is presented on th e following summary table. A
map th en highlights the location of the com parables relative to the subject.
Descriptions of the comparables follow the map.
Page -37 -RELIANT
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IEY l !li' Sli1 1lE!
63
_____________________________________________________________________________________
Sponsored by: Council Member Molloy
CITY OF KENAI
RESOLUTION NO. 2018-21
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING POLICY
2016-01, PROCEDURES FOR COMMISSIONS, COMMITTEES AND COUNCIL ON AGING –
TO CLARIFY THE POLICY ON COUNCIL’S REFERRAL OF ITEMS FOR THE AGENDAS OF
THE CITY’S COMMISSIONS, COMMITTEES AND THE COUNCIL ON AGING PRIOR TO ANY
FINAL COUNCIL ACTION.
WHEREAS, Policy 2016-01, Procedures for Commissions, Committees and Council On
Aging currently provides that the Council as a body may refer items to be placed on the agenda
of a commission, committee or the Council On Aging; and,
WHEREAS, pursuant to City code, certain items for legislative actions require a commission to
consider and take action on those items prior to final Council action, such as changes to the
zoning code and zoning map; and,
WHEREAS, once an ordinance is introduced, the ordinance belongs to the Council as a body,
and not to the ordinance’s sponsor(s); and,
WHEREAS, current Policy 2016-01 is ambiguous as to whether a referral vote by Council on a
motion is first required, or whether such ordinances may be referred automatically to the
appropriate body upon introduction without a referral motion, through the use of the consent
agenda; and,
WHEREAS, it is in the best interest of the City to clarify Policy 2016-01 on Council referrals of
items to commissions, committees and the Council on Aging, by providing for automatic referral
to the appropriate body’s agenda upon introduction of items which a body is required to
consider and take action on prior to final Council action, and to allow the Council the discretion
to refer any other item.
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 passage.
64
Resolution No. 2018-21
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this * day of *, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
City Clerk
65
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
66
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 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.
b. Summary minutes 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 shall be electronically recorded and with the
exception of Planning & Zoning Commission, shall be kept for two years.
d. Planning & Zoning Commission meeting 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.
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.
67
Kenai City Council
Policy No. 2016-01 (Amended)
Page 3 of 4
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.
Items requiring Committee, Commission or Council on Aging action under
applicable municipal code prior to final action by the Council, as distinguished from
advisory recommendations, will be referred to the respective body prior to any final
Council action, and upon introduction of an ordinance. The City Council, by motion,
may refer any other 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
delegation of authority by the Council for a member(s) to represent the Council.
68
Kenai City Council
Policy No. 2016-01 (Amended)
Page 4 of 4
Effective Date: Approved by Resolution No. 2016-03
Amended by Resolution No. 2017-24
Amended by Resolution No. 2018-XX
BRIAN GABRIEL SR., MAYOR
ATTEST:
Jamie Heinz, City Clerk
69
"Vt1/a!Je with a Past, City with a Future"
210 Fidalgo Avenue , Kenai , Alaska 99611-7794
Telephone: 907-283-7535 I FAX : 907-283-3014
www.kenai.city
MEMORANDUM
TO:
FROM:
Mayor Gabriel, Council Members,
Student Representative, Administration
Council Member M ollo y ~
May 7, 2018 DATE:
SUBJECT: Resolution No. 2018-21, Amending Policy 2016-01, To Clarify the
Policy on Council's Referral of Items for the A gendas of the City's Commissions,
Committees, And/Or Council on Aging Prior to Any F inal Council Action
The purpose of Resolution No. 2018-21 is to clarify ambiguity in the current policy for
Council referral s to agendas of advisory bodies under the amendment adopted in 201 7.
The amendment to Section 6. Basic Meeting Information, paragraph (c), added the
fo ll owing sentence:
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 .
However, pursuant to City code, certain items for l egislative actions require a
commission t o consi der and take action on t hose items prior to fi n al Council action, such
as changes to the zonin g code and zoning m ap (P lanning & Zoning Commi ss ion). Not
only does KMC 14 .20.270 require the Planning and Zoning Comm ission to hold a public
hearing on map changes, but also the City Attorney has said that the A laska Supreme
Court has previously invalidated changes made by a Coun cil without Planning and
Zonin g Commission input. 1
Previous business practice has been that, upon in troduction, item s for legislative actions
that require a commission to take action before final Council action were automat ically
referred by Administration to the agenda of the appropriate body. But once an ordinance
is introduced, the ordinance belongs to the Council as a body , and not to the ord inance's
sponsor(s), and not to Administration. The current policy is ambiguous as to whether or
not a Council vote on a referral motion is now first requ ired , so it is ambiguous whether
Administration can now automatically refer an ordinance to the ap propriate body upon
introduction by Council on consent agenda with out a Council vote to refer.
1 Griswold v. C ity of Hom er , 186 P .3d 588 (Al aska 2008). 70
T he p roposed cl arificat ion is :
Items requi r ing Committee. Commission or Counci l on Aging action under
appl icable mun icipal code prior to fina l act i on by the Council , as
distinguished from adv isory recommendations . will be refe r red to the
respective body prio r to any final Council action. and upon introducti on of
an o rd i nance . The City Counci l, by motion , may refer any other item to be
placed on an agenda seeking a r ecommendation from the respective
Comm ittee , Commission , or Coun ci l on Aging .
2
The proposed amen dments t o Pol icy 2016-0 1 co n tinue to leave to t h e Cou n cil 's
discretion as a b ody w h ether to refer any other matters (involving only advi s ory
recommendations) to th e commissions , comm ittees and Council on Aging.
A li st of duties of th e City 's commission, committees and the Counci l on Agin g ,
competed by t h e City Attorney 's office, is attached for you r reference.
Council 's support of th is reso lu t ion and the proposed amended policy is respectfully
request ed.
71
Resolution 2018-21 Attachment 2
TO: Mayor Brian Gabriel, Council Members,
Student Representative, Administration
FROM: Bob Molloy, Council Member
DATE: May 7, 2018
SUBJECT: Resolution No. 2018-21, Amending Policy 2016-01
______________________________________________________________________
See below city code citations describing the powers and duties for the various committees,
commissions and Council on Aging for your review.
List of Board, Commission and Committee Duties
General Duties for All Boards, Commissions, and Committees:
KMC 1.90.020
(a) Act in an advisory capacity to Council
(b) If income stated within City budget, work with City Manager to establish expenses
projected for the year.
Landscaping/ Site Plan Review Board:
KMC 11.05.040
Landscaping/ Site Plan Review Board makes decisions on applications for construction or
operation of terminal or transportation uses within City harbor or on lands contiguous to harbor.
Landscaping/ Site Plan Review Board’s decision are binding “unless appealed by Council.”
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Resolution No. 2018-21
Harbor Commission:
KMC 11.05.040
Harbor Commission reviews plans for construction of terminal or transportation facilities
on lands in or contiguous to harbor to determine, along with Landscaping/ Site Plan Review Board,
whether type or location of proposed construction is in “conflict with general City plan” and if so,
“whether such proposed construction is in keeping with the objective of the general plan.”
KMC 11.10.10
1. Develop, adopt, alter and revise master plan for harbor development subject to approval
by city Council.
2. Submit annually to City Manager and Council a recommended three year capital
improvement plan.
3. Make investigation regarding any matter related to City harbor facilities, tidelands or
submerged lands. Make recommendations to Council relative to care, control and
development of tide and submerged lands.
4. “Review all City leases of City-owned tide, submerged and lands or navigable waters
within the City” and make recommendations to Council regarding proposed improvements.
5. Make and prepare reports and plans for approval by the City Council.
6. Coordinate public efforts to effectuate approved plans.
7. Advise Council on selection of Harbor Director.
KMC 11.15.090
Review applications for rights to tidelines and submerged lands conveyed to City by State
in 1977.
KMC 11.15.100
Review plats regarding lands conveyed to City by State in 1977, and designate an
engineer to review the plats and provide tentative approval or disapproval.
KMC 11.15.130
Approve final plats for lands conveyed to City by State in 1977
KMC 11.15.200
Approve applications for leases/ claims for lands conveyed to City by State in 1977 and
hold public hearings on the same.
KMC 11.15.230
Sit as quasi-judicial body to hear disputes over claims to lands conveyed to City by State
in 1977.
KMC 11.20.040
Along with Planning Commission classify for leasing all tidelands.
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Resolution No. 2018-21
KMC 11.20.070
Review all lease applications for tidelands and make recommendation to Council on
leases.
KMC 11.20.620
Require certain insurance for lessee’s regarding harbor related activities.
KMC 11.20.720
Review use rates charged by lessee’s.
Planning and Zoning Commission:
KMC 11.20.040
Along with Harbor Commission classify for leasing all tidelands.
KMC 11.20.070
Review all applications for tideland lease along with Harbor Commission.
KMC 11.20.140
Review changes use changes, and renewals of tidelands and make recommendation to
Council.
KMC 11.20.770
Review disposition of City owned tidelands and make recommendations to Council.
KMC 14.05.010
1. Review and act upon requests for variance permits, conditional use permits, planned unit
residential development permits, and other matters requiring consideration under the
Kenai Zoning Code.
2. Interpret the provisions of the Kenai Zoning Code and make determinations when
requested by the Administrative Official.
3. Review the City of Kenai Comprehensive Plan on an annual basis and conduct a minimum
of one public hearing. Said recommendations shall be forwarded to the Council for
consideration.
4. Promote public interest and understanding of comprehensive planning, platting, zoning,
land management, and other issues relating to community planning and development.
5. Proposed plans for the rehabilitation or redevelopment of any area or district within the
City.
6. Perform historic preservation reviews and duties as set forth in KMC 14.20.105.
Advise Council on:
1. Kenai Zoning Code and Official City of Kenai Zoning Map amendments.
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Page 4 of 7
Resolution No. 2018-21
2. City and airport land lease or sale petitions.
3. Capital Improvements Programming. The Commission shall submit annually to the
Council a list of recommended capital improvements which, in the opinion of the
Commission, are necessary and desirable to be constructed during the forthcoming three
(3) year period. Such list shall be arranged in order of preference, with recommendations
as to which projects shall be constructed in which year.
Act in an advisory capacity to the Kenai Peninsula Borough Planning Commission regarding the
following matters:
Subdivision plat proposals.
1. Right-of-way and easement vacation petitions.
2. City of Kenai Comprehensive Plan amendments.
KMC 14.10.010
Review preliminary plats. Appeal of Planning Commission decision can be made to
Council pursuant to 14.10.060.
KMC 14.10.070 and .080
Review subdivisions and make exceptions and require conditions for approval.
KMC 14.10.090
Recommend variations and exceptions to council on subdivision lot size/shape
requirements.
KMC 14.10.110
Council cannot change or amend Chapter 14.10 until study, report and recommendation
by Commission.
KMC 14.15.110 and .140
Make recommendations to Council regarding street names.
KMC 14.20.050
Make decisions regarding non-conforming lots, structures and uses.
KMC 14.20.105, .110 and .130
Allow variance s within TSH, CC and IL zoning districts. Review and Make
recommendations on historic buildings.
KMC 14.20.150
Determine conditional use permits.
KMC 14.20.154
Issue Surface extraction of natural resource permits.
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Resolution No. 2018-21
KMC 14.20.160, .161. and 170
Condition development of townhouses, zero lot line development and planned unit
residential development.
KMC 14.20.180, .185 and 230
Issue variance permits, encroachment permits and home occupation permits.
KMC 14.20.270
Hold public hearings and make recommendations to Council on Zoning Code and Map
amendments.
KMC Chapter 21.10
Make recommendations to Council regarding leasing of airport reserve lands.
KMC 21.15.060
Make recommendations to Council on disposition of airport lands prior to Council action.
KMC 21.15.070
Make recommendations to Council on lease of airport lands.
KMC 22.05.040
Make recommendations to Council on disposition of general fund lands prior to Council
action.
KMC 21.15.045
Make recommendations to Council on lease of general fund lands.
Parks and Recreation Commission:
KMC 19.05.020
(a) Develop, adopt, alter, or revise subject to approval by the City Council, a master plan
for the physical development of recreation facilities for the City. Such master plan with
accompanying maps, plats, charts, descriptive, and explanatory matter, shall show the
Commission’s recommendations for the development of the City’s recreation facility may
include, among other things:
(1) Development of the type, location, and sequence of all public recreation facilities;
and
(2) The relocation, removal, extension, or change of use of existing recreation
facilities.
(b) Submit annually to the City Manager and Council, not less than ninety (90) days prior
to the beginning of the budget year, a list of recommended capital improvements, which in
the opinion of the Commission, are necessary or desirable to be constructed during the 76
Page 6 of 7
Resolution No. 2018-21
forthcoming three (3) year period. Such list shall be arranged in order of preference, with
recommendations as to which projects shall be constructed in which year.
(c) Make investigations regarding any matter related to City recreation.
(d) Make and prepare reports and plans for approval by the City Council.
(e) Shall act in advisory capacity in the selection of a Director of Parks and Recreation.
KMC 24.15.010
Assist City Clerk and Parks and Recreation Director in establishment of cemetery
regulations subject to approval by Council.
Airport Commission:
KMC 21.20.010
(a) Develop, adopt, alter or revise, subject to approval by the City Council, a master plan
for the airport development. This may include:
(1) Development of type, location and sequence of all airport terminal facilities;
(2) Development and use of all airport aeronautical lands.
(b) Observe, oversee and guide in an advisory capacity, any matters relating to use of
airport runways, airport terminal, and airport aeronautical lands.
(c) Act in an advisory capacity to the Council and the Airport Manager.
(d) Make recommendations to the City Manager on the airport budget.
Beautification Committee:
Beautification Committee is a subcommittee of the Parks and Recreation Commission
specifically assigned the task of landscaping and gardening throughout the heart of the
City. The committee meets to determine the course of action for the season; jobs are
assigned and work is completed throughout the summer. Usually a tour of the gardens
happens at the end of the summer.
Council on Aging:
The Mission of the Council on Aging is to advise the Mayor, City Council, Director, and the
City of Kenai of the needs of the elderly in the area, support the programs which enable the
continued independence of senior citizens and serve as an advisory committee. Duties
include advising the Director of Senior Citizen Programs on matters dealing with the budgets
for senior programs and programs operated at the Senior Center.
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Page 7 of 7
Resolution No. 2018-21
Mini-Grant Steering Committee:
The Mini-Grant Steering Committee was created by former Mayor Porter as a way for
residents to help fund projects that would have a positive long lasting effect on their
neighborhoods, improving the quality of life for all residents. Applications are received and
reviewed by the committee throughout the year; grants of up to $500 are awarded.
Precinct Board:
KMC 6.05.040
Administer elections in precinct.
Personnel Board:
KMC 23.25.030
Hear personnel grievances.
78
KENAI CITY COUNCIL – REGULAR MEETING
MAY 2, 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 May 2, 2018, in City Hall Council
Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at approximately 6:00 p.m.
1. Pledge of Allegiance
Mayor Gabriel led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Brian Gabriel, Mayor Robert Molloy
Henry Knackstedt Tim Navarre
Jim Glendening Mike Boyle
Glenese Pettey (absent)
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 packet:
Add to Item G.7. Wake Zone Signage Discussion
• Sign Layout
• Cost Estimates
• Proposed Sign Placement Map
MOTION:
Council Member Molloy MOVED to approve the agenda with the requested revisions to the packet
and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion.
VOTE: There being no objections, SO ORDERED.
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City of Kenai Council Meeting Page 2 of 11
May 2, 2018
4. Consent Agenda
MOTION:
Council Member Knackstedt MOVED to approve the consent agenda and requested
UNANIMOUS CONSENT. Council Member Molloy 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 – None.
C. UNSCHEDULED PUBLIC COMMENTS
Kenai Peninsula Borough Assembly Member Brent Hibbert provided an update on the May 1
Borough Assembly Meeting noting school budget and the upcoming budget process were topics
of discussion.
Ryan Tunseth thanked Council for its non-objection to the issuance of his Marijuana Retail Store
license; will be before Marijuana Control Board on May 7. He also spoke in favor of the Recreation
Center noting it was an important part of the community and encouraged doing whatever needed
to be done to preserve it or create the next recreation center in Kenai.
D. PUBLIC HEARINGS
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.
MOTION:
Council Member Molloy MOVED to enact Ordinance 3015-2018 and Council Member Knackstedt
SECONDED the motion.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
Clarification was provided that there were no significant strings attached to accepting the grant.
VOTE:
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City of Kenai Council Meeting Page 3 of 11
May 2, 2018
YEA: Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
NAY:
MOTION PASSED UNANIMOUSLY.
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.
MOTION:
Council Member Knackstedt MOVED to enact Ordinance 3016-2018 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, Boyle, Gabriel, Navarre, Glendening, Knackstedt
NAY:
MOTION PASSED UNANIMOUSLY.
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.
MOTION:
Council Member Molloy MOVED to enact Ordinance 3017-2018 and Council Member Knackstedt
SECONDED the motion.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE:
YEA: Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
NAY:
MOTION PASSED UNANIMOUSLY.
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.
MOTION:
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City of Kenai Council Meeting Page 4 of 11
May 2, 2018
Vice Mayor Navarre MOVED to enact Ordinance 3018-2018 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.
Clarification was provided that the biggest change was the employees in this service would be at-
will and a salary range matrix was provided which would give the City Manager some needed
tools and flexibility. It was suggested the City would save money and opportunities for employees
would be enhanced.
Concern was expressed for the lack of protection of due process.
There was discussion regarding the attorney review in section 23.10.035 (b) being to ensure a
dismissal was not for an illegal reason; at-will employment being reasonable for the manager of
a department; at-will employment being typical in public sector; a majority of municipalities the
size of the City of Kenai or larger in Alaska had at-will department heads.
It was suggested there be a next step if the manager and attorney didn’t agree in section
23.10.035 (b). Clarification was provided that, even currently, the attorney doesn’t have the ability
to prohibit the firing of someone even if for cause.
It was noted there was implied pressure from the Council in their being cognizant of how the
manager was managing; confidence in the manager to manage staff and this ordinance. It was
further noted the manager is held to high professional standards and he should expect the same
from his staff.
MOTION:
Council Member Molloy MOVED to postpone to the May 16 meeting and Council Member Boyle
SECONDED the motion.
It was suggested that any members wanting to bring forth amendments to what was proposed in
section 23.10.035 (b) should work with the attorney.
VOTE:
YEA: Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
NAY:
MOTION PASSED UNANIMOUSLY.
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.
MOTION:
Council Member Knackstedt MOVED to enact Ordinance 3019-2018 and Council Member
Glendening SECONDED the motion.
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City of Kenai Council Meeting Page 5 of 11
May 2, 2018
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
Clarification was provided that the bid amount had been discussed with the bidder and
administration was comfortable that the bidder was capable of doing the project; it was felt the
project could be accomplished with minimal change orders.
VOTE:
YEA: Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
NAY:
MOTION PASSED UNANIMOUSLY.
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”
MOTION:
Vice Mayor Navarre MOVED to enact Ordinance 3020-2018 and Council Member Knackstedt
SECONDED the motion.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
The process used to solicit the project was discussed.
VOTE:
YEA: Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
NAY:
MOTION PASSED UNANIMOUSLY.
7. Resolution No. 2018-18 – Awarding a Contract for External Audit Services to BDO
USA, LLP.
MOTION:
Vice Mayor Navarre MOVED to adopt Resolution No. 2018-18 and Council Member Boyle
SECONDED the motion.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
An overview of the scoring matrix and the difference in the Request for Proposal process versus
the Invitation to Bid process was provided. It was pointed out that the City was looking for the
best value, not necessarily the cheapest option and also that local preference was not provided
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City of Kenai Council Meeting Page 6 of 11
May 2, 2018
for in code for the Requests for Proposal process, only the Invitation to Bid process. Clarification
was provided that the team that ranked the proposals for audit services were all staff members.
Additional clarification was provided that the auditors annually review and express their opinion
on the City’s procurement practices and internal controls to ensure they fell in with generally
accepted financial practice. It was noted that financial practices in Kenai Municipal Code were
also reviewed annually for compliance with federal and state laws.
It was pointed out that the proposals were submitted based on the three-year term that was
advertised and a contract was negotiated as provided for by code; it was unknown whether either
of the proposers would sign a one-year contract for the price they proposed for a three-year
contract.
Clarification was provided that the scoring matrix was provided to the proposers in the advertised
request for proposal and that the scoring sheets would become public information after the
contract award.
Timing of the proposal and the City’s options in three years was discussed.
MOTION TO AMEND:
Vice Mayor Navarre MOVED to amend section 1 of the resolved statement to read, “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 one-year,” and Council Member Glendening
SECONDED the motion.
It was pointed out that staff followed the provisions in code which provided a process with integrity
asking proposers to submit a proposal in good faith; credibility needed to be maintained.
Suggestion was made to award the contract and review the process in the meantime and consider
a future code amendment to allow for local preference when soliciting professional services.
VOTE ON THE AMENDMENT:
YEA: Navarre, Glendening
NAY: Gabriel, Boyle, Knackstedt, Molloy
MOTION FAILED.
It was pointed out that the City’s previous contract was with the local firm, Mikunda-Cottrell, which
was bought out by BDO USA, LLP during the life of the contract.
The small number of auditing firms in Alaska that did municipal audits and the possibility that
difficulty in competing with a worldwide company discouraged a larger field of firms from
submitting proposals was discussed.
MOTION TO AMEND:
Vice Mayor Navarre MOVED to amend section 1 of the resolved statement to read, “That the City
Manager is authorized to execute a contract for the City’s external audit services to the highest
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City of Kenai Council Meeting Page 7 of 11
May 2, 2018
ranking proposer, BDO USA, LLP for a period of three-years,” and Council Member Glendening
SECONDED the motion.
VOTE ON THE AMENDMENT:
YEA: Navarre, Glendening, Gabriel, Molloy
NAY: Boyle, Knackstedt
MOTION PASSED.
VOTE ON THE MAIN MOTION AS AMENDED:
YEA: Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
NAY:
MOTION PASSED UNANIMOUSLY.
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.
MOTION:
Council Member Molloy MOVED to adopt Resolution No. 2018-19 and Council Member Boyle
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 only the work sessions of Planning & Zoning meetings and joint
commission work sessions were what was being added to the recording requirements.
It was suggested that work sessions are informal discussions and no voting takes place; there
was a perception that people, even the public, felt more apt to discuss issues when not being
recorded. Concern was expressed for things being taken out of context.
VOTE:
YEA: Molloy, Boyle, Gabriel
NAY: Navarre, Glendening, Knackstedt
MOTION FAILED .
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.
MOTION:
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Council Member Molloy MOVED to adopt Resolution No. 2018-20 and Council Member
Glendening SECONDED the motion. UNANIMOUS CONSENT was requested.
Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment
was closed.
VOTE: There being no objection; SO ORDERED
E. MINUTES
1.*Regular Meeting of April 18, 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.
Approved by the consent agenda.
3. *Action/Approval – Non-Objection to New Commercial Retail Marijuana Store for:
• Cook Inlet Cannabis Company D/B/A East Rip – License No. 13382
Approved by the consent agenda.
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 Ron Hyde. (Administration)
Introduced by the consent agenda and public hearing set for May 16, 2018.
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.
MOTION:
Council Member Molloy MOVED to authorize the creation of a sub-committee of the harbor
commission for the purpose of determining the roles and responsibilities of the commission.
Council Member Boyle SECONDED the motion. UNANIMOUS CONSENT was requested.
It was noted that the subcommittee would be a positive approach and working with the new Public
Works director would dovetail nicely.
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The sub-committee’s liaison, purpose, members, and timeframe were discussed.
It was noted Council Member Glendening had offered to be liaison to the sub-committee and
Mayor Gabriel nominated him.
VOTE: There being no objection; SO ORDERED.
MOTION:
Council Member Molloy MOVED to appoint Commissioners DuPerron, Dunn, and Crandall to the
sub-committee and requested UNANIMOUS CONSENT. Council Member Boyle SECONDED the
motion.
VOTE: There being no objection; SO ORDERED.
MOTION:
Council Member Molloy MOVED to set the term of the sub-committee to end on December 31,
2018 and requested UNANIMOUS CONSENT. Council Member Boyle SECONDED the motion.
VOTE: There being no objection; SO ORDERED.
MOTION:
Council Member Molloy MOVED to confirm the mayor’s nomination of Council Member
Glendening to be the sub-committee’s liaison and requested UNANIMOUS CONSENT. Council
Member Boyle SECONDED the motion.
VOTE: There being no objection; SO ORDERED.
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.
MOTION:
Council Member Molloy MOVED to approve a special use permit to Kenai Rotary for use of the
multi-purpose facility for the Kenai Rotary Soap Box Derby and Council Member Boyle
SECONDED the motion. UNANIMOUS CONSENT was requested.
VOTE: There being no objection; SO ORDERED.
7. Discussion – Wake Zone Signage at the Mouth of the Kenai River.
It was pointed out that administration’s understanding of the Harbor Commission’s request was
to keep boaters mindful of keeping their wake minimal; proposing “Be Safe; Minimize Your Wake”
as permanent signs.
It was felt the proposed signage would be a good start and boaters would be mindful.
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H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging – No report; next meeting May 10.
2. Airport Commission – No report; next meeting May 10.
3. Harbor Commission – No report; 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 25, the Commission
approved a plat for a Right-of-W ay vacation and approved a Conditional Use Permit
to build a 6-Plex for senior housing; next meeting May 9.
6. Beautification Committee – No report; next meeting May 8.
7. Mini-Grant Steering Committee – No report.
I. REPORT OF THE MAYOR
Mayor Gabriel reported on the following:
• Attended the Volunteer Appreciation Dinner for the City’s commission members
and thanked the Clerk’s Office for the work they did putting it together;
• Attended Samurai Sam’s grand opening;
• Sam Cotton, Commissioner of Alaska Department of Fish and Game asked him
to attend an informal meeting of stakeholders from the Cook Inlet area regarding
a framework for creating a less hostile atmosphere surrounding the Board of
Fisheries.
J. ADMINISTRATION REPORTS
1. City Manager – P. Ostrander reported on the following:
• Participated as a Caring for the Kenai judge; noted the sixth place winner had a
concept for a magnetic beach sweeper and had discussions with him;
• Met with the Eagle Cam bloggers at the Eagle Cam location for future content;
• Tasked the Planning Department with reviewing the City’s sign code;
• The Washington D.C. delegation was fully engaged with authorizing the extension
for the Bluff Stabilization Project;
• Provided an update on the upcoming Kenai Peninsula Borough work session.
2. City Attorney – Reported he was preparing an informational memo regarding sales tax
on internet sales; noted a case pending at the U.S. Supreme Court level could be a
game changer.
3. City Clerk – J. Heinz noted the report of the April 12 shred day was included in the
packet; new art in the display case in Chambers; provided an update on the upcoming
meetings and events.
K. ADDITIONAL PUBLIC COMMENT
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1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
None.
2. Council Comments
Vice Mayor Navarre pointed out a bill moving through the legislature that was increasing fees on
municipal license plates; AML members testified; also reported that Alaska Municipal League was
in negotiations for a new Executive Director.
Council Member Knackstedt expressed gratitude for Council Member Glendening attending the
Airport Commission meeting on his behalf.
Council Member Glendening noted he attended the 51st Outstanding Student Award presented
by the Masonic Lodge where forty students were rewarded; also noted he had been appointed to
the borough’s AK LNG Advisory Committee and would be collaborating with the City Planner and
City Manager.
L. EXECUTIVE SESSION – None.
M. PENDING ITEMS – None.
N. ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 9:05 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of May 2, 2018.
_____________________________
Jamie Heinz, CMC
City Clerk
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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.
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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.]
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(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
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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:
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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.
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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.
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(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.
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(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.
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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:
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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.
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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.]
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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
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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.
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(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.
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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:
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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
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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
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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.
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(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
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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
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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
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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
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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.”
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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
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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.
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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
115
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
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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.
117
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.
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[(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.
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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.
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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
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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.
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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:
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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.
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(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
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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
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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:
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(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:
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(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
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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
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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.
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(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
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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
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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,
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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
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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
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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
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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
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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.
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(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.
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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
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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.
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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.
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(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.
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(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.
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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.
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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:
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(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
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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.
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(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
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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.
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(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
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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
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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.
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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.
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(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
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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
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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.
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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.
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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.
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(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:
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(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
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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,
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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.
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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
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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.
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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
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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
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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
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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.
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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
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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.”
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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
173
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
174
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.
175
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.
176
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
177
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
178
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.
179
PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION
COUNCIL MEETING OF: MAY 16, 2018
VENDOR DESCRIPTION
PERS PERS
INTEGRITY JANITORIAL APRIL SERVICE AT CITY HALL
PRECIOUS JANITORIAL APRIL SERVICE AT LIBRARY
PRECIOUS JANITORIAL APRIL SERVICE AT TERMINAL
PRECIOUS JANITORIAL APRIL SERVICE AT POLICE
PRECIOUS JANITORIAL APRIL SERVICE AT VISITOR CENTER
INVESTMENTS
VENDOR DESCRIPTION
DEPARTMENT ACCOUNT AMOUNT
VARIOUS LIABILITY 87,871.43
NON-DEPARTMENTAL REPAIR & MAINTENANCE 1,389.00
LIBRARY REPAIR & MAINTENANCE 2,795.00
AIRPORT REPAIR & MAINTENANCE 4 ,495.00
POLICE REPAIR & MAINTENANCE 978.00
VISITOR CENTER REPAIR & MAINTENANCE 928.00
MATURITY DATE AMOUNT Effect. Int.
180
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Jamie Heinz, City Clerk
DATE: May 11, 2018
SUBJECT: New Marijuana Product Manufacturing Facility
The Alcoholic & Marijuana Control Office has sent notification that the following applicant has
requested a new marijuana product manufacturing facility license:
Applicant: Herban Extracts, LLC
Owners: Buddy Crowder
D/B/A: Herban Extracts, LLC
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 satisf ied 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
181
"Vt11a!Je with a Past, City with a Future"
MEMORANDUM
210 Fidalgo Avenue, Kenai, Alaska 99611 -7794
Telephone: 907-283-7535 I FAX: 907-283-3014
TO : David Ross , Police Chief
Terry Eubank, Finance Departmen t
Scott Bloom , Legal Department
W illie Anderson , Lands Management
Elizabeth Appleby, City Planner
FROM : ~amie Heinz, City Clerk
DATE: April 25, 2018
RE: Marijuana Product Manufacturing Facility
ltdtd mr
1992
The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested a
new license:
Applicant:
Owners :
D/B/A :
Herban Extracts, LLC
Buddy C rowder
Herban Extracts , LLC
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 b~. initials
lf1I have re viewed all records for my department and the applica nt i s current on obligations or obligations do not exist.
0 The app~2!'has outstanding obligations and an additiona l page has been attached .
2. Finance • • initials
'B I have reviewed all records for my department and the appl ica nt is current on obligations or obl igations do not exist.
0 The applicant has outstand ing obligations and an additional page has been attached.
3~al '> 'J initials
~ I have reviewed all records for m y department and the applicant is current on obligations or obligations do not exist.
0 The applicant has outstanding obligatio ns and an add itional page has been attached .
4~ds Management [Ai.l.J:.-:' initials
~ I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist.
Orhe applicant has outEJ\ng obligations and an additional page has been attached.
5~anning and Zoning initials
t{j I have reviewed all records for my department and the appl icant is current on obligations or obligations do not exist.
Orhe applicant has outstan ing bl igations and an additional page has been attached.
Returned to Clerk's office : S q;,
182
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 24, 2018
City of Kenai
Attn: Jamie Heinz
VIA Email: jheinz@kenai.city
kring@kpb.us
jblankenship@kpb.us
micheleturner@kpb.us
License Number: 14432
License Type: Marijuana Product Manufacturing Facility
Licensee: Herban Extracts, LLC
Doing Business As: HERBAN EXTRACTS, LLC
Physical Address: 14927 Kenai Spur Highway
Kenai, AK 99611
Designated Licensee: Buddy Crowder
Phone Number: 907-252-4755
Email Address: buddy@907maryjane.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
amco.localgovernmentonly@alaska.gov
183
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184
Received by AMCO 12.04.17
185
Received by AMCO 12.04.17
186
Received by AMCO 12.04.17
187
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
Herban Extracts, LLC 14432
Marijuana Product Manufacturing Facility
HERBAN EXTRACTS, LLC
14927 Kenai Spur Highway
Kenai ALASKA 99611
410 Magic Ave
Kenai ALASKA 99611
Buddy Crowder
907-252-4755
buddy@907maryjane.com
Received by AMCO 4.18.18
188
[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 entire manufacturing facility will be designated as a restricted access area and will be equipped with a robust security
system. The premises will be equipped with outdoor lighting, 24 hour video surveillance, an alarm system that will provide
electronic notification to the licensee and law enforcement if necessary, and multiple signs stating that the premises is
secured and monitored and that visitors must be escorted. The interior of the facility will have security cameras installed
for 24 hour monitoring of the entire facility. The exterior of the building will have 24 hour surveillance cameras recording
activity around the premises. Visitors will be required to provide valid government-issued, photo identification, with no
exceptions. Visitors will be given a visitor badge to be displayed on their person at all times within the facility. All visitors
will be escorted by an Herban Extracts employee or Buddy at all times at a 5:1 ratio. A visitor’s log will record the visitor’s
name, date and time, and purpose for the visit, and will be available to AMCO upon request. Access to the facility will be
granted through a smart lock system, and a sign will be posted on each exterior door (there are four) stating that the door
leads into a restricted access area and members of the public must be escorted. Cameras will also be placed
conspicuously at each of the four exterior doors to the building to deter visitors from attempting access alone.
*Any agent of the MCB, law enforcement or city official does not fall under the visitor policy*
Only visitors who have been pre-scheduled and pre-approved by Buddy or manager of the
facility will be allowed access. All visitors will enter through door 101-1 (as shown on the right
side of the diagram) and will be required to provide their valid, government issued photo ID
and sign into the visitor's log. The log will record the visitor's name, date, time in and out of the
facility and the purpose of the visit. Visitors will be given a visitor's badge to be displayed for
the duration of the visit and to be returned upon exiting the facility. Either Buddy or a
designated employee will escort and actively supervise visitors at a 5:1 ratio during the entire
visit. Once the visit has concluded, the visitor must leave the premises immediately.
*Any agent of the MCB, law enforcement or city official does not fall under the visitor policy*
Received by AMCO 4.18.18
189
[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:
All visitors will sign into a visitor's log noting their name, the date, time in and out of the facility,
and the purpose of their visit. Business records will be kept in the file cabinet located in the
office on premises and only Buddy and authorized employees will have access to the locked
cabinet. Visitors will be escorted by an employee at all times while inside the facility and will be
asked to exit the premises upon completion of the visit.
Received by AMCO 4.18.18
190
[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 lights will be installed against the building and throughout the property in order to keep
the premises, signs, and doors well lit and to ensure video surveillance cameras are capable
of recording individuals within 20 feet from any entry point to the facility. Light fixtures will be
installed in such a way to thwart vandalism and common obstructions. The licensee or
designated employee will inspect exterior lighting frequently to ensure proper functionality and
position for optimal recording and to deter criminal activity 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 if necessary and Buddy. Each morning, the on-site manager or
Buddy, will disable the overnight alarm system and check the surveillance cameras and
recordings to ensure the system is functioning as expected. The last agent to leave the facility
each night will activate the overnight devices and sensors.
Sensors will be installed and maintained on all potential entry points of the building, including the
4 exterior doors, to monitor for intrusion when the alarm system is activated (the manufacturing
facility has no exterior windows). The last employee to leave the facility each day 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. Each morning, Buddy or 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 4.18.18
191
[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:
The video surveillance cameras will continuously monitor the entire facility. Inventory counts
will be performed monthly and kept as business records. A zero tolerance policy will be
implemented and reinforced by the company through mandatory training to recognize and
report diversion or inversion of marijuana. The licensee will report any theft of marijuana or
marijuana products to local law enforcement, AMCO Enforcement and update METRC
accordingly. Only Buddy and designated employees will have access to marijuana and
marijuana product storage and to the secured cabinet where business records are kept.
The exterior of the facility will remain well lit with 24 hour video surveillance. "No Loitering"
signs will be prominently posted around the property as well as signage stating that the
premises is under video surveillance. The licensee or designated employees will periodically
monitor the property for loitering/unauthorized individuals. The loitering individuals will be told
to vacate the premises or law enforcement will be contacted. Any visitors at the facility will be
asked to leave the premises once the visit has ended.
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 building access points. Any unauthorized or attempted intrusion will prompt an
automatic, electronic alert to the security company who will then contact local law enforcement
and Buddy. All alarm systems and devices will be tested periodically to ensure proper
functionality.
Received by AMCO 4.18.18
192
[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
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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
During emergencies, Buddy or a designated employee will evacuate all employees and visitors from the
building and will await the arrival of local emergency officials in a safe and accessible location. All visitors
present on the premises will be escorted immediately to the nearest exit in a safe and organized manner.
When any dangerous, threatening, or unauthorized activity is reported to local law enforcement, employees
will comply with directives and remain in a safe location while the incident is addressed. After the emergency
is resolved, employees will look for property damage, verify cash and inventory, and submit all necessary
documentation to law enforcement officials for a police report. Surveillance footage will be downloaded and
submitted to police officials to aid in their investigation, and authorized officials will be given direct phone
numbers to Buddy and agents to ensure a good working relationship. Herban Extracts will properly notice
AMCO Enforcement of any unauthorized breach of security that requires law enforcement involvement.
✔
✔
✔
✔
✔
✔
Received by AMCO 4.18.18
193
[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
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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
Surveillance cameras will be positioned along the building with ample lighting, and checked
regularly to prevent obstructions and to get the best facial image of anyone within twenty (20) feet
of all access points. Video surveillance cameras will be placed strategically to record all areas of
the facility inside and outside and at a variety of angles. Both the interior and exterior of all doors,
marijuana storage areas and manufacturing areas will have video coverage to clearly identify the
faces of those present. Cameras at the outside of the facility will record activity on each side of the
building. A failure notification system will be installed to provide audible and visual notification of
any failure in the surveillance system so that it can be immediately resolved. 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 can continue to operate for at least one (1) hour.
The entire facility is designated as a restricted access area and will remain locked with access
restricted to Buddy and his designated employees at all times. The video surveillance
recording equipment is situated within the facility across from the office and business records
will be stored in the secured office only accessible by Buddy, authorized employees, and
AMCO Enforcement. The security system will be password protected to prevent data
tampering, and recorded data will be stored for a minimum of 40 days as official business
records. Recordings will be date and time stamped and archived in a format that prevents
alteration of the recording image.
✔
✔
✔
✔
Received by AMCO 4.18.18
194
[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
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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 4.18.18
195
[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 will be stored in the locked file cabinet (labeled H on the diagram) in the
secured office and backed up to a hard drive every 6-12 months to prevent loss or destruction.
Only the licensee and authorized employees will have access to the office and the locked
cabinet where business and surveillance records are stored. The facility's business records will
be managed by the licensee and authorized employees in accordance with standard retention
policies to ensure that business records are stored in a consistent and searchable manner.
Received by AMCO 4.18.18
196
[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
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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
Herban Extracts will use the Metrc inventory tracking system to track the production and movement
of all inventory, to increase product security, and to deter and prevent diversion activity. Data will
be collected and recorded during all manufacturing and processing activity, and also during the
subsequent sale, sample, transport, disposal, and/or destruction.
The facility will assign a tracking number to all marijuana material accepted into the facility, and
record the tracking information in Metrc. Employees will be trained to use the tracking system to
ensure that: (1) all marijuana products produced, processed, and packaged are identified and
tracked through 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 all sales, testing, and transportation
arrangements in the system, and generate a transport manifest to accompany all shipments.
Marijuana and by-products used to prepare and package samples will also be recorded, including:
(1) the amount of each sample; (2) the facility that received the sample; and (3) the disposal of any
expired or outdated promotional sample returned to the facility. Employees will use the tracking
system to verify all shipments, and identify any individuals at the facility for the purpose of
conducting business. Any products flagged for disposal will be recorded in Metrc at least three (3)
days prior to any disposal action. Any destruction, loss, or theft of marijuana will be promptly
recorded in Metrc to notify AMCO, AMCO Enforcement, and reported to local authorities.
✔
✔
Received by AMCO 4.18.18
197
[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
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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
Buddy and all employees will be required to obtain an AMCO issued marijuana handler permit before
employment can begin and will be responsible for keeping the permit in good standing at all times while
employed with Herban Extracts. All employees will also be required to attend a training course taught by
Buddy or a designated employee. Training will include marijuana industry topics, safety, customer care,
legal issues, state and federal laws and regulations and proper food handling procedures. Employees
will be educated on quality control, inventory control, sanitation, opening and closing, marijuana product
production techniques and best practices, and security. Employees will also be trained on how to use
the inventory tracking system and how to interact with visitors while in production. Employees will attend
a general security class at hiring, and learn how to handle security and emergency procedures. The
state and local marijuana regulations and laws will be posted within the facility.
✔
✔
✔
Received by AMCO 4.18.18
198
[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
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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
Herban Extracts anticipates the following marijuana plant and product waste at the manufacturing facility; (1) contaminated or
infected marijuana or marijuana products (2) marijuana or marijuana products deemed by the licensee or a manager as unfit for sale
or consumption for any reason (3) marijuana product that fails testing (4) marijuana plant waste created during the extraction process
(5) other marijuana or marijuana product waste as determined by the board or director. Once marijuana or marijuana product is
deemed as waste, it will be separated from all other marijuana and marijuana products and securely stored in locked bins on the
licensed premises and an email notification will be sent to AMCO Enforcement at least 3 days prior to rendering the waste unusable
as well as recording the waste in metrc. All solid marijuana plant waste (plant matter waste from the extraction process such as plant
matter that is pressed/squeezed to extract oil and marijuana product waste will be ground in a grinder and then mixed with other solid
compostable or noncompostable wastes until the mixture is no more than 50% marijuana waste. Liquid marijuana waste such as
concentrates, will be mixed with at least equal parts of non-marijuana waste and then stored away from all other marijuana and
marijuana products in locked containers on the premises. The waste will be collected once a week or as needed by the city waste
facility truck and delivered to the waste station. A log will be maintained recording the final destination of all marijuana and marijuana
product waste. The logged information will be available to AMCO at any time upon request, and securely stored.
Marijuana plant and product waste will be ground up with other compostable food waste, yard
waste, vegetable oils, or with non-food paper waste or cardboard after giving AMCO
Enforcement at least three (3) days notice via email.
✔
Received by AMCO 4.18.18
199
[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 and product waste unusable, Herban Extracts 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. Designated
employees will use paper waste, plastic waste, cardboard waste, soil, food waste, yard waste,
and/or vegetable-based grease or oils. Management will inspect the resulting mixture to ensure
it is composed of no more than fifty percent (50%) marijuana waste by volume. All marijuana
waste will be secured in waste storage within the facility, separate from all other marijuana and
marijuana products, until such time it is picked up by the waste disposal company.
Received by AMCO 4.18.18
200
[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
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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
✔
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✔
Received by AMCO 4.18.18
201
[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 marijuana products, Herban Extracts 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 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 more than 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
product 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 product 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 product from contamination and will check to
make sure that the packages will not impart any toxic or deleterious substance to marijuana product. Herban
Extracts will use certified scales in compliance with the Alaska Weights and Measures Act, and will maintain
registration and inspection reports at the facility. Reports will be available upon request for AMCO.
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 or attached into the pick up truck 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 products are in sealed packages, and locked
in the safe and secure storage compartment in or attached to 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
product be opened during transportation. The vehicle storage box will be a large rectangular
industrial container mounted and secured within the vehicle. 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 their Marijuana Handlers'
card.
Received by AMCO 4.18.18
202
[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
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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
Herban Extracts will not be open to the public and will not post any signs with our business
name.
Received by AMCO 4.18.18
203
[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
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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 4.18.18
204
Received by AMCO 4.18.18
205
[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 4.18.18
206
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
Herban Extracts, LLC 14432
Marijuana Product Manufacturing Facility
HERBAN EXTRACTS,
14927 Kenai Spur Highway
Kenai AK 99611
✔
Received by AMCO 12.04.17
207
Received by AMCO 4.20.18
208
Received by AMCO 12.04.17
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Received by AMCO 12.04.17
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Received by AMCO 12.04.17211
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ŽŝŶŐƵƐŝŶĞƐƐƐ͗
WƌĞŵŝƐĞƐĚĚƌĞƐƐ͗
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Section 1 – Establishment Information
Herban Extracts, LLC 14432
Marijuana Product Manufacturing Facility
HERBAN EXTRACTS, LLC
14927 Kenai Spur Highway
Kenai ALASKA 99611
Received by AMCO 12.04.17
212
&ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞϮŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
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ƉƉůŝĐĂŶƚƐƐŚŽƵůĚƌĞǀŝĞǁϯϯϬϲ͘ϱϭϬĂŶĚďĞĂďůĞƚŽĂŶƐǁĞƌ͞ŐƌĞĞ͟ƚŽĂůůŝƚĞŵƐďĞůŽǁ͘
dŚĞŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚŵĂŶƵĨĂĐƚƵƌŝŶŐĨĂĐŝůŝƚLJǁŝůůŶŽƚ͗ ŐƌĞĞ ŝƐĂŐƌĞĞ
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ƚŽĂĐŽŶƐƵŵĞƌ͕ǁŝƚŚŽƌǁŝƚŚŽƵƚĐŽŵƉĞŶƐĂƚŝŽŶ
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ŽƌĂŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚŽŶŝƚƐůŝĐĞŶƐĞƐƉƌĞŵŝƐĞƐ
dŚĞŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚŵĂŶƵĨĂĐƚƵƌŝŶŐĨĂĐŝůŝƚLJǁŝůůŶŽƚŵĂŶƵĨĂĐƚƵƌĞŽƌƐĞůůĂŶLJƉƌŽĚƵĐƚƚŚĂƚ͗ŐƌĞĞ ŝƐĂŐƌĞĞ
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ĞƐĐƌŝďĞƚŚĞĞƋƵŝƉŵĞŶƚĂŶĚƐŽůǀĞŶƚƐ͕ŐĂƐĞƐ͕ĐŚĞŵŝĐĂůƐ͕ĂŶĚŽƚŚĞƌĐŽŵƉŽƵŶĚƐƚŚĞŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚŵĂŶƵĨĂĐƚƵƌŝŶŐĨĂĐŝůŝƚLJ
ǁŝůůƵƐĞƚŽĐƌĞĂƚĞŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞƐ͗
Section 2 – Prohibitions
Section 3 – Equipment, Compounds, and Processes to be Used
✔
✔
✔
✔
✔
ƋƵŝƉŵĞŶƚ͗ĐůŽƐĞĚůŽŽƉĞĚƌŽƚĂƌLJĞǀĂƉŽƌĂƚŽƌ͕ĐůŽƐĞĚůŽŽƉĞdžƚƌĂĐƚŽƌŵĂĐŚŝŶĞ͕ǀĂĐƵƵŵ͕ĨƌĞĞnjĞƌ͕ǀĂĐƵƵŵŽǀĞŶ͕ĞŶƚƌŝĨƵŐĞ͕
ƺĐŚŶĞƌĨƵŶŶĞů͕ŐƌŝŶĚĞƌ͕ĐŚŝůůĞƌƐ͕ƐŚŽƌƚͲƉĂƚŚĚŝƐƚŝůůĂƚŝŽŶĞƋƵŝƉŵĞŶƚ͕ǁĂƚĞƌďĂƚŚ͕ƵůƚƌĂƐŽŶŝĐĐůĞĂŶĞƌ͕ƐĐĂůĞ͘&ŽƌƉĂĐŬĂŐŝŶŐƚŚĞ
ƉƌŽĚƵĐƚƐǁĞǁŝůůŚĂǀĞĂŵĂŶƵĂůĐĂƌƚƌŝĚŐĞĨŝůůŝŶŐŵĂĐŚŝŶĞ͕ĂŶĂƵƚŽŵĂƚŝĐĐĂƌƚƌŝĚŐĞĨŝůůŝŶŐŵĂĐŚŝŶĞ͕ĂŶĚůĂďĞůƉƌŝŶƚŝŶŐŵĂĐŚŝŶĞ͘
^ŽůǀĞŶƚƐ͗KϮ͕ĨŽŽĚŐƌĂĚĞĞƚŚĂŶŽů
ŽŵƉŽƵŶĚƐ͗ĨŽŽĚͲŐƌĂĚĞŚĞŵƉŽŝů͕ĨŽŽĚͲŐƌĂĚĞƉƌŽƉLJůĞŶĞŐůLJĐŽů͕ĂĐƚŝǀĂƚĞĚĐŚĂƌĐŽĂů͕
'ĂƐĞƐ͗KϮ
Received by AMCO 12.04.17
213
WĂŐĞϯŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
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ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ĞƐĐƌŝďĞƚŚĞƉƌŽĐĞƐƐĞƐƚŽďĞƵƐĞĚƚŽĐƌĞĂƚĞŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞƐ͗
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pressuresandtemperatures.AstheCO2iswarmedbackupafterextraction,itturnsbackintoagas(whichisrecovered),whichcausesthe
cannabisoiltoseparateintoacollectioncontainer.Theoilwillundergofurtherrefiningtoremovetheplantwaxesthruaprocesscalled
winterization.Winterizationinvolvestheoilwithplantwaxestobemixedwithfoodgradeethanolandplacedinafreezerforseveraldays.
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ethanolmixturethengetsmixedwithactivatedcharcoalandthenfilteredsothatwhatremainsisanoil/ethanolmixture.Thisfilteredethanol/
oilmixturewillthenhavetheethanolevaporatedoffusingaclosedloopedrotaryevaporator.SomeoftheoilfromtheCO2extractorwill
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distillation”,andisknowntoproducesinglecompoundoilsthatcanreach99%purity.Shortpathdistillationusesvacuumpressure,steam,
andheattomanipulateboilingpointssothatcompoundsaresubjectedtomuchcoolertemperatureswhentheypassthrough.Dependingon
thedistillationprocess,thesevolatilecompoundscaneitherbefractionedindividuallyorsimultaneouslyforcollection.Theseisolated
moleculesmaybereintroducedtotheoilafterbeingisolated,orsoldasadistillate.,IWKH&2RLOSURGXFHGZLOOEHVROGLQFDUWULGJHVRU
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liquidformwhichsaturatesthecannabismaterialandextractsthedesiredcannabinoids,terpenes,orflavonoidsusingdifferentpressures
andtemperatures.AstheCO2iswarmedbackupafterextraction,itturnsbackintoagas(whichisrecovered),whichcausesthecannabis
oiltoseparateintoacollectioncontainer.Theoilwillundergofurtherrefiningtoremovetheplantwaxesthruaprocesscalledwinterization.
Winterizationinvolvestheoilwithplantwaxestobemixedwithfoodgradeethanolandplacedinafreezerforseveraldays.Theethanol/oil
mixturethengetscentrifugedtohelpseparatetheplantwaxesfromtheoil.Thiswinterizationstepgetsrepeated.Theethanolmixturethen
getsmixedwithactivatedcharcoalandthenfilteredsothatwhatremainsisanoil/ethanolmixture.Thisfilteredethanol/oilmixturewillthen
havetheethanolevaporatedoffusingaclosedloopedrotaryevaporator.SomeoftheoilfromtheCO2extractorwillalsogothroughfurther
refinementtoisolatespecificcannabinoids,terpenes,orflavonoids.Thisprocessisknownas“fractional”or“shortpathdistillation”,andis
knowntoproducesinglecompoundoilsthatcanreach99%purity.Shortpathdistillationusesvacuumpressure,steam,andheatto
manipulateboilingpointssothatcompoundsaresubjectedtomuchcoolertemperatureswhentheypassthrough.Dependingonthe
distillationprocess,thesevolatilecompoundscaneitherbefractionedindividuallyorsimultaneouslyforcollection.Theseisolatedmolecules
maybereintroducedtotheoilafterbeingisolated.Aftertheethanolhasbeenevaporatedfromtheoilintherotaryevaporatorandany
specificmoleculesUHLQWURGXFHGWRWKHRLOLWZLOOEHSODFHGLQDYDFXXPRYHQRYHUQLJKWEHIRUHLWLVILQLVKHGDQGUHDG\IRUSDFNDJLQJ
(WKDQRO&RQFHQWUDWH2LO 7KLVFDQQDELVFRQFHQWUDWHLVSURGXFHGXVLQJIRRGJUDGHHWKDQRODVDVROYHQWWRH[WUDFWWKHRLO7KHFDQQDELV
PDWHULDOLVVRDNHGDQGZDVKHGLQHWKDQRO7KHHWKDQROVROXWLRQGLVVROYHVDOOH[WUDFWDEOHPDWWHUIURPWKHFDQQDELVPDWHULDODQGFRQWDLQV
FDQQDELVRLODORQJZLWKXQZDQWHGSODQWPDWHULDO7KHHWKDQROVROXWLRQLVILOWHUHGWRUHPRYHWKHXQZDQWHGSODQWPDWHULDODQGZKDWUHPDLQVLV
WKHFDQQDELVRLOLQHWKDQRO7KLVVROXWLRQZLOOEHSODFHGLQDFORVHGORRSURWDU\HYDSRUDWRUWRVHSDUDWHWKHFDQQDELVRLOIURPWKHHWKDQRO7KH
HWKDQROLVUHFDSWXUHGLQWKLVSURFHVVWREHXVHGDJDLQ,IWKHRLOLVWRRYLVFRXVIRUXVHLQDYDSRUFDUWULGJHSODQWGHULYHGWHUSHQHVIRRGJUDGH
KHPSRLORUIRRGJUDGHSURS\OHQHJO\FROZLOOEHLQWURGXFHGWRWKHRLOWRPDNHLWWKHSURSHUYLVFRVLW\IRUYDSLQJ,IWKHRLOLVJRLQJWREHVROGWR
RWKHUPDULMXDQDSURGXFWPDQXIDFWXUHUVIRUHGLEOHPDQXIDFWXULQJLWPD\EHGHFDUER[\ODWHGILUVWE\KHDWLQJWKHRLOLQD
YDFXXPRYHQIRUDVSHFLILFDPRXQWRIWLPH
&ŽƌŵD:ͲϬϱ
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214
&ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞϰŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
dLJƉĞ͗
WƌŽĚƵĐƚĞƐĐƌŝƉƚŝŽŶ͗
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
/ŶŐƌĞĚŝĞŶƚƐ͗
dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ
ƚŽŵĂƌŝũƵĂŶĂ
ĐŽŶĐĞŶƚƌĂƚĞƐ
^ƚĂŶĚĂƌĚWƌŽĚƵĐƚŝŽŶ
WƌŽĐĞĚƵƌĞĂŶĚ
ĞƚĂŝůĞĚ
DĂŶƵĨĂĐƚƵƌŝŶŐ
WƌŽĐĞƐƐ͗
ĞƉŝĐƚŝŽŶ͗
WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕
ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ
ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ
ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ
ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
Section 4 – Proposed Marijuana Concentrates and Marijuana Products
CO2&RQFHQWUDWHOil
ConcentrateIRU5HILOODEOH9DSRU&DUWULGJHV
CO2&RQFHQWUDWHOilwillvaryincolorfromaverylightambertodark
amberandwillcomeindifferentstrains,includingdifferentcannabinoids,
terpeneprofiles,flavonoids,anddistillates.Theoilisathickstickyliquid.
N/A
C2concentrateoilisproducedusingCO2asasolventinaclosed
loopsystem VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After
extraction,theoilisrefinedthroughwinterizationandthenmaybe
furtherrefinedthroughfractionation.
;ĨŽƌŝŶŚĂůĂƚŝŽŶǀŝĂǀĂƉŽƌŝnjĂƚŝŽŶͿ
Received by AMCO 12.04.17
215
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
dLJƉĞ͗
WĂĐŬĂŐŝŶŐ
ĞƐĐƌŝƉƚŝŽŶ͗
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ
ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů
ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů
ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕
ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ
ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ
ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ
ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ
ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ
ĂƌĞƉƌĞĨĞƌƌĞĚ͘
^ĂŵƉůĞ>ĂďĞůƐ͗
WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ
ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ
ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ
ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ
ŽƵƚ͘
Section 5 – Proposed Product Packaging and Sample Labels
͘ϱƚŽϭŐƌĂŵŽĨKϮĐŽŶĐĞŶƚƌĂƚĞŽŝů
ǁŝůůďĞƉĂĐŬĂŐĞĚŝŶĂƉůĂƐƚŝĐŽƌŐůĂƐƐ
ƐLJƌŝŶŐĞ;ϴϭ͘ϱŵŵůŽŶŐͿǁŝƚŚƚŚĞƚŽƚĂů
d,ƌĂŶŐŝŶŐĨƌŽŵϱϬͲϵϵй;ƚŚĞĂĐƚƵĂů
d,ĐŽŶƚĞŶƚǁŝůůďĞůŝƐƚĞĚŽŶƚŚĞůĂďĞů
ƉĞƌƚĞƐƚŝŶŐƌĞƐƵůƚƐͿ͘dŚĞƐLJƌŝŶŐĞǁŝůůďĞ
ƉůĂĐĞĚŝŶƚŽĂĐůĞĂƌ͕ĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ
ƉůĂƐƚŝĐƚƵďĞĂŶĚƚŚĞŶŝŶƚŽĂ
ƉĂƉĞƌďŽĂƌĚďŽdž͕ĂƉƉƌŽdžŝŵĂƚĞůLJϰΗ,dž
ϮΗtdžϭΗ͕ǁŝƚŚĂƚĂŵƉĞƌƐĞĂů͘,ĞƌďĂŶ
džƚƌĂĐƚƐǁŝůůƉƌŽǀŝĚĞƌĞƚĂŝůƐƚŽƌĞƐǁŝƚŚ
ĨƵůůLJŽƉĂƋƵĞĞdžŝƚďĂŐƐƚŽƉůĂĐĞƚŚĞ
ďŽdžĞƐŝŶƚŽďĞĨŽƌĞĐƵƐƚŽŵĞƌƐůĞĂǀĞƚŚĞ
ƐƚŽƌĞ͘
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ
ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
CO2&RQFHQWUDWHOil
&RQFHQWUDWHIRU5HILOODEOH9DSRU&DUWULGJHV
;ĨŽƌŝŶŚĂůĂƚŝŽŶǀŝĂǀĂƉŽƌŝnjĂƚŝŽŶͿ
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&ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞϰŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
dLJƉĞ͗
WƌŽĚƵĐƚĞƐĐƌŝƉƚŝŽŶ͗
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
/ŶŐƌĞĚŝĞŶƚƐ͗
dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ
ƚŽŵĂƌŝũƵĂŶĂ
ĐŽŶĐĞŶƚƌĂƚĞƐ
^ƚĂŶĚĂƌĚWƌŽĚƵĐƚŝŽŶ
WƌŽĐĞĚƵƌĞĂŶĚ
ĞƚĂŝůĞĚ
DĂŶƵĨĂĐƚƵƌŝŶŐ
WƌŽĐĞƐƐ͗
ĞƉŝĐƚŝŽŶ͗
WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕
ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ
ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ
ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ
ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
Section 4 – Proposed Marijuana Concentrates and Marijuana Products
Vape Cartridges
CO2Concentrate2LO(forinhalationviavaporization)
The concentrate within the vape cartridges varies in color from a bright
yellow to an amber color and is a thick sticky liquid.
N/A
&2concentrateoilisproducedusingCO2asasolventinaclosed
loopsystem VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After
extraction,theoilisrefinedthroughwinterizationandthenmaybe
furtherrefinedthroughfractionation.Theoilwillthenbeloadedintothe
vapecartridges.
Received by AMCO 12.04.17
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&ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞϱŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
dLJƉĞ͗
WĂĐŬĂŐŝŶŐ
ĞƐĐƌŝƉƚŝŽŶ͗
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ
ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů
ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů
ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕
ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ
ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ
ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ
ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ
ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ
ĂƌĞƉƌĞĨĞƌƌĞĚ͘
^ĂŵƉůĞ>ĂďĞůƐ͗
WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ
ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ
ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ
ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ
ŽƵƚ͘
Section 5 – Proposed Product Packaging and Sample Labels
WĂWWWWWWWŐĞϱϱ
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ
ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
VapeCartridges
CO2Concentrate2LO IRULQKDODWLRQYLDYDSRUL]DWLRQ
͘ϱƚŽϭŐƌĂŵŽĨKϮĐŽŶĐĞŶƚƌĂƚĞ
ŽŝůǁŝůůďĞƉĂĐŬĂŐĞĚŝŶƉůĂƐƚŝĐŽƌ
ŐůĂƐƐϱϵŵŵĐĂƌƚƌŝĚŐĞƐ͘dŚĞƚŽƚĂů
d,ǁŝůůƌĂŶŐĞĨƌŽŵϱϬͲϵϵйǁŝƚŚ
ƚŚĞĂĐƚƵĂůd,ĐŽŶƚĞŶƚůŝƐƚĞĚŽŶ
ƚŚĞůĂďĞůƉĞƌƚŚĞƚĞƐƚŝŶŐƌĞƐƵůƚƐ͘
dŚĞĨŝůůĞĚĐĂƌƚƌŝĚŐĞǁŝůůďĞƉůĂĐĞĚ
ŝŶƚŽĂĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ͕ĐůĞĂƌ͕ƉůĂƐƚŝĐ
ƚƵďĞĂŶĚƚŚĞŶŝŶƐĞƌƚĞĚŝŶƚŽĂ
ƉĂƉĞƌďŽĂƌĚďŽdž͘dŚĞďŽdžŝƐ
ĂƉƉƌŽdžŝŵĂƚĞůLJϰΗ,džϮΗtdžϭΗ
ĂŶĚǁŝůůŚĂǀĞĂƚĂŵƉĞƌƐĞĂůƐƚŝĐŬĞƌ͘
,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůůƉƌŽǀŝĚĞƌĞƚĂŝů
ƐƚŽƌĞƐǁŝƚŚĨƵůůLJŽƉĂƋƵĞĞdžŝƚďĂŐƐ
ƚŽƉůĂĐĞƚŚĞďŽdžĞƐŝŶƚŽďĞĨŽƌĞƚŚĞ
ĐƵƐƚŽŵĞƌůĞĂǀĞƐƚŚĞƐƚŽƌĞ͘
Received by AMCO 12.04.17
218
&ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞϰŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
dLJƉĞ͗
WƌŽĚƵĐƚĞƐĐƌŝƉƚŝŽŶ͗
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
/ŶŐƌĞĚŝĞŶƚƐ͗
dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ
ƚŽŵĂƌŝũƵĂŶĂ
ĐŽŶĐĞŶƚƌĂƚĞƐ
^ƚĂŶĚĂƌĚWƌŽĚƵĐƚŝŽŶ
WƌŽĐĞĚƵƌĞĂŶĚ
ĞƚĂŝůĞĚ
DĂŶƵĨĂĐƚƵƌŝŶŐ
WƌŽĐĞƐƐ͗
ĞƉŝĐƚŝŽŶ͗
WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕
ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ
ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ
ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ
ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
Section 4 – Proposed Marijuana Concentrates and Marijuana Products
Vape Cartridge with E-pen Kit
CO2Concentrate2LO(forinhalationviavaporization)
CO2FRQFHQWUDWHoilvapecartridgeswithe-penandbatterychargekit.
Theconcentratecolorwillrangefromverylightambertodarkamberand
willcomeindifferentstrains,includingdifferentcannabinoids,terpene
profiles,flavonoids,anddistillates.Theoilisathick,stickyliquid.
N/A
&2concentrateoilisproducedusingCO2asasolventinaclosed
loopsystem VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After
extraction,theoilisrefinedthroughwinterizationandthenmaybe
furtherrefinedthroughfractionation.Theoilwillthenbeloadedintothe
vapecartridges.
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219
&ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞϱŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
dLJƉĞ͗
WĂĐŬĂŐŝŶŐ
ĞƐĐƌŝƉƚŝŽŶ͗
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ
ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů
ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů
ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕
ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ
ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ
ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ
ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ
ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ
ĂƌĞƉƌĞĨĞƌƌĞĚ͘
^ĂŵƉůĞ>ĂďĞůƐ͗
WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ
ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ
ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ
ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ
ŽƵƚ͘
Section 5 – Proposed Product Packaging and Sample Labels
͘ϱƚŽϭŐƌĂŵŽĨKϮĐŽŶĐĞŶƚƌĂƚĞǁŝůů
ďĞƉĂĐŬĂŐĞĚŝŶƉůĂƐƚŝĐŽƌŐůĂƐƐϱϵŵŵ
ĐĂƌƚƌŝĚŐĞƐ͘dŚĞƚŽƚĂůd,ǁŝůůƌĂŶŐĞ
ĨƌŽŵϱϬͲϵϵйǁŝƚŚƚŚĞĂĐƚƵĂůd,
ĐŽŶƚĞŶƚůŝƐƚĞĚŽŶƚŚĞůĂďĞůƉĞƌƚŚĞ
ƚĞƐƚŝŶŐƌĞƐƵůƚƐ͘dŚĞĨŝůůĞĚĐĂƌƚƌŝĚŐĞǁŝůů
ďĞƉůĂĐĞĚŝŶƚŽĂĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ͕ĐůĞĂƌ͕
ƉůĂƐƚŝĐƚƵďĞĂŶĚƚŚĞŶŝŶƐĞƌƚĞĚŝŶƚŽĂ
ƉĂƉĞƌďŽĂƌĚďŽdžǁŝƚŚĂŶĞͲƉĞŶĂŶĚ
ďĂƚƚĞƌLJĐŚĂƌŐĞƌ͘dŚĞďŽdžŝƐ
ĂƉƉƌŽdžŝŵĂƚĞůLJϳΗ,džϮΗtdžϭΗĂŶĚ
ǁŝůůŚĂǀĞĂƚĂŵƉĞƌƐĞĂůƐƚŝĐŬĞƌ͘,ĞƌďĂŶ
džƚƌĂĐƚƐǁŝůůƉƌŽǀŝĚĞƌĞƚĂŝůƐƚŽƌĞƐǁŝƚŚ
ĨƵůůLJŽƉĂƋƵĞĞdžŝƚďĂŐƐƚŽƉůĂĐĞƚŚĞ
ďŽdžĞƐŝŶƚŽďĞĨŽƌĞƚŚĞĐƵƐƚŽŵĞƌůĞĂǀĞƐ
ƚŚĞƐƚŽƌĞ͘
Vape Cartridge with E-pen Kit
CO2 Concentrate (for inhalation via vaporization)
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ
ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
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&ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞϰŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
dLJƉĞ͗
WƌŽĚƵĐƚĞƐĐƌŝƉƚŝŽŶ͗
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
/ŶŐƌĞĚŝĞŶƚƐ͗
dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ
ƚŽŵĂƌŝũƵĂŶĂ
ĐŽŶĐĞŶƚƌĂƚĞƐ
^ƚĂŶĚĂƌĚWƌŽĚƵĐƚŝŽŶ
WƌŽĐĞĚƵƌĞĂŶĚ
ĞƚĂŝůĞĚ
DĂŶƵĨĂĐƚƵƌŝŶŐ
WƌŽĐĞƐƐ͗
ĞƉŝĐƚŝŽŶ͗
WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕
ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ
ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ
ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ
ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
Section 4 – Proposed Marijuana Concentrates and Marijuana Products
:KROHVDOHCO2&RQFHQWUDWHOil-decarboxylatedornotdecarboxylated
Bulk Concentrate for Wholesale
CO2FRQFHQWUDWHoiltobesoldinbulktootherproductmanufacturingfacilities
foruseinmanufacturingmarijuanaedibleproducts.CO2&RQFHQWUDWHOilwill
varyincolorfromaverylightambertodarkamberandwillcomeindifferent
strains,includingdifferentcannabinoids,terpeneprofiles,flavonoids,and
distillates.Theoilisathickstickyliquid.
N/A
C2concentrateoilisproducedusingCO2asasolventinaclosedloop
system VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After
extraction,theoilisrefinedthroughwinterizationandthenmaybe
furtherrefinedthroughfractionation.Theoilmaybedecarboxylatedinan
ovenifthepurchasingmanufacturingfacilitywishestheoiltobeina
7+&activatedform
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&ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞϱŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
dLJƉĞ͗
WĂĐŬĂŐŝŶŐ
ĞƐĐƌŝƉƚŝŽŶ͗
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ
ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů
ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů
ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕
ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ
ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ
ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ
ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ
ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ
ĂƌĞƉƌĞĨĞƌƌĞĚ͘
^ĂŵƉůĞ>ĂďĞůƐ͗
WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ
ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ
ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ
ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ
ŽƵƚ͘
Section 5 – Proposed Product Packaging and Sample Labels
tŚŽůĞƐĂůĞKϮŽŝůƐŽůĚŝŶďƵůŬƚŽ
ŽƚŚĞƌůŝĐĞŶƐĞĚŵĂŶƵĨĂĐƚƵƌŝŶŐ
ĨĂĐŝůŝƚŝĞƐǁŝůůďĞƉĂĐŬĂŐĞĚŝŶŐůĂƐƐ
ũĂƌƐƵƉƚŽϭƉŽƵŶĚĨŽƌƵƐĞŝŶ
ŵĂŶƵĨĂĐƚƵƌŝŶŐŵĂƌŝũƵĂŶĂĞĚŝďůĞ
ƉƌŽĚƵĐƚƐ͘d,ĐŽŶƚĞŶƚǁŝůůƌĂŶŐĞ
ĨƌŽŵϱϬͲϵϵй͘
:KROHVDOHCO2Oil-decarboxylatedornotdecarboxylated
Bulk Concentrate for Wholesale
WĞƐƚŝĐŝĚĞƐ͗,ĞƌďŝĐŝĚĞƐ͗&ƵŶŐŝĐŝĚĞƐ͗
Received by AMCO 12.04.17
222
&ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞϰŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
dLJƉĞ͗
WƌŽĚƵĐƚĞƐĐƌŝƉƚŝŽŶ͗
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
/ŶŐƌĞĚŝĞŶƚƐ͗
dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ
ƚŽŵĂƌŝũƵĂŶĂ
ĐŽŶĐĞŶƚƌĂƚĞƐ
^ƚĂŶĚĂƌĚWƌŽĚƵĐƚŝŽŶ
WƌŽĐĞĚƵƌĞĂŶĚ
ĞƚĂŝůĞĚ
DĂŶƵĨĂĐƚƵƌŝŶŐ
WƌŽĐĞƐƐ͗
ĞƉŝĐƚŝŽŶ͗
WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕
ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ
ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ
ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ
ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
Section 4 – Proposed Marijuana Concentrates and Marijuana Products
Pull & Snap
CO2Concentrate(forinhalationviadabbing)
Thiscannabisoilhasaveryparticularconsistency.Pull&Snapisknowntobeneithertoo
runnynortoosolidatroomtemperature.Becauseofitsconsistencyexistingsomewhere
betweenwaxandshatter,itstretcheswhenpulledbeforebreakingoffwithasignature
snappingsound.Thecolorwillrangefromverylightambertodarkamberandwillcomein
differentstrains,includingdifferentcannabinoids,orterpeneprofiles.
N/A
Pull&SnapisproducedusingCO2asasolventinaclosedloopsystem
VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .Afterextraction,the
oilisrefinedthroughwinterizationandthenmaybefurtherrefined
throughfractionationandthenplacedintoavacuumoven.
Received by AMCO 12.04.17
223
WĂŐĞϱŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
dLJƉĞ͗
WĂĐŬĂŐŝŶŐ
ĞƐĐƌŝƉƚŝŽŶ͗
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ
ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů
ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů
ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕
ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ
ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ
ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ
ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ
ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ
ĂƌĞƉƌĞĨĞƌƌĞĚ͘
Section 5 – Proposed Product Packaging and Sample Labels
KŶĞŐƌĂŵŽĨWƵůůΘ^ŶĂƉǁŝůůďĞ
ƉĂĐŬĂŐĞĚŝŶϱŵů͕ƌŽƵŶĚ͕ĐŚŝůĚͲ
ƌĞƐŝƐƚĂŶƚĐŽŶƚĂŝŶĞƌƐǁŝƚŚĂƐĐƌĞǁƚŽƉ
ůŝĚ͘dŚĞƚŽƚĂůd,ǁŝůůƌĂŶŐĞĨƌŽŵ
ϱϬͲϵϵй;ƚŚĞĂĐƚƵĂůd,ĐŽŶƚĞŶƚǁŝůů
ďĞůŝƐƚĞĚŽŶƚŚĞůĂďĞůƉĞƌƚĞƐƚŝŶŐ
ƌĞƐƵůƚƐͿ͘dŚĞĐŽŶƚĂŝŶĞƌǁŝůůďĞƉůĂĐĞĚ
ŝŶƚŽĂϭϵͬϭϲ͟džϭϵͬϭϲ͟džϭϭͬϰ͟
ƉĂƉĞƌďŽĂƌĚďŽdžǁŝƚŚĂƚĂŵƉĞƌƐĞĂů͘
,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůůƉƌŽǀŝĚĞƌĞƚĂŝů
ƐƚŽƌĞƐǁŝƚŚĨƵůůLJŽƉĂƋƵĞĞdžŝƚďĂŐƐƚŽ
ƉůĂĐĞƚŚĞďŽdžĞƐŝŶƚŽďĞĨŽƌĞ
ĐƵƐƚŽŵĞƌƐůĞĂǀĞƚŚĞƐƚŽƌĞ͘
Pull & Snap
CO2 Concentrate (for inhalation via dabbing)
^ĂŵƉůĞ>ĂďĞůƐ͗
WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ
ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ
ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ
ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ
ŽƵƚ͘
Received by AMCO 12.04.17
224
Received by AMCO 4.18.18
225
Received by AMCO 4.18.18
226
Closeup of box side with warning label:
Received by AMCO 4.18.18
227
Close up of boxes side with testing label:
Received by AMCO 4.18.18
228
[Form MJ-05] (rev 02/05/2016) Page 4 of 8
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-05: Marijuana Product Manufacturing Facility
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 306.520 - 3 AAC 306.525 and 3 AAC 306.560, and identify how the proposed establishment will
meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Type:
Product Description:
Details must include the
color, shape, and texture.
Ingredients:
This box is not applicable
to marijuana
concentrates
Standard Production
Procedure and
Detailed
Manufacturing
Process:
Depiction:
Provide a photograph,
drawing, or graphic
representation of the
expected appearance of
the final product.
Section 4 – Proposed Marijuana Concentrates and Marijuana Products
Ethanol&RQFHQWUDWHOil(forinhalationviavaporization)
Ethanol Concentrate for Refillable Vapor Cartridges
TheethanolconcentrateRLOvariesincolorfromabrightyellowtoan
ambercolorandisathickstickyliquid.
N/A
Ethanolconcentrateoilisproducedusingethanolasasolventtoextract
theoil VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After
extractiontheoilisrefinedinaclosedloopsystemtoremovetheethanol
andrecapturetheethanolforreuse.Theoilwillthenbeloadedintothe
syringes.
Received by AMCO 12.04.17
229
[Form MJ-05] (rev 02/05/2016) Page 5 of 8
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-05: Marijuana Product Manufacturing Facility
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 306.520 and 3 AAC 306.565 – 3 AAC 306.570, and identify how the proposed establishment will
meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Type:
Packaging
Description:
Details must include the
color(s), size, packaging
materials used, total
amount of THC, individual
serving sizes (if multiple),
and other specifics
showing compliance with
3 AAC 306.565. Attached
photos, drawings, or
graphic representations
are preferred.
Sample Labels:
Provide sample labels
showing how the labeling
information required in
3 AAC 306.570 will be set
out.
Section 5 – Proposed Product Packaging and Sample Labels
Ϭ͘ϱƚŽϭŐƌĂŵŽĨĞƚŚĂŶŽůĐŽŶĐĞŶƚƌĂƚĞŽŝůǁŝůůďĞ
ƉĂĐŬĂŐĞĚŝŶĂƉůĂƐƚŝĐŽƌŐůĂƐƐƐLJƌŝŶŐĞ;ϴϭ͘ϱŵŵ
ůŽŶŐͿǁŝƚŚƚŚĞƚŽƚĂůd,ƌĂŶŐŝŶŐĨƌŽŵϱϬͲϵϵй
;ƚŚĞĂĐƚƵĂůd,ĐŽŶƚĞŶƚǁŝůůďĞůŝƐƚĞĚŽŶƚŚĞ
ůĂďĞůƉĞƌƚŚĞƚĞƐƚŝŶŐƌĞƐƵůƚƐͿ͘dŚĞƐLJƌŝŶŐĞǁŝůůďĞ
ƉůĂĐĞĚŝŶƚŽĂĐůĞĂƌ͕ĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ͕ƉůĂƐƚŝĐƚƵďĞ
ĂŶĚƚŚĞŶŝŶƚŽĂƉĂƉĞƌďŽĂƌĚďŽdžĂƉƉƌŽdžŝŵĂƚĞůLJ
ϰ͘ϮϱΗ,džϮΗtdžϭ͘ϮϱΗ͘,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůů
ƉƌŽǀŝĚĞƚŚĞƌĞƚĂŝůƐƚŽƌĞǁŝƚŚĨƵůůLJŽƉĂƋƵĞĞdžŝƚ
ďĂŐƐƚŽƉůĂĐĞƚŚĞďŽdžĞƐŝŶƚŽďĞĨŽƌĞĐƵƐƚŽŵĞƌƐ
ůĞĂǀĞƚŚĞƐƚŽƌĞ͘
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ
ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
Ethanol&RQFHQWUDWHOil(forinhalationviavaporization)
Ethanol Concentrate for Refillable Vapor Cartridges
Received by AMCO 12.04.17
230
[Form MJ-05] (rev 02/05/2016) Page 4 of 8
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-05: Marijuana Product Manufacturing Facility
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 306.520 - 3 AAC 306.525 and 3 AAC 306.560, and identify how the proposed establishment will
meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Type:
Product Description:
Details must include the
color, shape, and texture.
Ingredients:
This box is not applicable
to marijuana
concentrates
Standard Production
Procedure and
Detailed
Manufacturing
Process:
Depiction:
Provide a photograph,
drawing, or graphic
representation of the
expected appearance of
the final product.
Section 4 – Proposed Marijuana Concentrates and Marijuana Products
Vape Cartridges
EthanolConcentrate2LO(forinhalationviavaporization)
TheethanolconcentrateRLOwithinthevapecartridgevariesincolorfrom
brightyellowtoanambercolorandisathickstickyliquid.
N/A
Ethanolconcentrateoilisproducedusingethanolasasolventtoextract
theoil VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After
extraction,theoilisrefinedinaclosedloopsystemtoremovetheethanol
andrecapturetheethanolforreuse.Theoilwillthenbeloadedintothe
vapecartridges.
Received by AMCO 12.04.17
231
[Form MJ-05] (rev 02/05/2016) Page 5 of 8
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-05: Marijuana Product Manufacturing Facility
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 306.520 and 3 AAC 306.565 – 3 AAC 306.570, and identify how the proposed establishment will
meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Type:
Packaging
Description:
Details must include the
color(s), size, packaging
materials used, total
amount of THC, individual
serving sizes (if multiple),
and other specifics
showing compliance with
3 AAC 306.565. Attached
photos, drawings, or
graphic representations
are preferred.
Sample Labels:
Provide sample labels
showing how the labeling
information required in
3 AAC 306.570 will be set
out.
Section 5 – Proposed Product Packaging and Sample Labels
Ϭ͘ϱƚŽϭŐƌĂŵŽĨĞƚŚĂŶŽů
ĐŽŶĐĞŶƚƌĂƚĞ
ŽŝůǁŝůůďĞƉĂĐŬĂŐĞĚŝŶ
ŐůĂƐƐϱϵŵŵǀĂƉĞĐĂƌƚƌŝĚŐĞƐ͘dŚĞ
ƚŽƚĂůd,ǁŝůůƌĂŶŐĞĨƌŽŵϱϬͲ
ϵϵйǁŝƚŚƚŚĞĂĐƚƵĂůd,ĐŽŶƚĞŶƚ
ůŝƐƚĞĚŽŶƚŚĞůĂďĞůƉĞƌƚŚĞƚĞƐƚŝŶŐ
ƌĞƐƵůƚƐ͘dŚĞĨŝůůĞĚĐĂƌƚƌŝĚŐĞǁŝůůďĞ
ƉůĂĐĞĚŝŶƚŽĂĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ͕
ĐůĞĂƌ͕ƉůĂƐƚŝĐƚƵďĞĂŶĚƚŚĞŶ
ŝŶƐĞƌƚĞĚŝŶƚŽĂƉĂƉĞƌďŽĂƌĚďŽdž
;ƐŚŽǁŶƚŽƚŚĞƌŝŐŚƚͿ͘dŚĞďŽdžŝƐ
ĂƉƉƌŽdžŝŵĂƚĞůLJϰ͘ϮϱΗ,džϮΗtdž
ϭ͘ϮϱΗĂŶĚǁŝůůŚĂǀĞĂƚĂŵƉĞƌ
ƐĞĂůƐƚŝĐŬĞƌ͘,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůů
ƉƌŽǀŝĚĞƚŚĞƌĞƚĂŝůƐƚŽƌĞƐǁŝƚŚĨƵůůLJ
ŽƉĂƋƵĞĞdžŝƚďĂŐƐƚŽƉůĂĐĞƚŚĞ
ďŽdžĞƐŝŶƚŽďĞĨŽƌĞƚŚĞĐƵƐƚŽŵĞƌ
ůĞĂǀĞƐƚŚĞƐƚŽƌĞ͘
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ
ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
ϭϰϰϯϮ
Vape Cartridges
EthanolConcentrate2LO(forinhalationviavaporization)
Received by AMCO 12.04.17
232
Form MJ-05] ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞ4ŽĨ8
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-05: Marijuana Product Manufacturing Facility
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Type:
Product Description:
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
Ingredients:
dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ
ƚŽŵĂƌŝũƵĂŶĂ
ĐŽŶĐĞŶƚƌĂƚĞƐ
Standard Production
Procedure and
Detailed
Manufacturing
Process:
Depiction:
WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕
ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ
ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ
ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ
ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
Section 4 – Proposed Marijuana Concentrates and Marijuana Products
Vape Cartridge with E-pen Kit
EthanolConcentrate2LO(forinhalationviavaporization)
EthanolFRQFHQWUDWHoilvapecartridgeswithe-penandbatterycharge
kit.Theethanolextractedconcentratewithinthevapecartridgevariesin
colorfromabrightyellowtoanambercolorandisathickstickyliquid.
N/A
Ethanolconcentrateoilisproducedusingethanolasasolventtoextract
theoil VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After
extraction,theoilisrefinedinaclosedloopsystemtoremovetheethanol
andrecapturetheethanolforreuse.Theoilwillthenbeloadedintothe
vapecartridges.
Received by AMCO 12.04.17
233
Form MJ-05] ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞ5ŽĨ8
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-05: Marijuana Product Manufacturing Facility
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů
ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Type:
Packaging
Description:
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ
ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ
ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů
ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů
ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕
ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ
ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ
ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ
ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ
ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ
ĂƌĞƉƌĞĨĞƌƌĞĚ͘
Sample Labels:
WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ
ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ
ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ
ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ
ŽƵƚ͘
Section 5 – Proposed Product Packaging and Sample Labels
Ϭ͘ϱƚŽϭŐƌĂŵŽĨĞƚŚĂŶŽů
ĐŽŶĐĞŶƚƌĂƚĞŽŝůǁŝůůďĞ
ƉĂĐŬĂŐĞĚŝŶƉůĂƐƚŝĐŽƌŐůĂƐƐϱϵŵŵ
ĐĂƌƚƌŝĚŐĞƐ͘dŚĞƚŽƚĂůd,ǁŝůů
ƌĂŶŐĞĨƌŽŵϱϬͲϵϵйǁŝƚŚƚŚĞ
ĂĐƚƵĂůd,ĐŽŶƚĞŶƚůŝƐƚĞĚŽŶƚŚĞ
ůĂďĞůƉĞƌƚŚĞƚĞƐƚŝŶŐƌĞƐƵůƚƐ͘dŚĞ
ĨŝůůĞĚĐĂƌƚƌŝĚŐĞǁŝůůďĞƉůĂĐĞĚŝŶƚŽ
ĂĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ͕ĐůĞĂƌ͕ƉůĂƐƚŝĐ
ƚƵďĞĂŶĚƚŚĞŶŝŶƐĞƌƚĞĚŝŶƚŽĂ
ƉĂƉĞƌďŽĂƌĚďŽdžǁŝƚŚĂŶĞͲƉĞŶ
ĂŶĚďĂƚƚĞƌLJĐŚĂƌŐĞƌ͘dŚĞďŽdžǁŝůů
ďĞĂƉƉƌŽdžŝŵĂƚĞůLJϳΗ,džϮ͘ϱΗtdž
ϭΗĂŶĚǁŝůůŚĂǀĞĂƚĂŵƉĞƌƐĞĂů
ƐƚŝĐŬĞƌ͘,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůů
ƉƌŽǀŝĚĞƌĞƚĂŝůƐƚŽƌĞƐǁŝƚŚĨƵůůLJ
ŽƉĂƋƵĞĞdžŝƚďĂŐƐƚŽƉůĂĐĞƚŚĞ
ďŽdžĞƐŝŶƚŽďĞĨŽƌĞƚŚĞĐƵƐƚŽŵĞƌ
ůĞĂǀĞƐƚŚĞƐƚŽƌĞ͘
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ
ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
ϭϰϰϯϮ
Vape Cartridge with E-pen Kit
EthanolConcentrate2LO(forinhalationviavaporization)
Received by AMCO 12.04.17
234
[Form MJ-05] (rev 02/05/2016) Page 4 of 8
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-05: Marijuana Product Manufacturing Facility
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 306.520 - 3 AAC 306.525 and 3 AAC 306.560, and identify how the proposed establishment will
meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Type:
Product Description:
Details must include the
color, shape, and texture.
Ingredients:
This box is not applicable
to marijuana
concentrates
Standard Production
Procedure and
Detailed
Manufacturing
Process:
Depiction:
Provide a photograph,
drawing, or graphic
representation of the
expected appearance of
the final product.
Section 4 – Proposed Marijuana Concentrates and Marijuana Products
:KROHVDOHEthanol&RQFHQWUDWHOil-decarboxylatedornotdecarboxylated
BulkEthanolConcentrate2LOforWholesaleWRRWKHUPDQXIDFWXHUV(foruseinmanufacturingedibles)
:KROHVDOHEthanolFRQFHQWUDWHoiltobesoldinbulktootherproduct
manufacturingfacilitiesforuseinmanufacturingmarijuanaedibleproducts.
Ethanolextractedoilwillvaryincolorfromaverylightambertodarkamberand
willcomeindifferentstrains,includingdifferentcannabinoids,terpeneprofiles,
flavonoids,anddistillates.Theoilisathickstickyliquid.
N/A
:KROHVDOHEthanolconcentrateoilisproducedusingethanolasasolvent
toextracttheoil VHH SURFHVV RXWOLQHG RQ SDJH IRU IXUWKHU GHWDLOV .
Afterextractiontheoilisrefinedinaclosedloopsystemtoremovethe
ethanolandrecapturetheethanolforreuse.Theoilwillthenbeloaded
intotheglassjars.
Received by AMCO 12.04.17
235
[Form MJ-05] (rev 02/05/2016) Page 5 of 8
Alaska Marijuana Control Board
Operating Plan Supplemental
Form MJ-05: Marijuana Product Manufacturing Facility
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 306.520 and 3 AAC 306.565 – 3 AAC 306.570, and identify how the proposed establishment will
meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Type:
Packaging
Description:
Details must include the
color(s), size, packaging
materials used, total
amount of THC, individual
serving sizes (if multiple),
and other specifics
showing compliance with
3 AAC 306.565. Attached
photos, drawings, or
graphic representations
are preferred.
Sample Labels:
Provide sample labels
showing how the labeling
information required in
3 AAC 306.570 will be set
out.
Section 5 – Proposed Product Packaging and Sample Labels
tŚŽůĞƐĂůĞEƚŚanol
ŽŶĐĞŶƚƌĂƚĞ oil sold in bulk to
other manufacturing facilities
will be packaged in glass jars
up to 1 pound for use in
manufacturing marijuana
edible products. THC content
will range from 50-99%.
:KROHVDOH(WKDQRO&RQFHQWUDWH2LOGHFDUER[\ODWHGRUQRWGHFDUER[\ODWHG
%XON(WKDQRO&RQFHQWUDWH2LOIRU:KROHVDOHWRRWKHUPDQXIDFWXHUV IRUXVHLQPDQXIDFWXULQJHGLEOHV
Received by AMCO 12.04.17
236
&ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿWĂŐĞϲŽĨϴ
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ
ϱϱϬtϳƚŚǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ
ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ
ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ
ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ
WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚƉƌĞŵŝƐĞƐ ǁŝůůŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘
ĞƐĐƌŝďĞƚŚĞŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚŵĂŶƵĨĂĐƚƵƌŝŶŐĨĂĐŝůŝƚLJ͛ƐƉůĂŶĨŽƌĚŝƐƉŽƐĂůŽĨĂŶLJĞdžƉŝƌĞĚŽƌŽƵƚĚĂƚĞĚŵĂƌŝũƵĂŶĂŽƌŵĂƌŝũƵĂŶĂ
ƉƌŽĚƵĐƚƚŚĂƚŝƐŶŽƚƐŽůĚŽƌƚƌĂŶƐĨĞƌƌĞĚƚŽĂŶŽƚŚĞƌůŝĐĞŶƐĞĚŵĂƌŝũƵĂŶĂĞƐƚĂďůŝƐŚŵĞŶƚ͗
Section 6 – Waste Disposal Plan
,ĞƌďĂŶ džƚƌĂĐƚƐĞdžƉĞĐƚƐƚŚĞĨŽůůŽǁŝŶŐŵĂƌŝũƵĂŶĂǁĂƐƚĞĂƚƚŚĞŝƌŵĂŶƵĨĂĐƚƵƌŝŶŐĨĂĐŝůŝƚLJ͖;ϭͿĐŽŶƚĂŵŝŶĂƚĞĚŽƌŝŶĨĞĐƚĞĚ
ŵĂƌŝũƵĂŶĂŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚƐ;ϮͿŵĂƌŝũƵĂŶĂŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚƐĚĞĞŵĞĚďLJƚŚĞůŝĐĞŶƐĞĞŽƌĂŵĂŶĂŐĞƌĂƐƵŶĨŝƚĨŽƌƐĂůĞ
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_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3022-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING THE
ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2018 AND ENDING JUNE
30, 2019 AND COMMITTING $750,000 OF GENERAL FUND, FUND BALANCE FOR CAPITAL
IMPROVEMENTS, AMENDING THE SALARY SCHEDULE IN KENAI MUNICIPAL CODE
CHAPTER 23.55 - PAY PLAN, AMENDING EMPLOYEE CLASSIFICATIONS IN KENAI
MUNICIPAL CODE CHAPTER 23.50, AND AMENDING POLICE DEPARTMENT
QUALIFICATION PAY IN KENAI MUNICIPAL CODE CHAPTER 23.55.
WHEREAS, it is a requirement of the Code of the City of Kenai, Alaska, that the City Council, not
later than the tenth day of June, adopt a budget for the following fiscal year and make
appropriation of the monies needed; and,
WHEREAS, committed fund balance represents resources which use is constrained by limitations
that Council imposes upon itself at its highest level of decision making, an Ordinance, and that
remain binding unless removed in the same manner; and,
WHEREAS, in recognition of deferred and ongoing maintenance needs of City roads and facilities,
the Council committed $750,000 for future renovation and improvements to City facilities; and,
WHEREAS, the fiscal year 2019 Budget includes a 0.20% increase to the City’s Salary Schedule;
and,
WHEREAS, the 0.20% increase is the combined change in the Anchorage Consumer Price Index,
second half over second half for 2016 and 2017; and,
WHEREAS, the pay increase will go into effect beginning July 1, 2018; and,
WHEREAS, the FY2019 Budget includes new positions, changes in positions and position
reclassifications requiring amendment to the City’s employee classifications; and,
WHEREAS, in an effort to address employee retention and recruitment issues for police officers,
the FY2019 proposes changes to qualification pay of police officers.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
as follows:
Section 1. That certain document entitled "City of Kenai Fiscal Year 2019 Annual Budget"
which is available for examination by the public in the Office of the City Clerk, the City’s website
and is incorporated herein by reference is hereby adopted as the budget for the City of Kenai for
the fiscal year commencing July 1, 2018 and ending June 30, 2019.
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Section 2. The following sums of money are hereby appropriated for the operations of the
City of Kenai for the fiscal year commencing on the first day of July, 2018, and ending the 30th
day of June, 2019, to be expended consistent with and subject to the restrictions, procedures,
and purposes set forth in the Code of the City of Kenai and to be expended substantially by line
item in the manner shown in the budget adopted by Section 1 hereof:
General Fund $16,136,305
Enterprise/Internal Service Funds:
Congregate Housing Fund 624,551
Employee Health Care Fund 2,391,806
Total Enterprise/Internal Service Funds 3,016,357
Special Revenue Funds:
Personal Use Fishery Fund 553,193
Water & Sewer Fund 2,659,817
Airport Fund 3,216,695
Senior Citizen Fund 978,944
Airport Land Sale Permanent Fund 1,230,025
General Land Sale Permanent Fund 162,999
Total Special Revenue Funds 8,801,673
Debt Service Fund – Library Expansion Bonds 178,398
Total All Funds $28,132,733
Section 3. Council herby commits $750,000 of Unassigned General Fund, Fund Balance for
future renovation and improvements to City facilities and streets.
Section 4. Amendment of Salary Schedule in Chapter 23.55 of the Kenai Municipal Code: That
the Salary Schedule in Kenai Municipal Code Chapter 23.55-Pay Plan, is hereby amended as
follows:
Classified Employees Excluding those engaged in fire protection activities.
Range A B C D E F AA BB CC
Step
1 10.29 10.55 10.80 11.06 11.32 11.58 11.83 12.09 12.35
1.1 10.80 11.07 11.34 11.61 11.88 12.15 12.42 12.69 12.96
2 11.49 11.78 12.06 12.35 12.64 12.93 13.21 13.50 13.79
2.1 12.10 12.40 12.71 13.01 13.31 13.61 13.92 14.22 14.52
2.2 12.79 13.11 13.43 13.75 14.07 14.39 14.71 15.03 15.35
2.3 13.44 13.78 14.11 14.45 14.78 15.12 15.46 15.79 16.13
2.4 15.69 16.08 16.47 16.87 17.26 17.65 18.04 18.44 18.83
2.5 17.78 18.22 18.67 19.11 19.56 20.00 20.45 20.89 21.34
3 17.89 18.34 18.78 19.23 19.68 20.13 20.57 21.02 21.47
4 18.79 19.26 19.73 20.20 20.67 21.14 21.61 22.08 22.55
5 19.73 20.22 20.72 21.21 21.70 22.20 22.69 23.18 23.68
6 20.70 21.22 21.74 22.25 22.77 23.29 23.81 24.32 24.84
7 21.75 22.29 22.84 23.38 23.93 24.47 25.01 25.56 26.10
8 22.85 23.42 23.99 24.56 25.14 25.71 26.28 26.85 27.42
9 23.99 24.59 25.19 25.79 26.39 26.99 27.59 28.19 28.79
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10 25.17 25.80 26.43 27.06 27.69 28.32 28.95 29.57 30.20
11 26.43 27.09 27.75 28.41 29.07 29.73 30.39 31.06 31.72
12 27.78 28.47 29.17 29.86 30.56 31.25 31.95 32.64 33.34
13 29.14 29.87 30.60 31.33 32.05 32.78 33.51 34.24 34.97
14 30.61 31.38 32.14 32.91 33.67 34.44 35.20 35.97 36.73
15 32.13 32.93 33.74 34.54 35.34 36.15 36.95 37.75 38.56
16 33.74 34.58 35.43 36.27 37.11 37.96 38.80 39.64 40.49
17 35.42 36.31 37.19 38.08 38.96 39.85 40.73 41.62 42.50
18 37.19 38.12 39.05 39.98 40.91 41.84 42.77 43.70 44.63
19 39.05 40.03 41.00 41.98 42.96 43.93 44.91 45.88 46.86
20 41.01 42.04 43.06 44.09 45.11 46.14 47.16 48.19 49.21
21 43.08 44.16 45.23 46.31 47.39 48.47 49.54 50.62 51.70
22 45.20 46.33 47.46 48.59 49.72 50.85 51.98 53.11 54.24
23 47.47 48.66 49.84 51.03 52.22 53.40 54.59 55.78 56.96
24 49.91 51.16 52.41 53.65 54.90 56.15 57.40 58.64 59.89
Classified Employees Engaged in Fire Protection Activities
Range A B C D E F AA BB CC
Step
13 20.81 21.33 21.85 22.37 22.89 23.41 23.93 24.45 24.97
14 21.86 22.41 22.95 23.50 24.05 24.59 25.14 25.69 26.23
15 22.96 23.53 24.11 24.68 25.26 25.83 26.40 26.98 27.55
16 24.11 24.71 25.32 25.92 26.52 27.12 27.73 28.33 28.93
17 25.31 25.94 26.58 27.21 27.84 28.47 29.11 29.74 30.37
Department Head Service Employees
Range Minimum Maximum
18 77,363 102,111
19 79,343 107,201
20 85,304 112,612
21 89,598 118,273
22 94,017 124,097
23 98,747 130,356
24 103,811 137,028
:
Section 5. Amendment of Employee Classification in Chapter 23.50 of the Kenai Municipal
Code: Employee Classifications in Kenai Municipal Code Chapter 23.50 –Classification Plan, is
hereby amended 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
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117 City Planner 16
118 Information Technology (IT) Manager 18
119 [HUMAN RESOURCE SPECIALIST/]
Assistant to City Manager/Special Projects [15] 18
120 Library Director* 18
121 Senior Center Director* 18
122 Parks and Recreation Director* 17
123 Human Resources [OFFICER] Director* [16] 21
(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/Manager [15] 17
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
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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] 14
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 Heads
Section 6. Amendment of Police Department Qualification Pay in Chapter 23.55 of the Kenai
Municipal Code: Police Department Qualification Pay in Kenai Municipal Code Chapter 23.55 –
Pay Plan, is hereby amended as follows:
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] 1,800/year
Advanced Certification $[1,800] 3,000/year
Police Sergeant
Intermediate Certification $ [900] 1,800/year
Advanced Certification $[1,800] 3,000/year
Police Lieutenant
Advanced Certification $[1,800] 3,000/year
Police Chief
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Advanced Certification $[1,800] 3,000/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 of Alaska Certification
Standards:
W & S II $ 300/year
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
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.
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Ordinance No. 3022-2018
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New Text Underlined; [DELETED TEXT BRACKETED]
Section 8. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect
July 1, 2018.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, City Clerk
Introduced: May 16, 2018
Enacted: June 6, 2018
Effective: July 1, 2018
256
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: May 8, 2018
SUBJECT: Ordinance 3022-2018 to adopt the FY19 Budget
The purpose of this memo is to summarize the changes that have been proposed to the FY19
Budget since disbursement of the draft document on April 16th, and to communicate the result of
these changes on each of the City’s operating funds. The following are the Administration’s
recommended changes that have been incorporated into the draft budget and appropriating
ordinance. New summary pages for the all funds, after incorporating the changes, are attached
for your review.
Administration Recommended Amendments:
General Fund
Revenues - PERS On-behalf funding $(534)
Expenditures:
Non-Departmental – PERS $(534)
Building:
Salaries $1,023
Overtime (13)
Leave 15
Medicare 15
PERS 222
Unemployment Insurance 4
Workers’ Compensation (44)
$1,222
Library:
Salaries 2,518
Leave (844)
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Ordinance 3022-2018
Medicare 25
Social Security 825
PERS (2,328)
Unemployment Insurance 9
Workers’ Compensation 6
Health & Life Insurance (1)
Supplemental Retirement (423)
$( 213)
Projected Lapse ( 24)
Total General Fund Change $ 985
These General Fund changes are the result of the following items:
1. The reclassification of the Building Maintenance Lead position was incorrectly calculated
as a promotion. Promotion of an employee entitles an employee to at least a one-step
increase in pay while reclassification moves the employee to the most equivalent pay
range in the new step without reducing the employee’s current rate of pay. This correction
resulted in a $1,419 decrease in the Building Department, a $60 decrease in Non-
Departmental PERS, a decrease in General Fund PERS revenue of $60, and a $74
decrease in projected lapse.
2. The administration is recommending amendment to the job description of the Building
Official resulting in an employee promotion from Building Official to Building
Official/Manager. Classification of the existing position is a range 15 and the new position
classifies at a range 17. The change in this position resulted in a $2,641 increase in the
Building Department, a $116 increase in Non-Departmental PERS, an increase in General
Fund PERS revenue of $116, and a $138 increase in projected lapse.
3. The draft budget included elimination of one, twenty-four hour Library Aide position.
Elimination of the position is contingent upon closure of the Library for three hours on
Saturdays or complete closure on Sundays. Subsequent to issuance of the draft, two
additional twenty-four hour Library Aides resigned their positions providing additional
opportunity for staff restructuring. The administration is now recommending elimination of
three, twenty-four hour Library Aide positions, addition of one, forty-hour Library Aide and
one, fourteen-hour Library Aide positions. This additional restructuring will not result in
any change to the Library’s operating hours. The financial impact of this change is a $213
decrease in the Library Department, a $590 decrease in Non-Departmental PERS, a
decrease in General Fund PERS revenue of $590, and a $40 increase in projected lapse.
Airport Fund
Revenues - PERS On-behalf funding $(30)
Expenditures:
Terminal:
Salaries $(270)
Overtime (5)
Leave (11)
Medicare (4)
PERS (76)
258
Page 3 of 3
Ordinance 3022-2018
Unemployment Insurance (1)
Workers’ Compensation (13)
$(380)
Other Buildings & Areas:
Salaries $(270)
Overtime (5)
Leave (11)
Medicare (4)
PERS (76)
Unemployment Insurance (1)
Workers’ Compensation (13)
$(380)
Projected Lapse 46
Total General Fund Change $ 684
These Airport Fund changes are the result of correcting the reclassification of the Building
Maintenance Lead position as described previously in the General Fund.
These are the only proposed amendments to the April 16, 2018 Draft City Budget which have
been included in proposed budget adoption ordinance. In addition to these proposed changes to
the Draft Budget, the budget adoption ordinance now includes amendment to the City’s salary
schedule, amendments to the City’s employee classifications, and amendments to the Police
Department’s qualification pay sections of the Kenai Municipal Code. Each of these sections are
a result of proposed changes included in the draft budget. Your support for passage of the budget
adoption ordinance is respectfully requested.
attachments
259
City of Kenai
Fiscal Year 2019 Operating Budget
General Fund
Budget Projection
Original
Actual Actual Budget Projection Requested Projection Projection
FY2016 FY2017 FY2018 FY2018 FY2019 FY2020 FY2021
TAXABLE VALUES (000'S)851,638$ 851,638$ 876,530$ 871,076$ 877,219$ 899,866$ 923,376$
MILL RATE 4.35 4.35 4.35 4.35 4.35 4.35 4.35
REVENUES
Property & Sales Taxes
Property Tax 3,782,539 3,919,797 3,874,650 3,862,206 3,877,585 3,986,129 4,086,352
Sales Tax 7,247,938 6,715,501 6,962,613 7,019,621 7,124,915 7,302,844 7,485,614
Total Property & Sales Taxes 11,030,477 10,635,298 10,837,263 10,881,827 11,002,500 11,288,973 11,571,966
State/Federal Revenue:
PERS Funding 379,467 288,137 204,840 204,840 386,254 397,842 409,777
Community Assistance 415,798 278,232 170,598 250,852 173,026 173,026 173,026
Fish Tax 198,649 165,087 165,000 120,000 165,000 169,950 175,049
Other 155,849 83,990 58,000 70,600 58,000 60,900 63,945
Total State/Federal Revenue 1,149,763 815,446 598,438 646,292 782,280 801,718 821,797
Other Revenue
Licenses and Permits 62,629 48,557 63,500 63,500 63,500 65,405 67,367
Ambulance Fees 408,558 419,940 425,000 425,000 425,000 437,750 450,883
Interest 76,212 35,762 100,000 50,000 100,000 153,530 297,553
Other 587,224 613,358 605,895 620,175 736,541 758,637 781,396
Total Other Revenue 1,134,623 1,117,617 1,194,395 1,158,675 1,325,041 1,415,322 1,597,199
Total Revenues 13,314,863 12,568,361 12,630,096 12,686,794 13,109,821 13,506,013 13,990,962
Transfer From Other Funds
Charges to other funds 1,458,900 1,494,200 1,492,400 1,492,400 1,530,900 1,576,827 1,624,132
Capital Projects / Special Revenue - 124,303 400,000 400,000 283,221 50,000 50,000
Enterprise 38,300 34,000 39,000 39,000 43,300 44,599 45,937
Trust Fund - 149,802 150,993 161,561 162,999 164,449 165,913
Total Transfers 1,497,200 1,802,305 2,082,393 2,092,961 2,020,420 1,835,875 1,885,982
Total Revenues and Transfers 14,812,063 14,370,666 14,712,489 14,779,755 15,130,241 15,341,888 15,876,944
EXPENDITURES/APPROPRIATIONS
General Government 2,865,713 2,682,321 2,966,591 2,966,591 3,400,823 3,472,702 3,542,156
Public Safety 6,987,609 6,679,790 7,299,722 7,299,722 7,590,185 7,741,989 7,896,829
Public Works 2,251,812 2,148,432 2,375,314 2,375,314 2,495,378 2,545,286 2,596,192
Parks, Recreation & Cultural 1,993,809 1,984,887 2,125,189 2,135,189 2,077,073 2,118,614 2,160,986
Total Operating Expenditures 14,098,943 13,495,430 14,766,816 14,776,816 15,563,459 15,878,591 16,196,163
Transfers or Non-Operating 686,253 745,130 826,788 826,788 572,846 574,116 583,839
Total Expenditures/Appropriations 14,785,196 14,240,560 15,593,604 15,603,604 16,136,305 16,452,707 16,780,002
Total Surplus (Deficit)26,867 130,106 (881,115) (823,849) (1,006,064) (1,110,819) (903,058)
Projected Lapse - 5%- - 738,341 738,841 778,173 793,930 809,808
Adjusted Surplus (Deficit)26,867 130,106 (142,774) (85,008) (227,891) (316,889) (93,250)
Beginning Fund Balance 10,391,233 10,418,100 10,215,499 10,548,206 10,463,198 10,235,307 9,918,418
Ending Fund Balance 10,418,100 10,548,206 10,072,725 10,463,198 10,235,307 9,918,418 9,825,168
Restricted (588,937) (588,937) (624,937) (664,599) (700,599) (736,599) (772,599)
Committed (409,746) (409,746) (6,868,847) (7,076,914) (7,103,079) (6,747,128) (6,696,366)
Assigned (1,409,610) (1,409,610) (2,382,699) (2,417,467) (2,431,629) (2,434,691) (2,356,203)
Unassigned Fund Balance 8,009,807$ 8,139,913$ 196,242$ 304,218$ -$ -$ -$
260
City of Kenai
Fiscal Year 2019 Operating Budget
Budget Projection
Fund: 006 - Personal Use Fishery Fund
Original Manager
Actual Actual Budget Projection Proposed
FY2016 FY2017 FY2018 FY2018 FY2019
Revenues
PERS Grant 2,167$ 2,688$ 2,312$ 2,312$ 4,169$
Usage Fees
Beach Parking 182,739 182,853 183,000 170,429 175,000
Beach Camping 230,729 238,752 239,000 210,269 225,000
Dock Launch & Park 133,181 128,109 130,000 111,848 115,000
Dock Parking Only 15,238 14,807 15,000 12,009 15,000
Participant Drop-off Fee - 10,717 11,000 7,481 8,000
Total Usage Fees 561,887 575,238 578,000 512,036 538,000
Miscellaneous Revenues
Investment earnings 1,580 671 750 750 750
Other (6,888) (3,680) (4,500) (1,126) (1,500)
Total Miscellaneous Revenues (5,308) (3,009) (3,750) (376) (750)
Total Revenue 558,746 574,917 576,562 513,972 541,419
Expenditures
Public Safety 113,943 116,875 109,195 109,195 96,429
Streets 34,116 53,068 51,506 51,506 60,904
Boating Facility 71,417 72,668 72,347 72,347 71,926
Parks, Recreation & Beautification 266,996 268,686 279,079 279,584 273,934
Total Expenditures 486,472 511,297 512,127 512,632 503,193
Transfers - General Fund - - - - 50,000
Total Expenditures & Transfers 486,472 511,297 512,127 512,632 553,193
Contribution To/(From) Fund Balance:72,274 63,620 64,435 1,340 (11,774)
Projected Lapse - - 19,981 5,000 21,036
Adjusted (Deficit)/Surplus 72,274 63,620 84,416 6,340 9,262
Beginning Fund Balance 67,662 139,936 149,066 203,556 209,896
Ending Fund Balance 139,936$ 203,556$ 233,482$ 209,896$ 219,158$
261
City of Kenai
Fiscal Year 2019 Operating Budget
Budget Projection
Fund: 010 - Water and Sewer Fund
Original Manager
Actual Actual Budget Projection Proposed
FY2016 FY2017 FY2018 FY2018 FY2019
Revenues
PERS Grant 30,836$ 23,142$ 17,228$ 17,228$ 33,668$
Usage Fees
Service Hook-up 4,001 2,205 3,927 3,918 3,927
Residential Water 716,095 791,580 832,279 830,339 832,279
Commercial Water 283,168 315,494 350,141 349,325 350,141
Residential Sewer 1,136,029 1,170,897 1,182,299 1,179,542 1,182,299
Commercial Sewer 430,949 445,805 494,807 493,654 494,807
Total Usage Fees 2,570,242 2,725,981 2,863,453 2,856,778 2,863,453
Miscellaneous Revenues
Penalty and Interest 39,679 35,839 43,250 43,250 43,250
Interest Earnings 10,896 5,117 16,000 16,000 16,000
Other 2,812 4,361 3,000 23,000 3,000
Total Miscellaneous Revenues 53,387 45,317 62,250 82,250 62,250
Total Revenues 2,654,465 2,794,440 2,942,931 2,956,256 2,959,371
Expenditures
Water Department 829,080 719,328 864,277 914,259 950,581
Sewer Department 384,963 723,136 513,830 520,147 499,660
Wastewater Treatment Plant Department 923,883 987,096 1,075,372 1,086,894 1,209,576
Total Expenditures 2,137,926 2,429,560 2,453,479 2,521,300 2,659,817
Contribution To/(From) Fund Balance:516,539 364,880 489,452 434,956 299,554
Projected Lapse (6%)- - 126,260 127,709 137,047
Adjusted (Deficit)/Surplus 615,712 562,665 436,601
Beginning Fund Balance 1,189,013 1,705,552 1,614,533 2,070,432 2,633,097
Ending Fund Balance 1,705,552$ 2,070,432$ 2,230,245$ 2,633,097$ 3,069,698$
262
City of Kenai
Fiscal Year 2019 Operating Budget
Fund: 008 - Airport Fund
Department: Airport Fund Summary
Original Manager
Actual Actual Budget Projection Proposed
FY2016 FY2017 FY2018 FY2018 FY2019
Revenues
State & Federal Grants 30,048$ 29,726$ 23,552$ 23,552$ 36,385$
Usage Fees
Fuel Sales 1,372 7,621 10,000 10,000 10,000
Fuel Flowage 27,772 29,207 35,000 35,000 35,000
Float Plane 812 620 1,500 1,500 1,500
Tie Down 5,576 7,403 7,500 7,500 7,500
Landing 418,644 529,132 375,000 375,000 425,000
Plane Parking 5,526 5,725 5,000 5,000 5,000
Total Usage Fees 459,702 579,708 434,000 434,000 484,000
Rents and Leases
Land 687,256 674,781 650,117 650,117 547,610
Total Rents and Leases 687,256 674,781 650,117 650,117 547,610
Miscellaneous
Penalty and Interest 5,886 8,321 5,000 5,000 5,000
Interest on Investments 33,213 15,598 25,000 25,000 25,000
Other 9,627 12,666 25,000 25,000 10,000
Total Miscellaneous 48,726 36,585 55,000 55,000 40,000
Terminal Revenue
Parking Fees 261,036 233,284 300,000 300,000 250,000
Rents and Leases 283,525 308,275 317,723 317,723 334,648
Penalty and Interest 1,957 1,728 4,500 4,500 4,500
Car Rental Commissions 226,130 156,497 195,000 195,000 175,000
Advertising Commissions 10,315 7,421 9,000 9,000 9,000
Miscellaneous 608 1,145 1,500 1,500 1,500
Total Terminal Revenue 783,571 708,350 827,723 827,723 774,648
Transfers In
Airport Land Trust Fund 1,142,714 1,175,414 1,191,711 1,210,348 1,230,025
Total Transfers In 1,142,714 1,175,414 1,191,711 1,210,348 1,230,025
Total Revenues 3,152,017 3,204,564 3,182,103 3,200,740 3,112,668
Expenditures
Airport Terminal 548,308 578,256 645,425 645,425 630,617
Airport Airfield 1,522,298 1,640,517 1,697,523 1,697,643 1,732,358
Airport Administration 287,087 411,745 336,914 384,728 650,221
Airport Other Buildings and Areas 313,741 139,947 167,211 248,458 165,025
Airport Training Facility 32,620 40,295 38,326 38,326 38,474
Total Expenditures 2,704,054 2,810,760 2,885,399 3,014,580 3,216,695
Contribution To/(From) Fund Balance:447,963 393,804 296,704 186,160 (104,027)
Projected Lapse (6%)- - 116,940 117,731 116,314
Adjusted (Deficit)/Surplus 413,644 303,891 12,287
Beginning Fund Balance 4,234,539 4,682,502 5,073,483 5,076,306 5,380,197
Ending Fund Balance 4,682,502$ 5,076,306$ 5,487,127$ 5,380,197$ 5,392,484$ 263
City of Kenai
Fiscal Year 2019 Operating Budget
Fund: 019 - Senior Citizens Fund
Department: Title III Summary
Original Manager
Actual Actual Budget Projection Proposed
FY2016 FY2017 FY2018 FY2018 FY2019
Revenues
State Grants 196,978$ 208,654$ 198,299$ 198,299$ 203,626$
USDA Grant 15,780 22,415 15,000 15,000 27,000
Choice Waiver 252,604 220,419 225,000 200,000 200,000
KPB Grant 126,207 126,207 126,207 126,207 126,207
United Way 9,582 5,977 5,977 15,000 3,000
Rents and Leases 12,971 8,260 13,000 13,000 13,000
Donations 13,497 6,975 30,000 65,605 32,000
Donation - Senior Connection 10,000 7,677 50,000 50,000 50,000
Meal Donations 61,066 75,321 75,000 75,000 82,500
Transfer from General Fund - Operations 88,339 183,291 196,730 185,184 171,274
Transfer from General Fund - Capital - - - - 45,670
Other (621) 306 300 300 300
Total Revenue 786,403 865,502 935,513 943,595 954,577
Expenditures
Senior Citizen Access 175,262 153,905 166,319 166,319 157,288
Congregate Meals 179,434 218,035 236,396 239,021 285,511
Home Meals 148,048 176,509 195,103 226,583 210,000
Senior Transportation 108,562 67,803 80,523 80,523 81,346
Choice Waiver 331,888 249,525 281,213 281,213 244,799
Total Expenditures 943,194 865,777 959,554 993,659 978,944
Contribution To/(From) Fund Balance:(156,791) (275) (24,041) (50,064) (24,367)
Projected Lapse (3%)- - 24,041 50,064 24,367
Adjusted (Deficit)/Surplus (156,791) (275) - - -
Beginning Fund Balance 157,066 275 - - -
Ending Fund Balance 275$ -$ -$ -$ -$
264
City of Kenai
Fiscal Year 2019 Operating Budget
Budget Projection
Fund: 009 - Congregate Housing Fund
Original Manager
Actual Actual Budget Projection Proposed
FY2016 FY2017 FY2018 FY2018 FY2019
Revenues
PERS Grant 2,077$ 1,780$ 1,192$ 1,192$ 1,866$
Rents and Leases 382,253 386,613 388,345 388,345 390,515
Interest on Investments 3,880 1,822 4,000 4,000 4,000
Miscellaneous 77 95 - - -
Total Revenues 388,287 390,310 393,537 393,537 396,381
Expenses 425,986 498,181 452,133 500,333 503,551
Net Income (loss)(37,699) (107,871) (58,596) (106,796) (107,170)
Beginning Retained Earnings 418,765 474,257 496,442 506,832 539,893
Capital Asset Acquistions (46,666) - - - (121,000)
Allocated to Capital Projects - - - - -
Credit for Depreciation 139,857 140,446 139,857 139,857 140,446
Available Retained Earnings 474,257$ 506,832$ 577,703$ 539,893$ 452,169$
265
City of Kenai
Fiscal Year 2019 Operating Budget
Fund: 011 - Employee Health Care Fund
Department: 18 - Health Care Fund Summary
Original Manager
Actual Actual Budget Projection Proposed
FY2016 FY2017 FY2018 FY2018 FY2019
Revenues
Charge for Services -$ -$ 1,916,987$ 1,916,987$ 2,148,495$
Participant premiums - - 226,296 226,296 243,552
Transfer from Other Funds - 117,637 - - -
Interest Earnings - - 1,000 1,000 1,000
Total Revenues - 117,637 2,144,283 2,144,283 2,393,047
Expenses - - 2,143,283 2,143,283 2,391,806
Net Income (loss)- 117,637 1,000 1,000 1,241
Beginning Retained Earnings - - 100,000 117,637 118,637
Available Retained Earnings -$ 117,637$ 101,000$ 118,637$ 119,878$
266
City of Kenai
Fiscal Year 2019 Operating Budget
Budget Projection
Land Sales Permanent Funds
Original Manager
Actual Actual Budget FY2018 Proposed
FY2016 FY2017 FY2018 Projection FY2019
FUND 082-52 Airport Land Sales Permanent Fund
Revenues
Acct. 36610 Investments Earnings 447,392$ 2,055,039$ 1,445,101$ 1,520,536$ 1,520,536$
Acct. 36645 Interest on Land Sale Contracts 14,238 - 10,000 10,000 10,000
Acct. 33640 Land Sales 7,714 362,731 - - -
Total Revenue 469,344 2,417,770 1,455,101 1,530,536 1,530,536
Expenses
Transfer to Airport Land System Fund 1,142,714 1,175,414 1,191,711 1,210,348 1,230,025
Contributions To/(From) Fund Balance (673,370) 1,242,356 263,390 320,188 300,511
Beginning Fund Balance 23,711,029 23,037,659 23,295,554 24,280,015 24,600,203
Ending Fund Balance 23,037,659$ 24,280,015$ 23,558,944$ 24,600,203$ 24,900,714$
FUND 081-52 General Land Sales Permanent Fund
Revenues
Acct. 36610 Investments Earnings 54,331$ 256,966$ 173,620$ 173,620$ 189,844$
Acct. 36645 Interest on Land Sale Contracts - - - - -
Acct. 33640 Land Sales - - - - -
Total Revenue 54,331 256,966 173,620 173,620 189,844
Expenses
Transfer to General Fund - 149,802 150,993 161,561 162,999
Contributions To/(From) Fund Balance 54,331 107,164 22,627 12,059 26,845
Beginning Fund Balance 2,888,444 2,942,775 2,965,790 3,049,939 3,061,998
Ending Fund Balance 2,942,775$ 3,049,939$ 2,988,417$ 3,061,998$ 3,088,843$
267
City of Kenai
Fiscal Year 2019 Operating Budget
Fund 048 - Debt Service
Original Manager
Actual Actual Budget Projection Proposed
FY2016 FY2017 FY2018 FY2018 FY2019
Revenues
Bond Interest Subsidy 34,884 34,959 34,940 34,996 34,996
Transfer from General Fund 143,914 140,439 142,058 142,002 143,402
Total Revenue 178,798 175,398 176,998 176,998 178,398
Expenditures
Parks, Recreation & Culture 178,798 175,398 176,998 176,998 178,398
Contributions To/From Fund Balance - - - - -
Beginning Fund Balance - - - - -
Ending Fund Balance -$ -$ -$ -$ -$
268
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 3023-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING FY2018
GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $13,747 AND FY2019
GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $35,996 IN THE
GENERAL FUND PARKS, RECREATION AND BEAUTIFICATION DEPARTMENT FOR THE
RECEIPT OF A GRANT FROM THE UNITED STATES ENVIRONMENTAL PROTECTION
AGENCY PASSED THROUGH THE STATE OF ALASKA DEPARTMENT OF
ENVIRONMENTAL CONSERVATION FOR BACTERIA LEVEL MONITORING ON THE CITY’S
BEACHES DURING THE 2018-2019 PERSONAL USE FISHERY.
WHEREAS, the State of Alaska Department of Environmental Conservation has issued a grant
to the City for bacteria level monitoring during the 2018-2019 Personal Use Fishery; and,
WHEREAS, monitoring will be provided through a cooperative agreement with the Kenai
Watershed Forum; and,
WHEREAS, it is in the best interest of the City to monitor the bacteria level on its beaches to
protect public health; and,
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
Section 1. That FY2018 estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues:
Federal Grants - Other $13,747
Increase Appropriations:
Parks, Recreation & Beautification –
Professional Services $13,747
Section 2. That FY2019 estimated revenues and appropriations be increased as follows:
General Fund:
Increase Estimated Revenues:
Federal Grants - Other $35,996
Increase Appropriations:
Parks, Recreation & Beautification –
Professional Services $35,996
269
Ordinance No. 3023-2018
Page 2 of 2
_____________________________________________________________________________________
New Text Underlined; [DELETED TEXT BRACKETED]
Section 3. That the City Manager is authorized to accept a grant and expend the funds to
fulfill the purpose of this Ordinance.
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), Section 1 of this ordinance shall
take effect upon adoption. Section 2 of this ordinance shall take effect July 1, 2018.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018.
BRIAN GABRIEL SR., MAYOR
ATTEST:
___________________________________
Jamie Heinz, City Clerk
Introduced: May 16, 2018
Enacted: June 6, 2018
Effective: June 6, 2018
& July 1, 2018
270
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Robert J. Frates, Parks & Recreation Director
DATE: May 7, 2018
SUBJECT: Ordinance 3023-2018 – DEC Grant for Bacteria Level Monitoring
in the Kenai River
______________________________________________________________________
The purpose of this correspondence is to recommend Council approval of the above
referenced ordinance. This action provides for the appropriation of funds to support testing
for coliform and enterococci bacteria in the Kenai River during the Personal Use Fishery
by the Kenai Watershed Forum (KWF).
This work will be accomplished through a cooperative agreement with funding being
passed through to the KWF. This mirrors a previous process utilized in 2011-2014.
Thank you for your attention in this matter.
271
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary L. Bondurant
DATE: May 11, 2018
SUBJECT: Action/Approval – Special Use Permit to HDL Engineering
Consultants, LLC
HDL Engineering Consultants, LLC, is requesting renewal of the special use permit for a soils test
lab and equipment storage. They have been leasing this area since April 2016.
This special use permit will be effective for three months from April 1, 2018 to June 30, 2018 with
a new permit issued effective July 1, 2018 to June 30, 2019 so as to be calendared with the fiscal
year.
HDL is current in all fees owed to the Airport and a current Certificate of Insurance is on file.
Airport Commission reviewed the request at the May 10, 2018 Commission meeting and
recommends Council approval.
Thank you for your consideration.
Does Council recommend the City Manager enter into a Special Use Permit with
HDL Engineering Consultants, LLC, for a building and ground lease?
272
SPECIAL USE PERMIT 2018
THE CITY OF KENAI (City) for the considerations and pursuant to the conditions and
requirements set forth below, hereby grants to HDL ENGINEERING CONSULTANTS,
LLC (Permittee), whose address is 10735 Kenai Spur Highway, Suite lB, Kenai, AK 99611 ,
the non-exclusive right to use that area described below:
Tract A FBO Subdivision consisting of approximately 8,040 square
feet in the northwest corner (the Premises), including the
approximately 930 square feet building located thereon.
and as further shown in the attached Exhibit A.
1. TERM. This special use permit shall commence on April 1, 2018 and terminate June
30, 2018 .
2. PERMIT FEES. The Permittee shall pay a permit fee of $543.00 plus applicable
sales tax per month ($418 .00 for building and land rent and $125 .00 for electricity for the
term of this Permit).
In addition, the Permittee shall be charged $76.10 per month for water and sewer until June
30,2018 ..
Permittee shall pay the City the monthly fee on or before the first day of each month
beginning April 2018 .
Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai
and delivered to the City Administration Building, 210 Fidalgo A venue, Kenai, Alaska
99611 on or before the first of each month.
In addition to the permit fee specified above, Permittee agrees to pay to the appropriate
parties all levies, assessments, and charges as hereinafter provided:
A . Sales tax now enforced, or levied in the future , computed upon the permit fee
payable in monthly installments whether said fee is paid on a monthly or
yearly basis;
B. All necessary licenses and permits, pay all lawful taxes and assessments
which, during the term hereof may become a lien upon or which may be
levied by the State, Borough, City, or by any other tax levying body, upon
any taxable possessory right which Permittee may have in or to the Premises
by reason of its use or occupancy or by reason of the terms of this Permit,
Special Use Permit-HDL Engineering Consultants, LLC Page 1of6
273
provided however, that nothing herein contained shall prevent Permittee
from contesting any increase in such tax or assessment through procedures
provided for by law .
C. Interest at the rate of 8% per annum and penalties of 10% of any amount of
money owed under this Special Use Permit, which money or fee not paid on
or before the date it becomes due.
D. Costs and expenses incident to this Special Use Permit including, but not
limited to, recording costs.
3 . USE. The use of the Premises by Permittee is limited to the purposes specified
herein: Permittee shall use the Premises only for a Soils test lab and equipment storage.
Any and all needed building or site modifications must be separately approved in
writing by the Airport Manager and the site and existing improvements must be
restored to as good or better condition than the site and improvements were in prior
to modification by Permittee.
This use i s subject to the reasonable administrative actions of the City of Kenai for the
protection and maintenance of the Premises and of adjacent and contiguous lands or
facilities .
4. I NSURANCE. Permittee shall secure and keep in force adequate insurance, as
stated below, to protect City and Permittee . Where specific limits are stated, the limits are
the minimum acceptable limits . If Permittee's insurance policy contains higher limits, City
is entitled to coverage to the extent of the higher limits.
A. Commercial General L iability insurance, including Premises , all operations ,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1 ,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged
in work under this Permit or at the Premises as required by AS 23.30 .045 . Permittee
is further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
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 Permittee uses on the Airport. The policy must name the
Special Use Permit-HDL Eng ineering Consultants, LLC Page 2of6
274
City 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.
11. Pennittee shall submit to the City 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.
ui. Permittee shall request a waiver of subrogation agai nst City from
Pennittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
1v. Provide the City 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 City by April,
2018. The effective date of the insurance shall be no later than April,
2018.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
5. IND EMNITY, DEFEND, AND HOLD H ARMLESS AGREEMENT. Permittee
agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers , agents,
employees , and volunteers from and against all actions, damages, costs , liability, claims ,
losses , judgments, penalties, and expenses of every type and description, including any
fees and/or costs reasonably incurred by the City'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 or result from any negligent act or omission or willful
misconduct of the Permittee in connection with its use of the Premises . The Permittee shall
not be required to indemnify, defend , and hold harmless, the City of Kenai, its officers,
agents , employees , and volunteer s for the independent negligence of the City of Kenai. If
there are Liabilities for the joint negligent act, or omission, or willful misconduct of the
Special Use Permit-HDL Engineering Consultants , LLC Page 3of6
275
Permittee and the City of Kenai , the indemnification and hold harmless obligation shall be
apportioned on a comparative fault bas is.
6. PERMITTEE'S OBL IGATION TO PREVENT AND REMOVE LIENS.
Permittee will not permit any liens including, but not limited to , mechanics', laborers',
material men's, or mining liens or any other liens obtainable or available under existing
law, to stand against the Premises or improvements on the Premises for any labor or
material furnished to Permittee or to any related entity or claimed to have been furnished
to Permittee or to the Permittee 's agents , contractors, or related entities , in connection with
materials supplied to Permittee for its activities on the Premises and/or in connection with
work of any character performed or claimed to have been performed on the Premises or
improvements by or at the direction or sufferance of Permittee. Provided, however, the
Permittee shall have the right to provide a bond as contemplated by Alaska law and contest
the validity or amount of any such lien or claimed lien. Upon a final determination of the
lien or claim for lien, the Permittee will immediately pay any judgment rendered with all
proper costs and charges and shall have such lien released or judgment satisfied at
Perrnittee's own expense.
7. PERSONALITY. Permittee shall remove any and all personal property, including
all vehicles , from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25.00 per day. The City of
Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its
customers .
8. FORBEARANCE. Failure to insist upon a strict compliance with the terms,
conditions, and/or any requirement herein contained, or referred to, shall not constitute or be
construed as a waiver or relinquishment of the right to exercise such terms , conditions or
requirements .
9. TERMINATION; DEFAULT. This Permit may be terminated by either party
hereto by giving 30 days advance written notice to the other party. City may terminate the
Permit immediately, or upon notice shorter than 30 days , to protect public health and safety
or due to a failure of Permittee to comply with condition or term of this Permit which
failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
Special Use Permit-HDL Engineering Consultants, LLC Page 4of6
276
10. NO DI SCRIMINATION. Perrnittee will not discriminate on the grounds of race,
color, religion, national origin, ancestry, age, or sex against any patron, employee,
applicant for employment, or other person or group of persons in any manner prohibited
by federal or State law. Permittee recognizes the right of the City to take any action
necessary to enforce this requirement.
11. ASSIGNMENT. Permittee may not assign, by grant or implication, the whole or
any part of this Permit, the Premises, or any improvement on the Premises without the
written consent of the City. Unless the City specifically releases the Permittee in writing,
the City may hold the Perrnittee responsible for performing any obligation under this
Permit which an assignee fails to perform.
12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall
assume all risks incurred in its use of the Premises.
13. NO JOINT VENTURE. The City shall not be construed or held to be a partner or
joint venturer of Permittee in the conduct of its business or activities on the Premises .
14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of
this permit shall survive the cancellation, termination or expiration of this permit.
15. AUTHORITY. By signing this Permit, Permittee represents that it has read this
agreement and it agrees to be bound by the terms and conditions herein and that the person
signing this Permit is duly authorized by the company to bind the company hereunder.
CITY OF KENAI
By:~~~~~~~~~~
Paul Ostrander
City Manager
HDL ENGINEERING
CONSULT ANTS, LLC
By:
~~~~~~~~~~
Dennis Linnell
Principal Civil Engineer
Special Use Permit-HDL Engineering Consultants, LLC Page 5of6
277
ACKNOWLEDGMENTS
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on the __ day of 2018, Paul Ostrander,
City Manager, of the City of Kenai, an Alaska municipal corporation, 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 Dennis Linnell, Principal Civil Engineer, HDL
Engineering Consultants, LLC , on behalf of the Company.
Notary Public for Alaska
My Commission Expires : ____ _
ATTEST:
Jamie Heinz, City Clerk
SEAL:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
Special Use Permit-HDL Engineering Consultants , LLC Page 6of6
278
Tract A FBO Subdivision
0 75 150 300 Feet
·~~ .. ' ' '14
'
•,J• ')I .. ·-I
City of Kenai Shop Yard
HDL Engineering Special Use Permit Area
Exhibit A The informati on depicted here on is for graphic representation only of the best av ailable s ources.
The City of Kenai assumes no responsibility for errors on this map.
279
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary L. Bondurant
DATE: May 11, 2018
SUBJECT: Action/Approval – Special Use Permit to Redding Towing & Salvage,
LLC
Charles Rediski, is requesting to renew the special use permit for Lot 4, Block 5, Cook Inlet
Industrial Park, which is being used as an impound lot. Mr. Rediske has used this as an impound
lot since 2007.
This permit is effective for June 2018 with a new permit issued effective July 1, 2018 to June 30,
2019 so as to be calendared with the fiscal year.
Mr. Rediski is current in all fees owed to the Airport and a current Certificate of Insurance is on
file.
Airport Commission reviewed the request at the May 10, 2018 Commission meeting and
recommends Council approval.
Thank you for your consideration.
Does Council recommend the City Manager enter into a Special Use Permit with
Redding Towing & Salvage, LLC for an impound lot?
280
SPECIAL USE PERMIT 2018
THE CITY OF KENAI (City) for the considerations and pursuant to the conditions and
requirements set forth below, hereby grants to REDDI TOWING & SALVAGE, LLC
(Permittee), whose address is P.O. Box 7079, Nikiski , AK 99635 , the non-exclusive right to
u se that area described below:
Lot 4, Block 5, Cook Inlet Industrial Park and adjacent 50' wide
right-of-way, according to Plat No. 1448 (the Premises),
and as further shown in the attached Exhibit A.
1. TERM. This special use permit shall commence on June 1, 2018 , and terminate June
30,2018 .
2. PERMIT FEES. The Pennittee shall be charged a pemut fee of $404 plus applicable
sales tax per month this Permit is in effect.
Permittee shall pay the City the monthly fee on or before the first day of each month
beginning June 1, 2018 .
Checks, bank drafts , or postal money orders shall be made payable to the City of Kenai
and delivered to the City Administration Building, 210 Fidalgo Avenue, Kenai , Alaska
99611 on or before the first of each month.
In addition to the permit fee specified above, Permittee agrees to pay to the appropriate
parties all levies , asse ssments, and charges as hereinafter provided:
A. Sales tax now enforced, or levied in the future , computed upon the permit fee
payable in monthly installments whether said fee is paid on a monthly or
yearly bas is ;
B . All necessary licenses and permits, pay all lawful taxes and assessments
which, during the term hereof may become a li en upon or which may be
levied by the State, Borough, City, or by any other tax levying body, upon
any taxable possessory r ight which Permittee may have in or to the Premises
by reason of its use or occupancy or by reason of the terms of this Pennit,
prov ided however, that nothing herein contained shall prevent Permittee
from contesting any increase in such tax or assessment through procedures
provided for by law.
Special Use Pennit-Reddi Towing & Sa lvage, LLC Page I of 6 281
C. Interest at the rate of 8% per annum and penalties of 10% of any amount of
money owed under this Special Use Permit, which money or fee not paid on
or before the date it becomes due.
D. Costs and expenses incident to this Special Use Permit including, but not
limited to, recording costs.
3. USE. The use of the Premises by Permittee is limited to the purpose specified:
Impound Lot. This use is subject to the reasonable administrative actions of the City of
Kenai for the protection and maintenance of the Premises and of adjacent and contiguous
lands or facilities . Use of the Premises is subject to the following conditions:
A. Permittee shall maintain the fence on the Premises in good repair. Any fence
repair and/or maintenance shall be completed from inside the fence.
B. Permittee shall use the Premises only for the storage of impounded vehicles
(no wrecked or junk vehicles).
4. INSURANCE. Permittee shall secure and keep in force adequate insurance, as
stated below, to protect City and Permittee. Where specific limits are stated, the limits are
the minimum acceptable limits. If Pe1mittee's insurance policy contains higher limits, City
is entitled to coverage to the extent of the higher limits.
A. Garage Liability or Commercial General Liability insurance, including
premises, all operations, property damage, personal injury and death, broad-
form contractual, with a per-occun-ence limit of not less than $1,000,000
combined single limit. The policy must include an endorsement under which
the insurer extends coverage to Permittee's fuel handling activities. The
policy must name the City as an additional insured .
B. Worker's compensation insurance with coverage for all employees engaged
in work under this Permit or at the Premises as required by AS 23.30.045.
Permittee is further responsible to provide worker's compensation insurance
for any subcontractor who directly or indirectly provides services to
Permittee under this Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occun-ence. This insurance must cover all owned, hired, and
non-owned motor vehicles the Permittee uses on the Airport. The policy
must name the City as an additional insured.
Special Use Permit-Reddi Towing & Salvage, LLC Page 2of6 282
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.
IL Permittee shall submit to the City 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.
111 . Permittee shall request a waiver of subrogation against City from
Pemuttee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
1v. Provide the City with notification at least 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 City by June 1,
2018. The effective date of the insurance shall be no later than June
1, 2018.
vi. This insurance shall be primary and exclusive of any other insurance
carried by the City of Kenai . This insurance shall be without
limitation on the time within which the resulting loss, damage, or
injury is actually sustained.
5. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee
agrees to fully indemnify, defend, and hold harmless , the City of Kenai , its officers, agents,
employees, and volunteers from and against all actions, damages, costs , liability , claims ,
losses , judgments, penalties, and expenses of every type and description, including any
fees and/or costs reasonably incurred by the City'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 or result from any negligent act or omission or willful
misconduct of the Permittee in connection with its use of the Premises. This shall be a
continuing release and shall remain in effect after termination of this Special Use Permit.
6. PERMITTEE'S OBLIGATION TO PREVENT AND REMOVE LIENS.
Permittee will not permit any liens including, but not limited to, mechanics ', laborers',
material men 's, or mining liens or any other liens obtainable or available under existing
Special Use Permit-Reddi Towing & Salvage, LLC Page 3of6 283
law , to stand against the Premises or improvements on the Premises for any labor or
material furnished to Permittee or to any related entity or claimed to have been furnished
to Permittee or to the Permittee's agents, contractors , or related entities, in connection with
materials supplied to Pe1mittee for its activities on the Premises and/or in connection with
work of any character performed or claimed to have been performed on the Premises or
improvements by or at the direction or sufferance of Permittee. Provided, however, the
Permittee shall have the right to provide a bond as contemplated by Alaska law and contest
the validity or amount of any such lien or claimed lien. Upon a final determination of the
lien or claim for lien, the Permittee will immediately pay any judgment rendered with all
proper costs and charges and shall have such lien released or judgment satisfied at
Permittee 's own expense.
7. PERSONALITY. Permittee shall remove any and all personal property, including
all vehicles, from the Premises at the termination of this Pennit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded , such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai
is not responsible for any damage to or theft of any personalty of Permittee or of its
customers .
8. FORBEARANCE. Failure to insist upon a strict compliance with the terms ,
conditions, and/or any requirement herein contained, or referred to , shall not constitute or be
construed as a waiver or relinquishment of the right to exercise such tern1s, conditions or
requirements.
9 . TERMINATION; DEFAULT. This Permit may be terminated by either party
hereto by giving 60 days advance written notice to the other party. City may terminate the
Permit immediately, or upon notice shorter than 60 days , to protect public health and safety
or due to a failure of Permittee to comply with condition or term of thi s Permit which
failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
10. NO DISCRIMINATION. Pemuttee will not discriminate on the grounds of race,
color, religion, national origin, ancestry, age, or sex against any patron, employee,
applicant for employment, or other person or group of persons in any manner prohibited
by federal or State law . Perrnittee recognizes the right of the City to take any action
necessary to enforce this requirement.
11. ASSIGNMENT. Permittee may not assign , by grant or implication, the whole or
Special Use Permit-Reddi Towing & Salvage, LLC Page 4of6 284
any part of this Permit, the Premises , or any improvement on the Premises without the
written consent of the City. Unless the City specifically releases the Permittee in writing,
the City may hold the Permittee responsible for performing any obligation under this
Permit which an assignee fails to perform.
12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall
assume all risks incurred in its use of the Premises .
13. NO JOINT VENTURE. The City shall not be construed or held to be a partner or
joint venturer of Pen:nittee in the conduct of its business or activities on the Premises .
14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of
this permit shall survive the cancellation, termination or expiration of this permit.
15. AUTHORITY. By signing this Permit, Permittee represents that it has read this
agreement and it agrees to be bound by the terms and conditions herein and that the person
signing this Permit is duly authorized by the company to bind the company hereunder.
CITY OF KENAI REDDI TOWING & SALVAGE LLC
By:
---------~
By: ----------Paul Ostrander Charles Rediske
City Manager Member
ACKNOWLEDGMENTS
STATE OF ALASKA )
) SS .
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on the __ day of , 2018 , Paul Ostrander, City
Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires: ____ _
Special Use Permit-Reddi Towing & Salvage, LLC Page 5of6 285
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 Charles Rediske, Member of Reddi Towing
& Salvage, LLC, and Alaska limited liability company, on behalf of the Company.
Notary Public for Alaska
My Commission Expires : ____ _
ATTEST:
Jamie Heinz, City Clerk
SEAL:
APPROVED AS TO FORM :
Scott M . Bloom, City Attorney
Y :\Airport\SUP\Reddi Towing\2017 0317 R eddi To\ving SUP.docx
Special Use Permit-Reddi Towing & Salvage, LLC Page 6of6 286
Ir\
\. __
TR.A
2
TR. A-1
Exhibit A
287
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
FROM: Jamie Heinz, City Clerk
DATE: May 8, 2018
SUBJECT: Dipnet Vendors
At their meeting on 12/06/2017, Council asked Administration to address mobile vendors during the
dipnet fishery. While the City has always allowed vendors to operate in the parking areas during the
fishery, treating them the same as any other vehicle parking in the area, we decided the dipnet vendors
could be addressed by providing consistency to the dipnet fishery users while at the same time
providing an opportunity for local businesses to expand their business.
Feedback from the industry showed that most vendors felt the venue could be better, wanted to see
some sort of exclusivity, easier access, a specific vendor area, and suggested on-site electric and
potable/grey water dumping and refill site nearby. While the electricity and dumping/refilling site will
need to be accomplished in future years, we felt that we could accomplish some of the suggestions in
the near term and, combined with more consistency the fishery users could depend on, the venue
would improve for them.
To accomplish our goal and requests from the industry, we’ll be developing a simple application for the
vendors to complete and will encourage local businesses to apply. The applications will ask for brief
information about what the vendor offers, days and hours they will operate, where they are based out
of, and their facilities, which will then be ranked. Additional points will be given to applicants that
currently operate in the City of Kenai. We have outlined what we feel to be the safest area, facing the
beach, where two food vendors, one specialty coffee vendor, and one ice vendor will be situated and
the highest ranking applications of each type will be the vendors chosen to operate. The outlined area
has enough space for the vendor’s ‘facility’ and at least one support vehicle; we will be giving the
vendors vendor specific parking passes to come and go as they need.
With this plan, we’ve provided an opportunity for local businesses to expand their business, exclusivity,
easier access, and a specific vendor area. By also selecting vendors that will commit to operating for
the most amount of time, we hope that over time, the fishery users see this consistency and will utilize
these vendors instead of bringing loaded coolers from their hometowns.
288
Page 2 of 2
Dipnet Vendors
In the case that we did not have enough of the specific vendors apply, we would allow another vendor
to come in by the day. For instance, if we did not have a specialty coffee vendor apply to operate the
entire time, we would allow a specialty coffee vendor to operate on a day by day basis or, if we only
had one food vendor apply, we would allow another food vendor to operate on a day by day basis but
we would never allow a third food vendor operate in a specialty coffee vendor slot or visa versa.
We are doing this as a pilot project for this season and once we have more insight in how well it works
we will make changes to the code as necessary.
As requested, we took the plan to the Parks and Recreation Commission and the Harbor Commission;
both commissions felt the plan was well thought out.
If there are any questions, I am happy to answer them.
289
VANACCESSABLEVANACCESSABLEVendor 1AVendor 2AVendor 3AVendor 4ASouth Spruce StreetPedestrian TrailProtected DunesVehicle Access290
____________________________________________________________________________________
Harbor Commission Meeting Page 1 of 3
May 7, 2018
KENAI HARBOR COMMISSION
MAY 7, 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, City Clerk J. Heinz, Public
Works Assistant K. Feltman, Council Member B. Molloy
A quorum was present.
c. Agenda Approval
MOTION:
Commissioner DuPerron MOVED to approve the agenda as presented. Commissioner Crandall
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. April 9, 2018
MOTION:
Commissioner DuPerron MOVED to approve the meeting summary of April 9, 2018; and
Commissioner Crandall SECONDED the motion. There were no objections; SO ORDERED.
291
____________________________________________________________________________________
Harbor Commission Meeting Page 2 of 3
May 7, 2018
5. UNFINISHED BUSINESS – None.
6. NEW BUSINESS
a. Discussion – Dip Net Vendor Operation
City Clerk Heinz informed the Commission that the City of Kenai wanted to provide consistency
to dipnet fishery users while at the same time providing an opportunity for local businesses to
expand their business. Heinz presented an outline used for gathering vendor information, which
led to the development of a more streamlined approach including specific vendor location and
ease of access, size of space, and exclusivity for certain items. The proposed vendor operations
would consist of two food vendors, one specialty coffee vendor, and an ice vendor.
City Clerk Heinz addressed questions concerning size, costs, and areas of operation.
7. REPORTS
a. Public Works Director – City Manager Ostrander discussed the feasibility study for
the Bluff Erosion project and the request for an extension; and noted that there was
a joint work session with the Kenai Peninsula Borough, City of Kenai, Soldotna,
Seldovia and Homer, and discussed an increase in Borough sales tax. Ostrander
further reported that the requested sub-committee was approved by Council to
review/determine the Harbor Commission’s roles and responsibilities; and he
provided an update on the No Wake sign that would be posted June 1.
b. Commission Chair – None.
c. City Council Liaison – Council Member Molloy reported on the May 2 Council
Meeting actions, as provided in the packet, and noted that the formation of a Harbor
Commission sub-committee was unanimously approved and that Council Member
Glendening would be the Liaison for it. Molloy further noted the joint work session
was a success and there was thorough discussion.
8. NEXT MEETING ATTENDANCE NOTIFICATION – June 11, 2018
9. COMMISSIONER COMMENTS AND QUESTIONS
Commissioners expressed support of the No Wake sign wording and having it up year-round.
Commissioner DuPerron noted interest in the sub-committee providing a monthly update to the
Commission on the progress of determining the roles and responsibilities.
10. ADDITIONAL PUBLIC COMMENT
Council Member Glendening thanked City Manager Ostrander for his leadership, specifically in
Harbor Commission recommendations to Council and follow-up.
11. INFORMATION ITEMS – None.
292
____________________________________________________________________________________
Harbor Commission Meeting Page 3 of 3
May 7, 2018
12. ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 6:49 p.m.
Meeting summary prepared and submitted by:
_____________________________________
Jacquelyn Kennedy
Deputy City Clerk
293
KENAI PARKS & RECREATION COMMISSION
MAY 3, 2018 – 7:00 PM
KENAI CITY COUNCIL CHAMBERS
CHAIR CHARLIE STEPHENS, PRESIDING
MEETING SUMMARY
1. CALL TO ORDER
Chair Stephens called the meeting to order at 7:05 p.m.
a. Pledge of Allegiance
Chair Stephens led those assembled in the Pledge of Allegiance.
b. Roll was confirmed as follows:
Commissioners present: C. Stephens, T. Wisniewski, J. Joanis, S. Kisena, F. Perez
Commissioners absent: J. Halstead, N. Widmayer
Staff/Council Liaison present: Parks & Rec Director B. Frates, City Clerk J. Heinz
A quorum was present.
c. Agenda Approval
MOTION:
Commissioner Kisena MOVED to approve the agenda as presented; Commissioner Wisniewski
SECONDED the motion. There were no objections; SO ORDERED.
2. SCHEDULED PUBLIC COMMENTS
a. Bike Friendly Community Representative
Matt Pyhala introduced himself as being part of a local bike group working towards promoting
biking in Kenai and Soldotna. Mr. Pyhala explained that the group consisted of approximately ten
members and their goal was to get both communities designated as bike friendly communities
through the League of American cyclists. He added that getting this designation would help the
marketing and tourism industry, and provide great opportunities. Mr. Pyhala noted that the group
was currently coordinating with both Kenai and Soldotna Parks and Recreation Departments on
getting a couple bike repair stations built and assisting with a bike safety event in collaboration
with Wal-Mart. He clarified that both would be small actionable steps to promote biking and safety
in the communities.
Mr. Pyhala reported that the next group meeting would be on May 21 at Kenai River Brewing and
welcomed additional attendance.
3. UNSCHEDULED PUBLIC COMMENT – None.
294
Parks and Recreation Commission Meeting
May 3, 2018
Page 2
4. APPROVAL OF MEETING SUMMARY
a. February 1, 2018
MOTION:
Commissioner Kisena MOVED to approve the meeting summary of February 1, 2018 and
Commissioner Perez SECONDED the motion. There were no objections; SO ORDERED.
b. March 1, 2018
MOTION:
Commissioner Kisena MOVED to approve the meeting summary of March 1, 2018 and
Commissioner Wisniewski SECONDED the motion. There were no objections; SO ORDERED.
5. UNFINISHED BUSINESS – None.
6. NEW BUSINESS
a. Discussion – 2018 Dip Net Vendor Operation
City Clerk Heinz informed the Commission that during the personal use fishery, vendors had
always been allowed, but the City of Kenai was interested in providing more consistency and
better opportunities. Heinz presented an outline used for gathering vendor information, which led
to the development of a more streamlined approach including location, size of space, and
exclusivity for certain items.
Several questions concerning size, costs, and possibility for local preference were addressed by
Heinz.
7. REPORTS
a. Parks and Recreation Director – Frates reported on the following:
• Temporary Hire interviews were complete and the Department was looking
forward to a busy summer season; and
• The Department would be working with the bike group on the May 12 Bike Safety
Day and anticipated a bike repair station would be complete and used for a static
display.
b. Commission Chair – Stephens thanked everyone for their hard work, including
members of the bike group for promoting biking.
c. City Council Liaison – None.
8. NEXT MEETING ATTENDANCE NOTIFICATION – June 7, 2018
9. COMMISSION QUESTIONS & COMMENTS
Commissioner Perez inquired if the playground equipment at 4th Avenue Park would be replaced
this summer. Director Frates clarified that funds were not allocated for replacement of playground
295
Parks and Recreation Commission Meeting
May 3, 2018
Page 3
equipment for FY2019.
10. ADDITIONAL PUBLIC COMMENT – None.
11. INFORMATION
a. 2018 Flower List
12. ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 7:45 p.m.
Meeting summary prepared and submitted by:
_____________________________________
Jacquelyn Kennedy
Deputy City Clerk
296
KENAI PLANNING & ZONING COMMISSION
REGULAR MEETING
APRIL 25, 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
Commissioners absent: G. Greenberg
Staff/Council Liaison present: City Manager P. Ostrander, City Planner E. Appleby, Deputy
City Clerk J. Kennedy, Planning Assistant W. Anderson,
Council Liaison J. Glendening
A quorum was present.
c. Agenda Approval
MOTION:
Commissioner Halstead MOVED to approve the agenda and Commissioner Peterson
SECONDED the motion. There were no objections; SO ORDERED.
d. Consent Agenda
MOTION:
Commissioner Halstead MOVED to approve the consent agenda and Commissioner Peterson
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 – G. Greenberg 297
____________________________________________________________________________________
Planning and Zoning Commission Meeting Page 2 of 5
April 25, 2018
2. *APPROVAL OF MINUTES: April 11, 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:
a. Resolution PZ2018-07 Original Preliminary Plat of Beluga Subdivision 2015 Replat
Right-of-Way Vacation, submitted by Integrity Surveys, 820 Set Net Dr., Kenai, AK
99611, on behalf of Kenai New Life Assembly of God, 209 Princess Lane, Kenai, AK
99611
COMMISSIONER FIKES ARRIVED AT 7:03 PM
City Manager Ostrander reviewed the staff report, as provided in the packet, noting that the
purpose of this plat is to vacate the Right-of-Way of Beluga Drive West; vacate a fifteen foot (15’)
utility easement; and dedicate a thirty foot (30’) utility easement which encompasses the existing
underground water line. He further noted that the property owner would also like to vacate the
fifteen foot (15’) utility easement along the southern boundary of Tract 5, Beluga Subdivision 2015
Replat & Right-of-Way vacation. Ostrander added that the City of Kenai does not object to the
vacation of the utility easement because the property owner was dedicating a thirty foot (30’) utility
easement which will be centered on the existing underground water line, allowing the City access
to it.
Planning and Zoning Staff recommended approval of the preliminary plat of Beluga Subdivision
2015 Replat Right-of-Way Vacation, subject to the following conditions:
• Further development of the property shall conform to all Federal, State and local
Regulations;
• The City Council for the City of Kenai must approve the vacation of the sixty foot (60’)
Right-of-Way for Beluga Drive West, pursuant to Kenai Municipal Code 22.05.110; and
• The City Council for the City of Kenai must approve the vacation of the fifteen foot (15’)
utility easement as shown on the proposed plat, pursuant to Kenai Municipal Code
22.05.110.
MOTION:
Commissioner Askin MOVED to approve Resolution No. PZ2018-07 with staff recommendations
and Commissioner Springer 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
NAY:
298
____________________________________________________________________________________
Planning and Zoning Commission Meeting Page 3 of 5
April 25, 2018
MOTION PASSED.
6. PUBLIC HEARINGS:
a. Resolution PZ2018-08 – Application for a Conditional Use Permit to Construct a
Residential Six-Family Dwelling Unit for Seniors Age 55 and Older, located at 2392
Redoubt Avenue, Kenai, Alaska, 99611, and further described as Lot 1, Kenai
Meadows. The application was submitted by Kenai Peninsula Housing Initiatives, P.O.
Box 1869, Homer, Alaska 99603
City Manager Ostrander reviewed the staff report, as provided in the packet, noting that the City
of Kenai conveyed Lot 2, Kenai Meadows, to Kenai Peninsula Housing Initiatives Inc. in May 2017
and Lot 1, Kenai Meadows, to Kenai Peninsula Housing Initiatives Inc. in March 2018. He further
noted the Quitclaim Deeds conveying Lots 1 and 2, Kenai Meadows, from the City of Kenai to
Kenai Peninsula Housing Initiatives Inc. contained the following restriction: Per City of Kenai
Ordinance 2899-2016, in the event of a land sale, to a for Profit entity, the value of the property
shall be reimbursed to the City, if the Sale occurs within twenty (20) years after transfer to Kenai
Peninsula Housing Initiatives, Inc.
This application was specifically for Lot 1.
Based on the application and a review of the criteria required to approve the permit, the application
met the intent of the zone and complied with the Comprehensive Plan. Staff recommended
approval with the following conditions:
• Further development of the property shall conform to all Federal, State, and local
regulations;
• Prior to issuance of a Building Permit, a Landscape/Site plan must be reviewed and
approved by the City Planner;
• Prior to beginning construction of the project, a building permit must be issued by the
Building Official for the City of Kenai;
• A biennial fire inspection must be completed by the Fire Marshall for the City of Kenai; and
• A yearly Conditional Use Permit report must be submitted to the City of Kenai prior to the
31st day of December of each year.
MOTION:
Commissioner Springer MOVED to approve Resolution No. PZ2018-08 with staff
recommendations and Commissioner Askin 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 noted he would be voting in support but wondered about the existing
structure and if it would be sharing the paved common parking area.
Representative of the Petitioner, Connie Van clarified that this residential unit would have its own
entrance and parking area, it would not be shared with the common parking lot.
299
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Planning and Zoning Commission Meeting Page 4 of 5
April 25, 2018
VOTE:
YEA: Twait, Springer, Halstead, Peterson, Askin, Fikes
NAY:
MOTION PASSED.
Chairman Twait noted there was a 15-day appeal period.
7. UNFINISHED BUSINESS: None.
8. NEW BUSINESS: None.
9. PENDING ITEMS: None.
10. REPORTS:
a. City Council – Council Member Glendening reviewed the action agenda from the April 18
City Council Meeting; noted that he was invited to sit in on the Mineral Extraction Committee
and nominated by the Borough Mayor to be part of the committee for the Gas Project on
North Road in the interest of the City of Kenai; and he offered to sponsor an Ordinance for
the Commission regarding limiting cultivation facilities in the City of Kenai.
b. Borough Planning – Commissioner Fikes noted that the Borough Planning Committee
met on April 24 and conditionally approved five plats, and recommended approval on an
Ordinance regarding the foreclosed properties on a Cooper Landing homestead, to be sold
back to the family by the Borough.
c. Administration – City Manager Ostrander reported on the following:
• On April 5 there was a City Managers meeting at Kenai Peninsula Economic
Development District;
• On May 7 there will be a joint work session with the Borough Assembly to discuss the
fiscal gap and how it could affect the local cities;
• The Harbor Commission meeting on April 9 recommended that No Wake signs be at
the mouth of the Kenai River and it was on the City Council agenda for review next
week;
• Received full funding for the Bluff Erosion feasibility study and the City of Kenai will be
requesting an extension from the current deadline of May 15; and
• The new City Planner, Elizabeth Appleby will be taking over at the Commission
meetings beginning next month.
11. ADDITIONAL PUBLIC COMMENT – None.
12. INFORMATIONAL ITEMS
a. Planning & Zoning Resolutions – First Quarter 2018
b. Code Enforcement – First Quarter 2018
c. Building Permits – First Quarter 2018
d. Revised Plat of Aleyeska Subdivision 2017 Replat
300
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Planning and Zoning Commission Meeting Page 5 of 5
April 25, 2018
City Manager Ostrander noted Item 12(d) was on the agenda because of a change with the
utilities easement from what was previously presented, the phone line would be re-routed.
13. NEXT MEETING ATTENDANCE NOTIFICATION: May 9, 2018
14. COMMISSION COMMENTS & QUESTIONS
Commissioner Peterson thanked Ostrander for filling in as City Planner during the interim period
and transition; and thanked Glendening for his report.
15. ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 7:26 p.m.
Minutes prepared and submitted by:
_____________________________
Jacquelyn Kennedy
Deputy City Clerk
301
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary Bondurant – Airport Manager
DATE: May 7, 2018
SUBJECT: May Mid-month Report
2016 Fencing Rehabilitation – This project received final approval through the FAA OEAAA and
we are waiting FAA approval to advertise.
2017 Terminal Rehabilitation Project – Design Grant – WCB will provide City Administration with
a 35% plan set around May 15th for review and comment.
In-house Activities –
April 23-25, 2018 – The FAA Certification Inspection and the Airport’s Project Engineer visited for
three days. They also toured the Regional Fire Training Facility to actually see real time training
exercises. The Airport inspection went very well!
May 4-6, 2018 Great Alaska Gathering – The Airport Manager and Administrative Assistant
attended this three day event. This was a great opportunity to showcase the airport and advertise
the 18th Kenai Peninsula Air Fair.
May 21, 2018 – The night before the RSAT meeting, there will be a GA pilot meeting to promote
pilot participation in surface safety discussions. More information to be available.
May 22, 2018 Runway Safety Action Team – This meeting will be held in Kenai City Council
Chambers at 2:30pm. Invitations will be mailed to Air Traffic Control Tower and Flight Service
Station personnel along with local pilots and other airport users. The team consists of FAA
officials who inspect the airfield and review operating procedures to enhance safety at a towered
airport.
302
Page 2 of 2
May Mid-month
June 6-7, 2018 - The bi-annual Alaskan Region Airports Division Workshop will be held in
Anchorage. Anticipated topics include the AIP program, guidance, compliance, environmental,
planning, lessons learned, regional and national perspectives, and more!
June 9, 2018 – it’s coming!! The 18th Annual Kenai Peninsula Air Fair! Airport staff is busy working
on the poster, activities, and vendors. If you would like to volunteer, please contact my office.
303
MEMORANDUM
TO: Paul Ostrander, City Manager
THROUGH: Dave Ross, Police Chief
FROM: Jessica “JJ” Hendrickson, Animal Control Chief
DATE: 05/07/18
SUBJECT: April 2018 Animal Control Monthly Report
This month the Kenai Animal Shelter took in 69 animals. Animal intake and disposition:
DOGS:
INTAKE 40 DISPOSITION 27
Waiver 10 Adopted 11
Stray 24 Euthanized 1
Impound 0 Claimed 12
Protective Custody 1 Field Release 0
Quarantine 1 Transferred to Rescue 3
Other Intakes 4 Other Dispositions 0
CATS:
INTAKE 29 DISPOSITION 35
Waiver 8 Adopted 10
Stray 21 Euthanized 5
Impound 0 Claimed 4
Protective Custody 0 Field Release 0
Quarantine 0 Transferred to Rescue 16
Other Intakes 0 Other Dispositions 0
OTHER ANIMALS:
INTAKE 0 DISPOSITION 0
DOA: 2 OTHER STATISTICS:
Dog 2 Licenses (City of Kenai Dog Licenses) 10
Cat 0 Microchips (Dog and Cat) 53
Rabies Clinic 343
304
Page 2 of 2
5 Citations
5 Animal dropped with After Hours (days we are closed but cleaning and with KPD)
59.10 Volunteer Hours Logged
32 Animals are known borough animals
34 Field Investigations & patrols
Statistical Data:
206 2016 YTD Intakes
223 2017 YTD Intakes
228 2018 YTD Intakes
305
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: May 9, 2018
SUBJECT: Finance Department, May 2018 Mid-month Report
The past month has been a busy one with much of the department’s focus on the preparation of
the City’s FY2019 Budget. Budget Ordinance introduction is scheduled for the May 16th Council
meeting and adoption on June 6th. The budget work session is scheduled for May 19th for which
every department is preparing. City code requires adoption by June 10th. The Resolution
establishing the 2018 mill rate will be included in the packet for adoption June 6th to coincide with
adoption of the FY2019 Budget Ordinance.
The department is working on a renewal plan with PREMERA Blue Cross Blue Shield of Alaska
for employee health care insurance. A resolution authorizing renewal will be before Council for
passage at the June 6th Council meeting. The City is negotiating with PREMERA through our
broker, USI Insurance Services, to get the best renewal rate and coverage for the City and its
employees. Renewal plans include representative from USE Insurance, and PREMERA meeting
with employees in early June.
The department submitted its property, liability and workers’ compensaton insurance premium
credit application for the upcoming renewal year. This is a large document that takes cooperation
from all departments. Special thanks is owed to Ms. Feltman of Public Works for her assistance
in putting the document together. This document is a bit time consuming but has reduced the
City’s insurance costs by an average of $40,000 per year. The document shows the commitment
to safety, training and education by the City and its employees. A resolution authorizing renewal
of coverage for FY2019 will be before Council for passage at the June 6th Council meeting.
The department is preparing for the upcoming Personal Use Fishery. Preparation includes
updates to the Dip Net App, updates to our point of sale software, and installation of utlities to our
Main Street camera.
306
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: May 9, 2018
SUBJECT: Quarterly Financial Report
Attached is a relatively easily produced quarterly financial report for the General Fund, Personal
Use Fishery Fund, Airport Fund, Water/Sewer Fund, and Senior Fund as of March 31, 2018.
This report is essentially on a cash basis, so there are accounts that may not look reasonable. In
the General Fund for example, sales and property tax revenue only includes payments made to
the City by the Borough through February. The first calendar quarter 2018 sales tax filings and
tax payments are not in at this point and we will not be received for this quarter until the end of
April or early May.
State and Federal is below budget in all funds because of PERS aid. The State doesn’t actually
give us any money. Instead they make an ‘on-behalf’ payment to the pension system. Similarly
we have not booked expenditures for the PERS the State is covering, so the Non-Departmental
department is way under budget. At year-end we will record revenue and expenditures for these
items.
307
Quarterly General Fund
Expenditure Report
For Quarter Ended March 31, 2018
7/1/2016 7/1/2017 7/1/2017 7/1/2017
6/30/2017 7/1/2017 6/30/2018 3/31/2018
Original *
FY2017 FY2018 Amended YTD
Actual Budget Budget Actual Variance %
REVENUES
Appropriation of Fund Balance -$ 881,115$ 908,287$ -$ (908,287)$ 0.00%
Taxes 10,635,298 10,837,263 10,837,263 7,794,736 (3,042,527) 71.93%
Licenses/Permits and Ambulance 500,653 528,000 528,000 407,146 (120,854) 77.11%
State/Federal 866,746 651,238 672,673 457,550 (215,123) 68.02%
Dock/Multipurpose/Miscellaneous 131,686 119,500 119,500 138,353 18,853 115.78%
Fines and Forfeitures 83,094 89,500 95,651 67,729 (27,922) 70.81%
Interest and Miscellaneous 350,884 404,595 410,745 424,861 14,116 103.44%
Transfers/Central Admin Fees 1,802,305 2,082,393 2,082,393 1,176,675 (905,718) 56.51%
Total Revenues 14,370,666 15,593,604 15,654,512 10,467,050 (5,187,462) 66.86%
EXPENDITURES & TRANSFERS
General Government
01 City Clerk 269,306$ 298,355$ 299,905$ 181,153$ 118,752$ 39.60%
11 Legislative 164,434 169,955 169,955 135,570 34,385 20.23%
12 Legal 302,161 354,743 354,743 215,460 139,283 39.26%
13 City Manager 350,859 350,254 350,254 240,647 109,607 31.29%
15 Finance 603,313 685,410 685,410 471,469 213,941 31.21%
16 Land Administration 26,620 17,740 17,740 348 17,392 98.04%
18 Non-Departmental 581,874 655,125 656,725 390,492 266,233 40.54%
19 Planning and Zoning 203,539 231,455 231,455 146,391 85,064 36.75%
20 Safety 2,420 21,150 21,150 3,320 17,830 84.30%
Total General Government 2,504,526 2,784,187 2,787,337 1,784,850 1,002,487 35.97%
Public Safety
21 Police 2,640,497 2,921,899 2,932,485 2,069,410 863,075 29.43%
22 Fire 2,935,855 3,103,846 3,111,346 2,171,853 939,493 30.20%
23 Communications 726,457 854,200 854,200 575,341 278,859 32.65%
29 Animal Control 376,981 419,777 419,777 284,342 135,435 32.26%
Total Public Safety 6,679,790 7,299,722 7,317,808 5,100,946 2,216,862 30.29%
Public Works
31 Public Works Administration 215,606 233,669 233,669 150,564 83,105 35.57%
32 Shop 627,020 647,332 647,332 396,298 251,034 38.78%
33 Streets 846,987 985,460 985,460 553,660 431,800 43.82%
34 Buildings 304,240 341,444 341,444 212,861 128,583 37.66%
35 Street Lighting 154,579 167,409 167,409 106,554 60,855 36.35%
60 Dock 66,018 93,348 93,348 24,036 69,312 74.25%
Total Public Works 2,214,450 2,468,662 2,468,662 1,443,973 1,024,689 41.51%
Parks and Recreation & Culture
03 Visitor Center 177,795 182,404 182,404 131,046 51,358 28.16%
40 Library 839,714 912,585 922,085 629,109 292,976 31.77%
45 Parks, Recreation & Beautification 1,079,155 1,119,256 1,122,256 717,553 404,703 36.06%
Total Parks and Recreation & Culture 2,096,664 2,214,245 2,226,745 1,477,708 749,037 33.64%
Total Operating Expenditures 13,495,430 14,766,816 14,800,552 9,807,477 4,993,075 33.74%
Transfer to other funds
Street Improvement Capital Project Fund 78,000 48,000 75,172 48,000 27,172 36.15%
Senior Center Impr. Capital Projects 208,400 - - - - -
City Dock Capital Project Fund 35,000 - - - - -
New City Shop Capital Project Fund - 35,000 35,000 35,000 - 0.00%
Public Safety Building Capital Proj. Fund - 120,000 120,000 120,000 -
Kenai Animal Shelter Capital Proj. Fund - 35,000 35,000 35,000 -
Cemetery Improvements Capital Proj. Fund - 250,000 250,000 250,000 -
Employee Health Care Internal Svc. Fund 100,000 - - - - -
Senior Citizen Special Revenue Fund 183,291 196,730 196,730 49,182 147,548 75.00%
Debt Service 140,439 142,058 142,058 142,002 56 0.04%
Total Transfer to other funds 745,130 826,788 853,960 679,184 174,776 20.47%
Total Expenditures & Transfers 14,240,560 15,593,604 15,654,512 10,486,661 5,167,851 33.01%
Net Revenues over(under) Expenditures 130,106$ -$ -$ (19,611)$ (19,611)$
*Note: The original budget includes outstanding encumbrances at 6/30/2017.
308
Quarterly Personal Use Fishery Fund
Expenditure Report
For Quarter Ended March 31, 2018
7/1/2016 7/1/2017 7/1/2017 7/1/2017
6/30/2017 7/1/2017 6/30/2018 3/31/2018
Original *
FY2017 FY2018 Amended YTD
Actual Budget Budget Actual Variance %
REVENUES
Beach Parking 182,853$ 183,000$ 170,429$ 170,429$ -$ 0.00%
Beach Camping 238,752 239,000 210,269 210,269 - 0.00%
Dock Launch & Park 128,109 130,000 111,848 111,648 (200) -0.18%
Dock Parking Only 14,807 15,000 12,009 12,009 - 0.00%
Participant Drop-off Fee 10,717 11,000 7,481 7,481 - 0.00%
Interest Earnings 671 750 750 4,184 3,434 0.00%
PERS Grant 2,688 2,312 2,312 - (2,312) -100.00%
Credit Card Fees (3,680) (4,500) (3,291) (1,251) 2,040 -61.99%
Total Revenue 574,917 576,562 511,807 514,769 2,962 0.58%
EXPENDITURES
Public Safety 116,874$ 109,195$ 115,585$ 97,304$ 18,281$ 15.82%
Streets 53,068 51,506 36,377 25,191 11,186 30.75%
Boating Facility 72,669 72,347 62,843 49,110 13,733 21.85%
Parks, Recreation & Beautification 268,686 279,584 233,072 205,960 27,112 11.63%
Total Expenditures 511,297 512,632 447,877 377,565 70,312 15.70%
Net Revenues over Expenditures 63,620$ 63,930$ 63,930$ 137,204$ 73,274$
*Note: The original budget includes outstanding encumbrances at 6/30/2017.
309
Quarterly Airport Fund
Expenditure Report
For Quarter Ended March 31, 2018
7/1/2016 7/1/2017 7/1/2017 7/1/2017
6/30/2017 7/1/2017 6/30/2018 3/31/2018
Original *
FY2017 FY2018 Amended YTD
Actual Budget Budget Actual Variance %
REVENUES
Appropriation of Fund Balance -$ -$ 118,765$ -$ (118,765)$ 0.00%
State/Federal 29,725 23,552 23,552 - (23,552) 0.00%
Interest , Leases & Fees 786,527 805,326 805,326 689,069 (116,257) 85.56%
Terminal Revenues 683,766 786,514 786,514 497,720 (288,794) 63.28%
Landing Fees 529,132 375,000 375,000 277,947 (97,053) 74.12%
Transfers In 1,175,414 1,191,711 1,191,711 - (1,191,711) 0.00%
Total Revenues 3,204,564 3,182,103 3,300,868 1,464,736 (1,836,132) 44.37%
EXPENDITURES & TRANSFERS
Terminal Area 578,256$ 645,425$ 645,425$ 382,981$ 262,444$ 40.66%
Airfield 1,640,517 1,697,523 1,697,943 1,110,018 587,925 34.63%
Administration 411,745 336,914 670,716 250,726 419,990 62.62%
Other Buildings & Areas 12,510 180,411 (153,811) 111,884 (265,695) 172.74%
Training Facility 40,295 38,326 38,326 21,341 16,985 44.32%
Total Expenditures 2,683,323 2,898,599 2,898,599 1,876,950 1,021,649 35.25%
Transfer to other funds
Airport Improvement Capital Projects 127,437 - 402,269 115,981 286,288 0.00%
Total Transfer to other funds 127,437 - 402,269 115,981 286,288 71.17%
Total Expenditures & Transfers 2,810,760 2,898,599 3,300,868 1,992,931 1,307,937 39.62%
Net Revenues over Expenditures 393,804$ 283,504$ -$ (528,195)$ (528,195)$
*Note: The original budget includes outstanding encumbrances at 6/30/2017.
310
Quarterly Water Sewer Fund
Expenditure Report
For Quarter Ended March 31, 2018
7/1/2016 7/1/2017 7/1/2017 7/1/2017
6/30/2017 7/1/2017 6/30/2018 3/31/2018
Original *
FY2017 FY2018 Amended YTD
Actual Budget Budget Actual Variance %
REVENUES
Appropriation of Fund Balance -$ -$ -$ -$ -$ #DIV/0!
State/Federal 23,142 17,228 17,228 - (17,228) 0.00%
Water/Sewer Fees 2,725,982 2,863,453 2,863,453 2,107,157 (756,296) 73.59%
Penalty and Interest 35,838 43,250 43,250 27,391 (15,859) 63.33%
Interest and Miscellaneous 9,478 19,000 19,000 22,605 3,605 118.97%
Total Revenues 2,794,440 2,942,931 2,942,931 2,157,153 (785,778) 73.30%
EXPENDITURES & TRANSFERS
Water 715,077$ 864,277$ 952,937$ 553,720$ 399,217$ 41.89%
Sewer 365,094 513,830 520,147 342,966 177,181 34.06%
Wastewater Treatment Plant 987,096 1,075,372 1,086,894 773,641 313,253 28.82%
Total Expenditures 2,067,267 2,453,479 2,559,978 1,670,327 889,651 34.75%
Transfer to other funds -
Water & Sewer Capital Projects 353,792 - - - - -
Employee Health Care Fund 8,501 - - - - -
Total Transfer to other funds 362,293 - - - - -
Total Expenditures & Transfers 2,429,560 2,453,479 2,559,978 1,670,327 889,651 34.75%
Net Revenues over Expenditures 364,880$ 489,452$ 382,953$ 486,826$ 103,873$
*Note: The original budget includes outstanding encumbrances at 6/30/2017.
311
Quarterly Senior Fund
Expenditure Report
For Quarter Ended March 31, 2018
7/1/2016 7/1/2017 7/1/2017 7/1/2017
6/30/2017 7/1/2017 6/30/2018 3/31/2018
Original *
FY2017 FY2018 Amended YTD
Actual Budget Budget Actual Variance %
REVENUES
Appropriation of Fund Balance -$ 24,041$ 24,040$ -$ (24,040)$ 0.00%
State Grants 208,654 198,299 198,299 143,135 (55,164) 72.18%
USDA Grant 22,415 15,000 15,000 10,036 (4,964) 66.91%
Choice Waiver 220,419 225,000 225,000 130,427 (94,573) 57.97%
KPB Grant 126,207 126,207 126,207 126,207 - 100.00%
United Way 5,977 5,977 5,977 9,404 3,427 157.34%
Rents & Leases 8,260 13,000 13,000 6,177 (6,823) 47.52%
Donations 14,717 80,000 114,105 68,451 (45,654) 59.99%
Meal Donations 75,321 75,000 75,000 62,024 (12,976) 82.70%
Transfer from General Fund 183,291 196,730 196,730 49,183 (147,547) 25.00%
Other 241 300 300 (48) (348) -
Total Revenues 865,502 959,554 993,658 604,996 (388,662) 60.89%
EXPENDITURES & TRANSFERS
Senior Citizen Access 153,905$ 166,319$ 166,412$ 109,352$ 57,060$ 34.29%
Congregate Meals 218,035 236,396 238,834 155,094 83,740 35.06%
Home Meals 176,509 195,103 226,450 125,465 100,985 44.59%
Senior Transportation 67,803 80,523 83,824 57,175 26,649 31.79%
Choice Waiver 249,525 281,213 278,138 178,399 99,739 35.86%
Total Expenditures 865,777 959,554 993,658 625,485 368,173 37.05%
Transfer to other funds -
- - - - - -
Total Transfer to other funds - - - - - -
Total Expenditures & Transfers 865,777 959,554 993,658 625,485 368,173 37.05%
Net Revenues over Expenditures (275)$ -$ -$ (20,489)$ (20,489)$
*Note: The original budget includes outstanding encumbrances at 6/30/2017.
312
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Terry Eubank, Finance Director
DATE: April 30, 2018
SUBJECT: March 2018 Quarterly Investment Report
City of Kenai Investment Portfolio
At March 31, 2018 the City had investments with a market value of $21,063,871 that is down from
$22,510,121 at December 31, 2017. The City’s portfolio is yielding 1.53% that is up from 1.31%
at December 31, 2017. The Federal Reserve raised the Federal Funds Rate in December and
again in March, which increased the portfolios yield but devalued many of the assets held in the
portfolio. There is an inverse relationship between bond values and interest rates meaning when
interest rates increase, bond values decrease. Fair market value adjustments to the portfolio
through March 31, 2018 are a negative $222,699. The relative short duration of the portfolio has
limited the negative adjustment and rising interest rates are a welcome event and should increase
the City’s investment revenues in years to come.
City’s Investment Portfolio
US Agency Securities $ 5,943,615
AML Investment Pool 492,038
Wells Fargo Money Market 1,814,535
FDIC Insured Certificates of Deposit 11,929,565
Bank Balance 884,118
Total $ 21,063,871
Permanent Fund Investments
The first quarter 2018 saw significant volatility, a bit of a market pullback in the equity markets,
and another Federal Funds Rate change. Short term interest rate increases are projected to
increase more in 2018 depending upon the performance of the nation’s economy. Equities were
a drag on the portfolio which had a return of negative 0.90% for the first quarter 2018. Since
inception the portfolio has returned 8.44%. As of March 31, 2018 the portfolio value was
$28,864,705, comprised of $25,520,119 (88.41%) Airport Land Sale Permanent Fund,
$3,202,031 (11.09%) General Land Sale Permanent Fund monies, and $142,554 (0.50%) Kenai
Community Foundation holdings.
313
CITY OF KENAI
INVESTMENT PORTFOLIO SUMMARY
March 31, 2018
Fair Market Current
Value Yield
Cash & Cash Equivalents
Wells Fargo Checking 884,118$ 0.00%
Wells Fargo Secured Money Market 1,814,535 1.17%
FDIC Insured Certificates of Deposit 11,929,565 1.81%
Alaska Municipal League Investment Pool 492,038 1.27%
Total Cash & Cash Equivalents 15,120,256 1.61%
Average
Yield
Government Securities
Maturities Less than 1 Year 2,988,475 1.17%
Maturities 1 to 2 Years 482,350 1.50%
Maturities Greater than 2 Years 2,472,790 1.47%
Total Government Securities 5,943,615 1.32%
Total Portfolio 21,063,871$ 1.53%
Investment Portfolio - Purchase Price 20,200,064$
Investment Portfolio - Fair Value 06/30/17 20,134,606
Fair Value Adjustment - 06/30/17 (65,458)
Fair Value Adjustment thru -03/31/18 (157,241)
Cummulative Change in Fair Value (222,699)$
March 31, 2018
$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
Liquidity 20%
Minimum
Maturity 1 - 2 years Maturity over 2 years
30% Maximum
Portfolio Liquidity
Policy Minimum/Maximum Actual
314
CITY OF KENAI
Investments 03-31-18 COK
CITY OF KENAI
INVESTMENTS
3/31/2018
Current year cost or Unrealized
Expected Call 06/30/17 03/31/18 Gain Accrued EFFECT.
SECURITY or Maturity CUSIP original cost Market Value Market Value or Loss Interest RATE
FFCB 1.0 08/23/18 w/5days after 11/23/16 3133EGBG9 1,000,000 996,310.00 996,900.00 590.00 1,055.56 1.000
FHLMC 0.875 6/26/18 Bullet 3134G32U3 500,991 497,960.00 498,835.00 875.00 1,154.51 0.910
FHLMC 1.35 12/17/18 1 TIME 12/17/15 3134G6S95 1,498,500 1,498,470.00 1,492,740.00 (5,730.00) 5,850.00 1.380
FHLMC 1.70 8/24/20 1 TIME 5/24/18 w/ 5
days 3134GBMD1 1,000,000 996,460.00 980,730.00 (15,730.00) 1,747.22 1.700
FNMA 1.375 3/30/21
9/30/2016 Quarterly
w/10 days. Step 3/17
1.50, 3/18 1.75, 3/19
2.0, 3/20 3.25 3136G3DV4 1,000,000 988,220.00 972,830.00 (15,390.00) 38.19 1.375
FNMA 1.50 5/25/21
11/25/2016 Quarterly
w/10 days. 3136G3MW2 502,479 489,710.00 482,350.00 (7,360.00) 2,625.00 1.500
TVA 3.875 2/15/21 Bullet 880591EL2 555,678 537,005.00 519,230.00 (17,775.00) 2,475.69 1.370
TOTAL 6,057,648.07 6,004,135.00 5,943,615.00 (60,520.00) 14,946.17 1.097
FDIC Insured CD's CD - 12/31/10
1.00 GMATBK 06/18/18 57803 02006LE33 245,000 244,279.70 244,688.85 409.15 711.51 1.000
1.95 AXP 11/20/18 35328 02587CCV0 247,106 248,857.44 247,212.42 (1,645.02) 1,741.86 1.950
2.00 AXP 11/28/18 27471 02587DWJ3 247,000 248,726.53 247,135.85 (1,590.68) 1,678.25 2.000
1.00 BMW 6/18/18 35141 05580AEU4 245,000 244,279.70 244,688.85 409.15 704.79 1.000
1.20 BNCCTL 9/28/18 4033 05890NAF8 247,000 246,342.98 246,283.70 (59.28) 24.36 1.200
1.0 BBDNBK 9/24/18 26610 062683AF4 248,095 246,539.28 246,980.72 441.44 61.15 1.000
1.60 BPRN 10/28/19 58513 064520AH2 245,000 245,000.00 242,165.35 (2,834.65) 53.70 1.600
2.30 BACR 10/18/22 57203 06740KLD7 245,000 245,000.00 239,764.35 (5,235.65) 2,547.33 2.300
1.65 BHLB 10/28/19 23621 084601KU6 245,000 245,000.00 242,366.25 (2,633.75) 1,738.83 1.650
1.35 BRKL 12/28/18 17798 11373QCQ9 247,000 246,518.35 245,947.78 (570.57) 36.54 1.350
2.4 COF 4/19/22 33954 1404202E9 247,000 249,158.78 243,816.17 (5,342.61) 2,663.54 2.400
2.4 COF 8/30/22 34221 14042RHS3 245,000 245,000.00 241,084.90 (3,915.10) 483.29 2.400
1.65 CATY 10/28/19 18503 149159LK9 245,000 245,000.00 242,354.00 (2,646.00) 1,727.75 1.650
1.70 ADS 8/28/19 57570 20033AWB8 245,000 245,000.00 243,066.95 (1,933.05) 45.64 1.700
1.65 CWBKNA 12/30/19 57176 20084TJW4 247,000 246,666.55 243,709.96 (2,956.59) 22.33 1.650
1.40 DFS 6/29/18 5649 254672X78 247,000 247,125.97 246,849.33 (276.64) 881.08 1.400
2.55 CMS 1/18/22 57293 29278TAK6 245,000 245,000.00 243,539.80 (1,460.20) 273.86 2.550
1.60 FRME 12/30/19 4365 32082BEL9 247,000 246,365.21 243,500.01 (2,865.20) 21.65 1.600
2.30 FINN 02/21/20 5452 332135HH8 245,000 245,000.00 244,113.10 (886.90) 169.82 2.300
0.90 FSBSIA 4/20/18 18508 336386AR8 245,000 244,448.75 244,933.85 485.10 72.49 0.900
1.50 FSBDQN 6/28/19 21805 336460CC2 247,000 246,444.25 244,907.91 (1,536.34) 20.30 1.500
1.80 FFIC 12/10/18 58564 34387ABA6 247,000 247,708.89 246,614.68 (1,094.21) 207.07 1.800
1.25 GRBKIW 9/27/18 14079 36198JCK8 247,000 246,498.59 246,352.86 (145.73) 42.29 1.250
2.35 GS 8/30/22 4297 38148PNS2 245,000 245,000.00 240,577.75 (4,422.25) 473.22 2.350
2.30 HSBC 7/14/22 57890 40434YLE5 245,000 245,000.00 240,394.00 (4,606.00) 1,188.75 2.300
1.65 ILBKIL 10/31/19 33708 45906ABU0 245,000 245,000.00 242,329.50 (2,670.50) 354.41 1.650
2.30 KENNEB 08/24/20 17897 489265AZ1 245,000 245,000.00 243,365.85 (1,634.15) 586.66 2.300
1.65 KEY 10/25/19 17534 49306SZA7 245,000 245,000.00 242,393.20 (2,606.80) 1,749.90 1.650
2.25 MBFI 2/14/20 3628 55266CYJ9 245,030 245,030.21 243,939.15 (1,091.06) 271.85 2.250
1.25 MFNC 6/29/18 14816 55275FKL1 247,000 246,757.94 246,760.41 2.47 16.92 1.250
1.70 MSBKGR 10/24/19 5766 56062HAD1 245,000 245,000.00 242,581.85 (2,418.15) 91.29 1.700
1.00 MVZAVC 6/18/18 22953 58733ACV9 245,000 244,289.50 244,703.55 414.05 704.79 1.000
1.70 MERICK 8/30/19 34519 59013JA25 245,000 245,000.00 243,049.80 (1,950.20) 22.82 1.700
2.60 MS 2/15/22 32992 61747MK83 245,000 245,000.00 243,909.75 (1,090.25) 785.34 2.600
1.75 MS 9/30/19 34221 61760ADR7 245,000 245,000.00 243,189.45 (1,810.55) 375.89 1.700
2.05 NTLNYC 8/30/22 18734 634116CM7 245,000 245,000.00 237,512.80 (7,487.20) 27.52 2.050
2.15 NRTHFL 10/25/22 28710 66612ABX5 245,000 245,000.00 238,149.80 (6,850.20) 2,280.18 2.150
1.25 PFBC 6/29/18 33539 740367FJ1 247,000 247,727.20 246,760.41 (966.79) 16.92 1.250
2.00 SALLMA 2 11/26/18 58177 795450VE2 247,000 248,620.32 247,091.39 (1,528.93) 1,705.32 2.000
2.10 SMARTB 11/27/19 58463 83172HDR8 245,000 245,000.00 243,863.20 (1,136.80) 56.38 2.100
1.75 SOWNAT 5/8/20 4801 845182BA1 245,000 245,000.00 240,955.05 (4,044.95) 281.92 1.750
1.35 STBFLO 12/28/18 15146 856191AY7 247,000 246,518.35 245,952.72 (565.63) 18.27 1.350
2.75 SBIIN 02/16/23 33682 856285HZ7 245,000 245,000.00 243,926.90 (1,073.10) 812.19 2.750
2.35 SYF 10/20/22 27314 87164WTC2 245,000 245,000.00 240,271.50 (4,728.50) 2,571.16 2.350
2.15 EVER 10/28/22 34775 87270LAV5 245,000 245,000.00 238,113.05 (6,886.95) 2,208.02 2.150
2.05 THFDSL 10/27/21 30012 88413QBT4 245,000 245,000.00 239,619.80 (5,380.20) 2,146.60 2.050
1.60 TWNBNK 10/28/19 18487 89210PBL6 245,000 245,000.00 242,165.35 (2,834.65) 53.70 1.600
1.70 WEX 10/18/19 34697 92937CGA0 245,000 245,000.00 242,645.55 (2,354.45) 1,882.81 1.700
2.00 WFC 10/27/22 3511 94986T2N6 245,000 245,000.00 243,265.40 (1,734.60) 2,094.25 2.000
TOTAL FDIC Insured CD's 12,038,230.90 12,038,904.49 11,929,564.82 (109,339.67) 38,706.51 1.809
WELLS MONEY MKT 1,814,534.67 1,814,534.67 1,814,534.67 - 1,384.50 1.174
AML POOL - City ACCT Agreed to Amlip 492,038.30 492,038.30 492,038.30 - 777.63 1.270
Agreed to GL 20,402,451.94 20,349,612.46 20,179,752.79 (169,859.67) 55,814.81
WF Cash Agreed to WF 884,118.24 884,118.24 884,118.24 - - 0.000
TOTAL 21,286,570.18 21,233,730.70 21,063,871.03 (169,859.67) 55,814.81
MONTHS (222,699.15)
TOTAL CURRENT YIELD 1.5223%
Max/Min Return Actual Difference
Maturity over 2 years 30% Maximum 6,319,161.31 1.9850% 6,090,102 229,059.49 OK
Liquidity 20% Minimum 4,212,774.21 1.1475% 10,118,124 (5,905,349.38) OK
Maturity 1 - 2 years 1.7229% 4,855,646
1.5223% 21,063,871
-
315
CITY OF KENAI
PERMANENT FUND
INVESTMENT PORTFOLIO SUMMARY
March 31, 2018
Current or Current
Average Portfolio Target Portfolio
31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 Yield Weight Weight Maximum
Fixed Income
Cash & Cash Equivalents 1,676,898 1,686,861 1,477,048 1,800,796 2,100,230 0.81%6.05%
Total Cash & Cash Equivalents 1,676,898 1,686,861 1,477,048 1,800,796 2,100,230
Government & Corporate Securities
Government Securities 4,872,143 4,074,384 4,757,095 4,868,584 4,902,429 2.28%17.59%
Corporate Securities 5,438,448 6,085,153 5,738,396 5,851,724 5,661,962 3.15%19.63%
Total Government & Corporate Securities 10,310,591 10,159,537 10,495,491 10,720,308 10,564,391 2.64%37.22%
Total Fixed Income 11,987,489 11,846,398 11,972,539 12,521,104 12,664,621 2.58%43.27%45.00%65.00%
Equities
Domestic Equities
Standard & Poor's 500 Index 5,555,087 5,486,353 5,692,088 5,813,002 5,529,449 20.06%20.00%25.00%
Standard & Poor's 600 Small-Cap Index 1,616,615 1,638,821 1,734,893 1,795,434 1,459,340 5.83%5.00%10.00%
Standard & Poor's 400 Mid-Cap Index 2,992,070 3,039,776 3,126,278 3,264,216 2,879,200 10.80%10.00%15.00%
Total Domestic Equities 10,163,772 10,164,950 10,553,259 10,872,652 9,867,989 36.69%35.00%50.00%
International Equities
Vanguard Europe Pacific ETF 2,791,741 3,020,144 3,182,832 3,192,147 3,335,175 10.08%10.00%15.00%
Vanguard Emerging Market ETF 1,420,558 1,351,080 1,458,540 1,462,330 1,940,340 5.13%5.00%10.00%
Total International Equities 4,212,299 4,371,224 4,641,372 4,654,477 5,275,515 15.20%15.00%25.00%
Real Estate
Vanguard REIT ETF 1,342,088 1,081,990 1,080,170 1,078,740 1,056,580 4.84%5.00%10.00%
Total Real Estate 1,342,088 1,081,990 1,080,170 1,078,740 1,056,580 4.84%5.00%10.00%
Total Equities 15,718,159 15,618,164 16,274,801 16,605,869 16,200,084
Total Portfolio 27,705,648 27,464,562 28,247,340 29,126,973 28,864,705 -0.90%100.00%100.00%150.00%
Total ALSPF Balance 24,477,380 24,282,141 24,974,224 25,751,998 25,520,119
Total GLSPF Balance 3,095,588 3,046,800 3,133,627 3,231,125 3,202,031
Total Kenai Community Foundation 132,680 135,621 139,488 143,850 142,554
Fair Market Value
0.00%
25.00%
50.00%
75.00%
Fixed Income Standard & Poor's
500 Index
Standard & Poor's
600 Small-Cap
Index
Standard & Poor's
400 Mid-Cap Index
Vanguard Europe
Pacific ETF
Vanguard
Emerging Market
ETF
Vanguard REIT ETF
Portfolio Composition
Current Portfolio Weight Target Portfolio Weight Maximum Portfolio Weight
Current Month Current Quarter Year to Date Last 1 Year Inception to Date
Portfolio -0.02%-0.90%-0.90%7.45%8.44%
Benchmark -0.25%-0.99%-0.99%7.11%8.49%
-5.00%
0.00%
5.00%
10.00%
15.00%Portfolio Performance
316
$15,000,000
$17,000,000
$19,000,000
$21,000,000
$23,000,000
$25,000,000
$27,000,000
Total ALSPF Balance
Transfer of $1,195,313
to Airport Operations.
Transfer of $1,147,714
to Airport Operations.
Transfer of $1,184,356
to Airport Operations.
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Total GLSPF Balance
Transfer of $1,075,123
to Airport Operations.
Transfer of $135,668 to
General Fund Operations.
Transfer of $1,158,473
to Airport Operations.
Transfer of $154,172 to
General Fund Operations.
Transfer of $153,493 to
General Fund Operations.
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000 Total Kenai Community Foundation Balance
$50,000 investment.
$5,000
investment.
Initial investment of
$66,143.
Transfer of $149,802 to
General Fund Operations.
317
Clients are encouraged to compare this report with the official statement from their custodian.INVESTMENT PERFORMANCECurrentMonthCurrentQuarterYear toDateLatest 1YearInception toDatePortfolio-0.02 -0.90 -0.90 7.45 8.44Benchmark-0.25 -0.99 -0.99 7.11 8.49-2.000.002.004.006.008.0010.00Percent Total Return (Gross)Performance is Annualized for Periods Greater than One YearCurrent Account Benchmark:Equity BlendPORTFOLIO COMPOSITIONFixed Income44%US Lg Cap19%US Md Cap10%US Sm Cap5%Int'l11%Emer Mkts7%Real Estate4%MANAGEMENT TEAMClient Relationship Manager: Amber Frizzell, AIF®Amber@apcm.netYour Portfolio Manager: Bill Lierman, CFA®Contact Phone Number: 907/272 -7575ACCOUNT ACTIVITYPortfolio Value on 02-28-18 28,871,906Contributions 0Withdrawals -359Change in Market Value -82,570Interest 26,064Dividends 49,686Portfolio Value on 03-31-18 28,864,727CITY OF KENAI PERMANENT FUNDSAccount Statement - Period Ending March 31, 2018318
Alaska Permanent Capital Management Co.
PORTFOLIO SUMMARY AND TARGET
CITY OF KENAI PERMANENT FUNDS
March 31, 2018
%
Asset Class & Target Market Value Assets Range
FIXED INCOME (45%)
US Fixed Income (40.0%) 10,564,414 36.6 35% to 65%
Cash (5.0%) 2,117,449 7.3 0% to 10%
Subtotal: 12,681,863 43.9
EQUITY (55%)
US Large Cap (20.0%) 5,512,230 19.1 15% to 25%
US Mid Cap (10.0%) 2,879,199 10.0 5% to 15%
US Small Cap (5.0%) 1,459,339 5.1 0% to 10%
Developed International Equity (10.0%) 3,335,175 11.6 5% to 15%
Emerging Markets (5.0%) 1,940,340 6.7 0% to 10%
Real Estate (5.0%) 1,056,580 3.7 0% to 10%
Subtotal: 16,182,864 56.1
TOTAL PORTFOLIO 28,864,727 100
319
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSMarch 31, 2018YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityFNMA & FHLMC27,603 FHLMC POOL G14203 104.56 28,862 103.11 28,461 0.10 1,104 92 1.434.000% Due 04-01-26Accrued Interest92 0.0028,862 28,553 0.10 92CASH AND EQUIVALENTSCASH RECEIVABLE 2,749 2,749 0.01DIVIDEND ACCRUAL 17,219 17,219 0.06WF ADV GOVT MM FD-INSTL #1751 1,097,581 1,097,581 3.801,117,549 1,117,549 3.87CORPORATE BONDS200,000 COMMONWEALTH EDISON 123.20 246,400 101.08 202,162 0.70 13,900 2,934 3.106.950% Due 07-15-18200,000 SOUTHERN CAL EDISON 122.07 244,134 101.07 202,146 0.70 11,000 1,406 2.555.500% Due 08-15-18200,000 TOYOTA MOTOR CREDIT CORP 100.48200,958 99.51 199,024 0.69 4,200 863 2.712.100% Due 01-17-19200,000 MICROSOFT CORP 117.24 234,472 102.40 204,796 0.71 8,400 2,800 2.104.200% Due 06-01-19200,000 TORONTO-DOMINION BANK 101.89203,782 99.45 198,8980.69 4,500 75 2.632.250% Due 09-25-19200,000 HSBC USA INC 99.61 199,216 99.09 198,182 0.69 4,750 1,821 2.952.375% Due 11-13-19250,000 CAPITAL ONE 99.94 249,850 98.38 245,950 0.85 5,875 995 3.272.350% Due 01-31-20200,000 ENTERPRISE PRODUCTS OPER 112.75 225,494 104.67 209,332 0.73 10,400 867 3.175.200% Due 09-01-20250,000 PNC BANK NA 99.72 249,30098.45 246,137 0.85 6,125 2,484 3.072.450% Due 11-05-20200,000 NBC UNIVERSAL MEDIA LLC 109.20 218,408 103.89 207,788 0.72 8,750 4,375 3.004.375% Due 04-01-21200,000 AMERICAN EXPRESS CREDIT 99.92 199,850 97.41 194,822 0.67 4,500 1,825 3.132.250% Due 05-05-21200,000 MORGAN STANLEY 114.98 229,964 106.81 213,612 0.74 11,000 1,925 3.325.500% Due 07-28-21200,000 GILEAD SCIENCES INC 96.28 192,564 95.70 191,396 0.66 3,900 325 3.121.950% Due 03-01-22200,000 BANK AMER CORP 99.34 198,686 99.71 199,416 0.69 6,600 1,467 3.363.300% Due 01-11-23200,000 AVALONBAY COMMUNITIES 100.82 201,632 97.70 195,398 0.68 5,700 253 3.362.850% Due 03-15-231320
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSMarch 31, 2018YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity150,000 DISCOVERY COMMUNICATIONS 98.88 148,320 97.72 146,578 0.51 4,875 2,437 3.753.250% Due 04-01-23150,000 NEWELL BRANDS INC 106.01 159,022 99.80 149,707 0.52 5,775 2,887 3.893.850% Due 04-01-23200,000 Waste Management Inc 100.24 200,478 95.39 190,782 0.66 4,800 1,813 3.392.400% Due 05-15-23200,000 AFLAC INC 104.97 209,950101.47 202,936 0.70 7,250 2,135 3.313.625% Due 06-15-23200,000 BANK OF NEW YORK MELLON 97.83195,666 94.01 188,022 0.65 4,400 550 3.432.200% Due 08-16-23200,000 JPMORGAN CHASE & CO 105.18 210,362 101.50 203,000 0.70 7,750 1,292 3.593.875% Due 02-01-24200,000 METLIFE INC 105.46 210,930 100.16 200,314 0.69 7,200 3,420 3.573.600% Due 04-10-24175,000 PRUDENTIAL FINANCIAL INC 103.15 180,505 99.73 174,534 0.60 6,125 2,314 3.553.500% Due 05-15-24200,000 WELLS FARGO & COMPANY 99.88 199,764 97.57 195,140 0.68 6,600 403 3.733.300% Due 09-09-24150,000 REYNOLDS AMERICAN INC 108.47 162,700 102.87 154,300 0.53 6,675 2,021 3.994.450% Due 06-12-25200,000 APPLIED MATERIALS INC 107.96 215,912 102.71 205,424 0.71 7,800 3,900 3.483.900% Due 10-01-25150,000 CITIGROUP INC 101.65 152,470 98.75 148,126 0.51 5,550 1,218 3.893.700% Due 01-12-26150,000 ANHEUSER-BUSCH INBEV FIN 103.01 154,519 99.40 149,107 0.52 5,475 912 3.743.650% Due 02-01-26200,000 LOWE'S COS INC 100.05 200,098 96.33 192,662 0.67 6,200 2,549 3.573.100% Due 05-03-27Accrued Interest52,268 0.185,895,408 5,661,962 19.62 52,268DOMESTIC FIXED INCOME FUNDS/ETF999,900 GOLDMAN SACHS PRIME OBLIGATIONS FUND 1.00 1,000,067 1.00 999,900 3.46 NADOMESTIC LARGE CAP EQUITY FUNDS/ETF31,575 FLEXSHARES QUAL DIV ETF 40.67 1,284,029 43.73 1,380,775 4.78 NA15,700 SPDR S&P 500 ETF 110.49 1,734,645 263.15 4,131,455 14.31 NA3,018,674 5,512,230 19.10DOMESTIC MID CAP EQUITY FUNDS/ETF15,350 ISHARES CORE S&P MIDCAP 400 ETF 66.27 1,017,251 187.57 2,879,199 9.97 NA2321
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSMarch 31, 2018YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityDOMESTIC SMALL CAP EQUITY FUNDS/ETF18,950 ISHARES S&P SMALLCAP 600 INDEX ETF 31.00 587,456 77.01 1,459,339 5.06 NAINTERNATIONAL EQUITY FUNDS/ETF50,625 ISHARES ETF CORE MSCI EAFE 51.54 2,609,459 65.88 3,335,175 11.55 NAEMERGING MARKET FUNDS/ETF33,225 ISHARES ETF CORE MSCI EMERGING MKTS 42.08 1,398,057 58.40 1,940,340 6.72 NAREAL ESTATE14,000 VANGUARD REIT ETF 38.58 540,100 75.47 1,056,580 3.66 NAU.S. TREASURY 25,000 US TREASURY NOTES 99.9424,984 99.53 24,882 0.09 312 118 2.021.250% Due 11-15-18200,000 US TREASURY NOTES 99.64 199,281 98.46 196,930 0.68 2,500 1,050 2.241.250% Due 10-31-19525,000 US TREASURY NOTES 99.53 522,519 98.51 517,167 1.79 7,219 2,122 2.271.375% Due 12-15-19125,000 US TREASURY NOTES 99.85 124,807 98.07 122,587 0.42 1,562 138 2.281.250% Due 02-29-20150,000 US TREASURY NOTES 100.06 150,094 95.93 143,895 0.50 1,687 424 2.431.125% Due 06-30-21375,000 US TREASURY NOTES 99.34 372,510 99.02 371,325 1.29 7,969 2,003 2.442.125% Due 06-30-21750,000 US TREASURY NOTES 100.59 754,414 98.39 737,932 2.56 15,000 6,305 2.472.000% Due 10-31-21525,000 US TREASURY NOTES 101.31 531,879 98.23 515,713 1.79 10,500 2,654 2.502.000% Due 12-31-21300,000 US TREASURY NOTES 98.24 294,727 99.53 298,593 1.03 7,500 932 2.592.500% Due 08-15-23500,000 US TREASURY NOTES 100.23 501,133 98.31 491,545 1.70 11,875 1,476 2.662.375% Due 08-15-2425,000 US TREASURY NOTES 100.6525,162 91.98 22,995 0.08 406 154 2.731.625% Due 05-15-26250,000 US TREASURY NOTES 95.26 238,145 94.31 235,782 0.82 5,000 1,892 2.742.000% Due 11-15-26190,000 US TREASURY NOTES 95.29 181,049 95.79 181,999 0.63 4,275 1,618 2.752.250% Due 11-15-27Accrued Interest20,887 0.073,920,703 3,882,233 13.45 20,8873322
Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSMarch 31, 2018YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityAGENCIES250,000 FHLMC 99.73 249,32598.11 245,272 0.854,250 24 2.481.700% Due 09-29-20250,000 FEDERAL HOME LOAN BANK - STEP UP 99.85 249,625 98.66 246,645 0.85 5,000 1,903 2.312.000% Due 11-14-22300,000 FEDERAL FARM CREDIT BANK 100.00300,000 98.10 294,288 1.02 8,550 3,729 3.152.850% Due 04-24-25200,000 FHLB 99.79 199,580 99.78 199,564 0.69 7,250 242 3.653.625% Due 03-19-27Accrued Interest5,897 0.02998,530 991,666 3.44 5,897TOTAL PORTFOLIO 22,132,116 28,864,727 100 298,035 79,1434323
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 03-01-18 To 03-31-18Trade Settle TradeDate Date Security Quantity AmountPURCHASESAGENCIES03-16-18 03-19-18 FHLB 200,000 199,580.003.625% Due 03-19-27199,580.00DEPOSITS AND EXPENSESMANAGEMENT FEES03-31-18 03-31-18 MANAGEMENT FEES 4,072.064,072.06DividendDOMESTIC FIXED INCOME FUNDS/ETF03-29-18 04-03-18 GOLDMAN SACHS PRIME OBLIGATIONS FUND1,485.31DOMESTIC LARGE CAP EQUITY FUNDS/ETF03-16-18 04-30-18 SPDR S&P 500 ETF 17,219.3703-19-18 03-23-18 FLEXSHARES QUAL DIV ETF5,819.0823,038.45DOMESTIC MID CAP EQUITY FUNDS/ETF03-22-18 03-28-18 ISHARES CORE S&P MIDCAP 400 ETF10,749.67DOMESTIC SMALL CAP EQUITY FUNDS/ETF03-22-18 03-28-18 ISHARES S&P SMALLCAP 600 INDEX ETF4,525.37REAL ESTATE03-26-18 03-29-18 VANGUARD REIT ETF 9,886.8049,685.601324
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 03-01-18 To 03-31-18Trade Settle TradeDate Date Security Quantity AmountInterestAGENCIES03-29-18 03-29-18 FHLMC 2,125.001.700% Due 09-29-20CASH AND EQUIVALENTS03-31-18 04-02-18 WF ADV GOVT MM FD-INSTL #17511,263.26CORPORATE BONDS03-01-18 03-01-18 ENTERPRISE PRODUCTS OPER5,200.005.200% Due 09-01-2003-01-18 03-01-18 GILEAD SCIENCES INC 1,950.001.950% Due 03-01-2203-01-18 03-01-18 MCDONALDS CORP M/T/N 5,350.005.350% Due 03-01-1803-09-18 03-09-18 WELLS FARGO & COMPANY3,300.003.300% Due 09-09-2403-15-18 03-15-18 AVALONBAY COMMUNITIES2,850.002.850% Due 03-15-2303-23-18 03-25-18 TORONTO-DOMINION BANK2,250.002.250% Due 09-25-1920,900.00FNMA & FHLMC03-15-18 03-15-18 FHLMC POOL G14203 94.064.000% Due 04-01-2624,382.322325
Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 03-01-18 To 03-31-18Trade Settle TradeDate Date Security Quantity AmountPRINCIPAL PAYDOWNSFNMA & FHLMC03-15-18 03-15-18 FHLMC POOL G14203 614.16 614.164.000% Due 04-01-26614.16SALES, MATURITIES, AND CALLSCORPORATE BONDS03-01-18 03-01-18 MCDONALDS CORP M/T/N 200,000 200,000.005.350% Due 03-01-18U.S. TREASURY 03-16-18 03-19-18 US TREASURY NOTES 150,000 142,892.582.250% Due 02-15-27342,892.58Sold Accrued InterestU.S. TREASURY 03-16-18 03-19-18 US TREASURY NOTES 298.342.250% Due 02-15-27298.34WithdrawCASH AND EQUIVALENTS03-01-18 03-01-18 CASH RECEIVABLE 846.6703-02-18 03-02-18 CASH RECEIVABLE 1,201.0303-20-18 03-20-18 WF ADV GOVT MM FD-INSTL #1751358.682,406.382,406.383326
Alaska Permanent Capital Management Co.REALIZED GAINS AND LOSSESCITY OF KENAI PERMANENT FUNDSFrom 03-01-18 Through 03-31-18Avg. CostDate Quantity Security Basis Proceeds Gain Or Loss03-01-18 200,000 MCDONALDS CORP M/T/N208,698.00 200,000.00 -8,698.005.350% Due 03-01-1803-15-18 614.16 FHLMC POOL G14203 642.18 614.16 -28.024.000% Due 04-01-2603-16-18 150,000 US TREASURY NOTES 150,363.28 142,892.58 -7,470.702.250% Due 02-15-27TOTAL GAINS 0.00TOTAL LOSSES -16,196.72359,703.46 343,506.74 -16,196.72
327
Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 03-01-18 To 03-31-18Trade Settle TranDate Date Code Activity Security AmountCASH RECEIVABLE03-01-18 Beginning Balance 2,047.7003-01-18 03-01-18 wd Transfer to WF ADV GOVT MM FD-INSTL #1751-846.6703-02-18 03-02-18 wd Transfer to WF ADV GOVT MM FD-INSTL #1751-1,201.0303-29-18 04-03-18 dp Dividend GOLDMAN SACHS PRIME OBLIGATIONS FUND1,485.3103-31-18 04-02-18 dp Interest WF ADV GOVT MM FD-INSTL #17511,263.2603-31-18 Ending Balance 2,748.57WF ADV GOVT MM FD-INSTL #175103-01-18 Beginning Balance 897,566.9303-01-18 03-01-18 dp Interest ENTERPRISE PRODUCTS OPER 5,200.005.200% Due 09-01-2003-01-18 03-01-18 dp Interest GILEAD SCIENCES INC 1,950.001.950% Due 03-01-2203-01-18 03-01-18 dp Interest MCDONALDS CORP M/T/N 5,350.005.350% Due 03-01-1803-01-18 03-01-18 dp Sale MCDONALDS CORP M/T/N 200,000.005.350% Due 03-01-1803-01-18 03-01-18 dp Transfer from CASH RECEIVABLE 846.6703-02-18 03-02-18 dp Transfer from CASH RECEIVABLE 1,201.0303-09-18 03-09-18 dp Interest WELLS FARGO & COMPANY 3,300.003.300% Due 09-09-2403-15-18 03-15-18 dp Interest AVALONBAY COMMUNITIES 2,850.002.850% Due 03-15-231328
Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 03-01-18 To 03-31-18Trade Settle TranDate Date Code Activity Security Amount03-15-18 03-15-18 dp Interest FHLMC POOL G14203 94.064.000% Due 04-01-2603-15-18 03-15-18 dp Paydown FHLMC POOL G14203 614.164.000% Due 04-01-2603-16-18 03-19-18 wd Purchase FHLB -199,580.003.625% Due 03-19-2703-16-18 03-19-18 dp Sale US TREASURY NOTES 142,892.582.250% Due 02-15-2703-16-18 03-19-18 dp Accrued Interest US TREASURY NOTES 298.342.250% Due 02-15-2703-19-18 03-23-18 dp Dividend FLEXSHARES QUAL DIV ETF 5,819.0803-20-18 03-20-18 wd Withdrawal from Portfolio -358.6803-22-18 03-28-18 dp Dividend ISHARES CORE S&P MIDCAP 400 ETF10,749.6703-22-18 03-28-18 dp Dividend ISHARES S&P SMALLCAP 600 INDEX ETF4,525.3703-23-18 03-25-18 dp Interest TORONTO-DOMINION BANK 2,250.002.250% Due 09-25-1903-26-18 03-29-18 dp Dividend VANGUARD REIT ETF 9,886.8003-29-18 03-29-18 dp Interest FHLMC 2,125.001.700% Due 09-29-2003-31-18 Ending Balance 1,097,581.01DIVIDEND ACCRUAL03-01-18 Beginning Balance 0.0003-16-18 04-30-18 dp Dividend SPDR S&P 500 ETF 17,219.3703-31-18 Ending Balance 17,219.372329
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Jeff Tucker, Fire Chief
DATE: May 9, 2018
SUBJECT: May 2018 Mid-Month Report – City of Kenai Fire Department
First the first quarter of 2018 our call volume is up slightly as compared to 2017. 478 calls for
service in 2018 as compared to 471 in 2017.
This past month has seen the announcement of the retirement of our Fire Marshal Tommy
Carver. Tommy will be retiring with over 22 years of service with the City, and his retirement
party will be held on June 5th.
With the retirement of our Fire Marshal, an internal posting was done to fill the position, and
Firefighter Jeremy Hamilton was selected to fill the open position. Jeremy is currently shadowing
Fire Marshal Carver on his shift as he prepares to transition into his new position. He also
attended the Alaska Fire and Arson Investigators Conference in Anchorage in April and at the
conclusion of the conference took the State Arson Investigators test. Jeremy’s first official day
in his new position will be June 4th, 2018.
With the promotion of Jeremy Hamilton to Fire Marshal, the department will have a vacant
firefighter position. The City Manager authorized the department to hire off of our last testing list
and the department. The department has offered Colin Morse a position with the department.
Colin is from Kenai and will begin on May 21st, 2018.
In April Firefighter Jesse Tauriainen attended the Advanced Aircraft Rescue Firefighting course
at the Beacon Training Center. The department has completed its annual forestry refresher
course for all of our members. The department participated in the FAA part 139 certification
inspection of the airport.
Chief Tucker attended the annual Congressional Fire Service Institute Symposium in
Washington DC. In addition to the symposium, Chief Tucker and a delegation of other Alaska
Fire Chiefs met with the Alaska Congressional delegation.
330
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary Jo Joiner
DATE: May 3, 2018
SUBJECT: Library Mid-Month Report
______________________________________________________________________
April Circulation Figures
Adult Fiction 1,256 Internet Access 931
Adult Non-Fiction 890 iPad use 200
Young Adult Fiction 210 Video 0
Periodicals 94 Room Booking 193
Juvenile Fiction 399 Music 23
Juvenile Non-Fiction 339 DVDs 2,139
Easy Fiction 1,035 Audio books 85
Easy Non-Fiction 166 Miscellaneous 143
Interlibrary Loan 3 Computer Programs
Books – Consortium 233 Media – Consortium 116
Total Print 4,625 Total Non-Print 3,830
Total Circulation 4/18 8,455 Downloadable Audio 556
Total Circulation 4/17 8,637 Downloadable EBooks 444
% change -2% In-House circulation 237
331
Page 2 of 2
Library Mid-Month Report
Library Door Count……. Not available
Income
Fines $ 666.75
Xerox 222.00
Lost/Damaged 10.00
Test Proctoring Fee 40.00
Printing 534.50
Other 0.00
Total income $ 1,473.25
In April 1 volunteer worked about 17 hours. There were 14 children’s programs with 423 total in
attendance, and 12 adult and family programs with 88 attendees. Two school groups toured the library
with 74 children. In April we ordered 6 interlibrary loan items not available through the consortium and
received 4 items, we returned 4 items and loaned 21 items to other libraries who are out of state or not
in the consortium.
Library Cards Issued April
Homer 2
ILL 2
Kenai 37
Nikiski 1
Non-Resident 0
Other Peninsula 1
Soldotna 5
Sterling 1
Total 49
332
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Robert J. Frates, Parks & Recreation Director
DATE: May 7, 2018
SUBJECT: Mid-month Report - May
______________________________________________________________________
The department has been busy with pre-season maintenance activities, including ballfields,
cleaning shelters, delivering trash receptacles, sand removal, and delivering equipment to City
Shop for routine servicing.
Staff member Ed Brusven completed constructing frames to accept the new interpretive display
signs for the Kenai River Flats Boardwalk. Signs will be installed before end of May.
KCHS students completed the first bike repair station. The department had the station powder
coated and staff will attach the tools this week. The plan is to introduce this as a static display
during the Community Bike Safety event held May 12 at the Walmart parking lot. This event is a
collaborative effort between several organizations, departments and community volunteers.
The community-wide clean-up is scheduled for May 11-19. Other events/activities include the
Kenai Rotary Club Soap Box Derby (May 12), Kenai Little League Opening Ceremonies (May 19),
and the Annual Torch Run (May 19). The department set up a Facebook page and so many of
the upcoming and future events and activities will be posted on this site.
KCHS softball and baseball are in full swing and both programs have done a good job assisting
with field maintenance. The new bleachers serving the adult softball field #3 have been placed.
The Kenai Rotary Club is working on getting a couple plaques made to recognize them as donors.
The director has been busy assembling our Temporary hires for the upcoming summer season.
Additionally, Jacob Hart has been hired as a Full-time Laborer. Mr. Hart will begin his service to
his community on May 14.
333
MEMORANDUM
TO: Paul Ostrander, City Manager
FROM: David Ross, Police Chief
DATE: 5/7/2018
SUBJECT: Police & Communications Department Activity – Month of April 2018
Police handled 730 calls for service (year to date the police call volume is up 10.5% over the
same period last year and 18% over the same period in 2016). Dispatch received 259 9-1-1
calls, 193 of which came from cell phones. Officers made 43 arrests. Traffic enforcement
resulted in 135 warnings, 10 citations for speeding, 2 for seatbelt violations, 3 citations for
equipment violations, and 46 citations for “other.”
There were 10 DUI arrests (0 felony). Officers investigated 10 motor vehicle crashes. There
was one collision involving a moose, and there was 1 involving alcohol or drugs.
April training included: One officer attended two days of crime scene processing training in Kenai.
One officer attended three days of Drug Recognition Expert (DRE) training in Anchorage. Five
officers attended a half day of wildlife hazing training in Kenai. One officer participated in the
DPS academy in Sitka as a TAC officer for two weeks. One officer attended a week long boat
operator course in Kenai. The KPD officer on the SERT team started a week long in-service
training in Anchorage. Eight officers attended a class on strangulation investigation procedures
in Kenai. An officer and a dispatcher attended AFLA/FMLA/Worker’s Comp training in Soldotna.
All dispatchers attended some computer training at Kenai Peninsula College. Two dispatchers
attended Navigator Emergency Medical Dispatching training in Las Vegas.
Along with assisting school administrators and handling multiple calls in the Kenai schools, the
School Resource Officer attended prom, participated in an intruder drill, and taught alcohol
education classes at KCHS.
334
Page 2 of 2
2671
997
2417
1090
2266
1142
0
1000
2000
3000
Total Police Service Calls 911 Calls Received
2018(Jan 1 - Apr 30)2017(Jan1 - Apr 30)2016(Jan 1 - Apr 30)
335
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Kathy Romain, Senior Center Director
DATE: May 7, 2018
SUBJECT: April Monthly Report
April 2018 Home Meals NTS Choice
Clients Meals Clients Meals
60+ Service Area 43 789 9 294
60+ Outside Service Area 1 28 1 28
Under 60 + Service Area 1 9 4 112
Under 60+ Outside Service
Area
0 0 1 27
Subtotals 45 826 15 461
Total 1287
• During the month of April, 56 volunteers donated 782 hours of their time; 41
individuals used the Social Security Video Service; and 1,188 congregate meals were served in
the dining room. The Director and the Administrative Assistant had 25 appointments for various
senior related issues in the month of April. The Administrative Assistant attended the APEI
Training in Soldotna on a variety of supervisory topics.
• The Senior Center hosted the Area Wide Care Coordinator’s Luncheon on April
17. This group meets monthly to discuss various care topics related to Medicaid Waiver and
partnerships resolving issues for our mutual clients.
• The monthly No-Host Dinner was at Sunrise Inn in Cooper Landing with 12 in
attendance. April 13 was Scrabble Day and at lunch, each table participated to solve a giant
crossword puzzle. April 27 was National Tell-a-Story Day with various seniors sharing their stories
during the noon hour. We finished out the month celebrating Hairstyle Appreciation Day with a
picture quiz related to different hairstyles and their names based on popular culture in the last 100
years. • The State of Alaska/DHSS announced an increase in our Nutrition Services
Incentive Program (NSIP) from .75 per meal to $1.00 per meal. This is a reimbursement given
each month based on meals served under the Nutrition, Transportation and Services Grant.
336
PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW
COUNCIL MEETING OF: MAY 16, 2018
VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT
COOL AIR MECHANICAL REPAIR TO LIBRARY BOILERS BUILDINGS REPAIRS & MAINTENANCE 8 ,887.60
LEGACY ELECTRIC MAIN STREET ELECTRICALWORK PUF CONSTRUCTION 6 ,800.00
PENINSULA PUMPING PORTA POTTIE RENTAL RECREATION RENTALS 3,500.00
ALASKA RESCUE BOAT RESCUE CLASS PUF PROFESSIONAL SERVICES 8,700.00
FERGUSON ENTERPRSES VACTOR RODDER HOSE SEWER OPERATING SUPPLIES 3,000.00
MUNICIPAL EMERGENCY SERVICES FIRE HOSE FIRE SMALL TOOLS 4 ,596.40
,
BAILEY'S FURNITURE OFFICE FURNITURE POLICE SMALL TOOLS 2 ,689.91
337
~ril 2018 Ne"s lc tter
.1,:t: ,..,,. ., '
I
I Kenai Historical Society
P.O. Box 1348
Kenai, Alaska 99611
Board of Directors:
Officers:
President-June Harris
Vice President-Virginia Walters
Secretary-Sbaron Fisher
Treasurer-Katherine Thompson
,Joe I lnrris Betty Idlemnn
Bill Nelson Dave Thompson
Frosty Walters
Preserving History
Jackie Benson Pels, speaker for the Kenai Peninsula
Historical Association conference on May 5, was born
in Seward and graduated from high school in Kenai. Be-
ginning with the memoirs of her late stepfather, Ralph
Soberg, who was general foreman for construction of
the St e rling Highway, she and her designer partner, Da-
vid Johnson, have published more than 30 books of
personal and community history, including her own
Unga Island Girl: Ruth's Book; Any Tonnage, Any
Ocean, a biography of Capt. Walter Jackin sky of
Ninilchik; Family After All: Alaska's Jesse Lee Home-
Vol. II, Seward, 1925-1965; and Framed by Sea & Sky:
Community Art in Seward, mural capital of Alaska.
Fo cus ing on Kenai Peninsula histories, s he'll talk about
the work of an editor and varying ways to tell a s tory,
and introduce the newest memoir from Hardscratch
Press, David Leuthe's The 50-Year Summer.
I would like to talce this opportunity to say an advance
thank you to Jackiefor h elping in the fdfort to preserve
our local history. Sharon Fisher
INSIDE THIS ISSUE:
• PRJ'.Sl·:RVING HISTORY
• Kenni Municipal Airport by
llrian Evans from Narratives 011
th e Kenai-Soldotna Community
ANNOUNCE.\lENIS
IF YOU llAVE NOT, Pll~ASH
HP.NEW YOUR S10 MEMBl!.H-
SHI P TO CONTI NUE RECEIV-
1 NG THE NEWSLETTER.
WE NEED COMMITM E NTS
HWM MEMBERS TO l'RO·
VIOi!. BAKED GOODS TO nm
MAY 5th EVENT-WE ARE
HOSTING THE KENAI PENIN-
SUl.A lllSTORICAL .\SSOC'I.\·
TIOS Sf'J.11 ·.\NNUAl. :Otl\ET-
I NG. C.A l .l .JUS E AT 283-1q40.
Minutes of the April Meet-
ing will be printed in the
August 2018 issue of the
Newsletter
•••••••••••••••
KENAl HISTORICAL SOCIETY NEWSLETTER
Written by Sharon Fisher
I ( you would like t o contribute ideas and information to the n cwiilcller , please contact m e at 776-8254. I welcome and would
entertain any ideas you may have for articles, and would appreciate being contacted if you see CJTOrs in the information con-
tained in the newsletter.
338
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KENAI MUllCIPAL AIRPORT
by Brian Evans
The Kenai Municipal Airport 1s 60 air miles from Anchor-
age, in a central location, has an elevation of 93 feet wfth
an average temperature of 61 degrees. It consists of one
terminal, one control tower, a 7.211 feet fn length and 150
feet fn wfdth runway. and an industrial park. It has an all-
weat~er runway that offers flatter appl'Oathes. better flying
weather, less congestion, lower atrport fees. rental ra~es.
local taxes, more parking and development space, and a greater
abflfty to. accomodate the operator than any comparab~e fac11-
fty tp Alaska. The airport f s also used as an alternate for
Anchorage. It lfes equf-dfstant from any_ mineral exploration
f n the state.
Before there was an airfield, planes had to land on the
beach. In the winter be.cause of snow and tee on the beachi
the area south of the present runway would be cleared for
planes to land on skis.
Sometime in 1941 an airport was constructed by the U.S.
Afr Force on 'ublic domain under Afr Navigation Site With-
drawal No. 156. The new s.ooo feet long runway was completed
by the Cfvf 1 Aeronautics Admfnistratfon fn 1942 •• At times
someone with a vehicle had to chase moose, caribou. and bears
off the runway. In the wf nter, snow on the runway was p-cked
down by a huge roller.
The first a1rlfnes to use the airport were Alaska Afr-
lfnes and Pacfffc Northern Airways, both arrfvfng fn 1946.
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Both airlines brought in people, supplies, and mail, wtth
Pacific Northern Air11n~s bein~ the chief supplier.
Because of the private plane boom, the Kenai airstrip
was lengthened by 1,000 feet w1th steel pierced plank land-
ing mats, 150 feet wide, at both ends. The center of the
runway was surfaced with gravel. Thfs project was funded by
the Air Force. The runway was then lighted with medium
intensity lights and a 24-inch duplex rotating beacon with
clear and green lenses, mounted on a 51-foot tower adjacent
to the then flight service station on the east side of the
runway. There were three different apron areas adjacent to
the runway, one of which was constructed for the Air Force. .
Other F.A.A. facilities· were a low frequencies radio
range (SBRA), a very hfgh frequencies omni-directional radio
range (UDRTAC), a communications transmitter sfte, and a
living quarters area for F.A.A. personnel which ts now owned
by the City of Kenai.
· The ff rst airport terminal buf ldfng was buf lt in the
summer of 1952 and was located north of the spur highway
near the cemetery.
ou~tng the Korean War, the Air Force based single engine
Jet fighters at the Kenaf airport. The airport facilities
were maintained by the F.A.A. by an agreement. This mainten-
ance agreement was cancelled by the Air Force on June 30, 1962.
However, the Air Force still retained four tracts of various
sizes adjacent to the airport under F.A.A. permit.
In 1959 the F.A.A. was directed to transfer certain air-
ports that were being operated as intermediate fields to the
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new State of Alaska. Included in this group was the Kenai
Airport. The airport was originally built to provide a
landing field for small aircraft, such as the DC-3 and smaller.
The planes were used to haul in material for the construction,
operation and llHlintenance of the airways communications sta-
tion and nav1gat1onal aids built at Kenai as part of the Alaska
Airways System. Since there was no high-way, heavy equipment
and supplies were transported during the open navigation sea-
son by barge. When the highway system between Anchorage,
Seward, and the Peninsula was completed, the Kenai airport was
no longer a F.A.A. requirement in operating the airways station
and navigational aids.
Trans1t1ona1 grant funds in the amount of $21,000.00 per
year for the fiscal years of 1960 through 1962 were allocated
to take care of maintenance of the airport. Some of these
funds were used f n the Av1atton Services Buf ldf ng, which was
completed fn November, 1960, becoming the largest commercial
structure in Kenai at that time.
In May, 1963, the Kenai City Council established the Kenai
Airport Commission, which was formed to establish policies,
eules and regulations for the airport. The Airport Commission
was a vital factor in the development of the airport and its
operations until September 1, 1965, when the Commission was
abolished.
In 1965 an airport improvement project got under way_ with
a cost of approximately $1,146,667.00. Plans were also developed
for use and leasing of land tn the small aircraft apron; (1)
Small Aircraft Apron Use Plan, and (2) Small Aircraft Apron
Leasing Program.
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There were numerous improvements in 1967, such as 2,500
feet of additional runway whf ch was paved f n the sprf ng of
1968, the completion of storage parking for 80 more vehicles,
an addftfonal 1,870 feet of oaved taxiways, and conversion of ..
medium intensity runway lighting to hfgh intensity.
On January 26, 1967, Pacific Northern Airlines moved to
the newly completed Kenai Afr Terminal. At 12:35 p.m. that
day a constellation flight landed and the first passengers
passed through the new facility. In February the contractor
of the terminal, J. B. Narrack Co.1 turned over the akeys"
to the city •. On Saturday nfghtl March 11. an offtcfal open
house celebration was held. Prfor to this celebration ft
was believed that the passenger space was inadequate for the
amount of traffic already usfng the building. Because of this,
the front porch area was glassed fn to give more room.
In June of 1967 Pacific Northern Airlines and Western
Airlines negotiated a merger. On July 1, 1967, Pacific
·Northern Airlines, known also as •Alaska Flag Line• wfth
0 Stars of Golda made way for the 0 Red, White, and Black Chfef,a
Western Airlines.
Kenai owns 1,600 acres of airport lands, of which 10.2
acres was offered for rampsfde operatfons:bordertng on the
main taxiway. Eighteen and eight-tenths acres were available
f n an undeveloped state for operatton adjacent to the rampstta.
In the industrial park. 6.8 acres of lots were avatlable for
construction and 16.6 acres for an industrial commercial
subd1v1sfon.
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..... It was safd that •the greatest thing that the ctty ever
dfd was to take over the airport from the state.a* Most of . .
the enterprises fn the fndustrf al air park were new business-
es or branches of large companies. The entire project was
financed by an Economic Development Adminf stratfon matching
fund. EDA declared that the project had been one of the most
successful they had ever partfcf pated f n.
Because of the building of the industrial air park, the
Cfty of Kenai completed fnstallatfons of water. sewers. paved
streets. and underground •lectrfc lfnes. Other commercial
utf littes installed natural gas lfnes and underground tele·
phone ltnes to the area.
I~ 1970 Western Afrlfnes moved out of Kenaf and Wten Afr
Alaska took over. movfng out tn 1973, but Jtfll retafnfng
landing rights to the present tfme. Presently commercfal
service is being operated by Alaska Aerona~ttcal Industries
(A.A.I.) wtth dafly co11111uter service to Anchorage, Cordova.·
Valdez. and Homer.
In 1973 an F.A.A. atr traffic control tower was added
for addtttonal safety and more equipment. The flfght ser-
vices station ts open 24 hours every day,· whf le the control
tower ts used from 6:00 a.m. to 10:00 p.m. from Aprf 1 to
September and fn winter months from 7:00 a.m. to 7:00 p.m.
The flight services station wtth a total of 9 people working,
takes offfcfal weather reports. and navfgat1ona1 aids being
continually operated. When the tower 1s closed, the pilots
*As quoted by Frank Adams of the ftrm of Adams, Corthell,
Lee, and lfnce and Associates, who participated as project
engineers fn the Cook Inlet Industrial Afr Park Project. 109
343
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do their own controlling of landings and take-offs. The . .
control tower •. with a total of five people working. controls
a five mfle radius of the airport, and the F.A.A. flight
service station assists in a 400 mile radius.
Other improvements in 1973 were addft1ona1 paved taxi-
ways, loading ramp, and a paved access road to the control
tower, all totaling $507.627.00. Security regulations re-
quired a complete surrounding security fence which was com-
pleted in 1974 with a cost of $463,429.00.
Plans for the airport now include studies of airport
lands and development of a comprehensive land use plan, fn-
stallatfon of a radio-controlled lighting system, and an
instrument landing system.
In all the years the Kenai airport has been in use there
have been only a total of six accidents resulting in two
fatalities. The two fatalities occurred in 1971 when two
private planes collided fn mid-air over the afrffeld, killing
one pilot and one student pilot trainee.
The intensive use of the airport in prior years by the
military resulted in only two separate accidents, one a C-119
Flying Boxcar and one a C-47 cargo plane. There were no
serious injuries to either crew.
Use of the Kenai airport as an alternate to Anchorage
International Airport has been nominal in the past, due prf-
mar1 ly to the extensive instrument landing system at the
Anchorage field, and due also to the lack of a U.S. Customs
Office and personnel at the Kenai airport.
According to F.A.A. flight service station employees,
once a Northwest Orfet DC-7 flight from Tokyo to Anchorage
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mide an emergency landing at Kenaf after losing power f n three
of its.four engines. The passengers and the crew had to re-
• r
main aboard the disabled craft untfl another plane, accompanied
by U.S. custom officials, was brought fn from Anchorage. The
lack of a customs office at Kenai prevented the passengers
from d1sembarkfng the disabled plane.
The largest plane to land at the airport was a C-141
Star11fter. The total number of planes (landings and take-
offs) ustng the Kenaf airport fn 1974 was 48,814 wtth the
number of 1975 estimated to be around 52,000, making Kenai
the thfrd &qstest airport in Alaska.
The airport is currently being operated without a full-
time a'rport manager. The current City Manager is designated
as the Acting Airport Manager. The ff rst airport manager
was George L. 0 Red• Jaynes, who served from 1963 to 1969.
Gilbert StaffoPd was appointed in 1969 for a· short period.
Many persons credit the late 6eorge·L. Jaynes as the driving
force behind many of the airport improv•ments and past
operations. Among other achievements, he is credited wfth
single-handedly digging the water well to serve the newly
constructed airport terminal bufldfng, which was built prior
to the extension of the city water lfnes that presently serve
the ter11fnal building and surrounding area.
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YOUT -----· AIRPOR T -LA ---
Po r k I n o
Ar ea
Grad ient· . 36 -1 8:+0.11010
R1.1nwo y no t morkod
--···-----
NOTE : Civ ilian olrcrolt In Air For e not p1 rmltt e d
• porltlno or eo.
R !V ER
1600
mf • 10 00'
Stoo l Mot
0
-~·-·-., ..
Scal e In Feet
1600 3200
11 2 TAKEN FR Ala k OM Ken a i A' s a, Reg· irport ion, 1962. • Federa l A . v1 at ion A gency, 346
KENAI HISTORIC SOCIETY
OurOrgani1.ation
T here has been a Hi storic Socic ly
since the days beforo Kcnoi bccom·
ing a city. ·111c Sociely Wll8 fanned 11
few years before Statehood in 1959,
and then went inactive in the early
6o's. It restarted in the latter pan of
the 6o"s and has met regularly since.
The Society had a museum in Fon
Kenny for some )"e3l'S, and t hen
continued lo meet nftcr that closcd.
The non-profit Society implemented
and operates the Kenai Historic
Cubins Parle, open for tours in the
summer months. We have office
space at the Moosemcat John cabin,
but are not open to the public in
that building. Our member meetings
are Sept., Nov., Dec., Jan., Feb.,
Mar., and April at the Kenai Visitor
Center. For Oct. and Moy, "'C meet
with the Kenai Peninwla Historiail
Association. Please check the Meet·
ings and Announcements SCdion on
this page for date information.
Kenai Historic Society
P.O. Box 1348
Kenai, AK 99611
Phone: 283-1946
Phone: 776-8254
E-mail: ald..-yaker@yahoo.com
www.fucebook.com/Kenai-
H istorical-society
MEETINGS AND ANNOUNCEMENTS
Kenai Peninsula Historica l Association
Semi-Annual Meeting -May 5 , 2018
Open to the Public
9 :00 a .m. -Doors Open
Coffee and Breakfast Treats
Provided by Kenai Historical Society Members
10:00 a.m.-Business Meeting
12:00-Lunch
Provide d by Kenai His torical S ociety
and KPHA M e mbers
1:00 p.m.-Guest Speaker Jackie Benson Pcls
Publishing and Editing Books of
Pers ona l and Community His tory
Ill 'ii
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Ill UI
347
Kenai City Council
Frank T. Richards, P.E.
Senior Vice President, Program Management
May 16, 2018
Agenda
2
•Alaska LNG Project Status.
•LNG Plant –City of Kenai Water Supply.
Project Status
•Alaska LNG activities are gaining momentum.
Joint Development Agreement group (AGDC, Sinopec, Bank of
China, China Investment Corp) transitioning from “Framework”
phase to “Definitive”.
MOU’s & LOI’s with KOGAS, Tokyo Gas, & PetroVietnam Gas
advancing.
A number of un-announced MOU’s & LOI’s are also advancing.
Negotiations continue with upstream producers on Gas Supply;
-Precedent Agreement signed with BP.
Discussions continue with DNR, DOR, and other SOA agencies re
their roles.
Goldman Sachs & Bank of China appointed as investment advisors.
3
Project Status
•Alaska LNG regulatory activities are on-schedule:
FERC issued EIS “schedule notice” in March.
-Draft by Mar, 2019; Final by Dec, 2019; Record of Decision by Mar, 2020.
Other major federal permit advancing.
-Corps of Engineers Section 404, Air Quality, Incidental Take Authorization.
AGDC responded to 81% of the FERC 15 Feb, 2018 “DR4” comments.
-AGDC responded to 100% of the 2017 Data Requests (DR) 1, 2, & 3 comments.
•Alaska LNG technical activities are positioning for action:
JDA participant involvement under discussion.
Consultations underway with Environmental Protection Agency (EPA),
National Park Service (NPS) and U.S. Fish & Wildlife Service (USF&WS).
Design/construction phase contracting strategy being finalized;
-Contingent on funding.
4
Timeline of Financing and De-risking
5
6
2018 Activities
Advance talks with
Engineering,
Procurement and
Construction (EPC)
contractors.
Finalize FEED to Lump
Sum Turn Key (LSTK)
strategy.
Coordinate with
Goldman Sachs on
Equity Participation
Offering.
Work with Joint
Development
Agreement (JDA)
partners to finalize
framework.
Complete summer
cultural resources field
program.
Advance Kenai Spur
Highway (KSH)
alternatives.
Finalizing ASAP
wetland compensatory
mitigation plan.
FERC Engineering Data
Request.
Presenting at World
Gas Conference in
Washington, D.C., June
2018.
7
Kenai LNG Plant Facilities
Water Supply Flow Rates
•Three water supply rates to remember:
250 gpm peak during construction, overall period from about 2020-
2026, to support personnel in the construction camp
150 gpm sustained for the full three-train operation, transitioning
from construction (operations to start in 2024-2025) and continuing
for 30 years or more
1000 gpm for 24 hours to refill firewater tank as per NFPA code;
may never occur but system must be capable
•Nearby operational facilities use more than 150 gpm since
they have cooling towers as part of their process; Alaska
LNG will use airfin coolers.
8
Kenai Water Supply Parameters
•Current Demand:
Average daily demand, Aug 2016 to Jul 2017: 504 gpm.
Average summer demand, Aug 2016 to Jul 2017: 565 gpm.
Peak monthly average, 2014-2017: 625 gpm.
•Forecast :
Estimated Kenai demand, 2025: 910 gpm.
Additional demand, new users MP 14-20: 232 gpm.
LNG plant construction camp demand: peak 250 gpm.
•Conclusion:
Design target 1400-1700 gpm, therefore need 1 or 2 new wells.
9
Kenai Water Supply Parameters
•Existing filtration capacity: 1,042 gpm, augment filters?
•Existing storage: 3 million gallons at airport and
1 million at wellfield.
•Pump stations:
One needed for the fire case to the LNG plant.
One needed to improve hydraulics elsewhere in Kenai.
10
Next Steps
•Continue consultations with City of Kenai.
•Study 2-mile radius of Beaver Loop wellfield, identify locations of private wells
and likely locations for monitor wells.
•Determine maximum pump test possible using existing system.
•Develop next-level engineering scope and budget for:
Updating existing hydrogeologic model.
Aquifer pump test plan; including duration, monitor points, disposal, & permitting.
Install monitor wells.
Obtain baseline well/water data for wells within impact radius.
Capacity test for filters; augment capacity if required.
Drill & complete 2 X 12” wells within wellfield, add/replace 500 ft of yard piping, add
yard pump station.
Add pump station at Seward Avenue.
Extend 16” HDPE line from MP14 to MP20.
Contingency plan for arsenic removal.
Develop capital and operating expense estimates.
11
12
Questions?
Alaska Gasline Development Corporation
3201 C Street, Suite 200
Anchorage, AK 99503
Phone: (907) 330-6300
Website: www.Alaska-lng.com
Get Involved.
Get Ready.
Get Engaged.
agdc.us
Facebook.com/AKGaslineDevelopmentCorp
Alaska Gasline Development Corporation
Beach Clean Up with
Magnetic Sweepers
By Riley Graves
Why Am I Doing This Project?
Using My Prototype
The metal items I found in 20 minutes
Luckily, these items can be recycled at the
Peninsula Scrap and Salvage Company.
My Design
Cost range from
$800
into the
thousands
depending on
make and model
M
y
P
r
o
t
o
t
y
p
e
Commercially Available Models
●Blue Streak Equipment
●Shield Magnetics
●Eriez
How it would look
Possible Beach Clean Up Grants
●MAPC Technical Assistance Program (TAP)
●The Ocean Foundation
●NOAA Marine Debris Program
Thank you for your time.
Now, I will continue with my demonstration.
Kenai City Council Meeting Page 1 of 3
May 16, 2018
ACTION AGENDA
KENAI CITY COUNCIL – REGULAR MEETING
MAY 16, 2018 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
http://www.kenai.city
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda (Public comment limited to three (3) minutes per speaker; thirty (30)
minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non-controversial
by the council and will be approved by one motion. There will be no separate
discussion of these items unless a council member so requests, in which case the item
will be removed from the consent agenda and considered in its normal sequence on
the agenda as part of the General Orders.
B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per
speaker)
1. Frank Richards, Alaska Gasline Development Corporation – LNG Project
Presentation.
2. Riley Graves, Caring for the Kenai Contestant – Magnetic Beach Sweeper Concept
Overview.
C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per
speaker; thirty (30) minutes aggregated)
D. PUBLIC HEARINGS
1. ENACTED UNANIMOUSLY. Ordinance No. 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 Ron Hyde. (Administration)
2. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2018-21 - Amending
Policy 2016-01, Procedures for Commissions, Committees and Council on Aging –to
Clarify the Policy on Council’s Referral of Items for the Agendas of the City’s
Commissions, Committees and the Council on Aging Prior to any Final Council Action.
(Council Member Molloy)
E. MINUTES
Kenai City Council Meeting Page 2 of 3
May 16, 2018
1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of May 2, 2018
F. UNFINISHED BUSINESS
1. ENACTED AS AMENDED. 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) [Clerk’s Note:
This Item was Postponed to this Meeting from the May 2, 2018 Meeting; A Motion to
Enact is On the Floor.]
G. NEW BUSINESS
1. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Bills to be Ratified.
2. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Non-Objection to
New Marijuana Product Manufacturing Facility License for Herban Extracts, LLC –
License No. 14432.
3. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 06/06/2018.
*Ordinance No. 3022-2018 – Adopting the Annual Budget for the Fiscal Year
Commencing July 1, 2018 and Ending June 30, 2019 And Committing $750,000 of
General Fund, Fund Balance For Capital Improvements, Amending The Salary
Schedule In Kenai Municipal Code Chapter 23.55 - Pay Plan, Amending Employee
Classifications In Kenai Municipal Code Chapter 23.50, And Amending Police
Department Qualification Pay In Kenai Municipal Code Chapter 23.55.
(Administration)
4. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 06/06/2018.
*Ordinance No. 3023-2018 – Increasing FY2018 General Fund Estimated Revenues
and Appropriations by $13,747 and FY2019 General Fund Estimated Revenues and
Appropriations by $35,996 in the General Fund Parks, Recreation and Beautification
Department for the Receipt of a Grant from the United States Environmental Protection
Agency Passed through the State of Alaska Department of Environmental
Conservation for Bacteria Level Monitoring on the City’s Beaches During the 2018 -
2019 Personal Use Fishery. (Administration)
5. SPECIAL USE PERMIT APPROVED. Action/Approval – Approve a Special Use
Permit to HDL Engineering Consultants, LLC, for Storage Space at Tract A, FBO
Subdivision. (Administration)
6. SPECIAL USE PERMIT APPROVED. Action/Approval – Special Use Permit to
Reddi Towing & Salvage, LLC, for Impound Lot Space at Lot 4, Block 5, Cook Inlet
Industrial Park. (Administration)
7. Discussion – Dipnet Vendor Operations (City Clerk)
H. COMMISSION/COMMITTEE REPORTS
Kenai City Council Meeting Page 3 of 3
May 16, 2018
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Committee
7. Mini-Grant Steering Committee
I. REPORT OF THE MAYOR
J. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
L. EXECUTIVE SESSION
1. Review and Discussion of the City Attorney’s Evaluation which may be a Subject that
Tends to Prejudice the Reputation and Character of the City Attorney [AS
44.62.310(C)(2)].
M. PENDING ITEMS – None.
N. ADJOURNMENT
****************************************************************************************************
INFORMATION ITEMS
1. Purchase Orders between $2,500 and $15,000 for Council Review
2. Kenai Historical Society Newsletter – April 2018
The agenda and supporting documents are posted on the City’s website at www.kenai.city.
Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council
Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at
907-283-8231.
CITY OF KENAI
NOTICE OF ORDINANCES AND RESOLUTIONS
ADOPTED AT THE MAY 16, 2018
KENAI CITY COUNCIL MEETING
NOTICE IS HEREBY GIVEN the City of Kenai Council passed the following Ordinance(s)
and/or Resolution(s) at the above-referenced meeting.
1. ENACTED UNANIMOUSLY. Ordinance No. 3021-2018 -Determining that Tract C
Dragseth Subdivision -2017 Addition , Located within the East Y2 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 .
2. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2018-21 -Amending
Policy 2016-01 , Procedures for Commissions, Committees and Council on Aging -to
Clarify the Policy on Council's Referral of Items for the Agendas of the City 's
Commissions, Committees and the Council on Aging Prior to any Final Council
Action .
3. ENACTED AS AMENDED. 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.
Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk.
Please be advised, subject to legal limitations, ordinances and/or resolutions may have been
amended by the Council prior to adoption without further public notice .
NOTICE OF PUBLIC HEARING
MAY 16, 2018
CITY OF KENAI COUNCIL MEETING
NOTICE IS HEREBY GIVEN the City Council of the City of Kenai will conduct a public hearing
on the following Ordinance(s) and/or Resolution(s) on the above-noted meeting date:
1. Ordinance No. 3021-2018 -Determining that Tract C Dragseth Subdivision -2017
Addition, Located within the East~ 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 . (Administration)
2. Resolution No. 2018-21 -Amending Policy 2016-01 , Procedures for Commissions,
Committees and Council on Aging -to Clarify the Policy on Counc il's Referral of
Items for the Agendas of the City's Commissions, Committees and the Council on
Aging Prior to any Final Council Action . (Council Member Molloy)
The public hearing will commence at 6 :00 p.m., or as soon thereafter as business permits, in the
Kenai City Council Chambers, 210 Fidalgo Avenue, Kenai, Alaska, 99611. All interested
persons are invited to attend the meeting and participate in the public discussion. Written
comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 210 Fidalgo Avenue,
Kenai , AK, 99611.
Cop ies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk
and w ill be available at the meeting for public review. Please be advised , subject to legal
limitations, ordinances and/or resolutions may be amended by the Council prior to adoption
without further public notice .