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Home My WebLink About2018-06-06 Council Packet KENAI CITY COUNCIL - REGULAR MEETING JUNE 06, 2018 - 6:00 PM KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city A.CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AGENDA APPROVAL CONSENT AGENDA (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B.SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) - None. C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D.PUBLIC HEARINGS D.1.Ordinance No. 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) • Substitute Ordinance No. 3022-2018 Ordinance No. 3022-2018.pdf Ordinance No. 3022-2018 SUBSTITUTE.pdf D.2.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 D.3.Resolution No. 2018-22 – Approving a Lease of Airport Reserve Lands Between the City of 1 Kenai City Council Meeting Page 2 June 06, 2018 Kenai and Hilcorp Alaska, Inc., for Lot Five (5), Block One (1), FBO Subdivision and Lot Six (6), Block One (1), FBO Subdivision. (Administration) Resolution No. 2018-22.pdf D.4.Resolution No. 2018-23 – Approving the Purchase of Two Police Vehicles through State of Alaska Equipment Fleet Contract Pricing at a Total Cost of $71,861, Effective July 1, 2018. (Administration) Resolution No. 2018-23.pdf D.5.Resolution No. 2018-24 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Rental Rates for Airport Reserve Parcels Pursuant to KMC 21.10.090. (Administration) Resolution No. 2018-24.pdf D.6.Resolution No. 2018-25 – Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2018 and Ending June 30, 2019. (Administration) Resolution No. 2018-25.pdf D.7.Resolution No. 2018-26 – Authorizing a Contract with Premera Blue Cross Blue Shield of Alaska to Provide Employee Health Care to City Employees Effective July 1, 2018. (Administration) Resolution No. 2018-26.pdf D.8.Resolution No. 2018-27 – Authorizing Renewal of the City’s Insurance Coverage with Alaska Public Entity Insurance for July 1, 2018 through June 30, 2019. (Administration) Resolution No. 2018-27.pdf D.9.Resolution No. 2018-28 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to be Adopted in the FY2019 Budget Process to Include Adjusting Monthly Rental Rates at Vintage Pointe and Increasing Fees at the Kenai Municipal Airport. (Administration) Resolution No. 2018-28.pdf D.10.Resolution No. 2018-29 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to the City’s Animal Control Fees. (Administration) Resolution No. 2018-29.pdf D.11.Resolution No. 2018-30 – Authorizing a Budget Transfer within the General Fund Legislative to Parks, Recreation & Beautification Departments to Purchase Supplies for the Construction of a Display Pavilion for the City’s Historic Fire Truck. (Council Member Navarre) Resolution No. 2018-30.pdf D.12.Resolution No. 2018-31 – Authorizing a Budget Transfer for Repairs to the Heating and Ventilation Controls at the Airport Operations Facility. (Administration) Resolution No. 2018-31.pdf D.13.Resolution No. 2018-32 – Awarding an Agreement to Cook Inlet Spill Prevention and Response, Inc. for the Use of the Cranes, Offices, and Operating Area at the Kenai Boating Facility. (Administration) Resolution No. 2018-32.pdf E.MINUTES 2 Kenai City Council Meeting Page 3 June 06, 2018 E.1.*Special Meeting of May 14, 2018 05-14-18 Special Meeting Minutes - DRAFT.pdf E.2.*Special Meeting of May 15, 2018 05-15-18 Special Meeting Minutes - DRAFT.pdf E.3.*Regular Meeting of May 16, 2018 05-16-18 Council Minutes - DRAFT.pdf E.4.*Work Session of May 19, 2018 05-19-18 Work Session Summary - DRAFT.pdf F.UNFINISHED BUSINESS - None. G.NEW BUSINESS G.1.*Action/Approval – Bills to be Ratified. Payments over $15,000.pdf G.2.*Action/Approval – Purchase Orders Over $15,000 Purchase Orders over $15,000.pdf G.3.*Ordinance No. 3024-2018 – Increasing Estimated Revenue and Appropriations in the General and Airport Special Revenue Funds for FY2018 Fire Department Overtime in Excess of Budgeted Amounts. (Administration) Ordinance No. 3024-2018.pdf G.4.*Ordinance No. 3025-2018 – Amending Kenai Municipal Code 14.20.330 – Standards for Commercial Marijuana Establishments and Amending Kenai Municipal Code Chapter 14.22.010 – Land Use Table, to Prohibit Standard Marijuana Cultivation Facilities in Residential Zones. (Administration) Ordinance No. 3025-2018.pdf G.5.*Ordinance No. 3026-2018 – Authorizing the Sale of Real Property Described as Lot Six (6) A, Block One (1), Gusty Subdivision, according to Plat 86-76, City-Owned Airport Property Located Outside the Airport Reserve to Pingo Properties, Inc. and Geoffrey M. Graves. (Administration) Ordinance No. 3026-2018.pdf G.6.*Ordinance No. 3027-2018 – Authorizing the Sale of Real Property Described as Lot Four (4)A, Block Three (3), Cook Inlet Industrial Air Park Subdivision, 2014 Replat, City-Owned Airport Land Located Outside the Airport Reserve, to Schilling Rentals, a Partnership Owned by David and Michael Schilling. (Administration) Ordinance No. 3027-2018.pdf G.7.*Ordinance No. 3028-2018 – Amending Kenai Municipal Code 23.25.060 – Overtime, 23.30.050 – Business Hours and Hours of Work, and 23.40.020 – Holidays to Eliminate the Shift Schedule for the Sewer Treatment Plant Employees. (Administration) Ordinance No. 3028-2018.pdf G.8.*Ordinance No. 3029-2018 – Increasing Estimated Revenues and Appropriations in the General and Airport Land Sales Permanent Funds to Transfer Earnings in Excess of 3 Kenai City Council Meeting Page 4 June 06, 2018 Budgeted Amounts to the City’s General and Airport Special Revenue Fund. (Administration) Ordinance No. 3029-2018.pdf G.9.*Ordinance No. 3030-2018 – Increasing Estimate Revenues and Appropriations in the Municipal Roadway Improvement Capital Project Fund by the Proceed Amount from 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 as Previously Approved in Ordinance No. 2957-2017 (Substitute). (Administration) Ordinance No. 3030-2018.pdf G.10.*Ordinance No. 3031-2018 – Amending Kenai Municipal Code 23.10.020-Unclassified Service, to Allow Greater Flexibility in Certain City Benefits Received by the City Manager, Attorney, And Clerk, for Purposes of Recruitment and Retention. (Council Member Molloy) Ordinance No. 3031-2018.pdf G.11.*Ordinance No. 3032-2018 – Increasing Estimated Revenue and Appropriations in the Water & Sewer Fund tor Utility Costs in Excess of Budgeted Amounts. (Administration) Ordinance No. 3032-2018.pdf G.12.Action/Approval – First Amendment to Agreement for Janitorial Services for Kenai City Hall between the City of Kenai and Integrity Janitorial, LLC. (Administration) City Hall Janitorial Contract.pdf G.13.Action/Approval – First Amendment to Agreement for Janitorial Services for Kenai Airport between the City of Kenai and Precious Janitorial Ind. (Administration) Airport Janitorial Contract.pdf G.14.Action/Approval – First Amendment to Agreement for Janitorial Services for Kenai Visitor and Cultural Center between the City of Kenai and Precious Janitorial Ind. (Administration) Kenai Visitor and Cultural Center Janitorial Contract.pdf G.15.Action/Approval – First Amendment to Agreement for Janitorial Services for Kenai Community Library between the City of Kenai and Precious Janitorial Ind. (Administration) Community Library Janitorial Contract.pdf G.16.Action/Approval – First Amendment to Agreement for Janitorial Services for Kenai Police Department between the City of Kenai and Precious Janitorial Ind. (Administration) Police Department Janitorial Contract.pdf G.17.Action/Approval – Special Use Permit to Empire Airlines, Inc., for Aircraft Parking on the Apron. (Administration) SUP - Empire Airlines, Inc.pdf G.18.Action/Approval – Special Use Permit to CPD Alaska, LLC for Aviation Fueling on the Apron. (Administration) SUP - CPD Alaska, LLC.pdf G.19.Action/Approval – Special Use Permit to United Parcel Service Co., Inc. for Aircraft Loading and Parking on the Apron. (Administration) SUP - United Parcel Service Co., Inc.pdf G.20.Action/Approval – Special Use Permit to Everts Air Fuel, Inc. for Aircraft Loading and Parking. 4 Kenai City Council Meeting Page 5 June 06, 2018 (Administration) SUP - Everts Air Fuel, Inc..pdf H.COMMISSION/COMMITTEE REPORTS H.1.Council on Aging 05-10-18 COA Meeting Summary - DRAFT.pdf H.2.Airport Commission 05-10-18 Airport Summary - DRAFT.pdf H.3.Harbor Commission H.4.Parks and Recreation Commission H.5.Planning and Zoning Commission 05-09-18 P&Z Minutes - DRAFT.pdf 05-23-18 P&Z Minutes - DRAFT.pdf H.6.Beautification Committee 05-08-18 Beauty Summary - DRAFT.pdf H.7.Mini-Grant Steering Committee I.REPORT OF THE MAYOR J.ADMINISTRATION REPORTS J.1.City Manager City Manager Report.pdf J.2.City Attorney J.3.City Clerk K.ADDITIONAL PUBLIC COMMENT K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker) K.2.Council Comments L.EXECUTIVE SESSION M.PENDING ITEMS - None. INFORMATION ITEMS 5 Kenai City Council Meeting Page 6 June 06, 2018 Purchase Orders between $2,500 and $15,000 for Council Review Purchase Orders between $2,500 - $15,000.pdf N.ADJOURNMENT The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. 6 _____________________________________________________________________________________ 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. 7 Ordinance No. 3022-2018 Page 2 of 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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 8 Ordinance No. 3022-2018 Page 2 of 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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 9 Ordinance No. 3022-2018 Page 2 of 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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 10 Ordinance No. 3022-2018 Page 2 of 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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 11 Ordinance No. 3022-2018 Page 2 of 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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. 12 Ordinance No. 3022-2018 Page 2 of 7 _____________________________________________________________________________________ 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 13 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) 14 Page 2 of 3 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) 15 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 16 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$ -$ -$ -$ 17 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$ 18 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$ 19 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$ 20 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$ -$ -$ -$ -$ 21 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$ 22 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$ 23 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$ 24 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 -$ -$ -$ -$ -$ 25 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3022-2018 (SUBSTITUTE) 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. 26 Ordinance No. 3022-2018 Page 2 of 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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 $16,166,027 Enterprise/Internal Service Funds: Congregate Housing Fund 624,144 Employee Health Care Fund 2,391,806 Total Enterprise/Internal Service Funds 3,015,950 Special Revenue Funds: Personal Use Fishery Fund 555,113 Water & Sewer Fund 2,657,412 Airport Fund 3,161,504 Senior Citizen Fund 978,514 Airport Land Sale Permanent Fund 1,230,025 General Land Sale Permanent Fund 162,999 Total Special Revenue Funds 8,745,567 Debt Service Fund – Library Expansion Bonds 178,398 Total All Funds $28,105,942 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 10 25.17 25.80 26.43 27.06 27.69 28.32 28.95 29.57 30.20 27 Ordinance No. 3022-2018 Page 3 of 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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 28 Ordinance No. 3022-2018 Page 4 of 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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 29 Ordinance No. 3022-2018 Page 5 of 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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 Advanced Certification $[1,800] 3,000/year 30 Ordinance No. 3022-2018 Page 6 of 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] (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. 31 Ordinance No. 3022-2018 Page 7 of 7 _____________________________________________________________________________________ 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 32 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 30, 2018 SUBJECT: Ordinance 3022-2018 (SUBSTITUTE) 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. New summary pages for the all funds, after incorporating the changes, are attached for your review. Administration Recommended Amendments: The following are the Administration’s recommended changes that have been incorporated into the draft budget and appropriating ordinance. General Fund Revenues: Property Tax $(21,787) Municipal Assistance 50,232 PERS On-behalf funding (534) Total Revenues 27,911 Expenditures: Non-Departmental PERS $ (534) Insurance 12,818 Transfer Out 49,583 Building: Salaries 1,023 Overtime (13) Leave 15 Medicare 15 33 Page 2 of 6 Ordinance 3022-2018 (SUBSTITUTE) PERS 222 Unemployment Insurance 4 Workers’ Compensation (332) Library: Salaries 2,518 Leave (844) Medicare 25 Social Security 825 PERS (2,328) Unemployment Insurance 9 Workers’ Compensation (336) Health & Life Insurance (1) Supplemental Retirement (423) Clerk – Workers’ Compensation (109) Legislative – Workers’ Compensation (39) Legal – Workers’ Compensation (125) Manager – Workers’ Compensation (188) Human Resources – Workers’ Compensation (91) Finance – Workers’ Compensation (358) Land – Workers’ Compensation (6) Planning & Zoning – Workers’ Compensation (99) Police – Workers’ Compensation (5,155) Fire – Workers’ Compensation (24,989) Communications – Workers’ Compensation (416) Animal Control – Workers’ Compensation (559) Public Works Administration – Workers’ Compensation (95) Shop – Workers’ Compensation (1,495) Streets – Workers’ Compensation (831) Parks, Recreation & Beautification – Workers’ Compensation (2,702) Dock – Workers’ Compensation (46 ) Total Expenditures 24,943 Projected Lapse (1,232) Total General Fund Change $ 1,736 These General Fund changes are the result of the following items: 1. Anticipated increase in Municipal Assistance, $50,232. 2. Revision to assessed value projections provided by Borough Assessor, $(21,787). 3. 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. 34 Page 3 of 6 Ordinance 3022-2018 (SUBSTITUTE) 4. 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. 5. 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. 6. Adjustment to Workers’ Compensation Insurance based on renewal premium, $(38,350). 7. Adjustment to Insurance based on renewal premium, $12,818. 8. Increase transfer to Street Improvement Capital Projects, $50,000. Airport Fund Revenues – PERS On-behalf funding $ (30) Landing Fees 7,500 Rents & Leases 43,512 Total Revenues $50,982 Expenditures: Terminal: Salaries $(270) Overtime (5) Leave (11) Medicare (4) PERS (76) Unemployment Insurance (1) Workers’ Compensation (550) Insurance 29 Airfield: Workers’ Compensation (1,437) Insurance 858 Administration: Workers’ Compensation (126) Insurance 304 Transfers-out (54,200) Other Buildings & Areas: Salaries $(270) Overtime (5) 35 Page 4 of 6 Ordinance 3022-2018 (SUBSTITUTE) Leave (11) Medicare (4) PERS (76) Unemployment Insurance (1) Workers’ Compensation (95) Total Expenditures $(55,951) Projected Lapse (105) Total Airport Fund Change $106,828 These Airport Fund changes are the result the following items: 1. Proposed increase in terminal rents and landing rates. 2. Correcting the reclassification of the Building Maintenance Lead position as described previously in the General Fund, $(30) reduction in revenue and $(760) reduction in expenditures. 3. Adjustment to Workers’ Compensation Insurance based on renewal premium, $(2,182). 4. Elimination of Central Administrative Charge booked twice in Airport Administration budget, $(54,200) 5. 5% increase in airline landing fees and terminal rents, $51,012. 6. Adjustment to Insurance based on renewal premium, $1,191. Congregate Housing Fund Expenses: Workers’ Compensation $ (29) Insurance (378) Total Change in Congregate Housing Fund $(407) Water & Sewer Fund Expenditures: Water: Workers’ Compensation $ (653) Insurance 43 Sewer: Workers’ Compensation (687) Insurance 411 Waste Water Treatment Plant: Workers’ Compensation (1,681) Insurance 162 (2,405) Projected Lapse 144 Total Water & Sewer Fund Change $(2,261) 36 Page 5 of 6 Ordinance 3022-2018 (SUBSTITUTE) These Water & Sewer Fund changes are the result the following items: 1. Adjustment to Workers’ Compensation Insurance based on renewal premium, $(3,021). 2. Adjustment to Insurance based on renewal premium, $616. Senior Citizen Fund Revenues – Transfer from General Fund $(417) Expenditures: Access: Workers’ Compensation (132) Insurance 208 Congregate Meals: Workers’ Compensation (377) Insurance 236 Home Meals Workers’ Compensation (321) Insurance 196 Transportation Workers’ Compensation (242) Insurance 130 Choice Waiver Workers’ Compensation (345) Insurance 217 $(430) Projected Lapse 13 Total Senior Citizen Fund Change $(417) These Senior Citizen Fund changes are the result the following items: 1. Adjustment to Workers’ Compensation Insurance based on renewal premium, $(1,417). 2. Adjustment to Insurance based on renewal premium, $987. Council Recommended Amendments The following are the Council’s recommended changes that have been incorporated into the draft budget and appropriating ordinance. Revenues – PERS On-behalf funding $ 152 Legal: Salaries $ 2,732 Leave 5 Medicare 41 PERS 601 Unemployment Insurance 14 Workers’ Compensation 9 37 Page 6 of 6 Ordinance 3022-2018 (SUBSTITUTE) Planning & Zoning - Travel & Transportation 1,700 Non-Departmental - PERS 152 5,254 Projected Lapse (263) Total General Fund Change $4,839 These General Fund changes are the result the following items: 1. At the May 19th Budget Work Session, Council recommended an increase to the Planning and Zoning Department travel account to provide sufficient funding for commissioner travel and travel for the City Planner for maintenance of her certification. The manager proposed budget had reduced travel in the department because the prior City Planner did not have certifications requiring continuing education. The total expenditure increase, net of projected lapse is $1,615. 2. The Manager proposed budget included a Cost of Living Allowance increase to the City Attorney’s salary. Council increased the City Attorney salary by $3,000 after completion of his annual review. The total expenditure increase, net of projected lapse is $3,376 and revenues are projected to increase $152. These are the proposed amendments to the April 16, 2018 Draft City Budget which have been included in proposed substitute budget adoption ordinance. In addition to these proposed changes to the Draft Budget, the budget adoption ordinance now includes amendment to the City’s salary schedule, amendments to the City’s employee classifications, and amendments to the Police Department’s qualification pay sections of the Kenai Municipal Code. Each of these sections are a result of proposed changes included in the draft budget. Your support for passage of the budget adoption ordinance is respectfully requested. attachments 38 City of Kenai Fiscal Year 2019 Operating Budget General Fund Budget Projection Original Actual Actual Budget Projection Requested Projection Projection FY2016 FY2017 FY2018 FY2018 FY2019 FY2020 FY2021 TAXABLE VALUES (000'S) 851,638$ 851,638$ 876,530$ 871,076$ 872,108$ 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 3,855,798 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 10,980,713 11,288,973 11,571,966 State/Federal Revenue: PERS Funding 379,467 288,137 204,840 204,840 386,406 397,998 409,938 Community Assistance 415,798 278,232 170,598 250,852 223,258 173,026 173,026 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 1,149,763 815,446 598,438 646,292 832,664 801,874 821,958 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 50,000 100,000 153,498 298,070 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 1,415,290 1,597,716 Total Revenues 13,314,863 12,568,361 12,630,096 12,686,794 13,138,418 13,506,137 13,991,640 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 15,158,838 15,342,012 15,877,622 EXPENDITURES/APPROPRIATIONS General Government 2,865,713 2,682,321 2,966,591 2,966,591 3,417,880 3,490,101 3,559,903 Public Safety 6,987,609 6,679,790 7,299,722 7,299,722 7,559,066 7,710,247 7,864,452 Public Works 2,251,812 2,148,432 2,375,314 2,375,314 2,492,669 2,542,522 2,593,372 Parks, Recreation & Cultural 1,993,809 1,984,887 2,125,189 2,135,189 2,073,983 2,115,463 2,157,772 Total Operating Expenditures 14,098,943 13,495,430 14,766,816 14,776,816 15,543,598 15,858,333 16,175,499 Transfers or Non-Operating 686,253 745,130 826,788 826,788 622,429 574,116 583,839 Total Expenditures/Appropriations 14,785,196 14,240,560 15,593,604 15,603,604 16,166,027 16,432,449 16,759,338 Total Surplus (Deficit) 26,867 130,106 (881,115) (823,849) (1,007,189) (1,090,437) (881,716) Projected Lapse - 5% - - 738,341 738,841 777,180 792,917 808,775 Adjusted Surplus (Deficit) 26,867 130,106 (142,774) (85,008) (230,009) (297,520) (72,941) Beginning Fund Balance 10,391,233 10,418,100 10,215,499 10,548,206 10,463,198 10,233,189 9,935,669 Ending Fund Balance 10,418,100 10,548,206 10,072,725 10,463,198 10,233,189 9,935,669 9,862,728 Restricted (588,937) (588,937) (624,937) (664,599) (700,599) (736,599) (772,599) Committed (409,746) (409,746) (6,868,847) (7,078,039) (7,092,260) (6,719,267) (6,667,910) Assigned (1,409,610) (1,409,610) (2,382,699) (2,417,467) (2,440,330) (2,479,803) (2,422,219) Unassigned Fund Balance 8,009,807$ 8,139,913$ 196,242$ 303,093$ -$ -$ -$ 39 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 96,686 Streets 34,116 53,068 51,506 51,506 61,066 Boating Facility 71,417 72,668 72,347 72,347 72,137 Parks, Recreation & Beautification 266,996 268,686 279,079 279,584 275,224 Total Expenditures 486,472 511,297 512,127 512,632 505,113 Transfers - General Fund - - - - 50,000 Total Expenditures & Transfers 486,472 511,297 512,127 512,632 555,113 Contribution To/(From) Fund Balance: 72,274 63,620 64,435 1,340 (13,694) Projected Lapse - - 19,981 5,000 21,151 Adjusted (Deficit)/Surplus 72,274 63,620 84,416 6,340 7,457 Beginning Fund Balance 67,662 139,936 149,066 203,556 209,896 Ending Fund Balance 139,936$ 203,556$ 233,482$ 209,896$ 217,353$ 40 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 829,080 719,328 864,277 914,259 949,971 Sewer Department 384,963 723,136 513,830 520,147 499,384 Wastewater Treatment Plant Department 923,883 987,096 1,075,372 1,086,894 1,208,057 Total Expenditures 2,137,926 2,429,560 2,453,479 2,521,300 2,657,412 Contribution To/(From) Fund Balance: 516,539 364,880 489,452 434,956 301,959 Projected Lapse (6%) - - 126,260 127,709 136,903 Adjusted (Deficit)/Surplus 615,712 562,665 438,862 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$ 3,071,959$ 41 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 418,644 529,132 375,000 375,000 432,500 Plane Parking 5,526 5,725 5,000 5,000 5,000 Total Usage Fees 459,702 579,708 434,000 434,000 491,500 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 283,525 308,275 317,723 317,723 378,160 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 783,571 708,350 827,723 827,723 818,160 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 3,163,680 Expenditures Airport Terminal 548,308 578,256 645,425 645,425 630,109 Airport Airfield 1,522,298 1,640,517 1,697,523 1,697,643 1,731,779 Airport Administration 287,087 411,745 336,914 384,728 596,199 Airport Other Buildings and Areas 313,741 139,947 167,211 248,458 164,943 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 3,161,504 Contribution To/(From) Fund Balance: 447,963 393,804 296,704 186,160 2,176 Projected Lapse (6%) - - 116,940 117,731 116,255 Adjusted (Deficit)/Surplus 413,644 303,891 118,431 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$ 5,498,628$ 42 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 88,339 183,291 196,730 185,184 170,857 Transfer from General Fund - Capital - - - - 45,670 Other (621) 306 300 300 300 Total Revenue 786,403 865,502 935,513 943,595 954,160 Expenditures Senior Citizen Access 175,262 153,905 166,319 166,319 157,364 Congregate Meals 179,434 218,035 236,396 239,021 285,370 Home Meals 148,048 176,509 195,103 226,583 209,875 Senior Transportation 108,562 67,803 80,523 80,523 81,234 Choice Waiver 331,888 249,525 281,213 281,213 244,671 Total Expenditures 943,194 865,777 959,554 993,659 978,514 Contribution To/(From) Fund Balance: (156,791) (275) (24,041) (50,064) (24,354) Projected Lapse (3%) - - 24,041 50,064 24,354 Adjusted (Deficit)/Surplus (156,791) (275) - - - Beginning Fund Balance 157,066 275 - - - Ending Fund Balance 275$ -$ -$ -$ -$ 43 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 425,986 498,181 452,133 500,333 503,144 Net Income (loss) (37,699) (107,871) (58,596) (106,796) (106,763) 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$ 452,576$ 44 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$ 45 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$ 46 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 -$ -$ -$ -$ -$ 47 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Kathy Romain, Senior Center Director DATE: May 30, 2018 SUBJECT: Kenai Senior Connection, Inc. Resolution No. 2018-01 Donation to the City of Kenai FY2019 Annual Budget This Memo is in reference to the attached Kenai Senior Connection, Inc. Resolution No. 2018- 01 in support of City of Kenai Ordinance No. 3022-2018 adopting its FY 2019 Budget. The Kenai Senior Connection, Inc. raises funds through their Annual March for Meals Fundraiser for the purpose of supplementing the budget needed to provide home and congregate meals to Kenai Senior Center clients. At its May 25, 2018 meeting, the Board of Directors of Kenai Senior Connection, Inc., voted unanimously to approve the the donation of $50,000 from its March for Meals Savings Account to the City of Kenai to be appropriated into the FY19 Operating Budget in the Kenai Senior Center Meals Funds. Thank you for your consideration. 48 Suggested by: Kenai Senior Connection, Inc. Chair KENAI SENIOR CONNECTION, INC. RESOLUTION NO. 2018-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE KENAI SENIOR CONNECTION, INC., KENAI, ALASKA, DECREASING REVENUES IN ITS MARCH FOR MEALS SAVINGS ACCOUNT IN THE AMOUNT OF $50,000 TO DONATE TO THE CITY OF KENAI FOR APPROPRIATION INTO THE CITY OF KENAI OPERATING BUDGET FOR FISCAL YEAR 2019 IN THE KENAI SENIOR CENTER MEALS FUND. WHEREAS, at its April 27, 2018 meeting, the Kenai Senior Connection, Inc. (Connection) discussed with the Kenai City Manager and Finance Director, the possibility of the Connection donating $50,000 from its March for Meals Savings Account to be appropriated to the City of Kenai Operating Budget for Fiscal Year 2019 in the Kenai Senior Center Meals Fund; and, WHEREAS, funds within the Connection's March for Meals Savings Account are accumulated through the Connection's March for Meals Fundraisers held for the purpose of supplementing funding needed to provide congregate and home meals to Kenai Senior Center clients; and, WHEREAS, at its meeting of May 25, 2018, the Connection reviewed, discussed, and approved the donation of $50,000 for the purpose identified above. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE KENAI SENIOR CONNECTION, INC., as follows: Section 1. Section 2. Article Ill, Paragraph 1, of the Kenai Senior Connection, Inc. By-Laws state its first purpose is "to provide financial assistance for the continued operation of the Kenai Senior Center." At its May 25, 2018 meeting, the Board of Directors of the Kenai Senior Connection, Inc. reviewed, discussed, and approved the donation of $50,000 from its March for Meals Savings Account to the City of Kenai to be appropriated into the City of Kenai Operating Budget for Fiscal Year 2019 in the Kenai Senior Center Meals Fund. PASSED BY THE BOARD OF DIRECTORS OF THE KENAI SENIOR CONNECTION, INC., KENAI, ALASKA, this 25th day of May, 2018. ATTEST: ~ / ~ Coleene Rumaner, Secretary '-' : ·' "''' t\• fl f I (j5 / -c c VELDA GELLER, PRESIDENT Introduced: May 25, 2018 Adopted: May 25, 2018 Effective: May 25, 2018 49 _____________________________________________________________________________________ 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 50 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 51 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. 52 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 22 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A LEASE OF AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND HILCORP ALASKA, INC., FOR LOT FIVE (5), BLOCK ONE (1), FBO SUBDIVISION AND LOT SIX (6), BLOCK ONE (1), FBO SUBDIVISION. WHEREAS, on April 16, 2018, Hilcorp Alaska, Inc. (Hilcorp), submitted an application to lease Lots 5 and 6, Block 1, FBO Subdivision, City-owned properties within the Airport Reserve; and, WHEREAS, Hilcorp, provided on their lease application plans to construct a hangar, office spaces, gravel parking, and a security fence; and, WHEREAS, this development will be mutually beneficial to the City and conforms with the Kenai Municipal Code for zoning, Kenai’s Comprehensive Plan, the Airport Land Use Plan, Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program grant assurances, and Airport operations; and, WHEREAS, the investment of Hilcorp Alaska, Inc., supports a lease term of 35 years; and, WHEREAS, the City of Kenai did not receive a competing lease application within thirty (30) days of publishing a public notice of the lease application from Hilcorp; and, WHEREAS, at their regular meeting on May 9, 2018, the Planning and Zoning Commission reviewed the lease application and recommended approval by the City Council; and, WHEREAS, at their regular meeting on May 10, 2018, the Airport Commission reviewed the lease application and recommended approval by the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That a Lease of Airport Reserve Lands is approved and the City Manager is authorized to execute a lease between the City of Kenai, Lessor, and Hilcorp Alaska, Inc., Lessee, as follows: Lot improvements as outlined in lease application from Hilcorp Alaska, Incorporated, including a ramp, fuel farm, office spaces, approximately 14,300 square foot hangar, gravel parking for 50 vehicles, and an eight (8) - foot high security fence around the vehicle parking lot to be completed within two (2) years of signing the lease; The evidence must be submitted to the City within sixty (60) days of the completion of the development and improvements; The lease term will be 35 years; 53 Resolution No. 2018-22___ Page 2 of 2 Hilcorp Alaska, Incorporated, will replat the parcels to vacate the property line between the two adjoining lots prior to construction of the hangar. Section 2. That this resolution takes effect immediately upon passage. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 54 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: May 29, 2018 SUBJECT: Resolution No. 2018-22 – Kenai Municipal Airport Reserve Lease Application from Hilcorp Alaska, Inc. – 413 and 421 North Willow St., Lots 5 and 6, Block 1, FBO Subdivision _______________________________________________________________________ Hilcorp Alaska, Inc. (Hilcorp) submitted an application on April 16, 2018 to lease Lots 5 and 6, Block 1, FBO Subdivision within the Airport Reserve. Improvements include a ramp, fuel farm, office spaces, approximately 14,300 square foot hangar, gravel parking for 50 vehicles, and an eight (8) - foot high security fence around the vehicle parking lot. Hilcorp has submitted the application filing fee and is in compliance with obligations due to the City and Kenai Peninsula Borough. The lease term would be 35 years, with a lease entry date in fall 2018. The site plan shows the proposed hangar will cross the property line between the two lots. The property line would be vacated prior to construction of the proposed hangar, requiring an approval of the plat by the Planning and Zoning Commission. Pursuant to Kenai Municipal Code (KMC) 21.10.040(b)(3), the City will require Hilcorp to complete lot improvements within two (2) years of entering into a lease. The parcels are within the Airport Light Industrial (ALI) Zone per KMC 14.20.065. The purpose of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a significant resource to the community by encouraging compatible land uses and reducing hazards that may endanger the lives and property of the public and aviation users. The proposed aeronautical use by Hilcorp for passenger and cargo transportation would be a permitted use in the ALI Zone. The Imagine Kenai 2030 Comprehensive Plan outlines goals, objectives, and action items for the City, including some pertaining to the Kenai Municipal Airport: 55 Page 2 of 2 Resolution No. 2018 - 22 • Objective T-1: Support future development near or adjacent to the airport when such development is in alignment with the Kenai Municipal Airport’s primary mission, “To be the commercial air transportation gateway to the Kenai Peninsula Borough and Cook Inlet.” The proposed use by Hilcorp complies with the Imagine Kenai 2030 Comprehensive Plan in that it supports development that is in alignment with the Kenai Municipal Airport mission. The Airport Land Use Plan was developed to identify the highest and best uses of Kenai Municipal Airport land. The Airport Land Use Plan discusses the need for more hangar facilities, promoting use of the Kenai Municipal Airport by service providers and the traveling public, leasing land, and enhancing the opportunities for local economic development. The proposed use by Hilcorp complies with the Airport Land Use Plan. It would enhance local economic development and provide more hangar space. Pursuant to KMC 21.10.060(c), the City must publish public notice of a lease application and allow thirty (30) days for competing lease applications for the same property to be submitted to the City for consideration. The City published a public notice of the Hilcorp lease application in the Peninsula Clarion on April 27th. The City did not receive a competing application to lease this parcel within 30 days of the notice (through May 27th). The Planning and Zoning Commission recommended approval of the lease application at their May 9th meeting, contingent upon Hilcorp submitting a plat to the Planning and Zoning Commission showing a vacation of the property line the proposed hangar would cross. The Airport Commission and Airport Manager recommended approval of the lease application at their May 10th meeting. Thank you for your consideration. 56 :U Hilcorp Alaska, LLC April 16, 2018 Wilma E. Anderson City of Kenai 210 Fidalgo A venue Kenai, Alaska 99611 via: Email and USPS Re: Kenai Municipal Airport Reserve Lease Application Resubmittal Dear Willie: Kevin A. Tabler Land Manager, Alaska Post Office Bo x 2440 27 Anchorage, AK 99 524-4027 3800 Cen terpo int Drive Suite 1400 Anchorage, AK 99503 Phone : 907/7 77-8379 Fax: 907/777-858 0 ktabler@hilcorp.com RECEIVED CITY OF KENAI ArR. l~ ZO 'f' PLANNING DEPARTMENT Hilcorp Alaska, LLC (Hilcorp) is in receipt of your March 19 , 2018 , letter adv ising of a change in Kenai Municipal Code 21.10. (Leasing of Airport Reserve Lands) by Ordinance 2998-2018. The effect of such action has rendered Hilcorp 's original August 18, 2016, Kenai Municipal Airport Reserve Lease Application exp ired . Attached for your consideration and approval is a new lease appl ication filed pursuant t o the revised Kenai Municipal Code for Lots 5 and 6, FBO Subdivision. As part of this application, I hav e incorporated two (2) new plats; one (1) depicting an aerial view of Lots 5 and 6 in relation to the Kenai Municipal Airport and two (2), a specific site plan depicting our proposed improvements as they relate to Lots 5 and 6. Additionally, I have attached a copy of our original August 18 , 2016, Lease Application submittal. The contents of which are detailed below and provide supportive information for your review. The only deviation from the original Lease Application and this proposed new application, is the application form itself, starting date for property improvements and the submittal of the abovementioned updated and revised plats. Contents of original August 18, 2016 Lease Application: Letter to the city of Kenai stating our intent to develop the site Completed lease application Completed de velopment plan checklist Site plan, which is not filled in because it doesn't apply Simplified fac ility drawing Kenai a irport FBO Subdivision survey -for reference FAA Form 7460-1 Hilcorp Check Number #008204938 in the required amount of $4,100.000 Kenai Peninsula Borough Tax Compliance Certification 57 Wilma E. Anderson Letter Kenai Municipal Airport Reserve Lease Application Apri l 16 , 2018 Page 2 of2 It is our belief, with what Hilcorp has submitted herein, this submittal constitutes a complete Kenai Municipal Airport Reserve Lease Application package. We look forward to your accelerated review of same as much discussion and review has a lready taken place regarding the merits of our proposed lease application. Attachments cc: Josh Goodwin/RAK Marc Bond/HAK 58 Name of Applicant: Mailing Address: City of Kenai Kenai Municipal Airport Land Lease Application Application for: 0New Lease 0Amendment D Extension/Renewa l Phone Number(s): Work/ Message Phone: (C/07 ) 777 _ g 3 9 E-mail: (Optional) Name to Appear on Lease: '/ r ;Jc: Mailing Address: State: "'1. I<-Zip Code: <=fC!JSo Phone Number(s): Home Phone: ( Work/ Message Phone: (_,07) 177 _ 15 ~ 7 Cf E-mail: (Optional) Type of Applicant: D Individual (at least 18 years o [2'.9 Limited Liability Company (LLC) D Government Oother ______ _ Description of Property and Term Requested Legal Description of Property: I< £N 14 I ,.A.(} N 1·..vc:.1..,.tL-_,4 r RpoA..( .s u ra..IJ ~ y e~o L 1.<~ O .I }..(()>. .AJO~ . .'T~ o~ TltL IAltf../'>D~T r~r-vrt~ Does the Property Require Subdivision? (if Yes , answer next two questions) ~Y ES DNo Are you prepared to be responsible for all costs associated with subdivis ion? ~YES DNo Do you believe the proposed subdivision would serve other Airport purposes? EJ YES ONo Do you have or have you ever had a Lease with the City of Kenai? DYES 0 No If Yes, please provide description of property leased (e.g . legal or physical description): Is this application for renewal or term extension of an existing lease? DYES [E]No If Yes, please provide a description of the property leased: Do you plan to construct new or additional improvements? ~YES ONO 59 I If yes , will the improvement change or alter the use under an existing lease? If yes, what is the new proposed use? If yes , what is the type of improvement? (e .g . building improvement, land improvement) ~J.J i,.c.~ .cv ~p;ry If yes, what is the nature of the improvements? (e.g . maintenance, landscaping, new construction) List of proposed use and business activities: (->r:l.•v~TL v~L ey H''-Gl>fl<"f' Poa.. f't46JLN~LrL cf--c.'4"1'l.6-t> 7n.+4t<.1.$f,n.r1411ei,,._; Lease Extension or Renewal Method to determine value of improvements/term for a lease renewal or expiring lease : 0Professional estimate of the remaining useful life of the principle improvement on the property D Market value appraisal of the principle improvement on the property 0Purchase price of improvements Subm itt ing a n appl icati on for a le a se does not give the appl icant a right to lease or use the la nd requested in the ap plicat io n . T he appli ca ti on shall expire twelve (12) months after the date the application has been made if the City a nd t he applicant have not, by t ha t time, e ntered in to a lease, unless the City Council for good cause g rants an extens io n for a period not to exceed six (6) mont hs. The Ci ty has no obl igation to amend , renew or exte nd a lease and may dec line to do so upon makin g specifi c findings as to why a lease ren ewal, e xt ension, o r a mend me nt is not in the best interest of the C ity Signature: Date : Print Name: Title : 60 '·-a ...... rl[LD Kenai Municipal Airport Main Terminal ~ N A 61 I I I I I I ~ ~ (() d-~ ~ ~Ci) ~ ~ <ts Notes: Proposed Lot Usa ge . t;- J: 'N ~ ~ Figure 2 Lo ts 5 and 6 wou ld be merged into one lot. Date: April . 2018 1 inch = 67 feet N A 62 ff Hilcorp Alaska, LLC August 18, 2016 Wil li e Anderson City of Kenai 210 Fidalgo A venue Kenai, Alaska 99611 Re: Kenai Municipal Airport Reserve Lease Application Dear Willie: Kevin A. Tabler Land Manager, Alaska Post Office Box 244027 An chorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: 907/777-8379 Fax: 907/777 -8580 ktabler@hilcorp.com Attached and detailed below for you review and acceptance is what Hilcorp Alaska, LLC (Hilcorp) believes to be a complete Kenai Mwlicipal Airpo11 Reserve Lease Application package. Letter to the city of Kenai stating our intent to develop the site Completed lease application Completed development plan checklist Site plan, which is not filled in because it doesn't apply Simplified facility drawing Kenai airport FBO Subdivision survey -for reference FAA F01m 7460-1 Hilcorp Check Number #008204938 in the required amount of $4,100 .000 Kenai Peninsula Borough Tax Compliance Ce11ification Please advise if you require additional inf01mation to deem this application complete . cc: Keith Nickles/HAK Bill Swenson/1-IEC Marc Bond/RAK 63 August 2, 2016 To : The City of Kenai Attn: Airport Manager Hllcorp Alaska llC (HAK) seeks a long term lease of Blocks 5 & .6 (Block 1} located within the FBO Subdivision of the Kenai Municipal Ai rport for the purpose of develo"plng a facility that will house as many as three company owned aircraft. The facility wou ld be built to the following specifications : • Steel construction that will comply with all airport, city and FAA regulatory requ irements concerning aircraft operations. • A ramp area large enough to allow for aircraft ground handling/servicing. • A company owned/managed fuel farm with at least one 4,000 gallon fuel tank. • The facility would be situated In such a way that the hangar door would face to the west and the associated ramp would be easily accessible from the main Kenai airport ramp area. · • The physical hangar space will provide office space, allow for passenger and cargo receiving/processing and also provide space for aircraft maintenance and flight operations administration. • Sufficient parking for as many as 50 employee vehicles. • Estimated cost is approximately 2-2.SM . Th i s buildi ng Is Intended to support HAK flight operations In the Cook Inlet. When fully operat ional there will be as many ~s 8 full-time emp loyees assigned to the facility. Should helicopter operations move from OSK, the number of full-time employees will increase to as many as 16. The anticipated des ign phase of the facility will be calendar year 2017, with site development and construction beginning sometime In 2018 . The current plans are subject to final management approval and could change based on various economic factors and operational needs. Throughout the process HAK will coordinate with Kenai city officials to ensure compliance with the airport's land use policy. The contact for questions regarding this project wlll be Keith Nickles, Director of Aviation, Hllcorp Energy Company. Email: knlckles@hilcorp.com . Phone: {713) 655 -6316 . Sincerely, ~?:~ Ke ith Nickles Director of Av iation Hllco rp Energy Company 13007.1 64 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 23 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING THE PURCHASE OF TWO POLICE VEHICLES THROUGH STATE OF ALASKA EQUIPMENT FLEET CONTRACT PRICING AT A TOTAL COST OF $71,861. WHEREAS, two police vehicles were included in the approved FY19 Police Department budget; and, WHEREAS, Kendall Ford was awarded the State of Alaska equipment fleet contract for the purchase of Ford Police Interceptors, and Kendall has determined those vehicles need to be purchased through their Anchorage operations; and, WHEREAS, the Police Department requests to order/purchase two Police Ford Interceptor SUVs no earlier than July 1, 2018, at a total cost of $71,861. WHEREAS, KMC 7.15.070(b)(4) allows the City of Kenai to purchase equipment without giving an opportunity for competitive bidding if the equipment is purchased under the contract of another governmental agency in which the City is authorized to participate; and, WHEREAS, in past years, the City of Kenai has purchased police vehicles through the State of Alaska equipment fleet contract. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That effective July 1, 2018, the Police Department is authorized to purchase two Ford Police Interceptors (priced at $35,930.50 each) from Kendall Ford through State of Alaska equipment fleet contract pricing. Section 2. That the City Manager is authorized to use State of Alaska fleet contract pricing to purchase two Ford Police Interceptors, per City Code, in lieu of the City conducting a bid process. Section 3. That the City Manager is authorized to issue a purchase order in the amount of $71,861 for purchase of two Ford Police Interceptor (SUVs) from Kendall Ford. Section 4. That this resolution takes effect July 1, 2018. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 65 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: David Ross, Police Chief DATE: 5/24/2018 SUBJECT: Resolution 2018-23 ______________________________________________________________________ The purpose of this memo is to recommend approval of Resolution 2018-23. Resolution 2018-23 authorizes the purchase of two 2018 Ford Police interceptor SUVs from Kendall Ford for $35,930.50 each, a total cost of $71,861. The FY19 budget, up for approval at this same Council Meeting, includes the purchase of two Ford Police Interceptors and Kendall Ford has been awarded, by the State of Alaska, the State equipment fleet contract for those vehicles. In past years, the City of Kenai has purchased police vehicles through State of Alaska fleet pricing, to help ensure the City pays the lowest available cost for this equipment. The State of Alaska Contract Fleet Award is an inherently competitive process, allowing for dealerships across the State to bid on Police Interceptors. The local Kendall Ford dealership was contacted to see if they could process the sale locally, and they determined those fleet sales needed to be processed through their Anchorage dealership. KMC 7.15.070(b)(4) allows the City of Kenai to purchase equipment without giving an opportunity for competitive bidding if the equipment is purchasable under the contract of another governmental agency in which contract the City is authorized to participate. Thank you for your consideration. 66 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-24 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO INCORPORATE RENTAL RATES FOR AIRPORT RESERVE PARCELS PURSUANT TO KMC 21.10.090. WHEREAS, in 2017, City Administration formed a working group to address the City’s Airport Reserve land leasing program and make recommendations that would provide a competitive environment to encourage growth, development, and a thriving aviation community through reasonable and responsible land policies and practices; and, WHEREAS, the working group presented recommendations to the City Council at a work session on November 29, 2017, the Planning and Zoning Commission at its meeting of January 10, 2018, and the Airport Commission at its meeting of January 11, 2018, which included changes to how annual rent will be computed and publication of the annual rent for each parcel inside the airport reserve in the City’s schedule of fees; and, WHEREAS, Ordinance No. 2998-2018 repealed, renamed and re-acted Kenai Municipal Code Chapter 21.10-Leasing of Airport Reserve Lands to encourage growth, development and a thriving aviation community through responsible land policies and practices; and, WHEREAS, Pursuant to KMC 21.10.090, the annual rent for each parcel inside the Airport Reserve must be published in the City’s schedule of fees adopted by the City Council; and, WHEREAS, Administration determined the FY19 annual rent for each parcel available for lease in which an appraisal had been completed inside the Airport Reserve based on the latest appraisal conducted for the City in 2015 and adjusted annually based on the rate of inflation determined by the consumer price index; and, WHEREAS, for leases in which an appraisal has not yet been performed on parcels in which a subdivision is required, the annual lease rate is determined based on an appraisal of the subdivided parcel at such time an application and payment of the nonrefundable application fee for the parcel is received; and, WHEREAS, amendments to the City’s Comprehensive Schedule of Rates, Charges and Fees are needed to reflect the recommendations of the City Administration and comply with Ordinance No. 2998-2018. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. The Airport Fees section of the City’s Comprehensive Schedule of Rates, Charges and Fees be amended to include as follows: 67 Resolution No. 2018-24 Page 2 of 3 21.10.090 (a) Airport Reserve Land Annual Lease Rate Legal Description of Property Kenai Peninsula Borough Parcel ID No. FY19 Annual Rent Lot 2, Block 2, FBO Subdivision 04336004 $6,244.32 NW 1/4 NW 1/4 Sec, 33 lying W of Marathon Rd. excluding Baron Park 2007 Replat 04501056 Subject to Appraisal Lot 8, Block 2, Cook Inlet Industrial Air Park 04322008 $14,906.80 Lot 3, Block 5, Cook Inlet Industrial Air Park 04322020 $5,664.56 Lot 4, Block 5, Cook Inlet Industrial Air Park 04322021 $5,707/20 Tract A, General Aviation Apron No.2 04324025 Subject to Appraisal Lot 9A, Block 5, General Aviation Apron No. 5 04324026 $13,250.88 Lot 1, Block 2, FBO Subdivision 04336003 $6,500.16 Lot 6, Block 1, FBO Subdivision 04336016 $6,360.24 Lot 5, Block 1, FBO Subdivision 04336017 $6,360.24 Lot 1, FBO Subdivision No. 6 04336034 $12,168.80 Lot 3, FBO Subdivision No. 6 04336036 $17,239.12 Lot 5, FBO Subdivision No. 8 04336043 Subject to Appraisal Tract A1, Baron Park 2007 Replat 04501031 $34,780.64 Tract C-1, Gusty Subd. No. 7 04327034 $3,374.80 Portion of W1/2 of Sec. 28 & SE1/4, Sec. 29, T6N, R11W 04101021 Subject to Appraisal Portion of SW1/4, Sec. 29, T6N, R11W Excluding Airport Float Basin Replat 04101022 Subject to Appraisal Portion of Tract A, Kenai Airport Float Plane Basin Replat 04318043 Subject to Appraisal Portion Sec. 32, T6N, R11W Excluding Subs. & Leased Areas & Float Plane Basin 04318044 Subject to Appraisal Tract A, FBO Subdivision 04336001 Subject to Appraisal 68 Resolution No. 2018-24 Page 3 of 3 Section 2. That this resolution takes effect July 1, 2018. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 69 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Christine Cunningham, Assistant to City Manager/ HR Specialist DATE: May 24, 2018 SUBJECT: Resolution No. 2018-24 Amending Fee Schedule to Incorporate Rental Rates for Airport Reserve Parcels Pursuant to KMC 21.10.090 ______________________________________________________________________ Resolution No. 2018-24 provides an amendment to the City’s fee schedule to follow KMC 21.10.090, which requires the annual rent for each parcel inside the Airport Reserve to be published in the City’s schedule of fees adopted by the City Council. A working group comprised of staff in the City Manager’s office, Finance Department, Planning Department, Kenai Municipal Airport, and Legal Department presented recommendations to the City Council at a work session on Land Sale and Leasing Policies and Practices November 29, 2017, the Planning and Zoning Commission at its meeting of January 10, 2018, and the Airport Commission at its meeting of January 11, 2018, which included changes to how annual rent shall be computed and publication of the annual rent for each parcel inside the airport reserve in the City’s schedule of fees. In February, Ordinance No. 2998-2018 became effective and allowed administration to bring forward this additional legislation to revise the City’s fee schedule with regard to publication of the FY19 annual rent for land available for lease in the Airport Reserve. In addition to publication of annual lease rates in the City’s fee schedule, the working group plans to publish a map on the City’s website which will allow users to view City and Borough information on parcels available for lease, including the legal description, parcel number, zoning information, and annual rent. At this time, the map only includes parcels available for lease within the Airport Reserve boundary, however, it is the goal of the working group to build upon the information available as part of the on-going improvements to the City’s land sale and lease practices. Thank you for your consideration. 70 Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-25 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA FIXING THE RATE OF LEVY OF PROPERTY TAX FOR THE FISCAL YEAR COMMENCING JULY 1, 2018 AND ENDING JUNE 30, 2019. WHEREAS, Kenai Municipal Code requires that the rate of levy of property tax be set annually not later than the tenth day of June; and, WHEREAS, the Council has adopted the "City of Kenai 2019 Annual Budget," which estimates property tax revenue based upon a tax rate of 4.35 mills. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the rate of levy of property tax for the fiscal year commencing July 1, 2018 and ending June 30, 2019 be fixed at 4.35 mills. Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 71 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 24, 2018 SUBJECT: Resolution 2018-25 Establishing the City of Kenai FY2019 Property Tax Mill Rate Resolution 2018-25 will establish the rate of levy of property tax for FY2019, tax year 2018. The proposed rate of levy is 4.35 and will result in $435 in taxes being paid for each $100,000 of assessed property value. The rate is unchanged and will generate the necessary property taxes to support the adopted FY19 budget. The last mill rate change for the City was in FY2015. Your support is respectfully requested. 72 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-26 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A CONTRACT WITH PREMERA BLUE CROSS BLUE SHIELD OF ALASKA TO PROVIDE EMPLOYEE HEALTH CARE TO CITY EMPLOYEES EFFECTIVE JULY 1, 2018. WHEREAS, Pursuant to KMC 23.40.120 the City provides major medical, dental, and vision insurance to its employees; and, WHEREAS, the City’s current provider for this insurance is PREMERA Blue Cross Blue Shield of Alaska; and, WHEREAS, PREMERA Blue Cross Blue Shield of Alaska has provided a no-shop renewal quote for continuing coverage at a premium increase of 7.88% including changes in employee census; and, WHEREAS, providing quality health care is a component of a comprehensive compensation package which allows the City to recruit and retain quality employees to provide the services of the City for its residents. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Council authorizes the City manager to execute a contract with PREMERA Blue Cross Blue Shield of Alaska to provide group medical, dental and vision benefits to the employees of the City of Kenai effective July 1, 2018. Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 73 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 22, 2018 SUBJECT: Resolution No. 2018-26 - Employee Health Insurance Renewal The purpose of the memo is to recommend passage of Resolution 2018-26 that will authorize renewal of the City’s employee health care plan with PREMERA Blue Cross Blue Shield of Alaska. KMC 23.40.120 requires the City to provide medical, dental and vision coverage to its employees. This coverage has been provided by PREMERA Blue Cross Blue Shield of Alaska since July 2014. The City received a no bid renewal quote from PREMERA Blue Cross Blue Shield of Alaska to renew its insurance, PREMERA’s Preferred Choice Plan, at a 9.28% increase over FY18 rates, dental rates will increase 3.0% and there is no rate change for vision coverage. Acceptance of a no bid quote or offer precludes the City from soliciting quotes from other providers. Quoted premiums were compared to the premiums of the State of Alaska Political Subdivision Health Insurance Plan, which the City participated in, to assure competiveness. PREMERA’s quote, despite the combined 8.8% increase, is still lower than the State’s plan. The following is a financial comparison of the City’s current plan and the proposed plan. FY18 PREMERA FY19 PREMERA Difference Health Care Premium $1,829,175 $1,998,916 $169,741 Dental Premium 116,064 119,546 3,482 Vision 16,392 16,392 - City Self-Insured Deductible 169,650 169,650 - FSA/HRA Administration 4,242 4,242 - Employee Life Insurance 16,800 16,800 - Broker Fee 25,000 25,000 - Employee Wellness Program 20,000 20,000 - Total Cost of Health Care $2,197,323 $2,370,546 $173,223 74 Page 2 of 2 Employee Health Insurance Renewal City Funded Portion $1,973,679 89.82% $2,129,142 89.82% 155,463 Employee Funded Portion 223,644 10.18% 241,404 10.18% 17,760 Total $2,197,323 100.00% $2,370,546 100.00% $173,223 A comparison of employee monthly health care premiums is as follows: Monthly Premium FY18 PREMERA FY19 PREMERA Difference Employee $ 92.00 $102.00 $ 10.00 Employee/Child(ren) 166.00 185.00 19.00 Employee/Spouse 182.00 203.00 21.00 Employee/Family 249.00 278.00 29.00 Part time Employee 420.00 475.00 55.00 I recommend renewal with PREMERA Blue Cross Blue Shield of Alaska and believe it is in the best interest of the City and its employees. 75 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-27 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING RENEWAL OF THE CITY’S INSURANCE COVERAGE WITH ALASKA PUBLIC ENTITY INSURANCE FOR JULY 1, 2018 THROUGH JUNE 30, 2019. WHEREAS, the City has been a member of Alaska Public Entity Insurance (APEI) since July 1, 2000 receiving competitive rates and quality insurance coverage for the City; and, WHEREAS, the City has entered into a three year commitment with APEI for insurance coverage for the period of July 1, 2016 through June 30, 2019; and, WHEREAS, the three-year commitment allows the City to terminate the agreement should the City’s net premium increase by more than 10% in any single year; and, WHEREAS, the FY19 increase in insurance premiums is $802 or 0.2%; and, WHEREAS, the three year commitment with APEI entitles the City to a 5% annual discount, $25,861.31 for FY19, on renewal premiums; and, WHEREAS, as a long-term member of APEI the City receives annual premium renewal credits based upon APEI’s prescribed member dividend program. The City’s FY19 member dividend is $39,840.88 and is based upon the City’s longevity with APEI and the City’s insurance loss history; and, WHEREAS, in addition to receiving a member dividend and three-year commitment discount, the City will also receive a premium credit of $53,466.06 for its loss control programs; and, WHEREAS, coverage for FY2019 will include flood and insurance coverage for City facilities at a cost of $20,411.45. Earthquake and flood coverage was added in FY16 and was declined prior to that; and, WHEREAS, based upon the high quality coverage, competitive premiums and credits totaling $119,168.25 for FY19 it is in the City’s best interest to retain coverage with APEI for the City’s insurance needs. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. The Council authorizes the City Manager to renew the City’s insurance coverage for FY2019 with APEI. Section 2. That this resolution takes effect immediately upon passage. 76 Resolution No. 2018-27 Page 2 of 2 _____________________________________________________________________________________ PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 77 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 22, 2018 SUBJECT: Resolution No. 2018-27 Annual Property, Liability, Workers’ Compensation, Airport, and Marine Insurance Renewal. Each year the City goes through a process of renewing its insurance coverages. The City has purchased its coverage from Alaska Public Entity Insurance (APEI) since July 1, 2000 and has always received quality insurance at competitive rates. As an insurance pool, APEI provides insurance coverage to its members. APEI has implemented a longevity premium credit program to return excess equity to its members. Excess equity is created when insurance premiums are in excess of actual claims and reinsurance costs. APEI has determined its retained earnings are in excess of its needs and has instituted a rebate program to its members. The program rewards members for longevity with APEI and for a positive loss history. The credit is only available to entities that renew their coverage with APEI. The FY19 City credit will be $39,840.88 upon renewal. APEI provides a premium credit for active safety programs of its insured. The credit is for up to 2% of the City’s property insurance premium, 10% of the City’s liability insurance premium, and 15% of the City’s workers compensation premium. The City will receive the maximum for each insurance type in FY19 totaling $53,466.06. The loss control credit requires the City to establish and operate a safety committee and provide safety training for its employees. APEI also provides a 5% premium credit to members who enter into a three-year commitment for coverage with APEI. The FY19 credit offered to the City is $25,861.31. The three-year agreement required to receive the credit allows the City to terminate the agreement at any time should the net premium for coverage increase by more than 10% from one fiscal year to the next. Exclusion to this limit are increases in declared property values, vehicle counts or covered payroll. After consideration of the longevity credit and the three-year discount, the FY19 premium increase is 0.2%. Considering increased exposure in FY19 over FY18 there is actually a 1.1% premium decrease in FY19. Based upon the quality coverage, competitive rates, excellent service, and $ 119,168.25 in credits offered to the City for renewing it coverage, I recommend renewing coverage with APEI. 78 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-28 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO INCORPORATE CHANGES TO BE ADOPTED IN THE FY2019 BUDGET PROCESS TO INCLUDE ADJUSTING MONTHLY RENTAL RATES AT VINTAGE POINTE AND INCREASING FEES AT THE KENAI MUNICIPAL AIRPORT. WHEREAS, below market monthly rental rates at Vintage Pointe, the City’s senior housing facility, are budgeted to increase in FY2019 in an effort to bring the rental rates closer to market rate rents as determined by the 2015 market rent study by Derry and Associates; and, WHEREAS, units with market rate rents will increase by the Anchorage Consumer Price Index, second half over second half for 2017 and units with rents below market rates will increase to market rate or a maximum of $35.00 over FY2018 rates; and, WHEREAS, charging market rates will assist in providing adequate funds for ongoing and long- term maintenance of the facility; and, WHEREAS, the Administration has determined the rental rates for non-signatory, airline, apron space on the Kenai Airport are significantly undervalued taking into account land values, construction cost of improvements, and maintenance costs; and, WHEREAS, undervalued rental rates for apron space is a significant deterrent to development of airport lease lots; and, WHEREAS, the proposed increase is part of the administration’s six year plan to increase non- signatory airline apron rental rates to market value with FY19 being the fourth year of this plan; and, WHEREAS, since FY2015 terminal rental rates of the Kenai Municipal Airport have increased annually by the Anchorage Consumer Price Index; and, WHEREAS, in an effort toward full cost recovery of terminal and airfield operational expenditures a 5% increase is being proposed to terminal exclusive and joint use space rental rates, a 5% increase in landing fees and a 5% increase in signatory, airline, terminal apron parking and GSE storage space rent for FY2019; and, WHEREAS, the national average cost per enplaned passenger at a non-hub airport is $9.48 and with implementation of these proposed rate increases the average cost per emplaned passenger at the Kenai Municipal Airport will be $5.64; and, WHEREAS, recovery of operational expenditures will provide for the use of more permanent fund earnings on capital and infrastructure improvement and is in the best interest of the Kenai Municipal Airport; and, 79 Resolution No. 2018-28 Page 2 of 4 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. The Vintage Pointe Rents section of the City’s Comprehensive Schedule of Rates, Charges and Fees be amended as follows: FOR UNITS WITH RENTAL AGREEMENTS GRANDFATHERED PER THE CITY’S POLICY BEFORE JUNE 30, 201[7]8: [2-C APARTMENT=826 Sq. FT. OCEAN SIDE (1) $ 977.44] [2-B APARTMENT=876 Sq. FT. OCEAN SIDE (2) $ 989.68] 2-A apartment=826 Sq. Ft. Ocean Side (3) $1,000.20 Monthly Automatic ACH Payment Fee $- Note: All Vintage Pointe Rents are subject to a 2% discount for payment by means other than credit card. FOR UNITS WITH MARKET RATE RENTAL AGREEMENTS 1-A apartment=586 Sq. Ft. Ocean Side (8) [$ 871.92] $ 873.66 1-A apartment=586 Sq. Ft. Street Side (5) [$ 821.52] $ 823.16 1-B apartment=637 Sq. Ft. Ocean Side (4) [$ 887.03] $ 888.80 1-B apartment=637 Sq. Ft. Street Side (6) [$ 836.63] $ 838.30 1-C apartment=682 Sq. Ft. Ocean Side (4) [$ 887.03] $ 888.80 1-C apartment=682 Sq. Ft. Street Side (4) [$ 836.63] $ 838.30 2-A apartment=826 Sq. Ft. Ocean Side (3) [$ 1,002.96] $ 1,004.97 2-A apartment=826 Sq. Ft. Street Side (1) [$ 947.51] $ 949.41 2-B apartment=876 Sq. Ft. Ocean Side (2) [$ 1,002.96] $ 1,004.97 2-B apartment=876 Sq. Ft. Street Side (2) [$ 947.51] $ 949.41 2-C apartment=789 Sq. Ft. Ocean Side (1) [$ 987.83] $ 989.81 2-C apartment=826 Sq. Ft. Ocean Side (1) $1,004.97 Monthly Automatic ACH Payment Fee $- Note: All Vintage Pointe Rents are subject to a 2% discount for payment by means other than credit card. Section 2. The Airport Fees section of the City’s Comprehensive Schedule of Rates, Charges and Fees be amended as follows: 21.05.085 Fuel Flowage Fee per gallon $ 0.02 APX - Airport Regulations Aircraft Parking Fees 6.05.070 (c) -transient, under 4,000 lbs. 0 - 4 hrs. FREE -transient, under 4,000 lbs. over 4 hrs $ 5.00 -transient, 4,001 - 25,000 lbs per day $ 50.00 -transient, 12,501 - 100,000 lbs [OVER 4 HRS] per day $ 100.00 -transient, 100,001 lbs and over [AND OVER 4 HRS] per day $ 250.00 Landing Fees 14.05.010 (a)(2) Signatory per thousand pounds [$ 1.61] $ 1.70 80 Resolution No. 2018-28 Page 3 of 4 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 14.05.010 (b)(2) Non-signatory per thousand pounds [$ 2.12] $ 2.21 exempt -- float planes, test landings due to mechanical or weather, government aircraft Tie-down Fees, General Aviation Paved Areas -wheels, per month $ 40.00 -wheels, per year $ 360.00 -wheels, w/electric per month $ 60.00 -wheels, w/electric per year $ 420.00 Gravel Area -wheels/skis, per month $ 40.00 -wheels/skis, per year $ 360.00 Float Plane Basin, Private -daily $ 5.00 -monthly $ 40.00 -season -- May to October $ 250.00 -floats/wheels per year $ 360.00 -floats/wheels/skis per year $ 360.00 -floats/wheels w/electric per year $ 420.00 Float Plane Basin, Commercial -daily $ 10.00 -monthly $ 50.00 -season -- May to October $ 300.00 -floats/skis/wheels $ 450.00 -monthly w/electric $ 75.00 -season w/electric $ 550.00 Terminal Building Rent -- Exclusive Space -signatory - per square foot per year [$ 32.24] $ 33.85 -signatory -- arrival hallway, departure hallway, passenger hold room & baggage claim area (per square foot per year) [$ 32.24] $ 33.85 Terminal Building Rent -- Joint Use Space -signatory -- baggage make up area (per square foot per year) [$ 19.53] $ 20.51 -signatory -- baggage break down area (per square foot per year) [$ 19.53] $ 20.51 -non-signatory terminal rates 30% higher Vehicle Parking Fees at Terminal -short term 0 - 2 hours FREE -24 hours $ 7.00 -annual permit $ 700.00 -annual parking permit w/electric $ 1,000.00 Vehicle Parking Fees [at GA Lot] Greater Than ¼ Mile From Terminal Building -calendar day $ 3.00 -annual permit $ 420.00 Business Activity & Airport Access Permit 81 Resolution No. 2018-28 Page 4 of 4 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] -mechanic access (per each) $ 50.00 -fueling access (annual) $ 100.00 -dispensing fee (per gallon) $ 0.02 -water extraction access (annual) $ 100.00 -non-tenant use of basin parking apron $ 75.00 -float plane parking apron (annual) $ 25.00 -Deposit/replacement proximity card fee (each) $ 100.00 -Catering/mobile food service $ 50.00 Commercial Turn Fees -turn fee (narrow body – (1 aisle) $ 200.00 -turn fee (regional 50 – 99 seats) $ 150.00 -turn fee (commuter – fewer than 50 seats) $ 100.00 Helicopter Landing Fees -Per landing $ 25.00 Other Fees -Taxi cab (per vehicle per pickup $ 1.00 -Terminal building key replacement (per key) $ 10.00 [-AIRCRAFT RAMP RENTAL FEE (PER SQUARE FOOT PER YEAR $1.33] -Non-signatory airline [A]airport apron rental rate per square foot [$ 0.699] $ 0.87 -Signatory, airline, terminal apron parking and GSE storage space rent per square foot $0.52 Section 3. That this resolution takes effect July 1, 2018. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 82 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 23, 2018 SUBJECT: Resolution No. 2018-28 - FY2019 Budgeted Fee Schedule Changes The purpose of the memo is to recommend passage of Resolution 2018-28 that amend the City’s Comprehensive Schedule of Rates, Charges and Fees for changes proposed in the FY2019 Budget. Vintage Point Rents Vintage Pointe Manor was built with the intention of being an independent senior housing facility with rents to be based upon market rates. In 2015 the City commissioned a market rate study that was performed by Derry & Associates. That study determined that rents were below market rate. The City instituted a plan to increase rents to market rates by increasing rents annually by a maximum of $35.00 until market rate was reached and then annually by the change in the Anchorage Consumer Price Index. Any new tenants would immediately be charged market rates. The FY2019 Budget includes a continuation of this plan with 34 units increasing 0.20%, the increase in the Anchorage Consumer Price Index four units increasing to market rate but less than $35.00 per month and two units increase the maximum of $35.00 per month. The next scheduled market rent study will be performed in FY2019 for implementation in FY2020. Airport Fees The proposed amendment to the Airport’s Airline Operating Agreement calls for a 5% increase in landing fees, terminal rents, and signatory, airline, terminal apron parking and GSE storage space rent. The rate for non-signatory airline apron rental is in the fourth-year of a six-year plan to achieve market rate for the space. The FY2019 Budget includes an increase of $0.1701 per square foot per month from $0.699 to $0.87. Your support for Resolution 2018-28 is respectfully requested. 83 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Kathy Romain, Senior Center Director DATE: May 25, 2018 SUBECT: FY19 Vintage Pointe Rental Rates This Memo is in support of Resolution No. 2018-28, adjusting rental rates at Vintage Pointe Manor. Vintage Pointe Manor was built with the intention of being an independent senior housing facility with rents to be based upon market rates. In 2015 the City commissioned a market rate study that was performed by Derry & Associates. That study determined rents were below market rate. The City instituted a plan to increase rents to market rates by increasing rents annually by a maximum of $35.00 until market rate was reached and then annually by the change in the Anchorage Consumer Price Index. Any new tenants would immediately be charged market rates. The FY2019 Budget includes a continuation of this plan with 34 units increasing 0.20%, the increase in the Anchorage Consumer Price Index and six units increase the maxiumum of $35.00 per month. With this increase, 38 units will be at the current market rate. The next scheduled market rent study will be performed in FY2019 for implementation in FY2020. Thank you for your consideration. 84 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-29 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO INCORPORATE CHANGES TO THE CITY’S ANIMAL CONTROL FEES. WHEREAS, the existing fee in the City’s comprehensive schedule of rates no longer covers the cost to the City for insertion of a microchip in animals at the Kenai Animal Shelter; and, WHEREAS, the recommended increased fee for insertion of a microchip remains low within the animal control industry and is not anticipated to negatively impact adoptions; and, WHEREAS, all animals that are adopted from the Shelter are neutered or spayed, and the Kenai Animal Shelter gives animal adopters the choice of which local veterinary clinic they would like the Shelter to use for their spay or neuter services; and, WHEREAS, the Kenai animal shelter transfers adopted animals directly to a veterinarian for spay and neuter services to ensure spays and neuters are performed; and, WHEREAS, Animal control officers traveling significant distances to have these services performed, at adopters requests, has an impact on services offered and performed at that shelter in addition to adding cost and time spent outside of Officers’ patrol area which is within the City; and, WHEREAS, the addition of a transfer fee is recommended, which would add $2.04 per mile beyond the first four miles for animal control personnel to travel to and from a veterinary clinic, when delivering an animal for spay or neuter services; and, WHEREAS, Specialty veterinarian services that are not readily performed by all veterinarians in the area would be exempted from the transfer fee. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. The Animal Control Fees section of the City’s Comprehensive Schedule of Rates, Charges and Fees be amended as follows: ANIMAL CONTROL 3.05.100 (a) Kennel Facility – Non-refundable application fee $26.00 - approved application fee $76.00 3.05.100 (a)(5) Insertion of Microchip [$5.10] $10.20 85 Resolution No. 2018-29 Page 2 of 3 3.05.100 (b) Dog License - Sterilized Dog $10.20 Dog License - Non-sterilized Dog $30.60 Lost License Replacement $2.04 3.05.100 (c) (1) First Impoundment within 12 months- Dog $51.00 First Impoundment within 12 months- Cat $15.30 3.05.100 (c) (2) Second Impoundment within 12 months- Dog $71.40 Second Impoundment within 12 months- Cat $30.60 3.05.100 (c) (3) Subsequent Impoundment within 12 months- Dog $102.00 Subsequent Impoundment within 12 months- Cat $40.80 3.05.100 (c) (4) Facility Use Fee 15lbs or less - Per Day $20.40 Facility Use Fee more than 15lbs - Per Day $35.70 3.05.100 (c) (5) Dangerous Animal Impoundment $102.00 3.25.060 (c) Veterinary Services –Includes spaying, neutering, vaccinations, and other veterinary services. Actual Cost Veterinary services transfer fee – per mile (Actual mileage excluding the first four miles of travel) $2.04 N/A Animal Waiver Fee - Dog $20.30 Animal Waiver Fee – Puppy[/Cat] < 3 months $15.30 Animal Waiver Fee – Cat $15.30 Animal Waiver Fee – Kitten < 3 months $10.20 Animal Waiver Fee – Bird/Rodent $10.20 Animal Waiver Fee – Litter (3 or more) - Kittens $25.50 Animal Waiver Fee – Litter (3 or more) - Puppies $35.50 N/A Adoption Fee $20.30 Note: All Animal Control Fees are subject to a 2% discount for payment by means other than credit card. Section 3. That this resolution takes effect immediately upon passage. 86 Resolution No. 2018-29 Page 3 of 3 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 87 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Jessica “JJ” Hendrickson, Chief Animal Control Officer DATE: May 14, 2018 SUBJECT: Resolution No. 2018-29 - Animal Control Fee Changes The purpose of this memo is to recommend changes to the current fee schedule in regards to animal control fees. 1. The current fee schedule has a $5.10 charge for microchipping. Advances in the programing inside an individual microchip and computer software now allow the Kenai Animal Shelter staff the ability to register an animal to a new owner at the time of adoption from the shelter. This advancement will allow more animals to be reunited with their owners regardless of the Shelter being open or closed for business. The fee for each individual chip is $6.00. We recommend amending the fee to $10.20 which includes the fee of the individual chip and staff time to administer the chip. 2. The Kenai Animal Shelter gives future adopters the choice of which local Veterinary practice they would like us to take a specific animal to for spay/neuter services. We recommend adding a transfer fee in addition to the adoption fee for transportation services over 4 miles of travel to any veterinary practice, for non-specialty veterinary services. Specialty veterinary services not readily available at all veterinary clinics will be exempt from the transfer fee. We recommend a fee of $2.04 per mile after the first 4 miles of travel to any veterinary clinic. This fee incorporates the federal vehicle mileage fee and the average Animal Control Officer pay rate per mile. Thank you for your consideration. 88 _____________________________________________________________________________________ Sponsored by: Councilor Navarre CITY OF KENAI RESOLUTION NO. 2018-30 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A BUDGET TRANSFER WITHIN THE GENERAL FUND LEGISLATIVE TO PARKS, RECREATION & BEAUTIFICATION DEPARTMENT TO PURCHASE SUPPLIES FOR THE CONSTRUCTION OF A DISPLAY PAVILION FOR THE CITY’S HISTORIC FIRE TRUCK. WHEREAS, a group of Kenai businesses and residents led by former Mayor John Williams have completed restoration of the City’s first fire truck; and, WHEREAS, there is a desire to construct a pavilion near the City’s Public Safety Building to display the truck; and, WHEREAS, Mayor Williams is leading a group of businesses and volunteers to construct the pavilion; and, WHEREAS, the group has requested the City purchase the materials to construct the pavilion at an estimated cost of $5,000; and, WHEREAS, funding for the purchase was not budgeted but available funds have been identified within the Legislative Department’s budget for transfer to the Parks, Recreation & Beautification Department’s budget for the purchase; and, WHEREAS, pursuant to KMC 7.25.020, transfer of amounts $5,000 or more require a resolution by Council. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the following budget transfer be made: General Fund From: Legislative – Small Tools/Minor Equipment $3,000 Legislative – Operating & Repair Supplies 500 Legislative – Printing & Binding 500 Legislative – Books 200 Legislative – Miscellaneous 800 $5,000 To: Parks, Recreation & Beautification – Operating & Repair Supplies $5,000 Section 2. That this resolution takes effect immediately upon passage. 89 Resolution No. 2018-30 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 90 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Vice Mayor Navarre DATE: May 30, 2018 SUBJECT: Resolution 2018-30 ____________________________________________________________________________ The purpose of this memo is to request your support for passage or Resolution 2018-30. Resolution 2018-30 will provide funding, by budget revision, for the purchase of materials to construct a pavilion to display the City’s historic fire truck which restoration has recently been completed by volunteers and local businesses led by former Mayor John Williams. Mayor Williams, with continued support of volunteers and local business, will erect the pavilion utilizing the materials provided by the City on the Airport Way side of the public safety building. The City Clerk provided the location of excess funds in the FY2018 budget for the budget transfer. Preservation and display of this piece of City history is valuable and your support for passage of Resolution 2018-30 is respectfully requested. 91 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-31 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A BUDGET TRANSFER WITHIN THE AIRPORT FUND FOR REPAIRS TO THE HEATING AND VENTILATION CONTROLS OF THE AIRPORT OPERATIONS FACILITY. WHEREAS, the HVAC system installed by Meridian in 2002 in the Kenai Operations Facility is not working properly; and, WHEREAS, Meridian conducted a WEBCTL upgrade and recommissioning which identified the necessary repairs to bring the system back online and repair the second boiler; and, WHEREAS, having a system that is fully functional will save money in utility costs; and, WHEREAS, pursuant to KMC 7.15.030(a)(2) three quotes were received for the mechanical repairs and Cool Air Mechanical’s bid was found to be fair and reasonable; and, WHEREAS, funds are available in the Contingency Fund in the FY2018 budget; and, NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the following budget transfer be made: Airport Fund From: Administration – Contingency $11,500 To: Airfield – Repair & Maintenance $11,500 Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6 day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 92 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant – Airport Manager DATE: May 24, 2018 SUBJECT: Resolution 2018-31 - HVAC Repairs at Kenai Operations Facility An upgrade and recommission project by Meridian Systems at the Kenai Operations Facility has identified necessary repairs that will make the system run as originally installed and get the second boiler back on-line. Three quotes were requested for the mechanical repairs and one bid was received which was found to be fair and reasonable. Completion of this project will give the facility manager the ability to schedule and control the system which will result in utility savings. Please contact me if you have any questions. 93 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-32 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING AN AGREEMENT TO COOK INLET SPILL PREVENTION AND RESPONSE, INC. FOR THE USE OF THE CRANES, OFFICES, AND OPERATING AREA AT THE KENAI BOATING FACILITY. WHEREAS, proposals for use of the City of Kenai Boating Facility were solicited from Copper River Seafoods, Inc., Alaska Fish Factory, Ltd., and Cook Inlet Spill Prevention and Response, Inc. (CISPRI); and, WHEREAS, CISPRI submitted the highest responsive cost proposal; and, WHEREAS, award of contract to CISPRI is in the best interest of the City; and, WHEREAS, the recommendation from City Administration is to award the agreement to Cook Inlet Spill Prevention and Response, Inc. for the total cost of $20,000.00 for a term not exceeding 1 year; and, NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to award an agreement for use of cranes, offices, and operating area at the Kenai Boating Facility” to Cook Inlet Spill Prevention and Response, Inc. for the amount of $20,000.00 for a term not exceeding 1 year. Section 2. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6 day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 94 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mike Wesson, Building Official DATE: May 29, 2018 SUBJECT: Resolution 2018-32 - Awarding an Agreement for Contract to use Cranes, Offices, and Operating Area at the Kenai Boating Facility ____________________________________________________________________________ The purpose of this memo is to recommend adoption of a resolution awarding an agreement to enter into a contract with Cook Inlet Spill Prevention and Response Inc. (CISPRI).The purpose of this Contract is for the non-exclusive use of: open dock space, the City’s three cranes located on the dock, office space located on the dock, floating docks, moorings and an operating area adjacent to the dock. The contract for the dock was put out to bid two times previously with no bidders responding. The following businesses were contacted about submitting a proposal for the dock facility the week of May 14, 2018, with the following responses. Thank you for your consideration. Firm Cost Proposal CISPRI (Todd Paxton) $20,000.00 Alaska Fish Factory (Mike McCune) Not interested at current time Copper River (Clancy Niblack) Not interested 95 KENAI CITY COUNCIL – SPECIAL MEETING MAY 14, 2018, 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MINUTES A. CALL TO ORDER A Special Meeting of the Kenai City Council was held on May 14, 2018, in City Hall Council Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at 6:00 p.m. 1. Pledge of Allegiance Mayor Gabriel led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor Robert Molloy Henry Knackstedt Tim Navarre Jim Glendening Glenese Pettey Mike Boyle A quorum was present. Also in attendance were: Paul Ostrander, City Manager Jamie Heinz, City Clerk 3. Agenda Approval MOTION: Council Member Molloy MOVED to approve the agenda and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. B. PUBLIC COMMENT (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) There was no one in attendance to provide public testimony. C. EXECUTIVE SESSION 1. Review and Discussion of the City Manager’s Evaluation which may be a Subject that Tends to Prejudice the Reputation and Character of the City Manager [AS 44.62.310(C)(2)]. 96 City of Kenai Special Council Meeting Page 2 of 3 May 14, 2018 MOTION: Council Member Molloy MOVED to enter into executive session to review and discuss the City Manager’s evaluation which may be a subject that tends to prejudice the reputation and character of the City Manager [AS44.62.310(C)(2)]; and requested the attendance of City Manager Paul Ostrander as needed. Council Member Knackstedt SECONDED the motion. VOTE: YEA: Knackstedt, Gabriel, Glendening, Navarre, Molloy NAY: MOTION PASSED UNANIMOUSLY. Council Member Boyle joined the meeting at 6:03 p.m. Council Member Pettey joined the meeting at 6:05 p.m. Council reconvened in open session and it was noted for the record that Council met in executive session and reviewed and discussed the City Manager’s performance evaluation with the City Manager and reported his performance was above satisfactory. City Manager Ostrander was dismissed from the meeting at 8:20 p.m. Vice Mayor Navarre was excused from the meeting at 8:20 p.m. 2. Review and Discussion of the City Clerk’s Evaluation which may be a Subject that Tends to Prejudice the Reputation and Character of the City Clerk [AS 44.62.310(C)(2)]. MOTION: Council Member Molloy MOVED to enter into executive session to review and discuss the City Clerk’s evaluation which may be a subject that tends to prejudice the reputation and character of the City Clerk [AS44.62.310(C)(2)]; and requested the attendance of City Clerk Jamie Heinz. Council Member Knackstedt SECONDED the motion. VOTE: YEA: Knackstedt, Gabriel, Boyle, Glendening, Pettey, Molloy NAY: MOTION PASSED UNANIMOUSLY. Council reconvened in open session and it was noted for the record that Council met in executive session and reviewed and discussed the City Clerk’s performance evaluation with the City Clerk and reported her performance was above satisfactory. 97 City of Kenai Special Council Meeting Page 3 of 3 May 14, 2018 D. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 9:41 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of May 14, 2018. _____________________________ Jamie Heinz, CMC City Clerk 98 KENAI CITY COUNCIL – SPECIAL MEETING MAY 15 , 2018, 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MINUTES A. CALL TO ORDER A Special Meeting of the Kenai City Council was held on May 15, 2018, in City Hall Council Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at 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 (absent) Jim Glendening Glenese Pettey Mike Boyle A quorum was present. Also in attendance were: Jamie Heinz, City Clerk 3. Agenda Approval MOTION: Council Member Molloy MOVED to approve the agenda and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. B. PUBLIC COMMENT (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) There was no one in attendance to provide public testimony. C. 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)]. 99 City of Kenai Special Council Meeting Page 2 of 2 May 15, 2018 MOTION: Council Member Molloy MOVED to enter into executive session to review and discuss the City Attorney’s evaluation which may be a subject that tends to prejudice the reputation and character of the City Attorney [AS44.62.310(C)(2)]. Council Member Knackstedt SECONDED the motion. VOTE: YEA: Knackstedt, Gabriel, Boyle, Glendening, Pettey, Molloy NAY: MOTION PASSED UNANIMOUSLY. Council reconvened in open session and it was noted for the record that Council met in executive session and reviewed and discussed the City Attorney’s performance evaluation. It was further noted that the Council would meet with the attorney during Executive Session at the May 16 meeting to discuss the evaluation with him. D. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 6:53 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of May 15, 2018. _____________________________ Jamie Heinz, CMC City Clerk 100 KENAI CITY COUNCIL – REGULAR MEETING MAY 16, 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 16, 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: **Brittany Gilman, Student Representative Paul Ostrander, City Manager Scott Bloom, City Attorney Jamie Heinz, City Clerk 3. Agenda Approval MOTION: Council Member Molloy MOVED to approve the agenda and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. 101 City of Kenai Council Meeting Page 2 of 9 May 2, 2018 Mayor Gabriel opened the public hearing; there being no one wishing to be heard, the public hearing was closed. VOTE: There being no objections, SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS 1. Frank Richards, Alaska Gasline Development Corporation – LNG Project Presentation. Frank Richards with the Alaska Gasline Development Corporation provided a project update noting they were eagerly searching for buyers of LNG product and with the addition of some initial agreements, they were able to transition from framework planning to definitive planning. He also noted they were expecting a decision on the Environmental Impact Study in 2019, and a decision from the Federal Energy Regulatory Commission in early 2020 which would kick off construction. Richards pointed out that other permitting was being reviewed concurrently, they were raising funding to build the project, and working on getting contracts in place. He also discussed the feasibility of working with City of Kenai for their water supply, helping with building infrastructure at the expense of the LNG project. 2. Riley Graves, Caring for the Kenai Contestant – Magnetic Beach Sweeper Concept Overview. Riley Graves provided an overview of his magnetic beach sweeper concept noting only a rake was currently being used to clean up the beach after the dipnet fishery and if a magnet was added, it would be a lot more effective in cleaning metal from the beach. He provided costs, grant opportunities, and demonstrated his prototype. C. UNSCHEDULED PUBLIC COMMENTS Wally Page, UCIDA, suggested the wake signs recently approved would create animosity and asked that signage also be included in the mouth and the upper river as well so a single user group isn’t singled out. He noted the fleet doesn’t try to create wakes but are pushing against tides and if they lose speed, they lose steerage which creates dangerous situations. Steve Tvenstrup also expressed concern with lack of notice to UCIDA office noting the members could have provided insight on signage. He pointed out that from a safety perspective, from the dock upriver is where the unsafe situations happen with dipnetters, and suggested signs for personal use fishery users as well. Tvenstrup also spoke about the amount of fish being taken by the personal use fishery which results in loss of raw fish tax. 102 City of Kenai Council Meeting Page 3 of 9 May 2, 2018 D. PUBLIC HEARINGS 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. MOTION: Council Member Knackstedt MOVED to enact Ordinance 3021-2018 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 appraised amount was fair given the limits put on the use of the property. VOTE: YEA: Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt NAY: **Student Representative Gilman: YEA MOTION PASSED UNANIMOUSLY. 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. MOTION: Council Member Molloy MOVED to adopt Resolution No. 2018-21 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. It was suggested that an amendment to the policy, made in the past, left an unintended consequence where the policy circumvented the code in the required referral of some ordinances to be reviewed by an advisory commission. There was ambiguity whether Council owned the ordinances or whether administration could still send things to advisory bodies. The revised policy clarifies and modifies language where required advisory recommendations exist. Provisions for time sensitive situations, processes for multiple referrals, and automatic referrals in certain situations were topics discussed. MOTION TO AMEND: 103 City of Kenai Council Meeting Page 4 of 9 May 2, 2018 Council Member Knackstedt MOVED to amend policy section 6.c. by removing, “and upon introduction of an ordinance,” from the end of the second sentence and Vice Mayor Navarre SECONDED the motion. Effects of automatic referral, an item having to be introduced in order to be discussed, the potential to take three meetings for final action to take place, a notation on the agenda that indicates a referral is required to comply with code, and Council giving the advisory commissions direction were topics discussed. VOTE ON THE AMENDMENT: YEA: Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt NAY: **Student Representative Gilman: YEA MOTION PASSED UNANIMOUSLY. VOTE ON THE MAIN MOTION: YEA: Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt NAY: **Student Representative Gilman: YEA MOTION PASSED UNANIMOUSLY. E. MINUTES 1.*Regular Meeting of May 2, 2018 Approved by the consent agenda. F. UNFINISHED BUSINESS 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.] Objection was stated to department heads serving at will. MOTION TO AMEND: Council Member Boyle MOVED to amend by removing the last two sentences in 23.10.035 (b) and Council Member Molloy SECONDED the motion. There was objection to the amendment noting the ordinance, as written, enhanced the ability to act like private sector where a department head has to answer to someone for actions taken. 104 City of Kenai Council Meeting Page 5 of 9 May 2, 2018 It was noted that it was common practice for a CEO to have the abilities afforded in the ordinance; the check and balance being provided was the City Manager needed to have good cause and would have to answer to the Council on those decisions. The differences between private and public entities were discussed. VOTE ON THE AMENDMENT: YEA: Molloy, Boyle NAY: Gabriel, Navarre, Glendening, Knackstedt **Student Representative Gilman: NAY MOTION FAILED . MOTION TO AMEND: Vice Mayor Navarre MOVED to amend by adding to the end of the definition of Department Head Service in 23.05.070(c), “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.” and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. MOTION TO AMEND: Vice Mayor Navarre MOVED to amend Section 45 of the ordinance by changing the heading of the pay schedule for all employees excluding those engaged in fire protection services to read, “FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR ALL CLASSIFEID EMPLOYEES EXCLUDING EMPLOYEES ENGAGED IN FIRE PROTECTION ACTIVITIES.” and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. MOTION TO AMEND: Vice Mayor Navarre MOVED to delete Section 46 of the ordinance in its entirety and renumber the following sections appropriately. Council Member Molloy SECONDED the motion and requested UNANIMOUS CONSENT. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. The attorney was thanked for the sectional analysis he provided. VOTE ON THE MAIN MOTION: YEA: Gabriel, Navarre, Glendening, Knackstedt NAY: Molloy, Boyle **Student Representative Gilman: YEA 105 City of Kenai Council Meeting Page 6 of 9 May 2, 2018 MOTION PASSED. G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. Approved by the consent agenda. 2. *Action/Approval – Non-Objection to New Marijuana Product Manufacturing Facility License for Herban Extracts, LLC – License No. 14432. Approved by the consent agenda. 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. Introduced by the consent agenda and public hearing set for June 6, 2018. 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. Introduced by the consent agenda and public hearing set for June 6, 2018. 5. Action/Approval – Approve a Special Use Permit to HDL Engineering Consultants, LLC, for Storage Space at Tract A, FBO Subdivision. MOTION: Council Member Knackstedt MOVED to approve a Special Use Permit to HDL Engineering Consultants, LLC for storage space at Tract A, FBO Subdivision and Council Member Molloy SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE: There being no objection; SO ORDERED. 6. Action/Approval – Special Use Permit to Reddi Towing & Salvage, LLC, for Impound Lot Space at Lot 4, Block 5, Cook Inlet Industrial Park. MOTION: Council Member Molloy MOVED to approve a special use permit to Reddi Towing & Salvage, LLC for impound lot space at Lot 4, Block 5, Cook Inlet Industrial Park and Council Member Glendening SECONDED the motion. UNANIMOUS CONSENT was requested. 106 City of Kenai Council Meeting Page 7 of 9 May 2, 2018 VOTE: There being no objection; SO ORDERED. 7. Discussion – Dipnet Vendor Operations. The City Clerk provided an overview of the pilot project for changing operations for vendors wanting to participate in the Dipnet Fishery noting that vendors were surveyed, goals were established, and a process developed that accomplished most of what the vendors requested and the established goal. It was pointed out that this was a pilot project and administration expected to learn from the process and would be better equipped to bring forth recommendations for possible code changes after the initial effort. H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – No Report; next meeting June 14. 2. Airport Commission – It was reported that at their May 10 meeting the Commission reviewed the Terminal Rehabilitation Project, recommended approval of Special Use Permits and a land lease application. It was also noted that the annual Air Fair was being held on June 9; next meeting June 14. 3. Harbor Commission – It was reported that at their May 10 meeting the Commission heard about the Dipnet Vendor pilot project and were notified of the approval of their requested sub-committee; next meeting June 11. 4. Parks and Recreation Commission – It was reported that at their May 3 meeting the Commission heard about the Dipnet Vendor pilot project and heard from a representative about being a bike friendly community; next meeting June 7. 5. Planning and Zoning Commission – It was reported that on May 9, the Commission approved a plat and the transfer of a gravel pit Conditional Use Permit, recommended approval of a lease application and adoption of an ordinance amending regulations for Standard Marijuana Cultivation facilities; next meeting May 23. 6. Beautification Committee – It was reported that on May 8, the Committee reviewed the flower bed designs, winter decorations, and set Volunteer Plant Day for June 9; also expressed an interest in discussing signage at the Field of Flowers; next meeting September 10. 7. Mini-Grant Steering Committee – No report. I. REPORT OF THE MAYOR Mayor Gabriel reported on the following: • Attended the Local Government Revenue Challenges Work Session; suggested it be an annual meeting; • Attended dinner with the BP Teachers of Excellence nominees; • Testified before the Borough Assembly on the Borough budget and reiterated taxing positions; • Attending the Senior Night softball game and thanked the Rotary Club for their donation for the bleachers; 107 City of Kenai Council Meeting Page 8 of 9 May 2, 2018 • Thanked Student Representative Gilman for her service on Council; • Provided a reminder for the upcoming Budget Work Session. J. ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: • Noted the voices of the cities were heard and impacts would be seen in the borough budget; • Met with Alaska Department of Environmental Conservation regarding the listing of the Kenai River on the state’s listing for impairment; added fecal coliform and zinc exceedance; • May 18 designated as the Annual City Employee City Clean-up Day; • Announced the upcoming Employee Appreciation Party; • Announced the retirement of the Fire Marshal; • Noted Animal Planet was in town filming for a documentary on the wildlife refuge and also filming the Eagle Cam location which will provide good exposure when the program airs next year; • Pointed out the benefits of weighing in sooner than later on the road reroute to the proposed LNG site; • Noted after an enormous amount of work by Senators Murkowski and Sullivan and their staff the Bluff Erosion Project decision was signed; will hear from the Corps of Engineers soon regarding the updated timeline; • New Public Works Director started today. 2. City Attorney – No Report. 3. City Clerk – J. Heinz provided an overview of upcoming training she was attending and an overview of the budget for the Clerk’s Office. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) None. 2. Council Comments All Council Members thanked Student Representative Gilman for her service on City Council. Vice Mayor Navarre thanked the Mayor for covering so many events; noted he attended an Alaska Gasline Development Corporation Advisory Council retreat on the Kenai Peninsula and noted the need to get the word out to encourage the State to fund programs at the college level to create a work force for the LNG project; asked if $10,000 was available for a carport for the renovated firetruck. Council Member Knackstedt thanked the manager for organizing the Local Government Revenue Challenges work session; pointed out the historical society newsletter was in packet. 108 City of Kenai Council Meeting Page 9 of 9 May 2, 2018 Student Representative Gilman noted she was grateful for the opportunity to serve on Council; noted graduation coming up on May 21; also reported she would be travelling to Kenai’s sister city in Japan and performing in music and arts events. 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)]. MOTION: Council Member Molloy MOVED to enter into executive session to review and discuss the City Attorney’s evaluation which may be a subject that tends to prejudice the reputation and character of the City Attorney [AS44.62.310(C)(2)] and requested the availability of the City Attorney as needed. Council Member Knackstedt SECONDED the motion. VOTE: YEA: Knackstedt, Gabriel, Boyle, Glendening, Navarre, Molloy NAY: MOTION PASSED UNANIMOUSLY. Council reconvened in open session and it was noted for the record that Council met in executive session and reviewed and discussed the City Attorney’s performance evaluation with the City Attorney and reported his performance was above satisfactory. M. PENDING ITEMS – None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 10:14 p.m.. I certify the above represents accurate minutes of the Kenai City Council meeting of May 16, 2018. _____________________________ Jamie Heinz, CMC City Clerk **The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast in the rotation of the official council vote and shall not affect the outcome of the official council vote. Advisory votes shall be recorded in the minutes. A student representative may not move or second items during a council meeting. 109 KENAI CITY COUNCIL JOINT WORK SESSION FY2019 BUDGET MAY 19, 2018 – 9:00 A.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR GABRIEL, PRESIDING NOTES Council present: Mayor Gabriel, Vice-Mayor Navarre, J. Glendening, H. Knackstedt, M. Boyle Others present: City Manager P. Ostrander, Finance Director T. Eubank, City Attorney S. Bloom, Deputy City Clerk J. Kennedy, City Planner E. Appleby, Public Works Director S. Curtain, Buildings Official M. Wesson, Airport Director M. Bondurant, Parks & Recreation Director B. Frates, Senior Center Director K. Romain, Library Director M. Joiner, Acting Fire Chief T. Prior, Police Chief D. Ross A. Call to Order Mayor Gabriel called the work session to order at 9:00 a.m. B. Public Comment There was no public comment. C. Introduction – Paul Ostrander, City Manager City Manager Ostrander provided an introduction on the FY2019 Budget process, noted the bottom line total is slightly over six (6) percent increase in budget, pointing out examples that were included but do not represent cash outflows and include capital outlays. Excluding those makes the budget increase from last year only just over two (2) percent. Ostrander described the change in the way the budget document was put together this year with a shift on how to view the budget, focus on the “why” and understand what the City was trying to accomplish as individual departments as well as a City. He noted it would be presented by individual department leads and included functions and responsibilities, staffing, performance measures, department goals, and future considerations. D. General and Revenue Overview Presentation – Terry Eubank, Finance Director Finance Director Eubank called attention to a memo that was provided to summarize the changes that had been proposed to the FY19 Budget since disbursement of the draft document in April. Director Eubank provided a general and revenue overview, noting the budget was built around an assumption of a ten (10) percent healthcare premium increase. The following revenue sources were highlighted: property tax, sales tax, state/federal, other, central admin fee, fund balance, interest on investments, transfers in. 110 KENAI CITY COUNCIL WORK SESSION MAY 19, 2018 PAGE 2 of 9 The following expenditures were highlighted: • Personnel Changes • Salary Schedule Cost of Living Allowance • PERS On-Behalf Funding • Employee Health Care • Public Employees Retirement System • Increase to the Equipment Replacement Fund Eubank reported overall it was $23,000 for budgetary impact on wages and benefits. Director Eubank advised that the goals and objectives of employee health/life insurance was to provide quality coverage, maximize savings, and stabilize the budgetary impact of employee health and life insurance costs. The increase would be around 9.8 percent. If the City were to keep the existing plan, it would be a 14 percent increase. The minor change would create higher deductible for out of network services and would create an out of pocket maximum. Eubank noted the biggest change was going to be prescription plan. City Manager Ostrander added that the new plan encourages employees to use generic alternatives to the name brand on select drugs. Director Eubank reported that the PERS On-Behalf Funding level increased in FY2019 from 3.01 to 5.58% of covered payroll. He further noted the personnel changes included: Title and duties of the Manager’s Assistant; Establishment of a Human Resources (HR) Director; Increase in qualification pay for Police; Restructuring of Temporary Enforcement Officers schedule to lengthen the period of employment and a reduction of one position; IT Summer Intern, eight-week position; Temporary Land Technician; Re-classification of Building Official position; Removal of the 365 days a year shift coverage for Wastewater Treatment Plant staff; Elimination of three 24-hour/week positions at the Library, through attrition, and replace with one 40-hour position and one 14-hour position. Director Eubank directed distinct attention to the General Fund page labeled, “What do your taxes pay for” for use as a talking point with community members or citizens as an informative reference tool. Eubank highlighted the following special or capital expenditures: Caselle Cemetery Management Software purchase; Caselle Court Management Software purchase; W ireless backhaul, Phase 1; Recreation Center Improvements; Fire Department kitchen re-model; Street improvements to be identified; Senior Center dishwasher replacement; Senior Center tile and carpet replacement; Replacement of two Police cruisers; Replacement of thermal imaging camera; Intake valve at Fire Department; Backup generator for City Shop facilities; Snow blower head replacement; HR Director office construction; Re-finish the Visitor’s Center exterior; and Treadmill replacement at Kenai Rec Center. 111 KENAI CITY COUNCIL WORK SESSION MAY 19, 2018 PAGE 3 of 9 E. Department Presentations The new Public Works Director, Scott Curtin was introduced and welcomed by Council members. 1. City Manager City Manager Ostrander advised on the budget entity-wide organization chart, and clarified that it was meant to represent the supervisory structure of the City. Ostrander clarified that the grading criteria was based on individual requirements and the change in the Assistant to the City Manager position would include Special Projects and Community Development Coordinator role; and separately to establish a HR Director. Ostrander noted the department goals and performance measures moving forward as outlined in the budget. There were no significant budgetary changes. Visitor Center – Ostrander reported that the current facilities agreement expires on 12/31/18 and an invitation for bid for another Concessionaire to manage this facility would be advertised early in FY2019. Land Administration – Only change is the request for a temporary Lands Assistant for 520 hours specifically designated to finish the City’s Land Management Plan. It would be an extensive process that will include Council and potentially several work sessions. Human Resources – This would be a new department and the mission and responsibilities was created by current administration. Ostrander noted he expected to see a change in the mission and performance measures when the position was filled. This would be the first position hired under the Department Head Service approved at the May 16 Council meeting. Administration is continuing to refine NEOgov, as it would be the primary step in recruitment; extremely resourceful and positive results since the City started using. 2. Legal City Attorney Bloom highlighted the name aspects on the budget and noted that the biggest change was the performance issues that had not been incorporated in the past, to include managing litigation costs and collections on citations. He added that a number of contracts were processed through the attorney’s office, and now every piece of legislation was going through the attorney’s office before Council, so it would be tracked. Bloom noted that the significant changes in the budget were shedding of the code publishing responsibilities to City Clerk office; and a one-time fee for purchasing new a software system in order to process citations. 3. Finance 112 KENAI CITY COUNCIL WORK SESSION MAY 19, 2018 PAGE 4 of 9 Finance Director Eubank clarified that the proposal of an intern would allow for support and relief of the IT Director during Personal Use fishery, and additional help for projects. He noted that employee onboarding and transition takes a significant amount of time, as well as financial grants and administration. Eubank noted that it was a goal to increase the abilities of utility billing online. In addition, to migrate the three IT domains in the City all into one domain. Council Member Navarre suggested using a temporary hire person for the Eagle Cam and personal use fishery, allowing the IT Director to focus on higher priority needs. Non-Departmental Finance Director Eubank advised that this was where insurance costs for the general fund and all departments are, as well as City Manager’s contingency, where transfers out come from, various capital projects, equipment fund payments, rentals, etc. 4. Planning & Zoning City Planner Appleby provided an overview of the Planning and Zoning budget and noted the largest reduction in the budget was under professional services, which paid for technical support of the Geographic Information System (GIS) and junk vehicle removal. Council recommended increasing funds in travel to ensure Appleby’s attendance to the American Institute Certified Planner (AICP) training. City Manager Ostrander added that the previous planner was not AICP certified and returning to the higher budgeted amount would ensure travel and transportation costs were covered. Council supported transferring $1,700 back into the budget for this purpose. COUNCIL MEMBER BOYLE ARRIVED AT 11:17 A.M. It was clarified that because the City owns much land associated with the airport, additional time/funds is allocated to it as needed in the managing of the land use. 5. Police Chief Ross advised the need to get back on a cycle of vehicle replacement. He reported that a vehicle had not been replaced in three years and currently, the average age of a police vehicle was 9 years old. The two vehicles being replaced were 2005/2006 models. Animal Control - There were no recommended amendments. Communications – An error was noted in organization chart that would be corrected, there are 7 dispatchers, not 10. 6. Fire 113 KENAI CITY COUNCIL WORK SESSION MAY 19, 2018 PAGE 5 of 9 Acting Chief Prior reported that there was a 27 percent increase in calls in the last 5 years. Council expressed interest in further analyzing the real life of a fire truck versus advocating for replacement after just a set number of years. Council Member Knackstedt advised looking ahead and if need additional staffing or more competitive pay, discuss with Ostrander and plan for accordingly with next budget proposal. 7. Public Works City Manager Ostrander advised there was a significant reduction in Public Works department budget due to 29 percent of the Public Works Director’s time would be allocated to Water and Sewer and Waste Water, so the salary cost was shared between departments. Safety – It was noted that the safety program and more focus on safety was in place and workers comp claims were significantly less this year. Finance Director Eubank noted the City received the workers comp renewal. There were no recommended amendments to the Public Works budget. Shop - It was noted that the increase in the budget was because the City would not put salt in their sand this year and it was being stored in a building rented from the Airport. Streets – City Manager Ostrander noted potential areas that the capital money would be spend was on Aliak St. Buildings – Ostrander noted some upward adjustments and that the chart would be revised to include a new classification and a grade of 14, although it had minimal budget implications. Ostrander clarified the change was due to the Building Official getting a promotion and supporting the Public Work Director in managing capital projects. Ostrander noted the overall budget was up and funds from this budget would be used to construct the new HR Office. Street Lighting There were no recommended amendments. Boating Facility – Ostrander advised the need for a better analysis of that site to keep it fully functional for years. There were no recommended amendments. 8. Library Director Joiner noted the revision in the number of Library Aides. 114 KENAI CITY COUNCIL WORK SESSION MAY 19, 2018 PAGE 6 of 9 Finance Director Eubank clarified regarding computers that the plan forward with IT would be a five-year replacement plan. He added that each department was financially responsible for the number of computers they had so when it was time for replacement, it will be replaced and financial aspect would already be covered. 9. Parks, Recreation & Beautification Director Frates provided an overview of the mission statement and goals. He noted the performance measures were a good gauge for growth and tied specific to the department goals. Council requested that items be listed that were considered but not included in the budget and to list the priority of the Parks. Council Navarre expressed interest in an addition to the budget to include upgrades to 4th avenue park. 10. Personal Use Fishery Fund a. General, Revenue, and Department Overview Director Eubank discussed the following fees: Day use parking, overnight parking, camping with tent, dock launch and parking, participant drop-off fee. No changes in the fee funds were proposed but it was noted that the fees paid at any one location were honored at both beaches and the dock. Eubank noted a significant change in the budget was a $50,000 transfer to the General Fund. No significant management fund changes; overall fund budget was up by eight (8) percent. 11. Water & Sewer Fund a. General and Revenue Overview Director Eubank advised that 97 percent of this fund comes from usage fees. He noted that currently, they were only doing COLA increases within the rates, but not raising it this year as it was a minimal change. b. Water & Sewer Departments City Manager Ostrander and Public Works Director Curtin provided an overview, the proposed change in personnel shift schedule, and future budget considerations. c. Sewer Treatment Plant Ostrander advised that it was a priority to determine how to upgrade the plant and the costs associated, which may be significant so it would be advantageous and proactive to keep funds in the General Fund for such use when the time arises. 115 KENAI CITY COUNCIL WORK SESSION MAY 19, 2018 PAGE 7 of 9 12. Airport Fund a. General and Revenue Overview Director Eubank presented highlights on the Airport Fund, including the refinements made in outlook revenue, noting administration was working with a consultant to look at the airport agreement, landing fees, etc. and now proposing a five (5) percent increase in amendments. He further reported the increase in Apron rates. Eubank noted that 40 percent of revenue comes from the permanent fund. He further provided details of the FAA Flight Service Station Rent, noting that since 2012, $680,000 was recorded as Airport Fund Revenues. After improvements and land rent due to the airport, a transfer was proposed to the general fund of $233,221. Eubank noted that the airport would be paid annually for the value of the land and the airport would get a return on their investment of their building. The history of the fund between 1984 to current was discussed. b. Airport Departments Director Bondurant provided an overview on the history of the airline operating agreement. She noted that the Consultant recommended extending the agreement for 1 year or when rehabilitation project was complete and then do another airline agreement for five years under new conditions. Director Eubank noted a change to the overview page to remove the word “phased”. The performance measures of Airport Administration were noted and included: Airline Rents & Leases, Airline landing fees, Revenue per Enplaned Passenger, and FAA Grant Expenditures. Other Buildings and Areas of Airport included Float Plane Slips Leased, Water Landings, Fuel Sold (Gallons), Tenants, Slip Rental, Transient Parking Fees, and Lots Available for Lease. The performance measures of Alaska Fire Training Facility were noted as: Student Trainings, Class Trainings, Facility Repairs & Maintenance, and Vehicle Repair & Maintenance. 13. Senior Citizen Fund a. General and Revenue Overview Director Eubank reported on the following FY19 projected revenue sources: State Grants, USDA Grants, Choice Waiver, KPB Grant, United Way Grant, Rents and Leases, Senior Connection Donations, Other Donations, Transfers from the General Fund of Operations and Capital Projects. b. Senior Citizen Fund Departments Director Romain advised that there was only one personnel change with the new budget; the position title of Outreach Worker to Driver for delivery of meals but it would not affect the budget amount. 116 KENAI CITY COUNCIL WORK SESSION MAY 19, 2018 PAGE 8 of 9 Performance measures in place for the Senior Center included: Congregate meals, Home Delivered Meals – Non-Choice Waiver, Home Delivered Meals – Choice Waiver, Assisted and Unassisted Rides, Volunteer Hours, and Activity Participation Units. Director Romain expressed intention of looking into and pursuing getting a greenhouse at the Senior Center next fiscal year. Romain reported that the Kenai Senior Center received the greatest designations through United Way but moving forward, that there was a 25 percent raise in grant funds per meal b by the State of Alaska. 14. Congregate Housing a. General and Revenue Overview Director Eubank reported 98 percent of revenue comes from tenant rents but this fund also included interest earnings and other miscellaneous. He suggested a change of the current provision in code, to not transfer funds when it reached a half-million in the account. The purpose of this recommended change was discussed. b. Senior Citizen Fund Departments There were no recommended amendments. 15. Employee Health Care Fund a. General, Revenue, and Department Overview Director Eubank reported the projected revenue sources were significantly by charge for services, in addition to participant premiums and interest earnings. There would be a 9.8 percent increase with a few small changes; otherwise, to keep the health care the same, it would have been a 14 percent increase. Employees’ portions would be re-calculated based on the 10 percent shared cost. Eubank noted that once the City had 100 covered employees for 9 months, the insurance company would be willing to provide significantly more information that would help administration advise employees on how to save costs on health insurance. 16. Permanent Funds a. General, Revenue, and Department Overview Director Eubank reported that the Airport Land Sales Permanent Fund was established to account for the proceeds of airport land sales, including principal and interest on long-term notes. Eubank noted that the General Government Land Sales Permanent Fund was established to account for the proceeds of general government land sales, including principal and interest on long-term notes. He added that the City’s outstanding debt was 1.26 million; a debt until 2030. 117 KENAI CITY COUNCIL WORK SESSION MAY 19, 2018 PAGE 9 of 9 17. Debt Service a. General, Revenue, and Department Overview Director Eubank provided an overview; there were no recommended amendments. 18. Equipment Replacement Fund a. General, Revenue, and Department Overview Director Eubank clarified that the projected equipment replacements in FY2019 were the Fire Department Engine #3 and the Street Sweeper. He added that it would be brought to Council for approval. F. Additional Public Comment There was no one wishing to be heard. G. Council Comments Council expressed gratitude to Administration for their time and effort in the budget process and noted that the information by each department was thorough and appreciated. The new budget layout was well accepted and Council thanked Administration for the quality presentations and discussion. Vice Mayor Navarre thanked the press for attending all day. Navarre also stated that he would like to see some plan in the budget to better the parks. He further added that it would be advantageous to have funds in the budget for Council to travel to Washington D.C. for legislative discussion and networking. Director Eubank noted that a resolution would be drafted and brought to the next Council Meeting regarding a budget transfer of $5,000 for construction of a fire truck shelter in FY2019. Eubank further offered to Council if they are interested in meeting with him prior to a Council meeting, he could address things specific to their interest, during the Council meeting. H. Adjournment The work session adjourned at 6:30 p.m. Notes were prepared by: _______________________________ Jacquelyn Kennedy Deputy City Clerk 118 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: JUNE 6, 2018 VENDOR DESCRIPTION PERS PERS HOMER ELECTRIC ELECTRIC USAGE INVESTMENTS VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT VARIOUS LIABILITY 87 ,419.31 VARIOUS UTILITIES 109,648.44 MATURITY DATE AMOUNT Effect. Int. 119 PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: JUNE 6, 2018 VENDOR FOSTER CONSTRUCTION DESCRIPTION CYPRESS & ALDER VALVE REPLACEMENT INCREASE OF EXISTING PURCHASE ORDER VENDOR DESCRIPTION DEPT. WATER P.O.# -DEPT. ACCOUNT AMOUNT REPAIR & MAINTENANCE 17,800.00 REASON AMOUNT TOTAL PO AMT 120 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin – Public Works Director DATE: May 24, 2018 SUBJECT: Purchase Order – Woodlands Subdivision Water Main Valve Repl. The purpose of this memo is to request approval to contract for the replacement of two inoperable water main valves within the Woodlands subdivision. This work shall provide greater control over the water system, and prevent a possible valve failure in the future. The new valves will also assist operations with the required occasional flushing of the water mains. Three contractors were contacted for quotes: Foster’s Construction at $17,800.00 NorthStar Paving & Construction $18,775.00 Peninsula Construction declined to provide quote. Foster’s Construction quote was found to be fair and reasonable. Funding for this work as follows: Account # 010-465-4538 Water & Sewer Repairs & Maintenance $15,800.00 Account # 010-465-2022 Water & Sewer Operating Supplies $2,000.00 (moved by budget transfer to acct #010-465-4538.) Thank you for your consideration. 121 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3024-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUE AND APPROPRIATIONS IN THE GENERAL AND AIRPORT SPECIAL REVENUE FUNDS FOR FY2018 FIRE DEPARTMENT OVERTIME IN EXCESS OF BUDGETED AMOUNTS. WHEREAS, on February 21st 2018 Resolution 2018-11 was approved to transfer $26,450.00 within the Fire Departments budget to address overtime short falls due to injuries, and the vacancy of the Floater Position from July 1 through August 10th; and, WHEREAS, the Fire Department anticipated at that time, needing a supplemental appropriation to cover the overtime expenditures for the last few months of FY2018; and, WHEREAS, budget transfers from Resolution 2018-11 have been exhausted; and, WHEREAS, the Kenai Municipal Airport compensates the City’s General Fund for the costs of three fire personnel for the fire and emergency services provided to the Airport; and, WHEREAS, the increased overtime needed for department staffing is a cost in which the airport should share proportionally; and, WHEREAS, payment of overtime is in the best interest of the City to maintain minimum staffing levels and services. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the Airport Special Revenue Fund’s estimated revenues and appropriations be increased as follows: Airport Fund: Increase Estimated Revenues – Appropriation of Fund Balance $10,990 Increase Appropriations – Airfield – Transfer Out (Central Administrative Charge) $10,990 Section 2. That General Fund estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues – Appropriation of Fund Balance $30,557 122 Ordinance No. 3024-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Charges to Other Funds – Airport 10,990 State of Alaska – PERS On-Behalf Funding 1,605 $43,152 Increase Appropriations: Fire Department: Overtime $34,028 Medicare 390 PERS 5,914 Unemployment Insurance 265 Workers Compensation 950 41,547 Non-Departmental – PERS 1,605 $43,152 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this * day of *, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: *, 2018 Enacted: *, 2018 Effective: *, 2018 123 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Jeff Tucker, Fire Chief DATE: May 18, 2018 SUBJECT: Supplemental Overtime Request ______________________________________________________________________ In February, Resolution 2018-11 passed to allow us to transfer funds within our budget to cover upcoming overtime expenditures. At that time, we had expended 89% of our budget and we anticipated needing a supplemental appropriation for the last couple of month of FY18. To recap on those items in Resolution 2018-11 causing the overtime expenditures: • Floater Position actual hire date was 8/10/18, resulting in Overtime expenditures not budgeted for in FY18. • 624 hours of family medical leave / Workers Comp injury. • And 432 hour of mandatory training still to complete in FY18 As of this time, we have exhausted our Overtime budget, and are requesting a supplemental appropriation to cover the anticipated overtime cost for the remainder of FY18. We have cancelled all non-mandatory training that would result in overtime and are only requesting funds for the minimum staffing of our department personnel. We have looked at previous years to average the number of recall hours for minimum staffing levels in the remaining months, as well as our known overtime for FLSA remaining in the fiscal year. 124 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3025-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE SECTION 14.20.330 – STANDARDS FOR COMMERCIAL MARIJUANA ESTABLISHMENTS AND AMENDING KENAI MUNICIPAL CODE SECTION 14.22.010 – LAND USE TABLE, TO PROHIBIT STANDARD MARIJUANA CULTIVATION FACILITIES IN RESIDENTIAL ZONES. WHEREAS, on November 4, 2014, the voters of the State of Alaska passed Ballot Measure No. 2, An Act to Tax and Regulate the Production, Sale, and Use of Marijuana, codified as Alaska Statute 17.38; and, WHEREAS, Alaska Statute 17.38.210 states in part that “a local government may enact ordinances or regulations not in conflict with this chapter or with regulations enacted pursuant to this chapter, governing the time, place, manner and number of marijuana establishment operations”; and, WHEREAS, the City, as a home rule municipality, has the authority to provide responsible Zoning Regulations that protect the public peace, health, safety and welfare; and, WHEREAS, the City has enacted regulations of commercial marijuana establishments through its zoning code and land use table; and, WHEREAS, after numerous public hearings on conditional use permits for commercial marijuana establishments, further review and implementation of the recently enacted regulations and experience with the newly legalized industry, the Planning and Zoning Commission recommends certain amendments to the current regulations; and, WHEREAS, State Statute and Kenai Municipal Code recognize a difference between commercial marijuana cultivation ‘standard’ (over 500 square feet or greater) and limited (less than 500 square feet); and, WHEREAS, current City regulations allow both standard and limited commercial cultivation in residential zones through a conditional use permit as long as other zoning requirements are met; and, WHEREAS, the Planning and Zoning Commission found that standard commercial cultivation may have an unjustifiable impact on residential neighborhoods given the potential business nature of a larger scale cultivation, including numerous employees and increased traffic that is not compatible with residential neighborhoods; and, WHEREAS, on May 9, 2018, the Planning and Zoning Commission passed Resolution PZ2018- 13 recommending the Kenai Zoning Code and Land Use table be amended to prohibit standard marijuana cultivation facilities in residential zones as provided below. 125 Ordinance No. 3025-2018 Page 2 of 10 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Amendment of Section 14.20.330 of the Kenai Municipal Code: That Kenai Municipal Code, Section 4.20.330 – Standards for Commercial Marijuana Establishments is hereby amended as follows: 14.20.330 Standards for Commercial Marijuana Establishments. The purpose of this section is to establish general standards for commercial marijuana establishments. (a) Commercial marijuana establishments may be permitted or allowed with a conditional use permit under KMC 14.20.150, as provided in the City of Kenai’s land use table, KMC 14.22.010, and the provisions of this section. (b) Applicants applying for a conditional use permit must include an area map drawn to scale indicating all land uses on other properties within a five hundred (500) foot proximity of the lot upon which the applicant is seeking a conditional use permit. This shall be in addition to the conditional use permit submission requirements in KMC 14.20.150. (c) A public hearing shall be scheduled before the Planning and Zoning Commission to review the conditional use permit application once it has been deemed complete. The public hearing shall be scheduled in accordance with the requirements in KMC 14.20.280, except that notification shall be mailed to all real property owners on record on the Borough Assessor’s records within a five hundred (500) foot periphery of the parcel affected by the proposed action. (d) The preparation, packaging, manufacturing, processing, and storing of all marijuana, marijuana concentrate or marijuana products must be conducted within a fully enclosed, secure indoor facility. The growing and cultivating of marijuana must be conducted within a fully-enclosed, secure indoor facility or greenhouse with view-obscuring rigid walls, a roof and doors, unless a non-rigid greenhouse, or other structure, is specifically approved, in which case the cultivation must be enclosed by a sight obscuring wall or fence at least six (6) feet high. (e) All commercial marijuana establishments shall not emit an odor that is detectable by the public from outside the commercial marijuana establishment. (f) No portion of a parcel upon which any commercial marijuana establishment is located shall be permitted within the following buffer distances: (1) One thousand (1,000) feet of any primary and secondary schools (K-12) and five hundred (500) feet of any vocational programs, post-secondary schools, including but not limited to trade, technical, or vocational schools, colleges and universities, recreation or youth centers, correctional facilities, churches, and state licensed substance abuse treatment facilities providing substance abuse treatment; and (2) Buffer distances shall be measured as the closest distance from the perimeter of a stand-alone commercial marijuana establishment structure to the outer boundaries of the school, recreation or youth center, or the main public entrance of a church, correctional facility, or a substance abuse treatment facility providing substance abuse treatment. If the commercial marijuana establishment occupies only a portion of a structure, buffer distances are measured as the closest distance from the perimeter of the closest interior wall segregating the commercial marijuana establishment from other uses, or available uses in the structure, or an exterior wall if closer, to the outer boundaries of the school, recreation or youth center, or the main public entrance of a 126 Ordinance No. 3025-2018 Page 3 of 10 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] church or correctional facility, or a substance abuse treatment facility providing substance abuse treatment. (g) As provided in the Land Use Table, a person or licensee may apply for a conditional use permit to allow for a marijuana cultivation facility, standard, on lots of forty thousand (40,000) square feet or greater in size, and a marijuana cultivation facility, limited, on any size lot. (h) A marijuana cultivation facility, standard, or a marijuana cultivation facility, limited, shall only be allowed on a lot which has an existing structure consistent with a principal permitted use. (i) A marijuana cultivation facility located in an accessory building shall be subject to the setback provisions in KMC 14.24.020, development requirements table. A person or licensee seeking relief from the provisions in the development requirements table may apply for a variance subject to the provisions of KMC 14.20.180. Section 2. Amendment of Section 14.22.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 4.22.010 – Land Use Table is hereby amended as follows: 14.22.010 Land use table. LAND USE TABLE KEY: P = Principal Permitted Use NOTE: Reference footnotes on following pages for additional restrictions C = Conditional Use S = Secondary Use N = Not Permitted ZONING DISTRICTS LAND USES ALI C RR RR- 1 RS RS- 1 RS- 2 RU CC CG IL IH ED R TSH LC CMU RESIDENTIAL One-Family Dwelling N C18 P P P P P P P21 S1 S2 S2 C22 P P P S1/C21 Two-, Three- Family Dwelling N C18 P P P P P P P21 S1 C C C22 P P P S1/C21 Four-Family Dwelling N C18 P C3, 29 P N N P P21 S1 C C C22 N P C S1/C21 Five-, Six-Family Dwelling N C18 C3 N P N N P P21 S1 C C N N P C S1/C21 Seven- or More Family Dwelling N C18 C3 N C3 N N P P21 S1 C C N N P C S1/C21 Mobile Home Parks6 N N C N C C C C C C C C N C N N C Planned Unit Residential Development7 N C18 C C29 C C C C C C C C N C C C C 127 Ordinance No. 3025-2018 Page 4 of 10 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Townhouses4 N C18 C3 C3, 29 C3 C3 C3 C3 C C C C C22 C C C C Accessory Building on Parcel Without Main Building or Use (See KMC 14.20.200) N N C C C C C C N N N N N N C N N COMMERCIAL Airport Compatible Uses P N N N N N N N C C C C N N N C C Automotive Sales C N C N N N N C P P P P N N N N P Automotive Service Stations C N C N N N N C P P P P N C N N P Banks C N C N C N N C P P P C N C C C P Business/Consu mer Services C N C N C N N C P P P C N C C C P Commercial Recreation N N C N C N N C P P C C N P C C P Guide Service C N C N C N N C P P P P N P P C P Hotels/Motels C N C N C N N C P P P C N C P C P Lodge C N C N C N N C P P P C N P P C P Marijuana Cultivation Facility, Limited 30 N N C C C C C C N C C C N N N C N Marijuana Cultivation Facility, Standard 30 N N [C] N [C] N [C] N [C] N [C] N [C] N N C C C N N N C N Marijuana Product Manufacturing Facility 30 N N N N N N N N N C C C N N N N N Marijuana Testing Facility 30 N N N N N N N N C C P P N N N C C Professional Offices C N C C29 C N N P P P P P N C P P P Restaurants C N C N C N N C P P P C N C C C P Retail Business C N26 C N C N N C P P P P S24 S24 C C P Retail Marijuana Store 30 N N N N N N N N N C C C N N N C C 128 Ordinance No. 3025-2018 Page 5 of 10 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Theaters N N C N C N N C P P C C N P C C P Wholesale Business C N C N C N N C C P P P N S24 C C N INDUSTRIAL Airports C P20 C N C N N C C C C C N C N N C Necessary Aviation Facilities P P C C C C C C P P P P C P C P P Automotive Repair P N C N C N N C P P P P N N N N P Gas Manufacturer/Sto rage C9 N N N C N N N N N C9 C9 N N N N N Manufacturing/F abricating/Assem bly P N C N C N N C C P P P N C C N C Mini-Storage Facility C N C N C N N C C P P P N N N C C Storage Yard C N C N C N N C C P P P N N N N C Warehouses C N C N C N N C N P P P N C N N N PUBLIC/ INSTITUTIONAL Assisted Living N C C C C C C C C C C C C C C C C Churches* N C P10 P10 P10 P10 P10 P10 P10 P10 C C P P10 P P P Clinics N C C N C C C C P P P C C C C P P Colleges* N C C C29 C C C C P P C C P C C C P Elementary Schools* N C C C29 C C C C P P C C P C C C P Governmental Buildings P C C C29 C C C C P P P C P C C P P High Schools* N C C C29 C C C C P P C C P C C C P Hospitals* N C C N C C C C P P P C C C C C P Libraries* N C C C29 C C C C12 P P P C P C P C P Museums C C C C29 C C C C P P P C P C P C P Parks and Recreation N P C C29 C C C C P P P P P P P C P MISCELLANEO US 129 Ordinance No. 3025-2018 Page 6 of 10 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Animal Boarding/Comm ercial Kennel13 C C C N C C N N C C C C N C N C C Assemblies15 (Large: Circuses, Fairs, etc.) P C C N C C C C P15 P15 P15 P15 P15 C P N P15 Bed and Breakfasts N C C C C C C C C C C C N P C C P Cabin Rentals N C C N C N N N P P P C N P P C P Cemeteries P C C N C N N N N C C C N C C N N Communications Towers & Antenna(s), Radio/TV Transmitters/ Cell Sites** 28 C P C N C C C C P P P P P C C C C Crematories/Fun eral Homes N N C N C N N C C C C C N C C C C Day Care Centers12 N C C C29 C C C C P P P C C C C P P Dormitories/Boar ding Houses N C C N C C C P P21 S C P P23 C C C P Essential Services P P P P P P P P P P P P P P P P P Farming/General Agriculture*** N P P N N N N N N N N P N P N N N Fraternal Organizations/ Private Clubs/Social Halls and Union Halls N N C N C C C C P P P C N C P C P Greenhouses/Tr ee Nurseries13 N C C N C C C C P P P C N C C C P Gunsmithing, Taxidermy N N C N C C C C P P P P N C P P P Nursing, Convalescent or Rest Homes N N C N C C C C P P C C C C C C P Parking, Public Lots12 C C C N C C C C C C C C C C C C C Personal Services25 N C C N C C C C P P P P C C P P/C2 7 P 130 Ordinance No. 3025-2018 Page 7 of 10 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Recreational Vehicle Parks N C C N C N N C C C C C N C C N C Subsurface Extraction of Natural Resources16 C C C C C C C C C C C C N C N N N Surface Extraction of Natural Resources17 C C C N C N N C N C C C N C N N N * See 42 USCA Sec. 2000cc (Religious Land Use and Institutionalized Persons Act of 2000) ** See 42 Telecommunications Act of 1996, Sec. 704(a) *** See, however, the limitations imposed under KMC 3.10.070 Footnotes: 1 Allowed as a secondary use except on the ground floor of the part of the building fronting on collector streets and major highways. Commercial or industrial which falls under the landscaping/site plans requirements of KMC 14.25 shall include any secondary uses in the landscaping and site plans. 2 One (1) single-family residence per parcel, which is part of the main building. 3 Allowed as a conditional use, subject to satisfying the following conditions: a The usable area per dwelling unit shall be the same as that required for dwelling units in the RS zone; b The site square footage in area must be approved by the Commission; c Yards around the site, off-street parking, and other development requirements shall be the same as for principal uses in the RR zone; d Water and sewer facilities shall meet the requirements of all applicable health regulations; e The proposed dwelling group will constitute a residential area of sustained desirability and stability, will be in harmony with the character of the surrounding neighborhood, and will not adversely affect surrounding property values; f The buildings shall be used only for residential purposes and customary accessory uses, such as garages, storage spaces, and recreational and community activities; g There shall be provided, as part of the proposed development, adequate recreation areas to serve the needs of the anticipated population; h The development shall not produce a volume of traffic in excess of the capacity for which the access streets are designed; i The property adjacent to the proposed dwelling group will not be adversely affected. 4 See “Townhouses” section. 5 See “Mobile Homes” section. 131 Ordinance No. 3025-2018 Page 8 of 10 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 6 Allowed as a conditional use, subject to “Mobile Homes” section and provided that any mobile home park meets the minimum Federal Housing Authority requirements. 7 See “Planned Unit Residential Development” section. 8 Allowed as a conditional use, provided that the proposed location and the characteristics of the site will not destroy the residential character of the neighborhood. 9 Allowed as a conditional use, provided that all applicable safety and fire regulations are met. 10 Provided that no part of any building is located nearer than thirty (30) feet to any adjoining street or property line. 11 Allowed as a conditional use, provided that no part of any building is located nearer than thirty (30) feet to any adjoining street or property line and provided further that the proposed location and characteristics of the use will not adversely affect the commercial development of the zone. 12 Allowed as a conditional use, provided that the following conditions are met: a The proposed location of the use and the size and characteristic of the site will maximize its benefit to the public; b Exits and entrances and off-street parking for the use are located to prevent traffic hazards on public streets. 13 Allowed as a conditional use, provided that setbacks, buffer strips, and other provisions are adequate to assure that the use will not be a nuisance to surrounding properties. The Commission shall specify the conditions necessary to fulfill this requirement. Animal boarding and commercial kennels require a kennel license (see KMC Chapter 3.15). 14 Allowed as a conditional use, provided that no indication of said use is evident from the exterior of the mortuary. 15 Allowed, provided that the following conditions are met: a An uncleared buffer strip of at least thirty (30) feet shall be provided between said use and any adjoining property in a residential zone. b Exits and entrances and off-street parking for the use shall be located to prevent traffic hazards on the public streets. 16 See “Conditional Uses” section. 17 See “Conditional Use Permit for Surface Extraction of Natural Resources” section. 18 Conditional Use allowed only on privately held property: Not allowed on government lands. 19 Reserved. 20 The airport related uses allowed under this entry are aircraft approach and departure zones pursuant to KMC 14.20.070(a), except that for properties contained inside the airport perimeter fence or having access to aircraft movement areas, taxiways or parking aprons, FAA authorized uses are allowed. 21 Developments for use shall be the same as those listed in the “Development Requirements Table” for the RU/TSH zones. 132 Ordinance No. 3025-2018 Page 9 of 10 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 22 Allowed as a conditional use in conjunction with a permitted use in the ED zone: For example, housing for teachers or students for a school in the zone. 23 Allowed as an accessory use in conjunction with a permitted use in the ED zone: For example, a dormitory used to house students for a school or educational facility. 24 Retail businesses allowed as a secondary use in conjunction with the primary use (e.g., a gift shop or coffee shop within another business). 25 Art studios, barbers, beauticians, tattoo parlors, dressmakers, dry cleaners and self- service laundries, fitness centers, photographic studios, tailors, tanning salons and massage therapists. 26 Food services are allowed on a temporary or seasonal basis of not more than four (4) months per year. 27 Personal services not set forth in the below matrix are conditional uses. Limited Commercial Zone Personal Services- Permitted(P) Conditional Use(C) Art Studios X Barbers X Beauticians X Dressmakers X Dry Cleaners X Fitness Centers X Massage Therapist X Photographic Studios X Self-Service Laundries X Tailors X Tanning Salons X Tattoo Parlors X 28 Communications tower/antenna(s) allowed as a principal permitted (P) use if the applicable conditions set forth in KMC 14.20.255 are met or a conditional use (C) if the applicable conditions set forth in KMC 14.20.255 and 14.20.150 are met. 29 Use allowed only for those parcels that abut the Kenai Spur Highway: The access to any such parcel must be either from: (a) driveway access on the Kenai Spur Highway; or (b) driveway access from a dedicated right-of-way and that driveway access is not more than two hundred seventy-five (275) feet as measured from the constructed centerline of the Kenai Spur Highway to the center of the driveway access as shown on an as-built drawing/survey of the parcel. 133 Ordinance No. 3025-2018 Page 10 of 10 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 30 See Marijuana Regulations, KMC Section 14.20.230 – Home Occupations, KMC Section 14.20.320 – Definitions, KMC Section 14.20.330 – Standards for Commercial Marijuana Establishments. Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: June 6, 2018 Enacted: June 20, 2018 Effective: June 20, 2018 134 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: May 23, 2018 SUBJECT: Ordinance No. 3025-2018 – Prohibiting Standard Marijuana Cultivation Facilities in Residential Zones _____________________________________________________________________ Ordinance No. 3025 – 2018 would prohibit standard marijuana cultivation facilities in residential zones. On May 9, 2018, the Planning and Zoning Commission passed Resolution 2018-13 (attached to this memorandum), recommending Kenai Municipal Code (KMC) be amended to prohibit standard marijuana cultivation facilities in residential zones. This resolution was drafted as a result of a work session held by the Planning and Zoning Commission on March 28, 2018. Standard marijuana cultivation facilities contain areas greater than 500 square feet under cultivation. Under the land use table in KMC 14.22.010, standard marijuana cultivation facilities are a conditional use in rural, suburban, and urban residential zones. Ordinance 3025-2018 would amend the land use table to prohibit standard cultivation facilities in all rural residential (RR, RR- 1) zones, suburban residential (RS, RS-1, RS-2), and urban residential (RU) zones. Limited marijuana cultivation facilities with 500 square feet or less under cultivation would remain a conditional use in these residential zones. Standard marijuana cultivation facilities would remain conditional uses within the industrial zones (IL, IH), Limited Commercial Zone (LC), and General Commercial Zone (CG). The Planning and Zoning Commission passed Resolution 2018-13 after reviewing and implementing enacted regulations and conducting public hearings on conditional use permits for marijuana cultivation facilities. The Planning and Zoning Commission found that standard commercial cultivation may have an unjustifiable impact on residential neighborhoods given the potential business nature of a larger scale cultivation of 500 square feet or greater, including numerous employees and increased traffic that is not compatible with residential neighborhoods. Thank you for your consideration. 135 the dfy of. KENAI, ALASKA CITY OF KENAI PLANNING & ZONING COMMISSION RESOLUTION PZ2018-13 A RESOLUTION OF THE PLANNING AND ZONING COMMISSION RECOMMENDING TO THE COUNCIL OF THE CITY OF KENAI , ALASKA, TO AMEND KENAI MUNICIPAL CODE SECTIONS 14.20.330-Standards For Commercial Marijuana Establishments and 14.20 .010- Land Use Table to Prohibit Standard Marijuana Cultivation Facilities in Residential Zones. WHEREAS, on November 4, 2014, the voters of the State of Alaska passed Ballot Measure No. 2, An Act to Tax and Regulate the Production, Sale, and Use of Marijuana, codified as Alaska Statute 17.38; and, WHEREAS, Alaska Statute 17.38.210 states in part that "a local government may enact ordinances or regulations not in conflict with this chapter or with regulations enacted pursuant to this chapter, governing the time, place, manner and number of marijuana establishment operations"; and , WHEREAS, the City, as a home rule municipality, has the authority to provide responsible Zoning Regulations that protect the public peace, health, safety and welfare; and, WHEREAS, the City has enacted regulations of commercial marijuana establishments through its zoning code and land use table; and , WHEREAS, after numerous public hearings on conditional use permits for commercial marijuana establishments , further review and implementation of the recently enacted regulations and experience with the newly legalized industry, the Planning and Zoning Commission recommends certain amendments to the current regulations; and, WHEREAS, State Statute and Kenai Municipal Code recognize a difference between commercial marijuana cu ltivation 'standard' (over 500 square feet or greater) and limited (less than 500 square feet); and, WHEREAS, current City regulations allow both standard and limited commercial cultivation in residential zones through a conditional use permit as long as other zoning requirements are met; and , WHEREAS, the Planning and Zoning Commission finds that standard commercial cu ltivation may have an unjustifiable impact on residenti al neighborhoods g iven the potential business nature of a larger scale cultivation, including numerous employees and increased traffic that is not compatib le with residential neighborhoods; and, WHEREAS, the Planning and Zoning Commission recommends the Kenai Zoning Code and Land Use table be amended to prohibit standard marijuana cultivation facilities in residential zones as provided below. 136 Resolution No. 2018-13 Page 2 of 8 NOW, THEREFORE, BE IT RECOMMENDED TO THE COUNCIL OF THE CITY OF KENAI, ALASKA, THAT Section 1. That an Ordinance be enacted to amend Kenai Municipal Code sections 14.20 .330 and 14.22.010 as follows: A. 14.20.330 Standards for Commercial Marijuana Establishments. The purpose of this section is to establish general standards for commercial marijuana establishments. a) Commercial marijuana establishments may be permitted or allowed with a conditional use permit under KMC 14 .20.150, as provided in the City of Kenai's land use table, KMC 14.22 .010 , and the provisions of this section . b) Applicants applying for a conditional use permit must include an area map drawn to scale indicating all land uses on other properties within a five hundred (500) foot proximity of the lot upon which the applicant is seeking a conditional use permit. This shall be in addition to the conditional use permit submission requirements in KMC 14 .20.150. c) A public hearing shall be scheduled before the Planning and Zoning Commission to review the conditional use permit application once it has been deemed complete. The public hearing shall be scheduled in accordance with the requirements in KMC 14.20 .280 , except that notification shall be mailed to all real property owners on record on the Borough Assessor's records within a five hundred (500) foot periphery of the parcel affected by the proposed action. d) The preparation, packaging, manufacturing, processing, and storing of all marijuana , marijuana concentrate or marijuana products must be conducted within a fully enclosed, secure indoor facility. The growing and cultivating of marijuana must be conducted within a fully-enclosed, secure indoor facility or greenhouse with view-obscuring rigid walls, a roof and doors, unless a non-rigid greenhouse, or other structure, is specifically approved, in which case the cultivation must be enclosed by a sight obscuring wall or fence at least six 6) feet high . e) All commercial marijuana establishments shall not emit an odor that is detectable by the public from outside the commercial marijuana establishment. f) No portion of a parcel upon which any commercial marijuana establishment is located sha ll be permitted within the following buffer distances : 1) One thousand (1 ,000) feet of any primary and secondary schools (K-12) and five hundred (500) feet of any vocational programs , post-secondary schools , including but not limited to trade, technical, or vocational schools , colleges and universities, recreation or youth centers, correctional facilities, churches, and state licensed substance abuse treatment facilities providing substance abuse treatment; and 2) Buffer distances shall be measured as the closest distance from the perimeter of a stand-alone commercial marijuana establishment structure to the outer boundaries of the school, recreation or youth center, or the main public entrance of a church, correctional facility, or a substance abuse treatment facility providing substance abuse treatment. If the commercial marijuana establishment occupies only a portion of a structure , buffer distances are measured as the closest distance from the perimeter of the closest interior wall segregating the commercial marijuana establishment from other uses, or available uses in the structure, or an exterior wall if closer, to the outer boundaries of the school, recreation or youth center, or the main public entrance of a church or correctional facility, or a substance abuse treatment facility providing substance abuse treatment. 137 Resolution No. 2018-13 Page 3 of 8 g) As provided in the Land Use Tab le, a person or licensee may apply for a conditional use permit to allow for a marijuana cultivation facility, standard, on lots of forty thousand ( 40,000) square feet or greater in size, and a marijuana cultivation facility, limited, on any size lot. h) A marijuana cultivation facility, standard, or a marijuana cultivation facility, limited, shall only be allowed on a lot which has an existing structure consistent with a principal permitted use. i) A marijuana cultivation facility located in an accessory building shall be subject to the setback provisions in KMC 14.24.020 , development requirements table. A person or licensee seeking relief from the provisions in the development requirements table may apply for a variance subject to the provisions of KMC 14.20 .180. B. 14.22.010 Land use table. KEY: P = Principal Permitted Use C = Conditional Use S =Secondary Use N =Not Permitted ONING DISTRICTS AND USES ESIDENTIAL ne-Family Dwelling rwo-, Three-Family Dwelling ou r-Family Dwelling ive-, Six-Family Dwelling 3even-or More Family Dwelling v'lobile Home Parks6 lanned Unit Residential evelopment7 ro wnhouses4 ccessory Building on Parcel IVithout Main Building or Use (See MC 14.20.200 ) oMMERCIAL irport Compatible Uses utomotive Sales utomotive Service Stations 3anks 3usiness/Consumer Services ALI c N c 1s N c1s N c 1s N c1s N c1s N N N c1 s N c 1s N N p N c N c N c N c N RR p p p C3 C3 c c C3 c N c c c c LAND USE TABLE RR- RS 1 p p p p C3· p 29 N p N C3 N c c 29 c C3, C3 29 c c N N N N N N N c N c NOTE: Reference footnotes on following pages for additional restrictions RS-RS- RU cc CG IL12 p p p p 21 s1 s2 p p p p 21 s1 c N N p p21 s1 c N N p p21 s1 c N N p p21 s1 c c c c c c c c c c c c c c 3 C3 c 3 c c c c c c N N N N N N c c c N N c p p p N N c p p p N N c p p p N N c p p p IH ED R TSH s2 c22 p p c c22 p p c c22 N p c N N p c N N p c N c N c N c c c c22 c c N N N c c N N N p N N N p N c N c N c c c N c c LC p p c c c N c c N c N N c c CMU s 11c2 s 11c2 s 11c2 s 11c2 s 11c2 c c c N c p p p p138 Resolution No. 2018-13 Page 4 of 8 ommercial Recreation 3uide Service fotels/Motels odge v1arijuana Cultivation Facility, imited 30 arijuana Cultivation Facility , tandard 30 v1arijuana Product Manufacturing acility 30 v1arijuana Testing Facility 30 rofessional Offices estaurants etail Business etail Marijuana Store 30 rheaters l\fholesale Business NDUSTRIAL irports ecessary Aviation Facilities utomotive Repair 3as Manufacturer/Storage v1anufacturing/Fabricating/Assembly v1ini-Storage Facility torage Yard Na rehouses UBLIC/INSTITUTIONAL ssisted Living hurches* linics alleges* lementary Schools* 3overnmental Buildings igh Schools* ospitals* ibraries* v1useums N N c c N c c N c c N c N N c N N [C]N N N N N N N c N c c N c c N26 c N N N N N c c N c c p 20 c p p c p N c c g N N p N c c N c c N c c N c N c c N c p 10 N c c N c c N c c p c c N c c N c c N c c c c c N c N N c p N c N N c p N c N N c p N c N N c p c c c c c N C]N [C]N [C]N [C]~ [C]N N N N N N N N N N N N N c c2g c N N p p N c N N c p N c N N c p N N N N N N N c N N c p N c N N c c N c N N c c c c c c c p N c N N c p N c N N N N N c N N c c N c N N c c N c N N c c N c N N c N c c c c c c p 10 p10 p10 p1 0 p1 0 p 10 N c c c c p c2g c c c c p c2g c c c c p c2g c c c c p c2g c c c c p N c c c c p c 2g c c c c1 2 p c2 g c c c c p p c c N p c c p p p p N p p c p p p c N c p c p p p c N p p c p c c c N N N c N c c c N N N c N c c c N N N N N c p p N N N c c p p p N c p p p p p c N c c c p p p p S24 S24 c c p c c c N N N c c p c c N p c c p p p p N S24 c c N c c c N c N N c p p p c p c p p p p p N N N N p N cg c g N N N N N p p p N c c N c p p p N N N c c p p p N N N N c p p p N c N N N c c c c c c c c p10 c c p p1 0 p p p p p c c c c p p p c c p c c c p p c c p c c c p p p c p c c p p p c c p c c c p p p c c c c c p p p c p c p c p p p c p c p c p139 Resolution No. 2018-13 Page 5 of 8 arks and Recreation SCELLANEOUS nimal Boa rd ing/Commercia I ennel 13 ssemblies 15 (Large: Circuses , airs, etc.) 3ed and Breakfasts abin Rentals emeteries ommunications Towers & ntenna(s), RadiorrV Transmitters/ ell Sites** 28 remato ries /Fune ral Homes ay Care Centers 12 ormitories/Boarding Houses ssential Services arming/General Agriculture*** raternal Organizations/ Private lubs/Social Halls and Union Halls 3reenhousesrrree Nurseries13 3unsmithing , Taxidermy forsing , Convalescent or Rest omes arking , Public Lots12 Jersonal Services25 e crea tional Vehicle Parks ubsurface Extraction of Natural esources 16 urface Extraction of Natural esources 17 N p c c 29 c c c c c N c c p c c N c c N c c c c c N c c N c N p c c N c N c p c N c c N N c N c N N c c c29 c c N c c N c c p p p p p p N p p N N N N N c N c c N c c N c c N N c N c c N N c N c c c c c N c c N c c N c c N c c N c N c c c c c c c c c N c N c c p p p p p p p N N c c c c N c N c c p 15 p 15 p 15 p 15 p 15 c p c c c c c c N p c N N p p p c N p p N N N c c c N c c c c p p p p p c c N c c c c c N c c c c p p p c c c c c p p 21 s c p p 23 c c p p p p p p p p p N N N N N p N p N c c p p p c N c p c c p p p c N c c c c p p p p N c p c c p p c c c c c c c c c c c c c c c c p p p p c c p N c c c c c N c c c c c c c c N c N N c N c c c N c N See 42 USCA Sec. 2000cc (Religious Land Use and lnst1tut1onallzed Person s Act of 2000) See 42 Telecommunications Act of 1996, Sec. 704(a) See, however, the limitations imposed under KMC 3.10 .070 Footnotes: 1 Allowed as a secondary use except on the ground floor of the part of the build ing fronting on collector streets and major highways. Commercial or industrial which falls under the landscaping/site plans requirements of KMC 14.25 shall include any secondary uses in the landscaping and site plans. 2 One (1) single-family residence per parcel , which is part of the main building . 3 Allowed as a conditional use, subject to satisfying the following conditions: a The usable area per dwelling unit shall be the same as that required for dwelling units in the RS zone; c p c c N p 15 c p c p N N c c c c p p c p p p N N c p c p p p c p c c P/c21 p N c N N N N 140 Resolution No. 2018-13 Page 6 of 8 b The site square footage in area must be approved by the Commission; c Yards around the site, off-street parking, and other development requ irements shall be the same as for principal uses in the RR zone ; d Water and sewer facilities shall meet the requirements of all applicable health regulations; e The proposed dwelling group will constitute a residential area of sustained desirability and stability, will be in harmony with the character of the surrounding ne ighborhood, and will not adversely affect surrounding property values; f The buildings shall be used only for residential purposes and customary accessory uses, such as garages, storage spaces, and recreational and community activities ; g There shall be provided , as part of the proposed development, adequate recreation areas to serve the needs of the anticipated population; h The development shall not produce a volume of traffic in excess of the capacity for which the access streets are designed ; i The property adjacent to the proposed dwelling group will not be adverse ly affected . 4 See "Townhouses" section. 5 See "Mobile Homes" section . 6 Allowed as a conditional use , subject to "Mobile Homes" section and provided that any mobile home park meets the minimum Federal Housing Authority requirements . 7 See "Planned Unit Residential Development" section . 8 Allowed as a conditional use, provided that the proposed location and the characteristics of the site will not destroy the residential character of the neighborhood. 9 Allowed as a conditional use, provided that all applicable safety and fire regulations are met. 10 Provided that no part of any building is located nearer than thirty (30) feet to any adjoining street or property line. 11 Allowed as a conditional use, provided that no part of any building is located nearer tha n thirty (30) feet to any adjoining street or property line and provided further that the proposed location and characteristics of the use will not adversely affect the commercial development of the zone . 12 Allowed as a conditional use, provided that the following cond itions are met: a The proposed location of the use and the size and characteristic of the site will maximize its benefit to the public; b Exits and entrances and off-street parking for the use are located to prevent traffic hazards on public streets . 13 Allowed as a conditional use , provided that setbacks, buffer strips, and other provisions are adequate to assure that the use will not be a nuisance to surrounding properties. The Commission shall specify the conditions necessary to fulfill this requirement. Animal boarding and commercial kennels require a kennel license (see KMC Chapter 3 .15 ). 14 Allowed as a conditional use , provided that no indication of said use is evident from the exterior of the mortuary. 15 Allowed, provided that the following conditions are met: a An uncleared buffer strip of at least thirty (30) feet shall be provided between sa id use and any adjoining property in a residential zone . b Exits and entrances and off-street parking for the use shall be located to p revent traffic hazards on the public streets. 16 See "Conditional Uses" section . 17 See "Conditional Use Permit for Surface Extraction of Natural Resources" sect ion. 18 Conditional Use allowed only on privately held property: Not allowed on government lands. 19 Reserved. 141 Resolution No. 2018-13 Page 7 of 8 20 The airport related uses allowed under this entry are aircraft approach and departure zones pursuant to KMC 14 .20 .0?0(a), except that for properties contained inside the airport perimeter fence or having access to aircraft movement areas , taxiways or parking aprons, FAA authorized uses are allowed . 21 Developments for use shall be the same as those listed in the "Development Requirements Table" for the RU/TSH zones. 22 Allowed as a conditional use in conjunction with a permitted use in the ED zone: For example, housing for teachers or students for a school in the zone. 23 Allowed as an accessory use in conjunction with a permitted use in the ED zone: For example, a dormitory used to house students for a school or educational facility. 24 Retail businesses allowed as a secondary use in conjunction with the primary use (e .g., a gift shop or coffee shop within another business). 25 Art studios , barbers, beauticians , tattoo parlors , dressmakers, dry cleaners and self- service laundries, fitness centers, photographic studios , tailors , tanning salons and massage therapists . 26 Food services are allowed on a temporary or seasonal basis of not more than four (4) months per year. 27 Personal services not set forth in the below matrix are conditional uses. Limited Commercial Zone Personal Services-Permitted(P) Conditional Use(C) Art Studios x Barbers x Beauticians x Dressmakers x Dry Cleaners x Fitness Centers x Massage Therapist x Photographic Studios x Self-Service Laundries x Tailors x Tanning Salons x Tattoo Parlors x 28 Communications tower/antenna(s) allowed as a principal permitted (P) use if the applicable conditions set forth in KMC 14 .20 .255 are met or a conditional use (C) if the applicable conditions set forth in KMC 14.20 .255 and 14.20.150 are met. 29 Use allowed only for those parcels that abut the Kenai Spur Highway: The access to any such parcel must be either from: (a) driveway access on the Kenai Spur Highway; or b) driveway access from a dedicated right-of-way and that driveway access is not more than two hundred seventy-five (275) feet as measured from the constructed centerline of the Kenai Spur Highway to the center of the driveway access as shown on an as-built drawing /survey of the parcel. 30 See Marijuana Regulations, KMC Section 14.20 .230 -Home Occupations, KMC Section 14 .20 .320 -Definitions, KMC Section 14 .20 .330 -Standards for Commercial Marijuana Establishments . 142 Resolution No . 2018-13 Page 8 of 8 Section 2 . That a copy of this Resolution be forwarded to the City Council of Ke nai upon passage . PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA this9"dayofMay,2018. \ ~r-ruJ)tk JeF , CHAIRPERSON ATTEST: 143 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3026-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DETERMINING THAT REAL PROPERTY DESCRIBED AS LOT SIX (6) A, BLOCK ONE (1), GUSTY SUBDIVISION, ACCORDING TO PLAT 86-76, CITY-OWNED AIRPORT LAND LOCATED OUTSIDE THE AIRPORT RESERVE, IS NOT NEEDED FOR A PUBLIC PURPOSE AND AUTHORIZING THE SALE OF THE PROPERTY TO PINGO PROPERTIES, INC. AND GEOFFREY M. GRAVES. WHEREAS, the City of Kenai received a quitclaim deed from the Federal Aviation Administration (FAA) on December 1, 1963, to nearly 2,000 acres of land subject to certain restrictions, including that no property shall be used, leased, sold salvaged, or disposed of for reasons other than for airport purposes; and, WHEREAS, on May 11, 2018, the FAA executed a Deed of Release, for an area of land subject to the Quitclaim Deed allowing for the lease, sale, or disposal of Lot 6A, Block 1, Gusty Subdivision, according to Plat 86-76, for other than airport purposes; and, WHEREAS, the City has received a request to purchase Lot 6A, Block 1, Gusty Subdivision, according to Plat 86-76 (the Property) from the current Lessee; and, WHEREAS, KMC 21.15.010 – Airport Land Outside of the Airport Reserve, provides that the City may sell land outside the Airport Reserve when in the judgement of the City Council, such lands are not required by the City for a public purpose; and, WHEREAS, the Property is leased to Pingo Properties, Inc. and Geoffrey M. Graves and developed for private commercial use and is not needed for a public purpose; and, WHEREAS, Resolution No. 2018-12 amended the City’s Policy for sale of specific Airport Land Lots and is property is one of the properties addressed in the policy; and, WHEREAS, the sale of this property is in the best interest of the City and Airport and encourages new development and/or improvements to the property; and, WHEREAS, KMC 21.15.180 – Sale, allows for a negotiated sale at not less than fair market value. 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 Lot 6A, Block 1, Gusty Subdivision, according to Plat 86-76 (the Property). 144 Ordinance No. 3026-2018 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Section 2. Public Purpose and Best Interest Findings: That the Property is not needed for future public municipal or airport purposes. Under the Airport Layout Plan, the Property is designated for non-aviation commercial or light-industrial uses. The sale of the Property is in the best interests of the City and Airport, as it serves a purpose of continuing commercial growth and investment in the City. Section 3. Authorization of Sale: That the Kenai City Council hereby authorizes the City Manager to sell the City-owned lands described as Lot 6A, Block1, Gusty Subdivision, according to Plat 86-76, under the procedures and terms established for the sale of airport lands outside of the Airport Reserve, as set forth in KMC 21.15.180 et seq. and subject to the following additional essential terms and conditions of sale under the Policy for Sale of Specific Airport Leased Lands approved by City of Kenai Resolution No. 2018-12: (a) The sale will be made through a negotiated sale to Pingo Properties, Inc. and Geoffrey M. Graves for a sum not less than the fair market value of the land excluding lessee-constructed improvements as determined by an appraisal and a minimum new investment in the construction of new permanent improvements on the premises equal to 25% of the fair market value of the land within three (3) years of sale. Section 4. Title: That title shall be conveyed by quitclaim deed. Any instrument conveying title to the Property shall include the following restrictions, promises, and/or covenants: (b) that the City of Kenai reserves unto that the grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns, for the use and benefit of the public a right of flight for the passage of aircraft in the airspace above the surface of the Property, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for landing on or at and for taking off from or operating on Kenai Municipal Airport; and, (c) that the grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns to restrict the height of structures, objects of natural grown, and other obstructions on the Property to a height of not more than 242 feet above mean sea level; and, (d) that the grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns to prevent any use of the Property which would interfere with landing or taking off of aircraft at the Kenai Municipal Airport, or otherwise constitute an airport hazard; and, (e) that all covenants heretofore stated shall run with the land and shall inure to the benefit of, and be binding upon the heirs, executors, administrators, successors, transferees, and assigns of the parties to the contract for sale and conveyance. Section 5. Proceeds of Sale: That should a sale of the Property be finalized, all revenues from the sale shall be deposited in the Airport Land Sale Permanent Fund for use in the development, improvement, and operation of the Kenai Municipal Airport and as otherwise required in the Deed of Release dated May 11, 2018. 145 Ordinance No. 3026-2018 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Section 6. 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 20 day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: June 6, 2018 Enacted: June 20, 2018 Effective: July 30, 2018 146 'lftfl~ a1/t/i a Po.J't, Ct'tj a1/t/i a Fat~" 210 Fidalgo Ave , Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax : (907) 283-3014 www.kenai .city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Christine Cunningham, Assistant to City Manager/ HR Specialist May 29, 2018 Ordinance No. 3026-2018 -Determining Lot 6A, Block 1, Gusty Subdivision is Not Needed for a Public Purpose and Authorizing Sale of the Property The City has received a request to purchase the above City-owned leased land outside the Airport Reserve with substantial constructed leasehold improvements pursuant to the City's Policy for Sale of Specific Airport Leased Lands, approved by Resolution No. 2018-12. Pingo Properties , Inc. and Geoffrey M. Graves is the current lessee of Lot 6 , Block 1, Gusty Subdivision , which was entered into on April 4, 1985 for the purpose of operating a restaurant and office space . The purpose of the lease was amended to allow for its current use as a dry cleaning and laundry business and learning center in two separate buildings and doing business as Summit Drycleaners and Adventures in Learning . The 55-year lease term expires on June 30, 2039 and is in good standing . On May 11, 2018 , the Federal Aviation Administration (FAA), released the property for sale for other than airport purposes, allowing the property to be sold at fair market value. All revenues from the sale would be deposited in the Airport Land Sale Permanent Fund for use in the development, improvement, and operation of the Kenai Municipal Airport as required by the Deed of Release. The City's Policy does not provide for the sale of any specific property, but only a method fo r such sale, subject to the Ordinances of the City of Kenai. The policy is in effect until July 6, 2021. Any specific sale must be separately approved by the City Council , which may approve or disapprove any such sale , in its sole discretion . Mr. Graves requests to pu rchase the property at its fair market value excluding lessee-constructed improvements as determ ined by an appraisal and a minimum 148 149 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3027-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE SALE OF REAL PROPERTY DESCRIBED AS LOT FOUR (4)A, BLOCK THREE (3), COOK INLET INDUSTRIAL AIR PARK SUBDIVISION, 2014 REPLAT, CITY-OWNED AIRPORT LAND LOCATED OUTSIDE THE AIRPORT RESERVE, TO SCHILLING RENTALS, A PARTNERSHIP OWNED BY DAVID AND MICHAEL SCHILLING. WHEREAS, the City of Kenai received a quitclaim deed from the Federal Aviation Administration (FAA) on December 1, 1963, to nearly 2,000 acres of land subject to certain restrictions, including that no property shall be used, leased, sold salvaged, or disposed of for reasons other than for airport purposes; and, WHEREAS, on August 20, 1970, the FAA executed a Deed of Release, for an area of land subject to the Quitclaim Deed allowing for the lease, sale, or disposal of Lot 4A, Block 3, Cook Inlet Industrial Air Park Subdivision, 2014 Replat, for other than airport purposes; and, WHEREAS, the City has received a request to purchase Lot 4A, Block 3, Cook Inlet Industrial Air Park Subdivision, 2014 Replat (the Property) from the current Lessee; and, WHEREAS, KMC 21.15.010 – Airport Land Outside of the Airport Reserve, provides that the City may sell land outside the Airport Reserve when in the judgement of the City Council, such lands are not required by the City for a public purpose; and, WHEREAS, City of Kenai Ordinance No. 2904-2016 determined that Lot 4A, Block 3, Cook Inlet Industrial Air Park Subdivision, 2014 Replat is not needed for a public purpose and authorized the sale for not less than 125% of fair market raw land appraisal; and, WHEREAS, City of Kenai Resolution No. 2018-12 approved an amendment to the City’s Policy for Sale of Specific Airport Leased Lands that provided alternatives to a sale approved by the City Council at 125% of fair market raw land appraisal; and, WHEREAS, the request to purchase Lot 4A, Block 3, Cook Inlet Industrial Air Park Subdivision, 2014 Replat meets the sale conditions of the amended policy; and, WHEREAS, sale at fair market value complies with the policy based on stipulated development of improvements on the property. 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 Lot 4A, Block 3, Cook Inlet Industrial Air Park Subdivision, 2014 Replat (the Property). 150 Ordinance No. 3027-2018 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Section 2. Public Purpose and Best Interest Findings: That the Property is not needed for future public municipal or airport purposes. Under the Airport Layout Plan, the Property is designated for non-aviation commercial or light-industrial uses. The sale of the Property is in the best interests of the City and Airport, as it serves a purpose of continuing commercial growth and investment in the City. Section 3. Authorization of Sale: That the Kenai City Council hereby authorizes the City Manager to sell the City-owned lands described as Lot 4A, Block 3, Cook Inlet Industrial Air Park Subdivision, 2014 Replat, under the procedures and terms established for the sale of airport lands outside of the Airport Reserve, as set forth in KMC 21.15.180 et seq. and subject to the following additional essential terms and conditions of sale under the Policy for Sale of Specific Airport Leased Lands approved by City of Kenai Resolution No. 2018-12: (a) The sale will be made through a negotiated sale to Schilling Rentals, LLC for a sum not less than the fair market value of the land excluding lessee-constructed improvements as determined by an appraisal due to the value of the improvements being greater than four times the appraised fair market value of the land. Section 4. Title: That title shall be conveyed by quitclaim deed. Any instrument conveying title to the Property shall include the following restrictions, promises, and/or covenants: (b) that the City of Kenai reserves unto that the grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns, for the use and benefit of the public a right of flight for the passage of aircraft in the airspace above the surface of the Property, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for landing on or at and for taking off from or operating on Kenai Municipal Airport; and, (c) that the grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns to restrict the height of structures, objects of natural grown, and other obstructions on the Property to a height of not more than 242 feet above mean sea level; and, (d) that the grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns to prevent any use of the Property which would interfere with landing or taking off of aircraft at the Kenai Municipal Airport, or otherwise constitute an airport hazard; and, (e) that all covenants heretofore stated shall run with the land and shall inure to the benefit of, and be binding upon the heirs, executors, administrators, successors, transferees, and assigns of the parties to the contract for sale and conveyance. Section 5. Proceeds of Sale: That should a sale of the Property be finalized, all revenues from the sale shall be deposited in the Airport Land Sale Permanent Fund for use in the development, improvement, and operation of the Kenai Municipal Airport and as otherwise required in the Deed of Release dated August 20, 1970. 151 Ordinance No. 3027-2018 Page 2 of 3 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Section 6. 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 20 day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: June 6, 2018 Enacted: June 20, 2018 Effective: July 30, 2018 152 TRADING BAY RDGRANITE POINT ST K E N A I S P U R H W Y AT T L A W A Y B A R N A C L E W A YMAIN SREET LOOP RDF R O N TA G E R DCAVIAR STFILDAGO AVE BIDARKA STMAIN STREET LOOP RD BIDARKA STFBO RDNORTH WILLOW STGRANITE POINT CTSPUR VIE W DR WEST TERN AVESPR U C E W O O D R D FRONTAGE RDB RID G E A C C E S S R DKENAI SPUR HWYWALKER LNAIRPORT WAY BARON PARK LN325325 1080110801205210140149150209230220200112 48 1072052101401491551502091082147155150145140130125120105140 145 115125 1251351451551088010959155 200 205 21022110013512511011510800335335 215215105105225200225200 10819120 10819120 230 220 211 210212 220227230260202345355365 630 971067110733106721070410639 10735345355365630 112 48 112 16 1051013303 2 5 335105100106110215115 125130135145140214 2102002052202152602555 0 6 600610 111201115211184 305170126 125 127128 340 332 170 302101991048010576145150135130155305170145150135130155110125115100105101330325335105100106110215115125130135145140214210200205220 2152602555 0 6 600610 111201115211184 145120 - 130230220200210210110 10767416620 205 213 200 1402051097610821155150145140130120105100140 145 115125 1251351451551088010959155 200 210221100163135125110115230 210 210 211 210212 220227230260202 205 213 200 14020510976145120 - 1304124151073510 40 910419255104481054410447 10473105111064010543106071 2 9130 1 3 1 1 32 1 3 3114112330 320 260 250 285 256 264 310 300 240295230 280 270 260 285 256 264 330 320 340 332 1 34129 193 971067110733106721070410639 412415193 25510448108 10767416310 300 240295230 280 270245220235245220235 105441044710479 10489 1051110640105431057510607126 125 127128 1 2 9130 1 3 1 1 32 1 3 3 1 34129 170 30210199104801057610431 . 470 ' Date: 5/31/2018 The information depicted hereon is for graphic representationonly of the best available sources. The City of Kenai assumes no responsibility for errors on this map. 1 inch e quals 461 feet Lot 4A, Block 3Cook InletIndustrial Air Park Subdivision,2014 Replat 153 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Christine Cunningham, Assistant to City Manager/ HR Specialist DATE: May 29, 2018 SUBJECT: Ordinance No. 3027-2018 – Authorizing the Sale of Lot 4A, Block 3, Cook Inlet Industrial Air Park Subdivision, 2014 Replat ______________________________________________________________________ The City has received a request to purchase the above City-owned leased land outside the Airport Reserve with substantial constructed leasehold improvements pursuant to the City’s Policy for Sale of Specific Airport Leased Lands, approved by Resolution No. 2018-12. Shilling Rentals is the current lessee of Lot 4A, Block 3, Cook Inlet Industrial Air Park Subdivision, which was entered into on March 1, 1967 for purposes as provided in the City of Kenai Zoning Code. The current use of the lot is for a medical office and clinic building and includes substantial recent improvements to the building made by the Lessee. The 55-year lease term expires on June 30, 2022 and is in good standing. On August 20, 1970, the Federal Aviation Administration (FAA), released the property for sale for other than airport purposes, allowing the property to be sold at fair market value. All revenues from the sale would be deposited in the Airport Land Sale Permanent Fund for use in the development, improvement, and operation of the Kenai Municipal Airport as required by the Deed of Release. The City’s Policy does not provide for the sale of any specific property, but only a method for such sale, subject to the Ordinances of the City of Kenai. The policy is in effect until July 6, 2021. Any specific sale must be separately approved by the City Council, which may approve or disapprove any such sale, in its sole discretion. Schilling Rentals requests to purchase the property at its fair market value excluding lessee-constructed improvements as determined by an appraisal and provided the Kenai Peninsula Borough Assessment Report showing the value of Lessee- 154 Page 2 of 2 Ordinance No. 3027-2018 constructed improvements totaling $1,746,300 were likely to be greater than four times the appraised Fair Market Value of the land. The lessee submitted a good-faith deposit and the City ordered an appraisal to be performed on the property as-if vacant. The fair market value of the property was determined to be $300,000 by an appraisal performed by Reliant, Advisory Services, LLC on April 25, 2018. Based on the amount of the appraisal, Schilling Rentals meets the requirement that the value of improvements are greater than four times the appraised Fair Market Value of the land. If the City Council approves the sale, City Administration may proceed with a sale. Thank you for your consideration. Attachment cc: Schilling Rentals 155 New Text Bolded; [DELETED TEXT BRACKETED] MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Paul Ostrander, City Manager DATE: May 31, 2018 SUBJECT: Ordinance 3027-2018 – Sale to Schilling Rentals – Amendment Memo ______________________________________________________________________ In the letter received May 7, 2018 from Schilling Rentals, requesting to purchase Lot 4A Block 3 Cook Inlet Industrial Air Park Subdivision, 2014 Replat, the applicant requests two specific conditions of the sale. Neither condition was contemplated or supported by the Administration, therefore, the conditions were not included in Ordinance 3027-2018. However, Administration did commit to the applicant that an amendment memo would be drafted that would allow a City Council member to move one or both of the conditions by motion at the June 6, 2018 City Council meeting. The first amendment would require that the City pay for the appraisal of the property that was required to establish the current fair market value of the land rather than the applicant. The amendment would require an additional Section be added to the Ordinance and the current Section 6 be renumbered to Section 7 as follows: Section 6. Appraisal: That any costs associated with the appraisal of this property will be borne by the City of Kenai. Section [6]7. When the procedure for sale of properties was developed for properties included in Resolution 2018-12, amending the City’s Policy for Sale of Specific Airport Lands, appraisal costs were to be borne by the buyer. The City is not actively soliciting for the sale of these properties. If a lessee chooses to pursue the purchase of these properties, it is appropriate for them to pay for the appraisal, not the City. 156 Page 2 of 2 Ordinance 3027-2018 Amendment Memo New Text Bolded; [DELETED TEXT BRACKETED] The City sent an email to Schilling Rentals in response to its inquiry to purchase the property on February 24, 2018, which requested a good faith deposit of $2400 “….to cover the cost of a fair market value appraisal of the land….”. Schilling Rentals subsequently provided a letter to the City in response, stating: “Thank you for your 3/12/18 email (City of Kenai Resolutions No. 2018-12). Please accept this letter as our interest in purchasing the land at 100 Trading Bay Road (Lot 4A CIIAP 2014 Replat). Enclosed, please find our good faith deposit of $2,400…” The City then contracted with Reliant Advisory Services, LLC to perform the appraisal for $1500. Only after the appraisal was completed did Schilling Rentals request that the appraisal be paid for by the City. The second amendment would allow Schilling Rentals to finance the purchase of the property at a rate below what is commercially available. This amendment would also require an additional Section be added to the Ordinance and the current Section 6 be renumbered to Section 7 as follows: Section 6. Financing: That the City will carry a deed of trust on the property for an amount not to exceed $177,000 for a term not to exceed 24 months from the recording date with an interest rate determined by Council to be 0.75% payable in interest only monthly installments. Section [6]7. If both amendments were moved by Council the second amendment would need to be numbered Section 7 and the current Section 6 would need to be renumbered to Section 8. The financial and economic analysis that justified the policy approved by Resolution 2018-12, did not consider financing of this nature. By providing financing at levels below what is commercially available, there is a significant financial loss to the Airport Permanent Fund particularly when selling a parcel that is currently under lease and generating monthly revenues to the Fund. If the sale of the property were financed as proposed by the buyer as opposed to a cash sale, the net revenue loss to the City over the course of the 24 months would be $18,167. It is a goal of the Administration that the policies and procedures of the City in regards to land sales and leasing be consistent, transparent, reasonable, and predictable. Processing all ten properties included in the policy approved by Resolution 2018-12 the same, without parcel specific special consideration is good public policy that will help achieve this goal. 157 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3028-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE 23.25.060 – OVERTIME, 23.30.050 – BUSINESS HOURS AND HOURS OF WORK, AND 23.40.020 – HOLIDAYS TO ELIMINATE THE SHIFT SCHEDULE FOR THE SEWER TREATMENT PLANT EMPLOYEES. WHEREAS, the Public Works Department (Department) recommends a change in sewer treatment plant staff work schedules to eliminate staffing 10 hours per day, 365 days per year; and, WHEREAS, a work schedule requiring regular attendance Monday thru Friday and limited hours on weekends for required testing will provide increased time when multiple sewer treatment plant staff members work simultaneously allowing completion of projects where safety protocols require multiple staff members; and, WHEREAS, overall expenditures of the Water and Sewer Special Revenue Fund will decrease by an estimated $16,360 in FY2019 as a result of the proposed change; and, WHEREAS, the Department believes the efficiencies gained by this schedule change are in the best interest of the Department, the sewer treatment plant staff, and the operations of the utility. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. 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)(Employees in the Classified Service (excluding public safety [SEWER TREATMENT PLANT] and temporary employees): 158 Ordinance No. 3028-2018 Page 2 of 5 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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) 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 and [,] 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, and 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 As required by the Fair fire protection activities Labor Standards Act Communications 40 hours [SEWER TREATMENT PLANT 40 HOURS] 159 Ordinance No. 3028-2018 Page 2 of 5 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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) 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 2. 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 Hours and Hours of 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., Police and Fire 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]c) 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. Section 3. Amendment of Section 23.40.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.40.020 – Holidays, is hereby amended as follows: 160 Ordinance No. 3028-2018 Page 2 of 5 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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) (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) (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. 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. 161 Ordinance No. 3028-2018 Page 2 of 5 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Section 5. 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 20 day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: June 6, 2018 Enacted: June 20, 2018 Effective: July 19, 2018 162 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Public Works Director DATE: May 30, 2018 SUBJECT: Ordinance No. 3028-2018 ______________________________________________________________________ The purpose of this memo is to request approval for a change in the sewer treatment plant staff work schedules to eliminate staffing 10 hours per day, 365 days per year. The Public Works Department believes a regular work schedule attendance of Monday through Friday, with limited weekend hours to complete required testing, will provide better coverage of the facility. Allowing the completion of various routine maintenance projects where safety protocols require multiple staff members. The schedule changes will result in an estimated decrease of $16,360.00 in overall expenditures from the Water & Sewer Fund. The Public Works Department believes the efficiencies gained by this schedule change, the increased benefit to the safe operations of the facility with multiple staff present throughout the day, is in the best interest of the City. Thank you for your consideration. 163 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3029-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING APPROPRIATIONS IN THE GENERAL AND AIRPORT LAND SALES PERMANENT FUNDS TO TRANSFER EARNINGS IN EXCESS OF BUDGETED AMOUNTS TO THE CITY’S GENERAL AND AIRPORT SPECIAL REVENUE FUND. WHEREAS, Article 5, Section 5-11 of the City’s Charter, requires the proceeds from the Sale of all City owned, non-trust lands be deposited in a separate fund, the General Land Sale Permanent Fund, and allows for the investment earnings to be used for any lawful purpose but prohibits the expending of the proceeds from land sales; and, WHEREAS, section 7.30.010 of the Kenai Municipal Code (KMC) established a fund to account for the proceeds from sale of land deeded to the City by the US Government for benefit of the Kenai Municipal Airport, and allows for up to 5% of the five-year average ending balance to be used for any lawful airport purpose; and, WHEREAS, the General Land Sale Permanent Fund’s 2017-year ending balance of $3,231,213 was an increase of $235,180 from the December 31, 2016 balance. The allowable transfer to the General Fund for operations is limited to the lesser of 5% of the funds year ending balance, $161,561 or the years actual earning $384,982; and, WHEREAS, the FY2018 budgeted amount for the General Land Sale Permanent Fund was $150,993 meaning the actual will be $10,568 more than budgeted and increasing the transfer amount to the maximum amount is in the City’s best interest; and, WHEREAS, the allowable transfer amount of the Airport Land Sale Permanent Fund with a 2017- year ending balance of $25,751,927 is $1,210,348; and, WHEREAS, the FY2018 budgeted transfer amount was $1,191,711 meaning the actual will be $18,637 more than budgeted and increasing the transfer amount to the maximum amount is in the City and Kenai Municipal Airport’s best interest. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the estimated revenues and appropriations in the General Land Sale Permanent Fund be increased as follows: General Land Sale Permanent Fund: Increase Estimated Revenues – Investment Earnings $10,568 164 Ordinance No. 3029-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Increase Appropriations – Transfer to General Fund $10,568 Section 2. That the estimated revenues and appropriations in the Airport Land Sale Permanent Fund be increased as follows: Airport Land Sale Permanent Fund: Increase Estimated Revenues – Investment Earnings $18,637 Increase Appropriations – Transfer to Airport Special Revenue Fund $18,637 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: June 6, 2018 Enacted: June 20, 2018 Effective: June 20, 2018 165 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 24, 2018 SUBJECT: Ordinance 3029-2018 ______________________________________________________________________ The purpose of this memo is to recommend passage of Ordinance 3029-2018. This Ordinance will increase the authorized transfer amount from the General Land Sale (GLSPF) and Airport Land Sale Permanent Funds (ALSPF) to the City’s General Fund and Airport Funds for FY18. This increased amount is possible because earnings were higher than projected for calendar year 2017. GLSPF Pursuant to KMC 7.30.020 the annual transfer from the GLSPF shall be equal to the lesser of 5% of the funds value at December 31st or actual earnings for the calendar year The December 31, 2017 market value of the GLSPF was $3,231,213 and 2017 actual earnings were $384,982. The FY18 transfer amount calculation is as follows: December 31, 2017 Portfolio Value $3,231,213 5% of Portfolio Value $161,561 Calendar Year Earnings $384,982 FY18 Allowable Transfer $161,561 The FY18 budgeted transfer amount was $150,993. This Ordinance will increase the budgeted transfer amount to the maximum value of $161,561, an increase of $10,568. ALSPF 166 Page 2 of 2 Ordinance 3029-2018 Pursuant to KMC 7.30.020 (a) 4, 5% of the fund’s five-year average, December 31st ending balance may be transferred to the Airport for operations. The fund’s five-year average, December 31st ending balance was $24,206,962, allowing for a transfer of $1,210,348 as calculated below. Market Value Actual Actual Actual Actual Actual December 31, 2013 2014 2015 2016 2017 Portfolio Balance $24,095,421 $24,348,075 $23,149,202 $23,690,184 $ 25,751,927 5 Year Average FY 19 Budget $24,206,962 X 5% $ 1,210,348 The FY18 budgeted transfer amount was $1,191,711. This Ordinance will increase the budgeted transfer amount to the maximum value of $1,210,348, an increase of $18,637. Your support for Ordinance 3029-2018 is respectfully requested. 167 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3030-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATE REVENUES AND APPROPRIATIONS IN THE MUNICIPAL ROADWAY IMPROVEMENT CAPITAL PROJECT FUND BY THE PROCEED AMOUNT FROM 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 AS PREVIOUSLY APPROVED IN ORDINANCE 2957-2017 (SUBSTITUTE). WHEREAS, Ordinance 2957-2017 authorized the sale of 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 Kenai Recording District, Third Judicial District, State of Alaska, including all improvements thereon; and, WHEREAS, the City acquired said property utilizing grant fund from the State of Alaska Department of Commerce, Community and Economic Development (DCCED); and, WHEREAS, utilization of grant funds for the purchase of said property required the City to reimburse the granting agency the amount of any proceeds from the sale of such property at which time the proceeds would become available to the City to once again expend in accordance with the original grant agreement; and, WHEREAS, total proceeds paid to the City by the buyer, include interest on a short-term note from the date of sale to February 2017 were $838,899.89; and, WHEREAS, total expenses of the sale, including closing costs and real estate commissions were 27,641.25; and, WHEREAS, re-appropriation of the proceeds from sale will allow the City to expend the funds under the conditions of the DCCED Grant and is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the estimated revenues and appropriations in the General Land Sale Permanent Fund be increased as follows: Municipal Roadway Improvement Capital Project Fund: Increase Estimated Revenues – State Grant $838,899.89 Increase Appropriations – Construction $838,899.89 168 Ordinance No. 3030-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20 day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: June 6, 2018 Enacted: June 20, 2018 Effective: June 20, 2018 169 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: May 30, 2018 SUBJECT: Ordinance 3030-2018 ____________________________________________________________________________ The purpose of this memo is to recommend adoption of Ordinance 3030-2018 which will appropriate the proceed from the sale of City-owned land described as 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. The City purchased the property for construction of a new south beach access road utilizing grant fund from the State of Alaska Department of Commerce, Community and Economic Development (DCCED). Utilization of grant funds for the purchase of said property required the City to reimburse the granting agency the amount of any proceeds from the sale of such property at which time the proceeds would become available to the City to once again expend in accordance with the original grant agreement. Proceeds from the sale were $838,899.89 and reappropriation of the proceeds from sale will allow the City to expend the funds under the conditions of the DCCED Grant and is in the best interest of the City. You support for Ordinance 3030-2018 is respectfully requested. 170 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Council Member Molloy CITY OF KENAI ORDINANCE NO. 3031-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE 23.10.020-UNCLASSIFIED SERVICE, TO ALLOW GREATER FLEXIBILITY IN CERTAIN CITY BENEFITS RECEIVED BY THE CITY MANAGER, ATTORNEY, AND CLERK, FOR PURPOSES OF RECRUITMENT AND RETENTION. WHEREAS, Kenai Municipal Code 23.10.020 provides in relevant part, a list of certain benefits the City Manager, Clerk and Attorney receive; and, WHEREAS, similar to recently enacted Ordinance No. 3018-2018, allowing more flexibility in compensation for department heads, allowing greater flexibility in certain benefits received by the City Manager, Attorney and Clerk is intended to improve recruitment and retention in these positions; and, WHEREAS, the three positions each have a separate employment agreement negotiated with the City Council, which along with other employment terms is a preferred place for benefits listed in 23.10.020 regarding, leave, insurance, hours of work, holidays, per diem and others to be maintained; and, WHEREAS, allowing certain benefits to be negotiated between the Council and its employees is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. 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 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, 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, City Clerk and City Attorney. The City Manager, City Clerk and City Attorney 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 negotiated with the Council and incorporated into an employment agreement. [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, 171 Ordinance No. 3031-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] 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. Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this * day of *, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: June 6, 2018 Enacted: *, 2018 Effective: *, 2018 172 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council Members FROM: Council Member Molloy DATE: May 29, 2018 SUBJECT: Ordinance No. 3031, Amending Municipal Code 23.10.020 To Allow Greater Flexibility In Certain City Benefits Received By The City Manager, Attorney, And Clerk, For Purposes Of Recruitment And Retention ______________________________________________________________________ Ordinance No. 3031-2018 is intended to allow the Council more flexibility in employment agreement negotiations with the City Manager, City Clerk, and City Attorney, the purpose being to maintain and improve recruitment and retention for these positions. Additionally, negotiating terms other than compensation can result in costs savings to the City while providing other benefits to the Council’s direct employees, and avoid reliance on citations to code sections. Your consideration is appreciated. 173 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3032-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUE AND APPROPRIATIONS IN THE WATER & SEWER FUND FOR UTILITY COSTS IN EXCESS OF BUDGETED AMOUNTS. WHEREAS, the Public Works Department (Department) requests increasing the estimated revenue and appropriations in the Water & Sewer Fund for Utility costs at the Waste Water Treatment Plant (WWTP) in excess of the budgeted amounts; and, WHEREAS, changes to the daily operations at the plant to comply with ADEC requirements and to achieve regulatory compliance have resulted in increases to the use of utilities; and, WHEREAS, this past winters temperatures have required an extended heating season resulting in an increase to the use of utilities; and, WHEREAS, overall expenditures of the Water & Sewer Fund will be increased by an estimated $80,000 in FY2018 as a result of the proposed change. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the estimated revenues and appropriations be increased as follows: Water & Sewer Fund: Increase Estimated Revenues – Appropriation of Fund Balance $80,000 Increase Appropriations: Wastewater Treatment Plant - Utilities $80,000 Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption. 174 Ordinance No. 3032-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: June 6, 2018 Enacted: June 20, 2018 Effective: June 20, 2018 175 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Public Works Director DATE: May 30, 2018 SUBJECT: Ordinance No. 3032-2018 ______________________________________________________________________ The purpose of this memo is to request an increase to the estimated revenue and appropriations in the Water and Sewer Fund for the Waste Water Treatment Plant (WWTP) in the amount of $80,000.00 in excess of the originally budgeted amounts to cover additional utility costs. The facility has been required to adapt our operations to comply with current regulations for allowable discharges. The most challenging has been the difficulty with removal of ammonia, which the plant was not originally designed to do. To effectively manage the levels of ammonia requires an increase in demand for the air blowers, which in turn uses a lot of electricity. As regulations have continued to increase, and the plant has remained relatively unchanged, this is really the only way we can meet our discharge requirements without incurring the costs of a large renovation project. Staff has been able to achieve an operational balance with providing sufficient air, while maintaining enough residency time within our digester to allow the micro- organisms to perform their jobs. This is challenging, however, in an environment with drastically changing temperatures. Additional factors contributing to the added costs are related to the relatively cold winter this past season, as well as the aging heating equipment for the facility. An upcoming project to replace the blowers with new units running on variable frequency drives (VFDs) will help offset some of the future costs, but not all. It should also be known these additional utility demands may impact the FY19 Budget, as current operations will continue for the immediate future. Thank you for your consideration. 176 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Christine Cunningham, Assistant to City Manager DATE: May 18, 2018 SUBJECT: First One-Year Extension to the Kenai City Hall Janitorial Contract ______________________________________________________________________ The current Janitorial Contract that is in place for Kenai City Hall has an option of renewal for two successive one-year terms by mutual written consent. The first one-year extension is available beginning July 1, 2018. I recommend extending the contract for the first one-year extension. Thank you for your consideration. Attachment cc: Integrity Janitorial, LLC 177 FIRST AMENDMENT TO AGREEMENT FOR JANITORIAL SERVICES The Agreement for Janitorial Services made the ____ day of July, 2018, by and between the CITY OF KENAI, hereinafter called "Owner", whose address is 210 Fidalgo Avenue, Kenai, AK 99611-7794, and, INTEGRITY JANITORIAL, LLC, whose mailing address is P.O. Box 3283, Kenai, AK, 99611, hereinafter called "Contractor," is hereby amended as follows: 1). Pursuant to Section 2 of the Agreement for Janitorial Services the term of the Agreement for Janitorial Services for the Kenai City Hall is extended for one year, beginning on July 1, 2018 and ending on June 30, 2019. DATED this ____ day of July, 2018. CITY OF KENAI By: __________________________ Paul Ostrander, City Manager INTEGRITY JANITORIAL, LLC By: Thomas White, Member 178 (If Lessee is a corporate-style entity) ATTEST: _____________________ Name _____________________ Title STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ____ day of July, 2018, by Paul Ostrander, City Manager for the City of Kenai. __________________________________ Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this _____ day of July, 2018, by Thomas White, Member of Integrity Janitorial, LLC, an Alaska corporation, on behalf of the corporation. __________________________________ Notary Public for Alaska My Commission Expires: 179 Approved as for form: _____ Scott Bloom, City Attorney Approved by Finance ______ Terry Eubank, Finance Director 180 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant, Airport Manager DATE: May 23, 2018 SUBJECT: First 1 Year extension to the Airport Janitorial Contract ______________________________________________________________________ The current Janitorial Contract that is in place with the Kenai Airport has an option of renewal for two successive one-year terms by mutual written consent. The first one-year extension is available beginning July 1, 2018. I recommend extending the contract for the first one-year extension. 181 FIRST AMENDMENT TO AGREEMENT FOR JANITORIAL SERVICES The Agreement for Janitorial Services made the 1st day of July 2015, by and between the CITY OF KENAI, hereinafter called "Owner", whose address is 210 Fidalgo A venue, Kenai, AK 99611-7794, and, Prec ious Janitorial Ind., whose mailing address is P.O . Box 927 , Kenai, AK 99611 hereinafter called "Contractor," is hereby amended as follows: 1). Pursuant to Section 2 of the Agreement for Janitorial Services the term of the Agreement for Janitorial Services for the Kenai Airport Terminal building is extended for one year, beginning on July 1, 2018 and ending on June 30, 2019. DATED this __ day of June 2018. CITY OF KENAI By:~---------- Paul Ostrander City Manager PRECIOUS JANITORIAL IND. By: Sylvia Trevino, Owner PRECIOUS JANITORIAL IND . By: George L. Jackson, Owner FIRST AMENDMENT TO AGREEMENT FOR SERVICES PAGE I OF2 182 (If Lessee is a corporate-style entity) ATTEST: Name Title STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this __ day of June , 2018 by Paul Ostrander, City Manager for the City of Kenai. Notary Public for Alaska My Commission Expires : ___ _ ST ATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of June, 2018 by Precious Janitorial Ind., an Alaska corporation, on behalf of the corporation. Notary Public for Alaska My Commission Expires: FIRST AMENDMENT TO AGREEMENT FOR SERVICES ----- PAGE2 OF 2 183 f'"? Approved as for form: :> Scott Bloom, City Attorney Approved by Finance __ _ Terry Eubank, Finance Director FIRST AMENDMENT TO AGREEMENT FOR SERVICES PAGE3 OF 2 184 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Christine Cunningham, Assistant to City Manager DATE: May 18, 2018 SUBJECT: First One-Year Extension to the Kenai Visitor and Cultural Center Janitorial Contract ______________________________________________________________________ The current Janitorial Contract that is in place for the Kenai Visitor and Cultural Center has an option of renewal for two successive one-year terms by mutual written consent. The first one-year extension is available beginning July 1, 2018. I recommend extending the contract for the first one-year extension. Thank you for your consideration. Attachment cc: Precious Janitorial Ind. 185 FIRST AMENDMENT TO AGREEMENT FOR JANITORIAL SERVICES The Agreement for Janitorial Services made the ____ day of July, 2018, by and between the CITY OF KENAI, hereinafter called "Owner", whose address is 210 Fidalgo Avenue, Kenai, AK 99611-7794, and, PRECIOUS JANITORIAL, IND., whose mailing address is P.O. Box 927, Kenai, AK, 99611, hereinafter called "Contractor," is hereby amended as follows: 1). Pursuant to Section 2 of the Agreement for Janitorial Services the term of the Agreement for Janitorial Services for the Kenai Visitor and Cultural Center is extended for one year, beginning on July 1, 2018 and ending on June 30, 2019. DATED this ____ day of July, 2018. CITY OF KENAI By: __________________________ Paul Ostrander, City Manager PRECIOUS JANITORIAL IND. By: Sylvia Trevino, Owner PRECIOUS JANITORIAL IND. By: George Jackson, Owner 186 (If Lessee is a corporate-style entity) ATTEST: _____________________ Name _____________________ Title STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ____ day of July, 2018, by Paul Ostrander, City Manager for the City of Kenai. __________________________________ Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this _____ day of July, 2018, by Sylvia Trevino, Owner for Precious Janitorial Ind., an Alaska corporation, on behalf of the corporation. __________________________________ Notary Public for Alaska My Commission Expires: 187 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this _____ day of July, 2018, by George Jackson, Owner for Precious Janitorial Ind., an Alaska corporation, on behalf of the corporation. __________________________________ Notary Public for Alaska My Commission Expires: Approved as for form: _____ Scott Bloom, City Attorney Approved by Finance ______ Terry Eubank, Finance Director 188 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Mary Joiner, Library Director DATE: May 21, 2018 SUBJECT: First 1 Year extension to the Kenai Community Library Janitorial Contract ______________________________________________________________________ The current Janitorial Contract that is in place for the Kenai Community Library has an option of renewal for two successive one-year terms by mutual written consent. The first one-year extension is available beginning July 1, 2018. I recommend extending the contract for the first one year extension. 189 FIRST AMENDMENT TO AGREEMENT FOR JANITORIAL SERVICES The Agreement for Janitorial Services made the ____ day of , by and between the CITY OF KENAI, hereinafter called "Owner", whose address is 210 Fidalgo Avenue, Kenai, AK 99611-7794, and, Precious Janitorial IND., whose mailing address is P.O. Box 927, Kenai, AK 99611. 1). Pursuant to Section 2 of the Agreement for Janitorial Services the term of the Agreement for Janitorial Services for the Kenai Community Library is extended for one year, beginning on July 1, 2018 and ending on June 30, 2019. DATED this ____ day of . CITY OF KENAI By: __________________________ Paul Ostrander, City Manager Pre By: Owner Name, Owner Precious Janitorial IND. By: George Jackson, Owner Precious Janitorial IND. By: Sylvia Trevino, Owner 190 (If Lessee is a corporate-style entity) ATTEST: _____________________ Name _____________________ Title STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ____ day of , by Paul Ostrander, City Manager for the City of Kenai. __________________________________ Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this _____ day of , by , an Alaska corporation, on behalf of the corporation. __________________________________ Notary Public for Alaska My Commission Expires: 191 Approved as for form: _____ Scott Bloom, City Attorney Approved by Finance ______ Terry Eubank, Finance Director 192 MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Dave Ross, Police Chief DATE: May 21, 2018 SUBJECT: First 1 Year extension to the Police Department Janitorial Contract ______________________________________________________________________ The current Janitorial Contract that is in place for the Police Department has an option of renewal for two successive one-year terms by mutual written consent. The first one-year extension is available beginning July 1, 2018. I recommend extending the contract for the first one year extension. 193 FIRST AMENDMENT TO AGREEMENT FOR JANITORIAL SERVICES The Agreement for Janitorial Services made the ____ day of July, 2018, by and between the CITY OF KENAI, hereinafter called "Owner", whose address is 210 Fidalgo Avenue, Kenai, AK 99611-7794, and, Precious Janitorial, whose mailing address is P.O. Box 927, Kenai, AK, 99611, hereinafter called "Contractor," is hereby amended as follows: 1). Pursuant to Section 2 of the Agreement for Janitorial Services the term of the Agreement for Janitorial Services for the Kenai Police Department is extended for one year, beginning on July 1, 2018 and ending on June 30, 2019. DATED this ____ day of July, 2018. CITY OF KENAI By: __________________________ Paul Ostrander, City Manager PRECIOUS JANITORIAL IND. By: Sylvia Trevino, Owner PRECIOUS JANITORIAL IND. By: George Jackson, Owner 194 (If Lessee is a corporate-style entity) ATTEST: _____________________ Name _____________________ Title STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ____ day of July, 2018, by Paul Ostrander, City Manager for the City of Kenai. __________________________________ Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this _____ day of July, 2018, by Sylvia Trevino, Owner of Precious Janitorial Ind. __________________________________ Notary Public for Alaska My Commission Expires: 195 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this _____ day of July, 2018, by George Jackson, Owner of Precious Janitorial Ind.. __________________________________ Notary Public for Alaska My Commission Expires: Approved as for form: _____ Scott Bloom, City Attorney Approved by Finance ______ Terry Eubank, Finance Director 196 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant, Airport Manager DATE: May 23, 2018 SUBJECT: Special Use Permit – Empire Airlines, Inc. ______________________________________________________________________ Empire Airlines, Inc., is requesting renewal of the special use permit for aircraft parking on approximately 11,250 square feet on the commercial apron. The rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 The permit will be effective for one-year from July 1, 2018 to June 30, 2019. Empire Airlines, Inc., 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 Empire Airlines, Inc., for aircraft parking? 197 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to EMPIRE AIRLINES , INC. (Permittee), whose address is 11559 N . Atlas Road, Hayden, ID 83835, a Special Use Permit for the purpose of aircraft parking at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 11 ,250 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2018 and ending on June 30, 2019. Regardless of the date of signature , this Permit shall be effective as of July 1, 2018. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Pennittee under this Permit: A. Permit: Permittee shall pay a monthly fee of$815.63 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee , Permittee shall pay a deposit of one hundred dollars ($100 .00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai , ATTN: Finance Department, 210 Fidalgo A venue , Kenai , AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200 , Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of ten percent ( 10%) per annum, and penalty of ten percent (10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date p aid in full. Failure to timely make payments is grounds for termination of this Permit. (See if 22 , Termination) Special Use Permit-Empire Airlines, Inc . (Parking) Page 1of8 198 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose(s): Aircraft Parking. NOTE: This permit does not guarantee the exclusive use o(the area identified in Exhibit A. City reserves the right to re-assign Permittee. upon reasonable notice. to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned. Use of the Premises by Permittee 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 and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft. aircraft engine, propeller. or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests , and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perfonn any repairs or activities authorized under this Pem1it act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. Special Use Pennit-Empire Airlines, Inc. (Parking) Page 2of8 199 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Ai rport by Permittee. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. 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 Pemlittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death , broad-form contractual, with a per- occurrence 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 Pe1mit 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 City as an additional insured. D. All insurance required must meet the following additional requirements: t. All policies will be by a company/corporation currently rated "A-" or better by A .M. Best. 11. Permittee shall submit to the City proof of continuous insurance. coverage in the fonn of insurance policies , certificates, endorsements, Special Use Permit-Empire Airlines, Inc. (Parking) Page 3of8 200 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 Permittee'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 July 1, 2018. The effective date of the insurance shall be no later than July 1, 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 ofinsurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Pennittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold hrumless , 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 or arising from or out of Permittee's activities on or use of the Premises , Permittee's access to the Kenai Municipal Airport, and/or Permittee 's exercise of the privileges granted in this Pe1mit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. Special Use Pem1it-Empire Airlines, Inc. (Parking) Page 4of8 201 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill , or the discharge of petroleum products or hazardous materials due to Permittee 's use of the Apron and/ or use of the Airport. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Permittee's fuel dispensing equipment at all times. Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Permittee's activities . Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials , including the possibility of fine and imprisorunent for knowing violations. Permittee shall immediately remove the material in the event of spillage or dripping of gasoline, oil , grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp , inside an aircraft hangar, or within fifty feet (50') of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFP A 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities , by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials . Special Use Permit-Empire Airlines , Inc. (Parking) Page 5of8 202 14. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, is subject to all executive orders , policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18 . Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. No Joint Venture. 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 or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms , conditions, and requirements 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. 21. Personalty. Permittee shall remove any and all perso nal 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 $2 5.00 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. Special Use Pem1it-Empire Airlines, Inc. (Parking) Page 6of8 203 22. Termination; Default. This Permit may be terminated by either party hereto by giving thirty (30) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than thi1iy (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. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates, charges and fees. Permittee shall make payment within thirty (30) days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten (10) days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611 . 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Pem1it. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition , a daily storage fee shall be charged for each day the aircraft remains impounded . Any impounded aircraft that is not redeemed within ninety (90) days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three (3) consecutive weeks not more than thirty (30) days nor less than seven (7) days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means Empire Airlines, Inc. and where the context reasonably indicates, its officers, agents, and employees . "Airp01i" means the Kenai Municipal Airport. Special Use Permit-Empire Airlines, Inc . (Parking) Page 7of8 204 CITY OF KENAI Paul Ostrander City Manager Date EMPIRE AIRLINES, INC. Randy Lanfell Date Director of Flight Operations ACKNOWLEDGMENTS ST ATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2018, the foregoing instrument was acknowledged before me by PAUL OSTRANDER, City Manager, of the City of Kenai, 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 RANDY LANFELL, Director of Flight Operations, Empire Airlines, Inc., on behalf of the State of Alaska. Approved as to Form: (~/"' ~---· Scott Bloom City Attorney Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit-Empire Airlines, Inc. (Parking) Page 8of8 205 Empire Special Use Permit Special Use Permit Approx. 12,000 sq. ft . 2A1 FedEx 7 3 7A-1 (2) . 3A-1 EXHtsrr A 206 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant, Airport Manager DATE: May 23, 2018 SUBJECT: Special Use Permit – CPD Alaska, LLC ______________________________________________________________________ CPD Alaska, LLC., is requesting renewal of the special use permit for aviation fueling on the apron fueling area consisting of approximately 35,000 square feet. The rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 The permit will be effective for one-year from July 1, 2018 to June 30, 2019. CPD Alaska, LLC 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 CPD Alaska, LLC for aviation fueling on the apron? 207 SPECIAL USE PERMIT -2018 The CITY OF KENAI (City) grants to CROWLEY FUELS LLC (Permittee), whose address is 201 Arctic Slope Ave., Anchorage, AK 99518 , a Special Use Permit for the fueling area on the apron at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 35,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2018 and ending on June 30, 2019. Regardless of the date of signature, this Pennit shall be effective as of July I, 2018. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $2,537 .50 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai , ATTN: Finance Department, 210 Fidalgo Avenue, Kenai , AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200 , Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full . Failure to timely make payments is grounds for termination of this Permit. (See iJ 22, Termination) 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose( s): Special Use Permit-Crowley (Apron Fueling Area) Page 1of8 208 Aviation Fueling on Apron Fueling Area. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee. upon reasonable notice. to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned . Use of the Premises by Permittee 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 and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. Special Use Permit-Crowley (Apron Fueling Area) Page 2of8 209 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee . 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. 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 Permittee's insurance policy contains higher limits , City is entitled to coverage to the extent of the higher limits . A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual, with a per- occurrence 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 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. 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. Special Use Permit-Crowley (Apron Fueling Area) Page 3 of 8 210 111. Permittee shall request a waiver of subrogation against City from Permittee 's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least thirty (30) days before any termination, cancellati on, or material change in insurance coverage of any policy required hereunder. v . Evidence of insurance coverage must be submitted to City by July 1, 2018 . The effective date of the insurance shall be no later than July I , 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. 10. Ass umption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend , and H old 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 or arising from or out of Permittee's activities on or use of the Premises , Permittee's access to the Kenai Municipal Airport, and/or Permittee's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Fuel Sp ill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for Special Use Permit-Crowley (Apron Fueling Area) Page 4of8 211 any damage caused by and costs associated with any spill, the cleanup of any spill, or the discharge of petroleum products or hazardous materials due to Pennittee's use of the Apron and/or use of the Airport . Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Pennittee' s fuel dispensing equipment at all times. Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Permittee's activities . Permittee shall not store any personal property, solid waste, petroleum products , Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations. Permittee shall immediately remove the material in the event of spillage or dripping of gasoline, oil, grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 50' of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFP A 407 ( 1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CPR§ 139.321 regarding the handling and storage of hazardous substances and materials. 14. No Discrimination. Permittee shall not discriminate against any person because of the person 's race , creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly Special Use Permit-Crowley (Apron Fueling Area) Page 5of8 212 discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. No Joint Venture. 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 or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms , conditions, and requirements 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 . 21. Personalty. 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 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers . 22. 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 Special Use Permit-Crowley (Apron Fueling Area) Page 6 of 8 213 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. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates , charges and fees. Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200 , Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means Crowley Fuels LLC., and where the context reasonably indicates, its officers, agents , and employees . "Airport" means the Kenai Municipal Airport. CITY OF KENAI Paul Ostrander City Manager Date CROWLEY FUELS LLC R. Desmond Mayo Vice President Special Use Permit-Crowley (Apron Fueling Area) Date Page 7of8 214 ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS . THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2018 , the foregoing instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of Kenai, 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 R. Desmond Mayo, Vice President, Crowley Fuels LLC, on behalf of the State of Alaska. ATTE ST: City Clerk SEAL : APPROVED AS TO FORM: -;, ------.--· ~ ----.-~--··, Scott M. Bloom, City Attorney Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit-Crowley (Apron Fueling Area) Page 8of8 215 EXHIBIT A ---- Crowley I I EXHIBIT A 216 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant – Airport Manager DATE: May 24, 2018 SUBJECT: United Parcel Service Co., Inc. – Special Use Permit United Parcel Service Co., Inc.is requesting a special use permit for aircraft parking on a paved area consisting of approximately 4,000 square feet. Attached is a special use permit effective one year from July 1, 2018 to June 30, 2019. The FY19 rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 Airport Commission reviewed the request at the May 10, 2018 meeting and recommends Council approve the request. Does Council recommend the City Manager enter into a Special Use Permit with United Parcel Service Co., for aircraft parking on the apron? 217 SPECIAL USE PERMIT 2018 The CITY OF KENAI (City) grants to UPSCO United Parcel Service Co., Inc . (Permittee), whose address is 6200 Lockheed Ave ., Anchorage, AK 99502, a Special Use Permit to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 4,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2018 and ending on June 30, 2019. Regardless of the date of signature, this Permit shall be effective as of July 1, 2018. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of$290.00 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo A venue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200 , Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of ten percent ( 10%) per annum, and penalty of ten percent (10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See ~ 22, Termination) 4. Use. City authorizes Permittee 's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 1of8 218 Aircraft Loading and Parking. NOTE: This permit does not gu,arantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned. Use of the Premises by Permittee 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 and is further subject to the following conditions : Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Pe1mittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occunence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 2of8 219 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. 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 Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations , prope1iy 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 City as an additional insured. D. All insurance required must meet the following additional requirements : L 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. Pem1ittee shall request a waiver of subrogation against City from Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 3of8 220 Permittee 's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. 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 July 1, 2018. The effective date of the insurance shall be no later than July 1,2018. 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. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. 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 or arising from or out of Permittee 's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airport, and/or Pe1mittee's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill, or the Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 4of8 221 discharge of petroleum products or hazardous materials due to Pennittee 's use of the Apron and/or use of the Airport. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to h ave a copy of the fuel spill prevention and response plan located in the Permittee 's fuel dispensing equipment at all times . Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Permittee's activities . Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8 , hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations . Permittee shall immediately remove the material in the event of spillage or dripping of gasoline, oil , grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within fifty feet (50 ') of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports , the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFPA 407 (1996 version), and the current vers ion of the International Fire Codes. All inspections of fuel facilities , by City or other re gulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. Pern1ittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 14. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age , or handi cap. Permittee recognizes the right of City to take any action necessary to enforce this requi r ement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 5of8 222 discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal , state, and City statutes, ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. No Joint Venture. 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 or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be constrned as a waiver or relinquishment of the right to exercise such terms, conditions , or requirements. 21. Personalty. Permittee shall remove any and all personal property, including all vehicles , from the Premises at the termination of this Pe1mit (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 Pem1it 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 . 22. Termination; Default. This Permit may be tenninated by either party hereto by giving thirty (30) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than thirty (30) days, to protect public health Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 6of8 223 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. 23. L anding Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and , as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Pennittee shall pay landing fees for aircraft landings as set out in the City 's comprehensive schedule of rates , charges and fees. Permittee shall make payment within thirty (30) days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take -off weight reports within ten (10) days following the end of each month for landings for the preceding month. A irport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200 , Kenai , AK 99611 . 24. I mpoundment. At the di scretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged fo r each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety (90) days after impoundment shall be cons idered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publ ication shall be in a newspaper of general circulation in that area for at least once during each of three (3) consecutive weeks not more than thirty (30) days nor less than seven (7) days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means UPSCO , United Parcel Service Co., Inc . and where the context reasonably indicates , its officers , agents , and employees . "Airport" means the Kenai Municipal Airport. CITY OF KENAI Paul Ostrander Ci t y Manager Date UPS CO Doug Berry Date Extended Centers Manager Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 7of8 224 ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2018, the foregoing instrument was acknowledged before me by PAUL OSTRANDER, City Manager, of the City of Kenai, 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 Doug Be1ry, the Extended Centers Manager, on behalf ofUPSCO, United Parcel Service Co., Inc . Notary Public for Alaska My Commission Expires: ____ _ Scott Bloom City Attorney Special Use Permit-UPSCO (Aircraft Loading & Parking) Page8of8 225 226 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant, Airport Manager DATE: May 23, 2018 SUBJECT: Special Use Permit – Everts Air Fuel, Inc. ______________________________________________________________________ Everts Air Fuel, Inc., is requesting renewal of the special use permit for aircraft loading and parking on an area consisting of approximately 30,000 square feet. The rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 The permit will be effective for one-year from July 1, 2018 to June 30, 2019. Evert’s 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 Everts Air Fuel, Inc., for aircraft loading and parking? 227 SPECIAL USE PERMIT -2018 The CITY OF KENAI (City) grants to EVERTS AIR FUEL, INC. (Permittee), whose address is P.O . Box 60908, Fairbanks, AK 99706, a Special Use Permit to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 30,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2018 and ending on June 30, 2019. Regardless of the date of signature, this Permit shall be effective as of July 1, 2018 . 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $2, 175 .00 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo A venue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See~ 22 , Termination) 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 1of8 228 Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice. to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned. Use of the Premises by Permittee 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 and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests , and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 2of8 229 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. 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 Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual, with a per- occurrence 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 City as an additional insured. D. All insurance required must meet the following additional requirements: 1. All policies will be by a company/corporation currently rated "A-" or better by A .M. Best. 11. 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 Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 3of8 230 Perrnittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. 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 July 1, 2018 . The effective date of the insurance shall be no later than July 1, 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, Perrnittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Perrnittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Perrnittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Perrnittee 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 Pennittee in connection with or arising from or out of Perrnittee's activities on or use of the Premises, Perrnittee's access to the Kenai Municipal Airport, and/or Perrnittee's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Pennit. 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Perrnittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill, or the Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 4of8 231 discharge of petroleum products or hazardous materials due to Pennittee's use of the Apron and/or use of the Airport. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Permittee's fuel dispensing equipment at all times. Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Permittee's activities. Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations . Permittee shall immediately remove the material in the event of spillage or dripping of gasoline, oil, grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 50' of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFP A 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. H azardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials . 14. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin, sex , age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 5 of 8 232 discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal , state, and local licenses , certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Gr ant Assu rances. This Permit, and Permittee's activities conducted under this Permit, is subject to all executive orders , policies and operational guidelines and all applicable requirements of federal , state, and City statutes , ordinances, and regulations in effect during the term of this Permit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee . City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. No Joint Venture. 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 or elsewhere at the Kenai Municipal Airp011. 20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements 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 . 21. Personalty. 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 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers . 22 . 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 sho11er than 30 days , to protect public health and safety or due Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 6 of 8 233 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. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates, charges and fees . Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 24. lmpoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means Everts Air Fuel, Inc. and where the context reasonably indicates, its officers, agents, and employees. "Airport" means the Kenai Municipal Airport. CITY OF KENAI Paul Ostrander City Manager Date EVERTS AIR FUEL, INC. Dave Miller President Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Date Page 7of8 234 ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2018, the foregoing instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of Kenai, 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 Dave Miller, President, Everts Air Fuel, Inc., on behalf of the State of Alaska. 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-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 8of8 235 Everts Air Fuel 30,000 sqft --- EXHIBIT A I I EXHIBITA 236 KENAI COUNCIL ON AGING REGULAR MEETING MAY 10 , 2018 – 4:30 P.M. KENAI SENIOR CENTER CHAIR ROY WILLIAMS, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Williams called the meeting to order at 4:30 p.m. a. Pledge of Allegiance Chair Williams led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Members Present: Chair R. Williams, Vice Chair D. Erwin, J. Hollier, M. Milewski, V. Geller, B. Osborn, L. Nelson Members Absent: B. Modigh, A. Weeks Staff/Council Liaison Present: Senior Center Director K. Romain, Administrative Assistant A. Clary, Council Member G. Pettey A quorum was present. c. Agenda Approval Director Romain requested that Page 10 of the packet (Senior Citizens Fund of the City’s FY 2019 Operating Budget) be replaced with a corrected copy. MOTION: Council Member Gellar MOVED to approve the agenda with the replacement of page 10 with a corrected version, and Council Member Osborn 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 12, 2018 237 Council on Aging May 10, 2018 Page 2 of 3 MOTION: Council Member Geller MOVED to approve the meeting summary of April 12, 2018 as submitted and Council Member Milewski SECONDED the motion. There were no objections; SO ORDERED. 5. UNFINISHED BUSINESS – None. 6. NEW BUSINESS a. Proposed FY19 Senior Center Budget Director Romain referred to the budget information included in the packet and reviewed it with the membership, highlighting the new look of the Department Narrative. Comments and questions included the staffing chart, the Senior Connection, Inc. line item for revenue, and the Department goals for FY19. 7. REPORTS a. Senior Center Director – Romain discussed the purchase of a security camera and options that may be available with that purchase. Discussion followed. There was no action taken. b. Council on Aging Chair – Williams thanked Council Member Pettey for City Council providing a lovely appreciation dinner for members of the City’s commission, committees and boards. c. City Council Liaison – Pettey reported the following: • The Council and City staff were going through the budget process and a budget work session would be on May 19 at City Hall; • The bluff erosion project was uncertain currently and she suggested citizens should contact their legislators and convey concerns and emphasize importance to the area for the bluff’s stabilization; • The City staff were busy preparing for the seasonal fishery. The numbers of those participating in the fishery were expected to be larger than last year; and • No action had yet been taken on the future of the bowling alley. 8. NEXT MEETING ATTENDANCE NOTIFICATION – June 14, 2018 9. QUESTIONS & COMMENTS A brief discussion took place regarding the dipnet fishery, bluff project, and bowling alley. Director Romain noted several tabletops, that had been damaged during the atrium renovation, had been repaired. Because the repair work was so successful, she hoped to have more tabletops replaced in the next several years. Council Members commended Director Romain for her performance as the Senior Center Director. 238 Council on Aging May 10, 2018 Page 3 of 3 10. ADDITIONAL PUBLIC COMMENT – None. 11. INFORMATION – None. 12. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 5:40 p.m. Meeting summary prepared and submitted by: _____________________________________ Jacquelyn Kennedy Deputy City Clerk 239 KENAI AIRPORT COMMISSION REGULAR MEETING MAY 10, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS CHAIR GLENDA FEEKEN, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Feeken called the meeting to order at 6:00 p.m. a. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Commissioners Present: Commissioners Absent: G. Feeken, D. Pitts, P. Minelga, J. Zirul, K. Dodge C. Henry, J. Bielefeld Staff/Council Liaison Present: Airport Manager M. Bondurant, Administrative Assistant E. Shinn, Council Member J. Glendening A quorum was present. c. Agenda Approval MOTION: Commissioner Zirul MOVED to approve the agenda and Commissioner Dodge SECONDED the motion. There were no objections; SO ORDERED. 2. SCHEDULED PUBLIC COMMENT – None . 3. UNSCHEDULED PUBLIC COMMENT – None. 4. APPROVAL OF MEETING SUMMARY a. April 12, 2018 It was noted that the date of the Kenai Peninsula Air Fair, listed under Item 7 should be June 9. It was also noted that both the Airport Manager and Administrative Assistant would be in attendance to the the Great Alaska Aviation Gathering . MOTION: Commissioner Dodge MOVED to approve the meeting summary from April 12, 2018 with the noted changes, and Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED. 240 Airport Commission May 10, 2018 Page 2 of 4 5. UNFINISHED BUSINESS a. Field of Flowers Sign Update Parks and Recreation Director Frates provided photos of the field of flowers. It was noted that City Administration was discussing the project and Airport Manager Bondurant would bring designs to the next Commission meeting. b. Terminal Rehabilitation Project Update Two proposed design plans were presented to the Commission. There was discussion regarding car rental space, counter space for air carriers, increased baggage area for baggage operations and fish freezers, and inclusion of a meeting room. 6. NEW BUSINESS It was clarified that Items A through F were annual renewal requests for the Special Use Permits. a. Action/Approval – Special Use Permit to Empire Airlines, Inc. MOTION: Commissioner Minelga MOVED to approve the Special Use Permit to Empire Airlines, Inc. and Commissioner Zirul SECONDED. There were no objections, SO ORDERED. b. Action/Approval – Special Use Permit to CPD Alaska, LLC MOTION: Commissioner Minelga MOVED to approve the Special Use Permit to CPD Alaska, LLC and Commissioner Dodge SECONDED. There were no objections, SO ORDERED. c. Action/Approval – Special Use Permit to Everts Air Fuel, LLC MOTION: Commissioner Minelga MOVED to approve the Special Use Permit to Everts Air Fuel, LLC and Commissioner Zirul SECONDED. There were no objections, SO ORDERED. d. Action/Approval – Special Use Permit to United Parcel Service, Inc MOTION: Commissioner Zirul MOVED to approve the Special Use Permit to United Parcel Service, Inc. and Commissioner Minelga SECONDED. There were no objections, SO ORDERED. e. Action/Approval – Special Use Permit to HDL Engineering Consultants, LLC 241 Airport Commission May 10, 2018 Page 3 of 4 MOTION: Commissioner Minelga MOVED to approve the Special Use Permit to HDL Engineering Consultants and Commissioner Zirul SECONDED. There were no objections, SO ORDERED. f. Action/Approval – Special Use Permit to Reddi Towing & Salvage, LLC MOTION: Commissioner Minelga MOVED to approve the Special Use Permit to Reddi Towing & Salvage, LLC and Commissioner Zirul SECONDED. There were no objections, SO ORDERED. g. Action/Approval – Land Lease Application for the lease of lands within the Airport Reserve for property located at 413 N. Willow Street, and 421 N. Willow Street, Kenai, Alaska, 99611; and further described as Lots 5 and 6, Block 1, FBO Subdivision, submitted by Hilcorp Alaska, 3800 Centerpoint Dr., Suite 1400, Anchorage, Alaska 99503 Airport Manager Bondurant reported on the land lease application submitted by Hilcorp Alaska. MOTION: Commissioner Minelga MOVED to approve the Land Lease Application and requested UNANIMOUS CONSENT . Commissioner Zirul SECONDED. There were no objections, SO ORDERED. 7. REPORTS a. Airport Manager – Bondurant reported the following: • The gate project was expected to be out for bid in the next couple of weeks; • The FAA Certification Inspection was on April 23 – 25 and it went well; • She and Assistant Shinn attended the Great Alaska Aviation Gathering on May 5 and 6, and much interest was expressed in the upcoming Peninsula Air Fair scheduled for June 9; and • The FY19 budget meeting was scheduled for May 19. There was discussion regarding the FY19 proposed budget. b. City Council Liaison – Council Member Navarre reported on the April 18 and May 3 Council Meeting actions. 8. NEXT MEETING ATTENDANCE NOTIFICATION – June 14, 2018 9. COMMISSIONER COMMENTS AND QUESTIONS Commissioner Minelga thanked the City of Kenai for the Volunteer Appreciation Dinner and noted it was the 55th Anniversary of the Airport Commission. 10. ADDITIONAL PUBLIC COMMENT – None. 242 Airport Commission May 10, 2018 Page 4 of 4 11. INFORMATION ITEMS a. April 2018 Airport Managers Report b. March 2018 Enplanements c. Kenai Historical Society April 2018 Newsletter d. Recreational Use of Airport Land - September 2017 12. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 6:55 p.m. Meeting summary prepared and submitted by: ___________________________________ Jacquelyn Kennedy Deputy City Clerk 243 KENAI PLANNING & ZONING COMMISSION REGULAR MEETING MAY 9, 2018 – 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVENUE, KENAI, ALASKA CHAIR JEFF TWAIT, PRESIDING 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, G. Greenberg, K. Peterson, V. Askin, D. Fikes Commissioners absent: J. Halstead Staff/Council Liaison present: City Manager P. Ostrander, City Planner E. Appleby, Deputy City Clerk J. Kennedy, Planning Assistant W. Anderson, Council Liaison Knackstedt A quorum was present. c. Agenda Approval MOTION: Commissioner Peterson MOVED to approve the agenda and Commissioner Askin SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Askin 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 – None. 2. *APPROVAL OF MINUTES: April 25, 2018 244 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 2 of 5 May 9, 2018 The minutes were approved by the Consent Agenda. 3. SCHEDULED PUBLIC COMMENT: (10 minutes) None scheduled. 4. UNSCHEDULED PUBLIC COMMENT: (3 minutes) Council Member Jim Glendening noted he was on the Borough Advisory Committee and he provided an update on the north road Natural Gas Project. He described the need for a water supply out at the plant, mostly for fire protection and that there was a proposal that possibly the City of Kenai could provide assistance. Glendening noted there was a discussion on having payment in lieu of taxes because the Borough cannot tax the State of Alaska, an important consideration that he would continue to follow and update the Commission. He further provided information on the Alaska Gasline Development Corporation reroute criteria, noting there were two proposals for review to route the highway around the Alaska LNG Plant. The next meeting was scheduled for June and Glendening offered to provide an update following that meeting. 5. CONSIDERATION OF PLATS: a. Resolution PZ2018-11 - Original Preliminary Plat of Windhaven Estates Phase 3, submitted by Integrity Surveys, 820 Set Net Dr., Kenai, AK 99611, on behalf of Hall Building LLC, P.O. Box 2829, Kenai, Alaska 99611 City Planner Appleby reviewed the staff report, as provided in the packet, noting the 2018 Windhaven Estates Phase 3 proposed preliminary plat currently up for review would create 3 lots from the property described as Tract 1-A, Parsons Homestead No. 3. Planning and Zoning Staff recommended approval of the preliminary plat of Windhaven Estates, Phase 3, subject to the following conditions, outlined in the staff report: • Further development of the property shall conform to all Federal, State and local regulations; • The existing twenty-foot (20’) utility easement shall be delineated on Lot One (1), Block Three (3), of the proposed plat. 3; and • Prior to the development of additional lots on Tract A, the developer will be required to complete an Installation Agreement with the City for road construction and water and sewer line installation. MOTION: Commissioner Askin MOVED to approve Resolution No. PZ2018-11 with staff recommendations and Commissioner Peterson SECONDED the motion. Chairman Twait opened the floor for public testimony; there being no one wishing to be heard, public comment was closed. City Planner Appleby provided clarification regarding the utility easement. VOTE: YEA: Springer, Peterson, Fikes, Askin, Greenberg, Twait NAY: 245 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 3 of 5 May 9, 2018 MOTION PASSED. 6. PUBLIC HEARINGS: a. Resolution PZ2018-13 – A Resolution of the Planning and Zoning Commission recommending the Council of the City of Kenai, Alaska amend Kenai Municipal Code Sections 14.20.330 – Standards for Commercial Marijuana Establishments and 14.20.010 – Land Use Table to prohibit Standard Marijuana Cultivation Facilities in Residential Zones City Planner Appleby provided an overview of Resolution PZ2018-13 and noted that the development of it was based on the March 28 Planning and Zoning Commission work session. She added that it was a recommendation to City Council by the Commission that the Kenai Zoning Code and Land Use table be amended to prohibit standard marijuana cultivation facilities in residential zones as detailed in the packet. MOTION: Commissioner Springer MOVED to approve Resolution No. PZ2018-13 and submit to Council, 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. VOTE: YEA: Peterson, Fikes, Askin, Greenberg, Twait, Springer NAY: MOTION PASSED. 7. UNFINISHED BUSINESS: None. 8. NEW BUSINESS: a. Discussion and Recommendation – Airport Reserve Land Lease Application for property located at 413 N. Willow Street and 421 N. Willow Street, Kenai, Alaska 99611; further described as Lots 5 and 6, Block 1, FBO Subdivision, submitted by Hilcorp Alaska, LLC, 3800 Centerpoint Drive, Suite 1400, Anchorage, Alaska 99503 City Planner Appleby explained that this is the first lease application under the new lease procedure process and the application was consistent with the Airport Land Use plan, associated Kenai Municipal Codes, FAA Regulations, Grant Assurances, and Airport Operations. Appleby clarified that the recommendation from the Commission would be for City staff to go forth and execute the lease. It was expected Hilcorp would then start the process and vacate the property to construct the new plot. The lease would be 35 years and would commence in fall 2018. She added that the Airport Commission would be reviewing this lease application tomorrow at their meeting. 246 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 4 of 5 May 9, 2018 MOTION: Commissioner Springer MOVED to approve the Airport Reserve Land Lease Application 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. VOTE: YEA: Fikes, Askin, Greenberg, Twait, Springer, Peterson NAY: MOTION PASSED. b. Resolution PZ2018-10 - Application for Transfer of Conditional Use Permit PZ97-38 (PZ88-16), (amended by PZ16-44) from Beaver Loop Pit, LLC, Transferor, to Peninsula Community Ventures LLC, Transferee, located at 805 Gravel Street and 751 Gravel Street, Kenai, Alaska, 99611; further described as Tract A-1A Hollier Subdivision No. 4 and Tract B, Hollier Subdivision No. 2 City Planner Appleby reviewed the staff report, as provided in the packet, noting this permit was originally issued in 1988 and Peninsula Community Ventures LLC agreed to operate under the terms and conditions of the original Conditional Use Permit PZ88-16 (PZ97-38, PZ16-44) granted by the Planning and Zoning Commission. As defined in the staff report, approval was recommended of the Transfer of Conditional Use Permit PZ88-16, as amended by PZ97-38 and PZ16-44, subject to the original conditions as set forth on the original permit and additional conditions, as follows: • Facility be licensed by the State of Alaska and managed in compliance with State licensing requirements; • Applicant must comply with all Federal, State and local regulations; • Applicant shall file an annual report for the Conditional Use Permit as set forth in Kenai Municipal Code 14.20.150(f); and • If there is a change of use for the above described property, a new Conditional Use Permit must be obtained, pursuant to KMC 14.20.150(i)(5). MOTION: Commissioner Peterson MOVED to approve Resolution No. PZ2018-10 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: Askin, Greenberg, Twait, Springer, Peterson, Fikes NAY: MOTION PASSED. 247 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 5 of 5 May 9, 2018 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Knackstedt reviewed the action agenda from the May 2 City Council Meeting; noted the FY2019 Budget meeting would be on Saturday, May 19, which was open to the public; added that next week there would be the annual review of the City Manager, Attorney and Clerk; and noted that the Finance Summit brought the Kenai Peninsula cities together to thoroughly discuss the Borough deficit and a way forward. b. Borough Planning – Commissioner Fikes noted that the next Borough Planning Committee meeting was scheduled for May 14. c. Administration – City Planner Appleby reported on the following: • On May 19 City Staff would be presenting the FY2019 budget before City Council; • The Bluff Erosion project was still in progress but no timeline had been set yet; and • At the June 13 meeting, the Planning and Zoning Commission would review Dr. Davidheizer’s application to determine completeness only. If the application was deemed complete, then it would be on the June 27 meeting agenda for public comment. 11. ADDITIONAL PUBLIC COMMENT – None. 12. INFORMATIONAL ITEMS – None. 13. NEXT MEETING ATTENDANCE NOTIFICATION: May 23, 2018 Chairman Twait will be out of state and not in attendance to the next meeting. 14. COMMISSION COMMENTS & QUESTIONS Commissioner Springer asked if commission was interested in making any additional changes in the land use tables regarding marijuana and cultivation; other commissioners expressed interest in a work session. Commissioner Peterson thanked City Planner Appleby for her reports. 15. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:36 p.m. Minutes prepared and submitted by: _____________________________ Jacquelyn Kennedy Deputy City Clerk 248 KENAI PLANNING & ZONING COMMISSION REGULAR MEETING MAY 23, 2018 – 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVENUE, KENAI, ALASKA VICE CHAIR BOB SPRINGER, PRESIDING MINUTES 1. CALL TO ORDER Commission Vice Chair Springer called the meeting to order at 7:00 p.m. a. Pledge of Allegiance Commission Vice Chair Springer led those assembled in the Pledge of the Allegiance. b. Roll Call Commissioners present: Vice-Chair R. Springer, G. Greenberg, K. Peterson, J. Halstead, V. Askin, D. Fikes Commissioners absent: Chair J. Twait Staff/Council Liaison present: City Planner E. Appleby, Deputy City Clerk J. Kennedy, Planning Assistant W. Anderson, Council Liaison H. Knackstedt A quorum was present. c. Agenda Approval MOTION: Commissioner Greenberg MOVED to approve the agenda and Commissioner Askin SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Askin MOVED to approve the consent agenda and Commissioner Greenberg SECONDED the motion. There were no objections; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. e. Excused absences – None 249 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 2 of 4 May 23, 2018 2. APPROVAL OF MINUTES: May 9, 2018 MOTION: Commissioner Peterson MOVED to approve the meeting minutes of May 9 and Commissioner Halstead SECONDED the motion. There were no objections; SO ORDERED. 3. SCHEDULED PUBLIC COMMENT: (10 minutes) None scheduled. 4. UNSCHEDULED PUBLIC COMMENT: (3 minutes) None. 5. CONSIDERATION OF PLATS – None. 6. PUBLIC HEARINGS – None. 7. UNFINISHED BUSINESS – None. 8. NEW BUSINESS: a. Discussion and Recommendation – Airport Reserve Land Lease Applications for properties located at 410 Coral Street and 420 Coral Street, Kenai, Alaska 99611, further described as Tract A, Gusty Subd. No. 3, and Tract B, Gusty Subd. No. 6 Amended, submitted by James H. Doyle, Individually, d/b/a Weaver Brothers, Inc. City Planner Appleby reported that on April 20, administration received an application from James H. Doyle to renew his leases that are within the airport reserve. She noted the applicant had leased the two adjacent properties since 1984 for a parking area for cargo trailers and would like to continue to lease the properties for a term of five years for the same purpose. Appleby clarified that the applicant was not proposing to build on these two parcels. City Planner Appleby reported that Airport Commission would also review the lease applications at their meeting on June 14. MOTION: Commissioner Peterson MOVED to recommend approval of the Airport Reserve Land Lease Applications with staff recommendations and Commissioner Halstead SECONDED the motion. Vice-Chair Springer opened the floor for public testimony; there being no one wishing to be heard, public comment was closed. VOTE: YEA: Fikes, Askin, Greenberg, Halstead, Springer, Peterson NAY: MOTION PASSED. b. Discussion – Consider scheduling a work session to discuss making additional amendments to Kenai Municipal Code 14.20.330 Standards for Commercial Marijuana Establishments and Kenai Municipal Code 14.22.010 Land Use Table. 250 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 3 of 4 May 23, 2018 City Planner Appleby clarified that this item was on the agenda as a follow-up to the interest expressed at the May 9 Commission meeting. Springer added that the purpose behind bringing this to the Commission was the interest expressed at the previous work session to have additional changes made to the Land Use Table. Commissioner Fikes noted that there was new information from the State expected in late June. Council Member Knackstedt and City Planner Appleby recommended to the Commission to list specific areas of interest for more information or areas of concerns to provide direction to Administration. Commissioners noted interest in feedback from the community since establishments opened regarding on-site consumption, business in residential areas, and possible police record complaints to help the Commission determine policy changes. The Commission agreed on postponement of holding a work session until more information was available. City Planner Appleby would provide more thorough background material to bring to the Commission for review in July. 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Knackstedt reviewed the action agenda from the May 16 City Council Meeting; noted the presentation by Alaska GasLine Development Corp. representative, and the upcoming plans; and a presentation by Student Riley Graves on his Caring for the Kenai project, Magnetic Beach Sweeper Concept, and that Administration was looking at the possibility of retrofitting equipment to do that on an industrial level. b. Borough Planning – Commissioner Fikes reported the Commission met on May 14; noting two resolutions for conditional land use permits for material site modifications in K-Beach area and Funny River area were approved; a resolution for a conditional land use permit material site modification in Coho area by Silver Fox Trucking for extracting gravel, was approved upon applicant agreeing to required conditions; and the deadline of the Material Site Working Group’s report was extended and expected in August. c. Administration – City Planner Appleby reported on the following: • The Budget work session on May 19 was successful, and Council returned the funds to the budget for FY2019 to allow for additional training for the City Planner as well as the Planning and Zoning Commission; • She was reviewing/researching what Soldotna had done for Sign Code and familiarizing herself with it more; and • The Planning Department made a site visit to the neighborhood that Dr. Davidhizar submitted an application for gravel extraction. 11. ADDITIONAL PUBLIC COMMENT – None. 12. INFORMATIONAL ITEMS – None. 251 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 4 of 4 May 23, 2018 13. NEXT MEETING ATTENDANCE NOTIFICATION: June 13, 2018 14. COMMISSION COMMENTS & QUESTIONS Commissioner Greenberg noted he had invited someone to speak regarding interest in a change in Code to allow a gunsmith permit in an RR-1 residential zone. Appleby noted that she was in contact with the individual and would follow-up. Fikes thanked Administration for clarifying the process for the next two Commission meetings. 15. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:55 p.m. Minutes prepared and submitted by: _____________________________ Jacquelyn Kennedy Deputy City Clerk 252 KENAI BEAUTIFICATION COMMITTEE REGULAR MEETING MAY 8, 2018 – 6:00 P.M. CITY HALL COUNCIL CHAMBERS CHAIR LISA GABRIEL, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Gabriel called the meeting to order at 6:00 p.m. a. Pledge of Allegiance Chair Gabriel led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Committee Members present: Chair L. Gabriel, T. Canady, K. Reed, T. Wilson Committee Members absent: Vice Chair S. Peterson, B. Madrid, R. Sierer Staff/Council Liaison present: Parks and Recreation Director B. Frates, Parks and Recreation Operator R. Dodge, Council Member Boyle A quorum was present. c. Agenda Approval MOTION: Committee Member Canady MOVED to approve the agenda; and Committee Member Reed 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 10, 2018 MOTION: Committee Member Reed MOVED to approve the April 10, 2018 meeting summary and Committee Member Canady SECONDED the motion. There were no objections; SO ORDERED. 5. UNFINISHED BUSINESS a. Discussion – Volunteer Plant Day 253 Beautification Committee Meeting May 8, 2018 Page 2 of 3 General discussion took place regarding the Volunteer Plant Day. Specifics of the discussion included: The event date scheduled for June 9 at 10 a.m.; beds prepped in advance; volunteers to meet at the Kenai Fire Department; planting maps and diagrams would be available; and that the Department would send out Public Service Announcements. Committee members assigned themselves various plant beds to facilitate during the planting day. b. Discussion – 2018 Plants and Designs Director Frates referred to the planting diagrams provided in the packet and credited Operator Dodge for his good work. Dodge reviewed each bed design, and it was noted that the plant day should be fun for volunteers. c. Discussion/Recommendation – Winter Pole Displays Committee Members reviewed several variations of street pole decorations. It was noted that the per unit price range was typically $450 to $750 depending on size and style. Different styles were discussed, such as garland wrapped versus silhouettes. Director Frates expressed his recommendation of a winter theme silhouette, particularly if the desire was to have them remain up for a month or longer. It was further noted that the decorations would be replacements for the wreaths along Willow Street. MOTION Committee Member Reed MOVED to recommend that the Parks and Recreation Director purchase pole mounted decorations keeping with a snowflake theme. Committee Member Wilson SECONDED. There were no objections; SO ORDERED. 6. REPORTS a. Parks & Recreation Director – Frates reported the following: • The Department was finalizing the recruitment of temporary hires; • Jacob Hart accepted a position as Laborer and starts working on May 14; • Administrative Assistant Melanie Beverly’s last day would be May 10; • The Department was working with several other organizations and community volunteers on the Bike Safety event planned for Saturday, May 12. He added that the event included a bike obstacle course, safety information, bike safety checks, and ice cream; and • Little League opening ceremonies were scheduled for May 19. b. Committee Chair – Gabriel thanked the City of Kenai Parks and Recreation Department efforts for putting together the Volunteer Plant Day. c. City Council Liaison – Council Member Boyle noted that the ideas being considered by the Airport Commission regarding a sign at the Wildflower Garden may be something of interest to the Beautification Committee. 7. NEXT MEETING ATTENDANCE NOTIFICATION – September 11, 2018 254 Beautification Committee Meeting May 8, 2018 Page 3 of 3 8. COMMITTEE MEMBER QUESTIONS AND COMMENTS Chair Gabriel expressed her interest in seeing the sign options. She further commented that the Beautification Committee has been diligent in keeping the associated signs and fencing low- profile. It was noted that a garden tour was typically arranged for an August timeframe. 9. ADDITIONAL PUBLIC COMMENT – None. 10. INFORMATION 12. ADJOURNMENT There being no further business before the Committee, the meeting was adjourned at 7:20 p.m. Meeting summary prepared and submitted by: ___________________________________ Jacquelyn Kennedy Deputy City Clerk 255 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: May 30, 2018 SUBJECT: Local Hazard Mitigation Plan Update ______________________________________________________________________ The City of Kenai has begun the process of updating our Local Hazard Mitigation Plan through cooperation with the State of Alaska or their representing contractor. Beginning this fall, the City of Kenai will: • Provide community information on previous disasters, damage and hazards; • Assist with information that will allow a vulnerability analysis and an identification of risks; • Work with the plan developers to formulate community mitigation goals and actions; • Host at least two public community meetings (will be part of regular Council or Commission meetings) to review and edit the plan drafts; • Formally present the completed plan as a community document to the City Council for adoption and to the Kenai Peninsula Borough to be incorporated into the Borough Hazard Mitigation Plan. The Hazard Mitigation Plan will cover ways the City can prevent or lessen the impact of natural hazards before they occur. It will cover erosion, flooding, earthquakes, and severe weather. It is not an Emergency Response Plan, which covers the immediate police and fire response to a crisis situation. The Hazard Mitigation Plan does not commit the City to accepting any grant money or joining the National Flood Insurance Program or taking any action other than to work with the State to update our own planning document. The Local Hazard Mitigation Plan is a standard community planning document used by communities throughout Alaska, including all cities within the Kenai Peninsula Borough. I will continue to keep the City Council apprised of Kenai’s Hazard Mitigation Plan update. 256 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF: JUNE 6, 2018 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT LN CURTIS & SONS STRUCTURAL FIRE HOSES FIRE SMALL TOOLS 3 ,017.50 BEST TRANSIT MIX SAND STREETS OPERATING SUPPLIES 14 ,400.00 PHYSIC-CONTROL (3) LIFEPAK AED'S CONG. HOUSING SMALL TOOLS 4,084.50 INGRAM LIBRARY SERVICES BOOKS LIBRARY BOOKS 4 ,500 .00 AMAZON UDERGROUND LOCATOR SYSTEM WATER SMALL TOOLS 3,799.92 BUILDERS CHOICE GEOTEXTILE CITY SHOP CONSTRUCTION 5 ,616.00 GRAINGER ACOUSTIC PANELS SHOP OPERATING SUPPLIES 8,791.30 LEGACY ELECTRIC ELECTRICAL WORK ON ROYAL ST. MUNICIPAL ROADWAY CONSTRUCTION 12,700.00 ALASKA PUMP REPLACEMENT DOSING PUMP WATER OPERATING SUPPLIES 3 ,050.00 MERIDIAN SYSTEMS HVAC SYSTEM REPAIR AIRPORT REPAIR & MAINTENANCE 5,995 .00 KACHEMAK ELECTRIC PRIMEX SITE VISIT WATER/SEWER PROFESSIONAL SERVICES 4,985.25 257 JUNE 6, 2018 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION Add the Following Items to the Consent Agenda : G. 12. G. 13. G. 14. G. 15. G. 16. G. 17. G.18. G .19. G. 20. ITEM First Amendment to Agreement for Janitorial Services for Kenai City Hall between the City of Kenai and Integrity Janitorial, LLC First Amendment to Agreement for Janitorial Services for Kenai Airport between the City of Kenai and Precious Janitorial Ind . First Amendment to Agreement for Janitorial Services for Kenai Visitor and Cultural Center between the City of Kenai and Precious Janitorial Ind. First Amendment to Agreement for Janitorial Services for Kenai Community Library between the City of Kenai and Precious Janitorial Ind. First Amendment to Agreement for Janitorial Services for Kenai Police Department between the City of Kenai and Precious Janitorial Ind. Special Use Permit to Empire Airlines, Inc., For Aircraft Parking on the Apron . Special Use Permit to CPD Alaska, LLC For Aviation Fueling on the Apron . Special Use Permit to United Parcel Service Co ., Inc. for Aircraft Parking and Loading on the Apron Special Use Permit to Everts Air Fuel, Inc. For Aircraft Loading and Parking REQUESTED BY City Clerk City Clerk City Clerk City Clerk City Clerk City Clerk City Clerk City Clerk City Clerk ACTION AGENDA KENAI CITY COUNCIL -REGULAR MEETING JUNE 6, 2018-6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 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) C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY AS AMENDED. 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) • Substitute Ordinance No. 3022-2018 2. ENACTED UNANIMOUSLY. 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) 3 . ADOPTED UNANIMOUSLY. Resolution No. 2018-22 -Approving a Lease of Airport Reserve Lands Between the City of Kenai and Hilcorp Alaska, Inc., for Lot Five (5), Kenai City Council Meeting June 6, 20 18 Page 1 of 5 Block One (1 ), FBO Subdivision and Lot Six (6), Block One (1 ), FBO Subdivision. (Administration) 4. ADOPTED UNANIMOUSLY. Resolution No. 2018-23 -Approving the Purchase of Two Police Vehicles through State of Alaska Equipment Fleet Contract Pricing at a Total Cost of $71,861 , Effective July 1, 2018. (Administration) 5. ADOPTED UNANIMOUSLY. Resolution No. 2018-24 -Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Renta l Rates for Airport Reserve Parcels Pursuant to KMC 21.10 .090. (Administration) 6. ADOPTED UNANIMOUSLY. Resolution No. 2018-25 -Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2018 and Ending June 30, 2019. (Administration) 7. ADOPTED UNANIMOUSLY. Resolution No. 2018-26 -Authorizing a Contract with Premera Blue Cross Blue Shield of Alaska to Provide Employee Hea lth Care to City Emp loyees Effective July 1, 2018. (Administration) 8. ADOPTED UNANIMOUSLY. Resolution No. 2018-27-Authorizing Renewal of the City's Insurance Coverage with Alaska Public Entity Insurance for July 1, 2018 through June 30, 2019. (Administration) 9. ADOPTED UNANIMOUSLY. Resolution No. 2018-28 -Amending its Comprehensive Schedule of Rates, Charges , and Fees to Incorporate Changes to be Adopted in the FY2019 Budget Process to Include Adjusting Monthly Rental Rates at Vintage Pointe and Increasing Fees at the Kenai Municipal Airport. (Administration) 10. ADOPTED UNANIMOUSLY. Resolution No . 2018-29 -Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to the City 's Animal Control Fees . (Administration) 11 . ADOPTED UNANIMOUSLY. Resolution No. 2018-30 -Authorizing a Budget Transfer within the General Fund Legislative to Parks, Recreation & Beautification Departments to Purchase Supplies for the Construction of a Display Pavi lio n for the City's Historic Fire Truck. (Council Member Navarre) 12 . ADOPTED UNANIMOUSLY. Resolut ion No. 2018-31 -Authorizing a Budget Transfer for Repairs to the Heating and Ventilation Controls at the Airport Operations Facility. (Administration) 13. ADOPTED UNANIMOUSLY. Resolution No. 2018-32 -Awarding an Agreement to Cook Inlet Spill Prevention and Response , Inc. for the Use of the Cranes , Offices , and Operating Area at the Kenai Boating Facility. (Adm inistration) E. MINUTES 1. APPROVED BY THE CONSENT AGENDA. *Specia l Meeting of May 14, 2018 2. APPROVED BY THE CONSENT AGENDA. *Special Meeting of May 15, 20 18 Kenai Ci ty Council Meeting June 6 , 20 18 Page 2 of 5 3 . APPROVED BY THE CONSENT AGENDA. *Regular Meeting of May 16, 2018 4. APPROVED BY THE CONSENT AGENDA. *Work Session of May 19 , 2018 F. UNFINISHED BUSINESS-None . G. NEW BUSINESS 1. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Bills to be Ratified . 2. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Purchase Orders Over $15,000 3 . INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0612012018. *Ordinance No. 3024-20 18 -Increasing Estimated Revenue and Appropriat ions in the General and Airport Special Revenue Funds for FY2018 Fire Department Overtime in Excess of Budgeted Amounts . (Administration) 4. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0612012018 . . *Ordinance No. 3025-2018-Amending Kenai Municipal Code 14.20 .330-Standards for Commercial Marijuana Establishments and Amending Kenai Municipal Code Chapter 14.22.010 -Land Use Table, to Prohibit Standard Marijuana Cultivation Facilities in Residential Zones . (Administration) 5 . INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0612012018. *Ordinance No. 3026-2018 -Authorizing the Sale of Real Property Described as Lot Six (6) A, Block One (1), Gusty Subdivision , according to Plat 86-76, City-Owned Airport Property Located Outside the Airport Reserve to Pingo Properties , Inc. and Geoffrey M. Graves . (Administration) 6 . INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0612012018. *Ordinance No. 3027-2018 -Authorizing the Sale of Real Property Described as Lot Four (4)A, Block Three (3), Cook Inlet Industrial Air Park Subdivision , 2014 Replat, City-Owned Airport Land Located Outside the Airport Reserve , to Schilling Rentals, a Partnership Owned by David and Michael Schilling. (Administration) 7. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0612012018 . *Ordinance No. 3028-2018-Amending Kenai Municipal Code 23.25 .060-0vertime, 23.30.050 -Business Hours and Hours of Work, and 23.40 .020 -Holidays to Eliminate the Shift Schedule for the Sewer Treatment Plant Employees . (Administration) 8 . INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0612012018. *Ordinance No. 3029-2018 -Increasing Estimated Revenues and Appropriations in the General and Airport Land Sales Permanent Funds to Transfer Earnings in Excess of Budgeted Amounts to t he City's General and Airport Special Reve nue Fund . (Administration) 9 . INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0612012018. *Ordinance No. 3030-2018 -Increasing Estimate Revenues and Appropriations in the Municipal Roadway Improvement Cap ital Project Fund by the Proceed Amount Ke nai C ity Counci l Meeti ng Ju ne 6, 2018 Page 3 of 5 from the Sale of Tract A, Dragseth Subdivision 2016 Addition , according to the Official Plat thereof, Under Plat No. 2016-22, Filed in the Kena i Recording District, Third Judicial District , State of Alaska , including All Improvements thereon as Previously Approved in Ordinance No. 2957-2017 (Substitute). (Admi nistration) 10 . INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0612012018. *Ordinance No. 3031-2018 -Amending Kenai Municipa l Code 23.1 0 .020- Unclassified Service, to Allow Greater Flexibility in Certain City Benefits Received by the City Manager, Attorney, And Clerk, for Purposes of Recruitmen t and Retention. (Council Member Molloy) 11 . INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0612012018. *Ordinance No. 3032-2018 -Increasing Estimated Revenue and Appropriations in the Water & Sewer Fund tor Utility Costs in Ex cess of Budgeted Amounts. (Administration) 12 . APPROVED BY THE CONSENT AGENDA. Action/Approval -First Amendment to Agreement for Janitorial Services for Kenai City Hall between the City of Kenai and Integrity Janitorial, LLC. (Administration) 13 . APPROVED BY THE CONSENT AGENDA. Action/Approval -First Amendment to Agreement for Janitorial Services for Kenai Airport between the City of Kenai and Precious Janitorial Ind . (Administration) 14. APPROVED BY THE CONSENT AGENDA. Action/Approval -First Amendment to Agreement for Janitorial Services for Kenai Visitor and Cultural Center between the City of Kenai and Precious Janitorial Ind . (Administration) 15 . APPROVED BY THE CONSENT AGENDA. Action/Approval -First Amendment to Agreement for Janitorial Services for Kenai Commun ity Library between the City of Kenai and Precious Janitorial Ind . (Administration) 16 . APPROVED BY THE CONSENT AGENDA. Action/Approval-First Amendment to Agreement for Jan ito rial Services for Kenai Police Department between the City of Kenai and Precious Janitorial Ind. (Administration) 17. SPECIAL USE PERMIT APPROVED UNANIMOUSLY. Action/Approval -Special Use Permit to Empire Airlines , Inc., for Aircraft Parking on the Apron . (Administration ) 18 . SPECIAL USE PERMIT APPROVED UNANIMOUSLY. Action/Approval -Special Use Permit to CPD Alaska, LLC for Aviation Fueling on the Apron. (Adm inistration) 19 . SPECIAL USE PERMIT APPROVED UNANIMOUSLY. Action/Approval -Special Use Permit to United Parcel Service Co., Inc. for Aircraft Loading and Parking on the Apron . (Administration ) 20. SPECIAL USE PERMIT APPROVED UNANIMOUSLY. Action/Approval -Specia l Use Permit to Everts Air Fuel , In c . for Aircraft Load ing and Parking. (Admin istration) Kenai City Council Meeting June 6 , 2018 Page 4 of 5 H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Committee 7. Mini-Grant Steering Committee I. REPORT OF THE MAYOR J . ADMINIS T RATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION -None. M. PENDING ITEMS -None. N. ADJOURNMENT INFORMATION ITEMS 1. Purchase Orders between $2 ,500 and $15 ,000 for Council Rev iew The agenda and supporting documents ar e posted on the City's website at www.kenai.citv. 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. Kenai C ity Counci l Meeting Ju ne 6 , 201 8 Page 5 of 5 FY2019 Budget Process to Include Adju sti ng Month ly Rental Rates at V intage Pointe and Increasing Fees at the Kenai Municipal Airport. (Administration) 10. ADOPTED UNANIM OUSLY. Resolution No. 20 18-29 -Amending its Comprehensive Schedule of Rates, Charges , and Fees to Incorporate Changes to the City 's Animal Control Fees. (Administration) 11 . ADOPTED UNANIMOUSLY. Reso lution No. 20 18-30 -Authorizing a Budget Transfer with in the General Fund Legislative to Parks , Recreation & Beautification Departments to Purchase Supplies for the Construction of a Display Pavilion for the City 's Historic Fire Truck. (Council Member Navarre) 12 . ADOPTED UNANIMOUSLY. Reso lution No . 2018-3 1 -Authoriz ing a Budget Transfer for Repairs to the Heating and V e ntilation Contro ls at the Airport Operations Facility. (Administration) 13. ADOPTED UNANIMOUSLY. Resolution No. 2018-32 -Awarding an Agreement to Cook Inlet Spill Prevention and Response , Inc. for the Use of the Cranes, Offices , and Operating Area at the Kenai Boating Facility. (Administration) 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 publi c notice . CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE JUNE 6 , 2018 KENAI CITY COUNCIL MEETING NOT ICE 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 AS AMENDED. 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 . (Admin istration) • Substitute Ordinance No. 3022-2018 2. ENACTED UNANIMOUSLY. Ordinance No. 3023-2018 -Increasing FY2018 General Fund Estimated Revenues and Appropriat ions by $13 ,747 and FY2019 Genera l 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) 3. ADOPTED UNANIMOUSLY. Resolution No. 2018-22 -Approving a Lease of Airport Reserve Lands Between the City of Kenai and Hilcorp Alaska , Inc ., for Lot Five (5), Block One (1 ), FBO Subdivision and Lot Si x (6), Block One (1 ), FBO Subdivision . (Adm inistration) 4 . ADOPTED UNANIMOUSLY. Resolution No. 2018-23 -Approving the Purchase of Two Police Vehicles through State of Alas ka Equipment Fleet Contract Pricing at a Total Cost of $71 ,861 , Effective July 1, 2018 . (Administration) 5. ADOPTED UNANIMOUSLY. Resolutio n No. 2018-24 -Amending its Comprehensive Schedule of Rates , Charges, and Fees to Incorporate Rental Rates for A irport Reserve Parcels Pursuant to KMC 21 .10.090. (Adm inistration ) 6 . ADOPTED UNANIMOUSLY. Resolution No. 2018-25 -Fi xing the Rate of Levy of Property Ta x for the Fiscal Year Commencing July 1, 2018 and Ending June 30 , 2019. (Adm inistration) 7. ADOPTED UNANIMOUSLY. Resolution No. 2018-26 -Authorizing a Contract with Premera Blue Cross Blue Shield of Alaska to Provide Employee Health Care to City Employees Effective July 1, 2018 . (Admin istration) 8. ADOPTED UNANIMOUSLY. Resolution No. 2018-27 -Authorizing Renewal of the City 's Insurance Coverage with Alaska Public Entity Insurance for July 1, 2018 through June 30 , 2019 . (Administration ) 9. ADOPTED UNANIMOUSLY. Resolution No. 2018-28 -Amend ing its Comprehensive Schedule of Ra tes , Charges , and Fees to Incorporate Changes to be Adopted in the NOTICE OF PUBLIC HEARING JUNE 6, 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. 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 Pol ice Department Qualification Pay In Kenai Municipal Code Chapter 23.55 . (Administration) • Substitute Ordinance No. 3022-2018 2. 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 Beautificat ion 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) 3. Resolution No . 2018-22 -Approving a Lease of Airport Reserve Lands Between the City of Kenai and Hilcorp Alaska, Inc., for Lot Five (5), Block One (1 ), FBO Subdivision and Lot Six (6), Block One (1 ), FBO Subdivision . (Administration) 4. Resolution No. 2018-23 -Approving the Purchase of Two Police Vehicles through State of Alaska Equipment Fleet Contract Pricing at a Total Cost of $71,861, Effective July 1, 2018. (Administration) 5. Resolution No. 2018-24 -Amending its Comprehensive Schedule of Rates , Charges, and Fees to Incorporate Rental Rates for Airport Reserve Parcels Pursuant to KMC 21 .10.090. (Administration) 6. Resolution No. 2018-25 -Fixing the Rate of Levy of Property Tax for the Fiscal Year Commencing July 1, 2018 and Ending June 30, 2019 . (Administration) 7. Resolution No. 2018-26 -Authorizing a Contract with Premera Blue Cross Blue Shield of Alaska to Provide Employee Health Care to City Employees Effective July 1, 2018 . (Administration) 8. Resolution No. 2018-27 -Authorizing Renewal of the City's Insurance Coverage with Alaska Public Entity Insurance for July 1, 2018 through June 30 , 2019. (Administration) 9. Resolution No. 2018-28 -Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to be Adopted in the FY2019 Budget Process to Include Adjusting Monthly Rental Rates at Vintage Pointe and Increasing Fees at the Kenai Municipal Airport. (Administration) 10. Resolution No. 2018-29 -Amending its Comprehensive Schedule of Rates , Charges, and Fees to Incorporate Changes to the City's Animal Control Fees. (Administration) 11 . Resolution No. 2018-30 -Authorizing a Budget Transfer within the General Fund Legislative to Parks , Recreation & Beautification Departments to Purchase Supplies for the Construction of a Display Pavilion for the City's Historic Fire Truck. (Council Member Navarre) 12. Resolution No. 2018-31 -Authorizing a Budget Transfer for Repairs to the Heating and Ventilation Controls at the Airport Operations Facility. (Administration) 13. Resolution No. 2018 -32 -Awarding an Agreement to Cook Inlet Spill Prevention and Response, Inc. for the Use of the Cranes, Offices , and Operating Area at the Kenai Boating Facility. (Administration) The public hearing will commence at 6:00 p.m ., or as soon thereafter as business permits, in the Kenai City Council Chambers, 21 O Fidalgo Avenue, Kenai, Alaska , 99611 . All interested persons are invited to attend the meeting and participate in the pub lic discussion . Written comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 210 Fidalgo Avenue, Kenai, AK, 99611. Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk and will be available at the meeting for public review . Please be advised, subject to legal limitations, ordinances and/or resolutions may be amended by the Council prior to adoption without further public notice .