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HomeMy WebLinkAbout2018-06-20 Council Packet KENAI CITY COUNCIL - REGULAR MEETING JUNE 20, 2018 - 6:00 PM KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city A.CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AGENDA APPROVAL CONSENT AGENDA (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B.SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) B.1.Chris Parker, K+A Design Studios and Mark Blanning, Wince-Corthell-Bryson – Airport Terminal Rehabilitation Project Update C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D.PUBLIC HEARINGS D.1.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 D.2.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 D.3.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 D.4.Ordinance No. 3027-2018 – Authorizing the Sale of Real Property Described as Lot Four 1 Kenai City Council Meeting Page 2 June 20, 2018 (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 D.5.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 D.6.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 the City’s General and Airport Special Revenue Fund. (Administration) Ordinance No. 3029-2018.pdf D.7.Ordinance No. 3030-2018 – Increasing Estimated 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 D.8.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 D.9.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 D.10.Resolution No. 2018-33 – Consenting to the Vacation of Beluga Drive West Right-of-Way and a Fifteen Foot (15’) Utility Easement within the Proposed Beluga Subdivision 2015 Replat Right-of-Way Vacation Plat. (Administration) Resolution No. 2018-33.pdf D.11.Resolution No. 2018-34 – Awarding a Professional Services Agreement for Ambulance Billing Services to Systems Design West, LLC. (Administration) Resolution No. 2018-34.pdf D.12.Resolution No. 2018-35 – Authorizing a One-Year Extension of a Professional Services Agreement with Boys and Girls Club of the Kenai Peninsula for Facility Management Services (July 1, 2018 to June 30, 2019) at the Kenai Recreation Center. (Administration) Resolution No. 2018-35.pdf D.13.Resolution No. 2018-36 – Authorizing a Budget Transfer within the General Fund Street Lighting, Buildings, and Boating Facility Departments for Street Light Repairs in Excess of Budgeted Amounts and Authorizing a Purchase Order to Legacy Electric in the Amount of $34,000 for Completion of the Repairs. (Administration) Resolution No. 2018-36.pdf D.14.Resolution No. 2018-37 – Awarding an Agreement to Crowley Fuels, LLC for the Fuel Furnish 2 Kenai City Council Meeting Page 3 June 20, 2018 and Delivery 2018 Invitation to Bid. (Administration) Resolution No. 2018-37.pdf E.MINUTES E.1.*Regular Meeting of June 6, 2018 06-06-18 Council Minutes - DRAFT.pdf F.UNFINISHED BUSINESS - None. G.NEW BUSINESS G.1.*Action/Approval – Bills to be Ratified. Payments over $15,000.pdf G.2.Action/Approval – Purchase Orders Over $15,000 PO's over $15,000.pdf G.3.*Action/Approval – Special Use Permit to Alaska Air Fuel for Aircraft Parking on the Apron. (Administration) SUP - Alaska Air Fuel.pdf G.4.*Action/Approval – Special Use Permit to HDL Engineering for Soils Test Lab and Equipment Storage. (Administration) SUP - HDL Engineeering Consultants.pdf G.5.*Action/Approval – Special Use Permit to Reddi Towing & Salvage, LLC for an Impound Lot. (Administration) SUP - Reddi Towing & Salvage.pdf G.6.*Action/Approval – Amending an Employment Agreement between the City of Kenai and City Attorney Scott Bloom. (City Attorney) G.7.*Ordinance No. 3033-2018 – Appropriating Transfers for FY2019 Budgeted Capital Projects in the Public Safety Capital Project Fund, the Kenai Recreation Center Improvements Capital Project Fund, the Vintage Pointe Manor Capital Project Fund, and the Water and Sewer Capital Project Fund. (Administration) Ordinance No. 3033-2018.pdf H.COMMISSION/COMMITTEE REPORTS H.1.Council on Aging H.2.Airport Commission H.3.Harbor Commission •Sub-Committee Update 05-29-18 Sub-Committee Summary - DRAFT.pdf H.4.Parks and Recreation Commission 3 Kenai City Council Meeting Page 4 June 20, 2018 06-07-18 Parks & Rec Summary - DRAFT.pdf H.5.Planning and Zoning Commission 06-13-18 P&Z Minutes - DRAFT.pdf H.6.Beautification Committee H.7.Mini-Grant Steering Committee I.REPORT OF THE MAYOR J.ADMINISTRATION REPORTS J.1.City Manager Mid-Month Reports.pdf J.2.City Attorney J.3.City Clerk K.ADDITIONAL PUBLIC COMMENT K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker) K.2.Council Comments L.EXECUTIVE SESSION - None. M.PENDING ITEMS -None. INFORMATION ITEMS Purchase Orders between $2,500 and $15,000 for Council Review Purchase Orders between $2,500 - $15,000.pdf N.ADJOURNMENT The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. 4 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 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 5 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 6 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. 7 _____________________________________________________________________________________ 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. 8 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 9 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 10 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 11 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 12 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 13 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. 14 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. 15 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. 16 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 17 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: June 12, 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, 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. 18 Page 2 of 2 Ordinance No. 3025-2018 – Prohibiting Standard Marijuana Cultivation Facilities in Residential Zones The Planning and Zoning Commission received one application for a standard marijuana cultivation facility in a residential zone, for which the permit was denied through failed Resolution No. 2018-05. The applicant did not appeal the decision. There are no other applications for a standard marijuana cultivation facility within a residential zone. Attached to this memorandum are Planning and Zoning Commission Resolution 2018-13, an excerpt of minutes from the May 9, 2018 meeting when Resolution 2018-13 was passed by the Planning and Zoning Commission, and failed Resolution No. 2018-05 for the only standard marijuana cultivation facility conditional use permit application brought before the Planning and Zoning Commission in a residential zone. Thank you for your consideration. 19 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 14.20.01 O- 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 g overnment may enact ordinances or regulations not in conflict with this chapter or with regulations enacted pursuant to this chapter, governing the ti me, place, manner and number of marijuana establishment operat ions"; 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 estab li shments 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 regu lations 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 recogn ize a difference between commercial marijuana cultivat ion 'standa rd ' (over 500 square feet or greater) and li mited (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 zon ing requirements are met; and, WHEREAS, the Planning and Zoning Commission finds that standard commercial cu ltivation 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 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. 20 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 cond itional use permit submission requ irements 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 comp lete. 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 cultivat ing of marijuana must be conducted w ith in 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 obscur ing wall or fence at least six (6) feet high . (e) All commercial marijuana establishments shall not em it an odor that is detectable by the public from outs ide the commercial marijuana establ ishment. (f) No portion of a parcel upon which any commercial marij uana establishment is located shall be permitted within the following buffer distances: (1) One thousand (1 ,000) feet of any primary and secondary schools (K-1 2) and five hundred (500) feet of any vocational prog ra ms , post-secondary sc ho ols , includ ing but not limited to trade, technical, or vocat ional 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-a lone commercial mari j uana 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 faci lity , or a substance abuse treatment facility providing substance abuse treatment. 21 Resolution No. 2018-13 Page 3 of 8 g) As provided in the Land Use Table . a person or licensee may apply for a condi ti o nal 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 marij uana cultivation facility, standard, or a marijuana cultivation faci l ity, limited, shall o nl y be allowed on a lot which has an existing stru cture consistent w ith a princip a l permi tte d use. (i) A marijuana cultivation facility located i n an accessory building shall be subject to th e setback provisions in KMC 14.24.020 , development requirements table. A person or licensee seeking rel ief from the provisions in the development requ irements table may apply for a variance subject to the provisions of KMC 14.20 .180 . B. 14.22.010 Land use table. KEY: P = Pri ncipal Perm itted Use C = Condi ti onal Use S = Secondary Use N =Not Perm itted ~ONING DISTRICTS _AND USES ~ESIDENTIAL )ne-Fami ly Dwell ing rwo-, Three-Family Dwelling =our-Family Dwelling =ive-, S ix-Family Dwell i ng )even -or More Family Dwelling vlobile Home Parks6 Jlanned Unit Reside ntial )evelopment7 r own houses4 \ccessory Bu ild i ng on Parcel N ithout Main Building or Use (See <MC 14.20 .200 ) :OMMERCIAL \irport Compa tib le Uses \utomotive Sales \utomotive Service Stations 3anks 3usiness/Consumer Services ALI c N c 1s N c1s N c 1s N c1 s N c1 s N N N c1 s N c1 s 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 c2e c C3, C3 29 c c N N N N N N N c N c NOTE: Reference foo tn otes on follow i ng pages for additional restrictions RS-RS-RU cc CG IL 1 2 p p p p21 s1 52 p p p p21 51 c N N p p21 51 c N N p p21 51 c N N p p21 51 c c c c c c c c c c c c c c 3 C3 C3 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 52 c 22 p p c c22 p p c c2 2 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 CMU p 51;c 2 p s1;c 2 c s1;c2 c s1;c2 c s1;c 2 N c c c c c N N c c N p N p c p c p 22 Resolution No . 2018-13 Page 4 of 8 :ommercial Recreation ;uide Service fotels/Motels .odge v'larijuana Cultivation Facility, .imi ted 30 arijuana Cultivation Facility, )tandard 30 v'larijuana Product Manufacturi ng =acility 30 v'larijuana Testing Faci lity 30 :>rofessional Offices ~estaurants ~etail Business ~etail Marijuana Store 30 r heaters l\fholesale Business NDUSTRIAL \irports ~ecessary Aviation Facilities \utomotive Repair ;as Manufacturer/Storage v'lanufacturing/Fabricating/ Assembly v'l ini-Storage Faci lity 3torage Yard l\f arehouses >UBLIC/INSTITUTIONAL \ssisted Living :hurches* :linics :alleges* :lementary Schools * ;overnmental Buildings ~igh Schools* fospitals* .i braries* v'luseums 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 N2B c N N N N N c c N c c p 20 c p p c p N c cg 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]~ [C]N [C]N t C]N N N N N N N N N N N N N c c 29 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 p l O p 10 p 10 p1 0 p 10 N c c c c p c2e c c c c p c 29 c c c c p c 29 c c c c p c29 c c c c p N c c c c p c 2e c c c c 12 p c2e 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 0 c 0 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 s 24 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 Cg 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 p 10 c c p p 10 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 p 23 Resolution No. 2018-13 Page 5 of 8 )arks and Recreation ll'llSCELLANEOUS \nimal Boa rd i ng/Com mercia I (ennel 13 \ssemblies 15 (Large: Circuses , =airs, etc.) 3ed and Breakfasts :abin Rentals :emeteries :ommunications Towers & \ntenna(s), Radio/TV Transmitters/ :ell Sites** 28 :rematories/Funeral Homes )ay Care Centers 12 )ormitories/Boarding Houses :.ssential Services =arming/General Agriculture*** =raternal Organizat ion s/ Private :lubs/Socia l Halls and Union Halls 3reenhouses/Tree Nurseries 13 3unsmithing, Taxidermy ~ursing , Convalescent or Rest fomes )arking, Public Lots 12 )ersonal Services 25 ~ecreational Vehicle Pa rks 3.ubsurface Extraction of Natural ~esources 16 3urface 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 c 29 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 p15 p15 p1 5 p15 p15 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 p23 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 l nstltut1onallzed 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 hi g hways. Commercial or i ndustrial which falls under the landscaping/s it e plans requirements of KMC 14.25 shall include any secondary uses in the landscaping and site plans. 2 One (1) single-family res idence 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 un it shall be the same as that requ ired for dwelling units in the RS zone; c p c c N p15 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 24 Resolution No . 2018 -1 3 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 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 susta ined 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 deve lo pment, 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 wh ich the access streets are designed ; i The property adjacent to the proposed dwell ing group will not be adversely 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 conditiona l 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) f eet to any adjoining street or property line. 11 Allowed as a conditional use, provided that no part of any building is located nearer than th irty (30) feet to any adjoining street or property line and provided further that the proposed location and characterist ics 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 characte ri stic of the s ite will maximize its benefit to the pub li c; b Exits and entrances and off-street parking for the use are located to prevent traffic hazards on public streets . 13 Allowed as a cond itional use , provided that setbacks, buffer str ips , 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 sa id use is ev ident from the exterior of the mortuary. 15 Allowed, provided that the following conditions are met: a An uncleared buffer str ip of at least th irty (30) feet shall be prov ided 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. 25 Resolution No . 2018-13 Page 7 of 8 20 The ai rport 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 per imeter fence or having access to aircraft movement areas, taxiways or park ing aprons, FAA authorized uses are allowed . 2 1 Developments for use shall be the same as those listed in the "Development Requirements Table" for the RUffSH 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 , beaut icians, tattoo parlors, dressmakers, dry cleaners and self- service laundries, fitness centers, photographic studios , ta ilors , tanning salons and massage therapists . 26 Food services are a ll owed on a temporary or seasonal bas is 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 pr incipal 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 e ither from: (a) driveway access on the Kena i 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-bu ilt 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. 26 Resolution No . 2018 -1 3 Page 8 of 8 Section 2. That a copy of this Resolution be forwarded to the City Council of Kena i upon passage. PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA this9"dayofMay,2018. \ ~~viitk JEF , CHAIRPERSON ATTEST: 27 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 14.20.01 O -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 prohib it 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 A ir port 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 A irport Commission would be reviewing this lease app lica ti on tomorrow at their meeting . Planning and Zoning Comm ission Meeting May 9, 2018 Page 3 of 5 28 "Vt1/tlje with a Pas; City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-77~ Telephone : 907-283-7535 /Fax: 907-27 3-30 4 www. kenai. city , ' CITY OF KENAI PLANNING AND ZONING COMMISSION RESOLUTION NO. PZ2018-05 / CONDITIONAL USE PERMIT I A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI GRANTING A REQUEST FOR A CONDITIONAL USE;PERMIT TO OPERATE AN APPROXIMATELY 984 SQUARE-FOOT MARIJUANA CUL(ctVATION FACILITY, STANDARD, WITHIN AN EXISTING APPROXIMATEL y 1,216 SQUAR / ·ooT DETACHED GARAGE. APPLICANT: Janna Karvonen, d/b/a Lone Fox Far7 s L PROPERTY ADDRESS: 505 Ames Rd. LEGAL DESCRIPTION: A portion of the North~st one-quarter of the Southwest one-quarter (NW1/4SW1/4), in Section 1, Township 5 No!~: Range 11 West, Seward Meridian, Kena i Recording District, Third Judicial District, S~ate , f Alaska, more particularly described as follows: From a U.S.G.L.O. W.C.M.C. monument f und on the North Bank of Beaver Creek, located North 00 degrees 03' East 368 .3 feet fro the Southwest corner of Section1 ; proceed to the Section line North 00 degrees 03' East 4(028.1 feet ; thence continue South 89 degrees 57' East 30 feet to Corner No . 1 and the po int (beginning; Thence continue South 89 degrees 57' East 208. 7 feet to Corner No . 2; Thence orth 00 degrees 03' East 208 . 7 feet to Corner No . 3; Thence North 89 degrees 57' West 08. 7 feet to Corner No. 4 on the Southeast right-of-way line of Beaver Loop Road; Thence alo g the East edge of a 30 foot w ide roadway, South 00 degrees 208. 7 feet to Corner No. 1 and t point of beginning . KENAI PENINSULA BOROU H PARCEL NO: 049-260-20 WHEREAS , an applicatio meeting the requirements of Section 14.20.150 has been subm itted and received on Janua 22, 2018; and, WHEREAS , the application affects land which is zoned as Rural Res idential (RR); and, WHEREAS , a duly advertised public hearing as required by Kenai Municipal Code 14.20.153 was conducted by the Planning and Zoning Commission on March 14, 2018; and, WHEREAS , the applicant has demonstrated with plans and other documents that the prerequisites of a Conditional Use Permit have been met; and, WHEREAS , Kenai Municipal Code 14.20.150 details the intent and application process for conditional uses and specifies the review criteria that must be satisfied prior to issuing the 29 Resolut ion No . PZ2018-05 Conditional Use Permit Pa g e 12 permit, which are the following : (1) The use is consistent with the purpose of this chapter and the purposes and i ntent of the zoning district; The subject parcel is zoned Rural Residential (RR), and is therefore subject to the Pri ncipal Permitted and Conditional land-uses as shown on KMC 14.22.010 -Land Use Table . Pursuant to KMC 14.20.330{a) a Marijuana Cultivation Facility, Standard , may be established and operated under a Conditional Use Permit within the Rural Residential Zone . The Rural Residential Zone , as outlined in KMC 14.20.080 is intended to provide for low- density residential development in outlying and rural areas in a form , which creates a stable and attractive residential environment. The cultivation area for mature flower ing plants is approximately 824 square feet and conta ins ten (10) planting rows. The area designated for vegetative/immature plants and cloning is approximately 160 square feet. This area will include shelving for the cloning process and a table for the vegetative plants. There are two rooms in the building which are not included in the cultivation area. An area approximately 140 square feet is designated as a trimming and curing room. This area will contain drying tents and a trimming table . Lastly, a room approximately 80 square feet in size will be used for administrative tasks and a decontamination area w ith lockers and a changing area for employees. The doors entering and existing the premises will be steel heavy duty security doors with commercial grade locks. The existing garage doors will be locked and walls constructed in the interior of the building to enclose the garage door open ings. Pursuant to KMC 14.20.330f) provides that no portion of a CME can be located within the following buffer distances: (1) 1,000 feet of any primary and secondary schools (K-12) and 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, a substance abuse treatment facility providing substance abuse treatment. In reviewing the submitted application and the City's Geographic Information System , it does not appear that there are any facilities , which would require buffering from the proposed CME. 30 Resolution No . PZ2018-05 Conditional Use Permit Page 13 There are currently twenty-eight parcels, within a 500 foot periphery of the parcel leased by the applicants applying for the Conditional Use Permit for a Marijuana Cultivation Facility, Standard. Of these twenty-eight parcels, residences are located on twenty-one parcels and the remaining seven parcels are vacant at this time. Kenai Municipal Code 14.20.330(i) provides that a Marijuana Cultivation Facilty, Standard may be located on lots of forty thousand ( 40,000) square feet or greater in size. The subject parcel is approximately one (1) acre in size and; therefore, meets the minimum lot size for a Marijuana Cultivation Facility, Standard. The primary access to the subject Commercial Marijuana Establishment (CME) is from Ames Road which is a paved City maintained road. According to the submitted application. the applicants do not intend to construct any signage other than a 1.5 foot x 2 foot sign near the main entrance of the building that will contain the name of business. Therefore, the average person passing by the subject parcel would not be able to identify the CME as being located on the property. Given the above discussion within the context of the proposed land-use project, it seems reasonable that the proposed Commercial Marijuana Establishment would be consistent with the intent of KMC 14.20.150 and the intent of the Rural Residential Zoning District with respect to the proposed use as a CME. (2) The value of the adjoining property and neighborhood will not be significantly impaired; The proposed development must be in compliance with the requirements of KMC 14.20.330 -Standards for Commercial Marijuana Establishments. In addition, the proposed development must also be in compliance with Alaska Statue 17 .38, an Act to Tax and Regulate the Production, Sale, and Use of marijuana as well as Alaska Administrative Code -Title 3 -Marijuana Control Board -Omnibus licensure requirements and procedures for marijuana establishments. Pursuant to KMC 14.20.330 -Standards for Commercial Marijuana Establishments, provisions have been put in place to help mitigate impacts to the value of adjoining property and the surrounding neighborhood. As reviewed by staff, the proposed CME would be contained within a fully enclosed secure indoor facility as required by KMC 14.20 .330( d), thereby, helping to mitigate the potential impact to surrounding property owners. In addition, pursuant to KMC 14.20.330(e) CME's may not emit an odor that is detectable by the public from outside the CME. Pursuant to the submitted supplemental application materials, under Odor the applicant has indicated that they will implement an Odor Control Plan. The Odor Control Plan will consist of a carbon filtration system as well as drawing fresh air from outside. The fans will operate at all times to ensure that any air leaving the facility has been filtered. The fans will be powered by a back up generator in the event of a power outage. Concerning visual impacts and auditory impacts of the proposed CME, pursuant to the submitted application materials, the applicants would have a secure Cultivation Facility. All doors exiting and entering the building shall be heavy duty steel security doors with commercial grade locks. The existing garage doors will be locked and pressure sensors will be installed on garage doors. A wall will be constructed on the inside of the building 31 Resolution No. PZ2018-05 Conditional Use Permit Page 14 to enclose the garage door openings . No trespassing signs wi ll be posted around the perimeter of the premises as wel l as "premises is monitored by cameras 24/7" signs . Access to the proposed CME would only be allowed by those persons who are 21 years of age or older. Staff believes that the value of the adjoining property and neighborhood will not be significantly impaired. (3) The proposed use is in harmony with the Comprehensive Plan; The subject parcel is defined in the 2030 Imagine Kenai Comprehensive Plan as Low Density Residential (LOR). The plan defines LOR as "Low Density Residential because of poor site conditions is intended for large-lot single-family residential development. The area will typically be developed with individual on-site water supply and wastewater disposal systems. Streets will typically be constructed to rural street standards (i.e ., gravel) and sidewalks will not be typically included in the subdivision design. Rural Residential becomes Low Density Residential to avoid confusion with zoning category." There are currently twenty-eight parcels within a 500 foot periphery of the parcel leased by the applicants applying for the Conditional Use Permit for a Marijuana Cultivation Facility, Standard . Of these twenty-eight parce ls, residences are located on twenty-one parcels and the remaining seven parcels are vacant at this time. Goal 3 -Land Use of the 2030 Imagine Kena i Comprehensive Plan seeks to discuss land use strategies to implement a forward-looking approach to community growth and development. Objective LU-1 states "Establish siting and design standards so that development is in harmony and scale with surrounding uses." The applicants have stated that they do not plan to enlarge the existing detached garage; however, they will be constructing walls inside the structure to separate the cultivation areas, trimming and curing room, clon ing room, and entry area . Pursuant to KMC 14.20 .330(d) the growing , preparation and packaging of all marijuana will be conducted in a fully enclosed secure indoor facility. Thus, there will be no anticipated evidence that surrounding neighbo rs will view the proposed operation of the CME. Therefore, the proposed development would be in harmony with the 2030 Imagine Kenai Comprehens ive Plan. (4) Pub lic services and facilities are adequate to serve the propose use; The subject property is served by a private onsite water well and septic system. Any run off from plants with or without nutrient so lution will be drained onto the floor and disposed of by the drain in the concrete floor. The Ma rijuana Cultivation Facility, Standard, does not contain bathroom facilities. The Landlord and Tenant have agreed that the bathroom and kitchen facilities located in the res idence on the property will be avai lable for use by the Tenant and their employees . The applicant plans on hiring four ( 4) employees. City of Kenai police and fire department resources are sufficient to serve the proposed use . (5) The proposed use wil l not be harmful to the public safety, health, or welfa re; With regards to buffer distances as discussed in KMC 14.20.330(f)( 1 ), the proposed CME would not be located within 1,000 feet of any primary and secondary school (K-12) or with in 32 Resolution No. PZ2018-05 Conditional Use Permit Page IS 500 feet of any vocational program, post-secondary school including but not limited to trade, technical, or vocational schools, college and universities. In addition, it would not be within 500 feet of any, recreation or youth centers, correctional facilities, churches, and state licensed substance abuse treatment facilities providing substance abuse treatment. Therefore , the proposed CME meets the buffer requirements of KMC 14.20.330(f)(1). Given the above discussion and proposed conditions of approval, staff believes that they proposed CME would not have a harmful impact to the public safety, health or welfare, provided that all conditions recommended by staff and the Planning and Zoning Commission are followed. WHEREAS, any and all specific conditions deemed necessary by the Planning and Zoning Commission to fulfill the conditions as set forth below shall be met by the applicant. These may include, but are not limited to measures relative to access, screening, site development, building design , operation of the use and other similar aspects related to the proposed use, as follows: 1. Further development of the property shall conform to all State and local regulations. 2. A building permit will be required for the remodeling of the Commercial Marijuana Establishment as shown on the submitted floor plan. 3. Prior to operation of the Marijuana Cultivation Facility, Standard, the property owner shall submit a copy of an approved Business License issued by the State of Alaska, Department of Commerce, Community and Economic Development. 4. Prior to operation of the Marijuana Cultivation Facility, Standard, the property owner shall submit a copy of the approved and fully executed license for the Marijuana Cultivation Facility, Standard. The applicant shall comply with all regulations as stipulated by the State of Alaska Marijuana Control Board. 5. Other than a 1.5 foot x 2 foot sign near the main entrance of the building that will contain the name of business; no signs will be placed on the subject parcel or on the subject commercial Marijuana Establishment, which advertise its use on the property . 6. All security lighting for the Commercial Marijuana Establishment shall be downcast and shielded. 7. Pursuant to Kenai Municipal Code Section 14.20.330(e), the Commercial Marijuana Establishment shall not emit an odor that is detectable by the public from outside the Commercial Marijuana Establishment. 8. The Commercial Marijuana Establishment may not in crease in square footage without a new or amended Conditional Use Permit. 9. Pursuant to Kenai Municipal Code Section 14.20.150(f), the applicant shall submit an Annual Report to the City of Kenai. NOW, THEREFORE , BE IT RESOLVED, BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI, ALASKA THAT THE APPLICANT HAS DEMONSTRATED THAT 33 Resolution No . PZ2018-05 Cond itio nal Use Perm it Page 16 THE PROPOSED OPERATION OF AN APPROXIMATELY 984 SQUARE-FOOT MARIJUANA CULTIVATION FACILITY, STANDARD. WITHIN AN EXISTING APPROXIMATELY 1, 216 SQUARE-FOOT DETACHED GARAGE MEETS THE CONDITIONS REQUIRED FOR SAID OPERATION AND THEREFORE THE COMMISSION DOES AUTHORIZE THE ADMINISTRATIVE OFFICIAL TO ISSUE THE APPROPRIATE PERMIT. PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI , ALASKA, this 14th day of March, 2018. ATIEST: Jeff Twait, Chairperson Jam ie Heinz, City Clerk 34 _____________________________________________________________________________________ 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). 35 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. 36 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 37 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. 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 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. Mr. Graves requests to purchase the property at its fair market value excluding lessee-constructed improvements as determined by an appraisal and a minimum 38 Page 2 of 2 Ordinance No. 3026-2018 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 years of sale. Mr. Graves 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 $180,000 by an appraisal performed by Reliant, Advisory Services, LLC on May 6, 2018. Based on the amount of the appraisal, Mr. Graves proposes to meet the minimum new investment requirement equal to $45,000 on the premises through completion of a remodel of the outside of the Summit Drycleaner building, landscape and asphalt improvements, and a small addition as well as other repairs on both buildings. The City will verify the value of the improvements using an estimate from a licensed contractor. If the City Council approves the sale, City Administration may proceed with a sale. Thank you for your consideration. Attachment cc: Pingo Properties, Inc. and Geoffrey M. Graves 39 G U S T Y A D D. N O. 1 SHADURA GUSTYSUBD. GU S TYADDN NO. 2 GUSTY NO. 3 GUSTY NO. 4 TR. A 2 5 3 6A 4 1A 3 1 4 3 2 TR. B 1 TR. A 12 TR. B (1) (2) (2) 114721153541041511 6 4 8 11 6 3 2 42511 6 0 0 11663 11616 11631 11568 11536 11504 11599 11595 43542044511616 11631 11568 11536 11504 114721153541041511 6 4 8 11 6 3 2 42511 6 0 0 11663 11599 11595 1144011440435420445COHOE AVECORAL STC O H O E A V E 114721153541041511 6 4 8 11 6 3 2 42511 6 0 0 11663 11616 11631 11568 11536 11504 11599 11595 43542044511616 11631 11568 11536 11504 114721153541041511 6 4 8 11 6 3 2 42511 6 0 0 11663 11599 11595 1144011440435420445 . 125 ' 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 123 feet Lot 6A, Block1,Gusty Subdivision Text 40 _____________________________________________________________________________________ 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). 41 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. 42 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 43 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- 44 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 45 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. 46 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. 47 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 48 _____________________________________________________________________________________ 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): 49 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] 50 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: 51 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. 52 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 53 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. 54 _____________________________________________________________________________________ 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 55 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 56 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 57 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. 58 _____________________________________________________________________________________ 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 59 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 60 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. 61 _____________________________________________________________________________________ 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, 62 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 63 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. 64 _____________________________________________________________________________________ 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. 65 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 66 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. 67 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-33 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, CONSENTING TO THE VACATION OF THE BELUGA DRIVE WEST SIXTY FOOT (60’) RIGHT-OF-WAY AND A FIFTEEN FOOT (15’) UTILITY EASEMENT WITHIN THE PROPOSED BELUGA SUBDIVISION 2015 REPLAT RIGHT-OF-WAY VACATION PLAT, WHICH IS ATTACHED HERETO AS EXHIBIT “A”. WHEREAS, on April 25, 2018, the City of Kenai Planning and Zoning Commission approved Resolution PZ2018-07, a resolution recommending approval of the Beluga Subdivision 2015 Replat Right-of-Way Vacation Plat; and, WHEREAS, on May 29, 2018, the Kenai Peninsula Borough Planning Commission approved the Preliminary Plat of Beluga Subdivision 2015 Replat Right-of-Way Vacation Plat, consistent with the recommendation of the City of Kenai Planning and Zoning Commission; and, WHEREAS, Kenai Municipal Code Section 22.05.110(b) – Determination as to Need for Public Use states: “Whether land previously dedicated to a public use should be dedicated to a different public use or should no longer be needed for public use shall be determined by the City Council by ordinance, except in cases of vacation of rights- of -way or easements which may be determined by resolution, either of which shall contain the new public use for which the property is to be dedicated or the reason the land is no longer needed for public use, the legal description of the property, and the address or a general description of the property sufficient to provide the public with notice of its location”; and, WHEREAS, ACS, ENSTAR Natural Gas and Homer Electric Association have submitted statements to the Kenai Peninsula Borough that offer no objection to the removal of the right-of- way and 15’ utility easement; and WHEREAS, the right-of-way and 15’ utility easement are no longer needed for a public use because the applicant will dedicate a utility easement thirty feet (30’) in width centered along the existing underground water line and the City will be able to maintain the underground water line; and, WHEREAS, vacation of the right-of-way would not alter development of City-owned property to the south and west of the proposed Lot 5-A, Beluga Subdivision 2015 Replat Right-of-Way Vacation Plat. 68 Resolution No. 2018-33 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That as shown on the proposed Beluga Subdivision 2015 Replat Right-of -Way Vacation Plat, the following Beluga Drive West right-of-way and utility easement are no longer needed for a public use and the Council of the City of Kenai consents to these vacations: a) Vacate the sixty foot (60’) right-of-way; and b) Vacate the fifteen foot (15’) utility easement. Section 2. That this resolution take effect immediately upon passage. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 69 CERTlf1CATE OF ACCEPTANCE lt1E UHOEJISGNED OfflOAL IDEMTlflED 8Y NAME ANO 111l£ IS AU'IHORIZfD TO ACCEPT ANO HEREBY ACCEPTS ON llEHAIF Of THE OTY Of KENAI FOR PUBLIC USES AND FOR PU8UC PURPOSES THE REAL PROPERTY TO BE OEDICAJEO BY THIS PlAT INCLUOING EASOolENTS. RIGHTS-Of-WAY, ALLEYS. ANO OTHER PU8UC NIE.AS SHOWN ON THIS PlAT ID£HTIF1ED AS Fell.LOWS: -15' UTILITY EASEMENTS AWOININC PUBUC RIGHT-OF-WAYS -JO' UTILITY EASEMENT CENTERED ON EXISTING UNDERGROUND WATEll LINE THE ACCEPTANCE Of LANDS FOR PUBUC USE OR PUBUC PURPOSE DOES NOT 08UCATE T1£ PUBUC OR ANY GOllERNING BOOY TO CONSTRUCT, OPERATE, BlCHT Of FAY YACATJON Pl.AT AJ>PBOVAL lt11S PLAT WAS APPROVED BY THE KEllAI PENINSULA BOROUGH IN ACCORDANCE 'MTH KP9 20.10.080 AUTHORIZED OfflOAl ~' I I I I I I I I OR MAINTAIN IMPROVEMENT$. BY: PAUL OSTRANDER QTY MANAGER -QTY Of KENAI 210 f'IOAl..GO A VE. KENAI, Al< 119611 DATE: _____ _ ~~~! ~ 1) OE\'El.OPMENT Of THIS PROPERTY IS SUBJECT TO THE OTY Of KENAI ZONING REGULATIONS. F\JRlltfJI OE\C.OPMEHT Of THt l'f«lf'EllTY SHAU. OONFOllM TO AU. f"EOER-'1. ST"TE AHO LOCAi. REGUl.A TIONS. 2) THIS PARCEi. MAY BE ~CTED BY CO\IENANTS. CONOITlONS ANO RE'SllltCllONS AS REC()ROE[) ON AFRIL 20, 1 K4 .A.INE 3, 1969 NOV. 19, 1973 Ill< 27 PG 303 l(R0 111< 39 PG 143 KR!> 111< 74 PG 308 KRO J) =~:,.~ie~J..lt.1: =~~~l~~:~~~ntTYN~SEMEHT 'llHIOl WOULD INTERfU!E 't'llTH THE IJllLITY Of " UTILITY TO USE THE EASEMENT. 4) ~~A=AI ~c:~~~ ~··~,,;:n~~~~"...~!:..~ EASEMENT W"S APPRO~. BY 5) A JO fOOT UTIUTY EASEMENT, CENTEMD ON THE EXISTING UHDERQIOUNO WA TERUNE. IS GRANTED THIS PlAT. 6) WASJEWAJER DISPOSAL: PlANS FOR WASTEWATER OISP0$"1. THAT MEET REGULATORY REQUIREMENTS ARC ON flLE AT TH£ Al.ASl<A OEl'ARTMENT Of EN\IRONMENTAL CONSERVATION. • CLO/BLM MONUMENT OF REFCORO AS NOltO PRIMARY MONUMENT RECOl.£RED AS NOTED SECONDARY MONUMENT SET THIS SUR\o£Y 5/8' X 30' REBAR W/ Pl.ASTIC CAP 0 SECONDARY MONUMENT RECOl.£RED Cl 5/8' REBl\R SECONOARY MONUMENT RECO~ 1 1 /2" ALUM. CAP ON 5/8' REBAR SECONDARY MONUMENT REC0'£REO 8l.UE PlASTIC CAP ON 5/8" REBAR 'LS 11795' RECORO AND MEASURED PER BEl.UCA suBOt-..SION 2015 REPLAT/ .. RIGHT OF WAY VACATION PLAT NO. 2015-71 l(RO / ')/ / //% RIGHT OF WAY VAC"JEO THIS PlAT I ( l ~ UTILITY EASEMENT VACATED TH1S Pl.AT I -30' UTILITY EASEMENT GR~TED THIS PLAT /./'°\ -------y. \. \ I \ . \ I ,\ \ I • a ) I I I I I I l I I J I I I I I I I I ' I I I f .1~ !l1l.J.._m.1.I._ -.. --- • _.,,J- / • I I I I I ... r I I I I I I r I I LOTS-A 7.916 AC. BASIS Of BEARING PlAT NO. 2015-71 KRD N119'57'24"E 09.90' (FORllER LOT AREA 6.n4 AC.) JO' U1'1UTY EASEMENT CENTERED \) ON ElOSTING WA 1tR l.M GRANTED ll«S PlA T stt NOTE 5 I J CI) {:- ~-- I I I I I L __ KAKNUST. 33• ROW ----- CERTIFICATE OF SURVEYOR I HEREBY CERTlfY THAT I NA PROP£RLY REGISTERED ANO LICENSED TO PRACTICE LNIO SU811EnNG IN THE STA TE OF Al.ASKA, THIS PLAT REPRESENTS A SUR'IEY MADE BY ME OR UNlER llY DIRECT SUPER\ISION, THE MONUMENTS SHOWN HEREON ACTUAi.i. Y EXIST AS DESCRIBED, ANO AU. OMENSIONS ANO OTHER OET M.S l\RE CORRECT TO THE NORMAL STANDARDS Of PRACTICE Of LAND SURVEYORS IN THE STATE OF AlASICA. ~ N T VIONITY MAP ,. -1 Mil£ CEBTJFJCATE OF OffNEBSHIP AND DEQICATJON V.C, THE UNDERSIGNED. HE1!£BY CERTIFY THAT KENAI NEW LIFE ASSEll!ILY OF GOO, IS THE OWNER OF THE REAL PROPERTY SHO'Mj AND DESCRIBED HEREON AND ON llOW.f Of THE NEW UFt ASSEMBLY OF GOO , K HEREBY ADOPT THIS Pl.AN Of SUBDl'llSION ANO BY OUR F'Rtt CONSENT DEDICATE AU. RIGHTS-Of-WAY ANO G~ANT ~EASEMENTS TO THE USE SHOWj, JASON DANIELS SETH ADAMS Gl£NN GOOFREY DA\ID YOUNG l((NAI NEW~~1~£n~ OlUROl KENAI, ALASKA 99611 NOTARY s ACKNQJrLEDCMENT FOR: JASON DANIELS ACKHO'lll£OGED BEFORE ME THIS_ DAY Of ________ 2018 NOTARY PUBLIC fOR ALASKA llY COMMISSION EXPIRES __ NOf'ARYS ACKl{On&DCJIENT FOR: SETH AD""S ACKNO'lll.EOGEO BEFORE ME lHIS _DAY OF ________ 2018 NOTARY PUBUC fOR ALASKA MY COllWISSION EXPIRES __ NQTARYS ACJ(NOFL&D(jl/ENT FOR: CLENN GODfllEY ACKNO'M.Et>GEC BEFORE ME THIS _DAY or _______ _ NOTARY PU8UC FOR ALASKA llY COMlllSSION EXPIRES __ NOTABYS ACKNOJrLEDCJIENT FOR:OA\10 YOONG 2018 ACKNOW..£DGEO BEFORE ME TH1S _DAY Of ________ 2018 NOTARY PUBUC fOR ALASKA MY COMMISSION EXPIRES __ KPB FILE No. BELUG A SUBDIVISION 201 5 REPLAT RIGHT OF WAY VACATION PLAT VACATING BELUGA DRIVE l'IEST RIGHT or W,.Y, ANO ASSOCIATED UTIJTY EASEMENTS, ADJOINING TRACT S llEl.VG" SIJllOl\ISKlN 201S RfPl.AT • RIGHT Of WAY VACATION (PLAT NO. 2015-71 KRD) OWNER: KENAI NEW LIFE ASSDIBL Y Of GOO OfUROl N<.A KENAI NEW UFE ASSVMBl.E OF GOO, INC. 209 PRINCESS STREET KENAI, Al< 991111 LOC.t.TEO 'MTHIN THE £1/2 SWl/4 SECTION 33, T6N, R11W, SEWARD MERIDIAN, OTY OF KENAI, KENAI RECORDING DISTRICT, l<ENAI PENINSULA BOROUGH, ALASKA CONTAINING 7.916 ACRES IX'J'EGRI'l'Y Sl 'HYJ<;Y~ IX('. 820 SET NET ORI~ KENAI, Al< 99611 --(IJO'l)~7 SURl<VORS r1U1-(to1).....011 Pl.AHNCRS ... ~.,· ... JOB NO: 21802S ORA'llN: MARCH 14, 2016 SH SURVEYED: MAROl 2018 SCALE: 1· -60' f1(ll) Bl<: Fl.£: 218025 PP.OWG 70 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: June 13, 2018 SUBJECT: Resolution 2018-33 – Consenting to the Vacation of Beluga Drive West Right-of-Way and Utility Easement within the proposed Beluga Subdivision 2015 Replat Right-of-Way Vacation Plat On March 22, 2018, a preliminary plat of Beluga Subdivision 2015 Replat Right-of-Way Vacation Plat was submitted to the City by Integrity Surveys. The purpose of this plat is to vacate the sixty foot (60’) right-of-way of Beluga Drive West, vacate a fifteen foot (15’) utility easement, and dedicate a thirty foot (30’) utility easement to encompass the existing underground water line. The City of Kenai has an underground water line located within the right-of-way of Beluga Drive West. The City of Kenai does not object to the right-of-way vacation because the applicant will dedicate a thirty foot (30’) utility easement centered along the existing underground water line. Therefore, the City will still be able to maintain the underground water line. On April 25, 2018, the City of Kenai Planning and Zoning Commission passed Resolution PZ2018-07, recommending approval of the preliminary plat of Beluga Subdivision 2015 Replat Right-of-Way Vacation Plat; subject to the following conditions: 1. Further development of the property shall conform to all Federal, State and local regulations. 2. The City Council for the City of Kenai must approve the vacation of the sixty foot (60’) Right-of-Way for Beluga Drive West, pursuant to Kenai Municipal Code 22.05.110. 3. The City Council for the City of Kenai must approve the vacation of the fifteen foot (15’) utility easement as shown on the proposed plat, pursuant to Kenai Municipal Code 22.05.110. On May 29, 2018, the Kenai Peninsula Borough Planning Commission approved of the vacation of a public right-of-way and associated utility easements in the Beluga Drive West subdivision, consistent with the recommendation of the City of Kenai Planning and Zoning Commission. 71 Page 2 of 2 Resolution 2018-33 The Kenai Peninsula Borough has submitted a request to the City of Kenai for their consent to the vacation of the sixty foot (60’) Beluga Drive West right-of-way and the fifteen foot (15’) utility easement, pursuant to Alaska Statute 29.40.140 and Kenai Municipal Code 22.05.110. Attached to this memo is a map, the application to the City of Kenai for the replat, and an excerpt of minutes from the April 25, 2018 City of Kenai Planning and Zoning Commission meeting approving PZ2018-17. A plat is attached as Exhibit A to proposed City Council Resolution No. 2018-33. Thank you for your consideration. 72 Tract 5, Beluga Subd . 2015 Replat & R-0-W Vacation N W+E s 850' ! .. __ I 1 inch equals 833 feet The information depicted here on is for graphic representation only of the best available sources. T he City of Kenai assumes no responsibility for errors on this map. Date: 4/19/2018 73 RECEIVED PLANNING DEPARTMENT APPLICANT MAILING ADDRESS CITY , STATE, ZIP PHONE NAME OF PLAT CITY OF KENAI PLANNING DEPARMENT PRELIMINARY PLAT SUBMITTAL FORM Kenai New Life Assembly of God Church -Steve Brown ?()Q -. Ct Kenai, AK 99611 Beluga Subdivisino 2015 Replat -Right of Way Vacation Plat Preliminary Plat Revised Preliminary Plat CURRENT ZONING WHERE APPLICABLE : rural residential 1 USE : Residential Recreational Commercial Other SEWER: On Site City XX Community WATER: On Site City xx Community Vacation of Public Right-of-Way Yes xx No STREET NAME : Beluga Drive West I EX CEPTIONS RE~UIRED AND REQUESTED I COMMENTS Date 6/24/2014 74 2. *APPROVAL OF MINUTES: April 11, 2018 The minutes were approved by the Consent Agenda . 3. SCHEDULED PUBLIC COMMENT: (10 minutes) None scheduled. 4. UNSCHEDULED PUBLIC COMMENT: (3 minutes) None. 5. CONSIDERATION OF PLATS : a. Resolution PZ2018-07 Original Preliminary Plat of Beluga Subdivision 2015 Replat Right-of-Way Vacation, submitted by Integrity Surveys, 820 Set Net Dr., Kenai, AK 99611 , on behalf of Kenai New Life Assembly of God, 209 Princess Lane, Kenai , AK 99611 COMMISSIONER FIKES ARRIVED AT 7 :03 PM City Manager Ostrander reviewed the staff report, as provided in the packet, noti ng that the purpose of this plat is to vacate the Right-of-Way of Beluga Drive West; vacate a fifteen foot (15') utility easement; and dedicate a thirty foot (30') utility easement which encompasses the existing underground water line. He further noted that the property owner would also like to vacate the fifteen foot (15 ') utility easement along the southern boundary of Tract 5, Beluga Subd ivision 2015 Replat & Right-of-Way vacation. Ostrander added that the City of Kenai does not object to the vacation of the utility easement because the property owner was dedicating a thirty foot (30') utility easement which will be centered on the existing underground water line , allowing the City access to it. Planning and Zoning Staff recommended approval of the preliminary plat of Beluga Subdivision 2015 Replat Right-of-Way Vacation, subject to the following conditions: • Further development of the property shall conform to all Federal, State and local Regulations; • The City Council for the City of Kenai must approve the vacation of th e sixty foot (60') R ig ht-of -Way for Beluga Drive West, pursuant to Kenai Municipal Code 22.05.11 O; and • The City Council for the City of Kenai must approve the vacati on of the fifteen foot ( 15') utility easement as shown on the proposed plat, pursuant to Kenai Mu nicipal Code 22.05.110. MOTION : Commissioner Askin MOVED to approve Resolution No. PZ2018-07 with sta ff re commend ations and Commissioner Springer SECONDED the motion . Chairman Twait opened the floor for public testimony; there being no one wishing to be heard , public com ment was closed. VOTE: YEA: Twait, Springer, H a lstead , Peters o n , Askin , Fikes NAY: Pl anning and Zoning Commission Meeting April 25, 2018 Page 2 of 5 75 MOTION PASSED . 6. PUBLIC HEARINGS: a. Resolut ion PZ20 18-08 -Application for a Conditional Use Permit to Construct a Residential Six-Family Dwelling Unit for Seniors Age 55 and Older, located at 2392 Redoubt Avenue, Kenai, Alaska , 99611 , and further described as Lot 1, Kenai Meadows . The application was submitted by Kenai Peninsula Housing Initiatives, P.O. Box 1869, Homer, Alaska 99603 City Manage r Ostrander reviewed the staff report, as provided in the packet, noting that the City of Kenai conveyed Lot 2, Kenai Meadows, to Kenai Peninsula Housing Initiatives Inc. in May 2017 and Lot 1, Kenai Meadows, to Kenai Peninsula Housing Initiatives Inc. in March 2018 . He further noted the Quitclaim Deeds conveying Lots 1 and 2, Kenai Meadows, from the City of Kenai to Kenai Peninsula Housing In itiatives Inc. contained the following restriction : Per City of Kenai Ordinance 2899-2016 , in the event of a land sale, to a for Profit entity, the value of the property shall be reimbursed to the City, if the Sale occurs within twenty (20) years after transfer to Kenai Peninsula Housing Initiatives, Inc. This appl ication was specifically for Lot 1. Based on the application and a review of the criteria required to approve the permit, the application met the intent of the zone and complied with the Comprehensive Plan . Staff recommended approval with the following conditions : • Further development of the property shall conform to all Federal, State, and local regulations ; • Prior to issuance of a Building Permit , a Landscape/Site plan must be reviewed and approved by the City Planner; • Prior to beginning construction of the project, a building permit must be issued by the Building Official for the City of Kenai; • A biennial fire inspection must be completed by the Fire Marshall for the City of Kenai; and • A yearly Conditional Use Permit report must be submitted to the City of Kenai prior to the 31 st day of December of each year. MOTION: Commissioner Springer MOVED to approve Resolution No. PZ2018-08 with staff recommendations and Commissioner Askin SECONDED the motion. Chairman Twait opened the floor for public testimony; there being no one wishing to be heard , public comment was closed . Commissioner Peterson noted he would be voting in support but wondered about the existing structure and if it would be sharing the paved common parking area . Representative of the Peti t ioner, Conn ie Van clarified that this residential unit would have its own entrance and parking area , it would not be shared with the common parking lot. P lanni ng and Zo ning Co mmi ss ion Meeting April 25, 2018 Pa ge 3 of 5 76 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 34 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A PROFESSIONAL SERVICES AGREEMENT FOR AMBULANCE BILLING SERVICES TO SYSTEMS DESIGN WEST, LLC. WHEREAS, Section 7.15.060 of Kenai’s Municipal Code for procurement of professional services requires a request for proposals for contracting of professional services in excess of $35,000.00; and, WHEREAS, on May 15, 2018, the following proposals to perform ambulance billing services for the City of Kenai were received: Proposer Score Systems Design West, LLC. 384.95 LifeQuest Services 351.00 Fire Recovery EMS, LLC. 307.00; and, WHEREAS, Systems Design West, LLC provided the highest ranked proposal; and, WHEREAS, award of the contract to Systems Design West, LLC is in the best interest of the City of Kenai. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to execute a professional services agreement for the City of Kenai’s ambulance billing services to the highest ranking proposer, Systems Design West, LLC. Section 2. That the City Manager is authorized to issue a purchase order in the amount of $21,000.00 for the estimated FY2019 ambulance billing services. Section 3. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th 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: Jeff Tucker, Fire Chief DATE: June 7, 2018 SUBJECT: Resolution No. 2018-34 Professional Services Agreement Award for ambulance billing services The purpose of this memo is to request Council approval for Resolution No. 2018-34. Resolution No. 2018-34 will award a three-year Professional Services Agreement, with the opportunity for one, two-year extension by mutual agreement, for ambulance billing services. A request for proposal was released on May 1, 2018 and three responses were received by May 15, 2018. A committee of four reviewed and ranked the proposals based on four criteria categories: 1. Qualification, Experience and Resources, 2. Key Staff, 3. Methodology and Approach, 4. Cost/Fee Schedule. Ranking of proposals was based on a weighted point system for each of the four categories with the following results: Proposer Score Systems Design West, LLC 384.95 LifeQuest Services 351.00 Fire Recovery EMS, LLC 307.00 Systems Design West, LLC provided a cost proposal of $22.50 per run plus actual postage, LifeQuest Services provided a cost proposal of $19.75 per run and Fire Recovery EMS, LLC provided a cost proposal of $19.95 per run. Systems Design West, LLC was the highest ranking proposer and execution of a Professional Services Agreement for ambulance billing services with Systems Design West, LLC is recommended. 78 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 35 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A ONE- YEAR EXTENSION OF A PROFESSIONAL SERVICES AGREEMENT WITH BOYS AND GIRLS CLUB OF THE KENAI PENINSULA FOR FACILITY MANAGEMENT SERVICES (JULY 1, 2018 TO JUNE 30, 2019) AT THE KENAI RECREATION CENTER. WHEREAS, the Boys and Girls Club of the Kenai Peninsula has been providing management services and operations of the City’s recreation center; and, WHEREAS, the Agreement for Facility Management Services at the Kenai Recreation Center with the Boys and Girls Club of the Kenai Peninsula is due to expire June 30, 2018; and, WHEREAS, the City of Kenai solicited competitive proposals from contractors for the management and operations of the City’s recreation center to provide quality recreational programs and services for children, adults and seniors; and, WHEREAS, the Boys and Girls Club of the Kenai Peninsula was the only responsible bidder; and, WHEREAS, extension through June 20, 2019 will allow administration time to institute the services and implement needed operational changes that were outlined in the Request for Proposals (RFP) before entering into a negotiated multi-year agreement. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to extend the time of performance to June 30, 2019 of the Professional Services Agreement for Facility Management Services with the Boys and Girls Club of the Kenai Peninsula. Section 2. That compensation for the Facility Management Services shall not exceed $130,000. Sufficient funds have been budgeted. Section 3. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 79 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: June 12, 2018 SUBJECT: Resolution No. 2018–35 Extension to Agreement for Facility Management Services at the Kenai Recreation Center ____________________________________________________________________________ The purpose of this memo is to recommend passage of Resolution 2018-35. Resolution 2018-35 will authorize a one-year extension of the existing Agreement for Facility Management Services at the Kenai Recreation Center with the Boys and Girls Club of the Kenai Peninsula. A request for proposals for management and operations of the Kenai Recreation Center was issued April 22, 2018. The Boys and Girls Club of the Kenai Peninsula was the only proposal received. The administration recommends extension of the existing contract with the Boys and Girls Club of the Kenai Peninsula for a one-year term, through June 30, 2019. This will allow sufficient time to institute changes that were outlined in the Request for Proposals (RFP) before entering into a negotiated multi-year agreement. Your support for Resolution 2018-35 is respectfully requested. 80 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-36 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A BUDGET TRANSFER WITHIN THE GENERAL FUND STREET LIGHTING, BUILDINGS, AND BOATING FACILITY DEPARTMENTS FOR STREET LIGHT REPAIRS IN EXCESS OF BUDGETED AMOUNTS AND AUTHORIZING A PURCHASE ORDER TO LEGACY ELECTRIC IN THE AMOUNT OF $34,000.00 FOR COMPLETION OF THE REPAIRS. WHEREAS, Legacy Electric is currently under contract to perform street light maintenance for the City of Kenai for FY18, contract was executed on 7/13/17 and has a corresponding Purchase Order #113348 in the amount of $14,000.00; and, WHEREAS, FY18 experienced a number of accidents with damage to the City’s street lights, which shall incur costs above and beyond the original budget for street light maintenance; and, WHEREAS, a large part of these costs will be returned to the City in the form of insurance claims; and, WHEREAS, increasing the existing PO will allow the Public Works Department to continue to address the Street Lighting and Street Light Locating needs of the City in a timely manner; and, WHEREAS, Public Works Department is requesting an increase to the existing PO by $20,000.00 to cover these additional costs; and, WHEREAS, the additional funding shall include $5,500.00 from account #001-435-4538 Street Lights Repair & Maintenance which constitutes the remaining available budget within that account, $8,500.00 from account #001-434-4538 Buildings Repairs & Maintenance and $6,000.00 from account #001-460-4531 Boating Facility Professional Services. 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: Buildings – Repair & Maintenance $8,500 Boating Facility – Professional Services 6,000 $14,500 To: Street Lighting – Repair & Maintenance $14,500 Section 2. That purchase order #113348 be increased to a total Purchase Order amount of $34,000.00, is authorized to Legacy Electric, Inc. for FY2018 street lighting repairs, maintenance, and utility locates. 81 Resolution No. 2018-36 Page 2 of 2 Section 3. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20 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: Scott Curtin, Public Works Director DATE: June 12, 2018 SUBJECT: Resolution No. 2018–36 Street Light Repairs ____________________________________________________________________________ The purpose of this memo is to recommend passage of Resolution 2018-36 Street Light Repairs. Legacy Electric is currently under contract with the City to perform Street Light Repairs and Street Light Underground Utility Locate services. Over the course of this past fiscal year multiple street lights were damaged in vehicle accidents. This Resolution provides for an increase to the existing Purchase Order to cover these additional unforeseen costs. Approval of this Resolution will allow the Public Works Department to continue to respond quickly to Street Lighting issues, and provide Underground Locations services for all calls for locates through the end of FY18. It should be noted that a fair amount of the additional costs should be returned to the City via insurance claims, to the extent the FY18 original budget for this work should not be exceeded. Approval of this Resolution assures the Contractor is working within the constraints of an authorized Purchase Order per City Code. Thank you for your consideration. 83 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-37 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING AN AGREEMENT TO CROWLEY FUELS, LLC. FOR THE FUEL FURNISH & DELIVERY 2018 INVITATION TO BID. WHEREAS, the Public Works Department released an Invitation to Bid on May 29, 2018 with Bids Due on June 12, 2018; the following Bids were received: Bidder Price per gallon Crowley Fuels LLC $2.705 Alaska Oil Sales Inc $3.084 and, WHEREAS, Crowley Fuels, LLC was found to be the lowest responsive and responsible bidder and award to this bidder will be in the best interest of the City; and, WHEREAS, the recommendation from the City Administration is to award the agreement to Crowley Fuels, LLC for furnishing and delivering diesel fuel; and, WHEREAS, the Bidder’s invoiced price per gallon for Diesel Fuel will adjust based on the Oil Price Information Services (OPIS) Reports; and WHEREAS, the term of the agreement will be from July 1, 2018 to June 30, 2021. The agreement term may be extended upon mutual agreement of the parties for two additional one year periods. The agreement will not be extended beyond June 30, 2023; and, WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, Section 1. That the City Manager is authorized to execute a contract with Crowley Fuels LLC for furnishing and delivering diesel fuel to various locations in the City. Section 2. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20 day of June, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 84 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin, Public Works Director DATE: June 12, 2018 SUBJECT: Resolution No. 2018–37 Fuel Furnish & Deliver 2018 ____________________________________________________________________________ The Fuel Furnish & Deliver 2018 Invitation to Bid was released on May 29, 2018, with bids due on June 12, 2018. The City received the following Bids: Bidder Price per gallon Crowley Fuels LLC $2.705 Alaska Oil Sales Inc $3.084 The scope of this agreement includes furnishing and delivering Ultra Low Sulfur Non-Highway Diesel No. 1 Fuel to City emergency generators and the Airport Operations Fuel Tank. The successful Bidder must subscribe to the Oil Price Information Service (OPIS). The OPIS report submitted with the bid and used as a base price for future $/gallon adjustment was $2.785/gallon. The OPIS Unbranded Rack Average is utilized to account for fluctuations within the market throughout the duration of the Contract. As example the percentage savings we have today $2.705/$2.785 = 97% of market average, will remain the same percentage for the duration of contract, regardless of whether the market rate goes up or down. Crowley Fuels LLC, is the lowest responsive and responsible Bidder. The term of the agreement will be from July 1, 2018 through June 30, 2021. The agreement term may be extended upon mutual agreement of both parties for two additional one year periods. The agreement may not extend beyond June 30, 2023. It should be noted the last time this Contract was awarded in 2013, the price was $3.762/gallon. The Public Works Department respectfully recommends approval of Resolution 2018-37 to award an agreement to Crowley Fuels LLC. Thank you for your consideration. 85 KENAI CITY COUNCIL – REGULAR MEETING JUNE 6, 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 June 6, 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 (telephonic) Henry Knackstedt Tim Navarre Jim Glendening Mike Boyle (absent) Glenese Pettey A quorum was present. Also in attendance were: Paul Ostrander, City Manager Scott Bloom, City Attorney Jamie Heinz, City Clerk 3. Agenda Approval Mayor Gabriel noted the following modifications to the agenda: Add the following items to the Consent Agenda: G. 12. First Amendment to Agreement for Janitorial Services for Kenai City Hall between the City of Kenai and Integrity Janitorial, LLC G. 13. First Amendment to Agreement for Janitorial Services for Kenai Airport between the City of Kenai and Precious Janitorial Ind. G. 14. First Amendment to Agreement for Janitorial 86 City of Kenai Council Meeting Page 2 of 13 June 6, 2018 Services for Kenai Visitor and Cultural Center between the City of Kenai and Precious Janitorial Ind. G. 15. First Amendment to Agreement for Janitorial Services for Kenai Community Library between the City of Kenai and Precious Janitorial Ind. G. 16. First Amendment to Agreement for Janitorial Services for Kenai Police Department between the City of Kenai and Precious Janitorial Ind. MOTION: Vice Mayor Navarre MOVED to approve the agenda with the requested revisions and requested UNANIMOUS CONSENT. Council Member Glendening 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. Vice Mayor Navarre SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, the public hearing was closed. VOTE: There being no objections, SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS – None. C. UNSCHEDULED PUBLIC COMMENTS Linda Swarner thanked the City Council and Mayor for recognition at her retirement celebration. D. PUBLIC HEARINGS 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. 87 City of Kenai Council Meeting Page 3 of 13 June 6, 2018 • Substitute Ordinance No. 3022-2018 MOTION: Council Member Knackstedt MOVED to enact Ordinance 3022-2018 and Council Member Glendening SECONDED the motion. Mayor Gabriel opened the public hearing. Linda Swarner thanked the Administration and City Council for the work put into the budget; commended Administration for adding a Human Resource Director and encouraged a hiring a human resource professional for the position. There being no one else wishing to be heard, public comment was closed. MOTION TO AMEND: Council Member Knackstedt MOVED to amend Ordinance 3022-2018 by substitution. Vice Mayor Navarre SECONDED the motion and requested UNANIMOUS CONSENT. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. Administration was thanked for their work on the budget. It was noted the work session was time well spent for explaining the budget. It was suggested that the Council be proactive on concepts for fundraising for the Bluff Erosion Project as well as the potential boom if the Alaska LNG Project is built. Senior Connections was thanked for their support for the senior center. Support for the Human Resource Director was reiterated noting the position is seen as an expenditure but the position could save money in the end helping with managing staff properly. Appreciation was expressed for Administration’s foresight on the borough-wide sales tax issue. VOTE ON THE MAIN MOTION: YEA: Molloy, Gabriel, Navarre, Glendening, Knackstedt, Pettey NAY: MOTION PASSED UNANIMOUSLY. 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. MOTION: 88 City of Kenai Council Meeting Page 4 of 13 June 6, 2018 Council Member Knackstedt MOVED to enact Ordinance No. 3023-2018 and Vice Mayor Navarre SECONDED the motion. Mayor Gabriel opened the public hearing. Branden Bornemann, Kenai Watershed Council, noted their organization received most of the funds from the grant and appreciated the opportunity to work with the City on monitoring. There being no one else wishing to be heard, public comment was closed. VOTE: YEA: Molloy, Gabriel, Pettey, Navarre, Glendening, Knackstedt NAY: MOTION PASSED UNANIMOUSLY. 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. MOTION: Vice Mayor Navarre MOVED to adopt Resolution No. 2018-22 and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Hilcorp was thanked for their willingness to build a hangar in Kenai. VOTE: There being no objections, SO ORDERED. 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. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-23 and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. 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. 89 City of Kenai Council Meeting Page 5 of 13 June 6, 2018 MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-24 and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. 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. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-25 and requested UNANIMOUS CONSENT. Vice Mayor Navarre SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Administration was thanked for utilizing resources well and keeping the property taxes at the same rate. VOTE: There being no objections, SO ORDERED. 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. MOTION: Vice Mayor Navarre MOVED to adopt Resolution No. 2018-26 and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that plan changes and negotiation kept the increase to 7.8% as opposed to the 19% initially proposed and Administration reviewed other coverages with the City’s broker; providers, products, and network options were looked at. It was noted the City’s goal was to provide quality health care to retain quality employees. VOTE: There being no objections, SO ORDERED. 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. MOTION: 90 City of Kenai Council Meeting Page 6 of 13 June 6, 2018 Council Member Knackstedt MOVED to adopt Resolution No. 2018-27 and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. 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. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-28 and requested UNANIMOUS CONSENT. Vice Mayor Navarre SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that fee increases were cost recovery as the rates had been well below market value. It was pointed out that once the Terminal Rehabilitation Project was completed the City would have an opportunity to renegotiate contracts again to catch the fees up with market value. VOTE: There being no objections, SO ORDERED. 10. Resolution No. 2018-29 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes to the City’s Animal Control Fees. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-29 and requested UNANIMOUS CONSENT. Vice Mayor Navarre SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. 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. MOTION: Vice Mayor Navarre MOVED to adopt Resolution No. 2018-30 and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. 91 City of Kenai Council Meeting Page 7 of 13 June 6, 2018 Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that the selected location was the best option; Mayor Williams would discuss the location with the Public W orks Director and Building Inspector to ensure nothing was missed. VOTE: There being no objections, SO ORDERED. 12. Resolution No. 2018-31 – Authorizing a Budget Transfer for Repairs to the Heating and Ventilation Controls at the Airport Operations Facility. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-31 and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Appreciation was expressed for the repairs. VOTE: There being no objections, SO ORDERED. 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. MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-32 and requested UNANIMOUS CONSENT. 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 fuel dispensing was not a part of the contract. Administration was thanked for finding a lessee for the space. VOTE: There being no objections, SO ORDERED. E. MINUTES 1.*Special Meeting of May 14, 2018 Approved by the consent agenda. 2.*Special Meeting of May 15, 2018 Approved by the consent agenda. 92 City of Kenai Council Meeting Page 8 of 13 June 6, 2018 3.*Regular Meeting of May 16, 2018 Approved by the consent agenda. 4.*Work Session of May 19, 2018 Approved by the consent agenda. F. UNFINISHED BUSINESS – None. G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. Approved by the consent agenda. 2. *Action/Approval – Purchase Orders over $15,000. Approved by the consent agenda. 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. Introduced by the consent agenda and public hearing set for June 20, 2018. 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. Introduced by the consent agenda and public hearing set for June 20, 2018. 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. Introduced by the consent agenda and public hearing set for June 20, 2018. 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. Introduced by the consent agenda and public hearing set for June 20, 2018. 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. 93 City of Kenai Council Meeting Page 9 of 13 June 6, 2018 Introduced by the consent agenda and public hearing set for June 20, 2018. 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 Budgeted Amounts to the City’s General and Airport Special Revenue Fund. Introduced by the consent agenda and public hearing set for June 20, 2018. 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). Introduced by the consent agenda and public hearing set for June 20, 2018. 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. Introduced by the consent agenda and public hearing set for June 20, 2018. 11. *Ordinance No. 3032-2018 – Increasing Estimated Revenue and Appropriations in the Water & Sewer Fund tor Utility Costs in Excess of Budgeted Amounts. Introduced by the consent agenda and public hearing set for June 20, 2018. 12. Action/Approval – First Amendment to Agreement for Janitorial Services for Kenai City Hall between the City of Kenai and Integrity Janitorial, LLC. [Clerk’s Note: This item was added to the Consent Agenda during Approval of the Agenda] Approved by the consent agenda. 13. Action/Approval – First Amendment to Agreement for Janitorial Services for Kenai Airport between the City of Kenai and Precious Janitorial Ind. [Clerk’s Note: This item was added to the Consent Agenda during Approval of the Agenda] Approved by the consent agenda. 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. [Clerk’s Note: This item was added to the Consent Agenda during Approval of the Agenda] Approved by the consent agenda. 15. Action/Approval – First Amendment to Agreement for Janitorial Services for Kenai Community Library between the City of Kenai and Precious Janitorial Ind. 94 City of Kenai Council Meeting Page 10 of 13 June 6, 2018 [Clerk’s Note: This item was added to the Consent Agenda during Approval of the Agenda] Approved by the consent agenda. 16. Action/Approval – First Amendment to Agreement for Janitorial Services for Kenai Police Department between the City of Kenai and Precious Janitorial Ind. [Clerk’s Note: This item was added to the Consent Agenda during Approval of the Agenda] Approved by the consent agenda. 17. Ac tion/Approval – Special Use Permit to Empire Airlines, Inc., for Aircraft Parking on the Apron. MOTION: Council Member Knackstedt MOVED to suspend the rules and combine agenda items G.17, G.18, G.19, and G.20 together and Council Member Glendening SECONDED the motion. VOTE: YEA: Molloy, Gabriel, Pettey, Navarre, Glendening, Knackstedt NAY: MOTION PASSED UNANIMOUSLY. MOTION: Council Member Knackstedt MOVED to approve the Special Use Permits listed in agenda items G.17, G.18, G.19, and G.20 and requested UNANIMOUS CONSENT. Vice Mayor Navarre SECONDED the motion. VOTE: There being no objections, SO ORDERED. 18. Action/Approval – Special Use Permit to CPD Alaska, LLC for Aviation Fueling on the Apron. [Clerk’s Note: This item was combined with items G.17, G.19, and G.20 and approved in one motion.] 19. Action/Approval – Special Use Permit to United Parcel Service Co., Inc. for Aircraft Loading and Parking on the Apron [Clerk’s Note: This item was combined with items G.17, G.18, and G.20 and approved in one motion.] 20. Action/Approval – Special Use Permit to Everts Air Fuel, Inc. for Aircraft Loading and Parking. [Clerk’s Note: This item was combined with items G.17, G.18, and G.19 and approved in one motion.] 95 City of Kenai Council Meeting Page 11 of 13 June 6, 2018 H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – June meeting canceled; next meeting July 12 2. Airport Commission – No report; next meeting June 14. 3. Harbor Commission – No report; next meeting June 11. It was noted the Rules and Responsibilities Sub-committee began their work and there was optimism for successful resolution of the discussion. 4. Parks and Recreation Commission – No report; next meeting June 7. It was noted that the commission didn’t meet in July and the following meeting would be in August. 5. Planning and Zoning Commission – It was reported that on May 23, the Commission recommended approval of a lease to Jim Doyle for Weaver Brothers and discussed scheduling a work session for future amendments to commercial marijuana establishments; next meeting June 13. 6. Beautification Committee – A reminder for Volunteer Plant Day was provided; next meeting September 10. 7. Mini-Grant Steering Committee – No report. I. REPORT OF THE MAYOR Mayor Gabriel reported on the following: • Congratulated the Kenai Boys Soccer team for taking championship; • Attended the Employee Appreciation Party; noted the great entertainment; • Attended Tommy Carver’s retirement party; • Provided a reminder for the upcoming Kenai Peninsula Air Fair; • Noted former resident Tom Ackerly recently passed. J. ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: • Noted Administration was holding off on the informational wake signs after the public comments from the May 16 meeting; the speakers were attending the Harbor Commission Meeting on June 11; • Noted the significant shift in the budget document which was a substantial amount of work to create each department’s documents; thanked staff and the Finance Director for their work; • Met with consultants regarding the Terminal Rehabilitation Project; consultants will present the project to Council on June 20; • Met with Senator Sullivan’s Chief of Staff to discuss the Bluff Erosion project; • Met with airport tenants to hear their concerns regarding the rehabilitation designs; • Attended the Employee Appreciation Party noting the incredible participation and organization effort; • Noted the Boys and Girls Club was the only proposer on the Recreation Center Management Agreement and were in negotiations for fees; 96 City of Kenai Council Meeting Page 12 of 13 June 6, 2018 • Were in ongoing discussions with the owners of the golf course; possibly restructuring lease; • Noted an updated schedule for the Bluff Erosion Project had been received; the district will issue their recommendation by August, then to the regional office for recommendation and finally headquarters for a decision. 2. City Attorney – S. Bloom reported on continuing education required for his licensure and the conferences he attends including Alaska Bar Association, Kenai Bar Association, American Bar Association, Alaska Municipal Attorney’s Association, and International Municipal Lawyers Association; noted he sat on the Small Community Committee of the International Municipal Lawyers Association. Further reported the Administrative Assistant was a member of the Alaska Paralegal Association and had recently participated in a conference. 3. City Clerk – J. Heinz provided an overview of recent International Institute of Municipal Clerks training and upcoming Northwest Clerks Institute training; also noted the Deputy Clerk was at Northwest Clerks Institute. Further reported that any ballot propositions to be put before the voters needed to be adopted by August 16. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) None. 2. Council Comments Vice Mayor Navarre reported he congratulated Tommy Carver on his way to the slope; the City had a tremendous asset in its employees. Noted he would be calling in for June 20 and July 5 meetings. Thanked the City Manager for amendments on the parcels of property to be sold; considering moving that the appraisals be borne by City of Kenai on both parcels. Council Member Pettey noted she attended the Employee Appreciation Party and thanked Parks and Recreation for their efforts. Council Member Glendening suggested in the future, Council engage in the budget process earlier; reported that he sat on the Kenai Peninsula Borough’s Alaska Liquefied Natural Gasline Project Advisory Committee and that the City Planner had been appointed as an alternate noting she would be a good addition. Council Member Knackstedt noted he attended the Employee Appreciation Party and Tommy Carver’s retirement party. Thanked the Airport for the Air Fair t-shirts; noted he helped get the Air Fair going 18 years ago and was looking forward to a nice day at the airport. L. EXECUTIVE SESSION – None. M. PENDING ITEMS – None. N. ADJOURNMENT 97 City of Kenai Council Meeting Page 13 of 13 June 6, 2018 There being no further business before the Council, the meeting was adjourned at 7:32 p.m.. I certify the above represents accurate minutes of the Kenai City Council meeting of June 6, 2018. _____________________________ Jamie Heinz, CMC City Clerk 98 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF : JUNE 20, 2018 VENDOR DESCRIPTION PERS PERS INTEGRITY JANITORIAL MAY SERVICE AT CITY HALL PREC IOUS JANITORIAL MAY SERVICE AT LIBRARY PRECIOUS JANITORIAL MAY SERVICE AT TERMINAL PRECIOUS JANITORIAL MAY SERVICE AT POLICE PRECIOUS JANITORIAL MAY SERVICE AT VISITOR CENTER INVESTMENTS VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT VARIOUS LIABILITY 92 ,550.38 NON-DEPARTMENTAL REPAIR & MAINTENANCE 1,389.00 LIBRARY REPAIR & MAINTENANCE 2 ,795.00 A IRPORT REPAIR & MAINTENANCE 4,495.00 POLICE REPAIR & MAI NTENANCE 978.00 VISITOR CENTER REPAIR & MAINTENANCE 928.00 MATURITY DATE AMOUNT Effect. Int. 99 FISCAL YEAR 2019 PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: JUNE 20, 2018 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT CASELLE FY19 COMPUTER SOF1WARE SUPPORT FINANCE SOF1WARE 27,225.00 SADLER PROPERTY MGMT. FY19 CONTRACTORS FEE VINTAGE POINTE PROFESSIONAL SERVICES 61,260.00 CROWLEY PETROLEUM FY19 DIESEL DELIVERED AIRPORT OPERATING SUPPLIES 52,500.00 GUARDIAN SECURITY FY19 SECURITY SERVICE AIRPORT REPAIR & MAINTENANCE 60,000.00 KENAICHAMBEROFCOMMERCEAND VISITOR CENTER FY19 FACILITY MANAGEMENT AGRMT. VISITOR CENTER PROFESSIONAL SERVICES 62,500.00 BOYS & GIRLS CLUB FY19 RECREATION CENTER SERVICES RECREATION PROFESSIONAL SERVICES 130,000.00 100 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: June 12, 2018 SUBJECT: Purchase Order Exceeding $15,000 – Caselle Software Support The purpose of this memo is to request support for a purchase order in the amount of $27,225 to Caselle, Inc. to provide software licensing and support for the City’s financial software package. This annual agreement provides the City unlimited updates and technical support. The FY2019 amount is an increase of $2,772 for two new modules that were provided for in the Budget, cemetery and court management. Your support is greatly appreciated. 101 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Kathy Romain, Senior Center Director DATE: June 13, 2018 SUBJECT: Purchase Order for Vintage Pointe Manor Contractor’s FY 19 Salary This MEMO is in reference to the purchase order in the packet for the FY 19 Vintage Pointe Manor Manager’s Contract in the amount of $61,260.00. The contract is from October 2016 through October 2019 with the possibility of two one-year extensions. I recommend the Council approve this purchase order. Thank you for your consideration. 102 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant – Airport Manager DATE: June 14, 2018 SUBJECT: Kenai Airport FY19 Purchase Orders Over $15,000 The purpose of this memo is to define the fiscal year 2019 purchase orders for the Airport: $52,500 Crowley Fuel – contract term 7/1/2018-6/30/2021 • Fuel for terminal and airfield equipment and generators $60,000 Guardian Security - contract term 3/2016-2/2019 • Security services 5 hours a day – 7 days a week $55,000 Precious Janitorial – contract 7/1/2018-6/30/2019 • Janitorial services 2 times a day and nightly – 7 days a week Please contact me if you have any questions. 103 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Christine Cunningham, Assistant to City Manager DATE: June 12, 2018 SUBJECT: Purchase Order Exceeding $15,000 – Facility Management Agreement with the Kenai Chamber of Commerce and Visitor Center The purpose of this memo is to request support for a purchase order in the amount of $62,500 to the Kenai Chamber of Commerce and Visitor Center, Inc. (KCCVCI) for management services under the Facility Management Agreement for the Kenai Visitor and Cultural Center between the City of Kenai and the KCCVCI. The City Council approved the Second Extension of the Agreement at its meeting on December 6, 2017, and the new expiration date is December 31, 2018. Pursuant to the Agreement, the City will pay KCCVCI $125,000 per calendar year for the services provided under the Agreement subject to funds appropriated for that purpose. The Annual Budget for FY19 approved by the City Council included funding for professional management services for the Visitor Center in the amount of $125,000. The amount of the Purchase Order reflects half of the budgeted amount based on the expiration of the Agreement in December. Thank you for your consideration. cc: Kenai Chamber of Commerce and Visitor Center, Inc 104 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: June 13, 2018 SUBJECT: FY19 Purchase Order Exceeding $15,000 – Facility Management Agreement with Boys & Girls Club of the Kenai Peninsula ____________________________________________________________________________ The purpose of this memo is to request authorization for a purchase order in the amount of $130,000 to the Boys and Girls Club of the Kenai Peninsula for Facility Management Services per Resolution No. 2018-35. Term of services will be from July 1, 2018 to June 30, 2019. The FY19 Annual Budget approved by the City Council includes funding in Professional Services for management services. Thank you for your consideration. cc: Kenai Boys and Girls Club of the Kenai Peninsula 105 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant DATE: June 11, 2018 SUBJECT: Action/Approval – Special Use Permit for Alaska Air Fuel Alaska Air Fuel, Inc. is requesting renewal of the Special Use Permit for aircraft parking on approximately 15,000 square feet of the apron. The special use permit will be effective for one year from July 1, 2018 to June 30, 2019. 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 Alaska Air Fuel is current on all fees owed and the Airport has a valid Certificate of Insurance on file. Airport Commission reviewed the request at the June 14, 2018 meeting and recommends Council approval. Does Council recommend the City Manager enter into a Special Use Permit with Alaska Air Fuel, Inc. for aircraft parking? Attachment 106 SPECIAL USE PERMIT -2018 The CITY OF KENAI (City) grants to ALASKA AIR FUEL, INC . (Permittee), whose address is P.O. Box 360, Palmer, AK 99645, a Special Use Permit to conduct aeronautical and/or aviation-r elated 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 15 ,000 square feet as described in the attached Exhibit A fo r the u ses 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 $1 ,087 .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 F ees: City may assess additional fees for aviation or aviation support acti vities and uses not defined in this Permit. If a fee bas not been established for those activities or services, a fee will be established b y the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 F idalgo 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 pe1mit 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 thi s Permit. (See ~ 22 , Termination) Special Use Permit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 1 of9 107 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 of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to oth er 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. Special Use Permit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 2 of9 108 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 Airp01i 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 Pennit 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. Pennittee shall submit to the City proof of continuous insurance Special Use Pennit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 3of9 109 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. m . 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 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 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 Pennit. Special Use Permit-Alaska Air Fuel , Inc . (Apron Aircraft Parking) Page 4 of9 110 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 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 imprisonment for knowing violations. Pem1ittee 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 fue l 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 . Perrnittee 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-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 5of9 111 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. Pennittee 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 Pennit, 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 Pe1mit 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 thereat). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Pennit 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 Special Use Permit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 6 of9 112 is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 22. T ermination; Default. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 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 Pennittee. 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 sev en days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means Alaska Air Fuel, Inc. and where the context reasonably indicates , its officers, agents , and employees . "Airport" means the Kenai Municipal Airport. CITY OF KENAI ALASKA AIR FUEL, INC. Special Use Pennit-Alaska Ai r Fuel , Inc . (Apron Aircraft Parking) Page 7of9 113 Paul Ostrander City Manager Date By: __________ _ John Sliwinski Vice President Date 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 John Sliwinski, Vice President, Alaska Air Fuel, Inc., on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: ____ _ ATTEST: Jamie Heinz, City Clerk SEAL: Special Use Pennit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 8 of9 114 Scott M. Bloom, City Attorney Special Use Permit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 9 of9 115 .. • Exh ibit A Alaska Air Fuel 15,000 sqft I . I 116 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant DATE: June 11, 2018 SUBJECT: Action/Approval – Special Use Permit to HDL Engineering Consultants, LLC HDL Engineering Consultants, LLC, has requested renewal of the special use permit for a soils test lab and equipment storage. They have been leasing this area since April 2016. This special use permit will be effective July 1, 2018 to June 30, 2019. HDL is current in all fees owed to the Airport and a current Certificate of Insurance is on file. Airport Commission reviewed the request at the June 14, 2018 meeting and recommends Council approval. Thank you for your consideration. Does Council recommend the City Manager enter into a Special Use Permit with HDL Engineering Consultants, LLC, for a building and ground lease? Attachment 117 SPECIAL USE PERMIT 2018 THE CITY OF KENAI (City) for the considerations and pursuant to the conditions and requirements set forth below, hereby grants to HDL ENGINEERING CONSULT ANTS, LLC (Permittee), whose address is 10735 Kenai Spur Highway, Suite lB, Kenai , AK 99611, the non-exclusive right to use that area described below: Tract A FBO Subdivision consisting of approximately 8,040 square feet in the northwest comer (the Premises), including the approximately 930 square feet building located thereon. and as further shown in the attached Exhibit A. 1. TERM. This special use permit shall commence on July 1, 2018 and terminate June 30, 2019. 2. PERMIT FEES. The Permittee shall pay a permit fee of $544.00 plus applicable sales tax per month ($419.00 for building and land rent and $125 .00 for electricity for the term of this Permit). In addition, the Permittee shall be charged $88.06 per month for water and sewer until June 30, 2019. Permittee shall pay the City the monthly fee on or before the first day of each month beginning July 2018. Checks , bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, 210 Fidalgo Avenue, Kenai, Alaska 99611 on or before the first of each month. In addition to the permit fee specified above, Permittee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: A. Sales tax now enforced, or levied in the future, computed upon the permit fee payable in monthly installments whether said fee is paid on a monthly or yearly basis; B. All necessary licenses and permits, pay all lawful taxes and assessments which, during the term hereof may become a lien upon or which may be levied by the State, Borough, City, or by any other tax levying body, upon any taxable possessory right which Permittee may have in or to the Premises by reason of its use or occupancy or by reason of the terms of this Permit, Special Use Permit-HDL Engineering Consultants, LLC Page 1of6 118 provided however, that nothing herein contained shall prevent Permittee from contesting any increase in such tax or assessment through procedures provided for by law . C. Interest at the rate of 8% per annum and penalties of 10% of any amount of money owed under this Special Use Permit, which money or fee not paid on or before the date it becomes due. D. Costs and expenses incident to this Special Use Permit including, but not limited to, recording costs . 3. USE. The use of the Premises by Permittee is limited to the purposes specified herein: Permittee shall use the Premises only for a Soils test lab and equipment storage. Any and all needed building or site modifications must be separately approved in writing by the Airport Manager and the site and existing improvements must be restored to as good or better condition than the site and improvements were in prior to modification by Permittee. This use 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. 4. INSURANCE. Permittee shall secure and keep in force adequate insurance , as stated below, to protect City and Permittee. Where specific limits are stated , the limits are the minimum acceptable limits. If 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 Special Use Pennit-HDL Engineering Consultants, LLC Page 2of6 119 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. it. 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. m . 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 tennination, 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. 5. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages , costs, liability, claims, losses , judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with its use of the Premises. The Permittee shall not be required to indemnify, defend , and hold harmless , the City of Kenai , its officers , agents , employees, and volunteers for the independent negligence of the City of Kenai. If there are Liabilities for the joint negligent act, or omission, or willful misconduct of the Special Use Permit-HDL Engineering Consultants, LLC Page 3of6 120 Permittee and the City of Kenai , the indemnification and hold harmless obligation shall be apportioned on a comparative fault basis. 6. PERMITTEE'S OBLIGATION TO PREVENT AND REMOVE LIENS. Permittee will not permit any liens including, but not limited to, mechanics', laborers', material men's, or mining liens or any other liens obtainable or available under existing law, to stand against the Premises or improvements on the Premises for any labor or material furnished to Permittee or to any related entity or claimed to have been furnished to Permittee or to the Permittee 's agents, contractors, or related entities , in connection with materials supplied to Permittee for its activities on the Premises and/or in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Permittee. Provided, however, the Permittee shall have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien . Upon a final determination of the lien or claim for lien, the Permittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Permittee' s own expense. 7. PERSONALITY. Pem1ittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and /or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai i s not responsible for any damage to or theft of any personal property of Permittee or of its customers . 8. FORBEARANCE. Failure to insist upon a strict compliance with the terms, conditions , and/or any requirement herein contained, or referred to , shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms , conditions or requirements. 9. TERMINATION; DEFAULT. This Pennit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. Special Use Permit-HDL Engineering Consultants, LLC Page 4of6 121 10. NO DISCRIMINATION. Permittee will not discriminate on the grounds of race , color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law . Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 11. ASSIGNMENT. Permittee may not assign, by grant or implication, the whole or any part of this Permit, the Premises , or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Permittee responsible for performing any obligation under this Permit which an assignee fails to perform. 12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume all risks incurred in its use of the Premises . 13. NO JOINT VENTURE. The City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises. 14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this permit shall survive the cancellation, termination or expiration of this permit. 15. AUTHORITY. By signing this Pem1it, Permittee represents that it has read this agreement and it agrees to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the company to bind the company hereunder. CITY OF KENAI By :~~~~~~~~~~ Paul Ostrander City Manager HDL ENGINEERING CONSULT ANTS, LLC By: ~~~~~~~~~~ Dennis Linnell Principal Civil Engineer Special Use Permit-HDL Engineering Consultants, LLC Page 5of6 122 ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the __ day of , 2018 , Paul Ostrander, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires : ____ _ STATE OF ALASKA ) ) SS . THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of 2018, the foregoing instrument was acknowledged before me by Dennis Linnell, Principal Civil Engineer, HDL Engineering Consultants , LLC, on behalf of the Company. Notary Public for Alaska My Commission Expires: ____ _ ATTEST: Jamie Heinz, City Clerk SEAL: APPROVED AS TO FORM: ~) --Scott M . Bloom, City Attorney Special Use Permit-HDL Engineering Consultants, LLC Page 6of6 123 Tract A FBO Subdivision 0 75 150 300 Feet City of Kenai Shop Yard HDL Engineering Special Use Permit Area .Jv ~ W*'E ~ Exhibit A 8 'V' The information depicted here on is for graphic representation only of t he best ava ilable sources. The City of Kenai as sumes no responsibility for errors on this map. 124 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant DATE: June 11, 2018 SUBJECT: Action/Approval – Special Use Permit to Reddi Towing & Salvage, LLC Charles Rediski, owner of Redding Towing & Salvage, LLC, has requested renewal of the special use permit for an impound yard. Mr. Rediski has used this as an impound lot since 2007. This special use permit will be effective July 1, 2018 to June 30, 2019. Mr. Rediski is current in all fees owed to the Airport and a current Certificate of Insurance is on file. Airport Commission reviewed the request at the June 14, 2018 meeting and recommends Council approval. Thank you for your consideration. Does Council recommend the City Manager enter into a Special Use Permit with Redding Towing & Salvage, LLC for an impound lot? Attachment 125 SPECIAL USE PERMIT 2018 THE CITY OF KENAI (City) for the considerations and pursuant to the conditions and requirements set forth below, hereby grants to REDDI TOWING & SALVAGE, LLC (Pennittee), whose address is P.O. Box 7079, Nikiski , AK 99635 , the non-exclusive right to use that area described below : Lot 4, Block 5, Cook Inlet Industrial Park and adjacent 50 ' wide right-of-way, according to Plat No. 1448 (the Premises), and as further shown in the attached Exhibit A. 1. TERM. This special use pennit shall commence on July 1, 2018 , and terminate June 30,2019 2. PERMIT FEES. The Pennittee shall be charged a pennit fee of$405 plus applicable sales tax per month this Pennit is in effect. Permittee shall pay the City the monthly fee on or before the first day of each month beginning July 1, 2018 . Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, 210 Fidalgo A venue, Kenai, Alaska 99611 on or before the first of each month. In addition to the permit fee specified above, Permittee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: A. Sales tax now enforced, or levied in the future , computed upon the permit fee payable in monthly installments whether said fee is paid on a monthly or yearly basis ; B. All necessary licenses and permits , pay all lawful taxes and assessments which, during the term hereof may become a lien upon or which may be levied by the State, Borough, City, or by any other tax levying body, upon any taxable possessory right which Pennittee may have in or to the Premises by reason of its use or occupancy or by reason of the terms of this Permit, provided however, that nothing herein contained shall prevent Permittee from contesting any increase in such tax or assessment through procedures provided for by law. Special Use Pem1it-Reddi Towing & Salvage, LLC Page 1of6 126 C. Interest at the rate of 8% per annum and penalties of 10% of any amount of money owed under this Special Use Permit, which money or fee not paid on or before the date it becomes due. D. Costs and expenses incident to this Special Use Permit including, but not limited to, recording costs. 3. USE. The use of the Premises by Permittee is limited to the purpose specified: Impound Lot. This use is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. Use of the Premises is subject to the following conditions: A. Permittee shall maintain the fence on the Premises in good repair. Any fence repair and/or maintenance shall be completed from inside the fence. B. Permittee shall use the Premises only for the storage of impounded vehicles (no wrecked or junk vehicles). 4. INSURANCE. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Garage Liability or Conunercial 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. Pem1ittee 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. Special Use Pem1it-Reddi Towing & Salvage, LLC Page 2of6 127 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. 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 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 . vi. This insurance shall be primary and exclusive of any other insurance carried by the City of Kenai. This insurance shall be without limitation on the time within which the resulting loss , damage, or injury is actually sustained. 5. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers , agents , employees, and volunteers from and against all actions, damages , costs , liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively refeITed to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with its use of the Premises. This shall be a continuing release and shall remain in effect after termination ofthis Special Use Permit. 6. PERMITTEE'S OBLIGATION TO PREVENT AND REMOVE LIENS. Permittee will not permit any liens including, but not limited to , mechanics ', laborers ', material men's, or mining liens or any other liens obtainable or available under existing Special Use Pennit-Reddi Towing & Salvage, LLC Page 3of6 128 law, to stand against the Premises or improvements on the Premises for any labor or material furnished to Permittee or to any related entity or claimed to have been furnished to Permittee or to the Permittee's agents, contractors, or related entities, in connection with materials supplied to Permittee for its activities on the Premises and/or in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Permittee. Provided, however, the Permittee shall have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. Upon a final determination of the lien or claim for lien, the Permittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Permittee's own expense. 7. PERSONALITY. Permittee shall remove any and all personal property, including all vehicles , from the Premises at the termination of this 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 . 8. FORBEARANCE. Failure to insist upon a strict compliance with the terms , conditions, and/or any requirement herein contained, or referred to , shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms , conditions or requirements . 9. TERMINATION; DEFAULT . This Pem1it may be terminated by either party hereto by giving 60 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 60 days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Pe1mit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 10. NO DISCRIMINATION. Permittee will not discriminate on the grounds of race, color , religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law. Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 11. ASSIGNMENT. Permittee may not assign , by grant or implication, the whole or Special Use Permit-Reddi Towing & Salvage, LLC Page 4of6 129 any part of this Pem1it, the Premises, or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Permittee responsible for performing any obligation under this Permit which an assignee fails to perform. 12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume all risks incurred in its use of the Premises. 13. NO JOINT VENTURE. The City shall not be constrned or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises. 14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this pennit shall survive the cancellation, termination or expiration of this permit. 15. AUTHORITY. By signing this Permit, Permittee represents that it has read this agreement and it agrees to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the company to bind the company hereunder. CITY OF KENAI REDD I TOWING & SALVAGE LLC By: ----------By: ----------Paul Ostrander Ch a rl es Rediske City Manager Member ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the __ day of , 2018 , Paul Ostrander, City Manager, of the City of Kenai , an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: ____ _ Special Use Pennit-Reddi Towing & Salvage, LLC Page 5of6 130 STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2018 , the foregoing instrument was acknowledged before me by Charles Rediske, Member of Reddi Towing & Salvage, LLC, and Alaska limited liability company, on behalf of the Company. Notary Public for Alaska My Conunission Expires: ____ _ ATTEST: Jamie Heinz, City Clerk SEAL: APPROVED AS TO FORM: Sco tt M. Bloom, City Attorney Y :\Airport\SUP\Reddi Towing\2017 0317 Reddi Towing SUP .docx Special Use Permit-Reddi Towing & Salvage, LLC Page 6of6 131 TR.A TR. A-1 Exhibit A 132 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3033-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROPRIATING TRANSFERS FOR FY2019 BUDGETED CAPITAL PROJECTS IN THE PUBLIC SAFETY CAPITAL PROJECT FUND, THE KENAI RECREATION CENTER IMPROVEMENTS CAPITAL PROJECT FUND, THE VINTAGE POINTE MANOR CAPITAL PROJECT FUND, AND THE WATER & SEWER CAPITAL PROJECT FUND. WHEREAS, at its June 6, 2018 meeting, Council adopted the FY2019 Citywide Budget which included $293,900 in transfers to fund capital projects; and, WHEREAS, $35,000 from the General Fund was appropriated to the Public Safety Capital Project Fund for remodel of the Fire Department’s kitchen; and, WHEREAS, $27,500 from the General Fund was appropriated to the Kenai Recreation Center Improvements Capital Project Fund to supplement $38,000 of remaining grant funds for painting of the building’s exterior, hot water system replacement and retiling of locker room showers; and, WHEREAS, $121,000 from the Vintage Pointe Manor Enterprise Fund was appropriated for completion of the fire control system upgrade project, $96,000 and design of a project to replace the facility’s boiler/hot water system, $25,000; and, WHEREAS, $110,400 from the Water & Sewer Special Revenue Fund was appropriated for Water Reservoir #1 telemetry upgrades; and, WHEREAS, appropriation is required in the individual capital project funds prior to funds being expended. 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: Public Safety Capital Project Fund: Increase Estimated Revenues – Transfer from General Fund $35,000 Increase Appropriations – Fire Department Kitchen Remodel Construction $35,000 Section 2. That the estimated revenues and appropriations be increased as follows: Kenai Recreation Center Improvements Capital Project Fund: 133 Ordinance No. 3033-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Increase Estimated Revenues – Transfer from General Fund $27,500 Increase Appropriations – Construction $27,500 Section 3. That the estimated revenues and appropriations be increased as follows: Vintage Pointe Manor Capital Project Fund: Increase Estimated Revenues – Transfer from Vintage Pointe Manor Enterprise Fund $121,000 Increase Appropriations – Fire Control System Upgrade - Construction $ 96,000 Boiler/hot water system replacement design 25,000 $121,000 Section 4. That the estimated revenues and appropriations be increased as follows: Water & Sewer Improvements Capital Project Fund: Increase Estimated Revenues – Transfer from Water & Sewer Special Revenue Fund $110,400 Increase Appropriations – Water Reservoir #1 Telemetry Upgrades Construction $110,400 Section 5. 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 6. 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 5 day of July, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk Introduced: June 20, 2018 Enacted: July 5, 2018 Effective: July 5, 2018 134 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: April 20, 2018 SUBJECT: Ordinance 3033-2018 – Appropriation of FY2019 Budget Capital Projects ____________________________________________________________________________ The purpose of this memo is to provide supporting information for Ordinance 3033-2018. Ordinance 3033-2018 will appropriate funds transferred from the General, Water & Sewer Special Revenue, and Vintage Pointe Manor Enterprise Funds for capital projects in the FY2019 Budget. Funds transferred by other funds require appropriation prior to expending in the fund receiving the transfers. The FY2019 Budget appropriated a transfer of $35,000 from the General Fund to the Public Safety Capital Project Fund for remodel of the Fire Department’s kitchen. $27,500 was transferred from the General Fund to the Kenai Recreation Center Improvements Capital Project Fund to provide supplemental funding for a project to replace the facility’s hot water system, refinish the building’s exterior, and retile locker room showers. The transfer will be combined with approximately $38,000 of remaining State of Alaska grant funds to complete these projects. Shower retiling is estimated to cost $12,500, exterior refinishing of the facility $22,130, and hot water system replacement $30,870. $121,000 was transferred from the Vintage Pointe Manor Enterprise Fund to the Vintage Pointe Manor Capital Project Fund for completion of the fire control panel upgrade, $96,000 and for design of a project to replace the facility’s aging boiler/hot water system, $25,000. $110,400 was transferred from the Water & Sewer Special Revenue Fund to the Water & Sewer Improvements Capital Project Fund for telemetry upgrades at Water Reservoir #1. In addition to these amounts, $45,670 was transferred from the General Fund to the Senior Citizens Special Revenue Fund for carpet and tile replacement, $34,500 and dishwasher replacement, $11,170. Appropriation of these amounts was accomplished by adoption of the FY2019 Budget and no subsequent action is required. 135 A $200,000 transfer was appropriated from the General Fund for Kenai Road Improvements to be identified. This amount will take future Council action to appropriate once projects and estimated costs are identified. Passage of this Ordinance will allow each of these projects to proceed and you support is respectfully requested. 136 KENAI HARBOR COMMISSION SUB-COMMITTEE MAY 29, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MEETING SUMMARY 1. CALL TO ORDER Commissioner DuPerron called the meeting to order at 6:03 p.m. a. Pledge of Allegiance Commissioner DuPerron led those assembled in the Pledge of Allegiance. b. Roll Call Commissioners present: N. DuPerron, C. Crandall, M. Dunn Commissioners absent: Staff/Council Liaison present: Public Works Assistant K. Feltman, Council Member J. Glendening A quorum was present. c. Agenda Approval MOTION: Commissioner Dunn MOVED to approve the agenda and Commissioner Crandall SECONDED the motion. There were no objections; SO ORDERED. d. Elect Chair and Vice Chair Commissioner Crandall nominated Commissioner DuPerron for Chair. Commissioner DuPerron nominated Commissioner Crandall as Vice-Chair. There were no objections. 2. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) 3. APPROVAL OF MEETING SUMMARY – None. 4. UNFINISHED BUSINESS - None. 5. NEW BUSINESS a. Discussion – Background and Purpose Council Member Glendening noted on the purpose of the Sub-Committee was to determine the Roles and Responsibilities of the Harbor Commission. He referenced previous City Manager R. Koch memo summary of roles and responsibility, as provided in a recent Harbor Commission packet. The Sub-Committee discussed Harbor Commission functions, including: Safety Issues, the Dock Facility, Bluff Erosion, and Personal Use Fishery. Additional discussion included 137 Harbor Sub-Committee Meeting May 29, 2018 Page 2 of 2 duplicating efforts with the Planning and Zoning Commission on tide land leases, a seasonal Harbor Master, Corps of Engineers, No-Wake Zones; a review of Kenai Municipal Code (KMC) Title 11, and land sales and leasing policies. Council Member Glendening advised members to read the KMC Title 11 prior to the next meeting. It was noted that the expiration of this sub-committee was December 2018 and the final recommendations needed to be specific. b. Discussion – Identification of Needs of Support from Administration It was noted that Public Works Assistant would be the Administration Support for the Sub- Committee. c. Discussion – Schedule for Next & Subsequent Meetings Dates for the next meetings was discussed and would be scheduled for June 12, June 26, July 24, August 7, and August 21 at 6:00 p.m. It was requested of administration to send calendar reminders. 6. DISCUSS PURPOSE OF NEXT MEETING Members discussed reading the handouts in recent Harbor Commission packets, review all of KMC Title 11, previous City Manager Koch’s memo summary, related Ordinances, and to discuss all at the next meeting. 7. SET NEXT MEETING / ATTENDANCE NOTIFICATION – June 12, 2018 8. PUBLIC COMMENTS – None. 9. MEMBER COMMENTS AND QUESTIONS Chair DuPerron thanked everyone for attending the meeting. 10. ADJOURNMENT There being no further business before the Sub-Committee, the meeting was adjourned at 6:54 p.m. Meeting summary prepared and submitted by: _____________________________________ Jacquelyn Kennedy Deputy City Clerk 138 KENAI PARKS & RECREATION COMMISSION JUNE 7, 2018 – 7:00 PM KENAI CITY COUNCIL CHAMBERS VICE-CHAIR NOEL WIDMAYER, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Vice-Chair Widmayer called the meeting to order at 7:10 p.m. a. Pledge of Allegiance Vice-Chair Widmayer led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Commissioners present: Vice-Chair N. Widmayer, T. Wisniewski, S. Kisena Commissioners absent: Chair C. Stephens, J. Halstead, J. Joanis, F. Perez Staff/Council Liaison present: Parks & Rec Director B. Frates No quorum was present. c. Agenda Approval 2. SCHEDULED PUBLIC COMMENTS – None. 3. UNSCHEDULED PUBLIC COMMENT 4. APPROVAL OF MEETING SUMMARY a. May 3, 2018 5. UNFINISHED BUSINESS – None. 6. NEW BUSINESS a. Municipal Park Trails 7. REPORTS a. Parks and Recreation Director b. Commission Chair c. City Council Liaison 8. NEXT MEETING ATTENDANCE NOTIFICATION – August 2, 2018 9. COMMISSION QUESTIONS & COMMENTS 139 Parks and Recreation Commission Meeting June 7, 2018 Page 2 10. ADDITIONAL PUBLIC COMMENT 11. INFORMATION – None. 12. ADJOURNMENT Meeting summary prepared and submitted by: _____________________________________ Jacquelyn Kennedy Deputy City Clerk 140 KENAI PLANNING & ZONING COMMISSION REGULAR MEETING JUNE 13, 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, D. Fikes, K. Peterson, G. Greenberg, J. Halstead, V. Askin Commissioners absent: Staff/Council Liaison present: City Manager P. Ostrander, City Planner E. Appleby, Deputy City Clerk J. Kennedy, Planning Assistant W. Anderson, Council Liaison H. Knackstedt A quorum was present. c. Agenda Approval Chair Twait noted the following addition to the packet: Add to item 8.c. Resolution PZ17-30 • Soil Sample Report MOTION: Commissioner Askin MOVED to approve the agenda with the addition for Item 8(c) as noted and Commissioner Peterson SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Peterson MOVED to approve the consent agenda and Commissioner Springer 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 141 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 2 of 6 June 13, 2018 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: May 23, 2018 The minutes were approved by the Consent Agenda. 3. SCHEDULED PUBLIC COMMENT: (10 minutes) None scheduled. 4. UNSCHEDULED PUBLIC COMMENT: (3 minutes) Bruce Richards, Kenai resident, expressed opposition in PZ17-30 and noted he intended to speak at the public hearing if the application was deemed complete. 5. CONSIDERATION OF PLATS – None. 6. PUBLIC HEARINGS a. Resolution PZ2018-16 - Application for a Conditional Use Permit to operate a Retail Marijuana Store located on the property known as 14429 Kenai Spur Highway, Kenai, Alaska 99611; and further described as Lot 4, Block 1, Bush Lanes Subdivision. Application submitted by: Clint Pickarsky, Registered Agent for KRC LLC d/b/a Kenai River Cannabis, P.O. Box 1016, Soldotna, Alaska 99669 City Planner Appleby reviewed the staff report and noted the existing building was constructed in 1979 for a convenience store, and more recently used by Metal Magic. Appleby added that the applicant did not intend on changing the design and only intended on using 925 sq. ft. of the building for the commercial retail store. Appleby noted that the applicant was aware that this would not include a cultivation facility, and that the lot adjacent to the property was owned by the applicant so it may be used as a parking area. Appleby added that the City received two formal complaints, as provided in the packet, objecting this application and one informal phone call complaint. COMMISSIONER HALSTEAD ARRIVED AT 7:08 P.M. City Planner Appleby recommended based on the application and a review of the criteria required that the proposed Conditional Use Permit for the establishment and operation of a Commercial Marijuana Establishment consisting of a Retail Marijuana Store be approved, subject to the following conditions, as outlined in the packet: • Further development of the property shall conform to all State and local regulations; • A building permit will be required for the remodeling of the Commercial Marijuana Establishment as shown on the submitted floor plan; • Prior to operation of the Commercial Marijuana Establishment, the property owner shall submit a copy of an approved Business License issued by the State of Alaska, Department of Commerce, Community, and Economic Development; • Prior to operation of the Commercial Marijuana Establishment, the applicant shall submit a copy of the approved and fully executed license from the Alaska Alcohol & Marijuana 142 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 3 of 6 June 13, 2018 Control Board. The applicant shall comply with all regulations as stipulated by the State of Alaska Marijuana Control Board; • Pursuant to Kenai Municipal Code Section 14.20.330(e), the Commercial Marijuana Establishment shall not emit an odor that is detectable by the public from outside the Commercial Marijuana Establishment; • A Sign Permit will be required for the construction of any proposed signage; • The hours of operation shall be from 9:00 AM to 9:00 PM, Monday through Sunday; and • Pursuant to Kenai Municipal Code Section, 14.20.150(f) the applicant shall submit an Annual Report to the City of Kenai. MOTION: Commissioner Peterson MOVED to approve Resolution No. PZ2018-16 with staff recommendations and Commissioner Askin SECONDED the motion. Chair Twait opened the floor for public testimony; there being no one wishing to be heard, public comment was closed. VOTE: YEA: Springer, Peterson, Fikes, Askin, Greenberg, Twait, Halstead NAY: MOTION PASSED UNANIMOUSLY. Chairman Twait noted there was a 15-day appeal period. 7. UNFINISHED BUSINESS – None. 8. NEW BUSINESS: a. Discuss and Recommendation - Airport Reserve Land Lease Application for property located at 209 N. Willow Street, Kenai, Alaska 99611; further described as a portion of Tract A, General Aviation Apron No. 2, submitted by SOAR International Ministries, Incorporated City Planner Appleby reported that SOAR International Ministries, Incorporated (SOAR) submitted a lease application to develop a hangar, office, and parking on the undeveloped portion of Tract A, General Aviation Apron No. 2 within the Airport Reserve. She noted the proposed lease term is 45 years to start in September 2018 and SOAR would build on the portion of the lot that was currently treed, and would need to be subdivided prior to construction. She added that SOAR was current on rent payments of the three lots it currently leases within the Airport Reserve from the City. Appleby noted that Airport Manager Mary Bondurant reviewed the lease application and agreed it was consistent with the Airport Land Use Plan, Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program grant assurances, and Airport operations. She added the Airport Commission would also review the lease application at their July 12 meeting. MOTION: 143 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 4 of 6 June 13, 2018 Commissioner Peterson MOVED to recommend approval to Council of the Airport Reserve Land Lease Application by SOAR and Commissioner Halstead SECONDED the motion. VOTE: YEA: Halstead, Peterson, Fikes, Askin, Greenberg, Twait, Springer NAY: MOTION PASSED UNANIMOUSLY. b. Resolution PZ2018-03 - Application for a Conditional Use Permit to operate an approximately 498 square-foot Marijuana Cultivation Facility, Limited, within an existing approximately 1,252 square foot attached garage; located on the property known as 1817 Sunset Blvd., Kenai, AK 99611, and further described as G. L. 5, Section 26, Township 6 North, Range 12 West. Application submitted by: Jennifer Huffman, d/b/a Grateful Buds LLC, 40095 Lamont St., Kenai, Alaska 99611 City Planner Appleby noted on February 28, 2018, the Planning and Zoning Commission passed Resolution PZ2018-03 for a Conditional Use Permit to operate an approximately 500 square foot Marijuana Cultivation Facility, Limited, within an existing approximately 1,252 square-foot attached garage. Appleby noted the detached garage would not be constructed and an addition to the resolution would be the requirement that an approved business license issued by the State of Alaska be submitted. Appleby clarified that the changes were to correct clerical errors in the resolution so that the permit accurately reflected the intended use and would include the requirement that the City of Kenai receive a copy of the business license. MOTION: Commissioner Springer MOVED amend something previously adopted by replacing with the substitute resolution PZ2018-03 and Commissioner Greenberg SECONDED the motion. VOTE: YEA: Peterson, Fikes, Askin, Greenberg, Twait, Springer, Halstead NAY: MOTION PASSED UNANIMOUSLY. c. Resolution PZ17-30 - Conduct Completeness Review of the updated application submitted by Dr. Lavern Davidhizar for a Conditional Use Permit for Extraction of Natural Resources pursuant to Kenai Municipal Code 14.20.152 AND schedule the application for a Public Hearing on June 27, 2018. Said application affects property located at 4905 Silver Salmon Dr., and further described as a portion of Government Lots 1 and 9, and a portion of the NE ¼ of Section 7, Township 5 North, Range 10 West lying West of Spur Highway and East of the Kenai River (Kenai Borough Parcel No. 04937136) City Planner Appleby clarified the purpose of this item was to review the materials submitted for completeness, not debate the permit request. Appleby reviewed the staff report and provided the application history. She noted the laydown material fulfilled the previous request of the Planning and Zoning Commission for additional soil surveys. 144 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 5 of 6 June 13, 2018 Commissioners agreed the application was complete and expressed support in a public hearing as recommended by staff. MOTION: Commissioner Greenberg MOVED to deem the Conditional Use Permit application by Dr. Davidhizar complete and schedule a public hearing on June 27; Commissioner Askin SECONDED the motion. VOTE: YEA: Fikes, Askin, Greenberg, Twait, Springer, Halstead, Peterson NAY: MOTION PASSED. 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Knackstedt reviewed the action agenda from the June 6 City Council Meeting; noted the FY2019 budget was approved. b. Borough Planning – Commissioner Fikes reported that the Commission met on June 11; noted four plats were approved, one was a final approval, three were preliminary; there were two limited marijuana cultivation facility applications, one was in the Ninilchik area and one was in the Kasilof area, both were recommended to the Assembly for approval; and there was one conditional land use permit for material site modification that was approved. c. Administration – City Planner Appleby noted that there would likely be a series of work sessions upcoming to discuss the Kenai Zoning Code and Land Use Table for marijuana in addition to possibly modifying the Kenai Sign Code, clarifying it was not sufficient and could use revamping. Appleby also reported on the following: • The lease map for available parcels within the airport reserve was now available online; • She attended the Kenai Peninsula Borough Alaska L&G Work Committee meeting for Council Member Glendening and a motion was made for the Mayor to request that Alaska Gasline Development Corporation investigate some additional water sources; • She attended a conference for the FAA and gained useful information regarding airport land leases and sales; and • The City is preparing for the upcoming Dipnet Season and she recommended everyone download the Dip Kenai app. City Manager Ostrander clarified that the May 14 deadline for Resolution PZ17-30 was originally established to get this meeting’s review scheduled. He noted that the applicants were allowed to submit materials up until the meeting date and clarified that the decision at the public hearing on June 27 would be based on the materials provided at this meeting. Additional information from 145 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 6 of 6 June 13, 2018 the applicant would not be forthcoming. 11. ADDITIONAL PUBLIC COMMENT Kenai Resident, John Hamilmen spoke in opposition of the Resolution No. PZ17-30. He noted some of the supporting materials in the application packet were deceptive, specifically on page 102 of the packet, Wetlands Investigation. He noted that it was only one of 52 pages available with clearer and more detailed views, if requested. Mr. Hamilmen further noted on page 109 of the packet, the cover letter by the Alaska Consulting and Environmental Engineering on behalf of property owner, Travis Hall, requested Alaska Department of Environmental Conservation (ADEC) plan approval of the proposed wastewater system. He clarified that he contacted ADEC to find out if it was approved but there was no information available about it or even the fees that would be associated with it. Mr. Hamilmen added he then contacted the Waste Water Division and they were unable to find that it was ever processed. He clarified that page 109 was simply a cover letter requesting approval and it means nothing. His final point regarded his contact with the Conservation Fund of Alaska and their interest in purchasing the wetlands down below. He noted they would pay fair market value, even with the current pad in place; if any additional work were done there though, the Conservation Fund would no longer be interested. Mr. Hamilmen advised the City to contact the Conservation Fund as well as the Nature Conservancy. 12. INFORMATIONAL ITEMS – None. 13. NEXT MEETING ATTENDANCE NOTIFICATION: June 27, 2018 City Planner Appleby noted an upcoming site visit on Tuesday, June 19 at 6:00 p.m. to the neighborhood and proposed gravel extraction site as in Dr. Davidhizar’s application. 14. COMMISSION COMMENTS & QUESTIONS Commissioner Fikes thanked the City Manager for clarification on policy and procedures moving forward with the application. 15. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:51 p.m. Minutes prepared and submitted by: _____________________________ Jacquelyn Kennedy Deputy City Clerk 146 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant – Airport Manager DATE: June 11, 2018 SUBJECT: June Mid-month Report 2016 Fencing Rehabilitation – Awaiting FAA approval to advertise. 2017 Terminal Rehabilitation Project – Design Grant – City Administration, WCB along with sub- consultants, and terminal tenants met to review the proposed design. The mechanical/electrical consultants set up individual meetings with tenants to address their electrical and IT needs. The 65% plans and specs will be presented to the City around the end of June. In-house Activities – Operations staff is busy with landscaping, mowing, crack sealing, and equipment maintenance. The 18th annual KPAF was a big success with good weather, lots of people, and lots of airplanes. Thank you to everyone that volunteered their time! Thirty-seven pilots and passengers participated in the poker run with fifteen winning prizes. The EAA once again provided a great breakfast! Thank you to the 168th from Eielson Air Force Base, Air Station Kodiak, Commemorative Air Force Warbirds, Life Med, Civil Air Patrol and Forestry for displaying their aircraft. Live music was provided by Eric Douquet. Thank you to Mayor Gabriel and Councilors Glendening, Petty, Knackstedt, and Navarre! 147 MEMORANDUM TO: Paul Ostrander, City Manager THROUGH: Dave Ross, Police Chief FROM: Jessica “JJ” Hendrickson, Animal Control Chief DATE: 06/01/18 SUBJECT: May 2018 Animal Control Monthly Report This month the Kenai Animal Shelter took in 70 animals. Animal intake and disposition: DOGS: INTAKE 39 DISPOSITION 27 Waiver 15 Adopted 12 Stray 18 Euthanized 6 Impound 2 Claimed 9 Protective Custody 2 Field Release 0 Quarantine 0 Transferred to Rescue 0 Other Intakes 2 Other Dispositions 0 CATS: INTAKE 31 DISPOSITION 33 Waiver 15 Adopted 15 Stray 16 Euthanized 3 Impound 0 Claimed 1 Protective Custody 0 Field Release 0 Quarantine 0 Transferred to Rescue 14 Other Intakes 0 Other Dispositions 0 OTHER ANIMALS: INTAKE 0 DISPOSITION 1 Rabbit 1 DOA: 4 OTHER STATISTICS: Dog 2 Licenses (City of Kenai Dog Licenses) 9 Cat 2 Microchips (Dog and Cat) 3 148 Page 2 of 2 2 Citations 6 Animal dropped with After Hours (days we are closed but cleaning and with KPD) 41.05 Volunteer Hours Logged 18 Animals are known borough animals 47 Field Investigations & patrols Statistical Data: 259 2016 YTD Intakes 324 2017 YTD Intakes 298 2018 YTD Intakes 149 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: June 12, 2018 SUBJECT: Finance Department, June 2018 Mid-month Report With the passage of the FY19 Budget at the June 6th Council Meeting, the department has been making changes and compiling the document for printing. The document is expected to be available for distribution next week. The Department’s focus will now be switching to closing FY18 and completion of the City’s Comprehensive Annual Financial Report. This process includes closing of the FY18 financial records, fiscal year end grant reporting and finally financial statement preparation. The annual audit is scheduled for the week of October 8th. The 2018 Personal Use Fishery is quickly approaching and we will be working with the Park’s Department to train our seasonal help to work in the dipnet shacks. We have been working closely with our software programmer to update the shack attendant software and to update the dipnet app. The department has also completed open employee, enrollment training with PREMERA and USI representatives. Having minimal benefit changes in the coming year greatly reduced the time and effort for this year’s open enrolment process. Insurance coverage renewal, property, liability, airport, marine and workers compensation, is complete and binding of coverage for FY2019 is underway. Included in binding this coverage is the issuance of municipal official bonds for myself, the City Manager, and the City Clerk. Bonding for these three positions remains at the same level previously established by Council, $40,000 for the Finance Director, $2,000 for the City Manager, and $10,000 for the City Clerk. In addition to these amounts, the City’s general liability policy carries $250,000 of employee dishonesty coverage for all City employees. If Council wishes to change the bonding amounts for any position just let me know and I will obtain prices and facilitate the change. 150 MEMORANDUM TO: Paul Ostrander, City Manager FROM: Jeff Tucker, Fire Chief DATE: June 13, 2018 SUBJECT: June 2018 Mid-Month Report – City of Kenai Fire Department From January 1st through the end of May 2018 the department has responded to 617 calls for service. This is a 4.9% increase from 2017 where we responded to 588 calls during the same period. In May alone we responded to 140 calls for service. This is a 19% increase as compared to May of 2017 where we responded to 117 calls. The department participating in several events including the annual Kenai Middle School end of year hydrant painting day. We cooked a BBQ lunch for the participants in the City’s Plant Day event. The department also hosted a Safe Kids Coalition Car Seat Safety event. The department conducted its quarterly EMS training with our physician sponsor and covered topics which included modification to our standing medical orders, new medications, and training in a new advanced airway device. Firefighter/Paramedic Justin Horton attend the week long Corporate Fire School at Texas A&M Engineering Extension Service (TEEX) in College Station, Texas. This training is sponsored and paid for by Andeavor (Tesoro) as part of a training program that was started many years ago. Each year a firefighter from Kenai Fire Department and Nikiski Fire Department join their fire brigade for this training. Chief Tucker attended the Western Fire Chiefs Associations Board meeting and Presidents Forum in Coeur d’Alene, Idaho. 151 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Jo Joiner DATE: June 8, 2018 SUBJECT: Library Mid-Month Report ______________________________________________________________________ May Circulation Figures Adult Fiction 1,195 Internet Access 887 Adult Non-Fiction 886 iPad use 230 Young Adult Fiction 226 Video 0 Periodicals 83 Room Booking 144 Juvenile Fiction 463 Music 30 Juvenile Non-Fiction 272 DVDs 1,914 Easy Fiction 1,130 Audio books 93 Easy Non-Fiction 166 Miscellaneous 149 Interlibrary Loan 6 Computer Programs Books – Consortium 260 Media – Consortium 82 Total Print 4,687 Total Non-Print 3,529 Total Circulation 5/18 8,216 Downloadable Audio 609 Total Circulation 5/17 8,425 Downloadable EBooks 472 % change -2% In-House circulation 150 152 Page 2 of 2 Library Mid-Month Report June 2018 Library Door Count……. 16,940 Income Fines $ 512.68 Xerox 134.75 Lost/Damaged 91.93 Test Proctoring Fee 40.00 Printing 352.50 Other 0.00 Total income $ 1,131.86 In May 2 volunteer worked about 10 hours. There were 16 children’s programs with 351 total in attendance, and 14 adult and family programs with 177 attendees. In May we ordered 4 interlibrary loan items not available through the consortium and received 4 items, we returned 6 items and loaned 10 items to other libraries who are out of state or not in the consortium. Library Cards Issued May Kasilof 2 Kenai 33 Nikiski 14 Non-Resident 6 Other Peninsula 0 Soldotna 9 Total 64 153 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: 6/13/18 SUBJECT: Planning and Zoning May 2018 Report ____________________________________________________________________________ Below are a summary of tracking measures in May 2018 for the Planning and Zoning Department. Planning and Zoning Resolutions Approved: May 2018 The Planning and Zoning Commission approved of one plat, one conditional use permit transfer, and one code amendment recommendation as outlined below: • 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 (5/11/18) • 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 (5/11/18) • PZ 2018-11 –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 (5/11/18) Code Enforcement Three cases closed in May 2018. 154 Page 2 of 2 Planning and Zoning May 2018 Report Six current active cases. Junk or Abandoned Vehicles 2 Debris & Junk 1 Garbage 2 Building Code Violation 0 Miscellaneous Code Violation 1 TOTALS: 6 Building Permits Issued: May 2018 Permit # Date Issued Owner Address Improvement Valuation Residential / Commercial B5377 5/3/18 Steven and Lindsay Hallman 1616 Toyon Way #264 Addition $33,000 Residential B5378 5/10/18 Roger and Terry Cramer 1511 Toyon Way Rebuild deck and add bathroom $20,000 Residential B5380 5/15/18 Kenaitze Indian Tribe 510 Upland Street Renovate basement to office space $100,000 Commercial B5381 5/16/18 Kenaitze Indian Tribe 510 Upland Street Add new exit stair from the second level $95,680 Commercial B5382 5/16/18 Don Baker 1010 Alaska Avenue #192 Storage Shed $2,200 Residential Lands The Planning and Zoning Commission recommended for execution the following lease applications within the Airport Reserve, as outlined below: • 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 (5/11/18) • 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. (5/23/18) 155 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation DATE: June 11, 2018 SUBJECT: Mid-month Report ____________________________________________________________________________ The month of May was an exceptionally busy month for the department. Routine maintenance activities included turning on water to various locations, opening up restroom facilities, setting trash receptacles and clearing lawn and sidewalks of debris and sand. The community-wide clean-up occurred May 11-19. City staff were granted a couple hours on Friday, May 18 to assist with clean-up efforts. The Army National Guard coordinated with our office and donated several hours picking up litter along the Kenai Spur Hwy. Additionally, a group of volunteers assembled and cleaned up several abandoned homeless camps throughout town, including some illegally discarded contents off First St. The high school baseball and softball season ended May 18. The department coordinated a bleacher dedication with Mayor Gabriel, Parks & Recreation Commission, KCHS and Kenai Rotary Club on May 17. This provided an opportunity for the department, fans, coaches and players to thank the club for their generous contribution. The Kenai Eagle Disc Golf Association sponsored a tournament on May 19 with forty-three folks attending from around the Kenai Peninsula and the Anchorage area. The department also participated in a bike safety event held at Walmart. The bike repair station is complete and ready for installation. Staff is planning to place this at Beaver Creek Park near the Unity Trail. Staff member Ed Brusvan completed the interpretive sign project for the Kenai River Wildlife Viewing platform. A total of eight shelter reservations during the month of May. 156 MEMORANDUM TO: Paul Ostrander, City Manager FROM: Ben Langham, Acting Police Chief DATE: June 6, 2018 SUBJECT: Police & Communications Department Activity – Month of May 2018 Police handled 787 calls for service. Dispatch received 287 9-1-1 calls, 200 of which came from cell phones. Officers made 52 arrests. Traffic enforcement resulted in 216 warnings, 25 citations for speeding, 24 for seatbelt violations, 16 citations for equipment violations, and 62 citations for “other.” There were 4 DUI arrests (0 felony). Officers investigated 2 motor vehicle crashes. There was one collision for following too closely and one collision due to driver inattention. May training included: All KPD officers participated in a biannual defensive tactics training at Kenai Middle School. One officer participated in the DPS academy in Sitka as a TAC officer for one week. The KPD officer on the SERT team completed a week long in-service training in Anchorage. An officer attended the Domestic Violence and Sexual Assault Conference in Anchorage while another officer attended the Alaska Peace Officer Association Conference in Fairbanks. Additionally, two officers attended the Alaska Law Enforcement Memorial Service. Two dispatchers attended Youth Mental Health First Aid in Soldotna for one day. Along with assisting school administrators and handling multiple calls in the Kenai schools, the School Resource Officer attended graduations at KCHS and KAHS. The SRO also facilitated multiple bike rodeos to elementary age children, participated in an intruder drill and gave presentations to young children about policing. 157 Page 2 of 2 3458 1284 3085 1369 2942 1446 0 1000 2000 3000 4000 Total Police Service Calls 911 Calls Received 2018(Jan 1 - May 31)2017(Jan1 - May 31)2016(Jan 1 - May 31) 158 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Scott Curtin, Public Works Director DATE: June 2018 SUBJECT: Mid-Month Report; Public Works / Capital Projects • Recruitments – WWTP Operator started 5/23. Public Works received 19 Temp labor applications for personal use fishery, review of applications began 6/4. • WWTP Improvements – An amendment was executed to prepare construction documents. The improvements include installing dissolved oxygen probes, variable speed drive blowers, fine bubble diffusers, and evaluation of other potential energy saving upgrades. Final documents are pending, Division 1 specifications are being added to bid package. • Recoat Existing Reservoir – Close out in progress. Engineer requested a final approval to operate and submitted as-built drawings to ADEC and the City. ADEC Final Approval to Operate received 5/23. • Fencing Rehab with Access Control –Design in progress. Scope includes bringing security card access to nine gates and possibly gate upgrades. As of 5/23 documents are at 95% completion. Finalizing last few details, anticipating going out for bids between 6/18-7/13. • Terminal Building Rehab Conceptual Plan and Design – The Draft Design Study Report was completed February 2, 2018 and is under review. Scope generally includes HVAC and electrical upgrades, a new roof, better space utilization, and cosmetic improvements. 35% percent design documents received, anticipating 65% docs on 6/19, with presentation at council meeting on the 20th. • 2016 Improved Airport Drainage – Closeout in process. Scope included replacing the floatplane pond outfall gate and mitigating ponding areas that attracted wildlife. Notice of Completion from DOL for Peninsula Construction has now been received. • Dock repair – Bidding Process. Scope includes repairs to damage caused by the earthquake and cathodic protection to mitigate accelerated corrosion of the piling. Bids on April 10, 2018. One Bid was received and was slightly over budget, anticipating altering the Bid Package and will Re-Bid in June. 159 Page 2 of 2 Mid-Month Report • Flight Service Station Phase 3 (Interior remodel) – Modification to design in progress. The scope includes break-room upgrades, lockers, painting, carpet, duct and carpet cleaning. This will complete the work required by the FAA lease agreement. Currently reviewing 95% Drawings. Anticipate bidding in June/July. • Purchase Sander Trucks – Purchase Orders have been provided to the vendors. Delivery anticipated in mid-May 2018. Due to manufacturer revised delivery date confirmed for June 15th. • Purchase Street Sweeper – Specifications in development. • Recreation Center Improvements – Jernstrom Engineering - Design in progress. Scope includes replacing aging water heaters with high efficiency heaters, HVAC improvements including replacing Roof Top Units and system upgrades, e.g. thermostat locations and flow balancing. • Recreation Center Management Agreement – Request for Proposal (RFP) documents in development. A meeting was held with the proposal review committee to discuss scoring criteria. RFP Available April 11, Proposals due May 11. Currently negotiating with Boys & Girls Club. • Ryan Creek Culvert Repair – Bidding process. This culvert crosses Frontage Road from Leif Hansen Memorial Park to the drainage that runs next to the Senior Center. Bids on April 10, 2018. Construction Contract awarded to Fosters Construction, work is scheduled to take place 6/11-6/29. • Kenai Cemetery Expansion 2018 – Design contract has been finalized. Scope includes grading and seeding, aluminum and chain link fencing, gravel road and walkways, survey monuments, and a well and related appurtenances. Notice to proceed has been issued. June 7th Design Docs are at 65% review comments. Expect final docs after 4th July holiday. • Peninsula Avenue Bluff Erosion 2018 – Resolution approved to enter into a contract for design services. Design contract being finalized. Larsen Engineering has been awarded the contract. Reviewing 95% Design Documents week of June 11th. • USACE Bluff Erosion – See City Manager’s report. • DOT KSH Rehabilitation (Widening to 5 lanes) Phase 1 Swires Rd. to Eagle Rock Dr. was bid on March 30. City of Kenai water main replacement crossing KSH at Shotgun/Beaver Loop designed, funded, and will be bid with DOT project. Construction to start mid-May. • DOT KSH Rehabilitation (Widening to 5 lanes) Phase 2 Eagle Rock Dr. to Sports Lake – ADOT advises they plan to bid in November 2018, more likely 2019.. • DOT KSH Rehabilitation (Grind and pave) MP 12.25 to 18.52 - ADOT advises they plan to bid and construct in 2018. • DOT Beaver Loop Road and Pedestrian Pathway Project – ADOT advises construction may be possible in 2018, more likely 2019. • Dock Contract for use of Cranes, offices and Operating Area – Currently out for bid. Negotiating Contract terms with Cispri, finalized bid was $20,000. 160 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Kathy Romain, Senior Center Director DATE: June 12, 2018 SUBJECT: May Monthly Report May 2018 Home Meals NTS Choice Clients Meals Clients Meals 60+ Service Area 44 937 8 305 60+ Outside Service Area 1 35 1 35 Under 60 + Service Area 1 23 4 155 Under 60+ Outside Service Area 0 0 1 31 Subtotals 46 995 15 526 Total 1521 • During the month of May, 60 volunteers donated 873 hours of their time; 55 individuals used the Social Security Video Service; and, 1,468 congregate meals were served in the dining room. The Director attended the Area Wide Senior Center Director’s Meeting in Nikiski. The Administrative Assistant participated in the State of Alaska Farmer’s Market Coupon Training for dispensing coupons to seniors who can then purchase produce at various local farmer’s markets. • On May 3, we hosted a May Day Quilt Bingo and had a wonderful turnout raising funds to support our Quilt Club. These quilters make and donate quilts to homebound seniors and other organizations in our community. It was decided this should become an annual event along with Howard’s Snack Shack. • National Health and Fitness Day was celebrated on May 30 including the 3rd Annual Walker & Roller Fun Run with 42 participants ranging from ages 4 – 88. Alaska Community Care sponsored the event which included a two mile walk around Old Town Kenai. • Throughout this month, 292 individuals used MySeniorCenter to track meals, rides or activities at the Senior Center. Of those individuals, 77% were local, 20% were between the ages of 70-74 and 18% were of the age of 85 or older. Individuals participating in Recreation/Entertainment Programs logged 2, 921 hours with 62 people signing in. Our exercise programs continue to grow and become more popular as seniors strive to remain active. 161 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF: JUNE 20, 2018 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT ALASKA SURE SEAL APPLY CRACK SEALANT STREETS REPAI R & MAINTENANCE 10,800.00 PRIORITY DISPATCH CORP. PRO QA LICENSE RENEWAL COMMUNICATIONS REPAIR & MAI NTENANCE 2 ,870.00 BOB'S SERVICES CONVEYOR CHAIN FOR SANDER STREETS OPERATING SUPPLIES 5 ,711 .50 NORTH COAST ELECTRIC PROFIBEUSS CONVERTED MODULES WATER OPERATING SUPPLIES 4 ,460.36 INGRAM LIBRARY SERVICES BOOKS LIBRARY BOOKS 4 ,500.00 ALASKA BOILER & BURNER BO I LER PARTS FOR LIBRARY BUILDINGS OPERATING SUPPLIES 2 ,708.00 MOSCA DESIGN SNOWFLAKE POLE DISPLAY RECREATION SMALL TOOLS 3 ,896.00 NORTH COAST ELECTRIC OUTPUT MODULES WATER OPERATING SUPPLIES 2 ,893.08 COOL AIR MECHANICAL HVAC REPAIRS -OPS AIRPORT REPAIR & MAINTENANCE 11 ,500.00 NC MACHINERY TEST GENERATORS SHOP REPAIR & MAINTENANCE 6 ,500.00 162 JUNE 20, 2018 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION ITEM REQUESTED BY Add to item D.3. Ordinance No. 3026-2018 Councilor Knackstedt • Analysis Memo from the City Attorney Add to item D.4. Ordinance No. 3027-2018 Councilor Knackstedt • Analysis Memo from the City Attorney Add to item D.10. Resolution No. 2018-33 City Manager • Amendment Memo Add to item G.3. Special Use Permit to Alaska Air Fuel • Memo Re. Airport Commission City Manager Recommendation Add to item G.4. Special Use Permit to HDL Engineering • Memo Re. Airport Commission City Manager Recommendation Add to item G.5. Special Use Permit to Reddi Towing & Salvage • Memo Regarding Airport Commission City Manager Recommendation Remove G.6. from the Amending an Employment Agreement City Clerk Consent Agenda: Between The City of Kenai and the City Attorney, Scott Bloom 'Vtfl~ a1/t~ a Pa.f~ Ct~ a1/t~ a h.tfl.IC'e " 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www. kenai.city MEMORANDUM TO: FROM: Council Member Knackst~) Scott Bloom, City Attorn ~ June 20, 2018 DATE: SUBJECT: Requirement of Purchaser of Airport Land Outside the Airport Reserve to Pay for Appraisal Costs (Ordinances 3027-2018 and 3026-2018) You asked for a n analysis of whether City code requires a purchaser of Airport Prope1ty outside the Airp01t Reserve to pay applicable appraisal costs. When the purchaser requests that land be sold for which an appraisal will be required , the answer is yes . Kenai Municipal Code 21.15.190- Sale Procedure, provides in relevant part: (b) Where any patty, hereinafter called "applicant," requests that a tract or tracts of land be sold for which an appraisal will be required, which will require subdividing, platting, or surveying and staking, o r which will require advertising or incurring any other expenditures b y the C ity prior to sale, (1) No actions in preparation for sale will be taken b y the City until an agreement to purchase shall be properly executed and filed with the City Manager for the purchase of such land w ith payment of sufficient good faith deposit, which s hall consist of cash or its equivalent deposited with the Finance Officer of the City of Kenai, as may be detem1ined by the City Manager, to cover all expenses of the City and such agreement to purchase shall further contain the agreement b y applicant to pay any additional costs if such good faith deposit is insufficient to pay all costs incwTed by the C ity. (emphasis added) This is consistent with other provisions of the same chapter of code that require an applicant for a lease to provide a deposit to cover an appraisal. See for example KMC 21.15.040 Filing Fee and Deposit: (a) When submitting an application for lease ofland, the applicant shall pay the City the following as set forth in the City's schedule of fees adopted by the City Council: (1) Pay a non-refundable filing fee ; and (2) A deposit to show good faith and secure the City in payment of any costs, including: (A) An appraisal cost recovery deposit; and (B) An engineering, surveying and consulting cost recovery deposit. "tftff~ «1/tlt a Pa~~ Ct'tj «1/tlt a h.tar-e" 210 Fidalgo Ave, Kena i, Alaska 99611-7794 Telephone : (907) 283-7535 I Fax : (907) 283-3014 www.kenai.city MEMORANDUM TO: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager June 20, 2018 Resolution No. 2018-33 -Vacating Beluga Drive West Right-of-Way - Request for additional easements After review of the proposed vacation of Beluga Drive West Right-of-Way, the need for easements to accommodate possible future water connections to the City of Kenai property south of the existing Right-of-Way be ca me apparent. It is the recommendation of the administration that Council approves Resolution No . 2018-33 contingent upon the final plat granting two (2) 30 ' utility easements as shown on the attached exhibit. Your consideration is appreciated. iF ii 11 p I ~~ ii I~ Mf ll 111 I! I! ; I ~ I~ ~ ! ! I I I ~ ~ ~ ~ ~ ~ z... 0 t') 0 -cc I l>J "'1 07 ~ -.> __,., v -- T MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant – Airport Manager DATE: June 18, 2018 SUBJECT: Action/Approval – Special Use Permit to Alaska Air Fuel, Inc. The Special Use Permit for Alaska Air Fuel, Inc. effective July 1, 2018, was scheduled for recommendation at the June 14, 2018 Airport Commission meeting. There was not a quorum in attendance and the meeting was cancelled, consequently there is not a recommendation to Council for approval. Please consider this memo a request for Council approval at the June 20, 2018 meeting. The Special Use Permit will be included as an information item at the July 2018 Airport Commission meeting. Please contact me if you have any questions. MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant – Airport Manager DATE: June 18, 2018 SUBJECT: Action/Approval– Special Use Permit to HDL Engineering Consultants, LLC The Special Use Permit for HDL Engineering Consultants, LLC effective July 1, 2018, was scheduled for recommendation at the June 14, 2018 Airport Commission meeting. There was not a quorum in attendance and the meeting was cancelled, consequently there is not a recommendation to Council for approval. Please consider this memo a request for Council approval at the June 20, 2018 meeting. The Special Use Permit will be included as an information item at the July 2018 Airport Commission meeting. Please contact me if you have any questions. MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant – Airport Manager DATE: June 18, 2018 SUBJECT: Action/Approval – Special Use Permit to Reddi Towing 7 Salvage, Inc. The Special Use Permit for Reddi Towing & Salvage, Inc., effective July 1, 2018, was scheduled for recommendation at the June 14, 2018 Airport Commission meeting. There was not a quorum in attendance and the meeting was cancelled, consequently there is not a recommendation to Council for approval. Please consider this memo a request for Council approval at the June 20, 2018 meeting. The Special Use Permit will be included as an information item at the July 2018 Airport Commission meeting. Please contact me if you have any questions. ACTION AGENDA KENAI CITY COUNCIL -REGULAR MEETING JUNE 20, 2018-6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE ., KENAI, AK 99611 http://www .kenai.city A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders . B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) 1. Chris Parker, K+A Design Studios and Mark Blanning, Wince-Corthell-Bryson - Airport Terminal Rehabilitation Project Update C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY. Ordinance No. 3024-2018 -Increasing Estimated Revenue and Appropriations in the General and Airport Specia l Revenue Fu nd s for FY2018 Fire Department Overtime in Excess of Budgeted Amounts. (Administration) 2. ENACTED UNANIMOUSLY. 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 Pro hi b it Standard Marijuana Cultivation Facilities in Reside ntial Zones. (Administration ) 3. ENACTED. Ordinance No. 3026-2018 -Authorizing the Sa le of Rea l Property Described as Lot Six (6) A, Block One (1 ). Gusty Subdivi sion, according to Plat 86-76, City-Owned Airport Property Located Outside the Airport Reserve to Pingo Properties , Inc. and Geoffrey M . Graves. (Administration) 4. ENACTED. Ordinance No. 3027-2018 -Authorizing the Sale of Real Property Described as Lot Four (4)A, Block Three (3), Cook In let Industrial A ir Park Subd ivi sion , 2014 Replat, City-Owned Airport Land Located Outside the Airport Reserve , to Kenai City Council Meeting June 20, 201 8 Page 1 of 4 Schilling Rentals , a Partnership Owned by David and Michael Schilling . (Administration) 5. ENACTED UNANIMOUSLY. Ordinance No. 3028-2018-Amend ing Kena i 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) 6. ENACTED UNANIMOUSLY. Ordinance No. 3029-2018 -Increasing Estimated Revenues and Appropriations in the General and Airport Land Sales Permanent Funds to Transfer Earnings in Exce ss of Budgeted Amounts to the City 's General and Airport Special Revenue Fund. (Administration) 7. ENACTED UNANIMOUSLY. Ordinance No. 3030-2018 -Increasing Estimated 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) 8. ENACTED UNANIMOUSLY. Ordinance No. 3031-2018-Amendin g 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) 9. ENACTED UNANIMOUSLY. Ordinance No. 3032-2018 -Increasing Estimated Revenue and Appropriations in the Water & Sewer Fund tor Utility Costs in Excess of Budgeted Amounts . (Administration) 10. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2018-33-Consenting to the Vacation of Be luga Drive West Right-o f-Way and a Fifteen Foot (15') Utility Easement within the Proposed Beluga Subdivision 2015 Replat Right-of-Way Vacation Plat. (Administration) 11. ADOPTED UNANIMOUSLY. Resolution No. 2018-34 -Awarding a Profess ional Services Agreement for Ambulance Billing Services to Systems Design West, LLC. (Administration) 12. ADOPTED UNANIMOUSLY. Resolution No. 2018-35 -Authorizing a One-Year Exte nsion of a Professional Services Agreement with Boys and Girls Club of the Kenai Peninsula for Fa c ility Management Services (July 1, 2018 to June 30, 2019) at the Kenai Recreation Center. (Administration) 13. ADOPTED UNANIMOUSLY. Resolution No. 2018-36 -Authorizing a Budget Transfer within the General Fund Street Lighting , Bu ild ings, and Boating Facility Dep artments for Street Light Repairs in Ex cess of Budgeted Am ou nts and A uthorizi ng a Purchas e Order to Le gacy Electri c in the Amount of $34,000 for Comp letion of the Rep ai rs . (Administration) K enai City Coun cil Meeting June 20, 2018 Page 2 of 4 14. ADOPTED UNANIMOUSLY. Resolution No. 2018-37 -Awarding an Agreement to Crowley Fuels , LLC for the Fuel Furnish and Delivery 2018 Invitation to Bid . (Administration) E. MINUTES 1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of June 6, 2018 F. UNFINISHED BUSINESS -None. G. NEW BUSINESS 1. APPROVED BY THE CONSENT AGENDA . *Action/Approval -Bills to be Ratified . 2. APPROVED UNANIMOUSLY. Action/Approval -Purchase Orders Over $15,000 3. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Speci al Use Perm it to Alaska Air Fuel for Aircraft Parking on the Apron . (Administration) 4. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Special Use Permit to HDL Engineering for Soils Test Lab and Equipment Storage. (Admin istration ) 5. APPROVED BY THE CONSENT AGENDA. *Action/Approval-Special Use Permit to Reddi Towing & Salvage, LLC for an Impound Lot. (Administration) 6. AMENDMENT APPROVED UNANIMOUSLY. *Action/Approval -Amending an Employment Agreement between the City of Kenai and City Attorney Scott Bloom . (City Attorney) 7 . INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0710512018. *Ordinance No. 3033-2018 -Appropriating Transfers for FY2019 Budgeted Capital Projects in the Public Safety Capital Project Fund , the Kenai Recreation Center Improvements Capital Project Fund, the Vintage Pointe Manor Ca pita l Project Fund , and the Water and Sewer Capital Project Fund . (Administration) H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission • Sub-Committee Update 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6 . Beautification Committee 7. Mini -Grant Steering Committee I. REPORT OF THE MAYOR Kenai City Council Meeting Ju ne 20, 20 18 Page 3 of 4 J. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION -None. M. PENDING ITEMS -None. N. ADJOURNMENT *******************************************************************••·············•***************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review The agenda and supporting documents are posted on the City's website at www.kenai.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 City Counci l Meeting June 20, 2018 Page 4 of 4 CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE JUNE 20, 2018 KENAI CITY COUNCIL MEETING NOTICE IS HEREBY GIVEN the City of Kenai Council passed the following Ordinance(s) and /or Resolution(s) at the above-referenced meeting. 1. ENACTED UNANIMOUSLY. Ordinance No. 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. (Administratio n) 2. ENACTED UNANIMOUSLY. 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 Prohib it Standard Marijuana Cultivation Facilities in Residential Zones. (Administration) 3. ENACTED. Ordinance No . 3026-2018 -Authorizing the Sale of Real Property Described as Lot Six (6) A, Block One (1), Gusty Subdivision , according to Pla t 86-76 , City-Owned Airport Property Located Outside the Airport Rese rve to Pingo Prope rties, Inc. and Geoffrey M. Graves. (Administration) 4. ENACTED. Ordinance No. 3027-2018-Authorizing the Sale of Real Property Described as Lot Four (4)A, Block Three (3), Cook Inlet Industrial Air Park Subd ivision , 2014 Replat, City- Owned Airport Land Located Outside the Airport Reserve , to Schilling Rentals, a Partnership Owned by David and Michael Schilling . (Ad ministration) 5. ENACTED UNANIMOUSLY. Ordinance No . 3028-2018 -Amend ing 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) 6 . ENACTED UNANIMOUSLY. 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 the City 's General a nd Airport Special Revenue Fund . (Administration) 7. ENACTED UNANIMOUSLY. Ordinance No. 3030-2018 -Increasing Est imated 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 Pre vi ously Approved in Ordinance No. 2957-2017 (Substitute). (Administration) 8. ENACTED UNANIMOUSLY. Ordinance No. 3031-2018 -Amending Kena i 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) 9. ENACTED UNANIMOUSLY. Ordinance No. 3032-2018 -Increasing Estimated Revenue and Appropriations in the Water & Sewer Fund tor Utility Costs in Excess of Budgeted Amounts. (Administration) 10. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2018-33 -Consenting to the Vacation of Beluga Drive West Right-of-Way and a Fifteen Foot (15 ') Utility Easement with in the Proposed Beluga Subdivision 2015 Replat Right-of-Way Vacation Plat. (Administration) 11. ADOPTED UNANIMOUSLY. Resolution No. 2018-34 -Awarding a Professional Services Agreement for Ambulance Billing Services to Systems Design West, LLC. (Adm inistration) 12. ADOPTED UNANIMOUSLY. Resolution No. 2018-35-Authorizing a One-Year Extension of a Professional Services Agreement with Boys and Girls Club of the Kenai Peninsula for Fac ility Management Services (July 1, 2018 to June 30 , 2019) at the Kenai Recreation Center. (Administration) 13. ADOPTED UNANIMOUSLY. Resolution No. 2018-36 -Authorizing a Budget Transfer within the General Fund Street Lighting , Buildings, and Boating Facil ity Departments for Street Light Repairs in Excess of Budgeted Amounts and Authorizing a Purchase Order to Legacy Electric in the Amount of $34,000 for Completion of the Repairs. (Administration ) 14. ADOPTED UNANJMOUSL Y. Resolution No. 2018-37 -Awarding an Agreement to Crowley Fuels, LLC for the Fuel Furnish and Delivery 2018 Invitation to Bid . (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 public notice. NOTICE OF PUBLIC HEARING JUNE 20, 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. 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) 2. Ordinance No. 3025-2018 -Amending Kenai Municipal Code 14.20.330 - Standards for Commercial Ma rijuana Establishments and Amending Kenai Municipal Code Chapter 14.22.010 -Land Use Table, to Prohibit Standard Marijuana Cultivation Facilities in Residential Zones. (Adm inistration ) 3. 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) 4. 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) 5. 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) 6. 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 the City's General and Airport Specia l Revenue Fund . (Administration) 7 . Ordinance No. 3030-2018 -Increasing Estimated 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 ) 8. Ordinance No. 3031-2018 -Amending Kenai Municipa l Code 23 .10.020- Unclassified Service, to Allow Greater Flexibility in Certain City Benefits Recei ved by the City Manager, Attorney, And Clerk, for Purposes of Recruitment and Retention . (Council Member Molloy) 9. Ordinance No. 3032-2018 -Increasing Estimated Re venue and Appropriations in the Water & Sewer Fund tor Utility Costs in Excess of Budgeted Amounts. (Administration) 10 . Resolution No. 2018-33 -Consenting to the Vacation of Beluga Drive West Right- of-Way and a Fifteen Foot (15') Utility Easement within the Proposed Beluga Subdivision 2015 Replat Right-of-Way Vacation Plat. (Administration) 11. Resolution No. 20 18-34 -Awarding a Professional Services Agreement for Ambulance Billing Services to Systems Design West, LLC. (Administration) 12. Resolution No . 2018-35 -Authorizing a One-Year Extension of a Professional Services Agreement with Boys and Girls Club of the Kena i Peninsula for Facility Management Services (July 1, 2018 to June 30 , 2019) at the Kenai Recreation Center. (Administration) 13. Resolution No. 20 18-36 -Authoriz ing a Budget Transfer within the General Fund Street Lighting, Buildings , and Boating Facility Departments for Street Light Repairs in Excess of Budgeted Amounts and Authorizing a Purchase Order to Legacy Electric in the Amount of $34,000 for Completion of the Repairs . (Administration) 14 . Resolution No. 2018-37 -Awarding an Agreement to Crowley Fuels , LLC for the Fuel Furnish and Delivery 2018 Invitation to Bid. (Administration) The public hearing will commence at 6:00 p.m ., or as soon thereafter as business permits, in the Kena i City Council Chambers, 210 Fidalgo Avenue, Kenai , Alaska, 99611 . All interested persons are invited to attend the meeting and participate in the public discussion . Written comments may be sent to the Kenai City Council , c/o Kenai City Clerk, 210 Fida Igo 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 t he Counc il prior to adoption without further public notice. West LNG-Highlights • Roadway length of 3.4 miles. • 34 Parcels affected by 200' ROW, with a potential of 7 relocations. • Annual maintenance cost of $42,000. • Construction cost estimate of $20 million (does not include ROW acquisition costs). ...._ ....... -=--...._ --r ,,LNO PIC9!J WHt LNG Allltmetlve c:;J .....-............ 1~~ ALASKA GASLIHE • •• OEUELOPHEHT COHP. : • • 1 • SOUTHEAST VIEW SOUTHWEST VIEW