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Home My WebLink About2018-07-05 Council Packet KENAI CITY COUNCIL - REGULAR MEETING JULY 05, 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) C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D.PUBLIC HEARINGS D.1.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 D.2.Resolution No. 2018-38 – Awarding an Agreement to Peninsula Pumping, Inc., for Providing and Servicing Portable Restrooms and Dumpsters on The North and South Kenai Beaches, Including Portable Restrooms at the City Dock, During the 2018 Personal Use Fishery. (Administration) Resolution No. 2018-38.pdf D.3.Resolution No. 2018-39 – Awarding an Agreement to AlaskaWaste – Kenai Division, LLC, for Providing and Servicing Road Accessible Dumpsters at the End of South Spruce Street, Kenai Little League Parking Lot, and Kenai City Dock During the 2018 Personal Use Fishery. (Administration) Resolution No. 2018-39.pdf D.4.Resolution No. 2018-40 – Approving the Execution of a Lease of Airport Reserve Lands Using the Standard Lease Form Between the City of Kenai and James H. Doyle, Individually, D/B/A Weaver Brothers, Inc. for Tract A, Gusty Subdivision No. 3, and Tract B, Gusty Subdivision No. 6, Amended. (Administration) 1 Kenai City Council Meeting Page 2 July 05, 2018 Resolution No. 2018-40.pdf D.5.Resolution No. 2018-41 – Consenting to The Vacation of the Easternmost Portion of Riverview Drive Right-of-Way between Broad Street and Lot 2C, Original Townsite of Kenai Laddville Replat No. 3, a Portion of Broad Street Right-of-Way South of Cook Avenue, and the Unnamed Right-of-Way South of Cook Avenue Adjacent to Lot 2C Original Townsite of Kenai Laddville Replat No. 3 and Lot 1, Block 18, Original Townsite Of Kenai. (Administration) Resolution No. 2018-41.pdf E.MINUTES E.1.*Regular Meeting of June 20, 2018 06-20-18 Council Minutes - DRAFT.pdf F.UNFINISHED BUSINESS G.NEW BUSINESS G.1.*Action/Approval – Bills to be Ratified. Payments over $15,000.pdf G.2.*Action/Approval – Purchase Orders Over $15,000 Purchase Orders over $15,000.pdf G.3.*Action/Approval – Non-Objection to Limited Marijuana Cultivation Facility License Renewal for Peninsula Botanicals, License No. 12303. (City Clerk) G.4.*Ordinance No. 3034-2018 - Repealing Kenai Municipal Code Chapters 16.05- General Provisions, and 16.10- Procedure, within Title 16- Public Improvements and Special Assessments and Re-Enacting and Renaming Chapter 16.05- Special Assessment Districts. (Council Member Knackstedt) Ordinance No. 3034-2018.pdf G.5.Action/Approval – Special Use Permit for the Kenai Chamber of Commerce and Visitor Center to Allow the Moosemeat John Cabin to be Used and Operated on City-owned Property Known as Lot 1, Gusty Subdivision, Addition 8. (Administration) SUP - KCCVC.pdf G.6.Action/Approval – Amending an Employment Agreement between the City of Kenai and City Manager Paul Ostrander. (Administration) H.COMMISSION/COMMITTEE REPORTS H.1.Council on Aging H.2.Airport Commission 06-14-18 Airport Summary - DRAFT.pdf H.3.Harbor Commission • Harbor Roles & Responsibilities Sub-Committee 2 Kenai City Council Meeting Page 3 July 05, 2018 06-11-18 Harbor Summary - DRAFT.pdf 06-12-18 Sub-Committee Summary - DRAFT.pdf H.4.Parks and Recreation Commission H.5.Planning and Zoning Commission H.6.Beautification Committee H.7.Mini-Grant Steering Committee I.REPORT OF THE MAYOR J.ADMINISTRATION REPORTS J.1.City Manager 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 FY18 Audit Planning Document City of Kenai FY18 Audit Planning Document.pdf N.ADJOURNMENT 3 Kenai City Council Meeting Page 4 July 05, 2018 The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. 4 _____________________________________________________________________________________ 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: 5 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 enactment. 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 6 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. 7 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. 8 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 38 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING AN AGREEMENT TO PENINSULA PUMPING, INC., FOR PROVIDING AND SERVICING PORTABLE RESTROOMS AND DUMPSTERS ON THE NORTH AND SOUTH KENAI BEACHES, INCLUDING PORTABLE RESTROOMS AT THE CITY DOCK, DURING THE 2018 PERSONAL USE FISHERY. WHEREAS, the City advertised and the following bid was received on June 19, 2018; Bidder Schedule A Schedule B Schedule C Schedule D Peninsula Pumping, Inc. $30,185.90 $19,675.50 n/a $49,094.49 and, WHEREAS, Peninsula Pumping, Inc. was the only responsive bidder; and, WHEREAS, the recommendation from City Administration is to award an Agreement to Peninsula Pumping, Inc. for $98,955.89; and, WHEREAS, services include mobilization and demobilization, daily servicing and provisions for additional servicing on the North and South Kenai beaches, Kenai Little League Parking lot and City Dock, as needed; and; WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Agreement for the project entitled “Dipnet Dumpsters and Portable Toilets 2018” (Schedule A, B and D) be awarded to Peninsula Pumping, Inc. for the total approximate cost of $98,955.89. Section 2. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of July, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk 9 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: June 26, 2018 SUBJECT: Resolutions No. 2018-38 & No. 2018-39 – Dipnet Dumpsters and Portable Toilets 2018 ____________________________________________________________________________ Purpose of this memorandum is to recommend awarding an Agreement to Peninsula Pumping, Inc., and to Alaska Waste – Kenai Division LLC, for portable restrooms and dumpster service during the 2018 Personal Use Fishery. The City advertised for bids through the Anchorage Daily News, Peninsula Clarion and the City of Kenai Website. The following bids were opened on June 19, 2018: BIDDERS Schedule A Schedule B Schedule C Schedule D Peninsula Pumping, Inc. $30,185.90 $19,675.50 n/a $49,094.49 Alaska Waste – Kenai Division LLC n/a n/a $2,787.25 n/a The scope of work (Schedule A, B and D – Resolution No. 2018-38) includes mobilization and demobilization, daily servicing and provisions for additional servicing of the dumpsters and portable restrooms on the North and South Kenai Beaches, including portable restrooms at the Kenai City Dock. The scope of work (Schedule C – Resolution No. 2018-39) includes mobilization and demobilization, daily servicing and provisions for additional servicing of the road accessible dumpsters at the end of South Spruce Street, Kenai Little League Parking lot and at the Kenai City Dock. 10 Page 2 of 2 Resolutions No. 2018-38 & No. 2018-39 – Dipnet Dumpsters and Portable Toilets 2018 Peninsula Pumping, Inc. did not submit a bid for Schedule C due to a Non-Competition Agreement between both entities. Moreover, Alaska Waste – Kenai Division LLC is the only service provider in the Kenai/Soldotna area with the ability to provide front-end dumpster services. There are sufficient funds appropriated in the Parks, Recreation & Beautification and Boating Facility Personal Use Fishery accounts. Thank you for your consideration. 11 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 39 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING AN AGREEMENT TO ALASKA WASTE – KENAI DIVISION LLC FOR PROVIDING AND SERVICING ROAD ACCESSIBLE DUMPSTERS AT THE END OF SOUTH SPRUCE STREET, KENAI LITTLE LEAGUE PARKING LOT AND KENAI CITY DOCK DURING THE 2018 PERSONAL USE FISHERY. WHEREAS, the City advertised and the following bids were received on June 19, 2018; Bidder Schedule A Schedule B Schedule C Schedule D Alaska Waste – Kenai Division LLC n/a n/a $2,787.25 n/a and, WHEREAS, Alaska Waste – Kenai Division LLC was the only responsive bidder; and, WHEREAS, the recommendation from City Administration is to award an Agreement to Alaska Waste – Kenai Division LLC for $2,747.25; and, WHEREAS, services include mobilization and demobilization, daily servicing and provisions for additional servicing of road accessible dumpsters located at the end of South Spruce Street, Kenai Little League Parking lot and the Kenai City Dock; and, WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Agreement for the project entitled “Dipnet Dumpsters and Portable Toilets 2018” (Schedule C) be awarded to Alaska Waste – Kenai Division LLC for the total approximate cost of $2,787.25. Section 2. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of July, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk 12 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: June 26, 2018 SUBJECT: Resolutions No. 2018-38 & No. 2018-39 – Dipnet Dumpsters and Portable Toilets 2018 ____________________________________________________________________________ Purpose of this memorandum is to recommend awarding an Agreement to Peninsula Pumping, Inc., and to Alaska Waste – Kenai Division LLC, for portable restrooms and dumpster service during the 2018 Personal Use Fishery. The City advertised for bids through the Anchorage Daily News, Peninsula Clarion and the City of Kenai Website. The following bids were opened on June 19, 2018: BIDDERS Schedule A Schedule B Schedule C Schedule D Peninsula Pumping, Inc. $30,185.90 $19,675.50 n/a $49,094.49 Alaska Waste – Kenai Division LLC n/a n/a $2,787.25 n/a The scope of work (Schedule A, B and D – Resolution No. 2018-38) includes mobilization and demobilization, daily servicing and provisions for additional servicing of the dumpsters and portable restrooms on the North and South Kenai Beaches, including portable restrooms at the Kenai City Dock. The scope of work (Schedule C – Resolution No. 2018-39) includes mobilization and demobilization, daily servicing and provisions for additional servicing of the road accessible dumpsters at the end of South Spruce Street, Kenai Little League Parking lot and at the Kenai City Dock. 13 Page 2 of 2 Resolutions No. 2018-38 & No. 2018-39 – Dipnet Dumpsters and Portable Toilets 2018 Peninsula Pumping, Inc. did not submit a bid for Schedule C due to a Non-Competition Agreement between both entities. Moreover, Alaska Waste – Kenai Division LLC is the only service provider in the Kenai/Soldotna area with the ability to provide front-end dumpster services. There are sufficient funds appropriated in the Parks, Recreation & Beautification and Boating Facility Personal Use Fishery accounts. Thank you for your consideration. 14 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 40 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA APPROVING THE EXECUTION OF A LEASE OF AIRPORT RESERVE LANDS USING THE STANDARD LEASE FORM BETWEEN THE CITY OF KENAI AND JAMES H. DOYLE, INDIVIDUALLY, D/B/A WEAVER BROTHERS, INCORPORATED FOR TRACT A, GUSTY SUBDIVISION NO. 3, AND TRACT B, GUSTY SUBDIVISION NO. 6, AMENDED. WHEREAS, the current leases between James H. Doyle, Individually, d/b/a Weaver Brothers, Incorporated and the City of Kenai for Tract A, Gusty Subdivision No. 3, and Tract B, Gusty Subdivision No. 6 Amended, City-owned properties within the Airport Reserve, will expire on July 30, 2018; and, WHEREAS, on April 20, 2018, James H. Doyle, Individually, d/b/a Weaver Brothers, Incorporated, submitted applications to renew the leases of for a term of five (5) years; and, WHEREAS, James H. Doyle, Individually, d/b/a Weaver Brothers, Incorporated has leased the subject properties from the City of Kenai since 1984 for the purpose of parking trailers for his trucking business, a use compatible and conforming to the Kenai Municipal Code for zoning, Kenai’s Comprehensive Plan, the Airport Land Use Plan, Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program grant assurances, and Airport operations; and, WHEREAS, the City of Kenai did not receive a competing lease application within thirty (30) days of publishing a public notice of the lease applications submitted by James H. Doyle, Individually, d/b/a Weaver Brothers, Incorporated; and, WHEREAS, at their regular meeting on June 13, 2018, the Planning and Zoning Commission reviewed the lease applications submitted by James H. Doyle, d/b/a Weaver Brothers, Incorporated and recommended approval by the City Council; and, WHEREAS, the Airport Manager reviewed the lease applications submitted by James H. Doyle, d/b/a Weaver Brothers, Incorporated and recommended approval by the City Council. 15 Resolution No. 2018-40 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: That a Lease of Airport Reserve Lands is approved and the City Manager is authorized to execute lease renewals between the City of Kenai, Lessor, and James H. Doyle, Individually, d/b/a Weaver Brothers, Incorporated, Lessee, as follows: The City reserves the right to cancel the leases with 90-days notice; and, The lease term will be five (5) years. Section 2: That the resolution takes effect immediately upon passage. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of July, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: _____________________________________ Jamie Heinz, CMC, City Clerk 16 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: June 26, 2018 SUBJECT: Resolution No. 2018-40 – Kenai Municipal Airport Reserve Lease Application from James H. Doyle, Individually, d/b/a Weaver Brothers, Inc. Tract A, Gusty Subdivision No. 3 – 410 Coral Street and Tract B, Gusty Subdivision No. 6 Amended – 420 Coral Street _____________________________________________________________________ On April 20, 2018, James H. Doyle, Individually, d/b/a Weaver Brothers Inc., submitted applications to the City of Kenai to renew his leases on City property within the Airport Reserve. Mr. Doyle has leased two adjacent properties since 1984. He has used the properties as a parking area for cargo trailers for his trucking business and wishes to continue to lease these properties for a term of five years for the same purpose. His current leases with the City of Kenai will expire on July 30, 2018, and he would like his lease renewals to start August 1, 2018 and continue through July 30, 2023. Mr. Doyle is in compliance with current obligations to the City of Kenai and the Kenai Peninsula Borough. The parcels are within the Airport Light Industrial (ALI) Zone per Kenai Municipal Code (KMC) 14.20.065. The intent of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a significant resource to the community by encouraging compatible land uses and reducing hazards that may endanger the lives and property of the public and aviation users. The proposed use by Mr. Doyle for cargo trailer parking is a permitted use in the ALI Zone and is a compatible land use. The Imagine Kenai 2030 Comprehensive Plan outlines goals, objectives, and action items for the City, including this one pertaining to the Kenai Municipal Airport: 17 Page 2 of 2 Resolution No. 2018-40 • Objective T-1: Support future development near or adjacent to the airport when such development is in alignment with the Kenai Municipal Airport’s primary mission, “To be the commercial air transportation gateway to the Kenai Peninsula Borough and Cook Inlet.” The proposed use by Mr. Doyle complies with the Imagine Kenai 2030 Comprehensive Plan in that it supports development on lease lots and the development is in alignment with the Kenai Municipal Airport’s marketing strategy. The Airport Land Use Plan was developed to identify the highest and best uses of Kenai Municipal Airport land. The Airport Land Use Plan discusses leasing land and enhancing opportunities for local economic development. The proposed use by Mr. Doyle complies with the Airport Land Use Plan. The current leases allow the City to cancel the leases with ninety (90) days written notice because the properties are within the Runway Protection Zone (RPZ). This provision should be kept in the new lease in order to meet Federal Aviation Administration requirements. Pursuant to KMC 21.10.060(c), the City must publish public notice of a lease application and allow thirty (30) days for competing lease applications for the same property to be submitted to the City for consideration. The City published a public notice of the Doyle lease applications in the Peninsula Clarion on May 18th. The City did not receive a competing application to lease these parcels. The Planning and Zoning Commission recommended approval of the lease renewals during their May 23, 2018 meeting. These applications were scheduled for review at the June 14, 2018 Airport Commission meeting, but there was not a quorum. However, Mary Bondurant, Airport Manager, reviewed the lease applications and found them to be compliant 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 recommended approval of the lease renewals. Thank you for your consideration. 18 City of Kenai Kenai Municipal Airport Land Lease Application Application for: 0New Lease 0Amendment Mailing Address: Zip Code: Phone Number(s): Home Phone: ("101/) Z.'b3-?055 Work/ Message Phone: ( E-mail: (Optional) Name to Appear on Lease : Mailing Address: City: ¥.er<>..... State: Zip Code: Phone Number(s): Home Phone: ('10 ·')) ·-z.i~-76 ss-Work/ Message Phone: ( E-mail: (Optional) Type of Applicant: 01ndividual (at least 18 years of age) 0Partnership ~Corporation D Limited Liability Company (LLC) D Government D Other ______ _ Description of Property and Term Requested Legal Description of Property: Gu~~ s~'i:::>6_,"\i,s "'cY'\ -~3 le~\: A Does the Property Require Subdivision? (if Yes , answer next two questions) Are you prepared to be responsible for all costs associated with subdivision? Do you believe the proposed subdivision would serve other Airport purposes? Do you have or have you ever had a Lease with the City of Kenai? If Yes , please provide description of property leased (e.g. legal or physical description): G-0s~'/ s-.) 'D& ,\)', ~ ~';)'<') ~) 1 ro.c.i"-~ Is this application for renewa l or term extension of an existing lease? If Yes, please provide a description of the property leased: 6'J$~ S-....J"'D6>v7.s\~ ~ 3 \ro...\J't A Proposed Use (check one): D Aeronautical Do you plan to construct new or additional improvements? PLANNING DEPARTMENT DYES [ZJNo DYES ONO DYES DNo IBjYES DNo IXJYEs DNo DYES ~NO 19 If yes , w ill the improvement change or alter the use unde r an existing lease? D YES ONO If yes , what is the new proposed use? If ye s, what is the type of improvement? (e .g . building improvement, land improvement) If y es , what is the nature of the improvements? (e .g . maintenance, landscaping , new construction) List of proposed use and business activitie s: Lease Extension or Renewal Method to determ ine value of improvements/term for a lease renewa l or expiring lease : 0Professional estimate of the remaining useful life of the principle improvement on the property 0Market value appraisal of the principle improvement on the property 0Purchase pri ce of improve ments Su b mitting an ap plica ti on fo r a lease does not give t he appli cant a ri ght to lease or use t h e lan d req u ested in th e app licatio n . The ap plication shall expire twelve (12) month s aft er the date the application h as been made if the City and th e app licant have not, by that time, entered into a lease, unless the City Cou ncil for good ca use grants an extension for a period not to exceed six (6) months. The City has no obligation to amend, renew or extend a lease and may decline to do so upon making specifi c fi ndings as to why a lease renewal, extension, or amen dment is not in the best interest of the Ci ty S ig nature: Print Name: Titl e: 20 ----- ------ _____ ___) Tract A, Gusty Subd.No .3 N W+E s 500 ' 1 in ch equals 494 feet The information depicted here on is for graphic representatio n on ly of the best avail ab le so u rces. The City of Ken ai assumes no respons ibility fo r errors on this map. Date : 5/17/2018 21 City of Kenai Kenai Municipal Airport Land Lease Application Application for: 0Newlease 0Amendment Extension/Renewal Name of Applicant: Mailing Address: State: \) Phone Number(s): Home Phone : (o,o/) 2.K~·-7c;55 Work/ Message Phone : ( E-mail: (Optional) Name to Appear on Lease : Mailing Address: State: Zip Code: Phone Number(s): Home Phone: (q::s7 ) '2'"63 -765 ~ Work/ Message Phone : ( E-mail: (Optional) Type of Applicant: D Individual (at least 18 years of age) D Partnership ~Corporation D Limited Liability Company (LLC) D Government Oother _____ _ Description of Property and Term Requested Legal Description of Property: &-.)~ S:;-ib&\v ·,~-,~n ---\ rc,c'L ~ Does the Property Require Subdivision? (if Yes, answer next two questions) Are you prepared to be responsible for all costs associated with subdivision? Do you believe the proposed subdivision would serve other Airport purposes? Do you have or have you ever had a Lease with the City of Kenai? If Yes, please provide description of property leased (e.g. legal or physical description): Is this application for renewal or term extension of an existing lease? If Yes, please provide a description of the property leased : ~">~ S-1\:.:>~,v:.~:,o-n I 1"-..(;'c ~ Proposed Use (chec k one): D Aeronautical Do you plan to construct new or additional improvements? CITY OF KENAI f\(~ 2 0 20 ~ PLANNING DEAARTMEN T DYES ~NO DYES ONO DYES DNo lli]YEs DNo (i]YES DNo DYES IXJNo 22 If yes , will the improvement change or alter the use under an existing lease? DYES ONO If yes, what is the new proposed use? If yes, what is the type of improvement? (e.g. building improvement, land improvement) If yes, what is the nature of the improvements? (e.g . maintenance, landscaping, new construction) List of proposed use and business activities: Lease Extension or Renewal Method to determine value of improvements/term for a lease renewal or expiring lease: 0Professional estimate of the remaining useful life of the principle improvement on the property 0Market value appraisal of the principle improvement on the property 0Purchase price of improvements Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the appl ication . The appl ication shall expire twelve (12) months after the date the application has been made if the City and the applicant have not , by tha t time, ent ered in t o a lease, unless the City Council for good cause grants an extension for a period not to exceed six (6) months. The City has no obligation to amend , renew or extend a lease and may decli ne to do so upon making specific findings as to why a lease renewal, extension , or amendment is not in the best interest of the City Signature: Date: f./.-:JO ..... t 8"" Print Name: Title: 23 ~ _______ ,,,, ------------ ~~/ Tract B, Gusty Subd. No. 6 Amended , _tire eity •{, • KENA1"'1A5KA "V N W+E s 500' c: --=i 1 inch equals 494 feet The information depicted here on is for graphic representation only of the best ava ilable sources . The City of Ke nai assumes no responsibility for errors on this map . Date: 5/17/2018 24 Municipal Airport MEMO 305 N. WU.OW ST. SURE 200 KENAI, ALASKA 99611 TELEPHONE 907.;m3-7951 FAX 907-283-3737 To: Wilma Anderson -Planning Assistant I From: Mary Bondurant -Airport Mana Date: May 30 , 2018 Subject: James H. Doyle Lease Application -Tract A Gusty & Tract B Gusty This lease application was reviewed in conjunction with the FAA approved February 28 , 2018 Airport Layout Plan based on the August 2017 Master Plan. I have reviewed the above lease application in accordance with KMC 21.10.060 : ./ Airport Layout Plan : Sheet 13 of 19, Existing Land Use -designates land as commercial; Properties are located within the Runway Protection Zone (RPZ) and cannot be developed with permanent structures . RPZ's are established to enhance the protection of people and property on the ground. "Vehicular parking and storage" is an FAA permissible use . This use complies with the land use definition above. The lease should include a 90-day cancellation clause should an airfield operational need arise . Sheet 14 of 19 . Future Land Use -designates land as airfield ; areas directly related to the landing, takeoff, ta x iing and parking of aircraft and helicopters, including runways, h elicopter touchdown and lift off (TLOF) areas, ta x i ways, runway protection zones, approach and departure surfaces, runway and taxiway safety areas, building and obstacle free zones, navigational a ids and City-owned aircraft parking aprons. Page 1 25 The proposed use is non-aeronautical -trailer parking (only) Sheet 15 of 19. Existing Zoning -Airport Light Industrial; The ALI Zone is established by Ordinance No . 2884-2016 to protect the viability of the Kenai Municipal Airport as a significant resource to the community by encouraging compatible land uses, densitie s and reducing hazards that may endanger the lives and property of the pub lic and aviation users . Industrial and Commercial uses which are usually compatible with aviation users are permitted whic h have no nuisan ce effects upon surrounding property, or which may be controlled to prevent nuisance effects upon surrounding property. New resident ial uses are not permitted in this zone because it is intended that lo t s classified in t he ALI Zone are reserved for aviation-related commercial and ind ustrial uses . Meets the requirements for KMC 14 .20 .065 A i rport Light Industrial Zone. Sheet 16 of 19. Future Zoning -Airport Light Industrial; ALI defined above. Meets the requirements for KMC 14.20.065 Airport Light Industrial Zone . ./ Airport Master Plan : Defines the land as commercial and airfield; ./ FAA Regulations : No conflict appears . ./ AIP Grant Assurances : No conflict appears . ./ Airport Operations : No conflict appears . Mr. Doyle, d/b/a Weaver Bros ., Inc., has leased these properties inside the Airport reserve since 1984 and is in compliance with his lease. Based on the information reviewed, it appears that the lease should be allowed to continue. Please contact me if you have any questions. Page 2 26 'll/tt~ a1/th a Pa~~ e~ a1/th a ratu.H" 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Planning and Zoning Commission Paul Ostrander, City Manager ? D ' Elizabeth Appleby, City Planner EA May 15, 2018 Kenai Municipal Airport Reserve Lease Applications -Tract A, Gusty Subdivision No. 3 and Tract B, Gusty Subdivision No. 6 Amended On April 20, 2018, James H. Doyle , Individually, d/b/a Weaver Brothers Inc., submitted applications to the City of Kenai to renew his leases on City property within the Airport Reserve. Mr. Doyle has leased the two adjacent properties since 1984 for a parking area for cargo trailers and wishes to continue to lea se these properties for a term of five years for the same purpose. Pursuant to KMC 14.2 0 .065 , the parcel is within the Airport Light Industrial (ALI) Zone . The purpose of the ALI Zone is to protect the viability of the Kenai Municipal A irport as a significant resource to the community by encouraging compatible land uses and reducing hazards that may endanger the lives and property of the public and aviation users . The proposed use by Mr. Doyle for cargo trailer parking is a permitted use in the ALI Zone and is a compatible land use. Mr. Doyle would not be required to re-plat the leased parcels for his intended use. The Imagine Kenai 2030 Comprehensive Plan out lines goals , objectives, and action items for the City, including some pertaining to the Kenai Municipal Airport: • Action Item: Support the Airport's marketing s trategy to actively recruit development on Airport Industrial Park leases. The proposed use by Mr. Doyle comp lie s with the Imagine Kenai 2030 Comprehensive Plan in that it supports development on lease lots and the development is in alignment with the Kenai Municipal Airport's marketing strategy. 27 Page 2 of 2 Airport Reserve Lease Applications The Airport Land Use Plan was developed to identify the highest and best uses of Kenai Municipal Airport land. The Airport Land Use Plan discusses leasing land and enhancing opportunities for local economic development. The proposed use by Mr. Doyle compli es w ith the Airport Land Use Plan. It would enhance local economic development. The current leases allow the City to cancel the leases with ninety (90) days written notice because the properties are within the Runway Protection Zone (RPZ). I recommend keeping this provision in the new leases. Mary Bondurant, Airport Manager, will review the lease applications for compliance with the Airport Land Use Plan, Airport Layout Plan , Federal Aviation Adm inistration regulations, Airport Master Plan, Airport Improvement Program grant assurances, and Airport operations . The Airport Commission will also review the lease applications at their June 14th meeting . Does the Planning and Zoning Commission recommend the execution of the leases between the City of Kenai and Mr. Doyle, contingent upon the Airport Manager and the Airport Commission also supporting the execution of the leases and the inclusion in the lease terms of the right of the City to cancel the leases with ninety (90) days written notice? The City Council would be notified of the Planning and Zoning Commission 's decision as part of their evaluation of the lease applications. Thank you for your consideration. Cc: Mary Bondurant, Airport Manager 28 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-41 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, CONSENTING TO THE VACATION OF THE EASTERNMOST PORTION OF RIVERVIEW DRIVE RIGHT-OF-WAY BETWEEN BROAD STREET AND LOT 2C, ORIGINAL TOWNSITE OF KENAI LADDVILLE REPLAT NO 3; THAT PORTION OF BROAD STREET RIGHT-OF-WAY SOUTH OF COOK AVENUE; AND THE UNNAMED RIGHT-OF-WAY SOUTH OF COOK AVENUE ADJACENT TO LOT 2C ORIGINAL TOWNSITE OF KENAI LADDVILLE REPLAT NO. 3 AND LOT 1, BLOCK 18, ORIGINAL TOWNSITE OF KENAI AS SHOWN ON THE PROPOSED ORIGINAL TOWNSITE OF KENAI BLUFF REPLAT, WHICH IS ATTACHED HERETO AS EXHIBIT “A”. WHEREAS, on January 24, 2018, by Resolution No. PZ2018-02 the Planning and Zoning Commission of the City of Kenai recommended that the Kenai Peninsula Borough Planning Commission approve the Original Townsite of Kenai Bluff Replat with vacation of the a portion of Rivervew Drive Right-of W ay; a portion of Broad Street Right-of-Way South of Cook Avenue; and the unnamed Right-of-Way South of Cook Avenue Adjacent to Lot 2C, Original Townsite of Kenai Laddville Relat No. 3, and Lot 1, Block 19, Original Townsite of Kenai; and, WHEREAS, on June 13, 2018, the Kenai Peninsula Borough Planning Commission met and approved the Preliminary Plat of the Original Townsite of Kenai Bluff Replat consistent with the recommendation of the Planning and Zoning Commission for the City of Kenai; and, WHEREAS, on June 25, 2018, the Kenai Peninsula Borough Plat Committee met and approved the Preliminary Plat of the Original Townsite of Kenai Bluff Replat consistent with the recommendation of the Planning and Zoning Commission for the City of Kenai; and, WHEREAS, the rights-of-way have not been developed and do not provide access to the existing parcels, or are too close or over the bluff to be safely used due to erosion; and, WHEREAS, pursuant to Kenai Municipal Code Section 22.05.110(b) – Determination as to Need for Public Use, rights-of-way may be vacated by Resolution; and, WHEREAS, ACS, ENSTAR Natural Gas and Homer Electric Association offered no comments to the Kenai Peninsula Borough concerning the vacation of the rights-of-way. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That following rights-of-way for the ORIGINAL TOWNSITE OF KENAI BLUFF REPLAT within the City of Kenai are no longer needed for a public use and that the Council of the City of Kenai consents to these vacations: a) Vacate the easternmost portion of Riverview Drive Right-of-Way between Broad Street and Lot 2C Original Townsite of Kenai Laddville Replat No. 3; and, b) Vacate the portion of the Broad Street Right-of-Way South of Cook Avenue; and, 29 Resolution No. 2018-41 Page 2 of 2 c) Vacate the unnamed Right-of-Way South of Cook Avenue adjacent to Lot 2C Original Townsite of Kenai Laddville Replat No. 3 and Lot 1, Block 18, Original Townsite of Kenai. Section 2. That this resolution takes effect immediately upon passage. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fifth day of July, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk 30 32C41132211 & 25A4B51B6B947(19)(17)(7)805805A817A601813805707804800805A817A6018138057078048028075158168078068098011881080580280751581680780680980118810805801.100 'Date: 6/27/2018The 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 equals 100 feetProposedOriginal Townsiteof Kenai Bluff ReplatCOOK AVENUERIGHT-OF-WAY DEDICATION31 e t1/Y~C»l!Olr'Q.IOAS"'91 ,,,..~.~(/II'~ ...... !Jt/ff llDNI •J'V&'IC C/11' l.9Ut liCT () M:OOllO°'Mt""°'.._..IOIO ~ •)~"'--~-.......... -... ~ ..... CR)'<Jlll--,, ...... _.,. __ ~-----~ ...... ""'-~--......lllollrln. l)~-~--t.t•_,.._"' . ... 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'""-0.0.Ytll ____ ..__ CERI!flCAIE of Ol!NERSH!P and DEDICATION ::: ;:;:ac bi I WWW N'1DllLGICl"WJIUI: <ow.~-" NOTARY'S ACJ(NO!!LEPGllENT CERTIFICATE o f Ol!NERSIDP and QEPICAI!ON NOTARY'S ACJ(NOWJ.EPGMENT KPB rnz No. _ ...... ,. ..::...-:--..:. -- KPB 20 18 -057 32 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Willie Anderson, Planning Assistant DATE: July 5, 2018 SUBJECT: Resolution 2018-41 – Consenting to the Vacation of the Easternmost Portion of Riverview Drive Right-of-Way Between Broad Street and Lot 2C, Original Townsite of Kenai Laddville Replat No. 3, a Portion of Broad Street Right-of-Way South of Cook Avenue, and the Unnamed Right-of-Way South of Cook Avenue Adjacent to Lot 2C Original Townsite of Kenai Laddville Replat No. 3 and Lot 1, Block 18, Original Townsite of Kenai The purpose of a preliminary plat of the Original Townsite of Kenai Bluff Replat is to reconfigure five parcels into three lots: Lots 1A and 2C1, and Tract A, Block 18, Original Townsite of Kenai Bluff Replat. The proposed replat would also delineate the rights-of-way to be vacated with hash marks. The rights-of-way are for a portion of Riverview Drive, Broad Street, and the unnamed right-of-way to be vacated by this plat. These rights-of-way have not been developed and do not provide access to the existing parcels. Access to the proposed Lots 1A and 2C1, Block 18 would be provided via Cook Avenue, which is a City maintained gravel road. Access to the proposed Tract A, Block 18, will be provided by the dedication of the parcel shown as Broad Street on the proposed plat. The bluff has eroded considerably, and the right-of-way vacations are part of a bluff restoration project. The subject parcels are zoned Central Commercial. Pursuant to Kenai Municipal Code (KMC) 14.24.010 – Minimum Lot Area Requirements, the Central Commercial Zoning District has no minimum required parcel size. Therefore, the proposed preliminary plat would meet lot size requirements. On January 24, 2018, the City of Kenai Planning & Zoning Commission passed Resolution PZ2018-02, recommending approval of the preliminary plat of Original Townsite of Kenai Bluff Replat; subject to the following conditions: a. Further development of the property shall conform to all Federal, State and local regulations. 33 Page 2 of 2 Resolution 2018-41 b. The City Council for the City of Kenai must approve the vacation of the right-of-way for Riverview Drive pursuant to Kenai Municipal Code 22.05.110 and Kenai Peninsula Borough Code 20.70.110. c. The City Manager must sign the proposed plat to accept the dedication of the right of -way created on the parcel of property owned by the City of Kenai. d. The area that the City of Kenai is proposing be dedicated to right-of -way should be delineated or noted on the plat. On May 29, 2018, the Kenai Peninsula Borough Planning Commission met and approved the Preliminary Plat of Original Townsite of Kenai Bluff Replat consistent with the recommendation of the Planning and Zoning Commission for the City of Kenai. The Kenai Planning and Zoning Commission reviewed the plat at their January 24, 2018 meeting. The Kenai Peninsula Borough Plat Committee approved the plat at their June 25, 2018 meeting. Pursuant to AS 29.40.140 and KMC 22.05.110, the Kenai Peninsula Borough has submitted a request to the City of Kenai for their consent to the vacation of the rights-of-way as shown on the preliminary plat of Original Townsite of Kenai Bluff Replat. Thank you for your consideration. 34 KENAI CITY COUNCIL – REGULAR MEETING JUNE 20, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 VICE MAYOR TIM NAVARRE, 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. Vice Mayor Navarre called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Vice Mayor Navarre led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor (telephonic) Robert Molloy Henry Knackstedt Tim Navarre Jim Glendening Mike Boyle (telephonic) 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 Vice Mayor Navarre noted the following modifications to the agenda: Add to item D.3. Ordinance No. 3026-2018 • Analysis Memo from the City Attorney Add to item D.4. Ordinance No. 3027-2018 • Analysis Memo from the City Attorney Add to item D.10. Resolution No. 2018-33 • Amendment Memo 35 City of Kenai Council Meeting Page 2 of 13 June 20, 2018 Add to item G.3. Special Use Permit to Alaska Air Fuel • Memo Re. Airport Commission Recommendation Add to item G.4. Special Use Permit to HDL Engineering • Memo Re. Airport Commission Recommendation Add to item G.5. Special Use Permit to Reddi Towing & Salvage • Memo Regarding Airport Commission Recommendation Remove G.6. from the Amending an Employment Agreement Consent Agenda: Between The City of Kenai and the City Attorney, Scott Bloom Swap D.4. with D.3. To consider Ordinance No. 3027-2018 before Ordinance No. 3026-2018. MOTION: Council Member Molloy MOVED to approve the agenda with the requested revisions to the agenda and packet and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda as amended during approval of the agenda and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, the public hearing was closed. VOTE: There being no objections, SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS 1. Chris Parker, K+A Design Studios and Mark Blanning, Wince-Corthell-Bryson – Airport Terminal Rehabilitation Project Update 36 City of Kenai Council Meeting Page 3 of 13 June 20, 2018 Chris Parker with K+A Design Studios and Mark Blanning with Wince-Corthell-Bryson provided an overview of the Airport Terminal Rehabilitation project noting the terminal had not undergone a major renovation in fifty years. Some changes included a communication room, service animal relief area, moving the parking kiosk inside, adding electronic device charging stations, creating larger offices for the airlines, modifying car rental areas. It was also noted that cost estimates were expected soon which would determine whether funding was sufficient. C. UNSCHEDULED PUBLIC COMMENTS Ron Carlson spoke about starting a small gunsmith business from his home, however, he discovered he lives in a zone where no home occupations were allowed. He asked for an amendment to the zoning code so he could get his home business started. Mike Soriski spoke about a cul-de-sac in his neighborhood where illegal activities such as drugs and trash dumping are taking place. He asked for the City’s help with something such as jersey barriers to block the cul-de-sac during the summer months. D. PUBLIC HEARINGS 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) MOTION: Council Member Molloy MOVED to enact Ordinance No. 3024-2018 and Council Member Knackstedt SECONDED the motion. Vice Mayor Navarre opened the public hearing. There being no one wishing to be heard, public comment was closed. Administration was thanked for allocating a percentage of the increase to the Airport Fund. Clarification was provided that the FY19 budget was developed using a five year average and administration was reviewing operational changes it mitigate future overages. VOTE: YEA: Molloy, Gabriel, Navarre, Glendening, Knackstedt, Pettey, Boyle NAY: MOTION PASSED UNANIMOUSLY. 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) MOTION: 37 City of Kenai Council Meeting Page 4 of 13 June 20, 2018 Council Member Knackstedt MOVED to enact Ordinance No. 3025-2018 and Council Member Glendening SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. It was noted that the Planning and Zoning Commission supported the changes unanimously. Support for the changes was expressed given the input from neighborhoods. VOTE: YEA: Molloy, Gabriel, Boyle, Navarre, Glendening, Knackstedt, Pettey NAY: MOTION PASSED UNANIMOUSLY. 3. 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) [Clerk’s Note: This item was moved during Approval of the Agenda to be take up before Ordinance No. 3026-2018.] MOTION: Council Member Molloy MOVED to enact Ordinance No. 3027-2018 and Council Member Knackstedt SECONDED the motion. Vice Mayor Navarre opened the public hearing. Duane Bannock thanked administration and Council for hearing past concerns and working to bring forth this ordinance; requested two additional terms and conditions that had been allowed for in two previous transactions. There being no one else wishing to be heard, public comment was closed. Vice Mayor Navarre passed the gavel to Council Member Knackstedt. MOTION TO AMEND: Vice Mayor Navarre MOVED to amend by adding a new whereas clause at the end that reads as follows, “the City has received a good faith deposit from the purchaser to cover City expenses related to the sale and in fairness and at the request of the purchaser who was ready to purchase the property when a recent appraisal was valid, the City should cover the new appraisal cost,” and add a new subsection b to section 3 of the ordinance to read as follows, “Notwithstanding KMC 21.15.190, the City will pay the appraisal cost for the property and apply the good faith deposit provided by the purchaser to the other related City expenses and the purchase price, however, should the purchaser not complete the sale within twelve months of the appraisal date, the purchaser shall pay the appraisal cost consistent with City code,” and remove the period and 38 City of Kenai Council Meeting Page 5 of 13 June 20, 2018 add a semicolon, the word, “and,” and a comma to the end of the now second to last whereas clause, and Council Member Pettey SECONDED the motion. It was suggested that it was important for the City, when dealing with the public, to treat everyone the same; however, sometimes each situation is a little different. It was pointed out that in the private sector there are negotiations on closing costs. Negotiation factors such as payment of taxes, utilities, and lease payments were discussed. Clarification was provided that the lessee was to pay for the appraisal pursuant to Resolution No. 2018-12 and Kenai Municipal Code 21.15.190 which was last amended in 2007. It was also confirmed that the lessee approached the City for the purchase of the property after Resolution No. 2018-12 was adopted. It was pointed out that the amendment would show goodwill toward the community and both parties negotiated in fairness and clarification provided that prior to 2018, an appraisal was obtained in 2015 and was paid for by the City. It was reiterated that the resolutions adopted in February created equality and fairness for the ten properties identified. VOTE ON THE AMENDMENT: YEA: Navarre, Glendening, Pettey NAY: Molloy, Gabriel, Knackstedt, Boyle MOTION FAILED. MOTION TO AMEND: Vice Mayor Navarre MOVED to amend by adding a new whereas clause at the end that reads as follows, “the City has received a good faith deposit from the purchaser to cover City expenses related to the sale and in fairness and at the request of the purchaser who was ready to purchase the property when a recent appraisal was valid, the City should cover half of the new appraisal cost,” and add a new subsection b to section 3 of the ordinance to read as follows, “Notwithstanding KMC 21.15.190, the City will pay half the appraisal cost for the property and apply the good faith deposit provided by the purchaser to the other related City expenses and the purchase price, however, should the purchaser not complete the sale within twelve months of the appraisal date, the purchaser shall pay the full appraisal cost consistent with City code,” and remove the period and add a semicolon, the word, “and,” and a comma to the end of the now second to last whereas clause, and Council Member Glendening SECONDED the motion. It was reiterated that in other real estate deals the purchasers and sellers could negotiate to make the deals fair and equitable; sending the message that the City was open for business. It was noted that in typical commercial deals, the purchaser pays for the appraisal. VOTE ON THE AMENDMENT: YEA: Navarre, Glendening, Pettey NAY: Molloy, Gabriel, Knackstedt, Boyle MOTION FAILED. 39 City of Kenai Council Meeting Page 6 of 13 June 20, 2018 Appreciation was expressed for administration’s work; gratitude expressed for purchasers coming forward and investing in the City. VOTE ON THE MAIN MOTION: YEA: Molloy, Gabriel, Navarre, Glendening, Knackstedt, Pettey NAY: Boyle MOTION PASSED. 4. 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) [Clerk’s Note: This item was moved during Approval of the Agenda to be take up after Ordinance No. 3027-2018.] MOTION: Council Member Molloy MOVED to enact Ordinance No. 3026-2018 and Council Member Glendening SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. It was clarified that the needed avigation easement was appropriately addressed. Gratitude was expressed for the purchasers investment in the City. VOTE: YEA: Molloy, Gabriel, Navarre, Glendening, Knackstedt, Pettey NAY: Boyle MOTION PASSED. 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) MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 3028-2018 and Council Member Molloy SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. An overview of the shift requirements and the staff requested shift changes was provided. 40 City of Kenai Council Meeting Page 7 of 13 June 20, 2018 VOTE: YEA: Molloy, Gabriel, Navarre, Glendening, Knackstedt, Pettey, Boyle NAY: MOTION PASSED UNANIMOUSLY. 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) MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 3029-2018 and Council Member Molloy SECONDED the motion. Vice Mayor Navarre opened the public hearing; tbeing no one else wishing to be heard, public comment was closed. VOTE: YEA: Molloy, Gabriel, Navarre, Glendening, Boyle, Knackstedt, Pettey NAY: MOTION PASSED UNANIMOUSLY. 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) MOTION: Council Member Molloy MOVED to enact Ordinance No. 3030-2018 and Council Member Knackstedt SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. Confirmation was provided that all transactions with the property had concluded with this sale and the ordinance made proceeds available for expenditure. It was noted that administration was looking to expand the grant language to allow funds to be spent on the North Beach. VOTE: YEA: Molloy, Gabriel, Navarre, Glendening, Knackstedt, Pettey, Boyle NAY: 41 City of Kenai Council Meeting Page 8 of 13 June 20, 2018 MOTION PASSED UNANIMOUSLY. 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) MOTION: Council Member Molloy MOVED to enact Ordinance No. 3031-2018 and Council Member Knackstedt SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. It was pointed out that the need for this change was discovered in the recent performance evaluations. VOTE: YEA: Molloy, Gabriel, Navarre, Glendening, Knackstedt, Pettey, Boyle NAY: MOTION PASSED UNANIMOUSLY. 9. Ordinance No. 3032-2018 – Increasing Estimated Revenue and Appropriations in the Water & Sewer Fund tor Utility Costs in Excess of Budgeted Amounts. (Administration) MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 3032-2018 and Council Member Molloy SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that the excess was in electricity only due to three large blowers oxygenating the plant to deal with the ammonia issue discovered in the last year. It was noted that probes had been purchased to also help with ammonia levels and will be installed soon; further noted that the excess came to light after the FY19 budget was set so something may be needed in the future, too. VOTE: YEA: Molloy, Gabriel, Navarre, Glendening, Knackstedt, Pettey, Boyle NAY: MOTION PASSED UNANIMOUSLY. 42 City of Kenai Council Meeting Page 9 of 13 June 20, 2018 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) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-33 and Council Member Glendening SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. MOTION TO AMEND: Council Member Molloy MOVED to amend by adding a new section 2 to read, “approval contingent on final plat granting two (2) thirty foot (30’) utility easements as shown on the attached exhibit,” attach the new exhibit, and renumber the last section to section 3, and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. VOTE ON THE AMENDMENT: There being no objection; SO ORDERED. VOTE ON THE MAIN MOTION: YEA: Molloy, Gabriel, Navarre, Boyle, Glendening, Knackstedt, Pettey NAY: MOTION PASSED UNANIMOUSLY. 11. Resolution No. 2018-34 – Awarding a Professional Services Agreement for Ambulance Billing Services to Systems Design West, LLC. (Administration) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-34 and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. Administration was thanked for including the methodology for selection and not selecting on cost alone. VOTE: There being no objections, SO ORDERED. 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) MOTION: 43 City of Kenai Council Meeting Page 10 of 13 June 20, 2018 Council Member Knackstedt MOVED to adopt Resolution No. 2018-35 and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. 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) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-36 and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. 14. Resolution No. 2018-37 – Awarding an Agreement to Crowley Fuels, LLC for the Fuel Furnish and Delivery 2018 Invitation to Bid. (Administration) MOTION: Council Member Molloy MOVED to adopt Resolution No. 2018-37 and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. Vice Mayor Navarre opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. E. MINUTES 1.*Regular Meeting of June 6, 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. 44 City of Kenai Council Meeting Page 11 of 13 June 20, 2018 2. Action/Approval – Purchase Orders over $15,000. MOTION: Council Member Molloy MOVED to approve the Purchase Orders over $15,000 as listed and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. 3. *Action/Approval – Special Use Permit to Alaska Air Fuel for Aircraft Parking on the Apron. (Administration) Approved by the Consent Agenda. 4. *Action/Approval – Special Use Permit to HDL Engineering for Soils Test Lab and Equipment Storage. (Administration) Approved by the Consent Agenda. 5. *Action/Approval – Special Use Permit to Reddi Towing & Salvage, LLC for an Impound Lot. (Administration) Approved by the Consent Agenda. 6. *Action/Approval – Amending an Employment Agreement between the City of Kenai and City Attorney Scott Bloom. (City Attorney) [Clerk’s Note: This item was removed from the Consent Agenda during Approval of the Agenda] MOTION: Council Member Knackstedt MOVED to amend the City Attorney’s employment agreement and Council Member Molloy SECONDED the motion. MOTION TO AMEND: Council Member Knackstedt MOVED to amend the City Attorney’s employment agreement by increasing the compensation for FY19 by $3,000 over his FY18 salary. Council Member Molloy SECONDED the motion and requested UNANIMOUS CONSENT. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. UNANIMOUS CONSENT was requested on the main motion. VOTE: There being no objections, SO ORDERED. 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) Introduced by the consent agenda and public hearing set for July 5, 2018. 45 City of Kenai Council Meeting Page 12 of 13 June 20, 2018 [Clerk’s Note: Mayor Gabriel and Council Member Boyle left the meeting at 8:28 p.m.] H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – June meeting canceled; next meeting July 12 2. Airport Commission – No report due to no quorum; next meeting July 12. 3. Harbor Commission – It was reported that on June 11 representatives from United Cook Inlet Drifters Association expressed concern about the wake signage and identified locations for additional signage; next meeting July 9. It was noted the Rules and Responsibilities Sub-committee met on June 12 and developed a framework for their process and reviewed much of Title 11 for initial recommendations for change. 4. Parks and Recreation Commission – No report due to no quorum; held a work session to tour Tsalteshi Trail system; next meeting August 2. 5. Planning and Zoning Commission – It was reported that on June 13, the Commission reviewed a Conditional Use Permit for a commercial marijuana retail store, a land lease application, approved a corrected Conditional Use Permit, and conducted a completeness review for a Conditional Use Permit for resource extraction; next meeting June 27. 6. Beautification Committee – No report; next meeting September 10. 7. Mini-Grant Steering Committee – Next meeting July 6. I. REPORT OF THE MAYOR Vice Mayor Navarre reported he attended Chamber of Commerce awards luncheon and recognized all recipients. J. ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: • Asked if a Council Member would be on the terminal design committee; • Pointed out bonding levels for city manager, city clerk, and finance director and encouraged looking at changes; • Noted patrols for no wake zone during high tide would be reduced to traditionally busy times; • Findings from fact-finding trip on the river; noted Kenai Municipal Code leaves no- wake signage to manager and likely wouldn’t put signs up after what was witnessed; would put safety information on the app and at the dock; • Provided an update on the deadlines for the Bluff Erosion Project; • Noted an Alaska LNG meeting in Nikiski where they advised of the selected bypass route which was the most constructible and least impactful; • Reviewed old town area for congested parking; • Noted funding for the Flight Service Station Remodel project was proceeds from the FAA’s lease payments. 46 City of Kenai Council Meeting Page 13 of 13 June 20, 2018 2. City Attorney – No report. 3. City Clerk – J. Heinz provided an overview of recent Northwest Clerk’s Institute training. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) None. 2. Council Comments Council Member Pettey appreciated public property was going into private hands and the City was open for business. Council Member Glendening attended the Annual Air Fair where he helped grill. Council Member Knackstedt appreciated the food; thanked airport manager for her help at the Annual Air Fair. Vice Mayor Navarre noted the success of the Annual Air Fair; provided notice he would be participating telephonically in the July 5 meeting. L. EXECUTIVE SESSION – None. M. PENDING ITEMS – None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 9:15 p.m.. I certify the above represents accurate minutes of the Kenai City Council meeting of June 20, 2018. _____________________________ Jamie Heinz, CMC City Clerk 47 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: JULY 5, 2018 VENDOR DESCRIPTION PERS PERS HOMER ELECTRIC ELECTRIC USAGE ENSTAR NATURAL GAS GAS USAGE INVESTMENTS VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT VARIOUS LIABILITY 88,613.57 VARIOUS UTILITIES 112,338.70 VARIOUS UTILITIES 30 ,773.09 MATURITY DATE AMOUNT Effect. Int. 48 PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: JULY 5, 2018 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT UNIVAR FY19 CHEMICALS WATER OPERATING SUPPLIES 15,000.00 NALCO COMPANY FY19 CHEMICALS WATER OPERATING SUPPLIES 45 ,000 .00 UNIVAR FY19 CHEMICALS WWTP OPERATING SUPPLIES 20 ,000 .00 KENAI PENINSULA BOROUGH FY19 SLUDGE DISPOSAL WWTP PROFESSIONAL SERVICES 35,000.00 INCREASE OF EXISTING PURCHASE ORDER VENDOR DESCRIPTION P.O.# -DEPT. REASON AMOUNT TOTAL PO AMT 49 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin – Public Works Director DATE: June 22, 2018 SUBJECT: Purchase Orders over $15,000 The purpose of this memo is to request approval for several purchase orders over $15,000 for routine operational chemicals at the Water Treatment Plant and Waste Water Treatment Plant, as well as authorization to haul sludge from the WWTP to the Borough’s Central Peninsula Landfill. Details below: Water Department Operating, R&M Supplies Purchase Order to Nalco for $45,000.00 (Polymers for the Water Distribution System) Purchase Order to Univar for $15,000.00 (Chlorine for the Water Distribution System) Waste Water Treatment Plant Department Operating, R&M Supplies Purchase Order to Univar for $20,000.00 (Disinfection Chemicals for Sewage Treatment) Waste Water Treatment Plant Professional Services Purchase Order to Kenai Peninsula Borough for $35,000.00 (Pressed Sludge to Landfill) Each of these POs are to replace existing FY18 POs for current contracts. Thank you for your consideration. 50 New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Council Member Knackstedt CITY OF KENAI ORDINANCE NO. 3034-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REPEALING KENAI MUNICIPAL CODE CHAPTERS 16.05- GENERAL PROVISIONS, AND 16.10- PROCEDURE, WITHIN TITLE 16- PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENTS AND RE- ENACTING AND RENAMING CHAPTER 16.05- SPECIAL ASSESSMENT DISTRICTS. WHEREAS, amending the City’s process for forming special assessment districts to complete or improve capital projects by including more notice requirements, specificity and certainty towards the front end of the process is in the City’s best interest; and, WHEREAS, the proposed amendments are intended to ensure property owners and the City have as much information as is reasonably possible prior to agreeing to the project and spending significant time and resources; and, WHEREAS, requiring 70% as opposed to 50% of affected property owners to approve a project ensures a greater majority of property owners desire to have the project built and accept responsibility for full or partial payment; and, WHEREAS, providing a payment deferral process for low-income residents will help those residents maintain their households while supporting certain capital improvements. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Repeal of Chapter 16.05 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 16.05- General Provisions, is hereby repealed as follows: [16.05.010 ASSESSMENT AUTHORITY. (A) THE CITY COUNCIL MAY ASSESS AGAINST THE PROPERTY OF A GOVERNMENTAL UNIT AND PRIVATE REAL PROPERTY BENEFITED ALL OR A PORTION OF THE COST OF CONSTRUCTING OR IMPROVING CAPITAL IMPROVEMENTS. ANY SUCH SPECIAL ASSESSMENT SHALL BE IN PROPORTION TO, AND SHALL NOT EXCEED, THE VALUE OF THE BENEFIT FROM THE IMPROVEMENT. (B) ALL BENEFITED REAL PROPERTY, INCLUDING THAT WHICH IS EXEMPT FROM TAXATION IN ACCORDANCE WITH LAW, SHALL BE LIABLE FOR THE COST OF PUBLIC IMPROVEMENTS ASSESSED UNLESS SPECIFICALLY EXEMPTED FROM ASSESSMENTS FOR PUBLIC IMPROVEMENTS BY LAW. NO ASSESSMENTS SHALL BE LEVIED IN EXCESS OF TWENTY-FIVE (25%) PERCENT OF THE FAIR MARKET VALUE OF PROPERTY AFTER GIVING EFFECT TO THE BENEFIT ACCRUING FROM THE WORK OR ACTION FOR WHICH ASSESSED, EXCEPT WHERE ALL BENEFITED OWNERS WAIVE THE ABOVE 25% LIMITATION AND AGREE TO ACCEPT ON A PROPORTIONAL BASIS 100% OF THE COSTS OF IMPROVEMENTS PROPERTY. 51 Ordinance No. 3034-2018 Page 2 of 17 New Text Underlined; [DELETED TEXT BRACKETED] 16.05.020 HOW IMPROVEMENT PROPOSAL INITIATED. AN IMPROVEMENT PROPOSAL MAY BE INITIATED BY: (A) PETITION TO THE CITY COUNCIL FILED WITH THE CITY CLERK, BY THE OWNERS OF PROPERTY IN THE PROPOSED IMPROVEMENT DISTRICT, OR, (B) RESOLUTION OF THE CITY COUNCIL. 16.05.030 REQUIREMENTS OF PETITION. THE PETITION SHALL INCLUDE A DESCRIPTION OF THE PROPOSED IMPROVEMENTS. UNLESS ALL BENEFITED PROPERTY OWNERS’ SIGNATURES ARE REQUIRED BY VIRTUE OF KMC 16.05.010, THE PETITION SHALL BE SIGNED BY THE OWNERS OF FIFTY PERCENT (50%) OR MORE OF THE PROPERTIES WHICH WILL BE BENEFITED BY THE PROPOSED IMPROVEMENT. NO PROPERTY OWNER MAY WITHDRAW HIS APPROVAL OF THE PROPOSED IMPROVEMENT FOR A PERIOD OF SIX (6) MONTHS AFTER THE PETITION HAS BEEN FILED, UNLESS AUTHORIZED BY COUNCIL. 16.05.040 CONTENTS OF RESOLUTION. THE RESOLUTION OF THE CITY COUNCIL INITIATING AN IMPROVEMENT PROPOSAL SHALL INCLUDE A DESCRIPTION OF THE PROPOSED IMPROVEMENT AND DIRECT THE CITY MANAGER TO MAKE AN INVESTIGATION AND REPORT THEREON. 16.05.050 PERMISSIBLE METHODS FOR FINANCING LOCAL IMPROVEMENT DISTRICTS. (a) BY GENERAL OBLIGATION BONDS: (1) LOCAL IMPROVEMENT DISTRICTS FOR CAPITAL IMPROVEMENTS MAY BE FINANCED BY USE OF FUNDS OBTAINED FROM THE SALE OF GENERAL OBLIGATION BONDS APPROVED BY THE VOTERS OF THE CITY OF KENAI FOR SUCH CAPITAL IMPROVEMENTS. (2) THE PRINCIPAL AND INTEREST OF GENERAL OBLIGATION BONDS SO ISSUED SHALL BE PAYABLE FROM THE LEVY OF ASSESSMENTS SO ISSUED SHALL BE PAYABLE FROM THE LEVY OF ASSESSMENTS AGAINST THE PROPERTY BENEFITED, BUT ANY DEFICIENCY IN MEETING PAYMENTS OF PRINCIPAL AND INTEREST SHALL BE MADE UP BY AN APPROPRIATION FROM THE GENERAL FUND. THE ASSESSMENTS SHALL CONSTITUTE A SINKING FUND FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON THE BONDS. (3) INTEREST ON FUNDS BORROWED TO FINANCE THE CAPITAL IMPROVEMENT PRIOR TO THE SALE OF GENERAL OBLIGATION BONDS SHALL BE A COST OF THE IMPROVEMENT DISTRICT. (b) BY SPECIAL ASSESSMENT BONDS: (1) THE CITY COUNCIL MAY, BY ORDINANCE, AUTHORIZE THE ISSUANCE AND SALE OF SPECIAL ASSESSMENT BONDS TO PAY ALL OR PART OF THE COST OF AN IMPROVEMENT IN A LOCAL IMPROVEMENT DISTRICT. THE PRINCIPAL AND INTEREST OF BONDS SO ISSUED SHALL BE PAYABLE SOLELY FROM THE LEVY OF SPECIAL ASSESSMENTS AGAINST PROPERTY TO BE BENEFITED. THE ASSESSMENTS SHALL CONSTITUTE A SINKING FUND FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON THE BONDS. THE PROPERTY BENEFITED MAY BE PLEDGED BY THE COUNCIL TO SECURE A PAYMENT. (2) INTEREST ON FUNDS BORROWED TO FINANCE THE CAPITAL IMPROVEMENT PRIOR TO THE SALE OF SPECIAL ASSESSMENT BONDS SHALL BE A COST OF THE IMPROVEMENT DISTRICT. 52 Ordinance No. 3034-2018 Page 3 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (C) BY CITY FUNDS (WITH OR WITHOUT SUBSEQUENT RECOVERY BY ASSESSMENT AGAINST BENEFITED PROPERTY). (D) BY ANY COMBINATION OF TWO OR MORE OF THE ABOVE. 16.05.060 AUTHORIZED CAPITAL IMPROVEMENTS. A SPECIAL ASSESSMENT DISTRICT FOR A PUBLIC IMPROVEMENT MAY BE INITIATED FOR ANY ONE OR MORE OF THE FOLLOWING IMPROVEMENTS: (A) STREETS, ROADS, PARKWAYS, STREET LIGHTING, CURBS, GUTTERS, DRIVEWAYS, CURB CUTS, AND SIDEWALKS; (B) STORM SEWERS, DRAINS, OR SETTLING BASINS; (C) SANITARY SEWERS, INCLUDING INTERCEPTORS, COLLECTORS, LATERALS, AND SEWER SERVICE CONNECTIONS; (D) PARKS OR PLAYGROUNDS; (E) OFF-STREET PARKING FACILITIES; (F) CHANGES IN CHANNELS OF STREAMS OR WATERCOURSES; (G) WATER SUPPLY SYSTEMS, INCLUDING WATER MAINS, WATER DISTRIBUTION LINES, WATER SERVICE CONNECTIONS, AND FIRE HYDRANTS; (H) PUBLIC SHELTERS; OR (I) STREET, ROAD, PARKWAY AND SIDEWALK DRAINAGE, DUST CONTROL, OR SNOW REMOVAL. 16.05.070 PROPERTY ASSESSED. THE COUNCIL MAY ASSESS FOR AN IMPROVEMENT ANY REAL PROPERTY BENEFITED OR ANY INTEREST IN REAL PROPERTY BENEFITED, AND THE PROPERTY BENEFITED MAY INCLUDE ABUTTING, ADJOINING, ADJACENT, CONTIGUOUS, NON-CONTIGUOUS, OR OTHER PROPERTY OR INTEREST IN PROPERTY BENEFITED DIRECTLY OR INDIRECTLY BY THE IMPROVEMENT. THE PROPERTY TO BE ASSESSED MAY INCLUDE ANY PROPERTY WHICH IS OTHERWISE FOR ANY REASON EXEMPT FROM TAXATION BY LAW. A BENEFITED PROPERTY MAY BE INCLUDED IN WHOLE OR IN PART IN MORE THAN ONE LOCAL IMPROVEMENT DISTRICT. 16.05.080 AMOUNT ASSESSED. THE COUNCIL MAY ASSESS 100% OF ANY OR ALL COSTS OF A PUBLIC IMPROVEMENT AGAINST THE PARCELS OF PROPERTY BENEFITED BY THE IMPROVEMENT. UNLESS A SPECIFIC METHOD OF COMPUTATION OF THE BENEFIT TO THE PROPERTY IS EXPRESSLY PROVIDED IN THIS CHAPTER FOR ASCERTAINING THE AMOUNT TO BE ASSESSED AGAINST THE PROPERTY BENEFITED BY A DESIGNATED IMPROVEMENT, THE COUNCIL SHALL ASSESS EACH PARCEL OF PROPERTY IN A LOCAL ASSESSMENT DISTRICT IN PROPORTION TO THE VALUE OF THE BENEFITS RECEIVED FROM THE IMPROVEMENTS. 16.05.090 COSTS. THE COSTS OF AN IMPROVEMENT SHALL BE THE ACTUAL COSTS OF THE IMPROVEMENT, INCLUDING ACQUISITION OF INTEREST IN LAND FOR THE IMPROVEMENT, DESIGN, ENGINEERING, ADMINISTRATION, OVERHEAD, PROFESSIONAL SERVICES, BOND COSTS, AND INTEREST INCURRED AS A RESULT OF THE IMPROVEMENT, AND ALL OTHER COSTS RESULTING FROM THE CONSTRUCTION OF THE IMPROVEMENT. BOND INTEREST SHALL BE CALCULATED FROM THE FIRST DATE WHEN ACTUAL COSTS ARE INCURRED BY THE CITY. 53 Ordinance No. 3034-2018 Page 4 of 17 New Text Underlined; [DELETED TEXT BRACKETED] 16.05.100 METHOD OF ASSESSMENT. THE PROVISIONS OF THIS CHAPTER SHALL NOT PREVENT OR BE CONSTRUED TO PREVENT THE COLLECTION OF ASSESSMENTS OR PAYMENT IN LIEU OF ASSESSMENTS FOR IMPROVEMENTS IN ANY OTHER MANNER AS PROVIDED BY LAW. THE METHODS OF ASSESSMENT ARE DESCRIBED IN GENERAL HEREIN AND WILL REQUIRE DECISIONS OF POLICY BY THE COUNCIL TO MEET CURRENT NEEDS. IN GENERAL, THE ASSESSMENT RATE FOR ANY SPECIAL ASSESSMENT DISTRICT IS COMPUTED BY DIVIDING THE TOTAL ASSESSABLE COST OF SUCH IMPROVEMENT BY THE TOTAL NUMBER OF ASSESSMENT UNITS. THE ENTIRE PROJECT IS CONSIDERED AS A WHOLE WHEN COMPUTING THE ASSESSMENT RATE AND APPLYING IT TO ALL PROPERTIES. THE COST OF INSTALLING THE IMPROVEMENT IN FRONT OF OR PAST ANY PARTICULAR PARCEL OF PROPERTY IS ONLY ONE METHOD PERMITTED OF ASSESSMENT. EXCEPT AS OTHERWISE PROVIDED BY LAW, ORDINANCE, OR BY COUNCIL-APPROVED POLICY FOR A PARTICULAR LOCAL IMPROVEMENT DISTRICT, COSTS WILL BE ALLOCATED ON A SQUARE FOOTAGE BASIS EXTENDING ONE LOT DEEP ADJACENT TO IMPROVEMENTS IN SUBDIVIDED AREAS, MIDWAY BETWEEN STREETS UP TO 150 FEET OF DEPTH IN UNSUBDIVIDED RESIDENTIAL AREAS, AND UP TO 300 FEET OF DEPTH IN UNSUBDIVIDED COMMERCIAL AND INDUSTRIAL AREAS. GREATER AREA MAY BE INCLUDED WHEN ASSESSING COSTS FOR INTERCEPTOR SEWERS OR WATER MAINS PROVIDING FIRE PROTECTION. ] Section 2. Repeal of Chapter 16.10 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 16.10- Procedure, is hereby repealed as follows: [16.10.010 CITY MANAGER ACTION. THE CITY MANAGER SHALL, WITHIN SIXTY (60) DAYS AFTER THE FILING OF THE PETITION OR PASSAGE OF THE RESOLUTION, MAKE A SURVEY OF, AND REPORT ON, THE PROPOSED IMPROVEMENT TO THE CITY COUNCIL CONCERNING THE NEED FOR, THE DESIRABLE SCOPE OF, AND THE ESTIMATED COST OF THE PROPOSED IMPROVEMENT, PROSPECTIVE GRANTS THAT MIGHT BE SECURED TO ASSIST IN PAYMENT FOR THE IMPROVEMENT, RECOMMENDATION AS TO GRANT APPLICATION, AND THE RECOMMENDED PERCENTAGE OF THE IMPROVEMENT PLAN COST TO BE ASSESSED AGAINST THE PROPERTY BENEFITED. THE REPORT SHALL CONTAIN A DESCRIPTION DEFINING THE DISTRICT AND THE PROPERTIES TO BE ASSESSED AND SHOWING THE DESIRABLE SCOPE OF THE PROPOSED IMPROVEMENT. THE PROPOSED IMPROVEMENT DISTRICT MAY BE DEFINED BY: (A) METES AND BOUNDS DESCRIPTION; OR (B) BY A DESIGNATION OF THE BENEFITED PROPERTIES TO BE ASSESSED BY LOT, BLOCK, AND SUBDIVISION. 16.10.020 PRELIMINARY ASSESSMENT ROLL. WITHIN THIRTY (30) DAYS AFTER CONSIDERATION BY THE COUNCIL OF THE SURVEY AND REPORT, THE CITY MANAGER WILL PREPARE AND FILE WITH THE CITY CLERK A PRELIMINARY ASSESSMENT ROLL FOR THE PROPOSED IMPROVEMENT. THIS PRELIMINARY ASSESSMENT ROLL WILL INCLUDE THE NAME OF THE RECORD OWNER, A BRIEF DESCRIPTION OR DESIGNATION OF THE PROPERTY, AND THE ESTIMATED AMOUNT TO BE ASSESSED AGAINST THE PROPERTY. (Ord. 791) 54 Ordinance No. 3034-2018 Page 5 of 17 New Text Underlined; [DELETED TEXT BRACKETED] 16.10.030 SETTING OF PUBLIC HEARING ON IMPROVEMENT DISTRICT. WITHIN THIRTY (30) DAYS AFTER THE PRESENTATION OF THE PRELIMINARY ASSESSMENT ROLL BY THE CITY MANAGER, THE COUNCIL SHALL BY RESOLUTION SET A DATE WITHIN SIXTY (60) DAYS AFTER THE DATE OF SETTING FOR A PUBLIC HEARING ON THE PROPOSED IMPROVEMENT. (Ord. 791) 16.10.040 NOTICE OF PUBLIC HEARING ON IMPROVEMENT DISTRICT. PRIOR TO THE DATE OF HEARING, THE CITY CLERK SHALL PUBLISH A NOTICE AT LEAST ONCE A WEEK FOR FOUR (4) CONSECUTIVE WEEKS IN A NEWSPAPER OF GENERAL CIRCULATION DISTRIBUTED WITHIN THE MUNICIPALITY. THIS NOTICE SHALL INCLUDE A SUMMARY OF THE IMPROVEMENT, THE DESIGNATION OF THE PROPERTIES TO BE ASSESSED IN THE LOCAL IMPROVEMENT DISTRICT, THE PURPOSE OF THE PUBLIC HEARING, THE TIME AND PLACE FIXED FOR THE PUBLIC HEARING, THE FACT THAT A PRELIMINARY ASSESSMENT ROLL IS ON FILE WITH THE CITY CLERK, AND INFORMATION AS TO THE MANNER AND METHOD OF MAKING WRITTEN PROTEST OR OBJECTION TO THE ACTION TO BE TAKEN. THE CITY CLERK SHALL ALSO SEND NOTICE BY MAIL TO EVERY RECORD OWNER OF PROPERTY WITHIN THE PROPOSED LOCAL IMPROVEMENT DISTRICT AT LEAST FIFTEEN (15) DAYS PRIOR TO THE PUBLIC HEARING WHICH, IN ADDITION TO THE INFORMATION CONTAINED IN THE PUBLISHED NOTICE, SHALL INCLUDE A DESIGNATION OF THE ADDRESSEE’S PROPERTY TO BE ASSESSED AND THE ESTIMATED COST TO BE ASSESSED AGAINST SUCH PROPERTY. (Ord. 791) 16.10.050 WRITTEN OBJECTIONS. OBJECTION TO THE IMPROVEMENT PLAN MAY BE FILED IN WRITING WITH THE CITY CLERK UNTIL, BUT NOT ON, THE DATE OF PUBLIC HEARING. THE CITY CLERK SHALL PRESENT TO COUNCIL AT THE TIME OF THE HEARING, ALL OBJECTIONS FILED IN WRITING. (Ord. 791) 16.10.060 PUBLIC HEARING ON IMPROVEMENT DISTRICT. AT THE TIME AND PLACE NOTICED, THE COUNCIL SHALL HOLD A PUBLIC HEARING UPON THE NECESSITY FOR THE PROPOSED IMPROVEMENT. THE COUNCIL SHALL HEAR ALL INTERESTED PERSONS FAVORING OR OPPOSING THE PROPOSED IMPROVEMENTS AND SHALL CONSIDER ALL WRITTEN OBJECTIONS FILED. (Ord. 791) 16.10.070 COUNCIL ACTION. AFTER THE PUBLIC HEARING IS CLOSED, THE COUNCIL MAY INCREASE OR DECREASE THE SCOPE OR VALUE OF THE IMPROVEMENT, OR MAY DELETE FROM THE PROPOSED IMPROVEMENT DISTRICT PROPERTIES NOT BENEFITED BY THE IMPROVEMENT OR ADD PROPERTIES WHICH WOULD BE BENEFITED AND SHALL ADOPT A RESOLUTION DIRECTING CONTINUATION OR TERMINATION OF THE MODIFIED IMPROVEMENT DISTRICT. NO CHANGE MAY BE MADE RESULTING IN AN IMPROVEMENT DISTRICT OBJECTED TO BY OWNERS OF PROPERTIES BEARING FIFTY PERCENT (50%) OR MORE OF THE ESTIMATED COST TO BE BORNE BY THE PROPERTY OWNERS EXCEPT WITH THE APPROVAL OF AT LEAST SIX (6) MEMBERS OF THE COUNCIL. THE RESOLUTION DIRECTING CONTINUATION SHALL FIND THAT THE IMPROVEMENT IS NECESSARY AND OF BENEFIT TO THE PROPERTIES TO BE ASSESSED, AND THAT IT IS NOT OBJECTED TO BY OWNERS OF PROPERTIES BEARING FIFTY (50) PERCENT OR MORE OF THE ESTIMATED COSTS TO BE BORNE BY PROPERTY OWNERS OR, IN THE ALTERNATIVE, THAT IT HAS BEEN APPROVED BY AT LEAST SIX (6) MEMBERS OF THE COUNCIL. THE FINDINGS OF THE COUNCIL ARE CONCLUSIVE. THE RESOLUTION SHALL FURTHER 55 Ordinance No. 3034-2018 Page 6 of 17 New Text Underlined; [DELETED TEXT BRACKETED] REQUIRE THAT AN ACCOUNT BE KEPT OF ALL COSTS OF THE IMPROVEMENT AND THAT AFTER ALL COSTS ARE KNOWN THE CITY MANAGER SHALL PREPARE AN ASSESSMENT ROLL FOR THE IMPROVEMENT. THE RESOLUTION SHALL STATE THE ESTIMATED PERCENTAGE OF THE COSTS OF THE IMPROVEMENT TO BE ASSESSED AGAINST THE BENEFITED PROPERTIES. (Ord. 791) 16.10.080 ASSESSMENT ROLL. AFTER THE IMPROVEMENT HAS BEEN COMPLETED AND THE COSTS OF THE IMPROVEMENT COMPUTED, THE CITY MANAGER SHALL PREPARE AND FILE WITH THE CITY CLERK AN ASSESSMENT ROLL FOR THE ASSESSMENT DISTRICT. THE ASSESSMENT ROLL SHALL CONTAIN, AS TO EACH PROPERTY TO BE ASSESSED, A BRIEF DESCRIPTION OR DESIGNATION OF THE PROPERTY, THE NAME OF THE RECORD OWNER OF THE PROPERTY TO BE ASSESSED, AND THE AMOUNT TO BE ASSESSED AGAINST THE PROPERTY. THE PERSON IN WHOSE NAME PROPERTY IS LISTED ON THE MUNICIPAL PROPERTY TAX ROLL AS OWNER IS CONCLUSIVELY PRESUMED TO BE THE LEGAL OWNER OF RECORD. IF THE OWNER IS UNKNOWN, THE ASSESSMENT MAY BE MADE AGAINST THE “UNKNOWN OWNER.” (Ord. 791) 16.10.090 SETTING HEARING ON ASSESSMENT ROLL. AFTER THE ASSESSMENT ROLL IS FILED, THE COUNCIL SHALL FIX THE TIME AND PLACE FOR A PUBLIC HEARING ON OBJECTIONS TO THE ASSESSMENT ROLL. (Ord. 791) 16.10.100 NOTICE OF PUBLIC HEARING ON ASSESSMENT ROLL. NOTICE SHALL BE GIVEN FOR THE PUBLIC HEARING ON THE ASSESSMENT ROLL AS PRESCRIBED IN KMC 16.10.040. THE NOTICE TO BE PUBLISHED SHALL INCLUDE A SUMMARY OF THE IMPROVEMENT, THE DESIGNATION OF THE PROPERTIES TO BE ASSESSED IN THE ASSESSMENT DISTRICT, THE PURPOSE OF THE PUBLIC HEARING, AND THE TIME AND PLACE FIXED FOR THE PUBLIC HEARING. THE NOTICE BY MAIL, IN ADDITION TO THE INFORMATION CONTAINED IN THE PUBLISHED NOTICE, SHALL INCLUDE THE AMOUNT OF THE ACTUAL ASSESSMENT AGAINST THE PROPERTY OWNED BY THE ADDRESSEE. EACH NOTICE BY MAIL SHALL GENERALLY INFORM THE PROPERTY OWNER OF THE MANNER AND METHOD OF PROTESTING OR OBJECTING TO THE ACTION TO BE TAKEN AT THE PUBLIC HEARING. (Ord. 791) 16.10.110 PUBLIC HEARING ON ASSESSMENT ROLL. AT THE PUBLIC HEARING, AN OWNER OF THE PROPERTY TO BE ASSESSED SHALL HAVE THE RIGHT TO PRESENT HIS OBJECTIONS TO THE ASSESSMENT ROLL BY SHOWING ERRORS AND INEQUALITIES IN THE ASSESSMENT ROLL AND BY SUBMITTING ANY REASON FOR AMENDMENT AND CORRECTION OF THE ASSESSMENT ROLL. (Ord. 791) 16.10.120 CORRECTION AND DETERMINATION OF ASSESSMENT ROLL. AFTER THE PUBLIC HEARING, THE COUNCIL MAY CORRECT ANY ERROR OR INEQUALITY IN THE ASSESSMENT ROLL. WHEN THE ROLL IS FINALLY DETERMINED, THE CITY CLERK SHALL SO CERTIFY AND THE ROLL SHALL BE OFFICIALLY RECORDED. (Ord. 791) 16.10.130 RESOLUTION CONFIRMING ASSESSMENT ROLL AND FIXING PAYMENT. AFTER THE PUBLIC HEARING AND DETERMINATION OF THE ASSESSMENT ROLL, COUNCIL, BY RESOLUTION, SHALL CONFIRM THE ASSESSMENT ROLL OF THE LOCAL IMPROVEMENT DISTRICT. THE RESOLUTION SHALL PROVIDE FOR THE LEVYING OF THE ASSESSMENT AGAINST THE PROPERTY INCLUDED WITHIN THE DISTRICT AND MAY 56 Ordinance No. 3034-2018 Page 7 of 17 New Text Underlined; [DELETED TEXT BRACKETED] ESTABLISH A SINKING FUND FOR PAYMENT OF PRINCIPAL AND INTEREST ON ANY BONDS WHICH MAY BE SOLD TO FINANCE THE IMPROVEMENT. THE RESOLUTION SHALL ALSO FIX TIMES OF PAYMENT, SCHEDULE OF PAYMENTS, RATE OF INTEREST ON UNPAID INSTALLMENTS, THE DATE OF DELINQUENCY OF ASSESSMENTS, AND THE PENALTY AND INTEREST TO BE PAID ON DELINQUENT ASSESSMENTS. ON DELINQUENT ASSESSMENTS, PENALTY SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF KMC 1.75.010. (Ords. 791, 944) 16.10.140 PAYMENT. PAYMENT MAY NOT BE REQUIRED SOONER THAN SIXTY (60) DAYS AFTER ASSESSMENT. PAYMENT MAY BE IN A LUMP SUM OR BY INSTALLMENTS. (Ord. 791) 16.10.150 NOTICE OF PAYMENT. (A) WITHIN THIRTY (30) DAYS AFTER THE TIME OF PAYMENT HAS BEEN FIXED, THE CITY CLERK SHALL MAIL A STATEMENT TO EACH OWNER OF RECORD DESIGNATING THE PROPERTY, THE ASSESSMENT AMOUNT, THE TIME OF DELINQUENCY, AND PENALTIES. (B) WITHIN FIVE (5) DAYS AFTER THE STATEMENTS ARE MAILED, THE CITY CLERK SHALL PUBLISH NOTICE THAT THE STATEMENTS HAVE BEEN MAILED. (Ord. 791) 16.10.160 OBJECTION AND APPEAL. (A) THE REGULARITY OR VALIDITY OF AN ASSESSMENT MAY NOT BE CONTESTED BY A PERSON WHO DID NOT FILE WITH THE CITY CLERK A WRITTEN OBJECTION TO THE ASSESSMENT ROLL BEFORE ITS CONFIRMATION. (B) THE DECISION OF THE CITY COUNCIL UPON AN OBJECTION MAY BE APPEALED TO THE SUPERIOR COURT WITHIN THIRTY (30) DAYS OF CONFIRMATION OF THE ASSESSMENT ROLL. (C) IF NO OBJECTION IS FILED OR AN APPEAL TAKEN WITHIN THE TIME PROVIDED IN THIS SECTION, THE ASSESSMENT PROCEDURES SHALL BE CONSIDERED REGULAR AND VALID IN ALL RESPECTS. (Ord. 791) 16.10.170 REASSESSMENT. (A) THE CITY COUNCIL SHALL WITHIN ONE (1) YEAR CORRECT ANY DEFICIENCY FOUND BY A COURT IN AN ASSESSMENT. (B) PROCEDURE FOR NOTICE AND PUBLIC HEARING FOR REASSESSMENT MUST CONFORM TO THAT UTILIZED FOR THE INITIAL ASSESSMENT PROCEDURES. (C) PAYMENTS ON THE INITIAL ASSESSMENTS ARE CREDITED TO THE PROPERTY UPON REASSESSMENT. (D) THE REASSESSMENT BECOMES A CHARGE UPON THE PROPERTY NOTWITHSTANDING FAILURE TO COMPLY WITH ANY PROVISION OF THE ASSESSMENT PROCEDURE. (Ord. 791) 16.10.180 SUPPLEMENTAL ASSESSMENT. (A) IF ADDITIONAL COSTS ARE INCURRED THAT ARE CHARGEABLE TO AN ASSESSMENT DISTRICT AFTER THE INITIAL ASSESSMENT ROLL HAS BEEN APPROVED BY THE CITY COUNCIL, THE CITY MANAGER MAY PREPARE AND FILE WITH THE CITY CLERK A SUPPLEMENTAL ASSESSMENT ROLL. (B) PROCEDURE FOR NOTICE AND PUBLIC HEARING FOR A SUPPLEMENTAL ASSESSMENT MUST CONFORM TO THAT UTILIZED FOR THE INITIAL ASSESSMENT. (C) BILLINGS AND PAYMENTS ON A SUPPLEMENTAL ASSESSMENT SHALL BE KEPT SEPARATE FROM THE INITIAL ASSESSMENT. SUPPLEMENTAL ASSESSMENTS MAY 57 Ordinance No. 3034-2018 Page 8 of 17 New Text Underlined; [DELETED TEXT BRACKETED] HAVE PAYMENT TERMS AND DUE DATES DIFFERENT FROM THE INITIAL ASSESSMENT. (D) MORE THAN ONE SUPPLEMENTAL ASSESSMENT MAY BE ALLOWED. (E) THE SUM OF ALL SUPPLEMENTAL ASSESSMENTS IN ANY ONE ASSESSMENT DISTRICT MAY NOT EXCEED TWENTY PERCENT (20%) OF THE INITIAL APPROVED ASSESSMENT ROLL.] Section 3. Re-enactment and re-naming of Chapter 16.05 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 16.05- General Provisions, is hereby re-enacted and re-named as follows: Chapter 16.05 Special Assessment Districts 16.05.010 Assessment Authority. (a) The City Council may assess against the real property of a governmental unit and private real property benefited by a capital improvement project, all or a portion of the cost of constructing or improving such capital improvements. Any such special assessment shall be in proportion to, and shall not exceed, the value of the benefit from the improvement. (b) All benefited real property, including that which is exempt from taxation in accordance with law, shall be liable for the cost of public improvements assessed, unless specifically exempted from assessments for public improvements by law. 16.05.020 Authorized Capital Improvements. A special assessment district for a public improvement may be initiated for any one or more of the following improvements: (a) Streets, roads, street lighting, curbs, gutters, driveways, and sidewalks; (b) Storm sewers, drains, or settling basins; (c) Sanitary sewers systems, including mains, connections and extensions; (d) Changes in channels of streams or watercourses; (e) Water supply systems, including water mains, water distribution lines, water service connections, and fire hydrants; 16.05.030 Property assessed. The Council may assess for an authorized capital improvement, any real property benefited or any interest in real property benefited, and the property benefited may include abutting, adjoining, adjacent, contiguous, non-contiguous, or other property or interest in property benefited directly or indirectly by the improvement. A benefited property may be included in whole or in part in more than one local improvement district 16.05.040 Amount Assessed. The Council may assess 100% of any or all costs of a public improvement against the parcels of property benefited by the improvement. Unless a specific method of computation of the benefit to the property is expressly provided in this Chapter for ascertaining the amount to be assessed against the property benefited by a designated improvement, the Council shall assess each parcel of property in a local assessment district in proportion to the value of the benefits received from the improvements. 16.05.050 Costs. The costs of an authorized capital improvement shall be the actual costs of the improvement, including acquisition of interest in land for the improvement, design, engineering, administration, overhead, professional services, bond costs, and interest incurred as a result of the improvement, 58 Ordinance No. 3034-2018 Page 9 of 17 New Text Underlined; [DELETED TEXT BRACKETED] and all other costs resulting from the construction of the improvement. Bond interest shall be calculated from the first date when actual costs are incurred by the City. 16.05.060 Permissible Methods for Financing Local Improvement Districts. (a) By general obligation bonds: (1) Local improvement districts for capital improvements may be financed by use of funds obtained from the sale of general obligation bonds approved by the voters of the City of Kenai for such capital improvements. (2) The principal and interest of general obligation bonds so issued shall be payable from the levy of assessments so issued against the property benefited, but any deficiency in meeting payments of principal and interest shall be made up by an appropriation from the general fund. The assessments shall constitute a sinking fund for the payment of principal and interest on the bonds. (3) Interest on funds borrowed to finance the capital improvement prior to the sale of general obligation bonds shall be a cost of the improvement district. (b) By special assessment bonds: (1) The City Council may, by ordinance, authorize in compliance with the City Charter the issuance and sale of special assessment bonds to pay all or part of the cost of an improvement in a local improvement district. The principal and interest of bonds so issued shall be payable solely from the levy of special assessments against property to be benefited. The assessments shall constitute a sinking fund for the payment of principal and interest on the bonds. The property benefited may be pledged by the Council to secure a payment. (2) Interest on funds borrowed to finance the capital improvement prior to the sale of special assessment bonds shall be a cost of the improvement district. (c) By City or grant funds (with or without subsequent recovery by assessment against benefited property). (d) By any combination of two or more of the above. 16.05.070 Method of Assessment. The provisions of this chapter shall not prevent or be construed to prevent the collection of assessments or payment in lieu of assessments for improvements in any other manner as provided by law. The methods of assessment are described in general herein and will require decisions of policy by the Council to meet current needs. In general, the assessment rate for any special assessment district is computed by dividing the total assessable cost of such improvement by the total number of assessment units. The entire project is considered as a whole when computing the assessment rate and applying it to all properties. 16.05.080 Initiation of Special Assessment District. A special assessment district may be initiated by: (a) A sponsor of a proposed district may submit an application detailing the proposed improvement and a map or description of the proposed geographic area subject to inclusion in the special assessment district to the City Clerk. (b) The City Council may adopt a resolution directing the City Manager to submit an application for a proposed special assessment district to the City Clerk. 16.05.090 Review of Petition Application. (a) District boundaries—Review by Administration. After receiving an application for a petition to form a special assessment district, the City Administration shall determine 59 Ordinance No. 3034-2018 Page 10 of 17 New Text Underlined; [DELETED TEXT BRACKETED] whether the boundaries of the proposed district are proper. The boundary will be considered improper if: (1) any property adjacent to the proposed district will be benefited by the proposed improvement and is clearly excluded for the primary purpose of enabling the included properties to meet assessment percentage and signature requirements of this Chapter; (2) the boundary covers a large, non-contiguous area, such as parcels unconnected by roadways or property lines; (3) the boundary includes too many parcels with the intention of diluting costs or minimizing the effect of delinquent properties; or (4) such other grounds as may be established by regulation. (b) Based upon the proposed district boundaries, the City Manager, or designee shall inform the sponsor whether the proposed district may violate any of the restrictions on district formation in this Chapter. (c) District boundaries—Deemed improper. In the event that the City Manager finds the proposed boundary is improper, the boundary description shall be returned to the sponsor along with a written explanation describing why the proposed boundary has been deemed improper. The sponsor may modify and resubmit the boundary description to the City Clerk. (d) Administrative report. Once the City Manager approves the boundaries of the proposed district, administration will prepare an initial report for the Council to consider for approval of an order for an engineer's or architects estimate regarding the proposed project. The initial administrative report shall contain the following information: (1) Sponsor's application, description and scope of the proposed project; (2) Review of restrictions on formation for the proposed project; (3) need for, the desirable scope of, and preliminary opinion of cost of the proposed improvement, including professional services and construction; (4) Available funding, prospective grants that might be secured to assist in payment for the improvement, recommendation as to grant application including other and other proposed special assessment projects that may require funding; (5) the recommended percentage of the improvement plan cost to be assessed against the property benefited; (6) Any additional comments that may help the City Council; and (7) The City Managers recommendation for the proposed project. (e) Provide to Council. The City Manager or designee shall provide the administrative report to the Council and prepare a resolution to approve the engineers or architects estimate. 16.05.095 Resolution Approving Engineer’s or Architect’s Estimate. (a) Council Approval for engineer's or architects estimate. The Council shall determine by resolution whether to approve an order for an engineer's or architects estimate conditioned on the filing of an application fee by the sponsor: (b) Non-refundable application fee. Upon receiving notice provided by the City Clerk that the City Council has approved an order for an engineer's estimate the sponsor must submit a non-refundable application fee of $1,500, before any additional efforts are made by the City to proceed with the proposed district. (c) Engineer's or Architect’s estimate. After the sponsor submits the non-refundable application fee to City Clerk, the City Manager or designee shall obtain an estimate from an appropriate professional of the cost of the improvement proposed for the district. The estimate must include all professional service and construction costs including a reasonable contingency of not less than 10% of the construction costs. City administration will re-evaluate whether the proposed district violates any of the restrictions on district 60 Ordinance No. 3034-2018 Page 11 of 17 New Text Underlined; [DELETED TEXT BRACKETED] formation in this Chapter, taking into account the estimated costs, and inform the sponsor if any violations have been identified. The City Clerk shall provide the cost estimate to the sponsor after it is received by the City. (d) Sponsor's intent to proceed. If the sponsor wishes to proceed after receiving the cost estimate from the City Clerk, the sponsor must submit to the Clerk a written notice of intent to proceed with the project. (e) After the written notice to proceed is received from the sponsor, the City Clerk shall provide notice of the proposed special assessment district to all parcel owners within the proposed district by regular mail, at least 10 days prior to the City Council’s consideration of the ordinance to approve the petition report and recommend City Matching funds, if any. The Notice shall include the following: (1) A description of the special assessment district and proposed improvement; (2) A map of the proposed improvement; (3) The date of the public hearing on the Ordinance to approve the petition report and City Matching funds, if any; (4) Engineer’s or architect’s estimate of cost; (5) An estimate of the amount to be assessed to each parcel in the proposed district; (6_ Proposed financing terms; and (6) Notice that the legal description of parcels within the proposed district as of the date the City Council approves the resolution to approve the petition report and recommend City Matching funds, if any, will be used to determine assessments. Any action to re-plat parcels within the proposed district must be completed and recorded before the date the City Council approves the resolution. (f) If any changes are made to the proposed district boundary by the sponsor after the clerk receives the sponsor's written intent to proceed with the project, the revised district shall be subject to all steps for preclearance and resubmission of the proposed district as provided in this section. The sponsor will not be required to submit an additional application fee. 16.05.100 Preparation and Issuance of Petition Report. After the sponsor submits a written notice to proceed, the City manager or designee will prepare a special assessment district petition report for the City Council. The petition report will include the following: (a) A description of the proposed improvement; (b) The estimated roll: (1) The total estimated cost of the improvement based on the engineer's or architects estimate and other allowable costs, including a minimum 10% contingency based on the construction costs; (2) The name of the record owner of each parcel in the proposed district; (3) The tax parcel number of each parcel in the proposed district; (4) The legal description of each parcel in the proposed district; (5) The assessed valuation of each parcel in the proposed district; (6) An estimate of the amount to be assessed to each parcel in the proposed district; and (7) Whether there are other special assessment liens against any of the parcels in the proposed district; and (8) A description of any parcels that violate any restrictions on district formation (c) A map of the proposed district; (d) Proposed financing terms (e) A description of the limitations on withdrawing a petition signature, and 61 Ordinance No. 3034-2018 Page 12 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (f) The name, address and daytime telephone number of the sponsor of the petition. The City Manager or designee shall prepare an Ordinance to Approve the Petition Report and Matching Funds for Council consideration. 16.05.110 Ordinance to Approve the Petition Report and Matching Funds. The Council may adopt a ordinance approving the petition report and providing matching funds after consideration of a recommendation from the City Manager. 16.05.120 Circulation and Filing of Petition; Signature Requirements. (a) After the City Council approves the petition report and a City match if any match, the City Administration shall create the final petition and distribute at least one copy to the sponsor. (b) The petition must include the petition report approved by the City Council and a signature page with instructions. (c) Upon receiving a copy of the petition from the City Clerk, the sponsor is responsible for distributing the petition to all property owners within the approved boundaries and collecting the signatures of those property owners who support the formation of the Special Assessment District. Completed petition signature page(s) must be filed with the City Clerk within 45 days of the date the City Clerk distributes the petitions to the sponsor. (d) In order for the City Council to consider the proposed special assessment district further, the petition must contain the signatures of the owners of record of (a) at least 70 percent of the total number of parcels subject to assessment within the proposed district and (b) at least 50 percent in value of the property to be benefited, in order to be considered by the Council for formation. (e) Multiple owners. When a parcel is owned by more than one person or entity, signatures for each owner are required in order for the parcel to count towards the signature thresholds. (f) Signature by Proxy. Signatures by proxy will not be accepted by the clerk. (g) Power of Attorney. The signature of a power of attorney will only be accepted by the clerk if the signature is accompanied by a copy of the Power of Attorney document providing authority for such signatures. (h) Business entities. (1) Corporations. Where a parcel is owned by the corporation, the petition must be signed by two individuals: one of whom is the chair of the board, the president, or the vice president, and the other of whom is the secretary or treasurer; or by another person or persons who have been given authority via corporate resolution. (2) Limited liability companies. Where a parcel is owned by a LLC, the petition must be signed by a member if the LLC is member-managed, or by the manager, if a manager has been designated. (3) Other business owners. Where a parcel is owned by another type of business entity, only those persons who have signatory authority to bind the business entity under Alaska Statutes may sign the petition as owner. (4) Trusts. Where a parcel is owned by a trust, only the trustee may sign as the property owner. If there are co-trustees, a majority must sign the petition in order for the parcel to count towards the signature thresholds unless otherwise provided in the trust document. The signature of the trustee(s) will only be accepted by the clerk if it is accompanied by a copy of the trust document. (i) City of Kenai. The City Manager shall be the designee for signing any petition when City land is part of the proposed district. Where the City abstains from participating in the petition signature process, the total number of parcels within the district, for the purpose of 62 Ordinance No. 3034-2018 Page 13 of 17 New Text Underlined; [DELETED TEXT BRACKETED] calculating the signature thresholds, will be reduced by the number of parcels owned by the City within the proposed district. (j) A signature on a petition may be withdrawn only by written notice from the signer submitted to the City Clerk prior to certification of the petition signatures by the City Clerk. A withdrawal is effective only if notice of the withdrawal is submitted before the filing of the completed petition. (k) The sponsor shall timely submit the petition signatures to the Clerk, If the Clerk finds that the petition contains sufficient signatures, the Clerk shall after 45 days from the petition is distributed to the sponsor, certify the petition and submit the petition to the City Manager, who will prepare a resolution to form the district and proceed with the improvement for Council consideration. 16.05.130 Restrictions on District Formation. (a) A special assessment district may not be formed if it violates any of the following restrictions: (1) No assessments shall be levied in excess of twenty-five (25%) percent of the fair market value of property after giving effect to the benefit accruing from the work or action for which assessed. (A) For the purposes of this restriction, the estimated amount of the assessment against a parcel will be reduced by the amount of a prepayment of the assessment for the parcel that is received by the City before the Council acts on the resolution to form the district and proceed with the improvement. If the Council does not approve the resolution to form the district and proceed with the improvement, the City will refund the prepayment. B. Any such prepayment must be received no later than the close of business at least 15 days prior to the date the Council will act on the resolution to form the district and proceed with the improvement. (2) In no case shall a special assessment district be approved by the Council where properties that will bear more than 10 percent of the estimated costs of the improvement are subject to unpaid, past-due Kenai Peninsula Borough or City property taxes at the time the Council approves the resolution to form the district and proceed with the improvement. (A) For the purposes of this restriction, the delinquent tax may be paid before the City Council acts on the resolution to form the district and proceed with the improvement. Any such payment must be received no later than the close of business at least 15 days prior to the date the Council will act on the resolution to form the district and proceed with the improvement. (b) The legal description of parcels within the proposed district as of the date of the City Council resolution to approve the petition report and recommend a match will be used to determine assessment. No subdivision, reversion of acreage, or lot line adjustment will be recognized for assessment purposes after the City Council approves a resolution to approve the petition report. 16.05.140 Resolution to Form District and Proceed with Improvement. (a) The City Manager shall submit the following information to the Council with the resolution to form the district and proceed with the improvement: (1) The petition report, updated to account for any change in information; (2) A description of the current condition of improvements to be improved, and a statement of the need for the proposed local improvement; and 63 Ordinance No. 3034-2018 Page 14 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (3)The method of financing the improvement; e.g., bonding, City investment, or a combination. (b) The Council shall hold a public hearing on the resolution. The Clerk shall give notice of the public hearing on the resolution: (1) By certified mail, return receipt requested, mailed not less than 30 days before the date of the hearing, to each record owner of a parcel in the proposed district; and (2) By publication once a week for two consecutive weeks in a newspaper of general circulation in the City, with the first publication appearing not less than 30 days before the date of the hearing; and, (3) By posting on or near the property to be improved in a location where the posting(s) may be reasonable noticed by affected property owners (c) Each notice of the public hearing shall include the following: (1) A description of the special assessment district and the proposed improvement; (2) The date of public hearing; (3) The place for reviewing the estimated assessment roll, and (4) The procedure for presenting objections to the formation of the district. (d) Written comments, including any objections as to the necessity of the formation of the district may be filed with the City Clerk for a period of 30 days after mailing the notice of the public hearing. (e) After public hearing, the Council may adopt the resolution to form the district and proceed with the improvement. The resolution must: (1) Describe the improvement and its location; (2) Describe the parcels benefitted by the improvement; (3) Approve the estimated cost of the improvement; (4) Make a finding that the improvement is necessary and should be made (5) Identify any parcels within the boundaries excluded from the district, which will not receive the benefit of the improvement and will not be subject to the assessment; (6) If the City manager signed the petition on behalf of the City, approve the City Manager’s action; (7) Include an estimated assessment roll showing the amount of the assessment against each parcel; (8) Authorize the City Manager to proceed with the design construction of the improvement; and (9) Require the clerk to record in the district recorder's office a copy of the resolution to proceed and the estimated assessment roll. (f) After passage of the resolution to proceed, the improvement may be constructed by force account or by contract, or in any other manner provided by law. 16.05.150 Ordinance of Appropriation. (a) An ordinance of appropriation shall be scheduled for action at the same Council meeting as the resolution to form the district and proceed with the improvement. The amount of the appropriation shall be equal to the estimated cost of the improvement presented in the petition report under, including a reasonable contingency. (b) In the event that the lowest, responsive, responsible, qualified bid exceeds the appropriation, and the price cannot be reduced, then no contract may be entered without further Council approval and if additional costs to the property owners are required, certification of a new petition. 64 Ordinance No. 3034-2018 Page 15 of 17 New Text Underlined; [DELETED TEXT BRACKETED] 16.05.160 Ordinance Levying Assessments. (a) After the improvement has been completed actual cost ascertained, the City Manager shall prepare and submit to the City Council an assessment roll containing a description of the parcels in the special assessment district, the names of their record owners, and the amounts of the assessments. The assessment roll shall be submitted with an ordinance confirming the assessment roll and levying the assessments. The ordinance shall provide for the levying of the assessment against the property included within the district and may establish a sinking fund for payment of principal and interest on any bonds which may be sold to finance the improvement. The ordinance shall also fix times of payment, schedule of payments, rate of interest on unpaid installments, the date of delinquency of assessments, and the penalty and interest to be paid on delinquent assessments. On delinquent assessments, penalty shall be in accordance with the provisions of KMC The assessment roll shall be filed with the City Clerk at the time of the introduction of the ordinance and shall be open to public inspection. (b) The City Clerk shall give notice of the public hearing on the ordinance: (1) By regular mail mailed not less than 10 days before the date of the hearing to each record owner of a parcel in the district; and (2) By publication in a newspaper of general circulation at least once a week for four consecutive weeks. (c) The notice mailed to each record owner in the district shall state that the assessment roll is on file in the office of the City Clerk and is available for public inspection, the time and place for the hearing of objections to an assessment, and the amount of the assessment to be levied against the parcel. (d) After the public hearing on the ordinance, the Council shall correct any errors or inequalities in the assessment roll, and confirm the corrected roll by adoption of the ordinance. 16.05.170 Payment. Payment may not be required sooner than sixty (60) days after assessment. Payment may be in a lump sum or by installments. 16.05.180 Notice of Payment. (a) Within thirty (30) days after the time of payment has been fixed, the City Clerk shall mail a statement to each owner of record designating the property, the assessment amount, the time of delinquency, and penalties. (b) Within five (5) days after the statements are mailed, the City Clerk shall publish notice that the statements have been mailed. 16.05.190 Objection and Appeal. (a) The regularity or validity of an assessment may not be contested by a person who did not file with the City Clerk a written objection to the assessment roll before its confirmation. (b) The decision of the City Council upon an objection may be appealed to the Superior Court within thirty (30) days of confirmation of the assessment roll. (c) If no objection is filed or an appeal taken within the time provided in this section, the assessment procedures shall be considered regular and valid in all respects. 16.05.200 Reassessment. (a) The City Council shall within one (1) year correct any deficiency found by a court in an assessment. 65 Ordinance No. 3034-2018 Page 16 of 17 New Text Underlined; [DELETED TEXT BRACKETED] (b) Procedure for notice and public hearing for reassessment must conform to that utilized for the initial assessment procedures. (c) Payments on the initial assessments are credited to the property upon reassessment. (d) The reassessment becomes a charge upon the property notwithstanding failure to comply with any provision of the assessment procedure. 16.05.210 Supplemental Assessment. (a) If additional costs are incurred that are chargeable to an assessment district after the initial assessment roll has been approved by the City Council, the City Manager may prepare and file with the City Clerk a supplemental assessment roll. (b) Procedure for notice and public hearing for a supplemental assessment must conform to that utilized for the initial assessment. (c) Billings and payments on a supplemental assessment shall be kept separate from the initial assessment. Supplemental assessments may have payment terms and due dates different from the initial assessment. (d) More than one supplemental assessment may be allowed. (e) The sum of all supplemental assessments in any one assessment district may not exceed twenty percent (20%) of the initial approved assessment roll. 16.05.220 Principal Payment Deferral (a) The principal of the special assessment lien on real property owned and occupied as the primary residence and permanent place of abode by a Kenai resident who is indigent may be deferred as provided in this section. The deferral of payment on the principal of the special assessment lien means that such payment will be postponed, but not forgiven. Interest will continue to accrue on the assessment during the period of deferral. (b) For purposes of this section, a resident is indigent if the person's adjusted gross income is less than 200 percent of the current U.S. Health and Human Services Poverty Guidelines for Alaska. An application for indigence may be filed on a City form with the City Clerk no later than February 1 of each calendar year. (c) Deferral is for the principal balance only. Individuals who qualify for the deferral must pay the accrued interest by the due date each year. (d) The deferred assessment, including all unpaid accrued interest, becomes due and payable in full when the property ceases to be owned or occupied by the Kenai resident who qualified for the deferral. Any remaining balance due shall be paid on the same schedule as would have been in place if no deferral had applied. (e) If the resident who previously qualified for the deferral no longer qualifies, but continues to own and occupy the property, then payments on the principal will resume, starting with the next payment due. 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. 66 Ordinance No. 3034-2018 Page 17 of 17 New Text Underlined; [DELETED TEXT BRACKETED] ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1st day of August, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Introduced: July 5, 2018 Enacted: August 1, 2018 Effective: August 30, 2018 67 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Scott Bloom, City Attorney DATE: June 27, 2018 SUBJECT: Ordinance No. 3034-2018 – Local Improvement Districts/ Comparative Analysis ____________________________________________________________________________ This memo compares the proposed changes in Ordinance 3034-2018 to the existing code: 1. 16.05.010 Assessment Authority This section, which describes the City’s assessment authority, is materially the same as the existing KMC 16.05.010 except that language in existing KMC 16.05.010 (b) regarding restrictions on assessments is moved in the Ordinance to KMC 16.05.130-Restrictions on District Formation, for consistency and clarity. 2. 16.05.020 Authorized Capital Improvements This section, listing the types of projects which can be constructed or improved by the creation of a local improvement district, replaces KMC 16.05.060. The main revisions are the removal of temporary services such as dust control and snow removal which are inconsistent with capital improvements, and the removal of projects such as off-street parking, parks and playgrounds and public shelters. The projects removed were projects that benefit the community as a whole, and are not conducive to defining an assessment district. 3. 16.05.030 Property Assessed This section describing the property that can be assessed for a capital improvement is materially the same as the existing KMC 16.05.070. 68 Page 2 of 4 Ord. No. 3034-2018 4. 16.05.040 Amount Assessed This section is materially the same as existing KMC 16.05.080 and provides that the City can assess 100% of the project costs to benefited properties and that the benefited properties should generally pay in proportion to the benefit received. 5. 16.05.050 Costs This section describing the costs that can be assessed for a project is materially the same as existing KMC 16.05.090. 6. 16.05.060 Permissible Methods for Financing Local Improvement Districts This section describing the funding sources the City can use to finance a projects; City funds, grant funds and bonds, is similar to existing KMC 16.05.050 and only clarifies that grant funds can be used and that the use of special assessment bonds must comply with the City’s applicable Charter restrictions on bonding. 7. 16.05.070 Method of Assessment This section, similar to existing KMC 16.05.100, describes that generally assessments are determined based on the total project cost divided by the number of benefited parcels. The new section removes specific language regarding determinations based on lot frontage to improvements, to allow greater flexibility for Council to determine assessment methods and consistency with current practice. 8. 16.05.080 Initiation of Special Assessment District This section describes that the formation of a special assessment district may be started by a citizen sponsor submitting an application to the City Clerk, or by Council resolution directing the City Manager to submit an application to the Clerk. This new section provides more detail on how the process is started, as compared to existing KMC 16.05.020. 9. 16.05.090 Review of Petition Application This new section of code provides for an upfront interactive process between the petition sponsor and administration to review the sponsor’s plans and ensure they meet the minimum objective requirements for an assessment district. Only once the City Manager confirms that the minimum requirements are met, will the City Manager provide a report for Council along with a resolution to approve an engineer’s or architects cost estimate. The process of the City Manager providing a report to the City Council is somewhat similar to existing KMC 16.10.010, however the new code provision is more specific as to the information to be provided to Council. 10. 16.05.095 Resolution Approving Engineer’s or Architect’s Estimate This is a new section of code consistent with the theme of the changes to the process in making sure that as much information is known to the property owners before they sign a petition in favor of the improvement. After reviewing the report and recommendation by the City Manager, the City Council decides in the first legislative action whether to spend funds to obtain a cost estimate from a professional. Council’s approval is subject to the sponsor providing $1,500 as an application fee. This fee serves to purposes, it ensures the sponsor is serious about going forward, 69 Page 3 of 4 Ord. No. 3034-2018 and helps defray the City’s costs should the project not proceed. Once the professional cost estimate is received, the City ensures the project still meets the minimum requirements for the district formation and the sponsor must confirm that he or she still wants to proceed. Once this is completed the City Clerk will provide a notice to all the residents and the City will prepare a petition report. 11. 16.05.100 Preparation and Issuance of Petition Report This new section requires the Administration to prepare and issue a petition report with specific information. The intent again is to ensure all relevant facts within reason are known prior to property owners signing a petition. Existing KMC 16.05.030 touches on the petition report having a description of the improvements, but no other specific requirements. 12. 16.05.110 Ordinance to Approve Petition Report and Matching Funds. This new section of code provides for the council to approve the petition report, which will be circulated with the petition, and commits any matching funds. An ordinance is required to commit the matching funds. There is not an equivalent section in existing code. 13. 16.05.120 Circulation and Filing of Petition; Signature Requirements This new code section provides much greater detail on the process for signing and collecting signatures than in the existing code section KMC 16.05.030. The petition must include the petition report approved by Council including the amount of matching funds, if any. The biggest change from existing code is requiring 70% of property owner’s signatures versus 50% in the existing code. This is a significantly higher bar. 14. 16.05.130 Restrictions on District Formation This section describes certain restriction on forming an assessment district. For example assessments can’t exceed 25% of the value of a benefited parcel, and there is a threshold for the number of properties that can have unpaid City and Borough sales taxes. These provisions are to safeguard the City’s ability to recoup its costs. The 25% threshold comes from existing KMC 16.05.010 and the safeguard for unpaid property taxes is new. The idea being if property taxes are not paid, neither will assessments be paid. 15. 16.05.140 Resolution to Form District and Proceed with Improvement This section of code provides for the legislation to form the district and proceed with construction of the project. It requires the Clerk to give notice for the hearing by certified mail at least 30 days before the Resolution and to advertise, including a new requirement to post temporary signage at or near where the improvement is to be constructed or improved. This is a similar process as to what is described in existing KMC 16.10.040 through 070, except that in the process proposed there is more certainty in the project scope and process. This allows the City to move away from allowing 50% of property owners who might object to the project at this point to stop it, as provided in existing KMC 16.10.070, because the property owners had more information that is not subject to change earlier in the process. For example, an engineer’s estimate which the City commits to not exceeding and commitment of matching funds. 16. 16.05.150 Ordinance of Appropriation 70 Page 4 of 4 Ord. No. 3034-2018 This is the legislation appropriating the funds to construct or improve the project. The new proposed ordinance provides that the project will not go forward if the bid amount exceeds the appropriated amount, which matches the amount circulated in the petition. This is to ensure that the property owners cost is not increased without their approval. Appropriation of funds is not specifically provided for in the existing Chapter on assessment districts. 17. 16.05.160 Ordinance Levying Assessments This section provides the legislation that creates the levy of assessments after the project has been completed. It is similar to existing KMC 16.10.080 through 130. 18. 16.05.170 Payment This section specifies that payments can be made in installments or lump sum and cannot be required until at least 60 days after the assessment. This mirrors existing KMC 16.10.140. 19. 16.05.180 Notice of Payment This section provides notice requirements for payments due and is the same as existing 16.10.140. 20. 16.05.190 Objection and Appeal This section which provides the process for appealing an assessment is the same as existing KMC 16.10.160 21. 16.05.200 Reassessment This section describes the process for a reassessment if a court finds the City’s process deficient. It is the same as existing KMC 16.10.170. 22. 16,05.210 Supplemental Assessment This section which is the same as existing KMC 16.10.180 provides for a process for a supplemental assessment, should one be needed. 23. Principal Payment Deferral This is a new section of code that provides a payment deferral process of indigent residents in an assessment district. 71 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Henry Knackstedt, Council Member DATE: June 27, 2018 SUBJECT: Ordinance No. 3034-2018 - Repealing Kenai Municipal Code Chapters 16.05- General Provisions, And 16.10- Procedure, Within Title 16- Public Improvements and Special Assessments and Re-Enacting and Renaming Chapter 16.05- Special Assessment Districts ____________________________________________________________________________ Ordinance 3034-2018 is a significant rewrite of two existing Chapters of City code governing the creation of special assessment districts to complete or improve capital projects. After experiencing the process at the City and drawing from my professional experience in road improvement assessment districts, I feel the City’s process can be improved. There are three main themes to the recommended changes: (1) provide certainty to property owners before they sign a petition; (2) provide increased notice to property owners and the public; and (3) provide specificity in code regarding each step of the process. While these projects generally never make everyone happy, at the very least the amendments are intended to ensure all affected property owners are well informed and understand the process as much as reasonably possible. The proposed amendments do require 70% of property owners to support the project instead of 50% as is currently written, to ensure a greater majority support the projects. Providing certainty to property owners is addressed by providing a professional estimate of cost that cannot be exceeded without a new petition, having the City commit to matching funds if any, and providing a City approved petition report prior to property owners signing a petition. Increased notice is accomplished by requiring certain notices to be certified, more notice, specifying the information that must be contained in notices, additional publication of notices and even physical posting of notices near the project. Increasing specificity in the process includes specifying when subdivisions of property must be completed to count for voting and assessment purposes, what information must be in the petition report, and who can sign a petition. Other significant changes include providing for a more interactive process at the beginning between the City and petition sponsor to determine project scope and boundaries. Requiring a $1,500 filing fee to move forward after the administration is comfortable that the project meets 72 Page 2 of 2 Ord. No. 3034-2018 minimum requirements and before significant City resources are spent. The amount is intended to help defray City costs if the project does not go forward after City funds are spent and to make sure the sponsor is serious about going forward with the project. I also recommend including a payment deferral process for low income residents, so that projects can be completed without increased costs to vulnerable residents while protecting the City’s interest through security in the property. Attached is a flow chart of the process that the Ordinance proposes. Thank you for your consideration. 73 KMC 16.05.080 Initiation of Special Assessment District 1. Sponsor submits application to City Clerk or 2. City Council adopt resolution directing City Manager to submit application to Clerk KMC 16.05.090 Application Review •Administration review district boundaries •Administration works with sponsor to amend any boundary issues in application to City Clerk Application Submitted KMC 16.05.090 Application Review continued City Manger Prepares Administrative Report for Council to include: 1.Sponsors Application 2.Review of restrictions on formation 3.Need for, scope of, and opinion of cost of project 4.Funding options 5.Recommended match 6.Recommendations KMC 16.05.095(c) City hires engineer or architect to obtain cost estimate KMC 16.05.095(b) Sponsor pays application fee Sponsor must pay applicable fee ($1500) intended to pay part of engineers or architect's cost estimate for project to continue KMC 16.05.095 Resolution Approving Cost Estimate (includes engineering and construction) Council determines whether to approve paying for a cost estimate KMC 16.05.095(d) Sponsor submits written notice of intent to proceed after reviewing cost estimate KMC 16.05.095(e) City Clerk provides notice to all parcel owners in district. Notice includes: 1.Description of project 2.Map 3.Date of Resolution to approve petition report 4.Matching funds 5.Estimate cost of project/ cost per parcel KMC 16.05.100 Preparation and issuance of petition report Administration provides report to include: 1.Estimated roll (includes per parcel cost) 2.Map of district 3.Process for signing/withdrawing name on petition 4.Sponsor information KMC 16.05.110 Ordinance to approve petition report and matching funds KMC 16.05.120 City Administration creates final petition KMC 16.05.120 Sponsor circulates petition and has 45 days to get 70% of signatures KMC 16.05.140 City Manager updates petition report and schedules Resolution to form District and Proceed KMC 16.05.140 Clerk provides Notice of Resolution to form district and proceed by certified mail to all property owners and publish for 2 weeks in paper and posts on road KMC 16.05.140 Public Hearing on Resolution to form district and proceed KMC 16.05.150 Ordinance appropriating funds for project City Manager proceeds with construction design and bids project KMC 16.05.150(a) Project construction begins KMC 16.05.160(d) Ordinance Levying Assessments •Fixes assessment amount •Time of payments •Interest and penalty rates KMC 16.05.160(b) Clerk provides notice of ordinance levying assessments Boundaries Approved Petition Report Completed & Provided to Council Resolution Approved Estimate received Application fee paid Sponsor decides to go forward with process Ordinance and Matching Funds Approved Petition report prepared Petition Created Notice Provided Resolution Scheduled Notice Provided Bids come in at cost 70% signatures collected Notice Provided KMC 16.05.150(a) City Manager negotiates successfully with Contractor; or City pays the difference KMC 16.05.150(b) If City does not contribute additional funds and negotiations with contractor fail, a new petition process is required Project Completed Bids come in above cost General Information Legislation Notices Legend 74 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Christine Cunningham, Assistant to City Manager DATE: June 25, 2018 SUBJECT: Action/Approval – Special Use Permit for Kenai Chamber of Commerce and Visitor Center for the “Moosemeat John” Cabin The Kenai Chamber of Commerce and Visitor Center is requesting a Special Use Permit to use and operate the “Moosemeat John” cabin located on approximately 24,500 square feet of Lot 1, Gusty Subdivision No. 8, a City-owned parcel upon which the Kenai Visitor and Cultural Center is also located. The special use permit would be effective for one year from August 1, 2018 to July 30, 2019. The Kenai Chamber of Commerce, Inc. operated on the premises from 1977 until 2012. In 2012, the Kenai Chamber of Commerce, Inc. merged with the Kenai Convention and Visitor’s Bureau, Inc. to form the new entity, “Kenai Chamber of Commerce and Visitor Center, Inc.” The City Council approved an Assignment of the Facility Management Agreement for the adjacent Kenai Visitor and Cultural Center to the new entity, but the Special Use Permit expired without an assignment to the new entity. The Kenai Visitor’s and Cultural Center is requesting a Special Use Permit to continue its use of the cabin. Since 2013, the Kenai Chamber has allowed the use of the cabin during the summer months by the Kenai Historical Society, Inc. in conjunction with its operations in Old Town Kenai. If the City Council approves the attached Special Use Permit with Kenai Chamber of Commerce and Visitor Center for the “Moosemeat John” Cabin, the City Manager may sign the Special Use Permit granting the continued use of the cabin by the Kenai Chamber on behalf of the City. Attachment cc: Kenai Chamber of Commerce and Visitor Center 75 Special Use Permit – Kenai Chamber of Commerce & Visitor Center Page 1 of 5 SPECIAL USE PERMIT The CITY OF KENAI (City), for the consideration, and pursuant to the conditions set out below, hereby grants the Kenai Chamber of Commerce and Visitor Center (PERMITTEE) the right to use the Premises, identified on Attachment A to this Permit, and described as: The east 24,500± square foot portion between the east curbline and east property line of Lot 1, Gusty Subdivision, Addition No. 8, Kenai Recording District, according to Plat No. 91- 9, to use and operate the “Moosemeat John” Cabin. 1. Use/Term. Permittee shall have use of the Premises on the 1st day of August 1, 2018 and shall extend through the 30th day of July 2019. 2. Fee. The Permittee shall not be charged a fee for the use or privilege specified herein. 3. No Exclusivity. The use by the Permittee of the Premises is limited to the purposes specified herein and is not intended to grant any exclusive use to the described Premises except as otherwise provided herein. This use is also subject to City, Borough, and State laws and regulations and the reasonable administrative actions of the City for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. 4. Improvements. Permittee shall not make any permanent improvements to the Premises. 5. Preparation of Premises. It is Permittee’s responsibility to prepare the Premises and to assure itself to its own satisfaction that the Premises are safe for its purposes. The City does not make any warranty or guaranty of the suitability of the Premises for Permittee’s intended purposes. 6. Trash and Debris. The Premises must be returned to its original condition at the end of each use. Clean up and/or repair charges beyond normal wear and tear will be billed to Permittee based upon cost of repair. Debris and trash shall be collected and removed from the Premises by Permittee. Permittee shall alert City (Parks and Recreation Department) of unsightly, unsanitary, dirty or other conditions on the Premises which exist prior to Permittee’s use. 7. No Alcohol or Illegal Substances. No possession or consumption of alcoholic beverages, marijuana or illegal substances is permitted on the Premises. 8. 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. 9. Personalty. Any or all personal property placed or used upon lands or in facilities may be removed and/or impounded by the City, 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 its invitees to the Premises. 76 Special Use Permit – Kenai Chamber of Commerce & Visitor Center Page 2 of 5 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 Premises. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on the Premises and its exercise of the privileges granted in this Permit. 11. 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. 12. 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 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. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated “A-” or better by A.M. Best. ii. 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. iii. Permittee shall request a waiver of subrogation against City from Permittee’s insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City prior to any use. 77 Special Use Permit – Kenai Chamber of Commerce & Visitor Center Page 3 of 5 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. 13. 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. 14. Contact Information. The Contact information for the Permittee, and the person in responsible charge for Permittee during the term of the Permit, for purposes of notice and all communications from City to Permittee is: Johna Beech President/Chief Operating Officer Kenai Chamber of Commerce & Visitor Center 11471 Kenai Spur Hwy. Kenai, AK 99611 15. 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. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 16. 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 organization to bind the organization hereunder. CITY OF KENAI KENAI CHAMBER OF COMMERCE & VISITOR CENTER By:____________________________ By:_______________________________ Paul Ostrander Date ____________________(Title) Date City Manager 78 Special Use Permit – Kenai Chamber of Commerce & Visitor Center Page 4 of 5 ACKNOWLEDGMENTS STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____day of ________, 2018, the foregoing instrument was acknowledged before me by Paul Ostrander, City Manager of the City of Kenai, Alaska, an Alaska home rule municipality, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____day of ________, 2018, the foregoing instrument was acknowledged before me by (Title) of ________________________________________________ an ___________________ corporation, on behalf of the corporation. Notary Public for Alaska My Commission Expires: 79 Special Use Permit – Kenai Chamber of Commerce & Visitor Center Page 5 of 5 ATTEST: Jamie Heinz, CMC, City Clerk SEAL: APPROVED AS TO FORM: Scott M. Bloom, City Attorney 80 --- ' I I<) co a Cl: ~ ._ ~1 ~I =l&J I I<) i ~, ~I ~I <.:> /~ /%0 ' ="!-:!'.C1:.J.'.(.! I ~ c.·. l;J:j (I) / ---<ii ·5 I 64 1952 ""' 7'.~-~1;1 <l: co ;<!) <n rrj ~ ~-. . ,. , .,G~ ~}-.< .. /. . , .o<V~ • ·<r_,- y I I ···:..1.v·.,.. c I ... ~-. I ,., ,,.,.r ~· 1-;·~· f "'""' ... ~ . ... ..... L:~t... - ~ ' ·-. l /' r r ,,.,, ,,... ,..u,}f,,,.I. ,..,\.).~ ! I I ~1 ~1 ;jl ~I ~I 51 LOT-I 130,597 sq. ft. 2.99 oc. m/I -~l ~I I G',~ % ~ "' ..... '"'-..... () c .. ~ "' <~&/.6() r~ .. 'Je~ • .s-6'... . {? 'It .. <Ii';. ~'90 6'9·s: 6"'9s_, s AOH BRASS CAP I N MON. BOX ........ ii) Q:o oO "' • ·r I '3 ~ "-50' ~ v ai li:'. \t ""> I ~ l\J C\i 0\ ll .. r ::; ..J \...) I .. ~ ~ C' 100' l_Q I :_(1T LOT 2 23, 911 SQ.ft m// 318.62 N88°44 '0!"W 493.62 3 vt::1t1 .~1 t\l-l'ltr'I /(1 ~V1"".:SrTE :_~-,r 2 ---.____ c a "-------... r'.:•I .,.11""'', -=-·-'-" .,..,, ~ G 1---- N00•55'43"E 20.00 rrs.to j' It) \!-r 0 (/) I " co G \J 50 ' ' ' I ' I ' I '· c < K .µ c J 0 llj .4-J .µ < 81 GUSTY A D D. N O. 1 SHADURA SUBD. GUSTYSUBD. AUGUST NESS SUBD. ADD'N. NO. 8 ETOLIN SUBD. GUSTYADDN NO. 2 NISSEN SUBDIVISION MALSTON-BRAUN ADDITION 1983 U.S.S. 1435 BOOKEY'SREPLAT TOWNSITE OF KENAIKENAITZE ADDITION SUBD. SMITH REPLAT 5A 2 TR. A 1 2 4 5 6A 4 2 1A 1 1 3 5 TR. 6 TR. A 3 1 3 2 TR. B 4 17 2 1 TR. D TR. 8 TR. 1 18 1 TR. B-4 5 6 5 TR. A 12 3 1 1 19 3 613A 21-A 16 4 TR. 2 11 10 18 20 TR. 5TR. 3 5 1A22-A-1 1 1 (5) (1) (2) (2) (1) (1)1147211535 11471 4 0 3405407 502507903908508509498 497 11 6 0 0 11663 11616 11631 11568 11536 11504 50150390250411599 11595 4 0 9 512513907909 509435445498 497 11616 11631 11568 11536 11504 1147211535 11471 1010 50450250050450211 6 0 0 11663 4 0 3405407 50250150390211599 11595 4 0 9 507903908509512513907909 5095001144011440 809 1010 4354458 0 5 507806508 805 11312 8 0 1815805 507806508 805 805A 804511513517509511513509809 805A 804 802 807 818 810 805 811 40040511408 802 807 818 810 805 811 40040511408 11312 8 0 1815 COHOE AVE MAIN STHIGHLAND AVEO V E R L A N D A V E UPLAND STCORAL STCOHOE AV E OVERLAND AVEBROAD WAYBROADWAY CTPENINSULA AVEMAIN STREET LOOP RD1147211535 11471 4 0 3405407 502507903908508509498 497 11 6 0 0 11663 11616 11631 11568 11536 11504 50150390250411599 11595 4 0 9 512513907909 509435445498 497 11616 11631 11568 11536 11504 1147211535 11471 1010 50450250050450211 6 0 0 11663 4 0 3405407 50250150390211599 11595 4 0 9 507903908509512513907909 5095001144011440 809 1010 4354458 0 5 507806508 805 11312 8 0 1815805 507806508 805 805A 804511513517509511513509809 805A 804 802 807 818 810 805 811 40040511408 802 807 818 810 805 811 40040511408 11312 8 0 1815 . 210 ' Date: 6/25/2018 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. “M oosem eat John” Cabin,Lot 1, Gusty Subdivision No. 8 Text 82 KENAI AIRPORT COMMISSION REGULAR MEETING JUNE 14, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS CHAIR GLENDA FEEKEN, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Feeken called the meeting to order at 6:03 p.m. a. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Commissioners Present: Commissioners Absent: G. Feeken, D. Pitts C. Henry, J. Bielefeld, P. Minelga, J. Zirul, K. Dodge Staff/Council Liaison Present: Airport Manager M. Bondurant, Administrative Assistant E. Shinn, Council Member J. Glendening No quorum was present. c. Agenda Approval 2. SCHEDULED PUBLIC COMMENT a. Ron Lapp – Kenai Tower Manager 3. UNSCHEDULED PUBLIC COMMENT – None. 4. APPROVAL OF MEETING SUMMARY a. May 10, 2018 5. UNFINISHED BUSINESS a. Field of Flowers Sign Update b. Terminal Rehabilitation Project Update c. FY19 Budget 6. NEW BUSINESS a. Action/Approval – Special Use Permit to Alaska Air Fuel b. Action/Approval – Special Use Permit to HDL Engineering c. Action/Approval – Special Use Permit to Reddi Towing 83 Airport Commission June 14, 2018 Page 2 of 2 d. Action/Approval – Land Lease Application for the lease of lands within the Airport Reserve for property described as Tract A, Gusty Subdivision #3 and Tract B, Gusty Subdivision No. 6 Amended, submitted by Weaver Brothers, Inc., PO Box 582, Kenai, AK 99611 7. REPORTS a. Airport Manager b. City Council Liaison 8. NEXT MEETING ATTENDANCE NOTIFICATION – July 12, 2018 9. COMMISSIONER COMMENTS AND QUESTIONS 10. ADDITIONAL PUBLIC COMMENT 11. INFORMATION ITEMS a. May 2018 Airport Managers Report b. Float Plane Basin Activity 2018 c. Thank you from Ninilchik High School 12. ADJOURNMENT Meeting summary prepared and submitted by: ___________________________________ Jacquelyn Kennedy Deputy City Clerk 84 ____________________________________________________________________________________ Harbor Commission Meeting Page 1 of 3 June 11, 2018 KENAI HARBOR COMMISSION JUNE 11, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS CHAIR CHRISTINE HUTCHINSON, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Hutchinson called the meeting to order at 6:05 p.m. a. Pledge of Allegiance Chair Hutchinson led those assembled in the Pledge of Allegiance. b. Roll Call Roll was confirmed as follows: Commissioners present: Chair C. Hutchison, M. Dunn, G. Greenberg, B. Peters, C. Crandall, J. Desimone Commissioners absent: Vice-Chair N. DuPerron Staff/Council Liaison present: Public Works Director S. Curtin, Public Works Assistant K. Feltman, Council Member B. Molloy A quorum was present. c. Agenda Approval Chair Hutchison noted the following addition to the packet: Add item 6.b. Harbor Commission Sub-Committee Update MOTION: Commissioner Crandall MOVED to approve the agenda with the addition of Item 6(b) as noted. Commissioner Greenberg SECONDED the motion. There were no objections; SO ORDERED. 2. SCHEDULED PUBLIC COMMENTS – None. 3. UNSCHEDULED PUBLIC COMMENT Wally Page, United Cook Inlet Drift Association (UCIDA) spoke in opposition to the limited and narrowed signage, suggesting the need for cautionary wake signage in several locations with boating safety information. 85 ____________________________________________________________________________________ Harbor Commission Meeting Page 2 of 3 June 11, 2018 4. APPROVAL OF MEETING SUMMARY a. May 7, 2018 MOTION: Commissioner Peters MOVED to approve the meeting summary of May 7, 2018; and Commissioner Crandall SECONDED the motion. There were no objections; SO ORDERED. 5. UNFINISHED BUSINESS – None. 6. NEW BUSINESS a. Discussion – United Cook Inlet Drift Association Comments regarding Wake Sign It was noted that wakes on the upper Kenai River was a safety issue. Additional signage ideas were discussed for the upper and lower river, by the moorings, by the Kenai boat launch, and over the bridge. It was noted the need to remind the personal use fishery about wakes, river flow facts, and educate the public about boat safety. MOTION: Commissioner Greenberg MOVED to add two additional informational signs on the upper and lower Kenai River and Commissioner Crandall SECONDED the motion. MOTION TO AMEND: Commissioner Crandall MOVED to amend to recommend to City Council to place four additional temporary signs on the Kenai River, S. Spruce street beach parking, and a banner on the bridge. Commissioner Desimone SECONDED the motion. There were no objections; SO ORDERED. b. Discussion – Harbor Commission Sub-Committee Update Commissioner Crandall and Council Member Glendening reported that the sub-committee met one time as an informational meeting, discussed the process forward and set up several meeting dates. The Sub-Committee was scheduled to meet approximately every two weeks. The next meeting would be held tomorrow, June 12 at 6 p.m. Commissioner Peters recommended this discussion item continually be on Harbor Commission meeting agendas. 7. REPORTS a. Public Works Director – Curtin reported the following: • Cook Inlet Spill Prevention and Response, Inc. (CISPRI) was leasing the Kenai Dock, not managing the fuel, and the contract was in route for signature; • Mud silt was removed from the boat launch; and • There would be bacteria level testing of the Kenai beach. b. Commission Chair – None. 86 ____________________________________________________________________________________ Harbor Commission Meeting Page 3 of 3 June 11, 2018 c. City Council Liaison – Council Member Molloy reported on the May 16 and June 8 Council Meeting actions, as provided in the packet. 8. NEXT MEETING ATTENDANCE NOTIFICATION – July 9, 2018 9. COMMISSIONER COMMENTS AND QUESTIONS Commissioners welcomed Public Works Director Curtin and thanked UCIDA members for attending the meeting. 10. ADDITIONAL PUBLIC COMMENT – None. 11. INFORMATION ITEMS – None. 12. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:36 p.m. Meeting summary prepared and submitted by: _____________________________________ Jacquelyn Kennedy Deputy City Clerk 87 KENAI HARBOR COMMISSION SUB-COMMITTEE JUNE 12, 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 6:10 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 Director S. Curtin, Public Works Assistant K. Feltman, Council Member J. Glendening A quorum was present. c. Agenda Approval MOTION: Commissioner Crandall MOVED to approve the agenda and Commissioner Dunn SECONDED the motion. There were no objections; SO ORDERED. 2. SCHEDULED PUBLIC COMMENTS – None. 3. APPROVAL OF MEETING SUMMARY a. May 22, 2018 MOTION: Commissioner Crandall MOVED to approve the meeting summary of May 22, 2018 and Commissioner Dunn SECONDED the motion. There were no objections; SO ORDERED. b. May 29, 2018 MOTION: Commissioner Crandall MOVED to approve the meeting summary of May 29, 2018 and Commissioner Dunn SECONDED the motion. There were no objections; SO ORDERED. 4. UNFINISHED BUSINESS - None. 88 ____________________________________________________________________________________ Harbor Sub-Committee Meeting Page 2 of 2 June 12, 2018 5. NEW BUSINESS a. Discussion – Review of Kenai Municipal Code Title 11 Commissioners reviewed Kenai Municipal Code (KMC) Title 11 to determine applicable roles and responsibilities of the Harbor Commission. Chapters 11.05 Harbor Master, 11.10 Harbor Commission, and 11.15 Tidelands were reviewed and ideas for change were noted. Public Works Director Curtin recommended choosing six specific items for discussion at the next meeting. b. Discussion – Review of Kenai Municipal Code Chapter 1.90 This item was moved for review and discussion at the next meeting. c. Discussion – Identification of Harbor Commission Duties and Responsibilities This item was moved for review and discussion at the next meeting. 6. DISCUSS PURPOSE OF NEXT MEETING It was noted that the purpose of the next meeting was to finish reviewing KMC Title 11 and discuss agenda items 5b and 5c thoroughly. 7. SET NEXT MEETING / ATTENDANCE NOTIFICATION – June 26, 2018 8. PUBLIC COMMENTS Kenai resident, Mike Sarisky spoke in support of including additional boat safety information on the Dipnet app and brochure. 9. MEMBER COMMENTS AND QUESTIONS Commissioners welcomed Public Works Director Curtin to the Sub-Committee and thanked him for his input. 10. ADJOURNMENT There being no further business before the Sub-Committee, the meeting was adjourned at 7:37 p.m. Meeting summary prepared and submitted by: _____________________________________ Jacquelyn Kennedy Deputy City Clerk 89 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF: JULY 5, 2018 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT BOYS & GIRLS CLUB MAY FACILITY MANAGEMENT RECREATION PROFESSIONAL SERVICES 10,833.33 BOYS & GIRLS CLUB JUNE FACILITY MANAGEMENT RECREATION PROFESSIONAL SERVICES 10 ,833.33 BLUESTREAK EQUIPMENT MAGNETIC SWEEPER PERSONAL USE FISHERY SMALL TOOLS 2 ,610.37 PROFESSIONAL ESCROW PURCHASE LOT 047-119-01 BLUFF EROSION LAND 4 ,671 .32 HOME DEPOT FIRE TRUCK GAZEBO RECREATION OPERATING SUPPLIES 5,000.00 90 City of Kenai, Alaska The following communication was prepared as part of our audit, has consequential limitations, and is intended solely for the information and use of those charged with governance (e.g., City Council and Audit Committee) and, if appropriate, management of the City and is not intended and should not be used by anyone other than these specified parties. BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. AUDIT PLANNING Year Ending June 30, 2018 91 3601 C Street, Suite 600 Anchorage, AK 99503 Tel: 907-278-8878 Fax: 907-278-5779 www.bdo.com June 20, 2018 Honorable Mayor and Members of the City Council City of Kenai, Alaska Professional standards require us to communicate with you regarding matters related to the financial statement audit that are, in our professional judgment, significant and relevant to your responsibilities in overseeing the financial reporting process. This document provides an overview of our plan for the audit of the financial statements, the schedule of expenditures of federal awards and the schedule of state financial assistance of City of Kenai, Alaska (the City) as of and for the year ending June 30, 2018, including a summary of the nature, scope, and timing of the planned audit work. Responsibilities BDO USA, LLP, as your auditor, is responsible for forming and expressing an opinion about whether the financial statements, the schedule of expenditures of federal awards and schedule of state financial assistance that have been prepared by management, with your oversight, are prepared, in all material respects, in conformity with accounting principles generally accepted in the United States of America. In addition our audit will be conducted in accordance with standards for financial audits contained in the Government Auditing Standards, issued by the Comptroller General of the United States and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance) and the State of Alaska Audit Guide and Compliance Supplement for State Single Audits (State Audit Guide). The audit of the financial statements does not relieve you of your responsibilities and does not relieve management of their responsibilities. The engagement letter, a copy of which has been provided to you, includes specific details regarding the auditor’s and management’s responsibilities. Overall Audit Strategy and Planned Scope Overall, our audit strategy is to assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design further audit procedures responsive to assessed risks. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. In connection with our audit, we will obtain a sufficient understanding of the City’s internal control to plan the audit of the financial statements. However, such understanding is required for the purposes of determining our audit procedures and not to provide any assurance concerning such internal control. In addition, the Uniform Guidance and the State Audit Guide requires that we also plan and perform the audit to obtain reasonable assurance about whether the City has complied with applicable federal and state statutes, regulations and the terms and conditions of the federal and state awards that may have a direct and material effect on each of City’s major federal and state programs. We focus on areas with higher risk of material misstatement (whether due to error or fraud). Our audit strategy includes consideration of: a) prior year audit results together with current year preliminary analytical review, including discussions with management and those charged with governance regarding the City’s operations, b) inherent risk within the City, c) recent developments within the industry, regulatory environment and general economic conditions, d) recently issued and effective accounting and financial reporting guidance, e) the City’s significant accounting policies and procedures, including those requiring significant management judgments and estimates and those related to significant unusual transactions, 92 f) the control environment and the possibility that the control system and procedures may fail to prevent or detect a material error or fraud, g) internal control over compliance with requirements that could have a direct and material effect on a major federal and state program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the Uniform Guidance and the State Single Audit Guide. h) information about systems and the computer environment in which the related systems operate, and i) a continual assessment of materiality thresholds based upon qualitative and quantitative factors affecting the City. Based upon our initial assessment, our planned scope for the audit is described below: o Fraud Risk o Internal Control Over Financial Reporting o Cash and Investments o Accounts Receivable and Allowances o Revenue Recognition o Federal and State Grants o Long-term Obligations, including Debt Issuance and Repayment o Capital Assets o Tax Revenue, Charges for Services, etc. o Pension and Other Postemployment benefits o Single Audit in Accordance with the Uniform Guidance and the State Single Audit o Evaluation of Related Party Relationships and Transactions and Going Concern o Other Matters, Including Significant Unusual Transactions Overall Audit Timeline Planning is anticipated to occur in August 2018 and year-end fieldwork will occur October 2018, with release of the opinion and financial statements and reports in accordance with Government Auditing Standards, Uniform Guidance, and the State Audit Guide expected to occur by November 2018. Independence Communication Our engagement letter to you dated May 31, 2018 describes our responsibilities in accordance with professional standards and certain regulatory authorities with regard to independence and the performance of our services. This letter also stipulates the responsibilities of the City with respect to independence as agreed to by the City. Please refer to that letter for further information. 93 Significant Accounting and Reporting Matters GASB STATEMENT NO. 75, ACCOUNTING AND FINANCIAL REPORTING FOR POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS  Establishes measurement criteria for the Other Postemployment Benefits (OPEB) liability of state and local governments and mirrors the requirements of GASB 68.  For plans administered through a trust, governments must recognize the net OPEB liability.  For plans not administered through a trust, the government must recognize the total OPEB liability.  The pronouncement will be effective starting with years ending June 30, 2018. GASB STATEMENT NO. 85, OMNIBUS 2017  Addresses several practice issues that have been identified during implementation of certain GASB Statements: 1. Blending a component unit when the primary government is a business-type activity that reports in a single column. 2. Reporting amounts previously reported as goodwill and negative goodwill. 3. Classifying real estate held by insurance entities. 4. Measuring certain money market instruments at amortized cost. 5. Timing of the measurement of pension or OPEB liabilities and expenditures in governmental fund financial statements. 6. Recognizing on-behalf payments for pensions or OPEB in employer financial statements. 7. Presenting payroll-related measures in Required Supplementary Information for OPEB plans and employers that provide OPEB. 8. Classifying employer-paid member contributions for OPEB. 9. Simplifying certain aspects of the alternative measurement method for OPEB. 10. Accounting and reporting for OPEB provided through certain multiple-employer defined benefit OPEB plans.  The pronouncement will be effective starting with years ending June 30, 2018. GASB STATEMENT NO. 86, CERTAIN DEBT EXTINGUISHMENT ISSUES  Resolves issue of how to record in-substance defeasance of debt when only existing resources are used.  Current standards only address reporting requirements when debt is extinguished using bond proceeds.  When cash or other existing resources are placed in an irrevocable trust to extinguish debt, it is considered to be in-substance defeasance, assuming all criteria are met.  The difference between the reacquisition price and the net carrying amount of the debt will be recognized as a separately identified gain or loss in the period of defeasance. This differs from current practice when debt is extinguished using bond proceeds, whereby the difference is deferred.  Payments to the escrow agent from existing resources should be reported as debt service expenditures in governmental fund types.  The pronouncement will be effective starting with years ending June 30, 2018. 94 GASB STATEMENT NO. 83, CERTAIN ASSET RETIREMENT OBLIGATIONS  Establishes measurement criteria for recording a liability for the retirement or removal of certain assets such as:  Nuclear power plants  Sewage treatment facilities  Coal-fired power plant  Wind turbines  X-ray machines  Governments with legal obligations to perform future asset retirement activities related to its tangible capital assets would be required to recognize a liability.  A liability and corresponding deferred outflow is recorded when the liability is both incurred and reasonable estimable.  The liability is based on the best estimate of the current value of outlays expected to be incurred.  Must be both an external obligating event, such as a court judgment or federal, state or local law; and an internal obligating event, such as contamination or retirement.  The pronouncement will be effective starting with years ending June 30, 2019. GASB STATEMENT NO. 84, FIDUCIARY ACTIVITIES  Establishes criteria for reporting fiduciary activities that focuses on whether the government controls the assets and the fiduciary relationship with the beneficiaries.  The statement describes four fiduciary funds: 1. Pension and OPEB funds 2. Investment trust funds 3. Private-purpose trust funds 4. Custodial funds  Custodial funds replace agency funds for activities that are not held in trust.  For activities for which a trust agreement exists, an investment trust fund or private purpose trust fund will be used.  Pension funds not held in trust would be classified as custodial funds.  GASB is working on an Implementation Guide for which an Exposure Draft likely will be issued in December 2018.  The pronouncement will be effective starting with years ending June 30, 2019. 95 GASB STATEMENT 88, CERTAIN DISCLOSURES RELATED TO DEBT, INCLUDING DIRECT BORROWINGS AND DIRECT PLACEMENTS  Defines debt for purposes of disclosure as a liability that arises from a contractual obligation to pay cash or other assets in one or more payments to settle an amount that is fixed as of the date the obligation is established.  Would exclude pension and OPEB liabilities, leases and accounts payable as those should be disclosed in separate notes.  Includes capital appreciation bonds and variable rate debt.  Additional note disclosures required for unused lines of credit, assets pledged as collateral, specific debt agreement terms.  The pronouncement will be effective starting with years ending June 30, 2019. GASB EXPOSURE DRAFT, ACCOUNTING AND REPORTING FOR MAJORITY EQUITY INTERESTS  Will report majority equity interest as an investment if it meets the definition.  Measured using the equity method, unless held by a special-purpose government engaged only in fiduciary activities, fiduciary fund or endowment/permanent fund. These funds would utilize fair value.  For all other majority equity interests, report as component unit and fund that holds the equity interest reports an asset using the equity method.  Acquisition of a component unit in which government holds 100% interest would be measured using acquisition value.  Expected effective date: Years ending June 30, 2019. GASB EXPOSURE DRAFT, ACCOUNTING FOR INTEREST COST DURING PERIOD OF CONSTRUCTION  In financial statements using the economic resources measurement focus, interest incurred during construction should be recognized as an expense of the period.  In financial statements using the current financial resources measurement focus, interest incurred during construction should be recognized as an expenditure.  Interest cost should not be capitalized.  Interest does not meet the definition of an asset or a deferred outflow.  Expected effective date: Years ending June 30, 2019 GASB Statement No. 87, leases  This standard will require recognition of certain lease assets and liabilities for leases that are currently classified as operating leases.  Eliminates the distinction between operating and capital leases - all leases will be recorded on the statement of net position/balance sheet.  New definition of a lease - a contract that conveys the right to use another entity’s nonfinancial asset for a period of time in an exchange or exchange-like transaction.  Excludes leases that transfer ownership under a bargain purchase option or service concession arrangements that are covered by GASB Statement No. 60.  Lessees would recognize a lease liability and an intangible right-to-use lease asset which would be amortized in a systematic and reasonable manner over the shorter of the lease term or the useful life of the underlying asset. Short-term leases are excluded.  Lessors would recognize lease receivable and deferred inflow of resources which would be recognized as revenue in a systematic and rational manner over the term of the lease.  The pronouncement will be effective starting with years ending June 30, 2020. 96 Client Service Team As a matter of policy, we attempt to provide continuity of service to our clients to the greatest extent possible. Where engagement team rotation is necessary, we will discuss this matter with you and determine the appropriate individuals to be assigned to the engagement based on particular experience, expertise, and engagement needs. The following is the contact information for the engagement partner and manager responsible: Joy Merriner – Engagement Partner jmerriner@bdo.com Michelle Kiese – Manager mkiese@bdo.com We are pleased to be of service to the City of Kenai, Alaska and look forward to answering questions you may have regarding our audit plan as well as other matters that may be of interest to you. Respectfully, 97 Cybersecurity The board’s role in the oversight of organizational risk is increasingly complicated by cybersecurity concerns. Trustees need to maintain continual knowledge about evolving cyber issues and management’s plans for allocating resources and otherwise responding to cyber risks. Such knowledge helps boards assess the priorities and investment decisions made by management in critical areas. Often, particularly in smaller organizations, those charged with governance oversee and monitor management’s strategy for protecting its digital assets. Building on the growing market demand for information about the effectiveness of an entity’s cybersecurity risk management program and the auditing profession’s long history and skills with respect to external reporting and auditing information technology controls, the American Institute of Certified Public Accountants (AICPA) has formed an initiative and is currently developing auditing standards and a consistent approach to cybersecurity attestation to assist boards, management, and other pertinent stakeholders. The subject matter of such a cybersecurity examination engagement will be composed of three key elements: 1. Management’s narrative description of the entity’s cybersecurity risk management program. 2. Management’s written assertion that the controls implemented as part of the program were effective to achieve the entity’s cybersecurity objectives. 3. Practitioner’s examination report expressing an opinion about whether management’s description of the entity’s cybersecurity risk management program and the effectiveness of controls within that program achieve the entity’s cybersecurity objectives. In April 2018, the AICPA published the new Cybersecurity Risk Management Framework to its website. Here are recent tools/materials for use by those charged with governance in this area: Recommended Resources Release Date BDO Archived Webinar: What’s on the Minds of Boards? November 2017 Are You Cyber Aware?: 10 Cybersecurity Questions for Senior Executives? October 2017 Cyber Risk Management: What You Need to Know Now October 2017 2017 BDO Cyber Governance Survey September 2017 Breaking Down the Equifax Data Breach September 2017 BDO Knows Cybersecurity: Petya Cyber Attack June 2017 BDO Highlights Important DHS - FBI Cyber Alert on North Korea - Hidden Cobra June 2017 Introducing SOC for Cybersecurity: Translating Cyber Risk For Every Stakeholder June 2017 The CPA’s Role in Addressing Cybersecurity Risk May 2017 A Cybersecurity Attach of Unprecedented Scale (WannaCry) May 2017 Cybersecurity Officially Reaches the Board: 12 Questions Every Board Should Ask April 2017 BDO Knows: Cybersecurity - NY Department of Financial Services Final Cybersecurity Regulation February 2017 98 JULY 5, 2018 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION ITEM REQUESTED BY Add to item G.3. Non-Objection to Peninsula Botanicals Limited City Clerk Marijuana Cultivation Facility License Renewal • Memo from the City Clerk • Memo regarding Obligations to the City • Notification from AMCO • Peninsula Botanicals Renewal Application Add to item G.5. Special Use Permit for Kenai Chamber of City Manager Commerce and Visitor Center • Correction Memo • Corrected Special Use Permit MEMORANDUM TO: Mayor and City Council Members FROM: Jamie Heinz, City Clerk DATE: June 29, 2018 RE: Limited Marijuana Cultivation Facility License Renewal The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested to renew their Limited Marijuana Cultivation Facility License: Applicant: Peninsula Botanicals, LLC Owners: Kathryn Staskon D/B/A: Peninsula Botanicals Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board or the Marijuana Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. A review of City accounts has been completed and the applicant has satisfied all obligations to the City. With the approval of Council, a letter of non-objection to the request for a Standard Marijuana Cultivation Facility License will be forwarded to the Alcoholic & Marijuana Control Office and the applicant. Your consideration is appreciated. Attachments 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7th Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 June 18, 2018 City of Kenai Attn: Jamie Heinz VIA Email: jheinz@kenai.city kring@kpb.us jblankenship@kpb.us micheleturner@kpb.us License Number: 12303 License Type: Limited Marijuana Cultivation Facility Licensee: Peninsula Botanicals, LLC Doing Business As: PENINSULA BOTANICALS Physical Address: 1030 angler drive Unit B kenai, AK 99611 Designated Licensee: kathryn staskon Phone Number: 907-420-4176 Email Address: katestaskon@gmail.com AMCO has received a complete renewal application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under 3 AAC 306.035(c)(2). To protest the approval of this application pursuant to 3 AAC 306.060, you must furnish the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of the date of this notice, and provide AMCO proof of service of the protest upon the applicant. 3 AAC 306.060 states that the board will uphold a local government protest and deny an application for a marijuana establishment license unless the board finds that a protest by a local government is arbitrary, capricious, and unreasonable. At the May 15, 2017, Marijuana Control Board meeting, the board delegated to me the authority to approve renewal applications with no protests, objections, or notices of violation. However, if a timely protest or objection is filed for this application, or if any notices of violation have been issued for this license, the board will consider the application. In those situations, a temporary license may be issued pending board consideration. If you have any questions, please email amco.localgovernmentonly@alaska.gov. Sincerely, Erika McConnell AMCO Received 6/15/2018 AMCO Received 6/15/2018 Department of Commerce, Community, & Economic Development Alcohol & Marijuana Control Office License #12303 Initiating License Application 6/1/2018 3:01:22 PM Licensee #1 Type: Entity Alaska Entity Number: 10051115 Alaska Entity Name: Peninsula Botanicals, LLC Phone Number: 907-420-4176 Email Address: katestaskon@gmail.com Mailing Address: 1030 angler drive kenai, AK 99611 UNITED STATES Entity Official #1 Type: Individual Name: kathryn staskon Phone Number: 907-420-4176 Email Address: katestaskon@gmail.com Mailing Address: 1030 angler drive kenai, AK 99611 UNITED STATES License Number: 12303 License Status: Active-Operating License Type: Limited Marijuana Cultivation Facility Doing Business As: PENINSULA BOTANICALS Business License Number: 1049951 Designated Licensee: kathryn staskon Email Address: katestaskon@gmail.com Local Government: Kenai (City of) Community Council: Latitude, Longitude: 60.545068, -151.859760 Physical Address: 1030 angler drive Unit B kenai, AK 99611 UNITED STATES Note: No affiliates entered for this license. MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Christine Cunningham, Assistant to City Manager DATE: July 2, 2018 SUBJECT: Action/Approval – Special Use Permit for Kenai Chamber of Commerce and Visitor Center for the “Moosemeat John” Cabin The purpose of this memo is to provide a correction to the described area of the Special Use Permit (SUP) for the Kenai Chamber of Commerce and Visitor Center (KCCVC) to use and operate the “Moosemeat John” cabin. The correct described area is as follows: The southeast 100’ x 100’ portion of Lot 1, Gusty Subdivision, Addition No. 8, Kenai Recording District, according to Plat No. 91-9 The original SUP was for the southeast 100’ x 100’ portion and was expanded in 1995 to 24,500 square feet to include the entire eastern section of the lot where Saturday Market is held. The attachment submitted with the original Action/Approval memo shows the correct 10,000 square- foot portion, however the described area in the text of the SUP was incorrect. Attached is a corrected version. Attachment cc: Kenai Chamber of Commerce and Visitor Center Special Use Permit – Kenai Chamber of Commerce & Visitor Center Page 1 of 5 SPECIAL USE PERMIT The CITY OF KENAI (City), for the consideration, and pursuant to the conditions set out below, hereby grants the Kenai Chamber of Commerce and Visitor Center (PERMITTEE) the right to use the Premises, identified on Attachment A to this Permit, and described as: The southeast 100’ x 100’ portion of Lot 1, Gusty Subdivision, Addition No. 8, Kenai Recording District, according to Plat No. 91-9, to use and operate the “Moosemeat John” Cabin. 1. Use/Term. Permittee shall have use of the Premises on the 1st day of August 1, 2018 and shall extend through the 30th day of July 2019. 2. Fee. The Permittee shall not be charged a fee for the use or privilege specified herein. 3. No Exclusivity. The use by the Permittee of the Premises is limited to the purposes specified herein and is not intended to grant any exclusive use to the described Premises except as otherwise provided herein. This use is also subject to City, Borough, and State laws and regulations and the reasonable administrative actions of the City for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. 4. Improvements. Permittee shall not make any permanent improvements to the Premises. 5. Preparation of Premises. It is Permittee’s responsibility to prepare the Premises and to assure itself to its own satisfaction that the Premises are safe for its purposes. The City does not make any warranty or guaranty of the suitability of the Premises for Permittee’s intended purposes. 6. Trash and Debris. The Premises must be returned to its original condition at the end of each use. Clean up and/or repair charges beyond normal wear and tear will be billed to Permittee based upon cost of repair. Debris and trash shall be collected and removed from the Premises by Permittee. Permittee shall alert City (Parks and Recreation Department) of unsightly, unsanitary, dirty or other conditions on the Premises which exist prior to Permittee’s use. 7. No Alcohol or Illegal Substances. No possession or consumption of alcoholic beverages, marijuana or illegal substances is permitted on the Premises. 8. 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. 9. Personalty. Any or all personal property placed or used upon lands or in facilities may be removed and/or impounded by the City, 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 its invitees to the Premises. Special Use Permit – Kenai Chamber of Commerce & Visitor Center Page 2 of 5 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 Premises. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on the Premises and its exercise of the privileges granted in this Permit. 11. 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. 12. 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 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. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated “A-” or better by A.M. Best. ii. 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. iii. Permittee shall request a waiver of subrogation against City from Permittee’s insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City prior to any use. Special Use Permit – Kenai Chamber of Commerce & Visitor Center Page 3 of 5 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. 13. 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. 14. Contact Information. The Contact information for the Permittee, and the person in responsible charge for Permittee during the term of the Permit, for purposes of notice and all communications from City to Permittee is: Johna Beech President/Chief Operating Officer Kenai Chamber of Commerce & Visitor Center 11471 Kenai Spur Hwy. Kenai, AK 99611 15. 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. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 16. 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 organization to bind the organization hereunder. CITY OF KENAI KENAI CHAMBER OF COMMERCE & VISITOR CENTER By:____________________________ By:_______________________________ Paul Ostrander Date ____________________(Title) Date City Manager Special Use Permit – Kenai Chamber of Commerce & Visitor Center Page 4 of 5 ACKNOWLEDGMENTS STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____day of ________, 2018, the foregoing instrument was acknowledged before me by Paul Ostrander, City Manager of the City of Kenai, Alaska, an Alaska home rule municipality, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____day of ________, 2018, the foregoing instrument was acknowledged before me by (Title) of ________________________________________________ an ___________________ corporation, on behalf of the corporation. Notary Public for Alaska My Commission Expires: Special Use Permit – Kenai Chamber of Commerce & Visitor Center Page 5 of 5 ATTEST: Jamie Heinz, CMC, City Clerk SEAL: APPROVED AS TO FORM: Scott M. Bloom, City Attorney Kenai City Council Meeting Page 1 of 3 July 5, 2018 ACTION AGENDA KENAI CITY COUNCIL – REGULAR MEETING JULY 5, 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) 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. 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) 2. ADOPTED UNANIMOUSLY. Resolution No. 2018-38 – Awarding an Agreement to Peninsula Pumping, Inc., for Providing and Servicing Portable Restrooms and Dumpsters on The North and South Kenai Beaches, Including Portable Restrooms at the City Dock, During the 2018 Personal Use Fishery. (Administration) 3. ADOPTED UNANIMOUSLY. Resolution No. 2018-39 – Awarding an Agreement to Alaska Waste – Kenai Division, LLC, for Providing and Servicing Road Accessible Dumpsters at the End of South Spruce Street, Kenai Little League Parking Lot, and Kenai City Dock During the 2018 Personal Use Fishery. (Administration) 4. ADOPTED UNANIMOUSLY. Resolution No. 2018-40 – Approving the Execution of a Lease of Airport Reserve Lands Using the Standard Lease Form Between the City of Kenai and James H. Doyle, Individually, D/B/A Weaver Brothers, Inc. for Tract A, Kenai City Council Meeting Page 2 of 3 July 5, 2018 Gusty Subdivision No. 3, and Tract B, Gusty Subdivision No. 6, Amended. (Administration) 5. ADOPTED UNANIMOUSLY. Resolution No. 2018-41 – Consenting to The Vacation of the Easternmost Portion of Riverview Drive Right-of-Way between Broad Street and Lot 2C, Original Townsite of Kenai Laddville Replat No. 3, a Portion of Broad Street Right-of-Way South of Cook Avenue, and the Unnamed Right-of-Way South of Cook Avenue Adjacent to Lot 2C Original Townsite of Kenai Laddville Replat No. 3 and Lot 1, Block 18, Original Townsite Of Kenai. (Administration) E. MINUTES 1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of June 20, 2018 F. UNFINISHED BUSINESS – None. G. NEW BUSINESS 1. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Bills to be Ratified. 2. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Purchase Orders Over $15,000 3. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Non-Objection to Limited Marijuana Cultivation Facility License Renewal for Peninsula Botanicals, License No. 12303. (City Clerk) 4. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 08/01/2018. *Ordinance No. 3034-2018 - Repealing Kenai Municipal Code Chapters 16.05- General Provisions, and 16.10- Procedure, within Title 16- Public Improvements and Special Assessments and Re-Enacting and Renaming Chapter 16.05- Special Assessment Districts. (Council Member Knackstedt) 5. APPROVED UNANIMOUSLY AS AMENDED. Action/Approval – Special Use Permit for the Kenai Chamber of Commerce and Visitor Center to Allow the Moosemeat John Cabin to be Used and Operated on City-owned Property Known as Lot 1, Gusty Subdivision, Addition 8. (Administration) 6. AMENDMENT APPROVED UNANIMOUSLY. Action/Approval – Amending an Employment Agreement between the City of Kenai and City Manager Paul Ostrander. (Administration) H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission • Harbor Roles & Responsibilities Sub-Committee 4. Parks and Recreation Commission 5. Planning and Zoning Commission Kenai City Council Meeting Page 3 of 3 July 5, 2018 6. Beautification Committee 7. Mini-Grant Steering Committee I. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION – None. M. PENDING ITEMS – None. N. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review 2. FY18 Audit Planning Document The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231. CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE JULY 5, 2018 KENAI CITY COUNCIL MEETING NOTICE IS HEREBY G IVEN the City of Kenai Council passed the following Ordinance(s) and/or Resolution(s) at the above-referenced meeting. 1. ENACTED UNANIMOUSLY. 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) 2 . ADOPTED UNANIMOUSLY. Resolution No. 2018-38 -Awarding an Agreement to Peninsula Pumping, Inc., for Providing and Servicing Portable Restrooms and Dumpsters on The North and South Kenai Beaches , Including Portable Restrooms at the City Dock, During the 2018 Personal Use Fishery. (Administration) 3. ADOPTED UNANIMOUSLY. Resolution No. 2018-39 -Awarding an Agreement to Alaska Waste -Kena i Division , LLC, for Providing and Servicing Road Accessible Dumpsters at the End of South Spruce Street, Kenai Little League Parking Lot, and Kenai City Dock During the 2018 Personal Use Fishery. (Administration) 4. ADOPTED UNANIMOUSLY. Resolution No. 2018-40 -Approving the Execution of a Lease of Airport Reserve Lands Using the Standard Lease Form Between the City of Kenai and James H. Doyle , Individually, D/B/A Weaver Brothers, Inc. for Tract A, Gusty Subdivision No. 3, and Tract B, Gusty Subdivision No . 6, Amended. (Administration) 5. ADOPTED UNANIMOUSLY. Resolution No. 2018-41 -Consenting to The Vacation of the Easternmost Portion of Riverview Drive Right-of-Way between Broad Street and Lot 2C , O riginal Townsite of Kenai Laddville Replat No. 3, a Portion of Broad Street Right-of- Way South of Cook Avenue , and the Unnamed Right-of-Way South of Cook Avenue Adjacent to Lot 2C Original Townsite of Kenai Laddville Replat No. 3 and Lot 1, Block 18, Original Townsite Of Kenai. (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 JULY 5, 2018 CITY OF KENAI COUNCIL MEETING NOTICE IS HEREBY GIVEN the City Council of the City of Kena i will conduct a public hearing on the following Ordinance(s) and/or Resolution(s) on the above-noted meeting date: 1. 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) 2. Resolution No. 2018-38 -Awarding an Agreement to Peninsula Pumping , Inc., for Providing and Servicing Portable Restrooms and Dumpsters on The North and South Kenai Beaches, Including Portable Restrooms at the City Dock, During the 2018 Personal Use Fishery. (Administration) 3. Resolution No. 2018-39 -Awarding an Agreement to Alaska Waste -Kenai Division, LLC, for Providing and Servicing Road Accessible Dumpsters at the End of South Spruce Street, Kenai Little League Parking Lot, and Kenai City Dock During the 2018 Personal Use Fishery. (Administration) 4. Resolution No. 2018-40 -Approving the Execution of a Lease of Airport Reserve Lands Using the Standard Lease Form Between the City of Kenai and James H. Doyle, Individually, D/B/A Weaver Brothers, Inc. for Tract A, Gusty Subdivision No. 3, and Tract B, Gusty Subdivision No . 6, Amended. (Administration) 5 . Resolution No. 2018-41 -Consenting to The Vacation of the Easternmost Portion of Riverview Drive Right-of-Way between Broad Street and Lot 2C, Original Townsite of Kenai Laddville Replat No. 3, a Portion of Broad Street Right-of-Way South of Cook Avenue, and the Unnamed Right-of-Way South of Cook Avenue Adjacent to Lot 2C Original Townsite of Kenai Laddville Replat No. 3 and Lot 1, Block 18, Original Townsite Of Kenai. (Administration) The public hearing will commence at 6 :00 p.m ., or as soon thereafter as business permits , in the Kenai City Council Chambers, 210 Fidalgo Avenue, Kenai, Alaska, 99611. All interested persons are invited to attend the meeting and participate in the public d iscussion . Written comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 210 Fidalgo Avenue, Kenai, AK, 99611 . Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk and will be available at the meeting for public review. Please be advised, subject to legal limitations, ord inances and /or resolutions may be amended by the Council prior to adoption without further public notice .