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2018-08-01 Council Packet
KENAI CITY COUNCIL - REGULAR MEETING AUGUST 01, 2018 - 6:00 PM KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city A.CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AGENDA APPROVAL CONSENT AGENDA (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B.SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) B.1.Johna Beech, Kenai Chamber of Commerce and Visitor Center – Second Quarter Update. KVCC 2018 2nd Quarter Report.pdf C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D.PUBLIC HEARINGS D.1.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 D.2.Resolution No. 2018-42 - Authorizing the City Manager to Enter Into a Restaurant Concession Agreement for the Kenai Municipal Airport. Resolution No. 2018-42.pdf D.3.Resolution No. 2018-43 – Approving a Second Amendment to the Airline Operating Agreement and Terminal Area Lease and Authorizing the City to Enter Into Such Agreement with Corvus Airlines D/B/A Ravn Alaska. (Administration) Resolution No. 2018-43.pdf D.4.Resolution No. 2018-44 – Approving a Second Amendment to the Airline Operating Agreement and Terminal Area Lease and Authorizing the City to Enter Into Such Agreement with Grant Aviation, Inc. (Administration) Resolution No. 2018-44.pdf 1 Kenai City Council Meeting Page 2 August 01, 2018 D.5.Resolution No. 2018-45 – Accepting the Proceeds from a $2,000 Caring for the Kenai Project Development Grant Provided by Enstar Natural Gas to Mr. Riley Graves for the Purchase and Deployment of Magnets to Remove Nails and Other Metal Debris from City Beaches. (Administration) Resolution No. 2018-45.pdf D.6.Resolution No. 2018-46 – Approving the Execution of a Lease of Airport Reserve Lands Using the Standard Lease Form Between the City of Kenai and SOAR International Ministries, Incorporated, for the Undeveloped Portion of Tract A, General Aviation Apron Number Two. (Administration) Resolution No. 2018-46.pdf E.MINUTES E.1.*Regular Meeting of July 5, 2018 07-05-18 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.*Ordinance No. 3035-2018 – Increasing Estimated Revenues and Appropriations by $2057.58 in the General Fund (FY18) – Police Department for State Traffic Grant Overtime Expenditures. (Administration) Ordinance No. 3035-2018.pdf G.4.*Ordinance No. 3036-2018 – Accepting and Appropriating a Grant from the State of Alaska for the Purchase of Library Books. (Administration) Ordinance No. 3036-2018.pdf G.5.Action/Approval – Field of Flowers Signage. (Council Member Knackstedt) ActionApproval - Field of Flowers.pdf G.6.Action/Approval – Authorize the City Manager to Enter into a Memorandum of Agreement between the Kenai Peninsula Borough and the City of Kenai for Participation in a Multi-Jurisdictional Team to Review and Coordinate Hazard Mitigation Plans. (Administration) ActionApproval - MOA Hazard Mitigation Plans.pdf H.COMMISSION/COMMITTEE REPORTS H.1.Council on Aging H.2.Airport Commission 07-12-18 Airport Summary - DRAFT.pdf 2 Kenai City Council Meeting Page 3 August 01, 2018 H.3.Harbor Commission • Sub-Committee Update 06-26-18 Sub-Committee Summary - DRAFT.pdf H.4.Parks and Recreation Commission H.5.Planning and Zoning Commission 06-27-18 P&Z Minutes - DRAFT.pdf Marijuana Facilities Statistics.pdf H.6.Beautification Committee H.7.Mini-Grant Steering Committee 07-06-18 Mini-Grant Summary - DRAFT.pdf I.REPORT OF THE MAYOR J.ADMINISTRATION REPORTS J.1.City Manager Mid-Month Reports.pdf Quarterly Finance Reports.pdf J.2.City Attorney J.3.City Clerk K.ADDITIONAL PUBLIC COMMENT K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker) K.2.Council Comments L.EXECUTIVE SESSION - None. M.PENDING ITEMS - None. INFORMATION ITEMS Purchase Orders between $2,500 and $15,000 for Council Review Purchase Orders between $2,500 - $15,000.pdf Kenai Watershed Forum – Kenai River Festival “Thank You” Letter KRF Thanks.pdf N.ADJOURNMENT 3 Kenai City Council Meeting Page 4 August 01, 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 Kenai Chamber of Commerce and Visitor Center Kenai Visitor and Cultural Center Report 2nd Quarter April – June 2018 KVCC Walk in Visitor Count Month 2014 2015 2016 2017 2018 April 1,361 2,145 1,582 1,142 913 May 1,920 3,108 3,299 2,840 2,089 June 5,784 5,880 6,574 6,026 5,057 Q2 Total 9,065 11,133 11,455 10,008 8,059 Official Kenai Guide Mailings Month 2014 2015 2016 2017 2018 April 0 500 667 332 1,330 May 1,500 850 1,159 988 757 June 1,000 300 730 1,356 1,230 Q2 Total 2,500 1,650 2,556 2,676 3,317 Official Kenai Guide Display Racks Location 2014 2015 2016 2017 2018 Anchorage Brochure Distribution *** *** *** *** *** Airport Hotel – Kenai NA NA NA 0 200 Aspen – Kenai 0 200 0 0 0 Aspen – Soldotna 0 200 192 0 100 Charlotte’s Restaurant NA NA NA 0 148 City Hall NA NA 85 170 102 Country Foods/IGA 200 200 35 239 188 Diamond M Ranch 0 100 0 96 0 Everything Bagels NA NA NA 160 194 Kenai Airport 1,000 1,500 804 651 708 Mad Moose Restaurant NA NA NA 158 NA Paradisos Restaurant 200 300 75 64 100 Quality Inn 200 400 30 128 237 Safeway – Kenai 700 500 311 406 225 Safeway – Soldotna 400 400 NA NA 448 Soldotna Inn 0 200 56 80 200 Sportsmans Warehouse 200 500 271 343 399 Three Bears 200 350 207 196 249 Veronica’s NA NA 31 94 185 Total Guide Count 3,100 4,850 2,097 2,785 3,683 5 Kenai Chamber of Commerce and Visitor Center Kenai Visitor and Cultural Center Report 2nd Quarter April – June 2018 *Note: In January, we send guides to Anchorage Brochure Distribution to distribute to the following locations throughout the year* 3rd Ave Visitor Center 4th Street Mall ANC Guesthouse Anchorage Grand Anchorage Historic Backpacker – Eagle & 4th Clarion Suites Comfort Inn – Railroad Depot Marriott – Downtown Quality Inn – 8th & C Street Ramada – 3rd Ave The Lofts ABC Motorhome ALEX Inn & Suites Comfort Suites – Airport Courtyard by Marriott Executive Suites Longhouse Inn Midnight Sun Car Rental Puffin Inn Super 8 Travel Lodge – Barratts Lakeshore Tower Build B Best Western Gold Lion AAA Travel – Arctic & 36th Clippership RV Extended Stay – 34th & Old Seward Golden Nugget RV Homewood Suites Marriott – 32nd & Fai RTO Springhill Suites – 36th & A Springhill Suites – Providence # of guides sent to Anchorage Brochure Distribution in January 5yr Comparison Anchorage Brochure Distribution 20,000 20,000 20,000 15,000 15,000 6 Kenai Chamber of Commerce and Visitor Center Kenai Visitor and Cultural Center Report 2nd Quarter April – June 2018 Website Traffic for www.visitkenai.com Sessions (total number of sessions to the site) Users (total number of unique users to the site) Pageviews (total number of pages viewed on your site) Average Session Duration (average session length of all users) Bounce Rate (percent of single-page sessions) New Users (percent of total users who came the site for the first time) 7 Kenai Chamber of Commerce and Visitor Center Kenai Visitor and Cultural Center Report 2nd Quarter April – June 2018 Facility Rental/Community Usage 2018 Q2 Alaska Republican Party State Central Meeting Alaska Support Industry Alliance Luncheons Andeavor Central Peninsula Hospital Department of Health and Social Services Meeting Hays Research Hilcorp Contractor Meetings KDLL Radio Adventure Telling Series Kenai Chamber Annual Community Awards Luncheon Kenai Chamber Board Meetings Kenai Chamber Luncheons Kenai Historical Society General Membership Meetings Kenai Peninsula Association of Realtors Kenai Peninsula Birding Festival Kenai Peninsula Builders Association Kenai Peninsula Trout Unlimited Kenai Peninsula Relay for Life Committee Meetings Kenaitze Indian Tribe Lemonade Day Workshop Peninsula Job Center Run into Summer 5k Series Saturday Market Women in Business Summit 8 Kenai Chamber of Commerce and Visitor Center Kenai Visitor and Cultural Center Report 2nd Quarter April – June 2018 Great Alaskan Sportsman Show April 5 – April 8, 2018 Sullivan Arena Anchorage, Alaska 1,100 Kenai Guides distributed 500 Kenai Tidebooks distributed 9 Kenai Chamber of Commerce and Visitor Center Kenai Visitor and Cultural Center Report 2nd Quarter April – June 2018 May 22, 2018 Happy Birthday, Kenai Eaglets! 1st one hatched around 3a AKST 2nd one hatched around 2p AKST Kenai Eaglets 5wks old (June 26, 2018) 10 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. 11 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. 12 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. 13 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) 14 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 15 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 16 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 17 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, 18 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 19 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 20 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 21 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 22 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 23 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. 24 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. 25 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. 26 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 27 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. 28 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, 29 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 30 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. 31 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 32 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. 33 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 34 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 – 42 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A RESTAURANT CONCESSION AGREEMENT FOR THE KENAI MUNICIPAL AIRPORT. WHEREAS, on June 27, 2018, the City of Kenai requested proposals to lease the airport terminal restaurant for a period of one year and eleven (11) months beginning August 2, 2018 through June 30, 2020; the agreement may be extended for three successive one-year terms by mutual written consent of the Owner and Concessionaire; and, WHEREAS, three request for proposal packets were picked up, with one responsive proposal received on July 17; and WHEREAS, bid amount received was as follows: Proposer Proposed Monthly Percentage of Gross Receipts Situla, LLC August & September 2018 – 5% After September 2018 – 10% ;and WHEREAS, City Administration reviewed the proposal and found the proposal to be responsible and meet all the requirements of the request for proposal. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA Section 1. That the City manager is authorized to enter into a restaurant concession agreement with the Situla, LLC, for the Kenai Municipal Airport for the period August 2, 2018 through June 30, 2020. Section 2. That the Kenai City Council approves the attached Restaurant Concession Agreement. Section 3. That the Kenai City Manager is authorized to enter into such an agreement with Situla, LLC. Section 4. That this resolution takes effect immediately upon adoption 35 ADOPTED 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 36 Restaurant Concession Agreement 7/27/2018 City _____ Page 1 of 29 Concessionaire_____ Concessionaire _____ CITY OF KENAI KENAI MUNICIPAL AIRPORT RESTAURANT CONCESSION AGREEMENT xxxxxxxxxxxxxx, individually (Concessionaire), (NAME OF BUSINESS), (ADDRESS) (CITY), Alaska 99611, and the CITY OF KENAI, a municipal corporation, organized and existing under the laws of the State of Alaska (City), 210 Fidalgo Avenue, Suite 200, Kenai, Alaska 99611, hereby enter into this contract for restaurant concession services at the Kenai Airport, the term of which is August 2, 2018 through June 30, 2020. INTRODUCTION A. The City owns and operates the Kenai Municipal Airport, located in Kenai, Alaska. B. In connection with the Airport, the City owns the Terminal. C. The City has determined that offering a Restaurant Concession Agreement by the competitive bid process is in the best interest of the City and the traveling public. D. The Concessionaire desires to operate the Restaurant Concession in the Terminal. E. The City solicited competitive bids for the Restaurant Concession, and the Concessionaire was the successful bidder. ARTICLE I: DEFINITIONS The following definitions apply for this Agreement: A. Agreement: This Agreement, together with: 1. Certified Activity Report form (CAR) (Exhibit A) 2. Drawing of Airport Restaurant Space 8/8A (Exhibit B); 37 Restaurant Concession Agreement 7/27/2018 City _____ Page 2 of 29 Concessionaire_____ Concessionaire _____ 3. List of city-owned equipment in the restaurant (Exhibit C); 4. Restaurant Safety & Maintenance List (Exhibit D); 5. Successful Proposal (Exhibit E): and 6. All future amendments or supplements executed by the parties to this Agreement. B. Airport: The real property and facilities of the Kenai Municipal Airport, 305 N. Willow, Kenai, Alaska, as they exist on the execution date of this Agreement, together with any future additions or expansions. C. Airport Manager: The City's designated manager at Kenai Municipal Airport acting directly or through a duly authorized representative. D. Certified Activity Report: A report that lists the Gross Sales generated by the Restaurant Concession during the calendar month for which payment is made. The format of the Certified Activity Report is specified in Exhibit A. E. Concessionaire: The successful bidder for this Restaurant Concession Agreement, who enters into this Agreement, or any other subsequent Concessionaire as provided under Article XXI (Assignment or Subletting) of this Agreement. F. Disadvantaged Business Enterprise (DBE): A business certified by the City of Kenai or the State of Alaska, as a disadvantaged business enterprise as defined in 49 CFR, Part 23. G. Entertainment Device: A mechanical or electronic device, video game, or similar item used for personal entertainment in a public place. H. Manager: That person described in Article VII and having authority to act for the Concessionaire. I. Premises: The floor space available to the Concessionaire for the uses authorized under this Agreement is as shown below (also see Exhibit B): The premises known as the restaurant area of the Kenai Municipal Terminal within the Northwest Quarter (NW ¼) of the Southeast Quarter (SE ¼), Section 32, Township 6 North, Range 11 West, Seward Meridian, in the Kenai Recording District, Third Judicial District, State of Alaska. J. Term: The period of time specified under Article II of this Agreement. K. Terminal: The City of Kenai passenger terminal building at the Airport. 38 Restaurant Concession Agreement 7/27/2018 City _____ Page 3 of 29 Concessionaire_____ Concessionaire _____ L. Vending Machine: A coin-operated device for selling nonalcoholic beverages or food items. ARTICLE II: TERM A. Term: This Agreement is effective on the date it is signed on behalf of the City. The City grants the Concessionaire the rights listed in Article III beginning at 12:01 a.m., August 2, 2018, and ending at 12:00 midnight on June 30, 2020. with an opportunity to extend for three successive one-year terms by mutual written consent of Owner and Concessionaire. B. Holding Over: If the Concessionaire holds over without a written renewal of this Agreement after it expires, the holding over does not operate as a renewal or extension of the rights granted under this Agreement, but only creates a month-to- month tenancy, regardless of any payment the City accepts. The Concessionaire's obligations to perform under this Agreement will continue until the City terminates the month-to-month tenancy. The City may terminate the holdover tenancy at any time by giving the Concessionaire at least 10 days' written notice. The monthly payment for any holdover period is the monthly rental fee. ARTICLE III: RIGHTS GRANTED, RESERVATIONS, AND PROHIBITIONS Subject to the rights and obligations under this Agreement, the City grants the Concessionaire the authority to exercise the following rights: A. Non-Exclusive Rights: The City grants the Concessionaire the following non- exclusive rights: 1. To prepare, serve, or sell food and beverage items, except vending machines. 2. To provide in-flight meal service for airline crews and passengers. 3. To provide delayed-flight meal service inside aircraft parked at the Terminal. 4. To prepare, serve, and sell food and nonalcoholic beverages to customers in the Airport Terminal or off the Airport. 5. To install and operate Entertainment Devices on the premises when approved in writing by the Airport Manager. 39 Restaurant Concession Agreement 7/27/2018 City _____ Page 4 of 29 Concessionaire_____ Concessionaire _____ B. General Rights: The City grants the Concessionaire the following general rights: 1. To ingress, egress, and occupy the premises by the Concessionaire, its officers, contractors, suppliers, service personnel, guests, patrons, and invitees, subject to the security rules of the Airport. 2. To construct and install fixtures, equipment, and other improvements necessary to operate the concession, subject to the prior written approval of the City (Article X of this Agreement). C. Reservations: The City reserves the following rights: 1. To authorize airlines to provide Restaurant service in airline VIP rooms. 2. To grant others any right or privilege not specifically and exclusively granted to the Concessionaire. 3. To allow airlines to provide complementary coffee and snacks during hours when food and beverage service provided under this agreement is not available. 4. The rights and privileges granted the Concessionaire under this Agreement is the only rights and privileges granted the Concessionaire. The Concessionaire has no easements, rights, or privileges, expressed or implied, other than those specifically granted under this Agreement. D. Prohibitions: This Agreement prohibits the Concessionaire from the following: 1. To provide any service or product not described in this Agreement without the prior written consent of the City. If a question or dispute arises concerning the sale of any service or product, the Concessionaire may submit a written request to the City asking for a review and decision concerning the dispute. The City will deliver a written decision to the Concessionaire, and the decision of the City is final. 2. To sell any item or service for which the City has granted exclusive concession rights to others. 3. To divert any business or cause or allow by its own actions any business to be diverted from the Airport. E. Hours/Days of Operation: The Concessionaire will be open for a minimum of 60 hours per week, with the hours of operations outlined in their proposal and 40 Restaurant Concession Agreement 7/27/2018 City _____ Page 5 of 29 Concessionaire_____ Concessionaire _____ attached as exhibit E. The airport manager must approve changes to hours of operation, in writing. If the concessionaire requests to operate for fewer hours then the City shall have the option of advertising for proposals and negotiating a new contract and terminating the existing contract if it is in the best interest of the City. F. Emergency Closures: The City recognizes that emergencies may occur that are beyond the control of the concessionaire. If an emergency arises that requires an unexpected closure then the Concessionaire will notify the Airport Manager of the circumstances in writing. If excessive closures occur, the City shall have the option of terminating this contract. G. Closure for Repairs: The parties recognize that major repairs of the building may occur during the life of this contract. The City reserves the right to cause interruptions to the utilities and other amenities as necessary to conduct normal repairs. If such interruptions are minimal and notification of such work is provided the concessionaire then the City is not held liable for lost revenue. If the interruption lasts more that one working day then appropriate adjustments will be made to the rent. ARTICLE IV: PREMISES The City will deliver the premises to the Concessionaire at 12:01 a.m. on August 2, 2018. The Concessionaire accepts the premises in its then-present condition and as is. The Concessionaire acknowledges that the City's obligation is limited to making the premises available to the Concessionaire for its use. ARTICLE V: FEES AND PAYMENTS A. Monthly Percentage of Gross Receipts: For the rights and privileges granted under this Agreement, the Concessionaire will pay the City a monthly percentage of gross receipts %, plus applicable sales tax. The percent required to be paid shall be paid for each calendar month during the term of this Agreement and shall be due and payable on the tenth (10th) day of the calendar month succeeding the month for which the payment is applicable. Concessionaire shall provide a Certified Activity Report (CAR) for each month of the preceding month for the City’s audit purposes to determine compliance with this requirement. The Concessionaire shall submit each CAR in the format shown in Exhibit A. The CAR shall be submitted to the Airport Manager’s office at the Airport. 41 Restaurant Concession Agreement 7/27/2018 City _____ Page 6 of 29 Concessionaire_____ Concessionaire _____ Percentage payment payable to the City by the Concessionaire under this Agreement shall be owned by the City at the time of each customer transaction and will be held in trust by the Concessionaire while the funds are in Concessionaire’s custody and control. The Concessionaire is responsible for these fees until delivered to the City. If any fees payable to the City are lost, stolen, or otherwise unlawfully removed from the custody and control of the Concessionaire, the Concessionaire remains responsible to the City for the revenue. 1. Gross sales numbers are confidential to the extent allowed by law. 2. Payments must be submitted to City of Kenai, Finance Department, 210 Fidalgo, Kenai, AK 99611. 3. The Concessionaire will make its payments free from any claim, demand, setoff, or counterclaim of any kind against the City, and will make its payments in cash or by check, bank draft, or money order payable to the City of Kenai. B. Utilities; City shall pay for garbage removal and electrical utilities including heat and normal air conditioning during the operating hours of the terminal. All other utilities and services including gas, water and sewer, telephone communication, internet, cable and other utilities and services incident to the Concessionaire’s business, shall be operated and maintained at the Concessionaire’s sole expense. C. Catering: Concessionaire may provide catering services to private aircraft as well as off-premises as part of the restaurant function; however, all catering sales are also subject to the same fees as described above. Catering service is not exclusive to the restaurant concession. D. Waiver of Monthly Rental: 1. The City will waive the monthly percentage payment if any of the following events occur: a. Any event, not the fault of the Concessionaire that so damages the Terminal and prevents the normal operation of the Concessionaire's business for more than 30 consecutive days. If the normal operation of the Concessionaire's business is prevented for more than 30 consecutive days, this waiver is effective from the first day following the period of 30 consecutive days and will continue until normal operations can resume. 42 Restaurant Concession Agreement 7/27/2018 City _____ Page 7 of 29 Concessionaire_____ Concessionaire _____ b. Complete closure of the Airport to the commercial air transport of passengers for more than 30 consecutive days. If complete closure of the Airport exceeds 30 consecutive days, this waiver will be effective from the first day following the period of 30 consecutive days and will continue until the Airport is reopened to the commercial air transport of passengers. 2. For the purposes of this Section, if the waiver period does not fall on the first or last day of the month, the minimum rent may be prorated on a daily basis to determine the Concessionaire's correct monthly fee. 3. At its discretion, the City will either credit any overpayment resulting from a waiver toward future payments due the City or refund the overpayment to the Concessionaire. E. Fees Vest in the City: Whether for cash or credit, the fees due the City for the services the Concessionaire is authorized to provide under this Agreement immediately vest in and become the property of the City. The Concessionaire is responsible for those fees until delivered to the City. F. Unpaid Fees: Any rent, charge, fee, or other consideration due but unpaid at the expiration or voluntary or involuntary termination or cancellation of this Agreement is a charge against the Concessionaire and its property, real or personal, and the City has any lien rights allowed by law. Either the City or its authorized agent may provide enforcement. G. Security Deposit: The successful proposer will be required to provide a security deposit or bond for the same in the amount of $3,000.00. This deposit or bond will be used by the City to remedy any late payments, property damage, or other costs incurred due to the failure of the proposer to comply with the contract terms and otherwise will be held until and if the premises is vacated by the successful proposer in full compliance with all agreement terms. The security deposit or bond must be provided to the City prior to the execution of the Restaurant Concession Agreement. H. Closure Fees: Concessionaire shall be open a minimum of 60 hours a week.The City may require the Concessionaire to pay a penalty of $100 per week for any week the Concessionaire is not open a minimum 60-hours unless the City authorizes in writing a reduction of hours for that week. This penalty will be in addition to normal fees due the City under this concession agreement 43 Restaurant Concession Agreement 7/27/2018 City _____ Page 8 of 29 Concessionaire_____ Concessionaire _____ ARTICLE VI: DISADVANTAGED BUSINESS ENTERPRISE PARTICIPATION DISADVANTAGED BUSINESS ENTERPRISES (DBE’S): The City of Kenai’s policy is to ensure that DBE’s have the maximum opportunity to participate in the performance of Airport concession contracts. (a) Concessionaire’s obligation: The Concessionaire will ensure that DBE’s have the maximum opportunity to participate in the performance of this agreement. This agreement is subject to the requirements of the United State Department of Transportation’s regulations, 49 CFR, Part 23, Subpart F. The Concessionaire Agrees that it will not discriminate against any business owner because of the owner’s race, color, national origin, or sex in connection with the award or performance of any concession agreement covered by 49 CFR, Part 23, Subpart F. The Concessionaire agrees to include the above statements in any subsequent concession arrangements that it enters and cause those businesses to similarly include the statements in further agreements. The Concessionaire will comply with all applicable laws and regulations regarding the fair and equitable treatment of DBEs now in effect or which may subsequently take effect during this Agreement. The Concessionaire will include a provision to this effect in any subcontract or other arrangement for DBE participation entered into under this Agreement. ARTICLE VII: PERSONNEL The Concessionaire will maintain an adequate staff with the experience necessary to meet the provisions of this Agreement. A. Manager: The Concessionaire will select and properly train a Manager responsible for the general day-to-day operations under this Agreement. The Manager must reside in the Kenai area and be ordinarily available during regular business hours. At all times during the Manager's absence, a responsible subordinate must be in charge and available. B. Other Personnel: The Concessionaire's personnel will meet the standards set forth in this Agreement and will conduct the Concessionaire's operations in accordance with the standards set forth in Article IX of this Agreement. 44 Restaurant Concession Agreement 7/27/2018 City _____ Page 9 of 29 Concessionaire_____ Concessionaire _____ ARTICLE VIII: OWNERSHIP OF EQUIPMENT AND IMPROVEMENTS A. City-owned Equipment: The City holds title to certain restaurant equipment that is located on the premises and is listed on Exhibit C. B. Concessionaire-owned Equipment 1. Title to all Concessionaire-owned personal property, trade fixtures, equipment, furniture, vending machines, and entertainment devices remains vested in the Concessionaire. 2. Entertainment Devices: The City will approve the locations, maximum number, and kinds of entertainment devices it will allow on the premises. The Concessionaire will relocate or remove any Entertainment Device at its sole expense when requested to do so by the City. C. Ownership of Permanent Improvements On expiration, cancellation, or termination of this Agreement, title to any structural or other improvements that the Concessionaire cannot, in the City's determination, remove without damage to the premises vests in the City. These improvements include interior walls, ceilings, carpeting, finished flooring, electrical wiring, air- conditioning ducts and equipment, and all interior decorations and finishing erected or installed by the Concessionaire. ARTICLE IX: SERVICE AND OPERATION The Concessionaire's operation under this Agreement is a service to terminal employees, the traveling public and other users of the Airport. The Concessionaire will operate its Concession in accordance with the highest standards and practices of the food and beverage industry. The Concessionaire will take all reasonable measures to maintain, develop, and increase its business within the Terminal. Accordingly, the Concessionaire will provide service in a first-class, businesslike, efficient, courteous, accommodating manner and will comply with the following: A. Service Quality: The Concessionaire will provide terminal employees, the traveling public and other users of the Airport with high-quality service and products. B. Orderly Operation: The Concessionaire will conduct all business in a quiet, orderly, and courteous manner, so as not to annoy, disturb, or offend customers, patrons, or tenants of the Airport. 45 Restaurant Concession Agreement 7/27/2018 City _____ Page 10 of 29 Concessionaire_____ Concessionaire _____ C. Health Standards and Facilities' Cleanliness 1. The Concessionaire will comply with all established health standards as monitored by the local governmental health department. 2. Within five (5) days of any health standards inspection, the Concessionaire will provide the City with a copy of the inspection report. 3. The Concessionaire will have an ongoing cleaning program for both the public and non-public areas within the premises. The program will include cleaning of carpets, floors, equipment, trade fixtures, furniture, entertainment devices, vents, and service areas. D. Standard of Conduct for Employees: The Concessionaire will maintain a standard of conduct for its employees that include the following: 1. Employees must be well groomed and maintain a pleasant attitude toward the public. 2. Employees may not display their grievances in public, use improper language or conduct, or drink any alcoholic beverage while on duty or in uniform. E. Janitorial and Cleaning Services: The Concessionaire will provide, at its own expense, the day-to-day janitorial and cleaning services and supplies necessary to maintain the premises except for those services provided by the City under Article XI of this Agreement. The Concessionaire will maintain the premises in a clean, neat, and sanitary condition. F. Trash, Garbage, and Refuse: The Concessionaire will provide for the adequate sanitary handling and removal of all trash, garbage, and other refuse caused as a result of the Concessionaire's operations. The Concessionaire will coordinate a schedule and procedure of trash removal with the City. The Concessionaire will provide and use suitably covered or sealed receptacles for all garbage, trash, and other refuse from its operations inside the Terminal. G. Security: The Concessionaire will adhere to all applicable responsibilities of the federal airport security program set out in Federal Aviation Regulations Part 107 and the Airport Master Security Program. The Concessionaire will procure any required identification badges necessary to access the premises or the Concessionaire's operations authorized under this Agreement. Any fine that results from a violation of the federal airport security program by the Concessionaire, its agents, officers, suppliers, sub lessees, vendors, guests, customers, or employees, whether on or off the premises, that is found by the 46 Restaurant Concession Agreement 7/27/2018 City _____ Page 11 of 29 Concessionaire_____ Concessionaire _____ Federal Aviation Administration or the City to be the fault of the Concessionaire will be the sole responsibility of the Concessionaire. If the City pays any such fine to meet the Federal Aviation Administration deadlines, the Concessionaire will reimburse the City within 30 days after written notice by the City. The Concessionaire will coordinate any Airport security matter with the City. H. Smoking: Neither the Concessionaire, employees, or customers may smoke in the Terminal except in designated smoking areas. I. Complaints, Questions, or Concerns: The City will forward to the Concessionaire for response any complaints, questions, or concerns regarding the Concessionaire's operations. The City reserves the right to address and resolve any problems arising out of the Concessionaire's operations. J. Signs: The Concessionaire may, after consent by the Airport Manager, install signs at its premises identifying its business. The Concessionaire will request the City’s advance written approval through the City’s building permit process (Article X, Section B of this Agreement) before installation of any signage. The City will approve or disapprove the names selected for the restaurant. ARTICLE X: MAINTENANCE AND CONSTRUCTION ON THE PREMISES A. Maintenance 1. The Concessionaire will, at its sole expense: a. Be responsible for all routine upkeep, maintenance and cleaning of all City owned equipment. Be responsible for all repairs/replacement costs associated with Concessionaire owned equipment. A Restaurant Safety & Maintenance List, Exhibit D, will be strictly monitored and enforced by the City. b. Do or cause to be done without delay all those things which in the determination of the City are necessary or desirable in the interest of safety or to maintain the premises, furniture, trade fixtures, equipment, and Entertainment Devises in good repair and appearance. c. Pay for damage to the facilities of any other Airport tenant or the City caused by the Concessionaire's lack of adequate maintenance of any equipment, fixture, or system installed by the Concessionaire. 47 Restaurant Concession Agreement 7/27/2018 City _____ Page 12 of 29 Concessionaire_____ Concessionaire _____ 2. The City may require the Concessionaire to perform necessary repairs to the premises, furniture, trade fixtures, equipment, and vending machines, and entertainment devises at the Concessionaire's own expense. 3. If, after 30 days following notice, or in shorter periods if an emergency exists, the Concessionaire fails or refuses to perform any action required by this Agreement, the City has the right, but not the obligation, to perform any or all actions required by this Agreement at the sole expense of the Concessionaire. The City will not take action if the Concessionaire begins and continues expeditious action to perform any action required by this Agreement that cannot be reasonably completed within 30 days. If the City performs any action required of the Concessionaire, the Concessionaire will reimburse the City within 30 days from the date of billing. 4. Concessionaire will be responsible to have the hood system, including all fire protection, professionally cleaned and inspected at the Concessionaire’s expense, once a year. B. Terminal Building Permit Process: 1. The Concessionaire may not make repairs or alter the premises without first obtaining the City's prior written consent through the building permit process. The Concessionaire will complete a Terminal Building Permit Application form obtained from the City. Repairing and altering the premises include the following: a. Installation, maintenance, repair, or removal of trade fixtures, equipment, entertainment devices, locks, antennae, counters, shelving, signs, posters, telephone lines, data circuits, floor coverings, wall coverings, painting, electrical, plumbing, and refrigeration work; and b. Any other repair or alteration that the City deems necessary to be approved through the building permit process. 2. The City may withhold its approval if the Concessionaire is in violation of any requirement under this Agreement. 3. The Concessionaire will make all repairs and alterations to the premises at its own expense. The City has the right to approve the final repair or alteration. 48 Restaurant Concession Agreement 7/27/2018 City _____ Page 13 of 29 Concessionaire_____ Concessionaire _____ C. General Construction Requirements 1. Any alteration, repair, construction, or improvement performed by the Concessionaire will be neat, presentable, and compatible with the architecture of the Terminal, as determined by the City, and performed at no cost to the City. 2. The Concessionaire will deliver detailed as built drawings to the City within 30 days after completion of any permanent improvement. The as built drawings must show the location and dimensions of any permanent improvement made by the Concessionaire. ARTICLE XI: CITY SERVICES A. City Services 1. The City will perform the following services: a. Maintain the structure of the Terminal, the roof, and exterior walls. b. Agrees to pay for electricity consumed on the Premises. c. Wash the outside of all exterior Terminal windows as well as clean and maintain the public areas in the Terminal. d. Maintain the Terminal’s existing and future utility systems in good condition and repair. Utility systems include systems to supply heat, electricity, water, sewage disposal, fire alarm, fire protection, sprinkler, air conditioning, and telecommunications services. The City has the right to maintain lines, pipes, mains, wire, conduits, and equipment connected with or appurtenant to any system. However, the City may refuse to maintain any system installed by the Concessionaire and may charge the Concessionaire for any repair necessary due to negligence by the Concessionaire during any such installation or as the result of any such installation. 2. The City will invoice the Concessionaire and the Concessionaire will pay for any extraordinary lighting, power, utility bills, or cleaning services used by the Concessionaire that, in the determination of the City, are beyond the scope of normal services provided by the City. B. Hold Harmless: The Concessionaire will waive any claim and hold the City harmless for damages from any failure or interruption of utility or other service 49 Restaurant Concession Agreement 7/27/2018 City _____ Page 14 of 29 Concessionaire_____ Concessionaire _____ furnished by the City, including failure or interruption of electrical energy, space heating or cooling, or any public or passenger convenience. In addition, the City may make any repair or alteration necessary for the proper functioning of the Terminal without liability to the Concessionaire for any damages. ARTICLE XII: CITY’S RIGHTS OF INSPECTION AND ACCESS A. Inspection: The City, by its officers, employees, agents, representatives, and contractors, may at any reasonable time enter the premises to inspect or observe the Concessionaire’s performance of its obligations under this Agreement, or to take any action that the City is obligated to take under this Agreement or otherwise. The Concessionaire will neither claim nor does the City allow an abatement of fees if the City exercises this right. Except in an emergency, the City will coordinate all inspections with the Concessionaire to minimize interference with the Concessionaire’s activity on the premises. B. Access: 1. The Concessionaire will assure the City of emergency access to the premises by providing emergency telephone numbers by which the Concessionaire or the Concessionaire's Manager may be reached on a 24-hour basis. 2. Without limiting the generality of the foregoing, the City, by its officers, employees, agents, representatives, and contractors, has the right to maintain the existing and future utility systems or portions of them on the premises as listed in Article XIII of this Agreement. The City has the right to enter the premises at any reasonable time to make repairs, alterations, or replacements that are, in the determination of the City, necessary or advisable, and, from time to time, to construct or install over, in, or through the premises new lines, pipes, mains, wires, conduits, and equipment. Any repair, alteration, replacement, or construction will not unreasonably interfere with the use of the premises by the Concessionaire, and nothing in this Article may be construed to relieve the Concessionaire of any obligation to maintain the premises and improvements. 3. At any time during ordinary business hours within the 12 months preceding expiration of this Agreement, the City has the right to enter the premises to measure, photograph, show, and view all parts of the premises. 50 Restaurant Concession Agreement 7/27/2018 City _____ Page 15 of 29 Concessionaire_____ Concessionaire _____ ARTICLE XIII: ADDITION OR REDUCTION IN SPACE If the Concessionaire requests additional terminal space and the City determines that suitable space is available and needed, the City may lease the additional space subject to the requirements of law concerning leasing of Airport Terminal space. ARTICLE XIV: CITY-DIRECTED RELOCATION The Concessionaire acknowledges that the City may require the relocation of the premises, in whole or in part, if the City determines that relocation is necessary to meet the needs of the traveling public or the City. If the City requires relocation of the premises, the following applies: A. City's Responsibilities: The City, at its sole expense, will provide the new space with interior permanent improvements including floors, ceiling, carpeting, lighting, electricity, wall finishes, heating and cooling, ventilation, and permanent fixtures similar to those in the premises. B. Concessionaire's Responsibilities 1. The Concessionaire, at its sole expense, will relocate all nonpermanent fixtures, furnishings, and equipment from the premises; provide any additional fixtures, furnishings, and equipment that the Concessionaire finds necessary or desirable to fully use the new lease space; and vacate and surrender the former lease space to the City when the new space is completed. Concessionaire will continue to be liable for rental fees and payments as provided in Article V. 2. The City and the Concessionaire will perform their respective obligations in an expeditious manner, excluding any delay that is beyond the control of either party. The new lease space will have a floor area similar in size to the area being vacated by the Concessionaire. The City will make every reasonable effort to ensure that the new lease space will provide access and exposure to passenger traffic similar to that of the former lease space. However, the City will not be responsible for any financial losses that the Concessionaire may incur due to relocation under this Article unless the losses are the result of a breach by the City of its obligations under this Article. 3. The Concessionaire is responsible to maintain an account and all costs for the natural gas utility for the restaurant/café. 51 Restaurant Concession Agreement 7/27/2018 City _____ Page 16 of 29 Concessionaire_____ Concessionaire _____ 4. The concessionaire is responsible for water & sewer charges. ARTICLE XV: LAWS AND TAXES This Agreement is subject to all City of Kenai laws and regulations, including those relating to leasing facilities and granting privileges at city airports. A. Laws 1. At no expense to the City, the Concessionaire will comply with all federal, City, and local laws, ordinances, regulations, and Airport rules that are either now or in the future in force that may apply to the business authorized under this Agreement, or to the use, care, operation, maintenance, and protection of the Airport, including matters of health, safety, sanitation, and pollution. The City is neither liable to the Concessionaire for any diminution or deprivation of the Concessionaire's rights due to the exercise of any authority, nor is the Concessionaire entitled to terminate the whole or any portion of this Agreement by reason of the City's exercise of any authority. 2. The Concessionaire will comply with all City and federal regulations governing hazardous substances, including hazardous wastes, and will comply with all instructions of the City with regard to environmental concerns and requirements, regardless of whether based on specific law, regulation, or order of any governmental authority. In addition, the Concessionaire assumes responsibility for any spill of oil, oil-based substance, or hazardous substance attributable to its operation under this Agreement. With respect to any such occurrence, the Concessionaire will indemnify, defend, save, and hold the City and its employees harmless from any loss, claim, suit, or judgment. 3. The Concessionaire will properly handle its spills of hazardous substances. The Concessionaire will immediately notify the City of any spill that occurs on the Airport, as well as the action taken, while performing under this Agreement. The Concessionaire will forward copies of any written spill reports and reports regarding action taken to the City as soon as they are available. B. Taxes: The Concessionaire will obtain all necessary licenses, permits, pay all taxes and special assessments lawfully imposed on its business, and pay any other fee or charge assessed under any applicable public statute, regulation, or ordinance. 52 Restaurant Concession Agreement 7/27/2018 City _____ Page 17 of 29 Concessionaire_____ Concessionaire _____ C. Disputes: In any dispute between the parties, the laws of the State of Alaska will govern and any lawsuit must be brought before the courts of the State of Alaska. D. Claims: Concessionaire will notify the City of any claim, demand, or lawsuit arising out of the rights granted to the Concessionaire under this Agreement. At the City's request, the Concessionaire will cooperate and assist in the investigation and litigation of any claim, demand, or lawsuit that affects the rights granted the Concessionaire under this Agreement. ARTICLE XVI: DEFENSE OR ENFORCEMENT OF AGREEMENT The Concessionaire will pay all reasonable actual expenses, costs, and attorney fees the City may incur, with or without formal action, to enforce, defend, or protect this Agreement or the City's rights under this Agreement, including any expense incurred with respect to environmental compliance, bankruptcy or any proceeding that involves the Concessionaire, the Agreement, the premises, improvements, or property on the premises. The Concessionaire will make payment within 30 days of the date of each notice from the City of any amounts payable under this Article. Any amount not timely paid under this Article will constitute a default of the Agreement and will accrue interest from the date of the notice as provided in Article V of this Agreement. ARTI CLE XVII: INDEMNIFICATION AND INSURANCE A. Indemnification 1. The Concessionaire will indemnify, defend, and hold the City, its agents, officers, and employees harmless from any liability, action, claim, suit, or loss for property damage or personal injury of whatever kind resulting from or arising out of any act or omission by the Concessionaire or the Concessionaire's agents, employees, or clients or arising from or connected with the Concessionaire's rights and privileges granted under this Agreement. 2. In any litigation brought by a third party against the City or the Concessionaire that specifically challenges the rights granted in Article III, the Concessionaire would assume the responsibility to defend the City and the Concessionaire unless the City elects to defend itself. The City will assist in the defense of the rights granted. The City is not required to indemnify the Concessionaire for any attorney fees the Concessionaire incurs to defend the City. 53 Restaurant Concession Agreement 7/27/2018 City _____ Page 18 of 29 Concessionaire_____ Concessionaire _____ B. Insurance 1. The Concessionaire will, throughout the term of this Agreement and at its own expense, secure and keep in force adequate insurance, as stated below, to protect the City and the Concessionaire. Where specific limits are stated they are the minimum acceptable limits. If the Concessionaire's insurance policy contains higher limits, the City is entitled to coverage to the extent of the higher limits. a. Comprehensive general liability insurance with coverage limits not less than ONE MILLION DOLLARS ($1,000,000) combined single limit per occurrence where generally applicable, including in-Terminal operations, independent contractors, products, and completed operations, broad-form property damage, blanket contractual, and personal injury endorsements. b. Worker's Compensation insurance with coverage for all employees engaged in work under this Agreement as required by AS 23.30.045. The Concessionaire is responsible for Worker's Compensation insurance for any subcontractor who directly or indirectly provides services under this Agreement. c. Comprehensive automobile liability insurance covering all owned, hired, and non-owned vehicles with coverage limits not less than $250,000 combined single limit per occurrence. 2. All insurance required by this Article must meet the following requirements: a. For comprehensive general liability insurance, name the City additionally insured. b. For worker's compensation insurance, general liability and automobile liability insurance include a waiver of subrogation so that the insurer waives all rights of subrogation against the City for payments made under the policy. c. Provide the City notification at least 20 days before any termination, cancellation, or material change in insurance coverage. d. All policies will be by a company/corporation currently rated “A-“or better by A.M. Best. 54 Restaurant Concession Agreement 7/27/2018 City _____ Page 19 of 29 Concessionaire_____ Concessionaire _____ C. Evidence of Insurance Coverage 1. The Concessionaire will 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. 2. Evidence of insurance coverage must be submitted to the City by August 2, 2018. The effective date of the insurance will be no later than August 2, 2018. D. Obligation: The indemnification and insurance-coverage requirements stated in Sections A and B above do not relieve the Concessionaire of any other obligation under this Agreement. E. Increase or Revision: The City may increase the amount or revise the type of required insurance on written demand without requiring amendment to this Agreement. The City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, the Concessionaire will submit to the City evidence of insurance coverage that meets the requirements of the City. ARTICLE XVIII: CANCELLATION BY CITY A. Breach of Agreement 1. The City may cancel this Agreement and recover possession of the premises by giving the Concessionaire 30 days' advance written notice from the postmark date of the written notice if any of the following events occur and the breach is not cured within the above-specified 30 days: a. The Concessionaire fails to pay when due any rent, fee, penalty, or other charge specified under this Agreement. b. A check for any payment to the City is returned for insufficient funds. c. The Concessionaire uses the premises for purposes not authorized under this Agreement. d. A petition in bankruptcy is filed by or against the Concessionaire. e. A court enters a judgment of insolvency against the Concessionaire. 55 Restaurant Concession Agreement 7/27/2018 City _____ Page 20 of 29 Concessionaire_____ Concessionaire _____ f. A trustee or receiver is appointed for the Concessionaire's assets in a proceeding brought by or against the Concessionaire. g. A lien is filed against the premises because of any act or omission of the Concessionaire and the lien is not removed, enjoined, or a bond of satisfaction of the lien is not posted within 60 days. h. The Concessionaire fails to operate the business authorized under this Agreement for a period of more than seven consecutive calendar days without the City's prior written approval. i. The cessation or deterioration of any service for any period, which, in the determination of the City, materially and adversely affects the service the Concessionaire, is required to perform under this Agreement. j. The Concessionaire fails to perform any provision or covenant under this Agreement. 2. In the case of a breach, which is not reasonably curable within 30 days, a cancellation notice under this Article may be stayed by the City if the Concessionaire begins and continues expeditious action to cure the breach within the 30-day notice period. The determination of "expeditious action" and "not reasonably curable" is at the City's sole discretion. B. City's Right of Reentry: As an additional remedy, on giving written notice of cancellation or termination, the City may reenter any part of the premises on the effective date of cancellation or termination without further notice of any kind, remove any persons or property, and regain and resume possession with or without the institution of summary or legal proceedings or otherwise. Any reentry, however, will not in any manner affect, alter, or diminish any obligation of the Concessionaire under this Agreement. C. Additional Rights of the City 1. On termination or cancellation of this Agreement or on reentry, the City may regain or resume possession of the premises, may occupy the premises, and may permit any person, firm, or corporation to enter on and use the premises. Others may occupy any part of the premises or the entire premises or a part of the premises together with other space for the time remaining under this Agreement, and on terms and conditions the same as or different than those set forth under this Agreement. 56 Restaurant Concession Agreement 7/27/2018 City _____ Page 21 of 29 Concessionaire_____ Concessionaire _____ 2. The City also has the right to repair or to make any structural or other change in the premises that is necessary, in the City's sole judgment, to maintain the suitability of the premises for the uses and purposes similar to those granted under this Agreement without affecting, altering, or diminishing the obligations of the Concessionaire under this Agreement. The City will charge, and the Concessionaire will pay to the City within 30 days of billing, the cost of these repairs. D. Survival of Concessionaire's Obligations: 1. If the City cancels or terminates this Agreement, all of the Concessionaire's obligations under this Agreement will survive in full force for the entire term of this Agreement. Subject to the City's obligation to mitigate damages, the fees and charges become due and payable to the City to the same extent, at the same time, and in the same manner as if no termination or cancellation had occurred. The City may maintain separate actions to recover any monies then due, or at its option and at any time, may sue to recover the full deficiency. 2. The amount of damages for the time subsequent to termination or cancellation will be the sum of the following: a. Title to all improvements as provided in Article IX, Section C of this Agreement. b. The total monthly rental obligation that would have been paid by the Concessionaire during the balance of the Term of this Agreement if no termination or cancellation had occurred. However, the amount will be offset by any fees or charges received by the City from a succeeding concessionaire. E. Waiver of Redemption and Damages 1. The Concessionaire waives any right of redemption granted by or under any present or future law or statute if the Concessionaire is dispossessed for any cause, or if the City obtains or retains possession of the premises in any lawful manner. 2. The Concessionaire acknowledges that if it is necessary for the City to gain possession of the premises, the total amount of damages to which the Concessionaire is entitled is the sum of ONE DOLLAR ($1.00). The Concessionaire also acknowledges that this provision may be filed in any action as its stipulation fixing the amount of damages to which it is entitled. 57 Restaurant Concession Agreement 7/27/2018 City _____ Page 22 of 29 Concessionaire_____ Concessionaire _____ F. Surrender of Possession 1. The Concessionaire will yield possession of the premises to the City on the date of the termination, cancellation, or normal expiration of this Agreement promptly, peaceably, quietly, and in as good order and condition as the same now or later improved by the Concessionaire or the City, reasonable use and wear-and-tear accepted. 2. The Concessionaire will be allowed a maximum of three calendar days after the effective date of the expiration of this Agreement to remove all of its personal property, equipment, furniture, trade fixtures, and Entertainment Devices from the premises and from the Terminal subject to the provisions of Article VIII, Section C of this Agreement. The Concessionaire and the City agree, as part of the consideration for this Agreement, that all property remaining on the premises after these three calendar days will become the sole property of the City, with full title vested in the City, and the City may remove, modify, sell, or destroy the property as it sees fit. The Concessionaire will reimburse the City for any cost the City incurs in removing and disposing of the property. ARTICLE XIX: CANCELLATION BY CONCESSIONAIRE The Concessionaire may cancel this Agreement by mutual agreement of the City or giving the City advance written notice of ten (10) days if any of the following events occur: A. The permanent abandonment of the Airport by all passenger airlines or the removal of all passenger airline service from the Airport for a period of at least 90 consecutive days. B. The lawful assumption by the United States government, or its authorized agent, of the operation, control, or use of the Airport, or any substantial part of the Airport, that restricts the Concessionaire from operating its business under this Agreement for a period of at least 90 consecutive days. C. A court of competent jurisdiction issues an injunction that prevents or restrains the use of the Airport by all airlines provided the injunction remains in force for at least 90 consecutive days. 58 Restaurant Concession Agreement 7/27/2018 City _____ Page 23 of 29 Concessionaire_____ Concessionaire _____ ARTICLE XX: CANCELLATION BY CONCESSIONAIRE Subsequent Agreement Award: The Concessionaire acknowledges that on the expiration, cancellation, or termination of this Agreement, the City may award any subsequent concession agreement by any legal means then available to the City. ARTICLE XXI: ASSIGNMENT OR SUBLETTING A, City's Consent: The Concessionaire will not assign this Agreement or any interest, and will not sublet the premises or any part thereof, or any right or privilege appurtenant thereto, or suffer any other person, agents and employees of the Concessionaire excepted, to occupy or use the premises or any portion thereof without first obtaining the written consent from the City. A consent by the City to one assignment, subletting, occupancy, or use by another party will not be deemed to be a consent to any subsequent assignment, subletting, occupancy, or use by another person or entity. Any such assignment, subletting, occupancy, or use by another person or entity without such consent by the City will be void and will, at the option of the City, terminate this Agreement. This Agreement will not, nor will any interest, be assignable as to the interest of the Concessionaire by operation of law without the written consent of the City. The City agrees that it will not unreasonably withhold its consent required hereunder. B. Approval Process: The Concessionaire will submit to the City copies of any proposed assignment, encumbrance, or sublease bearing the original notarized signatures of all parties. All covenants and provisions in this Agreement extend to and bind the legal representatives, successors, and assigns of the parties. C. Merger, Consolidation, or Reorganization: 1. The City will not unreasonably withhold its consent to an assignment of this Agreement by the Concessionaire to a corporation that results from a merger, consolidation, or reorganization of the Concessionaire to a corporation that purchases all or substantially all of the assets of the Concessionaire or to any corporation that controls or is controlled by or is under common control with the Concessionaire. 2. For purposes of this Section, "control" of any corporation is deemed vested in the person or persons owning more than 50 percent of the voting power for electing the board of directors of the corporation. 59 Restaurant Concession Agreement 7/27/2018 City _____ Page 24 of 29 Concessionaire_____ Concessionaire _____ ARTICLE XXII: GENERAL COVENANTS A. Execution by City: This Agreement is not effective until signed by the City Manager. B. Approval by City: The City may not unreasonably withhold any approval required under this Agreement. C. Notices: Any notice required under this Agreement must be hand delivered, sent by certified mail or by electronic transmission in such a way as to confirm receipt to the appropriate party, or delivered by a reliable overnight delivery service to the appropriate party at the address set forth on page one of this Agreement or to any other address that the parties subsequently designate in writing. All notice periods begin on the date the notice is mailed. D. Modification: The Concessionaire acknowledges that the City may make any modification to this Agreement necessary to meet the revised requirements of federal or City grants, to operate the Airport, or to conform to the requirements of any revenue bond covenant to which the City of Kenai is a party and may do so without formal amendment. However, a modification may neither reduce the rights or privileges granted the Concessionaire under this Agreement nor cause the Concessionaire financial loss. E. Interrelationship of Provisions: All provisions of this Agreement and the associated proposal documents are essential parts of this Agreement and are intended to be cooperative, to provide for the use of the Airport, and to describe the respective rights and obligations of the parties to this Agreement. In the event of any irreconcilable conflict between the Agreement and the incorporated proposal of the Concessionaire, the provisions of Agreement will prevail. Each party will fully perform all provisions of this Agreement and the associated proposal documents. F. Validity of Parts: If any part of this Agreement is declared invalid by a court of competent jurisdiction, the remaining parts continue in full force. G. Radio Interference: At the City's request, the Concessionaire will discontinue the use of any machine or device that interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. H. Discrimination: The Concessionaire may 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 City law. The Concessionaire recognizes the right of the 60 Restaurant Concession Agreement 7/27/2018 City _____ Page 25 of 29 Concessionaire_____ Concessionaire _____ City to take any action necessary to enforce this covenant, including actions required by any federal or City law. I. Nondiscrimination: The Concessionaire will undertake a nondiscrimination program required by 14 CFR, Part 152, Subpart E, to insure that no person will be excluded from participating in any employment activity covered by 14 CFR, Part 152, Subpart E, on the grounds of race, creed, color, national origin, or sex. The Concessionaire may not exclude any person on these grounds from participating in or receiving the services or benefits of any program or activity covered by the Subpart. The Concessionaire further understands that it will require its covered sub organizations to provide assurances to the City that they will also undertake nondiscrimination programs and require assurances from their sub organizations, as required by 14 CFR, Part 152, Subpart E. J. National Emergency: If the federal government declares a national emergency, the Concessionaire may not hold the City liable for its inability to perform any part of this Agreement resulting from the national emergency. K. Vacation: At the expiration, cancellation, or termination of this Agreement, the Concessionaire must promptly, peaceably, and quietly vacate the premises, remove all personal property, and return possession to the City. The premises must be left in a clean, neat, and presentable condition, except for reasonable wear and tear, to the satisfaction of the City. L. No Waiver: The City's failure to insist in any one or more instances on the strict performance by the Concessionaire of any provision in this Agreement is not a waiver nor relinquishment for the future, but the provision will continue in full force. A City waiver of any provision in this Agreement cannot be enforced nor relied on unless the waiver is in writing and signed on behalf of the City. M. Disasters: If, in the determination of the City, a fire, flood, earthquake, or other disaster damages the Airport so extensively as to render it untenantable, either party may elect to terminate this Agreement on 30 days' written notice to the other party. If this Agreement is terminated because of a disaster, the City will prorate the fees payable under this Agreement up to the time the Airport becomes untenantable. N. Condemnation: If the Airport is condemned by any proper authority, this Agreement ends on the date the Concessionaire is required to leave the Airport. The City is entitled to all condemnation proceeds. However, the City will pay the Concessionaire the portion of proceeds attributable to the fair market value of any improvements placed on the Airport by the Concessionaire, according to the provisions of the then-current Alaska Administrative Code. 61 Restaurant Concession Agreement 7/27/2018 City _____ Page 26 of 29 Concessionaire_____ Concessionaire _____ O. Liens: The Concessionaire will keep the premises free of all liens, pay all costs for labor and materials arising out of any construction or improvements by the Concessionaire on the premises, and hold the City harmless from liability for any liens, including costs and attorney fees. By this provision, the City does not recognize that it is in any way liable for any liens on the premises. P. Quiet Enjoyment: The City covenants that it has full, unencumbered title to the Airport; that it has the right and lawful authority to execute this Agreement; and that the Concessionaire will have, hold, and enjoy peaceful and uninterrupted use of the premises. Q. Captions: The captions of the Articles and Sections of this Agreement are for convenience only and do not necessarily define, limit, describe, or construe the contents of any Article or Section. The use of the singular or plural form of words is intended to include the singular and plural, as appropriate. R. Proposal Documents: The Request for Proposals, the Notice Inviting Proposals, the General Instructions to Proposers, the Proposal Submittal Form, including the Specific Proposal Requirements, the Concessionaire's proposal, any addenda, and the required proposal deposit are parts of this Agreement, and each party will fully perform its obligations under all provisions of these documents. S. Entire Agreement: This Agreement, including any amendments and all items listed under Section R of this Article, constitutes the entire agreement between the parties. No modification or amendment of this Agreement is effective unless in writing and signed by both parties, except as Stated in section D. above. T. Force Majeure: Except for the payment of fees, neither the City nor the Concessionaire is in violation of this Agreement if it is prevented from performance by reason of strike, boycott, labor dispute, embargo, shortage of energy or materials, act of God, act of public enemy, act of superior governmental authority, weather condition, riot, rebellion, sabotage, or any other circumstance for which it is not responsible and which is beyond its control. U. Time: Time is of the essence in the performance of all rights and obligations of the parties to this Agreement. V. Employee Parking: Restaurant employees may use non-exclusive employee vehicle parking facilities at no charge. All employees must register their vehicle(s) at the Airport Manager’s office to receive a vehicle-parking permit to park while on the job. Concessionaire shall be held accountable for Concessionaire’s 62 Restaurant Concession Agreement 7/27/2018 City _____ Page 27 of 29 Concessionaire_____ Concessionaire _____ employees’ use of designated vehicle parking facilities and shall assure that employees comply with all applicable Airport Directives. W. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not limited to, recording costs shall be paid by Concessionaire. 63 Restaurant Concession Agreement 7/27/2018 City _____ Page 28 of 29 Concessionaire_____ Concessionaire _____ IN WITNESS WHEREOF, the parties have set their hands the day and year stated in the acknowledgment below. (If the Concessionaire is a partnership or joint venture, all general partners or members of the joint venture must sign; if the Concessionaire is a corporation, the signature of one authorized representative is sufficient unless the corporation requires two or more signatures.) LESSOR: CITY OF KENAI _________________________ Paul Ostrander, City Manager CONCESSIONAIRE: (NAME OF BUSINESS) __________________________________ XXXXXXXXX – Owner/Manager _________________________ XXXXXXXX – Owner/Manager STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ___ day of __________________, 2018, (NAME), Owner/Manager (CONCESSIONAIRE), being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said Corporation. Notary Public for Alaska My Commission Expires: 64 Restaurant Concession Agreement 7/27/2018 City _____ Page 29 of 29 Concessionaire_____ Concessionaire _____ STATE OF ALASKA ) )ss THIRD JUDICAL DISTRICT ) THIS IS TO CERTIFY that on this _____ day of __________________, 2018, personally appeared before me, PAUL OSTRANDER, known to me and to me known to be the City Manager of the City of Kenai, Alaska, and who acknowledged before me that the foregoing instrument was freely and voluntarily executed on behalf of the City of Kenai, for the uses and purposes set forth and with full authority of the City of Kenai to do so. ________________________________ Notary Public in and for Alaska My Commission expires: ________ Approved by Kenai City Council on ________________ Approved as to lease form by City Attorney __________ Approved by Finance Director __________ Approved by City Manager __________ 65 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant – Airport Manager DATE: July 19, 2018 SUBJECT: Resolution 2018-42 – Approval to award Restaurant Concession The Double O, restaurant concessionaire in the airport terminal building, stopped operating on July 2, 2018. The Airport advertised for proposals starting on June 27, 2018. Three proposal packets were picked up and one proposal was received on July 17, 2018. The proposal was reviewed and evaluated by the City Manager and the Airport Manager and found to meet all the requirements of the proposal. The Brothers’ Café is a new business owned and operated by Situla, LLC, located in Kenai. They not only plan to meet the needs of the airport customers but also the people of the Kenai Peninsula. It is my recommendation that the restaurant concession be awarded to the Situla, LLC. Thank you for your consideration. 66 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 43 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A SECOND AMENDMENT TO THE AIRLINE OPERATING AGREEMENT AND TERMINAL AREA LEASE AND AUTHORIZING THE CITY TO ENTER INTO SUCH AGREEMENT WITH CORVUS AIRLINES D/B/A RAVN ALASKA. WHEREAS, the City of Kenai is the owner and operator of the Kenai Municipal Airport; and, WHEREAS, the Administration working with an airline consultant has developed an amendment to the current airline operating agreement and terminal area lease; and, WHEREAS, the airline operating agreement and terminal area lease has modernized the terminal leasing procedures and policies; and, WHEREAS, the Administration consulted with the two regularly scheduled passenger airlines currently operating at the Kenai Municipal Airport regarding the agreement; and, WHEREAS, non-signatory airlines operating out of the passenger terminal building will pay an additional 30% than signatory airlines; and, WHEREAS, it is in the best interest of the City of Kenai to authorize the City Manager to enter into such agreement with Corvus Airlines, d/b/a RAVN Alaska, on behalf of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Kenai City Council approves the Second Amendment to the Airline Operating Agreement and Terminal Area Lease form as shown in Exhibit 1; and, Section 2. That the Kenai City Manager is authorized to enter into such an agreement with Corvus Airlines, d/b/a/ RAVN Alaska. Section 3. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1 day of August, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk 67 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant – Airport Manager DATE: July 19, 2018 SUBJECT: Resolution 2018-43- Approving Second Amendment to the Airline Operating Agreement and Terminal Area Lease for Corvus Airlines Attached to this memo is the Second Amendment to the Kenai Municipal Airport Airline Operating Agreement & Terminal Area Lease signed by Corvus Airlines, d/b/a RAVN Alaska, for City Council approval and Administration execution. The original agreement was from 2008 to 2013 and the First Amendment from June 2013 expired on June 30, 2018. During the past months, City and Airport Administration, along with Steve Horton of Leibowitz & Horton, evaluated financial costs associated with Airport operations. The Finance Director and Airport Manager presented the evaluation with a recommendation of a 5% increase to Council during the May 24, 2018 budget work session. Due to the future terminal rehabilitation project involving changes to the airline’s exclusive and joint use areas, this amendment is for only one year. After project completion, a new agreement will be negotiated based on the final allocation of the airline areas. I recommend approval of this Second amendment to the Airline Operating Agreement and Terminal Area Lease. Thank you for your consideration. Attachment 68 SECOND AMENDMENT TO THE KENAI MUNICIPAL AIRPORT AIRLINE OPERA TING AGREEMENT AND TERMINAL AREA LEASE THIS SECOND AMENDMENT to the Kenai Municipal Airport Airline Operating Agreement and Terminal Area Lease (the "Second Amendment") is made and entered into this 1st day of July, 2018, by and between • e City o ,Ke?ai, AlasJrn e "CA~~olitical subdivision of the State of Alaska, an · ~ l.)!· r db:l \/ (\ t\~ the "Airline"), a corporation organized and existing under the laws of the State of \"\~ l\C(~O and authorized to do business in the State of Alaska. RECITALS The circumstances surrounding the making of this Second Amendment are as follows: A. City and Airline are parties to the Airline Operating Agreement and Terminal Area Lease dated June 1, 2008, as amended by the First Amendment dated June 1, 2013 (hereinafter referred to as the "Agreement"), under which Airline operates an Air Transportation business and leases property at the Kenai Municipal Airport. B. Pursuant to Section 12.20 of the Agreement: the Agreement may be amended in whole or in part without further consideration upon mutual written consent of City and Airline who both herein wish to amend the Agreement. C. Pursuant to Section 2.1 of the Agreement, the term began on June 1, 2013 and continued for a consecutive sixty (60) month period thereafter. D . Pursuant to Section 5.2 of the Agreement, the Landing Fee charges shall be based on the rate and amount then currently approved by the City as provided in Exhibit C . E. Pursuant to Section 5.3 of the Agreement, rentals for the Airline 's Exclusive Use Space and Joint Use Space shall be based on the rate and amount then currently approved by the City as provided in Exhibit C. F. Pursuant to Section 5.4 of the Agreement, the Terminal Apron Aircraft Parking and GSE Space rentals shall be based on the rate and amount then currently approved by the City as provided in Exhibit C. Second Amendment -Airline Operating Agreement and Tenninal Area Lease Page 1 of 5 LESSOR ~ LESSEE ~ 69 AMENDMENTS 1. Section 2.1 of the Agreement is amended to read in its entirety as follows· The term of this Agreement (the "Term") shall begin on July I, 2018 ("Commencement Date") and shall terminate in twelve (12) consecutive months thereafter (except as it may be terminated or extended in accordance with this Agreement), and the rentals, foes, and charges shall be effective on the Commencement Date, but only in the event that the Premises are then tendered to Airline ready for use and occupancy in accordance with the terms and provisions of this Agreement. 2. Any reference to Exhibits A and B in the Agreement or this Second Amendment shall mean the Exhibits A and B which are attached to this Second Amendment and incorporated herein by referen ce . 3. Any reference to Exhibit C, "Calculation of Terminal Rent, Apron Space Rent and Landing Fees" in the Agreement or this Second Amendment shall mean the Exhibit C which is attached to this Second Amendment and incorporated herein by reference, including all notes to that Exhibit C. 4. Section 5.2.1 of the Agreement is amended to read in its entirety as follows: Airline shall pay to the City within thirty (30) days follo\\'ing the end of each month, without demand or invoicing, landing fee charges for aircraft landings for the preceding month at the rate and in the amount then currently approved by the City as provided in Exhibit C -Airline Rate Schedule. 5. Section 5.3.l of the Agreement is amended to read in its entirety as follows: Airline shall pay to the City in advance, on the first day of each month, without demand or invoicing, rentals for Airline's Exclusive Use Space and Joint Use Space at the rate and in ·the amount then currently approved by the City as provided in Exhibit C -Airline Rate Schedule. Second Amendment -Airline Operating Agreement and Terminal Area Lease Page2 of 5 LESSOR~ LESSEE ~ 70 6. Section 5.4 of the Agreement is amended to read in its entirety as follows : Airline shall pay to the City in advance, on the first day of each month, without demand or invoicing, rentals for Airline's use of the terminal apron space for the parking of aircraft and the storage of ground service equipment (GSE) at the rate and in the amount then currently approved by the City as provided in Exhibit C -Airline Rate Schedul e. 7. Section 4.1.3 of the Agreement is amended to read in its entirety as follows: Airline hereby leases the terminal apron space for the parking of aircraft and the st orage of ground service equipment (GSE) being more particularly delineated on Exhibit E, as the same may be amended from time-to-time. 8. The terms of the Agreement shall continue in full force and effect except as modified by this Second Amendment. Second Amendment -Airline Operating Agreement and Terminal Area Lease Page 3 of 5 LESSOR 70 LESSEE ~ 71 IN WITNESS WHEREOF, the parties hereto have hereunto set thei r hands, the day and year stated in the individual acknowledgments below. LESSOR: CITY OF KENAI By: Paul Ostrander -City Manager I Cr--o Name -Tit e ~~~-'--~~~~~- (If Lessee is a Corporation) ATTEST: Name and Title STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THISISTOCERTIFYthatonthis ~ dayof ~ 2018, \J.$r~£~ (name), (';'fD (title) of Co rv~v\\V\.12/,) , being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said Corporation. ' ""''"'""'''''~ . ,,~ ~tlE Ho"'.-,, /~:-!f\\ iii~ i.~ / -·-J..J i Notary Public for Alaska \ ~ \~ A(l8L\G ii J My C ommission expires: \~~ ~~~ fJ~ ~~ \ ~ '"· OF ~~··· !')' ~ 'lo" '910,, ....... _..... ~~ ....... .,, ~,,, f~ires pr.~ •''' Second Amendment -Airline ~ftemtln!J•''"~ Agreement and Tenninal Area Lease Page 4 of 5 LESSOR 70 LESSEE ~ 72 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of 2018, PAUL OSTRANDER, City Manager of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission expires: Approved by Kenai City Council ------------ Approved as to lease form by City Attorney _S:) __ Approved by Finance Director 7 g Approved by City Mana ger __ _ Return to: City Attorney 210 Fidalgo Ave. Kenai, AK 99611 Second Amendment -Airline Operating Agreement and Tenninal Area Lease Page 5 of 5 ----- · LE SSOR -,~ LESSEE ~ 73 I I I I 1L -- -- o a --la c pl -::::;i=--1111:11:;== 10 ,------, -----------0 0 Q D "' ~-11 · ---12 r- _1 '-1 ;) .. ptu : 22 ~ a 29 a Q a 11 a m=Fi1 I ·-I I !;f 71" 21 r L--r---r-_J ,,----~ .J. = ~=- ___..! i___ _.../" ,,.,..,,..------...... -....... I: ...____ ____,.,..-.-........_ ' I ""' ·~ ' . 'L -----___,.,., ........ '-------........._ __ _ - I / THIS DRAWING IS NOT TO SCALE LESSOR ~~~~~~~~~~~~ LESSEE ~~~~~~~~~~~~ r " WINCE-CORT HELL-BRYSON JQ! NO: I REVISED: 5-21-11 ~W!NG...-._""' _ _,,,, ............ _.~.-·ni:i~--....... __J .....,. KENAI MUNICIPAL AIRPORT EXHIBIT A EXCLUSIVE SPACE KENAI , ALASKA 74 -------------i ~-r:~-" f . -" ~ r -42 Saggnge Breakd own area 960 S.F .rea ' - 0 ~ r=--'I .~ Cl c3 I •0 Baggage Makeup Are a 2.400 S.F 28 ·~ ~ d 32A I jl !~I 11 ; l ~ '/18 ~ ~· '1JV:S. Jf~-\J.[ ~~~ ' 1'14 r-=r ~sa ~ ,....-L:.~~l 1 ,, /l,r'>. Jl!A 'j ~~ b~c: ..J.lLi l . l . 0 ! I :~ M • _ _jfra_OfI';. . I • -~c . · -· ,... .~ = tEfl'~] 2 1 --,=::::o::=:,.-,.29--~~,L;,;-~ ~~· J ~1 I 111 _i3_: __ : ~TllJL ~J~~- 1 I ~ . ·=--48 • I . ~ - I ~-=-==~·_,,,JI I L ---...._ --------....._ -----------....._ '"""==""-·~ LOUNGE !If.}..._ n 111111111!11 S fl 0 ct.,, -------....__ 15 ,-I L ~---c :=' _____ ----_.. ......._.__, ___ _ , WINCE-CORTHELL-BRYSON JOB h O; 2007.0«l I RE'llsa> T/W .... "lllPROVEMEIO'S ------~, """ '- '-I ', '~ ----__: 11 ------1:-=·- J / THI S DRAWI NG IS NOT TO SCALE LESSOR ~---------~ LES SEE -------------- K ENAI MUNICIPAL AIRPORT 'MAWlNG --~··•t-.........r~""-·ca.~~_,..__..,...••-;II EXHIBIT B JOINT USE SPACE KENAI , ALASKA 75 ENA_ExhC_2018-19_D2.123 EXHIBIT C AIRLINE RA TE SCHEDULE KENAI MUNICIPAL AIRPORT City of Kenai, Alaska 17-May-18 Calculation of Terminal Rent. Apron Space Rent and Landing Fees RAVN Alaska Area Description Exclusive use space: Room #s 28,29,30,31 Joint use space: Baggage make-up area Baggage breakdown area Baggage claim area Passenger holdroom arrival and departure hallways Total Terminal Rent Terminal Apron Aircraft Parking & GSE Space Rent Lan ding Fees N Alaska -Total Rent and Fees RAV NOTES: Leased/ Used Space (sq ft) (a) 1, 152 2,400 960 1,200 1,824 7,5361 31 755 l:"J3) Projected Landed Wgt (1 ,000#s) 127,493 2018/19 Terminal Rent (1) Allocated Base Prior Year Preliminary Rental Rate Enplanement Joint Rental (psfpy) Percentage Amount (b) (c) (a)x(b}x(c) $33.85 -- Enplaned Pax 68,444 $20.51 76.2% $37,484 $20.51 76.2% $14,994 $33.85 76.2% $30,939 $33 .85 76 .2 % $47 027 (1) $0.52 20 8/19 Landina Fees (1) Landing Fee Rate $1.70 - (1) Rental rates and fees are scheduled to increase by 5% for each year of the agreement. (2) The Join t Rent Subsidy percentage applies a rental amount reducti on provided by the Airport. (3) Aircraft landed weights are estimated -actual landing fees are to be based on actual weight. 2nd Amendment -Airline Operating Agreement and Terminal Area Lease Page 1 of2 (2) Joint Rent Subsidy Reduction 20% - ($7,497) ($2,999 ($6, 188 ($9,405 .~ I J Rental I Amount $38,998 $29,987 $11,995 $24,751 j $37,622 I $143 ,352 Apron Space Rent $16,485 Landing Fees $216, 117 $375,954 LESSOR r LESSEE ~ 76 ENA_ExhC_2018-19_02.123 EXHIBIT C AIRLINE RATE SCHEDULE KENAI MUNICIPAL AIRPORT City of Kenai, Alaska 17-May-18 Calculation of Terminal Rent, Apron Space Rent and Landing Fees Grant viatlon Area Description Exclusive use space: Room #s 34,35,36A,36B,37 Joint use space: Baggage make-up area Baggage breakdown area Baggage claim area Passenger holdroom, arrival and departure hallways Total Terminal Rent Leased/ Used Space (sq ft) 1,026 2,400 960 1,200 L 1,824 . 7,4~o l (1) Base Rental Rate (psfpy) b $33.85 $20.51 $20.51 $33.85 ____ j33.85 2018/19 Terminal Rent Allocated (2) Prior Year Joint Rent Enplanement Subsidy Rental Percentage Reduction Amount 20% ---$34,732 Enplaned Pax 21 ,422 23.8% $11,732 ($2,346) $9,385 23.8% $4,693 ($939 $3,754 23.8% $9,683 ($1,937 $7,747 1 I 23.8% $14,719 _($2,944 __ _!11,775 $67,394 2018/19 Terminal Aoron/GSE Space Rent Terminal Apron Aircraft Parking & GSE Space Rent Landing Fees Grant Aviation -Total Rent and Fees NOTES: I Space Used (sqft} 10,730 (3) Projected Landed Wgt (1,000#s) 34 ,158 (1) Rental Rate {este~l $0.52 2018/19 Landing Fees (1) Landing Fee Rate $1 .70 (1) Rental rates and fees are scheduled to increase by 5% for each year of the agreement. (2) The Joint Rent Subsidy percentage applies a rental amount reduction provided by the Airport. (3) Aircraft landed weights are estimated -actual landing fees are to be based on actual weight. 2nd Amendment -A irline Operating Agreement and Terminal Area Lease Page 2 of2 Apron Space Rent $5,570 Landing Fees $57,901 LESSOR LESSEE 77 EXHIBITD AIRLINE AND AFFILIATE INSURANCE REQ UIREMENTS A. Airline Liability Insurance and Comprehensive General Liability Insurance Insurance limits of liability for Airline and each of its individual Affiliates shall be determined by the capacity in passenger seats of the largest aircraft in Airline's and its Affiliate's fleet as follows: 1. Not less than one hundred fifty million dollars ($150,000,000) per occurrence for airlines operating aircraft of one hundred ( 100) seats or more; 2. Not less than one hundred million dollars ($100,000,000) per occurrence for airlines operating aircraft of between sixty (60) and ninety-nine (99) seats; 3. Kot less than fifty million dollars ($50,000,000) per occurrence for airlines operating aircraft of between twenty (20) and fifty-nine (59) seats; 4. Not less than twenty million dollars ($20,000,000) per occurrence for airlines operating aircraft of nineteen (19) or fewer seats; 5. Not less than five million dollars ($5,000,000) per occurrence for airlines operating aircraft of nine (9) or fewer seats; 6. Passenger personal injury not less than twenty-five million dollars ($25,000,000) per occurrence and in the annual aggregate with respect to non-passenger personal injury. B. Hangar Keepers Liability Insurance (If Applicable) Hangar keepers liability insurance in an amount adequate to cover any non-owned property in the care, custody and control of Airline or any of its individual Affiliates on the Airport, but in any event in an amount not less than five million dollars ($5,000,000). C. Automobile Liability Insurance Automobile liability insurance in an amount adequate to cover automobile insurance while on Airport premises in an amount not less than one million dollars ($1,000,000) per person per occurrence. D. Workers' Compensation and Employers' Liability Insurance Statutory coverage and liability limits are required. Airline Operating Agreement LE[~ and Terminal Area Lease LESSEE ~ 78 -------------- r o • • • • • •• • • • • • • • ·~ > • "'"""""•H • • "-"~""""'-~~--~""-"'-"""-~-.,,, • •-.. "•""" • • "• • • "• • ·~· U • g • o ..... ·-~ ---u ----------------·-------~ ---~-~--------------------~----- l ....:::::------;y:-1 GRANT 10,730 S.F. PASSENGER I SAFETY 1 11 ZONE I 11 I ~ Ii RAVN 31,755 S.F. j ~ co --=-~ -~-c;::,:o-~ a::a C=:I-=>-=- ~ n • g lzj i I a ..-.. m:::ll a=I -ca ~ ~ c::::::a ~':I -r.z. e:a a L Tt:JIS_!'RAWIN,9 12 NOTTC>_ S£A_LE _ __, LESSOR-------------- LESSEE ---------- "" KENAI MUNICIPAL A IRPORT EXHIBIT E APRON AIRCRAFT PARKING KENAI, ALASKA 79 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 44 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A SECOND AMENDMENT TO THE AIRLINE OPERATING AGREEMENT AND TERMINAL AREA LEASE AND AUTHORIZING THE CITY TO ENTER INTO SUCH AGREEMENT WITH GRANT AVIATION, INC. WHEREAS, the City of Kenai is the owner and operator of the Kenai Municipal Airport; and, WHEREAS, the Administration working with an airline consultant has developed an amendment to the current airline operating agreement and terminal area lease; and, WHEREAS, the airline operating agreement and terminal area lease has modernized the terminal leasing procedures and policies; and, WHEREAS, the Administration consulted with the two regularly scheduled passenger airlines currently operating at the Kenai Municipal Airport regarding the agreement; and, WHEREAS, non-signatory airlines operating out of the passenger terminal building will pay an additional 30% than signatory airlines; and, WHEREAS, it is in the best interest of the City of Kenai to authorize the City Manager to enter into such agreement with Grant Aviation, Inc., on behalf of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Kenai City Council approves the Second Amendment to the Airline Operating Agreement and Terminal Area Lease form as shown in Exhibit 1; and, Section 2. That the Kenai City Manager is authorized to enter into such an agreement with Grant Aviation, Inc. Section 3. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1 day of August, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, City Clerk 80 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant – Airport Manager DATE: July 19, 2018 SUBJECT: Resolution 2018-44 – Approving Second Amendment to the Airline Operating Agreement and Terminal Area Lease for Grant Aviation, Inc. Attached to this memo is the Second Amendment to the Kenai Municipal Airport Airline Operating Agreement & Terminal Area Lease signed by Grant Aviation, Inc., for City Council approval and Administration execution. The original agreement was from 2008 to 2013 and the First Amendment from June 2013 expired on June 30, 2018. During the past months, City and Airport Administration, along with Steve Horton of Leibowitz & Horton, evaluated financial costs associated with Airport operations. The Finance Director and Airport Manager presented the evaluation with a recommendation of a 5% increase to Council during the May 24, 2018 budget work session. Due to the future terminal rehabilitation project involving changes to the airline’s exclusive and joint use areas, this amendment is for only one year. After project completion, a new agreement will be negotiated based on the final allocation of the airline areas. I recommend approval of this Second amendment to the Airline Operating Agreement and Terminal Area Lease. Thank you for your consideration. Attachment 81 SECOND AMENDMENT TO THE KENAI MUNICIPAL AIRPORT AIRLINE OPERA TING AGREEMENT AND TERMINAL AREA LEASE THIS SECOND AMENDMENT to the Kenai Municipal Airport Airline Operating Agreement and Terminal Area Lease (the "Second Amendment") is made and entered into this lst day of July, 2018, by and between the <;:ity of K nai, A.Jaska (the "City"), a political subdivision of the State of Alaska, and ~ \ct\\ (\ . . (the "Airline"), a corporation organized and existing under the laws of the State of (;........> and authorized to do business in the State of Alaska. RECITALS The circumstances surrounding the making of this Second Amendment are as follows: A City and Airline are parties to the Airline Operating Agreement and Terminal Area Lease dated June I, 2008, as amended by the First Amendment dated JW1e I, 2013 (hereinafter referred to as the "Agreement"), under which Airline operates an Air Transportation business and leases property at the Kenai Municipal Airport. B. Pursuant to Section 12.20 of the Agreement, the Agreement may be amended in whole or in part without further consideration upon mutual written consent of City and Airline who both herein wish to amend the Agreement. C . Pursuant to Section 2.1 of the Agreement, the tenn began on June 1, 2013 and continued for a consecutive sixty (60) month period thereafter. D. Pursuant to Section 5.2 of the Agreement, the Landing Fee charges shall be based on the rate and amount then currently approved by the City as provided in Exhibit C. E . Pursuant to Section 5.3 of the Agreement, rentals for the A irline's Exclusive Use Space and Joint Use Space shall be based on the rate and amount then currently approved by the City as provided in Exhibit C . F. Pursuant to Section .4 of the Agreement, the Terminal Apron Aircraft Parking and GSE Space rentals shall be bas d on the rate and amount then currently approved by the City as provided in Exhibit C. Second Amendment -Airline Operating Agreement and Tenninal Area Lease Page I of 5 LESSQR_ LESSEE ~ 82 AMENDMENTS 1. Section 2.1 of the Agreement is amended to read in its entirety as follows: The term of this Agreement (the "Term,,) shall begin on July 1, 2018 ("Commencement Date") and shall temt.inate in twelve (12) consecutive months thereafter (except as it may be terminated or extended in accordance with this Agreement), and the rentals, fees, and charges shall be effective on the Commencement Date, but only in the event that the Premises are then tendered to Airline ready for use and occupancy in accordance with the terms and provisions of this Agreement. 2. Any reference to Exhibits A and B in the Agreement or this Second Amendment shall mean the Exhibits A and B which are attached to this Second Amendment and incorporated herein by reference . 3. Any reference to Exhibit C, "Calculation of Terminal Rent, Apron Space Rent and Landing Fees" in the Agreement or this Second Amendment shall mean the Exhibit C which is attached to this Second Amendment and incorporated herein by reference, including all notes to that Exhibit C. 4. Section 5.2.1 of the Agreement is amended to read in its entirety as follows: Airline shall pay to the City within thirty (30) days following the end of each month, without demand or invoicing, landing fee charges for aircraft landings for the preceding month at the rate and in the amount then currently approved by the City as provided in Exhibit C -Airline Rate Schedule. 5. Section 5.3.1 of the Agreement is amended to read in its entirety as follows : Airline shall pay to the City in advance, on the first day of each month, without demand or invoicing, rentals for Airline's Exclusive Use Space and Joint Use Space at the rate and in the amount then currently approved by the City as provided in Exhibit C -Airline Rate Schedule. Second Amendment -Airline Operating Agreement and Tcnninal Area Lease Page2 of 5 LESS~ LESSEE ~ 83 6. Section 5.4 of the Agreement is amended to read in its entirety as follows: Airline shall pay to the City in advance, on the first day of each month, without demand or invoicing, rentals for Airline's use of the terminal apron space for the parking of aircraft and the storage of ground service equipment (GSE) at the rate and in the amount then currently approved by the City as provided in Exhibit C -Airline Rate Schedule. 7. Section 4.1.3 of the Agreement is amended to read in its entirety as follows: Airline hereby leases the terminal apron space for the parking of aircraft and the storage of ground service equipment (GSE) being more particularly delineated on Exhibit E, as the same may be amended from time-to-time. 8. The tenns of the Agreement shall continue in full force and effect except as modified by this Second Amendment. Second Amendment • Airline Operating Agreement and Tenninal Area Lease Page 3 of S LESSO~ LESSEE~ 84 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below. (If Lessee is a Corporation) ATIE~ 1 C -~ :rJC ~u\1 ..,~J,,~ Name and Title STA TE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) LESSOR: CITY OF KENAI By: Paul Ostrander -City Manager LESSEE: ---') I < ..:;;:., 1.,, ',/.(l , '\ By: Robert M Kelley Name -Title President ............,-==:.-=:;.;..:.:_~~~~~- THIS IS TO CERTIFY that on this 25th day of May 2018, Robert M Kelley (name), President (title) of Grant Aviation. Inc. , being personally known to me or having produced s atisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said Corporation. Page 4 of 5 LESSO~ LESSEE ~k.. 85 STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of 2018, PAUL OSTRANDER, City Manager of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrwnent on behalf of said City. Notary Public for Alaska My Commission expires:----- Approved by Kenai City Council ----------- Approved as to lease form by City Attorney S ~ Approved by Finance Director __ _ Approved by City Manager __ _ Return to: City Attorney 210 Fidalgo Ave. Kenai, AK 99611 Second Amendment • Airline Operating Agreement and Tcnninal Area Lease Page 5 of 5 LESS~ LESSEE~ 86 I I I I 1L -- -- CJ • ~-=:.; __ ,__ 10 ---------- ,------, --------a a a ~ b-------I [' r " 42 40 I-i-Jnl 0 21 .---1 1tj+mp : u I ~ I I !=-_-_-_-,, .._/ ) a a D I ~ D 11 0 21 I _J .----~ J. ·-==i~ L --,------------------....... ........ ''' . _: L -=:r-'--------------'-'=-= ~ ------__......... J / --- / ' WINCE-CORTHELL-BRYSON J08 ..0: 1 R£YlSEO: s.41-11 ~ 'c.AWMOto---•-• ... , _ _......,..__...-., _____ rtJ!IJ ~ THIS DRAWING IS NOT TO SCALE LESSOR~~~~~~~~~~~~~ LESSEE ~~~~~~~~~~~~~- KENAI MUNICIPAL A IRPORT EXHIBIT A EXCLUSIVE SPACE KENAI, ALASKA 87 I I I I 1l -- --c-- "' I' ,--------, 42 Baggage Breakdown 11nte 9605.F. -----------0 a a 40 0 • I I I ~ f R l Ii~ .~ ~ ... m z:s -== i:w -. 10 -----..... -..... ·ea , '---n--;;-o -=.-.r-nmnm-- 1 a i!t= -____, I • < Jll >I 0 0 11 I at r _J L -::::::r ---c -----------......... /. -_.... ~ _,.,.,.----....'-........ -........., ..... ', 'I I / --_,,.. , "' WINCE-CORTHELL-BRYSON ~--M0:21111.000 1~T#t""'-gp nwn ~ ...... .,.,.........._._....., ______ ,,,,I --~ ---..... -.............:_ ____ ~II ~---i!.__ -....... - THIS DRAWING IS NOT TO SCALE LESSOR------~----- LESSEE ------------- KENAI MUNICIPAL AIRPORT EXHIBIT B JOINT USE SPACE KENAI , ALASKA 88 EW\_ExhC_2018-19_02.123 EXHIBITC AIRLINE RA TE SCHEDULE KENAI MUNICIPAL AIRPORT City of Kenai, Alaska 17-May-18 Calculation of Tenn l nal Renti Apron Space Rent and Landing Fees Area Description Exclusive use space; Room #a 34,35,36A,36B,37 Joint use space ; Baggage make-up area Baggage breakdown area Baggage daim area Passenger holdroom, arrival and departure hallways Total Terminal Rent Terminal Apron Airaaft Parking & GSE Space Rent Landing Fees Grant NOTES: nd Fees Leased/ Used Space (sq ft) 1 ,026 2,400 960 1,200 1824 7410 10730 (3) Projected LandedWgt 1000#8 34158 2018/19 Terminal Rent (1) Allocated Base PrtorYear Preliminary Rental Rate Enplanement Joint Rental (psfpy) Percentage Amount b axb c $33 .85 Enplaned Pax 21,422 $20.51 23.8% $11,732 $20.51 23.8% $4,693 $33 .85 23.8% $9,683 $33.85 23.8% $14 719 2018/19 Terminal (1) Rental Rate $0.52 (1) Landing Fee Rate $1 .70 2018/19 landin Fees (1) Rental rates and fees are scheduled to inaease by 5% for each year of the agreement. (2) The Joint Rent Subsidy percentage applies a rental amount reduction provided by the Airport. (3) Aircraft landed weights are estimated -actual landing fees are to be based on actual weight 2nd Amendment -Alrtine Operating Agreement and Termina l Area Lease Page 2 of2 (2) Joint Rent Subsidy Reduction 20% ($2,3"6 ($939 ($1,93 $2944 Rental Amount $34,732 $9,385 $3,754 $7 ,747 s11 n5 $67 394 Apron Space Rent $5570 landing Fees $57 901 LESSO...,R....._ __ LESSEE ~ 89 ENA_ExllC_201&-19_02.123 EXHIBIT C AIRLINE RA TE SCHEDULE KENAI MUNICIPAL AIRPORT City of Kenai, Alaska Calculation of Terminal Rent, Apron Space Rent and Landing Fees Area Description Exclusive use space: Room #s 28,29,30,31 Joint use space: Baggage make-up area Baggage breakdown area Baggage claim area Passenger holdroom, arrival and departure hallways 17-May-18 Toter Terminal Rent '--~""""'"'------_._~~~~~~~~~~~~~~~~~-L..--:!..!.::!~~ Tennlnal Apron Alraaft Paridng & GSE Space Rent Landing Fees RAVN Alaska -Total Rent and Fees NOTES: (3) Projected LandedWgt ( 1 000#6} 127,493 2018119 La d" F n mg ees (1) Landing Fee Rate $1.70 (1) Rental rates and fees are scheduled to Increase by 5% for each year of the agreement. (2) The Joint Rent Subsidy percentage applies a rental amount reduction provided by the Airport. (3) Aircraft landed weights are estimated -actual landing fees are to be baaed on actual weight. 2nd Amendment -Air1ine Operating Agreement and Terminal Area Lease Page 1 of2 Landing Fees $216 117 ~~759M LESS OB..__._ LESSEE ~ 90 EXHIBITD AIRLINE AND AFFILIATE INSURANCE REQUIREMENTS A. Airline Liability Insmance and Comprehensive General Liability Insurance Insurance limits of liability for Airline and each of its individual Affiliates shall be determined by the capacity in passenger seats of the largest aircraft in Airline's and its Affiliate's fleet as follows : 1. Not less than one hundred fifty million dollars ($150,000,000) per occurrence for airlines operating aircraft of one hundred (100) seats or more; 2. Not less than one hundred million dollars ($100,000,000) per occurrence for airlines operating aircraft of between sixty (60) and ninety-nine (99) seats; 3. Not less than fifty million dollars ($50,000,000) per occurrence for airlines operating aircraft of between twenty (20) and fifty-nine (59) seats; 4. Not less than twenty million dollars ($20,000,000) per occurrence for airlines operating aircraft of nineteen (19) or fewer seats; 5. Not less than five million dollars ($5 ,000 ,000) per occurrence for airlines operating aircraft of nine (9) or fewer seats; 6. Passenger personal injury not less than twenty-five million dollars ($25,000,000) per occurrence and in the annual aggregate with respect to non-passenger personal injury. B. Hangar Keepers Liability Insurance (If Applicable) Hangar keepers liability insurance in an amount adequate to cover any non -owned property in the care, custody and control of Airline or any of its individual Affiliates on the Airport, but in any event in an amount not less than five million dollars ($5,000,000). C. Automobile Liability Insurance Automobile liability insurance in an amount adequate to cover automobile insurance while on Airport premises in an amount not less than one million dollars ($1 ,000,000) per person per occurrence. D. Workers' Compensation and Employers' Liability Insurance Statutory coverage and liability limits are required . A irline Operating Agreement _ _LESSOR __ and Tenninal Arca Lease LESSEE 1 /K.. 91 ---~ -~ GRANT II PASSENGER 10,730 S.F. SAFETY ZONE ~--= = .,,..._ RAVN 31,755 S .F. """"""' -~· J:& WINCE-CORTHELL·BRYSON ---J:::; ---......__ JDllN(k ~ ....... ~ ------,,.,..--~-" .. -···---·-_,-• 1 -- ...,_ ""' ~ ,J = ---=-"'-"= ""'-=--' ! ... _________ ir.-.~-- :re: a::;, __ -=o ______ &=» __ , KENAI MUNICIPAL AIRPORT EXHIBIT E APRON AIRCRAFT PARKING KENAI, ALASKA 92 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018-45 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING THE PROCEEDS FROM A $2,000 CARING FOR THE KENAI PROJECT DEVELOPMENT GRANT PROVIDED BY ENSTAR NATURAL GAS TO MR. RILEY GRAVES FOR THE PURCHASE AND DEPLOYMENT OF MAGNETS TO REMOVE NAILS AND OTHER METAL DEBRIS FROM CITY BEACHES. WHEREAS, Riley Graves, a freshmen at Kenai Central High School, was a 2018 Caring for the Kenai finalist for his project to remove nails and other metal debris from Kenai beaches; and, WHEREAS, Riley’s project included purchase and installation of large magnets on City beach rakes to remove nails and other metal debris during regular raking of the beaches; and, WHEREAS, Riley’s project also included solicitation of grants to help fund the project for which he received a $2,000 Caring for the Kenai Development Grant from ENSTAR Natural Gas and a $500 City of Kenai mini-grant; and, WHEREAS, following Riley’s project, the City has purchased and installed magnets on its beach raking equipment and has been successful in collecting buckets of nails and other metal debris with more anticipated during beach clean-up after the close of the Personal Use Fishery; and, WHEREAS, removal of nails and other metal debris from City beaches will increase public safety, reduce damage to personal property, and enhance the experience of City residents and visitors on City beaches. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to accept the proceeds from a $2,000 Caring for the Kenai Project Development Grant which was awarded to Mr. Riley Graves for his project to remove nails and other metal debris from Kenai beaches. Section 2. That the City would like to recognize and commend the efforts and ingenuity of Mr. Riley Graves for his development of this project, being a 2018 Caring for the Kenai finalist and applying for and receiving grants to fund his project. 93 Resolution No. 2018-45 Page 2 of 2 Section 3. That this resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 1 day of August, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk 94 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: July 24, 2018 SUBJECT: Resolution 2018-45 ____________________________________________________________________________ This memo recommends adoption of Resolution 2018-45. Resolution 2018-45 will recognize the accomplishments of Riley Graves, a freshman at Kenai Central High School, and authorize acceptances of a $2,000 Caring for the Kenai Project Development Grant awarded to Riley for his project to remove nails and other metal debris from Kenai beaches. Riley’s project included installation of large magnets on City beach rakes to remove nails and other metal dislodged during the raking process. Riley’s project also included applying for grants for the purchase of the magnets. Riley was successful in applying for and being awarded a $2,000 Caring for the Kenai Project Development Grant, sponsored by ENSTAR Natural Gas, and a $500 City of Kenai mini-grant. Working with Riley, the City purchased and installed magnets on each of its beach rakes at a cost of $2,632 and to date has removed buckets of nails and other metal debris from Kenai beaches making them safer and more enjoyable for residents and visitors. Your support for Resolution 2018-45 is respectfully requested. 95 TED AND CATHERINE STEVENS CENTER FOR SCIENCE AND TECHNOLOGY EDUCATION June 25, 2018 Pau l Ostrander, City Manager City of Kenai 210 Fidalgo Ave Kenai, AK 99611 Dear Mr. Ostrander: As we announced earlier this month, Caring For the Kenai finalist Riley Graves was successful in applying for a $2,000 CFK Project Development Grant, sponsored by ENSTAR Natural Gas. Riley indicated these funds should be submitted to the City of Kenai for the purchase a magnetic beach rake attachment. Please find included in this letter a $2,000 check from the Challenger Learning Center of Alaska, the organization which administers the Caring For the Kenai program and the CFK - ENSTAR grant. We look forward to seeing Riley's project fully implemented this year, helping keep Kenai's beaches cleaner for visitors and local residents . We are very proud of Riley 's dedication to this project. Sincerely, Katie Quinn, Outreach Director Caring For the Kenai, Administered by the Challenger Learning Center of Alaska 9711 Kenai Spur Hwy · Kenai, AK 99611 Enclosures $2,000 check for purchase of magnetic beach rake attachment 9711 Kenai Spur Hwy -Kenai, AK 99611 907-283-2000 www.akchallenger.org 96 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2018 - 46 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 SOAR INTERNATIONAL MINISTRIES, INCORPORATED, FOR THE UNDEVELOPED PORTION OF TRACT A, GENERAL AVIATION APRON NUMBER TWO. WHEREAS, on May 18, 2018, SOAR International Ministries, Inc., (SOAR) submitted an application to lease City owned properties within the Airport Reserve, described as the undeveloped portion of Tract A, General Aviation Apron Number 2; and, WHEREAS, SOAR’s lease application states plans to construct a hangar facility for aircraft storage and maintenance; a connecting office facility, an aircraft ramp and tie-down area, and parking, an investment that aligns with a lease term of 45 years; WHEREAS, the proposed development would be mutually beneficial and would conform with the Kenai Municipal Code for zoning, Kenai’s Comprehensive Plan, the Airport Land Use Plan, Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program grant assurances, and Airport operations; and, WHEREAS, the City of Kenai did not receive a competing lease application within thirty (30) days of publishing a public notice of the lease application from SOAR; and, WHEREAS, at their regular meeting on June 13, 2018, the Planning and Zoning Commission reviewed the lease application and recommended approval by the City Council; and, WHEREAS, at their regular meeting on July 12, 2018, the Airport Commission reviewed the lease application and recommended approval by the City Council. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: That a Lease of Airport Reserve Lands is approved and the City Manager is authorized to execute a lease between the City of Kenai, Lessor, and SOAR International Ministries, Incorporated, Lessee, as follows: Lot improvements as outlined in lease application from SOAR International Ministries, Incorporated, including an approximately 120 foot x 180 foot hangar facility for aircraft storage and maintenance, an approximately 100 foot x 110 foot connecting office facility, an aircraft ramp and tie-down area, and parking to be completed within two (2) years of signing the lease; The evidence must be submitted to the City within 60 days of the completion of the development and improvements; 97 Resolution No. 2018-46 Page 2 of 2 The lease term will be 45 years; Lot developments will prevent unauthorized access to the airfield; Structures will be built behind the 100 foot building restriction line; The relocation of the airport perimeter fence will allow aircraft full access to the proposed aircraft ramp and tie down area; Paving will be completed up to the existing transient aircraft apron pavement; SOAR is responsible for all snow removal, and snow may not touch the perimeter security fence or be piled to a height that would allow access to the airport; and SOAR will subdivide the property to designate the portion of Tract A, General Aviation Apron Number Two (2) that it wishes to lease from the City of Kenai as set forth on Exhibit A attached hereto, and the subdivision will include a 40-foot easement for utilities. Section 2: That this resolution takes effect immediately upon passage. ADOPTED 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 98 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: July 24, 2018 SUBJECT: Resolution 2018-46 – Kenai Municipal Airport Reserve Lease Application from SOAR International Ministries, Inc. – 209 N. Willow St, the undeveloped portion of Tract A, General Aviation Apron No. 2 ____________________________________________________________________________ SOAR International Ministries, Inc. (SOAR) submitted an application on May 18, 2018, to lease an undeveloped portion of Tract A, General Aviation Apron No. 2 within the Airport Reserve. SOAR is current on rent payments for the three lots currently leased within the Airport Reserve from the City. SOAR proposes to lease Tract A, General Aviation Apron No. 2 for an aeronautical use. SOAR proposes to construct an approximately 120 foot x 180 foot hangar for aircraft storage and maintenance. There would also be a connecting office facility of approximately 100-foot x 110- foot, an aircraft ramp and tie-down area, and parking. Possible activities noted on SOAR’s lease application include flight training, aircraft parts sales, aviation safety meetings, community meetings, and storage of aircraft floats. SOAR requested a lease term of 55 years to start on September 1, 2018, however, the maximum term of a lease allowed under KMC 21.10.080 is 45 years. SOAR proposes to build on the portion of the lot that is currently treed, and would need to subdivide the lot prior to construction. This section of the lot is surrounded by existing development and other disturbed surfaces. SOAR would need to ensure the fence encompassing its development met Airport safety and security standards. Pursuant to KMC 14.20.065, 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 Airport as a significant resource to the community by encouraging compatible land uses and reducing hazards that may endanger the lives and property of the public and aviation users. The proposed aeronautical use by SOAR is a permitted and compatible use in the ALI Zone. 99 Page 2 of 2 Resolution 2018-46 The Imagine Kenai 2030 Comprehensive Plan outlines goals, objectives, and action items for the City, including this one pertaining to the Kenai Municipal Airport: • 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 SOAR 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 SOAR complies with the Airport Land Use Plan. It would enhance local economic development. The lease application complies with the Airport Layout Plan, Airport Master Plan, Airport Improvement Program Grant Assurances, Federal Aviation Administration requirements, and Airport Operations. The development will create new land lease revenue, employment opportunities, and offer services to airport users that are not currently available. 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 SOAR lease application in the Peninsula Clarion on May 29, 2018. The City did not receive a competing application to lease this parcel within 30 days of the notice (through June 28th). The Planning and Zoning Commission recommended approval of the lease application at their meeting held on June 13, 2018, contingent upon SOAR submitting a plat to the Planning and Zoning Commission for the subdivision of the lot that SOAR is interested in leasing from the City of Kenai. The Airport Commission and Airport Manager recommended approval of the lease application at their July 14th meeting, contingent upon SOAR subdividing the property and reserving a 40-foot utilities easement, paving up to the existing transient aircraft apron pavement, relocating one flood light to the north, and meeting Federal Aviation Administration and Transportation Security Administration requirements for security and access. Thank you for your consideration. 100 City of Kenai Kenai Municipal Airport Land Lease Application Name of Applicant: Richard Page RECEIVED CITY OF KENAI MA Y 8 l zo ~ '--------------+' Application for: 0New Lease 0Amendment Extension/Renewa l Mailing Address: 34225 Page Street City: Soldotna State : Alaska Zip Code : 99669 Phone Number(s): Home Phone : ( 907) 252-1841 Cell Work/ Message Phone : ( 907) 283-1961 E-mail: (Optional) RichardPage@soarinternational.org Name to Appear on Lease : SOAR International Ministries Mailing Address: 135 Granite Point Court City: Kenai State: Alaska Zip Code: 99611 Phone Number(s): Home Phone: (907) 252-1841 Cell Work/ Message Phone: (907) 283-1961 E-mail: (Optional) Type of Applicant: D Individual (at least 18 years of age) D Partnership D Limited Liability Company (LLC) D Government Description of Property and Term Requested ~Corporation Oother _____ _ Legal Description of Property : I • • ' • I :· ' p p ac Does the Property Require Subdivision? (if Yes, answer next two questions) DYES ~NO Are you prepared to be responsible for all costs associated with subdivision? DYES ONo Do you believe the proposed subdivision would serve other Airport purposes? DYES ONO Do you have or have you ever had a Lease with the City of Kenai? ~Y ES ONO If Yes, please provide description of property leased (e .g. legal or physical description): Lot 1 A, Block 2, General Aviation Apron No. 3 Lot 3, Block 1 Gener al Aviation Apron , according to Plat No. 7 3 -68 . . . Is this application for renewal or term extension of an existing lease? DYES ~NO If Yes , please provide a description of the property leased : Proposed Use (check one): lvl Aeronautical 0Non-Aeronautical Do you plan to construct new or additional improvements? ~YES ONO 101 If yes, will the improvement change or alter the use under an existing lease? DYES ~NO If yes, what is the new proposed use? If Jflls, wh8~is the (Xge of folfs~v~ent? ie·'ffi' p~JdinH imcrir8~ement lq~O img>rovemen~ Ne w ice an angar ilJties o A ntern t10 a inist es n angar fac1 it1es t accommo ate transient corporate aircraft. D -•--•'~I CCf"'I ..... ..... -J n.r ·fl: .... L... ... •-.... in: ........ , ............ ;1:•. If ~es, whc;it is the natura of me imRcrovements? (e.g. maintenance, landscaping, new construction) New onstruct1on, paving , an Ian scap1 g. List of proposed use and business activities: Base o operations for SOAR International Ministries including aircraft storage and maintenance , hangaring of transient aircraft, possible FBO operation, possible flight training facility, possible aircraft parts sales, facilities for installation, removal, and inside storage of aircraft floats, facilities for community activities such as aviation safety meetings, community fundraisers, etc. Lease Extension or Renewal Method to determine value of improvements/term for a lease renewal or expiring lease : D Professional estimate of the remaining useful life of the principle improvement on the property I II' I Market value appraisal of the principle improvement on the property DPurchase price of improvements Submitting an application for a lease does not give the applicant a right to lease or use the land requested in the application. The application shall exp ire twelve (12) months after the date the application has been made if the City and the applicant have not, by that time , entered into a lease, unless the City Council for good cause grants an extens ion for a period not to exceed six (6) months . The City has no obligation to amend , renew o r extend a lease and may decli ne to do so upon making specifi c findings as to why a lease renewal , extension , o r amendment is not in the best interest of the C ity Signature: Date: Print Name: Title : 102 'STORA G E':; \-\A N~A: R__ h-'\/"{"R_(:)~ \ 20 )<. \ '&J L_J ·-----! o~Fl<:.k6 11-f\lD \-\A f\k;.A €., fl-W~'X \OQ x \\C I l ______ _J I -·· 103 I I I -., \ '; J i 1 !• ; i --m ::== . ·-·I "' e "'-v I ~ ___.J "'-I~ ' I "----...l--I 104 VICINITY MAP r"=800' POR S.32;T6N,R HW ,S.M \' I \ \ \_ --------- ~) .:·~~ ~~.,! lJj s. 280 . 4 2·w iffp.··"Ci~Z9 56 irt~P.,t C/T!' O,C/(::-.'.;:~/ :,.~~:S!,'BD.'~'.'D~:V CERTIF'ICATE OF OWNE'RSHIP8 OECleATION CrTY OF' KENA! I S THE OWN~ OF THE I HEREBY C£RTIFYTHAT THE HEREON, THAT THE CITY ADOPTS THtS PROPERTY SHOWN ANO DESCRIBED ERl!flY CFIANT ALL EASEMENTS TO Pl.A N OF S\JBOI YI SION, ANO DOES H n<E u.:,:ow•~ ----ioN CITY MANAG -WILLIAM B I PL AT APPROVAL PSVLA BOROUGH THIS PLAT WAS '"""°"'°BY THE KENA I p ~r .19 /90 P\..ANN!NG COMp,tlSSION AT THE MEETINC OF V KENAf P!"NIN"!VLA BOROUC:H BY :~ £,CIA~~lv s i STREET ACORESS SCALE 1 ~~ 100' GE:NE:f?AL AVIATTON APRON NO. 2 5·243 ACRES WITHl N THE NEl,.ti SWV4 ,A~ 32 TGN IU,W.,SM., PlW r/4 SEl/4 :N!~c PEN; NSu~~ soRou GH, CITY OF KENAI BOX ~BO KENAI, AK 99611 Al AS KA MALONE SJRV£YJNG BOX 5 66 KENAI, AK. 9)611 8 . '-~ .':~ --- 105 \' mund-llMl! ldT ,,...----..::s:.:.!.2=-"e,_.o..4_2'w. rd . ,00.00 fd .~.l.noil \ 1 l __ TAXIWAY A-~ -------s.2e0 -42·w. . '-.! 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' ' "-----------------------------------------------------------------------------------------------------------------------" FIRST FLOOR PLAN 3132" = 1'-0" (22X34); 3/64" = 1'-0" (11X17) 36'-3" ~ \§! ~ ~ ) 175'-0" 0 0 I I I I I I I I L ______ J ==================================================================================== ==================================================================================== ==================================================================================== 0 0 ----------------------------------------------------------------------------- 0 REF 0 KLAUDER & COMPANY ARC H ITE C T S , INC. SOAR HANGAR MARCH 21, 2017 JOB# 1623 109 PEDESTRIAN PASSAGEWAY MECHANICAL kClsTR~ 9'-2" x 7'-10" 8'-5" x 7;.:4-• ' ~ ~ 175'-0" 0 0 l 14·--0· x 1a·-o· 1 't' OVERHEAD DOOR 'f I I I I I I I I ;=!:=================================================== L --=========================================~==================E HANGAR 175'-0" x 100'-0" ~~~============-=---------------::E EVAPORATIVE TRENCH ~ I ~=================================================================================================================E ~=================================================================================================================~ 0 -------0 ·- : Li_ -- r KLAUDER & COMPANY ARCHITECTS, INC. MAIN HANGAR FLOOR PLAN SOAR HANGAR MARCH 21, 2017 JOB# 1623 1/8" = 1'-0" (22X34); 1/16" = 1'-0" (11X17) REF 110 48'-10" 38'-4" I. w 1 ~· -10'-6" 1' • STAIR c f)I DIN ING BELOW N J -, Q \ N (oPEN TO BALCONY ----........ TWO STORY ON N r'\w\_ ATRIUM BELOW -' en ,,l~ BALCONY- / bi "' I OFFICE ~OMEN ME~ EQUIPMENT 5' 5' ~ 11'-6"x 11 '-11 " -3" x 9'-( 8'-3' x9' PLATFORM ao Li) ;! LJLJ - / PRINT ALCOVE I L__ 16'-0" x 8'-6" Urrlt;t: Q;"~-... ~~ ~ ~ C;> STAIF "' t-- ao ,__ L..9: ,_ '-- L_oPENTO ,_ ,_ I--------BELOW/ fA1\ --OFFIC~ -,_ ~ '-,_ 11·-0· x 12•-o•. ~ ~ '-'-L~b N ,_ '-,_ '-~ ,_ '-,__ ,._ 0 ,_,._ 1--L- pif' ,_ ' .____ lf------1 -\ iVU ,_ ~ 4'-8" 0 OFFICE z 16'-2" x 20'-7' 5' ~ N = ... N ~ I 0 N lg n I. 0 0 0 ~ 17'-4" 16'-6" 0 'l 1 SECOND FLOOR PLAN 1/8" = 1'-0" (22X34); 1/16" = 1'-0' (11X17) REF I 12'-0" 1 ~ ~AL _wlo\v fA1\ <" 1 '-6 x '-( 5' ~ f ' ao \ .,.., ---~ \C< ,,,.. Jou "" 5' N ~ I I I I I L...___i_ --- :.r "' N 5' en ~ ., N I ·1 µ I I I I h ~ ao 11 1'-0" 38'-4" 15'-0" 14'-6" ' / \I ' / \/ ~ ~~~ 1 .e) 0 ~~0 lai~ ~ '°'"roi BREAK ROOM ~ i::".f::±:-=--=·:-::1 -,o '--FF-IC..:.;;E~t\\--1 BOOKKEEPER..-ADMIN OFFICE ..-~ ~ ~ 27'-B"x20'-8" ~~ -=-\14 '-6"x 1 1 '-0~ ',:4'-0"x11'-<L____ 14'-0"x11'-0"~I a: -SUSP~D ~ V-,:-·-----·;;;·:.~::·l UP ------~~%BALCONY TWO STORY FROMABOVE ATR IUM rR\ ' I llJJ '-\t::::Ff : [)::)\ \ l I <J_ ml G~IREPLACE 0 8J -L1 I PARTS I TOOLS I ~ WOM~ / MEN -Fi) 0 rill j: 1~~~~~[ 14'-0"x7'-0" f ',(l bJ\22 '-0'x~ 1 ~-0"x7':°VC( ~ H I lQJ ~ :r c;; 3> ~ 5' ~ ... r -r------~-=-=o-==F~:::,c!:'!E~=h"~ ~.-IC -~~~c;:-~ _:==,_,,._;'_',_J"'11::co;::v0L=T~REE=1' \~_I ,~~~' I 1 ... ~.~ ~!lllill~illll:::: ~ ...._ _ __,_ ____ /,,.' l_J111'-2"x12'-0\... ~ I~ &AJRHOSEREEL REEL -::r--/ ll"I' TABLE I CHAIR / UP 11.l STORAGE -'( t:::t::: ~~1 ~·~ ~ ~ ~ io N ~ ~ "' N fA1\ ~ C::~ <----=l>---~ \ '-= OFFI~ '---11 '-2" x 12·-0\ ..... ..,, .... _g, .... SHOP 60'-0" x 59'-0" OCCUPANCY LOAD 49 GARAGE BAY 16'-0' x 40'-0 " -----1 , .. _ .. _. ~'OQM l 16'-• 25'-0" 16'-0' x 40'-0" 110VOLTREE & AIRHOS; REE ~ 220VOLT REEL 220 VOLT REE L ---..._-Ill~ ~'!::i:'::, 4'-8" ~ .... __ $ 0 §b ~~ ~1~1~~~:k 110VOLTREEL ~ ~, &~~ ~ f g ~"'i::.~ ,, ~--~ ~ ~~~ ·, 1-----1~------.U=::1=_=_==i~c:::-==-=-~,-.... J;.=o:C:o~ve~1~;~~~~1~~~~0R~•~~o::{!:=~"o ~~~~~~""".:~o~~~~~~~~~~~~~~\,=,=Jr=~:~rr-'~o~ove~1~~~EAD~·~1~000R~~~~o~~I L...-l 16'-10" 16'-6" 60'-6" 12'-0" V" --/ -' '\ / \ I I • E IT ol A Kl ~G Pl DI SRI N"A l::s G°"' AY O'-O" x 1 1'" • ' ' l ~ ' I I \ / '\ ' -/ -- v 1: I I r I ,.. OFFICE I SHOP FIRST FLOOR PLAN 1/8" = 1'-0" (22X34); 1116' = 1'-0" (11X17) 12'-0 -H~I WY 12 6" x '-0 -;>- -·-·-·--I I · ... " ., "" \ -·--- REF ENLARGED PEDESTRIAN PASSAGEWAY 1/4" = 1'-0" (22X34); 1/B' = 1'-0" (11X17) REF KLAUDER & COMPANY ARCHITECTS, INC. SOAR HANGAR MARCH 21 , 2017 JOB# 1623 111 SOUTH ELEVATION 3/32' = 1'-0" (22x34); 3/64" = 1'-0'' (11x17) EAST ELEVATION 3/32' = 1'-0' (22x34); 3/64' = 1'-0" (11x17) KLAUDER & COMPANY ARCHITECTS, INC. SOAR HANGAR MARCH 21, 2017 JOB# 1623 112 NORTH ELEVATION 3/32" = 1'--0" (22x34); 3/64" = 1'-0" {11x17) WEST ELEVATION 3132' = 1'-0" {22x34); 3/64" = 1'-0" {11x17) KLAUDER & COMPANY ARCHITECTS, INC. SOAR HANGAR MARCH 21, 2017 JOB# 1623 113 ~ © ,---------------------------------------------------------------------------------------____ !_ ---------------------------------------------------------------------------------------, : I ' ,----i-------------------------------------------------------------------------.!..._ -----------------------------------------------------------------------------, I ' ' ' ' ' ' ' ' ' ' ' I ! ' ' : I : i ' ' F ,____ I--!--------- ' -- ----=-if-_----+-a--t---~==~________,~ BUILDING SECTION 3/32' = 1·-0· (22x34); 3164" = 1'-0' (11x1 7) 12 ---------+---- -------1-------------------+--- ---------------- --------------+---------------------- BUILDING SECTION -ENLARGED 1/8' = 1'-0' {22x34 ); 1/16" = 1'-0" {1 1x1 7) ELEV.38'-7 1/2' $ T.O. RIDGE ELEV.31 '4" $ T .O. EAVE ELEV.0'-0' 1ST FLOOR TYPICAL ROOF ASSEMBLY 'A' ------------ 5" INSULATED METAL PANEL STEEL PURLINS STEEL BEAM I _ ---,/L------_c- ---~~--/'--~~---- TYPICAL WALL ASSEMBLY 'A' 4 ' INSULATED METAL PANEL STEEL GIRT STEEL COLUMN 4" CONCRETE SLAB W/ ----t-tt---1"--. THI CKENED EDGE, TYP WALL SECTION 112" = 1'-0' (22x34); 1/4' = 1'-0' {11x17) KLAUDER & COMPANY ARCHITECTS, INC. SOAR HANGAR MARCH 21, 2017 JOB# 1623 114 ~ ~ ELEV. 17'-9 1/4" "--_i T.O. RIDGE r ELEV.15'-0" r s T .0 . WALL BUILDING SECTION -ENLARGED 1/8" = 1'-0" (22x34); 1/16" = 1'-0" (11x17) ~ ~ I I : I ,,----.o..----~,I I I I I : I : I I I I : I : I I I I I i I I I I I I ! I I I I : I I BU ILD ING SECTION -ENLARGED 1/8" = 1'-0" (22x34); 1/16" = 1'-0" (11x1 7) 12 12 ~-- ELEV.35'-111 /2" T .0 . RIDGE ELEV.30'-111/2" $ ELEV.11 '-6" $ 2ND FLOOR ELEV.0'-0" $ 1ST FLOOR ELEV.35'-111/2" $ T .O . RIDGE ELEV.31 '-4" $ T .O. EAVE ELEV. 24'-0" $ T .O. WALL ELEV.11 '-6" $ 2 NDFLOOR ELEV.0'-0" $ 1STFLOOR TYPICAL ROOF ASSEMBLY 'B' ----~ METAL PANEL UNDERLAYMENT (1) LAYER 5/8" PLYWOOD SHEATH ING ROOF TRUSSES 18" FIBERGLASS BATT INSULATION IN TRUSS CAVITY VAPOR BARRIER (1) LAYER }'2" GYPSUM BOARD TYPICAL WALL ASSEMBLY 'B' ---t-E7'tt-- METAL PANEL MOISTURE BARRIER (1) LAYER 1/2 PLYWOOD SHEATHING 2x8 WOOD STUDS AT 16" O.C. FIBERGLASS BATT INSULATION VAPOR BARRIER (1) LAYER 5 /8" GYPSUM BOARD VINYL WINDOW, -------- TYP 4" CONCRETE SLAB W/ ----++-++--. TH ICKENED EDGE, TYP W AL L SECTI ON 112" = 1'-0" (22x34); 1/4" = 1'-0" (11 x17) KLAUDER & COM PAN Y AR C HITECT S , IN C . SOAR HANGAR MARCH 21 , 2017 JOB# 1623 115 116 KENAI CITY COUNCIL – REGULAR MEETING JULY 5, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR BRIAN GABRIEL, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on June 6, 2018, in City Hall Council Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Mayor Gabriel led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor Robert Molloy Henry Knackstedt Tim Navarre (telephonic) Jim Glendening Mike Boyle (absent) Glenese Pettey (absent) A quorum was present. Also in attendance were: Paul Ostrander, City Manager Jamie Heinz, City Clerk 3. Agenda Approval Mayor Gabriel noted the following modifications to the agenda: Add to item G.3. Non-Objection to Peninsula Botanicals Limited 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 Commerce and Visitor Center • Correction Memo • Corrected Special Use Permit 117 City of Kenai Council Meeting Page 2 of 7 July 5, 2018 MOTION: Council Member Molloy MOVED to approve the agenda with the requested revisions to the packet and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, the public hearing was closed. VOTE: There being no objections, SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS – None. C. UNSCHEDULED PUBLIC COMMENTS Neal DuPerron, Harbor Commission Member, spoke about the safety zones in the river noting he had been concerned the signs weren’t being installed as recommended but after talking to the manager had a better understanding and hoped the Commission would bring in more interested parties and users to the discussion and have another recommendation for 2019. D. PUBLIC HEARINGS 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) MOTION: Council Member Knackstedt MOVED to enact Ordinance No. 3033-2018 and Council Member Molloy SECONDED the motion. Mayor Gabriel opened the public hearing. There being no one wishing to be heard, public comment was closed. Appreciation was expressed for the planned road improvements in the City. 118 City of Kenai Council Meeting Page 3 of 7 July 5, 2018 VOTE: YEA: Molloy, Gabriel, Navarre, Glendening, Knackstedt NAY: MOTION PASSED UNANIMOUSLY. 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. MOTION: Council Member Molloy MOVED to adopt Resolution No. 2018-38 and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Administration clarified that the proposed fees were very close to the previous year’s costs. VOTE: There being no objections, SO ORDERED. 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) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-39 and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. 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) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-40 and requested UNANIMOUS CONSENT. Vice Mayor Navarre SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. 119 City of Kenai Council Meeting Page 4 of 7 July 5, 2018 The applicant was thanked for the business he’s done in Kenai in the past decades. VOTE: There being no objections, SO ORDERED. 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) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2018-41 and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was suggested the associated plat be reviewed before the City signed as suggestions had been made at the Platting Committee. Administration clarified the City had requested five waivers on the associated plat which were subsequently approved by the Platting Committee; further clarified the committee had noted several changes the surveyor needed to make to the plat. VOTE: There being no objections, SO ORDERED. E. MINUTES 1.*Regular Meeting of June 20, 2018 Approved by the consent agenda. F. UNFINISHED BUSINESS – None. G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. Approved by the consent agenda. 2. *Action/Approval – Purchase Orders over $15,000. Approved by the consent agenda. 3. *Action/Approval – Non-Objection to Limited Marijuana Cultivation Facility License Renewal for Peninsula Botanicals, License No. 12303. (City Clerk) Approved by the consent agenda. 120 City of Kenai Council Meeting Page 5 of 7 July 5, 2018 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) Introduced by the consent agenda and public hearing set for August 1, 2018. 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) MOTION: Council Member Molloy MOVED to approve a 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 and Council Member Knackstedt SECONDED the motion. Clarification was provided that the cabin was potentially owned by the Chamber of Commerce based on recording information from the 1970’s and the area used for Saturday Market did not need to be included in the permit only the location of the property where the cabin itself sat. It was further clarified that administration expected the situation between the Kenai Historical Society, Kenai Chamber of Commerce and Visitor Center, and the City to continue as it had been and the use of the building was for storage and office space. MOTION TO AMEND: Council Member Molloy MOVED to amend by substituting the corrected Special Use Permit provided in the laydown and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE ON THE AMENDMENT: There being no objections, SO ORDERED. UNANIMOUS CONSENT was requested on the main motion. VOTE ON THE MAIN MOTION: There being no objections, SO ORDERED. 6. Action/Approval – Amending an Employment Agreement between the City of Kenai and City Manager Paul Ostrander. (City Manager) MOTION: Council Member Knackstedt MOVED to amend the City Manager’s employment agreement and Council Member Molloy SECONDED the motion. MOTION TO AMEND: Council Member Molloy MOVED to amend the City Manager’s employment agreement by deleting the reference in Section 10 to KMC 23.40.030 (Annual Leave) and adding a new paragraph to Section 10 that reads: The Employee shall accrue leave at a rate of 10.1538 hours bi-weekly 121 City of Kenai Council Meeting Page 6 of 7 July 5, 2018 effective retroactively to January 1, 2018. Vice Mayor Navarre 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. H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – No report; next meeting August 9. 2. Airport Commission – No report; next meeting July 12. 3. Harbor Commission – No report; next meeting July 9. It was noted the Rules and Responsibilities Sub-committee met on June 26 and continued discussing Title 11 relative to tideland leasing. 4. Parks and Recreation Commission – No report; next meeting August 2. 5. Planning and Zoning Commission – It was reported that on June 27, the Commission reviewed a Conditional Use Permit for resource extraction which was not approved; next meeting July 25. 6. Beautification Committee – No report; next meeting September 10. 7. Mini-Grant Steering Committee – Next meeting July 6. I. REPORT OF THE MAYOR Mayor Gabriel reported on the following: • Delivered a Military Appreciation Proclamation at the Kenai Peninsula Air Fair; • Congratulated Allie Ostrander on her running accomplishments; • Attended the Fourth of July parade. J. ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: • Administration was completing preparations for the dipnet fishery; • The pending lessee backed out of the lease on the City Dock; City can operate cranes this year if needed; without interest from processors will be difficult to find a concessionaire; • Purchase and sales agreements for properties approved at previous meetings were progressing; more property lessees were interested in moving forward with purchasing; • Proposals for a new concessionaire for the restaurant space at the airport were due July 17; • No change in Bluff Erosion Project; communications ongoing. 122 City of Kenai Council Meeting Page 7 of 7 July 5, 2018 2. City Attorney – No report. 3. City Clerk – J. Heinz provided an update on the Dipnet Vendor pilot project noting there had been no applicants and planned on reverting to the former way of letting vendors operate; noted training for committees and commissions would be taking place over the next few months; reported nomination packets for City Council would be available on July 16. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) None. 2. Council Comments Council Member Molloy recognized Johna Beech and commended her work organizing the Fourth of July parade. Council Member Glendening attended and judged the Fourth of July parade; reported he attended an airport renovation committee meeting. Council Member Knackstedt noted an ordinance had been introduced which would repeal and replace the procedures for Special Assessment Districts, was not time sensitive, and may take several meetings to digest; also pointed out there is a flow chart included. Vice Mayor Navarre wished everyone a good July and hoped for a success fishing season. L. EXECUTIVE SESSION – None. M. PENDING ITEMS – None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 6:55 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of July 5, 2018. _____________________________ Jamie Heinz, CMC City Clerk 123 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: AUGUST 1, 2018 VENDOR DESCRIPTION PERS PERS HOMER ELECTRIC ELECTRIC USAGE INTEGRITY JANITORIAL JUNE SERVICE AT CITY HALL PRECIOUS JANITORIAL JUNE SERVICE AT LIBRARY PRECIOUS JANITORIAL JUNE SERVICE AT TERMINAL PRECIOUS JANITORIAL JUNE SERVICE AT POLICE PRECIOUS JANITORIAL JUNE SERVICE AT VISITOR CENTER INVESTMENTS VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT VARIOUS LIABILITY 84,643.55 VARIOUS UTILITIES 108,557.78 NON-DEPARTMENTAL REPAIR & MAINTENANCE 1,389.00 LIBRARY REPAIR & MAINTENANCE 2,795.00 AIRPORT REPAIR & MAINTENANCE 4,495.00 POLICE REPAIR & MAINTENANCE 978.00 VISITOR CENTER REPAIR & MAINTENANCE 928.00 MATURITY DATE AMOUNT Effect. Int. 124 PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: AUGUST 1, 2018 VENDOR GRANICUS DESCRIPTION FY19 MEETING STREAMING/ARCHIVING INCREASE OF EXISTING PURCHASE ORDER VENDOR DESCRIPTION FOSTER CONSTRUCTION C/0#1 DEPT. CLERK P.O. # -DEPT. 115744 -WATER ACCOUNT PROF SERVICES/SOFTWARE REASON REPLACE VALVES IN WOODLAND SUBDIVISION AMOUNT 1,405.78 AMOUNT 16,800.00 TOTAL PO AMT 19,205.78 125 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Jamie Heinz, City Clerk DATE: July 25, 2018 SUBJECT: Purchase Order Exceeding $15,000 - Granicus The purpose of this memo is to request support for a purchase order in the amount of $16,800 to Granicus, Inc. to provide software licensing and support for the recording and webcasting of City Council and Planning & Zoning Commission meetings and agenda management and eComment for City Council The annual agreement for this transparency suite provides the City unlimited updates and technical support. The addition of Peak Agenda Management and eComment in FY2018 increased the annual amount paid to Granicus by enough that the Purchase Order now exceeds $15,000. Your support is appreciated. 126 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin – Public Works Director DATE: July 24, 2018 SUBJECT: Purchase Orders over $15,000 The purpose of this memo is to request approval for an increase to Purchase Order No. 115744. The Original PO, approved at the June 6th Council Meeting, in the amount of $17,800.00 was for the replacement of two water main valves within the street at the intersection of Cypress and Alder roadways within the Woodland Subdivision. Upon excavation it was discovered one of the water mains thought to be 8” diameter piping, was actually 6”. As a result the 8” valve and parts that were on hand were replaced with a 6” valve and parts. Contractor was required to quickly gather the appropriate materials to complete the work the same day. The Public Works Department is requesting approval of Change Order 1 which will increase the Purchase Order Amount by $1,405.78, for a total revised cost of $19,205.78. This increase includes the purchase of new 6” materials, credit back for the 8” items that were returnable, the hours associated with gathering the new materials, and some incidental asphalt work. Thank you for your consideration. 127 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3035-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $2,057.58 IN THE GENERAL FUND – POLICE DEPARTMENT FOR STATE TRAFFIC GRANT OVERTIME EXPENDITURES. WHEREAS, the Kenai Police Department joins with other law enforcement agencies statewide to support Alaska Highway Safety Office (AHSO) traffic safety programs to reduce fatalities and injuries on roadways ; and, WHEREAS, AHSO traffic-related overtime funds require no local match and allow the department to provide specific traffic safety patrols; and, WHEREAS, actual AHSO overtime expenditures for traffic safety patrols totaled $2,057.58 from May 14, 2018 to June 3, 2018; and, WHEREAS, overtime for these additional traffic safety patrols was not budgeted and the department is requesting appropriation into the FY18 overtime budget eq ual to the amount of AHSO grant funding received. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the City Manager is authorized to accept these grant funds from the State of Alaska in the amount of $2,057.58 and to expend grant funds to fulfill the purpose and intent of this ordinance. Section 2. That the fiscal year 2018 estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues – State Grants - Police $2,057.58 Increase Appropriations – Police - Overtime $2,057.58 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. 128 Ordinance No. 3035-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. The appropriation and transfer shall be made effective June 30, 2018, and shall be considered an action of Fiscal year 2018. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of August, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Introduced: August 1, 2018 Enacted: August 15, 2018 Effective: August 15, 2018 129 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: David Ross, Police Chief DATE: July 16, 2018 SUBJECT: Ordinance No. 3035-2018 - Ordinance accepting and appropriating Alaska Highway Safety Office grant funds for Police Overtime ______________________________________________________________________ The Kenai Police Department continues to participate in traffic enforcement overtime patrols, reimbursed to the City of Kenai through a grant by the Alaska Highway Safety Office (AHSO). These overtime patrols were not budgeted in the FY18 budget. Actual overtime costs for traffic enforcement around the Memorial Day holiday; that qualifies for AHSO reimbursement, was $2,057.58. AHSO – overtime reimbursements are deposited into the general fund. I would respectfully request appropriation to the police overtime account for FY18. Thank you for your consideration 130 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3036-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A GRANT FROM THE STATE OF ALASKA FOR THE PURCHASE OF LIBRARY BOOKS. WHEREAS, the City of Kenai received a grant from the State of Alaska, Department of Education and Early Development for the purchase of library books; and, WHEREAS, it is in the best interest of the City of Kenai to appropriate these grant funds for the purpose intended. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the City Manager is authorized to accept a grant from the State of Alaska, Department of Education and Early Development in the amount of $7,000 for the purchase of library books and to execute grant agreements and to expend the grant funds to fulfill the purpose and intent of this ordinance. Section 2. That the estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues – Library – State Grants $7,000 Increase Appropriations – Library - Books $7,000 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. 131 Ordinance No. 3036-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of August, 2018. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Introduced: August 1, 2018 Enacted: August 15, 2018 Effective: August 15, 2018 132 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Jo Joiner DATE: July 16, 2018 SUBJECT: Ordinance 3036-2018 ____________________________________________________________________________ The library has been awarded the annual public library assistance grant by the Alaska State Library. As per the grant award, the amount of $7,000 is to be used for the purchase of books and should be deposited in account 001-440-4666. The library director completes an application each year in order to receive these funds. Certain minimum standards must be met in order to receive this grant. These include reporting requirements on expenditures and collection statistics, number of hours that the library is open to the public, minimum educational requirements for the Library Director and continuing education requirements Thank you for your consideration. 133 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary L. Bondurant – Airport Manager DATE: July 19, 2018 SUBJECT: Field of Flowers Signage Since October 2017, Airport Administration has been working at the direction of Airport Commission to provide designs for a sign that would be installed in the area of Lawton Acres known as the Field of Flowers. The sign should include the airport logo or wording “property of Kenai Municipal Airport”. At the July 12, 2018 Airport Commission meeting final comments were taken and the sign re- designed as attached. Airport Commission also asked Councilman Henry Knackstedt to present this to City Council at the August 1, 2018 meeting. Attachment 134 MEMORANDUM TO: Mayor Gabriel and Kenai City Council FROM: Henry Knackstedt, Councilor DATE: August 1, 2018 SUBJECT: Airport Commission Recommended Sign for the Field of Flowers At the request of the Airport Commission from the July 12, 2018 meeting, I request that Council provide direction to Administration to install the attached sign on Airport Property, commonly known as the Field of Flowers. The sign is to be 4’x8’ with printing on both sides, and is to be installed on 4x4 posts facing the Kenai Spur Highway near the electrical guy pole, roughly 100’ from the curb. The sign will be attached in such a way that it can be easily removed for winter, if desired. The Airport Commission has been working on the design of the sign in cooperation with Administration for nearly a year. An attractive sign will bring attention to the field from the highway, and shows that the field is a cooperative effort between the Airport and City of Kenai. The cost of the sign will be responsibility of the Airport. On behalf of the Airport Commission, I request your support for the sign. END OF MEMORANDUM 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / Fax: 907-283-3014 www.ci.kenai.ak.us 135 KENAI AIRPORT COMMISSION JULY 12, 2018 – 6:00 P.M. CITY HALL COUNCIL CHAMBERS CHAIR GLENDA FEEKEN, PRESIDING EXCERPT OF DRAFT MEETING SUMMARY Chair Feeken called the meeting to order at 6:01 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, City Clerk J. Heinz, Council Member H. Knackstedt A quorum was present. a. Agenda Approval MOTION: Commissioner Minelga MOVED to approve the agenda and Commissioner Zirul SECONDED the motion. There were no objections; SO ORDERED. 6. NEW BUSINESS a. Discussion – Field of Flowers Sign Update Airport Manager Bondurant noted several designs were submitted to City Administration and they met with Chair Feeken to discuss. Assistant Shinn provided all design options from past meetings. It was expressed that the Airport and City be recognized on the sign and not give the impression the Field of Flowers was a City park. Concern was expressed regarding the delay on the sign. Recommended changes to the sign were noted. MOTION: Commissioner Minelga MOVED to approve the arched sign design with the title “Field of Flowers” adjusted to an arched position on top of the sign, the inclusion of City of Kenai and Kenai Municipal Airport logos, and the addition of the sentence “Cooperative effort between Kenai Municipal Airport and City of Kenai” on the bottom of the sign. Commissioner Zirul SECONDED the motion. There were no objections; SO ORDERED. 136 Excerpt of City of Kenai Airport Commission Meeting Summary Page 2 of 2 July 12, 2018 MOTION: Commissioner Minelga MOVED to approve Councilor Knackstedt providing the corrected draft of the sign to City Council and Commissioner Zirul SECONDED the motion. There were no objections; SO ORDERED. I certify the above represents accurate excerpt of the draft meeting summary of the Kenai Airport Commission meeting of July 12, 2018. _____________________________ Jamie Heinz, CMC, City Clerk 137 138 MEMORANDUM TO: Mayor Gabriel and Kenai City Council FROM: Jim Glendening, Councilor DATE: August 1, 2018 SUBJECT: Airport Commission Recommended Sign for the Field of Flowers The issue of the field of flowers signage is scheduled for the 8-1-18 City Council meeting. I will not be able to attend. This attractive sign will be a grace note for the field of flowers presentation. It is a positive reinforcement for the City Council's budgetary commitment to this expensive, annual, beautification project. I am in full support of the Airport Commission's sign design, selection and placement. I urge my fellow Council members to support the Airport Commission's sign initiative for the field of flowers. 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / Fax: 907-283-3014 www.ci.kenai.ak.us 139 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: August 1, 2018 SUBJECT: Action/Approval – Memorandum of Agreement Between the Kenai Peninsula Borough and the City of Kenai for a Multi-Jurisdictional Team to Review Hazard Mitigation Plans ____________________________________________________________________________ The Kenai Peninsula Borough (KPB) has requested a Memorandum of Agreement between the KPB and the Municipalities of Homer, Kachemak, Kenai, Seldovia, Seward, and Soldotna for the purposes of providing representation and participation on a multi-jurisdictional hazard mitigation team to review plans affecting the KPB. Updates to the KPB Hazard Mitigation Plan (HMP) occur every five years. The KPB HMP adopts each City’s Local HMP by way of resolution. The Memorandum of Agreement is to ensure the multi-jurisdictional team assembled to update the KPB HMP has representation from the City of Kenai and accomplishes the following: • Monthly meetings to discuss updates and recommendations from the Federal Emergency Management Agency (FEMA) for the KPB HMP; • Meetings after the adoption of the KPB HMP to evaluate plan actions; • Cooperation and information-sharing to reduce costs and redundancies; • Agreement to complete the City of Kenai’s Local HMP in alignment with the KPB HMP timeline and in accordance with FEMA regulations; If the City Council approves this action, the City Manager would sign the Memorandum of Agreement between KPB and the City of Kenai. The City Planner would serve as the representative for the City of Kenai to provide input and coordinate Kenai’s Local HMP with the KPB HMP. The current timeline for updates to the KPB HMP and Kenai’s Local HMP are Fall and Winter of 2018, with plan adoption in summer of 2019. 140 Memorandum of Agreement between the Kenai Peninsula Borough and Municipalities of Homer, Kachemak, Kenai, Seldovia, Seward and Soldotna for the Purpose of Establishing a Multi-Jurisdictional Team to Review Hazard Mitigations Plans Affecting the Borough Page 1 of 8 MEMORANDUM OF AGREEMENT BETWEEN THE KENAI PENINSULA BOROUGH AND MUNICIPALIES OF HOMER, KACHEMAK, KENAI, SELDOVIA, SEWARD, AND SOLDOTNA FOR THE PURPOSE OF ESTABLISHING A MULTI-JURISDICTIONAL TEAM TO REVIEW HAZARD MITIGATION PLANS AFFECTING THE BOROUGH This Memorandum of Agreement (MOA) is by and between the Kenai Peninsula Borough, whose address is 144 North Binkley Street, Soldotna, AK 99669, hereinafter “Borough,” and the participating borough municipalities of Homer, Kachemak City, Kenai, Seldovia, Seward and Soldotna, hereinafter “Cities,” whose addresses are included on the signatory page below, for the purpose of providing representation and participation on a multi-jurisdictional review team for consistency and synchronized plan submission deadlines as described below. WHEREAS, the Borough updates the Hazard Mitigation Plan (HMP) every five years in accordance with the Title 44 Code of Federal Regulations Part 201.6 (hereinafter 44 CFR §201.6) and approved by the U.S. Department of Homeland Security, Federal Emergency Management Agency Region X (hereinafter FEMA); and WHEREAS, Local Hazard Mitigation Plans (LHMP) are specific to individual Cities’ hazards and mitigation projects; and WHEREAS, the LHMP process is completed in accordance with 44 CFR §201.6 and approved by FEMA; and WHEREAS, the Borough adopts each City’s LHMP by way of resolution to be included as annexes to the Borough HMP; NOW THEREFORE, the Borough and Cities agree to actively participate as members of a multi-jurisdictional review team to ensure the following outputs are completed: A. Members shall set up a monthly meeting schedule to update the HMP and annexes as well as complete changes as recommended throughout the state and FEMA review processes. B. The team will work together to review shared plan products, elements or mitigation actions as an effort to reduce costs, eliminate duplication or identified redundancy. C. The team shall establish deadlines for Cities to update their individual annex to the HMP. D. Cities electing to complete a LHMP agree to align their update process with the Borough’s timeline for the purpose of being a current annex of the HMP. 141 Memorandum of Agreement between the Kenai Peninsula Borough and Municipalities of Homer, Kachemak, Kenai, Seldovia, Seward and Soldotna for the Purpose of Establishing a Multi-Jurisdictional Team to Review Hazard Mitigations Plans Affecting the Borough Page 2 of 8 E. Each City agrees to complete its individual LHMP update based upon its local hazards and identified mitigation actions in accordance with FEMA regulations on or before the deadline as established by the review team. F. After the HMP has been approved by FEMA, the team will set up a regular meeting schedule continuing through the duration of the adopted HMP plan to evaluate plan actions, to complete shared mitigation projects affecting multi-jurisdictional boundaries and to prepare for the next update cycle. G. This MOA becomes effective upon the last date of signing, and shall continue from year to year for the purpose of completing annual action items as described in Sections A - F. This agreement must be amended in writing and signed by all parties. KENAI PENINSULA BOROUGH By:_________________________________ Charlie Pierce, Mayor Approved as to Form and Legal Sufficiency: (Borough Seal) Colette Thompson, Borough Attorney The foregoing instrument was acknowledged before me this ___ day of , 2018, by Charlie Pierce, Mayor of the Kenai Peninsula Borough, an Alaska municipal corporation, on behalf of the Kenai Peninsula Borough. ___________________________________ NOTARY PUBLIC for State of Alaska My Commission Expires: ____________ (Notary Seal) STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) 142 Memorandum of Agreement between the Kenai Peninsula Borough and Municipalities of Homer, Kachemak, Kenai, Seldovia, Seward and Soldotna for the Purpose of Establishing a Multi-Jurisdictional Team to Review Hazard Mitigations Plans Affecting the Borough Page 3 of 8 CITY OF HOMER By:_________________________________ Katie Koester, City Manager The foregoing instrument was acknowledged before me this ___ day of , 2018, by Katie Koester, Manager of the City of Homer, an Alaska municipal corporation, on behalf of the corporation. ___________________________________ NOTARY PUBLIC for State of Alaska My Commission Expires: ____________ (Notary Seal) STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) 143 Memorandum of Agreement between the Kenai Peninsula Borough and Municipalities of Homer, Kachemak, Kenai, Seldovia, Seward and Soldotna for the Purpose of Establishing a Multi-Jurisdictional Team to Review Hazard Mitigations Plans Affecting the Borough Page 4 of 8 CITY OF KACHEMAK By:_________________________________ William Overway, Mayor The foregoing instrument was acknowledged before me this ___ day of , 2018, by William Overway, Mayor of the City of Kachemak, an Alaska municipal corporation, on behalf of the corporation. ___________________________________ NOTARY PUBLIC for State of Alaska My Commission Expires: ____________ (Notary Seal) STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) 144 Memorandum of Agreement between the Kenai Peninsula Borough and Municipalities of Homer, Kachemak, Kenai, Seldovia, Seward and Soldotna for the Purpose of Establishing a Multi-Jurisdictional Team to Review Hazard Mitigations Plans Affecting the Borough Page 5 of 8 CITY OF KENAI By:_________________________________ Paul Ostrander, City Manager The foregoing instrument was acknowledged before me this ___ day of , 2018, by Paul Ostrander, Manager of the City of Kenai, an Alaska municipal corporation, on behalf of the corporation. ___________________________________ NOTARY PUBLIC for State of Alaska My Commission Expires: ____________ (Notary Seal) STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) 145 Memorandum of Agreement between the Kenai Peninsula Borough and Municipalities of Homer, Kachemak, Kenai, Seldovia, Seward and Soldotna for the Purpose of Establishing a Multi-Jurisdictional Team to Review Hazard Mitigations Plans Affecting the Borough Page 6 of 8 CITY OF SELDOVIA By:_________________________________ Cassidi Little, City Manager The foregoing instrument was acknowledged before me this ___ day of , 2018, by Cassidi Little, Manager of the City of Seldovia, an Alaska municipal corporation, on behalf of the corporation. ___________________________________ NOTARY PUBLIC for State of Alaska My Commission Expires: ____________ (Notary Seal) STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) 146 Memorandum of Agreement between the Kenai Peninsula Borough and Municipalities of Homer, Kachemak, Kenai, Seldovia, Seward and Soldotna for the Purpose of Establishing a Multi-Jurisdictional Team to Review Hazard Mitigations Plans Affecting the Borough Page 7 of 8 CITY OF SEWARD By:_________________________________ James Hunt, City Manager The foregoing instrument was acknowledged before me this ___ day of , 2018, by James Hunt, Manager of the City of Seward, an Alaska municipal corporation, on behalf of the corporation. ___________________________________ NOTARY PUBLIC for State of Alaska My Commission Expires: ____________ (Notary Seal) STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) 147 Memorandum of Agreement between the Kenai Peninsula Borough and Municipalities of Homer, Kachemak, Kenai, Seldovia, Seward and Soldotna for the Purpose of Establishing a Multi-Jurisdictional Team to Review Hazard Mitigations Plans Affecting the Borough Page 8 of 8 CITY OF SOLDOTNA By:_________________________________ Stephanie Queen, City Manager The foregoing instrument was acknowledged before me this ___ day of , 2018, by Stephanie Queen, Manager of the City of Soldotna, an Alaska municipal corporation, on behalf of the corporation. ___________________________________ NOTARY PUBLIC for State of Alaska My Commission Expires: ____________ (Notary Seal) STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) 148 KENAI AIRPORT COMMISSION REGULAR MEETING JULY 12, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS CHAIR GLENDA FEEKEN, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Feeken called the meeting to order at 6:01 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, City Clerk J. Heinz, Council Member H. Knackstedt A quorum was present. c. Agenda Approval MOTION: Commissioner Minelga MOVED to approve the agenda and Commissioner Zirul SECONDED the motion. There were no objections; SO ORDERED. 2. SCHEDULED PUBLIC COMMENT – None. 3. UNSCHEDULED PUBLIC COMMENT – None. 4. APPROVAL OF MEETING SUMMARY a. May 10, 2018 MOTION: Commissioner Pitts MOVED to approve the meeting summary of May 10, 2018 and Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED. b. June 14, 2018 149 Airport Commission July 12, 2018 Page 2 of 3 MOTION: Commissioner Pitts MOVED to approve the meeting summary of June 14, 2018 and Commissioner Zirul SECONDED the motion. There were no objections; SO ORDERED. 5. UNFINISHED BUSINESS a. Discussion – Field of Flowers Sign Update Airport Manager Bondurant noted several designs were submitted to City Administration and they met with Chair Feeken to discuss. Assistant Shinn provided all design options from past meetings. It was expressed that the Airport and City be recognized on the sign and not give the impression the Field of Flowers was a City park. Concern was expressed regarding the delay on the sign. Recommended changes to the sign were noted. MOTION: Commissioner Minelga MOVED to approve the arched sign design with the title “Field of Flowers” adjusted to an arched position on top of the sign, the inclusion of City of Kenai and Kenai Municipal Airport logos, and the addition of the sentence “Cooperative effort between Kenai Municipal Airport and City of Kenai” on the bottom of the sign. Commissioner Zirul SECONDED the motion. There were no objections; SO ORDERED. MOTION: Commissioner Minelga MOVED to approve Councilor Knackstedt providing the corrected draft of the sign to City Council and Commissioner Zirul SECONDED the motion. There were no objections; SO ORDERED. b. Discussion – FY19 Budget The Commission discussed the FY2019 Budget; it was clarified the airport budget provided portions of salaries for firefighters and certain staff in Administration. 6. NEW BUSINESS a. Parliamentary Procedures and Open Meetings Act Training City Clerk Heinz discussed proper parliamentary procedures and the Open Meetings Act. b. Action/Approval – Airport Reserve Land Lease Application for property located at 209 N. Willow Street, Kenai, Alaska 99611; further described as a portion of Tract A, General Aviation Apron No. 2, submitted by SOAR International Ministries, Inc., 135 Granite Point Court, Kenai, AK 99611 It was noted that SOAR International Ministries submitted an application to develop the lot at the south end of the Airport terminal. Airport Manager Bondurant clarified that this would not affect 150 Airport Commission July 12, 2018 Page 3 of 3 any future developments of the Airport terminal and that she supported approval of the application. Commissioners expressed support of this development. MOTION: Commissioner Pitts MOVED to approve the SOAR land lease application and Commissioner Bielefeld SECONDED the motion. There were no objections; SO ORDERED. 7. REPORTS a. Airport Manager – Bondurant reported that her priority and focus was obtaining funding for the terminal rehabilitation project and discussed the plan to be ready beginning August 31. She further reported on the following: • A Request for Proposals (RFP) was posted for a restaurant concessionaire and she hoped to have it operational August 2; • TSA had a set directive that Kenai could potentially start badging effective July 25; and • The Terminal Design Committee met twice. b. City Council Liaison – Knackstedt reported on the June 6, June 20 and July 5 City Council meeting actions. 8. NEXT MEETING ATTENDANCE NOTIFICATION – August 9, 2018 9. COMMISSIONER COMMENTS AND QUESTIONS Commissioner Minelga expressed a want for bumpers (tires) all along the float plane dock. 10. ADDITIONAL PUBLIC COMMENT – None. 11. INFORMATION ITEMS a. May 2018 Airport Managers Report b. Float Plane Basin Activity 2018 c. Thank you from Ninilchik High School d. Special Use Permit to Alaska Air Fuel e. Special Use Permit to HDL Engineering f. Special Use Permit to Reddi Towing 12. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 7:38 p.m. Meeting summary prepared and submitted by: ___________________________________ Jacquelyn Kennedy Deputy City Clerk 151 KENAI HARBOR COMMISSION SUB-COMMITTEE JUNE 26, 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 6:00 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, 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. UNSCHEDULED PUBLIC COMMENT – None. 4. APPROVAL OF MEETING SUMMARY a. June 12, 2018 MOTION: Commissioner Crandall MOVED to approve the meeting summary of June 12, 2018 and Commissioner Dunn SECONDED the motion. There were no objections; SO ORDERED. 5. UNFINISHED BUSINESS a. Discussion – Finalize Review of Kenai Municipal Code Title 11 152 ____________________________________________________________________________________ Harbor Sub-Committee Meeting Page 2 of 2 June 26, 2018 Commissioners reviewed Kenai Municipal Code (KMC) Title 11, Chapter 11.20 Leasing of Tidelands to determine specific sections and its definitions applicable to the Harbor Commission. Suggestions were discussed and noted. 6. NEW BUSINESS a. Discussion – Review of Kenai Municipal Code Chapter 1.90 This item was moved for review and discussion at the next meeting. b. Discussion – Identification of Harbor Commission Duties and Responsibilities This item was moved for review and discussion at the next meeting. 7. DISCUSS PURPOSE OF NEXT MEETING It was noted that the purpose of the next meeting was to discuss agenda items 6a and 6b thoroughly. 8. SET NEXT MEETING / ATTENDANCE NOTIFICATION – August 7, 2018 9. ADDITIONAL PUBLIC COMMENTS – None. 10. MEMBER COMMENTS AND QUESTIONS Commissioners discussed wake signage and asked to add it as a discussion item on the next Harbor Commission meeting agenda. Commissioners DuPerron and Dunn noted they would possibly be providing public comment at the July 5 City Council meeting. Commissioner DuPerron provided flyers for commercial land for sale and requested it be included in the next Harbor Commission meeting packet. 11. ADJOURNMENT There being no further business before the Sub-Committee, the meeting was adjourned at 7:24 p.m. Meeting summary prepared and submitted by: _____________________________________ Jacquelyn Kennedy Deputy City Clerk 153 KENAI PLANNING & ZONING COMMISSION REGULAR MEETING JUNE 27, 2018 – 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVENUE, KENAI, ALASKA CHAIR JEFF TWAIT, PRESIDING MINUTES 1. CALL TO ORDER Commission Chair Twait called the meeting to order at 7:00 p.m. a. Pledge of Allegiance Commission Chair Twait led those assembled in the Pledge of the Allegiance. b. Roll Call Commissioners present: Chair J. Twait, Vice-Chair R. Springer, D. Fikes, K. Peterson, G. Greenberg, V. Askin Commissioners absent: J. Halstead Staff/Council Liaison present: City Manager P. Ostrander, City Attorney S. Bloom, City Clerk J. Heinz, City Planner E. Appleby, Deputy City Clerk J. Kennedy, Planning Assistant W. Anderson, Council Liaison H. Knackstedt A quorum was present. c. Agenda Approval Commissioner Peterson noted the following addition to the packet: Add: 6(a) Letter of Opposition – Allison Gottesman Letter of Opposition – Kenai Soil & Water Conservation District Letter of Opposition – Bruce Richards and Shanda Hall MOTION: Commissioner Peterson MOVED to approve the agenda with the addition of laydown items for 6(a) and Commissioner Askin SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Peterson MOVED to approve the consent agenda and Commissioner Greenberg SECONDED the motion. There were no objections; SO ORDERED. 154 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 2 of 11 June 27, 2018 *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. e. *Excused absences – None 2. *APPROVAL OF MINUTES: June 13, 2018 The minutes were approved by the Consent Agenda. 3. SCHEDULED PUBLIC COMMENT: (10 minutes) None scheduled. 4. UNSCHEDULED PUBLIC COMMENT: (3 minutes) None. 5. CONSIDERATION OF PLATS – None. 6. PUBLIC HEARINGS a. Resolution PZ17-30 – Application for a Conditional Use Permit for Extraction of Natural Resources submitted by Lavern Davidhizar for the property located at 4905 Silver Salmon Dr., and further described as a portion of Government Lots 1 and 9, and a portion of the NE ¼ of Section 7, Township 5 North, Range 10 West lying West of Spur Highway and East of the Kenai River (Kenai Borough Parcel No. 04937136 City Planner Appleby reviewed the staff report and noted the history of the application process. Appleby noted that of eleven requirements, one does not apply to this application as the City ordinance requirement change went into effect after the application was submitted. Appleby reviewed the ten requirements for approval of the application. Appleby reported that staff recommended the Planning and Zoning Commission deny Resolution PZ17-30 application for a conditional use permit for surface extraction of natural resources. Denial was recommended on the basis that the application did not meet requirements for screening, access impacts, compatibility with zoning code and the Comprehensive Plan, did not outweigh detrimental impacts to neighboring properties, and was a risk to public welfare. She added that the applicant did not contact the Alaska Department of Transportation to check for compliance with their permitting processes and regulations, as requested by the Planning and Zoning Commission. Appleby summarized the ten requirements and noted the applicant met two of the requirements, one was undetermined, and seven were not met. She added the application did not follow State of Alaska requirements of gravel and rock extraction. Jason Foster, on Lavern Davidhizar’s behalf noted the application was not for a gravel pit and that a gravel pit included machinery, continuous work, sales of surface and subsurface aggregates, Storm Water Pollution Prevention Plans, etc. He clarified that the purpose was to extract gravel to make a body of water, similar to Ames Avenue and Angler Drive. He noted that currently there was a swamp on the property and Mr. Davidhizer wanted to make it a body of water with the work taking place this winter only, and not continuing afterwards as a gravel pit. Mr. Foster clarified that a barrier fence would be put up during the work, even if it was not in the 155 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 3 of 11 June 27, 2018 application as it was the normal practice and the intent. He added that the conditions required to do the work would be met. Mr. Foster noted that he would not be helping Mr. Davidhizer in this project if it was for the purpose of a gravel pit as it would be in competition with his gravel pit company. He clarified the purpose would be a one-time, over a period of two months in the winter, gravel extraction to fill Mr. Davidhizer’s other properties off-site and make a lake from the current wetlands on the property, which would have more curb appeal to the property owner versus a swamp. He offered to answer questions about the use of the gravel and the process. He noted that the yield of gravel as noted in the application was not accurate and that the boundaries were estimated. Mr. Foster reiterated that it would not be operated as a gravel pit at all. MOTION: Commissioner Greenberg MOVED to adopt Resolution No. PZ17-30 and Commissioner Peterson SECONDED the motion. Chair Twait opened the floor for public testimony. Bruce Richards spoke in opposition based on the code that governed the process. Focused on the requirements of the conditional use permit, he was pleased with the staff report and recommendation to deny the permit. Joe Connors, Vice-Chair of the Kenai River Special Management Advisory (KRSMA) Board spoke in opposition of the conditional use permit because of the possible adverse impacts and affects it would have on the Kenai River. He noted the potential for ponds becoming part of the Kenai River through erosion, flooding and river natural realignment had not been accorded any weight. Mr. Connors provided a letter by the President of the KRSMA Board reiterating the Board’s opposition of the conditional use permit. Ron Lazenby spoke in opposition of the conditional use permit and agreed with the staff report. He further noted that other people would have a lot to lose with a gravel extraction site in the area. Alison Gottesman submitted a letter on June 25 in opposition of the conditional use permit. She concurred with the staff report and denial of the application. She noted that a pond, gravel pit or anything similar would have a serious negative impact. James Nelson spoke in opposition of the conditional use permit. He noted that he owned two properties, similar homes, with equal value, and proximity to the Kenai River, with nothing between the homes except wilderness and other homes. The project would lower the properties values, he noted it unnecessary to develop an unnatural pond, and the trucks extracting the gravel would be a disruption to the community. Christine Hutchison spoke in opposition of the application, clarifying that the Kenai River is an anadromous river and it would be a grievous mistake to approve the permit. Dwight Kramer spoke in opposition of the application and commented on habitat quality. He noted that in looking at the effects of various developments in wetland areas, the effects would be unknown until later in time. He added that it was unknown what could happen long-term to the Kenai River if this was approved, and it was not worth the potential effects. Jack Sinclair, Executive Director of the Kenai Watershed Forum spoke in opposition of the application. He noted appreciation of the Commission packet and the thorough information 156 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 4 of 11 June 27, 2018 provided. He spoke on various projects done and noted the importance of the wetlands, the nutrients produced and its flood protection. He reiterated that the property was a high value wetland and a necessity. Marcus Mueller spoke in opposition of the application, noting his property was at the end of the channel to this property. He commented on flood plains and backwater channel, specifically noting his property by the River was the largest salmon rearing backwater channel. He noted the concern of the channel was avulsion. Tim McIntyre spoke in opposition of the conditional use permit, noting his agreeance with the staff report. Mr. McIntyre commented on the opening of a potential half-mile long “pond’ at the base of the bluff, could channel the Kenai River toward that bluff and cause erosion to occur, altering the flow of the river with long term affects. He noted the significant noise pollution with a gravel pit in a residential area and indicated the absence of a specific reclamation plan nor adequate financial restitution available if the project did not go as planned. Laura Rhyner, representative of Cook Inlet Keeper spoke in opposition of the application. She noted by the public presence at the meeting, the residents of Kenai greatly support the protection of the Kenai River. She added that baby salmon are reared in wetlands and it allows continual return each year. Ms. Rhyner noted there was a gap in the process though and advised it be addressed. She referenced the Alaska Department of Fish and Game, Army Corps of Engineers, and the Kenai Comprehensive Plan. She also noted that the flood plain of the Kenai River was not a suitable place for gravel extraction. Kathy Heus thanked the commissioners and City Planner for their service, and spoke in opposition of the application. She noted the Kenai River was too valuable to risk on the proposed development. She agreed with the staff report where the applicant did not meet several of the requirements. Ms. Heus further noted the applicant had sufficient time to follow through with what was requested and required for the conditional use permit but did not. John Hammilman spoke in opposition of the application. He noted it would be more acceptable if the project was as described by Mr. Foster as a partial one-winter, smaller project. He commented on how the application does not reflect the same figures in amount of gravel and size of pond, or the timeframe. He added that would be a significant amount of water removed from wetlands only to make a pond. It would result in chemical changes and characteristics that would be a significant negative impact. Sarah Vahalla spoke in opposition of the conditional use permit. She noted it was too high of risk on the flood plains, referencing the Anchor River as an example. The river was listed as impaired and it would increase turbidity and any other chemical change. She added that the Kenai River was too high of value and this project would destroy the Kenai River habitat. Dale Sandahl spoke in opposition of the application. He noted he had lived in that neighborhood for 20 years. He commented that City Planner Appleby addressed his concerns and answered his questions. Mr. Sandahl noted that this was about protecting the river. He held up a Kenai magazine and referenced an article by Mayor Gabriel regarding the relationship of past to present, historical references and over fifty percent of the magazine was about the “national treasure” of the Kenai River. Mr. Sandahl also held up a Soldotna magazine, noting it labeled the Kenai River as a “hot spot” for fishing. He further referenced the Kenai Comprehensive Plan and noted that this property was part of the tidelands. Mr. Sandahl expressed appreciation of the representatives of the State, Borough, local cities and the community in attendance to this meeting. 157 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 5 of 11 June 27, 2018 Kaitlyn Vodla, City of Soldotna Planning and Zoning Commissioner, spoke in opposition of the application. She noted characteristics of the Kenai River and the unknown negative impacts it would have. She advised the Commission to write a resolution to City Council to revisit the gravel extraction Ordinance to better this process. She added that the City of Soldotna had an overlay of 100 feet. There being no one else wishing to be heard, Chair Twait closed public comment. On behalf of Mr. Davidhizer, Mr. Foster noted he respects the desire to protect the Kenai River and that this was not an issue of protection; further clarified the distance between the river and the project was 300 feet. He agreed that as a resident he would not want anything to obstruct that view and clarified that a pond would not do that. He stated there were septic systems and wells within 300 feet of the river, which would have more of an impact if more homes were developed instead. He agreed that Mr. Davidhizer should have had an engineer to provide reassuring specifics versus the broad details or plans as currently in the application. Mr. Foster asked if the material did not leave the site if a conditional use permit was required. City Planner Appleby clarified that a conditional use permit would not be required. Mr. Foster noted the request for historical data of the negative impacts with tidal concerns because he believed it as a non-issue. He added that he thought the figure of 500,000 cubic yards was a miscalculation. He clarified that his company, North Star Paving, would not be doing the work, as it was unionized and had expensive costs. He was asked individually to oversee the project noting Mr. Davidhizer bought the property from Mr. Foster’s parents. He clarified that Mr. Davidhizer wanted to extract gravel to bring to his other properties. He added that he believed it would be a valid project, over one winter period, a small circular lake, and it would not affect the wetland close to the river. He clarified the soil under the top two feet would not be frozen and the overburden would stay on-site and spread around. Mr. Foster clarified that this was a reclamation project as it would be taking a swamp and turning it into a pond; shaping it to make it safe for animals entering and exiting it. MOTION TO AMEND: Commissioner Greenberg MOVED to amend to make findings for the ten criteria and Commissioner Peterson SECONDED the motion. There were no objections; the ten criteria would be discussed individually. Chair Twait noted Criteria No. 1 stated the application was in substantial compliance with the requirements of Kenai Municipal Code Section 14.20.154. It was noted staff found this application was not in substantial compliance with the requirements of this chapter. The applicant has not demonstrated the proposed use meets the requirements for boundaries of the proposed extraction, buffer strips and screening, back slopes, or fencing. Some required criteria were not possible to evaluate without guessing because the application neglected to provide detailed information despite the direction of the Planning and Zoning Commission and additional time given to the applicant. MOTION TO AMEND: Commissioner Greenberg MOVED to amend that the application was not in substantial compliance with the Kenai Municipal Code and adopt the City Planner’s recommendation; Commissioner Askin SECONDED. There were no objections; SO ORDERED. 158 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 6 of 11 June 27, 2018 It was noted the City Planner did a comprehensive job on the findings and there was agreement with the applicant’s representative that the application was vague. Chair Twait noted Criteria No. 2 stated the boundaries of the proposed excavation at its greatest dimensions, including back slopes, are at least two hundred feet (200') from any road or public right-of-way and at least one hundred fifty feet (150') from other surrounding property lines, except that adjoining permitted surface extraction of natural resources sites are not required to maintain the above one hundred fifty feet (150') excavation between sites. It was noted staff found the application did not denote exact dimensions. Using the May 2018 paper map submitted by the applicant containing outlines of the gravel pits and a ruler, the boundaries of the proposed excavation and the distance from other surrounding property lines and roads could be estimated. Assuming one inch equaled 86.957 feet (calculated from the scale bar showing 11.5 inches equals 1,000 feet), the proposed gravel pits are approximately 530 feet from Silver Salmon Drive, 108 feet and 130 feet from property lines to the south and north, approximately 240 feet from the Kenai River to the west, and approximately 195 feet from residential properties to the east. Using these numbers, the proposed use did not meet the property line boundaries required by KMC 14.20.154(a)(2). MOTION TO AMEND: Commissioner Greenberg MOVED to amend by adopting staff findings for Criteria No. 2; Commissioner Peterson SECONDED. There were no objections; SO ORDERED. Chair Twait noted Criteria No. 3 stated the buffer strips between the excavation site and roadways and property lines contain sufficient natural screening to obscure the entire excavation from sight of roadways and inhabited areas. If there is not sufficient natural screening, the site plan must provide for artificial screening. It was noted staff found, the applicant stated, “the site cannot be seen from Silver Salmon Drive” and “there will be trees on all sides of the pond after project completed…the area will continue to be remote wilderness”. KMC 14.20.154(a)(3) stated there must be sufficient natural screening to obscure the entire excavation from the site of roadways and inhabited areas. The neighboring properties of the subject property were not remote wilderness, zoned residential and contained homes. Several residences on two different streets directly overlooked the site of the proposed excavation from a higher elevation. Even if all trees surrounding the pond were left in place and the applicant successfully used an ice road, these residences would still directly overlook the excavation. Since there was not sufficient natural screening, KMC 14.20.154(a)(3) stated there must be artificial screening. The application provided for no artificial screening or fencing, and does not meet this requirement. MOTION TO AMEND: Commissioner Greenberg MOVED to amend Criteria No. 3 finding that it did not contain sufficient natural screening from roadways and inhabited areas; Commissioner Askin SECONDED. There were no objections; SO ORDERED. Chair Twait noted Criteria No. 4 stated the site plan provides that back slopes be a minimum of a 2:1 slope, except for the contiguous working face. It was noted staff found, the application had a line reading, “the pond will be a 2:1 slope or greater” as part of a description of the proposed use. 159 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 7 of 11 June 27, 2018 The site plan provided with the application contained no post-extraction contours or any detail of where extracted material would be stored, other than it would be hauled off-site. There is not a site plan showing grading or proposed reclamation slopes to verify this requirement. MOTION TO AMEND: Commissioner Greenberg MOVED to amend by adopting the staff findings for Criteria No. 4 and Commissioner Springer SECONDED. There were no objections; SO ORDERED. Chair Twait noted Criteria No. 5 stated the site plan does not provide for excavation below the water table except where a reasonable method of drainage is available at the particular site or where the proposed future development plan provides for a lake on the site of the excavation. It was noted staff found, the June 12, 2018 Site Investigation Report noted the “groundwater table was generally encountered within a half foot of the surface in proposed pond areas”. The application did not discuss any methods of drainage on the site. The application proposed to form two ponds as a result of the excavation and therefore met this requirement. MOTION TO AMEND: Commissioner Greenberg MOVED to amend by adopting staff findings for Criteria No. 5 and Commissioner Peterson SECONDED. There were no objections; SO ORDERED. Chair Twait noted Criteria No. 6 stated if the excavation was to be below the water table and the site was likely to endanger the public safety, the site plan shall provide for fencing of the work area. It was noted staff found the applicant stated no fencing would be needed and that a gate would block the private driveway. Due to their proximity to homes and the Pillars Boat Launch, a person from the boat launch or nearby residence could easily access the pit and work area without a fence or other safety barrier. Staff also found the applicant proposed to only extract gravel in the winter when the ground was frozen using an ice road and to only drive on the area to be extracted. This plan is not realistic. Ice roads are used rarely on the Kenai Peninsula. When Peak Oilfield Service Company built a three-mile ice road for NordAq Energy Incorporated to conduct exploratory drilling within the Kenai National Wildlife Refuge during the single winter season of 2010-2011, special equipment and plans were necessary. This included plans to use equipment to drive the frost level deeper and earlier, interlocking steel rig mats, water and ice chips, snowmakers, and contingencies for warmer weather. Using the paper map submitted by the applicant and a ruler, the proposed width of the ponds are approximately 0.21 miles and 0.1 miles. While the applicant’s ice roads would be much shorter than the three-mile ice road referenced, it is still unrealistic to propose ice roads for the climate of the Kenai Peninsula with no contingencies or plans for warmer weather. If the ice roads were not stable, the underlying wetlands could be damaged, and the land could become deeply rutted and prone to erosion. The applicant proposed to work long hours to finish the work within three years. Without specific hours of operation, it was not possible to determine if the activity is compatible as a use within the RR zone adjacent to residences. MOTION TO AMEND: Commissioner Greenberg MOVED to amend by including comments of the City Planner as a finding to Criteria No. 6 and Commissioner Peterson SECONDED. There were no objections; SO 160 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 8 of 11 June 27, 2018 ORDERED. Chair Twait noted Criteria No. 7 stated the proposed use of land after extraction is completed, is feasible and realistic, and is a use permitted in the zone in which the property is located. It was noted staff found the property under consideration was within the Rural Residential (RR) Zone. The Land Use Table allowed surface extraction of natural resources in the RR Zone with an approved conditional use permit. Permits may be granted if the proposed use would be compatible with the surroundings and the conditions and requirements were met. The June 12, 2018 Site Investigation Report stated the area “can be developed as shallow ponds”. The applicant’s proposed use was not accurately described as shallow ponds. The proposed use was gravel pits to be excavated to a maximum depth of 20 feet of encompassing approximately 13 acres. It is misleading to refer to the proposed conditional use as solely to build small ponds. The Kenai River Center did not have jurisdiction over the proposed use because it is outside of the 50-foot River Habitat buffer. However, the River Center raised concerns for the ponds and surrounding lowlands to become inundated and have significant erosion in the event of a flood. The ponds would be approximately 240 feet from the Kenai River based upon paper calculations with a ruler from the map submitted by the applicant. In 2002, a six-acre abandoned gravel mine abandoned in 2000 and developed within 100 feet of the South Fork of the Anchor River was captured by the river. This had detrimental impacts to fish in the river. The U.S. Fish and Wildlife Service paid for the Anchor River to be restored. However, avoiding the capture of the gravel mines would have been less expensive and provided better fish habitat. Because of the proximity of the extraction to the Kenai River and the possibility for the Kenai River to capture the two proposed ponds and adversely affect the salmon fishery, the proposed use poses an unreasonable risk for the City of Kenai with potential effects far outside of the neighborhood of the proposed use. MOTION TO AMEND: Commissioner Springer MOVED to amend by adopting the staff findings for Criteria No. 7 and Commissioner Greenberg SECONDED. There were no objections; SO ORDERED. It was noted, through testimony of the community, there was agreement with the City Planner’s findings and that Joe Richards, KRSMA Board, was a great influence in helping understand the intent of application and the impacts to the area. Chair Twait noted Criteria No. 8 stated the extraction does not destroy the land for the purposes for which it is zoned. It was noted staff found properties adjacent to the subject property were also in the RR Zone. To the west of the subject property is the Kenai River. Silver Salmon Drive and the Kenai Spur Highway border the northern extension and eastern edge of the property. See findings under 14.20.154(a)(7) for concerns about potential river capture, erosion, fisheries risks, and damage to wetlands. MOTION TO AMEND: Commissioner Springer MOVED to amend Criteria No. 8 by adopting staff findings relating to river capture, erosion, fisheries at risk and damage to wetlands; Commissioner Askin SECONDED. There were no objections; SO ORDERED. 161 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 9 of 11 June 27, 2018 Chair Twait noted Criteria No. 9 stated the need for the particular natural resource within the City of Kenai outweighs any detrimental effects the operation may have on surrounding property owners. It was noted staff found, gravel pits and other surface extraction may be compatible uses within the RR Zone, provided the applicant has plans to address screening, operating hours, post- extractive use, and truck/machinery traffic. This application did not address any of those items. Without any plans to mitigate the impact of a gravel pit on a residential neighborhood, this proposed use would have detrimental effects on surrounding property owners. Surrounding homes looked directly over the site of the proposed surface extraction. The quality of life in the neighborhood would be affected by noise, traffic, and views. The character of the neighborhood would be greatly impacted by this use during operation. After the extraction, there were no plans for future site development and the site would not be backfilled. The water table was very close to the surface, so the gravel pits would fill with water even while extraction was taking place. The applicant did not described any plans for drainage or diverting water. There was a risk of the Kenai River capturing the two ponds and the applicant did not follow State of Alaska Best Management Practices for surface material extraction. There were several other gravel pits operating within the City of Kenai. More suitable locations for surface extraction in Kenai were available away from water bodies and could more easily include mitigating measures for neighbors, such as screening. The applicant did not identify a need within the City of Kenai for the resource. The test probes also indicated the resource on the subject property was of uncertain quality and quantity. The proposed use constituted an unreasonable risk to the City of Kenai, and the risk did not outweigh the needs for the resource with the City. MOTION TO AMEND: Commissioner Springer MOVED to amend by adopting staff findings for Criteria No. 9 and Commissioner Askin SECONDED. There were no objections; SO ORDERED. It was pointed out that the applicant’s representative testified the applicant did not have a reclamation plan or any plans of a noise mitigation plan in the residential area. Chair Twait noted Criteria No. 10 states the applicant is the owner of the subject property, and, according to the staff report, staff has found the applicant is the owner of the subject property. MOTION TO AMEND: Springer MOVED to amend by adopting staff findings for Criteria No. 10 and Commissioner Peterson SECONDED. There were no objections; SO ORDERED. Commissioner Peterson thanked Mr. Foster for the information and answering questions, and thanked the audience for the civility of tonight’s meeting. He noted he would not be voting in favor of the conditional use permit. Commissioner Springer agreed with Peterson and noted with all information provided and public testimony, he would not be voting in favor. Commissioner Greenberg noted this hinged on the Site Plan, Kenai Peninsula Borough parcel viewer, and given the findings of staff, he would not be voting in favor. 162 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 10 of 11 June 27, 2018 Commissioner Askin thanked Mr. Foster for the information and all the residents that provided their information and opinion. Askin noted that she would not be voting in favor because it did not meet the intent of the Kenai Comprehensive Plan and, as a steward of the Kenai River, it was not in the best interest of future development. Chair Twait noted if this was to be a successful project it needed an engineering professional for more accurate information. He further noted it lacked completeness and follow through on what was requested; thanked Mr. Foster for attending. Commissioner Fikes noted there was a lot of thoughtful, resourceful, and factual information regarding the Kenai Municipal Code and Kenai Comprehensive Plan. She added the applicant’s plans were continually changing, the rise of the water table and risk of flooding without any accurate engineering information provided, and with the applicant not present for a second time to answer questions, she would not be voting in favor. VOTE ON THE RESOLUTION: YEA: NAY: Peterson, Fikes, Askin, Greenberg, Twait, Springer MOTION FAILED. Chairman Twait noted there was a 15-day appeal period. 7. UNFINISHED BUSINESS – None. 8. NEW BUSINESS – None. 9. PENDING ITEMS: None. 10. REPORTS: a. City Council – Council Member Knackstedt reviewed the action agenda from the June 20 City Council Meeting. He specifically noted an ordinance that was enacted regarding standards for commercial marijuana establishments and the land use table to prohibit standard marijuana cultivation facilities in residential zones as initiated by the Planning and Zoning Commission. He also reported on the approved sale of two airport properties, one on Trading Bay Road and the other a Dry Cleaner business at the south end of Airport Road. b. Borough Planning – Commissioner Fikes reported that the Commission met on June 25; noted five plats were approved; three utility easement vacations were approved; and reported a limited marijuana cultivation application in K-Beach area was approved. c. Administration – City Planner Appleby thanked the public for all the input and direction. She clarified that after the 15-day appeal period, if a conditional use permit was not granted, the applicant cannot submit another conditional use permit application for similar use for nine (9) months. Appleby also reported on the following: • Alaska Gasline Development Corporation announced the new Kenai Spur Highway route was decided, clarifying it was not the residential route; 163 ____________________________________________________________________________________ Planning and Zoning Commission Meeting Page 11 of 11 June 27, 2018 • She attended a Kenai Peninsula Economic Development District (KPEDD) meeting and reviewed the 2018 Peninsula Borough Economic Development Strategy, which would provide data on economic industry; and • She met with the local bike advocacy group; noted it was a joint membership, and the City of Kenai would help provide support with information to apply for a bicycle funding designation for the City of Kenai. 11. ADDITIONAL PUBLIC COMMENT John Hammilman thanked the Commission for their work and requesting more information from the applicant. He also noted appreciation for the excellent and thorough staff report. Kristine Schmidt noted the gravel ordinance needed to be reviewed again and updated. She added that it would be better if it was more comprehensive to address some of the requirements that were noted as missing by the applicant, requiring it be provided through the ordinance. Tim McIntyre thanked the Commission, noting it was interesting and instructive. He further thanked the City Planner for her report. 12. INFORMATIONAL ITEMS – None. 13. NEXT MEETING ATTENDANCE NOTIFICATION: July 11, 2018 City Planner Appleby noted there were no agenda items for July 11 and suggested cancelling the meeting. There were no objections; the next meeting would be July 25. Chair Twait and Vice- Chair Springer noted they may not be able to attend. 14. COMMISSION COMMENTS & QUESTIONS Commissioner Greenberg noted the application was not approved mostly for technical reasons and agreed with Schmidt that the Commission should review the gravel extraction ordinance. Commissioner Fikes appreciated the information and input provided by the Planning and Zoning Commissioner of Soldotna regarding review of our code and possible gaps. The Chair and Commissioners expressed appreciation of City Planner Appleby’s thorough report, the civility of the meeting, the public comment, and attendance. 15. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 9:39 p.m. Minutes prepared and submitted by: _____________________________ Jacquelyn Kennedy Deputy City Clerk 164 MEMORANDUM TO: Planning and Zoning Commission FROM: Elizabeth Appleby, City Planner DATE: July 19, 2018 SUBJECT: Marijuana Facilities Statistics ____________________________________________________________________________ Approved Marijuana Facilities The table below shows permitted marijuana facilities within Kenai. The attached maps show the location of all facilities, manufacturing facilities, retail facilities, and cultivation facilities. Address Manufacturing Retail Cultivation Business Name Meeting Date Zone Approval? 12516 Kenai Spur Highway Standard Red Run 6/28/2017 Commercial (CG)Approved 14429 Kenai Spur Highway Kenai River Cannabis 6/13/2018 Commercial (CG)Approved 12656 Kenai Spur Highway Limited, Standard Majestic Gardens 6/28/2017 Commercial (CG)Approved 5455 Kenai Spur Highway Standard Red Run 3/23/2016 Commercial (LC)Approved 14927 Kenai Spur Highway L&J Outfitters 1/24/2018 Industrial (I)Approved 10767 Kenai Spur Highway East Rip 12/13/2017 Mixed Use (CMU)Approved by Appeal 1030 Angler Drive Limited Peninsula Botanicals 5/24/2017 Residential (RR)Approved 1817 Sunset Boulevard Limited Grateful Buds 2/28/2018 Residential (RR)Approved 165 Page 2 of 2 Marijuana Facilities Statistics Four permitted facilities were within a commercial zone, one was in a mixed use zone, one was in an industrial zone, and two were within a residential zone (both limited cultivation facilities). The two limited cultivation facilities within the residential zone are both located in existing garages. Two facilities are located in new buildings constructed on vacant lots. The remaining four facilities are located in existing buildings that were previously vacant. Marijuana Facilities Denied Approval The table below shows two marijuana facilities within Kenai which were denied approval. The standard cultivation facility was deemed incompatible within the residential zoning district. The other facility did not meet buffer requirements. Neither of these are included on the attached maps. Kenai Police Department Report The Kenai Police Department reported via email on July 19, 2018 that no calls for service could be located at any of the addresses for Kenai Planning and Zoning Commission permitted marijuana facilities. Note that not all of these facilities are yet in operation or licensed by the State of Alaska. State of Alaska Alcohol and Marijuana Control Office (AMCO) Status Three facilities are fully licensed to operate by AMCO, and one facility is approved by AMCO pending inspection and Marijuana Enforcement Tracking Reporting Compliance (MERC) credentialing. The remaining marijuana establishments are at various stages in the AMCO licensing process. State of Alaska Onsite Use Regulations Update The discussion of onsite use regulations has been delayed. A discussion is expected to occur in July or August of 2018. Address Manufacturing Retail Cultivation Business Name Meeting Date Zone Approval? 505 Ames Road Standard Lone Fox Farms 2/28/2018 Residential (RR)Failed 11888 Kenai Spur Highway Limited Majestic Gardens 6/22/2016 Commercial (CG)Failed 166 Generated:All Permitted Marijuana Facilities 7/19/18 Majestic Gardens L & J Outfitters .4,3 00 ' Red Run Kenai River Cannabis East Rip Red Run Grateful Buds Peninsula Botanicals 167 Generated:Mar ijuana Cultivation Facilities 7/19/18 Majestic Gardens Grateful Buds Peninsula Botanicals Red Run .4,3 00 ' Red Run 168 Generated:Marijuana Manufacturing Facilities 7/19/18 Majestic Gardens L & J Outfitters .4,3 00 ' Red Run 169 Generated:Marijuana Retail Stores 7/19/18 Majestic Gardens Kenai River Cannabis East Rip Red Run .4,3 00 '170 MINI-GRANT STEERING COMMITTEE CLERK'S CONFERENCE ROOM CITY HALL FRIDAY, JULY 6, 2018 – 9:00 A.M. CHAIR BRIAN GABRIEL, PRESIDING MEETING SUMMARY 1. CALL TO ORDER & ROLL CALL Mayor Gabriel called the meeting to order at 9:07 a.m. Roll was confirmed as follows: Members present: Chair B. Gabriel, J. Beech, M. Bernard, K. Reed Members absent: B. Randle A quorum was present. 2. AGENDA APPROVAL MOTION: Member Bernard MOVED to approve the agenda and Member Beech SECONDED the motion. There were no objections; SO ORDERED. 3. APPROVAL OF MEETING SUMMARY a. September 29, 2017 MOTION: Member Beech MOVED to approve the meeting summary from September 29, 2017 and Member Bernard SECONDED the motion. There were no objections; SO ORDERED. 4. PERSONS SCHEDULED TO BE HEARD – None. 5. PERSONS PRESENT NOT SCHEDULED TO BE HEARD – None. 6. UNFINISHED BUSINESS – None. 7. NEW BUSINESS a. Review of Mini-Grant Applications for Award • Riley Graves, Magnetic Beach Sweeper A general overview of the project was discussed. Questions arose regarding operators of the magnetic beach sweeper, ownership, maintenance, and the remaining funding for the equipment. It was noted that a grant was obtained by ENSTAR for $2,000. All Members voiced their support and agreed on the following recommended terms with approval of the grant: • Any money generated by salvaged debris to be submitted to the City of Kenai to offset maintenance costs; 171 Mini-Grant Steering Committee July 6, 2018 Page 2 • The City of Kenai to maintain custody of the Magnetic Beach Sweeper; and • Request that Parks and Recreation Director, Bob Frates report to City Council on the effectiveness and total debris collected through operation (photos/videos preferred). MOTION: Member Bernard MOVED to approve the funding request of Riley Graves for a Magnetic Beach Sweeper with the recommendations listed; Member Reed SECONDED the motion. There were no objections; SO ORDERED. 8. ANNOUNCEMENTS – None. 9. ADJOURNMENT There being no further business before the Committee, the meeting was adjourned at 9:52 a.m. Meeting summary prepared and submitted by: _____________________________________ Jacquelyn Kennedy Deputy City Clerk 172 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant – Airport Manager DATE: July 11, 2018 SUBJECT: July Mid-month Report 2016 Fencing Rehabilitation – Awaiting FAA approval to advertise. 2017 Terminal Rehabilitation Project – Design Grant – The 65% plans and specs were presented to City Administration on June 19th. The Terminal Design Committee will consist of Scott Curtin, Jim Glendening, Dan Pitts, Mary Jo Joyner, and Mary Bondurant. In-house Activities – Operations staff is busy with landscaping, mowing, field and equipment maintenance, brush cutting, and crack sealing. The Double O Express: Concessionaries notified City and Airport Administration that they would be closing the restaurant with the last day of business July 2, 2018. This airport concession was due to expire on December 31, 2018. The Request for Proposal is being advertised with a bid opening scheduled for Tuesday, July 17th. The successful proposer will be scheduled for the August 1 City Council meeting with the new restaurant concession to start August 2, 2018. TSA National Amendment – On June 25, TSA issued an airport security plan amendment regarding Airport Access and Vetting for airport operator employees and authorized representatives that require direct access to the airfield. This is requiring the airport operator to transmit Biographic Data every 24 hours. An implementation date is set for July 25; however additional information is forthcoming. 173 ll\llunicipal Airport FLOAT PLANE BASIN ACTIVITY 2014-2018 -----------------------------------------· OPERATIONS -----------------------------------------· Month 2018 2017 2016 2015 2014 MAY 39 23 44 57 30 JUNE 139 106 85 124 79 JULY 144 151 164 186 AUGUST 103 191 148 182 SEPTEMBER 107 115 71 72 OCTOBER 6 CLSD 17 9 NOVEMBER CLSD CLSD CLSD CLSD Total 178 586 581 558 0 not reported ----------------------------------------· FUEL SALES -----------------------------------------· Month 2018 2017 2016 2015 2014 MAY $134 $784 $1 ,175 $8 $1 ,151 JUNE $3,203 $3,423 $1,656 $0 $2 ,752 JULY $3,420 $3 ,036 $1,873 $5,776 AUGUST $4,325 $3,647 $1,710 $3 , 116 SEPTEMBER $4,901 $3,830 $1,380 $1 ,820 OCTOBER $583 CLSD $553 $384 Total $3,337 $17,436 $13,344 $5,524 $14,999 -----------------------------------------· Slips Rented Private Commerical 3 0 Rev 5/2015 174 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: July 23, 2018 SUBJECT: Finance Department, July 2018 Mid-month Report The department has been extremely busy since the beginning of the new fiscal year on July 1st and preparing for the 2018 Personal Use Fishery. IT has assured all shacks are online and ready to process transactions, software enhancements are complete, and City Hall is prepared for daily reconciling activities. We have completed training, in conjunction with Park & Recreation, of all shack attendants for the fishery. Shack attendants are doing well thus far in the fishery with the same outlook for the remainder of the fishery. With the completion of the budget the department’s focus has switched to closing of FY18 and completion of the City’s Comprehensive Annual Financial Report. This process includes closing of the FY18 financial records, fiscal year end grant reporting and finally financial statement preparation. The annual audit is scheduled for the week of October 8th. The Department’s IT Intern has been a huge help in deployment and opterations of Personal Use Fishery shacks as well as assisting other IT projects. 175 MEMORANDUM TO: Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Jo Joiner DATE: July 16, 2018 SUBJECT: Library Mid-Month Report ______________________________________________________________________ June Circulation Figures Adult Fiction 1,235 Internet Access 941 Adult Non-Fiction 909 iPad use 266 Young Adult Fiction 277 Games 15 Periodicals 76 Room Booking 169 Juvenile Fiction 683 Music 28 Juvenile Non-Fiction 378 DVDs 1,842 Easy Fiction 1,342 Audio books 107 Easy Non-Fiction 227 Miscellaneous 180 Interlibrary Loan 5 Computer Programs Books – Consortium 263 Media – Consortium 121 Total Print 5,395 Total Non-Print 3,669 Total Circulation 6/18 9,064 Downloadable Audio 658 Total Circulation 6/17 9,382 Downloadable EBooks 576 % change -3% In-House circulation 504 176 Page 2 of 2 Mid-Month Report Library Door Count……. 8,896 Income Fines $ 744.55 Xerox 125.50 Lost/Damaged 127.92 Test Proctoring Fee 80.00 Printing 389.75 Other 0.00 Total income $ 1,467.72 In June 3 volunteers worked about 24 hours. There were 25 children’s programs with 755 total in attendance, and 10 adult and family programs with 102 attendees. In June we ordered 3 interlibrary loan items not available through the consortium and received 5 items, we returned 2 items and loaned 4 items to other libraries who are out of state or not in the consortium. Circulation of children’s books is up about 30% over the circulation of those materials in May. Our summer reading program seems to be working! Library Cards Issued June ILL 2 Kasilof 3 Kenai 50 Nikiski 8 Non-Resident 9 Other Peninsula 0 Soldotna 1 Sterling 5 Total 91 177 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: July 24, 2018 SUBJECT: Planning and Zoning June 2018 Report ____________________________________________________________________________ Below are a summary of tracking measures in June 2018 for the Planning and Zoning Department. Planning and Zoning Resolutions Approved: June 2018 The Planning and Zoning Commission approved of a conditional use permit for a retail marijuana store, approved of a substitute resolution to fix a clerical error on a conditional use permit for a marijuana cultivation facility, and denied an application for a conditional use permit for extraction of natural resources as outlined below: • PZ 2018-16 – Application for a Conditional Use Permit to operate a Retail Marijuana Store located on the property known as 14429 Kenai Spur Highway, Kenai, Alaska 99611; and further described as Lot 4, Block 1, Bush Lanes Subdivision. Application submitted by: Clint Pickarsky, Registered Agent for KRC LLC d/b/a Kenai River Cannabis, P.O. Box 1016, Soldotna, Alaska 99669 (6/13/18) • Substitute Resolution PZ 2018-03 – Application for a Conditional Use Permit to operate an approximately 498 square-foot Marijuana Cultivation Facility, Limited, within an existing approximately 1,252 square foot attached garage; located on the property known as 1817 Sunset Blvd., Kenai, AK 99611, and further described as G. L. 5, Section 26, Township 6 North, Range 12 West. Application submitted by: Jennifer Huffman, d/b/a Grateful Buds LLC, 40095 Lamont St., Kenai, Alaska 99611 (6/13/18) 178 Page 2 of 3 Planning and Zoning June 2018 Report • PZ 2017-30 (Failed) – Application for a Conditional Use Permit for Extraction of Natural Resources submitted by Lavern Davidhizar for the property located at 4905 Silver Salmon Dr., and further described as a portion of Government Lots 1 and 9, and a portion of the NE ¼ of Section 7, Township 5 North, Range 10 West lying West of Spur Highway and East of the Kenai River (Kenai Borough Parcel No. 04937136) (6/27/18) Code Enforcement: June 2018 Two cases close in June 2018. Five current active cases. Junk or Abandoned Vehicles 1 Debris & Junk 1 Garbage 2 Building Code Violation 0 Miscellaneous Code Violation 1 TOTALS: 5 Building Permits Issued: June 2018 Permit # Date Issued Owner Address Improvement Valuation Residential / Commercial B5389 6/12/18 Louis Forstner 1137 Walnut Avenue Add trusses over garage $11,000 Residential B5390 6/12/18 Edward E. Brown, Jr. 2815 Watergate Way #2044 SFD with $522 garage $267,000 Residential B5391 6/18/18 Ron Helms/Teresa Honrud 1345 Nighthawk Lane Two 480 S.F. Cabins $113,712 Residential B5393 6/20/18 Wallace Jackson 405 Evergreen Street #1525 SFD w/#800 garage $300,000 Residential B5395 6/21/18 Jennifer Huffman 1817 Sunset Boulevard Converting garage into marijuana cultivation facility $10,000 Residential B5396 6/25/18 L&J Outfitters, LLC 14927 Kenai Spur Highway #1656 Commercial Building $415,000 Commercial 179 Page 3 of 3 Planning and Zoning June 2018 Report Lands The Planning and Zoning Commission recommended for execution the following lease application within the Airport Reserve, as outlined below: • Airport Reserve Land Lease Application for property located at 209 N. Willow Street, Kenai, Alaska 99611; further described as a portion of Tract A, General Aviation Apron No. 2, submitted by SOAR International Ministries, Incorporated (6/13/18) 180 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: July 24, 2018 SUBJECT: Mid-month Report ______________________________________________________________________ July was a particularly busy month for the department. Below is a list of projects and various activities the department was involved in: • Department assisted with the Chamber’s 4th July festivities. Activities included picking up and delivering the tent, setting up the beer garden, delivering electrical pedestals, managing trash and restrooms throughout the day and assisting with clean up. • A couple days of volunteer services were provided by a Boy Scout Troop from Texas July 3rd and 4th. Activities included painting of dugouts and concession stand at the adult softball complex, painting of the skate park ramps and weeding at the Food Forest located at the community gardens. This group also assisted throughout the day during the 4th July activities at the Softball Greenstrip. • The Kenai Softball Association hosted their annual Fire Cracker Tournament on July 7th and 8th. A record number of teams participated this year with 32 teams. Preparation included routine field maintenance and adding 100 cubic yards of infield mixture to field #4. • Staff has been busy assisting with dipnet activities with the opener beginning July 10th. • American Legion Baseball hosted their Annual Bill Miller Wood Bat Tournament July 3rd- 5th. Several games were played at the Little League complex (Field #3). 181 Page 2 of 2 Mid-Month Report • The Kenai Wolfpack Rugby tournament was held July 21st and 22nd at the Millennium Square field. Several teams from out-of-state were represented, including a team from Australia. • The department welcomes Carol Bannock as the new Administrative Assistant. Carol previously worked as the Activity/Volunteer Coordinator at the Kenai Senior Center. • The Wildflower Garden is not coming into bloom as planned. The department recently fertilized and we are hopeful this will stimulate more growth. • Staff poured a concrete pad for a bike repair station. The station will be located out near Beaver Creek Park near the Unity Trail. • The department received six (6) hours volunteer work throughout July. This does not include the Boy Scout Troop from Texas. Most of the volunteer hours were dedicated to weeding various flower gardens throughout town. 182 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtain, Public Works Director DATE: July 24, 2018 SUBJECT: Mid-Month Report; Public Works / Capital Projects • WWTP Improvements – An amendment was executed to prepare construction documents. The improvements include installing dissolved oxygen probes, variable speed drive blowers, fine bubble diffusers, and evaluation of other potential energy saving upgrades. Final documents are pending, Division 1 specifications are being added to bid package. Update: Reviewing Docs with DEC on the DO Probes, still discussing final blower design with CH2M. • Fencing Rehab with Access Control –Design in progress. Scope includes bringing security card access to nine gates and possibly gate upgrades. As of 5/23 documents are at 95% completion. Finalizing last few details, anticipating going out for bids between 6/18-7/13. Update: 7/24 awaiting approval to advertise from FAA, anticipate bidding in August. • Terminal Building Rehab Conceptual Plan and Design – The Draft Design Study Report was completed February 2, 2018 and is under review. Scope generally includes HVAC and electrical upgrades, a new roof, better space utilization, and cosmetic improvements. 35% percent design documents received, anticipating 65% docs on 6/19, with presentation at council meeting on the 20th. Update: 7/24 95% Docs received. Anticipating Bid Release for 8/6/18 with bids due on 8/27/18. • 2016 Improved Airport Drainage – Closeout in process. Scope included replacing the floatplane pond outfall gate and mitigating ponding areas that attracted wildlife. Notice of Completion from DOL for Peninsula Construction has now been received. • Dock repair – Bidding Process. Scope includes repairs to damage caused by the earthquake and cathodic protection to mitigate accelerated corrosion of the piling. Bids on April 10, 2018. One Bid was received and was slightly over budget, anticipating altering the Bid Package and will Re-Bid in August. • Flight Service Station Phase 3 (Interior remodel) – Modification to design in progress. The scope includes break-room upgrades, lockers, painting, carpet, duct and carpet cleaning. 183 Page 2 of 2 Mid-Month Report This will complete the work required by the FAA lease agreement. Currently reviewing 95% Drawings. Anticipate bidding in late August. • Purchase Sander Trucks – Purchase Orders have been provided to the vendors. Delivery anticipated in mid-May 2018. Due to manufacturer revised delivery date confirmed for June 15th. Update: Sander Trucks were received in June in good working order. • Purchase Street Sweeper – Specifications in development. Update: Bid release will be 8/1/18 with Bids due on 8/15/18. • Recreation Center Improvements – Jernstrom Engineering - Design in progress. Scope includes replacing aging water heaters with high efficiency heaters, HVAC improvements including replacing Roof Top Units and system upgrades, e.g. thermostat locations and flow balancing. • Recreation Center Management Agreement – Request for Proposal (RFP) documents in development. A meeting was held with the proposal review committee to discuss scoring criteria. RFP Available April 11, Proposals due May 11. Currently negotiating with Boys & Girls Club. Update: Contract with Boys and Girls Club pending. • Ryan Creek Culvert Repair – Bidding process. This culvert crosses Frontage Road from Leif Hansen Memorial Park to the drainage that runs next to the Senior Center. Bids on April 10, 2018. Construction Contract awarded to Fosters Construction, work is scheduled to take place 6/11-6/29. Update: Fosters intends to Hydro-seed on 7/25 to complete the project. • Kenai Cemetery Expansion 2018 – Design contract has been finalized. Scope includes grading and seeding, aluminum and chain link fencing, gravel road and walkways, survey monuments, and a well and related appurtenances. Notice to proceed has been issued. June 7th Design Docs are at 65% review comments. Expect final docs after 4th July holiday. Update: anticipating Final Bid Docs received with review comments week of July 30th. Will Bid in August. • Peninsula Avenue Bluff Erosion 2018 – Resolution approved to enter into a contract for design services. Design contract being finalized. 100% Bid Docs are pending, anticipate bidding in August. • USACE Bluff Erosion – See City Manager’s report. No new update. • DOT KSH Rehabilitation (Widening to 5 lanes) Phase 1 Swires Rd. to Eagle Rock Dr. was bid on March 30. City of Kenai water main replacement crossing KSH at Shotgun/Beaver Loop designed, funded, and will be bid with DOT project. Construction to start mid-May. Construction is ongoing and proceeding well. Clearing of the Right of Way has been taking place this month. • DOT KSH Rehabilitation (Widening to 5 lanes) Phase 2 Eagle Rock Dr. to Sports Lake – ADOT advises they plan to bid in November 2018, more likely 2019.. • DOT KSH Rehabilitation (Grind and pave) MP 12.25 to 18.52 - ADOT advises they plan to bid and construct in 2018. • DOT Beaver Loop Road and Pedestrian Pathway Project – ADOT advises construction may be possible in 2018, more likely 2019. • Dock Contract for use of Cranes, offices and Operating Area – Cispri has elected not to proceed to Contract. We are no longer anticipating a tenant for this season. 184 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Kathy Romain, Senior Center Director DATE: July 23, 2018 SUBJECT: June Monthly Report June 2018 Home Meals NTS Choice Clients Meals Clients Meals 60+ Service Area 44 806 7 233 60+ Outside Service Area 1 28 1 28 Under 60 + Service Area 1 7 4 143 Under 60+ Outside Service Area 0 0 1 30 Subtotals 46 841 13 434 Total 1275 • During the month of June, 56 volunteers donated 781 hours of their time; 47 individuals used the Social Security Video Service; and, 1,481 congregate meals were served in the dining room. • The Senior Center was successful in receiving the FY19-21 grant award from the State of Alaska DHSS Nutrition, Transportation and Support Services and in obtaining a mini-grant from the ExxonMobil Corporation for our Summer Student Internship Grant. The latter enabled us to hire a local high school or college student for the summer to work as a groundskeeper around the Center and also provide intergenerational opportunities for seniors working alongside this student. • Our Summer Mystery Drives with volunteer driver, Steve Latz, are always popular. These trips are most often filled with seniors who don’t drive and wouldn’t otherwise be able to see these interesting places. In June, the group went to the Kenai Watershed Forum (KWF) for a session with the staff and summer interns and learned about the Soberg House, the Kenai River Festival, the background and outreach of the KWF and the Stream Watch Program. Steve also took the group south of Soldotna to check out the buffalo herd with two calves. They then drove by the seven layer house in Kasilof; then over to the Crooked Creek Campground for a fishing report; then stopped off at the Pollard Homestead; Rocky’s Café for ice cream; and, back to Kenai with a stop at the Kenai River Boat Launch to check out the commercial drift fleet. 185 • On June 7, 13 seniors participated in a seven-hour rafting trip down the Kenai River. Everyone who participated came back with reports of scenery, wildlife, a few wet splashes and a great time for all. • On June 14, in honor of World Elder Abuse Day, we hosted a public information session with Shelia Jacobsen from the State of Alaska Adult Protective Services. Participants from the Kenai, Nikiski and CES Fire Departments, Alaska State Troopers, various local agencies, as well as community members learned about identifying Elder Abuse, what to do about it and how to report it to the proper authorities. Staff from the Senior Center were also in attendance as part of the yearly mandatory reporting training. • Our Father’s Day Celebration on June 15 brought out 110 individuals for Missy’s good cooking and the tunes of Hobo Jim. Hobo has volunteered for this event for a few years now and our seniors are appreciative of his love for Alaska and his good down-home music. • Our new software allows us to track the age groups of the clients we serve. During this last quarter, the breakdown was as follows: 7.2% Ages 60-64 13.9% Ages 65-69 22.3% Ages 70-74 15.4% Ages 75-79 11.7% Ages 80-84 20.2% Ages 85 + These numbers show us that seniors are becoming more active as they age and are looking for positive ways to enhance their daily living whether through nutrition, exercise, assistance and/or socialization. 186 MEMORANDUM TO: Paul Ostrander, City Manager THROUGH: Dave Ross, Police Chief FROM: Jessica “JJ” Hendrickson, Animal Control Chief DATE: July 9, 2018 SUBJECT: June 2018 Animal Control Monthly Report This month the Kenai Animal Shelter took in 68 animals. Animal intake and disposition: DOGS: INTAKE 31 DISPOSITION 37 Waiver 10 Adopted 10 Stray 16 Euthanized 1 Impound 1 Claimed 17 Protective Custody 2 Field Release 0 Quarantine 0 Transferred to Rescue 9 Other Intakes 5 Other Dispositions 0 CATS: INTAKE 35 DISPOSITION 31 Waiver 21 Adopted 9 Stray 14 Euthanized 6 Impound 0 Claimed 2 Protective Custody 0 Field Release 0 Quarantine 0 Transferred to Rescue 13 Other Intakes 0 Other Dispositions 1 OTHER ANIMALS: INTAKE 2 DISPOSITION 2 Bird 2 Rabbit 2 DOA: 6 OTHER STATISTICS: Dog 3 Licenses (City of Kenai Dog Licenses) 5 Cat 3 Microchips (Dog and Cat) 2 187 Page 2 of 2 1 Citations 8 Animal dropped with After Hours (days we are closed but cleaning and with KPD) 24.35 Volunteer Hours Logged 30 Animals are known borough animals 16 Field Investigations & patrols Statistical Data: 337 2016 YTD Intakes 403 2017 YTD Intakes 366 2018 YTD Intakes 188 MEMORANDUM TO: Paul Ostrander, City Manager FROM: Anthony Prior, Battalion Chief DATE: July 24, 2018 SUBJECT: July 2018 Mid-Month Report – City of Kenai Fire Department From January 1st through the end of June 2018 the department responded to 730 calls for service. This is a slight increase from 2017 where we responded to 706 calls during the same period. The department participated in the Independence Day parade with games and events for all ages. We also hosted another Car Seat Check at Station 1 for all members of the community. Anyone who may have questions about their car seat installation, or who may need a new one, are able to have their questions answered and/or have a new seat sized and installed by one of our trained staff. Members of the department also participated in the 2nd Annual Emergency Responders Softball Game to raise money for the Nikiski Children Fund. The department received 40 new sections of 1 ¾” hose, 5 new nozzles, a new saw, and 2 pairs of chaps from the VFA grant. Additionally, 2 new dry suits, 3 float coats, and a couple rescue PFD’s for water rescue arrived and were placed in service just prior to the Dip Net Fisheries opening day. Training has focused on New Driver/Operator training, FAA/Airport training, as well as Probationary training for our newest member over the last month. Firefighter Mike Oden attended the Firefighter Symposium in Valdez, AK at the end of June. 189 MEMORANDUM TO: Paul Ostrander, City Manager FROM: David Ross, Police Chief DATE: July 23, 2018 SUBJECT: Police & Communications Department Activity – Month of June 2018 Police handled 762 calls for service. Dispatch received 275 9-1-1 calls, 211 of which came from cell phones. Officers made 51 arrests. Traffic enforcement resulted in 264 traffic contacts and 91 traffic citations. There were 2 DUI arrests (0 felony). Officers investigated 12 motor vehicle crashes. There were two collisions involving caribou and one involviing a moose. May training included: Two KPD officers attended one day of SERT training. One officer attended a one day Disability Abuse Response Team (DART) training in Juneau. One officer attended a two day rifle training in Kenai. One officer attended a week of Crisis Intervention Training in Anchorage. All officers participated in the department annual firearms qualification. One dispatcher attended a week of Field Training officer training in Wasilla. 4220 1559 3794 1665 3609 17470 2000 4000 6000 Total Police Service Calls 911 Calls Received 2018(Jan 1 - June 30)2017(Jan1 - June 30)2016(Jan 1 - June 30) 190 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: July 24, 2018 SUBJECT: Quarterly Financial Report for the quarter ended June 30, 2018. Attached is a quarterly financial report for the General Fund, Personal Use Fishery Fund, Airport Fund, Water/Sewer Fund, and Senior Fund as of June 30, 2018. This report is essentially on a cash basis, so there are accounts that may not look reasonable. In the General Fund for example, sales and property tax revenue only includes payments made to the City by the Borough through May. The second calendar quarter 2018 sales tax filings and tax payments are not represented in the balances. FY2018 revenue amounts will not be accurate for a few months because of the delay in receipt of the payments. State and Federal is below budget in all funds because of PERS aid. The State doesn’t actually give us any money. Instead they make an ‘on-behalf’ payment to the pension system. Similarly we have not booked expenditures for the PERS the State is covering, so the Non-Departmental department is way under budget. At year-end we will record revenue and expenditures for these items. The actual financial performance of each fund will be presented when the City’s Comprehensive Annual Financial Report is completed. This report will be on the modified accrual basis for Governmental Funds and will show a more accurate picture of each funds financial performance for FY2018. The report is expected in November after completion of the annual audit the first week of October and will be presented to Council in early December. 191 Quarterly General Fund Expenditure Report For Quarter Ended June 30, 2018 7/1/2016 7/1/2017 7/1/2017 7/1/2017 6/30/2017 7/1/2017 6/30/2018 6/30/2018 Original * FY2017 FY2018 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 881,115$ 938,844$ -$ (938,844)$ 0.00% Taxes 10,635,298 10,837,263 10,837,263 9,455,115 (1,382,148) 87.25% Licenses/Permits and Ambulance 500,653 528,000 528,000 582,926 54,926 110.40% State/Federal 866,746 651,238 688,025 485,262 (202,763) 70.53% Dock/Multipurpose/Miscellaneous 131,686 119,500 119,500 152,902 33,402 127.95% Fines and Forfeitures 83,094 89,500 95,651 67,331 (28,320) 70.39% Interest and Miscellaneous 350,884 404,595 410,745 372,060 (38,685) 90.58% Transfers/Central Admin Fees 1,802,305 2,082,393 2,093,383 1,703,951 (389,432) 81.40% Total Revenues 14,370,666 15,593,604 15,711,411 12,819,547 (2,891,864) 81.59% EXPENDITURES & TRANSFERS General Government 01 City Clerk 269,306$ 298,355$ 299,905$ 245,954$ 53,951$ 17.99% 11 Legislative 164,434 169,955 164,955 158,402 6,553 3.97% 12 Legal 302,161 354,743 354,743 295,859 58,884 16.60% 13 City Manager 350,859 350,254 350,254 327,026 23,228 6.63% 15 Finance 603,313 685,410 685,410 633,197 52,213 7.62% 16 Land Administration 26,620 17,740 17,740 1,333 16,407 92.49% 18 Non-Departmental 581,874 655,125 658,330 313,258 345,072 52.42% 19 Planning and Zoning 203,539 231,455 231,455 196,913 34,542 14.92% 20 Safety 2,420 21,150 21,150 3,560 17,590 83.17% Total General Government 2,504,526 2,784,187 2,783,942 2,175,502 608,440 21.86% Public Safety 21 Police 2,640,497 2,921,899 2,932,485 2,835,406 97,079 3.31% 22 Fire 2,935,855 3,103,846 3,152,893 2,906,444 246,449 7.82% 23 Communications 726,457 854,200 854,200 784,261 69,939 8.19% 29 Animal Control 376,981 419,777 419,777 379,931 39,846 9.49% Total Public Safety 6,679,790 7,299,722 7,359,355 6,906,042 453,313 6.16% Public Works 31 Public Works Administration 215,606 233,669 233,669 195,298 38,371 16.42% 32 Shop 627,020 647,332 647,332 613,047 34,285 5.30% 33 Streets 846,987 985,460 985,460 775,416 210,044 21.31% 34 Buildings 304,240 341,444 332,944 317,176 15,768 4.74% 35 Street Lighting 154,579 167,409 181,909 173,925 7,984 4.39% 60 Dock 66,018 93,348 87,348 52,438 34,910 39.97% Total Public Works 2,214,450 2,468,662 2,468,662 2,127,300 341,362 13.83% Parks and Recreation & Culture 03 Visitor Center 177,795 182,404 182,404 178,605 3,799 2.08% 40 Library 839,714 912,585 922,085 885,282 36,803 3.99% 45 Parks, Recreation & Beautification 1,079,155 1,119,256 1,141,003 999,540 141,463 12.40% Total Parks and Recreation & Culture 2,096,664 2,214,245 2,245,492 2,063,427 182,065 8.11% Total Operating Expenditures 13,495,430 14,766,816 14,857,451 13,272,271 1,585,180 10.67% Transfer to other funds Street Improvement Capital Project Fund 78,000 48,000 75,172 75,172 - 0.00% Senior Center Impr. Capital Projects 208,400 - - - - - City Dock Capital Project Fund 35,000 - - - - - New City Shop Capital Project Fund - 35,000 35,000 35,000 - 0.00% Public Safety Building Capital Proj. Fund - 120,000 120,000 120,000 - Kenai Animal Shelter Capital Proj. Fund - 35,000 35,000 35,000 - Cemetery Improvements Capital Proj. Fund - 250,000 250,000 250,000 - Employee Health Care Internal Svc. Fund 100,000 - - - - - Senior Citizen Special Revenue Fund 183,291 196,730 196,730 49,182 147,548 75.00% Debt Service 140,439 142,058 142,058 142,002 56 0.04% Total Transfer to other funds 745,130 826,788 853,960 706,356 147,604 17.28% Total Expenditures & Transfers 14,240,560 15,593,604 15,711,411 13,978,627 1,732,784 11.03% Net Revenues over(under) Expenditures 130,106$ -$ -$ (1,159,080)$ (1,159,080)$ *Note: The original budget includes outstanding encumbrances at 6/30/2017. 192 Quarterly Personal Use Fishery Fund Expenditure Report For Quarter Ended June 30, 2018 7/1/2016 7/1/2017 7/1/2017 7/1/2017 6/30/2017 7/1/2017 6/30/2018 6/30/2018 Original * FY2017 FY2018 Amended YTD Actual Budget Budget Actual Variance % REVENUES Beach Parking 182,853$ 183,000$ 170,429$ 174,613$ 4,184$ 2.45% Beach Camping 238,752 239,000 210,269 210,269 - 0.00% Dock Launch & Park 128,109 130,000 111,848 111,528 (320) -0.29% Dock Parking Only 14,807 15,000 12,009 12,009 - 0.00% Participant Drop-off Fee 10,717 11,000 7,481 7,481 - 0.00% Interest Earnings 671 750 750 - (750) 0.00% PERS Grant 2,688 2,312 2,312 - (2,312) -100.00% Credit Card Fees (3,680) (4,500) (3,291) 674 3,965 -120.48% Total Revenue 574,917 576,562 511,807 516,574 4,767 0.93% EXPENDITURES Public Safety 116,874$ 109,195$ 115,585$ 114,402$ 1,183$ 1.02% Streets 53,068 51,506 36,377 32,507 3,870 10.64% Boating Facility 72,669 72,347 62,843 55,688 7,155 11.39% Parks, Recreation & Beautification 268,686 279,584 233,072 222,823 10,249 4.40% Total Expenditures 511,297 512,632 447,877 425,420 22,457 5.01% Net Revenues over Expenditures 63,620$ 63,930$ 63,930$ 91,154$ 27,224$ *Note: The original budget includes outstanding encumbrances at 6/30/2017. 193 Quarterly Airport Fund Expenditure Report For Quarter Ended June 30, 2018 7/1/2016 7/1/2017 7/1/2017 7/1/2017 6/30/2017 7/1/2017 6/30/2018 6/30/2018 Original * FY2017 FY2018 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ -$ 129,755$ -$ (129,755)$ 0.00% State/Federal 29,725 23,552 23,552 - (23,552) 0.00% Interest , Leases & Fees 786,527 805,326 805,326 868,408 63,082 107.83% Terminal Revenues 683,766 786,514 786,514 665,191 (121,323) 84.57% Landing Fees 529,132 375,000 375,000 386,429 11,429 103.05% Transfers In 1,175,414 1,191,711 1,191,711 1,210,348 18,637 101.56% Total Revenues 3,204,564 3,182,103 3,311,858 3,130,376 (181,482) 94.52% EXPENDITURES & TRANSFERS Terminal Area 578,256$ 645,425$ 645,425$ 566,496$ 78,929$ 12.23% Airfield 1,640,517 1,697,523 1,721,433 1,605,186 116,247 6.75% Administration 411,745 336,914 323,994 280,902 43,092 13.30% Other Buildings & Areas 12,510 180,411 180,411 196,937 (16,526) -9.16% Training Facility 40,295 38,326 38,326 30,895 7,431 19.39% Total Expenditures 2,683,323 2,898,599 2,909,589 2,680,416 229,173 7.88% Transfer to other funds Airport Improvement Capital Projects 127,437 - 402,269 402,269 - 0.00% Total Transfer to other funds 127,437 - 402,269 402,269 - 0.00% Total Expenditures & Transfers 2,810,760 2,898,599 3,311,858 3,082,685 229,173 6.92% Net Revenues over Expenditures 393,804$ 283,504$ -$ 47,691$ 47,691$ *Note: The original budget includes outstanding encumbrances at 6/30/2017. 194 Quarterly Water Sewer Fund Expenditure Report For Quarter Ended June 30, 2018 7/1/2016 7/1/2017 7/1/2017 7/1/2017 6/30/2017 7/1/2017 6/30/2018 6/30/2018 Original * FY2017 FY2018 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ -$ -$ -$ -$ #DIV/0! State/Federal 23,142 17,228 17,228 - (17,228) 0.00% Water/Sewer Fees 2,725,982 2,863,453 2,863,453 2,795,507 (67,946) 97.63% Penalty and Interest 35,838 43,250 43,250 36,959 (6,291) 85.45% Interest and Miscellaneous 9,478 19,000 19,000 24,156 5,156 127.14% Total Revenues 2,794,440 2,942,931 2,942,931 2,856,622 (86,309) 97.07% EXPENDITURES & TRANSFERS Water 715,077$ 864,277$ 952,937$ 831,528$ 121,409$ 12.74% Sewer 365,094 513,830 520,147 448,007 72,140 13.87% Wastewater Treatment Plant 987,096 1,075,372 1,166,894 1,103,627 63,267 5.42% Total Expenditures 2,067,267 2,453,479 2,639,978 2,383,162 256,816 9.73% Transfer to other funds - Water & Sewer Capital Projects 353,792 - - - - - Employee Health Care Fund 8,501 - - - - - Total Transfer to other funds 362,293 - - - - - Total Expenditures & Transfers 2,429,560 2,453,479 2,639,978 2,383,162 256,816 9.73% Net Revenues over Expenditures 364,880$ 489,452$ 302,953$ 473,460$ 170,507$ *Note: The original budget includes outstanding encumbrances at 6/30/2017. 195 Quarterly Senior Fund Expenditure Report For Quarter Ended June 30, 2018 7/1/2016 7/1/2017 7/1/2017 7/1/2017 6/30/2017 7/1/2017 6/30/2018 6/30/2018 Original * FY2017 FY2018 Amended YTD Actual Budget Budget Actual Variance % REVENUES Appropriation of Fund Balance -$ 24,041$ 24,041$ -$ (24,041)$ 0.00% State Grants 208,654 198,299 198,299 181,305 (16,994) 91.43% USDA Grant 22,415 15,000 15,000 12,765 (2,235) 85.10% Choice Waiver 220,419 225,000 225,000 169,822 (55,178) 75.48% KPB Grant 126,207 126,207 126,207 126,207 - 100.00% United Way 5,977 5,977 5,977 9,598 3,621 160.58% Rents & Leases 8,260 13,000 13,000 8,324 (4,676) 64.03% Donations 14,717 80,000 114,105 67,062 (47,043) 58.77% Meal Donations 75,321 75,000 75,000 82,837 7,837 110.45% Transfer from General Fund 183,291 196,730 196,730 49,183 (147,547) 25.00% Other 241 300 300 1,775 1,475 - Total Revenues 865,502 959,554 993,659 708,878 (284,781) 71.34% EXPENDITURES & TRANSFERS Senior Citizen Access 153,905$ 166,319$ 166,412$ 154,451$ 11,961$ 7.19% Congregate Meals 218,035 236,396 238,834 216,972 21,862 9.15% Home Meals 176,509 195,103 226,450 172,637 53,813 23.76% Senior Transportation 67,803 80,523 83,824 79,132 4,692 5.60% Choice Waiver 249,525 281,213 278,138 247,125 31,013 11.15% Total Expenditures 865,777 959,554 993,658 870,317 123,341 12.41% Transfer to other funds - - - - - - - Total Transfer to other funds - - - - - - Total Expenditures & Transfers 865,777 959,554 993,658 870,317 123,341 12.41% Net Revenues over Expenditures (275)$ -$ 1$ (161,439)$ (161,440)$ *Note: The original budget includes outstanding encumbrances at 6/30/2017. 196 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Terry Eubank, Finance Director DATE: July 24, 2018 SUBJECT: June 2018 Quarterly Investment Report City of Kenai Investment Portfolio At June 30, 2018 the City had investments with a market value of $20,753,883 that is down from $21,063,871 at March 31, 2018. The City’s portfolio is yielding 1.66% that is up from 1.53% at March 31, 2018. The Federal Reserve raised the Federal Funds Rate in December, March and again in June, which increased the portfolios yield but devalued many of the assets held in the portfolio. There is an inverse relationship between bond values and interest rates meaning when interest rates increase, bond values decrease. Fair market value adjustments to the portfolio through June 30, 2018 are a negative $259,634. The relative short duration of the portfolio has limited the negative adjustment and rising interest rates are a welcome event and should increase the City’s investment revenues in years to come. City’s Investment Portfolio US Agency Securities $ 4,953,355 AML Investment Pool 1,155,383 Wells Fargo Money Market 3,988,784 FDIC Insured Certificates of Deposit 10,160,899 Bank Balance 495,462 Total $ 20,753,883 Permanent Fund Investments The second quarter 2018 saw significant volatility in the equity markets and another Federal Funds Rate change. Short term interest rate increases are projected to increase more in 2018 depending upon the performance of the nation’s economy. Equities rebounded a bit from first quarter losses and propelled the portfolio which had a return of 1.22% for the second quarter 2018 and a 2018 year to date return of 0.31%. Since inception the portfolio has returned 8.35%. As of June 30, 2018 the portfolio value was $27,835,503, comprised of $24,612,777 (88.42%) Airport Land Sale Permanent Fund, $3,078,461 (11.06%) General Land Sale Permanent Fund monies, and $144,265 (0.50%) Kenai Community Foundation holdings. 197 CITY OF KENAI Investments 06-30-18 COK CITY OF KENAI INVESTMENTS 6/30/2018 Current year cost or Unrealized Expected Call 06/30/17 06/30/18 Gain Accrued EFFECT. SECURITY or Maturity CUSIP original cost Market Value Market Value or Loss Interest RATE FFCB 1.0 08/23/18 w/5days after 11/23/16 3133EGBG9 1,000,000 996,310.00 998,650.00 2,340.00 3,555.56 1.000 FHLMC 1.35 12/17/18 1 TIME 12/17/15 3134G6S95 1,498,500 1,498,470.00 1,494,750.00 (3,720.00) 787.50 1.380 FHLMC 1.70 8/24/20 1 TIME 5/24/18 w/ 5 days 3134GBMD1 1,000,000 996,460.00 978,760.00 (17,700.00) 5,997.22 1.700 FNMA 1.375 3/30/21 9/30/2016 Quarterly w/10 days. Step 3/17 1.50, 3/18 1.75, 3/19 2.0, 3/20 3.25 3136G3DV4 500,000 494,110.00 485,080.00 (9,030.00) 1,737.85 1.375 FNMA 1.50 5/25/21 11/25/2016 Quarterly w/10 days. 3136G3MW2 502,479 489,710.00 481,300.00 (8,410.00) 750.00 1.500 TVA 3.875 2/15/21 Bullet 880591EL2 555,678 537,005.00 514,815.00 (22,190.00) 7,319.44 1.370 TOTAL 5,056,656.88 5,012,065.00 4,953,355.00 (58,710.00) 20,147.57 1.190 FDIC Insured CD's CD - 12/31/10 1.95 AXP 11/20/18 35328 02587CCV0 247,106 248,857.44 246,938.25 (1,919.19) 554.23 1.950 2.00 AXP 11/28/18 27471 02587DWJ3 247,000 248,726.53 246,881.44 (1,845.09) 460.16 2.000 1.20 BNCCTL 9/28/18 4033 05890NAF8 247,000 246,342.98 246,520.82 177.84 16.24 1.200 1.0 BBDNBK 9/24/18 26610 062683AF4 248,095 246,539.28 247,389.92 850.64 54.36 1.000 1.60 BPRN 10/28/19 58513 064520AH2 245,000 245,000.00 242,040.40 (2,959.60) 42.96 1.600 2.30 BACR 10/18/22 57203 06740KLD7 245,000 245,000.00 236,385.80 (8,614.20) 1,142.44 2.300 1.65 BHLB 10/28/19 23621 084601KU6 245,000 245,000.00 242,199.65 (2,800.35) 730.97 1.650 1.35 BRKL 12/28/18 17798 11373QCQ9 247,000 246,518.35 246,063.87 (454.48) 27.41 1.350 2.4 COF 4/19/22 33954 1404202E9 247,000 249,158.78 240,825.00 (8,333.78) 1,185.60 2.400 2.4 COF 8/30/22 34221 14042RHS3 245,000 245,000.00 237,809.25 (7,190.75) 1,949.26 2.400 1.65 CATY 10/28/19 18503 149159LK9 245,000 245,000.00 242,199.65 (2,800.35) 719.90 1.650 1.70 ADS 8/28/19 57570 20033AWB8 245,000 245,000.00 242,885.65 (2,114.35) 34.23 1.700 1.65 CWBKNA 12/30/19 57176 20084TJW4 247,000 246,666.55 243,549.41 (3,117.14) 357.30 1.650 2.55 CMS 1/18/22 57293 29278TAK6 245,000 245,000.00 240,724.75 (4,275.25) 256.75 2.550 1.60 FRME 12/30/19 4365 32082BEL9 247,000 246,365.21 243,369.10 (2,996.11) 346.48 1.600 2.30 FINN 02/21/20 5452 332135HH8 245,000 245,000.00 243,576.55 (1,423.45) 154.38 2.300 1.50 FSBDQN 6/28/19 21805 336460CC2 247,000 246,444.25 244,858.51 (1,585.74) 324.82 1.500 1.80 FFIC 12/10/18 58564 34387ABA6 247,000 247,708.89 246,540.58 (1,168.31) 194.89 1.800 1.25 GRBKIW 9/27/18 14079 36198JCK8 247,000 246,498.59 246,562.81 64.22 33.84 1.250 2.35 GS 8/30/22 4297 38148PNS2 245,000 245,000.00 237,333.95 (7,666.05) 1,908.65 2.350 2.30 HSBC 7/14/22 57890 40434YLE5 245,000 245,000.00 237,341.30 (7,658.70) 2,593.64 2.300 1.65 ILBKIL 10/31/19 33708 45906ABU0 245,000 245,000.00 242,177.60 (2,822.40) 343.34 1.650 2.30 KENNEB 08/24/20 17897 489265AZ1 245,000 245,000.00 242,243.75 (2,756.25) 1,991.55 2.300 1.65 KEY 10/25/19 17534 49306SZA7 245,000 245,000.00 242,226.60 (2,773.40) 742.05 1.650 2.25 MBFI 2/14/20 3628 55266CYJ9 245,030 245,030.21 243,432.00 (1,598.21) 256.75 2.250 1.70 MSBKGR 10/24/19 5766 56062HAD1 245,000 245,000.00 242,395.65 (2,604.35) 79.88 1.700 1.70 MERICK 8/30/19 34519 59013JA25 245,000 245,000.00 242,868.50 (2,131.50) 365.15 1.700 2.60 MS 2/15/22 32992 61747MK83 245,000 245,000.00 240,996.70 (4,003.30) 2,373.48 2.600 1.75 MS 9/30/19 34221 61760ADR7 245,000 245,000.00 242,981.20 (2,018.80) 1,444.83 1.700 2.05 NTLNYC 8/30/22 18734 634116CM7 245,000 245,000.00 234,438.05 (10,561.95) 440.33 2.050 2.15 NRTHFL 10/25/22 28710 66612ABX5 245,000 245,000.00 234,842.30 (10,157.70) 966.91 2.150 2.00 SALLMA 2 11/26/18 58177 795450VE2 247,000 248,620.32 246,854.27 (1,766.05) 487.23 2.000 2.10 SMARTB 11/27/19 58463 83172HDR8 245,000 245,000.00 243,436.90 (1,563.10) 42.29 2.100 1.75 SOWNAT 5/8/20 4801 845182BA1 245,000 245,000.00 240,563.05 (4,436.95) 270.17 1.750 1.35 STBFLO 12/28/18 15146 856191AY7 247,000 246,518.35 246,063.87 (454.48) 292.34 1.350 2.75 SBIIN 02/16/23 33682 856285HZ7 245,000 245,000.00 239,877.05 (5,122.95) 2,491.95 2.750 2.35 SYF 10/20/22 27314 87164WTC2 245,000 245,000.00 236,856.20 (8,143.80) 1,135.73 2.350 2.15 EVER 10/28/22 34775 87270LAV5 245,000 245,000.00 234,785.95 (10,214.05) 894.75 2.150 2.05 THFDSL 10/27/21 30012 88413QBT4 245,000 245,000.00 237,356.00 (7,644.00) 894.42 2.050 1.60 TWNBNK 10/28/19 18487 89210PBL6 245,000 245,000.00 242,040.40 (2,959.60) 42.96 1.600 1.70 WEX 10/18/19 34697 92937CGA0 245,000 245,000.00 242,449.55 (2,550.45) 844.41 1.700 2.00 WFC 10/27/22 3511 94986T2N6 245,000 245,000.00 240,016.70 (4,983.30) 872.60 2.000 TOTAL FDIC Insured CD's 10,317,230.90 10,319,995.73 10,160,898.95 (159,096.78) 30,361.63 1.906 WELLS MONEY MKT 3,988,783.60 3,988,783.60 3,988,783.60 - 3,465.44 1.605 AML POOL - City ACCT Agreed to Amlip 1,155,382.53 1,155,382.53 1,155,382.53 - 2,157.37 1.820 Agreed to GL 20,518,053.91 20,476,226.86 20,258,420.08 (217,806.78) 56,132.01 WF Cash Agreed to WF 495,462.47 495,462.47 495,462.47 - - 0.000 TOTAL 21,013,516.38 20,971,689.33 20,753,882.55 (217,806.78) 56,132.01 MONTHS (259,633.83) TOTAL CURRENT YIELD 1.6698% Max/Min Return Actual Difference Maturity over 2 years 30% Maximum 6,226,164.77 1.9936% 6,031,788 194,377.02 OK Liquidity 20% Minimum 4,150,776.51 1.4496% 10,597,703 (6,446,926.43) OK Maturity 1 - 2 years 1.7621% 4,124,392 1.6698% 20,753,883 198 CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY June 30, 2018 Fair Market Current Value Yield Cash & Cash Equivalents Wells Fargo Checking 495,462$ 0.00% Wells Fargo Secured Money Market 3,988,784 1.61% . FDIC Insured Certificates of Deposit 10,160,899 1.91% Alaska Municipal League Investment Pool 1,155,383 1.82% Total Cash & Cash Equivalents 15,800,528 1.77% Average Yield Government Securities Maturities Less than 1 Year 2,493,400 1.23% Maturities 1 to 2 Years - 0.00% Maturities Greater than 2 Years 2,459,955 1.41% Total Government Securities 4,953,355 1.32% Total Portfolio 20,753,883$ 1.66% Investment Portfolio - Purchase Price 20,200,064$ Investment Portfolio - Fair Value 06/30/17 20,134,606 Fair Value Adjustment - 06/30/17 (65,458) Fair Value Adjustment thru -6/30/18 (194,176) Cummulative Change in Fair Value (259,634)$ June 30, 2018 $0 $4,000,000 $8,000,000 $12,000,000 $16,000,000 Liquidity 20% Minimum Maturity 1 - 2 years Maturity over 2 years 30% Maximum Portfolio Liquidity Policy Minimum/Maximum Actual 199 CITY OF KENAI PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY March 31, 2018 Current or Current Average Portfolio Target Portfolio 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 Yield Weight Weight Maximum Fixed Income Cash & Cash Equivalents 1,686,861 1,477,048 1,800,796 2,100,230 1,403,998 0.81%6.05% Total Cash & Cash Equivalents 1,686,861 1,477,048 1,800,796 2,100,230 1,403,998 Government & Corporate Securities Government Securities 4,074,384 4,757,095 4,868,584 4,902,429 5,372,788 2.33%17.59% Corporate Securities 6,085,153 5,738,396 5,851,724 5,661,962 5,577,526 3.18%19.63% Total Government & Corporate Securities 10,159,537 10,495,491 10,720,308 10,564,391 10,950,314 2.68%37.22% Total Fixed Income 11,846,398 11,972,539 12,521,104 12,664,621 12,354,312 2.62%43.27%45.00%65.00% Equities Domestic Equities Standard & Poor's 500 Index 5,486,353 5,692,088 5,813,002 5,529,449 5,579,731 20.06%20.00%25.00% Standard & Poor's 600 Small-Cap Index 1,638,821 1,734,893 1,795,434 1,459,340 1,412,562 5.83%5.00%10.00% Standard & Poor's 400 Mid-Cap Index 3,039,776 3,126,278 3,264,216 2,879,200 2,802,375 10.80%10.00%15.00% Total Domestic Equities 10,164,950 10,553,259 10,872,652 9,867,989 9,794,668 36.69%35.00%50.00% International Equities Vanguard Europe Pacific ETF 3,020,144 3,182,832 3,192,147 3,335,175 2,957,795 10.08%10.00%15.00% Vanguard Emerging Market ETF 1,351,080 1,458,540 1,462,330 1,940,340 1,588,428 5.13%5.00%10.00% Total International Equities 4,371,224 4,641,372 4,654,477 5,275,515 4,546,223 15.20%15.00%25.00% Real Estate Vanguard REIT ETF 1,081,990 1,080,170 1,078,740 1,056,580 1,140,300 4.84%5.00%10.00% Total Real Estate 1,081,990 1,080,170 1,078,740 1,056,580 1,140,300 4.84%5.00%10.00% Total Equities 15,618,164 16,274,801 16,605,869 16,200,084 15,481,191 Total Portfolio 27,464,562 28,247,340 29,126,973 28,864,705 27,835,503 0.31%100.00%100.00%150.00% Total ALSPF Balance 24,282,141 24,974,224 25,751,998 25,520,119 24,612,777 Total GLSPF Balance 3,046,800 3,133,627 3,231,125 3,202,031 3,078,461 Total Kenai Community Foundation 135,621 139,488 143,850 142,554 144,265 Fair Market Value 0.00% 25.00% 50.00% 75.00% Fixed Income Standard & Poor's500 Index Standard & Poor's600 Small-Cap Index Standard & Poor's400 Mid-Cap Index Vanguard EuropePacific ETF VanguardEmerging Market ETF Vanguard REIT ETF Portfolio Composition Current Portfolio Weight Target Portfolio Weight Maximum Portfolio Weight Current Month Current Quarter Year to Date Last 1 Year Inception to Date Portfolio -0.13%1.22%0.31%6.39%8.35% Benchmark 0.09%1.55%0.54%6.34%8.43% -5.00% 0.00% 5.00% 10.00% 15.00%Portfolio Performance 200 $15,000,000 $17,000,000 $19,000,000 $21,000,000 $23,000,000 $25,000,000 $27,000,000 Total ALSPF Balance Transfer of $1,195,313 to Airport Operations. Transfer of $1,147,714 to Airport Operations. Transfer of $1,184,356 to Airport Operations. Transfer of $1,210,348 to Airport Operations. $‐ $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 Total GLSPF Balance Transfer of $1,075,123 to Airport Operations. Transfer of $135,668 to General Fund Operations. Transfer of $1,158,473 to Airport Operations. Transfer of $154,172 to General Fund Operations. Transfer of $153,493 to General Fund Operations. $‐ $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 Total Kenai Community Foundation Balance $50,000 investment. $5,000 investment.Initial investment of $66,143. Transfer of $149,802 to General Fund Operations. Transfer of $161,561 to General Fund Operations. 201 Clients are encouraged to compare this report with the official statement from their custodian.INVESTMENT PERFORMANCECurrentMonthCurrentQuarterYear toDateLatest 1YearInception toDatePortfolio-0.13 1.22 0.31 6.39 8.35Benchmark0.09 1.55 0.54 6.34 8.43-1.000.001.002.003.004.005.006.007.008.009.00Percent Total Return (Gross)Performance is Annualized for Periods Greater than One YearCurrent Account Benchmark:Equity BlendPORTFOLIO COMPOSITIONFixed Income44%US Lg Cap20%US Md Cap10%US Sm Cap5%Int'l11%Emer Mkts6%Real Estate4%MANAGEMENT TEAMClient Relationship Manager: Amber Frizzell, AIF®Amber@apcm.netYour Portfolio Manager: Bill Lierman, CFA®Contact Phone Number: 907/272 -7575ACCOUNT ACTIVITYPortfolio Value on 05-31-18 27,871,943Contributions 0Withdrawals -406Change in Market Value -186,172Interest 25,461Dividends 124,677Portfolio Value on 06-30-18 27,835,503CITY OF KENAI PERMANENT FUNDSAccount Statement - Period Ending June 30, 2018202 Alaska Permanent Capital Management Co. PORTFOLIO SUMMARY AND TARGET CITY OF KENAI PERMANENT FUNDS June 30, 2018 % Asset Class & Target Market Value Assets Range FIXED INCOME (45%) US Fixed Income (40.0%) 10,940,236 39.3 35% to 65% Cash (5.0%) 1,449,678 5.2 0% to 10% Subtotal: 12,389,914 44.5 EQUITY (50%) US Large Cap (20.0%) 5,560,455 20.0 15% to 25% US Mid Cap (10.0%) 2,790,223 10.0 5% to 15% US Small Cap (5.0%) 1,408,387 5.1 0% to 10% Developed International Equity (10.0%) 2,957,795 10.6 5% to 15% Emerging Markets (5.0%) 1,588,427 5.7 0% to 10% Subtotal: 14,305,289 51.4 ALTERNATIVE INVESTMENTS (5%) Real Estate (5.0%) 1,140,300 4.1 0% to 10% Subtotal: 1,140,300 4.1 TOTAL PORTFOLIO 27,835,503 100 203 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2018YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityFNMA & FHLMC25,982 FHLMC POOL G14203 104.56 27,168 102.83 26,719 0.10 1,039 87 1.434.000% Due 04-01-26Accrued Interest87 0.0027,168 26,805 0.10 87CASH AND EQUIVALENTSCASH RECEIVABLE 12,807 12,807 0.05 NADIVIDEND ACCRUAL 35,601 35,601 0.13WF ADV GOVT MM FD-INSTL #1751 51,070 51,070 0.1899,478 99,478 0.36CORPORATE BONDS200,000 COMMONWEALTH EDISON 123.20 246,400 100.14 200,284 0.72 13,900 6,409 3.436.950% Due 07-15-18200,000 SOUTHERN CAL EDISON 122.07 244,134 100.33 200,658 0.72 11,000 4,156 2.805.500% Due 08-15-18200,000 TOYOTA MOTOR CREDIT CORP 100.48200,958 99.77 199,536 0.72 4,200 1,913 2.532.100% Due 01-17-19200,000 MICROSOFT CORP 117.24 234,472 101.51 203,012 0.73 8,400 700 2.534.200% Due 06-01-19200,000 TORONTO-DOMINION BANK 101.89 203,782 99.32 198,646 0.71 4,500 1,200 2.812.250% Due 09-25-19200,000 HSBC USA INC 99.61 199,216 99.02 198,040 0.71 4,750 633 3.112.375% Due 11-13-19250,000 CAPITAL ONE 99.94 249,85098.56 246,402 0.89 5,875 2,464 3.292.350% Due 01-31-20200,000 ENTERPRISE PRODUCTS OPER 112.75 225,494 104.21 208,416 0.75 10,400 3,467 3.185.200% Due 09-01-20250,000 PNC BANK NA 99.72 249,300 98.26 245,647 0.88 6,125 953 3.232.450% Due 11-05-20200,000 NBC UNIVERSAL MEDIA LLC 109.20 218,408 102.59 205,186 0.74 8,750 2,187 3.384.375% Due 04-01-21200,000 AMERICAN EXPRESS CREDIT 99.92 199,850 97.17 194,346 0.70 4,500 700 3.302.250% Due 05-05-21200,000 MORGAN STANLEY 114.98 229,964 105.82 211,636 0.76 11,000 4,675 3.495.500% Due 07-28-21200,000 GILEAD SCIENCES INC 96.28 192,564 95.26 190,524 0.68 3,900 1,300 3.331.950% Due 03-01-22200,000 BANK AMER CORP 99.34 198,686 98.53 197,066 0.71 6,600 3,117 3.653.300% Due 01-11-23200,000 AVALONBAY COMMUNITIES 100.82 201,632 96.77 193,542 0.70 5,700 1,678 3.602.850% Due 03-15-231204 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2018YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest Maturity150,000 DISCOVERY COMMUNICATIONS 98.88 148,320 96.99 145,480 0.52 4,875 1,219 3.953.250% Due 04-01-23150,000 NEWELL BRANDS INC 106.01 159,022 98.50 147,751 0.53 5,775 1,444 4.203.850% Due 04-01-23200,000 AFLAC INC 104.97 209,950100.36 200,726 0.72 7,250 322 3.543.625% Due 06-15-23200,000 BANK OF NEW YORK MELLON 97.83 195,666 93.86 187,726 0.67 4,400 1,650 3.522.200% Due 08-16-23200,000 JPMORGAN CHASE & CO 105.18 210,362 100.66 201,320 0.72 7,750 3,229 3.743.875% Due 02-01-24200,000 METLIFE INC 105.46 210,930 99.18 198,358 0.71 7,200 1,620 3.763.600% Due 04-10-24175,000 PRUDENTIAL FINANCIAL INC 103.15 180,505 99.14 173,504 0.62 6,125 783 3.663.500% Due 05-15-24200,000 WELLS FARGO & COMPANY 99.88 199,764 96.61 193,216 0.69 6,600 2,053 3.923.300% Due 09-09-24150,000 KIMCO REALTY CORP 94.92 142,377 94.74 142,113 0.51 4,950 2,062 4.223.300% Due 02-01-25150,000 REYNOLDS AMERICAN INC 108.47 162,700 100.64 150,960 0.54 6,675 352 4.344.450% Due 06-12-25200,000 APPLIED MATERIALS INC 107.96 215,912 102.03 204,058 0.73 7,800 1,950 3.583.900% Due 10-01-25150,000 CITIGROUP INC 101.65 152,470 96.92 145,387 0.52 5,550 2,605 4.183.700% Due 01-12-26150,000 ANHEUSER-BUSCH INBEV FIN 103.01 154,519 97.89 146,841 0.53 5,475 2,281 3.973.650% Due 02-01-26200,000 LOWE'S COS INC 100.05 200,098 94.51 189,020 0.68 6,200 999 3.843.100% Due 05-03-27Accrued Interest58,123 0.215,837,307 5,577,526 20.04 58,123DOMESTIC FIXED INCOME FUNDS/ETF1,349,795 GOLDMAN SACHS PRIME OBLIGATIONS FUND 1.00 1,350,167 1.00 1,350,200 4.85 NADOMESTIC LARGE CAP EQUITY FUNDS/ETF30,075 FLEXSHARES QUAL DIV ETF 40.67 1,223,030 45.30 1,362,397 4.89 NA15,475 SPDR S&P 500 ETF 115.66 1,789,802 271.28 4,198,058 15.08 NA3,012,832 5,560,455 19.98DOMESTIC MID CAP EQUITY FUNDS/ETF14,325 ISHARES CORE S&P MIDCAP 400 ETF 66.27 949,323 194.78 2,790,223 10.02 NA2205 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2018YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityDOMESTIC SMALL CAP EQUITY FUNDS/ETF16,875 ISHARES S&P SMALLCAP 600 INDEX ETF 31.00 523,130 83.46 1,408,387 5.06 NAINTERNATIONAL EQUITY FUNDS/ETF46,675 ISHARES ETF CORE MSCI EAFE 51.54 2,405,857 63.37 2,957,795 10.63 NAEMERGING MARKET FUNDS/ETF30,250 ISHARES ETF CORE MSCI EMERGING MKTS 42.08 1,272,873 52.51 1,588,427 5.71 NAREAL ESTATE14,000 VANGUARD REIT ETF 38.58 540,100 81.45 1,140,300 4.10 NAU.S. TREASURY 25,000 US TREASURY NOTES 99.9424,984 99.70 24,925 0.09 312 40 2.061.250% Due 11-15-18200,000 US TREASURY NOTES 99.64 199,281 98.43 196,868 0.71 2,500 421 2.451.250% Due 10-31-19525,000 US TREASURY NOTES 99.53 522,519 98.43 516,778 1.86 7,219 316 2.471.375% Due 12-15-19125,000 US TREASURY NOTES 99.85 124,807 97.95 122,441 0.44 1,562 531 2.511.250% Due 02-29-20150,000 US TREASURY NOTES 100.06150,094 95.68 143,520 0.52 1,687 5 2.631.125% Due 06-30-21375,000 US TREASURY NOTES 99.34 372,510 98.55 369,5811.33 7,969 22 2.632.125% Due 06-30-21750,000 US TREASURY NOTES 100.59 754,414 97.91 734,295 2.64 15,000 2,541 2.662.000% Due 10-31-21525,000 US TREASURY NOTES 101.31 531,879 97.78 513,350 1.84 10,500 29 2.672.000% Due 12-31-21350,000 US TREASURY NOTES 99.72 349,016 99.60 348,593 1.25 9,187 3,071 2.722.625% Due 02-28-23300,000 US TREASURY NOTES 98.24 294,727 98.82 296,472 1.07 7,500 2,818 2.752.500% Due 08-15-23500,000 US TREASURY NOTES 100.23 501,133 97.62 488,105 1.75 11,875 4,461 2.802.375% Due 08-15-24105,000 US TREASURY NOTES 92.80 97,440 91.47 96,047 0.35 1,706 218 2.841.625% Due 05-15-26250,000 US TREASURY NOTES 95.26 238,145 93.71 234,287 0.84 5,000 639 2.852.000% Due 11-15-26190,000 US TREASURY NOTES 95.29 181,049 95.06 180,612 0.65 4,275 546 2.852.250% Due 11-15-2770,000 US TREASURY NOTES 97.96 68,573 99.14 69,401 0.25 1,925 723 2.852.750% Due 02-15-283206 Alaska Permanent Capital Management Co.PORTFOLIO APPRAISALCITY OF KENAI PERMANENT FUNDSJune 30, 2018YieldAverage Total Market Pct. Annual Accrued toQuantity Security Cost Average Cost Price Value Assets Income Interest MaturityAccrued Interest16,379 0.064,410,569 4,351,656 15.63 16,379AGENCIES250,000 FHLMC 99.73 249,325 97.76 244,412 0.88 4,250 1,086 2.731.700% Due 09-29-20250,000 FEDERAL HOME LOAN BANK - STEP UP99.85 249,625 96.96 242,405 0.87 5,000 639 2.742.000% Due 11-14-22300,000 FEDERAL FARM CREDIT BANK 100.00300,000 97.59 292,761 1.05 8,550 1,591 3.252.850% Due 04-24-25200,000 FHLB 99.79 199,580 99.65 199,300 0.72 7,250 2,054 3.673.625% Due 03-19-27Accrued Interest5,370 0.02998,530 984,249 3.54 5,370TOTAL PORTFOLIO 21,427,335 27,835,503 100 310,533 79,9594207 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-18 To 06-30-18Trade Settle TradeDate Date Security Quantity AmountPURCHASESCORPORATE BONDS06-07-18 06-11-18 KIMCO REALTY CORP 150,000 142,377.003.300% Due 02-01-25U.S. TREASURY 06-27-18 06-28-18 US TREASURY NOTES 350,000 349,015.632.625% Due 02-28-23491,392.63DEPOSITS AND EXPENSESMANAGEMENT FEES06-30-18 06-30-18 MANAGEMENT FEES 3,986.293,986.29DividendDOMESTIC FIXED INCOME FUNDS/ETF06-29-18 07-03-18 GOLDMAN SACHS PRIME OBLIGATIONS FUND2,371.32DOMESTIC LARGE CAP EQUITY FUNDS/ETF06-15-18 07-31-18 SPDR S&P 500 ETF 19,275.1606-18-18 06-22-18 FLEXSHARES QUAL DIV ETF9,345.7528,620.91DOMESTIC MID CAP EQUITY FUNDS/ETF06-26-18 07-02-18 ISHARES CORE S&P MIDCAP 400 ETF12,151.73DOMESTIC SMALL CAP EQUITY FUNDS/ETF06-26-18 07-02-18 ISHARES S&P SMALLCAP 600 INDEX ETF4,174.151208 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-18 To 06-30-18Trade Settle TradeDate Date Security Quantity AmountEMERGING MARKET FUNDS/ETF06-19-18 06-25-18 ISHARES ETF CORE MSCI EMERGING MKTS13,367.63INTERNATIONAL EQUITY FUNDS/ETF06-19-18 06-25-18 ISHARES ETF CORE MSCI EAFE53,745.98REAL ESTATE06-18-18 06-21-18 VANGUARD REIT ETF 10,245.20124,676.92InterestCASH AND EQUIVALENTS06-30-18 07-02-18 WF ADV GOVT MM FD-INSTL #1751357.39CORPORATE BONDS06-01-18 06-01-18 MICROSOFT CORP 4,200.004.200% Due 06-01-1906-12-18 06-12-18 REYNOLDS AMERICAN INC3,337.504.450% Due 06-12-2506-15-18 06-15-18 AFLAC INC 3,625.003.625% Due 06-15-2311,162.50FNMA & FHLMC06-15-18 06-15-18 FHLMC POOL G14203 88.604.000% Due 04-01-26U.S. TREASURY 06-15-18 06-15-18 US TREASURY NOTES 3,609.381.375% Due 12-15-192209 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-18 To 06-30-18Trade Settle TradeDate Date Security Quantity Amount06-30-18 07-02-18 US TREASURY NOTES 843.751.125% Due 06-30-2106-30-18 07-02-18 US TREASURY NOTES 5,250.002.000% Due 12-31-2106-30-18 07-02-18 US TREASURY NOTES 3,984.382.125% Due 06-30-2113,687.5125,296.00PRINCIPAL PAYDOWNSFNMA & FHLMC06-15-18 06-15-18 FHLMC POOL G14203 599.16 599.164.000% Due 04-01-26599.16Purchased Accrued InterestCORPORATE BONDS06-07-18 06-11-18 KIMCO REALTY CORP 1,787.503.300% Due 02-01-25U.S. TREASURY 06-27-18 06-28-18 US TREASURY NOTES 2,995.922.625% Due 02-28-234,783.42SALES, MATURITIES, AND CALLSCORPORATE BONDS06-07-18 06-11-18 Waste Management Inc 200,000 189,388.002.400% Due 05-15-23EMERGING MARKET FUNDS/ETF06-01-18 06-05-18 ISHARES ETF CORE MSCI EMERGING MKTS2,125.0000 119,362.883210 Alaska Permanent Capital Management Co.TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDSFrom 06-01-18 To 06-30-18Trade Settle TradeDate Date Security Quantity AmountINTERNATIONAL EQUITY FUNDS/ETF06-01-18 06-05-18 ISHARES ETF CORE MSCI EAFE900.0000 59,459.27368,210.15Sold Accrued InterestCORPORATE BONDS06-07-18 06-11-18 Waste Management Inc 346.672.400% Due 05-15-23346.67WithdrawCASH AND EQUIVALENTS06-01-18 06-01-18 DIVIDEND ACCRUAL 717.3006-04-18 06-04-18 DIVIDEND ACCRUAL 1,558.2206-20-18 06-20-18 WF ADV GOVT MM FD-INSTL #1751406.502,682.022,682.024211 Alaska Permanent Capital Management Co.REALIZED GAINS AND LOSSESCITY OF KENAI PERMANENT FUNDSFrom 06-01-18 Through 06-30-18Avg. CostDate Quantity Security Basis Proceeds Gain Or Loss06-01-18 2,125.0000 ISHARES ETF CORE MSCI EMERGING MKTS89,416.71 119,362.88 29,946.1706-01-18 900.0000 ISHARES ETF CORE MSCI EAFE46,390.39 59,459.27 13,068.8806-07-18 200,000 Waste Management Inc 200,478.00 189,388.00 -11,090.002.400% Due 05-15-2306-15-18 599.16 FHLMC POOL G14203 626.50 599.16 -27.344.000% Due 04-01-26TOTAL GAINS 43,015.05TOTAL LOSSES -11,117.34336,911.59 368,809.31 31,897.72 212 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 06-01-18 To 06-30-18Trade Settle TranDate Date Code Activity Security AmountCASH RECEIVABLE06-01-18 Beginning Balance 0.0006-29-18 07-03-18 dp Dividend GOLDMAN SACHS PRIME OBLIGATIONS FUND2,371.3206-30-18 07-02-18 dp Interest US TREASURY NOTES 843.751.125% Due 06-30-2106-30-18 07-02-18 dp Interest US TREASURY NOTES 5,250.002.000% Due 12-31-2106-30-18 07-02-18 dp Interest US TREASURY NOTES 3,984.382.125% Due 06-30-2106-30-18 07-02-18 dp Interest WF ADV GOVT MM FD-INSTL #1751357.3906-30-18 Ending Balance 12,806.84WF ADV GOVT MM FD-INSTL #175106-01-18 Beginning Balance 74,656.1006-01-18 06-05-18 dp Sale ISHARES ETF CORE MSCI EMERGING MKTS119,362.8806-01-18 06-01-18 dp Interest MICROSOFT CORP 4,200.004.200% Due 06-01-1906-01-18 06-01-18 dp Transfer from DIVIDEND ACCRUAL 717.3006-01-18 06-05-18 dp Sale ISHARES ETF CORE MSCI EAFE 59,459.2706-04-18 06-04-18 dp Transfer from DIVIDEND ACCRUAL 1,558.2206-07-18 06-11-18 wd Purchase KIMCO REALTY CORP -142,377.003.300% Due 02-01-2506-07-18 06-11-18 wd Accrued Interest KIMCO REALTY CORP -1,787.503.300% Due 02-01-2506-07-18 06-11-18 dp Sale Waste Management Inc 189,388.002.400% Due 05-15-231213 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 06-01-18 To 06-30-18Trade Settle TranDate Date Code Activity Security Amount06-07-18 06-11-18 dp Accrued Interest Waste Management Inc 346.672.400% Due 05-15-2306-12-18 06-12-18 dp Interest REYNOLDS AMERICAN INC 3,337.504.450% Due 06-12-2506-15-18 06-15-18 dp Interest AFLAC INC 3,625.003.625% Due 06-15-2306-15-18 06-15-18 dp Interest FHLMC POOL G14203 88.604.000% Due 04-01-2606-15-18 06-15-18 dp Paydown FHLMC POOL G14203 599.164.000% Due 04-01-2606-15-18 06-15-18 dp Interest US TREASURY NOTES 3,609.381.375% Due 12-15-1906-18-18 06-21-18 dp Dividend VANGUARD REIT ETF 10,245.2006-18-18 06-22-18 dp Dividend FLEXSHARES QUAL DIV ETF 9,345.7506-19-18 06-25-18 dp Dividend ISHARES ETF CORE MSCI EAFE 53,745.9806-19-18 06-25-18 dp Dividend ISHARES ETF CORE MSCI EMERGING MKTS13,367.6306-20-18 06-20-18 wd Withdrawal from Portfolio -406.5006-27-18 06-28-18 wd Purchase US TREASURY NOTES -349,015.632.625% Due 02-28-2306-27-18 06-28-18 wd Accrued Interest US TREASURY NOTES -2,995.922.625% Due 02-28-2306-30-18 Ending Balance 51,070.09DIVIDEND ACCRUAL06-01-18 Beginning Balance 2,275.5206-01-18 06-01-18 wd Transfer to WF ADV GOVT MM FD-INSTL #1751-717.302214 Alaska Permanent Capital Management Co.CASH LEDGERCITY OF KENAI PERMANENT FUNDSFrom 06-01-18 To 06-30-18Trade Settle TranDate Date Code Activity Security Amount06-04-18 06-04-18 wd Transfer to WF ADV GOVT MM FD-INSTL #1751-1,558.2206-15-18 07-31-18 dp Dividend SPDR S&P 500 ETF 19,275.1606-26-18 07-02-18 dp Dividend ISHARES CORE S&P MIDCAP 400 ETF12,151.7306-26-18 07-02-18 dp Dividend ISHARES S&P SMALLCAP 600 INDEX ETF4,174.1506-30-18 Ending Balance 35,601.043215 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNC IL MEETING OF: AUGUST 1, 2018 VENDOR DESCRIPTION DEPT . ACCOUNT AMOUNT BRO DART RENTAL CONTACT FOR BOOKS LIBRARY RENTALS 6,426.00 PENINSULA CLARON FY19 AGENDNNOTICE ADS CLERK ADVERTISING 6,000.00 EDOCS ALASKA FY19 LASER FICHE LSAP CLERK SOFTWARE 9 ,067.80 AML FY19 MEMBERSHIP DUES LEGISLATIVE DUES & PUBLICATIONS 6 ,703.00 LN CURTIS & SONS INTAKE VALVES FIRE SMALL TOOLS 3 ,500.00 IMAGE TREND FY19 MAINTENANCE FEE FIRE PROFESSIONAL SERVICES 3,000.00 PENINSULA PUMPING PORT ABLE RESTROOMS RECREATION RENTALS 4,500.00 GRENSCAPES FY19 PLANT LEASE/CARE AIRPORT RENTALS 4,140.00 KONICA-MINOLTA FY19 COPIER LEASE NON-DEPT. PRINTING & BINDING 7 ,000.00 PITNEY BOWES FY19 POSTAGE SCALE RENTAL NON-DEPT. RENTALS 3,300.00 PITNEY BOWES FY19 POSTAGE NON-DEPT. POSTAGE 8,000.00 CUMMINS NORTHWEST GENERATOR CIRCUIT BOARD AIRPORT OPERATING SUPPLIES 3 ,331.02 PENINSULA PUMPING FY19 VACTOR TRUCK DUMPING SEWER PROFESSIONAL SERVICES 3,000.00 VERIPIC FY19 ANNUAL MAINTENANCE POLICE SOFTWARE 2 ,730 .00 GMW FIRE PROTECTION SYSTEM REPAIRS CONGREGATE HOUSING REPAIR & MAINTENANCE 3,700.00 CROWLEY FUEL FOR FLOAT PLANE BASIN AIRPORT OPERATING SUPPLIES 4,000 .00 PHYSIO CONTROL FY19 MAINT. VARIOUS PROFESSIONAL SERVICES 7,475.64 HACH COMPANY FY19 SUPPLIES WATER OPERATING SUPPLIES 8,000 .00 TAURIAINEN ENG/TESTING FY19 WATER TESTING WATER PROFESSIONAL SERVICES 5 ,000.00 ANALYTICA FY19 WATER TESTING WATER PROFESSIONAL SERVICES 5,000.00 INGRAM LIBRARY SERVICES BOOKS LIBRARY BOOKS 4,500.00 AMAZON BOOKS LIBRARY BOOKS 3,000.00 CASELLE FY19 SOFTWARE LEGAL SOFTWARE 10,250.00 WORLD WIDE TECHNOLOGIES FY19 CISCO SMARTNET CONTRACT VARIOUS COMMUNICATIONS 7 ,268 .35 PENINSULA CLARION FY19 AGENDNNOTICE ADS P&Z ADVERTISING 5,000 .00 VEIRCORP. CRACK SEALING AIRPORT REPAIR & MAINTENANCE 7,432.50 216 l(ENAI ~IVE~ FESTIVAL 44129 Sterling Hig hway· Soldotna , Alaska 99669 • 907-260-5449 • www.kenaiwatershed.org Mayor Gabriel City of Kenai 210 Fidalgo Ave. Kenai , Ak 99611 Dear Mayor Gabriel, On behalf of the KWF Board of Directors, members and staff, I take this opportunity to express our s incerest appreciation for your support of $300 for t he 2018 Kenai River Festival! We are deeply grateful for your support and generosity. Through your contribution, we were able to gather the community together to celebrate our wonderful n atural resources, learn more about the ri ver, a nd unite to keep our watersh ed hea lthy a nd productive fo r generation s to come. A ll had Fun & Inspiration, as we celebrated our great treasure, the Kenai River. The K enai River Festival ha s a lways been a bi g event for the community, and this year was no different. This year's fest ival will be remembered for the abundance of sunshine, a wonderful music line up of all A laska bands, a rehabilitated Eagle Released back into the wi ld , our wond erfu l sa lmon dinner s and or course the 1 OOO's of kids enjoying our FREE education booths! Here is w hat we are hearing about the 281h annua l Kenai River Festival from the kiddos ... • "Filling out the P ass port to Education for the iPad Mini with my friend s was my favorite part. I love learning about the river and the Passport got me aro und to most of the education booths." -Sammy, age 11 • "I loved painting th e t-shirts with all the anima l a nd marine w ildlife!" -Lando, age 9 • "I lo ve bird s it was so cool seeing the owl, falcon and then the eagle releas ed." -J oseph, age 8 Again, we ap preciate yo u r support and know that it would not have been pos sible w ithout you. Your contribution and expression of community s piri t is an investment in the qualit y of life for a ll of us. Thank yo u for making the Kenai River Festival a priority. Tami Murray Development Director 907-260-5449 Ext 1204 Tami @kenaiwatershed.org The Kenai Watershed Fo rum !s a 50 l (c)(3) tax-exempt in st itution (Tax ID #91-1829284) and this lett er serves as a receipt of your donation in return fo r whic h you receive neither good nor services. 217 AUGUST 1, 2018 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION ITEM REQUESTED BY Add to item G.5. Field of Flowers Signage Councilor Molloy • Photos of Other Various Signs Sensitive Area: Protect It! " / 11 sr.tud .11 1/1r rdi:r c!I tlir ra, 111 rusr 1111 d1h a11 i 1l1r fl""' "( tlrr t1drs, I• Jeri tlrr hrc .1111 11) '' 111111 111<•1•1 11x 11l'n .1 ~rrat salt 11111 1 /1, 111 11•&1ul1 1l1r jl1cl11 <'!/ s/,.,,r h11d 1/1a1 /111 1•r u c J'I "I' 11mi d!lll'll 1/1r smf lwr. of tlir (11111 111111 1 )"' 1111111/J 1l11111sa11ds I ) rar .as "' l1.11•r k11 11u•lnl~ •!I 1l1111~s 1l1at arr as rrc·.rtl )' r 11·11i.r/ ,,, •Ill )' r.11t l1lr l!Je r.111 br." -R atl1d CarSl'll Eclectic Estuary Estuanes b y def1mt1 on are eclectic environments. The Kenai River Estu ary is no exception. More than 50 m 1lhon young salmon depend on the estuary to rear and trans1t1on to salt water. Over 5 m1lhon adult salmon transition from salt water to fresh on thell' migration to their spawning streams. Migratory birds m the tens of thou sands rest and feed m the estuary on their way to their nesting grounds. Caribou summer on the estuary feeding and calving a new generation . People come from near and far to en1oy all of what the local treasure has to offer. TEE BOX TARGET FAIRWAY PARKING ACTION AGENDA KENAI CITY COUNCIL -REGULAR MEETING AUGUST 1, 2018-6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http ://www. ke nai.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 norm a l sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) 1. Johna Beech, Kenai Chamber of Commerce and Visitor Center -Second Quarter Update . C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. POSTPONED TO 08115118. 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) 2. ADOPTED UNANIMOUSLY. Resolution No. 2018-42 -Authorizing the City Manager to Enter Into a Restaurant Concession Agreement for the Kenai Municipal Airport. (Administration) 3 . ADOPTED UNANIMOUSLY. Resolution No. 2018-43 -Approving a Second Amendment to the Airline Operating Agreement and Terminal Area Lease and Authorizing the C ity to Enter Into Such Agreement with Corvus Airlines D/B/A Ravn Alaska. (Administration) 4. ADOPTED UNANIMOUSLY. Resolution No . 2018-44 -Approving a Second Amendment to the Airline Operating Agreement and Terminal Area Lease and Kenai City Council Meeting August 1, 2018 Page 1 of 3 Authorizing the City to Enter Into Such Agreement with Grant Aviation , Inc. (Administration) 5. ADOPTED UNANIMOUSLY. Resolution No. 2018-45 -Accept ing the Proceeds from a $2,000 Caring for the Kenai Project Development Grant Provided by Ensta r Natural Gas to Mr. Riley Graves for the Purchase and Deployment of Magnets to Remove Nails and Other Metal Debris from City Beaches. (Administration) 6. ADOPTED UNANIMOUSLY. Resolution No. 2018-46 -Approving the Execution of a Lease of Airport Reserve Land s Using the Standard Lease Form Between the City of Kenai and SOAR International Ministries, Incorporated, for the Undeveloped Portion of Tract A , General Aviation Apron Number Two. (Administration) E. MINUTES 1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of July 5, 2018 F. UNFINISHED BUSINESS -None . G. NEW BUSINESS 1. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Bills to be Ratified. 2. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Purchase Orders Over $15,000 3. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 0811 512018. *Ordinance No. 3035-2018 -Increasing Estimated Revenues and Appropriations by $2057.58 in the General Fund (FY18) -Police Department for State Traffic Grant Overtime Expenditures. (Administration) 4 . INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 08/15/2018. *Ordinance No. 3036-2018 -Acce pting and Appropriating a Grant from the State of Alaska for the Purchase of Library Books . (Administration) 5 . REFERRED TO THE BEAUTIFICATION COMMITTEE AND THEN TO THE AIRPORT COMMISSION. Action/Approval -Field of Flowers Signage. (Council Member Knackstedt) 6. AUTHORIZAITON PROVIDED UNANIMOUSLY. Action/Approval -Authorize th e City Manager to Enter into a Memora ndum of Agreement between the Kenai Peninsula Borough and the City of Kenai for Participation in a Multi-Jurisdictional Team to Review and Coordinate Haza rd Mitigation Plans . (Ad ministration) H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission • Sub-Committee Update Kenai City Co uncil Meeting August 1, 20 18 Page 2 of 3 4. Parks and Recreation Commission 5. Planning and Zoning Commission 6. Beautification Committee 7. Mini-Grant Steering Committee I. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1 . City Manager 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1 . Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION -None. M. PENDING ITEMS -None. N. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15 ,000 for Council Review 2 . Kenai Watershed Forum -Kenai River Festival ''Thank You " Letter The agenda and supporting documents are posted on the City's website at www.kenai .citv. Copies of resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk's Office at 907-283-8231 . Kena i City Coun cil Meeting August 1, 20 18 Page 3 of 3 CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE AUGUST 1, 2018 KENAI CITY COUNCIL MEETING NOTICE IS HEREBY GIVEN the City of Kenai Council passed the following Ordinance(s) and/or Resolution(s) at the above-referenced meeting . 1. ADOPTED UNANIMOUSLY. Resolution No. 2018-42 -Authorizing the City Manager to Enter Into a Restaurant Concession Agreement for the Kenai Municipal Airport. (Administration) 2. ADOPTED UNANIMOUSLY. Resolution No. 2018-43 -Approving a Second Amendment to the Airline Operating Agreement and Term inal Area Lease and Authorizing the City to Enter Into Such Agreement with Corvus Airlines D/B/A Ravn Alaska . (Administration) 3. ADOPTED UNANIMOUSLY. Resolution No. 2018-44 -Approving a Second Amendment to the Airline Operating Agreement and Terminal Area Lease and Authoriz ing the City to Enter Into Such Agreement w ith Grant Aviation , Inc . (Administration) 4 . ADOPTED UNANIMOUSLY. Resolution No. 2018-45 -Accepting the Proceeds from a $2,000 Caring for the Kenai Project Development Grant Provided by Enstar Natural Gas to Mr. Riley Graves for the Purchase and Deployment of Magnets to Remove Nails and Other Metal Debris from City Beaches . (Administration) 5. ADOPTED UNANIMOUSLY. Resolution No . 2018-46 -Approving the Execution of a Lease of Airport Reserve Lands Using the Standard Lease Form Between the City of Kenai and SOAR International Ministries , Incorporated , for the Undeveloped Portion of Tract A, General Aviation Apron Number Two. (Administration) Cop ies of the ordinances and/or reso lutions are available in the Office of the Kenai City Clerk. Please be advised , subject to legal lim itations , ordinances and/or resolut ions may have been amended by the Council prior to adoption without further publ ic notice. Heinz, CMC, City Cler d: August 2, 2018 NOTICE OF PUBLIC HEARING AUGUST 1, 2018 CITY OF KENAI COUNCIL MEETING NOTICE IS HEREBY GIVEN the City Council of the City of Kenai will conduct a public hearing on the following Ordinance(s) and/or Resolution(s) on the above-noted meeting date : 1. Ordinance No. 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) 2 . Resolution No. 2018-42 -Authorizing the City Manager to Enter Into a Restaurant Concession Agreement for the Kenai Municipal Airport. (Administration) 3 . Resolution No. 2018-43 -Approving a Second Amendment to the Airline Operating Agreement and Terminal Area Lease and Authorizing the City to Enter Into Such Agreement with Corvus Airlines D/B/A Ravn Alaska. (Administration) 4. Resolution No. 2018-44 -Approving a Second Amendment to the Airline Operating Agreement and Terminal Area Lease and Authorizing the City to Enter Into Such Agreement with Grant Aviation, Inc. (Administration) 5. Resolution No. 2018-45 -Accepting the Proceeds from a $2,000 Caring for the Kenai Project Development Grant Provided by Enstar Natural Gas to Mr. Riley Graves for the Purchase and Deployment of Magnets to Remove Nails and Other Metal Debris from City Beaches . (Administration) 6. Resolution No. 2018-46 -Approving the Execution of a Lease of Airport Reserve Lands Using the Standard Lease Form Between the City of Kenai and SOAR International Ministries, Incorporated , for the Undeveloped Portion of Tract A , General Aviation Apron Number Two . (Adm inistration) The public hearing will commence at 6:00 p.m., or as soon thereafter as business permits, in the Kenai City Council Chambers, 210 Fida Igo Avenue, Kenai, Alaska, 99611 . All interested persons are invited to attend the meeting and participate in the public discussion. Written comments may be sent to the Kenai City Council, c/o Kenai City Clerk , 21 O Fida Igo Avenue, Kenai, AK, 99611. Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk and will be available at the meeting for public review . Please be advised , subject to legal limitations, ordinances and/or resolutions may be amended by the Council prior to adoption without further public notice.